Professional Documents
Culture Documents
MANAGEMENT MODULE
LECTURER: MR J. RANGANAI
OFFICE SD 17 (Business Management Dept)
Email: ranganaij@gmail.com
Cell: 0772 122 120 /0713 421 422 /0733 236 657
ANALYSIS
MONITOR and CONTROL
Collect and analyse
Outcomes
marketing
Set standards and
Information
Measurements
(Environmental scanning)
PLANNING
IMPLEMENTATION Take decisions
Resource allocation, about which consumers
organising, to satisfy and the
programmes marketing mix
* PRODUCT LINE
• A product line is a group of products that are closely
related because of any of the following reasons:
• they satisfy the same needs eg
shampoos,toothpaste,deodorants,soaps
• They are used together eg cellophone accessories
• They are bought by the same customer groups eg stationery
items bought by students
• They are marketed through similar channels e.g hardware
products
• They fall within the same price range e.g products with a
selling price of say between R10 and R15
*PRODUCT MIX
Also known as an assortment, is a the set of
/combination of all product lines and items that a
particular firm /reseller offers for sale
Or it is the combination of all various kinds of all
products which a business makes/sells.
Lux Vaseline
Close-Up
(2) Google (3) Coca-Cola (4) IBM (5) Microsoft (6) General
Electric (7) McDonalds (8) Samsung (9) Intel (10) Toyota
.
Product Category
Existing New
Existing Line Brand
Brand Name extension extension
New
Multi-brands New
brands
(i) High Contact Customers visit the service setting so that they are personally
Services involved throughout the service delivery process e.g a hair
cut,dentist `s services etc
(ii) Medium Customers visit the facility but not remain for the duration of
Contact the service delievery e.g delivering & collecting items to be
Services repaired
1.Intangibility
Services do not have physical features that buyers
can see, touch, feel, smell or taste before the
purchase decision.
Service firms essentially ask their customers to buy a
promise
2. Ininventorabilty
Services cannot be stockpiled for later use or sale. Because
of this characteristic, unused capacity cannot be stored for
future use. For example, spare seats on an aeroplane cannot
be transferred to the next flight.
Marketing Management @ NUST 2014
Characteristics of Services
3. Inseparability
Production & consumption of services take place
simultaneously.
Because services are real time experiences, services
providers have to get it right first time as correction of a
service blunder is impossible.
Further because of the inherent characteristic of
simultaneity in production & consumption, the client has to
avail themselves at the point of service provision
4. Inconsistence (variability)
Service quality is usually not the same every time
because of the labour intensive nature of services.
The quality of the service depends on the morale,
motivation, mood, training and attitude of those
providing the service.
For example, there is a strong possibility that the
same enquiry would be answered slightly differently
by different people (or even by the same person at
different times)
2. Idea Screening •Ideas are evaluated to identify good ideas and drop poor ones as
soon as possible.
•In screening of ideas, companies take care to a void both drop and
go errors.
•Org needs to consider 3 categories of risk, i.e strategic, market &
internal risk.
3. Concept •Turn surviving ideas into concepts by developing a detailed version of the
Development product idea in meaningful consumer terms
& Testing •Testing involves asking a sample of consumers what they feel of the product
concept before turning it into actual product.
5. Business Analysis •Involves reviewing, (1) projection of sales, (2) costs and (3) profit (ideally
cash flow) for the new product to see whether it satisfies the company’s
objectives
8. Commercialization
•If market testing returns with positive results, then the
firm commercializes/launches the product in the entire
market
•For a product launch to be successful, questions of when,
where, how and to whom should guide the marketers.
•Commercialization/launch brings us to the last stage of
the NPD process but however introduces us to the first
stage of the product life cycle
Marketing Management @ NUST 2014
Product Life Cycle Concept
Sales and
Profits ($)
Sales
Profits
Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments ($)
Sales and
Profits ($)
Sales
Profits
Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments ($)
PRICING PRODUCTS
Market Structure
Product` intended positioning
Prevailing economic fundamentals e.g inflation,
interests rates etc
(v) Tendering
Many contracts awarded on a tender basis
Firm (or firms) submit their price for carrying out the
work
Purchaser then chooses which represents best value
Mostly done in secret
Driving growth
Order fulfilment
Market coverage
Customer service
Relationship and reputation building
Ensure consistent availability
Convenience
Customer satisfaction
Logistics efficiency – Transport, inventory
management, order processing.
Middlemen /
Producer Consumer
Distributors /
Dealers
Producer Consumer
Buying
Selling
Risk taking
Transportation
Sorting
Storing
Assorting
Financing
Grading
Marketing Information & research
Marketing Management @ NUST 2014
Key Distribution Channel Decisions:
1) ADVERTISING
2) SALES PROMOTION
3) PUBLIC RELATIONS & PUBLICITY
4) DIRECT MARKETING
5) PERSONAL SELLING
6) INTERACTIVE MARKETING
7) WORD OF MOUTH MARKETING
3. Evaluation of alternatives
4. Purchase decision
Stock the product at the right place at the right time so that
the consumer who has made a decision in favour of the brand
can have access to the product
For trial and first time purchases marketers should encourage
trials through market testing, or thru promotional tactics
such as free samples, coupons etc
For repeat purchases:
i) the marketer should make sure that s/he has satisfied the
customer at the first time.
ii) that his/her offering is a part of the evoked/consideration set.
*Org should aim towards creation of brand loyalty.
Marketing Management @ NUST 2014
Post-purchase outcome and reactions
Psychographic segmentation
Behavioral segmentation
Leaders
Challengers
Followers
Nichers
*How these strive to survive in the market can be
resembled to a war situation where each party is
fighting for supremacy and survival - hence the
term ‘Marketing Warfare’