ANKIT BHAGERIA | SECTION-B
RekaCem: Learning: Ientifying the customer. And
differentiating between customer and consumer.
• Financials were around house painting dimensions.
Subtract window size. How many 1.5 kg packs used,
5 kg packs. Smaller packs come out cheaper.
• Customer was retailer and not contractor/end
consumer. They will push it to the contractors.
A-One Starch:
• Learning: Targeting has to be correct
• Financials: Revenue contribution by segments vs.
Sales contribution by segments
• Decision: High quality pharma + Unorganized
confectionary Branded products. Don’t focus on
smaller players
Aqualisa Quartz:
• Learning: Innovation. Value proposition. Positioning.
• Decision: Focus on showrooms and high end
customers. Eventually plumbers will come to know.
Plumbers cannot be called to convention.
• Financials: Pump. Price is currently okay (Pumps)
Fashion Channel:
• Learning: Segmentation has to be correct. (Sule told
age based segmentation)
• Decision: Focus Fashionistas only. Financials clear.
Cash lying around. New programming cannot be
produced
Southwest:
• Learning: Marketing decision when company’s
future and past are conflicting
• Decision: Go ahead and buy, Busy airport, Business
travellers in NY, Long Island is far away.
Huge Cash lying around. Need to show shareholders
that growth is happening
Clean Edge Razor:
• Learning: Positioning
• Decision: Niche segment - gives higher profit.
Prevents cannibalization. Name - Clean Edge by
paramount.
Sony EyeToy:
• Learning: Positioning
• Financials: Very few Groove to get profits
• Decision: Don’t focus on gamers. Groove includes
songs of 70-80s. Don’t focus on children, as doing
currently. Focus on middle income age.
Biopure:
• Learning: New product offerings
• Decision: Oxyglobin first. Earns less revenue. Plus no
competitor
• Financials: Market of dog higher than expected. Do
some calculations.
Green Ox:
• Learning: Pricing
• Decision: Multiple flavors. Don’t go into vegetable
juice and pills. Compete with sports drink.
Antioxidant should not be your USP. Compete head
on in price with Croc-ade. Focus on young people
athletic. They don’t care about antioxidant.
Chapter 2 IDEAL MARKETING PLAN
• Situation Analysis – 1) Demographics / Georaphics /
Behavior factors 2) Market needs of different segments
3) Market trends
• SWOT Analysis + Competition Analysis
• Product service offering – Value proposition
• Marketing strategy
o Target markets
o Positioning
• Marketing program
o Pricing
o Distribution
o Promotion
o Product i.e. Basically 4Ps
• Financials
• Implementation
CHAPTER 6 (ANALYZING BUSINESS MARKETS)
• Problem recognition (Requirement for new product or
new supplier as prev. was high cost / low qual.)
• Need description (General characteristics, reqd. qty.,
tech specs., PRODUCT VALUE ANALYSIS)
• Supplier search (Trade directories, contacts, ads, trade
shows, Internet). E-procurement : Vertical hubs (based
on industries) vs. Functional hubs (Logistics, Advtsng)
• Lead generation (Supplier to ensure it is considered.
Know customers. Balance b/w qty and qlty. of leads)
• Proposal solicitation + Supplier selection
• Counter price pressure using services, productivity
• Order routine specification
CHAPTER 5 (CONSUMER MARKETS) -
Assignment
• Buying decision factors – Cultural, Reference grp.,
Status in society, Self concept, Personality, Lifestyle
• Perception (Selective attention, sel. Distortion, sel.
Retention)
CONSUMER PURCHASE PROCESS
• 1) Problem recognition – Need theories
• 2) Info search – Personal sources, Commercial (Ad,
sites, salesmen, dealers), Public (Mass media),
Experience based (Examine / use of product)
o Search dynamics – Total set -> Awareness set ->
Consideration set -> Choice set -> Decision
• 3) Eval. Of alternatives – Beliefs and attitudes,
Expectancy – valence theory
• 4) Purchase decision – Heuristics like Minimum
acceptable qlty., best brand, elimination. Others
attitude and perceived risks change decision
• 5) Post-purchase behaviour: Satisfaction / Stop buying /
Warning friends
 CHAPTER 7 (SEGMENTS / TARGETS)
• Geogrpahic segment – Nation, state, city, locality
• Urban vs. Rural (Works in India)
• Demographic – Age/Family size / Family life cycle /
Gender / Income / Occupation / Edu / Religion /
Generation / Social class
Psychographic – VALS Framework
• Ideals – Guided by principles
• Achievement – Products that demonstrate success to
peers
• Self expression – Look for variety and risk
HIGH RESOURCES
• Innovators – Successful, sophisticated. Upscale /
Niche products
• Thinkers – Mature, satisfied. Seek durability,
functionality, value
• Achievers – Successful, goal oriented. Seek premium
products that demonstrate success to peers
• Experiencers – Young, enthu ppl. Seek variety,
excitement. Fashion products
LOW RESOURCES
• Believers – Conservative, traditional.
• Strivers – Trendy, fun loving but resource constrained.
Stylish products that emulate wealth
• Makers – Practical, down to earth.
• Survivors – Elderly, passive ppl. Loyal to brands
Effective segmentation criteria
• Measurable: Size, purchasing power measurable
• Substantial: Large and profitable enuff to serve
• Accessible: Can be effectively reached and served
Steps in segmentation
• Need-based segmentation: Group customers based on
needs and benefit sought
• Segment identification: Determine the demographics,
lifestyle, behaviour that make a segment actionable.
• Attractiveness: Determine attractiveness of each
segment using market growth, competition, access
• Profitability: Determine segment profitability
• Positioning: For each segment create value proposition
and price strategy based on segment needs
• Acid-test Create sgmnt-storyboard & test attractiveness
• Marketing mix: Expand positioning to include 4Ps
CHAPTER 8 (PRODUCT LIFE CYCLE)
• Expanding market demand – 1) Attract new customers
who are unaware of product or resist due to price 2)
Increase level of consumption through product redesign
or new packaging 3) Increase freq. of consumption by
creating new ways to use brand or additional
opportunities (E.g. strip on gillete razor, Milkmaid)
• Protecting market share – 1) Proactive marketing like
anticipative or creative (Discover solutions not
demanded). 2) Defensive marketing – Make brand
impenetrable (P&G), Preemptive defense (Announce
new offerings)
Product life cycle & Marketing strategies for each
• Introduction – Slow sales growth. Non-existent profits
• Growth – Rapid acceptance. Substantial profits
• Maturity – Slowdown in growth. Profits stabilize
• Decline – Sales decline and profits erode
 CHAPTER 19 (INTRODUCING NEW PRODUCTS)
• Idea generation – Sources include employees,
customers, competitors, distributors. Through SWOT,
R&D, market trends, focus groups, corporate spies
• Idea screening – Eliminate unsound concepts.
Feasibility. Probability of commercialization. Probability
of economic success.
• Conceptual dev. – Present concept to target customers,
get reactions. Believability, Need level, gap level,
perceived value, purchase intention
• Marketing strategy – 1) Target market’s size, structure,
behaviour. 2) Planned price, disbn. Strategy 3) Long run
sales and profit goals and 4Ps
• Business analysis – Estimate sales, costs and profits
• Prod. Development – Produce prototype and show to
target audience to ask if changes desired.
• Test marketing – Launch within a region and monitor
marketing mix. Modify before national launch. Test
usage patterns. Focus group interviews.
• Commercialization – Go for launch. Timing, product
launch strategy, place of launch, advertising
USE AIDA MODEL FOR ADVERTISEMENTS
PESTEL (External analysis)
Macro environmental factors
• Political: Govt. intervention levels (Tax policy, Labor
law, Environmental law, Political stability)
• Economic: Economic growth, interest rates (Affects
borrowings), exchange rates, unemployment, inflation
• Social: Cultural aspects, Health, Population growth
rate, Age disbn. (Aging pop. Implies less willing
workforce), Income disbn., Career aspirations
• Technological: R&D levels, automation, innovation,
technological incentives. Determine barriers to entry,
minimum efficient production level, influence
outsourcing
• Environmental: Weather, climate, climate change.
Affects tourism, insurance.
• Legal: Discrimination law, competition law, consumer
law, antitrust law, employment law, safety laws.
Affects operations, costs, demand
Assess which factors can change and which will have
greatest impact
PORTER’S FIVE FORCES
Tests attractiveness and profitability of industry
Tests Long run attractiveness of a segment
• Entry of competitors: What entry barriers, How easy
for new entrants (Capital req., Govt. policies, loyalty)
• Threat of substitutes: Substitutability esp. by cheaper
products. Buyer switching costs. Value of product
differentiation.
• Bargaining power buyers: Position of buyers when
they work together. Buyer concentration, price
sensitivity, how well informed, dependency on
existing players
• Bargaining power suppliers: If only few suppliers,
monopoly suppliers, strength of distribution channel
• Rivalry among existing players: Strong competition or
not, Is one player very dominant or all equal in size.
How strongly will all of them retaliate to new entry
5C ANALYSIS
Helps in understanding external and internal situation
• Company: Product line, Image in market, Technology
and experience, Culture, Goals, Performance so far
• Collaborators: Distributors, Suppliers, Alliances
• Customers: Market size and growth, Market
segments, Needs of customers, Value drivers /
Motivation behind purchase, Decision maker, Retail
channel customer buys from, Customer information
sources, Buying process (Impulsive vs. Careful),
Frequency of purchase and seasonality, Quantity
purchased in single shopping, Trends
• Competitors: Actual vs. Potential, Direct vs. Indirect,
Positioning, Market shares, Strengths and weaknesses
of competitors, Future activity of competitors
• Climate: Political and regulatory environment,
Economic environment, Social/Cultural, Technological
(USE PESTEL)
------------------------------- X ------------------------------
4P (MARKETING MIX)
• High profile brand: Focus on promotion. Desensitize
weight given to price.
• Product: Needs of customer, Features to meet needs,
How and where will customer use it, Appearance, Size,
Name, Differentiation, Branding, Packaging
• Pricing: Value of product to buyers, Established price
points in market, Price sensitivity, Discounts, Bundling,
AIDA MODEL
Competition price, Variation across product lifecycle
• Place: Where do buyers purchase product, What kind List of events when consumer engages with
of store do they buy from, Distribution channels, Use advertisement
of sales force / trade shows / Online / Samples, • Attention – Existence of product / Service
Service levels Visual stimuli. Surprise buyers
• Promotion: Communication routes to get across Place ads in unexpected situations, Shock factor,
marketing message, Promotion timing (Seasonality, Personalization
Environment), Press vs. TV vs. Radio vs. Billboards vs. • Interest – Retain attention
Direct mailers vs. Internet, Competitor strategies for Establish a need. Personal link
promotion Entertaining and memorable commercials
Easy to read ads with illustrations
• Desire – Create desire for product
PRICING STRATEGY Infomercials.
• Know how buyers value offerings (Economic value to Link product to consumer problem. Show they cannot
customer, competitor pricing) live without the solution
• Assess price sensitivity (Elasticity) • Action – Desire leads to action
Special offer, free gift, limited promotion
• Variation across segments, geographies
Website, phone call, show that they need to act
• Anticipate competitive response
• Check consistency with strategy (Sales vs. Profits)
• Assess whether it’s worth to serve customer

Pricing Options
• Rapid Skimming: High launch price + High promotion.
Makes sense when large market size is unaware of
product.
• Slow skimming: High price + Low promotion. Makes IDEAL STRATEGY:
sense when limited market size + Aware market.
Buyers willing to pay high. Less competition. 1. Situation Analysis: 5Cs, Porter’s five forcers
• Rapid promotion: Low price + High promotion. Large (Industry analysis), PESTEL (External environment),
market + unaware of product. Price sensitive market. SWOT (Internal situation)
Strong competition. Economies of scale. 2. Define objective
• Slow penetration: Low price + Low promotion. Large 3. Market definition: Potential market, STP (Need for
market. Highly aware. Price sensitive. Competition. segmentation, requirements of segments, basis;
Criteria for selection of target market; What image
will you portray)
------------------------------- X ------------------------------ 4. Key value proposition
5. Marketing Mix – 4Ps
6. Pricing strategy, Distribution channels
CHANNELS 7. Product communication - AIDA
FINANCIALS
• Communication Channels: Used to deliver and receive
messages from target buyers. E.g. E-mail, Toll free 1. Breakeven analysis (Var. vs. fixed costs)
number 2. Market share / Market size
• Distribution Channels: Display and deliver physical 3. Cannibalization
product. E.g. Warehouses, Transportation vehicles, 4. Whole sale price vs. Retail price
Trade channels like Distributors, Wholesalers, 5. Markup / Discounts
Retailers
• Selling Channels: Distributors, Retailers Don’t mention framework name