Glossary of Marketing Terminology
7 O’S MODEL OF STUDY OF CONSUMER BEHAVIOR Are: Occupants- People Objects- What Products Objectives- Why Occasions – When Organizations- Who all are involved, Operations- How do they buy (Cash/ Credit ) Outlet- From where to buy 80/20 RULE It is a common rule of thumb in business; e.g., "80% of your sales come from 20% of your clients." Joseph M. Juran ACHIEVERS • Achievers are successful, goal-oriented people who focus on career and family. They favor premium products that demonstrate success to their peers. It is a type of psychographic segmentation. Phillip Kotler • Achievers have high resources and are status oriented. i) Seek recognition and self definition through achievements at work and school. ii) Value predictability and stability. iii) Deeply committed to work and family. iv) Social lives are centered around family church and career. v) Image is important to them. vi) They favor established prestige products and products that demonstrate success to their peers. vii) 73% married, 39% men, 77% college educated. viii) Income around $200,000. Dr. Jill Novak These consumers are the high-resource group of those who are motivated by achievement. They are successful work-oriented people who get their satisfaction from their jobs and families. They are politically conservative and respect authority and the status quo. They favor established products and services that
show off their success to their peers. VALS Framework-USA • Image is important to Achievers; they favor established, productive products that demonstrate success to their peers. Because of their busy lives they are often interested in a variety of time saving devices. Bernie Hamilton-USA
Eg: BMW,Blackberry ACCESSIBILITY • Accessibility is the effective segmentation criteria, it means that the segment be effectively reached and served. Phillip Kotler • To minimize promotion and sales expense you may want to target urban rather than rural or local rather than national prospects. Because the individual is more difficult to reach you may want to segment by urban versus rural, train commuters, people who read Wall Street Journal, etc. Business Resource Software
ACTION CAMPAIGNS • Action Campaign is: 1. Attract people of mass immunization. 2. Motivate people to say yes on a certain issue. Philip Kotler Eg: Treatment Action Campaign is a South African AIDS activist organization
ADVERTISING • Any paid form of non personal presentation and promotion of ideas, goods and services by an undefined sponsor. Philip Kotler • Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas, or services. Stephen J. Eskilson
as by paid announcements in the print. broadcast. or electronic media. • An advertorial or infomercial is an advertisement designed to simulate editorial content. and presented in a printed publication— usually designed to look like a legitimate and independent news story. to persuade a target market to purchase or to consume that particular brand. because affiliates often use regular advertising methods. J. Philip Kotler • An advertorial is an advertisement written in the form of an objective article. Oxford Dictionary Eg: Nike-Just do it. Walter Thompson • The activity of attracting public attention to a product or business. • Affiliate marketing overlaps with other Internet marketing methods to some degree.•
Advertising includes the name of a product or service and how that product or service could benefit the consumer. • An advertisement promoting the interests or opinions of a corporate sponsor. often presented in such a way as to resemble an editorial. ADVERTORIALS • Print ads that offer editorial content that reflects favorably on the brand and resemble newspaper or magazine content. • Affiliate Marketing is an Internet-based business where affiliates are compensated for each sale brought about by there affiliate marketing efforts.
AGE AND LIFE CYCLE STAGES
. Oxford Dictionary
AFFILIATE MARKETING • Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts. while at the same time offering valid information to your prospective clients.
Therefore. positive. • Attitudes are generally positive or negative views of a person. age and life cycle stages are important variables to define segment. negative and hostile. • Attitudes are usually defined as a disposition or tendency to respond positively or negatively towards a certain thing (idea. or are closely related to. emotional feeling. our opinions and beliefs and are based upon our experiences. a vitamin specially formulated for young teenagers. ATTITUDES • A person’s enduring favorable or unfavorable evaluation. an adult version for adult men and women. place. and older adult. such as a shampoo developed for women over 40 to help with age-related hair changes. • An attitude is a hypothetical construct that represents an individual's degree of like or dislike for an item. object. Eg: A person’s attitude towards green product ( Eco-friendly product). and a high-energy formula for people over age 50. • Age and life-cycle segmentation The process of dividing the consumer market into different age and life-cycle groups. young adult. and action tendencies toward some object or idea. person. They encompass. or event—this is often referred to as the attitude object. Philip Kotler • Classification of different age groups of a target market on the basis of their life cycle stages. Eg: a vitamin manufacturer may offer a children's formula for ages 4-12. because consumer needs and desires change with age. ATTRIBUTE POSITIONING
. • Attitudes are judgments. Attitude towards the product are: enthusiastic.Consumer’s wants and abilities change with age. situation). thing. indifferent. • Marketing concept that utilizes different marketing approaches for different age categories or different life-cycle segments of the population. The four basic 'Age and life cycle' categories are child. Some marketers will offer a product designed particularly for one specific segment of the age cycle. adult.
oldest. Philip Kotler Eg: Bajaj Discover positions itself on its milage. the New Customer Majority.
. ➢ First impressions (which are always emotionally based) are more durable and more difficult to reverse than for younger adults. With more disposable income than any population in America. Fastest. ➢ Implications: identify and employ images that promote strong positive emotional responses.e. the message highlights one or two of the attributes of the product. ➢ Implications: be sensitive to images that can stimulate negative first impressions. and are essential to optimal results in marketing and sales communications. they are. and they are the wealthiest. Eight Progressive Changes in How Baby Boomer’s Minds Process Information: ➢ Less reliance on reason to determine what is of interest. relationship potentialities are primarily emotionally inferred (“gut feelings”) – rather than rationally deduced. for baby boomers. and more on intuition (which is cued by emotional responses).The brand has a unique attribute i. Attribute positioning is usually a weak positioning as it does not explain the benefit to the customer. etc. BABY BOOMERS • baby boomer and older customers (born between 1948-1965) are the single largest consumer group in America. ○ Arun Kottoli • Attribute positioning. It is probable that the strongest sources of negative impressions are images that conflict with idealized image of self. best educated and most sophisticated of purchasers. Marketing and sales. relationship building must precede presentation of company and product.. in fact. must integrate both empathy and vulnerability (honesty and openness) into marketing messages. These two attributes are necessary to build trust. 100 km in 1 litre. especially with respect to autonomy and sense of personal validity.
especially in terms of metavalues – values that transcend the generic value of the service and expand its perceived attractiveness. ➢ Implications: present information on company and products in a qualified. ➢ More resistant to absolute propositions. nuances and subtleties. ➢ Implications: Deliver objective information (e. information content must be no greater than what the baby boomer wants at a given point in time. Stories are generally quicker to arouse emotions than straightforward propositions about a product’s features. then shift to “hard” or objective information when most advantageous.
. Resistance to emotionally neutral information (mainly processed in the left hemisphere of the brain) increases in midlife.➢ After a matter qualifies for interest and further attention.g. ➢ Implications: manage the transaction continuum so that emotional cues are present when most advantageous. etc.) at a slow to moderate pace. ➢ More sensitive to metaphorical meanings. even deferential manner.. Nonverbal symbols are effective in accomplishing this. ➢ More receptive to narrative-styled presentations of information. less responsive to information presented in expository style. product benefits and features. ➢ Implications: Make greater use of story-telling techniques to get information across. ➢ Perceptions are more holistic. Think Hallmark Cards – they surpass most in using stories to present products. Avoid “jump cuts” and incomplete sentences. technical information. Storytelling has become an important part of market strategy. ➢ Implications: take advantage of greater sensitivity to subtlety to expand the content of the message. ➢ Decreasing speed in rational processing of objective information. baby boomers tend to want more information than do younger consumers. Whoever tells the best story and tells it best will most likely win.
There it is yellow and Ronald is also known as Uncle Suk-Suk. ➢ Understanding how a baby boomer’s brain and mind processes information is key to effective communications. If an ad. Some countries might have a special need and this means that you will have to develop a new product for their special need. National Cash Register Company reintroduced its crank-operated cash register at a lower cost for South American and African markets. avoid depicting representatives of target markets in flat. also.g.
Eg: Mcdonald’s mascot Uncle Ronald’s face is white in all the countries except in Japan and other east Asian countries. For instance.. BALANCED INCOMPLETE BLOCK DESIGN (BIBD)
. it is more likely to be ignored.
BACKWARD INVENTION • • Reintroducing earlier product forms that can be well adapted to foreign country’s needs. Backward Invention is a product strategy in international marketing in which a company produces a less complex version of its domestic product for developing and less-developed countries. web site or sales presentation fails to connect with a baby boomer’s idealized image of self. TV or radio spot. This is an example of backward invention.➢ Implications: Project an interest in the “whole” person. simply showing consumers using or talking about the product without reference to a larger context). single dimension contexts (e. there may be a need for pure water in certain countries and you invent a machine that purifies water. not just the facet that might need a particular product or service. A product strategy in international marketing in which a company produces a less complex version of its domestic product for developing and less-developed countries.
Protectionism is one that comes to mind.•
The Balanced Incomplete Block Design (BIBD) is a well studied experimental design that has various desirable features from a statistical perspective. BIBD in marketing is: ➢ In some randomized block designs. ➢ Barriers to entry benefit existing companies already operating in an industry because they protect an established company's revenues and profits from being whittled away by new competitors. ➢ The question is: Which tips are to be tested on the first coupon. ➢ An incomplete block design is simply one in which there are more treatments than can be put in a single block. ➢ For example. even globally. it may not be possible to apply all treatments in every block. which on the second and so on. two types of barriers: ➢ Entry barrier ➢ Exit Barrier from the market. ➢ A balanced incomplete block design is an incomplete block design in which every pair of treatments occurs the same number of times in the experiment. ➢ Although it goes against the practice of free trade. Many governments impose restrictive regulations
. if information is desired on all four tips ? ➢ A solution to this problem is: to use a balanced incomplete block design.
BARRIERS: • Majorly. ➢ The number of blocks necessary for balancing will depend on the number of treatments that can be run in a single block. which type of marketing statergy to use for a particular target market. • Entry Barrier: ➢ The existence of high start-up costs or other obstacles that prevent new competitors from easily entering an industry or area of business. barriers of entry do exist. used to verify are assumptions and observations and also to obtain new results. This is a statistical tool.
the same way established companies are able to do . Small companies have to learn to work within their means. Similarly. high-scaled branding and advertising that translates into product differentiation will entice consumers to remain with their larger providers. financial planning is of the essence here. ○ High Switching Costs and Product Differentiation ○ To increase customer sales. available. Small-businesses have to find their own niche product or service that will be able to cater to this group of people. not nitch). but is incumbent on a strong business plan with a reasonable but promising financial forecasts.so they should concentrate on building rapport with their own niche target markets to boost their presence in the market. This allows smaller companies to demonstrate their own expertise and product branding. Financing for small-scaled businesses is. ➢ Types of entry barrier and methods to overcome them: ○ High Capital Requirements High capital requirements are inherent in start-up businesses. small-businesses have to win over consumers from exisitng providers. Financial resources can be a massive barrier especially if a company is reliant on expensive raw material. Small companies are generally unable to reach out to the masses. Again. however.such as high tariffs and quotas in order to protect local businesses from foreign takeover. Applying for a loan from a bank / corporation / consortium is possible but small companies have to ensure that they factor in the costs in repayment into their financial forecasts. This can be expensive for customers as they may already be comfortable with their current facilities and fees. ○ The way around here is to create a niche (pronounced neesh.
. A niche target market is a specific group of consumers who have a specific requirement.
The Internet is a potent tool in today's business world. ○ There are ways to overcome this hurdle. demographics or the surrounding content. fairly non-technical and makes small business owners accessible to billions. ○ Another popular way is the use of Internet marketing. create a barrier to exit BEHAVIORAL TARGETING • • Behavioral Targeting is a technique used advertisers to increase the effectiveness of their campaigns. Behavioral marketing can be used on its own or in conjunction with other forms of targeting based on factors like geography. but the decision to divest is complicated by the presence of several barriers. One way would also be to concentrate on a niche product or service. it is easy to lose out on business opportunities to the big corporations in the market. Alternatively. • Exit Barrier: Divestment can be an appropriate and profitable strategy. small-firm owners may quickly work their way up to larger distribution channels.
Eg: Behavioral targeting uses information collected on an individual's web-browsing behavior. sunk costs. This would help eliminate the main competition with the big players in the market. If the Internet marketing strategy jives with the business model. Networking and marketing via the net is cost-efficient. such as the pages they have
. small companies can find ways to "complement" the networking channels (with their niche products and services) to increase bargaining presence in the industry. The portions of the capital investment that cannot be recovered. especially where distribution channels are concerned. Because of this.○ Lack of Access to Distribution Channels ○ Small businesses have low bargaining power and usually begin with shaky business networks.
Occasions: Regular. Readiness stage: Unaware. Practitioners believe this helps them deliver their online advertisements to the users who are most likely to be interested.visited or the searches they have made. desirous. Godrej Hair dye. First-time user. absolute 6. intending to buy 7. negative. positive. potential-user. It is divided into 7 categories: 1. Usage Rate: Light. Loyalty status: None. Attitude towards product: Enthusiastic. User status: Non-user. marketers divide group on the basis of their knowledge of.
BEHAVIORIST SEGMENTATION Behavioral segmentation. Medium. service. use of. economy. MTR Ready to eat food. Positioning is the process of designing a product or service so that it can occupy a distinct and valued place in the target consumer's mind. indifferent. strong. Ex-User. or response to the product. Benefits: Quality. Bajaj Discover. Eg: Cadbury Celebrations. The key themes or concepts an organization
. medium. hostile. Heavy 5. the seller may ask for a premium for these over random advertising or ads based on the context of a site. interested. Special 2. and then communicating this distinctiveness through advertising. to select which advertisements to display to that individual. On the theory that properly targeted ads will fetch more consumer interest. attitude towards. aware. informed.
BENEFIT POSITIONING • A positioning option that features a distinctive customer benefit. regular user 4. speed 3. Fair & Lovely . Behavioral Targeting allows site owners or ad networks to display content more relevant to the interests of the individual viewing the page. Sny Electrical appliances.
If a brand’s position lacks distinctiveness it will be forced to compete on the bases of price or promotion. • Benefit positioning can be used if the brand perceivably differs in its ability to deliver a specific benefit. 2. Often in their search for differentiation. packaging. Difficulty in either suggest that a position is to fuzzy to be of value to the brand. promotions. 3. Coherence Speak with one voice through all the elements of the marketing mix if you wish to create a strong position. is an example of a powerful position based on the quality built into the appliances. a brand that is positioned as premium quality and price appears in an endaisle “sale” display. This is a waste of time and money. who symbolizes reliability.
. “We try harder because we are #2” established Avis as a major league competitor quickly and simply.features for communicating the distinctiveness of its product or service to the target segment. and they have many choices to fill the needs they have. Distinctiveness People have few needs that are unfulfilled. for example. 4. There are seven qualities that help to make a successful position: 1. advertising. Relevance Positions that do not focus on benefits that are important to people or reflect the character of the product will fail. envelope franking. should all reflect and translate the brand’s position into the appropriate form for the media. The power of a benefit position will depend on how many people care about the benefit and how different the brand is in delivering it. Clarity A position should be easy to communicate and quick to comprehend. The shipping cartons. The lonely Maytag repairman. If. its quality image will suffer. freight pallets. marketers seize upon some attribute in their product which is different but in reality is of little concern to customers. expensive strategies that will not build brand equity in the long term. shelf displays etc.
5. will yield growth in sales and profits and a consumer franchise who believe that your brand has no adequate substitute. even if it costs more. Once a position is adopted. rather it is a deliberate attempt to influence events. in the face of criticism and pot shots. You must believe that the position makes strategic sense for the brand and then stick to your guns. someone else would be enjoying the profits of this powerful brand position. Commitment Often people will get nervous when a strong position threatens to ignore or even alienate some segment of the population as a price of clearly communicating to the desired target. Had P&G lost patience after two or three years. it takes commitment to see it through. 6. and if successful." Brainstorming business ideas should be uncensored. and each person's contribution is equally valuable. 7. The ADA approval was the key to launching the brand to over 40% of the market. It requires ignoring certain business targets in favor of others. It is much easier to defend an appeal to everyone with a rather generic sales pitch. • Adopting a strong position is not a passive act. Courage It goes without saying that adopting a strong brand position requires bravery.
BRAINSTORMING • Brainstorming is a group creativity technique that was designed to generate a large number of ideas for the solution of a problem. When it was first introduced positioned as a cavity fighter its share never rose above 13% for three years. ( Thinkertoys Michael Michalko )
. Patience Crest has dominated its market for over thirty years. No idea is dumb or impossible.
LCD & LED Televisions launched by Samsung is another example of Brainstorming activities used by Samsung Yamaha-FZ 16 launched by Yamaha with broad tires at back in the segment of 150 cc is also an example of Brainstorming technique. ( Thinkertoys Michael Michalko )
Brainstorming is a group problem-solving technique that is intended to help members develop innovative new approaches to a problem in an unthreatening environment.•
Brainstorming technique for breaking out and generating innovative business. ( Thinkertoys Michael Michalko )
EXAMPLES • • VODAFONE ZOO-ZOO Ads which ultimately established as a Brand is among the most creative ideas. or service ideas is to get all of the external senses involved. product. i-Phone launches by Apple Inc are based on several new technologies and concepts which is a result of various Brainstorming activities. In this process nothing is too silly or farfetched to be suggested. ( Thinkertoys Michael Michalko ) Idea-generating technique often used in advertising by a creative team to spark creativity. The team will gather in a group and throw out spontaneous ideas without evaluation until they hit upon something that may be useful. The process helps to make the leap from the visualization of an idea to the concrete words and pictures that will actually form the basis of the advertising campaign.
(David Ogilvy's ) Brand is the personality that identifies a product. (Aaker. Usually brands are registered (trademarked) with a regulatory authority and so cannot be used freely by other parties. or concept that is publicly distinguished from other products.•
An identifying symbol. and the way it's advertised. or mark that distinguishes a product or company from its competitors.) A brand is a product. Examples include Farley’s (baby food). term. symbol. Staff. and Investors etc. words.
EXAMPLES • Heinz is a leading global food manufacturer with a very strong family brand. For many products and companies. service or company (name. services. its history. David (1991). or concepts so that it can be easily communicated and usually marketed. or combination of them) and how it relates to key constituencies: Customers. or design. it also operates many well-known individual brand names. service. or concept. Managing Brand Equity. packaging. service. Branding can be applied to the entire corporate identity as well as to individual product and service names. (Tom Peters) The intangible sum of a product's attributes: its name. Partners. branding is an essential part of marketing. sign. However. Linda McCartney Foods (vegetarian meals) and Weight Watcher’s Foods (diet/slimming meals and supplements). and price. Microsoft XP and Microsoft Office in personal computing software and Heinz Tomato Ketchup and Heinz Pet Foods Mc Donald’s in India
. A brand name is the name of the distinctive product. Branding is the process of creating and disseminating the brand name. its reputation.
Native . emotional and social relevancy linkages. How well the service/experience has been delivered now and in the past.
Heineken is renowned for being the first truly international Beer brand. service. How well the product configuration delivers value – the customer relevant. Cosmopolitan . (Neumeier. Emotional . (Dave Williams. functional . Empathy . 2. 3. or concept by directly interacting with
.BRAND AFFINITY • Brand Affinity is the likelihood to purchase a particular brand in a free choice situation. Marty ) brand’s affinity relationship can be understood and managed by focusing on three key aspects: 1. The implication of Heineken is that it got affinity among consumers over the world Benetton expressed the campaign featuring AIDS patients which can strengthen the Brand emotional affinity
A promotional model is a person hired to drive consumer demand for a product. tangible product attributes and of course the price being charged for them. brand. President Loblaw Companies) • Brand Affinity includes various aspects of consumer like Ego . How well the brand reinforces the value proposition – its attitudinal. Society and most important Association. It needs to be validated through consumer behavior.
Tiger Woods (Golfer) with the Aim of talking about precision. and typically is intended to be attractive in physical appearance • "a diplomat. causing an
.Shahrukh Khan (Bollywood Actor)
BUZZ OR STREET MARKETING • Buzz marketing is a viral marketing technique that attempts to make each encounter with a consumer appear to be a unique. Brittania . Mittal and A.Rahul Dravid (Cricketer) Santro . simply referred at as BUZZ. Sharma) The buzz Marketing campaigns. a representative of an organization. is an expression tool used in a word-of-mouth marketing strategy or manner. The Buzz marketing is a type of publicity spread among customers and consumers in a positive society. spontaneous personal exchange of information instead of a calculated marketing pitch choreographed by a professional advertiser (Lassar. institution or corporation that best portrays the product or service(Neumeier.. Marty )
The brand ambassador is a marketing model that employs trusted. B. A promotional model can be female or male. Marty )
EXAMPLES • Toyota has roped in actor Aamir Khan as its Brand Ambassador for its utility vehicle Innova in India. Accenture . W.potential consumers. credible personalities to promote and give greater visibility to its brand products(Neumeier.
. (Lassar. Within the first four months of release. The success of the BMW series has prompted many other car manufacturers such as Nissan to adopt a similar internet-based strategy. the films attracted over 11 million views and sent BMW sells up 12% in 2001 alone. The films were produced and directed by such acclaimed filmmakers as David Fincher and Guy Richie and starred actors such as Don Cheadle. it differs from it in the control of the content. W.excitement and anticipation of the product or service(Lassar. high-production short films released on BMW's website. Sharma)
The Dojo of Pain program served to create buzz and generate awareness for the video game Red Steel. Sharma) Extent to which a brand is recognized by potential customers. W. Expressed usually as a percentage of target market. (Lassar. Mittal and A. Clive Owen. B.
Extent to which a brand is recognized by potential customers. B. and even Madonna. of the advertising message. Sharma) • Buzz marketing is a marketing technique consisting. of making a noise around a new product or offer.. brand awareness is the
. Expressed usually as a percentage of target market. Similar to viral marketing. and is correctly associated with a particular product. a launch title for the Nintendo Wii platform BMW launched a series of eight high-cost. B. brand awareness is the primary goal of advertising in the early months or years of a product's introduction. Mittal and A. W.. and is correctly associated with a particular product. Mittal and A. as its name suggests.
consumer recognition of logos and other visual elements.primary goal of advertising in the early months or years of a product's introduction. Marty ) Brand equity valuation requires association of elements like changing market share. (Neumeier. brand language associations made by consumers. consumers' perceptions of quality and other relevant brand values. (Neumeier. there are very few factors that differentiate one product from its competitors. This is because for these products. • Brand awareness is an important way of promoting commodityrelated products. Marty)
. profit margins. Marty )
EXAMPLES • • NOKIA Brand awareness for its N-Series Mobiles Dove Brand Awareness for Dove Shampoo to gain market share and reinforce market leadership position
Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name (Neumeier. the product that maintains the highest brand awareness compared to its competitors will usually get the most sales. Therefore.
. for non-users it is based almost entirely upon uninformed impressions. red-lacquered soles that have become his signature. attitudes and beliefs.• The Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F". Since 1992. wearing only and only high-end fashion brand shoes. With shiny. Brand image is developed over time through advertising campaigns with a consistent theme. Referring to the four consumer perception of brand equity. Louboutin has lured women all over the world who deemed themselves to be brand conscious consumers. Brand image is usually carefully developed by the brand owner through marketing campaigns or product positioning The customer's net "out-take" from the brand. his designs have incorporated the shiny. • Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991.
BRAND IMAGE • Impression in the consumers' mind of a brand's total personality (real and imaginary qualities and shortcomings). and is authenticated through the consumers' direct experience The perception that consumers have of a brand. This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E". For users this is based on practical experience of the product or service concerned (informed impressions) and how well this meets expectations. Louboutin fulfills all four factors. red-lacquered soles and high stillettos that differentiate Louboutin from other posh and luxurious shoe brands.
Coffee™ coffee makers used its brand name strength to launch Mr. product category. there is a strong enough correlation between the two items that the brand name has a powerful impact on consumers of both categories. Brand Image of VODAFONE by showing ads of Zoo-Zoo and Dog-Girl Ads and focusing on best customer service
1>Broadening a company's product range by introducing additional forms or types of products under a brand name which is already successful in another category. Thus. Consumers enter retail outlets equipped with pre-existing knowledge of a brand’s level of quality and consistently relate this knowledge to new products carrying the familiar brand. Brand Image of Amul developed with the punch line that AMUL “The taste of India “. Also called Product Leveraging. Coffee™ brand coffee. 2> The manufacturer of Mr. Brand Extension and Franchise Extension.
EXAMPLES • 1>Bic is a strong brand name with years of experience in marketing low-cost disposable plastic products such as the Bic pen. Bic is positioned well to introduce products that capitalize on these same basic strengths – products such as disposable razors and cigarette lighters.
Brand Image of Nike and ADIDAS by providing Sponsorship in various sports events. While coffee machines and coffee beans are in different product categories. but related. 2>A brand leveraging strategy uses the power of an existing brand name to support a company’s entry into a new. Brand leveraging communicates valuable product information to consumers about new products.
Loyal customers will consistently purchase products from their preferred brands. 4> Virgin Group. 3>When consumers become committed to your brand and make repeat purchases over time. regardless of convenience or price. irrespective of the marketing pressure generated by the competing brands. expressed through their repeat purchases. 2> Apple customers have the brand's logo tattooed onto their bodies. in marketing. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess. trains) to games stores and video stores such a Virgin Megastores. which was initially a record label that has extended its brand successfully many times.
1>Brand loyalty. 2>Extent of the faithfulness of consumers to a particular brand.•
3>. Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels. from transportation (aeroplanes.
. the motorcycle brand in the US. is an example of how passion among consumers has been instrumental in reflecting the loyalty to the brand. consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy. Brand loyalty is a result of consumer behavior and is affected by a person’s preferences.
EXAMPLE • 1>Harley Davidson.
the Atlanta-based company was already spending over US$ 11. Cadillac showcases proactive safety features.
. Its trademark was officially filed in the US that year and has consistently been displayed with the same script to this day.
2>Cadillac's branding message extols the virtues of art and science. in-store presentation. precision all weather controls. and infotainment luxuries such as Onstar. the hour-glass shaped bottle (1915) and the ribbon logo (1970). Over time it also associated its brand with a bright red color. but focuses directly on the brand and how that brand can remain favorable to customers. product line. Brand management is built on a marketing foundation. customer satisfaction. which has applied a competitive pressure since 1898. and upholding a brand so that the name is associated with positive results. Together these aspects contribute to differentiating Coke from rivals such as Pepsi-Cola. Nokia customers remained loyal to Nokia because they admired the design of the handsets or because of userfriendly menu system used by Nokia phones. Before branding or even management emerged as disciplines. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity. and competition. improving. Brand management involves a number of important aspects such as cost.
1>Coca-Cola has become a cliché of brand management. or brand. 2>The process of maintaining.•
3>In Finland.000 on a mass advertising campaign as early as 1892.
BRAND MANAGEMENT • 1>Brand management is the application of marketing techniques to a specific product.
desire for novelty. dairy products. in-store displays. perceived risk.the in-vehicle safety. superior availability. frequency of purchase. Also called purchaser. changes in quality. Brand switching is most common with products that have no great perceived variation in quality across brands such as bottled water. or agrees to acquire. number of available brands. or benefit or usage (in case of services). Brand switching can be instigated by price promotions. person-to-person BUYERS
A buyer is any person who contracts to acquire an asset in return for some form of consideration. or level of satisfaction with the most recent purchase. perceived improvements or innovations in competitive brands. Party which acquires. ownership (in case of goods). security and information service that uses Global Positioning System (GPS) satellite technology and wireless communication to link the driver and vehicle to 24-hour realtime.
For TIMKEN the gear manufacturing company the buyers will all the Automobiles company and engine or Motor making companies
1>Consumer decision to purchase a product brand different from that previously or usually purchased.
. in exchange for money or other consideration under a contract of sale. or paper towels.
2>Brand switching refers to a consumer’s use of more than one brand within a product category. Any means by which the general public comes into contact with a specific brand constitutes a touch point that can affect perceptions of the corporate brand. A corporate branding strategy creates simplicity. it serves as a great stepping stone for revisiting any other brands in the corporations’ portfolio to have a new approach to and look at its various brand identities. Definition 2: Corporations around the world are increasingly becoming aware of the enhanced value that corporate branding strategies can provide for an organization. These touch points include. Branding in the classic sense is all about creating unique identities and positions for products and services. 3>Brand switching is when a consumer or group of consumers switches their allegiance from one brand of a certain type of product to another.Branding can incorporate multiple touch points. advertising.Corporate branding is not limited to a specific mark or name . logo. packaging.
CORPORATE BRAND Definition1: It is the practice of using a company's name as a product brand name . Definition 4: A corporate brand can very often assist the corporation and the management to focus in on the core vision and values. and quality of products and services. hence distinguishing the offerings from competitors. customer service. This ultimately will lead to the final brand architecture of the corporation and set the strategy for how branding
. treatment and training of employees. it stands on top of the brand portfolio as the ultimate identifier of the corporation. Once this overall platform has been established and implemented.It is an attempt to use corporate brand equity to create product brand recognition . stationery. Definition 3: Corporate branding is a serious undertaking that entails more skills and activities than just an updated glossy marketing facade with empty jargon.
it can charge more for its product--and customers will pay that higher price. Because Coca-Cola has built a powerful brand equity. a flexible strategy. according to The Wall Street Journal.HSBC employs the same common expression throughout the globe with a simple advertising strategy based on the slogan “The world’s local bank. and (3) aligning policies. Recent approaches have focused on the need for companies to adapt to and anticipate changes in the business environment. • Hewlett-Packard" Most people think we are just a printer company. practices. As their brand strategy is to provide good quality products at reasonable price. That's why H-P is launching a new corporate branding campaign. Examples: • HSBC. (2) envisioning a new or effective role for the firm in a creative manner. which has successfully implemented a stringent corporate branding strategy . "to recast itself as a broader technology concern. and to portray many faces of the same strategy. Definition 2: Corporate strategy is the direction an organization takes with the objective of achieving business success in the long term.” This creative platform enables the corporation to bridge between many cultural differences. and resources to realize that vision.e. H-P's chief marketing officer. a generic soda." says Michael Mendenhall.and brands will play an important role to achieve the corporate objectives. The development of a corporate strategy involves
CORPORATE STRATEGY Definition 1: Approach to future that involves (1) examination of the current and anticipated factors associated with customers and competitors (external environment) and the firm itself (internal environment). i. WAL-MART offers low price and good values." Coke vs. They attract more customers then other competitive brands.
which are normally dealt with by company visions and missions. research and development. and opportunity that can communicated as worthwhile to all employees.establishing the purpose and scope of the organization's activities and the nature of the business it is in. disposable consumer item. Is also concerned with the firm's choice of business. Definition 4: It must convey a significant stretch for your company. finance. The Ford Motor Company vision is 'to become the world's leading consumer company for automotive products and services'. EXAMPLES • At General Electric (GE) the corporate vision is 'We bring good things to life'. personnel and marketing. Bic Pen Corporation expanded beyond ballpoint pen production into disposable cigarette lighters. a sense of direction. it used the same plastic injection moulding technology and similar distribution channels to sell what was essentially another mass-marketed. implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives.
.The corporate success depends on the vision articulated by the chief executive or the top management. It should not focus so much on today's problems. Strategic or institutional management is the conduct of drafting. For a vision to have any impact of the employees of an organization it has to be conveyed in a dramatic and enduring way. but rather on tomorrow's opportunities. taking the environment in which it operates. 1996). discovery. markets and activities' (Kay. and the competition it faces into consideration Definition 3: It determines how resources are to be used to meet the organisation's goals in the areas of production. its position in the marketplace. and thus it defines the overall scope and direction of the business.
It is advertising that takes a position contrary to an advertising message that preceded it. Culture could relate to a country (national culture). or to counter an impression that might be made by another party's advertising.
CULTURE Definition 1: Culture is the way that we do things around here. Such advertising may be used to take an opposing position on a controversial topic.Definition 1:Advertising that takes a position contrary to an advertising message that preceded it.Instead of selling cigarettes. "Social marketing is the systematic application of marketing along with other concepts and techniques to achieve specific behavioral goals for a social good. Definition 2: Counter marketing involves a marketer affirmatively repudiating demand including through avoiding unwanted customers.it means they encourage a change to positive behaviour by same methods that have encouraged negative behaviour. and then they use same methods to unsell them . it promotes a tobacco free lifestyle. EXAMPLES • TABACOO companies use counter marketing by showing various types of ads and mentioning the harmful effects caused by usage of the product . a distinct section of
. or preventing certain transactions. TV ads for gambling and suicide help lines. Definition 3: Social marketers sometimes look at the methods that have been used to sell things." IPCL sells it's products and at the same time it promotes "Save Oil.Save India". Many paper manufacturing companies mention at the back of their “product save paper save trees”.
Coca Cola translating the name into Chinese without backtranslating it ("bite the wax tadpole"). if you can define it. Management.the community (sub-culture). ultimately resulting in a horrible response from an insulted society. rituals and artifacts (i. Definition 2: Culture is small thing in the world of business. Definition 2: Customer feedback is the process or specific instance of providing information to businesses about products. culture includes all that we have learned in relation to values and norms. you might just be on to a very powerful source of business. and that it is learned. such as the Sydney Opera House or the Great Wall of China). beliefs and religions. marketing and sales departments can all use customer feedback to streamline processes and improve profitability. beliefs and values held by the owner of the business. Definition 3: Customer feedback should address the satisfaction level of individual customers. It’s hard to fake and it’s hard to change. as well as allowing room for customer
. customs and traditions. services and customer service. but customer’s drawn to visit them time and time again because the owner of the business and every single person he finds to employ are so darn nice and genuinely friendly that they want to do business with them. It is widely accepted that you are not born with a culture. or an organization (corporate culture). and communicate it in ways that support a positive brand experience. It’s often a representation of the personality.
CUSTOMER FEEDBACK Definition 1: Here the company actively solicits expressed customer needs or feedback to improve its products. tangible symbols of a culture. But. mold it. A coffee shop which serves pretty average coffee.e. So.
they just go to this website and the front page lists the most requested product and feature ideas in order of demand! Dominoes Pizza . Different types of customer feedback include surveys.This home textile manufacturer is innovating by using customer feedback surveys on the use of their products and perhaps ways to bring new products to the marketplace. The story continues that they reinvented their crust and sauce due to a survey of customers and they have changed drastically their product as a result. This increased their bottom line.Now. if Dell want to know what their users care about and are most hungering for. one of the UK's leading travel companies invites passengers to send text messages whilst riding the bus. complete with Ding-style voting. was being consumed and how it would be better. Customer feedback may be solicited or unsolicited by the company.
.This example is probably the most publicized company example of surveying their customers to determine how their product.comments.
EXAMPLES • • •
National Express. It’s a master stroke . They can make better business decisions based on the information their customers provide and they are now thinking of doing this on a more local level.
CUSTOMER INTIMACY Definition 1: Customer intimacy is based on the ability of the supplier to become accepted and known as the regular partner. Cisco and Microsoft Knowledgebase Dell have turned user feedback into an entire social network site. commenting and all that jazz. American Pacific Enterprises . memberships. product or service review cards and telephone hot lines. in this case pizza.
Creating high barriers to entry . and profit. They discover unsuspected problems.Definition 2: It is one of the three disciplines in the Treacy-Wiersema Value-Discipline Model on which an organisation may focus its energies. and in which the business tries to establish relationships with specific customers . Definition 3: A business strategy that focuses on the needs and wants of a specific type of customer.empowers the people actually dealing with the customer. In the integration of their operations. and create a dynamic synergy with customers. Everyone in your organization should practice it. supply chain and roadmaps with the customer .
. Segments and targets markets precisely .its builds customer loyalty for the long term . EXAMPLES
IDEO's Innovation build bridges from one department to another. and ultimately from the present to the future Jack Welch's goal was to make GE "the world's most competitive enterprise. This discipline is characterised by occupying only one (or a few) high-value customer niches and being obsessive about understanding the individual customers in detail." Welch believed in trying to know every employee and every customer. Welch even nicknamed GE "the grocery store". just like a village grocer. detect unrealized potential. Customer-intimate companies bring an entirely fresh perspective. sustainable competitive advantage. suppliers become more than merely useful: They become indispensable. They often merge their operations with those of their customers. Integrates business systems. from your company to your prospective customers.Jointly develops customizable solutions Definition 4: Customer intimacy is the largest source of your growth.
They take that offer whenever faced with that purchasing decision. to assure customers they care and want to make things right. Definition 3: Loyalty can be defined as customers continuing to believe that one organization’s products/services offer remains their best option. It meets their value proposition whatever that may be. Customers make decisions about where to spend their time. Moreover. when approached by competitors. These companies win by understanding their customers deeply and delivering exactly what they need. it delivers key
. Definition 5: Customer loyalty research is designed to help companies identify why customers return. loyalty means a customer wants to do business with you and does.•
Nordstrom's and IBM. In a nutshell. why they defect. It also means being willing to spend the time and effort to communicate with the organization so as to build on past successes and overcome any weaknesses.Banners and slogans say it. And customer service departments have become a standard.
CUSTOMER LOYALITY RESEARCH Definition 1: Most businesses today recognize – or at least pay lip service to—the importance of customers and their loyalty . often in a customized way. Definition 2: But loyalty is more than just behaviour . Definition 4: It means that they do not seek out competitors and. loyalty means hanging in there even when there may be a problem because the organization has been good to them in the past and addresses issues when they arise.It is a fallacy to assume that a customer is loyal just because they continue to buy from you. There are many reasons why a customer repeats purchasing which have little to do with being really loyal. are not interested. in fact. Advertising focuses on it. In any case. When customer loyalty market research is effective. money. the scenario is always the same for the seller – to make their product or service offering the preferred choice. and why they buy. and effort daily. multiple times a day.
because we deliver unparalleled. Neiman Marcus is credited with creating the first customer loyalty program in the retail industry. Maintaining a stable or growing customer market ultimately depends on keeping the existing paying customers of the business happy. multidimensional loyalty research is designed to provide comprehensive data and clear solutions. Keeping in tune with the desires. A customer market can grow and shrink due to changes in the business environment. a customer market can sometimes be called the market or customer base for a business."
CUSTOMER MARKET Definition 1: Customer market" is a term for the portion of available customers who currently patronize a business.insights including specific statistics on consumer loyalty that can help demonstrate the attitudes and behaviors that effect loyalty A customer loyalty program is a structured and long-term marketing effort which provides incentives to repeat customers who demonstrate loyal buying behavior. actionable insights into customers’ attitudes. which is called "InCircle. EXAMPLES • At Maritz. usually for a product or service. complaints and experiences relayed
. It’s not surprising that our customer satisfaction consulting accounts for over 20% of total customer satisfaction research expenditures in the United States. Businesses often give surveys to customers to get feedback that gives them a clearer understanding of how customers think. Definition 2: Customer marketing is designed to help a business understand customer complaints by tuning in to the voice of the customer. behaviors and demographics again and again. Most frequently used in business marketing.
See also customer expectations and customer requirements. Definition 3: Knowing and understanding customer needs is at the centre of every successful business. They also re-examined their messaging and took a much closer look at their audiences and the benefits to that target and repositioned the brand. Definition 2: Problems that customers intend to solve with the purchase of a good or service. clarifies likes and dislikes. and identifies emerging opportunities. you can use it to persuade potential and existing customers that buying from you is in their best interests. The idea of customer as influencer is an important piece of the marketing puzzle and Ducati is going in the right direction to achieve this. Once you have this knowledge. EXAMPLES
. Interviewing customers provides the team with up-todate information on customer priorities. The results of having a more direct conversation with your customer and engaging them through marketing efforts always results in an acceleration. PR and relationships with their actual customers and admirers through various Ducati clubs.by customers helps a business better streamline the customer experience. Definition 3: Consumer market consists of purchasers or individuals in their households who personally consume or benefit from the purchased products and who do not buy products primarily to make a profit EXAMPLES • Ducati turned to events. whether it sells directly to individuals or other businesses.
CUSTOMER NEEDS Definition 1: It is easy to make assumptions about what customers want and need.
Farming corn ,to do this job, the farmer must select the seed, control the insects, control the weeds, prepare the soil, plant the seed, grow the corn, protect the crop, harvest the crop, dry the harvest, market the crop and assess the yield. Hotels have to provide their customer needs .The customer needs are to secure the right product at the right price at the right time. A customer who has a need for a product or service with a specific budget and needs to have the fulfilment within a time frame that company has to meet.
CUSTOMER RELATION Definition 1: Those aspects of a business strategy which relate to techniques and methods for attracting and retaining customers. Definition 2: Managing the customer relationship is a definition of how the company should attend to the customer after the initial sale. Clients are notorious for demanding the best of breed service and product and if the supplier does not deliver, the customer will find their competitor in an instant. Definition 3: Informing customers of what’s going on at your place is a key to build healthy customer relationships. Managers need to assess customer relationships as it helps in creating a loyal customer base. After all, customers are the ones who provide revenues to act as the financial fuel for the company. EXAMPLES • Pizza hut has a customer relationship with their customer through their feedback forms which have various options about the service also give a space for customers idea of improvement. • Linkedin to identify contacts in target companies. This has resulted in several meetings but, as our sales process takes quite a bit of time, we're still in the relationship building stage with customers.
CUSTOMER RELATIONSHIP MANAGEMENT Definition 1: It is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service .It also defines a company-wide business strategy including customer-interface departments as well as other departments. Definition 2: Is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. Definition 3: The methods and concepts a company uses to manage their relationships with their customers. For example a company might use a database to keep track of customers – knowing the most about your customers as possible is the key. Definition 4: A customer centric business strategy that proactively builds a bias towards a company or organization with its customers, employees, and channels. The result is increased retention and satisfaction ultimately contributing to a perception of enhanced value and increased profitability. EXAMPLES • Using customer relationship management (CRM) tools, Termite Extermination Inc. was able to develop and implement a marketing plan that increased sales dramatically. • American Airlines is one of the best .They offer perks that show they are treating different customers differently. But the industry’s customer differentiation is still designed around their product and their services, not around individual customer needs. Customers don’t want to be treated equally. They want to
be treated individually .They manage their relation customers in different way which makes them stand out.
CUSTOMER RELATIONSHIP MARKETING Definition 1: It recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages .With the growth of the internet and mobile platforms ,Customer Relationship Marketing has continued to evolve and move forward as technology opens more collaborative and social communication channels. This includes tools for managing relationships with customers those go beyond simple demographic and customer service data. Definition 2: Customer relationship marketing recognizes that it is not enough to attract buyers .The CRM goal is to covert buyers into loyalists and loyalists into enthusiasts. It focuses their resources on moving their customer up the loyalty .This is new view of marketing is not merely a better way to practice marketing. Definition 3: Promotional and selling activities aimed at developing and managing trusting and long-term relationships with larger customers. Customer profile, buying patterns, and history of contacts is maintained in a sales database, and a service representative (also called account executive) is assigned to one or more major customers to fulfil their needs and maintain the relationship. Definition 4: Relationship Marketing is a marketing strategy whose objective is to establish and maintain a profitable, long-term relationship with a customer, which goes beyond the initial contact. Definition 5: Relationship marketing is a form of marketing that evolved from direct response marketing, it places emphasis on building longer-term relationships with customers rather than on individual transactions. Relationship marketing involves an understanding of customers' needs and wants through their lifecycle and providing a range of products or services accordingly. EXAMPLES
they are often unspoken. If 60 days pass and the customer has not made a second purchase. Star bucks has blogs and are capable of establishing trusting customer relationships that meet the concept of one-to-one marketing and are a vehicle to reach niche markets According to Gardner a blog has the capacity to establish a two way dialogue with the participants. An example of this would be a milk package that is said to have ten percent more milk for the same price will result in customer satisfaction. Customers are dissatisfied
. Must-Be : These attributes are taken for granted when fulfilled but result in dissatisfaction when not fulfilled. You are using customer behavior over time (the customer Life Cycle) to trigger the marketing approach." which might have an incentive to make a second purchase. An example of this would be package of milk that leaks. These are attributes that are not normally expected. “customer relationship blogs” because it allows companies to interact and connect with customers in an immediate. convenient and personal way. but do not cause dissatisfaction when not fulfilled.•
Sending new customers a "Welcome Kit. For example. Since these types of attributes of quality unexpectedly delight customers. but if it only contains six percent then the customer will feel misled and it will lead to dissatisfaction. These are attributes that are spoken of and ones which companies compete for.
CUSTOMER SATISFACTION MODEL Definition : The Kano model(customer satisfaction model) is a theory of product development and customer satisfaction developed in the 80s by Professor Noriaki Kano which classifies customer preferences into five categories: • Attractive : These attributes provide satisfaction when achieved fully. a thermometer on a package of milk showing the temperature of the milk. One-Dimensional : These attributes result in satisfaction when fulfilled and dissatisfaction when not fulfilled. you would follow up with an e-mailed discount.
This survey attempts to find out how various factors affect a customer's buying decision. because finding new customers is generally more costly and difficult that servicing existing or repeat customers. then it is unlikely that they are going to tell the company about them when asked about quality attributes. Definition 2: Understanding your customers is a critical element of providing customer service.when the package leaks. A survey might be used by a retail store chain wanting to know how customers feel about their stores. Product registration form provides an excellent opportunity to do market research. It is designed to identify areas needing improvement. • Indifferent : These attributes refer to aspects that are neither good nor bad. Find information and methods about how to gather and
. Many people are familiar with "business to customer" (B2C) or retaillevel research. Reverse : These attributes refer to a high degree of achievement resulting in dissatisfaction and to the fact that not all customers are alike. That means communication and data gathering.
CUSTOMER SATISFACTION RESEARCH Definition 1: Customer satisfaction research is that area of marketing research which focuses on customers' perceptions with their shopping or purchase experience. Since customers expect these attributes and view them as basic. Learn which attributes are perceived to be associated with the product(s). Many firms are interested in understanding what their customers thought about their shopping or purchase experience. and they do not result in either customer satisfaction or customer dissatisfaction. but when it does not leak the result is not increased customer satisfaction. some customers prefer high-tech products. while others prefer the basic model of a product and will be dissatisfied if a product has too many extra features. For example. It will explain the satisfaction of the customer. but there are also many "business to business" (B2B) or wholesale-level projects commissioned as well.
building business web forms. surveys. Definition 2: "Customer service is about treating others as you would like to be treated yourself". and help you establish fool-proof procedures that ensure prompt action is taken when a customer is unhappy with the products or services received. Mineful's market research software and online questionnaire tool helps you::: Create online surveys using an intuitive wizard interface. and easily analyzing and reporting data. provide for an orderly hand-off to someone who can address the matter. technical support and quality of service in a timely manner" EXAMPLES
.make sense of customer information . Definition 3: A wide variety of activities intended to ensure that customers receive the goods and services they require to satisfy their needs or wants in the most effective and efficient manner possible.satisfaction levels. during and after a purchase. It will help prevent customer problems from falling through the cracks. use of focus groups. View your data and create reports and graphs online. EXAMPLES • Many companies have easy-to-use form designed to aid in the quick resolution of customer service problems.
CUSTOMER SERVICE Definition 1: Customer service is the provision of service to customers before. including attitude knowledge.
Definition 4: Customer Service is the commitment to providing value added services to external and internal customers. Send invitations and track respondents using uploadable email lists. You can quickly customize the form to reflect the work flow of your company. Mineful is a web based software for creating online surveys.
They provide their customer the required support. negative. if equal to fair price. Surplus is the difference between the fair price and the price actually paid. If the price the customer pays is less than a fair price.. tMobile has a customer service which is through their own phone a message can be sent directly to their customer service centre. the surplus is positive.
CUSTOMER SURPLUS Definition 1: A measure of the value of a particular deal to the customer. Customer can send a secure email to them at anytime day or night. zero.
Bank of America has a 24 hour customer service. if more than the fair price.
Definition 2: It is the amount that consumers benefit by being able to purchase a product for a price that is less than the most that they would be willing to pay.
In the aggregate. customers flow from companies that provide inferior value to those that provide superior value.
CUSTOMER VALUE ANALYSIS Definition 1: Customer Value Analysis is a customer-survey methodology that helps customer increase market share.000 for the item concerned. Definition 3: An organization's rating of the value it provides to its customers relative to that provided by its competitors. then the bidding site will show me as the new highest bidder at £128.001.
. Only if someone bids more than £175. customers make purchase decisions based on their perceptions of value. In these markets. which are formed by their perceptions of quality and price.000. I might decide that I was willing to pay a maximum of £175. If the current highest bid is only £128.000 will I lose the auction. It works best in the business-to-business and consumer-durables markets.Definition 3: Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price they do pay. If a consumer would be willing to pay more than the current asking price. then they are getting more benefit from the purchased product than they spent to buy it. If another bidder offers £140.000 then the bidder will be informed that this is not the highest bid but the new bid price will now be £140.000. but I might end up paying the full £175.000 (I can but dream!). Definition 2: It shows how customers select between competing suppliers. EXAMPLES • If a bid to buy the yacht. The methodology examines the relationship between the perceived benefits customers identify with a product or service offering and their willingness to pay for those benefits.
Definition 2: CVM shifts the focus of the enterprise from managing products or marketing campaigns to managing the profitability of each individual customer over the entire life of the relationship. A product's relative value is the customer-perceived performance-for-price relative to rival brands.
CUSTOMER VALUE MANAGEMENT Definition 1: Customer value management is managing each customer relationship with the goal of achieving maximum lifetime profit from the entire customer base. and managing value. Definition 3: It is central to gaining the maximum lifetime value of managing customers by turning your data into Intelligent Information . While CVM can and does lead to better product offerings and more targeted campaigns.Definition 4: The path to improved customer value starts with data. analyzing. EXAMPLES • Company like colgate. and amortizing acquisition costs over a longer and more profitable period of engagement.
EXAMPLES • The Lucent Technologies business units commission surveys to measure the level of satisfaction of their customers and the level of satisfaction of competitor's customers. a customer value manager will ask different questions than a traditional marketing manager. Art and science of measuring. CVM solutions enable you to best respond to your customer needs in a timely manner. Survey results are used to manage the business at a fundamental level. Customer value analysis develops a quantitative picture of the markets in which you compete. they always mention the important parts of the product in their advertising such as it makes teeths
. reducing risk. Customer value management enables companies to take full advantage of the economics of loyalty by increasing retention.
Data mining is the computerbased exploration and analysis of large quantities of data in order to discover meaningful patterns and rules for the purpose of improving marketing. (Philip Kotler.
DATA WAREHOUSING • A collection of current data captured. trends. In essence. Data mining and data warehousing provide the means and the infrastructure for extracting strategic opportunity from knowledge of the customer. (Philip Kotler. include it in their marketing. •
Ziploc has mentioned on their packaging fresh food always. marketers are increasingly using data mining procedures. and web site usage are just some of the data that reside in customer databases. financial records.Marketing Management) Internet-based marketing strategies generate extremely large data sets from customer interactions.Marketing Management) IBM defines a data warehouse as a place that stores enterprise data designed to facilitate management decisions. and stored in a company’s contact center. Purchase histories.helps improve stain and much more.healthy. a data warehouse provides the basis for an analytical system
. and segments from the mass of data. sales. customer service records.they promote their product through advertising the essentials of the product. The combination of data mining procedures with data warehousing enables the MDSS to move beyond just support for the operational processes in the marketing organization and to focus on actual customer behaviour. In order to transform this mountain of diverse data into operationally useful information. organized.
DATA MINING • Extracting of useful information about individuals. and customer support operations. freez.
Firms collect data from these day-today business operations. households—or between 40 and 50 percent of the U. or by whether you order a salad with your pepperoni pizza. a marketing data warehouse is a repository for data that has been collected from internal and external data sources. fails to fully disclose
. application. Using its Teradata Warehouse Miner. Data sources may include scanner data. registration forms. billing records. Every record of a transaction or interaction with a customer. call reports.S. Deceptive Advertising is illegal. The millions of customer records are gleaned from point-of-sale transactions at its restaurants. or sales person is an opportunity to create knowledge. Data warehousing enables the firm to organize and store this data for analysis purposes. Data warehouses exist to support the decisionmaking process by providing ready access to market and customer data. Simply put. Data warehousing enables marketers to capture. market. and web site data. firms can design more effective and efficient ways to serve their customers.S.where periodic data points are collected and stored at specified times for future analysis. channel member. with 40 million U. and store potentially useful data about customers and markets for decision-making purposes. customer service inquiries. it is often organized and stored in a data warehouse. supplier. warranty forms. In order for this data to be useful. but can also target its marketing to find the best coupon offers for each household and predict the success of campaigns. Pizza Hut has not only been able to purge expensive duplicates from its directmail campaigns. date of last order. Advertising is considered as such when it makes spurious claims about a product. organize. DECEPTIVE ADVERTISING • Any advertising intended to mislead the consumers. Pizza Hut can slice and dice data by favourite toppings. Each customer generates a stream of transaction records over time. Example: PIZZA HUT Pizza Hut claims to have the largest fast-food customer data warehouse in the world. By careful analysis of this and other data.
It is one of the areas that information systems have sought most of all to affect (with mixed success). a medium-sized food manufacturer in an East African country faced strategic decisions concerning its range of pasta products. and matching the characteristics of the organisation to the environment. Moreover. For example bait and switch advertising by the retailers is considered as deceptive advertising. This is where the retailer advertises a low priced item (which may not be available or in extremely low supply) to increase his store traffic and the consumers buy its high priced substitute. This process generally involves a small group of high-level managers who deal with very complex. Strategic decision making: This level of decision making is concerned with deciding on the objectives. Decision making can be divided into 3 types: strategic. that it should supply the various pasta products and the local company put its own brand name on the packs. Concepts and Applications By Mark N. (The Marketing Glossary: Key Terms. resources and policies of the organisation. The laws prohibiting deceptive advertising are enforced by the Federal Trade Commission. However. some years ago. non-routine problems. The company faced the decision whether to make a very large investment in new machinery or to accept the offer of another manufacturer of pasta products. management control and operations control. The
. Advertising agencies. Clemente) DECISION MAKING: • Decision making is often seen as the centre of what managers do. the company was suffering recurrent problems with the poor quality of durum wheat it was able to obtain resulting in a finished product that was too brittle. unit costs were shooting up due to increasingly frequent breakdowns in the ageing equipment used in pasta production. For example. A major problem at this level of decision making is predicting the future of the organisation and its environment. celebrity endorsers and retailers may all be accused of engaging in deceptive advertising.information about it. something that engages most of a managers time. or otherwise creates false impressions. in a neighbouring country. These products constituted a sizeable proportion of the company's sales turnover.
evaluating outputs . it takes place within the context of broad policies and objectives set out by strategic planners. i. Operational control decisions: These involve making decisions about carrying out the “specific tasks set forth by strategic planners and management. important. establishing criteria of completion and resource utilisation. and non-routine. An example might be where a transporter of agricultural products observes that his/her profits are declining due to a decline in the capacity utilisation of his/her two trucks. Management control decisions are more tactical than strategic. including: selling of trucks. The implications of strategic decisions extend over many years.all of these tasks involve decisions about operational control.•
decision is strategic since the decision has implications for the resource base of the enterprise. this type of decision making focuses on adaptation of the marketing mix. how should the firm respond to an increase in the size of a competitor's sales force? Should the product line be extended? Should distributors who sell below a given sales volume be serviced through wholesalers rather than directly. Management control involves close interaction with those who are carrying out the tasks of the organisation.g. e. Determining which units or individuals in the organisation will carry out the task. They are novel. or seeking to switch to carrying products or produce with a higher unit value where the returns to transport costs may be correspondingly higher. increasing promotional activity in an attempt to sell the spare carrying capacity. its work force. often as much as ten to fifteen years. its technological base etc.e. The manager (in this case the owner) has to decide between several alternative courses of action. Within each of these levels.
. Management control decisions: Such decisions are concerned with how efficiently and effectively resources are utilised and how well operational units are performing. In particular. The focus here is on how the enterprises should respond to day-to-day changes in the business environment. Unstructured decisions are those in which the decision maker must provide insights into the problem definition. its capital equipment. decision making can be classified as either structured or unstructured. increasing unit carrying charges to cover the deficit. and so on.
Ideally. that the Operations Manager for the National Milling Corporation is faced with a decision as to whether to establish buying points in rural locations for the grain crop. design. The literature has described 4 stages in decision making: intelligence. It soon becomes apparent that the decisions are likely to be made over a period of time. it is helpful to break down decision making into its component parts. However. choice and implementation. where problems are either semi-structured or are totally unstructured. and involve a definite procedure for handling them so that they do not have to be treated each time as if they were new. Intelligence involves identifying the problems in the organisation: why and where they occur with what effects. That is. operational. once solutions are designed. information systems could assist in making such a decision. Structured and unstructured problem solving occurs at all levels of management. problems have to be perceived and understood. if at all. structured decisions are repetitive. the solution has to be implemented. whether sales targets are being achieved.•
and there is no well-understood procedure for making them. especially if they are designed to report exceptions. and management control decisions. at frequent intervals. In the past. This broad set of information gathering activities is required to inform managers how well the organisation is performing and where problems exist. finally. routine. exciting applications are occurring in the management and strategic planning areas. Management will want to know. for example. In contrast. Making decisions is not a single event but a series of activities taking place over time. use many sources of information and have to go through several stages. have several influences. To arrive at some answer. Suppose. in more recent times. consider a commercial organisation marketing a large number of different products and product variations. For instance. the information system will report only those
. It is worth considering the question of how. most of the success in most information systems came in dealing with structured. once perceived solutions must be designed. Management information systems that deliver a wide variety of detailed information can be useful. choices have to be made about a particular solution.
because of the detailed analytic models required to calculate the outcomes of the various alternatives. managers can install a reporting system that delivers routine reports on the progress of a specific solution. more carefully specified and directed information activities and capabilities focused on specific designs are required. some of the difficulties that arise. Choosing among alternative solutions is the third step in the decision making process. Designing many possible solutions to the problems is the second phase of decision making. Here. but without the aid of a formal information system. opportunities and consequences of each alternative problem solution. Here. The following table illustrates the stages in decision making and the general type of information required at each stage. we rely upon generalisation and/or intuition. and possible remedial actions. Stages in the decision making process In practice. human beings are used to making such calculations for themselves. Here a manager needs an information system which can estimate the costs. local buying points in all regions. Another scenario would be that having implemented a decision one quickly
. resource constraints. the stages of decision making do not necessarily follow a linear path from intelligence to design.•
products/product variations which are performing substantially above or below target. This phase may require more intelligence to decide if a particular solution is appropriate. the government decides to increase the amounts held in the strategic grain reserve. Of course. one may have reached stage 3 and all but decided that having considered the alternatives of setting up no local buying points. The information system required at this stage is likely to be fairly complex. At any point in the decision making process it may be necessary to loop back to a previous stage. choice and implementation. Implementing is the final stage in the decision making process. districts or villages. possibly also fairly large. This could cause the parastatal to return to stage 2 and reassess the alternatives. For example. Consider again the problem of balancing the costs and benefits of establishing local buying points for the National Milling Corporation.
The system then outputs information describing the implications of specific decisions.
DEMAND FORECASTING • Demand forecasting is the activity of estimating the quantity of a product or service that consumers will purchase. Demand forecasting involves techniques including both informal methods.
. Clemente). Again.
DEMAND ANALYSIS • Study of sales generated by a good or service to determine the reasons for its success or failure. DECISION SUPPORT SYSTEMS (DSS) • A computer based system designed to assist in management decision making. For example the management might ask: “If we increase the number of distribution outlets in a given area.receives feedback indicating that it is not proving effective. Decision Support Systems enable management to conduct “what-if” analysis. Decision Support Systems are comprised of specially developed software and hardware. what will be the impact on product sales in that area?” In marketing. Management inputs data (qualitative and/or quantitative) into the system. the decision maker may have to repeat the design and/or choice stage(s). (Such Systems may also be designed to recommend specific decisions). LG franchisees must make a sales register to analyse the consumers’ responses to their product. And the market research that is done to analyse the demand in the market. DSS are often used in sales forecasting and in determining media schedules. (The Marketing Glossary: Key Terms. Concepts and Applications By Mark N. Manufacturing companies regularly conduct market surveys and collect sales data to simulate demand and production requirements. and how its sales performance can be improved.
e. race and nationality. Vietnam and Africa. occupation. The main demographic segmentation variables are summarised below: Age Consumer needs and wants change with age although they may still wish to consumer the same types of product. for practical reasons. Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments). gender family size. package and promote products differently to meet the wants of different age groups. contrast the product and promotional approach of Club 18-30 holidays with the slightly more refined and sedate approach adopted by Saga Holidays. So Marketers design.
. For example. in assessing future capacity requirements. Examples Maruti Suzuki did demand forecasting for deciding the number of cars that are required to be produced Coca Cola decides the production output by the help of demand forecasting Mahindra and Mahindra did a market research to launch tractors in different countries i. This is partly because customer wants are closely linked to variables such as income and age. As you might expect.
DEMOGRAPHIC SEGMENTATION • Demographic segmentation consists of dividing the market into groups based on variables such as age. education. Demand forecasting may be used in making pricing decisions. such as the use of historical sales data or current data from test markets. religion. demographic segmentation variables are amongst the most popular bases for segmenting customer groups. income. and quantitative methods. Also.•
such as educated guesses. Life-cycle stage A consumer stage in the life-cycle is an important variable particularly in markets such as leisure and tourism. or in making decisions on whether to enter a new market. there is often much more data available to help with the demographic segmentation process.
home furnishings. Good examples include Coutts bank. hairdressing. Lifestyle Marketers are increasingly interested in the effect of consumer "lifestyles" on demand. Many companies target affluent consumers with luxury goods and convenience services. There is a clear link here with income-based segmentation. Examples include Aldi (a discount food retailer).an up-market travel company. Income Another popular basis for segmentation. Moet & Chandon champagne and Elegant Resorts . magazines and toiletries and cosmetics. many of them designed by advertising and marketing agencies as a way of winning new marketing clients and campaigns!
DETERMINISTIC SYSTEM • A model where specified conditions are always associated with precisely specified consequences i. The best examples include clothing. Unfortunately. Airtours holidays. Social class Many Marketers believe that a consumers "perceived" social class influences their preferences for cars. leisure activities and other products & services. and discount clothing retailers such as TK Maxx.e. many companies focus on marketing products that appeal directly to consumers with relatively low incomes. It is equivalent to the monetary difference between the two products’
. there are many different lifestyle categorisation systems. the values of which may be stated with certainty and are sufficient to describe the system behaviour.
DIFFERENTIAL WORTH • The difference in the worth (economic value) of benefits delivered by one product versus a reference product. a model based on variables. By contrast. clothes.•
Gender Gender segmentation is widely used in consumer marketing.
This is because the company must modify its product and incur increased costs for specialized administrative. Differentiated marketing creates more toatal sales than undifferentiated marketing. Differentiated Marketing tends to raise costs and firms may be forced to practice differentiated marketing to remain competitive. Like Mahindra Ultra. with separate marketing programmed to attract the different groups. inventory and promotional activities. An example of this would be airline companies offering first. The reference product can be the average product (in the category or consideration set) or a specific competing product. instant etc. decaffeinated. 5310. An example of differentiated marketing is a company that produces coffee and markets various types: regular. DIFFERENTIATED MARKETING • When a firm produces numerous products and promotes them with a different marketing mix designed to satisfy smaller segments. However. Nokia 1110. Example: Mahindra tractors have different products for different segment of population. In this type of product market the company. which enters first. business (segment 1) or economy class tickets (segment 2) .etc
DIFFUSED PREFERENCES • This refers to pattern of consumer preferences in terms of various attributes of a product or service. Nokia has various models catering to segments of the population. Eseries. Turbo. and Shaktiman. the costs of engaging in a differentiated are high. is likely to position its
. One of the preferences are known as diffused preferences where consumer preferences are scattered indicating that consumers vary greatly in terms of their preferences.positions on the fair-value line. A strategic consideration where a company chooses to operate in more than one market segment and develops specific products and promotional strategies for each.
Radio. sms/mms.product in the centre of the product preference map to appeal to the most people. As a result of this non-reliance on the Internet. and peer-group approval associated with using the brand. they are likely to position throughout the space and try to show real differences to match consumer-preference differences. Examples: Advertisements on television. the field of digital marketing includes a whole host of elements such as mobile phones. e) Price – the transactions price that the customer pays for the product. how well customers identify with the brand and its promise. If several brands are in the market.
. mobile and any other form of digital media. Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing. d) Brand affinity – KBFs relating to the authority the brand holds with customers. c) Relationship – customized connections and knowledge related to individual customers and key accounts. DIGITAL MARKETING • Digital Marketing is the promoting of brands using all forms of digital advertising channels to reach consumers. it extends beyond this by including other channels with which to reach people that do not require the use of The Internet.
DIMENSIONS OF CUSTOMER-PERCEIVED VALUE • CVI’s customer-value tree identifies six generic dimensions of customer-perceived value:
a) Product – relating to the good or core service being sold. display / banner ads and digital outdoor. b) Customer service – customer care activities that support the delivery of the product or core service. This now includes Television. and f) Other costs – that the customer incurs in addition to the transactions price not necessarily paid to the supplier. Internet. Digital displays in the malls for advertising.
infomercials). they can always be classified into these dimensions.Although the key buying factors will be different for different market categories. private) consumption expenditure) yields personal (or.direct channels to reach and deliver goods and services to customers without using marketing middlemen. curbside stands. DIRECT MARKETING • The use of consumer. Types of direct marketing include: distributing flyers. coupon ads in print media. minus personal current taxes equals disposable personal income. Subtracting personal outlays (which includes the major category of personal (or. television marketing (i. offer. etc. door-todoor solicitations. Includes methods such as Direct Mail and Telemarketing. magazine ads. private mailings) basis. or mass-media basis (infomercials.
DISPLAY ADVERTISING • Print advertising that appears in the editorial section of a publication and which usually features creative use of colours
DISPOSABLE INCOME • Disposable income is total personal income minus personal current taxes.. contact.directly reaching a market (customers and potential customers) on a personal (phone calls. FAX broadcasting. She hoped purchasing a mailing list for consumer direct marketing in her home town would bring her new prospective home buyers faster than word-of-mouth alone. and voice mail marketing. Direct marketing involves the business attempting to locate.e. In national accounts definitions.). personal income. Direct marketing is just what it sounds like . (Philip Kotler. Example: As soon as Beverly got her realtor's license she sent postcards to all the addresses listed in her zip code. rather than via a mass medium.Marketing Management) Sending a promotional message directly to consumers. and make incentive-based information available to consumers. private) savings.
business opportunities etc. The Nature of Distribution Channels Most businesses use third parties or intermediaries to bring their products to market. real estate. Intermediaries are specialists in selling.and illustrations to maximise communication effectiveness. as does use of colour. Price and Promotion. Display advertising contracts classified advertising. Functions of a Distribution Channel
. Why does a business give the job of selling its products to intermediaries? After all. Large display ads attract reader’s attention. They try to forge a "distribution channel" which can be defined as "all the organisations through which a product must pass between its point of production and consumption". The answer lies in efficiency of distribution costs. employment. The other three are Product. They have the contacts. Display ads vary in their design. which are print ads categorized under separate headings i.
DISTRIBUTION CHANNEL • Distribution (or "Place") is the fourth traditional element of the marketing mix. experience and scale of operation which means that greater sales can be achieved than if the producing business tried run a sales operation itself.e. using intermediaries means giving up some control over how products are sold and who they are sold to.
Organisations that form any particular distribution channel perform many key functions:
All of the above functions need to be undertaken in any market.Information Gathering and distributing market research and intelligence . assembling and packaging Negotiation Reaching agreement on price and other terms of the offer Physical Transporting and storing goods distribution Financing Acquiring and using funds to cover the costs of the distribution channel Risk taking Assuming some commercial risks by operating the channel (e.g.important for marketing planning Promotion Developing and spreading communications about offers Contact Finding and communicating with prospective buyers Matching Adjusting the offer to fit a buyer's needs. holding stock) The main function of a distribution channel is to provide a link between production and consumption. Numbers of Distribution Channel Levels Each layer of marketing intermediaries that performs some work in bringing the product to its final buyer is a "channel level". The figure below shows some examples of channel levels for consumer marketing channels:
. The question is .who performs them and how many levels there need to be in the distribution channel in order to make it cost effective. including grading.
the use of wholesalers makes economic sense.
.the travel agent. In consumer markets. Many holiday companies also market direct to consumers. not dominated by a small number of large. Panasonic. this is typically a retailer. An example of a direct marketing channel would be a factory outlet store. For small retailers with limited order quantities. A good example of this channel arrangement in the UK is the distribution of drugs. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony.•
In the figure above. Channel 3 contains two intermediary levels .i. since it has no intermediary levels. A wholesaler typically buys and stores large quantities of several producers goods and then breaks into the bulk deliveries to supply retailers with smaller quantities.e. Dixons and Currys which then sell the goods to the final consumers. This arrangement tends to work best where the retail channel is fragmented . Channel 1 is called a "direct-marketing" channel. sell their goods directly to large retailers such as Comet. In this case the manufacturer sells directly to customers. Canon etc.a wholesaler and a retailer. bypassing a traditional retail intermediary . Channel 2 contains one intermediary. powerful retailers who have an incentive to cut out the wholesaler. The remaining channels are "indirect-marketing channels".
they effective lose control over the final consumer price. Intermediaries typically charge a "mark-up" or "commission" for participating in the channel. via mail order or perhaps over the Internet? Another important factor is buyer needs for product information. warehousing).DISTRIBUTION • • The following table describes the factors that influence the choice of distribution channel by a business: Market factors: An important market factor is "buyer behaviour". If a manufacturer sells via a retailer. Which channels are best served to provide the customer with the information they need before buying? Does the product need specific technical assistance either to install or service a product? Intermediaries are often best placed to provide servicing rather than the original producer . Another factor is the extent to which producers want to maintain control over how. training. installation and servicing. train and equip a sales team.g. the only option may be to use agents and/or other distributors. The willingness of channel intermediaries to market product is also a factor. Similarly.for example in the case of motor cars. there is no guarantee for a producer that their product/(s) are actually
. shop fitting etc. Another important factor is intermediary cost. Many channel intermediaries focus heavily on the customer interface as a way of creating competitive advantage and cementing the relationship with their supplying producers. Producer factors: A key question is whether the producer has the resources to perform the functions of the channel? For example a producer may not have the resources to recruit. They may decide not to support a particular product if it requires too much investment (e. Retailers in particular invest heavily in properties. how do buyer's want to purchase the product? Do they prefer to buy from retailers. to whom and at what price a product is sold. If so. This might be deemed unacceptably high for the ultimate producer business. Producers may also feel that they do not possess the customerbased skills to distribute their products. locally. display equipment. since the retailer sets the price and any relevant discounts or promotional offers.
Direct distribution gives a producer more control over these issues.they have a preference for a particular brand or price and will search out the outlets that supply. if one brand is not available. training) on them. beer). Distribution Intensity: There are three broad options . many of the dot com
been stocked by the retailer.which claims to clean better than all the leading brands. This is called as doubtful positioning. retailer or distributor is used in a specific geographical area. An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets and focus effort (e. Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products.intensive.in other words . meat. Sometimes companies try and create brand among consumers even before positioning the brand clearly in the market. Intensive distribution is usually required where customers have a range of acceptable brands to choose from. complex medical equipment sold to hospitals). Another example will be the claims for various products in QVC channel: Oxyrich .
DOUBTFUL POSITIONING • Claiming a benefit that customers will doubt that the brand can actually deliver.g.g. a customer will simply choose another. Weight loss pills etc. selective and exclusive distribution: Intensive distribution aims to provide saturation coverage of the market by using all available outlets. Ashvini hair oil . In other words.g. For example. Product factors: Large complex products are often supplied direct to customers (e. Exclusive distribution is an extreme form of selective distribution in which only one wholesaler. a mutual fund offers 100% returns on investment. For many products. total sales are directly linked to the number of outlets used (e. For instance.which promises to stop hair loss. cigarettes. bread) require relatively short distribution channels ideally suited to using intermediaries such as retailers. By contrast perishable products (such as frozen food. Selective distribution works best when consumers are prepared to "shop around" .
Examples: 1) Subscribers of newsletter receive them at regular intervals. Social Media: The principles of Drip Marketing have been applied in many social media marketing tools to schedule a series of updates. Facebook. Direct Mail: Although more costly. HootSuite. One popular tool. DRIP MARKETING • Drip Marketing is a communication strategy that sends. (2) the messages are dripped in a series applicable to a specific behavior or status of the recipient. In this method. although other media can also be used. and the variable data can be merged to personalize each drip message. 2) Reminder of your membership of a website to be over soon. Email drip marketing is often used in conjunction with a Form (web) in a method called an Auto responder. Drip marketing is unique from other database marketing in two ways: (1) the timing of the messages follows a pre-determined course.companies spent heavily on television advertising without themselves being clear of what they were selling. direct mail software has been developed that enables drip marketing techniques using standard postal mail." a pre-written set of messages to customers or prospects over time. LinkedIn. or "drips.
. and several other social media sites simultaneously. a lead completes the form on a company's website and is then enrolled in a drip marketing campaign with messaging appropriate to the form's context. where low-volume print runs are cost justifiable. due to the low cost associated with sending multiple messages over time. These messages often take the form of E-mail marketing. allows users to time messages and disseminate via Twitter. This technology relies on digital printing. Drip Marketing Mediums E-mail: The most commonly used form of drip marketing is Email marketing.
might have been successful if developed(International Marketing-Cateora Graham)
➢ The pilot for “Friends”. Koshi. in hindsight. one of the longest running hit comedies on TV was deemed as ‘not very entertaining or original’. Kelly. Jha) A decision to drop a PRODUCT from the line.DROP ERROR
It occurs when a company dismisses an idea which turns out to be good and successful later.
Dual adaption is a marketing strategy designed by Philip Kotler. It means that you adapt the product to the local market. but also adaption for the commercial message. Jha) It involves altering both the product and the communications. or to discontinue development of a new product which subsequently proves to have been a premature decision. Kelly. DUAL ADAPATION
Adapting the product and the communication according to the local market(Marketing Management-Kotler. (Basic Marketing.Cannon)
. It is for companies which introduce their products in a new country. (Marketing Management-Kotler. in light of successes achieved by competitors with similar developments(The Westburn Dictionary of Marketing edited by Michael J Baker)
A mistake made by a company in deciding to abandon a new product idea that. Koshi.
or below its cost.
The practice of selling a good in a foreign market at a price that is lower than its domestic price.Stanton and Futrell)
➢ Unilever fabric softener.•
Using Dual Adaptation the company must adapt the product or service as well as the marketing communication to the foreign market(International Marketing-Joshi)
It refers to the changes made to the product and to communications strategy.To make this option profitable. the foreign market or markets need to be of sufficient volume.Comfort went through a number of changes: a new logo and more modern packaging in 1992 and the first fully biodegradable formulation ➢ The classic example comes from National Cash Register. It calls for extensive research and development expenses and tooling costs. It recognizes the socio-cultural differences from country to country. (Fundamentals of Marketing. (Marketing-Lamb. (International Marketing-Joshi)
The sale of an exported product at a price lower than that charged for the same in the home market of the exporter. Hair. McDaniel) Practice of pricing a product in a foreign market below the going price in the domestic market(Marketing-Churchill and Peter)
. which manufactured a crank-operated cash register and promoted it to businesses in less-developed countries.
➢ In 2002. Finland. Kelly. hence US had to impose steel tariff on imported steel(Marketing-Grewal and Levy ) ➢ Motorola had to eliminate defects to save costs. Jha)
.Stanton and Futrell)
A situation in which a company charges either less than its costs or less than its charges in the home market. foreign countries started dumping low cost steel in the US market.•
The practice of charging either less than its costs or less than its charges at home in order to enter or win a market. Koshi.either to meet foreign competition or to dispose of outmoded products (Fundamentals of Marketing. (MarketingGrewal and Levy )
Selling products in the foreign markets at prices below the prices charged for these goods in their home market. when foreign competitors were dumping pagers in the Japanese market
➢ Canadian steelmaker Stelco successfully fought dumping of steel products in Brazil. India. Thailand. they tend to buy after they see that a product will work.( Marketing ManagementKotler.
The secondary category of buyers to try a product. and Ukraine. in order to enter or win a market (Marketing Management-Kotler. Koshi. Kelly.
Fredell. who adopt to new social systems before others do(Consumer Behaviour-Blackwell.Engel)
An early adopter or lighthouse customer is an early customer of a given company. in politics. Koshi.(Marketing-Pride. fashion. Jha)
People who chose new products and are viewed as “the people to check with”. product. as the early adopters moved onto their new products. art. Twitter’s success has shattered a widely held belief that young people lead the way to popularizing innovations
ECONOMIES OF SCALE
. Kelly. McDaniel) Opinion leaders who carefully search for new technologies that might give them a dramatic competitive advantage. with good social skills and respect within larger social systems. Hair. wait and purchase the product after careful review. They enjoy novelty and are often regarded as the opinion leaders for particular product categories. and other fields. (Marketing-Lamb.Grant) Opinion leaders and role models for others . They are less price sensitive and willing to adopt the product if given personalized solutions and good service support (Marketing Management-Kotler. this person would be referred to as a trendsetter(Marketing-Grewal and Levy )
Category of buyers that don’t like to take much risk. or technology.
➢ Twitter has been embraced by an older demographic. a successful brand for sports car enthusiasts saw a decline in sports car sales after it entered the SUV mass market.
This poses a threat to smaller businesses that can be “undercut” by the competition Secondly. they are piggybacking on FedEx by being an intermediary. Assuming the business sells the cabinets for £350 each. the profit margin per cabinet rises from £100 to £150. airplanes. (Basic MarketingCannon) Cost advantages associated with large-scale production. Economies of scale are the main advantage of increasing the scale of production and becoming ‘big’. then reselling it.000 cabinets at £250 each might expand and be able to produce 2. The total production cost will have risen to £400.000. a furnituremaker which could produce 1.000 cabinets at £200 each. a business could choose to maintain its current price for its product and accept higher profit margins. or branding. getting a lot of business and buying FedEx services for a very good rate. • Economies of scale gives big companies access to a larger market by allowing them to operate with greater geographical reach the benefits associated with bulk purchasing. For example. They simply Joint Venture with FedEx and use
. because a large business can pass on lower costs to customers through lower prices and its share of a market. reductions in the price per unit of marketing or manufacturing a product as the quantity marketed or produced increases ➢ The other courier companies use FedEx and charges less than FedEx! They are not really competing with FedEx. They don’t have huge overhead. Economies of scale refers to the notion of increasing efficiencies of the production of goods as the number of goods being produced increases. Why are economies of scale important?
Firstly.000 from £250.•
Economies of scale arise when the cost per unit falls as output increases. but the cost per unit has fallen from £250 to £200.
(Fundamentals of Marketing. or social and economic trends. The marketer must be positioned through competitive intelligence and other market trend research to respond quickly to environmental threats. And everybody wins: FedEx. Kelly.economies of scale. legislative changes. An environmental threat might be the entrance of a new competitor. the customer and the middleman (or Joint Venture broker) ➢ Wal-Mart WMT is perhaps the most salient example of a company benefiting from economies of scale.000 large stores worldwide.Stanton and Futrell)
Challenges posed by an unfortunate trend -lead to erosion of company’s position(Basic Marketing. the introduction of a new brand.Cannon)
An unfavorable condition in organization’s environment which creates a risk or causes damage to the organization
. ENVIRONMENTAL THREAT
A challenge posed by an unfavorable trend or development that would lead to lower sales or profit(Marketing Management-Kotler. its size allows Wal-Mart to do its own purchasing more efficiently since it has roughly 5. Koshi. As a dominant player in retailing. external to the marketing organization. Jha) Any factor in the market. that has the potential to negatively impact demand for the marketer's product or service. the company's size provides it with enormous efficiencies that it uses to keep costs low. This gives the company tremendous bargaining power with its suppliers. the merger of two competitors. For example. the development of new technology.
➢ Microsoft. institutional. (Marketing-Churchill and Peter) Collection and interpretation of information about forces. events and relationships in the external environment that may affect the future of the organisation or the implementation of the marketing plan(Marketing-Lamb.➢ the tobacco industry has faced numerous environmental threats due to increased social. (Marketing Management-Kotler. Oracle and Sun are developing similar products The challenge of getting the customers and software developers to focus on the . including demand for goods and services. Koshi. Kelly. and legislative pressure against smoking. (Marketing-Churchill and Peter)
The practice that seeks to identify the trends that offer previously untapped opportunities or can change the market for goods and services.Net faces the following threatsRival companies such as HP. Hair. medical. The tobacco industry responded by deeply discounting some brands and redirecting its resources to non-tobacco products and to foreign markets where the environmental threats are not as great. McDaniel)
. Jha) The practice of keeping track of external changes-economic. political.Net message while US government fights with Microsoft to split into two companies Traditional windows based users and windows software developers’ old mentalities resisting change
ENVIRONMENTAL SCANNING • The process of tracking external changes that can affect markets. legal. technological and competitive forces that can affect markets. social.
after analysing the economic conditions in Europe.Engel)
. Blotnicky. ➢ During recession of the early 1990’s.•
The process of monitoring external environment to influence marketing strategy by identifying potential opportunities and threats. mail-order house “Lands End” advertised an attaché case at the same price tag that it carried in 1985
➢ H&R Block. the process wherein the consumer evaluates through the various possible options and choices based on a set of important attributes or features.Grant)
➢ European car-maker FIAT . benefits from changes in tax codes that motivate citizens to have their tax returns prepared by a professional ➢ Several car companies have come up with hybrid cars after scanning the market needs for environmentally friendly cars EVALUATION OF ALTERNATIVES • After the recognition of problem. and strategic uncertainties (Marketing Management-Panda) Process of collecting information about forces in the marketing environment (Marketing-Pride. creating new models and selling off pieces of company’s holdings. came up with the strategies of streamlining management. trends. (Marketing-Grewal and Levy) Process of comparing different products and brands based on standards and specifications(Consumer BehaviourBlackwell. a tax preparation service.Fredell.
the consumer compares the brands and products that are in their evoked set. Companies respond to this buy researching how various consumers evaluate brand alternatives. That is the question Verizon wants consumers to ask themselves when they are evaluating brand alternatives.
➢ Verizon has been at a big disadvantage in the smart phone market because of AT&T exclusive right to distribute the iphone. This is because smartphones require a fast internet connection to be of much use.Cannon)
At this stage in consumer buying process. and on the specific buying situation." During this stage of the process. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. it may run extremely slow in many places where a consumer would want to use it. They have responded with a marketing campaign that focuses on how much larger their 3g coverage is then AT&T's.
. and adjust their marketing accordingly.•
The third step of the "Buyer Decision Process" is the "Evaluation of Alternatives. So while AT&T may have the hottest phone. a consumer arrives at a final set of brand choices and then must evaluates them based on their own individual needs. (Basic Marketing. Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer.
It the skill of publicising fund-raising drives for non-profit organisations. These constant prices eliminate week-to-week price uncertainty(Marketing Management-Kotler. also called value pricing. waiting for discount promotions. or comparison shopping. (Fundamentals of Marketing. A retailer holding this policy charges a constant low price with little or no price promotions and special sales. Kelly.
P&G led a campaign called "Moms from the Heart" in alliance with UNICEF to raise funds and awareness for programs that fostered early childhood development. Alistair Campbell. Koshi. saves manufacturers the cost of distributing and processing coupons. EDLP saves retailers the time and expense of periodic price markdowns. EDLP saves retail stores the effort and expense needed to mark down prices in the store during sale
.Stanton and Futrell) Everyday low price ("EDLP") is a pricing strategy promising consumers a low price without the need to wait for sale price events or comparison shop. The campaign helped P&G to achieve a strong double bottom-line result by strengthening pampers equity and sales while significantly reducing child mortality. Kelly. Jha) ➢ NDTV Greenathon was to spread the message of environmental concern ➢ The likes of Angus Deaton. and is believed to generate shopper loyalty. Jha) It is a pricing strategy that promises consumers the lowest available price without coupon clipping. (Marketing Management-Kotler. DJ Spooney and Ben Shepherd all help raise money for the Cystic Fibrosis Trust.
EVERYDAY LOW PRICING(EDLP) • It takes place at the retail level.
McDaniel) Use of single wholesaler or retailer to serve each territory(Marketing-Churchill and Peter)
Form of distribution where the supplier agrees to sell only to a particular middleman or retailer in a given market(Fundamentals of Marketing. Hair. while discouraging cherry pickers who seek promotions. Ram Rao. Every Day Low Pricing (EDLP) strategy has proved to be a successful innovation resulting in higher profits to supermarkets adopting it in competition with Promotional Pricing (PROMO). and to market these events. For example.The University of Texas at Dalla) ➢ “6 Ten” outlets also offer everyday discounts on groceries ➢ “Subhiksha” medicines and vegetable stores mentioned the savings made by the customer on that days purchases ➢ Bharti Wal-mart’s “Easy Day” retail outlets sell all products at discounted prices ➢ The “Electronics Store” sells all electronics lower than the MRP ➢ Since the fall of 1991.32. P&G eliminated trade promotions for Dawn dishwashing liquid and then set the brand's price to a standard average of $1.
EXCLUSIVE DISTRIBUTION • Form of distribution that establishes on or a few dealers within a given area(Marketing-Lamb. rather than pricing it at 99 [cents] one week and $1. when P&G moved many of its brands to an everyday-low-pricing strategy (EDLP).Stanton and Futrell)
.49 next.• •
events. and is believed to generate shopper loyalty It is a trading practice in which periodic promotional discounts are eliminated to provide consistently lower-than-customary prices.( Rajiv Lal. Conventional wisdom attributes this success either to lower costs or to EDLP better serving time constrained consumers.Stanford University.
Severely limiting the number of intermediaries, in order to maintain control over the service level and outputs offered by resellers. (Marketing Management-Kotler, Kelly, Koshi, Jha)
Use of few outlets in a relatively large geographical area. It is suitable for products purchased infrequently, consumed over a longer period of time and require service or information to fit them to buyers needs.(Marketing-Pride,Fredell, Blotnicky,Grant)
➢ Products such as Rolls Royce, Chris-Craft power boats, Pettibone tower cranes are distributed under exclusive arrangements. ➢ Radio Shack has prospered by offering electronics manufacturers exclusivity within its stores ➢ Manufacturers of farm machinery and large construction equipment frequently use exclusive distributorships. ➢ Italian designer label Gucci controls its distribution to maintain its exclusive brand image ➢ Patek Philippe watches are available only in a few select locations
The strategic process of understanding consumer desires , creating(designing) and delivering a particular form of experience, and communicating the firm’s proposed experience to consumers in way that differentiates the brand from competitors in the consumer’s mind. (Consumer BehaviourBlackwell,Engel)
The experiential platform which includes a dynamic, multisensory,multi-dimensional depiction of the desired experience (referred to as the “experiential positioning”) and a specification of the experiential value (“the experiential value promise”) that the customer can expect from the product or service.
➢ Singapore Airlines focuses on delivering an extraordinary experience—“a great way to fly”—through outstanding service. The company has thought through every step of the customer experience, even in economy class. ➢ Amazon.com provides a marvelous online shopping experience. The site has the right look and feel, as well as an amazing interface. Amazon.com is continuously improving on the experience it provides. ➢ Drying net by surf excel detergent cake. ➢ Appolo Tyres with Hand bag to carry the tyre easily. ➢ Harpic nozzle pack for easy cleaning of closet of toilet.
FAD • A craze that is unpredictable, short-lived, and without social, economic and political significance(Marketing Management-Kotler, Kelly, Koshi, Jha) A short-lived fashion that is usually based on some novelty feature (Fundamentals of Marketing- Stanton and Futrell) Products that experience an intense but brief period of popularity(Marketing-Churchill and Peter) A fashion that is taken up with great enthusiasm for a brief period of time; a craze.
• • •
A fad is a practice or interest followed for a time with exaggerated zeal. (Consumer Behaviour-Blackwell,Engel) A desirable trend characterized with lots of enthusiasm and energy over a short period of time. Fads are often seen with common consumer items, especially around a holiday season (Basic Marketing- Cannon) A Fad is an extraordinary appeal, the public adores, for a brief period in time.
➢ Ex:The Beanie Baby ( a stuffed animal, made by Ty Warner Inc.) became a phenomenon in the late 1990s when Beanie Babies became both a fad and a collectible. The craze lasted through 1999 and slowly declined. ➢ A growing group of American abstract Artists began the ‘Optical Art’ movement. For about a year, these fashion followers only wore black and white.
➢ Leveraged buy-outs (Takeover of a company or controlling interest in a company, using a significant amount of borrowed money) were used frequently in the 1980s for companies looking for acquire rivals, suppliers, and other related entities. In the late 1990s though, LBOs became less popular. ➢ The spectacular vintage ties and skinny ties worn on the program Mad men on AMC(1960’s), turned into a huge fad in men’s fashion.
FAMILY BRANDING • Marketing of several products under the same brand name. (Marketing-Lamb, Hair, McDaniel) Use of same brand name for the entire product line(Marketing-Churchill and Peter)
etc ➢ Holiday Inn portfolio is as. Jha)
➢ Sony’s family brands include music systems. The individual brands benefit from the overall brand awareness associated with the family brand.•
When all products are sold under one corporate name.
➢ All products sold through The Gap stores bear only The Gap brand name. ➢ General Electric Company (GE) brands its appliances prominently with the GE brand name. deodorants and aftershaves. Holiday Inn Hotels.Holiday Inn Select. the Black and Decker brand was put on those appliances. ➢ When Black and Decker purchased General Electrics’ line of small appliances. etc
➢ Gillette Company uses the family brand Gillette Series for a line of men’s shaving products. DVD players. Kelly. Holiday Inn Suites. .(Marketing-Grewal and Levy) The use of the same family or blanket brand name for all products in a firms product line(Fundamentals of MarketingStanton and Futrell)
Situation where the parent brand is already associated with multiple products through brand extensions. FEATURE
. TVs. Koshi. (Marketing Management-Kotler.
Kelly. whose fading indicates the time to change the brush
➢ Extra chocolates. nuts. to help prevent overly vigorous brushing from damaging gums ➢ Gillette’s Oral-B toothbrushes include a patch of clue bristles .
FEATURE IMPROVEMENT • Adding new features. fudge and pieces of brownie in the Haagen-Dazs Triple Brownie Overload ice-cream ➢ The Zen Estilo VXi model has airbags and electronic power steering. versatility. materials. Koshi. weight. a sweeter variation of the old drink ➢ Bajaj introduced several models of Pulsar with improved looks. power. safety or convenience(Marketing Management-Kotler. etc
. (Marketing –Churchill and Peter) Specifications about a product that enhance its value and supplementtheir basic function. Marketers select product features by determining what their customers want their products to offer.•
A fact or technical specification about a product. and accessories that expand the products performance. additives. engine. such as size . Kelly. (Marketing ManagementKotler. Koshi. Jha)
➢ Tiny spring in the handle of a GSK Flex Toothbrush. Jha)
➢ Coca-cola replaced its old formula with the New Coke.
advertising. Koshi.➢ Pepsi and Coke offer drinks in different sizes-5ooml.5ltr. Jha)
The process of creating a new a product. in return for a financial commitment and an agreement to conduct business in
. using its name. Kelly. in which the company (the franchiser) grants a franchisee the right to market its product. (International Marketing-Cateora Graham)
➢ Haagen Dazs created an ice-cream flavour for sale solely in Argentina ➢ Philips had to change the size of its coffeemakers in Japan to fit the size of their small kitchens
➢ Quaker Oats researches the countries nutrition needs and formulates new products ➢ BMW modifies the ground clearance of some of its cars in India in accordance to the roads
FRANCHISING • It is a form of licensing. or modifying an existing product in order to capture a new market. logo. methods of operation. 1. and other elements associated with the franchisers business. 1 ltr. products. 2ltr FORWARD INVENTION
Creating a new product to meet a need in another country(Marketing Management-Kotler.
. capital and personal involvement in management. Ebay started hosting auctions for forehead advertising and other tattoo advertising. The concept was created by Justin Kapust through his organization. and management services. where through affinity programs and exclusive marketing rights. and the media frenzy that came along with it. Kelly. KFC Corp.
FIXED PERSONALITY ASSOCIATION A qualitative technique used by a moderator where images of people. or things are shown to participants and they are then asked to interpret the pictures around a given topic. (International Marketing-Cateora Graham) ➢ Subway. systems. Jha) • It is a rapidly growing form of licensing in which the franchisor provides a standard package of products. called Headvertise (Kapust-Allen Enterprises. Mc Donalds are amongst the well known franchisers with international visibility. now defunct) in late 2002 Soon after its launch.accordance with the franchisers standard of operations. The same images are shown in several sessions to different respondents so that results can be applied as norms. Koshi.etc are amongst the worlds top 10 global franchisers. ➢ Holiday Inn Marriott..(Marketing Management-Kotler.
FOREHEAD ADVERTISING Forehead Advertising is an advertising concept that uses people's foreheads as advertising spaces. Pizza Hut. Headvertise hired college students to run advertising campaigns for its clients on college campuses.market knowledge. many companies cannot advertise. The UPS Store. places. and the franchisee provides .
FULL MARKET COVERAGE STRATEGY One of the market-targeting strategies in which a company attempts to serve all customer groups (segment) with all the products they might need. GENERATION OF ALTERNATIVES The process by which a consumer generates alternative solutions or identifies alternative products that help achieve a solution to the problem he has identified or satisfy a need. Large companies can cover a whole market in two broad ways: through undifferentiated marketing or differentiated marketing. these alternative solutions help the same level of utility that he would have achieved if he would have gone with the original solution or product GENERIC BRAND No-frills goods stocked by some retailers. Moreover. have little or no promotion support. Whilst this sort of activity may seem to share the characteristics of marketing research it is carried out by the manager him/herself rather than a professional researcher. Member of a decision-making unit who decides the limiting factors and constraints in the decision of purchase of a product.For example. The information will be required to address a specific issue. it dominates every other offering in the category.This is a purposeful search after information in some systematic way. GATEKEEPER A person who allows certain information to flow & restricts flow of some set of information.000 for a bike to be bought by the son. Parents play the role of gatekeeper in the selection of TV channels for children. the budget maybe fixed by the gatekeeper. If an offering provides both the lowest price and best performance. However. This person has an overall impact on the buying decision by specifying some factors and conditions under which a particular product can be bought . Normally. the scope of the search is likely to be narrow in scope and far less intensive than marketing research FRONTIER OFFERINGS Products and bundled services that sell at the lowest price in their performance range. the father to be say up to a max of 50. are
. very large firms can follow full market coverage strategy. These items usually receive secondary shelf locations.
Hence. Marketers will tailor marketing programs to fit the needs of individual geographic areas. localizing the products. land surveying. the region or the country. public utility management. In the simplest terms. and presents data that are linked to location(s). and have plain packages. such as nations. natural resource management. for example. GEOGRAPHIC INFORMATION SYSTEMS Geographic information systems (GIS) or geospatial information systems is a set of tools that captures. advertising. manages. jurisdiction. purpose or application oriented for which a specific GIS is developed. analyzes. are stocked in limited assortments. and localized search engines. cartography. enterprise. emergency management.sometimes of less overall quality than other brands. In Mexico more chilli sauce is added and so on. or purpose may
. Asia and Africa. GEOGRAPHIC SEGMENTATION Geographical segmentation divides markets into different geographical areas. Mcdonalds globally. remote sensing. navigation. aerial video. regions. precision agriculture. sell burgers aimed at local markets. GIS may be used in archaeology. Marketers use geographic segmentation because consumers in different areas may display certain characteristics and behaviours in that particular region. for example. cities. geography. burgers are made from lamb in India rather then beef because of religious issues. it digitally creates and "manipulates" spatial areas that may be jurisdictional. Market segmentation strategy whereby the intended audience for a given product is divided according to geographic units. states. urban planning. Marketers will also study the population density or regional climate as factors of geographic segmentation. stores. North America. GIS is the merging of cartography. counties. and database technology. in London UK certain parts of the West End of London are more affluent then the East End and you will find particular products sold in these regions based on their affluence. South America. As GIS can be thought of as a system. a GIS developed for an application. statistical analysis. and sales effort to geographic differences in needs and wants. or neighborhoods. photogrammetry. If you are an organisation working on a global scale you may divide by global regions such as Europe. An area can be divided by the town.
The shipping cost from the factory or warehouse is paid by the purchaser. a concept that has no such restrictive boundaries. in a general sense. or purpose. irregularly shaped price boundaries can be drawn that reflect geography. edits. Basing point pricing . Zone pricing . jurisdiction. and present the results of all these operations. stores. GIS applications are tools that allow users to create interactive queries (user-created searches). All goods shipped from a given basis point are charged the same amount.(also called postage stamp pricing) . transportation infrastructure. maps. and is used as a promotional tactic.The seller absorbs all or part of the cost of transportation. shares. GEOGRAPHICAL PRICING Geographical pricing.Certain cities are designated as basing points. Therefore. and displays geographic information for informing decision making. Ownership of the goods is transferred to the buyer as soon as it leaves the point of origin. population density.The same price is charged to all. GLOBAL FOCUS GROUPS
. What goes beyond a GIS is a spatial data infrastructure (SDI). in marketing. edit data. This amounts to a price discount. It is intended to reflect the costs of shipping to different locations. enterprise. GIS can be studied in degree and certificate programs at many universities. analyzes. Instead of using circles. the term describes any information system that integrates. Freight-absorption pricing . analyze spatial information. applications and systems. is the practice of modifying a basic list price based on the geographical location of the buyer. Geographic information science is the science underlying the geographic concepts. It can be either the buyer or seller that arranges for the transportation. and shipping cost. This is sometimes done by drawing concentric circles on a map with the plant or warehouse at the center and each circle defining the boundary of a price zone.Prices increase as shipping distances increase. Uniform delivery pricing . There are several types of geographic pricing: FOB origin .not be necessarily interoperable or compatible with a GIS that has been developed for some other application.
The product packaging in every country incorporates the contour bottle design and the dynamic ribbon in some way. Unless a company holds the same position against its competition in all markets (market leader. at the global marketing level.” Oxford University Press’ Glossary of Marketing Terms. 2004. carry out the group via a video conferencing link.
GLOBAL MARKETING The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences. similarities and opportunities in order to meet global objectives. Here are three reasons for the shift from domestic to global marketing as given by the authors of the textbook. and promotion are all affected as a company moves through the five evolutionary phases to become a global company. shape. tariffs. etc. Price is affected by many variables: cost of product development (produced locally or imported).Focus groups conducted using satellite video technology in which participants are located in different places. cost of delivery (transportation. Ultimately.). the product’s position in relation to the competition influences the ultimate profit margin. a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan. These are focus groups that instead of meeting face-to-face. the bottle or can also includes the country’s native language and is the same size as other beverage bottles or cans in that same country. However. or form. etc. Additionally. Whether this
. Price Price will always vary from market to market. For example. cost of ingredients. normally in different countries.) it is impossible to launch identical marketing plans worldwide. Also called video focus groups. Global Marketing Management—3rd Edition by Masaaki Kotabe and Kristiaan Helsen. Coca-Cola uses two formulas (one with sugar. Product A global company is one that can create a single product and only have to tweak elements for different markets. and much more. placement. one with corn syrup) for all markets. The “Four P’s” of marketing: product. low cost. price.
integrated marketing is the goal. and to speak with one voice. expensive choice. minimize redundancies in personnel and work. Effective global advertising techniques do exist. For example. At this stage of a company’s development. A good deal is where the customer pays a price that is less than the fair price (as determined by the product’s relative performance. Using Coca-Cola as an example again. Market research measures such as Flow of Attention. then delivering that message in a relevant. a high-end product would not want to be distributed via a “dollar store” in the United States. Placement decisions must also consider the product’s position in the market place. Promotion After product research. engaging. The key is testing advertising ideas using a marketing research system proven to provide results that can be compared across countries. In the United States. maximize speed of implementation. not verbal. not all cultures use vending machines. elements of the ad. Placement How the product is distributed is also a country-by-country decision influenced by how the competition is being offered to the target market. promotion (specifically advertising) is generally the largest line item in a global company’s marketing budget. the economical. GREY MARKET
. and costeffective way is the challenge. beverages are sold by the pallet via warehouse stores. development and creation. or something in-between helps determine the price point. low-cost choice. a product promoted as the low-cost option in France would find limited success in a pricey boutique.product is considered the high-end. Conversely. GOODNESS OF THE DEAL an evaluation of whether or not the customer paid a fair price for a product. Flow of Emotion and branding moments provide insights into what is working in an ad in any country because the measures are based on visual. this is not an option. If the goal of a global company is to send the same message worldwide. The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized. The global corporation seeks to reduce costs. In India.
Thus green marketing incorporates a broad range of activities. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other. Typically. while legal.A grey market or gray market also known as parallel market is the trade of a commodity through distribution channels which. The term gray economy. The legal implications of marketing claims call for caution. refers to workers being paid under the table. as well as modifying advertising." A black market is the trade of goods and services that are illegal in themselves and/or distributed through illegal channels. Misleading or overstated claims can lead to regulatory or civil challenges. however. notably crude oil in 2008. unregulated (though often technically legal) trading in commodity futures. or unintended by the original manufacturer. certain drugs or unregistered handguns. packaging changes. including product modification. such as the selling of stolen goods. green marketing is the marketing of products that are presumed to be environmentally safe. It is sometimes referred to as the underground economy or "hidden economy. are unofficial. yet unregulated. Other similar terms used are Environmental Marketing and Ecological Marketing. without paying income taxes or contributing to such public services as Social Security and Medicare. Sometimes the term dark market is used to describe secretive. guerrilla marketing
. This can be considered a third type of "grey market" since it is legal. The two main types of grey market are imported manufactured goods that would normally be unavailable or more expensive in a certain country and unissued securities that are not yet traded in official markets. an example of this will be the existence of varying social. the Federal Trade Commission provides some guidance on environmental marketing claims GUERRILLA MARKETING The concept of guerrilla marketing was invented as an unconventional system of promotions that relies on time. energy and imagination rather than a big marketing budget. In the USA. unauthorized. GREEN MARKETING According to the American Marketing Association. and probably not intended or explicitly authorized by oil producers. changes to the production process. environmental and retail definitions attached to this term.
Guerrilla marketing involves unusual approaches such as intercept encounters in public places. A company utilizes a concentrated targeting strategy for this group. HETEROGENEOUS MARKET A market characterized by buyers with different needs and wants. or common sense. Heuristic methods are used to identify an optimal solution as rapidly as possible. The objective of guerrilla marketing is to create a unique. any unconventional marketing intended to get maximum results from minimal resources. and discovery. HEURISTICS Heuristic or heuristics refers to experience-based techniques for problem solving. This market requires the company to divided the market into groups by a process called market segmentation. information to control problem solving in human beings and machines
. The company then develops a different marketing mix to satisfy each of these groups or segments. an educated guess. More innovative approaches to Guerrilla marketing now utilize cutting edge mobile digital technologies to really engage the consumer and create a memorable brand experience. though loosely applicable. PR stunts. potentially interactive. street giveaways of products. learning. and consumers are targeted in unexpected places. In more precise terms. an intuitive judgment. Eg. and consequently turn viral. Taking India as a market. The term has since entered the popular vocabulary and marketing textbooks. Examples of this method include using a "rule of thumb".campaigns are unexpected and unconventional. The term was coined and defined by Jay Conrad Levinson in his book Guerrilla Marketing. heuristics are strategies using readily accessible. engaging and thoughtprovoking concept to generate buzz.
Products that often are sampled during in-store demonstrations are new products or new versions of already existing products that have recently been introduced to the commercial marketplace. as homogeneous preferences where all the consumers have roughly the same preferences. Better products tend to command higher prices and be more responsive to advertising investments. and political views. and that the manufacturers are attempting to advertise. HOMOGENEOUS PREFERENCES: This refers to pattern of consumer preferences in terms of various attributes of a product or service. and boost profitability. HOMOGENOUS MARKET In general. Achieving clear-cut product superiority in a category is the surest way to build brand share. this is a market characterized by buyers with similar needs and wants. an in-store demonstration (or "demo" for short) is a promotion where samples of a product are distributed to customers within a store. religious preferences. IN-STORE DEMONSTRATION In marketing. A company with consistently superior products tends to consistently outperform its competitors in the marketplace. One is for production. the single-most-important type of consumer research any company ever conducts. For example. perhaps. meaning everyone has similar income. The market shows no natural segments. The goal of an in-store demonstration is to introduce customers to the product in hopes of getting them to purchase that item. a neighborhood might have a homogeneous culture. the notion that everything has identical characteristics. such that an equation is said to be homogeneous if the independent variables are increased by a constant value. it is used in a couple of different ways. Another is for mathematical equations. then the dependent variable is increased by a function of that value. This group is targeted with an undifferentiated targeting strategy. engender customer loyalty. HORIZONTAL MARKETING SYSTEM Two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity. In a marketing context. One of the preferences is known. In economics.HOME USAGE TEST Product testing is.
. such that two or more goods are homogeneous if they are physically identical or at least viewed as identical by buyers. The company uses only one marketing mix to satisfy this group of buyers.
etc which help in industrial operations INFLUENCER Influencer member of a decision-making unit who has an impact on the buying decision but is not the decision maker. the marketing manager of a firm considering entering the business of importing frozen fish from a neighbouring country may make informal inquiries as to prices and demand levels of frozen and fresh fish. Influencers have varying levels of influence depending on the product and their relative status in the decision-making unit. Mother plays role of influence in the purchase of chocolate INFORMAL SEARCH this describes the situation where a fairly limited and unstructured attempt is made to obtain information for a specific purpose. A small child will have no influence on an automobile purchase. INDUSTRIAL PRODUCT Industrial product are bought by individuals or organizations for further processing or for use in conducting a business. 2) Clothes can be tried before purchasing in most of the showrooms. elevators. For example. There would be little structure to this search with the manager making inquiries with traders he/she happens to encounter as well as with other ad hoc contacts in ministries. Eg) generators. drill presses. international aid agencies.Examples: 1) The electronic and electrical appliances companies do in-store demonstration. a child may influence the choice of breakfast cereal. For example. large computer systems. with trade associations. A teenager may have some influence and a spouse usually has a lot of influence on an automobile purchase decision. but the purchase decision is made by the parent. A person who explicitly or implicitly has some influence on the final buying decision of others. importers/exporters etc
Before that. Information systems help to control the performance of business processes. Information systems are also different from business processes. this is raw information and will need transforming into intelligence. Information systems are distinct from information technology in that an information system is typically seen as having an ict component. Examples: Transaction processing systems Office systems Decision support systems Knowledge management
. management. stored and made accessible . this information must be classified. however. the term information system is frequently used to refer to the interaction between people. the term is used to refer not only to the information and communication technology (ICT) an organization uses. Some make a clear distinction between information systems. algorithmic processes. data and technology. and increasingly from the internet is easy to believe that users have all the information they need on tap.in a very broad sense.INFORMATION MANAGEMENT PROCESSES with many professionals having external information delivered to their desktops. but also to the way in which people interact with this technology in support of business processes. from online services such as reuters or maid. In this sense. and decision-making. and business processes.and computer systems ict. However.
INFORMATION SYSTEM (IS) An information system (IS) is any combination of information technology and people's activities using that technology to support operations.applying good practice principles of information resources management (irm).
a child plays role of initiator in the purchase of a chocolate.
INDIVIDUAL MARKETING The ultimate level of segmentation leads to “segments of one. It is a recurring cycle of linking the needs of decision makers to the processes of turning the information into actionable intelligence.” or “one-to-one marketing. communications. Such technologies such as
. consumers were served as individuals: The tailor made the suit and the cobbler designed shoes for the individual. in that a manufacturer will customize the offer. Much business to-business marketing today is customized. INTEGRATED MARKETING COMMUNICATIONS A concept of marketing communications planning that recognizes the added value of a comprehensive plan.” For centuries.INITIATOR Initiator a person who first suggests or thinks of the idea of buying the particular product. and physical distribution.” “customized marketing. material flows system. INTEGRATED LOGISTICS SYSTEM Materials management. Example. prisons and other institutions that must provide goods and services to people in their care. and financial terms for each major account. INTELLIGENCE DEVELOPMENT PROCESSES a good intelligence system is more than information. INSTITUTIONAL MARKET Schools. The person who feels the need for the purchase of a product. abetted by information technology. nursing homes. markets. logistics.
CDuctive. service guarantees. and then click to order a CD with his chosen tunes. New York-based company. For example. Mattel’s Barbie. Andersen Windows. hairdo and hair color. unwieldy catalogs and a bewildering array of choices for homeowners and contractors. listen to a brief sample of each. a hip.computers.com site invites girls to log on and design their own Barbie Pal doll by specifying skin tone. email. and fax communication are permitting companies to return to customized marketing. thus reducing its ﬁnished parts inventory (a major cost to the company). check the design for structural soundness. and locations. and they need a Web site with complete. Then the ﬁrm equipped 650 showrooms with an interactive computer catalog linked directly to the factory. “Anything you can digitize. Using this catalog. IDEA GENERATION
. Technology like this is transforming marketing from “a broadcast medium to a dialog medium.” allowing the customer to actively participate in the design of the product and offer. also called “mass customization. and name. marketers still need to inﬂuence the process in a variety of ways. he can click on the category. intranets and extranets. Although individual customers are taking more initiative in designing and buying products.” Mass customization is the ability to prepare individually designed products and communications on a mass basis to meet each customer’s requirements. suggestions. robotic production. If a customer likes acid jazz. the Internet is bringing mass customization to an astonishing array of products. turned to mass customization after additions to its product line led to fat. author of Mass Customization. they must involve customers more in the product-speciﬁcation process. lets customers cut their own CDs online. see the various titles.” In fact. databases. and complaints. accessories. They need toll-free phone numbers and e-mail addresses to enable buyers to reach them with questions. and generate a price quote. salespeople help customers customize each window. updated information about the company’s products. you can customize. clothes. says. Andersen has also developed a “batch of one” manufacturing process in which everything is made to order. eye color. a $1 billion Minnesota-based manufacturer of residential windows. Joseph Pine.
The marketing concept holds that customer needs and wants are the logical place to start the search for new product ideas. as increasingly practiced in a commercial context. manufacturers. and ranking them in order of importance. Influencers may be potential buyers themselves. It identifies the individuals that have influence over potential buyers. Many of the best ideas come from asking customers to describe their problems with current products. influence is less about argument and coercion to a particular point of view. as exemplified in Robert Cialdini’s book Influence: Science and Practice. Most discussion on the generic topic of social influence centres on compliance and persuasion in a social environment. and is thus related to concepts of promoters and detractors. and so on). 3M organized consumer focus groups and asked about problems with these products. These third parties exist either in the supply chain (retailers. comprises four main activities: Identifying influencers. For instance. academics. but may also be negative. professional advisers. using influencers to increase market awareness of the firm amongst target markets
. Marketing to influencers.) or may be so-called value-added influencers (such as journalists. Influence is often equated to advocacy. Hippel has shown that the highest percentage of ideas for new industrial products originates with customers. (also Influence Marketing) is a form of marketing that has emerged from a variety of recent practices and studies. in which focus is placed on specific key individuals (or types of individual) rather than the target market as a whole. to increase awareness of the firm within the influencer community Marketing through influencers. and more about loose interactions between various parties in a community. and orients marketing activities around these influencers. in an attempt to grab a foothold in steel wool soap pads. In the context of Influencer Marketing. INFLUENCER MARKETING AS A MARKETING DISCIPLINE Influencer Marketing. INFLUENCE MARKETING Influencer marketing. or they may be third parties. etc. industry analysts.
Influencer Marketing is not synonymous with word of mouth marketing (WOM).
INTERMEDIARIES Intermediaries known as merchants—such as wholesalers and retailers —buy. Similarly. Influencer Marketing is enhanced by a continual evaluation activity that sits alongside the four main activities. Thus WOM is a core part of the mechanics of Influencer Marketing. manufacturers’ representatives and sales agents—search for customers and may negotiate on the producer’s behalf but do not take title to the goods. There are substantial differences in the definition of what an influencer is.com Web site. which acts as a facilitator. successful companies use one of three strategies: ➤ Exclusive distribution means severely limiting the number of intermediaries. Similarly. but influence may be transmitted in this manner. turning influencers into advocates of the firm. and advertising agencies—assist in the distribution process but neither take title to goods nor negotiate purchases or sales. The most successful companies search for innovative marketing channels. have impact. are well-connected. banks. Brown and Hayes define an influencer as "a third party who significantly shapes the customer's purchasing decision.Marketing with influencers. take title to. drawing more attention than it ever enjoyed in small music stores. have active minds. Facilitators—transportation companies. and resell the merchandise.” The Word of Mouth Marketing Association defines an influencer as "A person who has a greater than average reach or impact through word of mouth in a relevant marketplace. Agents—brokers. The Conn Organ Company. sells organs through merchants such as department and discount stores. Firms such as automakers use this approach when they want to maintain control over the service level and service outputs offered by the resellers. for example. Number of Intermediaries In deciding how many intermediaries to use. though this set of attributes is aligned specifically to consumer markets. Ohiobased Provident Bank reaches new mortgage customers by selling through the lendingtree. but may never be accountable for it. independent warehouses. and are trendsetters. Peck defines influencers as "a range of third parties who exercise influence over the organization and its potential customers". Keller and Berry note that influencers are activists. Often it involves exclusive dealing
which focus on discounted styles. customer service.arrangements. To foster teamwork among all departments. which feature the complete line. In this way. and (7) the popular Fogdog Sports site (www. which carry a broad range of styles. its exclusive Web retailer. which carry only the newest styles. (4) mass-merchandise stores. (2) general sporting goods stores. External marketing is
. products for which the consumer requires a great deal of location convenience. product management. sells its athletic shoes and apparel through seven types of outlets: (1) specialized sports stores. Integrated marketing takes place on two levels. ➤ Intensive distribution consists of the manufacturer placing the goods or services in as many outlets as possible. According toDavid Packard of Hewlett-Packard: “Marketing is far too important to be left only tothe marketing department!” Marketing is not a department so much as a companywide orientation. Second. which stock mostly seconds and closeouts. This strategy is generally used for items such as tobacco products. Nike. goes so far as to include in every job description an explanation of how each job affects the customer. and gum. and it gains adequate market coverage with more control and less cost than intensive distribution. in which the resellers agree not to carry competing brands. the various marketing functions—sales force. the company must carry out internal marketing as well as external marketing. the result is integrated marketing. which carry a special line of athletic shoes. advertising. Xerox accountants know that customer attitudes are affected by Xerox’s billing accuracy. All of these functions must be coordinated from the customer’s point of view. (3) department stores. for example. marketing must be embraced by the other departments. Xerox factory managers know that visits to the factory can help sell a potential customer if the factory is clean and efficient.fogdog. Xerox. ➤ Selective distribution involves the use of more than a few but less than all of the intermediaries who are willing to carry a particular product. (6) factory outlet stores. First.com). for example. snack foods. INTEGRATED MARKETING When all of the company’s departments work together to serve the customers’ interests. soap. (5) Nike town stores. the producer avoids dissipating its efforts over too many outlets. marketing research—must work together.
INTERNAL MARKETING-ORIENTED BUSINESS The following are the features of an internal marketing-oriented business: Creating enabling culture: this is done when employees are empowered by management through allowing creativity. serve. management in the middle. Next in importance are the front-line people who meet. Internal marketing is the task of hiring. who support the front-line people so they can serve the customers. and front-line people and customers at the bottom—obsolete. motivates and empowers employees at all management levels to deliver a satisfying customer experience. training. but to embed them in such a way that they both change and reinforce employee behaviour". Over recent years internal marketing has increasingly been integrated with employer branding. and motivating able employees who want to serve customers well. under them are the middle managers. which strives to build stronger links between the employee brand experience and customer brand experience. internal marketing must precede external marketing. Ensuring equitable recognition and reward: business must exercise employee recognition with reward to what employee has achieved. and employer brand management. and satisfy the customers. innovation. Managers who believe the customer is the company’s only true “proﬁt center” consider the traditional organization chart—a pyramid with the CEO at the top.
. According to Burkitt and Zealley. and at the base is top management.marketing directed at people outside the company. In fact. putting customers at the top. INTERNAL MARKETING Internal marketing (IM) is a process that occurs within a company or organization whereby the functional process aligns. Master marketing companies invert the chart. whose job is to hire and support good middle managers. It makes no sense to promise excellent service before the company’s staff is ready to provide it. Practicing participative hiring: that is involving current employees in the process of hiring new employees. "the challenge for internal marketing is not only to get the right messages across. allowing initiatives and accountability and responsibility of their decisions.
Developed by Dr Nikolaus Eberl and Herman Schoonbee as an academic discipline. Internal Branding is about aligning employee commitment to delivering the brand promise of the organisation. Helps non-marketing staff to learn and be able to perform their tasks in a marketing-like manner.’ Janus was the
. There is a phenomenon in organizations that can be termed the ‘Janus Effect. Creates good coordination and cooperation among departments of the business. Empowers employees and gives them accountability and responsibility. structure. vision and strategy with the employees' professional and social needs. The Role of Internal Branding Nothing kills a poor product faster than good advertising. Benefits of Internal Marketing: Encourages the internal market (employees) to perform better. The Janus Effect of Internal Branding Clearly. Retaining clients over time requires not only that they have a positive experience with the brand. Integrates business culture.Demonstrating fairness during hard times: fair treatment of employees when faced with hard times and difficult moments like death of the near family members.
INTERNAL BRANDING Internal Branding is a concept that merges the disciplines of marketing and human resources. total quality management and re-engineering. This can be achieved by setting aside emergency funds. Improves customer’s retention and individual employee development. but also that they can identify with the brand character – this being the people in the company and the degree to which they can be trusted to deliver the brand promise. Encourages employees to offer superb service to clients by appreciating their valuable contribution to the success of the business. a company’s brand promise and its brand character must be linked and compatible. Creates common understanding of the business organisation. Good organization structure that allows learning. human resources management.
i. Coca-Cola. which are driven by communication and influenced by acquisition drivers such as functionality. receivables. Measuring Brand Strength The strength of a brand is built both through communication and the experience with the brand. the way customers view the company is significantly enhanced. they can spot important opportunities and problems. The Janus Effect in organizations represents a simple but profound proposition: The face a company presents to its customers and the general public is in large part a reflection of the face it presents to its employees.e. “the brand is everything. people will give it a try.Roman god of initiation and closure. the brand value exceeds the asset value by nearly 150%. he was seen as a god of the doorway and depicted with two faces. sales. he announced that Virgin had signed a deal to offer the world's first commercial flights to space under the brand ‘Virgin Galactic’. In September 2004.e. As such. Strengthening or weakening the brand then depends on the Differentiating Factors. the answer is easy – your market capitalisation less assets. awareness and consideration. i. Brand strength initially depends on the Hygiene Factors. the Virgin brand has now become so valuable that Branson has recently ventured into space.” The Virgin Brand is a classic example of brand value exceeding the asset base by far. by the way employees view the company. costs. prices. Thus. inventory levels. In the case of the world’s leading brand.
. or diminished. one facing out and one facing in. payables. Measuring Brand Value If your brand is listed on the stock exchange.
INTERNAL RECORDS SYSTEM Marketing managers rely on internal reports on orders. and so on. As Richard Branson put it at his recent visit to South Africa. brand preference and brand loyalty. By analyzing this information. If the brand is well-respected and trusted. which are formed from the client’s experience with the brand and influenced by the retention drivers. In fact.
accuracy. Shipped items are accompanied by shipping and billing documents that are sent to various departments. sales reps can access information about prospects and customers and provide immediate feedback and sales reports. Before heading out on a call. and e-mail from anywhere in the company. “Your salesperson in St. Inc.
.THE ORDER-TO-PAYMENT CYCLE The heart of the internal records system is the order-to-payment cycle. a sales force automation software package. The sales department prepares invoices and transmits copies to various departments. often through internal “push” or Web technology. Armed with laptop computers. Here are three companies that are using computer technology to design fast and comprehensive sales reporting systems: ■ Ascom Timeplex. sales reps at this telecommunications equipment company use their laptop computers to dial into the company’s worldwide data network. Recent editions have put even more knowledge at marketers’ fingertips. Out-of-stock items are back ordered. engineering and configuration notes. Customers favor those firms that can promise timely delivery. SALES INFORMATION SYSTEMS Marketing managers need up-to-the-minute reports on current sales. Sales managers can monitor everything in their territories and get current sales forecasts anytime. dealers. the laptop computers record each order. so they can give prospective customers more information and keep more detailed notes. Computerized warehouses fulfill these orders quickly. Retail giant Wal-Mart tracks the stock levels of its products and its computers send automatic replenishment orders to its vendors. Louis knows what Customer Service in Chicago told their customer in Atlanta this morning.” Sales force automation (SFA) software has come a long way. status reports on previous orders. Sales representatives. The billing department sends out invoices as quickly as possible. And when deals are struck. An ad for Sales CTRL. and customers dispatch orders to the firm. Earlier versions mainly helped managers track sales and marketing results or acted as glorified datebooks. Customers and sales representatives fax or e-mail their orders. They can retrieve the latest price lists. Today’s companies need to perform these steps quickly and accurately. and efficiency of the order-to-payment cycle. boasts. An increasing number of companies are using electronic data interchange (EDI) or intranets to improve the speed.
What special studies do you periodically request? 5. An internal MIS committee can interview a cross-section of marketing managers to discover their information needs. What data analysis programs would you want? 10. The company’s marketing information system should represent a cross between what managers think they need. improve customer service. ■ Alliance Health Care Formerly called Baxter. and Gathering Information and Measuring Market Demand sales or trading employees to share information about companies whose stock they were considering taking public. San Francisco–based Montgomery Security was in a bind. everyone could share information and keep confidential information secure. What information do you regularly get? 4. Alliance supplies hospital purchasing departments with computers so that the hospitals can electronically transmit orders directly to Alliance. With a common database format. It gave Montgomery significant gains in productivity. and obtain better terms from suppliers for higher volumes. and its market share has soared. What are the four most helpful improvements that could be made in the present marketing information system? LABELLING
. The timely arrival of orders enables Alliance to cut inventories. What information do you need to make these decisions? 3. research. What topics would you like to be kept informed of? 9. Some useful questions are: 1.double-check the order for errors. The company solved the problem with Sales Enterprise Software from Siebel Systems. this Nations Banks subsidiary had to find a way for more than 400 finance. What information would you want daily? Weekly? Monthly? Yearly? 7. What information would you want that you are not getting now? 6. Alliance has achieved a great advantage over competitors. What decisions do you regularly make? 2. ■ Montgomery Security In 1996. To remain competitive in the financial sector. What magazines and trade reports would you like to see on a regular basis? 8. Yet all of the departments at Montgomery had different database formats for their records. New Jersey. some even kept files on notepads. what managers really need. and send it electronically to Timeplex headquarters in Woodcliff Lake. and what is economically feasible.
Learning involves changes in an individual’s behaviour that arise from experience. which may be a simple tag attached to the product or an elaborately designed graphic that is part of the package.Every physical product must carry a label. Labels eventually become outmoded and need freshening up. the label identifies the product or brand—for instance. Theorists believe that learning is produced through the interplay of drives. The label might describe the product: who made it. and how a person responds. and percentage labelling (to show the percentage of each important ingredient). where it was made. responses. how it is to be used.” and “low fat. Most human behavior is learned. with gradual changes in the size and design of the letters.
LEARNING When people act. the name Sunkist stamped on oranges. Legal concerns about labels and packaging stretch back to the early 1900s and continue today. the label might promote the product through attractive graphics. such as delivery or installation. cues. but also in designing and managing services. marketers must be skilful not only in managing product lines and brands. consumerists are lobbying for additional labelling laws to require open dating (to describe product freshness). Therefore. and how to use it safely. First. Finally. The label on Orange Crush soft drink was substantially changed when competitors’ labels began to picture fresh fruits. they learn. the way canned peaches are grade labelled A. thereby pulling in more sales. Some tangible products that incorporate packaging and labels also involve some service component. and C. stimuli.” “high beer. The Food and Drug Administration (FDA) recently took action against the potentially misleading use of such descriptions as “light. Orange Crush developed a label with new symbols to suggest freshness and with much stronger and deeper colours. B.
. In response. where. Labels perform several functions. when it was made. Cues are minor stimuli that determine when. unit pricing (to state the product cost in standard measurement units). what it contains. The label might also grade the product. The label on Ivory soap has been redone 18 times since the 1890s. A drive is a strong internal stimulus that impels action. and reinforcement.” Meanwhile. grade labelling (to rate the quality level).
and it levels the playing ﬁeld between large and small suppliers.
LEARNING INTERNET PURCHASING Internet purchasing. you may assume that because IBM makes good computers. in which the person learns to recognize differences in sets of similar stimuli and adjust responses accordingly. You have now generalized your response to similar stimuli. A set of behaviours. business-to-business buying on the Internet is projected to reach $1 trillion per year (compared with a projected $108 billion for consumer buying). marketers can build up demand for a product by associating it with strong drives. are preparing to buy nearly all supplies on-line to shave transaction and personnel costs. By 2003. its Trading Process Network lets companies buy raw materials. and the senses of self and belonging which these
. In fact. If your experience is rewarding. Internet purchasing can help forge closer relations between partners and buyers. when you want to buy a printer. So far. A countertendency to generalization is discrimination. At the same time. The current broader sense of the word dates from 1961. a growing number. it can potentially erode supplier-buyer loyalty and open the door to possible security disasters.
LIFESTYLE Lifestyle is a term to describe the way a person lives. and consolidate purchasing. GE Information Services is a leader in helping GE internal business units and outside companies use the Internet to buy from and sell to other businesses. components.Suppose you buy an IBM computer. they are establishing Intranets for internal communication and extranets to link with regular suppliers and distributors. Later. it also makes good printers. and providing positive reinforcement. and just about anything else with a few clicks of the mouse. using motivating cues. most businesses are using extranets to buy MRO supplies. Applying learning theory. reduce time between order and delivery. your response to computers and IBM will be positively reinforced. such as General Electric. The move to Internet purchasing has dramatic and far-reaching implications. Companies are not only posting their own Web pages to sell to business buyers. which was originally coined by Austrian psychologist Alfred Adler in 1929. However.
A lifestyle typically also reflects an individual's attitudes. a lifestyle is a means of forging a sense of self and to create cultural symbols that resonate with personal identity. attitudes. Surrounding social and technical systems can constrain the lifestyle choices available to the individual and the symbols she/he is able to project to others and the self. economic levels and so on) that define a group.e. In the magazine and television industries. conventional ways of doing things. "green lifestyle" means holding beliefs and engaging in activities that consume fewer resources and produce less harmful waste (i. The behaviours and practices within lifestyles are a mixture of habits. A lifestyle is a characteristic bundle of behaviours that makes sense to both others and oneself in a given time and place. and deriving a sense of self from holding these beliefs and engaging in these activities. "lifestyles" provide a means by which advertisers and marketers endeavour to target and match consumer aspirations with products. and publishing. consumption. marketing. tastes. moral standards. lifestyles are subject to change by the demands of marketing and technological innovation. including social relations. values or worldview.behaviours represent. or to create aspirations relevant to new products. entertainment. the cornerstone of lifestyle construction is consumption behaviour.
. a smaller carbon footprint). "lifestyle" is used to describe a category of publications or programs. These patterns reflect the demographic factors (the habits. In business. are collectively used to define a given lifestyle. The term is defined more broadly when used in politics. For example. Some commentators argue that. Not all aspects of a lifestyle are entirely voluntaristic. As a construct that directs people to interact with their worlds as consumers. Therefore. and reasoned actions. Therefore marketers take the patterns of belief and action characteristic of lifestyles and direct them toward expenditure and consumption. The lines between personal identity and the everyday doings that signal a particular lifestyle become blurred in modern society. in modernity. and dress. which offers the possibility to create and further individualize the self with different products or services that signal different ways of life.
firms adopt this strategy for a.Rs 4. I may not go in to a competitor's product.Rs 4.06.000 Maruti Ritz . more than one reasons prompt it to fill the line.000 Maruti Wagon R .Rs 3.22.98. Hence having a full line catering to all segments of consumers offers tremendous advantage to the company.00.000 From the price ranges.18.Try to plug holes to keep the competitors away.000 Maruti Swift . In such a scenario.40. If I want to upgrade to a bigger car. According to Prof.Rs 5.The question is why Maruti chose to bring out products with similar price ranges. Another reason for Maruti's line filling is to keep out the competitors.000 .000 . In the case of Maruti. There are customers (like me) who would like to buy a car from Maruti.000 .Rs 2.Rs 3.000 .20.Satisfy Dealers who complain about lost sales because of missing items in the line c. Santro.000 Maruti A Star . A look at the price ranges of hatchback brands of Maruti will give you a clear picture of Line Filling.89.Rs 4.12000 Maruti Alto .Rs 2. Another question is whether this overlap will create cannibalization among these brands.Utilize existing capacity d. i10 and Spark is giving tough competition for mid-range hatchbacks
. Maruti Suzuki recently launched a series of brands in the hatchback segment. Maruti Suzuki has tremendous brand equity in the Indian market.70.Rs 3. Example: Maruti 800 . it is evident that there is a significant overlap among various brands.Rs 2. I have a choice or a A star or a Wagon R or a Ritz or a Swift. Incremental Profits b.12.Rs 5. At the lower end Nano may give Alto and 800 a run for its money.Rs 3.000 Maruti Estilo .32. Line Filling is a strategy where the company introduces new products within the same (existing) price range.000 .17.000 .Rs 3. There are several reasons for such a line filling strategy.LINE FILLING Maruti Suzuki is following the product line strategy of Line Filling.000 .Try to become a full-line company e.Rs 2. Having various offerings at various price points keeps that customers happy and make them stick to the company.10. Philip Kotler. The company is facing lot of competition in the hatchback segment.
up-market stretch. But Maruti can be happy that the customer has bought its product rather than that of its competitor. The company can extend its product line down-market stretch. This low cost base enable the firm to make a profit irrespective of cannibalization. But in the Indian Automobile industry . This is as opposed to brand extension which is a new product in a totally different product category. Palio. In the case of Maruti brands. Down-Market Stretch A company positioned in the middle market may want to introduce a lower-priced line for any of the three reasons: 1. may be only Maruti can do it. it definitely took away some customers of Swift. Maruti is keeping a full line of brands covering various price points.and products like Fabia. it is natural that some sort of cannibalization will happen. Best Buy.Line extension occurs when the company lengthens its product line beyond its current range.
LINE EXTENSION A product line extension is the use of an established product’s brand name for a new item in the same product category. added ingredients.i20 are giving competition at the higher segment of the hatchback market. and others attract a growing number of shoppers who want value-priced goods. package sizes. The company may notice strong growth opportunities as mass retailers such as Wal-Mart. When Ritz was launched.
. forms. Hence to keep the market share intact . One of the critical factor that a firm should consider while line filling is the Differentiation. or both ways. There has to be a just-noticable difference between the offerings other wise consumers will get confused . Regarding the profits. Maruti is one of the lowest cost producer in the automobile industry. Line Extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors. When there are brands which has similar price points.Punto. colors. Line Filling is the strategy adopted by Maruti Suzuki to retain its grip in the Indian market. there is a clear differentiation either interms of design or performance between these brands.
When compared to a firm's task environment. and at the higher end to compete with Hewlett-Packard. The company may find that the middle market is stagnating or declining. Many markets have spawned surprising upscale segments: Starbucks in coffee. 3. Surf Excel Blue. or simply to position themselves as full-line manufacturers.Splendour.2. This two-way stretch won Texas Instruments (TI) an early market leadership in the hand-calculator market. Clinic Plus Reese's Peanut Butter Cups. and Honda's Acura. DEMOGRAPHIC FACTORS: It refers to studying human populations in terms of size. Vanilla Coke. and socio-culture. Gradually. Examples include Zen LXI. Zen VXI. the impact of macro environmental variables is less direct and the organization has a more limited impact on these elements of the environment. Note that they invented entirely new names rather than using or including their own names. Reese's Pieces and Reese's Puff Cereal
MACRO MARKETING ENVIRONMENT An organization's macro environment consists of nonspecific aspects in the organization's surroundings that have the potential to affect the organization's strategies. location. higher margins. Texas Instruments (TI) introduced its first calculators in the medium-price-medium-quality end of the market.Surf. technology. The company may wish to tie up lower-end competitors who might otherwise try to move up-market. natural forces.Clinic All Clear. it added calculators at the lower end taking the share from Bowmar. If the company has been attacked by a low-end competitor. Nissan's Infiniti. Two-Way Stretch Companies serving the middle market might decide to stretch their line in both directions. density. Up-Market Stretch Companies may wish to enter the high end of the market for more growth. It includes factors such as demography. age. Diet Coke. This
. Surf Excel. Leading Japanese auto companies have each introduced an upscale automobile: Toyota's Lexus. gender. Haagen-Dazs in ice cream and Evian in bottled water. economy. it often decides to counterattack by entering the low end of the market. politics. race. and occupation. Splendour Plus Coca-Cola.
• As concept of nuclear families increasing. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. As these markets develop it can create new markets and new uses for products. there are passengers and there are drivers. ready to eat meals.
COMPETITIVE FACTORS: It is a crucial factor where the company does its share of research on the product already available in the market before launching its product. "On the road of life. consumer goods companies like LG see potential for growth. women formal apparels are in high demand. Rather than appealing to the mass market. It also requires a company to stay ahead of others and update their own technology as it becomes outdated. Example: • Volkswagen sales in the United States rose from under 50.is a very important factor to study for marketers and helps to divide the population into market segments and target markets. VW went after a younger demographic willing to spend a little extra on a Volkswagen because of the car's German engineering. The voiceover on the introductory TV spot identifies the target audience by saying.
.000 cars in 1993 to over 300. TECHNO-LEGAL FACTOR: The techno-legal environment is perhaps one of the fastest changing factors in the macro environment. and versatility. • As in India no of working women increasing day by day so the products like fast food. retirement benefits are in high demand. where as in country like India where major age group is young child care policies . No company enters market without competition." • Children are not allowed in France to work in ads • In country like Japan where average age on higher side products like insurance pertaining to pension. sportier image.000 a decade later partly as a result of a "Drivers Wanted" ad campaign that targeted fun-loving or youthful drivers. Example: Himani Boro plus entered the market when Boroline could not fulfil the demand of the market.
protect. development. applications. support or management of computerbased information systems. Discovery is the act of detecting something new. according to the Information Technology Association of America (ITAA). materials or services. Samsung is looking to take the idea abroad. design. public. particularly software applications and computer hardware". transmit.Example: • In an ambitious endeavour. technologies. samples of manufacturing and facilities among governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products. knowledge. refrigerators.
. The Internet is a global system of interconnected computer networks and serves billions of users worldwide. and retrieve information. processes. process. input. Innovations Innovation can be seen as the process that renews something that exists and not. application. In Korea. and wall-mounted flat-panel displays. Samsung has 6. IT deals with the use of electronic computers and computer software to securely convert. methods of manufacturing.Technology transfer is the process of sharing of skills. as is commonly assumed. business. implementation. security cameras. that are linked by a broad array of electronic and optical networking technologies. It is closely related to (and may arguably be considered a subset of) knowledge transfer. Rate of Technology transfer . of local to global scope. It is a network of networks that consists of millions of private. store. the introduction of something new. • Left hand side –right hand side drivers • Cdma card used in Japan • Social security number in USA • UID no in India • Blackberry case-messages have to decrypted by government of India • Fuel-98-99% octane fuel • Harley Davidson changed engine in India Information technology (IT) is "the study. and government networks. academic.000 networked homes that are outfitted with Internet-enabled ovens. output. Samsung had launched a digital home business.
obsolescence is preceded by a gradual decline in popularity. tax incidence). Example: • Norway bans several forms of sales promotion—trading stamps. government agencies. • Danger sign on cigarette packs • Pricing of medicines is regulated • Control on petroleum and diesel prices
Taxation policy . POLITICO-LEGAL: Marketing decisions are strongly affected by developments in the political and legal environment.Rate of Obsolescence: Obsolescence is the state of a being which occurs when an object.
. it mediates many aspects of the relationship between trade unions.e.. As such. This environment is composed of laws.e. contests. For example. Labour law (or "labour". how progressive or regressive) and how they might affect individuals and businesses (i. • Thailand requires food processors selling national brands to market low-price brands also. mandatory recycling laws have given the recycling industry a major boost and spurred the creation of dozens of new companies making new products from recycled materials. Typically. administrative rulings. employers and employees. and precedents which address the legal rights of. Obsolescence frequently occurs because a replacement has become available that is superior in one or more aspects. Obsolete refers to something that is already disused or discarded. service or practice is no longer wanted even though it may still be in good working order. and pressure groups that influence and limit various organizations and individuals. working people and their organizations. • In India we cannot sell electric appliances. so that low-income consumers can find economy brands. or "employment" law) is the body of laws. Sometimes these laws also create new opportunities for business.. Policymakers debate the nature of the tax structure they plan to implement (i. or antiquated.Tax policy is the government's approach to taxation. and premiums— as inappropriate or "unfair" instruments for promoting products. and restrictions on.
and judicial decisions. to authorize. to proscribe. and to provide (funds). to organizations. to declare or to restrict. People absorb." Legislation (or "statutory law") is law which has been promulgated (or "enacted") by a legislature or other governing body. legislative acts. thumbs up. and funding priorities concerning a given topic promulgated by a governmental entity or its representatives. to others. moved to countries like Vietnam and Kenya as they have to modify the size of tractor because average size of farmer is 5ft and 6ft respectively. and norms that largely define these tastes and preferences. almost unconsciously. (Another source of law is judge-made law or case law. laws. Examples: • Colour of products in Islamic country is dominantly green for eg Colgate. • HMT. and may be broadly referred to as "legislation" while it remains under consideration to distinguish it from other business. and to the universe. SOCIO-CULTURAL ENVIRONMENT: Purchasing power is directed toward certain goods and services and away from others according to people's tastes and preferences. to nature.Public policy can be generally defined as the course of action (or inaction) taken by the state with regard to a particular issue. to grant. regulatory measures.
. • McDonald use yellow colour for the face of its mascot Ronald in south East Asian country and white across the world as white colour considered as sickness.) Before an item of legislation becomes law it may be known as a bill. a worldview that defines their relationships to themselves. to society."Public policy is commonly embodied "in constitutions. • South Asian countries like Thailand uses more vibrant colours as compared to country like France use subtle shades. Society shapes the beliefs. values. to sanction. or the process of making it. Legislation can have many purposes: to regulate. • Phillips launched electric shavers in Japan they failed in miserably because the size of palm of average Japanese is smaller than men from other nations. Other scholars define it as a system of "courses of action.
debt. The available purchasing power in an economy depends on current income. savings. Lifestyle changes: Adoption of new products especially due to change in income levels of a household. American Express. The term is often associated with criticisms of consumption starting with Thorsten Veblenor. Dell. prices. For example. Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods or services in ever greater amounts. EXAMPLES • Pesticides prices are controlled by government so foreign investor are not able to enter Indian market. Distribution of Income: Income distribution is how a nation’s total economy is distributed amongst its population Economic: Markets require purchasing power as well as people.000 programmers to India and China. The available purchasing power in an economy depends on current income. • Petrol and diesel prices are regulated in India
. Example: An economic issue of increasing importance was the migration of manufacturers and service jobs offshore. Level of Education: Knowledge of products and their availability along with the know – how of implications of using particular product is determined by the level of education. but as a cause of unemployment by many domestic workers. Social mobility refers to the degree to which an individual or group's status is able to change in terms of position in the social hierarchy. comes to full fruition by the end of the twentieth century through the process of globalization. in December 2003. GE moved much of its research and development overseas. Hyderabad-Bangalore side people shop during ramzan. prices. Microsoft. debt. the newly emergent middle class arising at the turn of the twentieth century. Marketers Markets require purchasing power as well as people. IBM decided to move the jobs of nearly 5. Outsourcing was seen as a competitive necessity by many firms. Veblen's subject of examination. savings.• Shopping trends of various countries are persuaded by festive seasons for example in India people tend to shop around dhanteras. and credit availability. more recently by a movement called Enoughism. To this extent it most commonly refers to material wealth and the ability of an agent to move up the class system. and credit availability.
An employee may be defined as: "A person in the service of another under any contract of hire. express or implied. Disposable income is total personal income minus personal current taxes. private) savings. companies had to keep their project on hold as there was no money in market. and periods of relative stagnation or decline (contraction or recession)." Business cycle (or economic cycle) refers to economy-wide fluctuations in production or economic activity over several months or years. Consequently.• CRR and SLR ratio fixed by RBI which indirectly affects lending capacity of banks • FDI and FII Limits set by government • During recession. private) consumption expenditure) yields personal (or. When the general price level rises. minus personal current taxes equals disposable personal income. where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed. one being the employer and the other being the employee. after liberalization of Indian economy lot of foreign companies entered Indian market. each unit of currency buys fewer goods and services. inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.
MAINTENANCE MARKETING It is a type of marketing employed in a condition where the industry has a full demand. Subtracting personal outlays (which includes the major category of personal (or. Employment is a contract between two parties. personal income. oral or written.
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. In national accounts definitions. Energy availability and cost – This is self explanatory. That is the demand of the product is equal to the supply by the industry. • During 1991. These fluctuations occur around a long-term growth trend. The marketers have to maintain everything to
. and typically involve shifts over time between periods of relatively rapid economic growth (expansion or boom).
• Kissan ketchup has lost the market against Maggi ketchup due to the same reason MARKET ANALYSIS Market analysis is a documented investigation of a market that is used to inform a firm's planning activities particularly around decisions of inventory. work force expansion/contraction. Affected areas may include inventory levels. Therefore it is also important for investors to identify and evaluate the various segments that make up the total market. both now and in the future. This analysis helps organizations determine which areas account for the greatest share of the market's growth and are more
.retain their position. They have to maintain their: • Quality • Production • Distribution • Warehouse • Sales • Competitors • Technology Examples: • Johnson & Johnson is leaders in child segment since a long time • Boroline lost its market to boroplus due to lack of maintenance • Maggi noodles is losing market against Top Ramen gradually due to reduction in its quality. purchase. Key success factors The goal of a market analysis is to determine the attractiveness of a market. facility expansion. purchases of capital equipment. The findings of a market analysis may motivate an organization to change various aspects of its investment strategy. Market segments Markets are not uniform. Organizations evaluate the future attractiveness of a market by gaining an understanding of evolving opportunities and threats as they relate to that organization's own strengths and weaknesses. and promotional activities. Organizations use the findings to guide the investment decisions they make to advance their success. promotional activities. and many other aspects of a company.a work force expansion/contraction. facility expansion. as any slight mistake can severely affect the company’s performance. purchases of capital equipment.
attitudes and behaviour of the market. according to Cornish. they are all similar to different market conditions. and communication of reliable. in turn. what the issues are and what the likely market potential is. This framework. storage. MARKET INTELLIGENCE (MI) Market intelligence (MI). “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers). publication. known as Porter's five forces.”Marketing Intelligence has the capacity to be at the forefront in contributing to the development of a business environment through strategic research.
. credit-rating documentation. This information. and to assess changes in the business environment that may affect the size and nature of the market in the future.” Market Intelligence is about providing a company with a view of a market using existing sources of information to understand what is happening in a market place. Market profitability While different organizations in a market will have different levels of profitability. and to assess changes in the business environment that may affect the size and nature of the market in future. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market. to determine the current and future needs and preferences. helps them pinpoint the most promising opportunities within the overall market and guides the choice of specific investments. risk and policy analysis. to determine the current and future needs and preferences. and objective business information. reporting.susceptible to change. identifies five factors that influence the market profitability: Buyer power Supplier power Barriers to entry Threat of substitute products Rivalry among firms in the industry. attitudes and behaviour of the market. timely. Market intelligence (MI) is “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers). It incorporates information from customer analysis and industry analysis as well as general market conditions.
Market Intelligence can be divided into two spheres Market Intelligence based on external data Market Intelligence based on internal data Often Market Intelligence relies purely on external data such as analysts reports. production. which is crucial for product.
Internal reporting systems: All enterprises which have been in operation for any period of time have a wealth of information. marketing. analyzing and assessing the internal and external environment related to a company’s customers. That is. Often the entrepreneur. marketing research. manpower. MI is critical for helping with the new product development stage of the product lifecycle. This would require the integration of competitive intelligence. this information often remains under-utilised because it is compartmentalised. MI’s main use is to identify successful new product developments early in the process to create company growth and maximize revenues by finding a balance between costs and prices of products. competitors. market analysis. markets. and business and financial analysis information. either in the form of an individual entrepreneur or in the functional departments of larger businesses. However. financial. stockholding and logistical data. decision makers can fail to appreciate how information from other functional areas might help them and therefore do not request it. Similarly.
In other words. from sources such as databases and prospect lists. and industry to enhance the decision-making process. information is usually categorised according to its nature so that there are. companies can successfully innovate to stay ahead of the competition. does not see how it could help decision makers in other functional areas. or various personnel working in the functional departments holding these pieces of data. for example. marketing intelligence calls for understanding. and an holistic view can prove very insightful. but there is often a great deal of untapped information internally that would give you an insight into your market. By using this knowledge about the external environment.
These are but a few of the internal records that can be used by marketing managers.
. but even this small set of records is capable of generating a great deal of information.The internal records that are of immediate value to marketing decisions are: orders received. stockholdings and sales invoices.
called farmers' markets. which is also the largest in the Southern Hemisphere. • In Europe. This kind of market is very old. The Roman term for market.MARKET PLACE A marketplace is the space. in many towns and cities. along with the shops associated with it. The term is also used in a trademark law context to denote the actual consumer environment. in which a market operates. and countless such markets are still in operation around the whole world. A marketplace is a location where goods and services are exchanged. is forum. • In Australia. One example is the huge SeventhKilometer Market near Odessa. however some (such as Camden Market in London. still in use in a related sense. virtual or metaphorical. the 'real world' in which products and services are provided and consumed. the largest "open air" market is the Queen Victoria Market . Such markets are normally specialist—the various stalls of Camden Market. An example of a large market is Chatuchak weekend market in Bangkok. but not entire stores) are commonplace. actual. with stalls only present for one or two days a week ("market days"). Both resellers and producers sell their wares to the public. • Some large markets have become permanent institutions comparable to shopping malls. in Melbourne. as well as "marketplaces" (covered places where merchants have stalls. • Markets are often temporary. but renewed interest in local food has caused the reinvention of this type of market. instruments and furniture. street markets. Ukraine. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. • In North America such markets fell out of favour. UK) are open every day of the week. The modern shopping mall can be seen as an extension of this concept. MARKETING ENVIRONMENT:
. ie. sell a variety of alternative lifestyle products ranging from clothes and jewellery to CDs.at seven hectares (17 acres). especially in France and Britain.
The marketing environment includes forces such as: political. legal. cultural etc. VW went after a younger demographic willing to spend a little extra on a Volkswagen because of the car's German engineering. "On the road of life. financial resources. where as in country like India where major age group is young child care policies . and competitive.The various external forces that can directly or indirectly affect the many activities of an organization. These factors have to be taken into consideration by the marketer and proper steps should be taken to adapt to the conditions. technological. and versatility. These activities include acquisition of human resources. there are passengers and there are drivers.000 a decade later partly as a result of a "Drivers Wanted" ad campaign that targeted fun-loving or youthful drivers.
. The term marketing environment is set of forces/factors that have potential to influence the marketing decisions of any company. • Head and shoulders is costlier in country like USA due its better quality like high viscousity." Children are not allowed in France to work in ads In country like Japan where average age on higher side products like insurance pertaining to pension. social. • Volkswagen sales in the United States rose from under 50. legal. social. regulatory. This is an integral part of environmental scanning. raw materials. Donalds introduced Mc Veggie and Mc. sportier image. Examples: • Yamaha launched a prototype of YAMAHA FZ1 in India to adapt to the Indian Environment • Youth is of high population in India. On the contrary it is lower in price in India to match the economy. The voiceover on the introductory TV spot identifies the target audience by saying. and development of goods and services. Rather than appealing to the mass market. therefore Pepsi has focussed the youth market in India. The factors which affect the decisions may be demographic. economic.000 cars in 1993 to over 300. “YOUNGISTAN” • Mc. Tikka when they entered India. retirement benefits are in high demand.
It is a set of procedures and practices employed in analyzing and assessing marketing information. EXAMPLES: a. stored. analysed and distributed to managers in accordance with their informational needs on a regular basis. Marketing goals are objectives that are specific with respect to magnitude and time i. c. distributio n. they usually quantify the objectives. The goal is to use its technology to create products that will continue to improve the quality of life for consumers wherever they live. The goal of Haldirams is to target places like Jordan.
b. d. Algeria. MARKETING INFORMATION SYSTEM: A Marketing Information System can be defined as 'a system in which marketing information is formally gathered. and distribution of clothing brands in Tier IV and V cities. media selection. Timely marketing information provides basis for decisions such as productdevelopment or improvement. packaging. The goal of Nokia is to seize a 10% increase in market share in the low cost variety of mobiles.
.MARKETING GOAL: It is the collection of various quantitative marketing targets that form a goal. and promotion. HUL goal –To develop new ways of doing business with the aim of doubling the size of the company while reducing environmental impact. gathered continuously from sources inside and outside of a firm. Colgate – Palmolive – It is deeply committed to advancing technology which can address changing consumer needs throughout the world. The goal of Raymonds is to expand the capacity.e. e. etc. pricing. Yemen.
• Maruti uses its internal reporting system like customer feedback and decide about re-launching the products MARKETING MIX Set of marketing tools that are used to develop integration / fit with the emerging marketing opportunities. An 'MIS' is a planned system of the collection. sort. evaluate and distribute needed. analysed and distributed to managers in accordance with their informational needs on a regular basis’. processing. Public image may also be considered a controllable part of the marketing strategy. A combination of the controllable components of a marketing strategy: product. but also provides valuable information to the chain. equipment and procedures to gather. Marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. storage and dissemination of data in the form of information needed to carry out the management functions. A system that supply information to mangers of when. Examples: • Shoppers Stop offers shoppers a free membership card when they make their first purchase at their store. A system that is created through an understanding of the information needs of marketing management is called marketing information system. price.A Marketing Information System can be defined as ‘a system in which marketing information is formally gathered. A marketing information system (MIS)consists of people. The card entitles shoppers to discounts on selected items. stored.
.Data is taken from the marketing environment and transferred into the information that marketing managers can use in their decision-making processes. timely and accurate information to marketing decision makers. place and promotion. where and how the marketing mangement is to be done. analyze.
Marketing mix is the combination of elements that we will use to market your product. There are four elements: Product, Place, Price and Promotion. They are called the four Ps of the marketing. Product: What your product offers that your customers value, and whether/how you should change your product to meet customer needs. Pricing: For example, you might aim simply to match the competition, or charge a premium price for a quality product and service. You might have to choose either to make relatively few high margin sales, or sell more but with lower unit profits. Place: How and where you sell. This may include using different distribution channels. For example, you might sell over the Internet or sell through retailers. Promotion: How you reach your customers and potential customer. For example, you might use advertising, PR, direct mail and personal selling. It is concept of filling the gap between opportunity and the objectives to be achieved. Market is a place of bundle of expectation and we can fill this gap with the help of product, the concept of filling this gap is called marketing mix. EXAMPLE: LML and BAJAJ scooters lost because they were unable to fill this gap by morph marketing. LG gained the market by morph marketing. Discounts and offers on various products. Parachute coconut oil with double lid. MARKETING MODEL It is an overview of the entire marketing process which can be shown graphically, often using a computer, and used to solve problems Graphical representations of a process designed to aid in understanding and for forecasting. Marketing models are computerised models that allow simulation of scenarios based on different assumptions about changes to the macro environment and micro environment. MARKETING OBJECTIVE:
It is the collection of various processes that define the essence of the marketing plan, which will include the mission statement and corporate, financial, marketing, and long term objectives which fits the basic business philosophy of the company. Marketing Objectives means is trying to achieve through its marketing activities during a specified period; closely linked with corporate objectives. An objective is essentially a qualitative statement regarding company’s leadership, value/volume, market share, market scatter, product launches et al. Examples: Vodafone UK Marketing objectives: To become a global mobile leader in terms of profit, customers and value, making mobile networks the “nervous system” of the networked economy spanning three major developed markets (Europe, US and Japan) HUL objective To help people feel good, look good and get more out of life with brands and services that are good for them and good for others. (emphasis on expanding the company size via launching various products) Colgate – Palmolive Focuses on achieving the consistent growth required to continue the global success and to make it an even stronger company. It believes this is the best way to benefit its consumers, people and shareholders. The objective of Nokia is to revive their marketing demand to recapture market share in the cell phone industry. The objective of Asian Paints is to be the 5th largest decorative paints in the world from the 10th position. The objective of Raymonds is to enter and be the leader in every clothing segment in the Indian market. MARKETING PLAN: It is steps or procedure taken by a marketer or a company to achieve certain policies, goals etc. It includes elements like deciding marketing policies, marketing goals, strategies, programs etc. A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years.
A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. A marketing plan contains a list of actions and a sound strategic foundation. Examples: • Marketing plan of Maruti Suzuki includes○ To be India’s no.1 automobile industry ○ To keep safety as its top priority while manufacturing the cars • Hyundai- Lunch of Hyundai Pa will bridge the gap between Santro and Getz, giving customers moreoptions within the Hyundai family • • • • Toyota plans to increase its dealership from 97 to 150 DTH major Dish TV aims to add 3 million subscribers this fiscal to take its subscriber base to 10 million by March 2011 YAMAHA will focus on the 150cc+ segment to achieve a target of 25 % share by the end of year. Honda priced its products 41% higher than the cheapest make in philipines.
MARKETING RESEARCH SYSTEMS: Marketing research is a proactive search for information. and what he/she will buy. Examples: Consumer marketing research Business-to-business (B2B) marketing research. to manufacture it in quantities that can be sold to pack it suitably. Marketing research can be seen as the systematic and objective search for and analysis of (data and) Information relevant to the identification and solution of any problem in the field of marketing. The main difference of strategy from policy is that strategy is a decision making under constraints. Activities associated with deciding whether to build. over production and losses in tying of unsaleable stock will not occur. In this ideal case. Market research Information means finding out whom the customer is. or harvest market share and related decisions about positioning your products’ performance and whether to price for margin or growth. advertising and distribution. Pricing on or near the best-value frontier will typically lead to market-share
. MARKETING STRATEGY Marketing strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment. hold. objectives etc. to meet the needs of markets and to fulfil stakeholder expectations. making appropriate arrangements for effective. That is. Market research information means to enable design a product in accordance with customers' preference. Pricing above your product’s fair price will typically lead to market-share loss. Marketing research is fundamentally about the acquisition and analysis of information required for the making of marketing decision. Marketing strategy are the decisions taken by an industry to achieve its goals. the enterprise which commissions these studies does so to solve a perceived marketing problem.
Marketing strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment. media. Mass Customisation is the customisation and personalisation of products and services for individual customers at a mass production price. Management activity that involves (in addition to the typical marketing activities) other elements of a firm's external environment such as government. psychological. Traditionally customisation and low cost have been mutually exclusive. Mass production provided low cost but at the expense of uniformity. allow customers to interact with a company and specify their unique requirements which are then manufactured by automated systems. Customisation was the product of designers and craftsman. Mega marketing is defined as the strategic co-ordination of economic. EXAMPLE: 1) Cable Operators cutting wires
. To-day. political and public relations skills to gain the cooperation of a number of parties in order to enter or operate in a given market. Its expense generally made it the preserve of the rich. EXAMPLE: 1. and pressure groups. Changing performance opens up many other options for changing market share. like the Internet. new interactive technologies. National Bicycle Company MEGA MARKETING: Use of power to market your product. to meet the needs of markets and to fulfil stakeholder expectations Example: • The market strategy for YAMAHA in the year 2010 was to revolve around the campaign “YES! YAMAHA” • Reymonds is planning to open 100 retail stores through its franchisee network in tier 4 & 5 cities in 2010. individually designed products and communications to meet each customer’s requirements. MASS CUSTOMISATION: Mass customization is the ability to prepare on a mass basis.gain. Levi’s Personal Pants 2.
marketingservice agencies. The second component includes the marketing channel firms that cooperate to create value: the suppliers and marketing intermediaries (middlemen. a large number of people are joining the workforce.2) 3) 4) 5)
Pepsi entering India Dainik Bhaskar using against Rajasthan Patrika Pepsi was removed from Indian Railways by Coca Cola Ashok Leyland accused Tata Motors
MEGATRENDS: Megatrends have been described as "large social. The first is the organization’s internal environment—its several departments and management levels—as it affects marketing management's decision making. EXAMPLE: a) Buy 1 get 1 free b) 20% discount
MICRO ENVIRONMENTAL The microenvironment consists of various components. Where ‘P’ stands for product. government. META MARKETING Meta marketing is using a combination of two or more marketing variables for marketing. and international markets. The role of the youth in consuming products and services as well as in influencing family consumption decisions is undergoing a perceptible metamorphosis. As a result their purchasing power is increasing and they are becoming an important consumption group. producer. economic." Young people in the region are playing an increasingly significant role in the consumption of products and services. reseller. The third component consists of the five types of markets in which the organization can sell: the consumer. place. political and technological changes that are slow to form. they influence us for some time— between seven and ten years. price. or longer. financial intermediaries). For example: due to the boom in the information technology sector in India. physical distribution firms. promotion.
. and once in place. Meta marketing means use of more than one ‘P’.
Top management is responsible for setting the company’s mission. Let’s discuss these forces in detail: a. and policies. 4). purchasing. All departments must “think consumer” if the firm is to be successful. The goal is to provide superior customer value and satisfaction. and distribute its goods to final buyers. c. Rising supply costs must be carefully monitored. b. 2) Another point of concern is the monitoring of price trends of key inputs. Physical distribution firms help the company to stock and move goods from their points of origin to their destinations. 2). and accounting all produce better results when aligned by common objectives and goals. broad strategies. However. The Company The first force is the company itself and the role it plays in the microenvironment. manufacturing. 1). R & D. 3). Examples would be warehouses (that store and protect goods before they move to the next destination). Marketing managers must also work closely with other company departments.
. sell. objectives. 2) These include wholesalers and retailers who buy and resell merchandise. They are an important link in the company’s overall customer “value delivery system. Suppliers Suppliers are firms and individuals that provide the resources needed by the company and its competitors to produce goods and services. This could be deemed the internal environment.” 1) One consideration is to watch supply availability (such as supply shortages). Marketing Intermediaries Marketing intermediaries are firms that help the company to promote. Areas such as finance.The Company’s Microenvironment Microenvironment consists of six forces that affect its ability to serve its customers. 3) Resellers often perform important functions more cheaply than the company can perform itself. seeking and working with resellers is not easy because of the power that some demand and use. 1) Resellers are distribution channel firms that help the company find customers or make sales to them. Marketing managers must make decisions within the parameters established by top management.
Customers The company must study its customer markets closely since each market has its own special characteristics. No single competitive strategy is best for all companies. Public A public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.
. publics can be identified as being: 1) Financial publics--influence the company’s ability to obtain funds. credit companies. advertising agencies. e. 4). 6) General publics-a company must be concerned about the general public’s attitude toward its products and services. d. f. insurance companies. These markets normally include: 1). and editorial opinion. 2) Media publics--carry news. 3). 4) Citizen-action publics--a company’s decisions are often questioned by consumer organizations. Government markets (agencies that buy goods and services in order to produce public services or transfer them to those that need them). etc.Marketing service agencies (such as marketing research firms. A company should prepare a marketing plan for all of their major publics as well as their customer markets. media firms.) help the company target and promote its products. etc. Consumer markets (individuals and households that buy goods and services for personal consumption). 5). features. Competitors Every company faces a wide range of competitors. Financial intermediaries (such as banks. Generally. International markets (buyers of all types in foreign countries). A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace. 3) Government publics--take developments into account.) help finance transactions and insure against risks. 5) Local publics--includes neighbourhood residents and community organizations. Reseller markets (buy goods and services in order to resell them at a profit). Business markets (buy goods and services for further processing or for use in their production process). 2).
When people think of examples of a product type or category. managers. such as by ZIP code. and they refer to all such items by that name even if it is a different brand.
.answers. c) Xerox is often used in case of copying.com ➢ Morph marketing is a marketing as per the changing requirements of the customers. and the board of directors. specific occupation. The Internet may allow marketers to make micromarketing even more effective. is one of the main objectives of advertising and promotion. or individual household. or psychographic segments of the consumer market. and advertising campaigns for the benefit of very specific geographic. and manufacturing products.
MORPH MARKETING: DEFINITIONS➢ It is a strategy in which marketer provides a product with an envelope of service---wiki. Micromarketing is a relatively new marketing trend created by the diversity of the consumer population and the difficulty in creating a single product that appeals to all the diverse groups in the population. Alternative term for niche marketing. Micro-marketing is the performance of activities that collectively seek to accomplish a company’s objectives by anticipating customer needs and directing a flow of need-satisfying goods and services from producer to customer. they usually think of a limited number of brand names. MIND SHARE: Mind share or the development of consumer awareness or popularity. creating. marketing strategies. volunteers. demographic. Designing. b) Very few people realize that "Band-Aid" is a specific brand of first-aid adhesive bandage. MICRO MARKETING: It involves targeting potential customers at a very basic level. lifestyle. Examplesa) The term googling describing the act of online searching.7) Internal publics--workers.
➢ Most valuable customer can be a single customer as well as an organization that provides maximum profit. Marketers target customers that can provide the greatest discounted present value of future profits. ➢ Various car companies take all their car’s models back if they found that some fault had occurred in their cars somewhere as a safety precaution.V when your faulty T.V is taken out for service. MOTIVATION:
EXAMPLES➢ LG Provides a replacement T. they also provide a new car as a replacement.
MOST VALUABLE CUSTOMERS: DEFINITIONS: ➢ Customers. ➢ Mercedez BENZ provides instant service for your car . ➢ These customers are the real assests of the company. it is INDIAN RAILWAYS. if default is incurable . EXAMPLES: ➢ GENERAL ELECTRIC is the most valuable customer for IT GAINT BIRLASOFT(60%projects that birlasoft handles comes from GE. ➢ FOR DETERGENTS LIKE NIRMA AND GHARI it is the rural market . ➢ For sleepers manufactures. ➢ Nokia mobiles provides new battery as a replacement for the faulty BL5-C battery. or customer segments. providing the largest stream of profits over the relevant time horizon.➢ It is also known as PACE MARKETING as it provides pace to the business.
EXAMPLES: ➢ MASLOWS HIERARCHIAL theory of motivation that caters physiological .DEFINITIONS ➢ Motivation is the driving force which causes us to achieve goals. Examples: ➢ Lever Brothers sells washing powders under the Persil. The term is generally used for humans but. emotion. ➢ When a company has achieved a dominant market share. The motive may be that the company wishes to create internal competition to promote efficiency.self-actualization needs in a hierarchial order. or avoiding mortality. motivation may be rooted in the basic need to minimize physical pain and maximize pleasure. theoretically. esteem . multibrand strategy may be its only option for increasing sales still further without sacrificing profitability.
. or to get maximum mileage out of established brands that it has acquired. or it may include specific needs such as eating and resting. or it may be attributed to less-apparent reasons such as altruism. ➢ Conceptually. goal. it can also be used to describe the causes for animal behavior as well. ➢ Motivation is related to. morality. Motivation is said to be intrinsic or extrinsic. safety . ideal. ➢ According to various theories. or a desired object. selfishness. or to differentiate its offering to different market segments. Omo and Surf names. state of being. motivation should not be confused with either volition or optimism. ➢ Theory X and theory Y(DOUGLAS THEORY) ➢ HERGBERG’S TWO FACTOR THEORY ➢ EQUITY THEORY ➢ ERG-THEORY MULTIBRAND STRATEGY /MULTIPLE BRANDING DEFINITION: ➢ Marketing of two or more mutually competing products under different brand names by the same company. but distinct from.social.
. Multichannel retailers are also called Merchandising Conglomerates. a web site.➢ Cadbury sells chocolates under the Dairy Milk. In this sense.--monash dictionary of marketing ➢ Multichannel marketing is marketing using many different marketing channels to reach a customer.Stefan Hafner. The objective of the company doing the marketing is to make it easy for a consumer to buy from them in whatever way is most appropriate. D’damas . measured in terms of customer response and conversion of sales. ➢ GITANJALI GROUP have following brands under its nameNakshatra . Some companies target certain channels at different demographic segments of the market or at different socio-economic groups of consumers. email or text message. Bournville and Fruit & Nut names. Spaghetti Hoops and Alphabetti Spaghetti names. Diya . so that the details and prices of goods on offer are consistent across the different channels. It might also be supported by detailed analysis of the return on investment from each different channel. or direct personal communications by letter. producers who use multichannel marketing systems operate their own retail stores as well as sell through other wholesalers and retailers. a channel might be a retail store.
MULTICHANNEL MARKETINGDEFINITIONS➢ A system in which a producer uses more that one channel of distribution. commonly. ➢ Heinz sells canned convenience foods under the Baked Beans. ➢ To be effective multichannel marketing needs to be supported by good supply chain management systems. a mail order catalogue.
COM. ➢ AIRLINES sells their tickets by their websites.MAKE MY TRIP. depending on the meaning of the input matrix:
Classical multidimensional scaling
.retail outlels like BIGBAZZAR. For sufficiently small N.and through others means like HOTSPOT and interet(E-COMMERCE). EXAMPLES: ➢ Mobile companies like nokia sells their mobiles using their own stores PRIORITY.IRCTC website and other registered agents. where N is specified a priori.------------. ➢ MDS is a special case of ordination.COM.offices and through other sites like YATRA.
MULTIDIMENSIONAL SCALING: DEFINITIONS: ➢ Multidimensional scaling (MDS) is a set of related statistical techniques often used in information visualization for exploring similarities or dissimilarities in data.SHOPPER’S STOP. the resulting locations may be displayed in a graph or 3D visualisation. An MDS algorithm starts with a matrix of item–item similarities.-wikipedia. ➢ Railways also sells their tickets through their reservation counters. then assigns a location to each item in N-dimensional space.➢ MultiChannel marketing allows the retail merchant to reach its prospective or current customer in a channel of his/ her liking.—(Wikipedia) TYPES OF MULTIDIMENSIONAL SCALING: MDS algorithms fall into a taxonomy.
(google) ➢ Problems that customers intend to solve with the purchase of a good or service. ➢ Metric multidimensional scaling A superset of classical MDS that generalizes the optimization procedure to a variety of loss functions and input matrices of known distances with weights and so on. and the location of each item in the low-dimensional space. ➢ Non-metric multidimensional scaling In contrast to metric MDS.
NEED: DEFINITIONS: ➢ Needs are the basic human requirements.also known as Torgerson Scaling or Torgerson-Gower scaling – takes an input matrix giving dissimilarities between pairs of items and outputs a coordinate matrix whose configuration minimizes a loss function called strain. ➢ Louis Guttman's smallest space analysis (SSA) is an example of a non-metric MDS procedure.
. non-metric MDS both finds a nonparametric monotonic relationship between the dissimilarities in the item-item matrix and the Euclidean distance between items.(google) EXAMPLES: ➢ Ujala Supreme was a product made to suit customer needs for whiter clothes. And the marketers’ job is to identify the customer wants to develop a product or service specific to customer need. A useful loss function in this context is called stress which is often minimized using a procedure called Stress Majorization. Need is a negative word. The relationship is typically found using isotonic regression. Need means a “felt state” or a sense of deprival.
EXAMPLES: ➢ HERO HONDA SHINE was specifically lauched for girls to realize that “why should boya have all the fun?” ➢ Mercedez benz caters to high rich class people for whom status matter more than money. ➢ Setting a price above the neutral price is a tactic for increasing unit profit margin.➢ Fair and Handsome was a product as a fairness cream specific for men. ➢ Ghari detergent and nirma generally caters to the need of rural population. at the expense of causing market-share erosion. NEED BASED SEGMENTATION: DEFINITIONS: ➢ Group consumers into segments based on similar needs and benefits. ➢ TATA MOTORS launched NANO to caters to the need of middle class as a replacement of two-wheeler. setting price below the neutral price is a tactic for gaining share. ➢ Air conditioners were not needed in cars in European countries. ➢ Each segment is satisfied by same kind of products and offer.
. EXAMPLES: ➢ During shortage price of vegetables and other essential items. their prices increases ato a great extent(much more than the neutral price) ➢ Sometimes companies reduces their product prices to gain market share.
NEUTRAL PRICE: DEFINITIONS: ➢ The price for a product at which its market share will hold at the current level. hence Maruti refitted cars with heaters. ➢ TATA DOCOMO introduces 1 PAISA/SEC . ➢ Widely used concept helps marketers to design their strategy and saves promotional and advertizing costs.
Given the complexity of the human brain. therefore the market niche defines the specific product features aimed at satisfying specific market needs. Critics thinks that such a development will only lead to more marketing manipulation by companies. As of special note. ➢ Small but profitable segment of a market suitable for focused attention by a marketer.----(MARKETING MANEGEMENT BY KOTLER)
NICHE MARKETING: DEFINITIONS: ➢ A niche market is the subset of the market on which a specific product is focusing. the Niche Market is the highly specialized market that tries to survive among the competition from numerous super companies. however many researchers caution that neurological research should not form the sole basis of marketing decisions. marketers are trying to move toward a more complete picture of what goes on inside consumers’ heads. with the resulting low price (due to price elasticity of demand). these research activities have not been universally applauded though. ➢ Every single product that is on sale can be defined by its niche market. By adding neurological techniques o their research arsenal . Narrower demographics lead to elevated prices due to the same principle.NEURO MARKETING: DEFINITIONS: ➢ The term neuromarketing has been used to describe brain research on the effect of marketing stimuli. So to speak. the products aimed at a wide demographic audience. production quality and the demographics that is intended to impact. are said to belong to the mainstream niche—in practice referred to only as mainstream or of high demand. as well as the price range. but are created by
. Market niches do not exist by themselves.
Batra regarding loss of hair.
NON-PROFIT MARKETINGDEFINITIONS: ➢ Marketing activity undertaken by a firm whose primary objective is one other than profit. with some examples revolving around geographic location. ➢ NDTV launched GREENATON. Similarly. age. Honda City are targeted to upper middle class. STAR Cricket target a niche of sports lovers TVS promoting its brand Apache as TVS racing directed to the youth segment identifying the growing demand of speed and power in the segment. Pierre Cardin pens cost RS 250 each Advertisement campaign by Dr. gender. sports channels like STAR Sports. While the marketer is open to consumers of all types. the main focus of the public relations and marketing efforts seeks to identify with the niche market and meet needs that are common to that particular set of customers. and by offering products that satisfy them. Tata NANO is targeted to consumers as a replacement of twowheelers at a cost of RS 1 LAC ONLY Armani socks cost RS 900 for a pair targeted to rich people.
. for example. ➢ Niche marketing is an effort to connect with and sell to a particular group of consumers ➢ There are many different ways to define a niche market. ➢ ➢ ➢ ➢ ➢ ➢ ➢ EXAMPLES: Mercedez . ESPN.identifying needs or wants that are not being addressed by competitors. ➢ organisations that buy and distribute goods and services for reasons other than the return of profit to their owners. PORSCHE and other luxury cars are targeted only to rich urban class who can afford them. or profession.----Monash dictionary of marketing EXAMPLES: ➢ AIRCEL launched SAVE TIGER CAMPAIGN. A number of television channels cater to the need of a particular niche. religion. Cars like Hyundai Sonata . BMW . sexual orientation.
colours . Product forms – cols v/s lime v/s orange Brands – Coke v/s Pepsi
EXAMPLES: ➢ Hero Honda karizma is an object for young . Organizations. ➢ BILL AND MELINDA GATES lauched a foundation to help people from disesses like malaria. Objectives.
. marketers should follow the 7 O’s framework of consumer research. OBJECT: (What does the market buy?) DEFINITIONS: ➢ It is defined as the object of purchase or what does the consumer buy. What are the features .passionate sporty guy. Objects. etc that the consumer seeks? Products – soft drinks. sizes.flavours. The 7 O’s stand for – Occupants . Occasions.➢ TATA TEA launches JAGO RE CAMPAIGN. ➢ IT gaint INFOSYS has a foundation which works for the welfare of society.
7 O’s model of study of consumer behaviour: In order to understand the consumers in the target market. Outlets. Operations.
diwali . educational qualifications of the consumer.
OCCASION(When does the market buy?) DEFINITIONS: ➢ WHEN DO THEY BUY OR HOW DO THEY BUY & USE ( OCCASION) Buying rate or buying frequency of consumers & occasions on which they would buy the product or service for the desired benefits. What motive is he trying to satisfy? EXAMPLES: ➢ To gift to someone during birthday. Birthdays Aniversary Valentine day
OCCUPANT (Who constitutes the market? ) DEFINITIONS: ➢ Occupant is defined as those who constitute the market. ➢ To uplift your status symbol ➢ To impress others ➢ To cater to the present needs ie if your family size is increased then hatch batch car is replaced by big cars like SAFARI. income. ➢ Demographic profile is the study of age. ➢ Indigo airlines for people loving cheap and economic cost airlines ➢ Parker pens for middle level executives.EID etc. demographic. occupation. OBJECTIVE(WHY DOES THE MARKET BUY? ) DEFINITIONS: ➢ WHY IS CONSUMER BUYING? (OBJECTIVE) Why of buying & explain what benefits the consumer expects the product or services to serve. gender. EXAMPLES: ➢ ➢ ➢ ➢ ➢ Festival season—holi . Helps to understand consumer’s geographic. psychographic & media graphic profile.➢ Tata nano for middle class who need it as a replacement for scooter.
. Holidays ie weekends.
Burns & Ronald F. Bush
When organizations use internet to support a phase.V and radio stations. interests & opinions of the consumer. Marketing Research. ONLINE MARKET RESEARCH
The use of computer networks. research design. including development of the problem. Alvin C. and report writing and distribution. Their success did not happen overnight as they participated in wide consumer research strategies throughout their period of success to provide what they deemed their audience wanted. analysis. to assist in any phase of the marketing research process.
. OFFILINE TARGETING STRATEGY: DEFINITIONS: ➢ A popular offline targeting strategy is to create a brand name and style that carries a stigma that your target audience can identify with. or whole of the market research process. including the internet. ➢ Personal selling ➢ Promotion through posters ➢ Advertisements in T.➢ Psychographic profile is the study of the lifestyle of the consumer as expressed by activities .--------(GOOGLE) ➢ Back in the nineties when the economy was still healthy Abercrombie and Fitch marketing affluence and exclusivity at middle class society and as a result created a clothing label out of thin air that was the requirement for all teens and college kids.— (WIKIPEDIA) EXAMPLES: ➢ Distribution of pamphlets during promotion of products. data gathering. ➢ Geographic profile is the region to which the consumer belongs . Media graphic are the media habits of the consumer. it is termed as online market research.
Jr. Operations. Outlets. Occasions. This module of market research also allows speed of execution. sample design and ordering. Churchill.
OPERATION (from the seven O’s of consumer buying behaviour) 7 O’s model of study of consumer behaviour: In order to understand the consumers in the target market. The response rate is also seen to be better off as they can respond to the research in their own space and at their own convenience. Objects.Marketing Research.Occupants. Online research is relatively low in cost in the sense that participants from all over the globe can pitch into the discussions. Boyd & Stanley F. data collection. in the long run it proves to be worth the effort. working mothers can be effectively reached through online research. Teens.
According to the authors of Online Marketing Research: “ The advent of the Web has led to a revolution in the research community” Today RFPs. Gilbert A. Stasch
Online marketing research is the process by which companies use the Internet to gather data to evaluate how well a product or service is selling to consumers. Organizations. marketers should follow the 7 O’s framework of consumer research. Who constitutes the market? Occupant What does the market buy? Object
. Marketing Research. well-educated professionals. The 7 O’s stand for .Text & Cases. Objectives. Although online research requires some prior advanced scheduling and preparations. without engaging in any kind of travel and/or living expenses. data analysis and report writing and distribution are carried out through online tools and services. Harper W.
Example – information collected before purchase.What kind of background information do consumers collect before buying & from whom they seek this information.Why does the market buy? How does the market buy?
Who participates in buying? Organization When does the market buy? Occasion Where does the market buy? Outlet HOW THE CONSUMERS BUY(OPERATIONS) .
It involves the design of the product or service and the processes by which the product or service is produced. adjusting production rates.OPERATIONAL DECISIONS Operational decisions are short-term decisions as opposed to the longer-term strategic investment decisions that are needed when physical assets are being acquired. Some of the more common decisions related to plant operations involve material. A visit to the "Short-term Decisions" page will then be appropriate for a review of some common examples of short-term operational decisions. and the design of processes for the constant improvement of the operation.Oxford University Press
. If the strategy is to compete on cost. at the strategic level. and in-house capabilities of company personnel. the organization decides to compete in the market on the basis of superior quality. Decisions that involve routine tasks. the operations strategy has to plan to produce a package incorporating the specified quality within stated financial constraints. the way in which production is managed and controlled. If. These costs provide the basis for developing successful business strategies and planning future operations. Short term operational decisions are also called Present Economic Studies and they require the estimation of costs associated with various production and manufacturing activities. the plan must produce the product cheaply within the limits of acceptable quality. plant facilities. scheduling personnel and equipment. and controlling the quality of production.
OPERATIONAL STRATEGY A plan to transform an organization's overall strategic objectives into operational deliverables. such as planning production and sales. To make operational decisions it helps to understand some fundamental cost-volume relationships related to the operation of a company. A dictionary of business.
The technique is credited to Albert Humphrey. Keeping in mind the Company Strengths. Opportunities. Opportunities can be classified according to their attractiveness and their success probability. A marketing opportunity is an area of buyer need in which a company can perform profitably. Philip Kotler These are external chances to make greater sales or profits in the environment. Weaknesses. Mere competence does not constitute a competitive advantage. Operational strategy therefore focuses on issues of resources.
OPPORTUNITIES SWOT analysis is a strategic planning method used to evaluate the Strengths. processes.“Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy. who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. The best-performing company will be the one that can generate the greatest customer value and sustain it over time. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.” Slack and Lewis It is concerned with how each part of the business is organised to deliver the corporate and business-unit level strategic direction. The company’s success probability depends on whether its business strengths not only match the key success requirements for operating in the target market. people etc. and Threats involved in a project or in a business venture. through the reconciliation of market requirements with operations resources. These can be seen as targets to achieve and exploit in the future for example:
. SWOT Analysis can now influence the Opportunities for the business. but also exceed those of its competitors.
5. Specifically. Skilled workforce means that they can be moved and trained into other areas of the business 3. opportunities and threats are external factors. Mergers. Moving into new market segments that offer improved profits.
. The plan of action identifies the niche or service identity. The results of such planning and development provide an overall strategy and framework for achieving success. resources. as well as employment centered consultation. 4. A market vacated by an ineffective competitor. joint ventures or strategic alliances. Competitor going bankrupt (Takeover opportunity?) 4.1. the services that will be marketed to community employers will be the availability of a rich pool of personnel options. For example an opportunity could be: 1. A new international market. Moving a product into a new market sector In SWOT. Marketing efforts are directed toward two constituents: 1) community employers.
ORGANIZATIONAL MARKETING Simply put. 2. A developing market such as the Internet. organizational marketing “sells” the unique service or services offered by a supported employment provider. customers served. competition. Increased spending power in the Local/National economy 6. Good financial position creating a good reputation for future bank loans and borrowings 2. and 2) job seekers with significant disabilities.
Organizational marketing requires a creative plan of action and ongoing evaluation. 3. and the outcomes which are expected. Broadband technology has been installed in the area (useful for Internet users) 5.
bus benches. Whereas CONSUMERS are perceived as buying frequently (if not always) for immeasurable personal satisfaction. taxis and business vehicles. The category does not include POSTER SITES in railway or underground stations. The term for this subset is 'transport advertising'. interiors and exteriors of buses. The term 'posters' is generally used in this dictionary in place of the more cumbersome and less self-explanatory combined description. with a 4 per cent share of the total UK advertising expenditure. 'Outdoor and transport' ranks third among the five MAJOR MEDIA. usually with quantifiable benefits in view. and so on. Marketers thus require to base their approaches accordingly . The key CONCEPT is that the fundamental differentiating feature between types of marketing activity is not the nature of the goods being traded. The marketing approach is thus identifiably linked to the subsumed existence of ORGANIZATIONAL BUYER BEHAVIOUR. and signage posted on the exterior of your own brick-and-mortar location. on and in buses.
. or advertising spaces in underground trains. The two are taken together.Virginia Commonwealth University. but the nature of the demand. Westburn dictionary of marketing Any advertising done outdoors that publicizes your business's products and services.even if the PRODUCT being traded is for eventual personal consumption. Types of outdoor advertising include billboards. Westburn dictionary of marketing
OUTDOOR ADVERTISING Technically correct term for the ADVERTISING MEDIUM colloquially referred to as 'posters'. organizations are seen as buying deliberately. in industry analyses and statistics. Rehabilitation Research and Training Center on Supported Employment Definition: A development of the well established term 'INDUSTRIAL MARKETING' to cover the MARKETING of all goods and services between one organization and another.
Outdoor advertising is essentially any type of advertising that reaches the consumer while he or she is outside the home.99 billion in annual revenues in 2008 in the USA. transit. low competition Limitations: Limited audience selectivity. This is in contrast with broadcast. waiting (such as in a medical office). and alternative. people thought that it was meant for upper class consumers. 1600. street furniture. creative limitations
OVER POSITIONING Specifying the brand or product too narrowly with the result that some of the target customers are not reached effectively. therefore. ➢ For example.Entrepreneur Encyclopaedia Out-of-home advertising (or outdoor advertising) is made up of more than 100 different formats. totaling $6. PACKAGING
. low cost. Out of home advertising. Westburn dictionary of marketing
Over positioning is when your marketing makes the product too special. is focused on marketing to consumers when they are "on the go" in public places. in transit. high repeat exposure. Advantages of Outdoor advertising: Flexibility. and Internet advertising. and/or in specific commercial locations (such as in a retail venue). Outdoor advertising formats fall into four main categories: billboards. It means that buyers believe that the product is meant for a very select audience because it is premium priced. so the potential customer group becomes too small. when Aqua Guard introduced Aqua Sure. Whereas the product was priced only at Rs. print.
An important distinction is to be made here between two types of packaging ➢ Transport packing: The product entering in to the trade need to be packed well enough to protect against loss damage during handling. its purpose is to attract attention. wooden crate etc. protect. display. and otherwise make the product marketable and keep it clean. ➢ Consumer Packing: This packaging holds the required volume of the product for ultimate consumption and is more relevant in marketing. and it might include up to three levels of material. aluminium. Monash University marketing dictionary
Packaging is wrapping in which an item is presented for sale. create attractive packaging in order to promote the sale of an item. tobacco etc. provide additional product information. in addition to containment and protection. Ex-Professor. promote. Prof. Dileep Kumar M.The materials (glass. Symbiosis (SCMHRD. Philip Kotler Packaging can be defined as the wrapping material around a consumer item that serves to contain. cardboard. wrap. etc) originally intended merely to contain and protect a product. describe. and assist in promotion.
. in recent years the role of packaging has been broadened so that. The container is called the package. identify. Eg: fiberboard. presentation of a package pack. transport and storage. Eg: beverages. combine things together as one inseparable unit Packaging includes the activities of designing and producing the container for a product.
Old Spice aftershave lotion is in a bottle (primary package) that is in a cardboard box (secondary package) that is in a corrugated box (shipping package) containing six dozen boxes of Old Spice.
The aim is to achieve a large market share by high initial sales. The price charged for products and services is set artificially low in order to gain market share. The strategy works on the expectation that customers will switch to the new brand because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume.
Firms such as Texas Instruments choose this objective because they believe that higher sales volume will lead to lower unit costs and . Once this is achieved. rather than to make profit in the short term.higher long-run profit. Setting prices low in order to gain as much market share as possible as quickly as possible. often lower than the eventual market price.
. This strategy is based on the assumption that (1) the product does not have an identifiable price-market segment. a product is widely promoted and its introductory-price is kept comparatively lower. It is introducing the product at a low price intended to capture the mass market for the product or service. Westburn dictionary of marketing Penetration pricing is a market-based approach to pricing wherein the price is set to a sufficiently low level to make the product attractive to the mass market. Under this approach. to attract new customers. (3) the market is large enough to sustain relatively low profit margins. This approach was used by France Telecom and Sky TV. Strategy adopted for quickly achieving a high volume of sales and deep market-penetration of a new product. the price is increased. and (4) the competitors too will soon lower their prices. (2) it has elasticity of demand (buyers are price sensitive).PENETRATION PRICING Penetration pricing is the pricing technique of setting a relatively low initial entry price.
Any more is a challenge to draw and confusing to interpret. in which the proximity of consumers' images of the new product to those of an ideal product provide an indication of the new product's likely success It is the process by which consumers' perceptions of an existing product are charted. • The perceptual map below shows consumer perceptions of various automobiles on the two dimensions of sportiness/conservative and classy/affordable. or company is displayed relative to their competition. Perceptual maps can have any number of dimensions but the most common is two dimensions. It is the use of a graph or map in the development of a new product. Consumers answer questions about a given product based on their experience with the product and their thoughts about what the product should be.
. brand. and the results are used to make improvements in the product or in the creation of new products.PERCEPTUAL MAPPING Perceptual mapping is a graphics technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Answers are plotted on a graph. They felt Plymouth was most practical and conservative (bottom left corner). product line. Typically the position of a product. This sample of consumers felt Porsche was the sportiest and classiest of the cars in the study (top right corner).
which is the purely evaluative element of the self-concept. such as academics (and nonacademics). Yet it is possible that a person’s actual self-concept (how she views herself) differs from her ideal self-concept (how she would like to view herself) and from her others-self-concept (how she thinks others see her). and a favourable opinion.PERSON MARKETING It is the marketing activity aimed at creating target market awareness. While closely related with self-concept clarity (which "refers to the extent to which self-knowledge is clearly and confidently defined. self-concept theory has had a mixed record of success in predicting consumer responses to brand images.
. Person marketing involves efforts designed to cultivate the attention. internally consistent. Philip Kotler Self-concept (also called self-construction or self-perspective) is a multi-dimensional construct that refers to an individual's perception of "self" in relation to any number of characteristics. and preferences of a target market towards a celebrity or authority figure. and many others. GM paying Tiger Woods 40 million for a 5 year contract ending in 2009 is an example of person marketing. • • Oprah Winfrey uses person marketing to promote her O magazine. of a particular person. it presupposes but is distinguishable from self-awareness. Marketers often try to develop brand images that match the target market’s selfimage. It is also more general than selfesteem.
PERSONALITY & SELF CONCEPT Self-concept (or self-image) is related to personality. interest. and temporally stable"). racial identity. gender roles and sexuality. Which self will she try to satisfy in making a purchase? Because it is difficult to answer this question. which is simply an individual's awareness of their self.
attracts retail shoppers at the point of a purchase. 2) In a priori segmentation. values. and roles. PRODUCT 1) relating to the good or core service being sold. The self-concept is the accumulation of knowledge about the self. the market is split according to preexisting demographic criteria such as age. goals. abilities. in the hope that resulting segments perfume differently in response to market mix variables. Michael. such as beliefs regarding personality traits. Point of sale marketing utilizes display to catch a shopper's attention. Regardless of the type of display. physical characteristics. Lewis. sex or social economic status. commonly known as point of purchase advertising." MerrillPalmer Quarterly 36 (1990):93-116
POINT-OF-SALE: 1) A data collection system that electronically receives and stores bar code information derived from a sales transaction.
.It is defined as the “totality of the individual’s thoughts and feelings having reference to himself as an object. In other words. facilitating the library in determining geographic market are that users reside in. 2) Point of sale marketing. point of sale (POS) marketing lures shoppers into buying additional products or services at checkout. This could the zip codes for library users. POS marketing often results in impulsive purchases PRIORI SEGMENT: 1) It starts by using identifiable variables to divide the market based on who the customers are. "Social Knowledge and Social Development. displays can range from signs and banners to coupon dispensers and video advertisements at the cash register.
e. other businesses and the government. Active Salt b) Transcend memory chips come with lifetime warranty. warranty.g.2) Product. Pricing includes not only the list price. What your product offers that your customers value. after sales service. 4) Anything that is of value to a customer and can be offered through a voluntary marketing exchange. -Kenneth E Clow and Donald Baack PRICE – 1) The price is the monetary value of the product. c) Hotel Industry which is a service is also included in product.000 onwards. Pricing decisions should take into account profit margins and the probable pricing response of competitors. 315-345 for 1 litre. 5) The physical goods sold to customers and other organisations as well as the services that are offered to individual consumers.g. It includes tangible products as well as services. Basically. b) Dell Studio Laptops are priced at Rs. guarantee. and whether/how you should change your product to meet customer needs. but also discounts. Herbal. a) Colgate Toothpaste are available in various variants such as Total. 10 equal to the competitor Coca Cola 2) the transactions price that the customer pays for the product. Sensitive. It is priced at Rs. It includes the features. insurance etc. It must provide value to a customer but does not have to be tangible at the same time. It is the amount a customer pays for the product. Pricing must be competitive and must entail profit. financing and other options such as leasing. design. shape. a) Asian Paints – Royale Luxury emulsion has been placed by Asian Paints as a premium product. style.
. 3) Product – Product is a bundle of utilities. it involves introducing new products or improvising the existing products. e. 42. c) Pepsi is priced at Rs.
6) The amount charged for a good or a service. competition. shipment or invoice date. specific vendor quote. and many others. and place.000. When Sony introduced the world's first high definition television to the Japanese market in 1990. Thus pricing is very important in marketing. Price is the only revenue generating element amongst the four Ps.3) The overall sacrifice a consumer is willing to make – money. combination of multiple orders or lines. a price that many more customers could afford. These televisions were purchased only by customer who could afford to pay a high price for the new technology. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. Automated systems require more setup and maintenance but may prevent pricing errors. price prevailing on entry. 4) Pricing is the process of determining what a company will receive in exchange for its products. Sony rapidly reduced the price over the next several years to attract new buyers.000. Pricing is a fundamental aspect of financial modeling and is one of the four Ps of the marketing mix. quantity break. market place. a 28-inch HDTV cost a Japanese buyer just over $6. promotion. market condition. the rest being cost centers. a Japanese consumer could buy a 40-inch HDTV for about $2000.Kenneth E Clow and Donald Baack PIMS (PROFIT IMPACT OF MARKET STRATEGY) — an ongoing research and consulting activity focused on competitive marketing
. The other three aspects are product. promotion or sales campaign. Pricing factors are manufacturing cost. time. Eg. based on factors such as: a fixed amount. 5) Pricing is the manual or automatic process of applying prices to purchase and sales orders. In this way. the high-tech sets cost $43. and quality of product. energy to acquire a specific product or service. By 1993. . Pricing is also a key variable in microeconomic price allocation theory. In 2001. Sony skimmed the maximum amount of revenue from the various segments of the market the above example shows skimming pricing.
Products that perform worse than average are often priced lower than average. pricing higher in sub-segments that perceive the most differential worth in your product. Products that perform better than average are often priced higher than the average price. 2) The marketing manager can charge different kinds of prices in different markets. . . and reducing price to appeal to other sub-segments according less worth to your product.strategy and benchmarking using a business-unit database. This is known as Price differential or Price discrimination.Tapan K Panda 3) Selling merchandise to different buyers at different price. attribute relative importance. . PRICE CUSTOMIZATION — Setting different prices for different market sub-segments.Russell s. and capital intensity) and relating competitive position and market attractiveness metrics to measures of business results (profitability and growth).
. The research and benchmarking activity focuses on measuring metrics that track a business’s competitive position (relative overall quality/performance. and prices of major offerings in a category for the major competitors in the market. market share. winer 5) A difference in the prices of two products or of the same product in different places PRICE-PERFORMANCE PROFILE — A table showing customerperceived performance scores.Kenneth E Clow and Donald Baack 4) The practice of charging different prices to segments of the market according to their price elasticity or sensitivity. PRICE DIFFERENTIAL — 1) The difference between the price of an offering and the price of a reference offering.
1) Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market. the consumer will experience some level of satisfaction or dissatisfaction. If the product fails short of buyer’s expectation.PRICE PREMIUM — The selling price of the vendor's product minus the selling price of a reference product. c. Indica by Tata Motors for small car consumers who want a more spacious vehicle. POST-PURCHASE – 1) This is the stage in which the consumer looks for the services provided after the purchase.
. The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. It is the opposite of the price advantage a vendor enjoys when selling at a price below the price of the reference product. b. speed. After purchase. the buyer will be disappointed & dissatisfied. exceeded them or was disappointing. PRE-PURCHASE – This is the stage in which the consumer does a market research for a particular kind of product. The result of positioning is the successful creation of a customer focussed value proposition. Post-purchase evaluation: the stage after a product or service has been purchased and used in which the consumer reflects on whether the product met expectations. Domino’s Pizza for convenience-minded pizza lovers . The marketer should always use to reduce the cognitive dissonance by cementing with ads and building relationship with the consumer. and good quality. This dissatisfaction is called Cognitive Dissonance. Benefits being delivery. Mahindra & Mahindra positioned their SUV Scorpio to life style oriented consumers. Examplesa.
These types of associations come in two basic forms : category and competitive. product line. De-positioning involves attempting to change the identity of competing products. Examplesa. Apple(Design) Nike(Performance) Lexux (Quality) POINTS-OF-PARITY -(POPs) are the associations that are not necessarily unique to the brand but may in fact be shared with other brands. c.
. or organization. 4) Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product.1) Developing a specific marketing mix to influence potential customer’s overall perception of a brand . in the collective minds of the target market. in the collective minds of the target market. Re-positioning involves changing the identity of a product. and believe they could not find to the same extent with a competitive brand . POINTS-OF-DIFFERENCE (PODs) are the attributes or benefits consumers strongly associate with a brand. 2) The place a good or service occupies in the mind of consumers and relative to the competition. relative to the identity of competing products. ExampleSituation of Savlon when it entered the antiseptic lotion market in India dominated by dettol. b. positively evaluate.Associations that make up points of difference may be based on virtually any type of attribute or benefit. relative to the identity of your own product. brand.
a) Nikon has centres and showrooms in almost every state across India. transportation. e. It is often referred to as the distribution channel. This environment is composed of laws. how and when products will be available to potential customers. warehousing. This may include using different distribution channels. For example. you might sell over the Internet or sell through retailers. Sometimes these laws also create new opportunities for business. 4) Deciding where.000 stores in over 40 towns across India. inventory management.1) How and where you sell. Some examples of distribution include – Distribution channels. c) Maruti Suzuki has one of the widest chain to dealers throughout the country with multiple dealers in most cities. 3) Place represents the location where a product can be purchased. government agencies. b) Raymonds is retailed through 30. Distribution is about getting the products to the consumer.PLACE . mandatory recycling laws have given the recycling industry a major boost and spurred the creation of dozens of new companies making new products from recycled materials.
. 2) It includes channel management and physical distribution.
POLITICO-LEGAL: 1) Marketing decisions are strongly affected by developments in the political and legal environment. market coverage. order processing. For example. and pressure groups that influence and limit various organizations and individuals.g. It can include any physical store as well as virtual stores on the Internet.
Danger sign on cigarette packs Pricing of medicines is regulated Control on petroleum and diesel prices PERSUADE – 1) To induce to undertake a course of action or embrace a point of view by means of argument or reasoning. Thailand requires food processors selling national brands to market low-price brands also. so that low-income consumers can find economy brands. e. 2) Communication used to motivate consumers to take action. the firm generally lowers the price to capture or skim the next most price sensitive segment. .price market segment becomes saturated and sales begin to slow down.Tata Mcgraw hill PRICE SKIMMING 1) A Strategy of selling a new product or service at a high price that innovators and early adopters are willing to pay in order to obtain it after the high.Tata Mcgraw Hill 2) Pricing policy whereby a firm charges a high introductory price. . a) Cadbury Celebrations persuades consumers to buy it during festivals b) Big Bazar organizes sales and discount offers on Republic Day etc. contests. Example: •Norway bans several forms of sales promotion—trading stamps. to persuade consumers to buy. often coupled with heavy promotion.2) The basic understanding of the political legal environment is when the government implement's laws and or regulations which effects the way a business operates.g. Persuasion is used to stimulate consumers to purchase products even if they do not really need it. and premiums— as inappropriate or "unfair" instruments for promoting products. In India we cannot sell electric appliances.
As the demand of the first customers is satisfied. It is a temporal version of price discrimination/yield management. more pricesensitive segment. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price.-Lamb. the firm lowers the price to attract another. -investopedia
PRICE POSITIONING It refers to the process of differentiating your product on the basis of price. i.e. Hair and Mcdaniel 3) Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first. -Wikipedia 4) A product pricing strategy by which a firm charges the highest initial price those customers will pay. Selling your product at such a price at which your competitors are not selling For eg: • Tata motors launched Tata Nano as lowest price car • Micromax came up with wide range of cell phones available at lowest price
QUANTITATIVE MARKETING RESEARCH
. then lowers the price over time.
Price. RE POSITIONING Repositioning refers to the strategy which the firm adopts when the demand of their product starts falling or people starts ignoring that product For eg: • • When onida failed in India they went to middle Asian countries Surf re positioned itself as a high quality product when other products entered the market
REFERENCE GROUPS Reference groups refers to those groups that have either direct or indirect influence on the costumer’s buying decision For eg: • Children like to buy Adidas cricket bat just because Sachin Tendulkar uses the same
. Place (location) and Promotion. and the modern marketing viewpoint that marketing is an interactive process in which both the buyer and seller reach a satisfying agreement on the "four Ps" of marketing: Product. Marketers use the information so obtained to understand the needs of individuals in the marketplace. and to create strategies and marketing plans. As a social research method. People who respond (respondents) are asked to complete the survey.It is the application of quantitative research techniques to the field of marketing. It has roots in both the positivist view of the world. it typically involves the construction of questionnaires and scales.
It thus creates TOMA among the costumers For Eg: • Colgate is being advertised on a continuous basis so as to retain its costumers
RETAIL AUDIT Study of a selected sample of retail outlets. stock levels. 60% of them would also be retailing mobile handsets RETAIL MARKETING STRATEGY
. sales trends. For eg: • The metropolitan cities having a population of more than 15 million have more than 20. Retail-audit service providers gather information on a brand's sales volume.000 retailers of mobile SIM cards. and other associated aspects. effectiveness of in-store display and promotion efforts.Remarketing refers to the dedicated marketing efforts to spur demand for a product that is experiencing declining demand by marketing it as though it were a new product For eg: • Maruti Suzuki relaunched Maruti VERSA as EECO when people were not buying versa • Tata motors launched Sumo Grande when their sumo was not successful
REMIND Reminding refers to the process of ensuring that people continue buying your product. provided as subscription-based service by market research firms.
A marketing mix consists of the product. price.Retail marketing strategy refers to how a store and its products sell goods to its target customers. Internet marketing strategies and those for stores that people shop at in person must be developed to meet the needs of potential customers. retailers and then final costumers RETAILING Retailing may be defined as a process of selling goods and services to the consumers in small quantity through a number of small retail outlets For Eg: • Titan sells its watches through its retail outlets • Hul sell its entire product range through a number of retailers located in different areas
REVERSAL MARKETING Reversal marketing is done where the people have a negative attitude towards your product. Examples: • Hospitals provide various facilities like free health check-up • Celebrating world heart day for avoiding heart related problems
ROUTINE BUYING BEHAVIOUR
. By this type of marketing the marketer creates a positive attitude in the minds of the consumers. place. For eg: • Amway sells their product through direct selling • Hul sells their products through wholesaler . promotion and packaging. Each type of retail business has to make decisions about all the details of its marketing mix. A retail marketing strategy is first outlined in a business plan.
The strategy works on the expectation that customers will switch to the new brand because of the lower price. rather than to make profit in the short term For Eg: • Micromax came with low priced cell phones
• Nirma detergents are available at relatively lower prices
SEX/GENDER (SEGMENTATION) Dividing a large population into homogeneous groups on the basis of gender / sex For eg: • Allen solly recently introduced a wide range of corporate clothing just for women • Hero Honda launched Pleasure scooters targeting all the girls
. The marketer should generalize the brand and provide wide distribution of the product. Example • Consumer involvement is very low in purchased products like salt. vegetables frequently
PENETRATION PRICING It is the pricing technique of setting a relatively low initial entry price. to attract new customers. often lower than the eventual market price.Many products are bought under condition of low consumer involvement & absence of significant brand differences. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume.
SEGMENT ATTRACTIVENESS Use predetermined attractiveness criteria to determine attractiveness of each segment. It depends on various factors like segment profitability, segment size , growth in that particular segment SEGMENT POSITIONING It refers to the process of targeting your product to a particular segment of the market after identifying the needs and wants of that segment For eg: • Johnsons & Johnsons sells their products targeting all the new born babies • Ponds sells their talcum products targeting only women
SEGMENT PROFITABILITY Object within Profitability Analysis to which costs and revenues are assigned. A profitability segment corresponds to a market segment. You can calculate the profitability of a profitability segment by setting off its sales revenues against its costs. A profitability segment in an operating concern is defined by a combination of characteristic values. SELECTIVE DE-MARKETING Selective De-marketing refers to a situation where the selectively lay-off some of its costumers when it is faces excess demand for its product For eg:
During Season usually Taj Hotels take back all the discounts that have so as to excludes those costumers who comes due to price factor • Jet Airways throws swingers and switchers at the time of full occupancy in the flights giving preferences to its hard core customers SELLING CONCEPT Selling concept is derived from both, distribution and promotional concept. This type of strategy is also termed as the PUSH strategy. There is no demand for such products, but the marketers have to push the products so that the consumers buy them. For eg: Maruti Suzuki aggressively sold WagonR when costumers were not accepting it TARGET MARKET Target market refers to the particular market that the company wants to cater For eg: Tag Heuer caters to only high end of the market
UNIQUE SELLING PROPOSITION The Unique Selling Proposition (also Unique Selling Point). It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands. The term was invented by Rosser Reeves of Ted Bates & Company. Today the term is used in other fields or just casually to refer to any aspect of an object that differentiates it from similar objects.
Domino's Pizza: "You get fresh, hot pizza delivered to your door in 30 minutes or less -- or it's free."
FedEx: "When your package absolutely, positively has to get there overnight" Head & Shoulders: "You get rid of dandruff" Olay: "You get younger-looking skin"
Product:1) A good, service, person, or idea consisting of a bundle of tangible and intangible benefits that satisfies consumers' needs and wants. 2) Of the Product is the most tangible and important single component of the marketing programme. 3) The goods or services that one enters the marketplace to market and sell. 4) Product is the building block of marketing plan. 5) Product is the engine that pulls the rest of the marketing programmes. 6) Product is the vehicle by which a company provides consumer satisfaction. 7) Product is one of the component of the 4P’s. 8) Product is the external marketing plan and strategy. Product for the internal market is all the changes and innovations that are needed to make the external strategy work, including canges in people’s attitude and behavior. Examples:1) Maruti 800 is a product of Maruti Suzuki. 2) Tata Nano is a product of Tata Motors. 3) Fast Track is a product of Titan. 4) Motorazr is a product of Motorla. 5) Passion is a product of Hero Honda. PRODUCT APPRAISAL AND PRODUCT APPRAISAL TABLE:Product Appraisal:- Product appraisal is the process of evaluating how much a product is worth. This is done by comparing the performance of the product against comparable products on the market.
2 Xbox 360 wireless controllers. an Xbox 360 250GB hard drive. 2) Product bundling is a marketing strategy that involves offering several products for sale as one combined product Examples:1) “Xbox 360 Super Elite 250GB Bundle. an Ethernet cable. This saves the customer roughly $35 compared to if these items were purchased individually.Product Appraisal Table:. Examples:-
. an Xbox 360 wired headset. to make it more attractive to a particular target market. a standard definition Xbox 360 composite A/V/ cable. (-marketing concept and stratergies-biztantra-pride. This involves differentiating it from competitors' products as well as a firm's own product offerings. Final Fantasy XIII. This package sells at a price of $399.fenell). 2) It is the process of distinguishing a product or offering from others. 3) Product Differentiation is concerned with the bending of demand to the will of supply.The Product Appraisal Table is a standardized layout for doing the comparison for Product Appraisal. PRODUCT DIFFERENTIATION:1) A marketing process that showcases the differences between products.” for example.(-Smith) 4) It represents a product orientated approach that it is an ‘inside out’ management attitude to marketing planning. includes an Xbox 360 console. and a Final Fantasy face plate. Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products. 5) The process of creating and designing products so that consumers perceive them as different from competing products. 2) In the fast food industry in which multiple items are combined into a complete meal.
PRODUCT BUNDLE PRICING:1) It is defined as “combining several products and offering the bundle at a reduced price”.
00 per bottle. Examples:1) Pepsi has good production distribution system due to which it is available even in rural areas. 2) Hera Honda its product available in all over India by a good distribution system.
PRODUCT LAUNCH:1) The debut of a product into the market. [Pricing] Folgers coffee is made from Robusto coffee beans. [Packaging] Tide costs $5 per bottle. (Both come from the same company BTW) [ingredients] 2) chocolate bars. 3) The orchestrated introduction of a new product (or version of a product) to the market
Examples:1) The product launch of Diet Coke failed as people wanted to drink soft drink which has fully real and enjoyable. 2) The promotional plan for the introduction of a new product. PRODUCT DISTRIBUTION:1) The process of making the goods available to the consumers from the manufacturers. 2) The ratio in which the finished goods is sent off to the market. Bran Flakes is. The product launch signifies the point at which consumers first have access to a new product. product differentiation through packaging. Millstone Coffee is made from Arabica beans. product quality(different ingredient content) and brands. 3) Duck Bags distributes its products more in Pondicherry and other areas where there is rainfall for longer duration in a year. 3) Making the goods available to the target market.1) Wheaties is The Breakfast of Champions.
. bran flakes. Safeway detergent costs $3. well.
that exists within the overall product mix. quality etc. 6) A set of related products sold by a single company. 3) Pricing different products within the same product range at different price points. AC’s and other consumer durables.2) Recently Mahindra launched its motor bike ‘Mahindra Stallio’ which is promoted by Aamir Khan. offered by a firm. 3) HP produces a wide range of printers. but may vary in terms of size. 5) Hero Honda provides a wide range of Motor Bikes. 4) LG produces different varities of television.
. 4) Product lines: a group of products. 5) Product Line: Product line is a collection of products. Thus all products within a product line are related. that satisfy similar needs for different target audiences. target at the same customer groups. and marketed through same channels. 3) Samsung recently launched ‘Samsung Galaxy’ mobile phone. color. 4) Coca Cola recently launced its product ‘Minute Made Nimbu Fresh’ to attack Pepsi’s ‘Nimbooz’. closely related by production or marketing considerations. 2) Product lining is the marketing strategy of offering for sale several related products.
Examples:1) An example would be a video manufacturer offering different video recorders with different features at different prices.
PRODUCT LINE:1) It is a group of products that is closely related because they perform a similar function. 2) Nokia produces a wide range of mobile phones throughout the year which has different features. mobiles.
(marketing management-asian books-s k sarangi). 4) This goes beyond simple inventory to take into account which products bring the most revenue.PRODUCT MIX:1) The complete set of all products offered by a firm is called its product mix. are the most popular and which are less so. 6) The set of all product lines and items that a particular business offers for sale to buyers 7) All of the products in a seller's total product line.Colgate-Palmolive Product Mix. (Marketing-TMH-Grewal and Levy) 2) It is the set of all products lines and items that a particular company offers to buyers.
Ex:. 3) The number of individual products produced or sold by an organization. 5) All of the different products that a company makes or sells. Oral Care Personal Care Household Care Toothpaste(Co Deodorants(S Dishwashing lgate Total) peed Stick) Liquid(Palm olive)
Fabric Care Laundry detergents(F ab)
Toothbrush(Co Bar lgate Plus) Soaps(Irish Spring) Kid’s Product(Colga te Barbie Fruit toothpaste) Whitening Products(Colg ate Simply White) Body Wash(Soft Soap)
Automatic dishwashing liquid(Palmo live) Household Cleaners(Aja x)
Fabric Softener(Sua vitel)
Pet Nutrition Hill’s Pet NutritionDog food(Scie nce Diet) Cat food(Scie nce Diet)
Handwash(So Dish ft Soap) Wipes(Palm olive)
2) Product Promotion involves disseminating information about a product. brand. 3) Projected population 4) Degree of loyalty that consumers feel towards the brand. 2) In American Idol the camera frequently showed the glasses of the judges in which Coke was written and judges used to sip coke through the glass.
PRODUCT RELATED SEGMENTATION:1) The method of identifying consumers by consumption or amount of product usage.
. Examples:1) Coke in Taal was the first active product placement.Floss(Colgate Total Dental Floss) Oral First Aid(Colgate Orabase)
Men’s toiletries(Skin Bracer Aftershave)
PRODUCT PROMOTION:1) Communication used by a business to convince potential customers to buy a specific product. or company. usually categorized psychographically or demographically. 3) While telecasting Cricket Tournaments companies generally promote their product by Ads which generally consists of Soft Drinks. Snacks. product line. 2) Percentage or number of a sample that represent the population. Automobiles.
is the ultimate indignity of the democratic process-Adlai Stevenson.1) Rasna. 9) Promotion helps people know that the right product at right price is available at right place. services.Thomas Jefferson. etc 2) Taj group of hotels identifies those people who will be loyal to them even if they increase their prices. 10) Promotion is the process of marketing communication to inform. persuade. This is done by product related segmentation. 7) Promotion is a form of communication with an additional element of persuasion to accept ideas. like breakfast cereal.e. sales force. 4) Promotion is persuasive communication to inform potential consumers of the existence of products. or the acceptance of ideas. 5) The method by which the benefits of those goods and services are communicated in an effort to justify the price. remind and influence consumers in favour of a product or service. for example is shown as being used in different situations like a party. 6) Communicating with the consumers under the relevant heading i. 8) Promotion is an important marketing strategy and is the sparkplug of the marketing-mix. direct mail etc. to persuade and convince them that those products have want satisfying capabilities. public relations. 2) Advertisements contain the only truths to be relied on in a newspaper. sales promotion. PROMOTION:1) The idea that you can merchandise candidates for high office. advertising. for unexpected guests. Examples:-
. products. 3) Promotion is defined as the co-ordinated self initiated efforts to establish channel of information and persuasion to facilitate or foster the sale of goods or services. a drink at the end of a long and tiring work day. exhibitions.
2) Psychographic segmentation is based on traits.They avoided beef and introduced vegetarian burger. 2) Promotional Merchandise is anything that can be imprinted with your company info. 2) Micromax mobile uses promotion strategy of sponsoring Cricket Tournaments and the Bollywood events.
PSYCHOGRAPHIC SEGMENTATION:1) It is the science of using psychology and demographics to better understand consumers. a tiger as its promotional merchandise. 2) Parle Hippo Chips has a hippopotamous which is black in colour as its promotional merchandise. 3) Titan’s value for money brand. It even promotes to have the latest technology at lowest price. 2) Titan’s Fasttrack brand appeals to the young youth. or lifestyles of potential consumer groups. interests. attitudes. and then provided aside to customers or prospects. targets people who want good looking watches at reasonable price.
Examples:1) Nike uses a tick mark as promotional merchandise in all its products. Sonata.1) Big Bazaar promotes itself by promising to have the lowest price products and in its Ad’s it uses Dhoni and Asin. It even promotes by giving Discount offers and lowest price on Wednesday.
Promotional Merchandise:1) These are articles of merchandise that are branded with a logo and used in marketing and communication programs. Examples:1) Mc Donald’s changed their menu in India to adapt to the consumer preferences. 3) The Commonwealth Games recently held in Delhi had Shera.
etc target at time constrained customers. Top Ramen. the government and the media – Kotler. and not round figures.
PUBLIC RELATIONS:1) Includes communications directed internally to employees of the company or externally to consumers. a woman’s magazine is targeted at the woman with a broader world-view. fast-to-cook food brands such as Maggi. 6) using price as a means of influencing a consumer's behaviour or perceptions. 3) Setting prices according to the psychographics of the aimed-at market segment. Rs 299 etc. 4) Setting the price of a product based on the wanted public perception for that product. ready-to-eat. 2) A pricing technique that creates an illusion for customers or that makes shopping easier for them. Examples:1) Bata produces products which are priced like Rs99 or Rs599 or Rs999 to get the psychological pricing advantage. shirts and trousers as Rs 999 only or Rs 1299 only to the advantage of the consumers regarding pricing. 5) Refers to consumer perceptions of retail prices. 2) A variety of programs designed to promote or protect a company’s image or its individual products.4) Femina.Cabe Kline. 5) Instant Noodle manufacturers. PSYCHOLOGICAL PRICING:1) The recognition that buyer's beliefs and perceptions affect their evaluations of prices. 7) A pricing approach that considers the psychology of prices and not simply the economics-Kotler. 2) Tata Sky has schemes which are priced as Rs149. 3) Koutions price their products i.
. other firms.e.
spouse. to include any other group that the organization wishes to influence. quality camera. etc.Sarangi Examples:1) When Honda Motors had to call back its Honda City model its PR manager had to give official statement about it. then look for the pricing.
.K. such as investors or governments.). and is influenced by factors such as the consumer's (1) societal role (parent. 2) When ever any company need to address the media the generally the public relation officer makes the necessary arrangements for it. –S. there is no direct payment from the originating organization to the media carrying the information. and (3) aspirations and inhibitions. 2) Purchase decision making pattern that is a complex amalgam of needs and desires.3) Mass-communications for which. listening music. for official purpose. (2) social and cultural environment and norms. Examples:1) While buying a mobile a person will keep in mind the requirements from the mobile i. etc. after consulting every one the final decision is made. worker.e. Then need to look for the products and the companies which satisfy the condition. unlike advertising. 5) The total process of building goodwill towards a business enterprise and securing a bright public image of the company is called public relations.
PURCHASE BEHAVIOR:1) Purchase Behavior is the decision processes and acts of people involved in buying and using products. 4) to communicate information about the organization and/or its products and services to audiences that may go beyond prospective customers.
distributor.PURCHASE DECISION:1) The stage in the customer buying process when the purchase decision is actually made. purchase timing. These aspects are the Product choice. Examples:1) While buying a Mobile Phone when all the requirements is satisfied and the buyer is satisfied with the brand.
. dealer choice. 2) It is the aspects which are kept in mind while purchasing a product. 5) Through the evaluation process consumers will reach their final purchase decision and they reach the final process of going through the purchase action. payment scheme he /she makes the final decision to buy a particular mobile. brand choice. 3) The consumers preference among the brands in the choice set and the intention to buy the most preferred brand. purchase amount. product. payment method. 4) Having developed an intention to buy something. the consumer will (barring interference or unforeseen events) follow through and make the purchase.
Out of the various steps. attitude towards it and perceptions of it and of the company which produces it. A profitability segment corresponds to a market segment. These processes are chronological steps which are dependent on each other. cancelling all incentives etc. Examples:
. SEGMENT POSITIONING A marketing strategy is based on expected customer behaviour in a certain market. In order to know the customer and its expected buying process of segmenting and positioning is needed. a few of them may be: increasing price. 3) A measure of the claimed level of future consumption of a PRODUCT or service by target customers who almost invariably overstate their subsequent purchase behavior Examples:1) A consumer who likes the product and would definitely like to use it has made a purchase intention and would use the product.Philip Kotler SEGMENT PROFITABILITY Object within Profitability Analysis to which costs and revenues are assigned.Philip Kotler SELECTIVE DE-MARKETING It is a marketing strategy employed in a condition of overfull demand.1) A plan to purchase a particular good or service in the future. The marketer employs a selective de-marketing of their product. You can calculate the profitability of a profitability segment by setting off its sales revenues against its costs. A profitability segment in an operating concern is defined by a combination of characteristic. 2) Purchase Intentions the likelihood that a consumer will buy a particular product resulting from the interaction of his or her need for it.
holds that consumers and businesses.
SELLING CONCEPT The selling concept. An example of this would be airline companies offering first. The selling concept is practiced most aggressively with unsought goods—goods that buyers normally do not think of buying. so the company has a battery of selling and promotion tools to stimulate buying. This concept assumes that consumers must be coaxed into buying. The selling concept is also practiced in the nonprofit area by fund-raisers. selective de-marketing was employed • Goa tourism during the time of new year faces the same situation and hence adopts this type of marketing. Most firms practice the selling concept
. will ordinarily not buy enough of the organization’s products. with separate marketing programmed to attract the different groups. another common business orientation.
SELECTIVE DISTRIBUTION Selective distribution is when the manufacturer relies on more than a few but all of the intermediaries willing to carry a particular product. The organization must. The company does not need to worry about too many outlets. such as insurance and funeral plots. if left alone. college admissions offices. . business (segment 1) or economy class tickets (segment 2) . and political parties.Philip Kotler
SELECTIVE SPECIALIZATION This is a multiple segment strategy also known as a differentiated strategy.• Due to the high demand of I-phone. it can gain adequate market coverage with more control and less cost than intensive distribution. undertake an aggressive selling and promotion effort. Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups. therefore.
Prospects are bombarded with sales messages. shopper marketing is
. This differs from marketing targeted at consumers in general to get them to buy products. Essentially. In modern industrial economies. productive capacity has been built up to a point where most markets are buyer markets (the buyers are dominant) and sellers have to scramble for customers. These are indefensible assumptions. and if they don’t. It assumes that customers who are coaxed into buying a product will like it. Their aim is to sell what they make rather than make what the market wants. But marketing based on hard selling carries high risks. As a result. . although this type of marketing plays a role in shopper marketing campaigns. the public often identifies marketing with hard selling and advertising.Philip Kotler Provision of assistance to customers and clients
Examples Airtel provides mobile network. that they won’t bad-mouth it or complain to consumer organizations and will forget their disappointment and buy it again.
SERVICES • Service is “any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything”. In fact. something marketers that use hard selling should bear in mind. internet services to the customer Blue Dart provide courier services Taj group of Hotels provide hospitality services Airlines industry provides transport services
SHOPPER MARKETING Shopper marketing is a form of marketing which focuses on appealing to people who are actively in the process of purchasing products.when they have overcapacity. bad news travels fast. one study showed that dissatisfied customers may bad-mouth the product to 10 or more acquaintances.
: Frequent flyer scheme for regular user of an airline company. whether that is a retail store. Social classes are relatively homogeneous and enduring divisions in a society.: Automobile companies like Mercedes. family.marketing in the purchase environment.
SINGLE SEGMENT STRATEGY A single segment strategy involves the firm choosing its single preferred market segment and targeting it with a single marketing mix. and BMW targets the upper segment of the society. Audi. Not all companies use shopper marketing as a tool. interests and behaviour. SOCIAL CLASS: Sociology identified that social stratification is common among many societies. or one which has only located one attractive market segment. or a wholesaler.
. which are hierarchically ordered and whose members share similar values. This is generally chosen by a smaller firm. Reference groups Reference groups influence a person’s behaviour directly or indirectly. Membership card by retail stores like shoppers stop. pantaloons to customer providing benefits at many other outlets in addition to the discount provided. aimed at serving the segment as well as possible. E.g. SOCIAL FACTORS
They include reference groups. and roles and statuses of a person. Social class is a type of stratification. a website. E. but those which do may pursue extensive advertising campaigns to get their messages out.g.
and norms that largely define these tastes and preferences. values. Persons have multiples statuses in different groups to which they belong. People are also influenced by groups to which they do not belong presently. to others. and to the universe.Groups having a direct influence on a person are called membership groups.
SOCIO-CULTURAL ENVIRONMENT: SOCIO-CULTURAL ENVIRONMENT: Purchasing power is directed toward certain goods and services and away from others according to people's tastes and preferences. to organizations. Examples:
. to society. Statuses and roles People choose products that communicate their status in society. brothers and sisters. Marketers have to aware of the status symbol potential of products and brands. Therefore the roles have some bearing on the consumption and purchase decisions. co-workers. People absorb. Each status has a role or group of activities to be performed. Such groups are called aspirational groups. sports teams etc. neighbours. almost unconsciously. Each person has a family of orientation that consists of his parents. but want to belong in course of time. a worldview that defines their relationships to themselves. Society shapes the beliefs. People are influenced in the consumption and purchase decisions by groups in which they are members like family. friend circle. Family Family members constitute the most influential primary reference group or membership group. to nature. He has a family of procreation consisting of spouse and children.
and long-run societal welfare. explosive population growth.• Color of products in Islamic country is dominantly green for eg Colgate. and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being. We propose calling it the societal marketing concept. Such situations call for a new term that enlarges the marketing concept. Hyderabad-Bangalore side people shop during ramzan. long-run interests of consumers and society? The marketing concept sidesteps the potential conflicts among consumer wants. Yet some firms and industries are criticized for satisfying consumer wants at society’s expense. thumbs up. • Shopping trends of various countries are persuaded by festive seasons for example in India people tend to shop around dhanteras. • South Asian countries like Thailand uses more vibrant colours as compared to country like France use subtle shades. which holds that the organization’s task is to determine the needs. The societal
. resource shortages. and neglected social services. • Phillips launched electric shavers in japan they failed in miserably because the size of palm of average Japanese is smaller than men from other nations. world hunger and poverty. moved to countries like Vietnam and Kenya as they have to modify the size of tractor because average size of farmer is 5ft and 6ft respectively. consumer interests. SOCIAL MARKETING CONCEPT Some have questioned whether the marketing concept is an appropriate philosophy in an age of environmental deterioration. Are companies that successfully satisfy consumer wants necessarily acting in the best. • HMT. • McDonald use yellow colour for the face of its mascot Ronald in south East Asian country and white across the world as white color considered as sickness. wants.
marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. They see it as affording an opportunity for companies to enhance their corporate reputation. for example. and increase press coverage. Smart companies will respond by adding “higher order” image attributes than simply rational and emotional benefits. Examples • Aircel launched ‘save the tiger’ campaign to develop awareness about saving the tiger • ITC generates funds for child education by donating Re. They must balance and juggle the often conflicting criteria of company profits. Some companies practice a form of the societal marketing concept called causerelated marketing. They believe that customers will increasingly look for demonstrations of good corporate citizenship. and public interest.’ for mutual benefit.1 for each product sale HUL did a Lifebuoy campaign to generate awareness of the importance of washing hands. consumer want satisfaction.’ or a number of ‘causes. build sales. however. an entire portfolio or an entire company. Then
. the experience of the policy/portfolio/company is projected.
STOCHASTIC MODELLING A stochastic model would be to set up a projection model which looks at a single policy. increase customer loyalty. and the outcome is noted. Pringle and Thompson define this as “activity by which a company with an image. Based on a set of random outcomes. complain that cause-related marketing might make consumers feel they have fulfilled their philanthropic duties by buying products instead of donating to causes directly. But rather than setting investment returns according to their most likely estimate. Yet a number of companies have achieved notable sales and profit gains by adopting and practicing the societal marketing concept. or service to market builds a relationship or partnership with a ‘cause. raise brand awareness. Critics. the model uses random variations to look at what investment conditions might be like. product.
The most likely estimate is given by the distribution curve's (formally known as the Probability density function) center of mass which is typically also the peak(mode) of the curve. but may be different e. with varying scenarios for future investment return.
. for asymmetric distributions. this process is repeated thousands of times. Examples: A minimum investment return of 5% per annum. does not provide a good way of estimating the cost of providing this guarantee. At the end.this is done again with a new set of random variables.g. This is because it does not allow for the volatility of investment returns in each future time period or the chance that an extreme event in a particular time period leads to an investment return less than the guarantee. In fact. A deterministic simulation. a distribution of outcomes is available which shows not only the most likely estimate but what ranges are reasonable too.
Marketing effectiveness is reflected in the degree to which a company or division exhibits the five major attributes of a marketing orientation: customer philosophy (serving customers’ needs and wants). strategies. integrated marketing organization (integrating marketing with other key departments). Unfortunately.
STRATEGIC CONTROL From time to time. strategic orientation (developing formal marketing plans and strategies). appropriate marketing research). independent.34 The marketing audit examines six major marketing components: (1) the macroenvironment and task environment. adequate marketing information (conducting timely. ➤ The marketing-effectiveness review.
. e. systematic. and periodic examination of a company’s (or SBU’s) marketing environment. companies need to undertake a critical review of overall marketing goals and effectiveness. and activities to identify problem areas and opportunities and recommend a plan of action for improving the company’s marketing performance. a comprehensive. objectives.g Stochastic modelling builds volatility and variability (randomness) into the simulation and therefore provides a better representation of real life from more angles. Each company should periodically reassess its strategic approach to the marketplace with marketing-effectiveness reviews and marketing audits. ➤ The marketing audit. (2) marketing strategy. most companies and divisions score in the fair-to-good range on measures of marketing effectiveness. Companies that discover marketing weaknesses should undertake a marketing audit.This is useful when a policy or fund provides a guarantee. and operational efficiency (using marketing resources effectively and flexibly).
Business success and continually satisfying customers and other stakeholders are STRATEGY FORMULATION Goals indicate what a business unit wants to achieve. manufacturing. The resulting profile exposes weaknesses and strengths and highlights where the company might change to become a truly outstanding player in the marketplace. ➤ Overall cost leadership: Here the business works to achieve the lowest production and distribution costs so that it can price lower than competitors and win more market share. (4) marketing systems.(3) marketing organization. ➤ The marketing excellence review. or focus. hurting a firm that has rested its whole future on cost leadership. (5) marketing productivity. and (6) marketing function (the 4 Ps). In addition. companies need to evaluate whether they are truly practicing ethical and socially responsible marketing. they need less skill in marketing. ➤ Differentiation: Here the business concentrates on achieving superior performance in an important customer benefit area. The problem is that rivals may emerge with still lower costs. differentiation. Although many types of marketing strategies are available. Every business strategy consists of a marketing strategy plus a compatible technology strategy and sourcing strategy. This best-practices excellence review rates a firm’s performance in relation to the best marketing and business practices of highperforming businesses. Texas Instruments uses this strategy. and physical distribution. purchasing. strategy describes the game plan for achieving those goals. such as
. Highly successful companies also perform marketing excellence reviews and ethicalsocial responsibility reviews to gain an outside-in perspective on their marketing activities. Firms pursuing this strategy must be good at engineering. Michael Porter has condensed them into three generic types that provide a good starting point for strategic thinking: overall cost leadership. ➤ The ethical and social responsibility review.
Airwalk shoes. Strategy formulation in the age of the Internet is particularly challenging. External Environment Analysis In general. economic. The chemical company Solutia. competitors. these firms end up being not particularly excellent at anything. Middle-of-the-roaders try to be good on all strategic dimensions. and social-cultural) and microenvironment actors (customers. and suppliers) that affect its ability to earn profits (see Chapter 4 for more detail). copes by creating four different. opportunities. for instance. By revisiting strategic plans frequently. This allows the firm to act quickly when it sees a scenario unfolding. technological. both companies are able to stay ahead of environmental changes. International Harvester fell upon hard times because it did not stand out as lowest in cost. differentiates itself through leadership in technology. or best in serving some market segment. political-legal. coming out with new microprocessors at breakneck speed. weaknesses. but because strategic dimensions require different and often inconsistent ways of organizing the firm. SWOT ANALYSIS SWOT Analysis – The overall evaluation of a company’s strengths. a business unit has to monitor key macroenvironment forces (demographic. getting to know these segments intimately and pursuing either cost leadership or differentiation within the target segment.being the leader in service. ➤ Focus: Here the business focuses on one or more narrow market segments. possible short-term scenarios for each strategy. It’s a way of monitoring the external and internal marketing environment. a Monsanto spinoff. for instance. or technology—but not leading in all of these things. Sun Microsystems holds a weekly meeting with the firm’s top decision makers to brainstorm strategies for handling new threats. A marketing opportunity is an area of buyer need in
. Intel. Firms that do not pursue a clear strategy—“middle-of-the-roaders”—do the worst. management needs to identify the associated marketing opportunities and threats. highest in perceived value. for each trend or development. Then. quality. came to fame by focusing on the very narrow extreme-sports segment. style. distributors. and threats.
Threats should be classified according to seriousness and probability of occurrence. Sometimes a business does poorly because its departments do not work together well as a team. to deterioration in sales or profit. If one department has weaknesses that hurt its “internal customers. but also exceed those of its competitors. The best-performing company will be the one that can generate the greatest customer value and sustain it over time. and organizational competencies. It is therefore critically important to assess interdepartmental working relationships as part of the internal environmental audit. for example. manufacturing. Clearly. nor should it gloat about all of its strengths. Opportunities can be classified according to their attractiveness and their success probability. financial. The big question is whether the business should limit itself to those opportunities in which it possesses the required strengths or consider better opportunities to acquire or develop certain strengths. the business does not have to correct all of its weaknesses. An environmental threat is a challenge posed by an unfavorable external trend or development that would lead. Mere competence does not constitute a competitive advantage. Hero Honda
.” Honeywell wants to correct them. INTERNAL ENVIRONMENT ANALYSIS It is one thing to discern attractive opportunities and another to have the competencies to succeed in these opportunities. The notion is that each department is a “supplier” to some departments and a “customer” of other departments. Minor threats can be ignored. The company’s success probability depends on whether its business strengths not only match the key success requirements for operating in the target market. Thus. Honeywell. and major threats require the development of contingency plans that spell out changes the company can make if necessary. somewhat more serious threats must be carefully monitored. in the absence of defensive marketing action. each business needs to periodically evaluate its internal strengths and weaknesses in marketing.which a company can perform profitably. asks each department to annually rate its own strengths and weaknesses and those of the other departments with which it interacts.
Samsung had launched a digital home business. It also requires a company to stay ahead of others and update their own technology as it becomes outdated. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards.000 networked homes that are outfitted with Internet-enabled ovens. refrigerators. As these markets develop it can create new markets and new uses for products. In Korea.• • • • • • •
Strengths – Recognised and established brand name Effective advertising capability After sales service High end Technology Low maintenance Fuel – efficiency Wide distribution network
• • •
Weaknesses – It is vulnerable to joint venture as Honda Motors has much control Brand name ‘Hero’ is itself not close to the automobile industry R&D not close to the manufacturing plant
Opportunities – Global expansion Expansion of target market (including women)
Threats – Bajaj is a strong competitor Increase in price of petroleum and raw materials
TECHNO-LEGAL FACTOR: The techno-legal environment is perhaps one of the fastest changing factors in the macro environment. security cameras. Example: • In an ambitious endeavour. Samsung has 6.
processes. public. It is closely related to (and may arguably be considered a subset of knowledge transfer. academic.
. Discovery is the act of detecting something new. particularly software applications and computer hardware". and retrieve information. Innovations Innovation can be seen as the process that renews something that exists and not. that are linked by a broad array of electronic and optical networking technologies.and wall-mounted flat-panel displays. The Internet is a global system of interconnected computer networks and serves billions of users worldwide. Samsung is looking to take the idea abroad. of local to global scope. store. technologies. the introduction of something new. and government networks. transmit. samples of manufacturing and facilities among governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products. process. knowledge. implementation. support or management of computerbased information systems. • Left hand side –right hand side drivers • Cdma card used in japan • Social security number in usa • UID no in india • Blackberry case-messages have to decrypted by government of india • Fuel-98-99% octane fuel • Harley Davidson changed engine in india
Information technology (IT) is "the study. business. application. applications. Rate of Technology transfer . methods of manufacturing. materials or services. output. It is a network of networks that consists of millions of private. as is commonly assumed. according to the Information Technology Association of America (ITAA). design. IT deals with the use of electronic computers and computer software to securely convert. input. protect. development.Technology transfer is the process of sharing of skills.
" FedEx: "When your package absolutely. It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands.or it's free. Obsolete refers to something that is already disused or discarded. Today the term is used in other fields or just casually to refer to any aspect of an object that differentiates it from similar objects.
USP The Unique Selling Proposition (also Unique Selling Point or USP) is a marketing concept that was first proposed as a theory to explain a pattern among successful advertising campaigns of the early 1940s. positively has to get there overnight"
Some good current examples of products with a clear USP are: Head & Shoulders: "You get rid of dandruff" Olay: "You get younger-looking skin" Some unique propositions that were pioneers when they were introduced: Domino's Pizza: "You get fresh. obsolescence is preceded by a gradual decline in popularity. Obsolescence frequently occurs because a replacement has become available that is superior in one or more aspects. service or practice is no longer wanted even though it may still be in good working order. hot pizza delivered to your door in 30 minutes or less -. Typically. or antiquated. The term was invented by Rosser Reeves of Ted Bates & Company.Rate of Obsolescence: Obsolescence is the state of a being which occurs when an object. A number of businesses and corporations currently use USPs as a basis for their marketing campaigns.
Top of Mind Awareness is particularly important. TOMA holds value for companies offering products and services of all transaction levels. when they're ready to buy they think of you first. name a specific brand or product first when asked to list all the advertisements they recall seeing in a general product category over the past 30 days." Thus. Another definition is.
.TOP OF MIND AWARENESS (TOMA)
"When people think of you first to fulfill their product or service needs. Real Estate Agents. "Top of Mind Awareness" is a way to measure how well brands rank in the minds of consumers. However. Mortgage Brokers. Companies that are well known advertise heavily and have attention-getting ads that tend to receive the highest top of mind awareness scores in ad tracking studies. That way. "Owning the space that your product or service occupies between your prospects' ears. • For companies that conduct high-dollar transactions. TOMA varies from consumer to consumer. "Whom do you think of first when you think of [product/service]?" The answer to that question is the company that has achieved Top of Mind Awareness with you. and Auto Dealerships are particularly reliant on Top of Mind Awareness." TOMA has traditionally been defined as "the percent of respondents who." Another way to explain TOMA is to ask. TOMA correlates strongly with market share of a product. Companies that build brand awareness tend to also rank highly in "Top of Mind Awareness. without prompting.
brandable software. Between December 2009 and March 2010 a series of seven videos were posted to YouTube under the name "iamamiwhoami" leading to speculation that they were a marketing campaign for a musician. advergames. • On July 14 2010. ballooning over 23 million views after 36 hours. Reddit. refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes. Youtube and others. Viral marketing depends on a high pass-along rate from person to person. The campaign ran for 3 days.7 million views after 24 hours. analogous to the spread of virus or computer viruses. the overall growth quickly fizzles. (buzzwords). interactive Flash games. the overall growth snowballs very quickly. In March 2010. ebooks. or even text messages. Old Spice launched the fastest growing online viral video campaign ever. If a large percentage of recipients forward something to a large number of friends. If the pass-along numbers get too low. Viral marketing and viral advertising. entitled 'b'. OR and had their TV commercial star.VIRAL MARKETING Marketing phenomenon that facilitates and encourages people to pass along a marketing message. images. Isaiah Mustafa. Facebook. Old Spice's agency created a bathroom set in Portland. reply to 186 online comments and questions from websites like Twitter. an anonymous package was sent to an MTV journalist claiming to contain a code which if cracked would give the identity of the artist. It can be word-of-mouth delivered or enhanced by the network effects of the Internet. garnering 6. Digg. appears to feature the Swedish singer Jonna Lee
. Viral promotions may take the form of video clips. The seventh video.
which has shifted from charging top dollar for cutting-edge computers to offering basic computers at lower prices. the most important of which is that constant sales and promotions are costly and erode consumer confidence in the credibility of everyday prices. It is a matter of reengineering the company’s operations to become a low-cost producer without sacrificing quality.
. Retailers adopt EDLP for a number of reasons. Monorail Computer started selling PCs in 1996 for as little as $999 to woo price-sensitive buyers. posting a constant. EDLP is not a guarantee of success. This is a major trend in the computer industry.VALUE PRICING Value pricing is a method in which the company charges a fairly low price for a high quality offering.13 Value pricing is not a matter of simply setting lower prices on one’s products compared to those of competitors. As supermarkets face heightened competition from store rivals and alternative channels. More recently. Retailers such as Wal-Mart and Amazon. Value pricing says that the price should represent a high-value offer to consumers. In high-low pricing. which takes place at the retail level. eMachines began selling its PCs for less than $500 without a monitor. and lowering prices significantly to attract a large number of value-conscious customers. Yet promotions are an excellent way to create excitement and draw shoppers. For instance. targeting the 55 percent of computerless households with annual incomes of $25. everyday low price with few or no temporary price discounts. For this reason.000 to $30. These constant prices eliminate week-to-week price uncertainty and can be contrasted to the “high-low” pricing of promotion-oriented competitors.com use EDLP pricing. Compaq and others quickly followed suit. An important type of value pricing is everyday low pricing (EDLP). many are drawing shoppers using a combination of high-low and EDLP strategies. with increased advertising and promotions.000. Consumers also have less time and patience for such time-honored traditions as watching for specials and clipping coupons. the retailer charges higher prices on an everyday basis but then runs frequent promotions in which prices are temporarily lowered below the EDLP level.
Davies. email. Cline. 2003. Early-Entrant Advantage
An unpaid form of promotion in which satisfied customers tell other people how much they like a business. George Silverman. T. Word of mouth is a reference to the passing of information from person to person. R. It is the art and science of building active. but now includes any type of human communication.. Originally the term referred specifically to oral communication (literally words from the mouth). How to Trigger Exponential Sales Through Runaway Word of Mouth
. such as face-to-face. and text messaging. and A. mutually beneficial consumer-toconsumer and consumer-to-marketer communications. Grewal.WORD OF MOUTH MARKETING
According to the Word-of-mouth Marketing Association this is defined as “giving people a reason to talk about your products and services. telephone. Word of Mouth Marketing (also called Online Endorsement Marketing) is a marketing strategy which uses the person-to-person communication of satisfied customers to raise awareness of an organization’s products and services and generate sales. product or service. and making it easier for that conversation to take place.W.