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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
• Affiliate marketing overlaps with other Internet marketing methods to some degree. or electronic media. • Affiliate Marketing is an Internet-based business where affiliates are compensated for each sale brought about by there affiliate marketing efforts. J. Philip Kotler • An advertorial is an advertisement written in the form of an objective article. while at the same time offering valid information to your prospective clients. ADVERTORIALS • Print ads that offer editorial content that reflects favorably on the brand and resemble newspaper or magazine content. Oxford Dictionary Eg: Nike-Just do it. to persuade a target market to purchase or to consume that particular brand. • An advertorial or infomercial is an advertisement designed to simulate editorial content. as by paid announcements in the print. because affiliates often use regular advertising methods.• Advertising includes the name of a product or service and how that product or service could benefit the consumer. Walter Thompson • The activity of attracting public attention to a product or business. 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. broadcast. and presented in a printed publication— usually designed to look like a legitimate and independent news story. • An advertisement promoting the interests or opinions of a corporate sponsor. AGE AND LIFE CYCLE STAGES . often presented in such a way as to resemble an editorial.
place. or event—this is often referred to as the attitude object. because consumer needs and desires change with age. ATTITUDES • A person’s enduring favorable or unfavorable evaluation. indifferent. • An attitude is a hypothetical construct that represents an individual's degree of like or dislike for an item.Consumer’s wants and abilities change with age. Some marketers will offer a product designed particularly for one specific segment of the age cycle. such as a shampoo developed for women over 40 to help with age-related hair changes. or are closely related to. thing. age and life cycle stages are important variables to define segment. The four basic 'Age and life cycle' categories are child. • Age and life-cycle segmentation The process of dividing the consumer market into different age and life-cycle groups. and older adult. • Attitudes are generally positive or negative views of a person. Therefore. • Attitudes are judgments. situation). Philip Kotler • Classification of different age groups of a target market on the basis of their life cycle stages. ATTRIBUTE POSITIONING • . adult. and action tendencies toward some object or idea. Eg: A person’s attitude towards green product ( Eco-friendly product). person. a vitamin specially formulated for young teenagers. positive. negative and hostile. emotional feeling. • Marketing concept that utilizes different marketing approaches for different age categories or different life-cycle segments of the population. They encompass. young adult. an adult version for adult men and women. our opinions and beliefs and are based upon our experiences. and a high-energy formula for people over age 50. Attitude towards the product are: enthusiastic. object. • Attitudes are usually defined as a disposition or tendency to respond positively or negatively towards a certain thing (idea. Eg: a vitamin manufacturer may offer a children's formula for ages 4-12.
100 km in 1 litre. Marketing and sales. ➢ Implications: identify and employ images that promote strong positive emotional responses. ○ Arun Kottoli • Attribute positioning. BABY BOOMERS • baby boomer and older customers (born between 1948-1965) are the single largest consumer group in America. they are. It is probable that the strongest sources of negative impressions are images that conflict with idealized image of self. Eight Progressive Changes in How Baby Boomer’s Minds Process Information: ➢ Less reliance on reason to determine what is of interest.The brand has a unique attribute i. oldest. Fastest. With more disposable income than any population in America. Philip Kotler Eg: Bajaj Discover positions itself on its milage. especially with respect to autonomy and sense of personal validity.. the New Customer Majority. and more on intuition (which is cued by emotional responses). etc. ➢ First impressions (which are always emotionally based) are more durable and more difficult to reverse than for younger adults. and are essential to optimal results in marketing and sales communications. must integrate both empathy and vulnerability (honesty and openness) into marketing messages. best educated and most sophisticated of purchasers. in fact.e. for baby boomers. • • • . and they are the wealthiest. ➢ Implications: be sensitive to images that can stimulate negative first impressions. relationship potentialities are primarily emotionally inferred (“gut feelings”) – rather than rationally deduced. the message highlights one or two of the attributes of the product. relationship building must precede presentation of company and product. Attribute positioning is usually a weak positioning as it does not explain the benefit to the customer. These two attributes are necessary to build trust.
etc. ➢ Implications: manage the transaction continuum so that emotional cues are present when most advantageous. Whoever tells the best story and tells it best will most likely win. technical information. Avoid “jump cuts” and incomplete sentences. then shift to “hard” or objective information when most advantageous. ➢ More sensitive to metaphorical meanings. Storytelling has become an important part of market strategy. ➢ More receptive to narrative-styled presentations of information. nuances and subtleties. Nonverbal symbols are effective in accomplishing this. even deferential manner. especially in terms of metavalues – values that transcend the generic value of the service and expand its perceived attractiveness. Stories are generally quicker to arouse emotions than straightforward propositions about a product’s features. . ➢ Implications: take advantage of greater sensitivity to subtlety to expand the content of the message. Resistance to emotionally neutral information (mainly processed in the left hemisphere of the brain) increases in midlife.. Think Hallmark Cards – they surpass most in using stories to present products. information content must be no greater than what the baby boomer wants at a given point in time. ➢ Implications: Deliver objective information (e. baby boomers tend to want more information than do younger consumers. ➢ Implications: Make greater use of story-telling techniques to get information across.g. product benefits and features. less responsive to information presented in expository style.➢ After a matter qualifies for interest and further attention. ➢ Perceptions are more holistic. ➢ Decreasing speed in rational processing of objective information. ➢ Implications: present information on company and products in a qualified.) at a slow to moderate pace. ➢ More resistant to absolute propositions.
• • • Eg: Mcdonald’s mascot Uncle Ronald’s face is white in all the countries except in Japan and other east Asian countries. National Cash Register Company reintroduced its crank-operated cash register at a lower cost for South American and African markets. Some countries might have a special need and this means that you will have to develop a new product for their special need. web site or sales presentation fails to connect with a baby boomer’s idealized image of self. not just the facet that might need a particular product or service.. single dimension contexts (e.➢ Implications: Project an interest in the “whole” person. For instance. simply showing consumers using or talking about the product without reference to a larger context). 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. 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.g. it is more likely to be ignored. This is an example of backward invention. BALANCED INCOMPLETE BLOCK DESIGN (BIBD) . If an ad. TV or radio spot. there may be a need for pure water in certain countries and you invent a machine that purifies water. also. avoid depicting representatives of target markets in flat. BACKWARD INVENTION • • Reintroducing earlier product forms that can be well adapted to foreign country’s needs. ➢ Understanding how a baby boomer’s brain and mind processes information is key to effective communications. There it is yellow and Ronald is also known as Uncle Suk-Suk.
• • • The Balanced Incomplete Block Design (BIBD) is a well studied experimental design that has various desirable features from a statistical perspective. if information is desired on all four tips ? ➢ A solution to this problem is: to use a balanced incomplete block design. Many governments impose restrictive regulations . which type of marketing statergy to use for a particular target market. BIBD in marketing is: ➢ In some randomized block designs. ➢ The question is: Which tips are to be tested on the first coupon. Protectionism is one that comes to mind. ➢ For example. ➢ The number of blocks necessary for balancing will depend on the number of treatments that can be run in a single block. • 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. even globally. ➢ 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. ➢ 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. ➢ An incomplete block design is simply one in which there are more treatments than can be put in a single block. used to verify are assumptions and observations and also to obtain new results. ➢ Although it goes against the practice of free trade. This is a statistical tool. which on the second and so on. BARRIERS: • Majorly. it may not be possible to apply all treatments in every block. two types of barriers: ➢ Entry barrier ➢ Exit Barrier from the market. barriers of entry do exist.
Again. Small-businesses have to find their own niche product or service that will be able to cater to this group of people. small-businesses have to win over consumers from exisitng providers. Similarly. A niche target market is a specific group of consumers who have a specific requirement. Small companies have to learn to work within their means. however. Financing for small-scaled businesses is. . Small companies are generally unable to reach out to the masses. This can be expensive for customers as they may already be comfortable with their current facilities and fees. not nitch). high-scaled branding and advertising that translates into product differentiation will entice consumers to remain with their larger providers. 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. available.such as high tariffs and quotas in order to protect local businesses from foreign takeover.so they should concentrate on building rapport with their own niche target markets to boost their presence in the market. but is incumbent on a strong business plan with a reasonable but promising financial forecasts. Financial resources can be a massive barrier especially if a company is reliant on expensive raw material. ○ The way around here is to create a niche (pronounced neesh. ○ High Switching Costs and Product Differentiation ○ To increase customer sales. This allows smaller companies to demonstrate their own expertise and product branding. the same way established companies are able to do . financial planning is of the essence here. ➢ Types of entry barrier and methods to overcome them: ○ High Capital Requirements High capital requirements are inherent in start-up businesses.
This would help eliminate the main competition with the big players in the market. especially where distribution channels are concerned. 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. such as the pages they have . Behavioral marketing can be used on its own or in conjunction with other forms of targeting based on factors like geography. Alternatively. create a barrier to exit BEHAVIORAL TARGETING • • Behavioral Targeting is a technique used advertisers to increase the effectiveness of their campaigns. ○ Another popular way is the use of Internet marketing. ○ There are ways to overcome this hurdle. small companies can find ways to "complement" the networking channels (with their niche products and services) to increase bargaining presence in the industry. but the decision to divest is complicated by the presence of several barriers. • Exit Barrier: Divestment can be an appropriate and profitable strategy. The portions of the capital investment that cannot be recovered. Networking and marketing via the net is cost-efficient.○ Lack of Access to Distribution Channels ○ Small businesses have low bargaining power and usually begin with shaky business networks. 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. demographics or the surrounding content. Because of this. sunk costs. fairly non-technical and makes small business owners accessible to billions. The Internet is a potent tool in today's business world. If the Internet marketing strategy jives with the business model.
absolute 6. Ex-User. aware. Readiness stage: Unaware. hostile. 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. User status: Non-user. Medium. Occasions: Regular. Sny Electrical appliances. BENEFIT POSITIONING • A positioning option that features a distinctive customer benefit. the seller may ask for a premium for these over random advertising or ads based on the context of a site. Benefits: Quality. BEHAVIORIST SEGMENTATION Behavioral segmentation. regular user 4. Behavioral Targeting allows site owners or ad networks to display content more relevant to the interests of the individual viewing the page. The key themes or concepts an organization . First-time user. negative. On the theory that properly targeted ads will fetch more consumer interest. Eg: Cadbury Celebrations. desirous. marketers divide group on the basis of their knowledge of. It is divided into 7 categories: 1. service. economy. Special 2. Heavy 5. medium. attitude towards. positive. Loyalty status: None. Usage Rate: Light. MTR Ready to eat food. to select which advertisements to display to that individual. Godrej Hair dye. Practitioners believe this helps them deliver their online advertisements to the users who are most likely to be interested. informed. interested. Bajaj Discover. potential-user. strong. or response to the product. use of.visited or the searches they have made. intending to buy 7. indifferent. Fair & Lovely . and then communicating this distinctiveness through advertising. speed 3. Attitude towards product: Enthusiastic.
advertising. Difficulty in either suggest that a position is to fuzzy to be of value to the brand. 3. is an example of a powerful position based on the quality built into the appliances. freight pallets. Distinctiveness People have few needs that are unfulfilled. Relevance Positions that do not focus on benefits that are important to people or reflect the character of the product will fail. If a brand’s position lacks distinctiveness it will be forced to compete on the bases of price or promotion. 2. its quality image will suffer. The lonely Maytag repairman. a brand that is positioned as premium quality and price appears in an endaisle “sale” display. Coherence Speak with one voice through all the elements of the marketing mix if you wish to create a strong position.features for communicating the distinctiveness of its product or service to the target segment. for example. 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. promotions. Clarity A position should be easy to communicate and quick to comprehend. who symbolizes reliability. Often in their search for differentiation. and they have many choices to fill the needs they have. If. The shipping cartons. This is a waste of time and money. packaging. envelope franking. expensive strategies that will not build brand equity in the long term. There are seven qualities that help to make a successful position: 1. shelf displays etc. “We try harder because we are #2” established Avis as a major league competitor quickly and simply. 4. • Benefit positioning can be used if the brand perceivably differs in its ability to deliver a specific benefit. should all reflect and translate the brand’s position into the appropriate form for the media. marketers seize upon some attribute in their product which is different but in reality is of little concern to customers. • .
Once a position is adopted. Courage It goes without saying that adopting a strong brand position requires bravery. It requires ignoring certain business targets in favor of others. someone else would be enjoying the profits of this powerful brand position. and each person's contribution is equally valuable. 7. 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. rather it is a deliberate attempt to influence events. It is much easier to defend an appeal to everyone with a rather generic sales pitch. The ADA approval was the key to launching the brand to over 40% of the market. 6. Had P&G lost patience after two or three years. You must believe that the position makes strategic sense for the brand and then stick to your guns. 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. • Adopting a strong position is not a passive act. it takes commitment to see it through. even if it costs more.5." Brainstorming business ideas should be uncensored. will yield growth in sales and profits and a consumer franchise who believe that your brand has no adequate substitute. and if successful. Patience Crest has dominated its market for over thirty years. in the face of criticism and pot shots. ( Thinkertoys Michael Michalko ) . No idea is dumb or impossible.
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. or service ideas is to get all of the external senses involved. ( 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. • • BRAND . In this process nothing is too silly or farfetched to be suggested. product. i-Phone launches by Apple Inc are based on several new technologies and concepts which is a result of various Brainstorming activities. ( Thinkertoys Michael Michalko ) • EXAMPLES • • VODAFONE ZOO-ZOO Ads which ultimately established as a Brand is among the most creative ideas. 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 ) 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.• Brainstorming technique for breaking out and generating innovative business.
Staff. term. or mark that distinguishes a product or company from its competitors. Examples include Farley’s (baby food). Branding is the process of creating and disseminating the brand name. its history. service. (Tom Peters) The intangible sum of a product's attributes: its name. and Investors etc.• An identifying symbol. packaging. and the way it's advertised. services. service. • • • EXAMPLES • Heinz is a leading global food manufacturer with a very strong family brand. or concept. its reputation. Managing Brand Equity. (David Ogilvy's ) Brand is the personality that identifies a product. For many products and companies. or concept that is publicly distinguished from other products. or combination of them) and how it relates to key constituencies: Customers. it also operates many well-known individual brand names. Microsoft XP and Microsoft Office in personal computing software and Heinz Tomato Ketchup and Heinz Pet Foods Mc Donald’s in India • • . Partners. A brand name is the name of the distinctive product. or concepts so that it can be easily communicated and usually marketed. David (1991). Branding can be applied to the entire corporate identity as well as to individual product and service names. symbol.) A brand is a product. (Aaker. Usually brands are registered (trademarked) with a regulatory authority and so cannot be used freely by other parties. words. branding is an essential part of marketing. sign. However. service or company (name. and price. or design. Linda McCartney Foods (vegetarian meals) and Weight Watcher’s Foods (diet/slimming meals and supplements).
or concept by directly interacting with . President Loblaw Companies) • Brand Affinity includes various aspects of consumer like Ego . Emotional . It needs to be validated through consumer behavior.BRAND AFFINITY • Brand Affinity is the likelihood to purchase a particular brand in a free choice situation. (Dave Williams. • EXAMPLES • • Heineken is renowned for being the first truly international Beer brand. Cosmopolitan . How well the product configuration delivers value – the customer relevant. functional . tangible product attributes and of course the price being charged for them. Society and most important Association. How well the brand reinforces the value proposition – its attitudinal. (Neumeier. brand. 2. Marty ) brand’s affinity relationship can be understood and managed by focusing on three key aspects: 1. 3. emotional and social relevancy linkages. service. 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 BRAND AMBASSADOR • A promotional model is a person hired to drive consumer demand for a product. Empathy . Native . How well the service/experience has been delivered now and in the past.
credible personalities to promote and give greater visibility to its brand products(Neumeier. causing an • .Rahul Dravid (Cricketer) Santro .Tiger Woods (Golfer) with the Aim of talking about precision. W.. institution or corporation that best portrays the product or service(Neumeier. The Buzz marketing is a type of publicity spread among customers and consumers in a positive society.potential consumers. Accenture . a representative of an organization. Marty ) EXAMPLES • Toyota has roped in actor Aamir Khan as its Brand Ambassador for its utility vehicle Innova in India. A promotional model can be female or male. Marty ) • The brand ambassador is a marketing model that employs trusted. is an expression tool used in a word-of-mouth marketing strategy or manner. Mittal and A.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. Sharma) The buzz Marketing campaigns. B. simply referred at as BUZZ. spontaneous personal exchange of information instead of a calculated marketing pitch choreographed by a professional advertiser (Lassar. and typically is intended to be attractive in physical appearance • "a diplomat. Brittania .
Expressed usually as a percentage of target market. B. Within the first four months of release. Mittal and A. a launch title for the Nintendo Wii platform BMW launched a series of eight high-cost. high-production short films released on BMW's website. Mittal and A. the films attracted over 11 million views and sent BMW sells up 12% in 2001 alone. W. as its name suggests.excitement and anticipation of the product or service(Lassar.. and is correctly associated with a particular product... Clive Owen. (Lassar. W. (Lassar. brand awareness is the • . of the advertising message. it differs from it in the control of the content. of making a noise around a new product or offer. Sharma) EXAMPLES • The Dojo of Pain program served to create buzz and generate awareness for the video game Red Steel. Sharma) • Buzz marketing is a marketing technique consisting. and even Madonna. brand awareness is the primary goal of advertising in the early months or years of a product's introduction. Expressed usually as a percentage of target market. Similar to viral marketing. Mittal and A. The films were produced and directed by such acclaimed filmmakers as David Fincher and Guy Richie and starred actors such as Don Cheadle. • BRAND AWARENESS • Extent to which a brand is recognized by potential customers. W. and is correctly associated with a particular product. The success of the BMW series has prompted many other car manufacturers such as Nissan to adopt a similar internet-based strategy. Sharma) Extent to which a brand is recognized by potential customers. B. B.
the product that maintains the highest brand awareness compared to its competitors will usually get the most sales. (Neumeier. brand language associations made by consumers. Therefore.primary goal of advertising in the early months or years of a product's introduction. profit margins. Marty ) Brand equity valuation requires association of elements like changing market share. there are very few factors that differentiate one product from its competitors. This is because for these products. 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 • 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. consumers' perceptions of quality and other relevant brand values. (Neumeier. • Brand awareness is an important way of promoting commodityrelated products. consumer recognition of logos and other visual elements. Marty) • EXAMPLES .
and is authenticated through the consumers' direct experience The perception that consumers have of a brand. • Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. • • EXAMPLES . Since 1992. BRAND IMAGE • Impression in the consumers' mind of a brand's total personality (real and imaginary qualities and shortcomings). for non-users it is based almost entirely upon uninformed impressions. red-lacquered soles and high stillettos that differentiate Louboutin from other posh and luxurious shoe brands. This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E".• The Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F". 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. Louboutin fulfills all four factors. attitudes and beliefs. For users this is based on practical experience of the product or service concerned (informed impressions) and how well this meets expectations. wearing only and only high-end fashion brand shoes. With shiny. 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 developed over time through advertising campaigns with a consistent theme. red-lacquered soles that have become his signature.
Brand Extension and Franchise Extension. Brand leveraging communicates valuable product information to consumers about new products. Also called Product Leveraging. While coffee machines and coffee beans are in different product categories. Thus. EXAMPLES • 1>Bic is a strong brand name with years of experience in marketing low-cost disposable plastic products such as the Bic pen. product category. 2> The manufacturer of Mr. Brand Image of Amul developed with the punch line that AMUL “The taste of India “. 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. 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 VODAFONE by showing ads of Zoo-Zoo and Dog-Girl Ads and focusing on best customer service • • BRAND LEVERAGING • • 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.• Brand Image of Nike and ADIDAS by providing Sponsorship in various sports events. Coffee™ brand coffee. Coffee™ coffee makers used its brand name strength to launch Mr. but related. 2>A brand leveraging strategy uses the power of an existing brand name to support a company’s entry into a new. there is a strong enough correlation between the two items that the brand name has a powerful impact on consumers of both categories. • .
expressed through their repeat purchases. Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels. 3>When consumers become committed to your brand and make repeat purchases over time. is an example of how passion among consumers has been instrumental in reflecting the loyalty to the brand.• • 3>. trains) to games stores and video stores such a Virgin Megastores. 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. 2> Apple customers have the brand's logo tattooed onto their bodies. the motorcycle brand in the US. 4> Virgin Group. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess. Loyal customers will consistently purchase products from their preferred brands. in marketing. irrespective of the marketing pressure generated by the competing brands. Brand loyalty is a result of consumer behavior and is affected by a person’s preferences. which was initially a record label that has extended its brand successfully many times. 2>Extent of the faithfulness of consumers to a particular brand. • . BRAND LOYALTY • 1>Brand loyalty. • • EXAMPLE • 1>Harley Davidson. regardless of convenience or price. from transportation (aeroplanes.
2>The process of maintaining. which has applied a competitive pressure since 1898. and infotainment luxuries such as Onstar. improving. . • 2>Cadillac's branding message extols the virtues of art and science. but focuses directly on the brand and how that brand can remain favorable to customers. Over time it also associated its brand with a bright red color. precision all weather controls. and upholding a brand so that the name is associated with positive results. product line.• 3>In Finland. Brand management involves a number of important aspects such as cost. Its trademark was officially filed in the US that year and has consistently been displayed with the same script to this day. the hour-glass shaped bottle (1915) and the ribbon logo (1970). and competition. Cadillac showcases proactive safety features. or brand.000 on a mass advertising campaign as early as 1892. in-store presentation. customer satisfaction. Nokia customers remained loyal to Nokia because they admired the design of the handsets or because of userfriendly menu system used by Nokia phones. the Atlanta-based company was already spending over US$ 11. Together these aspects contribute to differentiating Coke from rivals such as Pepsi-Cola. • EXAMPLES • 1>Coca-Cola has become a cliché of brand management. Brand management is built on a marketing foundation. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity. BRAND MANAGEMENT • 1>Brand management is the application of marketing techniques to a specific product. Before branding or even management emerged as disciplines.
changes in quality. Party which acquires. 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. superior availability. perceived risk. or level of satisfaction with the most recent purchase. person-to-person BUYERS • A buyer is any person who contracts to acquire an asset in return for some form of consideration. Also called purchaser. in exchange for money or other consideration under a contract of sale. or benefit or usage (in case of services). Brand switching can be instigated by price promotions. • EXAMPLES • For TIMKEN the gear manufacturing company the buyers will all the Automobiles company and engine or Motor making companies BRAND SWITCHING • 1>Consumer decision to purchase a product brand different from that previously or usually purchased. . in-store displays.the in-vehicle safety. dairy products. desire for novelty. number of available brands. or agrees to acquire. frequency of purchase. ownership (in case of goods). perceived improvements or innovations in competitive brands. Brand switching is most common with products that have no great perceived variation in quality across brands such as bottled water. or paper towels.
packaging. Branding in the classic sense is all about creating unique identities and positions for products and services. Definition 2: Corporations around the world are increasingly becoming aware of the enhanced value that corporate branding strategies can provide for an organization. Once this overall platform has been established and implemented. Definition 3: Corporate branding is a serious undertaking that entails more skills and activities than just an updated glossy marketing facade with empty jargon. A corporate branding strategy creates simplicity. 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. Definition 4: A corporate brand can very often assist the corporation and the management to focus in on the core vision and values. hence distinguishing the offerings from competitors. it stands on top of the brand portfolio as the ultimate identifier of the corporation. treatment and training of employees. and quality of products and services.• 2>Brand switching refers to a consumer’s use of more than one brand within a product category. 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. stationery. 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.Corporate branding is not limited to a specific mark or name . customer service. These touch points include. logo. This ultimately will lead to the final brand architecture of the corporation and set the strategy for how branding .Branding can incorporate multiple touch points. • CORPORATE BRAND Definition1: It is the practice of using a company's name as a product brand name . advertising.It is an attempt to use corporate brand equity to create product brand recognition .
The development of a corporate strategy involves . which has successfully implemented a stringent corporate branding strategy . and (3) aligning policies. Recent approaches have focused on the need for companies to adapt to and anticipate changes in the business environment.e. according to The Wall Street Journal.” This creative platform enables the corporation to bridge between many cultural differences. (2) envisioning a new or effective role for the firm in a creative manner. practices. Examples: • HSBC. it can charge more for its product--and customers will pay that higher price. "to recast itself as a broader technology concern." says Michael Mendenhall. As their brand strategy is to provide good quality products at reasonable price. WAL-MART offers low price and good values. H-P's chief marketing officer. • • 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. and to portray many faces of the same strategy. Because Coca-Cola has built a powerful brand equity.and brands will play an important role to achieve the corporate objectives. That's why H-P is launching a new corporate branding campaign. • Hewlett-Packard" Most people think we are just a printer company. a generic soda. and resources to realize that vision.HSBC employs the same common expression throughout the globe with a simple advertising strategy based on the slogan “The world’s local bank. Definition 2: Corporate strategy is the direction an organization takes with the objective of achieving business success in the long term. a flexible strategy. They attract more customers then other competitive brands." Coke vs.
finance.establishing the purpose and scope of the organization's activities and the nature of the business it is in. Strategic or institutional management is the conduct of drafting. • • COUNTER MARKETING . and opportunity that can communicated as worthwhile to all employees. personnel and marketing. For a vision to have any impact of the employees of an organization it has to be conveyed in a dramatic and enduring way. which are normally dealt with by company visions and missions. Is also concerned with the firm's choice of business. implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. its position in the marketplace. It should not focus so much on today's problems. 1996). taking the environment in which it operates. 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. and thus it defines the overall scope and direction of the business. but rather on tomorrow's opportunities. it used the same plastic injection moulding technology and similar distribution channels to sell what was essentially another mass-marketed.The corporate success depends on the vision articulated by the chief executive or the top management. EXAMPLES • At General Electric (GE) the corporate vision is 'We bring good things to life'. a sense of direction. disposable consumer item. markets and activities' (Kay. The Ford Motor Company vision is 'to become the world's leading consumer company for automotive products and services'. research and development. Definition 4: It must convey a significant stretch for your company. discovery. Bic Pen Corporation expanded beyond ballpoint pen production into disposable cigarette lighters.
It is advertising that takes a position contrary to an advertising message that preceded it.Instead of selling cigarettes. Many paper manufacturing companies mention at the back of their “product save paper save trees”.Definition 1:Advertising that takes a position contrary to an advertising message that preceded it. "Social marketing is the systematic application of marketing along with other concepts and techniques to achieve specific behavioral goals for a social good. TV ads for gambling and suicide help lines. Such advertising may be used to take an opposing position on a controversial topic. Culture could relate to a country (national culture). Definition 2: Counter marketing involves a marketer affirmatively repudiating demand including through avoiding unwanted customers. Definition 3: Social marketers sometimes look at the methods that have been used to sell things. it promotes a tobacco free lifestyle. or preventing certain transactions. a distinct section of .Save India". or to counter an impression that might be made by another party's advertising. EXAMPLES • TABACOO companies use counter marketing by showing various types of ads and mentioning the harmful effects caused by usage of the product . • • • CULTURE Definition 1: Culture is the way that we do things around here. and then they use same methods to unsell them .it means they encourage a change to positive behaviour by same methods that have encouraged negative behaviour." IPCL sells it's products and at the same time it promotes "Save Oil.
the community (sub-culture). So. beliefs and religions. if you can define it. A coffee shop which serves pretty average coffee. ultimately resulting in a horrible response from an insulted society. rituals and artifacts (i. services and customer service. marketing and sales departments can all use customer feedback to streamline processes and improve profitability. But. Management. you might just be on to a very powerful source of business. culture includes all that we have learned in relation to values and norms. Definition 2: Culture is small thing in the world of business. Definition 3: Customer feedback should address the satisfaction level of individual customers. It’s often a representation of the personality. and communicate it in ways that support a positive brand experience. and that it is learned. such as the Sydney Opera House or the Great Wall of China). as well as allowing room for customer . customs and traditions. It’s hard to fake and it’s hard to change. mold it. tangible symbols of a culture. It is widely accepted that you are not born with a culture. EXAMPLES • Coca Cola translating the name into Chinese without backtranslating it ("bite the wax tadpole"). Definition 2: Customer feedback is the process or specific instance of providing information to businesses about products. beliefs and values held by the owner of the business. or an organization (corporate culture). 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. • CUSTOMER FEEDBACK Definition 1: Here the company actively solicits expressed customer needs or feedback to improve its products.e.
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. EXAMPLES • • • National Express. 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. It’s a master stroke . product or service review cards and telephone hot lines. memberships. American Pacific Enterprises . in this case pizza. This increased their bottom line. commenting and all that jazz. one of the UK's leading travel companies invites passengers to send text messages whilst riding the bus. Customer feedback may be solicited or unsolicited by the company. if Dell want to know what their users care about and are most hungering for. • • CUSTOMER INTIMACY Definition 1: Customer intimacy is based on the ability of the supplier to become accepted and known as the regular partner.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. was being consumed and how it would be better. .Now. complete with Ding-style voting. Different types of customer feedback include surveys. Cisco and Microsoft Knowledgebase Dell have turned user feedback into an entire social network site.comments. they just go to this website and the front page lists the most requested product and feature ideas in order of demand! Dominoes Pizza .This example is probably the most publicized company example of surveying their customers to determine how their product.
• . EXAMPLES • IDEO's Innovation build bridges from one department to another. from your company to your prospective customers. just like a village grocer. suppliers become more than merely useful: They become indispensable. Segments and targets markets precisely . Integrates business systems. sustainable competitive advantage.Definition 2: It is one of the three disciplines in the Treacy-Wiersema Value-Discipline Model on which an organisation may focus its energies. Creating high barriers to entry .empowers the people actually dealing with the customer.Jointly develops customizable solutions Definition 4: Customer intimacy is the largest source of your growth. and profit. Welch even nicknamed GE "the grocery store".its builds customer loyalty for the long term . and create a dynamic synergy with customers." Welch believed in trying to know every employee and every customer. and ultimately from the present to the future Jack Welch's goal was to make GE "the world's most competitive enterprise. They often merge their operations with those of their customers. detect unrealized potential. supply chain and roadmaps with the customer . 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. Customer-intimate companies bring an entirely fresh perspective. Everyone in your organization should practice it. They discover unsuspected problems. and in which the business tries to establish relationships with specific customers . In the integration of their operations. Definition 3: A business strategy that focuses on the needs and wants of a specific type of customer.
loyalty means a customer wants to do business with you and does.It is a fallacy to assume that a customer is loyal just because they continue to buy from you.• Nordstrom's and IBM. Definition 4: It means that they do not seek out competitors and.Banners and slogans say it. Advertising focuses on it. to assure customers they care and want to make things right. It meets their value proposition whatever that may be. when approached by competitors. and why they buy. 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. In any case. In a nutshell. it delivers key . 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. the scenario is always the same for the seller – to make their product or service offering the preferred choice. in fact. Moreover. When customer loyalty market research is effective. These companies win by understanding their customers deeply and delivering exactly what they need. Definition 3: Loyalty can be defined as customers continuing to believe that one organization’s products/services offer remains their best option. often in a customized way. and effort daily. They take that offer whenever faced with that purchasing decision. There are many reasons why a customer repeats purchasing which have little to do with being really loyal. Customers make decisions about where to spend their time. Definition 2: But loyalty is more than just behaviour . CUSTOMER LOYALITY RESEARCH Definition 1: Most businesses today recognize – or at least pay lip service to—the importance of customers and their loyalty . money. Definition 5: Customer loyalty research is designed to help companies identify why customers return. And customer service departments have become a standard. are not interested. why they defect. multiple times a day.
EXAMPLES • At Maritz. It’s not surprising that our customer satisfaction consulting accounts for over 20% of total customer satisfaction research expenditures in the United States. Maintaining a stable or growing customer market ultimately depends on keeping the existing paying customers of the business happy. because we deliver unparalleled. behaviors and demographics again and again. complaints and experiences relayed . Most frequently used in business marketing. Neiman Marcus is credited with creating the first customer loyalty program in the retail industry. usually for a product or service.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. Definition 2: Customer marketing is designed to help a business understand customer complaints by tuning in to the voice of the customer. Businesses often give surveys to customers to get feedback that gives them a clearer understanding of how customers think. actionable insights into customers’ attitudes. 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. Keeping in tune with the desires. which is called "InCircle." • CUSTOMER MARKET Definition 1: Customer market" is a term for the portion of available customers who currently patronize a business. multidimensional loyalty research is designed to provide comprehensive data and clear solutions.
Definition 3: Knowing and understanding customer needs is at the centre of every successful business. Once you have this knowledge. 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. CUSTOMER NEEDS Definition 1: It is easy to make assumptions about what customers want and need. 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. clarifies likes and dislikes. EXAMPLES . whether it sells directly to individuals or other businesses. you can use it to persuade potential and existing customers that buying from you is in their best interests. The results of having a more direct conversation with your customer and engaging them through marketing efforts always results in an acceleration. See also customer expectations and customer requirements. 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. PR and relationships with their actual customers and admirers through various Ducati clubs.by customers helps a business better streamline the customer experience. Interviewing customers provides the team with up-todate information on customer priorities. and identifies emerging opportunities.
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
These are attributes that are not normally expected. convenient and personal way.• • Sending new customers a "Welcome Kit. but do not cause dissatisfaction when not fulfilled. 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. 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. “customer relationship blogs” because it allows companies to interact and connect with customers in an immediate. Must-Be : These attributes are taken for granted when fulfilled but result in dissatisfaction when not fulfilled. An example of this would be package of milk that leaks. 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. you would follow up with an e-mailed discount. Customers are dissatisfied • • . If 60 days pass and the customer has not made a second purchase. a thermometer on a package of milk showing the temperature of the milk. These are attributes that are spoken of and ones which companies compete for. You are using customer behavior over time (the customer Life Cycle) to trigger the marketing approach. One-Dimensional : These attributes result in satisfaction when fulfilled and dissatisfaction when not fulfilled. they are often unspoken. Since these types of attributes of quality unexpectedly delight customers." which might have an incentive to make a second purchase. but if it only contains six percent then the customer will feel misled and it will lead to dissatisfaction. For example.
For example. and they do not result in either customer satisfaction or customer dissatisfaction. Since customers expect these attributes and view them as basic. then it is unlikely that they are going to tell the company about them when asked about quality attributes. while others prefer the basic model of a product and will be dissatisfied if a product has too many extra features.when the package leaks. Learn which attributes are perceived to be associated with the product(s). It will explain the satisfaction of the customer. A survey might be used by a retail store chain wanting to know how customers feel about their stores. Many people are familiar with "business to customer" (B2C) or retaillevel research. That means communication and data gathering. Reverse : These attributes refer to a high degree of achievement resulting in dissatisfaction and to the fact that not all customers are alike. Find information and methods about how to gather and . because finding new customers is generally more costly and difficult that servicing existing or repeat customers. It is designed to identify areas needing improvement. Definition 2: Understanding your customers is a critical element of providing customer service. but when it does not leak the result is not increased customer satisfaction. Many firms are interested in understanding what their customers thought about their shopping or purchase experience. • Indifferent : These attributes refer to aspects that are neither good nor bad. Product registration form provides an excellent opportunity to do market research. • EXAMPLES • • 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. some customers prefer high-tech products. but there are also many "business to business" (B2B) or wholesale-level projects commissioned as well. This survey attempts to find out how various factors affect a customer's buying decision.
You can quickly customize the form to reflect the work flow of your company. surveys. Mineful's market research software and online questionnaire tool helps you::: Create online surveys using an intuitive wizard interface. 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. building business web forms. during and after a purchase.satisfaction levels. Definition 2: "Customer service is about treating others as you would like to be treated yourself". technical support and quality of service in a timely manner" EXAMPLES . Mineful is a web based software for creating online surveys. Send invitations and track respondents using uploadable email lists. and help you establish fool-proof procedures that ensure prompt action is taken when a customer is unhappy with the products or services received. • CUSTOMER SERVICE Definition 1: Customer service is the provision of service to customers before. and easily analyzing and reporting data.make sense of customer information . Definition 4: Customer Service is the commitment to providing value added services to external and internal customers. It will help prevent customer problems from falling through the cracks. provide for an orderly hand-off to someone who can address the matter. use of focus groups. including attitude knowledge. EXAMPLES • Many companies have easy-to-use form designed to aid in the quick resolution of customer service problems. View your data and create reports and graphs online.
if equal to fair price. if more than the fair price. negative. • CUSTOMER SURPLUS Definition 1: A measure of the value of a particular deal to the customer. tMobile has a customer service which is through their own phone a message can be sent directly to their customer service centre. They provide their customer the required support. Surplus is the difference between the fair price and the price actually paid. . zero. If the price the customer pays is less than a fair price. Customer can send a secure email to them at anytime day or night.• Bank of America has a 24 hour customer service. the surplus is positive..
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. .
EXAMPLES • If a bid to buy the yacht. If a consumer would be willing to pay more than the current asking price. 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.000 then the bidder will be informed that this is not the highest bid but the new bid price will now be £140.000 (I can but dream!).000 for the item concerned. In these markets. then they are getting more benefit from the purchased product than they spent to buy it. I might decide that I was willing to pay a maximum of £175.000 will I lose the auction. Definition 3: An organization's rating of the value it provides to its customers relative to that provided by its competitors. It works best in the business-to-business and consumer-durables markets.000.001.Definition 3: Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price they do pay.000. customers flow from companies that provide inferior value to those that provide superior value. Definition 2: It shows how customers select between competing suppliers. Only if someone bids more than £175. . CUSTOMER VALUE ANALYSIS Definition 1: Customer Value Analysis is a customer-survey methodology that helps customer increase market share. then the bidding site will show me as the new highest bidder at £128. which are formed by their perceptions of quality and price. but I might end up paying the full £175. customers make purchase decisions based on their perceptions of value. In the aggregate. If another bidder offers £140. If the current highest bid is only £128.
Survey results are used to manage the business at a fundamental level. Customer value management enables companies to take full advantage of the economics of loyalty by increasing retention. 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. 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. Definition 3: It is central to gaining the maximum lifetime value of managing customers by turning your data into Intelligent Information . they always mention the important parts of the product in their advertising such as it makes teeths . reducing risk. While CVM can and does lead to better product offerings and more targeted campaigns. A product's relative value is the customer-perceived performance-for-price relative to rival brands. Art and science of measuring. analyzing.Definition 4: The path to improved customer value starts with data. 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. EXAMPLES • Company like colgate. Customer value analysis develops a quantitative picture of the markets in which you compete. CVM solutions enable you to best respond to your customer needs in a timely manner. a customer value manager will ask different questions than a traditional marketing manager. and managing value.
they promote their product through advertising the essentials of the product. and segments from the mass of data. and web site usage are just some of the data that reside in customer databases. sales. 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. marketers are increasingly using data mining procedures. trends.healthy. and customer support operations. Purchase histories.helps improve stain and much more. (Philip Kotler. a data warehouse provides the basis for an analytical system • . • They always Ziploc has mentioned on their packaging fresh food always. 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. organized. (Philip Kotler. financial records.Marketing Management) Internet-based marketing strategies generate extremely large data sets from customer interactions. • DATA WAREHOUSING • A collection of current data captured. In essence. customer service records. In order to transform this mountain of diverse data into operationally useful information. include it in their marketing. DATA MINING • Extracting of useful information about individuals. and stored in a company’s contact center.Marketing Management) IBM defines a data warehouse as a place that stores enterprise data designed to facilitate management decisions. Data mining and data warehousing provide the means and the infrastructure for extracting strategic opportunity from knowledge of the customer. freez.
Each customer generates a stream of transaction records over time. or by whether you order a salad with your pepperoni pizza. fails to fully disclose . market. or sales person is an opportunity to create knowledge.where periodic data points are collected and stored at specified times for future analysis. In order for this data to be useful. customer service inquiries. and web site data. Data sources may include scanner data. Example: PIZZA HUT Pizza Hut claims to have the largest fast-food customer data warehouse in the world. organize. Data warehouses exist to support the decisionmaking process by providing ready access to market and customer data. application. Data warehousing enables the firm to organize and store this data for analysis purposes. Advertising is considered as such when it makes spurious claims about a product. warranty forms. billing records. Pizza Hut has not only been able to purge expensive duplicates from its directmail campaigns. date of last order. Deceptive Advertising is illegal. Pizza Hut can slice and dice data by favourite toppings. Firms collect data from these day-today business operations. firms can design more effective and efficient ways to serve their customers. a marketing data warehouse is a repository for data that has been collected from internal and external data sources. it is often organized and stored in a data warehouse. Every record of a transaction or interaction with a customer. Simply put.S. channel member. Using its Teradata Warehouse Miner. Data warehousing enables marketers to capture. DECEPTIVE ADVERTISING • Any advertising intended to mislead the consumers. households—or between 40 and 50 percent of the U. The millions of customer records are gleaned from point-of-sale transactions at its restaurants. supplier. and store potentially useful data about customers and markets for decision-making purposes. call reports. with 40 million U. registration forms. By careful analysis of this and other data.S. but can also target its marketing to find the best coupon offers for each household and predict the success of campaigns.
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. non-routine problems. For example. For example bait and switch advertising by the retailers is considered as deceptive advertising. Advertising agencies. Concepts and Applications By Mark N. management control and operations control. in a neighbouring country.information about it. 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. Decision making can be divided into 3 types: strategic. 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. that it should supply the various pasta products and the local company put its own brand name on the packs. or otherwise creates false impressions. This process generally involves a small group of high-level managers who deal with very complex. 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. It is one of the areas that information systems have sought most of all to affect (with mixed success). 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. unit costs were shooting up due to increasingly frequent breakdowns in the ageing equipment used in pasta production. resources and policies of the organisation. some years ago. The laws prohibiting deceptive advertising are enforced by the Federal Trade Commission. However. Strategic decision making: This level of decision making is concerned with deciding on the objectives. These products constituted a sizeable proportion of the company's sales turnover. Moreover. (The Marketing Glossary: Key Terms. The • . Clemente) DECISION MAKING: • Decision making is often seen as the centre of what managers do. something that engages most of a managers time.
decision making can be classified as either structured or unstructured.g. The focus here is on how the enterprises should respond to day-to-day changes in the business environment. The manager (in this case the owner) has to decide between several alternative courses of action. Operational control decisions: These involve making decisions about carrying out the “specific tasks set forth by strategic planners and management. Determining which units or individuals in the organisation will carry out the task. 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. its capital equipment.• • • decision is strategic since the decision has implications for the resource base of the enterprise. increasing unit carrying charges to cover the deficit. . Management control decisions are more tactical than strategic. and so on. Unstructured decisions are those in which the decision maker must provide insights into the problem definition. its work force. including: selling of trucks. it takes place within the context of broad policies and objectives set out by strategic planners. 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.e. Management control decisions: Such decisions are concerned with how efficiently and effectively resources are utilised and how well operational units are performing. and non-routine. often as much as ten to fifteen years. evaluating outputs .all of these tasks involve decisions about operational control. increasing promotional activity in an attempt to sell the spare carrying capacity. Management control involves close interaction with those who are carrying out the tasks of the organisation. important. establishing criteria of completion and resource utilisation. or seeking to switch to carrying products or produce with a higher unit value where the returns to transport costs may be correspondingly higher. The implications of strategic decisions extend over many years. They are novel. In particular. Within each of these levels. e. i. its technological base etc.
especially if they are designed to report exceptions. at frequent intervals. have several influences. finally. This broad set of information gathering activities is required to inform managers how well the organisation is performing and where problems exist. Management information systems that deliver a wide variety of detailed information can be useful. Management will want to know. Suppose. 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. information systems could assist in making such a decision. Structured and unstructured problem solving occurs at all levels of management. That is. once perceived solutions must be designed. To arrive at some answer. whether sales targets are being achieved. The literature has described 4 stages in decision making: intelligence. use many sources of information and have to go through several stages. exciting applications are occurring in the management and strategic planning areas. if at all. choice and implementation. structured decisions are repetitive. for example. Ideally. it is helpful to break down decision making into its component parts. In contrast. choices have to be made about a particular solution. In the past. operational.• • • and there is no well-understood procedure for making them. It soon becomes apparent that the decisions are likely to be made over a period of time. Intelligence involves identifying the problems in the organisation: why and where they occur with what effects. consider a commercial organisation marketing a large number of different products and product variations. the information system will report only those . 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. It is worth considering the question of how. design. and management control decisions. once solutions are designed. most of the success in most information systems came in dealing with structured. However. Making decisions is not a single event but a series of activities taking place over time. the solution has to be implemented. problems have to be perceived and understood. routine. in more recent times. For instance.
more carefully specified and directed information activities and capabilities focused on specific designs are required. resource constraints. local buying points in all regions. Implementing is the final stage in the decision making process. but without the aid of a formal information system. possibly also fairly large. At any point in the decision making process it may be necessary to loop back to a previous stage. Consider again the problem of balancing the costs and benefits of establishing local buying points for the National Milling Corporation. the stages of decision making do not necessarily follow a linear path from intelligence to design. one may have reached stage 3 and all but decided that having considered the alternatives of setting up no local buying points. we rely upon generalisation and/or intuition. the government decides to increase the amounts held in the strategic grain reserve. Another scenario would be that having implemented a decision one quickly . This could cause the parastatal to return to stage 2 and reassess the alternatives. The following table illustrates the stages in decision making and the general type of information required at each stage. because of the detailed analytic models required to calculate the outcomes of the various alternatives. human beings are used to making such calculations for themselves. Here. managers can install a reporting system that delivers routine reports on the progress of a specific solution. districts or villages. Here a manager needs an information system which can estimate the costs. Stages in the decision making process In practice. This phase may require more intelligence to decide if a particular solution is appropriate. opportunities and consequences of each alternative problem solution. Here. and possible remedial actions. Designing many possible solutions to the problems is the second phase of decision making. For example. Of course. choice and implementation. The information system required at this stage is likely to be fairly complex.• • • products/product variations which are performing substantially above or below target. some of the difficulties that arise. Choosing among alternative solutions is the third step in the decision making process.
Concepts and Applications By Mark N. (The Marketing Glossary: Key Terms. the decision maker may have to repeat the design and/or choice stage(s). DECISION SUPPORT SYSTEMS (DSS) • A computer based system designed to assist in management decision making. And the market research that is done to analyse the demand in the market. Manufacturing companies regularly conduct market surveys and collect sales data to simulate demand and production requirements. The system then outputs information describing the implications of specific decisions. Decision Support Systems enable management to conduct “what-if” analysis. .receives feedback indicating that it is not proving effective. Decision Support Systems are comprised of specially developed software and hardware. DSS are often used in sales forecasting and in determining media schedules. Clemente). Again. LG franchisees must make a sales register to analyse the consumers’ responses to their product. For example the management might ask: “If we increase the number of distribution outlets in a given area. Demand forecasting involves techniques including both informal methods. and how its sales performance can be improved. DEMAND ANALYSIS • Study of sales generated by a good or service to determine the reasons for its success or failure. • • DEMAND FORECASTING • Demand forecasting is the activity of estimating the quantity of a product or service that consumers will purchase. (Such Systems may also be designed to recommend specific decisions). Management inputs data (qualitative and/or quantitative) into the system. what will be the impact on product sales in that area?” In marketing.
such as the use of historical sales data or current data from test markets. education. 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. there is often much more data available to help with the demographic segmentation process. Vietnam and Africa. race and nationality. As you might expect. DEMOGRAPHIC SEGMENTATION • Demographic segmentation consists of dividing the market into groups based on variables such as age. gender family size. in assessing future capacity requirements. religion.• • such as educated guesses. or in making decisions on whether to enter a new market.e. for practical reasons. income. For example. 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. So Marketers design. Demand forecasting may be used in making pricing decisions. This is partly because customer wants are closely linked to variables such as income and age. package and promote products differently to meet the wants of different age groups. Life-cycle stage A consumer stage in the life-cycle is an important variable particularly in markets such as leisure and tourism. demographic segmentation variables are amongst the most popular bases for segmenting customer groups. Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments). Also. contrast the product and promotional approach of Club 18-30 holidays with the slightly more refined and sedate approach adopted by Saga Holidays. occupation. and quantitative methods. • • .
the values of which may be stated with certainty and are sufficient to describe the system behaviour. leisure activities and other products & services. Income Another popular basis for segmentation. Moet & Chandon champagne and Elegant Resorts . Lifestyle Marketers are increasingly interested in the effect of consumer "lifestyles" on demand. DIFFERENTIAL WORTH • The difference in the worth (economic value) of benefits delivered by one product versus a reference product. and discount clothing retailers such as TK Maxx.an up-market travel company. It is equivalent to the monetary difference between the two products’ . clothes.• Gender Gender segmentation is widely used in consumer marketing. There is a clear link here with income-based segmentation. The best examples include clothing. many companies focus on marketing products that appeal directly to consumers with relatively low incomes. By contrast.e. hairdressing. Good examples include Coutts bank. Many companies target affluent consumers with luxury goods and convenience services. Unfortunately. 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. home furnishings. Social class Many Marketers believe that a consumers "perceived" social class influences their preferences for cars. Airtours holidays. Examples include Aldi (a discount food retailer). a model based on variables. there are many different lifestyle categorisation systems.
Differentiated Marketing tends to raise costs and firms may be forced to practice differentiated marketing to remain competitive. which enters first.etc • • • • DIFFUSED PREFERENCES • This refers to pattern of consumer preferences in terms of various attributes of a product or service. In this type of product market the company. is likely to position its . However. inventory and promotional activities. An example of differentiated marketing is a company that produces coffee and markets various types: regular. One of the preferences are known as diffused preferences where consumer preferences are scattered indicating that consumers vary greatly in terms of their preferences. and Shaktiman. Nokia has various models catering to segments of the population. business (segment 1) or economy class tickets (segment 2) . Differentiated marketing creates more toatal sales than undifferentiated marketing. Like Mahindra Ultra. the costs of engaging in a differentiated are high. The reference product can be the average product (in the category or consideration set) or a specific competing product. An example of this would be airline companies offering first. instant etc.positions on the fair-value line. Example: Mahindra tractors have different products for different segment of population. DIFFERENTIATED MARKETING • When a firm produces numerous products and promotes them with a different marketing mix designed to satisfy smaller segments. 5310. with separate marketing programmed to attract the different groups. Nokia 1110. A strategic consideration where a company chooses to operate in more than one market segment and develops specific products and promotional strategies for each. Eseries. decaffeinated. This is because the company must modify its product and incur increased costs for specialized administrative. Turbo.
c) Relationship – customized connections and knowledge related to individual customers and key accounts. d) Brand affinity – KBFs relating to the authority the brand holds with customers. the field of digital marketing includes a whole host of elements such as mobile phones. and f) Other costs – that the customer incurs in addition to the transactions price not necessarily paid to the supplier. display / banner ads and digital outdoor. e) Price – the transactions price that the customer pays for the product. Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing. 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. Internet. mobile and any other form of digital media. they are likely to position throughout the space and try to show real differences to match consumer-preference differences. DIGITAL MARKETING • Digital Marketing is the promoting of brands using all forms of digital advertising channels to reach consumers. b) Customer service – customer care activities that support the delivery of the product or core service. If several brands are in the market. This now includes Television. Examples: Advertisements on television.product in the centre of the product preference map to appeal to the most people. sms/mms. . Radio. how well customers identify with the brand and its promise. As a result of this non-reliance on the Internet. and peer-group approval associated with using the brand. Digital displays in the malls for advertising.
Although the key buying factors will be different for different market categories. they can always be classified into these dimensions. coupon ads in print media.). and voice mail marketing. offer. personal income. • • • • DISPOSABLE INCOME • Disposable income is total personal income minus personal current taxes. rather than via a mass medium.direct channels to reach and deliver goods and services to customers without using marketing middlemen. private) consumption expenditure) yields personal (or. television marketing (i. private) savings. Example: As soon as Beverly got her realtor's license she sent postcards to all the addresses listed in her zip code.directly reaching a market (customers and potential customers) on a personal (phone calls. or mass-media basis (infomercials. curbside stands. FAX broadcasting. DIRECT MARKETING • The use of consumer. Includes methods such as Direct Mail and Telemarketing. private mailings) basis. Direct marketing is just what it sounds like . 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 make incentive-based information available to consumers.. Direct marketing involves the business attempting to locate. (Philip Kotler. magazine ads. DISPLAY ADVERTISING • Print advertising that appears in the editorial section of a publication and which usually features creative use of colours .Marketing Management) Sending a promotional message directly to consumers. Types of direct marketing include: distributing flyers. minus personal current taxes equals disposable personal income. Subtracting personal outlays (which includes the major category of personal (or. etc. contact. infomercials). In national accounts definitions.e. door-todoor solicitations.
Why does a business give the job of selling its products to intermediaries? After all. Intermediaries are specialists in selling. Large display ads attract reader’s attention. as does use of colour.and illustrations to maximise communication effectiveness. employment. Display ads vary in their design. Price and Promotion. The answer lies in efficiency of distribution costs.e. The Nature of Distribution Channels Most businesses use third parties or intermediaries to bring their products to market. experience and scale of operation which means that greater sales can be achieved than if the producing business tried run a sales operation itself. using intermediaries means giving up some control over how products are sold and who they are sold to. real estate. business opportunities etc. DISTRIBUTION CHANNEL • Distribution (or "Place") is the fourth traditional element of the marketing mix. Functions of a Distribution Channel . The other three are Product. which are print ads categorized under separate headings i. They have the contacts. Display advertising contracts classified advertising. 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".
Organisations that form any particular distribution channel perform many key functions: All of the above functions need to be undertaken in any market.who performs them and how many levels there need to be in the distribution channel in order to make it cost effective.g. 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". including grading.Information Gathering and distributing market research and intelligence . The figure below shows some examples of channel levels for consumer marketing channels: .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. 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. The question is . holding stock) The main function of a distribution channel is to provide a link between production and consumption.
since it has no intermediary levels.• • • • In the figure above. Canon etc. Dixons and Currys which then sell the goods to the final consumers. powerful retailers who have an incentive to cut out the wholesaler. sell their goods directly to large retailers such as Comet.e. Channel 3 contains two intermediary levels . Channel 2 contains one intermediary. Panasonic. In this case the manufacturer sells directly to customers. An example of a direct marketing channel would be a factory outlet store. . A good example of this channel arrangement in the UK is the distribution of drugs. Channel 1 is called a "direct-marketing" channel. For small retailers with limited order quantities. 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.the travel agent. not dominated by a small number of large. This arrangement tends to work best where the retail channel is fragmented . In consumer markets. the use of wholesalers makes economic sense. The remaining channels are "indirect-marketing channels". Many holiday companies also market direct to consumers.a wholesaler and a retailer. this is typically a retailer.i. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony. bypassing a traditional retail intermediary .
for example in the case of motor cars. via mail order or perhaps over the Internet? Another important factor is buyer needs for product information. Intermediaries typically charge a "mark-up" or "commission" for participating in the channel. They may decide not to support a particular product if it requires too much investment (e. installation and servicing. the only option may be to use agents and/or other distributors. training. Retailers in particular invest heavily in properties. 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 . locally. Another important factor is intermediary cost. This might be deemed unacceptably high for the ultimate producer business.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". warehousing).g. train and equip a sales team. Similarly. The willingness of channel intermediaries to market product is also a factor. how do buyer's want to purchase the product? Do they prefer to buy from retailers. Producers may also feel that they do not possess the customerbased skills to distribute their products. If so. since the retailer sets the price and any relevant discounts or promotional offers. shop fitting etc. to whom and at what price a product is sold. If a manufacturer sells via a retailer. they effective lose control over the final consumer price. 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. display equipment. Another factor is the extent to which producers want to maintain control over how. there is no guarantee for a producer that their product/(s) are actually • . Many channel intermediaries focus heavily on the customer interface as a way of creating competitive advantage and cementing the relationship with their supplying producers.
g. bread) require relatively short distribution channels ideally suited to using intermediaries such as retailers. Sometimes companies try and create brand among consumers even before positioning the brand clearly in the market. many of the dot com • .g. Distribution Intensity: There are three broad options . Exclusive distribution is an extreme form of selective distribution in which only one wholesaler.which claims to clean better than all the leading brands. complex medical equipment sold to hospitals).• • been stocked by the retailer. Weight loss pills etc.they have a preference for a particular brand or price and will search out the outlets that supply. if one brand is not available. By contrast perishable products (such as frozen food. selective and exclusive distribution: Intensive distribution aims to provide saturation coverage of the market by using all available outlets. Ashvini hair oil . Direct distribution gives a producer more control over these issues. Intensive distribution is usually required where customers have a range of acceptable brands to choose from.in other words . total sales are directly linked to the number of outlets used (e. retailer or distributor is used in a specific geographical area. Product factors: Large complex products are often supplied direct to customers (e. Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products. beer). This is called as doubtful positioning. a mutual fund offers 100% returns on investment. In other words.intensive. For many products.g. Selective distribution works best when consumers are prepared to "shop around" . For instance. For example. training) on them.which promises to stop hair loss. DOUBTFUL POSITIONING • Claiming a benefit that customers will doubt that the brand can actually deliver. a customer will simply choose another. Another example will be the claims for various products in QVC channel: Oxyrich . An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets and focus effort (e. cigarettes. meat.
due to the low cost associated with sending multiple messages over time." a pre-written set of messages to customers or prospects over time. Social Media: The principles of Drip Marketing have been applied in many social media marketing tools to schedule a series of updates. This technology relies on digital printing. 2) Reminder of your membership of a website to be over soon. Drip marketing is unique from other database marketing in two ways: (1) the timing of the messages follows a pre-determined course. although other media can also be used. 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. allows users to time messages and disseminate via Twitter. DRIP MARKETING • Drip Marketing is a communication strategy that sends. where low-volume print runs are cost justifiable. or "drips. (2) the messages are dripped in a series applicable to a specific behavior or status of the recipient. Facebook. One popular tool. Examples: 1) Subscribers of newsletter receive them at regular intervals. Direct Mail: Although more costly. • • • . and the variable data can be merged to personalize each drip message. LinkedIn. Email drip marketing is often used in conjunction with a Form (web) in a method called an Auto responder. Drip Marketing Mediums E-mail: The most commonly used form of drip marketing is Email marketing.companies spent heavily on television advertising without themselves being clear of what they were selling. These messages often take the form of E-mail marketing. In this method. and several other social media sites simultaneously. direct mail software has been developed that enables drip marketing techniques using standard postal mail. HootSuite.
It is for companies which introduce their products in a new country. one of the longest running hit comedies on TV was deemed as ‘not very entertaining or original’. DUAL ADAPATION • Adapting the product and the communication according to the local market(Marketing Management-Kotler. Koshi. (Basic Marketing. Koshi. in hindsight. 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. • • Dual adaption is a marketing strategy designed by Philip Kotler. but also adaption for the commercial message. might have been successful if developed(International Marketing-Cateora Graham) ➢ The pilot for “Friends”.DROP ERROR • It occurs when a company dismisses an idea which turns out to be good and successful later. or to discontinue development of a new product which subsequently proves to have been a premature decision.Cannon) . Kelly. Jha) It involves altering both the product and the communications. Jha) A decision to drop a PRODUCT from the line. It means that you adapt the product to the local market. (Marketing Management-Kotler. Kelly.
(Marketing-Lamb. It calls for extensive research and development expenses and tooling costs. It recognizes the socio-cultural differences from country to country.To make this option profitable. (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. (Fundamentals of Marketing. the foreign market or markets need to be of sufficient volume. 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. Hair.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.• 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. or below its cost.Stanton and Futrell) ➢ Unilever fabric softener. DUMPING • The practice of selling a good in a foreign market at a price that is lower than its domestic price.
foreign countries started dumping low cost steel in the US 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.Stanton and Futrell) • A situation in which a company charges either less than its costs or less than its charges in the home market. Finland. hence US had to impose steel tariff on imported steel(Marketing-Grewal and Levy ) ➢ Motorola had to eliminate defects to save costs. EARLY ADOPTERS • The secondary category of buyers to try a product. India. in order to enter or win a market (Marketing Management-Kotler. they tend to buy after they see that a product will work. Jha) . Kelly. and Ukraine. Indonesia.• The practice of charging either less than its costs or less than its charges at home in order to enter or win a market. Jha) ➢ In 2002. when foreign competitors were dumping pagers in the Japanese market ➢ Canadian steelmaker Stelco successfully fought dumping of steel products in Brazil. Kelly. Koshi. Thailand.( Marketing ManagementKotler.
art.Fredell. Hair. who adopt to new social systems before others do(Consumer Behaviour-Blackwell. McDaniel) Opinion leaders who carefully search for new technologies that might give them a dramatic competitive advantage. They enjoy novelty and are often regarded as the opinion leaders for particular product categories.Grant) Opinion leaders and role models for others . or technology. with good social skills and respect within larger social systems. and other fields. Blotnicky. this person would be referred to as a trendsetter(Marketing-Grewal and Levy ) ➢ Porsche. They are less price sensitive and willing to adopt the product if given personalized solutions and good service support (Marketing Management-Kotler. fashion. ➢ Twitter has been embraced by an older demographic.Engel) • • An early adopter or lighthouse customer is an early customer of a given company. Twitter’s success has shattered a widely held belief that young people lead the way to popularizing innovations ECONOMIES OF SCALE . product.(Marketing-Pride. in politics. Jha) • • People who chose new products and are viewed as “the people to check with”. Koshi. wait and purchase the product after careful review. Kelly. (Marketing-Lamb. a successful brand for sports car enthusiasts saw a decline in sports car sales after it entered the SUV mass market. as the early adopters moved onto their new products.• Category of buyers that don’t like to take much risk.
Why are economies of scale important? Firstly. Economies of scale refers to the notion of increasing efficiencies of the production of goods as the number of goods being produced increases. (Basic MarketingCannon) Cost advantages associated with large-scale production. For example.000 cabinets at £200 each. a business could choose to maintain its current price for its product and accept higher profit margins.000. They don’t have huge overhead.000 cabinets at £250 each might expand and be able to produce 2. The total production cost will have risen to £400. • 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. airplanes.000 from £250. because a large business can pass on lower costs to customers through lower prices and its share of a market. then reselling it. or branding. This poses a threat to smaller businesses that can be “undercut” by the competition Secondly. Economies of scale are the main advantage of increasing the scale of production and becoming ‘big’. getting a lot of business and buying FedEx services for a very good rate. but the cost per unit has fallen from £250 to £200. Assuming the business sells the cabinets for £350 each.• Economies of scale arise when the cost per unit falls as output increases. the profit margin per cabinet rises from £100 to £150. They simply Joint Venture with FedEx and use • • • • . a furnituremaker which could produce 1. 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 are piggybacking on FedEx by being an intermediary.
or social and economic trends. ENVIRONMENTAL THREAT • A challenge posed by an unfavorable trend or development that would lead to lower sales or profit(Marketing Management-Kotler.Cannon) • An unfavorable condition in organization’s environment which creates a risk or causes damage to the organization . the development of new technology. the merger of two competitors. As a dominant player in retailing. An environmental threat might be the entrance of a new competitor. that has the potential to negatively impact demand for the marketer's product or service. 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.Stanton and Futrell) • • Challenges posed by an unfortunate trend -lead to erosion of company’s position(Basic Marketing. For example. Koshi. its size allows Wal-Mart to do its own purchasing more efficiently since it has roughly 5.economies of scale. The marketer must be positioned through competitive intelligence and other market trend research to respond quickly to environmental threats. Kelly. the company's size provides it with enormous efficiencies that it uses to keep costs low.000 large stores worldwide. Jha) Any factor in the market. legislative changes. the introduction of a new brand. external to the marketing organization. And everybody wins: FedEx. This gives the company tremendous bargaining power with its suppliers. (Fundamentals of Marketing.
events and relationships in the external environment that may affect the future of the organisation or the implementation of the marketing plan(Marketing-Lamb. institutional. political. 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) • . Koshi. social. technological and competitive forces that can affect markets.Net faces the following threatsRival companies such as HP. Jha) The practice of keeping track of external changes-economic. (Marketing Management-Kotler. (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 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. ➢ Microsoft. (Marketing-Churchill and Peter) Collection and interpretation of information about forces. Kelly.➢ the tobacco industry has faced numerous environmental threats due to increased social. and legislative pressure against smoking. including demand for goods and services. legal. Hair. Oracle and Sun are developing similar products The challenge of getting the customers and software developers to focus on the . medical.
Fredell. trends. creating new models and selling off pieces of company’s holdings. a tax preparation service. after analysing the economic conditions in Europe. and strategic uncertainties (Marketing Management-Panda) Process of collecting information about forces in the marketing environment (Marketing-Pride. mail-order house “Lands End” advertised an attaché case at the same price tag that it carried in 1985 ➢ H&R Block. 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.Grant) • ➢ European car-maker FIAT . came up with the strategies of streamlining management. the process wherein the consumer evaluates through the various possible options and choices based on a set of important attributes or features. Blotnicky.Engel) • . (Marketing-Grewal and Levy) Process of comparing different products and brands based on standards and specifications(Consumer BehaviourBlackwell.• The process of monitoring external environment to influence marketing strategy by identifying potential opportunities and threats. ➢ During recession of the early 1990’s.
So while AT&T may have the hottest phone. the consumer compares the brands and products that are in their evoked set. That is the question Verizon wants consumers to ask themselves when they are evaluating brand alternatives. EVENT CREATION . The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. and on the specific buying situation.Cannon) • At this stage in consumer buying process. Companies respond to this buy researching how various consumers evaluate brand alternatives. (Basic Marketing. Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. 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. This is because smartphones require a fast internet connection to be of much use.• The third step of the "Buyer Decision Process" is the "Evaluation of Alternatives. ➢ Verizon has been at a big disadvantage in the smart phone market because of AT&T exclusive right to distribute the iphone." During this stage of the process. it may run extremely slow in many places where a consumer would want to use it. a consumer arrives at a final set of brand choices and then must evaluates them based on their own individual needs.
also called value pricing. EDLP saves retail stores the effort and expense needed to mark down prices in the store during sale • • .• It the skill of publicising fund-raising drives for non-profit organisations. or comparison shopping. Kelly. waiting for discount promotions. Alistair Campbell. The campaign helped P&G to achieve a strong double bottom-line result by strengthening pampers equity and sales while significantly reducing child mortality. Jha) It is a pricing strategy that promises consumers the lowest available price without coupon clipping. EDLP saves retailers the time and expense of periodic price markdowns. ➢ 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. EVERYDAY LOW PRICING(EDLP) • It takes place at the retail level. Jha) ➢ NDTV Greenathon was to spread the message of environmental concern ➢ The likes of Angus Deaton. Koshi. Koshi. DJ Spooney and Ben Shepherd all help raise money for the Cystic Fibrosis Trust. These constant prices eliminate week-to-week price uncertainty(Marketing Management-Kotler. saves manufacturers the cost of distributing and processing coupons. A retailer holding this policy charges a constant low price with little or no price promotions and special sales. and is believed to generate shopper loyalty. Kelly.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. (Fundamentals of Marketing. (Marketing Management-Kotler.
while discouraging cherry pickers who seek promotions. 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).( Rajiv Lal. when P&G moved many of its brands to an everyday-low-pricing strategy (EDLP). Ram Rao. and to market these events.Stanton and Futrell) .Stanford University. 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.49 next.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. 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.• • events. P&G eliminated trade promotions for Dawn dishwashing liquid and then set the brand's price to a standard average of $1. Hair.32. 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. Conventional wisdom attributes this success either to lower costs or to EDLP better serving time constrained consumers. For example.
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)
Jha) ➢ Sony’s family brands include music systems. . the Black and Decker brand was put on those appliances. Koshi. The individual brands benefit from the overall brand awareness associated with the family brand. ➢ All products sold through The Gap stores bear only The Gap brand name.• When all products are sold under one corporate name. etc ➢ Gillette Company uses the family brand Gillette Series for a line of men’s shaving products. FEATURE .Holiday Inn Select. TVs. DVD players. deodorants and aftershaves. ➢ When Black and Decker purchased General Electrics’ line of small appliances. Holiday Inn Hotels. 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. ➢ General Electric Company (GE) brands its appliances prominently with the GE brand name. etc ➢ Holiday Inn portfolio is as. (Marketing Management-Kotler. Kelly.
a sweeter variation of the old drink ➢ Bajaj introduced several models of Pulsar with improved looks. etc . safety or convenience(Marketing Management-Kotler. to help prevent overly vigorous brushing from damaging gums ➢ Gillette’s Oral-B toothbrushes include a patch of clue bristles . and accessories that expand the products performance. Kelly. (Marketing ManagementKotler. power. versatility. Jha) • ➢ Tiny spring in the handle of a GSK Flex Toothbrush. (Marketing –Churchill and Peter) Specifications about a product that enhance its value and supplementtheir basic function. Koshi. Kelly.• A fact or technical specification about a product. materials. nuts. such as size . Jha) ➢ Coca-cola replaced its old formula with the New Coke. Koshi. engine. Marketers select product features by determining what their customers want their products to offer. whose fading indicates the time to change the brush ➢ Extra chocolates. 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. FEATURE IMPROVEMENT • Adding new features. additives. weight.
or modifying an existing product in order to capture a new market. (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. 2ltr FORWARD INVENTION • Creating a new product to meet a need in another country(Marketing Management-Kotler. products. in which the company (the franchiser) grants a franchisee the right to market its product.5ltr.➢ Pepsi and Coke offer drinks in different sizes-5ooml. and other elements associated with the franchisers business. using its name. advertising. methods of operation. Koshi. 1. Jha) • The process of creating a new a product. in return for a financial commitment and an agreement to conduct business in . 1 ltr. logo. Kelly.
Pizza Hut. Kelly.etc are amongst the worlds top 10 global franchisers. FIXED PERSONALITY ASSOCIATION A qualitative technique used by a moderator where images of people. and the franchisee provides . now defunct) in late 2002 Soon after its launch. Mc Donalds are amongst the well known franchisers with international visibility.(Marketing Management-Kotler. (International Marketing-Cateora Graham) ➢ Subway. where through affinity programs and exclusive marketing rights. many companies cannot advertise. and management services. Ebay started hosting auctions for forehead advertising and other tattoo advertising. places. FORMAL SEARCH . Koshi. ➢ Holiday Inn Marriott. and the media frenzy that came along with it. capital and personal involvement in management. systems. The same images are shown in several sessions to different respondents so that results can be applied as norms. The UPS Store. KFC Corp.market knowledge. or things are shown to participants and they are then asked to interpret the pictures around a given topic. Headvertise hired college students to run advertising campaigns for its clients on college campuses.accordance with the franchisers standard of operations.. Jha) • It is a rapidly growing form of licensing in which the franchisor provides a standard package of products. FOREHEAD ADVERTISING Forehead Advertising is an advertising concept that uses people's foreheads as advertising spaces. The concept was created by Justin Kapust through his organization. called Headvertise (Kapust-Allen Enterprises.
Parents play the role of gatekeeper in the selection of TV channels for children. This person has an overall impact on the buying decision by specifying some factors and conditions under which a particular product can be bought . it dominates every other offering in the category. Moreover. Normally. If an offering provides both the lowest price and best performance. 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 budget maybe fixed by the gatekeeper. have little or no promotion support. very large firms can follow full market coverage strategy.For example.This is a purposeful search after information in some systematic way. 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. These items usually receive secondary shelf locations.000 for a bike to be bought by the son. 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. 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. The information will be required to address a specific issue. GATEKEEPER A person who allows certain information to flow & restricts flow of some set of information. However. the father to be say up to a max of 50. 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. are .
the region or the country. In Mexico more chilli sauce is added and so on. navigation. As GIS can be thought of as a system. sell burgers aimed at local markets. manages. burgers are made from lamb in India rather then beef because of religious issues. geography. jurisdiction. analyzes. In the simplest terms. photogrammetry. such as nations. advertising. Marketers will also study the population density or regional climate as factors of geographic segmentation. cartography. aerial video. remote sensing. regions. and sales effort to geographic differences in needs and wants. public utility management. are stocked in limited assortments. GIS is the merging of cartography. and localized search engines. natural resource management. stores. Marketers will tailor marketing programs to fit the needs of individual geographic areas. for example. it digitally creates and "manipulates" spatial areas that may be jurisdictional. land surveying. GEOGRAPHIC INFORMATION SYSTEMS Geographic information systems (GIS) or geospatial information systems is a set of tools that captures. a GIS developed for an application. and database technology. GEOGRAPHIC SEGMENTATION Geographical segmentation divides markets into different geographical areas. Asia and Africa. and presents data that are linked to location(s). cities. enterprise. localizing the products. and have plain packages. North America. statistical analysis. emergency management. 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.sometimes of less overall quality than other brands. urban planning. Marketers use geographic segmentation because consumers in different areas may display certain characteristics and behaviours in that particular region. Mcdonalds globally. Hence. for example. purpose or application oriented for which a specific GIS is developed. or neighborhoods. If you are an organisation working on a global scale you may divide by global regions such as Europe. states. An area can be divided by the town. Market segmentation strategy whereby the intended audience for a given product is divided according to geographic units. precision agriculture. GIS may be used in archaeology. or purpose may . South America. counties.
applications and systems. All goods shipped from a given basis point are charged the same amount. It can be either the buyer or seller that arranges for the transportation.Certain cities are designated as basing points. analyze spatial information. There are several types of geographic pricing: FOB origin . Uniform delivery pricing . transportation infrastructure.not be necessarily interoperable or compatible with a GIS that has been developed for some other application. and shipping cost.The same price is charged to all. or purpose. in marketing. GIS can be studied in degree and certificate programs at many universities. stores. GLOBAL FOCUS GROUPS . Instead of using circles. the term describes any information system that integrates. irregularly shaped price boundaries can be drawn that reflect geography. GEOGRAPHICAL PRICING Geographical pricing. jurisdiction. What goes beyond a GIS is a spatial data infrastructure (SDI). enterprise. and present the results of all these operations. shares. Therefore. It is intended to reflect the costs of shipping to different locations. Ownership of the goods is transferred to the buyer as soon as it leaves the point of origin. This amounts to a price discount.The seller absorbs all or part of the cost of transportation. 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. is the practice of modifying a basic list price based on the geographical location of the buyer. a concept that has no such restrictive boundaries. and displays geographic information for informing decision making. edit data. population density. analyzes. maps. Freight-absorption pricing . in a general sense.(also called postage stamp pricing) .The shipping cost from the factory or warehouse is paid by the purchaser. Zone pricing .Prices increase as shipping distances increase. Basing point pricing . edits. and is used as a promotional tactic. Geographic information science is the science underlying the geographic concepts. GIS applications are tools that allow users to create interactive queries (user-created searches).
at the global marketing level. shape. Coca-Cola uses two formulas (one with sugar. tariffs. Ultimately. a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan. Unless a company holds the same position against its competition in all markets (market leader. one with corn syrup) for all markets. placement. etc. Product A global company is one that can create a single product and only have to tweak elements for different markets. Additionally. For example. 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. low cost.). or form. Whether this . and much more. price. Price Price will always vary from market to market. Here are three reasons for the shift from domestic to global marketing as given by the authors of the textbook. Global Marketing Management—3rd Edition by Masaaki Kotabe and Kristiaan Helsen. These are focus groups that instead of meeting face-to-face. and promotion are all affected as a company moves through the five evolutionary phases to become a global company. The “Four P’s” of marketing: product. cost of ingredients. carry out the group via a video conferencing link. similarities and opportunities in order to meet global objectives. The product packaging in every country incorporates the contour bottle design and the dynamic ribbon in some way. the product’s position in relation to the competition influences the ultimate profit margin. Price is affected by many variables: cost of product development (produced locally or imported). Also called video focus groups.Focus groups conducted using satellite video technology in which participants are located in different places. cost of delivery (transportation. etc. 2004. However.” Oxford University Press’ Glossary of Marketing Terms. normally in different countries.) it is impossible to launch identical marketing plans worldwide. GLOBAL MARKETING The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences.
In India. Conversely. In the United States. If the goal of a global company is to send the same message worldwide. low-cost choice. For example. and costeffective way is the challenge. At this stage of a company’s development. minimize redundancies in personnel and work. not verbal. 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. a high-end product would not want to be distributed via a “dollar store” in the United States. 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. a product promoted as the low-cost option in France would find limited success in a pricey boutique. The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized. Placement decisions must also consider the product’s position in the market place. beverages are sold by the pallet via warehouse stores. or something in-between helps determine the price point. maximize speed of implementation. 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. not all cultures use vending machines.product is considered the high-end. Using Coca-Cola as an example again. and to speak with one voice. this is not an option. Effective global advertising techniques do exist. The global corporation seeks to reduce costs. engaging. integrated marketing is the goal. promotion (specifically advertising) is generally the largest line item in a global company’s marketing budget. development and creation. the economical. elements of the ad. GREY MARKET . GOODNESS OF THE DEAL an evaluation of whether or not the customer paid a fair price for a product. expensive choice. then delivering that message in a relevant. Promotion After product research. The key is testing advertising ideas using a marketing research system proven to provide results that can be compared across countries. Market research measures such as Flow of Attention.
Yet defining green marketing is not a simple task where several meanings intersect and contradict each other. packaging changes. green marketing is the marketing of products that are presumed to be environmentally safe. including product modification. as well as modifying advertising. guerrilla marketing . changes to the production process. Typically. are unofficial. environmental and retail definitions attached to this term. In the USA. Misleading or overstated claims can lead to regulatory or civil challenges. The legal implications of marketing claims call for caution. GREEN MARKETING According to the American Marketing Association. and probably not intended or explicitly authorized by oil producers. unregulated (though often technically legal) trading in commodity futures. unauthorized. This can be considered a third type of "grey market" since it is legal. Sometimes the term dark market is used to describe secretive." A black market is the trade of goods and services that are illegal in themselves and/or distributed through illegal channels. The term gray economy. or unintended by the original manufacturer. Thus green marketing incorporates a broad range of activities. refers to workers being paid under the table. certain drugs or unregistered handguns. notably crude oil in 2008. while legal. such as the selling of stolen goods. Other similar terms used are Environmental Marketing and Ecological Marketing.A grey market or gray market also known as parallel market is the trade of a commodity through distribution channels which. without paying income taxes or contributing to such public services as Social Security and Medicare. yet unregulated. however. an example of this will be the existence of varying social. energy and imagination rather than a big marketing budget. 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. 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. It is sometimes referred to as the underground economy or "hidden economy.
an educated guess. PR stunts. Examples of this method include using a "rule of thumb". HETEROGENEOUS MARKET A market characterized by buyers with different needs and wants. and consequently turn viral.campaigns are unexpected and unconventional. The term was coined and defined by Jay Conrad Levinson in his book Guerrilla Marketing. Guerrilla marketing involves unusual approaches such as intercept encounters in public places. potentially interactive. A company utilizes a concentrated targeting strategy for this group. any unconventional marketing intended to get maximum results from minimal resources. The company then develops a different marketing mix to satisfy each of these groups or segments. learning. Heuristic methods are used to identify an optimal solution as rapidly as possible. an intuitive judgment. information to control problem solving in human beings and machines . engaging and thoughtprovoking concept to generate buzz. The objective of guerrilla marketing is to create a unique. heuristics are strategies using readily accessible. or common sense. and consumers are targeted in unexpected places. HEURISTICS Heuristic or heuristics refers to experience-based techniques for problem solving. In more precise terms. 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. Taking India as a market. Eg. street giveaways of products. The term has since entered the popular vocabulary and marketing textbooks. and discovery. This market requires the company to divided the market into groups by a process called market segmentation.
A company with consistently superior products tends to consistently outperform its competitors in the marketplace. and political views. HOMOGENEOUS PREFERENCES: This refers to pattern of consumer preferences in terms of various attributes of a product or service. Achieving clear-cut product superiority in a category is the surest way to build brand share. One of the preferences is known. The market shows no natural segments. an in-store demonstration (or "demo" for short) is a promotion where samples of a product are distributed to customers within a store. The goal of an in-store demonstration is to introduce customers to the product in hopes of getting them to purchase that item. . religious preferences. perhaps. In economics. the single-most-important type of consumer research any company ever conducts. such that an equation is said to be homogeneous if the independent variables are increased by a constant value. then the dependent variable is increased by a function of that value. Another is for mathematical equations. and boost profitability.HOME USAGE TEST Product testing is. For example. One is for production. The company uses only one marketing mix to satisfy this group of buyers. HOMOGENOUS MARKET In general. 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. engender customer loyalty. HORIZONTAL MARKETING SYSTEM Two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity. and that the manufacturers are attempting to advertise. this is a market characterized by buyers with similar needs and wants. a neighborhood might have a homogeneous culture. such that two or more goods are homogeneous if they are physically identical or at least viewed as identical by buyers. 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. In a marketing context. meaning everyone has similar income. it is used in a couple of different ways. This group is targeted with an undifferentiated targeting strategy. the notion that everything has identical characteristics. IN-STORE DEMONSTRATION In marketing.
a child may influence the choice of breakfast cereal. Influencers have varying levels of influence depending on the product and their relative status in the decision-making unit. A small child will have no influence on an automobile purchase. elevators. with trade associations. large computer systems. 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. For example. Eg) generators. A teenager may have some influence and a spouse usually has a lot of influence on an automobile purchase decision. importers/exporters etc . A person who explicitly or implicitly has some influence on the final buying decision of others. international aid agencies. 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. 2) Clothes can be tried before purchasing in most of the showrooms. For example. but the purchase decision is made by the parent.Examples: 1) The electronic and electrical appliances companies do in-store demonstration. INDUSTRIAL PRODUCT Industrial product are bought by individuals or organizations for further processing or for use in conducting a business. 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. drill presses. 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.
Information systems are distinct from information technology in that an information system is typically seen as having an ict component. from online services such as reuters or maid. INFORMATION SYSTEM (IS) An information system (IS) is any combination of information technology and people's activities using that technology to support operations. In this sense. However. the term information system is frequently used to refer to the interaction between people. Some make a clear distinction between information systems. Examples: Transaction processing systems Office systems Decision support systems Knowledge management .and computer systems ict.in a very broad sense. algorithmic processes. and decision-making. Before that. Information systems are also different from business processes. stored and made accessible . and business processes. management. Information systems help to control the performance of business processes. and increasingly from the internet is easy to believe that users have all the information they need on tap. but also to the way in which people interact with this technology in support of business processes. the term is used to refer not only to the information and communication technology (ICT) an organization uses. data and technology.INFORMATION MANAGEMENT PROCESSES with many professionals having external information delivered to their desktops. this information must be classified. however.applying good practice principles of information resources management (irm). this is raw information and will need transforming into intelligence.
and financial terms for each major account. markets. logistics. in that a manufacturer will customize the offer. INTEGRATED MARKETING COMMUNICATIONS A concept of marketing communications planning that recognizes the added value of a comprehensive plan. INTELLIGENCE DEVELOPMENT PROCESSES a good intelligence system is more than information. Much business to-business marketing today is customized. INDIVIDUAL MARKETING The ultimate level of segmentation leads to “segments of one. Example. It is a recurring cycle of linking the needs of decision makers to the processes of turning the information into actionable intelligence.INITIATOR Initiator a person who first suggests or thinks of the idea of buying the particular product.” “customized marketing. prisons and other institutions that must provide goods and services to people in their care. and physical distribution. material flows system. INTEGRATED LOGISTICS SYSTEM Materials management. Such technologies such as .” or “one-to-one marketing. abetted by information technology. a child plays role of initiator in the purchase of a chocolate. consumers were served as individuals: The tailor made the suit and the cobbler designed shoes for the individual. nursing homes. The person who feels the need for the purchase of a product. INSTITUTIONAL MARKET Schools.” For centuries. communications.
They need toll-free phone numbers and e-mail addresses to enable buyers to reach them with questions. you can customize. Mattel’s Barbie. marketers still need to inﬂuence the process in a variety of ways. If a customer likes acid jazz. they must involve customers more in the product-speciﬁcation process. eye color. Then the ﬁrm equipped 650 showrooms with an interactive computer catalog linked directly to the factory. and complaints. hairdo and hair color. Joseph Pine. intranets and extranets. clothes. and they need a Web site with complete. the Internet is bringing mass customization to an astonishing array of products.computers.” Mass customization is the ability to prepare individually designed products and communications on a mass basis to meet each customer’s requirements. listen to a brief sample of each. says. also called “mass customization. and fax communication are permitting companies to return to customized marketing. IDEA GENERATION . service guarantees. Technology like this is transforming marketing from “a broadcast medium to a dialog medium. and generate a price quote. “Anything you can digitize. unwieldy catalogs and a bewildering array of choices for homeowners and contractors. a hip. and then click to order a CD with his chosen tunes. robotic production. databases. Andersen Windows.com site invites girls to log on and design their own Barbie Pal doll by specifying skin tone. a $1 billion Minnesota-based manufacturer of residential windows. suggestions. see the various titles. Andersen has also developed a “batch of one” manufacturing process in which everything is made to order. check the design for structural soundness. lets customers cut their own CDs online. he can click on the category. CDuctive. thus reducing its ﬁnished parts inventory (a major cost to the company). updated information about the company’s products. Using this catalog.” allowing the customer to actively participate in the design of the product and offer. Although individual customers are taking more initiative in designing and buying products. For example. New York-based company.” In fact. salespeople help customers customize each window. and name. email. and locations. turned to mass customization after additions to its product line led to fat. accessories. author of Mass Customization.
In the context of Influencer Marketing. Influence is often equated to advocacy. industry analysts. and more about loose interactions between various parties in a community. For instance. or they may be third parties.) or may be so-called value-added influencers (such as journalists. professional advisers. in an attempt to grab a foothold in steel wool soap pads. (also Influence Marketing) is a form of marketing that has emerged from a variety of recent practices and studies. Hippel has shown that the highest percentage of ideas for new industrial products originates with customers. INFLUENCER MARKETING AS A MARKETING DISCIPLINE Influencer Marketing. as exemplified in Robert Cialdini’s book Influence: Science and Practice. etc. influence is less about argument and coercion to a particular point of view. manufacturers. in which focus is placed on specific key individuals (or types of individual) rather than the target market as a whole. 3M organized consumer focus groups and asked about problems with these products. and so on). comprises four main activities: Identifying influencers. as increasingly practiced in a commercial context. Many of the best ideas come from asking customers to describe their problems with current products. It identifies the individuals that have influence over potential buyers. to increase awareness of the firm within the influencer community Marketing through influencers. using influencers to increase market awareness of the firm amongst target markets . but may also be negative. These third parties exist either in the supply chain (retailers. Influencers may be potential buyers themselves. and is thus related to concepts of promoters and detractors. and ranking them in order of importance. Most discussion on the generic topic of social influence centres on compliance and persuasion in a social environment.The marketing concept holds that customer needs and wants are the logical place to start the search for new product ideas. Marketing to influencers. INFLUENCE MARKETING Influencer marketing. academics. and orients marketing activities around these influencers.
banks. have active minds. are well-connected. turning influencers into advocates of the firm. Thus WOM is a core part of the mechanics of Influencer Marketing. Influencer Marketing is not synonymous with word of mouth marketing (WOM). Keller and Berry note that influencers are activists. The Conn Organ Company. and are trendsetters. sells organs through merchants such as department and discount stores. drawing more attention than it ever enjoyed in small music stores.” 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. Peck defines influencers as "a range of third parties who exercise influence over the organization and its potential customers". Similarly. though this set of attributes is aligned specifically to consumer markets. which acts as a facilitator. Ohiobased Provident Bank reaches new mortgage customers by selling through the lendingtree. The most successful companies search for innovative marketing channels. Brown and Hayes define an influencer as "a third party who significantly shapes the customer's purchasing decision. have impact. Firms such as automakers use this approach when they want to maintain control over the service level and service outputs offered by the resellers. Agents—brokers. for example. manufacturers’ representatives and sales agents—search for customers and may negotiate on the producer’s behalf but do not take title to the goods. INTERMEDIARIES Intermediaries known as merchants—such as wholesalers and retailers —buy.com Web site. and advertising agencies—assist in the distribution process but neither take title to goods nor negotiate purchases or sales. Influencer Marketing is enhanced by a continual evaluation activity that sits alongside the four main activities. but influence may be transmitted in this manner. Similarly. There are substantial differences in the definition of what an influencer is. Facilitators—transportation companies. Number of Intermediaries In deciding how many intermediaries to use. successful companies use one of three strategies: ➤ Exclusive distribution means severely limiting the number of intermediaries. and resell the merchandise. Often it involves exclusive dealing . but may never be accountable for it.Marketing with influencers. take title to. independent warehouses.
in which the resellers agree not to carry competing brands. advertising. marketing must be embraced by the other departments. (5) Nike town stores. (6) factory outlet stores. Nike. which feature the complete line. To foster teamwork among all departments. the result is integrated marketing. Xerox. and (7) the popular Fogdog Sports site (www. ➤ Intensive distribution consists of the manufacturer placing the goods or services in as many outlets as possible. All of these functions must be coordinated from the customer’s point of view. In this way. which focus on discounted styles. marketing research—must work together. Xerox accountants know that customer attitudes are affected by Xerox’s billing accuracy. External marketing is . products for which the consumer requires a great deal of location convenience. This strategy is generally used for items such as tobacco products. the producer avoids dissipating its efforts over too many outlets. goes so far as to include in every job description an explanation of how each job affects the customer. INTEGRATED MARKETING When all of the company’s departments work together to serve the customers’ interests.arrangements. for example. 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. sells its athletic shoes and apparel through seven types of outlets: (1) specialized sports stores. which carry only the newest styles. which stock mostly seconds and closeouts. customer service. and gum. which carry a broad range of styles. product management. soap. ➤ 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. (3) department stores. for example. and it gains adequate market coverage with more control and less cost than intensive distribution. its exclusive Web retailer. Second.com). (2) general sporting goods stores. the company must carry out internal marketing as well as external marketing. which carry a special line of athletic shoes. (4) mass-merchandise stores. Xerox factory managers know that visits to the factory can help sell a potential customer if the factory is clean and efficient. the various marketing functions—sales force. First.fogdog. Integrated marketing takes place on two levels. snack foods.
but to embed them in such a way that they both change and reinforce employee behaviour". serve. and front-line people and customers at the bottom—obsolete. under them are the middle managers. According to Burkitt and Zealley. Next in importance are the front-line people who meet. training. INTERNAL MARKETING Internal marketing (IM) is a process that occurs within a company or organization whereby the functional process aligns. 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. and at the base is top management. and employer brand management. motivates and empowers employees at all management levels to deliver a satisfying customer experience. 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. Ensuring equitable recognition and reward: business must exercise employee recognition with reward to what employee has achieved. "the challenge for internal marketing is not only to get the right messages across. management in the middle. putting customers at the top. internal marketing must precede external marketing. and motivating able employees who want to serve customers well. Over recent years internal marketing has increasingly been integrated with employer branding.marketing directed at people outside the company. who support the front-line people so they can serve the customers. allowing initiatives and accountability and responsibility of their decisions. Internal marketing is the task of hiring. In fact. which strives to build stronger links between the employee brand experience and customer brand experience. 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. . Master marketing companies invert the chart. whose job is to hire and support good middle managers. and satisfy the customers. innovation.
The Janus Effect of Internal Branding Clearly. Creates good coordination and cooperation among departments of the business. Internal Branding is about aligning employee commitment to delivering the brand promise of the organisation. 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. vision and strategy with the employees' professional and social needs.Demonstrating fairness during hard times: fair treatment of employees when faced with hard times and difficult moments like death of the near family members. The Role of Internal Branding Nothing kills a poor product faster than good advertising. a company’s brand promise and its brand character must be linked and compatible. total quality management and re-engineering. Good organization structure that allows learning.’ Janus was the . Empowers employees and gives them accountability and responsibility. Integrates business culture. Encourages employees to offer superb service to clients by appreciating their valuable contribution to the success of the business. There is a phenomenon in organizations that can be termed the ‘Janus Effect. This can be achieved by setting aside emergency funds. Developed by Dr Nikolaus Eberl and Herman Schoonbee as an academic discipline. Retaining clients over time requires not only that they have a positive experience with the brand. Benefits of Internal Marketing: Encourages the internal market (employees) to perform better. INTERNAL BRANDING Internal Branding is a concept that merges the disciplines of marketing and human resources. structure. human resources management. Helps non-marketing staff to learn and be able to perform their tasks in a marketing-like manner. Creates common understanding of the business organisation.
By analyzing this information. Strengthening or weakening the brand then depends on the Differentiating Factors. the way customers view the company is significantly enhanced. i. 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. payables. he was seen as a god of the doorway and depicted with two faces. receivables. prices. the Virgin brand has now become so valuable that Branson has recently ventured into space. he announced that Virgin had signed a deal to offer the world's first commercial flights to space under the brand ‘Virgin Galactic’. INTERNAL RECORDS SYSTEM Marketing managers rely on internal reports on orders. As Richard Branson put it at his recent visit to South Africa. If the brand is well-respected and trusted. In fact.” The Virgin Brand is a classic example of brand value exceeding the asset base by far. awareness and consideration. i. In the case of the world’s leading brand. they can spot important opportunities and problems. costs. or diminished. Measuring Brand Value If your brand is listed on the stock exchange.Roman god of initiation and closure. In September 2004. inventory levels. one facing out and one facing in. and so on. . brand preference and brand loyalty.e. Coca-Cola. the answer is easy – your market capitalisation less assets. people will give it a try. the brand value exceeds the asset value by nearly 150%. Thus. Measuring Brand Strength The strength of a brand is built both through communication and the experience with the brand. which are formed from the client’s experience with the brand and influenced by the retention drivers. which are driven by communication and influenced by acquisition drivers such as functionality. As such. sales. by the way employees view the company. Brand strength initially depends on the Hygiene Factors. “the brand is everything.e.
“Your salesperson in St. And when deals are struck. accuracy. Out-of-stock items are back ordered. and e-mail from anywhere in the company. Customers favor those firms that can promise timely delivery. Sales managers can monitor everything in their territories and get current sales forecasts anytime. engineering and configuration notes. Retail giant Wal-Mart tracks the stock levels of its products and its computers send automatic replenishment orders to its vendors.” Sales force automation (SFA) software has come a long way. The sales department prepares invoices and transmits copies to various departments. Recent editions have put even more knowledge at marketers’ fingertips. Earlier versions mainly helped managers track sales and marketing results or acted as glorified datebooks. Here are three companies that are using computer technology to design fast and comprehensive sales reporting systems: ■ Ascom Timeplex. dealers. Today’s companies need to perform these steps quickly and accurately. An increasing number of companies are using electronic data interchange (EDI) or intranets to improve the speed. and customers dispatch orders to the firm. Louis knows what Customer Service in Chicago told their customer in Atlanta this morning. . status reports on previous orders. Sales representatives. often through internal “push” or Web technology. Shipped items are accompanied by shipping and billing documents that are sent to various departments. so they can give prospective customers more information and keep more detailed notes. and efficiency of the order-to-payment cycle. Computerized warehouses fulfill these orders quickly. sales reps can access information about prospects and customers and provide immediate feedback and sales reports. sales reps at this telecommunications equipment company use their laptop computers to dial into the company’s worldwide data network. SALES INFORMATION SYSTEMS Marketing managers need up-to-the-minute reports on current sales. Customers and sales representatives fax or e-mail their orders. Inc. the laptop computers record each order. Armed with laptop computers. An ad for Sales CTRL. Before heading out on a call. a sales force automation software package.THE ORDER-TO-PAYMENT CYCLE The heart of the internal records system is the order-to-payment cycle. The billing department sends out invoices as quickly as possible. They can retrieve the latest price lists. boasts.
What special studies do you periodically request? 5. ■ Montgomery Security In 1996. The timely arrival of orders enables Alliance to cut inventories. It gave Montgomery significant gains in productivity. What magazines and trade reports would you like to see on a regular basis? 8. The company’s marketing information system should represent a cross between what managers think they need.double-check the order for errors. New Jersey. With a common database format. An internal MIS committee can interview a cross-section of marketing managers to discover their information needs. What decisions do you regularly make? 2. What are the four most helpful improvements that could be made in the present marketing information system? LABELLING . Yet all of the departments at Montgomery had different database formats for their records. San Francisco–based Montgomery Security was in a bind. What information would you want that you are not getting now? 6. Alliance has achieved a great advantage over competitors. What information would you want daily? Weekly? Monthly? Yearly? 7. Some useful questions are: 1. and Gathering Information and Measuring Market Demand sales or trading employees to share information about companies whose stock they were considering taking public. what managers really need. What information do you regularly get? 4. and send it electronically to Timeplex headquarters in Woodcliff Lake. research. everyone could share information and keep confidential information secure. improve customer service. ■ Alliance Health Care Formerly called Baxter. and its market share has soared. Alliance supplies hospital purchasing departments with computers so that the hospitals can electronically transmit orders directly to Alliance. The company solved the problem with Sales Enterprise Software from Siebel Systems. What information do you need to make these decisions? 3. this Nations Banks subsidiary had to find a way for more than 400 finance. some even kept files on notepads. What topics would you like to be kept informed of? 9. To remain competitive in the financial sector. What data analysis programs would you want? 10. and obtain better terms from suppliers for higher volumes. and what is economically feasible.
what it contains.Every physical product must carry a label. and how to use it safely. the way canned peaches are grade labelled A. Orange Crush developed a label with new symbols to suggest freshness and with much stronger and deeper colours.” “high beer. when it was made. grade labelling (to rate the quality level). they learn. Some tangible products that incorporate packaging and labels also involve some service component. the label identifies the product or brand—for instance. Legal concerns about labels and packaging stretch back to the early 1900s and continue today. stimuli. with gradual changes in the size and design of the letters. cues. The Food and Drug Administration (FDA) recently took action against the potentially misleading use of such descriptions as “light. where it was made. A drive is a strong internal stimulus that impels action. responses. consumerists are lobbying for additional labelling laws to require open dating (to describe product freshness). Theorists believe that learning is produced through the interplay of drives. thereby pulling in more sales. Labels perform several functions. how it is to be used. the name Sunkist stamped on oranges. First. and C. The label on Ivory soap has been redone 18 times since the 1890s. Therefore. Learning involves changes in an individual’s behaviour that arise from experience. Labels eventually become outmoded and need freshening up. Cues are minor stimuli that determine when. Most human behavior is learned. The label on Orange Crush soft drink was substantially changed when competitors’ labels began to picture fresh fruits.” and “low fat. The label might also grade the product. the label might promote the product through attractive graphics. marketers must be skilful not only in managing product lines and brands. In response. where. LEARNING When people act. B. unit pricing (to state the product cost in standard measurement units). The label might describe the product: who made it. but also in designing and managing services. which may be a simple tag attached to the product or an elaborately designed graphic that is part of the package. and how a person responds.” Meanwhile. and reinforcement. such as delivery or installation. . and percentage labelling (to show the percentage of each important ingredient). Finally.
when you want to buy a printer. Internet purchasing can help forge closer relations between partners and buyers. You have now generalized your response to similar stimuli. such as General Electric. A set of behaviours. using motivating cues. it can potentially erode supplier-buyer loyalty and open the door to possible security disasters. and the senses of self and belonging which these . By 2003. marketers can build up demand for a product by associating it with strong drives. a growing number. The current broader sense of the word dates from 1961.Suppose you buy an IBM computer. Companies are not only posting their own Web pages to sell to business buyers. and just about anything else with a few clicks of the mouse. The move to Internet purchasing has dramatic and far-reaching implications. A countertendency to generalization is discrimination. its Trading Process Network lets companies buy raw materials. In fact. Later. you may assume that because IBM makes good computers. it also makes good printers. in which the person learns to recognize differences in sets of similar stimuli and adjust responses accordingly. 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. which was originally coined by Austrian psychologist Alfred Adler in 1929. Applying learning theory. business-to-business buying on the Internet is projected to reach $1 trillion per year (compared with a projected $108 billion for consumer buying). However. At the same time. are preparing to buy nearly all supplies on-line to shave transaction and personnel costs. If your experience is rewarding. and providing positive reinforcement. LEARNING INTERNET PURCHASING Internet purchasing. your response to computers and IBM will be positively reinforced. and it levels the playing ﬁeld between large and small suppliers. reduce time between order and delivery. most businesses are using extranets to buy MRO supplies. components. they are establishing Intranets for internal communication and extranets to link with regular suppliers and distributors. So far. and consolidate purchasing. LIFESTYLE Lifestyle is a term to describe the way a person lives.
which offers the possibility to create and further individualize the self with different products or services that signal different ways of life. including social relations. attitudes. Not all aspects of a lifestyle are entirely voluntaristic. Therefore marketers take the patterns of belief and action characteristic of lifestyles and direct them toward expenditure and consumption. values or worldview. The behaviours and practices within lifestyles are a mixture of habits. moral standards. entertainment. "green lifestyle" means holding beliefs and engaging in activities that consume fewer resources and produce less harmful waste (i.behaviours represent. economic levels and so on) that define a group. For example. in modernity. or to create aspirations relevant to new products.e. and deriving a sense of self from holding these beliefs and engaging in these activities. tastes. and publishing. A lifestyle typically also reflects an individual's attitudes. conventional ways of doing things. "lifestyles" provide a means by which advertisers and marketers endeavour to target and match consumer aspirations with products. marketing. and reasoned actions. In business. consumption. "lifestyle" is used to describe a category of publications or programs. the cornerstone of lifestyle construction is consumption behaviour. a smaller carbon footprint). 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. a lifestyle is a means of forging a sense of self and to create cultural symbols that resonate with personal identity. The term is defined more broadly when used in politics. In the magazine and television industries. lifestyles are subject to change by the demands of marketing and technological innovation. Therefore. A lifestyle is a characteristic bundle of behaviours that makes sense to both others and oneself in a given time and place. These patterns reflect the demographic factors (the habits. As a construct that directs people to interact with their worlds as consumers. The lines between personal identity and the everyday doings that signal a particular lifestyle become blurred in modern society. and dress. Some commentators argue that. . are collectively used to define a given lifestyle.
LINE FILLING Maruti Suzuki is following the product line strategy of Line Filling. Maruti Suzuki has tremendous brand equity in the Indian market. In the case of Maruti.000 .98.Rs 3. firms adopt this strategy for a.70.Rs 2.000 Maruti Wagon R . Santro.000 . Another reason for Maruti's line filling is to keep out the competitors.Rs 2. According to Prof.Rs 3.22.32.Rs 4.Try to plug holes to keep the competitors away. Example: Maruti 800 . The company is facing lot of competition in the hatchback segment. it is evident that there is a significant overlap among various brands.Rs 4.Rs 2.20.000 .Rs 5.89.Rs 3. If I want to upgrade to a bigger car.Rs 5.000 . I may not go in to a competitor's product.000 .Utilize existing capacity d. more than one reasons prompt it to fill the line.000 Maruti Estilo .000 . Another question is whether this overlap will create cannibalization among these brands. There are customers (like me) who would like to buy a car from Maruti.The question is why Maruti chose to bring out products with similar price ranges.000 Maruti Ritz .Try to become a full-line company e.12. There are several reasons for such a line filling strategy.Rs 4.40.000 From the price ranges.Satisfy Dealers who complain about lost sales because of missing items in the line c.12000 Maruti Alto . Having various offerings at various price points keeps that customers happy and make them stick to the company.06.00. At the lower end Nano may give Alto and 800 a run for its money. Maruti Suzuki recently launched a series of brands in the hatchback segment. i10 and Spark is giving tough competition for mid-range hatchbacks . Philip Kotler.Rs 2.000 Maruti A Star . Hence having a full line catering to all segments of consumers offers tremendous advantage to the company.18.17.10.000 . In such a scenario.Rs 3. Line Filling is a strategy where the company introduces new products within the same (existing) price range. Incremental Profits b. I have a choice or a A star or a Wagon R or a Ritz or a Swift.Rs 3. A look at the price ranges of hatchback brands of Maruti will give you a clear picture of Line Filling.000 Maruti Swift .
In the case of Maruti brands. But in the Indian 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 Ritz was launched.i20 are giving competition at the higher segment of the hatchback market. package sizes. Regarding the profits. may be only Maruti can do it. Maruti is one of the lowest cost producer in the automobile industry. it definitely took away some customers of Swift. The company may notice strong growth opportunities as mass retailers such as Wal-Mart. .Punto. or both ways. colors. Best Buy. This low cost base enable the firm to make a profit irrespective of cannibalization. Hence to keep the market share intact . Line Filling is the strategy adopted by Maruti Suzuki to retain its grip in the Indian market. This is as opposed to brand extension which is a new product in a totally different product category. forms. and others attract a growing number of shoppers who want value-priced goods. There has to be a just-noticable difference between the offerings other wise consumers will get confused . The company can extend its product line down-market stretch. Palio. it is natural that some sort of cannibalization will happen. there is a clear differentiation either interms of design or performance between these brands. 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. 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.Line extension occurs when the company lengthens its product line beyond its current range.and products like Fabia. One of the critical factor that a firm should consider while line filling is the Differentiation. added ingredients. When there are brands which has similar price points. But Maruti can be happy that the customer has bought its product rather than that of its competitor. Maruti is keeping a full line of brands covering various price points. up-market stretch.
Many markets have spawned surprising upscale segments: Starbucks in coffee. This . Up-Market Stretch Companies may wish to enter the high end of the market for more growth. Examples include Zen LXI.Splendour. Splendour Plus Coca-Cola. DEMOGRAPHIC FACTORS: It refers to studying human populations in terms of size.2. Clinic Plus Reese's Peanut Butter Cups. Texas Instruments (TI) introduced its first calculators in the medium-price-medium-quality end of the market. Vanilla Coke. age. it added calculators at the lower end taking the share from Bowmar. Surf Excel Blue. and socio-culture. Surf Excel. Nissan's Infiniti. The company may find that the middle market is stagnating or declining. or simply to position themselves as full-line manufacturers. When compared to a firm's task environment. The company may wish to tie up lower-end competitors who might otherwise try to move up-market. 3. natural forces. and occupation.Clinic All Clear. It includes factors such as demography. race. higher margins. technology. If the company has been attacked by a low-end competitor. Gradually. it often decides to counterattack by entering the low end of the market. Two-Way Stretch Companies serving the middle market might decide to stretch their line in both directions.Surf. and at the higher end to compete with Hewlett-Packard. the impact of macro environmental variables is less direct and the organization has a more limited impact on these elements of the environment. location. Haagen-Dazs in ice cream and Evian in bottled water. Leading Japanese auto companies have each introduced an upscale automobile: Toyota's Lexus. This two-way stretch won Texas Instruments (TI) an early market leadership in the hand-calculator market. gender. Diet Coke. 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. Zen VXI. and Honda's Acura. economy. politics. Note that they invented entirely new names rather than using or including their own names. density.
and versatility.000 a decade later partly as a result of a "Drivers Wanted" ad campaign that targeted fun-loving or youthful drivers. VW went after a younger demographic willing to spend a little extra on a Volkswagen because of the car's German engineering. Rather than appealing to the mass market. where as in country like India where major age group is young child care policies . women formal apparels are in high demand." • 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.is a very important factor to study for marketers and helps to divide the population into market segments and target markets. 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. there are passengers and there are drivers. • As in India no of working women increasing day by day so the products like fast food. Example: • Volkswagen sales in the United States rose from under 50. It also requires a company to stay ahead of others and update their own technology as it becomes outdated.000 cars in 1993 to over 300. . ready to eat meals. As these markets develop it can create new markets and new uses for products. Example: Himani Boro plus entered the market when Boroline could not fulfil the demand of the market. No company enters market without competition. "On the road of life. retirement benefits are in high demand. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. consumer goods companies like LG see potential for growth. sportier image. TECHNO-LEGAL FACTOR: The techno-legal environment is perhaps one of the fastest changing factors in the macro environment. The voiceover on the introductory TV spot identifies the target audience by saying. • As concept of nuclear families increasing.
Technology transfer is the process of sharing of skills. It is closely related to (and may arguably be considered a subset of) knowledge transfer.000 networked homes that are outfitted with Internet-enabled ovens. methods of manufacturing. store. security cameras. IT deals with the use of electronic computers and computer software to securely convert. development. knowledge. academic. of local to global scope. Innovations Innovation can be seen as the process that renews something that exists and not. In Korea. implementation. processes. Discovery is the act of detecting something new. process. transmit. input. application. support or management of computerbased information systems. and retrieve information. the introduction of something new. It is a network of networks that consists of millions of private.Example: • In an ambitious endeavour. according to the Information Technology Association of America (ITAA). protect. design. applications. as is commonly assumed. and wall-mounted flat-panel displays. public. output. particularly software applications and computer hardware". . and government networks. Samsung has 6. that are linked by a broad array of electronic and optical networking technologies. Samsung had launched a digital home business. business. 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. materials or services. Samsung is looking to take the idea abroad. The Internet is a global system of interconnected computer networks and serves billions of users worldwide. Rate of Technology transfer . • 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. refrigerators.
Example: • Norway bans several forms of sales promotion—trading stamps. Policymakers debate the nature of the tax structure they plan to implement (i. As such. 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.e. Sometimes these laws also create new opportunities for business.Rate of Obsolescence: Obsolescence is the state of a being which occurs when an object.e. service or practice is no longer wanted even though it may still be in good working order. how progressive or regressive) and how they might affect individuals and businesses (i.Tax policy is the government's approach to taxation. For example. and restrictions on. so that low-income consumers can find economy brands. working people and their organizations. • 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.. This environment is composed of laws. Obsolete refers to something that is already disused or discarded. employers and employees. tax incidence). contests. • Thailand requires food processors selling national brands to market low-price brands also. it mediates many aspects of the relationship between trade unions. 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. or antiquated. • In India we cannot sell electric appliances. Typically. and pressure groups that influence and limit various organizations and individuals.. and precedents which address the legal rights of. or "employment" law) is the body of laws. . administrative rulings. government agencies. Labour law (or "labour". and premiums— as inappropriate or "unfair" instruments for promoting products.
. Legislation can have many purposes: to regulate. thumbs up." Legislation (or "statutory law") is law which has been promulgated (or "enacted") by a legislature or other governing body. to others. to proscribe. or the process of making it. and to provide (funds). Examples: • Colour of products in Islamic country is dominantly green for eg Colgate. Other scholars define it as a system of "courses of action. legislative acts. to sanction. and may be broadly referred to as "legislation" while it remains under consideration to distinguish it from other business. and to the universe.) Before an item of legislation becomes law it may be known as a bill. and norms that largely define these tastes and preferences. and judicial decisions.Public policy can be generally defined as the course of action (or inaction) taken by the state with regard to a particular issue. to organizations. • 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. values. • South Asian countries like Thailand uses more vibrant colours as compared to country like France use subtle shades. to authorize."Public policy is commonly embodied "in constitutions. to society. regulatory measures. to declare or to restrict. SOCIO-CULTURAL ENVIRONMENT: Purchasing power is directed toward certain goods and services and away from others according to people's tastes and preferences. • 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. (Another source of law is judge-made law or case law. laws. and funding priorities concerning a given topic promulgated by a governmental entity or its representatives. to nature. Society shapes the beliefs. almost unconsciously. • HMT. a worldview that defines their relationships to themselves. 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. People absorb. to grant.
Marketers Markets require purchasing power as well as people. Veblen's subject of examination. EXAMPLES • Pesticides prices are controlled by government so foreign investor are not able to enter Indian market. savings. 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. • Petrol and diesel prices are regulated in India . more recently by a movement called Enoughism. The available purchasing power in an economy depends on current income. American Express. debt. GE moved much of its research and development overseas. the newly emergent middle class arising at the turn of the twentieth century. 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. The term is often associated with criticisms of consumption starting with Thorsten Veblenor. Outsourcing was seen as a competitive necessity by many firms. Dell. and credit availability. in December 2003. IBM decided to move the jobs of nearly 5. savings. Example: An economic issue of increasing importance was the migration of manufacturers and service jobs offshore. prices. 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. 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. The available purchasing power in an economy depends on current income.000 programmers to India and China. Microsoft. comes to full fruition by the end of the twentieth century through the process of globalization. prices. and credit availability.• Shopping trends of various countries are persuaded by festive seasons for example in India people tend to shop around dhanteras. Hyderabad-Bangalore side people shop during ramzan. To this extent it most commonly refers to material wealth and the ability of an agent to move up the class system. debt. Lifestyle changes: Adoption of new products especially due to change in income levels of a household.
In national accounts definitions. These fluctuations occur around a long-term growth trend. Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. companies had to keep their project on hold as there was no money in market. each unit of currency buys fewer goods and services. minus personal current taxes equals disposable personal income. oral or written. When the general price level rises. and periods of relative stagnation or decline (contraction or recession). MAINTENANCE MARKETING It is a type of marketing employed in a condition where the industry has a full demand." Business cycle (or economic cycle) refers to economy-wide fluctuations in production or economic activity over several months or years. The marketers have to maintain everything to . Subtracting personal outlays (which includes the major category of personal (or. Employment is a contract between two parties. express or implied. private) consumption expenditure) yields personal (or.• CRR and SLR ratio fixed by RBI which indirectly affects lending capacity of banks • FDI and FII Limits set by government • During recession. one being the employer and the other being the employee. 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. and typically involve shifts over time between periods of relatively rapid economic growth (expansion or boom). 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. Energy availability and cost – This is self explanatory. An employee may be defined as: "A person in the service of another under any contract of hire. Disposable income is total personal income minus personal current taxes. That is the demand of the product is equal to the supply by the industry. private) savings. Consequently. personal income. after liberalization of Indian economy lot of foreign companies entered Indian market. • During 1991.
The findings of a market analysis may motivate an organization to change various aspects of its investment strategy. Affected areas may include inventory levels.a work force expansion/contraction. Organizations use the findings to guide the investment decisions they make to advance their success. facility expansion. 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.retain their position. as any slight mistake can severely affect the company’s performance. facility expansion. 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. purchases of capital equipment. This analysis helps organizations determine which areas account for the greatest share of the market's growth and are more . • 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. Market segments Markets are not uniform. purchases of capital equipment. work force expansion/contraction. 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. and many other aspects of a company. Key success factors The goal of a market analysis is to determine the attractiveness of a market. and promotional activities. promotional activities. purchase.
attitudes and behaviour of the market. and objective business information. reporting. publication. in turn. 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. . to determine the current and future needs and preferences. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market. what the issues are and what the likely market potential is. known as Porter's five forces. they are all similar to different market conditions.” 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.susceptible to change. timely. Market profitability While different organizations in a market will have different levels of profitability. MARKET INTELLIGENCE (MI) Market intelligence (MI). according to Cornish. risk and policy analysis. storage. attitudes and behaviour of the market. It incorporates information from customer analysis and industry analysis as well as general market conditions.”Marketing Intelligence has the capacity to be at the forefront in contributing to the development of a business environment through strategic research. and to assess changes in the business environment that may affect the size and nature of the market in the future. This framework. to determine the current and future needs and preferences. This information. helps them pinpoint the most promising opportunities within the overall market and guides the choice of specific investments. and to assess changes in the business environment that may affect the size and nature of the market in future. and communication of reliable. “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers). credit-rating documentation. Market intelligence (MI) is “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers).
stockholding and logistical data. This would require the integration of competitive intelligence. That is. . Similarly. does not see how it could help decision makers in other functional areas. MI is critical for helping with the new product development stage of the product lifecycle. either in the form of an individual entrepreneur or in the functional departments of larger businesses. marketing intelligence calls for understanding. and an holistic view can prove very insightful. production. which is crucial for product. market analysis. financial.• • In other words. 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. and industry to enhance the decision-making process. markets. analyzing and assessing the internal and external environment related to a company’s customers. By using this knowledge about the external environment. Often the entrepreneur. decision makers can fail to appreciate how information from other functional areas might help them and therefore do not request it. from sources such as databases and prospect lists. 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. for example. companies can successfully innovate to stay ahead of the competition. but there is often a great deal of untapped information internally that would give you an insight into your market. marketing research. and business and financial analysis information. Internal reporting systems: All enterprises which have been in operation for any period of time have a wealth of information. marketing. this information often remains under-utilised because it is compartmentalised. information is usually categorised according to its nature so that there are. However. manpower. competitors. or various personnel working in the functional departments holding these pieces of data.
The internal records that are of immediate value to marketing decisions are: orders received. but even this small set of records is capable of generating a great deal of information. . These are but a few of the internal records that can be used by marketing managers. stockholdings and sales invoices.
• In Australia. ie. called farmers' markets. virtual or metaphorical. in many towns and cities. actual. Ukraine. The term is also used in a trademark law context to denote the actual consumer environment. however some (such as Camden Market in London.at seven hectares (17 acres). A marketplace is a location where goods and services are exchanged. but not entire stores) are commonplace. the 'real world' in which products and services are provided and consumed. the largest "open air" market is the Queen Victoria Market . as well as "marketplaces" (covered places where merchants have stalls. Both resellers and producers sell their wares to the public. sell a variety of alternative lifestyle products ranging from clothes and jewellery to CDs. Such markets are normally specialist—the various stalls of Camden Market. with stalls only present for one or two days a week ("market days"). still in use in a related sense. UK) are open every day of the week. in Melbourne. 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. The modern shopping mall can be seen as an extension of this concept. and countless such markets are still in operation around the whole world. An example of a large market is Chatuchak weekend market in Bangkok. especially in France and Britain.MARKET PLACE A marketplace is the space. One example is the huge SeventhKilometer Market near Odessa. • Some large markets have become permanent institutions comparable to shopping malls. but renewed interest in local food has caused the reinvention of this type of market. This kind of market is very old. • In Europe. instruments and furniture. MARKETING ENVIRONMENT: . along with the shops associated with it. in which a market operates. street markets. which is also the largest in the Southern Hemisphere. • Markets are often temporary. The Roman term for market. is forum.
• Volkswagen sales in the United States rose from under 50. The voiceover on the introductory TV spot identifies the target audience by saying.000 a decade later partly as a result of a "Drivers Wanted" ad campaign that targeted fun-loving or youthful drivers. Donalds introduced Mc Veggie and Mc.The various external forces that can directly or indirectly affect the many activities of an organization. legal. “YOUNGISTAN” • Mc. there are passengers and there are drivers." 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. This is an integral part of environmental scanning. VW went after a younger demographic willing to spend a little extra on a Volkswagen because of the car's German engineering. raw materials. regulatory. cultural etc. • Head and shoulders is costlier in country like USA due its better quality like high viscousity. and development of goods and services. Examples: • Yamaha launched a prototype of YAMAHA FZ1 in India to adapt to the Indian Environment • Youth is of high population in India. economic. where as in country like India where major age group is young child care policies . "On the road of life. These activities include acquisition of human resources. On the contrary it is lower in price in India to match the economy. and versatility. retirement benefits are in high demand. sportier image. social. and competitive. The term marketing environment is set of forces/factors that have potential to influence the marketing decisions of any company. The factors which affect the decisions may be demographic. Rather than appealing to the mass market. The marketing environment includes forces such as: political.000 cars in 1993 to over 300. financial resources. social. Tikka when they entered India. legal. These factors have to be taken into consideration by the marketer and proper steps should be taken to adapt to the conditions. therefore Pepsi has focussed the youth market in India. technological. • • .
stored. The goal is to use its technology to create products that will continue to improve the quality of life for consumers wherever they live. HUL goal –To develop new ways of doing business with the aim of doubling the size of the company while reducing environmental impact. It is a set of procedures and practices employed in analyzing and assessing marketing information. etc. Timely marketing information provides basis for decisions such as productdevelopment or improvement. Yemen. they usually quantify the objectives. packaging. media selection. Marketing goals are objectives that are specific with respect to magnitude and time i. . distributio n. MARKETING INFORMATION SYSTEM: A Marketing Information System can be defined as 'a system in which marketing information is formally gathered. and promotion.MARKETING GOAL: It is the collection of various quantitative marketing targets that form a goal. and distribution of clothing brands in Tier IV and V cities. Colgate – Palmolive – It is deeply committed to advancing technology which can address changing consumer needs throughout the world. EXAMPLES: a.e. b. Algeria. pricing. The goal of Nokia is to seize a 10% increase in market share in the low cost variety of mobiles. e. d. The goal of Raymonds is to expand the capacity. gathered continuously from sources inside and outside of a firm. c. The goal of Haldirams is to target places like Jordan. analysed and distributed to managers in accordance with their informational needs on a regular basis.
where and how the marketing mangement is to be done. Public image may also be considered a controllable part of the marketing strategy. The card entitles shoppers to discounts on selected items. price. place and promotion. analyze. stored. but also provides valuable information to the chain. A system that is created through an understanding of the information needs of marketing management is called marketing information system.Data is taken from the marketing environment and transferred into the information that marketing managers can use in their decision-making processes. evaluate and distribute needed. storage and dissemination of data in the form of information needed to carry out the management functions. equipment and procedures to gather. An 'MIS' is a planned system of the collection. A combination of the controllable components of a marketing strategy: product. . sort.A Marketing Information System can be defined as ‘a system in which marketing information is formally gathered. Examples: • Shoppers Stop offers shoppers a free membership card when they make their first purchase at their store. A system that supply information to mangers of when. analysed and distributed to managers in accordance with their informational needs on a regular basis’. Marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. • 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. A marketing information system (MIS)consists of people. processing. timely and accurate information to marketing decision makers.
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.
over production and losses in tying of unsaleable stock will not occur. advertising and distribution. Pricing above your product’s fair price will typically lead to market-share loss. Examples: Consumer marketing research Business-to-business (B2B) marketing research. Marketing research is fundamentally about the acquisition and analysis of information required for the making of marketing decision. the enterprise which commissions these studies does so to solve a perceived marketing problem. to meet the needs of markets and to fulfil stakeholder expectations.MARKETING RESEARCH SYSTEMS: Marketing research is a proactive search for information. 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. Market research Information means finding out whom the customer is. That is. or harvest market share and related decisions about positioning your products’ performance and whether to price for margin or growth. hold. Pricing on or near the best-value frontier will typically lead to market-share . objectives etc. Activities associated with deciding whether to build. to manufacture it in quantities that can be sold to pack it suitably. In this ideal case. making appropriate arrangements for effective. The main difference of strategy from policy is that strategy is a decision making under constraints. and what he/she will buy. Marketing strategy are the decisions taken by an industry to achieve its goals. Market research information means to enable design a product in accordance with customers' preference. 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.
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. Its expense generally made it the preserve of the rich. Changing performance opens up many other options for changing market share. like the Internet. EXAMPLE: 1. Customisation was the product of designers and craftsman. Traditionally customisation and low cost have been mutually exclusive. psychological. new interactive technologies.gain. and pressure groups. 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. National Bicycle Company MEGA MARKETING: Use of power to market your product. Mass production provided low cost but at the expense of uniformity. Mass Customisation is the customisation and personalisation of products and services for individual customers at a mass production price. individually designed products and communications to meet each customer’s requirements. Mega marketing is defined as the strategic co-ordination of economic. 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. Management activity that involves (in addition to the typical marketing activities) other elements of a firm's external environment such as government. MASS CUSTOMISATION: Mass customization is the ability to prepare on a mass basis. Levi’s Personal Pants 2. EXAMPLE: 1) Cable Operators cutting wires . media. allow customers to interact with a company and specify their unique requirements which are then manufactured by automated systems.
a large number of people are joining the workforce. producer. . For example: due to the boom in the information technology sector in India. The role of the youth in consuming products and services as well as in influencing family consumption decisions is undergoing a perceptible metamorphosis. price. place. and once in place.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. marketingservice agencies. reseller. government. physical distribution firms. As a result their purchasing power is increasing and they are becoming an important consumption group. EXAMPLE: a) Buy 1 get 1 free b) 20% discount MICRO ENVIRONMENTAL The microenvironment consists of various components. The second component includes the marketing channel firms that cooperate to create value: the suppliers and marketing intermediaries (middlemen. promotion." Young people in the region are playing an increasingly significant role in the consumption of products and services. and international markets. The third component consists of the five types of markets in which the organization can sell: the consumer. or longer. political and technological changes that are slow to form. Where ‘P’ stands for product. financial intermediaries). they influence us for some time— between seven and ten years. economic. Meta marketing means use of more than one ‘P’. The first is the organization’s internal environment—its several departments and management levels—as it affects marketing management's decision making. META MARKETING Meta marketing is using a combination of two or more marketing variables for marketing.
1). c. purchasing. Top management is responsible for setting the company’s mission. Suppliers Suppliers are firms and individuals that provide the resources needed by the company and its competitors to produce goods and services. and policies. 2) Another point of concern is the monitoring of price trends of key inputs. and accounting all produce better results when aligned by common objectives and goals. 4). However. b. 2) These include wholesalers and retailers who buy and resell merchandise. 2). seeking and working with resellers is not easy because of the power that some demand and use.The Company’s Microenvironment Microenvironment consists of six forces that affect its ability to serve its customers. 1) Resellers are distribution channel firms that help the company find customers or make sales to them. R & D. Rising supply costs must be carefully monitored. This could be deemed the internal environment. sell. manufacturing. 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. objectives. They are an important link in the company’s overall customer “value delivery system.” 1) One consideration is to watch supply availability (such as supply shortages). All departments must “think consumer” if the firm is to be successful. . 3) Resellers often perform important functions more cheaply than the company can perform itself. Marketing managers must make decisions within the parameters established by top management. The Company The first force is the company itself and the role it plays in the microenvironment. The goal is to provide superior customer value and satisfaction. and distribute its goods to final buyers. 3). Let’s discuss these forces in detail: a. broad strategies. Areas such as finance. Physical distribution firms help the company to stock and move goods from their points of origin to their destinations. Marketing Intermediaries Marketing intermediaries are firms that help the company to promote.
insurance companies.Marketing service agencies (such as marketing research firms. 5) Local publics--includes neighbourhood residents and community organizations. advertising agencies. Financial intermediaries (such as banks. 4) Citizen-action publics--a company’s decisions are often questioned by consumer organizations. f. 5). 3). No single competitive strategy is best for all companies. etc. Competitors Every company faces a wide range of competitors. and editorial opinion. These markets normally include: 1). credit companies. . A company should prepare a marketing plan for all of their major publics as well as their customer markets. features. d. 3) Government publics--take developments into account. A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace. 6) General publics-a company must be concerned about the general public’s attitude toward its products and services. etc.) help the company target and promote its products. publics can be identified as being: 1) Financial publics--influence the company’s ability to obtain funds. Generally. Reseller markets (buy goods and services in order to resell them at a profit). 2).) help finance transactions and insure against risks. e. 2) Media publics--carry news. Government markets (agencies that buy goods and services in order to produce public services or transfer them to those that need them). 4). Consumer markets (individuals and households that buy goods and services for personal consumption). 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. International markets (buyers of all types in foreign countries). media firms. Customers The company must study its customer markets closely since each market has its own special characteristics. Business markets (buy goods and services for further processing or for use in their production process).
they usually think of a limited number of brand names.answers. lifestyle. Alternative term for niche marketing. .com ➢ Morph marketing is a marketing as per the changing requirements of the customers. Designing. creating.7) Internal publics--workers. MICRO MARKETING: It involves targeting potential customers at a very basic level. c) Xerox is often used in case of copying. and the board of directors. or psychographic segments of the consumer market. demographic. MORPH MARKETING: DEFINITIONS➢ It is a strategy in which marketer provides a product with an envelope of service---wiki. The Internet may allow marketers to make micromarketing even more effective. Examplesa) The term googling describing the act of online searching. is one of the main objectives of advertising and promotion. specific occupation. and advertising campaigns for the benefit of very specific geographic. MIND SHARE: Mind share or the development of consumer awareness or popularity. volunteers. and manufacturing products. and they refer to all such items by that name even if it is a different brand. marketing strategies. managers. or individual household. b) Very few people realize that "Band-Aid" is a specific brand of first-aid adhesive bandage. 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. such as by ZIP code. 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. When people think of examples of a product type or category.
➢ Nokia mobiles provides new battery as a replacement for the faulty BL5-C battery. EXAMPLES: ➢ GENERAL ELECTRIC is the most valuable customer for IT GAINT BIRLASOFT(60%projects that birlasoft handles comes from GE. ➢ 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. MOTIVATION: . they also provide a new car as a replacement. ➢ FOR DETERGENTS LIKE NIRMA AND GHARI it is the rural market .➢ It is also known as PACE MARKETING as it provides pace to the business. if default is incurable . or customer segments.V is taken out for service. MOST VALUABLE CUSTOMERS: DEFINITIONS: ➢ Customers. Marketers target customers that can provide the greatest discounted present value of future profits.V when your faulty T. ➢ Mercedez BENZ provides instant service for your car . providing the largest stream of profits over the relevant time horizon. it is INDIAN RAILWAYS. ➢ Most valuable customer can be a single customer as well as an organization that provides maximum profit. ➢ For sleepers manufactures. EXAMPLES➢ LG Provides a replacement T. ➢ These customers are the real assests of the company.
or to get maximum mileage out of established brands that it has acquired. safety . theoretically. goal.DEFINITIONS ➢ Motivation is the driving force which causes us to achieve goals. Motivation is said to be intrinsic or extrinsic.social. or a desired object. motivation may be rooted in the basic need to minimize physical pain and maximize pleasure. motivation should not be confused with either volition or optimism. morality. multibrand strategy may be its only option for increasing sales still further without sacrificing profitability. ➢ When a company has achieved a dominant market share. or avoiding mortality. ideal. esteem . state of being. or to differentiate its offering to different market segments. Examples: ➢ Lever Brothers sells washing powders under the Persil. it can also be used to describe the causes for animal behavior as well. ➢ Conceptually. or it may include specific needs such as eating and resting. ➢ 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. selfishness. ➢ Motivation is related to. The term is generally used for humans but. EXAMPLES: ➢ MASLOWS HIERARCHIAL theory of motivation that caters physiological . but distinct from.self-actualization needs in a hierarchial order. or it may be attributed to less-apparent reasons such as altruism. Omo and Surf names. . emotion. ➢ According to various theories. The motive may be that the company wishes to create internal competition to promote efficiency.
Bournville and Fruit & Nut names. so that the details and prices of goods on offer are consistent across the different channels. producers who use multichannel marketing systems operate their own retail stores as well as sell through other wholesalers and retailers. Diya . 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. email or text message. a web site. Spaghetti Hoops and Alphabetti Spaghetti names. D’damas . MULTICHANNEL MARKETINGDEFINITIONS➢ A system in which a producer uses more that one channel of distribution.--monash dictionary of marketing ➢ Multichannel marketing is marketing using many different marketing channels to reach a customer. a mail order catalogue. or direct personal communications by letter. Some companies target certain channels at different demographic segments of the market or at different socio-economic groups of consumers. Multichannel retailers are also called Merchandising Conglomerates. ➢ To be effective multichannel marketing needs to be supported by good supply chain management systems. a channel might be a retail store. commonly. It might also be supported by detailed analysis of the return on investment from each different channel.➢ Cadbury sells chocolates under the Dairy Milk. In this sense. . ➢ GITANJALI GROUP have following brands under its nameNakshatra .Stefan Hafner. measured in terms of customer response and conversion of sales. ➢ Heinz sells canned convenience foods under the Baked Beans.
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.offices and through other sites like YATRA. where N is specified a priori.COM.SHOPPER’S STOP.IRCTC website and other registered agents. depending on the meaning of the input matrix: ➢ Classical multidimensional scaling .retail outlels like BIGBAZZAR. EXAMPLES: ➢ Mobile companies like nokia sells their mobiles using their own stores PRIORITY.COM. the resulting locations may be displayed in a graph or 3D visualisation.and through others means like HOTSPOT and interet(E-COMMERCE).------------.-wikipedia. An MDS algorithm starts with a matrix of item–item similarities.➢ MultiChannel marketing allows the retail merchant to reach its prospective or current customer in a channel of his/ her liking. ➢ AIRLINES sells their tickets by their websites. ➢ Railways also sells their tickets through their reservation counters. For sufficiently small N. then assigns a location to each item in N-dimensional space.—(Wikipedia) TYPES OF MULTIDIMENSIONAL SCALING: MDS algorithms fall into a taxonomy. ➢ MDS is a special case of ordination.MAKE MY TRIP.
➢ Louis Guttman's smallest space analysis (SSA) is an example of a non-metric MDS procedure. And the marketers’ job is to identify the customer wants to develop a product or service specific to customer need.(google) ➢ Problems that customers intend to solve with the purchase of a good or service. A useful loss function in this context is called stress which is often minimized using a procedure called Stress Majorization. ➢ Non-metric multidimensional scaling In contrast to metric MDS. ➢ 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. NEED: DEFINITIONS: ➢ Needs are the basic human requirements. and the location of each item in the low-dimensional space. Need means a “felt state” or a sense of deprival. non-metric MDS both finds a nonparametric monotonic relationship between the dissimilarities in the item-item matrix and the Euclidean distance between items. .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.(google) EXAMPLES: ➢ Ujala Supreme was a product made to suit customer needs for whiter clothes. The relationship is typically found using isotonic regression. Need is a negative word.
➢ Widely used concept helps marketers to design their strategy and saves promotional and advertizing costs.➢ Fair and Handsome was a product as a fairness cream specific for men. ➢ Air conditioners were not needed in cars in European countries. setting price below the neutral price is a tactic for gaining share. ➢ Each segment is satisfied by same kind of products and offer. EXAMPLES: ➢ During shortage price of vegetables and other essential items. NEUTRAL PRICE: DEFINITIONS: ➢ The price for a product at which its market share will hold at the current level. . ➢ TATA MOTORS launched NANO to caters to the need of middle class as a replacement of two-wheeler. ➢ Setting a price above the neutral price is a tactic for increasing unit profit margin. at the expense of causing market-share erosion. 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. NEED BASED SEGMENTATION: DEFINITIONS: ➢ Group consumers into segments based on similar needs and benefits. their prices increases ato a great extent(much more than the neutral price) ➢ Sometimes companies reduces their product prices to gain market share. ➢ TATA DOCOMO introduces 1 PAISA/SEC . ➢ Ghari detergent and nirma generally caters to the need of rural population. hence Maruti refitted cars with heaters.
Narrower demographics lead to elevated prices due to the same principle. as well as the price range. therefore the market niche defines the specific product features aimed at satisfying specific market needs. these research activities have not been universally applauded though. production quality and the demographics that is intended to impact.NEURO MARKETING: DEFINITIONS: ➢ The term neuromarketing has been used to describe brain research on the effect of marketing stimuli. Critics thinks that such a development will only lead to more marketing manipulation by companies. By adding neurological techniques o their research arsenal . Market niches do not exist by themselves. So to speak.----(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. but are created by . Given the complexity of the human brain. marketers are trying to move toward a more complete picture of what goes on inside consumers’ heads. however many researchers caution that neurological research should not form the sole basis of marketing decisions. the products aimed at a wide demographic audience. As of special note. ➢ Small but profitable segment of a market suitable for focused attention by a marketer. ➢ Every single product that is on sale can be defined by its niche market. are said to belong to the mainstream niche—in practice referred to only as mainstream or of high demand. with the resulting low price (due to price elasticity of demand).
sports channels like STAR Sports. and by offering products that satisfy them. 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. Honda City are targeted to upper middle class. ➢ NDTV launched GREENATON. or profession. sexual orientation. While the marketer is open to consumers of all types. . Pierre Cardin pens cost RS 250 each Advertisement campaign by Dr. age. PORSCHE and other luxury cars are targeted only to rich urban class who can afford them. ➢ ➢ ➢ ➢ ➢ ➢ ➢ EXAMPLES: Mercedez . for example. religion. ➢ organisations that buy and distribute goods and services for reasons other than the return of profit to their owners. ESPN. gender. 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. BMW . Batra regarding loss of hair. ➢ NON-PROFIT MARKETINGDEFINITIONS: ➢ Marketing activity undertaken by a firm whose primary objective is one other than profit. 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. A number of television channels cater to the need of a particular niche. Similarly.----Monash dictionary of marketing EXAMPLES: ➢ AIRCEL launched SAVE TIGER CAMPAIGN.identifying needs or wants that are not being addressed by competitors. with some examples revolving around geographic location. ➢ 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. Cars like Hyundai Sonata .
What are the features . Outlets. Objects. ➢ BILL AND MELINDA GATES lauched a foundation to help people from disesses like malaria. sizes. Occasions. marketers should follow the 7 O’s framework of consumer research. Objectives. 7 O’s model of study of consumer behaviour: In order to understand the consumers in the target market. Organizations.flavours. Product forms – cols v/s lime v/s orange Brands – Coke v/s Pepsi EXAMPLES: ➢ Hero Honda karizma is an object for young .passionate sporty guy. colours . etc that the consumer seeks? Products – soft drinks. OBJECT: (What does the market buy?) DEFINITIONS: ➢ It is defined as the object of purchase or what does the consumer buy. Operations. . The 7 O’s stand for – Occupants .➢ TATA TEA launches JAGO RE CAMPAIGN. ➢ IT gaint INFOSYS has a foundation which works for the welfare of society.
Birthdays Aniversary Valentine day OCCUPANT (Who constitutes the market? ) DEFINITIONS: ➢ Occupant is defined as those who constitute the market. educational qualifications of the consumer. psychographic & media graphic profile. ➢ Demographic profile is the study of age.EID etc. What motive is he trying to satisfy? EXAMPLES: ➢ To gift to someone during birthday. EXAMPLES: ➢ ➢ ➢ ➢ ➢ Festival season—holi . demographic. gender.➢ Tata nano for middle class who need it as a replacement for scooter. ➢ 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. 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. Helps to understand consumer’s geographic. ➢ Indigo airlines for people loving cheap and economic cost airlines ➢ Parker pens for middle level executives. diwali . income. 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. Holidays ie weekends. occupation. .
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. Media graphic are the media habits of the consumer. Alvin C. ONLINE MARKET RESEARCH The use of computer networks. to assist in any phase of the marketing research process. ➢ Geographic profile is the region to which the consumer belongs . 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. ➢ Personal selling ➢ Promotion through posters ➢ Advertisements in T.➢ Psychographic profile is the study of the lifestyle of the consumer as expressed by activities . or whole of the market research process. research design. and report writing and distribution. including the internet. Bush When organizations use internet to support a phase. data gathering. Burns & Ronald F. Marketing Research.V and radio stations. . including development of the problem. interests & opinions of the consumer.--------(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. it is termed as online market research.— (WIKIPEDIA) EXAMPLES: ➢ Distribution of pamphlets during promotion of products. analysis.
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. in the long run it proves to be worth the effort. The 7 O’s stand for . Although online research requires some prior advanced scheduling and preparations. Outlets. marketers should follow the 7 O’s framework of consumer research. Boyd & Stanley F.Occupants. Harper W. 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. Churchill. Operations. data collection.Text & Cases. working mothers can be effectively reached through online research. Online research is relatively low in cost in the sense that participants from all over the globe can pitch into the discussions. Who constitutes the market? Occupant What does the market buy? Object . According to the authors of Online Marketing Research: “ The advent of the Web has led to a revolution in the research community” Today RFPs. Teens. well-educated professionals.Marketing Research. Jr. This module of market research also allows speed of execution. Occasions. sample design and ordering. Gilbert A. Marketing Research. data analysis and report writing and distribution are carried out through online tools and services. Objects. Objectives. 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. without engaging in any kind of travel and/or living expenses. Organizations.
Example – information collected before purchase.Why does the market buy? How does the market buy? Objective Operation Who participates in buying? Organization When does the market buy? Occasion Where does the market buy? Outlet HOW THE CONSUMERS BUY(OPERATIONS) . .What kind of background information do consumers collect before buying & from whom they seek this information.
and the design of processes for the constant improvement of the operation. plant facilities. These costs provide the basis for developing successful business strategies and planning future operations. such as planning production and sales. and controlling the quality of production.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. To make operational decisions it helps to understand some fundamental cost-volume relationships related to the operation of a company. A dictionary of business. scheduling personnel and equipment. adjusting production rates. the organization decides to compete in the market on the basis of superior quality. the way in which production is managed and controlled. If the strategy is to compete on cost. and in-house capabilities of company personnel. OPERATIONAL STRATEGY A plan to transform an organization's overall strategic objectives into operational deliverables. the operations strategy has to plan to produce a package incorporating the specified quality within stated financial constraints. Short term operational decisions are also called Present Economic Studies and they require the estimation of costs associated with various production and manufacturing activities.Oxford University Press . Decisions that involve routine tasks. A visit to the "Short-term Decisions" page will then be appropriate for a review of some common examples of short-term operational decisions. the plan must produce the product cheaply within the limits of acceptable quality. It involves the design of the product or service and the processes by which the product or service is produced. at the strategic level. If.
OPPORTUNITIES SWOT analysis is a strategic planning method used to evaluate the Strengths. Mere competence does not constitute a competitive advantage. but also exceed those of its competitors. 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. These can be seen as targets to achieve and exploit in the future for example: . Operational strategy therefore focuses on issues of resources. The company’s success probability depends on whether its business strengths not only match the key success requirements for operating in the target market. A marketing opportunity is an area of buyer need in which a company can perform profitably. through the reconciliation of market requirements with operations resources. people etc.” 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. Keeping in mind the Company Strengths. 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. Opportunities. Philip Kotler These are external chances to make greater sales or profits in the environment. The best-performing company will be the one that can generate the greatest customer value and sustain it over time. Opportunities can be classified according to their attractiveness and their success probability. Weaknesses. who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. The technique is credited to Albert Humphrey. and Threats involved in a project or in a business venture. SWOT Analysis can now influence the Opportunities for the business.
customers served. 5. resources. 3. A market vacated by an ineffective competitor. and 2) job seekers with significant disabilities. Skilled workforce means that they can be moved and trained into other areas of the business 3. joint ventures or strategic alliances. Moving into new market segments that offer improved profits. 2. Mergers. Moving a product into a new market sector In SWOT. 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. For example an opportunity could be: 1. A developing market such as the Internet. Broadband technology has been installed in the area (useful for Internet users) 5. Increased spending power in the Local/National economy 6. Specifically. . Good financial position creating a good reputation for future bank loans and borrowings 2. Competitor going bankrupt (Takeover opportunity?) 4. organizational marketing “sells” the unique service or services offered by a supported employment provider. Organizational marketing requires a creative plan of action and ongoing evaluation. and the outcomes which are expected. opportunities and threats are external factors. 4. as well as employment centered consultation. Marketing efforts are directed toward two constituents: 1) community employers. competition.1. the services that will be marketed to community employers will be the availability of a rich pool of personnel options. ORGANIZATIONAL MARKETING Simply put. A new international market.
usually with quantifiable benefits in view. interiors and exteriors of buses. The marketing approach is thus identifiably linked to the subsumed existence of ORGANIZATIONAL BUYER BEHAVIOUR. Westburn dictionary of marketing OUTDOOR ADVERTISING Technically correct term for the ADVERTISING MEDIUM colloquially referred to as 'posters'.even if the PRODUCT being traded is for eventual personal consumption. The two are taken together. 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. The term 'posters' is generally used in this dictionary in place of the more cumbersome and less self-explanatory combined description. Westburn dictionary of marketing Any advertising done outdoors that publicizes your business's products and services. The key CONCEPT is that the fundamental differentiating feature between types of marketing activity is not the nature of the goods being traded. on and in buses. taxis and business vehicles.Virginia Commonwealth University. Whereas CONSUMERS are perceived as buying frequently (if not always) for immeasurable personal satisfaction. The category does not include POSTER SITES in railway or underground stations. in industry analyses and statistics. organizations are seen as buying deliberately. bus benches. or advertising spaces in underground trains. 'Outdoor and transport' ranks third among the five MAJOR MEDIA. but the nature of the demand. and signage posted on the exterior of your own brick-and-mortar location. Marketers thus require to base their approaches accordingly . and so on. . Types of outdoor advertising include billboards. The term for this subset is 'transport advertising'. with a 4 per cent share of the total UK advertising expenditure.
totaling $6.99 billion in annual revenues in 2008 in the USA. 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. It means that buyers believe that the product is meant for a very select audience because it is premium priced. waiting (such as in a medical office). in transit.Entrepreneur Encyclopaedia Out-of-home advertising (or outdoor advertising) is made up of more than 100 different formats. Whereas the product was priced only at Rs. so the potential customer group becomes too small. Out of home advertising. people thought that it was meant for upper class consumers. transit. when Aqua Guard introduced Aqua Sure. Outdoor advertising formats fall into four main categories: billboards. Outdoor advertising is essentially any type of advertising that reaches the consumer while he or she is outside the home. and alternative. ➢ For example. low cost. creative limitations OVER POSITIONING Specifying the brand or product too narrowly with the result that some of the target customers are not reached effectively. Advantages of Outdoor advertising: Flexibility. print. This is in contrast with broadcast. PACKAGING . low competition Limitations: Limited audience selectivity. 1600. and Internet advertising. therefore. street furniture. and/or in specific commercial locations (such as in a retail venue). high repeat exposure.
in recent years the role of packaging has been broadened so that. combine things together as one inseparable unit Packaging includes the activities of designing and producing the container for a product. and otherwise make the product marketable and keep it clean. aluminium. its purpose is to attract attention. describe. create attractive packaging in order to promote the sale of an item. and it might include up to three levels of material. etc) originally intended merely to contain and protect a product. Dileep Kumar M. Eg: beverages. ➢ Consumer Packing: This packaging holds the required volume of the product for ultimate consumption and is more relevant in marketing. wooden crate etc. . Eg: fiberboard. Philip Kotler Packaging can be defined as the wrapping material around a consumer item that serves to contain. provide additional product information. protect.The materials (glass. transport and storage. SCDL) 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. in addition to containment and protection. tobacco etc. The container is called the package. Ex-Professor. Monash University marketing dictionary Packaging is wrapping in which an item is presented for sale. Prof. wrap. and assist in promotion. presentation of a package pack. Symbiosis (SCMHRD. identify. promote. display. cardboard.
• 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. .
It is introducing the product at a low price intended to capture the mass market for the product or service. • • Firms such as Texas Instruments choose this objective because they believe that higher sales volume will lead to lower unit costs and . .PENETRATION PRICING Penetration pricing is the pricing technique of setting a relatively low initial entry price. Setting prices low in order to gain as much market share as possible as quickly as possible. The price charged for products and services is set artificially low in order to gain market share. a product is widely promoted and its introductory-price is kept comparatively lower. often lower than the eventual market price.higher long-run profit. rather than to make profit in the short term. The strategy works on the expectation that customers will switch to the new brand because of the lower price. The aim is to achieve a large market share by high initial sales. Under this approach. This approach was used by France Telecom and Sky TV. (2) it has elasticity of demand (buyers are price sensitive). This strategy is based on the assumption that (1) the product does not have an identifiable price-market segment. Once this is achieved. and (4) the competitors too will soon lower their prices. (3) the market is large enough to sustain relatively low profit margins. 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. to attract new customers. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. the price is increased. Strategy adopted for quickly achieving a high volume of sales and deep market-penetration of a new product.
brand. Any more is a challenge to draw and confusing to interpret. Perceptual maps can have any number of dimensions but the most common is two dimensions. Answers are plotted on a graph. Consumers answer questions about a given product based on their experience with the product and their thoughts about what the product should be. This sample of consumers felt Porsche was the sportiest and classiest of the cars in the study (top right corner). or company is displayed relative to their competition. 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. product line. and the results are used to make improvements in the product or in the creation of new products. • The perceptual map below shows consumer perceptions of various automobiles on the two dimensions of sportiness/conservative and classy/affordable. They felt Plymouth was most practical and conservative (bottom left corner).PERCEPTUAL MAPPING Perceptual mapping is a graphics technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. . Typically the position of a product. It is the use of a graph or map in the development of a new product.
PERSONALITY & SELF CONCEPT Self-concept (or self-image) is related to personality. It is also more general than selfesteem. racial identity. self-concept theory has had a mixed record of success in predicting consumer responses to brand images. and many others. which is simply an individual's awareness of their self.PERSON MARKETING It is the marketing activity aimed at creating target market awareness. of a particular person. 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 a favourable opinion. and temporally stable"). . interest. such as academics (and nonacademics). which is the purely evaluative element of the self-concept. 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). While closely related with self-concept clarity (which "refers to the extent to which self-knowledge is clearly and confidently defined. internally consistent. and preferences of a target market towards a celebrity or authority figure. gender roles and sexuality. Which self will she try to satisfy in making a purchase? Because it is difficult to answer this question. Marketers often try to develop brand images that match the target market’s selfimage. • • Oprah Winfrey uses person marketing to promote her O magazine. GM paying Tiger Woods 40 million for a 5 year contract ending in 2009 is an example of person marketing. Person marketing involves efforts designed to cultivate the attention. it presupposes but is distinguishable from self-awareness.
values. 2) In a priori segmentation. attracts retail shoppers at the point of a purchase. commonly known as point of purchase advertising. PRODUCT 1) relating to the good or core service being sold. In other words. "Social Knowledge and Social Development. and roles. the market is split according to preexisting demographic criteria such as age. physical characteristics. facilitating the library in determining geographic market are that users reside in. displays can range from signs and banners to coupon dispensers and video advertisements at the cash register. 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. 2) Point of sale marketing. Michael. such as beliefs regarding personality traits. Point of sale marketing utilizes display to catch a shopper's attention.It is defined as the “totality of the individual’s thoughts and feelings having reference to himself as an object. . sex or social economic status. This could the zip codes for library users." 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. point of sale (POS) marketing lures shoppers into buying additional products or services at checkout. goals. Regardless of the type of display. in the hope that resulting segments perfume differently in response to market mix variables. abilities. The self-concept is the accumulation of knowledge about the self. Lewis.
but also discounts. c) Pepsi is priced at Rs. insurance etc.000 onwards. 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. 42. b) Dell Studio Laptops are priced at Rs. Basically. 5) The physical goods sold to customers and other organisations as well as the services that are offered to individual consumers. style. Herbal. it involves introducing new products or improvising the existing products. 3) Product – Product is a bundle of utilities. Pricing includes not only the list price. What your product offers that your customers value. It is the amount a customer pays for the product. and whether/how you should change your product to meet customer needs. a) Asian Paints – Royale Luxury emulsion has been placed by Asian Paints as a premium product. warranty. after sales service. 4) Anything that is of value to a customer and can be offered through a voluntary marketing exchange. It is priced at Rs. e. e. other businesses and the government. Pricing decisions should take into account profit margins and the probable pricing response of competitors.g. Sensitive. guarantee. Pricing must be competitive and must entail profit. It must provide value to a customer but does not have to be tangible at the same time. -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. 315-345 for 1 litre. financing and other options such as leasing. It includes the features.2) Product. It includes tangible products as well as services.g. Active Salt b) Transcend memory chips come with lifetime warranty. . shape. design.
. 6) The amount charged for a good or a service. Automated systems require more setup and maintenance but may prevent pricing errors. shipment or invoice date. price prevailing on entry. a Japanese consumer could buy a 40-inch HDTV for about $2000. Sony skimmed the maximum amount of revenue from the various segments of the market the above example shows skimming pricing. based on factors such as: a fixed amount. combination of multiple orders or lines. the rest being cost centers. Pricing factors are manufacturing cost. a price that many more customers could afford. a 28-inch HDTV cost a Japanese buyer just over $6.Kenneth E Clow and Donald Baack PIMS (PROFIT IMPACT OF MARKET STRATEGY) — an ongoing research and consulting activity focused on competitive marketing . In 2001. These televisions were purchased only by customer who could afford to pay a high price for the new technology. Eg. In this way. promotion. When Sony introduced the world's first high definition television to the Japanese market in 1990. market condition.000. energy to acquire a specific product or service.3) The overall sacrifice a consumer is willing to make – money. Thus pricing is very important in marketing. and place. By 1993. and quality of product. Sony rapidly reduced the price over the next several years to attract new buyers.000. promotion or sales campaign. quantity break. 4) Pricing is the process of determining what a company will receive in exchange for its products. market place. Price is the only revenue generating element amongst the four Ps. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. Pricing is also a key variable in microeconomic price allocation theory. time. 5) Pricing is the manual or automatic process of applying prices to purchase and sales orders. and many others. Pricing is a fundamental aspect of financial modeling and is one of the four Ps of the marketing mix. specific vendor quote. the high-tech sets cost $43. The other three aspects are product. competition.
strategy and benchmarking using a business-unit database. and capital intensity) and relating competitive position and market attractiveness metrics to measures of business results (profitability and growth). and prices of major offerings in a category for the major competitors in the market. Products that perform better than average are often priced higher than the average price. Products that perform worse than average are often priced lower than average. attribute relative importance. 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.Russell s. pricing higher in sub-segments that perceive the most differential worth in your product. . and reducing price to appeal to other sub-segments according less worth to your product. . PRICE CUSTOMIZATION — Setting different prices for different market sub-segments. . market share. PRICE DIFFERENTIAL — 1) The difference between the price of an offering and the price of a reference offering.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. This is known as Price differential or Price discrimination.Tapan K Panda 3) Selling merchandise to different buyers at different price. 2) The marketing manager can charge different kinds of prices in different markets. The research and benchmarking activity focuses on measuring metrics that track a business’s competitive position (relative overall quality/performance. .
and good quality. If the product fails short of buyer’s expectation. Indica by Tata Motors for small car consumers who want a more spacious vehicle. The marketer should always use to reduce the cognitive dissonance by cementing with ads and building relationship with the consumer. Domino’s Pizza for convenience-minded pizza lovers .PRICE PREMIUM — The selling price of the vendor's product minus the selling price of a reference product. POST-PURCHASE – 1) This is the stage in which the consumer looks for the services provided after the purchase. exceeded them or was disappointing. the buyer will be disappointed & dissatisfied. It is the opposite of the price advantage a vendor enjoys when selling at a price below the price of the reference product. Benefits being delivery. b. Mahindra & Mahindra positioned their SUV Scorpio to life style oriented consumers. This dissatisfaction is called Cognitive Dissonance. c. speed. 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. The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. . 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. 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. After purchase. Examplesa.
ExampleSituation of Savlon when it entered the antiseptic lotion market in India dominated by dettol. 2) The place a good or service occupies in the mind of consumers and relative to the competition. Examplesa. in the collective minds of the target market. and believe they could not find to the same extent with a competitive brand . positively evaluate. De-positioning involves attempting to change the identity of competing products.Associations that make up points of difference may be based on virtually any type of attribute or benefit. 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. 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. in the collective minds of the target market. These types of associations come in two basic forms : category and competitive. b. . or organization. brand. c. relative to the identity of your own product. relative to the identity of competing products. Re-positioning involves changing the identity of a product. product line.1) Developing a specific marketing mix to influence potential customer’s overall perception of a brand . POINTS-OF-DIFFERENCE (PODs) are the attributes or benefits consumers strongly associate with a brand.
c) Maruti Suzuki has one of the widest chain to dealers throughout the country with multiple dealers in most cities. Sometimes these laws also create new opportunities for business. For example. 3) Place represents the location where a product can be purchased. Distribution is about getting the products to the consumer. 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. a) Nikon has centres and showrooms in almost every state across India. e. This environment is composed of laws. order processing. transportation. This may include using different distribution channels.g.PLACE . It is often referred to as the distribution channel. POLITICO-LEGAL: 1) Marketing decisions are strongly affected by developments in the political and legal environment. inventory management. For example. market coverage. 4) Deciding where. Some examples of distribution include – Distribution channels. and pressure groups that influence and limit various organizations and individuals. . how and when products will be available to potential customers. b) Raymonds is retailed through 30.000 stores in over 40 towns across India. warehousing. government agencies. It can include any physical store as well as virtual stores on the Internet.1) How and where you sell. you might sell over the Internet or sell through retailers.
so that low-income consumers can find economy brands. often coupled with heavy promotion. 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. Example: •Norway bans several forms of sales promotion—trading stamps. .price market segment becomes saturated and sales begin to slow down. to persuade consumers to buy. 2) Communication used to motivate consumers to take action. and premiums— as inappropriate or "unfair" instruments for promoting products. Thailand requires food processors selling national brands to market low-price brands also.Tata Mcgraw Hill 2) Pricing policy whereby a firm charges a high introductory price. . In India we cannot sell electric appliances. contests. e. the firm generally lowers the price to capture or skim the next most price sensitive segment. Persuasion is used to stimulate consumers to purchase products even if they do not really need it. .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.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. a) Cadbury Celebrations persuades consumers to buy it during festivals b) Big Bazar organizes sales and discount offers on Republic Day etc.g.
As the demand of the first customers is satisfied. more pricesensitive segment. It is a temporal version of price discrimination/yield management. 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 . It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price. -Wikipedia 4) A product pricing strategy by which a firm charges the highest initial price those customers will pay. i.-Lamb.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. -investopedia PRICE POSITIONING It refers to the process of differentiating your product on the basis of price. the firm lowers the price to attract another. then lowers the price over time.
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 REMARKETING . and to create strategies and marketing plans. Marketers use the information so obtained to understand the needs of individuals in the marketplace. it typically involves the construction of questionnaires and scales. It has roots in both the positivist view of the world. Price. As a social research method. 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. Place (location) and Promotion. People who respond (respondents) are asked to complete the survey.It is the application of quantitative research techniques to the field of marketing.
effectiveness of in-store display and promotion efforts. Retail-audit service providers gather information on a brand's sales volume. 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.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. 60% of them would also be retailing mobile handsets RETAIL MARKETING STRATEGY . For eg: • The metropolitan cities having a population of more than 15 million have more than 20.000 retailers of mobile SIM cards. sales trends. and other associated aspects. provided as subscription-based service by market research firms. stock levels.
Each type of retail business has to make decisions about all the details of its marketing mix. promotion and packaging. By this type of marketing the marketer creates a positive attitude in the minds of the consumers.Retail marketing strategy refers to how a store and its products sell goods to its target customers. Examples: • Hospitals provide various facilities like free health check-up • Celebrating world heart day for avoiding heart related problems ROUTINE BUYING BEHAVIOUR . price. A marketing mix consists of the product. 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. place. For eg: • Amway sells their product through direct selling • Hul sells their products through wholesaler . Internet marketing strategies and those for stores that people shop at in person must be developed to meet the needs of potential customers. A retail marketing strategy is first outlined in a business plan.
Many products are bought under condition of low consumer involvement & absence of significant brand differences. Example • Consumer involvement is very low in purchased products like salt. 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. often lower than the eventual market price. The marketer should generalize the brand and provide wide distribution of the product. 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 . to attract new customers. vegetables frequently PENETRATION PRICING It is the pricing technique of setting a relatively low initial entry price.
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.
PRODUCT DIFFERENTIATION:1) A marketing process that showcases the differences between products. an Ethernet cable. Examples:- . Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products. includes an Xbox 360 console. 3) Product Differentiation is concerned with the bending of demand to the will of supply. 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 Xbox 360 wired headset. This involves differentiating it from competitors' products as well as a firm's own product offerings. 5) The process of creating and designing products so that consumers perceive them as different from competing products.Product Appraisal Table:. an Xbox 360 250GB hard drive. 2) It is the process of distinguishing a product or offering from others. Final Fantasy XIII. and a Final Fantasy face plate. (-marketing concept and stratergies-biztantra-pride. This saves the customer roughly $35 compared to if these items were purchased individually.(-Smith) 4) It represents a product orientated approach that it is an ‘inside out’ management attitude to marketing planning. to make it more attractive to a particular target market.The Product Appraisal Table is a standardized layout for doing the comparison for Product Appraisal. This package sells at a price of $399.” for example. 2) In the fast food industry in which multiple items are combined into a complete meal. a standard definition Xbox 360 composite A/V/ cable. 2 Xbox 360 wireless controllers. PRODUCT BUNDLE PRICING:1) It is defined as “combining several products and offering the bundle at a reduced price”.fenell).
[Packaging] Tide costs $5 per bottle. 3) Duck Bags distributes its products more in Pondicherry and other areas where there is rainfall for longer duration in a year. [Pricing] Folgers coffee is made from Robusto coffee beans.00 per bottle.1) Wheaties is The Breakfast of Champions. 3) Making the goods available to the target market. product quality(different ingredient content) and brands. product differentiation through packaging. Millstone Coffee is made from Arabica beans. bran flakes. . 2) The ratio in which the finished goods is sent off to the market. Bran Flakes is. 2) Hera Honda its product available in all over India by a good distribution system. Examples:1) Pepsi has good production distribution system due to which it is available even in rural areas. 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. PRODUCT DISTRIBUTION:1) The process of making the goods available to the consumers from the manufacturers. The product launch signifies the point at which consumers first have access to a new product. PRODUCT LAUNCH:1) The debut of a product into the market. Safeway detergent costs $3. 2) The promotional plan for the introduction of a new product. well. (Both come from the same company BTW) [ingredients] 2) chocolate bars.
5) Hero Honda provides a wide range of Motor Bikes. 4) LG produces different varities of television. color. 3) HP produces a wide range of printers. that exists within the overall product mix. 4) Product lines: a group of products. 3) Pricing different products within the same product range at different price points. AC’s and other consumer durables. target at the same customer groups. . but may vary in terms of size. and marketed through same channels. 2) Nokia produces a wide range of mobile phones throughout the year which has different features. quality etc. PRODUCT LINE:1) It is a group of products that is closely related because they perform a similar function.2) Recently Mahindra launched its motor bike ‘Mahindra Stallio’ which is promoted by Aamir Khan. 4) Coca Cola recently launced its product ‘Minute Made Nimbu Fresh’ to attack Pepsi’s ‘Nimbooz’. offered by a firm. 5) Product Line: Product line is a collection of products. 2) Product lining is the marketing strategy of offering for sale several related products. 3) Samsung recently launched ‘Samsung Galaxy’ mobile phone. Examples:1) An example would be a video manufacturer offering different video recorders with different features at different prices. mobiles. Thus all products within a product line are related. 6) A set of related products sold by a single company. closely related by production or marketing considerations. that satisfy similar needs for different target audiences.
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. 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) . are the most popular and which are less so. (Marketing-TMH-Grewal and Levy) 2) It is the set of all products lines and items that a particular company offers to buyers.Colgate-Palmolive Product Mix. 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.(marketing management-asian books-s k sarangi). Ex:. 5) All of the different products that a company makes or sells. 3) The number of individual products produced or sold by an organization.
Examples:1) Coke in Taal was the first active product placement. or company. 2) Percentage or number of a sample that represent the population. product line. 3) While telecasting Cricket Tournaments companies generally promote their product by Ads which generally consists of Soft Drinks. usually categorized psychographically or demographically. brand. Exampes:- . PRODUCT RELATED SEGMENTATION:1) The method of identifying consumers by consumption or amount of product usage. Snacks. 2) Product Promotion involves disseminating information about a product.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. 3) Projected population 4) Degree of loyalty that consumers feel towards the brand. Automobiles. 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.
a drink at the end of a long and tiring work day. 10) Promotion is the process of marketing communication to inform. Examples:- . to persuade and convince them that those products have want satisfying capabilities. services. sales force. 4) Promotion is persuasive communication to inform potential consumers of the existence of products. 5) The method by which the benefits of those goods and services are communicated in an effort to justify the price.e. exhibitions. 9) Promotion helps people know that the right product at right price is available at right place. or the acceptance of ideas. 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. 8) Promotion is an important marketing strategy and is the sparkplug of the marketing-mix. advertising. is the ultimate indignity of the democratic process-Adlai Stevenson. products. direct mail etc. This is done by product related segmentation. like breakfast cereal. 2) Advertisements contain the only truths to be relied on in a newspaper. for unexpected guests. remind and influence consumers in favour of a product or service. 6) Communicating with the consumers under the relevant heading i.1) Rasna. for example is shown as being used in different situations like a party. sales promotion. public relations.Thomas Jefferson. etc 2) Taj group of hotels identifies those people who will be loyal to them even if they increase their prices. PROMOTION:1) The idea that you can merchandise candidates for high office. persuade. 7) Promotion is a form of communication with an additional element of persuasion to accept ideas.
They avoided beef and introduced vegetarian burger. It even promotes by giving Discount offers and lowest price on Wednesday. attitudes. or lifestyles of potential consumer groups. targets people who want good looking watches at reasonable price. 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. 2) Titan’s Fasttrack brand appeals to the young youth. a tiger as its promotional merchandise. 3) Titan’s value for money brand.1) Big Bazaar promotes itself by promising to have the lowest price products and in its Ad’s it uses Dhoni and Asin. Promotional Merchandise:1) These are articles of merchandise that are branded with a logo and used in marketing and communication programs. 2) Micromax mobile uses promotion strategy of sponsoring Cricket Tournaments and the Bollywood events. Sonata. 2) Psychographic segmentation is based on traits. 2) Parle Hippo Chips has a hippopotamous which is black in colour as its promotional merchandise. and then provided aside to customers or prospects. Examples:1) Nike uses a tick mark as promotional merchandise in all its products. It even promotes to have the latest technology at lowest price. . 2) Promotional Merchandise is anything that can be imprinted with your company info. PSYCHOGRAPHIC SEGMENTATION:1) It is the science of using psychology and demographics to better understand consumers. interests.
shirts and trousers as Rs 999 only or Rs 1299 only to the advantage of the consumers regarding pricing. 6) using price as a means of influencing a consumer's behaviour or perceptions. other firms. the government and the media – Kotler. PUBLIC RELATIONS:1) Includes communications directed internally to employees of the company or externally to consumers. and not round figures. PSYCHOLOGICAL PRICING:1) The recognition that buyer's beliefs and perceptions affect their evaluations of prices. 4) Setting the price of a product based on the wanted public perception for that product. etc target at time constrained customers. 3) Koutions price their products i. 2) Tata Sky has schemes which are priced as Rs149. 5) Refers to consumer perceptions of retail prices.4) Femina. Top Ramen. Rs 299 etc. 5) Instant Noodle manufacturers. 2) A variety of programs designed to promote or protect a company’s image or its individual products. Examples:1) Bata produces products which are priced like Rs99 or Rs599 or Rs999 to get the psychological pricing advantage. ready-to-eat. 7) A pricing approach that considers the psychology of prices and not simply the economics-Kotler. .Cabe Kline. fast-to-cook food brands such as Maggi. 3) Setting prices according to the psychographics of the aimed-at market segment. 2) A pricing technique that creates an illusion for customers or that makes shopping easier for them.e. a woman’s magazine is targeted at the woman with a broader world-view.
unlike advertising. spouse. (2) social and cultural environment and norms. and is influenced by factors such as the consumer's (1) societal role (parent.e. and (3) aspirations and inhibitions. 2) When ever any company need to address the media the generally the public relation officer makes the necessary arrangements for it. there is no direct payment from the originating organization to the media carrying the information.Sarangi Examples:1) When Honda Motors had to call back its Honda City model its PR manager had to give official statement about it. after consulting every one the final decision is made. –S. Examples:1) While buying a mobile a person will keep in mind the requirements from the mobile i. such as investors or governments. to include any other group that the organization wishes to influence.3) Mass-communications for which. etc. then look for the pricing. 2) Purchase decision making pattern that is a complex amalgam of needs and desires. PURCHASE BEHAVIOR:1) Purchase Behavior is the decision processes and acts of people involved in buying and using products. listening music.). worker. . quality camera. for official purpose. Then need to look for the products and the companies which satisfy the condition.K. etc. 4) to communicate information about the organization and/or its products and services to audiences that may go beyond prospective customers. 5) The total process of building goodwill towards a business enterprise and securing a bright public image of the company is called public relations.
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 method. purchase amount. dealer choice. 2) It is the aspects which are kept in mind while purchasing a product. product. Examples:1) While buying a Mobile Phone when all the requirements is satisfied and the buyer is satisfied with the brand. the consumer will (barring interference or unforeseen events) follow through and make the purchase. These aspects are the Product choice. purchase timing. payment scheme he /she makes the final decision to buy a particular mobile. PURCHASE INTENTION:- . brand choice. 3) The consumers preference among the brands in the choice set and the intention to buy the most preferred brand. 4) Having developed an intention to buy something. distributor.PURCHASE DECISION:1) The stage in the customer buying process when the purchase decision is actually made.
In order to know the customer and its expected buying process of segmenting and positioning is needed.Philip Kotler SELECTIVE DE-MARKETING It is a marketing strategy employed in a condition of overfull demand. attitude towards it and perceptions of it and of the company which produces it. You can calculate the profitability of a profitability segment by setting off its sales revenues against its costs. Out of the various steps. These processes are chronological steps which are dependent on each other. The marketer employs a selective de-marketing of their product. A profitability segment corresponds to a market segment. A profitability segment in an operating concern is defined by a combination of characteristic. 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. a few of them may be: increasing price. 2) Purchase Intentions the likelihood that a consumer will buy a particular product resulting from the interaction of his or her need for it. cancelling all incentives etc. Examples: . SEGMENT POSITIONING A marketing strategy is based on expected customer behaviour in a certain market.1) A plan to purchase a particular good or service in the future.Philip Kotler SEGMENT PROFITABILITY Object within Profitability Analysis to which costs and revenues are assigned.
holds that consumers and businesses. SELLING CONCEPT The selling concept. 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 selling concept is also practiced in the nonprofit area by fund-raisers. such as insurance and funeral plots. . The selling concept is practiced most aggressively with unsought goods—goods that buyers normally do not think of buying. The organization must. if left alone. selective de-marketing was employed • Goa tourism during the time of new year faces the same situation and hence adopts this type of marketing. it can gain adequate market coverage with more control and less cost than intensive distribution. business (segment 1) or economy class tickets (segment 2) . Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups.Philip Kotler SELECTIVE SPECIALIZATION This is a multiple segment strategy also known as a differentiated strategy. will ordinarily not buy enough of the organization’s products. undertake an aggressive selling and promotion effort. college admissions offices. An example of this would be airline companies offering first. This concept assumes that consumers must be coaxed into buying. another common business orientation. The company does not need to worry about too many outlets. so the company has a battery of selling and promotion tools to stimulate buying. with separate marketing programmed to attract the different groups.• Due to the high demand of I-phone. Most firms practice the selling concept . therefore. and political parties.
although this type of marketing plays a role in shopper marketing campaigns.Philip Kotler Provision of assistance to customers and clients • Examples Airtel provides mobile network. and if they don’t. shopper marketing is . In fact. But marketing based on hard selling carries high risks. that they won’t bad-mouth it or complain to consumer organizations and will forget their disappointment and buy it again. . In modern industrial economies. 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”. 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. the public often identifies marketing with hard selling and advertising. It assumes that customers who are coaxed into buying a product will like it. These are indefensible assumptions. Their aim is to sell what they make rather than make what the market wants. This differs from marketing targeted at consumers in general to get them to buy products. 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. something marketers that use hard selling should bear in mind.when they have overcapacity. Essentially. Prospects are bombarded with sales messages. bad news travels fast. one study showed that dissatisfied customers may bad-mouth the product to 10 or more acquaintances. As a result.
and roles and statuses of a person. pantaloons to customer providing benefits at many other outlets in addition to the discount provided. a website.g. interests and behaviour. or one which has only located one attractive market segment.marketing in the purchase environment. Social class is a type of stratification. .: Automobile companies like Mercedes. E. family. aimed at serving the segment as well as possible. Reference groups Reference groups influence a person’s behaviour directly or indirectly. SOCIAL CLASS: Sociology identified that social stratification is common among many societies. or a wholesaler. Audi. but those which do may pursue extensive advertising campaigns to get their messages out. E. which are hierarchically ordered and whose members share similar values. Membership card by retail stores like shoppers stop.: Frequent flyer scheme for regular user of an airline company. This is generally chosen by a smaller firm.g. Social classes are relatively homogeneous and enduring divisions in a society. SOCIAL FACTORS They include reference groups. whether that is a retail store. SINGLE SEGMENT STRATEGY A single segment strategy involves the firm choosing its single preferred market segment and targeting it with a single marketing mix. Not all companies use shopper marketing as a tool. and BMW targets the upper segment of the society.
to organizations. Statuses and roles People choose products that communicate their status in society. People absorb. Society shapes the beliefs. 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. almost unconsciously. co-workers. neighbours. a worldview that defines their relationships to themselves. Such groups are called aspirational groups. Persons have multiples statuses in different groups to which they belong. brothers and sisters. and to the universe. Family Family members constitute the most influential primary reference group or membership group. values.Groups having a direct influence on a person are called membership groups. and norms that largely define these tastes and preferences. People are influenced in the consumption and purchase decisions by groups in which they are members like family. sports teams etc. People are also influenced by groups to which they do not belong presently. but want to belong in course of time. friend circle. Each status has a role or group of activities to be performed. to society. Each person has a family of orientation that consists of his parents. Marketers have to aware of the status symbol potential of products and brands. to others. He has a family of procreation consisting of spouse and children. Examples: . to nature. Therefore the roles have some bearing on the consumption and purchase decisions.
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. and neglected social services. SOCIAL MARKETING CONCEPT Some have questioned whether the marketing concept is an appropriate philosophy in an age of environmental deterioration. wants. resource shortages. • 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. The societal . and long-run societal welfare. • 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. We propose calling it the societal marketing concept. long-run interests of consumers and society? The marketing concept sidesteps the potential conflicts among consumer wants. which holds that the organization’s task is to determine the needs.• Color of products in Islamic country is dominantly green for eg Colgate. • Shopping trends of various countries are persuaded by festive seasons for example in India people tend to shop around dhanteras. thumbs up. Yet some firms and industries are criticized for satisfying consumer wants at society’s expense. consumer interests. 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. Are companies that successfully satisfy consumer wants necessarily acting in the best. • HMT. explosive population growth. Such situations call for a new term that enlarges the marketing concept. world hunger and poverty. • South Asian countries like Thailand uses more vibrant colours as compared to country like France use subtle shades. Hyderabad-Bangalore side people shop during ramzan.
They must balance and juggle the often conflicting criteria of company profits. build sales. for example. the experience of the policy/portfolio/company is projected. an entire portfolio or an entire company. raise brand awareness. Pringle and Thompson define this as “activity by which a company with an image. Critics.1 for each product sale HUL did a Lifebuoy campaign to generate awareness of the importance of washing hands.marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. Based on a set of random outcomes. the model uses random variations to look at what investment conditions might be like. however. They see it as affording an opportunity for companies to enhance their corporate reputation. Yet a number of companies have achieved notable sales and profit gains by adopting and practicing the societal marketing concept. Smart companies will respond by adding “higher order” image attributes than simply rational and emotional benefits. complain that cause-related marketing might make consumers feel they have fulfilled their philanthropic duties by buying products instead of donating to causes directly. Then . and increase press coverage. consumer want satisfaction.’ for mutual benefit. increase customer loyalty. and the outcome is noted. Examples • Aircel launched ‘save the tiger’ campaign to develop awareness about saving the tiger • ITC generates funds for child education by donating Re. • STOCHASTIC MODELLING A stochastic model would be to set up a projection model which looks at a single policy. They believe that customers will increasingly look for demonstrations of good corporate citizenship. or service to market builds a relationship or partnership with a ‘cause. product.’ or a number of ‘causes. and public interest. But rather than setting investment returns according to their most likely estimate. Some companies practice a form of the societal marketing concept called causerelated marketing.
does not provide a good way of estimating the cost of providing this guarantee. a distribution of outcomes is available which shows not only the most likely estimate but what ranges are reasonable too. . this process is repeated thousands of times. but may be different e.this is done again with a new set of random variables.g. In fact. with varying scenarios for future investment return. for asymmetric distributions. Examples: A minimum investment return of 5% per annum. 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. A deterministic simulation. At the end. 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.
strategies. 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). Companies that discover marketing weaknesses should undertake a marketing audit. e. objectives. adequate marketing information (conducting timely. a comprehensive. ➤ The marketing-effectiveness review. and activities to identify problem areas and opportunities and recommend a plan of action for improving the company’s marketing performance. Unfortunately.34 The marketing audit examines six major marketing components: (1) the macroenvironment and task environment. 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. independent. systematic. appropriate marketing research). ➤ The marketing audit. Each company should periodically reassess its strategic approach to the marketplace with marketing-effectiveness reviews and marketing audits. STRATEGIC CONTROL From time to time.g Stochastic modelling builds volatility and variability (randomness) into the simulation and therefore provides a better representation of real life from more angles. and operational efficiency (using marketing resources effectively and flexibly). most companies and divisions score in the fair-to-good range on measures of marketing effectiveness. integrated marketing organization (integrating marketing with other key departments).This is useful when a policy or fund provides a guarantee. strategic orientation (developing formal marketing plans and strategies). (2) marketing strategy.
The problem is that rivals may emerge with still lower costs.(3) marketing organization. Michael Porter has condensed them into three generic types that provide a good starting point for strategic thinking: overall cost leadership. This best-practices excellence review rates a firm’s performance in relation to the best marketing and business practices of highperforming businesses. (5) marketing productivity. and physical distribution. The resulting profile exposes weaknesses and strengths and highlights where the company might change to become a truly outstanding player in the marketplace. Highly successful companies also perform marketing excellence reviews and ethicalsocial responsibility reviews to gain an outside-in perspective on their marketing activities. ➤ 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. and (6) marketing function (the 4 Ps). they need less skill in marketing. Every business strategy consists of a marketing strategy plus a compatible technology strategy and sourcing strategy. manufacturing. In addition. strategy describes the game plan for achieving those goals. or focus. differentiation. Although many types of marketing strategies are available. (4) marketing systems. such as . Firms pursuing this strategy must be good at engineering. Business success and continually satisfying customers and other stakeholders are STRATEGY FORMULATION Goals indicate what a business unit wants to achieve. purchasing. ➤ The ethical and social responsibility review. ➤ Differentiation: Here the business concentrates on achieving superior performance in an important customer benefit area. hurting a firm that has rested its whole future on cost leadership. ➤ The marketing excellence review. companies need to evaluate whether they are truly practicing ethical and socially responsible marketing. Texas Instruments uses this strategy.
political-legal. Sun Microsystems holds a weekly meeting with the firm’s top decision makers to brainstorm strategies for handling new threats. differentiates itself through leadership in technology. ➤ Focus: Here the business focuses on one or more narrow market segments. getting to know these segments intimately and pursuing either cost leadership or differentiation within the target segment. weaknesses. for each trend or development. Then. The chemical company Solutia.being the leader in service. Intel. but because strategic dimensions require different and often inconsistent ways of organizing the firm. Firms that do not pursue a clear strategy—“middle-of-the-roaders”—do the worst. It’s a way of monitoring the external and internal marketing environment. possible short-term scenarios for each strategy. Middle-of-the-roaders try to be good on all strategic dimensions. both companies are able to stay ahead of environmental changes. technological. distributors. and threats. quality. coming out with new microprocessors at breakneck speed. SWOT ANALYSIS SWOT Analysis – The overall evaluation of a company’s strengths. a business unit has to monitor key macroenvironment forces (demographic. A marketing opportunity is an area of buyer need in . these firms end up being not particularly excellent at anything. or technology—but not leading in all of these things. or best in serving some market segment. Strategy formulation in the age of the Internet is particularly challenging. style. opportunities. External Environment Analysis In general. highest in perceived value. for instance. and suppliers) that affect its ability to earn profits (see Chapter 4 for more detail). International Harvester fell upon hard times because it did not stand out as lowest in cost. copes by creating four different. This allows the firm to act quickly when it sees a scenario unfolding. and social-cultural) and microenvironment actors (customers. By revisiting strategic plans frequently. economic. Airwalk shoes. management needs to identify the associated marketing opportunities and threats. came to fame by focusing on the very narrow extreme-sports segment. competitors. for instance. a Monsanto spinoff.
which a company can perform profitably. It is therefore critically important to assess interdepartmental working relationships as part of the internal environmental audit. INTERNAL ENVIRONMENT ANALYSIS It is one thing to discern attractive opportunities and another to have the competencies to succeed in these opportunities. each business needs to periodically evaluate its internal strengths and weaknesses in marketing. but also exceed those of its competitors. financial. and organizational competencies. and major threats require the development of contingency plans that spell out changes the company can make if necessary. asks each department to annually rate its own strengths and weaknesses and those of the other departments with which it interacts. nor should it gloat about all of its strengths. Clearly. in the absence of defensive marketing action. If one department has weaknesses that hurt its “internal customers. Hero Honda . Honeywell.” Honeywell wants to correct them. Minor threats can be ignored. somewhat more serious threats must be carefully monitored. Sometimes a business does poorly because its departments do not work together well as a team. to deterioration in sales or profit. The best-performing company will be the one that can generate the greatest customer value and sustain it over time. The company’s success probability depends on whether its business strengths not only match the key success requirements for operating in the target market. the business does not have to correct all of its weaknesses. Thus. manufacturing. Opportunities can be classified according to their attractiveness and their success probability. 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. Threats should be classified according to seriousness and probability of occurrence. Mere competence does not constitute a competitive advantage. The notion is that each department is a “supplier” to some departments and a “customer” of other departments. An environmental threat is a challenge posed by an unfavorable external trend or development that would lead. for example.
This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. . security cameras. Samsung has 6. 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.• • • • • • • 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. Example: • In an ambitious endeavour. refrigerators. As these markets develop it can create new markets and new uses for products.000 networked homes that are outfitted with Internet-enabled ovens. In Korea.
of local to global scope. store. Rate of Technology transfer . academic. transmit. protect. • 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. the introduction of something new. IT deals with the use of electronic computers and computer software to securely convert.Technology transfer is the process of sharing of skills. application. materials or services. It is a network of networks that consists of millions of private. according to the Information Technology Association of America (ITAA). technologies. business. and retrieve information. Innovations Innovation can be seen as the process that renews something that exists and not. implementation. processes. It is closely related to (and may arguably be considered a subset of knowledge transfer. process. output. support or management of computerbased information systems.and wall-mounted flat-panel displays. particularly software applications and computer hardware". applications. knowledge. Discovery is the act of detecting something new. The Internet is a global system of interconnected computer networks and serves billions of users worldwide. development. input. 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. public. methods of manufacturing. and government networks. that are linked by a broad array of electronic and optical networking technologies. . as is commonly assumed. design. Samsung is looking to take the idea abroad.
A number of businesses and corporations currently use USPs as a basis for their marketing campaigns.Rate of Obsolescence: Obsolescence is the state of a being which occurs when an object.or it's free. or antiquated. Obsolete refers to something that is already disused or discarded. Typically." FedEx: "When your package absolutely. 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. service or practice is no longer wanted even though it may still be in good working order. 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. 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. 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. hot pizza delivered to your door in 30 minutes or less -. 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" .
Another definition is. ." Another way to explain TOMA is to ask. That way. Real Estate Agents. without prompting. 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. However. and Auto Dealerships are particularly reliant on Top of Mind Awareness." Thus. Companies that build brand awareness tend to also rank highly in "Top of Mind Awareness." TOMA has traditionally been defined as "the percent of respondents who. TOMA varies from consumer to consumer. TOMA correlates strongly with market share of a product. 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. Top of Mind Awareness is particularly important. "Top of Mind Awareness" is a way to measure how well brands rank in the minds of consumers. • For companies that conduct high-dollar transactions. "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.TOP OF MIND AWARENESS (TOMA) "When people think of you first to fulfill their product or service needs. "Owning the space that your product or service occupies between your prospects' ears. TOMA holds value for companies offering products and services of all transaction levels. Mortgage Brokers.
ebooks. OR and had their TV commercial star. If a large percentage of recipients forward something to a large number of friends. In March 2010. 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. Viral marketing depends on a high pass-along rate from person to person. It can be word-of-mouth delivered or enhanced by the network effects of the Internet.VIRAL MARKETING Marketing phenomenon that facilitates and encourages people to pass along a marketing message. The seventh video. Isaiah Mustafa. brandable software. or even text messages. Old Spice launched the fastest growing online viral video campaign ever. analogous to the spread of virus or computer viruses. Viral promotions may take the form of video clips. Facebook. ballooning over 23 million views after 36 hours. interactive Flash games. 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. reply to 186 online comments and questions from websites like Twitter. appears to feature the Swedish singer Jonna Lee • . Viral marketing and viral advertising. the overall growth quickly fizzles.7 million views after 24 hours. images. Old Spice's agency created a bathroom set in Portland. The campaign ran for 3 days. • On July 14 2010. Youtube and others. (buzzwords). If the pass-along numbers get too low. entitled 'b'. advergames. Digg. garnering 6. an anonymous package was sent to an MTV journalist claiming to contain a code which if cracked would give the identity of the artist. Reddit. the overall growth snowballs very quickly.
More recently. As supermarkets face heightened competition from store rivals and alternative channels. For this reason. These constant prices eliminate week-to-week price uncertainty and can be contrasted to the “high-low” pricing of promotion-oriented competitors. eMachines began selling its PCs for less than $500 without a monitor. It is a matter of reengineering the company’s operations to become a low-cost producer without sacrificing quality. Retailers such as Wal-Mart and Amazon. which has shifted from charging top dollar for cutting-edge computers to offering basic computers at lower prices. the retailer charges higher prices on an everyday basis but then runs frequent promotions in which prices are temporarily lowered below the EDLP level. Yet promotions are an excellent way to create excitement and draw shoppers. the most important of which is that constant sales and promotions are costly and erode consumer confidence in the credibility of everyday prices. Consumers also have less time and patience for such time-honored traditions as watching for specials and clipping coupons.000 to $30. targeting the 55 percent of computerless households with annual incomes of $25. with increased advertising and promotions. many are drawing shoppers using a combination of high-low and EDLP strategies.13 Value pricing is not a matter of simply setting lower prices on one’s products compared to those of competitors. Value pricing says that the price should represent a high-value offer to consumers. This is a major trend in the computer industry. For instance.VALUE PRICING Value pricing is a method in which the company charges a fairly low price for a high quality offering. which takes place at the retail level. everyday low price with few or no temporary price discounts. EDLP is not a guarantee of success. Compaq and others quickly followed suit. posting a constant. An important type of value pricing is everyday low pricing (EDLP). Monorail Computer started selling PCs in 1996 for as little as $999 to woo price-sensitive buyers. .000. and lowering prices significantly to attract a large number of value-conscious customers. Retailers adopt EDLP for a number of reasons. In high-low pricing.com use EDLP pricing.
George Silverman. How to Trigger Exponential Sales Through Runaway Word of Mouth . Davies. Grewal. mutually beneficial consumer-toconsumer and consumer-to-marketer communications. product or service. Cline. and A. 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. and making it easier for that conversation to take place.. R. but now includes any type of human communication. Originally the term referred specifically to oral communication (literally words from the mouth). It is the art and science of building active.W. email. Early-Entrant Advantage An unpaid form of promotion in which satisfied customers tell other people how much they like a business. Word of mouth is a reference to the passing of information from person to person. 2003. T. and text messaging. such as face-to-face. telephone.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.