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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. 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. often presented in such a way as to resemble an editorial. or electronic media. to persuade a target market to purchase or to consume that particular brand.• Advertising includes the name of a product or service and how that product or service could benefit the consumer. • An advertorial or infomercial is an advertisement designed to simulate editorial content. • Affiliate Marketing is an Internet-based business where affiliates are compensated for each sale brought about by there affiliate marketing efforts. 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. Walter Thompson • The activity of attracting public attention to a product or business. Oxford Dictionary Eg: Nike-Just do it. 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. J. Philip Kotler • An advertorial is an advertisement written in the form of an objective article. because affiliates often use regular advertising methods. broadcast. as by paid announcements in the print. AGE AND LIFE CYCLE STAGES .
emotional feeling. young adult. and a high-energy formula for people over age 50. or event—this is often referred to as the attitude object. such as a shampoo developed for women over 40 to help with age-related hair changes. • Attitudes are generally positive or negative views of a person. our opinions and beliefs and are based upon our experiences. or are closely related to. • Age and life-cycle segmentation The process of dividing the consumer market into different age and life-cycle groups. an adult version for adult men and women. situation). ATTITUDES • A person’s enduring favorable or unfavorable evaluation. Eg: a vitamin manufacturer may offer a children's formula for ages 4-12. adult. thing. positive. • Attitudes are usually defined as a disposition or tendency to respond positively or negatively towards a certain thing (idea. • Attitudes are judgments. and action tendencies toward some object or idea. Attitude towards the product are: enthusiastic. • An attitude is a hypothetical construct that represents an individual's degree of like or dislike for an item. Eg: A person’s attitude towards green product ( Eco-friendly product). Philip Kotler • Classification of different age groups of a target market on the basis of their life cycle stages.Consumer’s wants and abilities change with age. and older adult. indifferent. negative and hostile. The four basic 'Age and life cycle' categories are child. person. Some marketers will offer a product designed particularly for one specific segment of the age cycle. because consumer needs and desires change with age. ATTRIBUTE POSITIONING • . • Marketing concept that utilizes different marketing approaches for different age categories or different life-cycle segments of the population. object. place. Therefore. a vitamin specially formulated for young teenagers. age and life cycle stages are important variables to define segment. They encompass.
.The brand has a unique attribute i. These two attributes are necessary to build trust. Marketing and sales. and are essential to optimal results in marketing and sales communications. 100 km in 1 litre. • • • . relationship potentialities are primarily emotionally inferred (“gut feelings”) – rather than rationally deduced. Philip Kotler Eg: Bajaj Discover positions itself on its milage. the New Customer Majority. best educated and most sophisticated of purchasers.e. must integrate both empathy and vulnerability (honesty and openness) into marketing messages. Attribute positioning is usually a weak positioning as it does not explain the benefit to the customer. ➢ Implications: be sensitive to images that can stimulate negative first impressions. they are. especially with respect to autonomy and sense of personal validity. ➢ First impressions (which are always emotionally based) are more durable and more difficult to reverse than for younger adults. ➢ Implications: identify and employ images that promote strong positive emotional responses. in fact. It is probable that the strongest sources of negative impressions are images that conflict with idealized image of self. relationship building must precede presentation of company and product. and more on intuition (which is cued by emotional responses). etc. ○ Arun Kottoli • Attribute positioning. for baby boomers. and they are the wealthiest. Eight Progressive Changes in How Baby Boomer’s Minds Process Information: ➢ Less reliance on reason to determine what is of interest. BABY BOOMERS • baby boomer and older customers (born between 1948-1965) are the single largest consumer group in America. With more disposable income than any population in America. the message highlights one or two of the attributes of the product. Fastest. oldest.
➢ More resistant to absolute propositions. Avoid “jump cuts” and incomplete sentences.. ➢ Implications: take advantage of greater sensitivity to subtlety to expand the content of the message. technical information. . etc.) at a slow to moderate pace. baby boomers tend to want more information than do younger consumers. information content must be no greater than what the baby boomer wants at a given point in time. Resistance to emotionally neutral information (mainly processed in the left hemisphere of the brain) increases in midlife.➢ After a matter qualifies for interest and further attention. even deferential manner. ➢ Decreasing speed in rational processing of objective information.g. Whoever tells the best story and tells it best will most likely win. ➢ Perceptions are more holistic. ➢ Implications: present information on company and products in a qualified. Storytelling has become an important part of market strategy. ➢ Implications: Make greater use of story-telling techniques to get information across. ➢ Implications: manage the transaction continuum so that emotional cues are present when most advantageous. nuances and subtleties. Think Hallmark Cards – they surpass most in using stories to present products. ➢ Implications: Deliver objective information (e. then shift to “hard” or objective information when most advantageous. ➢ More sensitive to metaphorical meanings. product benefits and features. 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. Nonverbal symbols are effective in accomplishing this. ➢ More receptive to narrative-styled presentations of information. less responsive to information presented in expository style.
Some countries might have a special need and this means that you will have to develop a new product for their special need. BACKWARD INVENTION • • Reintroducing earlier product forms that can be well adapted to foreign country’s needs. Backward Invention is a product strategy in international marketing in which a company produces a less complex version of its domestic product for developing and less-developed countries.➢ Implications: Project an interest in the “whole” person. BALANCED INCOMPLETE BLOCK DESIGN (BIBD) . web site or sales presentation fails to connect with a baby boomer’s idealized image of self. ➢ Understanding how a baby boomer’s brain and mind processes information is key to effective communications. also. single dimension contexts (e. This is an example of backward invention. avoid depicting representatives of target markets in flat. If an ad. 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. For instance.. TV or radio spot. simply showing consumers using or talking about the product without reference to a larger context). There it is yellow and Ronald is also known as Uncle Suk-Suk. National Cash Register Company reintroduced its crank-operated cash register at a lower cost for South American and African markets.g. not just the facet that might need a particular product or service. • • • Eg: Mcdonald’s mascot Uncle Ronald’s face is white in all the countries except in Japan and other east Asian countries. it is more likely to be ignored. there may be a need for pure water in certain countries and you invent a machine that purifies water.
two types of barriers: ➢ Entry barrier ➢ Exit Barrier from the market. Many governments impose restrictive regulations . which type of marketing statergy to use for a particular target market. ➢ The question is: Which tips are to be tested on the first coupon. ➢ 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. BARRIERS: • Majorly.• • • The Balanced Incomplete Block Design (BIBD) is a well studied experimental design that has various desirable features from a statistical perspective. ➢ An incomplete block design is simply one in which there are more treatments than can be put in a single block. BIBD in marketing is: ➢ In some randomized block designs. This is a statistical tool. if information is desired on all four tips ? ➢ A solution to this problem is: to use a balanced incomplete block design. ➢ 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. which on the second and so on. used to verify are assumptions and observations and also to obtain new results. barriers of entry do exist. Protectionism is one that comes to mind. 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. ➢ Although it goes against the practice of free trade. ➢ For example. it may not be possible to apply all treatments in every block.
A niche target market is a specific group of consumers who have a specific requirement. ○ High Switching Costs and Product Differentiation ○ To increase customer sales.so they should concentrate on building rapport with their own niche target markets to boost their presence in the market. ➢ Types of entry barrier and methods to overcome them: ○ High Capital Requirements High capital requirements are inherent in start-up businesses. the same way established companies are able to do . This can be expensive for customers as they may already be comfortable with their current facilities and fees. not nitch). however. financial planning is of the essence here. Small-businesses have to find their own niche product or service that will be able to cater to this group of people. Similarly. .such as high tariffs and quotas in order to protect local businesses from foreign takeover. but is incumbent on a strong business plan with a reasonable but promising financial forecasts. Small companies are generally unable to reach out to the masses. small-businesses have to win over consumers from exisitng providers. ○ The way around here is to create a niche (pronounced neesh. Small companies have to learn to work within their means. Financing for small-scaled businesses is. 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. high-scaled branding and advertising that translates into product differentiation will entice consumers to remain with their larger providers. Again. Financial resources can be a massive barrier especially if a company is reliant on expensive raw material. This allows smaller companies to demonstrate their own expertise and product branding. available.
The portions of the capital investment that cannot be recovered. ○ There are ways to overcome this hurdle. it is easy to lose out on business opportunities to the big corporations in the market. Because of this. • Exit Barrier: Divestment can be an appropriate and profitable strategy. Alternatively. fairly non-technical and makes small business owners accessible to billions. small-firm owners may quickly work their way up to larger distribution channels. demographics or the surrounding content. such as the pages they have . but the decision to divest is complicated by the presence of several barriers. sunk costs. One way would also be to concentrate on a niche product or service. The Internet is a potent tool in today's business world. Networking and marketing via the net is cost-efficient. This would help eliminate the main competition with the big players in the market.○ Lack of Access to Distribution Channels ○ Small businesses have low bargaining power and usually begin with shaky business networks. especially where distribution channels are concerned. create a barrier to exit BEHAVIORAL TARGETING • • Behavioral Targeting is a technique used advertisers to increase the effectiveness of their campaigns. Eg: Behavioral targeting uses information collected on an individual's web-browsing behavior. If the Internet marketing strategy jives with the business model. Behavioral marketing can be used on its own or in conjunction with other forms of targeting based on factors like geography. ○ Another popular way is the use of Internet marketing. small companies can find ways to "complement" the networking channels (with their niche products and services) to increase bargaining presence in the industry.
regular user 4. speed 3. Ex-User. marketers divide group on the basis of their knowledge of. Benefits: Quality. Fair & Lovely . medium. Practitioners believe this helps them deliver their online advertisements to the users who are most likely to be interested. It is divided into 7 categories: 1. desirous. The key themes or concepts an organization . informed.visited or the searches they have made. Medium. service. Bajaj Discover. or response to the product. Usage Rate: Light. the seller may ask for a premium for these over random advertising or ads based on the context of a site. User status: Non-user. Sny Electrical appliances. Eg: Cadbury Celebrations. Heavy 5. Behavioral Targeting allows site owners or ad networks to display content more relevant to the interests of the individual viewing the page. On the theory that properly targeted ads will fetch more consumer interest. positive. intending to buy 7. potential-user. BEHAVIORIST SEGMENTATION Behavioral segmentation. economy. Loyalty status: None. Readiness stage: Unaware. to select which advertisements to display to that individual. negative. BENEFIT POSITIONING • A positioning option that features a distinctive customer benefit. Godrej Hair dye. absolute 6. Occasions: Regular. and then communicating this distinctiveness through advertising. attitude towards. First-time user. interested. use of. Attitude towards product: Enthusiastic. 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. MTR Ready to eat food. strong. Special 2. hostile. aware. indifferent.
packaging. The lonely Maytag repairman. freight pallets. should all reflect and translate the brand’s position into the appropriate form for the media. and they have many choices to fill the needs they have. The shipping cartons. shelf displays etc. who symbolizes reliability. Difficulty in either suggest that a position is to fuzzy to be of value to the brand. If. 4.features for communicating the distinctiveness of its product or service to the target segment. If a brand’s position lacks distinctiveness it will be forced to compete on the bases of price or promotion. advertising. • Benefit positioning can be used if the brand perceivably differs in its ability to deliver a specific benefit. marketers seize upon some attribute in their product which is different but in reality is of little concern to customers. “We try harder because we are #2” established Avis as a major league competitor quickly and simply. for example. expensive strategies that will not build brand equity in the long term. is an example of a powerful position based on the quality built into the appliances. This is a waste of time and money. envelope franking. promotions. Coherence Speak with one voice through all the elements of the marketing mix if you wish to create a strong position. 2. Distinctiveness People have few needs that are unfulfilled. a brand that is positioned as premium quality and price appears in an endaisle “sale” display. There are seven qualities that help to make a successful position: 1. 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. Often in their search for differentiation. 3. its quality image will suffer. Clarity A position should be easy to communicate and quick to comprehend. Relevance Positions that do not focus on benefits that are important to people or reflect the character of the product will fail. • .
will yield growth in sales and profits and a consumer franchise who believe that your brand has no adequate substitute. rather it is a deliberate attempt to influence events. someone else would be enjoying the profits of this powerful brand position. It is much easier to defend an appeal to everyone with a rather generic sales pitch. ( Thinkertoys Michael Michalko ) . The ADA approval was the key to launching the brand to over 40% of the market. Courage It goes without saying that adopting a strong brand position requires bravery. • Adopting a strong position is not a passive act. Had P&G lost patience after two or three years. Patience Crest has dominated its market for over thirty years. Once a position is adopted. 7." Brainstorming business ideas should be uncensored. No idea is dumb or impossible. BRAINSTORMING • Brainstorming is a group creativity technique that was designed to generate a large number of ideas for the solution of a problem. You must believe that the position makes strategic sense for the brand and then stick to your guns. and if successful.5. it takes commitment to see it through. 6. even if it costs more. When it was first introduced positioned as a cavity fighter its share never rose above 13% for three years. and each person's contribution is equally valuable. 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. in the face of criticism and pot shots. It requires ignoring certain business targets in favor of others.
• • BRAND . In this process nothing is too silly or farfetched to be suggested. ( 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. 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.• Brainstorming technique for breaking out and generating innovative business. product. i-Phone launches by Apple Inc are based on several new technologies and concepts which is a result of various Brainstorming activities. The team will gather in a group and throw out spontaneous ideas without evaluation until they hit upon something that may be useful. ( Thinkertoys Michael Michalko ) Idea-generating technique often used in advertising by a creative team to spark creativity. ( 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.
words. symbol. service. packaging. services. or concept that is publicly distinguished from other products. A brand name is the name of the distinctive product. service. For many products and companies.• An identifying symbol.) A brand is a product. sign. • • • EXAMPLES • Heinz is a leading global food manufacturer with a very strong family brand. Managing Brand Equity. it also operates many well-known individual brand names. (Tom Peters) The intangible sum of a product's attributes: its name. Branding is the process of creating and disseminating the brand name. its history. its reputation. Linda McCartney Foods (vegetarian meals) and Weight Watcher’s Foods (diet/slimming meals and supplements). and price. (David Ogilvy's ) Brand is the personality that identifies a product. and the way it's advertised. or combination of them) and how it relates to key constituencies: Customers. Usually brands are registered (trademarked) with a regulatory authority and so cannot be used freely by other parties. Examples include Farley’s (baby food). or design. (Aaker. David (1991). or concepts so that it can be easily communicated and usually marketed. branding is an essential part of marketing. Branding can be applied to the entire corporate identity as well as to individual product and service names. and Investors etc. or concept. or mark that distinguishes a product or company from its competitors. Staff. However. term. service or company (name. Microsoft XP and Microsoft Office in personal computing software and Heinz Tomato Ketchup and Heinz Pet Foods Mc Donald’s in India • • . Partners.
President Loblaw Companies) • Brand Affinity includes various aspects of consumer like Ego . (Dave Williams. (Neumeier. 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 . 2.BRAND AFFINITY • Brand Affinity is the likelihood to purchase a particular brand in a free choice situation. Cosmopolitan . or concept by directly interacting with . Society and most important Association. 3. functional . • EXAMPLES • • Heineken is renowned for being the first truly international Beer brand. tangible product attributes and of course the price being charged for them. It needs to be validated through consumer behavior. How well the service/experience has been delivered now and in the past. emotional and social relevancy linkages. Native . Emotional . How well the brand reinforces the value proposition – its attitudinal. brand. How well the product configuration delivers value – the customer relevant. Marty ) brand’s affinity relationship can be understood and managed by focusing on three key aspects: 1. service.
Tiger Woods (Golfer) with the Aim of talking about precision. Accenture . Sharma) The buzz Marketing campaigns. B. and typically is intended to be attractive in physical appearance • "a diplomat.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. credible personalities to promote and give greater visibility to its brand products(Neumeier.Rahul Dravid (Cricketer) Santro . spontaneous personal exchange of information instead of a calculated marketing pitch choreographed by a professional advertiser (Lassar. A promotional model can be female or male. Mittal and A.. simply referred at as BUZZ. a representative of an organization. The Buzz marketing is a type of publicity spread among customers and consumers in a positive society. causing an • . is an expression tool used in a word-of-mouth marketing strategy or manner. institution or corporation that best portrays the product or service(Neumeier. Marty ) EXAMPLES • Toyota has roped in actor Aamir Khan as its Brand Ambassador for its utility vehicle Innova in India.potential consumers. W. Marty ) • The brand ambassador is a marketing model that employs trusted. Brittania .
Mittal and A. high-production short films released on BMW's website. W. (Lassar. Clive Owen. and is correctly associated with a particular product. W. Expressed usually as a percentage of target market. • BRAND AWARENESS • Extent to which a brand is recognized by potential customers. 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 is the • . of the advertising message. Expressed usually as a percentage of target market. Sharma) Extent to which a brand is recognized by potential customers. Similar to viral marketing. of making a noise around a new product or offer. B. Mittal and A. B... and even Madonna. and is correctly associated with a particular product. B. brand awareness is the primary goal of advertising in the early months or years of a product's introduction. it differs from it in the control of the content. The success of the BMW series has prompted many other car manufacturers such as Nissan to adopt a similar internet-based strategy. Within the first four months of release. Sharma) EXAMPLES • The Dojo of Pain program served to create buzz and generate awareness for the video game Red Steel.excitement and anticipation of the product or service(Lassar. W. as its name suggests.. the films attracted over 11 million views and sent BMW sells up 12% in 2001 alone. Sharma) • Buzz marketing is a marketing technique consisting. a launch title for the Nintendo Wii platform BMW launched a series of eight high-cost. (Lassar. Mittal and A.
consumer recognition of logos and other visual elements. Marty ) Brand equity valuation requires association of elements like changing market share. (Neumeier. (Neumeier. profit margins. Marty ) EXAMPLES • • NOKIA Brand awareness for its N-Series Mobiles Dove Brand Awareness for Dove Shampoo to gain market share and reinforce market leadership position BRAND EQUITY • 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. Marty) • EXAMPLES . brand language associations made by consumers. Therefore.primary goal of advertising in the early months or years of a product's introduction. there are very few factors that differentiate one product from its competitors. This is because for these products. • Brand awareness is an important way of promoting commodityrelated products. consumers' perceptions of quality and other relevant brand values. the product that maintains the highest brand awareness compared to its competitors will usually get the most sales.
for non-users it is based almost entirely upon uninformed impressions. wearing only and only high-end fashion brand shoes. Louboutin has lured women all over the world who deemed themselves to be brand conscious consumers. Since 1992. With shiny. his designs have incorporated the shiny. For users this is based on practical experience of the product or service concerned (informed impressions) and how well this meets expectations.• 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. BRAND IMAGE • Impression in the consumers' mind of a brand's total personality (real and imaginary qualities and shortcomings). Brand image is developed over time through advertising campaigns with a consistent theme. red-lacquered soles that have become his signature. Louboutin fulfills all four factors. • Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E". and is authenticated through the consumers' direct experience The perception that consumers have of a brand. Referring to the four consumer perception of brand equity. attitudes and beliefs. red-lacquered soles and high stillettos that differentiate Louboutin from other posh and luxurious shoe brands. • • EXAMPLES .
product category. Brand leveraging communicates valuable product information to consumers about new products. Brand Extension and Franchise Extension. but related. Thus. Consumers enter retail outlets equipped with pre-existing knowledge of a brand’s level of quality and consistently relate this knowledge to new products carrying the familiar brand. While coffee machines and coffee beans are in different product categories. EXAMPLES • 1>Bic is a strong brand name with years of experience in marketing low-cost disposable plastic products such as the Bic pen.• Brand Image of Nike and ADIDAS by providing Sponsorship in various sports events. 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. Bic is positioned well to introduce products that capitalize on these same basic strengths – products such as disposable razors and cigarette lighters. Also called Product Leveraging. • . Coffee™ brand coffee. Brand Image of Amul developed with the punch line that AMUL “The taste of India “. 2> The manufacturer of Mr. Coffee™ coffee makers used its brand name strength to launch Mr. 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.
2>Extent of the faithfulness of consumers to a particular brand. 2> Apple customers have the brand's logo tattooed onto their bodies. BRAND LOYALTY • 1>Brand loyalty. regardless of convenience or price. irrespective of the marketing pressure generated by the competing brands. 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. expressed through their repeat purchases. 4> Virgin Group. which was initially a record label that has extended its brand successfully many times. is an example of how passion among consumers has been instrumental in reflecting the loyalty to the brand. Brand loyalty is a result of consumer behavior and is affected by a person’s preferences. • . the motorcycle brand in the US. • • EXAMPLE • 1>Harley Davidson. Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels. in marketing. trains) to games stores and video stores such a Virgin Megastores. Loyal customers will consistently purchase products from their preferred brands. 3>When consumers become committed to your brand and make repeat purchases over time.• • 3>. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess. from transportation (aeroplanes.
Cadillac showcases proactive safety features. • EXAMPLES • 1>Coca-Cola has become a cliché of brand management. customer satisfaction. precision all weather controls. and upholding a brand so that the name is associated with positive results. and competition. product line. but focuses directly on the brand and how that brand can remain favorable to customers. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity. in-store presentation. Brand management involves a number of important aspects such as cost. improving. Nokia customers remained loyal to Nokia because they admired the design of the handsets or because of userfriendly menu system used by Nokia phones. Together these aspects contribute to differentiating Coke from rivals such as Pepsi-Cola.000 on a mass advertising campaign as early as 1892. the Atlanta-based company was already spending over US$ 11. BRAND MANAGEMENT • 1>Brand management is the application of marketing techniques to a specific product. Over time it also associated its brand with a bright red color. 2>The process of maintaining. .• 3>In Finland. or brand. which has applied a competitive pressure since 1898. Before branding or even management emerged as disciplines. Brand management is built on a marketing foundation. the hour-glass shaped bottle (1915) and the ribbon logo (1970). and infotainment luxuries such as Onstar. Its trademark was officially filed in the US that year and has consistently been displayed with the same script to this day. • 2>Cadillac's branding message extols the virtues of art and science.
in-store displays. . Brand switching is most common with products that have no great perceived variation in quality across brands such as bottled water. Also called purchaser. perceived risk. number of available brands. ownership (in case of goods). Party which acquires. Brand switching can be instigated by price promotions. or paper towels. frequency of purchase. desire for novelty. person-to-person BUYERS • A buyer is any person who contracts to acquire an asset in return for some form of consideration. or level of satisfaction with the most recent purchase. in exchange for money or other consideration under a contract of sale. perceived improvements or innovations in competitive brands.the in-vehicle safety. 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. changes in quality. or benefit or usage (in case of services). dairy products. superior availability. or agrees to acquire. • 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.
it stands on top of the brand portfolio as the ultimate identifier of the corporation. logo. 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. and quality of products and services. A corporate branding strategy creates simplicity.Branding can incorporate multiple touch points. Branding in the classic sense is all about creating unique identities and positions for products and services. 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 is an attempt to use corporate brand equity to create product brand recognition . 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. These touch points include. Definition 2: Corporations around the world are increasingly becoming aware of the enhanced value that corporate branding strategies can provide for an organization. treatment and training of employees. • CORPORATE BRAND Definition1: It is the practice of using a company's name as a product brand name .Corporate branding is not limited to a specific mark or name . advertising. customer service. Definition 3: Corporate branding is a serious undertaking that entails more skills and activities than just an updated glossy marketing facade with empty jargon. stationery. packaging. 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.• 2>Brand switching refers to a consumer’s use of more than one brand within a product category. Once this overall platform has been established and implemented. This ultimately will lead to the final brand architecture of the corporation and set the strategy for how branding .
and (3) aligning policies. H-P's chief marketing officer. a flexible strategy. WAL-MART offers low price and good values. and resources to realize that vision. which has successfully implemented a stringent corporate branding strategy ." says Michael Mendenhall. Examples: • HSBC. practices. Definition 2: Corporate strategy is the direction an organization takes with the objective of achieving business success in the long term. • Hewlett-Packard" Most people think we are just a printer company. That's why H-P is launching a new corporate branding campaign. it can charge more for its product--and customers will pay that higher price. "to recast itself as a broader technology concern." Coke vs.HSBC employs the same common expression throughout the globe with a simple advertising strategy based on the slogan “The world’s local bank. • • 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). Recent approaches have focused on the need for companies to adapt to and anticipate changes in the business environment. As their brand strategy is to provide good quality products at reasonable price. a generic soda. They attract more customers then other competitive brands.” This creative platform enables the corporation to bridge between many cultural differences.and brands will play an important role to achieve the corporate objectives. (2) envisioning a new or effective role for the firm in a creative manner. according to The Wall Street Journal.e. i. Because Coca-Cola has built a powerful brand equity. and to portray many faces of the same strategy. The development of a corporate strategy involves .
research and development.The corporate success depends on the vision articulated by the chief executive or the top management. It should not focus so much on today's problems. 1996). its position in the marketplace. and opportunity that can communicated as worthwhile to all employees. Is also concerned with the firm's choice of business. discovery. Strategic or institutional management is the conduct of drafting. Bic Pen Corporation expanded beyond ballpoint pen production into disposable cigarette lighters. disposable consumer item. which are normally dealt with by company visions and missions. but rather on tomorrow's opportunities. taking the environment in which it operates. implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. markets and activities' (Kay. EXAMPLES • At General Electric (GE) the corporate vision is 'We bring good things to life'. 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. a sense of direction.establishing the purpose and scope of the organization's activities and the nature of the business it is in. and thus it defines the overall scope and direction of the business. it used the same plastic injection moulding technology and similar distribution channels to sell what was essentially another mass-marketed. personnel and marketing. finance. For a vision to have any impact of the employees of an organization it has to be conveyed in a dramatic and enduring way. The Ford Motor Company vision is 'to become the world's leading consumer company for automotive products and services'. Definition 4: It must convey a significant stretch for your company. • • COUNTER MARKETING .
Instead of selling cigarettes. and then they use same methods to unsell them . 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 . TV ads for gambling and suicide help lines.it means they encourage a change to positive behaviour by same methods that have encouraged negative behaviour. it promotes a tobacco free lifestyle. Culture could relate to a country (national culture). a distinct section of .Save India".Definition 1:Advertising that takes a position contrary to an advertising message that preceded it. • • • CULTURE Definition 1: Culture is the way that we do things around here. It is advertising that takes a position contrary to an advertising message that preceded it. Such advertising may be used to take an opposing position on a controversial topic. or preventing certain transactions. Definition 3: Social marketers sometimes look at the methods that have been used to sell things. Many paper manufacturing companies mention at the back of their “product save paper save trees”." IPCL sells it's products and at the same time it promotes "Save Oil. "Social marketing is the systematic application of marketing along with other concepts and techniques to achieve specific behavioral goals for a social good. Definition 2: Counter marketing involves a marketer affirmatively repudiating demand including through avoiding unwanted customers.
you might just be on to a very powerful source of business. or an organization (corporate culture). and communicate it in ways that support a positive brand experience. culture includes all that we have learned in relation to values and norms. So. 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. mold it. services and customer service. It is widely accepted that you are not born with a culture.the community (sub-culture). beliefs and values held by the owner of the business. beliefs and religions. It’s hard to fake and it’s hard to change. A coffee shop which serves pretty average coffee. Management. Definition 3: Customer feedback should address the satisfaction level of individual customers. as well as allowing room for customer . if you can define it. It’s often a representation of the personality. tangible symbols of a culture. EXAMPLES • Coca Cola translating the name into Chinese without backtranslating it ("bite the wax tadpole"). Definition 2: Culture is small thing in the world of business. ultimately resulting in a horrible response from an insulted society. such as the Sydney Opera House or the Great Wall of China). • CUSTOMER FEEDBACK Definition 1: Here the company actively solicits expressed customer needs or feedback to improve its products. and that it is learned. Definition 2: Customer feedback is the process or specific instance of providing information to businesses about products. But. rituals and artifacts (i. customs and traditions. marketing and sales departments can all use customer feedback to streamline processes and improve profitability.e.
product or service review cards and telephone hot lines. they just go to this website and the front page lists the most requested product and feature ideas in order of demand! Dominoes Pizza . was being consumed and how it would be better. in this case pizza. commenting and all that jazz. . EXAMPLES • • • National Express.Now.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. Customer feedback may be solicited or unsolicited by the company. memberships. American Pacific Enterprises . 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. complete with Ding-style voting. 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. if Dell want to know what their users care about and are most hungering for. Cisco and Microsoft Knowledgebase Dell have turned user feedback into an entire social network site. Different types of customer feedback include surveys. This increased their bottom line. one of the UK's leading travel companies invites passengers to send text messages whilst riding the bus.This example is probably the most publicized company example of surveying their customers to determine how their product. • • CUSTOMER INTIMACY Definition 1: Customer intimacy is based on the ability of the supplier to become accepted and known as the regular partner. It’s a master stroke .comments.
its builds customer loyalty for the long term . • ." Welch believed in trying to know every employee and every customer. In the integration of their operations. sustainable competitive advantage. They often merge their operations with those of their customers. detect unrealized potential. suppliers become more than merely useful: They become indispensable. Creating high barriers to entry .Jointly develops customizable solutions Definition 4: Customer intimacy is the largest source of your growth.empowers the people actually dealing with the customer. EXAMPLES • IDEO's Innovation build bridges from one department to another. Welch even nicknamed GE "the grocery store".Definition 2: It is one of the three disciplines in the Treacy-Wiersema Value-Discipline Model on which an organisation may focus its energies. Segments and targets markets precisely . Customer-intimate companies bring an entirely fresh perspective. They discover unsuspected problems. just like a village grocer. supply chain and roadmaps with the customer . from your company to your prospective customers. Definition 3: A business strategy that focuses on the needs and wants of a specific type of customer. and in which the business tries to establish relationships with specific customers . Integrates business systems. 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. and create a dynamic synergy with customers. and ultimately from the present to the future Jack Welch's goal was to make GE "the world's most competitive enterprise. and profit. Everyone in your organization should practice it.
to assure customers they care and want to make things right.Banners and slogans say it. In a nutshell. the scenario is always the same for the seller – to make their product or service offering the preferred choice. when approached by competitors. Definition 2: But loyalty is more than just behaviour . When customer loyalty market research is effective. Customers make decisions about where to spend their time. These companies win by understanding their customers deeply and delivering exactly what they need. and why they buy. In any case. Moreover. loyalty means a customer wants to do business with you and does. 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. and effort daily.• Nordstrom's and IBM. Advertising focuses on it. money. Definition 3: Loyalty can be defined as customers continuing to believe that one organization’s products/services offer remains their best option. multiple times a day. are not interested. They take that offer whenever faced with that purchasing decision. often in a customized way. 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.It is a fallacy to assume that a customer is loyal just because they continue to buy from you. in fact. It meets their value proposition whatever that may be. why they defect. There are many reasons why a customer repeats purchasing which have little to do with being really loyal. CUSTOMER LOYALITY RESEARCH Definition 1: Most businesses today recognize – or at least pay lip service to—the importance of customers and their loyalty . Definition 4: It means that they do not seek out competitors and. And customer service departments have become a standard. Definition 5: Customer loyalty research is designed to help companies identify why customers return.
" • CUSTOMER MARKET Definition 1: Customer market" is a term for the portion of available customers who currently patronize a business. complaints and experiences relayed .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. EXAMPLES • At Maritz. usually for a product or service. Keeping in tune with the desires. Definition 2: Customer marketing is designed to help a business understand customer complaints by tuning in to the voice of the customer. It’s not surprising that our customer satisfaction consulting accounts for over 20% of total customer satisfaction research expenditures in the United States. because we deliver unparalleled. which is called "InCircle. behaviors and demographics again and again. Most frequently used in business marketing. Neiman Marcus is credited with creating the first customer loyalty program in the retail industry. actionable insights into customers’ attitudes. multidimensional loyalty research is designed to provide comprehensive data and clear solutions. Businesses often give surveys to customers to get feedback that gives them a clearer understanding of how customers think. A customer market can grow and shrink due to changes in the business environment. Maintaining a stable or growing customer market ultimately depends on keeping the existing paying customers of the business happy. a customer market can sometimes be called the market or customer base for a business.
whether it sells directly to individuals or other businesses. Once you have this knowledge. you can use it to persuade potential and existing customers that buying from you is in their best interests. Interviewing customers provides the team with up-todate information on customer priorities.by customers helps a business better streamline the customer experience. PR and relationships with their actual customers and admirers through various Ducati clubs. and identifies emerging opportunities. 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. 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. 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. EXAMPLES . CUSTOMER NEEDS Definition 1: It is easy to make assumptions about what customers want and need. Definition 2: Problems that customers intend to solve with the purchase of a good or service. clarifies likes and dislikes. 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. Definition 3: Knowing and understanding customer needs is at the centre of every successful business.
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 spoken of and ones which companies compete for. An example of this would be package of milk that leaks. One-Dimensional : These attributes result in satisfaction when fulfilled and dissatisfaction when not fulfilled. you would follow up with an e-mailed discount. 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. they are often unspoken. These are attributes that are not normally expected. Must-Be : These attributes are taken for granted when fulfilled but result in dissatisfaction when not fulfilled." which might have an incentive to make a second purchase. convenient and personal way. You are using customer behavior over time (the customer Life Cycle) to trigger the marketing approach.• • Sending new customers a "Welcome Kit. If 60 days pass and the customer has not made a second purchase. Since these types of attributes of quality unexpectedly delight customers. “customer relationship blogs” because it allows companies to interact and connect with customers in an immediate. Customers are dissatisfied • • . but if it only contains six percent then the customer will feel misled and it will lead to dissatisfaction. a thermometer on a package of milk showing the temperature of the milk. but do not cause dissatisfaction when not fulfilled. 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. 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. For example.
and they do not result in either customer satisfaction or customer dissatisfaction. Find information and methods about how to gather and . 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. For example. It will explain the satisfaction of the customer. It is designed to identify areas needing improvement. • 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. but there are also many "business to business" (B2B) or wholesale-level projects commissioned as well. Many firms are interested in understanding what their customers thought about their shopping or purchase experience. but when it does not leak the result is not increased customer satisfaction. • Indifferent : These attributes refer to aspects that are neither good nor bad. because finding new customers is generally more costly and difficult that servicing existing or repeat customers. A survey might be used by a retail store chain wanting to know how customers feel about their stores. Product registration form provides an excellent opportunity to do market research. Reverse : These attributes refer to a high degree of achievement resulting in dissatisfaction and to the fact that not all customers are alike. This survey attempts to find out how various factors affect a customer's buying decision. Definition 2: Understanding your customers is a critical element of providing customer service. Many people are familiar with "business to customer" (B2C) or retaillevel research. 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). some customers prefer high-tech products. That means communication and data gathering.
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. and help you establish fool-proof procedures that ensure prompt action is taken when a customer is unhappy with the products or services received.satisfaction levels. surveys. You can quickly customize the form to reflect the work flow of your company. Mineful's market research software and online questionnaire tool helps you::: Create online surveys using an intuitive wizard interface. and easily analyzing and reporting data. View your data and create reports and graphs online. 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. Mineful is a web based software for creating online surveys. use of focus groups. • CUSTOMER SERVICE Definition 1: Customer service is the provision of service to customers before. provide for an orderly hand-off to someone who can address the matter. Send invitations and track respondents using uploadable email lists. including attitude knowledge.make sense of customer information . during and after a purchase. building business web forms. technical support and quality of service in a timely manner" EXAMPLES . Definition 2: "Customer service is about treating others as you would like to be treated yourself". EXAMPLES • Many companies have easy-to-use form designed to aid in the quick resolution of customer service problems.
. if equal to fair price. zero. if more than the fair price. Surplus is the difference between the fair price and the price actually paid. the surplus is positive. Customer can send a secure email to them at anytime day or night. negative.• Bank of America has a 24 hour customer service. They provide their customer the required support. If the price the customer pays is less than a fair price. • 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.
.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.
If the current highest bid is only £128. In these markets. CUSTOMER VALUE ANALYSIS Definition 1: Customer Value Analysis is a customer-survey methodology that helps customer increase market share. Only if someone bids more than £175. EXAMPLES • If a bid to buy the yacht. then the bidding site will show me as the new highest bidder at £128. If another bidder offers £140.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 for the item concerned. It works best in the business-to-business and consumer-durables markets.000. 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. customers make purchase decisions based on their perceptions of value. Definition 3: An organization's rating of the value it provides to its customers relative to that provided by its competitors. which are formed by their perceptions of quality and price. .000 (I can but dream!). but I might end up paying the full £175. customers flow from companies that provide inferior value to those that provide superior value. then they are getting more benefit from the purchased product than they spent to buy it.000 will I lose the auction. I might decide that I was willing to pay a maximum of £175. Definition 2: It shows how customers select between competing suppliers.000 then the bidder will be informed that this is not the highest bid but the new bid price will now be £140.000. In the aggregate.001.
and managing value. CVM solutions enable you to best respond to your customer needs in a timely manner. and amortizing acquisition costs over a longer and more profitable period of engagement. Survey results are used to manage the business at a fundamental level. a customer value manager will ask different questions than a traditional marketing manager. EXAMPLES • Company like colgate. reducing risk. analyzing. Art and science of measuring.Definition 4: The path to improved customer value starts with data. 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. While CVM can and does lead to better product offerings and more targeted campaigns. Definition 3: It is central to gaining the maximum lifetime value of managing customers by turning your data into Intelligent Information . A product's relative value is the customer-perceived performance-for-price relative to rival brands. 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. 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. Customer value analysis develops a quantitative picture of the markets in which you compete. they always mention the important parts of the product in their advertising such as it makes teeths . Customer value management enables companies to take full advantage of the economics of loyalty by increasing retention.
Purchase histories. marketers are increasingly using data mining procedures. and web site usage are just some of the data that reside in customer databases. and stored in a company’s contact center. (Philip Kotler. include it in their marketing. (Philip Kotler. • DATA WAREHOUSING • A collection of current data captured. sales.helps improve stain and much more. a data warehouse provides the basis for an analytical system • . customer service records.Marketing Management) Internet-based marketing strategies generate extremely large data sets from customer interactions. Data mining and data warehousing provide the means and the infrastructure for extracting strategic opportunity from knowledge of the customer.Marketing Management) IBM defines a data warehouse as a place that stores enterprise data designed to facilitate management decisions.they promote their product through advertising the essentials of the product.healthy. and segments from the mass of data. freez. financial records. DATA MINING • Extracting of useful information about individuals. In order to transform this mountain of diverse data into operationally useful information. • They always Ziploc has mentioned on their packaging fresh food always. In essence. organized. 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. 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. trends. and customer support operations.
warranty forms. Each customer generates a stream of transaction records over time. Data warehousing enables the firm to organize and store this data for analysis purposes. fails to fully disclose . Data sources may include scanner data.S. call reports. or by whether you order a salad with your pepperoni pizza. billing records. Data warehouses exist to support the decisionmaking process by providing ready access to market and customer data. and store potentially useful data about customers and markets for decision-making purposes. In order for this data to be useful. customer service inquiries. supplier. Firms collect data from these day-today business operations. date of last order. channel member. Example: PIZZA HUT Pizza Hut claims to have the largest fast-food customer data warehouse in the world. Advertising is considered as such when it makes spurious claims about a product. The millions of customer records are gleaned from point-of-sale transactions at its restaurants.S. DECEPTIVE ADVERTISING • Any advertising intended to mislead the consumers. households—or between 40 and 50 percent of the U. Pizza Hut has not only been able to purge expensive duplicates from its directmail campaigns. and web site data. Deceptive Advertising is illegal. Using its Teradata Warehouse Miner. Simply put. application. Data warehousing enables marketers to capture. it is often organized and stored in a data warehouse. Pizza Hut can slice and dice data by favourite toppings. market. Every record of a transaction or interaction with a customer. By careful analysis of this and other data. organize. but can also target its marketing to find the best coupon offers for each household and predict the success of campaigns. with 40 million U. or sales person is an opportunity to create knowledge. 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.where periodic data points are collected and stored at specified times for future analysis. registration forms.
non-routine problems. management control and operations control. celebrity endorsers and retailers may all be accused of engaging in deceptive advertising. resources and policies of the organisation. a medium-sized food manufacturer in an East African country faced strategic decisions concerning its range of pasta products. some years ago. something that engages most of a managers time. Advertising agencies. The • . 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. in a neighbouring country. Moreover. A major problem at this level of decision making is predicting the future of the organisation and its environment. However. It is one of the areas that information systems have sought most of all to affect (with mixed success). Clemente) DECISION MAKING: • Decision making is often seen as the centre of what managers do. Concepts and Applications By Mark N. These products constituted a sizeable proportion of the company's sales turnover. unit costs were shooting up due to increasingly frequent breakdowns in the ageing equipment used in pasta production. 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. For example bait and switch advertising by the retailers is considered as deceptive advertising. or otherwise creates false impressions. Decision making can be divided into 3 types: strategic. (The Marketing Glossary: Key Terms. The laws prohibiting deceptive advertising are enforced by the Federal Trade Commission. 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. For example. and matching the characteristics of the organisation to the environment. Strategic decision making: This level of decision making is concerned with deciding on the objectives. This process generally involves a small group of high-level managers who deal with very complex.information about it.
including: selling of trucks. Determining which units or individuals in the organisation will carry out the task. and non-routine. this type of decision making focuses on adaptation of the marketing mix. important. its technological base etc. establishing criteria of completion and resource utilisation. Management control decisions are more tactical than strategic.g. 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. i. The implications of strategic decisions extend over many years. Operational control decisions: These involve making decisions about carrying out the “specific tasks set forth by strategic planners and management. its work force. They are novel. Within each of these levels.all of these tasks involve decisions about operational control. decision making can be classified as either structured or unstructured. Unstructured decisions are those in which the decision maker must provide insights into the problem definition.e. Management control decisions: Such decisions are concerned with how efficiently and effectively resources are utilised and how well operational units are performing. often as much as ten to fifteen years. The focus here is on how the enterprises should respond to day-to-day changes in the business environment. its capital equipment. or seeking to switch to carrying products or produce with a higher unit value where the returns to transport costs may be correspondingly higher. and so on. The manager (in this case the owner) has to decide between several alternative courses of action. increasing unit carrying charges to cover the deficit. it takes place within the context of broad policies and objectives set out by strategic planners. increasing promotional activity in an attempt to sell the spare carrying capacity.• • • decision is strategic since the decision has implications for the resource base of the enterprise. 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. evaluating outputs . e. Management control involves close interaction with those who are carrying out the tasks of the organisation. In particular. .
• • • and there is no well-understood procedure for making them. In contrast. problems have to be perceived and understood. To arrive at some answer. for example. the information system will report only those . design. once perceived solutions must be designed. information systems could assist in making such a decision. it is helpful to break down decision making into its component parts. consider a commercial organisation marketing a large number of different products and product variations. Suppose. However. have several influences. Structured and unstructured problem solving occurs at all levels of management. Intelligence involves identifying the problems in the organisation: why and where they occur with what effects. and involve a definite procedure for handling them so that they do not have to be treated each time as if they were new. The literature has described 4 stages in decision making: intelligence. Ideally. operational. For instance. whether sales targets are being achieved. Management will want to know. Making decisions is not a single event but a series of activities taking place over time. This broad set of information gathering activities is required to inform managers how well the organisation is performing and where problems exist. once solutions are designed. exciting applications are occurring in the management and strategic planning areas. most of the success in most information systems came in dealing with structured. It soon becomes apparent that the decisions are likely to be made over a period of time. especially if they are designed to report exceptions. 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. and management control decisions. use many sources of information and have to go through several stages. That is. Management information systems that deliver a wide variety of detailed information can be useful. In the past. It is worth considering the question of how. if at all. structured decisions are repetitive. the solution has to be implemented. where problems are either semi-structured or are totally unstructured. in more recent times. choice and implementation. choices have to be made about a particular solution. routine. at frequent intervals. finally.
Stages in the decision making process In practice. but without the aid of a formal information system. For example. managers can install a reporting system that delivers routine reports on the progress of a specific solution. and possible remedial actions. Choosing among alternative solutions is the third step in the decision making process. Here a manager needs an information system which can estimate the costs. we rely upon generalisation and/or intuition. Another scenario would be that having implemented a decision one quickly . because of the detailed analytic models required to calculate the outcomes of the various alternatives. some of the difficulties that arise. the government decides to increase the amounts held in the strategic grain reserve. one may have reached stage 3 and all but decided that having considered the alternatives of setting up no local buying points. This phase may require more intelligence to decide if a particular solution is appropriate. Consider again the problem of balancing the costs and benefits of establishing local buying points for the National Milling Corporation.• • • products/product variations which are performing substantially above or below target. The following table illustrates the stages in decision making and the general type of information required at each stage. Here. local buying points in all regions. Implementing is the final stage in the decision making process. This could cause the parastatal to return to stage 2 and reassess the alternatives. At any point in the decision making process it may be necessary to loop back to a previous stage. Designing many possible solutions to the problems is the second phase of decision making. districts or villages. Here. human beings are used to making such calculations for themselves. The information system required at this stage is likely to be fairly complex. Of course. choice and implementation. resource constraints. opportunities and consequences of each alternative problem solution. the stages of decision making do not necessarily follow a linear path from intelligence to design. more carefully specified and directed information activities and capabilities focused on specific designs are required. possibly also fairly large.
DEMAND ANALYSIS • Study of sales generated by a good or service to determine the reasons for its success or failure. the decision maker may have to repeat the design and/or choice stage(s). Management inputs data (qualitative and/or quantitative) into the system. Manufacturing companies regularly conduct market surveys and collect sales data to simulate demand and production requirements. DECISION SUPPORT SYSTEMS (DSS) • A computer based system designed to assist in management decision making. Demand forecasting involves techniques including both informal methods. And the market research that is done to analyse the demand in the market. (Such Systems may also be designed to recommend specific decisions). Concepts and Applications By Mark N. Again. .receives feedback indicating that it is not proving effective. what will be the impact on product sales in that area?” In marketing. DSS are often used in sales forecasting and in determining media schedules. LG franchisees must make a sales register to analyse the consumers’ responses to their product. The system then outputs information describing the implications of specific decisions. • • DEMAND FORECASTING • Demand forecasting is the activity of estimating the quantity of a product or service that consumers will purchase. (The Marketing Glossary: Key Terms. Clemente). Decision Support Systems enable management to conduct “what-if” analysis. and how its sales performance can be improved. Decision Support Systems are comprised of specially developed software and hardware. For example the management might ask: “If we increase the number of distribution outlets in a given area.
• • . in assessing future capacity requirements. Demand forecasting may be used in making pricing decisions. 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. education. demographic segmentation variables are amongst the most popular bases for segmenting customer groups. such as the use of historical sales data or current data from test markets. This is partly because customer wants are closely linked to variables such as income and age. Life-cycle stage A consumer stage in the life-cycle is an important variable particularly in markets such as leisure and tourism. there is often much more data available to help with the demographic segmentation process.e. gender family size. For example. and quantitative methods. income. As you might expect. So Marketers design. contrast the product and promotional approach of Club 18-30 holidays with the slightly more refined and sedate approach adopted by Saga Holidays. for practical reasons. package and promote products differently to meet the wants of different age groups. Vietnam and Africa. or in making decisions on whether to enter a new market. 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. Also. DEMOGRAPHIC SEGMENTATION • Demographic segmentation consists of dividing the market into groups based on variables such as age. Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments). occupation.• • such as educated guesses. race and nationality. religion.
Unfortunately. home furnishings.an up-market travel company. By contrast. Income Another popular basis for segmentation. Airtours holidays. leisure activities and other products & services. Good examples include Coutts bank. It is equivalent to the monetary difference between the two products’ .• Gender Gender segmentation is widely used in consumer marketing. 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. There is a clear link here with income-based segmentation. the values of which may be stated with certainty and are sufficient to describe the system behaviour. hairdressing. Lifestyle Marketers are increasingly interested in the effect of consumer "lifestyles" on demand. there are many different lifestyle categorisation systems.e. a model based on variables. The best examples include clothing. and discount clothing retailers such as TK Maxx. Moet & Chandon champagne and Elegant Resorts . Social class Many Marketers believe that a consumers "perceived" social class influences their preferences for cars. magazines and toiletries and cosmetics. many companies focus on marketing products that appeal directly to consumers with relatively low incomes. DIFFERENTIAL WORTH • The difference in the worth (economic value) of benefits delivered by one product versus a reference product. clothes. Examples include Aldi (a discount food retailer). Many companies target affluent consumers with luxury goods and convenience services.
Example: Mahindra tractors have different products for different segment of population. 5310. An example of differentiated marketing is a company that produces coffee and markets various types: regular. The reference product can be the average product (in the category or consideration set) or a specific competing product. and Shaktiman. with separate marketing programmed to attract the different groups.etc • • • • DIFFUSED PREFERENCES • This refers to pattern of consumer preferences in terms of various attributes of a product or service.positions on the fair-value line. decaffeinated. inventory and promotional activities. Eseries. This is because the company must modify its product and incur increased costs for specialized administrative. Nokia has various models catering to segments of the population. A strategic consideration where a company chooses to operate in more than one market segment and develops specific products and promotional strategies for each. Differentiated marketing creates more toatal sales than undifferentiated marketing. DIFFERENTIATED MARKETING • When a firm produces numerous products and promotes them with a different marketing mix designed to satisfy smaller segments. is likely to position its . instant etc. In this type of product market the company. Nokia 1110. Like Mahindra Ultra. business (segment 1) or economy class tickets (segment 2) . Differentiated Marketing tends to raise costs and firms may be forced to practice differentiated marketing to remain competitive. An example of this would be airline companies offering first. One of the preferences are known as diffused preferences where consumer preferences are scattered indicating that consumers vary greatly in terms of their preferences. Turbo. the costs of engaging in a differentiated are high. However. which enters first.
how well customers identify with the brand and its promise. Internet. b) Customer service – customer care activities that support the delivery of the product or core service. Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing. and f) Other costs – that the customer incurs in addition to the transactions price not necessarily paid to the supplier. . they are likely to position throughout the space and try to show real differences to match consumer-preference differences. If several brands are in the market. 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.product in the centre of the product preference map to appeal to the most people. Examples: Advertisements on television. As a result of this non-reliance on the Internet. display / banner ads and digital outdoor. This now includes Television. and peer-group approval associated with using the brand. the field of digital marketing includes a whole host of elements such as mobile phones. mobile and any other form of digital media. Digital displays in the malls for advertising. c) Relationship – customized connections and knowledge related to individual customers and key accounts. e) Price – the transactions price that the customer pays for the product. sms/mms. d) Brand affinity – KBFs relating to the authority the brand holds with customers. Radio. DIGITAL MARKETING • Digital Marketing is the promoting of brands using all forms of digital advertising channels to reach consumers.
e. DISPLAY ADVERTISING • Print advertising that appears in the editorial section of a publication and which usually features creative use of colours . or mass-media basis (infomercials.. Types of direct marketing include: distributing flyers. they can always be classified into these dimensions. minus personal current taxes equals disposable personal income. private) savings. • • • • DISPOSABLE INCOME • Disposable income is total personal income minus personal current taxes. FAX broadcasting. etc.direct channels to reach and deliver goods and services to customers without using marketing middlemen.Although the key buying factors will be different for different market categories. and make incentive-based information available to consumers. In national accounts definitions. She hoped purchasing a mailing list for consumer direct marketing in her home town would bring her new prospective home buyers faster than word-of-mouth alone. and voice mail marketing. Example: As soon as Beverly got her realtor's license she sent postcards to all the addresses listed in her zip code. personal income. private) consumption expenditure) yields personal (or. rather than via a mass medium.directly reaching a market (customers and potential customers) on a personal (phone calls. (Philip Kotler. offer.). curbside stands. contact. Direct marketing is just what it sounds like .Marketing Management) Sending a promotional message directly to consumers. DIRECT MARKETING • The use of consumer. coupon ads in print media. infomercials). door-todoor solicitations. Includes methods such as Direct Mail and Telemarketing. Direct marketing involves the business attempting to locate. magazine ads. private mailings) basis. Subtracting personal outlays (which includes the major category of personal (or. television marketing (i.
as does use of colour.and illustrations to maximise communication effectiveness. employment. Display ads vary in their design. Price and Promotion.e. Intermediaries are specialists in selling. real estate. Large display ads attract reader’s attention. using intermediaries means giving up some control over how products are sold and who they are sold to. Why does a business give the job of selling its products to intermediaries? After all. Display advertising contracts classified advertising. experience and scale of operation which means that greater sales can be achieved than if the producing business tried run a sales operation itself. DISTRIBUTION CHANNEL • Distribution (or "Place") is the fourth traditional element of the marketing mix. They have the contacts. business opportunities etc. Functions of a Distribution Channel . The other three are Product. The answer lies in efficiency of distribution costs. which are print ads categorized under separate headings i. The Nature of Distribution Channels Most businesses use third parties or intermediaries to bring their products to market. 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".
holding stock) The main function of a distribution channel is to provide a link between production and consumption.g. 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.Information Gathering and distributing market research and intelligence . 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. The question is . including grading. 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". 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.
Channel 1 is called a "direct-marketing" channel. In this case the manufacturer sells directly to customers. This arrangement tends to work best where the retail channel is fragmented .• • • • In the figure above. since it has no intermediary levels. not dominated by a small number of large.e. Channel 3 contains two intermediary levels . In consumer markets. Dixons and Currys which then sell the goods to the final consumers. this is typically a retailer. Many holiday companies also market direct to consumers.i. . A good example of this channel arrangement in the UK is the distribution of drugs. Panasonic. An example of a direct marketing channel would be a factory outlet store. the use of wholesalers makes economic sense. bypassing a traditional retail intermediary . sell their goods directly to large retailers such as Comet. powerful retailers who have an incentive to cut out the wholesaler. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony. 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.a wholesaler and a retailer. Canon etc. Channel 2 contains one intermediary. The remaining channels are "indirect-marketing channels". For small retailers with limited order quantities.
Intermediaries typically charge a "mark-up" or "commission" for participating in the channel. warehousing). Producers may also feel that they do not possess the customerbased skills to distribute their products. to whom and at what price a product is sold. there is no guarantee for a producer that their product/(s) are actually • .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". shop fitting etc. training. via mail order or perhaps over the Internet? Another important factor is buyer needs for product information. train and equip a sales team. how do buyer's want to purchase the product? Do they prefer to buy from retailers. display equipment. Many channel intermediaries focus heavily on the customer interface as a way of creating competitive advantage and cementing the relationship with their supplying producers. The willingness of channel intermediaries to market product is also a factor. since the retailer sets the price and any relevant discounts or promotional offers. Another factor is the extent to which producers want to maintain control over how. Retailers in particular invest heavily in properties. This might be deemed unacceptably high for the ultimate producer business. Similarly. 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 . Producer factors: A key question is whether the producer has the resources to perform the functions of the channel? For example a producer may not have the resources to recruit. They may decide not to support a particular product if it requires too much investment (e. the only option may be to use agents and/or other distributors. If so. they effective lose control over the final consumer price. installation and servicing. Another important factor is intermediary cost. If a manufacturer sells via a retailer.g.for example in the case of motor cars. locally.
retailer or distributor is used in a specific geographical area. bread) require relatively short distribution channels ideally suited to using intermediaries such as retailers. cigarettes. For example.• • been stocked by the retailer. For instance. This is called as doubtful positioning. beer).g. An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets and focus effort (e. Weight loss pills etc. In other words. Intensive distribution is usually required where customers have a range of acceptable brands to choose from.in other words . Another example will be the claims for various products in QVC channel: Oxyrich . Ashvini hair oil .which claims to clean better than all the leading brands. Distribution Intensity: There are three broad options . if one brand is not available.g. complex medical equipment sold to hospitals). many of the dot com • .g. Selective distribution works best when consumers are prepared to "shop around" . Exclusive distribution is an extreme form of selective distribution in which only one wholesaler. 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. meat. a customer will simply choose another. For many products. Direct distribution gives a producer more control over these issues. training) on them. Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products. a mutual fund offers 100% returns on investment. DOUBTFUL POSITIONING • Claiming a benefit that customers will doubt that the brand can actually deliver. total sales are directly linked to the number of outlets used (e.they have a preference for a particular brand or price and will search out the outlets that supply. Product factors: Large complex products are often supplied direct to customers (e.intensive.which promises to stop hair loss. Sometimes companies try and create brand among consumers even before positioning the brand clearly in the market.
where low-volume print runs are cost justifiable. 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. due to the low cost associated with sending multiple messages over time." a pre-written set of messages to customers or prospects over time. allows users to time messages and disseminate via Twitter. These messages often take the form of E-mail marketing. (2) the messages are dripped in a series applicable to a specific behavior or status of the recipient. LinkedIn. Drip marketing is unique from other database marketing in two ways: (1) the timing of the messages follows a pre-determined course. or "drips. Facebook. although other media can also be used. Examples: 1) Subscribers of newsletter receive them at regular intervals. and several other social media sites simultaneously. In this method. HootSuite. Direct Mail: Although more costly. and the variable data can be merged to personalize each drip message.companies spent heavily on television advertising without themselves being clear of what they were selling. Drip Marketing Mediums E-mail: The most commonly used form of drip marketing is Email marketing. DRIP MARKETING • Drip Marketing is a communication strategy that sends. Email drip marketing is often used in conjunction with a Form (web) in a method called an Auto responder. 2) Reminder of your membership of a website to be over soon. One popular tool. 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. direct mail software has been developed that enables drip marketing techniques using standard postal mail. • • • .
It is for companies which introduce their products in a new country. Kelly. Kelly. Jha) A decision to drop a PRODUCT from the line. Koshi. It means that you adapt the product to the local market. 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. (Basic Marketing. but also adaption for the commercial message. one of the longest running hit comedies on TV was deemed as ‘not very entertaining or original’. or to discontinue development of a new product which subsequently proves to have been a premature decision.DROP ERROR • It occurs when a company dismisses an idea which turns out to be good and successful later. (Marketing Management-Kotler. Jha) It involves altering both the product and the communications. DUAL ADAPATION • Adapting the product and the communication according to the local market(Marketing Management-Kotler. might have been successful if developed(International Marketing-Cateora Graham) ➢ The pilot for “Friends”.Cannon) .
(Marketing-Lamb.To make this option profitable. the foreign market or markets need to be of sufficient volume. DUMPING • The practice of selling a good in a foreign market at a price that is lower than its domestic price.Comfort went through a number of changes: a new logo and more modern packaging in 1992 and the first fully biodegradable formulation ➢ The classic example comes from National Cash Register. It recognizes the socio-cultural differences from country to country. It calls for extensive research and development expenses and tooling costs. which manufactured a crank-operated cash register and promoted it to businesses in less-developed countries. Hair.• 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. (Fundamentals of Marketing.Stanton and Futrell) ➢ Unilever fabric softener. (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. McDaniel) Practice of pricing a product in a foreign market below the going price in the domestic market(Marketing-Churchill and Peter) • . or below its cost.
( Marketing ManagementKotler. Jha) . and Ukraine. Indonesia. Koshi.either to meet foreign competition or to dispose of outmoded products (Fundamentals of Marketing. they tend to buy after they see that a product will work. EARLY ADOPTERS • The secondary category of buyers to try a product.Stanton and Futrell) • A situation in which a company charges either less than its costs or less than its charges in the home market. Kelly. Kelly. when foreign competitors were dumping pagers in the Japanese market ➢ Canadian steelmaker Stelco successfully fought dumping of steel products in Brazil. Jha) ➢ In 2002. Koshi. (MarketingGrewal and Levy ) • Selling products in the foreign markets at prices below the prices charged for these goods in their home market. in order to enter or win a market (Marketing Management-Kotler. Finland.• The practice of charging either less than its costs or less than its charges at home in order to enter or win a market. India. Thailand. hence US had to impose steel tariff on imported steel(Marketing-Grewal and Levy ) ➢ Motorola had to eliminate defects to save costs. foreign countries started dumping low cost steel in the US market.
a successful brand for sports car enthusiasts saw a decline in sports car sales after it entered the SUV mass market. They are less price sensitive and willing to adopt the product if given personalized solutions and good service support (Marketing Management-Kotler. art. Hair. as the early adopters moved onto their new products. product.• Category of buyers that don’t like to take much risk. Twitter’s success has shattered a widely held belief that young people lead the way to popularizing innovations ECONOMIES OF SCALE . wait and purchase the product after careful review.(Marketing-Pride. and other fields. Kelly. ➢ Twitter has been embraced by an older demographic.Engel) • • An early adopter or lighthouse customer is an early customer of a given company.Fredell. Jha) • • People who chose new products and are viewed as “the people to check with”.Grant) Opinion leaders and role models for others . Koshi. 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. in politics. with good social skills and respect within larger social systems. Blotnicky. or technology. (Marketing-Lamb. this person would be referred to as a trendsetter(Marketing-Grewal and Levy ) ➢ Porsche. who adopt to new social systems before others do(Consumer Behaviour-Blackwell. fashion.
000 cabinets at £250 each might expand and be able to produce 2. 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. • 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. (Basic MarketingCannon) Cost advantages associated with large-scale production. the profit margin per cabinet rises from £100 to £150. Economies of scale refers to the notion of increasing efficiencies of the production of goods as the number of goods being produced increases. a business could choose to maintain its current price for its product and accept higher profit margins. They simply Joint Venture with FedEx and use • • • • . This poses a threat to smaller businesses that can be “undercut” by the competition Secondly. 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. airplanes. Assuming the business sells the cabinets for £350 each.• Economies of scale arise when the cost per unit falls as output increases. a furnituremaker which could produce 1. They don’t have huge overhead. For example. they are piggybacking on FedEx by being an intermediary.000. then reselling it. or branding. The total production cost will have risen to £400.000 cabinets at £200 each. but the cost per unit has fallen from £250 to £200.000 from £250. because a large business can pass on lower costs to customers through lower prices and its share of a market. Why are economies of scale important? Firstly.
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. the merger of two competitors. This gives the company tremendous bargaining power with its suppliers. Jha) Any factor in the market. Koshi. its size allows Wal-Mart to do its own purchasing more efficiently since it has roughly 5. And everybody wins: FedEx. For example. the company's size provides it with enormous efficiencies that it uses to keep costs low. the development of new technology.000 large stores worldwide.Cannon) • An unfavorable condition in organization’s environment which creates a risk or causes damage to the organization . An environmental threat might be the entrance of a new competitor. external to the marketing organization.economies of scale. As a dominant player in retailing.Stanton and Futrell) • • Challenges posed by an unfortunate trend -lead to erosion of company’s position(Basic Marketing. (Fundamentals of Marketing. or social and economic trends. that has the potential to negatively impact demand for the marketer's product or service. the introduction of a new brand. The marketer must be positioned through competitive intelligence and other market trend research to respond quickly to environmental threats. ENVIRONMENTAL THREAT • A challenge posed by an unfavorable trend or development that would lead to lower sales or profit(Marketing Management-Kotler. Kelly. legislative changes.
legal. Koshi. social. 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. and legislative pressure against smoking. (Marketing Management-Kotler. Jha) The practice of keeping track of external changes-economic. political.Net faces the following threatsRival companies such as HP. Oracle and Sun are developing similar products The challenge of getting the customers and software developers to focus on the . medical. technological and competitive forces that can affect markets. including demand for goods and services. Kelly. events and relationships in the external environment that may affect the future of the organisation or the implementation of the marketing plan(Marketing-Lamb. ➢ Microsoft.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.➢ the tobacco industry has faced numerous environmental threats due to increased social. McDaniel) • . (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. Hair. (Marketing-Churchill and Peter) Collection and interpretation of information about forces. institutional.
Fredell. after analysing the economic conditions in Europe. a tax preparation service. (Marketing-Grewal and Levy) Process of comparing different products and brands based on standards and specifications(Consumer BehaviourBlackwell. creating new models and selling off pieces of company’s holdings. the process wherein the consumer evaluates through the various possible options and choices based on a set of important attributes or features. came up with the strategies of streamlining management.Engel) • . ➢ During recession of the early 1990’s.Grant) • ➢ European car-maker FIAT . and strategic uncertainties (Marketing Management-Panda) Process of collecting information about forces in the marketing environment (Marketing-Pride. 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. mail-order house “Lands End” advertised an attaché case at the same price tag that it carried in 1985 ➢ H&R Block.• The process of monitoring external environment to influence marketing strategy by identifying potential opportunities and threats. trends. Blotnicky.
and on the specific buying situation. EVENT CREATION . and adjust their marketing accordingly. a consumer arrives at a final set of brand choices and then must evaluates them based on their own individual needs." During this stage of the process. the consumer compares the brands and products that are in their evoked set. So while AT&T may have the hottest phone. Companies respond to this buy researching how various consumers evaluate brand alternatives.• The third step of the "Buyer Decision Process" is the "Evaluation of Alternatives.Cannon) • At this stage in consumer buying process. This is because smartphones require a fast internet connection to be of much use. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. (Basic Marketing. Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. That is the question Verizon wants consumers to ask themselves when they are evaluating brand alternatives. They have responded with a marketing campaign that focuses on how much larger their 3g coverage is then AT&T's. it may run extremely slow in many places where a consumer would want to use it. ➢ Verizon has been at a big disadvantage in the smart phone market because of AT&T exclusive right to distribute the iphone.
(Marketing Management-Kotler.• It the skill of publicising fund-raising drives for non-profit organisations. Jha) ➢ NDTV Greenathon was to spread the message of environmental concern ➢ The likes of Angus Deaton. EVERYDAY LOW PRICING(EDLP) • It takes place at the retail level. (Fundamentals of Marketing. EDLP saves retailers the time and expense of periodic price markdowns.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. also called value pricing. waiting for discount promotions. A retailer holding this policy charges a constant low price with little or no price promotions and special sales. Alistair Campbell. ➢ 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. and is believed to generate shopper loyalty. Kelly. EDLP saves retail stores the effort and expense needed to mark down prices in the store during sale • • . DJ Spooney and Ben Shepherd all help raise money for the Cystic Fibrosis Trust. Koshi. These constant prices eliminate week-to-week price uncertainty(Marketing Management-Kotler. The campaign helped P&G to achieve a strong double bottom-line result by strengthening pampers equity and sales while significantly reducing child mortality. Kelly. or comparison shopping. Koshi. Jha) It is a pricing strategy that promises consumers the lowest available price without coupon clipping. saves manufacturers the cost of distributing and processing coupons.
McDaniel) Use of single wholesaler or retailer to serve each territory(Marketing-Churchill and Peter) • • Form of distribution where the supplier agrees to sell only to a particular middleman or retailer in a given market(Fundamentals of Marketing. Hair.49 next. For example.( Rajiv Lal. rather than pricing it at 99 [cents] one week and $1. Conventional wisdom attributes this success either to lower costs or to EDLP better serving time constrained consumers. while discouraging cherry pickers who seek promotions. EXCLUSIVE DISTRIBUTION • Form of distribution that establishes on or a few dealers within a given area(Marketing-Lamb.Stanford University. when P&G moved many of its brands to an everyday-low-pricing strategy (EDLP). and to market these events. and is believed to generate shopper loyalty It is a trading practice in which periodic promotional discounts are eliminated to provide consistently lower-than-customary prices. Ram Rao. Every Day Low Pricing (EDLP) strategy has proved to be a successful innovation resulting in higher profits to supermarkets adopting it in competition with Promotional Pricing (PROMO).32.Stanton and Futrell) . P&G eliminated trade promotions for Dawn dishwashing liquid and then set the brand's price to a standard average of $1.• • events.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.
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)
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. Koshi. DVD players. Jha) ➢ Sony’s family brands include music systems.Holiday Inn Select. Kelly. Holiday Inn Suites. (Marketing Management-Kotler. etc ➢ Gillette Company uses the family brand Gillette Series for a line of men’s shaving products. the Black and Decker brand was put on those appliances. FEATURE . etc ➢ Holiday Inn portfolio is as. ➢ General Electric Company (GE) brands its appliances prominently with the GE brand name. deodorants and aftershaves.(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. . ➢ When Black and Decker purchased General Electrics’ line of small appliances.• When all products are sold under one corporate name. TVs. Holiday Inn Hotels.
to help prevent overly vigorous brushing from damaging gums ➢ Gillette’s Oral-B toothbrushes include a patch of clue bristles . such as size . nuts. Koshi. safety or convenience(Marketing Management-Kotler. Kelly. whose fading indicates the time to change the brush ➢ Extra chocolates. additives. and accessories that expand the products performance. weight. Jha) • ➢ Tiny spring in the handle of a GSK Flex Toothbrush. versatility. materials. 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. etc . (Marketing ManagementKotler. Marketers select product features by determining what their customers want their products to offer. Jha) ➢ Coca-cola replaced its old formula with the New Coke. engine. Kelly. a sweeter variation of the old drink ➢ Bajaj introduced several models of Pulsar with improved looks. Koshi. power.• A fact or technical specification about a product. (Marketing –Churchill and Peter) Specifications about a product that enhance its value and supplementtheir basic function. FEATURE IMPROVEMENT • Adding new features.
Koshi. products. 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. Jha) • The process of creating a new a product.5ltr. in return for a financial commitment and an agreement to conduct business in . Kelly. logo.➢ Pepsi and Coke offer drinks in different sizes-5ooml. 1 ltr. advertising. using its name. and other elements associated with the franchisers business. 1. in which the company (the franchiser) grants a franchisee the right to market its product. 2ltr FORWARD INVENTION • Creating a new product to meet a need in another country(Marketing Management-Kotler. methods of operation.
market knowledge. ➢ Holiday Inn Marriott. and the franchisee provides . FORMAL SEARCH . Koshi. Pizza Hut. Kelly.(Marketing Management-Kotler. The UPS Store. Mc Donalds are amongst the well known franchisers with international visibility. Jha) • It is a rapidly growing form of licensing in which the franchisor provides a standard package of products. called Headvertise (Kapust-Allen Enterprises.etc are amongst the worlds top 10 global franchisers. KFC Corp. and the media frenzy that came along with it. (International Marketing-Cateora Graham) ➢ Subway. many companies cannot advertise. and management services. Headvertise hired college students to run advertising campaigns for its clients on college campuses. FIXED PERSONALITY ASSOCIATION A qualitative technique used by a moderator where images of people. systems.accordance with the franchisers standard of operations. or things are shown to participants and they are then asked to interpret the pictures around a given topic. now defunct) in late 2002 Soon after its launch.. places. The same images are shown in several sessions to different respondents so that results can be applied as norms. 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. where through affinity programs and exclusive marketing rights. capital and personal involvement in management. Ebay started hosting auctions for forehead advertising and other tattoo advertising.
it dominates every other offering in the category. 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.For example. However. Parents play the role of gatekeeper in the selection of TV channels for children. Member of a decision-making unit who decides the limiting factors and constraints in the decision of purchase of a product. Moreover. 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. This person has an overall impact on the buying decision by specifying some factors and conditions under which a particular product can be bought . are . the father to be say up to a max of 50. have little or no promotion support. 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. If an offering provides both the lowest price and best performance. 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. Normally. These items usually receive secondary shelf locations.This is a purposeful search after information in some systematic way. The information will be required to address a specific issue. the budget maybe fixed by the gatekeeper. 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.000 for a bike to be bought by the son. GATEKEEPER A person who allows certain information to flow & restricts flow of some set of information. very large firms can follow full market coverage strategy.
it digitally creates and "manipulates" spatial areas that may be jurisdictional. and have plain packages. purpose or application oriented for which a specific GIS is developed. Market segmentation strategy whereby the intended audience for a given product is divided according to geographic units. remote sensing.sometimes of less overall quality than other brands. advertising. analyzes. emergency management. and sales effort to geographic differences in needs and wants. navigation. or neighborhoods. GEOGRAPHIC INFORMATION SYSTEMS Geographic information systems (GIS) or geospatial information systems is a set of tools that captures. Asia and Africa. localizing the products. counties. If you are an organisation working on a global scale you may divide by global regions such as Europe. GEOGRAPHIC SEGMENTATION Geographical segmentation divides markets into different geographical areas. for example. geography. and presents data that are linked to location(s). natural resource management. manages. photogrammetry. North America. GIS may be used in archaeology. public utility management. regions. and database technology. Marketers will also study the population density or regional climate as factors of geographic segmentation. land surveying. the region or the country. a GIS developed for an application. and localized search engines. for example. 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. aerial video. Mcdonalds globally. sell burgers aimed at local markets. are stocked in limited assortments. cartography. statistical analysis. An area can be divided by the town. urban planning. burgers are made from lamb in India rather then beef because of religious issues. or purpose may . As GIS can be thought of as a system. precision agriculture. enterprise. stores. such as nations. jurisdiction. Marketers use geographic segmentation because consumers in different areas may display certain characteristics and behaviours in that particular region. Marketers will tailor marketing programs to fit the needs of individual geographic areas. GIS is the merging of cartography. In the simplest terms. Hence. South America. states. In Mexico more chilli sauce is added and so on. cities.
GIS applications are tools that allow users to create interactive queries (user-created searches). What goes beyond a GIS is a spatial data infrastructure (SDI). edits. analyze spatial information. There are several types of geographic pricing: FOB origin .The seller absorbs all or part of the cost of transportation. or purpose. edit data. a concept that has no such restrictive boundaries.(also called postage stamp pricing) . Instead of using circles. the term describes any information system that integrates. and displays geographic information for informing decision making. and is used as a promotional tactic. GLOBAL FOCUS GROUPS . Uniform delivery pricing . GIS can be studied in degree and certificate programs at many universities. maps. Freight-absorption pricing . enterprise. in a general sense. It can be either the buyer or seller that arranges for the transportation. Ownership of the goods is transferred to the buyer as soon as it leaves the point of origin. It is intended to reflect the costs of shipping to different locations. population density. Zone pricing . applications and systems. Therefore.not be necessarily interoperable or compatible with a GIS that has been developed for some other application. Geographic information science is the science underlying the geographic concepts. 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.The same price is charged to all. irregularly shaped price boundaries can be drawn that reflect geography. jurisdiction.The shipping cost from the factory or warehouse is paid by the purchaser. transportation infrastructure. and shipping cost. Basing point pricing . This amounts to a price discount.Certain cities are designated as basing points. stores. All goods shipped from a given basis point are charged the same amount. shares. GEOGRAPHICAL PRICING Geographical pricing. analyzes. and present the results of all these operations.Prices increase as shipping distances increase. is the practice of modifying a basic list price based on the geographical location of the buyer. in marketing.
price. etc. etc. 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.Focus groups conducted using satellite video technology in which participants are located in different places. tariffs. one with corn syrup) for all markets. Also called video focus groups. Whether this . Price is affected by many variables: cost of product development (produced locally or imported). at the global marketing level. low cost. 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 product packaging in every country incorporates the contour bottle design and the dynamic ribbon in some way. For example. a company trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan.) it is impossible to launch identical marketing plans worldwide. The “Four P’s” of marketing: product. Ultimately. placement. the product’s position in relation to the competition influences the ultimate profit margin.). Additionally. Product A global company is one that can create a single product and only have to tweak elements for different markets. cost of delivery (transportation. Coca-Cola uses two formulas (one with sugar. Price Price will always vary from market to market. However. carry out the group via a video conferencing link.” Oxford University Press’ Glossary of Marketing Terms. and much more. GLOBAL MARKETING The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences. or form. cost of ingredients. Global Marketing Management—3rd Edition by Masaaki Kotabe and Kristiaan Helsen. normally in different countries. similarities and opportunities in order to meet global objectives. 2004. Unless a company holds the same position against its competition in all markets (market leader. shape. Here are three reasons for the shift from domestic to global marketing as given by the authors of the textbook.
The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized. Conversely. integrated marketing is the goal. 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. 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. Using Coca-Cola as an example again. maximize speed of implementation. elements of the ad. and to speak with one voice. GOODNESS OF THE DEAL an evaluation of whether or not the customer paid a fair price for a product. Placement decisions must also consider the product’s position in the market place. The global corporation seeks to reduce costs. a product promoted as the low-cost option in France would find limited success in a pricey boutique. minimize redundancies in personnel and work. a high-end product would not want to be distributed via a “dollar store” in the United States. The key is testing advertising ideas using a marketing research system proven to provide results that can be compared across countries. the economical. this is not an option. beverages are sold by the pallet via warehouse stores. In India. or something in-between helps determine the price point. development and creation. Promotion After product research. 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. not verbal. engaging. If the goal of a global company is to send the same message worldwide. promotion (specifically advertising) is generally the largest line item in a global company’s marketing budget. and costeffective way is the challenge. GREY MARKET . Effective global advertising techniques do exist. then delivering that message in a relevant. For example. Market research measures such as Flow of Attention.product is considered the high-end. At this stage of a company’s development. not all cultures use vending machines. expensive choice. In the United States. low-cost choice.
notably crude oil in 2008. while legal. including product modification. certain drugs or unregistered handguns. It is sometimes referred to as the underground economy or "hidden economy. In the USA. yet unregulated. GREEN MARKETING According to the American Marketing Association. Misleading or overstated claims can lead to regulatory or civil challenges. The legal implications of marketing claims call for caution. or unintended by the original manufacturer. Thus green marketing incorporates a broad range of activities. as well as modifying advertising. are unofficial. refers to workers being paid under the table. Other similar terms used are Environmental Marketing and Ecological Marketing. environmental and retail definitions attached to this term. Typically. The term gray economy. and probably not intended or explicitly authorized by oil producers. 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. however." A black market is the trade of goods and services that are illegal in themselves and/or distributed through illegal channels. This can be considered a third type of "grey market" since it is legal. 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. such as the selling of stolen goods. without paying income taxes or contributing to such public services as Social Security and Medicare. green marketing is the marketing of products that are presumed to be environmentally safe. an example of this will be the existence of varying social. guerrilla marketing . Sometimes the term dark market is used to describe secretive. unregulated (though often technically legal) trading in commodity futures. energy and imagination rather than a big marketing budget. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other. unauthorized.A grey market or gray market also known as parallel market is the trade of a commodity through distribution channels which. packaging changes. changes to the production process.
street giveaways of products. and discovery. engaging and thoughtprovoking concept to generate buzz. potentially interactive. though loosely applicable. heuristics are strategies using readily accessible. an intuitive judgment. any unconventional marketing intended to get maximum results from minimal resources. an educated guess. Eg. HEURISTICS Heuristic or heuristics refers to experience-based techniques for problem solving. HETEROGENEOUS MARKET A market characterized by buyers with different needs and wants. A company utilizes a concentrated targeting strategy for this group. information to control problem solving in human beings and machines . learning.campaigns are unexpected and unconventional. or common sense. The term has since entered the popular vocabulary and marketing textbooks. The objective of guerrilla marketing is to create a unique. Heuristic methods are used to identify an optimal solution as rapidly as possible. 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. Examples of this method include using a "rule of thumb". The company then develops a different marketing mix to satisfy each of these groups or segments. The term was coined and defined by Jay Conrad Levinson in his book Guerrilla Marketing. PR stunts. and consequently turn viral. Guerrilla marketing involves unusual approaches such as intercept encounters in public places. This market requires the company to divided the market into groups by a process called market segmentation. and consumers are targeted in unexpected places. Taking India as a market.
it is used in a couple of different ways. such that two or more goods are homogeneous if they are physically identical or at least viewed as identical by buyers. . This group is targeted with an undifferentiated targeting strategy. meaning everyone has similar income. For example. a neighborhood might have a homogeneous culture. engender customer loyalty. Achieving clear-cut product superiority in a category is the surest way to build brand share. 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. an in-store demonstration (or "demo" for short) is a promotion where samples of a product are distributed to customers within a store. HORIZONTAL MARKETING SYSTEM Two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity. IN-STORE DEMONSTRATION In marketing.HOME USAGE TEST Product testing is. 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. In a marketing context. A company with consistently superior products tends to consistently outperform its competitors in the marketplace. One of the preferences is known. One is for production. Another is for mathematical equations. then the dependent variable is increased by a function of that value. perhaps. The goal of an in-store demonstration is to introduce customers to the product in hopes of getting them to purchase that item. the notion that everything has identical characteristics. and that the manufacturers are attempting to advertise. In economics. such that an equation is said to be homogeneous if the independent variables are increased by a constant value. religious preferences. The market shows no natural segments. The company uses only one marketing mix to satisfy this group of buyers. the single-most-important type of consumer research any company ever conducts. and boost profitability. HOMOGENEOUS PREFERENCES: This refers to pattern of consumer preferences in terms of various attributes of a product or service. and political views. HOMOGENOUS MARKET In general. this is a market characterized by buyers with similar needs and wants.
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. A teenager may have some influence and a spouse usually has a lot of influence on an automobile purchase decision. For example. 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. A person who explicitly or implicitly has some influence on the final buying decision of others.Examples: 1) The electronic and electrical appliances companies do in-store demonstration. international aid agencies. elevators. importers/exporters etc . INDUSTRIAL PRODUCT Industrial product are bought by individuals or organizations for further processing or for use in conducting a business. a child may influence the choice of breakfast cereal. with trade associations. 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. but the purchase decision is made by the parent. 2) Clothes can be tried before purchasing in most of the showrooms. drill presses. Eg) generators. 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. large computer systems. For example. 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.
Information systems help to control the performance of business processes. Examples: Transaction processing systems Office systems Decision support systems Knowledge management . algorithmic processes. data and technology. management. this information must be classified. Information systems are also different from business processes. but also to the way in which people interact with this technology in support of business processes. stored and made accessible . Information systems are distinct from information technology in that an information system is typically seen as having an ict component.and computer systems ict. from online services such as reuters or maid. the term is used to refer not only to the information and communication technology (ICT) an organization uses. this is raw information and will need transforming into intelligence. In this sense.applying good practice principles of information resources management (irm). however. However.INFORMATION MANAGEMENT PROCESSES with many professionals having external information delivered to their desktops. and business processes. and increasingly from the internet is easy to believe that users have all the information they need on tap. and decision-making. Before that. INFORMATION SYSTEM (IS) An information system (IS) is any combination of information technology and people's activities using that technology to support operations. the term information system is frequently used to refer to the interaction between people. Some make a clear distinction between information systems.in a very broad sense.
in that a manufacturer will customize the offer. INTELLIGENCE DEVELOPMENT PROCESSES a good intelligence system is more than information.” or “one-to-one marketing. abetted by information technology. The person who feels the need for the purchase of a product. INTEGRATED MARKETING COMMUNICATIONS A concept of marketing communications planning that recognizes the added value of a comprehensive plan. nursing homes. a child plays role of initiator in the purchase of a chocolate. Much business to-business marketing today is customized. INSTITUTIONAL MARKET Schools.” For centuries. and financial terms for each major account. prisons and other institutions that must provide goods and services to people in their care. consumers were served as individuals: The tailor made the suit and the cobbler designed shoes for the individual.INITIATOR Initiator a person who first suggests or thinks of the idea of buying the particular product. INTEGRATED LOGISTICS SYSTEM Materials management. INDIVIDUAL MARKETING The ultimate level of segmentation leads to “segments of one.” “customized marketing. communications. logistics. Example. Such technologies such as . material flows system. markets. and physical distribution. It is a recurring cycle of linking the needs of decision makers to the processes of turning the information into actionable intelligence.
the Internet is bringing mass customization to an astonishing array of products. Then the ﬁrm equipped 650 showrooms with an interactive computer catalog linked directly to the factory. robotic production. email. clothes. Joseph Pine. says. intranets and extranets. turned to mass customization after additions to its product line led to fat. marketers still need to inﬂuence the process in a variety of ways. thus reducing its ﬁnished parts inventory (a major cost to the company). Using this catalog.” allowing the customer to actively participate in the design of the product and offer. hairdo and hair color. lets customers cut their own CDs online. and generate a price quote. and fax communication are permitting companies to return to customized marketing. CDuctive. also called “mass customization. eye color. a $1 billion Minnesota-based manufacturer of residential windows. and they need a Web site with complete. and complaints. check the design for structural soundness. salespeople help customers customize each window.” In fact.com site invites girls to log on and design their own Barbie Pal doll by specifying skin tone. listen to a brief sample of each. They need toll-free phone numbers and e-mail addresses to enable buyers to reach them with questions. see the various titles. you can customize. For example. “Anything you can digitize. Andersen has also developed a “batch of one” manufacturing process in which everything is made to order.computers. and then click to order a CD with his chosen tunes. unwieldy catalogs and a bewildering array of choices for homeowners and contractors. updated information about the company’s products. accessories. and locations. he can click on the category. suggestions. Although individual customers are taking more initiative in designing and buying products. service guarantees. If a customer likes acid jazz. Mattel’s Barbie.” Mass customization is the ability to prepare individually designed products and communications on a mass basis to meet each customer’s requirements. author of Mass Customization. Technology like this is transforming marketing from “a broadcast medium to a dialog medium. IDEA GENERATION . and name. New York-based company. Andersen Windows. a hip. they must involve customers more in the product-speciﬁcation process. databases.
These third parties exist either in the supply chain (retailers. or they may be third parties. but may also be negative. in an attempt to grab a foothold in steel wool soap pads. as increasingly practiced in a commercial context. In the context of Influencer Marketing. professional advisers. industry analysts. Many of the best ideas come from asking customers to describe their problems with current products. and so on). in which focus is placed on specific key individuals (or types of individual) rather than the target market as a whole. (also Influence Marketing) is a form of marketing that has emerged from a variety of recent practices and studies. as exemplified in Robert Cialdini’s book Influence: Science and Practice. Most discussion on the generic topic of social influence centres on compliance and persuasion in a social environment. INFLUENCE MARKETING Influencer marketing. Marketing to influencers. Hippel has shown that the highest percentage of ideas for new industrial products originates with customers. academics.The marketing concept holds that customer needs and wants are the logical place to start the search for new product ideas. influence is less about argument and coercion to a particular point of view. etc. and is thus related to concepts of promoters and detractors. Influencers may be potential buyers themselves. INFLUENCER MARKETING AS A MARKETING DISCIPLINE Influencer Marketing. Influence is often equated to advocacy. For instance.) or may be so-called value-added influencers (such as journalists. 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 . It identifies the individuals that have influence over potential buyers. manufacturers. and orients marketing activities around these influencers. and more about loose interactions between various parties in a community. 3M organized consumer focus groups and asked about problems with these products. comprises four main activities: Identifying influencers. and ranking them in order of importance.
which acts as a facilitator. and resell the merchandise. independent warehouses. Influencer Marketing is enhanced by a continual evaluation activity that sits alongside the four main activities. Ohiobased Provident Bank reaches new mortgage customers by selling through the lendingtree. Peck defines influencers as "a range of third parties who exercise influence over the organization and its potential customers". Thus WOM is a core part of the mechanics of Influencer Marketing. turning influencers into advocates of the firm. and are trendsetters. successful companies use one of three strategies: ➤ Exclusive distribution means severely limiting the number of intermediaries. The most successful companies search for innovative marketing channels. but influence may be transmitted in this manner. There are substantial differences in the definition of what an influencer is. INTERMEDIARIES Intermediaries known as merchants—such as wholesalers and retailers —buy.com Web site. Influencer Marketing is not synonymous with word of mouth marketing (WOM). though this set of attributes is aligned specifically to consumer markets. sells organs through merchants such as department and discount stores. The Conn Organ Company. have active minds.Marketing with influencers. Similarly. Often it involves exclusive dealing . Facilitators—transportation companies. for example. drawing more attention than it ever enjoyed in small music stores. manufacturers’ representatives and sales agents—search for customers and may negotiate on the producer’s behalf but do not take title to the goods. are well-connected. Brown and Hayes define an influencer as "a third party who significantly shapes the customer's purchasing decision. Keller and Berry note that influencers are activists. take title to. and advertising agencies—assist in the distribution process but neither take title to goods nor negotiate purchases or sales. 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.” 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. but may never be accountable for it. banks. Similarly. Number of Intermediaries In deciding how many intermediaries to use. Agents—brokers.
which stock mostly seconds and closeouts. Second. First. snack foods. the producer avoids dissipating its efforts over too many outlets. for example. (6) factory outlet stores. INTEGRATED MARKETING When all of the company’s departments work together to serve the customers’ interests. Integrated marketing takes place on two levels. which carry only the newest styles. Xerox factory managers know that visits to the factory can help sell a potential customer if the factory is clean and efficient. marketing must be embraced by the other departments. ➤ Intensive distribution consists of the manufacturer placing the goods or services in as many outlets as possible. External marketing is . marketing research—must work together. This strategy is generally used for items such as tobacco products. sells its athletic shoes and apparel through seven types of outlets: (1) specialized sports stores. the company must carry out internal marketing as well as external marketing. which carry a broad range of styles. goes so far as to include in every job description an explanation of how each job affects the customer. (2) general sporting goods stores. advertising. its exclusive Web retailer. which focus on discounted styles. In this way.com). products for which the consumer requires a great deal of location convenience. the result is integrated marketing. (5) Nike town stores.arrangements. the various marketing functions—sales force. and (7) the popular Fogdog Sports site (www.fogdog. product management. Xerox. for example. and it gains adequate market coverage with more control and less cost than intensive distribution. 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. which carry a special line of athletic shoes. (3) department stores. soap. which feature the complete line. Xerox accountants know that customer attitudes are affected by Xerox’s billing accuracy. Nike. and gum. customer service. All of these functions must be coordinated from the customer’s point of view. in which the resellers agree not to carry competing brands. ➤ 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. To foster teamwork among all departments. (4) mass-merchandise stores.
"the challenge for internal marketing is not only to get the right messages across. 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. serve. innovation. Over recent years internal marketing has increasingly been integrated with employer branding. According to Burkitt and Zealley.marketing directed at people outside the company. internal marketing must precede external marketing. but to embed them in such a way that they both change and reinforce employee behaviour". and motivating able employees who want to serve customers well. Practicing participative hiring: that is involving current employees in the process of hiring new employees. and employer brand management. Master marketing companies invert the chart. In fact. under them are the middle managers. whose job is to hire and support good middle managers. Internal marketing is the task of hiring. management in the middle. Ensuring equitable recognition and reward: business must exercise employee recognition with reward to what employee has achieved. It makes no sense to promise excellent service before the company’s staff is ready to provide it. putting customers at the top. and front-line people and customers at the bottom—obsolete. . INTERNAL MARKETING Internal marketing (IM) is a process that occurs within a company or organization whereby the functional process aligns. motivates and empowers employees at all management levels to deliver a satisfying customer 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. which strives to build stronger links between the employee brand experience and customer brand experience. allowing initiatives and accountability and responsibility of their decisions. and at the base is top management. training. who support the front-line people so they can serve the customers. Next in importance are the front-line people who meet. and satisfy the customers.
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. Empowers employees and gives them accountability and responsibility. Encourages employees to offer superb service to clients by appreciating their valuable contribution to the success of the business. Creates common understanding of the business organisation. INTERNAL BRANDING Internal Branding is a concept that merges the disciplines of marketing and human resources. Internal Branding is about aligning employee commitment to delivering the brand promise of the organisation. Developed by Dr Nikolaus Eberl and Herman Schoonbee as an academic discipline. There is a phenomenon in organizations that can be termed the ‘Janus Effect. human resources management.’ Janus was the .Demonstrating fairness during hard times: fair treatment of employees when faced with hard times and difficult moments like death of the near family members. Retaining clients over time requires not only that they have a positive experience with the brand. Helps non-marketing staff to learn and be able to perform their tasks in a marketing-like manner. The Janus Effect of Internal Branding Clearly. This can be achieved by setting aside emergency funds. The Role of Internal Branding Nothing kills a poor product faster than good advertising. total quality management and re-engineering. Creates good coordination and cooperation among departments of the business. Improves customer’s retention and individual employee development. vision and strategy with the employees' professional and social needs. a company’s brand promise and its brand character must be linked and compatible. Benefits of Internal Marketing: Encourages the internal market (employees) to perform better. Integrates business culture. Good organization structure that allows learning. structure.
payables. . one facing out and one facing in. the Virgin brand has now become so valuable that Branson has recently ventured into space. In fact. prices. awareness and consideration. the answer is easy – your market capitalisation less assets. INTERNAL RECORDS SYSTEM Marketing managers rely on internal reports on orders.e. and so on. Coca-Cola. In the case of the world’s leading brand. they can spot important opportunities and problems. costs. brand preference and brand loyalty. If the brand is well-respected and trusted. he was seen as a god of the doorway and depicted with two faces. which are formed from the client’s experience with the brand and influenced by the retention drivers. “the brand is everything. 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. In September 2004. sales. Thus. people will give it a try. Strengthening or weakening the brand then depends on the Differentiating Factors. Measuring Brand Value If your brand is listed on the stock exchange. By analyzing this information. the way customers view the company is significantly enhanced. or diminished. by the way employees view the company.Roman god of initiation and closure. receivables. i. the brand value exceeds the asset value by nearly 150%. i.” The Virgin Brand is a classic example of brand value exceeding the asset base by far. Measuring Brand Strength The strength of a brand is built both through communication and the experience with the brand. As Richard Branson put it at his recent visit to South Africa. As such. which are driven by communication and influenced by acquisition drivers such as functionality. Brand strength initially depends on the Hygiene Factors. inventory levels.e. he announced that Virgin had signed a deal to offer the world's first commercial flights to space under the brand ‘Virgin Galactic’.
Sales managers can monitor everything in their territories and get current sales forecasts anytime. Inc. The billing department sends out invoices as quickly as possible. Recent editions have put even more knowledge at marketers’ fingertips.THE ORDER-TO-PAYMENT CYCLE The heart of the internal records system is the order-to-payment cycle. An ad for Sales CTRL. a sales force automation software package.” Sales force automation (SFA) software has come a long way. And when deals are struck. Customers favor those firms that can promise timely delivery. dealers. and efficiency of the order-to-payment cycle. SALES INFORMATION SYSTEMS Marketing managers need up-to-the-minute reports on current sales. Here are three companies that are using computer technology to design fast and comprehensive sales reporting systems: ■ Ascom Timeplex. often through internal “push” or Web technology. Sales representatives. status reports on previous orders. and e-mail from anywhere in the company. Earlier versions mainly helped managers track sales and marketing results or acted as glorified datebooks. Retail giant Wal-Mart tracks the stock levels of its products and its computers send automatic replenishment orders to its vendors. engineering and configuration notes. sales reps at this telecommunications equipment company use their laptop computers to dial into the company’s worldwide data network. boasts. . sales reps can access information about prospects and customers and provide immediate feedback and sales reports. accuracy. The sales department prepares invoices and transmits copies to various departments. and customers dispatch orders to the firm. the laptop computers record each order. Armed with laptop computers. Louis knows what Customer Service in Chicago told their customer in Atlanta this morning. Before heading out on a call. Out-of-stock items are back ordered. so they can give prospective customers more information and keep more detailed notes. Customers and sales representatives fax or e-mail their orders. Today’s companies need to perform these steps quickly and accurately. They can retrieve the latest price lists. Shipped items are accompanied by shipping and billing documents that are sent to various departments. An increasing number of companies are using electronic data interchange (EDI) or intranets to improve the speed. Computerized warehouses fulfill these orders quickly. “Your salesperson in St.
San Francisco–based Montgomery Security was in a bind. With a common database format. what managers really need. What topics would you like to be kept informed of? 9. What data analysis programs would you want? 10. What special studies do you periodically request? 5. and send it electronically to Timeplex headquarters in Woodcliff Lake. Some useful questions are: 1. To remain competitive in the financial sector. and what is economically feasible. What information do you regularly get? 4. improve customer service. New Jersey. and its market share has soared. ■ Montgomery Security In 1996. everyone could share information and keep confidential information secure. The company solved the problem with Sales Enterprise Software from Siebel Systems. Yet all of the departments at Montgomery had different database formats for their records. The company’s marketing information system should represent a cross between what managers think they need. Alliance supplies hospital purchasing departments with computers so that the hospitals can electronically transmit orders directly to Alliance. Alliance has achieved a great advantage over competitors. research. some even kept files on notepads. What are the four most helpful improvements that could be made in the present marketing information system? LABELLING . What information would you want that you are not getting now? 6. and obtain better terms from suppliers for higher volumes. this Nations Banks subsidiary had to find a way for more than 400 finance. The timely arrival of orders enables Alliance to cut inventories. ■ Alliance Health Care Formerly called Baxter. It gave Montgomery significant gains in productivity. What decisions do you regularly make? 2. What information do you need to make these decisions? 3. An internal MIS committee can interview a cross-section of marketing managers to discover their information needs. What magazines and trade reports would you like to see on a regular basis? 8. and Gathering Information and Measuring Market Demand sales or trading employees to share information about companies whose stock they were considering taking public. What information would you want daily? Weekly? Monthly? Yearly? 7.double-check the order for errors.
The Food and Drug Administration (FDA) recently took action against the potentially misleading use of such descriptions as “light. A drive is a strong internal stimulus that impels action. . which may be a simple tag attached to the product or an elaborately designed graphic that is part of the package. Theorists believe that learning is produced through the interplay of drives. stimuli. First. Orange Crush developed a label with new symbols to suggest freshness and with much stronger and deeper colours. and how a person responds.” and “low fat. and reinforcement. Therefore. where. marketers must be skilful not only in managing product lines and brands. Cues are minor stimuli that determine when. how it is to be used. the label identifies the product or brand—for instance. unit pricing (to state the product cost in standard measurement units). such as delivery or installation.” “high beer. and percentage labelling (to show the percentage of each important ingredient). the label might promote the product through attractive graphics. what it contains. grade labelling (to rate the quality level). The label on Ivory soap has been redone 18 times since the 1890s. The label might describe the product: who made it. Finally. Learning involves changes in an individual’s behaviour that arise from experience. with gradual changes in the size and design of the letters. The label might also grade the product.Every physical product must carry a label. and how to use it safely. Some tangible products that incorporate packaging and labels also involve some service component. the way canned peaches are grade labelled A. thereby pulling in more sales. The label on Orange Crush soft drink was substantially changed when competitors’ labels began to picture fresh fruits. Labels perform several functions. but also in designing and managing services. where it was made. and C.” Meanwhile. cues. LEARNING When people act. Labels eventually become outmoded and need freshening up. Most human behavior is learned. consumerists are lobbying for additional labelling laws to require open dating (to describe product freshness). Legal concerns about labels and packaging stretch back to the early 1900s and continue today. B. when it was made. they learn. responses. In response. the name Sunkist stamped on oranges.
So far. your response to computers and IBM will be positively reinforced. A countertendency to generalization is discrimination. and just about anything else with a few clicks of the mouse. and consolidate purchasing. LIFESTYLE Lifestyle is a term to describe the way a person lives. they are establishing Intranets for internal communication and extranets to link with regular suppliers and distributors. A set of behaviours. business-to-business buying on the Internet is projected to reach $1 trillion per year (compared with a projected $108 billion for consumer buying).Suppose you buy an IBM computer. in which the person learns to recognize differences in sets of similar stimuli and adjust responses accordingly. The current broader sense of the word dates from 1961. components. 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. and the senses of self and belonging which these . By 2003. Applying learning theory. However. At the same time. using motivating cues. The move to Internet purchasing has dramatic and far-reaching implications. In fact. Internet purchasing can help forge closer relations between partners and buyers. most businesses are using extranets to buy MRO supplies. and providing positive reinforcement. Later. reduce time between order and delivery. a growing number. it also makes good printers. such as General Electric. when you want to buy a printer. are preparing to buy nearly all supplies on-line to shave transaction and personnel costs. you may assume that because IBM makes good computers. which was originally coined by Austrian psychologist Alfred Adler in 1929. Companies are not only posting their own Web pages to sell to business buyers. marketers can build up demand for a product by associating it with strong drives. LEARNING INTERNET PURCHASING Internet purchasing. it can potentially erode supplier-buyer loyalty and open the door to possible security disasters. If your experience is rewarding. and it levels the playing ﬁeld between large and small suppliers. its Trading Process Network lets companies buy raw materials. You have now generalized your response to similar stimuli.
Therefore. conventional ways of doing things. For example. a smaller carbon footprint). A lifestyle is a characteristic bundle of behaviours that makes sense to both others and oneself in a given time and place. are collectively used to define a given lifestyle. a lifestyle is a means of forging a sense of self and to create cultural symbols that resonate with personal identity. in modernity. The term is defined more broadly when used in politics. and deriving a sense of self from holding these beliefs and engaging in these activities. and reasoned actions. which offers the possibility to create and further individualize the self with different products or services that signal different ways of life. As a construct that directs people to interact with their worlds as consumers. including social relations.e. A lifestyle typically also reflects an individual's attitudes. "green lifestyle" means holding beliefs and engaging in activities that consume fewer resources and produce less harmful waste (i. marketing. These patterns reflect the demographic factors (the habits. values or worldview. In the magazine and television industries. entertainment. moral standards. tastes.behaviours represent. attitudes. Some commentators argue that. consumption. or to create aspirations relevant to new products. The behaviours and practices within lifestyles are a mixture of habits. 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. lifestyles are subject to change by the demands of marketing and technological innovation. "lifestyles" provide a means by which advertisers and marketers endeavour to target and match consumer aspirations with products. The lines between personal identity and the everyday doings that signal a particular lifestyle become blurred in modern society. Not all aspects of a lifestyle are entirely voluntaristic. the cornerstone of lifestyle construction is consumption behaviour. economic levels and so on) that define a group. and publishing. and dress. Therefore marketers take the patterns of belief and action characteristic of lifestyles and direct them toward expenditure and consumption. In business. . "lifestyle" is used to describe a category of publications or programs.
000 .000 Maruti A Star . Hence having a full line catering to all segments of consumers offers tremendous advantage to the company. Having various offerings at various price points keeps that customers happy and make them stick to the company.Rs 3. I may not go in to a competitor's product.Rs 3. Santro.Rs 3. In the case of Maruti.Rs 2.Satisfy Dealers who complain about lost sales because of missing items in the line c.Rs 5.Rs 4.20.000 . Maruti Suzuki recently launched a series of brands in the hatchback segment. The company is facing lot of competition in the hatchback segment.Try to plug holes to keep the competitors away.40. Example: Maruti 800 .22. Incremental Profits b. If I want to upgrade to a bigger car.The question is why Maruti chose to bring out products with similar price ranges.000 Maruti Swift . There are several reasons for such a line filling strategy.000 . Another question is whether this overlap will create cannibalization among these brands.Rs 5.Rs 3.Rs 4.Rs 2. According to Prof. Another reason for Maruti's line filling is to keep out the competitors.Rs 2. At the lower end Nano may give Alto and 800 a run for its money.Utilize existing capacity d.00.10.LINE FILLING Maruti Suzuki is following the product line strategy of Line Filling.06.000 .000 . Maruti Suzuki has tremendous brand equity in the Indian market. In such a scenario.89. i10 and Spark is giving tough competition for mid-range hatchbacks . Line Filling is a strategy where the company introduces new products within the same (existing) price range. Philip Kotler.98.12.Rs 2.000 From the price ranges.Rs 4. more than one reasons prompt it to fill the line.000 Maruti Ritz . I have a choice or a A star or a Wagon R or a Ritz or a Swift.12000 Maruti Alto .000 . There are customers (like me) who would like to buy a car from Maruti.17.000 .000 Maruti Estilo . firms adopt this strategy for a. A look at the price ranges of hatchback brands of Maruti will give you a clear picture of Line Filling.000 Maruti Wagon R . it is evident that there is a significant overlap among various brands.Try to become a full-line company e.18.70.32.Rs 3.
Palio. Line Extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors. it is natural that some sort of cannibalization will happen. . or both ways. Maruti is keeping a full line of brands covering various price points.Line extension occurs when the company lengthens its product line beyond its current range. added ingredients. In the case of Maruti brands. The company may notice strong growth opportunities as mass retailers such as Wal-Mart. There has to be a just-noticable difference between the offerings other wise consumers will get confused . When there are brands which has similar price points. Hence to keep the market share intact . may be only Maruti can do it. package sizes. colors. up-market stretch. When Ritz was launched. Line Filling is the strategy adopted by Maruti Suzuki to retain its grip in the Indian market. But in the Indian Automobile industry . This low cost base enable the firm to make a profit irrespective of cannibalization. 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. Regarding the profits. Best Buy. forms. and others attract a growing number of shoppers who want value-priced goods. Maruti is one of the lowest cost producer in the automobile industry. it definitely took away some customers of Swift. But Maruti can be happy that the customer has bought its product rather than that of its competitor. The company can extend its product line down-market stretch. One of the critical factor that a firm should consider while line filling is the Differentiation.i20 are giving competition at the higher segment of the hatchback market.and products like Fabia.Punto. 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. This is as opposed to brand extension which is a new product in a totally different product category. there is a clear differentiation either interms of design or performance between these brands.
economy. The company may find that the middle market is stagnating or declining.Surf. and at the higher end to compete with Hewlett-Packard. Haagen-Dazs in ice cream and Evian in bottled water. Up-Market Stretch Companies may wish to enter the high end of the market for more growth. location. Surf Excel Blue. Texas Instruments (TI) introduced its first calculators in the medium-price-medium-quality end of the market. Surf Excel. Clinic Plus Reese's Peanut Butter Cups. 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 occupation. If the company has been attacked by a low-end competitor. When compared to a firm's task environment. Leading Japanese auto companies have each introduced an upscale automobile: Toyota's Lexus. Note that they invented entirely new names rather than using or including their own names. Vanilla Coke. technology. politics.2.Splendour. It includes factors such as demography. and Honda's Acura. DEMOGRAPHIC FACTORS: It refers to studying human populations in terms of size. higher margins. age. density. Examples include Zen LXI. Two-Way Stretch Companies serving the middle market might decide to stretch their line in both directions. This . Gradually. the impact of macro environmental variables is less direct and the organization has a more limited impact on these elements of the environment. gender. Nissan's Infiniti. or simply to position themselves as full-line manufacturers. Many markets have spawned surprising upscale segments: Starbucks in coffee. it often decides to counterattack by entering the low end of the market. Splendour Plus Coca-Cola. race. Diet Coke.Clinic All Clear. it added calculators at the lower end taking the share from Bowmar. and socio-culture. The company may wish to tie up lower-end competitors who might otherwise try to move up-market. 3. This two-way stretch won Texas Instruments (TI) an early market leadership in the hand-calculator market. natural forces.
It also requires a company to stay ahead of others and update their own technology as it becomes outdated. Rather than appealing to the mass market. women formal apparels are in high demand. sportier image.is a very important factor to study for marketers and helps to divide the population into market segments and target markets. retirement benefits are in high demand. there are passengers and there are drivers. As these markets develop it can create new markets and new uses for products. . 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. VW went after a younger demographic willing to spend a little extra on a Volkswagen because of the car's German engineering. • As in India no of working women increasing day by day so the products like fast food. • As concept of nuclear families increasing. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards." • 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. Example: • Volkswagen sales in the United States rose from under 50. Example: Himani Boro plus entered the market when Boroline could not fulfil the demand of the market. "On the road of life. ready to eat meals. The voiceover on the introductory TV spot identifies the target audience by saying. No company enters market without competition. consumer goods companies like LG see potential for growth. where as in country like India where major age group is young child care policies .000 a decade later partly as a result of a "Drivers Wanted" ad campaign that targeted fun-loving or youthful drivers. and versatility.000 cars in 1993 to over 300. TECHNO-LEGAL FACTOR: The techno-legal environment is perhaps one of the fastest changing factors in the macro environment.
It is closely related to (and may arguably be considered a subset of) knowledge transfer. Innovations Innovation can be seen as the process that renews something that exists and not. particularly software applications and computer hardware". Samsung had launched a digital home business. The Internet is a global system of interconnected computer networks and serves billions of users worldwide. as is commonly assumed. security cameras. applications. Samsung has 6. development. input. business. according to the Information Technology Association of America (ITAA). 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. and wall-mounted flat-panel displays. that are linked by a broad array of electronic and optical networking technologies.Technology transfer is the process of sharing of skills. Rate of Technology transfer . methods of manufacturing.Example: • In an ambitious endeavour. transmit. • 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. application. design. refrigerators. output. . academic. implementation. public. Samsung is looking to take the idea abroad. technologies. the introduction of something new. store. processes. and government networks.000 networked homes that are outfitted with Internet-enabled ovens. protect. Discovery is the act of detecting something new. and retrieve information. In Korea. of local to global scope. process. materials or services. IT deals with the use of electronic computers and computer software to securely convert. knowledge. It is a network of networks that consists of millions of private. support or management of computerbased information systems.
. For example. Typically.. Policymakers debate the nature of the tax structure they plan to implement (i. service or practice is no longer wanted even though it may still be in good working order. so that low-income consumers can find economy brands.e.Rate of Obsolescence: Obsolescence is the state of a being which occurs when an object. how progressive or regressive) and how they might affect individuals and businesses (i. and restrictions on. Obsolescence frequently occurs because a replacement has become available that is superior in one or more aspects. Labour law (or "labour". obsolescence is preceded by a gradual decline in popularity. working people and their organizations. and precedents which address the legal rights of. tax incidence). contests.e. . POLITICO-LEGAL: Marketing decisions are strongly affected by developments in the political and legal environment. As such. • Thailand requires food processors selling national brands to market low-price brands also. and pressure groups that influence and limit various organizations and individuals. administrative rulings. Sometimes these laws also create new opportunities for business. employers and employees.Tax policy is the government's approach to taxation. Obsolete refers to something that is already disused or discarded. This environment is composed of laws. or antiquated. government agencies. and premiums— as inappropriate or "unfair" instruments for promoting products. 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. • In India we cannot sell electric appliances. or "employment" law) is the body of laws. Example: • Norway bans several forms of sales promotion—trading stamps. • Danger sign on cigarette packs • Pricing of medicines is regulated • Control on petroleum and diesel prices Taxation policy . it mediates many aspects of the relationship between trade unions.
to grant. to declare or to restrict. • HMT.Public policy can be generally defined as the course of action (or inaction) taken by the state with regard to a particular issue. • South Asian countries like Thailand uses more vibrant colours as compared to country like France use subtle shades. to others. (Another source of law is judge-made law or case law. People absorb. thumbs up. and norms that largely define these tastes and preferences. 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. almost unconsciously. . SOCIO-CULTURAL ENVIRONMENT: Purchasing power is directed toward certain goods and services and away from others according to people's tastes and preferences. and funding priorities concerning a given topic promulgated by a governmental entity or its representatives. a worldview that defines their relationships to themselves. legislative acts. Examples: • Colour of products in Islamic country is dominantly green for eg Colgate. values. Other scholars define it as a system of "courses of action. or the process of making it. to nature. Society shapes the beliefs. Legislation can have many purposes: to regulate. to sanction. and judicial decisions. to proscribe. and to provide (funds)."Public policy is commonly embodied "in constitutions. • 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. to society. laws. to authorize. and to the universe. and may be broadly referred to as "legislation" while it remains under consideration to distinguish it from other business.) Before an item of legislation becomes law it may be known as a bill. regulatory measures. 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." Legislation (or "statutory law") is law which has been promulgated (or "enacted") by a legislature or other governing body.
the newly emergent middle class arising at the turn of the twentieth century. American Express. The term is often associated with criticisms of consumption starting with Thorsten Veblenor. IBM decided to move the jobs of nearly 5. To this extent it most commonly refers to material wealth and the ability of an agent to move up the class system. The available purchasing power in an economy depends on current income. and credit availability. 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. savings. EXAMPLES • Pesticides prices are controlled by government so foreign investor are not able to enter Indian market. Example: An economic issue of increasing importance was the migration of manufacturers and service jobs offshore.• Shopping trends of various countries are persuaded by festive seasons for example in India people tend to shop around dhanteras. 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. more recently by a movement called Enoughism. but as a cause of unemployment by many domestic workers. 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. GE moved much of its research and development overseas. Veblen's subject of examination. debt. Marketers Markets require purchasing power as well as people. Hyderabad-Bangalore side people shop during ramzan. 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. savings. Outsourcing was seen as a competitive necessity by many firms. Microsoft. and credit availability. comes to full fruition by the end of the twentieth century through the process of globalization. prices.000 programmers to India and China. Lifestyle changes: Adoption of new products especially due to change in income levels of a household. For example. Dell. • Petrol and diesel prices are regulated in India . prices. in December 2003. The available purchasing power in an economy depends on current income. debt.
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. • During 1991. Consequently. after liberalization of Indian economy lot of foreign companies entered Indian market. express or implied. These fluctuations occur around a long-term growth trend. one being the employer and the other being the employee. That is the demand of the product is equal to the supply by the industry. private) consumption expenditure) yields personal (or. oral or written. An employee may be defined as: "A person in the service of another under any contract of hire. minus personal current taxes equals disposable personal income. MAINTENANCE MARKETING It is a type of marketing employed in a condition where the industry has a full demand. companies had to keep their project on hold as there was no money in market. and typically involve shifts over time between periods of relatively rapid economic growth (expansion or boom). The marketers have to maintain everything to . 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. Subtracting personal outlays (which includes the major category of personal (or. Employment is a contract between two parties. Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises. personal income. and periods of relative stagnation or decline (contraction or recession). In national accounts definitions. each unit of currency buys fewer goods and services.• CRR and SLR ratio fixed by RBI which indirectly affects lending capacity of banks • FDI and FII Limits set by government • During recession. Disposable income is total personal income minus personal current taxes." Business cycle (or economic cycle) refers to economy-wide fluctuations in production or economic activity over several months or years. private) savings.
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. This analysis helps organizations determine which areas account for the greatest share of the market's growth and are more . work force expansion/contraction. Affected areas may include inventory levels. and many other aspects of a company. purchases of capital equipment. Market segments Markets are not uniform. as any slight mistake can severely affect the company’s performance. purchases of capital equipment.a work force expansion/contraction. • 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. Therefore it is also important for investors to identify and evaluate the various segments that make up the total market. purchase. facility expansion. Organizations use the findings to guide the investment decisions they make to advance their success. Key success factors The goal of a market analysis is to determine the attractiveness of a market.retain their position. promotional activities. The findings of a market analysis may motivate an organization to change various aspects of its investment strategy. facility expansion. both now and in the future. 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 promotional activities.
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. .”Marketing Intelligence has the capacity to be at the forefront in contributing to the development of a business environment through strategic research. timely. Market intelligence (MI) is “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers). This information. Market profitability While different organizations in a market will have different levels of profitability. attitudes and behaviour of the market. It incorporates information from customer analysis and industry analysis as well as general market conditions.susceptible to change. and objective business information. and to assess changes in the business environment that may affect the size and nature of the market in the future. publication. “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers). known as Porter's five forces. what the issues are and what the likely market potential is. credit-rating documentation. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market. MARKET INTELLIGENCE (MI) Market intelligence (MI). reporting. according to Cornish. This framework. they are all similar to different market conditions. to determine the current and future needs and preferences. storage. and to assess changes in the business environment that may affect the size and nature of the market in future. and communication of reliable. attitudes and behaviour of the market. risk and policy analysis. to determine the current and future needs and preferences. helps them pinpoint the most promising opportunities within the overall market and guides the choice of specific investments.” 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.
this information often remains under-utilised because it is compartmentalised. This would require the integration of competitive intelligence. information is usually categorised according to its nature so that there are. for example.• • In other words. That is. and an holistic view can prove very insightful. which is crucial for product. 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. MI is critical for helping with the new product development stage of the product lifecycle. 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. market analysis. . and industry to enhance the decision-making process. Similarly. manpower. Often the entrepreneur. However. but there is often a great deal of untapped information internally that would give you an insight into your market. marketing intelligence calls for understanding. companies can successfully innovate to stay ahead of the competition. Internal reporting systems: All enterprises which have been in operation for any period of time have a wealth of information. does not see how it could help decision makers in other functional areas. stockholding and logistical data. marketing. By using this knowledge about the external environment. either in the form of an individual entrepreneur or in the functional departments of larger businesses. from sources such as databases and prospect lists. markets. production. competitors. or various personnel working in the functional departments holding these pieces of data. decision makers can fail to appreciate how information from other functional areas might help them and therefore do not request it. marketing research. and business and financial analysis information. financial. analyzing and assessing the internal and external environment related to a company’s customers.
stockholdings and sales invoices. but even this small set of records is capable of generating a great deal of information. .The internal records that are of immediate value to marketing decisions are: orders received. These are but a few of the internal records that can be used by marketing managers.
called farmers' markets. Such markets are normally specialist—the various stalls of Camden Market. The Roman term for market. instruments and furniture. sell a variety of alternative lifestyle products ranging from clothes and jewellery to CDs. however some (such as Camden Market in London. • Some large markets have become permanent institutions comparable to shopping malls. in Melbourne. especially in France and Britain. virtual or metaphorical. This kind of market is very old. which is also the largest in the Southern Hemisphere. in many towns and cities. • In Europe. street markets. The modern shopping mall can be seen as an extension of this concept. along with the shops associated with it. but renewed interest in local food has caused the reinvention of this type of market. is forum. • Markets are often temporary. the largest "open air" market is the Queen Victoria Market .MARKET PLACE A marketplace is the space. still in use in a related sense. with stalls only present for one or two days a week ("market days"). A marketplace is a location where goods and services are exchanged. UK) are open every day of the week. Ukraine. An example of a large market is Chatuchak weekend market in Bangkok. the 'real world' in which products and services are provided and consumed. as well as "marketplaces" (covered places where merchants have stalls. The term is also used in a trademark law context to denote the actual consumer environment. actual. Both resellers and producers sell their wares to the public.at seven hectares (17 acres). in which a market operates. but not entire stores) are commonplace. • In North America such markets fell out of favour. and countless such markets are still in operation around the whole world. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. One example is the huge SeventhKilometer Market near Odessa. MARKETING ENVIRONMENT: . ie. • In Australia.
where as in country like India where major age group is young child care policies . legal. technological. These factors have to be taken into consideration by the marketer and proper steps should be taken to adapt to the conditions. financial resources. sportier image. On the contrary it is lower in price in India to match the economy. and competitive. This is an integral part of environmental scanning. legal. retirement benefits are in high demand.000 cars in 1993 to over 300.The various external forces that can directly or indirectly affect the many activities of an organization. Donalds introduced Mc Veggie and Mc. • Volkswagen sales in the United States rose from under 50. Rather than appealing to the mass market. and versatility. VW went after a younger demographic willing to spend a little extra on a Volkswagen because of the car's German engineering." 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. Tikka when they entered India. The marketing environment includes forces such as: political.000 a decade later partly as a result of a "Drivers Wanted" ad campaign that targeted fun-loving or youthful drivers. regulatory. "On the road of life. social. “YOUNGISTAN” • Mc. economic. cultural etc. raw materials. • Head and shoulders is costlier in country like USA due its better quality like high viscousity. The factors which affect the decisions may be demographic. The term marketing environment is set of forces/factors that have potential to influence the marketing decisions of any company. therefore Pepsi has focussed the youth market in India. These activities include acquisition of human resources. Examples: • Yamaha launched a prototype of YAMAHA FZ1 in India to adapt to the Indian Environment • Youth is of high population in India. social. there are passengers and there are drivers. • • . The voiceover on the introductory TV spot identifies the target audience by saying. and development of goods and services.
The goal of Nokia is to seize a 10% increase in market share in the low cost variety of mobiles. d. stored. Colgate – Palmolive – It is deeply committed to advancing technology which can address changing consumer needs throughout the world. Algeria. media selection. Timely marketing information provides basis for decisions such as productdevelopment or improvement. MARKETING INFORMATION SYSTEM: A Marketing Information System can be defined as 'a system in which marketing information is formally gathered. It is a set of procedures and practices employed in analyzing and assessing marketing information. distributio n. HUL goal –To develop new ways of doing business with the aim of doubling the size of the company while reducing environmental impact. analysed and distributed to managers in accordance with their informational needs on a regular basis. The goal is to use its technology to create products that will continue to improve the quality of life for consumers wherever they live. packaging. pricing. e.MARKETING GOAL: It is the collection of various quantitative marketing targets that form a goal. gathered continuously from sources inside and outside of a firm. EXAMPLES: a.e. b. The goal of Haldirams is to target places like Jordan. Yemen. The goal of Raymonds is to expand the capacity. and promotion. . etc. they usually quantify the objectives. c. Marketing goals are objectives that are specific with respect to magnitude and time i. and distribution of clothing brands in Tier IV and V cities.
sort. Public image may also be considered a controllable part of the marketing strategy. processing.A Marketing Information System can be defined as ‘a system in which marketing information is formally gathered. analysed and distributed to managers in accordance with their informational needs on a regular basis’. A system that supply information to mangers of when. storage and dissemination of data in the form of information needed to carry out the management functions. where and how the marketing mangement is to be done. equipment and procedures to gather. analyze. Examples: • Shoppers Stop offers shoppers a free membership card when they make their first purchase at their store. An 'MIS' is a planned system of the collection. price.Data is taken from the marketing environment and transferred into the information that marketing managers can use in their decision-making processes. . A system that is created through an understanding of the information needs of marketing management is called marketing information system. A combination of the controllable components of a marketing strategy: product. stored. • 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. but also provides valuable information to the chain. evaluate and distribute needed. timely and accurate information to marketing decision makers. place and promotion. A marketing information system (MIS)consists of people. The card entitles shoppers to discounts on selected items. Marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives.
Marketing mix is the combination of elements that we will use to market your product. There are four elements: Product, Place, Price and Promotion. They are called the four Ps of the marketing. Product: What your product offers that your customers value, and whether/how you should change your product to meet customer needs. Pricing: For example, you might aim simply to match the competition, or charge a premium price for a quality product and service. You might have to choose either to make relatively few high margin sales, or sell more but with lower unit profits. Place: How and where you sell. This may include using different distribution channels. For example, you might sell over the Internet or sell through retailers. Promotion: How you reach your customers and potential customer. For example, you might use advertising, PR, direct mail and personal selling. It is concept of filling the gap between opportunity and the objectives to be achieved. Market is a place of bundle of expectation and we can fill this gap with the help of product, the concept of filling this gap is called marketing mix. EXAMPLE: LML and BAJAJ scooters lost because they were unable to fill this gap by morph marketing. LG gained the market by morph marketing. Discounts and offers on various products. Parachute coconut oil with double lid. MARKETING MODEL It is an overview of the entire marketing process which can be shown graphically, often using a computer, and used to solve problems Graphical representations of a process designed to aid in understanding and for forecasting. Marketing models are computerised models that allow simulation of scenarios based on different assumptions about changes to the macro environment and micro environment. MARKETING OBJECTIVE:
It is the collection of various processes that define the essence of the marketing plan, which will include the mission statement and corporate, financial, marketing, and long term objectives which fits the basic business philosophy of the company. Marketing Objectives means is trying to achieve through its marketing activities during a specified period; closely linked with corporate objectives. An objective is essentially a qualitative statement regarding company’s leadership, value/volume, market share, market scatter, product launches et al. Examples: Vodafone UK Marketing objectives: To become a global mobile leader in terms of profit, customers and value, making mobile networks the “nervous system” of the networked economy spanning three major developed markets (Europe, US and Japan) HUL objective To help people feel good, look good and get more out of life with brands and services that are good for them and good for others. (emphasis on expanding the company size via launching various products) Colgate – Palmolive Focuses on achieving the consistent growth required to continue the global success and to make it an even stronger company. It believes this is the best way to benefit its consumers, people and shareholders. The objective of Nokia is to revive their marketing demand to recapture market share in the cell phone industry. The objective of Asian Paints is to be the 5th largest decorative paints in the world from the 10th position. The objective of Raymonds is to enter and be the leader in every clothing segment in the Indian market. MARKETING PLAN: It is steps or procedure taken by a marketer or a company to achieve certain policies, goals etc. It includes elements like deciding marketing policies, marketing goals, strategies, programs etc. A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years.
A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. A marketing plan contains a list of actions and a sound strategic foundation. Examples: • Marketing plan of Maruti Suzuki includes○ To be India’s no.1 automobile industry ○ To keep safety as its top priority while manufacturing the cars • Hyundai- Lunch of Hyundai Pa will bridge the gap between Santro and Getz, giving customers moreoptions within the Hyundai family • • • • Toyota plans to increase its dealership from 97 to 150 DTH major Dish TV aims to add 3 million subscribers this fiscal to take its subscriber base to 10 million by March 2011 YAMAHA will focus on the 150cc+ segment to achieve a target of 25 % share by the end of year. Honda priced its products 41% higher than the cheapest make in philipines.
Marketing research 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. and what he/she will buy. 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. over production and losses in tying of unsaleable stock will not occur. Activities associated with deciding whether to build. Pricing above your product’s fair price will typically lead to market-share loss. hold. That is. or harvest market share and related decisions about positioning your products’ performance and whether to price for margin or growth. The main difference of strategy from policy is that strategy is a decision making under constraints. to meet the needs of markets and to fulfil stakeholder expectations. advertising and distribution. In this ideal case. Market research information means to enable design a product in accordance with customers' preference. 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. Marketing strategy are the decisions taken by an industry to achieve its goals. making appropriate arrangements for effective. to manufacture it in quantities that can be sold to pack it suitably. Pricing on or near the best-value frontier will typically lead to market-share . Market research Information means finding out whom the customer is.MARKETING RESEARCH SYSTEMS: Marketing research is a proactive search for information. Examples: Consumer marketing research Business-to-business (B2B) marketing research. objectives etc.
Mass Customisation is the customisation and personalisation of products and services for individual customers at a mass production price. and pressure groups. Changing performance opens up many other options for changing market share. new interactive technologies. EXAMPLE: 1. allow customers to interact with a company and specify their unique requirements which are then manufactured by automated systems. like the Internet. psychological. To-day. National Bicycle Company MEGA MARKETING: Use of power to market your product.gain. MASS CUSTOMISATION: Mass customization is the ability to prepare on a mass basis. individually designed products and communications to meet each customer’s requirements. EXAMPLE: 1) Cable Operators cutting wires . Customisation was the product of designers and craftsman. Its expense generally made it the preserve of the rich. political and public relations skills to gain the cooperation of a number of parties in order to enter or operate in a given market. 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. 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. Mega marketing is defined as the strategic co-ordination of economic. Management activity that involves (in addition to the typical marketing activities) other elements of a firm's external environment such as government. Mass production provided low cost but at the expense of uniformity. media. Levi’s Personal Pants 2. Traditionally customisation and low cost have been mutually exclusive.
Meta marketing means use of more than one ‘P’. reseller. Where ‘P’ stands for product. they influence us for some time— between seven and ten years. promotion. and once in place. For example: due to the boom in the information technology sector in India. The third component consists of the five types of markets in which the organization can sell: the consumer. producer. government." Young people in the region are playing an increasingly significant role in the consumption of products and services. META MARKETING Meta marketing is using a combination of two or more marketing variables for marketing. financial intermediaries). price. political and technological changes that are slow to form. .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. 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. place. and international markets. physical distribution firms. marketingservice agencies. The first is the organization’s internal environment—its several departments and management levels—as it affects marketing management's decision making. The second component includes the marketing channel firms that cooperate to create value: the suppliers and marketing intermediaries (middlemen. a large number of people are joining the workforce. or longer. economic. The role of the youth in consuming products and services as well as in influencing family consumption decisions is undergoing a perceptible metamorphosis.
and policies. All departments must “think consumer” if the firm is to be successful. Areas such as finance. R & D. 3). This could be deemed the internal environment.The Company’s Microenvironment Microenvironment consists of six forces that affect its ability to serve its customers. seeking and working with resellers is not easy because of the power that some demand and use. and accounting all produce better results when aligned by common objectives and goals. They are an important link in the company’s overall customer “value delivery system. However. Marketing Intermediaries Marketing intermediaries are firms that help the company to promote. sell. Suppliers Suppliers are firms and individuals that provide the resources needed by the company and its competitors to produce goods and services. purchasing. Let’s discuss these forces in detail: a. .” 1) One consideration is to watch supply availability (such as supply shortages). Top management is responsible for setting the company’s mission. 3) Resellers often perform important functions more cheaply than the company can perform itself. 4). c. 1) Resellers are distribution channel firms that help the company find customers or make sales to them. Rising supply costs must be carefully monitored. 2). 2) These include wholesalers and retailers who buy and resell merchandise. b. The Company The first force is the company itself and the role it plays in the microenvironment. broad strategies. objectives. manufacturing. and distribute its goods to final buyers. 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. Physical distribution firms help the company to stock and move goods from their points of origin to their destinations. 1). 2) Another point of concern is the monitoring of price trends of key inputs. The goal is to provide superior customer value and satisfaction. Marketing managers must make decisions within the parameters established by top management.
No single competitive strategy is best for all companies. Generally.) help the company target and promote its products. 3). International markets (buyers of all types in foreign countries). 5) Local publics--includes neighbourhood residents and community organizations. credit companies. A company must secure a strategic advantage over competitors by positioning their offerings to be successful in the marketplace.) help finance transactions and insure against risks. Competitors Every company faces a wide range of competitors. Reseller markets (buy goods and services in order to resell them at a profit). features. 4) Citizen-action publics--a company’s decisions are often questioned by consumer organizations. 4). etc. These markets normally include: 1). etc. e. . Consumer markets (individuals and households that buy goods and services for personal consumption). f. Customers The company must study its customer markets closely since each market has its own special characteristics. d. 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. media firms. Business markets (buy goods and services for further processing or for use in their production process).Marketing service agencies (such as marketing research firms. 2) Media publics--carry news. and editorial opinion. A company should prepare a marketing plan for all of their major publics as well as their customer markets. advertising agencies. publics can be identified as being: 1) Financial publics--influence the company’s ability to obtain funds. 3) Government publics--take developments into account. insurance companies. Financial intermediaries (such as banks. Government markets (agencies that buy goods and services in order to produce public services or transfer them to those that need them). 6) General publics-a company must be concerned about the general public’s attitude toward its products and services. 5). 2).
Alternative term for niche marketing. creating. and they refer to all such items by that name even if it is a different brand. they usually think of a limited number of brand names. The Internet may allow marketers to make micromarketing even more effective. Examplesa) The term googling describing the act of online searching. 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.7) Internal publics--workers. and the board of directors. Designing. MICRO MARKETING: It involves targeting potential customers at a very basic level. and advertising campaigns for the benefit of very specific geographic. When people think of examples of a product type or category. b) Very few people realize that "Band-Aid" is a specific brand of first-aid adhesive bandage. c) Xerox is often used in case of copying. or individual household. lifestyle. specific occupation. marketing strategies. such as by ZIP code. MIND SHARE: Mind share or the development of consumer awareness or popularity. volunteers. MORPH MARKETING: DEFINITIONS➢ It is a strategy in which marketer provides a product with an envelope of service---wiki. or psychographic segments of the consumer market.com ➢ Morph marketing is a marketing as per the changing requirements of the customers. and manufacturing products.answers. managers. 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. demographic. . is one of the main objectives of advertising and promotion.
V is taken out for service.➢ It is also known as PACE MARKETING as it provides pace to the business. they also provide a new car as a replacement. ➢ Mercedez BENZ provides instant service for your car . EXAMPLES➢ LG Provides a replacement T. ➢ FOR DETERGENTS LIKE NIRMA AND GHARI it is the rural market . ➢ Most valuable customer can be a single customer as well as an organization that provides maximum profit. it is INDIAN RAILWAYS. ➢ Various car companies take all their car’s models back if they found that some fault had occurred in their cars somewhere as a safety precaution.V when your faulty T. Marketers target customers that can provide the greatest discounted present value of future profits. or customer segments. if default is incurable . EXAMPLES: ➢ GENERAL ELECTRIC is the most valuable customer for IT GAINT BIRLASOFT(60%projects that birlasoft handles comes from GE. ➢ These customers are the real assests of the company. MOST VALUABLE CUSTOMERS: DEFINITIONS: ➢ Customers. ➢ For sleepers manufactures. ➢ Nokia mobiles provides new battery as a replacement for the faulty BL5-C battery. MOTIVATION: . providing the largest stream of profits over the relevant time horizon.
or to get maximum mileage out of established brands that it has acquired. Examples: ➢ Lever Brothers sells washing powders under the Persil. ➢ Motivation is related to. ➢ When a company has achieved a dominant market share. EXAMPLES: ➢ MASLOWS HIERARCHIAL theory of motivation that caters physiological . theoretically.self-actualization needs in a hierarchial order. it can also be used to describe the causes for animal behavior as well. esteem . or it may include specific needs such as eating and resting.social. motivation may be rooted in the basic need to minimize physical pain and maximize pleasure. or to differentiate its offering to different market segments. or it may be attributed to less-apparent reasons such as altruism. safety . emotion. or a desired object. or avoiding mortality. morality. ideal. Motivation is said to be intrinsic or extrinsic. goal. selfishness. multibrand strategy may be its only option for increasing sales still further without sacrificing profitability. ➢ Conceptually.DEFINITIONS ➢ Motivation is the driving force which causes us to achieve goals. The motive may be that the company wishes to create internal competition to promote efficiency. The term is generally used for humans but. but distinct from. state of being. . ➢ 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. Omo and Surf names. motivation should not be confused with either volition or optimism. ➢ According to various theories.
or direct personal communications by letter.➢ Cadbury sells chocolates under the Dairy Milk. a web site. 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.--monash dictionary of marketing ➢ Multichannel marketing is marketing using many different marketing channels to reach a customer. ➢ Heinz sells canned convenience foods under the Baked Beans. In this sense.Stefan Hafner. a mail order catalogue. ➢ GITANJALI GROUP have following brands under its nameNakshatra . a channel might be a retail store. Spaghetti Hoops and Alphabetti Spaghetti names. measured in terms of customer response and conversion of sales. commonly. Multichannel retailers are also called Merchandising Conglomerates. Bournville and Fruit & Nut names. Some companies target certain channels at different demographic segments of the market or at different socio-economic groups of consumers. Diya . so that the details and prices of goods on offer are consistent across the different channels. MULTICHANNEL MARKETINGDEFINITIONS➢ A system in which a producer uses more that one channel of distribution. It might also be supported by detailed analysis of the return on investment from each different channel. ➢ To be effective multichannel marketing needs to be supported by good supply chain management systems. D’damas . producers who use multichannel marketing systems operate their own retail stores as well as sell through other wholesalers and retailers.
➢ Railways also sells their tickets through their reservation counters.COM. EXAMPLES: ➢ Mobile companies like nokia sells their mobiles using their own stores PRIORITY. depending on the meaning of the input matrix: ➢ Classical multidimensional scaling . then assigns a location to each item in N-dimensional space.and through others means like HOTSPOT and interet(E-COMMERCE).COM.MAKE MY TRIP. For sufficiently small N. An MDS algorithm starts with a matrix of item–item similarities.IRCTC website and other registered agents. the resulting locations may be displayed in a graph or 3D visualisation. ➢ MDS is a special case of ordination.retail outlels like BIGBAZZAR.SHOPPER’S STOP.-wikipedia.offices and through other sites like YATRA. where N is specified a priori. ➢ AIRLINES sells their tickets by their websites.------------.—(Wikipedia) TYPES OF MULTIDIMENSIONAL SCALING: MDS algorithms fall into a taxonomy.➢ MultiChannel marketing allows the retail merchant to reach its prospective or current customer in a channel of his/ her liking. 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.
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. The relationship is typically found using isotonic regression. ➢ Louis Guttman's smallest space analysis (SSA) is an example of a non-metric MDS procedure. ➢ Non-metric multidimensional scaling In contrast to metric MDS. 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. Need means a “felt state” or a sense of deprival.(google) EXAMPLES: ➢ Ujala Supreme was a product made to suit customer needs for whiter clothes. . NEED: DEFINITIONS: ➢ Needs are the basic human requirements. Need is a negative word. and the location of each item in the low-dimensional space. A useful loss function in this context is called stress which is often minimized using a procedure called Stress Majorization. non-metric MDS both finds a nonparametric monotonic relationship between the dissimilarities in the item-item matrix and the Euclidean distance between items. ➢ 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.
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. at the expense of causing market-share erosion. their prices increases ato a great extent(much more than the neutral price) ➢ Sometimes companies reduces their product prices to gain market share. NEUTRAL PRICE: DEFINITIONS: ➢ The price for a product at which its market share will hold at the current level. hence Maruti refitted cars with heaters. ➢ TATA MOTORS launched NANO to caters to the need of middle class as a replacement of two-wheeler. ➢ Widely used concept helps marketers to design their strategy and saves promotional and advertizing costs. ➢ Setting a price above the neutral price is a tactic for increasing unit profit margin.➢ Fair and Handsome was a product as a fairness cream specific for men. EXAMPLES: ➢ During shortage price of vegetables and other essential items. ➢ Ghari detergent and nirma generally caters to the need of rural population. . ➢ Air conditioners were not needed in cars in European countries. setting price below the neutral price is a tactic for gaining share. NEED BASED SEGMENTATION: DEFINITIONS: ➢ Group consumers into segments based on similar needs and benefits. ➢ Each segment is satisfied by same kind of products and offer. ➢ TATA DOCOMO introduces 1 PAISA/SEC .
the products aimed at a wide demographic audience. Given the complexity of the human brain. the Niche Market is the highly specialized market that tries to survive among the competition from numerous super companies. As of special note. however many researchers caution that neurological research should not form the sole basis of marketing decisions. these research activities have not been universally applauded though. Market niches do not exist by themselves.----(MARKETING MANEGEMENT BY KOTLER) NICHE MARKETING: DEFINITIONS: ➢ A niche market is the subset of the market on which a specific product is focusing. with the resulting low price (due to price elasticity of demand). marketers are trying to move toward a more complete picture of what goes on inside consumers’ heads. Critics thinks that such a development will only lead to more marketing manipulation by companies. as well as the price range. ➢ Small but profitable segment of a market suitable for focused attention by a marketer. So to speak. By adding neurological techniques o their research arsenal . but are created by . are said to belong to the mainstream niche—in practice referred to only as mainstream or of high demand. ➢ Every single product that is on sale can be defined by its niche market.NEURO MARKETING: DEFINITIONS: ➢ The term neuromarketing has been used to describe brain research on the effect of marketing stimuli. production quality and the demographics that is intended to impact. Narrower demographics lead to elevated prices due to the same principle. therefore the market niche defines the specific product features aimed at satisfying specific market needs.
ESPN. religion. ➢ organisations that buy and distribute goods and services for reasons other than the return of profit to their owners. ➢ ➢ ➢ ➢ ➢ ➢ ➢ EXAMPLES: Mercedez . Batra regarding loss of hair. ➢ 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. PORSCHE and other luxury cars are targeted only to rich urban class who can afford them. or profession. gender. with some examples revolving around geographic location. Pierre Cardin pens cost RS 250 each Advertisement campaign by Dr. age. sports channels like STAR Sports. sexual orientation. . and by offering products that satisfy them. ➢ NDTV launched GREENATON. While the marketer is open to consumers of all types. BMW . Similarly. 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. A number of television channels cater to the need of a particular niche. for example. Cars like Hyundai Sonata .----Monash dictionary of marketing EXAMPLES: ➢ AIRCEL launched SAVE TIGER CAMPAIGN. Honda City are targeted to upper middle class. 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. 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. ➢ NON-PROFIT MARKETINGDEFINITIONS: ➢ Marketing activity undertaken by a firm whose primary objective is one other than profit.identifying needs or wants that are not being addressed by competitors.
Objects. OBJECT: (What does the market buy?) DEFINITIONS: ➢ It is defined as the object of purchase or what does the consumer buy. Outlets. etc that the consumer seeks? Products – soft drinks. Occasions. sizes. Objectives.passionate sporty guy. What are the features . ➢ BILL AND MELINDA GATES lauched a foundation to help people from disesses like malaria. Operations. 7 O’s model of study of consumer behaviour: In order to understand the consumers in the target market. Product forms – cols v/s lime v/s orange Brands – Coke v/s Pepsi EXAMPLES: ➢ Hero Honda karizma is an object for young . marketers should follow the 7 O’s framework of consumer research.➢ TATA TEA launches JAGO RE CAMPAIGN.flavours. . Organizations. The 7 O’s stand for – Occupants . colours . ➢ IT gaint INFOSYS has a foundation which works for the welfare of society.
income.EID etc. educational qualifications of the consumer. diwali . Birthdays Aniversary Valentine day OCCUPANT (Who constitutes the market? ) DEFINITIONS: ➢ Occupant is defined as those who constitute the market. gender. . Helps to understand consumer’s geographic. 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. ➢ Indigo airlines for people loving cheap and economic cost airlines ➢ Parker pens for middle level executives. EXAMPLES: ➢ ➢ ➢ ➢ ➢ Festival season—holi . What motive is he trying to satisfy? EXAMPLES: ➢ To gift to someone during birthday. demographic. ➢ 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. ➢ Demographic profile is the study of age. psychographic & media graphic profile. occupation. Holidays ie weekends. 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.➢ Tata nano for middle class who need it as a replacement for scooter.
or whole of the market research process. data gathering. including the internet. 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.--------(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. Media graphic are the media habits of the consumer.— (WIKIPEDIA) EXAMPLES: ➢ Distribution of pamphlets during promotion of products. 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.➢ Psychographic profile is the study of the lifestyle of the consumer as expressed by activities . Burns & Ronald F. Alvin C. ONLINE MARKET RESEARCH The use of computer networks. analysis. Marketing Research. ➢ Personal selling ➢ Promotion through posters ➢ Advertisements in T. research design. Bush When organizations use internet to support a phase. and report writing and distribution.V and radio stations. it is termed as online market research. interests & opinions of the consumer. to assist in any phase of the marketing research process. . ➢ Geographic profile is the region to which the consumer belongs . including development of the problem.
Marketing Research. well-educated professionals. working mothers can be effectively reached through online research. Outlets. Although online research requires some prior advanced scheduling and preparations. The 7 O’s stand for . marketers should follow the 7 O’s framework of consumer research. This module of market research also allows speed of execution. Teens. Objectives.Occupants. Organizations. Gilbert A. Objects. data analysis and report writing and distribution are carried out through online tools and services. Harper W. According to the authors of Online Marketing Research: “ The advent of the Web has led to a revolution in the research community” Today RFPs.Text & Cases. 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. Jr. in the long run it proves to be worth the effort. Who constitutes the market? Occupant What does the market buy? Object . Occasions. without engaging in any kind of travel and/or living expenses.Marketing Research. data collection. Churchill. Boyd & Stanley F. Operations. Online research is relatively low in cost in the sense that participants from all over the globe can pitch into the discussions. sample design and ordering. 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. 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.
What kind of background information do consumers collect before buying & from whom they seek this information. .Why does the market buy? How does the market buy? Objective Operation Who participates in buying? Organization When does the market buy? Occasion Where does the market buy? Outlet HOW THE CONSUMERS BUY(OPERATIONS) . Example – information collected before purchase.
and the design of processes for the constant improvement of the operation. A visit to the "Short-term Decisions" page will then be appropriate for a review of some common examples of short-term operational decisions. If the strategy is to compete on cost. A dictionary of business.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. such as planning production and sales. at the strategic level. Short term operational decisions are also called Present Economic Studies and they require the estimation of costs associated with various production and manufacturing activities. plant facilities. OPERATIONAL STRATEGY A plan to transform an organization's overall strategic objectives into operational deliverables. Decisions that involve routine tasks. It involves the design of the product or service and the processes by which the product or service is produced.Oxford University Press . scheduling personnel and equipment. If. adjusting production rates. and controlling the quality of production. the plan must produce the product cheaply within the limits of acceptable quality. These costs provide the basis for developing successful business strategies and planning future operations. Some of the more common decisions related to plant operations involve material. the organization decides to compete in the market on the basis of superior quality. the operations strategy has to plan to produce a package incorporating the specified quality within stated financial constraints. To make operational decisions it helps to understand some fundamental cost-volume relationships related to the operation of a company. and in-house capabilities of company personnel. the way in which production is managed and controlled.
SWOT Analysis can now influence the Opportunities for the business.” 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. but also exceed those of its competitors. and Threats involved in a project or in a business venture. Opportunities can be classified according to their attractiveness and their success probability. Operational strategy therefore focuses on issues of resources. Keeping in mind the Company Strengths. OPPORTUNITIES SWOT analysis is a strategic planning method used to evaluate the Strengths. A marketing opportunity is an area of buyer need in which a company can perform profitably. Philip Kotler These are external chances to make greater sales or profits in the environment. people etc. The company’s success probability depends on whether its business strengths not only match the key success requirements for operating in the target market. Mere competence does not constitute a competitive advantage. The technique is credited to Albert Humphrey. 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. who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. Weaknesses. These can be seen as targets to achieve and exploit in the future for example: .“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. Opportunities. The best-performing company will be the one that can generate the greatest customer value and sustain it over time. processes. through the reconciliation of market requirements with operations resources.
2. A developing market such as the Internet. The plan of action identifies the niche or service identity. A new international market. Broadband technology has been installed in the area (useful for Internet users) 5. Moving a product into a new market sector In SWOT. customers served. 4. A market vacated by an ineffective competitor. For example an opportunity could be: 1. The results of such planning and development provide an overall strategy and framework for achieving success. resources. Competitor going bankrupt (Takeover opportunity?) 4. Increased spending power in the Local/National economy 6. as well as employment centered consultation.1. Good financial position creating a good reputation for future bank loans and borrowings 2. Specifically. Skilled workforce means that they can be moved and trained into other areas of the business 3. and 2) job seekers with significant disabilities. the services that will be marketed to community employers will be the availability of a rich pool of personnel options. and the outcomes which are expected. ORGANIZATIONAL MARKETING Simply put. 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. Marketing efforts are directed toward two constituents: 1) community employers. joint ventures or strategic alliances. 3. opportunities and threats are external factors. Mergers. Moving into new market segments that offer improved profits. competition. 5. .
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 OUTDOOR ADVERTISING Technically correct term for the ADVERTISING MEDIUM colloquially referred to as 'posters'. The category does not include POSTER SITES in railway or underground stations. on and in buses. but the nature of the demand. with a 4 per cent share of the total UK advertising expenditure. Types of outdoor advertising include billboards. in industry analyses and statistics. interiors and exteriors of buses. 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.Virginia Commonwealth University. and so on. bus benches. and signage posted on the exterior of your own brick-and-mortar location. 'Outdoor and transport' ranks third among the five MAJOR MEDIA. taxis and business vehicles. The two are taken together. organizations are seen as buying deliberately. The term for this subset is 'transport advertising'.even if the PRODUCT being traded is for eventual personal consumption. Marketers thus require to base their approaches accordingly . or advertising spaces in underground trains. usually with quantifiable benefits in view. The marketing approach is thus identifiably linked to the subsumed existence of ORGANIZATIONAL BUYER BEHAVIOUR. The key CONCEPT is that the fundamental differentiating feature between types of marketing activity is not the nature of the goods being traded. Westburn dictionary of marketing Any advertising done outdoors that publicizes your business's products and services. Whereas CONSUMERS are perceived as buying frequently (if not always) for immeasurable personal satisfaction. .
is focused on marketing to consumers when they are "on the go" in public places. Outdoor advertising is essentially any type of advertising that reaches the consumer while he or she is outside the home. totaling $6. Outdoor advertising formats fall into four main categories: billboards. low cost. ➢ For example. creative limitations OVER POSITIONING Specifying the brand or product too narrowly with the result that some of the target customers are not reached effectively. transit. Out of home advertising. therefore. print. high repeat exposure. It means that buyers believe that the product is meant for a very select audience because it is premium priced. in transit.99 billion in annual revenues in 2008 in the USA. This is in contrast with broadcast.Entrepreneur Encyclopaedia Out-of-home advertising (or outdoor advertising) is made up of more than 100 different formats. so the potential customer group becomes too small. people thought that it was meant for upper class consumers. 1600. when Aqua Guard introduced Aqua Sure. and alternative. Westburn dictionary of marketing Over positioning is when your marketing makes the product too special. PACKAGING . Advantages of Outdoor advertising: Flexibility. and Internet advertising. and/or in specific commercial locations (such as in a retail venue). Whereas the product was priced only at Rs. street furniture. waiting (such as in a medical office). low competition Limitations: Limited audience selectivity.
etc) originally intended merely to contain and protect a product.The materials (glass. Prof. and assist in promotion. ➢ Consumer Packing: This packaging holds the required volume of the product for ultimate consumption and is more relevant in marketing. 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. tobacco etc. in recent years the role of packaging has been broadened so that. display. and otherwise make the product marketable and keep it clean. Monash University marketing dictionary Packaging is wrapping in which an item is presented for sale. Ex-Professor. cardboard. its purpose is to attract attention. describe. identify. promote. provide additional product information. Philip Kotler Packaging can be defined as the wrapping material around a consumer item that serves to contain. transport and storage. protect. Dileep Kumar M. Eg: fiberboard. . and it might include up to three levels of material. create attractive packaging in order to promote the sale of an item. The container is called the package. combine things together as one inseparable unit Packaging includes the activities of designing and producing the container for a product. Eg: beverages. presentation of a package pack. in addition to containment and protection. Symbiosis (SCMHRD. aluminium. wrap. wooden crate etc.
• 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. .
a product is widely promoted and its introductory-price is kept comparatively lower. (3) the market is large enough to sustain relatively low profit margins. (2) it has elasticity of demand (buyers are price sensitive).higher long-run profit. Under this approach. Setting prices low in order to gain as much market share as possible as quickly as possible. to attract new customers. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. Strategy adopted for quickly achieving a high volume of sales and deep market-penetration of a new product. The price charged for products and services is set artificially low in order to gain market share. the price is increased. This strategy is based on the assumption that (1) the product does not have an identifiable price-market segment. Once this is achieved. The aim is to achieve a large market share by high initial sales. often lower than the eventual market price. 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. and (4) the competitors too will soon lower their prices. The strategy works on the expectation that customers will switch to the new brand because of the lower price. It is introducing the product at a low price intended to capture the mass market for the product or service. rather than to make profit in the short term. • • Firms such as Texas Instruments choose this objective because they believe that higher sales volume will lead to lower unit costs and . This approach was used by France Telecom and Sky TV. .PENETRATION PRICING Penetration pricing is the pricing technique of setting a relatively low initial entry price.
or company is displayed relative to their competition. They felt Plymouth was most practical and conservative (bottom left corner). • The perceptual map below shows consumer perceptions of various automobiles on the two dimensions of sportiness/conservative and classy/affordable. Consumers answer questions about a given product based on their experience with the product and their thoughts about what the product should be. brand.PERCEPTUAL MAPPING Perceptual mapping is a graphics technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Any more is a challenge to draw and confusing to interpret. and the results are used to make improvements in the product or in the creation of new products. This sample of consumers felt Porsche was the sportiest and classiest of the cars in the study (top right corner). Perceptual maps can have any number of dimensions but the most common is two dimensions. It is the use of a graph or map in the development of a new product. 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. Typically the position of a product. Answers are plotted on a graph.
and many others. and temporally stable"). gender roles and sexuality. • • Oprah Winfrey uses person marketing to promote her O magazine. racial identity. and a favourable opinion. PERSONALITY & SELF CONCEPT Self-concept (or self-image) is related to personality. . it presupposes but is distinguishable from self-awareness. and preferences of a target market towards a celebrity or authority figure.PERSON MARKETING It is the marketing activity aimed at creating target market awareness. such as academics (and nonacademics). 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. which is simply an individual's awareness of their self. 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). of a particular person. Which self will she try to satisfy in making a purchase? Because it is difficult to answer this question. internally consistent. It is also more general than selfesteem. which is the purely evaluative element of the self-concept. Person marketing involves efforts designed to cultivate the attention. Marketers often try to develop brand images that match the target market’s selfimage. interest. GM paying Tiger Woods 40 million for a 5 year contract ending in 2009 is an example of person marketing. self-concept theory has had a mixed record of success in predicting consumer responses to brand images. While closely related with self-concept clarity (which "refers to the extent to which self-knowledge is clearly and confidently defined.
"Social Knowledge and Social Development. Lewis. The self-concept is the accumulation of knowledge about the self. 2) In a priori segmentation. displays can range from signs and banners to coupon dispensers and video advertisements at the cash register. such as beliefs regarding personality traits. the market is split according to preexisting demographic criteria such as age." 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. Regardless of the type of display. and roles. attracts retail shoppers at the point of a purchase. physical characteristics.It is defined as the “totality of the individual’s thoughts and feelings having reference to himself as an object. point of sale (POS) marketing lures shoppers into buying additional products or services at checkout. 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. in the hope that resulting segments perfume differently in response to market mix variables. Point of sale marketing utilizes display to catch a shopper's attention. 2) Point of sale marketing. abilities. . Michael. PRODUCT 1) relating to the good or core service being sold. In other words. values. commonly known as point of purchase advertising. sex or social economic status. facilitating the library in determining geographic market are that users reside in. goals. This could the zip codes for library users.
000 onwards. It is priced at Rs. guarantee.2) Product.g. It includes tangible products as well as services. design. Pricing must be competitive and must entail profit. insurance etc. Active Salt b) Transcend memory chips come with lifetime warranty. Pricing includes not only the list price. 42. other businesses and the government. a) Colgate Toothpaste are available in various variants such as Total. shape. What your product offers that your customers value. 3) Product – Product is a bundle of utilities.g. Sensitive. financing and other options such as leasing. 10 equal to the competitor Coca Cola 2) the transactions price that the customer pays for the product. but also discounts. Pricing decisions should take into account profit margins and the probable pricing response of competitors. b) Dell Studio Laptops are priced at Rs. -Kenneth E Clow and Donald Baack PRICE – 1) The price is the monetary value of the product. a) Asian Paints – Royale Luxury emulsion has been placed by Asian Paints as a premium product. and whether/how you should change your product to meet customer needs. c) Pepsi is priced at Rs. it involves introducing new products or improvising the existing products. c) Hotel Industry which is a service is also included in product. It must provide value to a customer but does not have to be tangible at the same time. e. after sales service. Herbal. 315-345 for 1 litre. It includes the features. . It is the amount a customer pays for the product. Basically. warranty. 4) Anything that is of value to a customer and can be offered through a voluntary marketing exchange. style. 5) The physical goods sold to customers and other organisations as well as the services that are offered to individual consumers. e.
the rest being cost centers. promotion. Pricing is a fundamental aspect of financial modeling and is one of the four Ps of the marketing mix.3) The overall sacrifice a consumer is willing to make – money. shipment or invoice date. time. Automated systems require more setup and maintenance but may prevent pricing errors.Kenneth E Clow and Donald Baack PIMS (PROFIT IMPACT OF MARKET STRATEGY) — an ongoing research and consulting activity focused on competitive marketing . and quality of product. and place. energy to acquire a specific product or service. competition. Thus pricing is very important in marketing. the high-tech sets cost $43. By 1993. 6) The amount charged for a good or a service. Price is the only revenue generating element amongst the four Ps.000. price prevailing on entry.000. Sony skimmed the maximum amount of revenue from the various segments of the market the above example shows skimming pricing. In 2001. 4) Pricing is the process of determining what a company will receive in exchange for its products. a 28-inch HDTV cost a Japanese buyer just over $6. . based on factors such as: a fixed amount. market condition. The other three aspects are product. a price that many more customers could afford. Eg. Sony rapidly reduced the price over the next several years to attract new buyers. specific vendor quote. In this way. market place. When Sony introduced the world's first high definition television to the Japanese market in 1990. a Japanese consumer could buy a 40-inch HDTV for about $2000. and many others. promotion or sales campaign. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. These televisions were purchased only by customer who could afford to pay a high price for the new technology. quantity break. Pricing factors are manufacturing cost. Pricing is also a key variable in microeconomic price allocation theory. combination of multiple orders or lines. 5) Pricing is the manual or automatic process of applying prices to purchase and sales orders.
pricing higher in sub-segments that perceive the most differential worth in your product. 2) The marketing manager can charge different kinds of prices in different markets. PRICE DIFFERENTIAL — 1) The difference between the price of an offering and the price of a reference offering.Tapan K Panda 3) Selling merchandise to different buyers at different price. market share. Products that perform better than average are often priced higher than the average price. . and reducing price to appeal to other sub-segments according less worth to your product. 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.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). . PRICE CUSTOMIZATION — Setting different prices for different market sub-segments. . The research and benchmarking activity focuses on measuring metrics that track a business’s competitive position (relative overall quality/performance.Russell s. attribute relative importance.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. Products that perform worse than average are often priced lower than average. This is known as Price differential or Price discrimination. and prices of major offerings in a category for the major competitors in the market.
and good quality. Mahindra & Mahindra positioned their SUV Scorpio to life style oriented consumers. b. This dissatisfaction is called Cognitive Dissonance. 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 . c. POST-PURCHASE – 1) This is the stage in which the consumer looks for the services provided after the purchase. If the product fails short of buyer’s expectation. Examplesa. 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 buyer will be disappointed & dissatisfied. the consumer will experience some level of satisfaction or dissatisfaction. speed. exceeded them or was disappointing. Benefits being delivery. The result of positioning is the successful creation of a customer focussed value proposition. Indica by Tata Motors for small car consumers who want a more spacious vehicle.PRICE PREMIUM — The selling price of the vendor's product minus the selling price of a reference product. . It is the opposite of the price advantage a vendor enjoys when selling at a price below the price of the reference product. The goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. PRE-PURCHASE – This is the stage in which the consumer does a market research for a particular kind of product. After purchase. 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.
product line. 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. and believe they could not find to the same extent with a competitive brand . Examplesa. in the collective minds of the target market. ExampleSituation of Savlon when it entered the antiseptic lotion market in India dominated by dettol. POINTS-OF-DIFFERENCE (PODs) are the attributes or benefits consumers strongly associate with a brand. De-positioning involves attempting to change the identity of competing products. brand. relative to the identity of competing products.Associations that make up points of difference may be based on virtually any type of attribute or benefit. c. Re-positioning involves changing the identity of a product. 2) The place a good or service occupies in the mind of consumers and relative to the competition. 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. These types of associations come in two basic forms : category and competitive. . positively evaluate. b.1) Developing a specific marketing mix to influence potential customer’s overall perception of a brand . in the collective minds of the target market. relative to the identity of your own product. or organization.
government agencies. 4) Deciding where.1) How and where you sell. c) Maruti Suzuki has one of the widest chain to dealers throughout the country with multiple dealers in most cities. 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. b) Raymonds is retailed through 30. Distribution is about getting the products to the consumer. This environment is composed of laws. and pressure groups that influence and limit various organizations and individuals. order processing. 3) Place represents the location where a product can be purchased. Some examples of distribution include – Distribution channels. .000 stores in over 40 towns across India. It can include any physical store as well as virtual stores on the Internet. transportation. It is often referred to as the distribution channel. a) Nikon has centres and showrooms in almost every state across India.PLACE . For example. POLITICO-LEGAL: 1) Marketing decisions are strongly affected by developments in the political and legal environment. For example. This may include using different distribution channels. 2) It includes channel management and physical distribution. e. you might sell over the Internet or sell through retailers. warehousing. Sometimes these laws also create new opportunities for business. inventory management. how and when products will be available to potential customers. market coverage.g.
to persuade consumers to buy. Persuasion is used to stimulate consumers to purchase products even if they do not really need it. the firm generally lowers the price to capture or skim the next most price sensitive segment.Tata Mcgraw Hill 2) Pricing policy whereby a firm charges a high introductory price. .price market segment becomes saturated and sales begin to slow down. Thailand requires food processors selling national brands to market low-price brands also.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. so that low-income consumers can find economy brands.g. 2) Communication used to motivate consumers to take action. 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. . contests. e. and premiums— as inappropriate or "unfair" instruments for promoting products. In India we cannot sell electric appliances. . Example: •Norway bans several forms of sales promotion—trading stamps.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. often coupled with heavy promotion. a) Cadbury Celebrations persuades consumers to buy it during festivals b) Big Bazar organizes sales and discount offers on Republic Day etc.
As the demand of the first customers is satisfied.-Lamb. i. -investopedia PRICE POSITIONING It refers to the process of differentiating your product on the basis of price. 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. It is a temporal version of price discrimination/yield management. the firm lowers the price to attract another. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price. more pricesensitive segment. -Wikipedia 4) A product pricing strategy by which a firm charges the highest initial price those customers will pay. Selling your product at such a price at which your competitors are not selling For eg: • Tata motors launched Tata Nano as lowest price car • Micromax came up with wide range of cell phones available at lowest price QUANTITATIVE MARKETING RESEARCH . then lowers the price over time.e.
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. Marketers use the information so obtained to understand the needs of individuals in the marketplace. Place (location) and Promotion. and to create strategies and marketing plans.It is the application of quantitative research techniques to the field of marketing. It has roots in both the positivist view of the world. People who respond (respondents) are asked to complete the survey. 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 . Price. it typically involves the construction of questionnaires and scales.
effectiveness of in-store display and promotion efforts. sales trends. and other associated aspects. 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. provided as subscription-based service by market research firms.000 retailers of mobile SIM cards. For eg: • The metropolitan cities having a population of more than 15 million have more than 20. stock levels. Retail-audit service providers gather information on a brand's sales volume. 60% of them would also be retailing mobile handsets RETAIL MARKETING STRATEGY .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.
price. By this type of marketing the marketer creates a positive attitude in the minds of the consumers. Each type of retail business has to make decisions about all the details of its marketing mix. 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. 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. promotion and packaging.Retail marketing strategy refers to how a store and its products sell goods to its target customers. place. Examples: • Hospitals provide various facilities like free health check-up • Celebrating world heart day for avoiding heart related problems ROUTINE BUYING BEHAVIOUR . A marketing mix consists of the product. For eg: • Amway sells their product through direct selling • Hul sells their products through wholesaler .
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 . Example • Consumer involvement is very low in purchased products like salt. vegetables frequently PENETRATION PRICING It is the pricing technique of setting a relatively low initial entry price. to attract new customers. The strategy works on the expectation that customers will switch to the new brand because of the lower price.Many products are bought under condition of low consumer involvement & absence of significant brand differences. The marketer should generalize the brand and provide wide distribution of the product. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. often lower than the eventual market 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.
Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products.The Product Appraisal Table is a standardized layout for doing the comparison for Product Appraisal. 2) In the fast food industry in which multiple items are combined into a complete meal.fenell). This involves differentiating it from competitors' products as well as a firm's own product offerings. and a Final Fantasy face plate. PRODUCT BUNDLE PRICING:1) It is defined as “combining several products and offering the bundle at a reduced price”. 2 Xbox 360 wireless controllers. an Ethernet cable. Examples:- .Product Appraisal Table:.” for example. 5) The process of creating and designing products so that consumers perceive them as different from competing products. 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. a standard definition Xbox 360 composite A/V/ cable. includes an Xbox 360 console. 2) It is the process of distinguishing a product or offering from others. PRODUCT DIFFERENTIATION:1) A marketing process that showcases the differences between products. (-marketing concept and stratergies-biztantra-pride.(-Smith) 4) It represents a product orientated approach that it is an ‘inside out’ management attitude to marketing planning. Final Fantasy XIII. to make it more attractive to a particular target market. an Xbox 360 250GB hard drive. 3) Product Differentiation is concerned with the bending of demand to the will of supply. This package sells at a price of $399. This saves the customer roughly $35 compared to if these items were purchased individually.
2) The ratio in which the finished goods is sent off to the market. Millstone Coffee is made from Arabica beans. bran flakes. [Packaging] Tide costs $5 per bottle.1) Wheaties is The Breakfast of Champions. Examples:1) Pepsi has good production distribution system due to which it is available even in rural areas. (Both come from the same company BTW) [ingredients] 2) chocolate bars. [Pricing] Folgers coffee is made from Robusto coffee beans. .00 per bottle. product quality(different ingredient content) and brands. Bran Flakes is. Safeway detergent costs $3. well. 2) Hera Honda its product available in all over India by a good distribution system. The product launch signifies the point at which consumers first have access to a new product. 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. 3) Making the goods available to the target market. 2) The promotional plan for the introduction of a new product. PRODUCT LAUNCH:1) The debut of a product into the market. 3) Duck Bags distributes its products more in Pondicherry and other areas where there is rainfall for longer duration in a year. product differentiation through packaging.
5) Hero Honda provides a wide range of Motor Bikes. 4) Coca Cola recently launced its product ‘Minute Made Nimbu Fresh’ to attack Pepsi’s ‘Nimbooz’. 3) HP produces a wide range of printers. mobiles. Thus all products within a product line are related. Examples:1) An example would be a video manufacturer offering different video recorders with different features at different prices. offered by a firm. target at the same customer groups. 4) Product lines: a group of products. . closely related by production or marketing considerations. 5) Product Line: Product line is a collection of products. that satisfy similar needs for different target audiences. 4) LG produces different varities of television. PRODUCT LINE:1) It is a group of products that is closely related because they perform a similar function. 6) A set of related products sold by a single company. color. 2) Nokia produces a wide range of mobile phones throughout the year which has different features. that exists within the overall product mix. quality etc. AC’s and other consumer durables. but may vary in terms of size. and marketed through same channels. 3) Samsung recently launched ‘Samsung Galaxy’ mobile phone.2) Recently Mahindra launched its motor bike ‘Mahindra Stallio’ which is promoted by Aamir Khan. 3) Pricing different products within the same product range at different price points. 2) Product lining is the marketing strategy of offering for sale several related products.
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. 5) All of the different products that a company makes or sells.PRODUCT MIX:1) The complete set of all products offered by a firm is called its product mix. 4) This goes beyond simple inventory to take into account which products bring the most revenue. are the most popular and which are less so.(marketing management-asian books-s k sarangi). 3) The number of individual products produced or sold by an organization. Ex:.Colgate-Palmolive Product Mix. (Marketing-TMH-Grewal and Levy) 2) It is the set of all products lines and items that a particular company offers to buyers. 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) .
Examples:1) Coke in Taal was the first active product placement. or company. 2) Product Promotion involves disseminating information about a product. Exampes:- . usually categorized psychographically or demographically.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) While telecasting Cricket Tournaments companies generally promote their product by Ads which generally consists of Soft Drinks. product line. 3) Projected population 4) Degree of loyalty that consumers feel towards the brand. PRODUCT RELATED SEGMENTATION:1) The method of identifying consumers by consumption or amount of product usage. Snacks. 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. Automobiles. 2) Percentage or number of a sample that represent the population. brand.
e. 9) Promotion helps people know that the right product at right price is available at right place. 8) Promotion is an important marketing strategy and is the sparkplug of the marketing-mix. This is done by product related segmentation. a drink at the end of a long and tiring work day. sales force. is the ultimate indignity of the democratic process-Adlai Stevenson. 2) Advertisements contain the only truths to be relied on in a newspaper. 7) Promotion is a form of communication with an additional element of persuasion to accept ideas. PROMOTION:1) The idea that you can merchandise candidates for high office. services. like breakfast cereal. Examples:- . 5) The method by which the benefits of those goods and services are communicated in an effort to justify the price. public relations. 10) Promotion is the process of marketing communication to inform. 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. etc 2) Taj group of hotels identifies those people who will be loyal to them even if they increase their prices. products. remind and influence consumers in favour of a product or service. 6) Communicating with the consumers under the relevant heading i. persuade. exhibitions. or the acceptance of ideas. to persuade and convince them that those products have want satisfying capabilities. for example is shown as being used in different situations like a party. for unexpected guests.Thomas Jefferson. direct mail etc. advertising.1) Rasna. sales promotion. 4) Promotion is persuasive communication to inform potential consumers of the existence of products.
Examples:1) Nike uses a tick mark as promotional merchandise in all its products. attitudes. 2) Parle Hippo Chips has a hippopotamous which is black in colour as its promotional merchandise. 2) Titan’s Fasttrack brand appeals to the young youth. targets people who want good looking watches at reasonable price. 3) The Commonwealth Games recently held in Delhi had Shera. It even promotes to have the latest technology at lowest price. a tiger as its promotional merchandise. interests. 2) Psychographic segmentation is based on traits. It even promotes by giving Discount offers and lowest price on Wednesday. 2) Promotional Merchandise is anything that can be imprinted with your company info.They avoided beef and introduced vegetarian burger.1) Big Bazaar promotes itself by promising to have the lowest price products and in its Ad’s it uses Dhoni and Asin. . Sonata. PSYCHOGRAPHIC SEGMENTATION:1) It is the science of using psychology and demographics to better understand consumers. Promotional Merchandise:1) These are articles of merchandise that are branded with a logo and used in marketing and communication programs. or lifestyles of potential consumer groups. 3) Titan’s value for money brand. and then provided aside to customers or prospects. Examples:1) Mc Donald’s changed their menu in India to adapt to the consumer preferences. 2) Micromax mobile uses promotion strategy of sponsoring Cricket Tournaments and the Bollywood events.
shirts and trousers as Rs 999 only or Rs 1299 only to the advantage of the consumers regarding pricing.4) Femina. a woman’s magazine is targeted at the woman with a broader world-view. PUBLIC RELATIONS:1) Includes communications directed internally to employees of the company or externally to consumers. 3) Koutions price their products i. Rs 299 etc. 2) A pricing technique that creates an illusion for customers or that makes shopping easier for them. 7) A pricing approach that considers the psychology of prices and not simply the economics-Kotler. Examples:1) Bata produces products which are priced like Rs99 or Rs599 or Rs999 to get the psychological pricing advantage. Top Ramen.e. other firms. 5) Instant Noodle manufacturers. 6) using price as a means of influencing a consumer's behaviour or perceptions. etc target at time constrained customers.Cabe Kline. . 5) Refers to consumer perceptions of retail prices. 3) Setting prices according to the psychographics of the aimed-at market segment. fast-to-cook food brands such as Maggi. PSYCHOLOGICAL PRICING:1) The recognition that buyer's beliefs and perceptions affect their evaluations of prices. 2) A variety of programs designed to promote or protect a company’s image or its individual products. 4) Setting the price of a product based on the wanted public perception for that product. the government and the media – Kotler. and not round figures. ready-to-eat. 2) Tata Sky has schemes which are priced as Rs149.
quality camera.e. there is no direct payment from the originating organization to the media carrying the information.K. spouse. 4) to communicate information about the organization and/or its products and services to audiences that may go beyond prospective customers. and is influenced by factors such as the consumer's (1) societal role (parent. 2) Purchase decision making pattern that is a complex amalgam of needs and desires. for official purpose. worker. unlike advertising. to include any other group that the organization wishes to influence. Examples:1) While buying a mobile a person will keep in mind the requirements from the mobile i. listening music. such as investors or governments. (2) social and cultural environment and norms. then look for the pricing.3) Mass-communications for which. –S. etc. 2) When ever any company need to address the media the generally the public relation officer makes the necessary arrangements for it. 5) The total process of building goodwill towards a business enterprise and securing a bright public image of the company is called public relations. etc.Sarangi Examples:1) When Honda Motors had to call back its Honda City model its PR manager had to give official statement about it. . Then need to look for the products and the companies which satisfy the condition.). after consulting every one the final decision is made. and (3) aspirations and inhibitions. PURCHASE BEHAVIOR:1) Purchase Behavior is the decision processes and acts of people involved in buying and using products.
PURCHASE INTENTION:- . payment scheme he /she makes the final decision to buy a particular mobile. the consumer will (barring interference or unforeseen events) follow through and make the purchase. distributor. 2) It is the aspects which are kept in mind while purchasing a product. 4) Having developed an intention to buy something. product. purchase timing.PURCHASE DECISION:1) The stage in the customer buying process when the purchase decision is actually made. brand choice. 5) Through the evaluation process consumers will reach their final purchase decision and they reach the final process of going through the purchase action. These aspects are the Product choice. dealer choice. Examples:1) While buying a Mobile Phone when all the requirements is satisfied and the buyer is satisfied with the brand. payment method. 3) The consumers preference among the brands in the choice set and the intention to buy the most preferred brand. purchase amount.
Examples: . You can calculate the profitability of a profitability segment by setting off its sales revenues against its costs. SEGMENT POSITIONING A marketing strategy is based on expected customer behaviour in a certain market. A profitability segment corresponds to a market segment. attitude towards it and perceptions of it and of the company which produces it. A profitability segment in an operating concern is defined by a combination of characteristic. 2) Purchase Intentions the likelihood that a consumer will buy a particular product resulting from the interaction of his or her need for it. The marketer employs a selective de-marketing of their product. These processes are chronological steps which are dependent on each other. a few of them may be: increasing price. cancelling all incentives etc.Philip Kotler SELECTIVE DE-MARKETING It is a marketing strategy employed in a condition of overfull demand.Philip Kotler SEGMENT PROFITABILITY Object within Profitability Analysis to which costs and revenues are assigned. 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.1) A plan to purchase a particular good or service in the future. Out of the various steps. In order to know the customer and its expected buying process of segmenting and positioning is needed.
so the company has a battery of selling and promotion tools to stimulate buying. and political parties. undertake an aggressive selling and promotion effort. if left alone. An example of this would be airline companies offering first. holds that consumers and businesses. another common business orientation.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. The organization must. selective de-marketing was employed • Goa tourism during the time of new year faces the same situation and hence adopts this type of marketing. The selling concept is practiced most aggressively with unsought goods—goods that buyers normally do not think of buying. . The company does not need to worry about too many outlets. 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. Most firms practice the selling concept . Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups. business (segment 1) or economy class tickets (segment 2) . The selling concept is also practiced in the nonprofit area by fund-raisers. such as insurance and funeral plots. with separate marketing programmed to attract the different groups. therefore. college admissions offices. SELLING CONCEPT The selling concept. it can gain adequate market coverage with more control and less cost than intensive distribution.• Due to the high demand of I-phone. This concept assumes that consumers must be coaxed into buying.
shopper marketing is . Prospects are bombarded with sales messages.when they have overcapacity. . that they won’t bad-mouth it or complain to consumer organizations and will forget their disappointment and buy it again. Essentially. although this type of marketing plays a role in shopper marketing campaigns. In fact. But marketing based on hard selling carries high risks. something marketers that use hard selling should bear in mind. 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. the public often identifies marketing with hard selling and advertising. As a result. 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”.Philip Kotler Provision of assistance to customers and clients • Examples Airtel provides mobile network. It assumes that customers who are coaxed into buying a product will like it. This differs from marketing targeted at consumers in general to get them to buy products. and if they don’t. 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. In modern industrial economies. These are indefensible assumptions. bad news travels fast. Their aim is to sell what they make rather than make what the market wants. one study showed that dissatisfied customers may bad-mouth the product to 10 or more acquaintances.
Social classes are relatively homogeneous and enduring divisions in a society.: Frequent flyer scheme for regular user of an airline company. a website. Reference groups Reference groups influence a person’s behaviour directly or indirectly. Membership card by retail stores like shoppers stop.: Automobile companies like Mercedes. Not all companies use shopper marketing as a tool.g. but those which do may pursue extensive advertising campaigns to get their messages out. pantaloons to customer providing benefits at many other outlets in addition to the discount provided. Audi. aimed at serving the segment as well as possible. . SOCIAL CLASS: Sociology identified that social stratification is common among many societies. This is generally chosen by a smaller firm.marketing in the purchase environment. family. which are hierarchically ordered and whose members share similar values. and BMW targets the upper segment of the society. SOCIAL FACTORS They include reference groups. whether that is a retail store. or one which has only located one attractive market segment. Social class is a type of stratification. E. or a wholesaler. SINGLE SEGMENT STRATEGY A single segment strategy involves the firm choosing its single preferred market segment and targeting it with a single marketing mix.g. E. interests and behaviour. and roles and statuses of a person.
to society. and to the universe. to organizations. He has a family of procreation consisting of spouse and children. neighbours. brothers and sisters. to nature. Family Family members constitute the most influential primary reference group or membership group. a worldview that defines their relationships to themselves. Examples: .Groups having a direct influence on a person are called membership groups. Society shapes the beliefs. Such groups are called aspirational groups. People are influenced in the consumption and purchase decisions by groups in which they are members like family. Persons have multiples statuses in different groups to which they belong. People absorb. People are also influenced by groups to which they do not belong presently. friend circle. almost unconsciously. Each person has a family of orientation that consists of his parents. 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. but want to belong in course of time. Each status has a role or group of activities to be performed. and norms that largely define these tastes and preferences. co-workers. Statuses and roles People choose products that communicate their status in society. Therefore the roles have some bearing on the consumption and purchase decisions. sports teams etc. to others. Marketers have to aware of the status symbol potential of products and brands. values.
Yet some firms and industries are criticized for satisfying consumer wants at society’s expense. and long-run societal welfare. • South Asian countries like Thailand uses more vibrant colours as compared to country like France use subtle shades. consumer interests. • 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. Are companies that successfully satisfy consumer wants necessarily acting in the best. explosive population growth. Hyderabad-Bangalore side people shop during ramzan. thumbs up. SOCIAL MARKETING CONCEPT Some have questioned whether the marketing concept is an appropriate philosophy in an age of environmental deterioration. world hunger and poverty. • Shopping trends of various countries are persuaded by festive seasons for example in India people tend to shop around dhanteras. 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. The societal . 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. which holds that the organization’s task is to determine the needs. resource shortages. • 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. wants. and neglected social services. • HMT. Such situations call for a new term that enlarges the marketing concept. long-run interests of consumers and society? The marketing concept sidesteps the potential conflicts among consumer wants.• Color of products in Islamic country is dominantly green for eg Colgate.
’ for mutual benefit. Smart companies will respond by adding “higher order” image attributes than simply rational and emotional benefits. consumer want satisfaction. an entire portfolio or an entire company. for example. • STOCHASTIC MODELLING A stochastic model would be to set up a projection model which looks at a single policy. and the outcome is noted. Based on a set of random outcomes.’ or a number of ‘causes. complain that cause-related marketing might make consumers feel they have fulfilled their philanthropic duties by buying products instead of donating to causes directly. They must balance and juggle the often conflicting criteria of company profits. Pringle and Thompson define this as “activity by which a company with an image. They believe that customers will increasingly look for demonstrations of good corporate citizenship. and increase press coverage. increase customer loyalty.marketing concept calls upon marketers to build social and ethical considerations into their marketing practices. Then . or service to market builds a relationship or partnership with a ‘cause. Critics. the model uses random variations to look at what investment conditions might be like. build sales. the experience of the policy/portfolio/company is projected. product. however. Yet a number of companies have achieved notable sales and profit gains by adopting and practicing the societal marketing concept. Some companies practice a form of the societal marketing concept called causerelated marketing. and public interest.1 for each product sale HUL did a Lifebuoy campaign to generate awareness of the importance of washing hands. Examples • Aircel launched ‘save the tiger’ campaign to develop awareness about saving the tiger • ITC generates funds for child education by donating Re. raise brand awareness. But rather than setting investment returns according to their most likely estimate. They see it as affording an opportunity for companies to enhance their corporate reputation.
does not provide a good way of estimating the cost of providing this guarantee.this is done again with a new set of random variables. 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. with varying scenarios for future investment return. At the end. Examples: A minimum investment return of 5% per annum. . a distribution of outcomes is available which shows not only the most likely estimate but what ranges are reasonable too. 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. In fact. but may be different e. for asymmetric distributions. this process is repeated thousands of times.g. A deterministic simulation.
adequate marketing information (conducting timely.34 The marketing audit examines six major marketing components: (1) the macroenvironment and task environment. Companies that discover marketing weaknesses should undertake a marketing audit. independent. ➤ The marketing audit. . companies need to undertake a critical review of overall marketing goals and effectiveness. appropriate marketing research). STRATEGIC CONTROL From time to time. and operational efficiency (using marketing resources effectively and flexibly).This is useful when a policy or fund provides a guarantee.g Stochastic modelling builds volatility and variability (randomness) into the simulation and therefore provides a better representation of real life from more angles. ➤ The marketing-effectiveness review. objectives. a comprehensive. Each company should periodically reassess its strategic approach to the marketplace with marketing-effectiveness reviews and marketing audits. and activities to identify problem areas and opportunities and recommend a plan of action for improving the company’s marketing performance. and periodic examination of a company’s (or SBU’s) marketing environment. strategic orientation (developing formal marketing plans and strategies). strategies. e. (2) marketing strategy. Unfortunately. 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). integrated marketing organization (integrating marketing with other key departments). most companies and divisions score in the fair-to-good range on measures of marketing effectiveness. systematic.
This best-practices excellence review rates a firm’s performance in relation to the best marketing and business practices of highperforming businesses. Every business strategy consists of a marketing strategy plus a compatible technology strategy and sourcing strategy. In addition. Highly successful companies also perform marketing excellence reviews and ethicalsocial responsibility reviews to gain an outside-in perspective on their marketing activities. Texas Instruments uses this strategy. strategy describes the game plan for achieving those goals. purchasing. hurting a firm that has rested its whole future on cost leadership. Firms pursuing this strategy must be good at engineering. Michael Porter has condensed them into three generic types that provide a good starting point for strategic thinking: overall cost leadership. ➤ 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. ➤ The marketing excellence review. (5) marketing productivity. and (6) marketing function (the 4 Ps). ➤ Differentiation: Here the business concentrates on achieving superior performance in an important customer benefit area. Business success and continually satisfying customers and other stakeholders are STRATEGY FORMULATION Goals indicate what a business unit wants to achieve. manufacturing. such as . differentiation. (4) marketing systems. The resulting profile exposes weaknesses and strengths and highlights where the company might change to become a truly outstanding player in the marketplace. ➤ The ethical and social responsibility review. or focus. companies need to evaluate whether they are truly practicing ethical and socially responsible marketing. and physical distribution. they need less skill in marketing. Although many types of marketing strategies are available.(3) marketing organization. The problem is that rivals may emerge with still lower costs.
This allows the firm to act quickly when it sees a scenario unfolding. The chemical company Solutia. a Monsanto spinoff. and threats. style. for each trend or development. ➤ Focus: Here the business focuses on one or more narrow market segments. External Environment Analysis In general. technological. for instance. both companies are able to stay ahead of environmental changes. Airwalk shoes. distributors. came to fame by focusing on the very narrow extreme-sports segment. SWOT ANALYSIS SWOT Analysis – The overall evaluation of a company’s strengths. A marketing opportunity is an area of buyer need in . or best in serving some market segment. differentiates itself through leadership in technology. Intel. coming out with new microprocessors at breakneck speed. or technology—but not leading in all of these things. possible short-term scenarios for each strategy. competitors. opportunities. political-legal. for instance. Strategy formulation in the age of the Internet is particularly challenging. Sun Microsystems holds a weekly meeting with the firm’s top decision makers to brainstorm strategies for handling new threats. but because strategic dimensions require different and often inconsistent ways of organizing the firm. International Harvester fell upon hard times because it did not stand out as lowest in cost. quality. It’s a way of monitoring the external and internal marketing environment. weaknesses. highest in perceived value. and social-cultural) and microenvironment actors (customers. Firms that do not pursue a clear strategy—“middle-of-the-roaders”—do the worst. getting to know these segments intimately and pursuing either cost leadership or differentiation within the target segment. copes by creating four different. Then. economic. and suppliers) that affect its ability to earn profits (see Chapter 4 for more detail). management needs to identify the associated marketing opportunities and threats. By revisiting strategic plans frequently. a business unit has to monitor key macroenvironment forces (demographic. these firms end up being not particularly excellent at anything.being the leader in service. Middle-of-the-roaders try to be good on all strategic dimensions.
the business does not have to correct all of its weaknesses. and organizational competencies. Clearly. Threats should be classified according to seriousness and probability of occurrence. nor should it gloat about all of its strengths. The company’s success probability depends on whether its business strengths not only match the key success requirements for operating in the target market. Sometimes a business does poorly because its departments do not work together well as a team. Honeywell. and major threats require the development of contingency plans that spell out changes the company can make if necessary. The best-performing company will be the one that can generate the greatest customer value and sustain it over time. asks each department to annually rate its own strengths and weaknesses and those of the other departments with which it interacts. but also exceed those of its competitors. each business needs to periodically evaluate its internal strengths and weaknesses in marketing. Hero Honda . Mere competence does not constitute a competitive advantage. 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.which a company can perform profitably. to deterioration in sales or profit. The notion is that each department is a “supplier” to some departments and a “customer” of other departments.” Honeywell wants to correct them. in the absence of defensive marketing action. financial. manufacturing. somewhat more serious threats must be carefully monitored. INTERNAL ENVIRONMENT ANALYSIS It is one thing to discern attractive opportunities and another to have the competencies to succeed in these opportunities. Opportunities can be classified according to their attractiveness and their success probability. for example. Thus. If one department has weaknesses that hurt its “internal customers. An environmental threat is a challenge posed by an unfavorable external trend or development that would lead. It is therefore critically important to assess interdepartmental working relationships as part of the internal environmental audit. Minor threats can be ignored.
It also requires a company to stay ahead of others and update their own technology as it becomes outdated. In Korea. . refrigerators. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. Example: • In an ambitious endeavour.• • • • • • • 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.000 networked homes that are outfitted with Internet-enabled ovens. As these markets develop it can create new markets and new uses for products. Samsung has 6. Samsung had launched a digital home business. security cameras.
and government networks. The Internet is a global system of interconnected computer networks and serves billions of users worldwide. process. transmit. the introduction of something new. business. knowledge. It is a network of networks that consists of millions of private. protect. 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. processes. implementation. output.Technology transfer is the process of sharing of skills. input.and wall-mounted flat-panel displays. of local to global scope. and retrieve information. academic. IT deals with the use of electronic computers and computer software to securely convert. methods of manufacturing. store. particularly software applications and computer hardware". support or management of computerbased information systems. It is closely related to (and may arguably be considered a subset of knowledge transfer. Samsung is looking to take the idea abroad. materials or services. public. applications. according to the Information Technology Association of America (ITAA). application. that are linked by a broad array of electronic and optical networking technologies. . Innovations Innovation can be seen as the process that renews something that exists and not. design. 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. technologies. development. Discovery is the act of detecting something new. as is commonly assumed.
Rate of Obsolescence: Obsolescence is the state of a being which occurs when an object.or it's free. Obsolescence frequently occurs because a replacement has become available that is superior in one or more aspects. 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. It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands. obsolescence is preceded by a gradual decline in popularity. hot pizza delivered to your door in 30 minutes or less -. Obsolete refers to something that is already disused or discarded." FedEx: "When your package absolutely. or antiquated. The term was invented by Rosser Reeves of Ted Bates & Company. A number of businesses and corporations currently use USPs as a basis for their marketing campaigns. positively has to get there overnight" . service or practice is no longer wanted even though it may still be in good working order. 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. 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. Typically.
TOMA correlates strongly with market share of a product. Another definition is. "Owning the space that your product or service occupies between your prospects' ears. when they're ready to buy they think of you first. . However. Top of Mind Awareness is particularly important. Companies that build brand awareness tend to also rank highly in "Top of Mind Awareness. "Top of Mind Awareness" is a way to measure how well brands rank in the minds of consumers. That way. 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. • For companies that conduct high-dollar transactions. Mortgage Brokers. Companies that are well known advertise heavily and have attention-getting ads that tend to receive the highest top of mind awareness scores in ad tracking studies.TOP OF MIND AWARENESS (TOMA) "When people think of you first to fulfill their product or service needs. TOMA holds value for companies offering products and services of all transaction levels. "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. TOMA varies from consumer to consumer." Thus." TOMA has traditionally been defined as "the percent of respondents who. without prompting." Another way to explain TOMA is to ask. and Auto Dealerships are particularly reliant on Top of Mind Awareness. Real Estate Agents.
It can be word-of-mouth delivered or enhanced by the network effects of the Internet. entitled 'b'. advergames. Isaiah Mustafa. analogous to the spread of virus or computer viruses. appears to feature the Swedish singer Jonna Lee • . If the pass-along numbers get too low. Digg. images. Youtube and others. OR and had their TV commercial star. the overall growth quickly fizzles. or even text messages. Viral marketing and viral advertising. the overall growth snowballs very quickly. Viral marketing depends on a high pass-along rate from person to person. interactive Flash games. Facebook. 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. The campaign ran for 3 days. If a large percentage of recipients forward something to a large number of friends. The seventh video.VIRAL MARKETING Marketing phenomenon that facilitates and encourages people to pass along a marketing message. Viral promotions may take the form of video clips.7 million views after 24 hours. brandable software. an anonymous package was sent to an MTV journalist claiming to contain a code which if cracked would give the identity of the artist. In March 2010. Old Spice launched the fastest growing online viral video campaign ever. 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. (buzzwords). Reddit. reply to 186 online comments and questions from websites like Twitter. ebooks. ballooning over 23 million views after 36 hours. Old Spice's agency created a bathroom set in Portland. garnering 6. • On July 14 2010.
As supermarkets face heightened competition from store rivals and alternative channels. Retailers such as Wal-Mart and Amazon.000. the most important of which is that constant sales and promotions are costly and erode consumer confidence in the credibility of everyday prices. everyday low price with few or no temporary price discounts. Retailers adopt EDLP for a number of reasons.000 to $30. EDLP is not a guarantee of success. It is a matter of reengineering the company’s operations to become a low-cost producer without sacrificing quality.13 Value pricing is not a matter of simply setting lower prices on one’s products compared to those of competitors. Compaq and others quickly followed suit. More recently.VALUE PRICING Value pricing is a method in which the company charges a fairly low price for a high quality offering. Monorail Computer started selling PCs in 1996 for as little as $999 to woo price-sensitive buyers. An important type of value pricing is everyday low pricing (EDLP). targeting the 55 percent of computerless households with annual incomes of $25. Yet promotions are an excellent way to create excitement and draw shoppers. For this reason. In high-low pricing. . This is a major trend in the computer industry. which takes place at the retail level. Value pricing says that the price should represent a high-value offer to consumers. posting a constant. eMachines began selling its PCs for less than $500 without a monitor. For instance. Consumers also have less time and patience for such time-honored traditions as watching for specials and clipping coupons. the retailer charges higher prices on an everyday basis but then runs frequent promotions in which prices are temporarily lowered below the EDLP level. with increased advertising and promotions.com use EDLP pricing. and lowering prices significantly to attract a large number of value-conscious customers. many are drawing shoppers using a combination of high-low and EDLP strategies. These constant prices eliminate week-to-week price uncertainty and can be contrasted to the “high-low” pricing of promotion-oriented competitors. which has shifted from charging top dollar for cutting-edge computers to offering basic computers at lower prices.
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. George Silverman. How to Trigger Exponential Sales Through Runaway Word of Mouth . 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. email. Grewal. and A. product or service. 2003.. Originally the term referred specifically to oral communication (literally words from the mouth).W. such as face-to-face. telephone. and text messaging. R. It is the art and science of building active. Early-Entrant Advantage An unpaid form of promotion in which satisfied customers tell other people how much they like a business. but now includes any type of human communication. mutually beneficial consumer-toconsumer and consumer-to-marketer communications. and making it easier for that conversation to take place. Word of mouth is a reference to the passing of information from person to person. Davies. T. Cline.
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