Marketing Management

By:Tulika
24 June 2020
Recap
Core Marketing Concepts:
Needs –
● state of felt deprivation for basic items such as food and clothing and complex needs
such as for belonging. i.e. I am hungry.
Wants –
● form that a human need takes as shaped by culture and individual personality i.e. I
want a hamburger, French fries, and a soft drink.
Demands –
● human wants backed by buying power. i.e. I have money to buy this meal.
Target Markets
● are the market segments identified by the marketer which present the greatest
opportunity.
Core Marketing Concepts:
Value Proposition
● Is a set of benefits that companies offer to customers to satisfy their needs. The
intangible value proposition is made physical by as offering. A brand is an offering from
a known source.
Value
● reflects the sum of the perceived tangible intangible benefits and costs to customers.
Satisfaction reflects a person’s judgements of a product’s perceived performance.
Channels
● To reach a target market a marketer uses different marketing channels like
communication channels, distribution channels and service channels.
Supply Chain
● Supply chain is a longer channel stretching from raw materials to components to final
products that are carried to final buyers.
Types of needs
1. Stated needs
(The customer wants an inexpensive car.)
2. Real needs
(The customer wants a car whose operating cost, not initial price, is low.)
3. Unstated needs
(The customer expects good service from the dealer.)
4. Delight needs
(The customer would like the dealer to include a GPS navigation system)
5. Secret needs
(The customer wants friends to see him or her as a savvy consumer
Group exercise
- lets divide into groups
Group exercise (30 mins)
● Break into groups (of maximum 5 people) and study the marketing strategy and
innovations (in product, supply chain, etc.) adopted by OnePlus initially to launch their
phones successfully.
○ What was the need/ want identified?
○ What is OnePlus’ USP/ Value proposition?
○ How was their supply chain, distribution strategy unique and different in the industry?
○ What unique marketing strategies were used by them?
○ Where does BBK Electronics fit in?
○ Some marketing techniques that didn’t work well for them?

I will randomly call upon people to present their group’s points.

One Plus
Need identified:
Market was filled with high end and low end phones but none with high end features and
mid segment range. OnePlus decided to place its product in between the mid-premium
segments with great features at lowest possible cost (no retail, only online).
Target audience:
● OnePlus targeted younger users with stylish and affordable Android-based phones.
Value Proposition:
A phone loaded with best of features but reasonably priced
One Plus
Pricing Strategy:
● OnePlus used penetration pricing strategy. It positioned itself between lowcost
smartphone companies like Xiaomi and high-end makers like Apple and Samsung and
significantly undercut the latter on price, despite closely matching them on features.
● By pricing the phone at a minimum price of $299, this price point made the phone
attractive to a large population of the market who was looking to purchase a new phone
or upgrade their current mobile device.
Supply chain and distribution:
● No physical stores or franchises were opened initially. Retail channels can cost
anywhere from 20% to 40% of the final price of a flagship device, so there is no retail
channel cost.
● First couple of iterations were produced on demand based on the invitation model. So
no inventory costs and overstock costs.
● Regain costs through premium and exclusive accessories charged at above average
rates.
● Except the processor of phone every thing is manufactured by china itself, that is the
reason for low cost One plus.
Role of BBK
● OnePlus is a diversification initiative by Oppo. They are funding OnePlus, providing
exclusive tech (latest being dash charging based on Oppo’s VOOC) and parts, and all
the expensive R&D to make such awesome phones without recouping the money
through phone costs. BBK is a Chinese multinational corporation. It oversees a number
of major smartphone brands including one fan-favorite — Oppo, Vivo, Realme,
and OnePlus
Marketing strategy:
● Initially, OnePlus didn’t spend money on advertising instead they sold phone online
using community partners and online marketing.
● The business model was built around razor-thin margins and giving as much value back
to its users as it could in the form of lower prices.
● The prices of OnePlus devices were different in each country depending on operating
costs, taxes, and other factors.
● Online marketing and fans help in spreading word through the word of mouth.
Marketing strategies
Online
● Invite system
● Influencer marketing
● Tie ups with Amazon, Ola, Air Asia
● Celebrity endorsement
● Hashtag #NeverSettle
Offline
● Theatre Screening
● Pop Up Stores
Some failed experiments
● Smash the past
● KBC Rip Off
● Ladies first