MS-06

Management Programme
ASSIGNMENT FIRST SEMESTER 2011
MS- 06 - MARKETING FOR MANAGERS

School of Management Studies INDIRA GANDHI NATIONAL OPEN UNIVERSITY MAIDAN GARHI, NEW DELHI – 110 068
ASSIGNMENT Course Code Course Title Assignment Code Coverage : MS - 06 : Marketing for Managers MS-06/SEM - I /2011 All Blocks

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Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with. 1 a) Discuss the distinguishing characteristics of services which make them different from tangible goods. What are the implications of theses characteristics in marketing of services? b) What do you understand from Segmentation, Targeting and Positioning (STP) strategies? 2 a) How does Marketing Research aid Marketing Managers in decision making . Discuss with suitable examples

b) What is the type of packaging you would adopt in the following cases and why: (i) Sea Food Exports (ii) Premium Basmati Rice (iii) Unisex Perfume 3 a) b) Discuss the main objectives of Sales Promotion. Identify some sales promotions methods directed at consumers, which can be used by a soap manufacturer What is a brand? What distinct advantages do companies get from branding? Illustrate.

4 a) Why does the marketing mix change as the product moves through its life cycle? How would you expect the mix to change for a novel home vacuum cleaning kit moves through the product life cycle? b) What is cyber marketing? What are the prospects and problems faced by the buyer in using this method? Discuss the limitations of cyber marketing.

1 a) Discuss the distinguishing characteristics of services which make them different from tangible goods. What are the implications of theses characteristics in marketing of services? A.PRODUCT MARKETING Product marketing deals with the first of the "4P"'s of MARKETING , which are PRODUCT , PRICING , PLACE , and PROMOTIONS.Product marketing, deals with more outbound MARKETING tasks. For example, product management deals with the nuts and bolts of PRODUCT DEVELOPMENT within a firm, whereas product marketing deals with marketing the PRODUCT to PROSPECTS CUSTOMERS , and others. EXAMPLE : LUX TOILET SOAP. Role of product marketing Product marketing in a business addresses five important strategic questions: 1 What products will be offered (i.e., the breadth and depth of the PRODUCT LINE ? 2 Who will be the target customers (i.e., the boundaries of the market segments to be served)? 3 How will the products reach those (i.e., the distribution channel)? 4 How much should the products be priced at? 5 How to introduce the products (i.e., the way to promote the products)? THE MOST APPROPRIATE / SELECT A COMBINATION SAY, LUX TOILET SOAP. FOR YOUR SITUATION

-your product has a '' unique advantage/benefits. -your product offers the most competitive ''value for money''. -your product is one of the affordable in the market for its range.

-your product positioning in the niche market. -your product distribution is matchless in the market, available at -your product merchandising is the most attractive at the retail arms length. level.

etc etc. ---------------------------------------------------------------------SERVICE MARKETING SERVICE IS ANY ACT OR PERFORMANCE THAT ONE PARTY CAN OFFER TO ANOTHER THAT IS ESSENTIALLY INTANGIBLE AND DOES NOT RESULT IN ANY OWNERSHIP Services marketing is MARKETING based on relationship and value. Marketing a service-base business is different from marketing a goods-base business. There are several major differences, including: The buyer purchases are intangible The service may be based on the reputation of a single person It's more difficult to compare the quality of similar services The buyer cannot return the service The major difference in the services marketing versus regular marketing is that instead of the traditional "4 P's," Product, Price, Place, Promotion, there are three additional "P's" consisting of People, Physical evidence, and Process. Service marketing also includes the servicescape referring to but not limited to the aesthetic appearance of the business from the outside, the inside, and the general appearance of the employees themselves. EXAMPLE: EDUCATION Service quality is not one-dimensional; it encompasses numerous factors that are important to customer satisfaction. Satisfaction basically is related to expectations and perceived delivery on these dimensions and as shown by the equation given below. The quality of service delivery results in customer satisfaction & their retention as it reinforces the perception that the value of the service received is grater than the price paid for it. Quality is defined as the ability of the service provider to satisfy customer needs. Customer perception , service quality & profitability are interdependent variable. Even in the case of products, quality is difficult to define because it is highly dependent upon customer perception. The task is made more complicated in the case of service because of the intengible nature of service & the variation in services offered to different customers. There are several reasons why customers must be given quality service. Most important of them are 1. Industry has become so competitive that customers now have variety of alternatives. If the customers are lost, it can be extremely difficult to win back the individual. 2. Most customers do not complain when they experience problems, these customers simply opt out & take their business elsewhere. What is CUSTOMER Satisfaction? CUSTOMER Satisfaction = function of {CUSTOMER -Expectation and Perceived delivery} A person is said to be dissatisfied when the perceived delivery is lower than expectation; he/she is satisfied when they match; delighted when the delivery exceeds expectation and astonished when the delivery far exceeds expectation. The following equations explain these relationships. Perceived Delivery < Expectation --> Dissatisfaction Perceived Delivery = Expectation --> Satisfaction Perceived Delivery > Expectation --> Delight Perceived Delivery >> Expectation --> Astonishment Dimensions of Service Quality: There are various aspects that a customer expects from different services. 1. Reliability: This refers to the ability of the company to perform the promised service dependably and accurately. Reliability is probably the single most important dimension of quality. Customers expect that companies will do what they say and they will do when they say they will do it. 2. Tangibles: This refers to the appearance of the physical facilities, equipment, personnel, and communication materials. As services are intangible, the tangibles give an impression to the customers about the quality of service they can expect from a firm. A bank in a shabby building will make the customer wonder whether their money will be safe in such a bank. 3. Responsiveness: This refers to the willingness of the employees to help customers and provide prompt service. When you go to a bank the minimum that you expect is that the employees would attend to you rather than chit-chat amongst themselves.

4. Assurance: This factor is linked to several minor factors such as competence, courtesy, credibility and security. Competence depends on the service provider's possession of the required skills and knowledge to perform the service. The politeness, respect, consideration, and friendliness of the service providers can be bundled into the term courtesy. Credibility refers to the perceived trustworthiness, believability, and honesty of the service provider. Security refers to the fact that the service should be free from danger, risk, and doubt. In sum, the assurance factor refers to the knowledge and courtesy of employees and their ability to inspire trust and confidence. 5. Empathy: Empathy refers to the caring, individualized attention the firm provides to its customers. It includes access, communication and understanding. Access refers to the approachability and ease with which the customer can contact the firm. Communication refers to keeping the customer informed in the language they can understand and listening to them. Understanding has to do with the efforts made by the service provider to know customers and their needs. The Service Quality Gaps: Gaps between perceived & expected levels of service quality delivery result in the failure of the service provider. These are the 5 gaps. -The First gap does not know what customers expect. rea -The second gap is between what the customer expects and what the management understands as the customers' expectation from the company. -The third gap is with reference to the management's understanding of the customer expectations and the service quality standards set by the management. -The fourth gap is between the quality specifications and actual service delivery. -The fifth gap is between what is communicated to customers and what is actually delivered. It is possible to measure the gaps and take corrective actions to fill them to the extent possible. The most difficult gap to fill is the one between customer expectations and the perceived service delivery. The expectation of the customers keeps rising with every good experience. When a customer visits the service organization, he/she expects a better service than what was experienced in the last encounter. ==================================== The service marketing challenges are -to generate re-sales -to create a waiting list -to create a positive word of mouth advertising as a lot of new business is generated from satisfied customers. WHICH MEANS THAT THERE IS NO/LITTLE GAP BETWEEN SERVICE EXPECTATIONS AND SERVICE DELIVERY. ==================================== HOW DO YOU MATCH SERVICE EXPECTATION WITH DELIVERIES IN PRODUCT MARKETING , WE RELY ON 4 P's -product attributes/benefits -pricing strategy -place [ right / easy place to buy] -promotions [ selected weighted mix] -------------------------------------------------------------IN CASE OF THE SERVICE, THE PRODUCT IS -intangible, the greater the intangibility the more complex the promise. -perishable /heterogeneous, the production and consumption are often simulaneous. IN SERVICE MARKETING, WE RELY ON 7 P's -product service [ features/benefits] -place [ flexibility] -price [ flexi] -promotions [ selected weighted mix] -people [ ability,competent, right attitude ] -physical evidence -process ==================================== IN SERVICE BUSINESS, -SERVICE MARKETING PROMOTES AND SERVICE MANAGEMENT GENERATES RESULTS, through *service delivery *service quality *customer satisfaction/ relation management -service recovery -service management audit. ======================================= SERVICE MANAGEMENT PROVIDES SATISFACTORY SERVICE -by designing the customer oriented business process -cost effective service -continuous improvements through research/development -improving people's abilities/competences. ==================================== SERVICE MARKETING MEETS SERVICE MANAGEMENT -by managing customer behavior

-by conducting customer research -by managing customer expectations -by reverse-engineering the product/service portfolio. -by determining what service the market needs/ we can offer. -what do we need to do to fill the gap. ======================================= THE INTEGRITY OF PRODUCT-SERVICE DELIVERY when the service marketing is intergrated with service management that is ,what you promise [either explicitly or implicitily] and what you deliver IN THIS CASE , ''INTEGRATED'' = ''INTEGRITY'' There is no gap WHICH MEANS CUSTOMER SATISFACTION, WHICH IT TURN MEANS = SUCCESSFUL SERVICE MARKETING. ############################### b) What do you understand from Segmentation, Targeting and Positioning (STP) strategies?

Market Segmentation A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Small segments are often termed niche markets or specialty markets. However, all segments fall into either consumer or industrial markets. Although it has similar objectives and it overlaps with consumer markets in many ways, the process of Industrial market segmentation is quite different. The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behaviour; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved. Improved segmentation can lead to significantly improved marketing effectiveness. With the right segmentation, the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering. If done properly this will help to insure the highest return for your marketing/sales expenditures. Depending on whether you are selling your offering to individual consumers or a business, there are definite differences in what you will consider when defining market segments. Category of Need The first thing you can establish is a category of need that your offering satisfies. The following classifications may help. For businesses: • Strategic - your offering is in some way important to the enterprise mission, objectives and operational oversight. For example, a service that helped evaluate capital investment opportunities would fall into this domain of influence. The purchase decision for this category of offering will be made by the prospect's top level executive management. • Operations - your offering affects the general operating policies and procedures. Examples might be, an employee insurance plan or a corporate wide communications system. This purchase decision will be made by the prospect's top level operations management. • Functional - your offering deals with a specific function within the enterprise such as data processing, accounting, human resources, plant maintenance, engineering design, manufacturing, inventory control, etc. This is the most likely domain for a product or service, but you must recognize that the other domains may also get involved if the purchase of the product or service becomes a high profile decision. This purchase decision will be made by the prospect's functional management. For the individual consumer: • Social Esteem or Pleasure - your offering satisfies a purely emotional need in the consumer. Examples are a mink coat or a diamond ring. There are some products that are on the boundary between this category and the Functional category such as a Rolex watch (a Timex would satisfy the functional requirement and probably keep time just as well). • Functional - your offering meets a functional requirement of the consumer such as a broom, breakfast cereal or lawnmower. Segmentation of Needs FOR BUSINESS ORGANIZATIONS Then you should establish what the need is and who is most likely to experience that need. Your segmentation will be determined by a match between the benefits offered by your offering and the need of the prospect. Some "need" categories for segmentation include: Reduction in expenses Prospects might be businesses that are downsizing (right sizing), businesses that have products in the mature stage of their life cycle or individuals with credit rating problems. Improved cash flow Prospects might be businesses that have traditionally low profit margins, businesses that have traditionally high inventory costs or individuals that live in expensive urban areas.

Improved productivity Prospects might be businesses that have traditionally low profit margins, businesses that have recently experienced depressed earnings or individuals with large families. Improved manufacturing quality Prospects might be businesses with complex, multi-discipline manufacturing processes. Improved service delivery Prospects might be service businesses in highly competitive markets, product businesses requiring considerable post-sale support or individuals in remote or rural areas. Improved employee working conditions/benefits Prospects might be businesses where potential employees are in short supply. Improvement in market share/competitive position Prospects might be new entrants to a competitive market. Need for education Prospects might be businesses or individuals looking for books on business planning, or seminars on Total Quality Management. Involvement with social trends Prospects might be businesses concerned with environmental protection, employee security, etc. or individuals who believe in say 'no' to drugs, anti-crime, etc. Specific - relating to product/service characteristics Prospects might be businesses or individuals interested in safety, security, economy, comfort, speed, quality, durability, etc. Factors that segment prospects Having determined the more general segmentation characteristics you can proceed to a more detailed analysis of the market. There are literally thousands of ways to segment a market, but the following are some of the more typical segmentation categories. For businesses: Industry by SIC code This is especially beneficial for vertical market offerings. Size - revenues, # employees, # locations In general if your offering is highly sophisticated, requires significant resources or provides greater value based on volume, then the target should be the larger enterprises. Job position/responsibility Examples of offerings might be planning software for managers or cleaning agents for maintenance managers. Climate Examples of offerings might be dehumidifiers in areas near the ocean or snow plows in northern areas. Time related factors Some services in this category are vacation related industries in summer and tax planners in the spring. Language An example of a language specific service is a Spanish TV channel. Status in the industry You might want to target businesses that are the technology leader or revenue leader or employee satisfaction leader, etc. Accessibility To minimize promotion and sales expense you may want to target urban rather than rural or local rather than national prospects. Future potential A good example is how Apple Computer supplied products to schools at all levels to condition students graduating into the marketplace. Ability to make a quick purchase decision Targeting individual purchasers versus business committees can significantly reduce marketing expense and increase the probability of a quick close. Access (or lack of access) to competitive offerings Cable TV business's significant investment in their service delivery system has allowed a near monopoly for some time. IBM's service reputation insured minimal competition during the mainframe days. Need for customization Offerings such as police cars, busses for municipalities and specialized computer systems fall into this category. Product or service application to a business function Examples are data processing, accounting, human resources and plant maintenance. ============================================ For Individual Consumers: Physical Size Offerings might be big men's clothing, golf clubs for shorter players, etc. Creation of or response to a fad Examples are hula hoops, Jurassic Park T-shirts, pet rock, physical fitness, etc. Geographic location Marketers take advantage of location by selling suntan lotion in Hawaii, fur coats in Alaska, etc. Time related factors You may be able to target vacationers in summer, impulse buyers during the holidays or commuters at 7AM. Demographics/culture/religion Ethnic products would fall into this category. Gender Product examples are scarves for women, ties for men, etc. Age Product examples are toys for children, jewelry for women, etc. Social status

This could include country club memberships, philanthropic contributions, etc. Education Product and service examples are encyclopedias, scientific calculators, learning to read tools and financial counseling. Avocation This could include products for hunting, fishing, golf, art work, knitting, etc. Special Interests You could target cat lovers, science fiction readers, jazz music collectors, etc. Accessibility 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. Access (or lack of access) to competitive offerings Due to high investment capital requirements or timing of market entry you may be able to capture a significant market share in a specific geographical area. Examples might be a trash service, emergency medical support, etc. Need for specific information Based on features or content of your offering you can target a market segment. A product might be books on how to start a business or a service might be seminars on how to quit smoking. Need for customization Product/service examples are home decoration, fashion wear, personal portraits, etc. Need for quality, durability, etc. Product examples are mountain climbing gear, carpenter's tools, etc. Degree of a product/service ingredient Segmentation based on prospect preferences is common. An example is dark chocolate for some tastes, light chocolate for others. ======================================================================== While market segmentation can be done in many ways, depending on how you want to slice up the pie, three of the most common types are: • Geographic segmentation – based on location such as home addresses; • Demographic segmentation – based on measurable statistics, such as age or income; • Psychographic segmentation – based on lifestyle preferences, such as being urban dwellers or pet lovers. If you’re interested in target marketing, the first step is to do the research that will help you define and zero in on your target market. ================================================================ The requirements for successful segmentation are: homogeneity within the segment heterogeneity between segments • segments are measurable and identifiable • segments are accessible and actionable • segment is large enough to be profitable -----------------------------------------------------------------------These criteria can be summarized : • D Differential: it must respond differently to a different marketing mix • A Actionable: you must have a product for this segment to be accured • M Measurable: size and purchasing power can be measured • A Accessible: it must be possible to reach it efficiently • S Substantial: the segment has to be large and profitable enough ================================================================= The variables used for segmentation include: 1.Geographic variables region of the world or country, East, West, South, North, Central, coastal, hilly, etc. country size/country size : Metropolitian Cities, small cities, towns. Density of Area Urban, Semi-urban, Rural. climate Hot, Cold, Humid, Rainy. 2.Demographic variables -age -gender Male and Female -sexual orientation -family size family life cycle Education Primary, High School, Secondary, College, Universities. income occupation education 3.socioeconomic status religion nationality/race language 4.Psychographic variables

personality life style value attitude 5.Behavioural variables benefit sought product usage rate brand loyalty product end use readiness-to-buy stage decision making unit profitability When numerous variables are combined to give an in-depth understanding of a segment, this is referred to as depth segmentation. When enough information is combined to create a clear picture of a typical member of a segment, this is referred to as a buyer profile. When the profile is limited to demographic variables it is called a demographic profile (typically shortened to "a demographic"). A statistical technique commonly used in determining a profile is cluster analysis. ================================================================= THE BY-PRODUCT OF MARKET SEGMENTATION IS THE IDENTIFICATION OF THE PARTICULAR SEGMENT, TARGET MARKET WHICH ONE WANTS TO EXPLOIT. -----------------------------------------------------------------------------NANO '' SMALL CAR'' IN UNIVERSAL TERM, the nano is a small car.

IN INDIAN TERM, -nano is specifically designed for the indian market. -it is designed for the indian market -it is designed ''as a value for money'' -it is designed with india made parts. THE MARKET SEGMENTATION VARIABLES FOR THE BUSINESSES. -reduction in capital expenses. -reduction in operation expenses. -reduction in maintenance expenses. -improvement in the cash flow. -improvement in the working conditions for field employees. -improvement in the productivity of field employees. -improvement in the business market coverage -improvement in the business results. ---------------------------------------------------FOR THE INDIVIDUALS 1.Demographic variables *age *gender Male and Female *sexual orientation *family size *family life cycle *Education Primary, High School, Secondary, College, Universities. *income *occupation *education -------------------------------------------------2. socioeconomic status *religion *REGIONAL FOCUS *language ----------------------------------------3. Geographic variables *region of the country,NORTH / SOUTH/ EAST/ WEST/CENTRAL etc. CONSIDERED

*metro/ rural : Metropolitan Cities, small cities, towns. *Density of Area Urban, Semi-urban, Rural. *climate Hot, Cold, Humid, Rainy. --------------------------------4.Psychographic variables *personality *life style *value *attitude -------------------------5.Behavioural variables *benefit sought *product usage rate *brand loyalty *product end use *readiness-to-buy stage *decision making unit *profitability *income status ======================================= ############################################### THE BY-PRODUCT OF MARKET SEGMENTATION IS THE IDENTIFICATION OF THE PARTICULAR SEGMENT, WHICH ONE WANTS TO EXPLOIT. HENCE TO AIM AT THE NICHE MARKET, ONE MUST HAVE TO SEGMENT THE MARKET FIRST, IT IS A CRITICAL STEP. -----------------------------------------------------------------------------A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. A niche market may be thought of as a narrowly defined group of potential customers. A distinct niche market usually evolves out of a market niche, where potential demand is not met by any supply. Such ventures are profitable because of disinterest on the part of large businesses and/or lack of awareness on the part of other small companies. The key to capitalizing on a niche market is to find or develop a market niche that has customers who are accessible, that is growing fast enough, and that is not owned by one established vendor already. Marketing in and for niche markets Niche marketing is the process of finding and serving profitable market segments and designing custom-made products or services for them. For big companies those market segments are often too small in order to serve them profitably as they often lack economies of scale. Niche marketers are often reliant on the loyalty business model to maintain a profitable volume of sales. this also means theres a gap in the market ================================================================== IT IS NOT DANGEROUS TO PICK / MARKET MANAGE A NICHE MARKET. BUT THE RISK IS HIGH. THE RISK COULD INVOLVE -wrong segments -bad market planning -poor cost.benefit analysis -poor profiling of the market segment -ineffective selection of the market mix -poor targeting efforts etc. HENCE CAREFUL SEGMENTATION IS CRITICAL. To Qualify As A NICHE Market Target, A Group Of Customers Should Meet Important Conditions. For any group regarded as a potential NICHE market target, the following questions should be asked: Will the group satisfy our profit objectives? Is it apt to grow? How stable is the market? Can we accurately measure the size and purchasing power of the target?

Will we be able to reach the target with our promotion? Do we have the resources to serve the proposed targeted market? Are the homogeneous customers within the possible segment influential? Will their purchases cause other groups to buy the products? Can we identify the customers so that we can know where and how to appeal to them? How strong is our competition in this target market? Are there any competitive opportunities for us? Many market segments will not meet the above requirements. For instance, a certain group may not have promising growth potential, yet it may offer stable and profitable business forces. THIS WILL HELP TO REDUCE THE RISK FACTORS. ================================================= PRODUCT POSITIONING IN THE SELECTED MARKET SEGMENT. FIRST STEP -- DO THE RESEARCH The first step in the positioning process is to do the research. The good news is that product marketing managers already have done most of the research as part of their job. To successfully position a product, you need a thorough understanding of customer problems, channel issues, and how competitors are positioned. The answers to these and other questions become part of a rationale document for your positioning strategy: What is your target market (size, type of company, etc.)? Who is the decision maker you want to target your message to, and what keeps that decision maker awake at night? What pressing problem does your product solve for your prospective customer? How is your prospect solving that problem today? What specific benefit does your product deliver? Why is your product better than the current solution and competitive alternatives? Who are your key competitors; why and when do you win or lose to them? How do your competitors position themselves in their marketing communications, including ads, direct mail campaigns, brochures, and web sites? What makes your product unique in a way that is relevant to your prospect? Are there any problems, unique challenges, or special needs of your channel? What do prospects and customers like and dislike about your product? Do prospects and customers share your belief of why your product is better than the competition’s? Are there any characteristics of a sales situation that indicate whether or not your product or service will be selected? Now incorporate the answers to these questions in a rationale document. By doing so, all product knowledge is captured in one place and can be used as a reference guide when marketing and sales need it. The rationale document should be three to five pages and should include this information: Product Category—Define the product’s key features, advantages, and benefits. A matrix can help clarify these items. Product Line Fit—Describe how the product fits into the overall company product strategy. Situation Analysis—Describe the conditions that justify the release of this product, including why the company believes it can be successful. Market Analysis—Profile target market(s) by size, revenue, market segment, operational type, or other relevant categories. Audience Analysis—Profile key prospects within the target market(s), including job titles and functions (demographics) and their concerns, attitudes, and behaviors (psychographics). Distribution—Describe how the product will be distributed and the impact of distribution on product communications. Competitive Positioning—Describe the key competitors, their targets, and how they position their products.

Positioning Statement and Rationale—Evaluate the product positioning statement against the following four criteria: Is it important, unique, believable, and usable? Support Points—Describe how the three support points make the positioning statement unique, believable, and important. If multiple markets or audiences require unique support points, explain why. A rationale document transfers important product knowledge to those who need to know, but who don’t have the time or expertise to find the information themselves. It’s especially useful when creating a product message strategy that includes a positioning statement (number 8 in the rationale document) and three or four support points (number 9). A MESSAGE STRATEGY IS A TIME SAVER Your positioning statement becomes the central idea and theme underlying all marketing activities. It is a short, compelling, declarative sentence that states just one benefit and addresses the target market's number one problem. It must be unique, believable, and important, or the target market will ignore the message. Once you have found the right message, your product marketing managers won’t need to be involved in every planning session for every marketing campaign. Supporting benefit statements tell the story in more detail. They also provide a structure for product demonstrations. While the positioning statement articulates a high-level benefit, the claims made in the supporting statements should be readily demonstrable. That is, in just a few steps, you should be able to show how the product delivers concrete benefits. Make sure your message strategy has enough detail to support the creation of a standard product demonstration. This helps your product marketing managers to create a demo quickly. And there’s another benefit—the product detail in the support points answers a lot questions before marketing and sales ask them. A message strategy also facilitates delivery of the same message across all marketing media, including web sites, brochures, advertisements, and presentations to investors, industry analysts, and prospects. A standard outline format makes it easy for writers and other communicators to see the message strategy's benefit hierarchy, and to take full advantage of it. A Rationale Document Captures All the Product Knowledge In addition to documenting product knowledge, the positioning process improves marketing without intense, time-consuming input from product marketing. A message strategy is like the recipe for how to talk about your product. Follow the recipe rather than ask product marketing, and your marketers can create a compelling, accurate story about your product. This does not mean that your product marketing managers no longer need to be involved in the planning and creation of marketing materials. They should provide input when appropriate. It’s just that the process won’t take up nearly as much of their time. That’s because marketing gets most of its infusion of product knowledge by referencing the rationale document and message strategy. And that means your product marketing managers have successfully cloned themselves; they’ll have more time for other competing priorities. =================================================== HERE ARE TWO EXAMPLES ---------------------------------------------------------------1..NANO *SEGMENT----- middle class. *TARGET----upper income brack [ 400,000 ----1mill rupees] *POSITIONING -----affordable / CONVENIENT. ---------------------------------------------------------------------2.AIRTEL-DTH *SEGMENT-middle class *TARGET - FAMILIES with median income. *POSITIONING ----entertainment for all situations. ------------------------------------------------------------------

22222222222222222222222222222222222222222222222222222 ############################################## 2 a) How does Marketing Research aid Marketing Managers in decision making . THE OBJECTIVE OF THE MARKETING RESEARCH IS TO PROVIDE THE MARKETING MANAGEMENT, A RANGE OF VITAL INFORMATION ON Business Intelligence Business Performance Management Business rules Data Mining Predictive analytics Purchase order request Enterprise Architecture Information technology management Knowledge Base Online analytical processing ETC ETC ==================================================== The major EXPECTATIONS of MARKETING RESEARCH are to: reach an understanding of the relevant processes on the basis of the available historic information. This element forms the basis for the Discuss with suitable examples

development of models, required for forecasting and simulation. provide information on the current situation, especially for early warning purposes, for instance related to issues impacting on business, resources or business status. forecast changes and impacts, either natural or man-made, as an element in vulnerability assessments. forecast the consequences of policy decisions and measures before they are implemented in reality. This implies evaluating options for several given scenarios based on the possible results and predicted consequences, and selecting the most acceptable alternative. ============================================================== FOR THE MARKETING MANAGEMENT, THE MARKETING RESEARCH IS THE MAIN/MAJOR TOOL -to feel the market sensitivity/ market reactions to the product/ price etc which helps in the decision to provide the market the right product/ right price/right promotion/ and at the right place. IN OTHER WORDS FROM THE MARKET -researched information on various aspects of the product/market. -to shape the future requirements of the product/market. AND PUT THE PRODUCT BACK INTO THE MARKET. THE MARKET RESEARCH PROVIDES Ad Tracking – periodic or continuous in-market research to monitor a brand’s performance using measures such as brand awareness, brand preference, and product usage. Advertising Research – used to predict copy testing or track the efficacy of advertisements for any medium, measured by the ad’s ability to get attention, communicate the message, build the brand’s image, and motivate the consumer to purchase the product or service. Brand equity research - how favorably do consumers view the brand? Brand name testing - what do consumers feel about the names of the products? Commercial eye tracking research - examine advertisements, package designs, websites, etc by analyzing visual behavior of the consumer Concept testing - to test the acceptance of a concept by target consumers Coolhunting - to make observations and predictions in changes of new or existing cultural trends in areas such as fashion, music, films, television, youth culture and lifestyle consumer decision process research - to determine what motivates people to buy and what decision-making process they use Copy testing – predicts in-market performance of an ad before it airs by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ad’s flow of attention and flow of emotion. • Customer satisfaction studies - exit interviews or surveys that determine a customer's level of satisfaction with the quality of the transaction Demand estimation - to determine the approximate level of demand for the product Distribution channel audits - to assess distributors’ and retailers’ attitudes toward a product, brand, or company • Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums, web pages, blogs... where people express freely about their experiences with products, becoming strong "opinion formers" Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual marketing activities. mystery shopping - An employee or representative of the market research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researching competitors' products. Positioning research - how does the target market see the brand relative to competitors? - what does the brand stand for? Price elasticity testing - to determine how sensitive customers are to price changes • Sales forecasting - to determine the expected level of sales given the level of demand. With respect to other factors like Advertising expenditure, sales promotion etc. Segmentation research - to determine the demographic, psychographic, and behavioural characteristics of potential buyers Online panel - a group of individual who accepted to respond to marketing research online • Store audit - to measure the sales of a product or product line at a statistically selected store sample in order to determine market share, or to determine whether a retail store provides adequate service Test marketing - a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market Viral Marketing Research - refers to marketing research designed to estimate the probability that specific communications will be transmitted throughout an individuals Social Network. Estimates of Social Networking Potential (SNP) are combined with estimates of selling effectiveness to estimate ROI on specific combinations of messages and media. All of these forms of marketing research can be classified as either problem-identification research or as problem-solving research. A company collects primary research by gathering original data. Secondary research is conducted on data published previously and usually by someone else. Secondary research costs far less than primary research, but seldom comes in a form that exactly meets the needs of the researcher. A similar distinction exists between exploratory research and conclusive research. Exploratory research provides insights into and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Conclusive research draws conclusions: the results of the study can be generalized to the whole population. Exploratory research is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of research. It may serve as the input to conclusive research. Exploratory research information is collected by focus group interviews, reviewing literature or books, discussing with experts, etc. This is unstructured and qualitative in nature. If a secondary source of data is unable to serve the purpose, a convenience sample of small size can be collected. Conclusive research is conducted to draw some conclusion about the problem. It is essentially, structured and quantitative research, and the output of this research is the input to MARKETING INFORMATION SYSTEM. Exploratory research is also conducted to simplify the findings of the conclusive or descriptive research, if the findings are very hard to interpret for the marketing manager. ==================================================

FOR THE MARKETING DEPARTMENT MR provides such informations as -consumer research data -market research data -market surveys -market analysis -competitors analysis -product analysis -product test analysis -product plans -test market results -market strategy -sales analysis -distribution analysis -media analysis -promotion analysis -customer satisfaction -retail audit data -marketing auditing data -market forecast -sales forecast -sales planning data -distribution planning -customer analysis -market segment analysis -consumer [ socio/economic /demographic/psychographic] data ETC ETC. ================================================== WHICH THE MARKETING DEPARTMENT USE FOR -new product development -new product planning -new product testing -new product test marketing -new product market forecast sales forecast survey analysis

-new product

-annual market forecast -annual sales forecast

-annual market planning -annual sales planning -annual distribution planning -annual target marketing -market segmentation -annual sales development programs -annual market development programs -annual sales planning -annual distribution planning -annual merchandising planning ########################################### b) What is the type of packaging you would adopt in the following cases and why: (i) Sea Food Exports (ii) Premium Basmati Rice (iii) Unisex Perfume

What is The need for packaging From the consumer's point of view the package's function is to protect the product. In the case of bulk goods, or if the product cannot be used without the support of the package, the package must help the use of the product. Without the service of packaging, most of the goods, especially food, couldn’t reach the consumer. Living in the countryside, one can buy goods, for example milk directly from the farmer, but a can is needed to carry it home. This can also be considered as a refillable package, with almost an unlimited number of uses. In a city, milk can only be bought from the store, packed in aseptic carton box. It is not possible to avoid it, unless one goes daily to the dairy, and drink from the tap. From the packager's point of view, the most important function of the packaging is the protection of the usage and aesthetic values of the product from damages, and get the product sold to the consumer. For the producer, the package is also a value-creating media of the product. With the help of the package, the product can be sold to the consumer. For example, a barrel full of toothpaste has almost no purchase value, since who wants to buy 100 litre of toothpaste? Most probably nobody would buy even a handful of it in the grocery, but one certainly does buy 50 grams of toothpaste in a tube. Modern packagings are an expressive form of the consumer-lifestyle. Over the protective function, packagings are giving character, "personality" to the product. They are following the product to the consumer, giving practical as well as aesthetic value. The proportion of the usage and aesthetic functions is important. The quality of packaging reflects our universal culture. All those products that appear in the shops and offer themselves for purchase, apart of that - with very few exceptions - their usage function is primary, are creating the surrounding material environment. ================================================================== WHAT THIS PACKAGING PERFORMS IN THE TOTAL MARKETING FUNCTION. • • Primary packaging is the material the first envelops the product and holds it. Secondary packaging is outside the primary packaging – perhaps used to group primary packages together.

What is the Role of Packaging • The role of packaging is containment, protection, safety, and display. • If you are selling your product through retail stores, you are trying to use your packaging to : -Catch the browsers attention -Create desire -Inspire confidence What is the Importance of Packaging The Importance of Packaging Let's talk about packaging. Packaging can be thought about in many different ways, but if we think purely about the purpose of packaging first, we find the purpose is to: Contain the product Communicate product information Facilitate product storage and shipment Reinforce branding • Packaging is important, but you need to determine how critical it is based on your marketing/distribution methods. • The packaging is a type of advertisement – even if it goes through mail order to the customer directly. It will sit on the customer’s shelf for peers to see. These peers are potential customers – and most likely they will have the same needs as the person who already made the

purchase. • The package becomes even more critical if you plan to distribute your product through resellers and it will sit on a shelf in a store. There is a lot of competition for the customer’s attention. If you plan to do this, it is probably best to get a graphic designer to help you. • Use descriptive titles for the product - not necessarily creative. Many people go into a retail store looking for products to perform a function, but don't necessarily have a specific product in mind. You need to communicate your function and benefits to them quickly and effectively. • Graphics and slogans on the package should reflect the usage of the product. • Avoid technical jargon except for declaring content requirements. • Resellers are a good source of information for good packaging design. Ask for a reseller's input on a design. • Stickers on a package work very well for attracting attention. In addition, you can use them to your advantage. • Include testimonial from existing users. This will inspire confidence. • Include a sales literature in your packaging for the customer to pass on to their colleagues. ================================================================ WHY IS THE PACKAGING SYSTEM AN IMPORTANT ELEMENT OF THE MARKETING ? Packaging system is a set of operations that fulfil the function of creating sales units of the product. The operations of the packaging system are the follows: raw material supply, fuel and electricity production, packaging material production, package production, part of product processing that enables or helps the product to be packed, packaging (filling) operation. Since packages are made exclusively for the product's sake, the packaging system is a part of the product's system. That is why it is very difficult to set the boundaries of the packaging system. To set system boundaries is also a dynamic process, and a basic step if a life-cycle study of the packaging system shall be conducted. A first evaluation is made in a screening LCA (Life Cycle Assessment) to identify the key processes that have to be studied in more detailed LCA. Three aspects can be distinguished in these consecutive steps: -boundaries between the packaging system and the environment, -boundaries between the packaging system and the system of the packed product; and -the distinction between relevant processes related to the product system under study. Packaging system is often confused with only the packaging or filling operation. Although it is a very important part, but is only a part of the packaging system. The choice of the packaging operation is a complex decision, and it is based on the following main groups of factors: -protection of the product, -available packaging technology, -economics (costs), -marketing (especially marketing-communication), -product's properties, environmental considerations. One would consider that the available packaging technology is the most important factor, but it is not so. The history of packaging development showed, that new packaging technologies were found first of all from the wish to improve the protection functions of packaging. Economics is another important factor, it is crucial for the packager to be profitable, and spend the least possible on packaging the product. Market considerations are another important factor especially at present level of "supermarket societies". If a producer wants the consumer to choose his product from the wide range of goods available, he has to do a lot more than only produce a good product. The product shall be packed to protect and enhance distribution. Pleasing, arising attention, image creation, helping the using ease, and most important: information supply, are top functions of packages. Naturally the package's properties are adjusted to the packed product, but it is not seldom that the product's properties are changed with the purpose of creating more practical package shapes. The motives are primarily economic -- simpler shapes are easier, and more effective to collect into secondary (retail) packages. Another motive is the environmental concern: simpler shapes use less materials, and more effective collection to secondary packages also means reduced resource exploitation. It is sensible, and legally required that waste management options are considered already at package design. Design for reuse, recovery, or eventually disposal, are newly emerged tools of environmental marketing. ================================ THE SOCIAL IMPORTANCE OF PACKAGING Packaging as a service In modern societies, on the present level of economic development, to satisfy our needs, we have to rely on the services of the society. To be able to obtain consumer goods, we need among others the service of packaging. This study is based on the fact that packaging is an important part of our lives. This way the most important ‘impact’ of packaging is that it enables satisfying human needs in an effective way. Packaging effectivity means that packaging fulfils its function with minimal use of resources and minimal overall wastage. Service means that packaging consumer goods, helps their distribution, and gives an access to goods otherwise not accessible. It is most evident in food packaging. Conserving perishable food prevents early spoilage, invention of aseptic packaging prolongs shelf-life and makes possible distribution also to greater distances. This fact is more and more important in the present way of increasing urbanisation. In such level of urbanisation, distribution of goods, especially food, is crucial, and the role of packaging is enormous. The role of packaging in waste reduction is the most evident at food packaging. When food is processed and packaged, the food residues are often used as fuel, animal feed or some economically useful by-product. In absence of packaged processed food, the residues become garbage in the household. Another reason why food packaging reduces waste is that it reduces spoilage. ========================================================== SEA FOOD FOR EXPORTS THIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING. -product safely packed, with the right packing material. -product quality is secured -product flavor is retained

-product content visible -product content identifiable -design layout clear -effective color combination -the right font size lettering. -packs easily visible / seen on the store shelf -packaging functional -easy to shop -meets functional requirements -meets the packaging technical requirements -packaging carries identifiable brand -instructions/directions ''how to use'' -nutritional value displayed etc etc WE CHOOSE THESE COMBINATIONS, SO AS TO MAINTAIN PRODUCT STANDARD / NUTRIONAL VALUE / EASILY PORTABLE/ MAINTAINS HYGYENIC STANDARDS. ======================================================= UNISEX PERFUME THIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING. -product safely packed, with the right packing material. -product content visible -product content identifiable -design layout clear -effective color combination -the right font size lettering. -packs easily visible / seen on the store shelf -packaging functional -packaging carries identifiable brand etc etc THE PRODUCT IS VISIBLE, IDENTIFIABLE/ AND EASILY SELECTABLE BY THE CONSUMERS. ===================================================== PREMIUM BASMATI RICE THIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING. -product safely packed, with the right packing material. -product quality is secured -product flavor is retained -product content visible -product content identifiable -design layout clear -effective color combination -the right font size lettering. -packs easily visible / seen on the store shelf -easy to shop -meets functional requirements -meets the packaging technical requirements -packaging carries identifiable brand -packaging functional etc etc THE PRODUCT IS VISIBLE, IDENTIFIABLE/ AND EASILY SELECTABLE BY THE CONSUMERS. ===================================================== ######################################### What is The need for packaging From the consumer's point of view the package's function is to protect the product. In the case of bulk goods, or if the product cannot be used without the support of the package, the package must help the use of the product. Without the service of packaging, most of the goods, especially food, couldn’t reach the consumer. Living in the countryside, one can buy goods, for example milk directly from the farmer, but a can is needed to carry it home. This can also be considered as a refillable package, with almost an unlimited number of uses. In a city, milk can only be bought from the store, packed in aseptic carton box. It is not possible to avoid it, unless one goes daily to the dairy, and drink from the tap. From the packager's point of view, the most important function of the packaging is the protection of the usage and aesthetic values of the product from damages, and get the product sold to the consumer. For the producer, the package is also a value-creating media of the product. With the help of the package, the product can be sold to the consumer. For example, a barrel full of toothpaste has almost no purchase value, since who wants to buy 100 litre of toothpaste? Most probably nobody would buy even a handful of it in the grocery, but one

certainly does buy 50 grams of toothpaste in a tube. Modern packagings are an expressive form of the consumer-lifestyle. Over the protective function, packagings are giving character, "personality" to the product. They are following the product to the consumer, giving practical as well as aesthetic value. The proportion of the usage and aesthetic functions is important. The quality of packaging reflects our universal culture. All those products that appear in the shops and offer themselves for purchase, apart of that - with very few exceptions - their usage function is primary, are creating the surrounding material environment. ================================================================== WHAT THIS PACKAGING PERFORMS IN THE TOTAL MARKETING FUNCTION. • • Primary packaging is the material the first envelops the product and holds it. Secondary packaging is outside the primary packaging – perhaps used to group primary packages together.

What is the Role of Packaging • The role of packaging is containment, protection, safety, and display. • If you are selling your product through retail stores, you are trying to use your packaging to : -Catch the browsers attention -Create desire -Inspire confidence What is the Importance of Packaging The Importance of Packaging Let's talk about packaging. Packaging can be thought about in many different ways, but if we think purely about the purpose of packaging first, we find the purpose is to: Contain the product Communicate product information Facilitate product storage and shipment Reinforce branding • Packaging is important, but you need to determine how critical it is based on your marketing/distribution methods. • The packaging is a type of advertisement – even if it goes through mail order to the customer directly. It will sit on the customer’s shelf for peers to see. These peers are potential customers – and most likely they will have the same needs as the person who already made the purchase. • The package becomes even more critical if you plan to distribute your product through resellers and it will sit on a shelf in a store. There is a lot of competition for the customer’s attention. If you plan to do this, it is probably best to get a graphic designer to help you. • Use descriptive titles for the product - not necessarily creative. Many people go into a retail store looking for products to perform a function, but don't necessarily have a specific product in mind. You need to communicate your function and benefits to them quickly and effectively. • Graphics and slogans on the package should reflect the usage of the product. • Avoid technical jargon except for declaring content requirements. • Resellers are a good source of information for good packaging design. Ask for a reseller's input on a design. • Stickers on a package work very well for attracting attention. In addition, you can use them to your advantage. • Include testimonial from existing users. This will inspire confidence. • Include a sales literature in your packaging for the customer to pass on to their colleagues. ================================================================ WHY IS THE PACKAGING SYSTEM AN IMPORTANT ELEMENT OF THE MARKETING ? Packaging system is a set of operations that fulfil the function of creating sales units of the product. The operations of the packaging system are the follows: raw material supply, fuel and electricity production, packaging material production, package production, part of product processing that enables or helps the product to be packed, packaging (filling) operation. Since packages are made exclusively for the product's sake, the packaging system is a part of the product's system. That is why it is very difficult to set the boundaries of the packaging system. To set system boundaries is also a dynamic process, and a basic step if a life-cycle study of the packaging system shall be conducted. A first evaluation is made in a screening LCA (Life Cycle Assessment) to identify the key processes that have to be studied in more detailed LCA. Three aspects can be distinguished in these consecutive steps: -boundaries between the packaging system and the environment, -boundaries between the packaging system and the system of the packed product; and -the distinction between relevant processes related to the product system under study. Packaging system is often confused with only the packaging or filling operation. Although it is a very important part, but is only a part of the packaging system. The choice of the packaging operation is a complex decision, and it is based on the following main groups of factors: -protection of the product, -available packaging technology, -economics (costs), -marketing (especially marketing-communication), -product's properties, environmental considerations. One would consider that the available packaging technology is the most important factor, but it is not so. The history of packaging development showed, that new packaging technologies were found first of all from the wish to improve the protection functions of packaging.

Economics is another important factor, it is crucial for the packager to be profitable, and spend the least possible on packaging the product. Market considerations are another important factor especially at present level of "supermarket societies". If a producer wants the consumer to choose his product from the wide range of goods available, he has to do a lot more than only produce a good product. The product shall be packed to protect and enhance distribution. Pleasing, arising attention, image creation, helping the using ease, and most important: information supply, are top functions of packages. Naturally the package's properties are adjusted to the packed product, but it is not seldom that the product's properties are changed with the purpose of creating more practical package shapes. The motives are primarily economic -- simpler shapes are easier, and more effective to collect into secondary (retail) packages. Another motive is the environmental concern: simpler shapes use less materials, and more effective collection to secondary packages also means reduced resource exploitation. It is sensible, and legally required that waste management options are considered already at package design. Design for reuse, recovery, or eventually disposal, are newly emerged tools of environmental marketing. ================================ THE SOCIAL IMPORTANCE OF PACKAGING Packaging as a service In modern societies, on the present level of economic development, to satisfy our needs, we have to rely on the services of the society. To be able to obtain consumer goods, we need among others the service of packaging. This study is based on the fact that packaging is an important part of our lives. This way the most important ‘impact’ of packaging is that it enables satisfying human needs in an effective way. Packaging effectivity means that packaging fulfils its function with minimal use of resources and minimal overall wastage. Service means that packaging consumer goods, helps their distribution, and gives an access to goods otherwise not accessible. It is most evident in food packaging. Conserving perishable food prevents early spoilage, invention of aseptic packaging prolongs shelf-life and makes possible distribution also to greater distances. This fact is more and more important in the present way of increasing urbanisation. In such level of urbanisation, distribution of goods, especially food, is crucial, and the role of packaging is enormous. The role of packaging in waste reduction is the most evident at food packaging. When food is processed and packaged, the food residues are often used as fuel, animal feed or some economically useful by-product. In absence of packaged processed food, the residues become garbage in the household. Another reason why food packaging reduces waste is that it reduces spoilage. ========================================================== SEA FOOD FOR EXPORTS THIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING. -product safely packed, with the right packing material. -product quality is secured -product flavor is retained -product content visible -product content identifiable -design layout clear -effective color combination -the right font size lettering. -packs easily visible / seen on the store shelf -packaging functional -easy to shop -meets functional requirements -meets the packaging technical requirements -packaging carries identifiable brand -instructions/directions ''how to use'' -nutritional value displayed etc etc WE CHOOSE THESE COMBINATIONS, SO AS TO MAINTAIN PRODUCT STANDARD / NUTRIONAL VALUE / EASILY PORTABLE/ MAINTAINS HYGYENIC STANDARDS. ======================================================= UNISEX PERFUME THIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING. -product safely packed, with the right packing material. -product content visible -product content identifiable -design layout clear -effective color combination -the right font size lettering. -packs easily visible / seen on the store shelf -packaging functional -packaging carries identifiable brand etc etc THE PRODUCT IS VISIBLE, IDENTIFIABLE/ AND EASILY SELECTABLE BY THE CONSUMERS. ===================================================== PREMIUM BASMATI RICE

THIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING. -product safely packed, with the right packing material. -product quality is secured -product flavor is retained -product content visible -product content identifiable -design layout clear -effective color combination -the right font size lettering. -packs easily visible / seen on the store shelf -easy to shop -meets functional requirements -meets the packaging technical requirements -packaging carries identifiable brand -packaging functional etc etc THE PRODUCT IS VISIBLE, IDENTIFIABLE/ AND EASILY SELECTABLE BY THE CONSUMERS. ===================================================== ######################################### 3 a) Discuss the main objectives of Sales Promotion. Identify some sales promotions methods directed at consumers, which can be used by a soap manufacturer MAJOR OBJECTIVES OF SALES PROMOTIONS. -to support the advertising program. -to support the sales team drive -to support the sales channels - trade. -to accelerate the sales -to drive the people traffic to the point of sales. -to stimulate the people to make the buying decision. -to influence the people to choose a particular brand. -to help the retail to move the merchandise -to help to liquidate the stocks. -to help to overcome the competition. -to help to gain the market share -to draw the customers' attention towards the product on the shelf. etc etc ---------------------------------------------------------------------AS FOR THE ELEMENTS OF PROMOTIONS, YOUR SELECTION WILL DEPEND ON THE FOLLOWING -nature of the product -market situation -sales situation -marketing / sales objectives -budget etc etc ================================= sales promotion Successful promotion campaigns don't happen by chance. To realize goals, promotional products programs must be carefully planned, taking into consideration the audience, budget and, of course, the ultimate result to be gained. 1. Define a specific objective. Whether the goal is to increase traffic at a trade show exhibit or to boost sales with current clients, the first step in any campaign is to clarify the purpose of the program. 2. Determine a workable distribution plan to a targeted audience. Distribution of a promotional product is as important as the item itself. Research shows that a carefully executed distribution plan significantly increases the effectiveness of promotional products. For example, a pre-show mailing to a select audience delivers more trade show traffic and qualified leads than simply distributing items to passerby at the show. 3. Create a central theme. Linking a recognizable logo and color to all aspects of a campaign, from promotional products to sales sheets to product packaging, helps create an instantly recognizable image. 4. Develop a message to support the theme. Supporting a campaign's theme with a message helps to solidify a company's name, service or products in the target audience's mind. For instance, to promote its services to small businesses, a bank created the theme "Are you tired of being treated like a small fish?" and sent fish-related products to its prospects along with promotional literature. 5. Select a promotional product that bears a natural relationship to your profession or communications theme. A good example is a company that developed a magic motif for its conference at Disney World. Attendees received magic-related products to tie in with the theme "Experience the magic at Disney®." 6. Don't pick an item based solely on uniqueness, price or perceived value. Don't fall prey to the latest trends or fads. The most effective promotional products are used in a cohesive, well-planned campaign ================================================================ Consumer SALES Promotions

Consumer sales promotions are steered toward the ultimate product users—typically individual shoppers in the local market—but the same techniques can be used to promote products sold by one business to another, such as computer systems, cleaning supplies, and machinery. In contrast, trade sales promotions target resellers—wholesalers and retailers—who carry the marketer's product. Following are some of the key techniques used in consumer-oriented sales promotions. PRICE DEALS. A consumer price deal saves the buyer money when a product is purchased. The main types of price deals include discounts, bonus pack deals, refunds or rebates, and coupons. Price deals are usually intended to encourage trial use of a new product or line extension, to recruit new buyers for a mature product, or to convince existing customers to increase their purchases, accelerate their use, or purchase multiple units. Price deals work most effectively when price is the consumer's foremost criterion or when brand loyalty is low. Buyers may learn about price discounts either at the point of sale or through advertising. At the point of sale, price reductions may be posted on the package, on signs near the product, or in storefront windows. Many types of advertisements can be used to notify consumers of upcoming discounts, including fliers and newspaper and television ads. Price discounts are especially common in the food industry, where local supermarkets run weekly specials. Price discounts may be initiated by the manufacturer, the retailer, or the distributor. For instance, a manufacturer may "pre-price" a product and then convince the retailer to participate in this short-term discount through extra incentives. For price reduction strategies to be effective, they must have the support of all distributors in the channel. Existing customers perceive discounts as rewards and often respond by buying in larger quantities. Price discounts alone, however, usually do not induce first time buyers. Another type of price deal is the bonus pack or banded pack. When a bonus pack is offered, an extra amount of the product is free when a standard size of the product is bought at the regular price. This technique is routinely used in the marketing of cleaning products, food, and health and beauty aids to introduce a new or larger size. A bonus pack rewards present users but may have little appeal to users of competitive brands. A banded pack offer is when two or more units of a product are sold at a reduction of the regular single-unit price. Sometimes the products are physically banded together, such as in toothbrush and toothpaste offers. A refund or rebate promotion is an offer by a marketer to return a certain amount of money when the product is purchased alone or in combination with other products. Refunds aim to increase the quantity or frequency of purchase, to encourage customers to "load up" on the product. This strategy dampens competition by temporarily taking consumers out of the market, stimulates the purchase of postponable goods such as major appliances, and creates on-shelf excitement by encouraging special displays. Refunds and rebates are generally viewed as a reward for purchase, and they appear to build brand loyalty rather than diminish it. Coupons are legal certificates offered by manufacturers and retailers. They grant specified savings on selected products when presented for redemption at the point of purchase. Manufacturers sustain the cost of advertising and distributing their coupons, redeeming their face values, and paying retailers a handling fee. Retailers who offer double or triple the amount of the coupon shoulder the extra cost. Retailers who offer their own coupons incur the total cost, including paying the face value. In this way, retail coupons are equivalent to a cents-off deal. Manufacturers disseminate coupons in many ways. They may be delivered directly by mail, dropped door to door, or distributed through a central location such as a shopping mall. Coupons may also be distributed through the media—magazines, newspapers, Sunday supplements, or free-standing inserts (FSI) in newspapers. Coupons can be inserted into, attached to, or printed on a package, or they may be distributed by a retailer who uses them to generate store traffic or to tie in with a manufacturer's promotional tactic. Retailer-sponsored coupons are typically distributed through print advertising or at the point of sale. Sometimes, though, specialty retailers or newly opened retailers will distribute coupons door to door or through direct mail. -----------------------------------------------------------------CONTESTS/SWEEPSTAKES. The main difference between contests and sweepstakes is that contests require entrants to perform a task or demonstrate a skill that is judged in order to be deemed a winner, while sweepstakes involve a random drawing or chance contest that may or may not have an entry requirement. At one time, contests were more commonly used as sales promotions, mostly due to legal restrictions on gambling that many marketers feared might apply to sweepstakes. But the use of sweepstakes as a promotional tactic has grown dramatically in recent decades, partly because of legal changes and partly because of their lower cost. Administering a contest once cost about $350 per thousand entries, compared to just $2.75 to $3.75 per thousand entries in a sweepstake. Furthermore, participation in contests is very low compared to sweepstakes, since they require some sort of skill or ability. -----------------------------------------------------------------SPECIAL EVENTS. According to the consulting firm International Events Group (IEG), businesses spend over $2 billion annually to link their products with everything from jazz festivals to golf tournaments to stock car races. In fact, large companies like RJR Nabisco and AnheuserBusch have special divisions that handle nothing but special events. Special events marketing offers a number of advantages. First, events tend to attract a homogeneous audience that is very appreciative of the sponsors. Therefore, if a product fits well with the event and its audience, the impact of the sales promotion will be high. Second, event sponsorship often builds support among employees—who may receive acknowledgment for their participation—and within the trade. Finally, compared to producing a series of ads, event management is relatively simple. Many elements of event sponsorship are prepackaged and reusable, such as booths, displays, and ads. Special events marketing is available to small businesses, as well, through sponsorship of events on the community level. -------------------------------------------------------------PREMIUMS. A premium is tangible compensation that is given as incentive for performing a particular act—usually buying a product. The premium may be given for free, or may be offered to consumers for a significantly reduced price. Some examples of premiums include receiving a prize in a cereal box or a free garden tool for visiting the grand opening of a hardware store. Incentives that are given for free at the time of purchase are called direct premiums. These offers provide instant gratification, plus there is no confusion about returning coupons or box tops, or saving bar codes or proofs of purchase. Other types of direct premiums include traffic builders, door openers, and referral premiums. The garden tool is an example of a trafficbuilder premium—an incentive to lure a prospective buyer to a store. A door-opener premium is directed to customers at home or to business people in their offices. For example, a homeowner may receive a free clock radio for allowing an insurance agent to enter their home and listening to his sales pitch. Similarly, an electronics manufacturer might offer free software to an office manager who agrees to an on-site demonstration. The final category of direct premiums, referral premiums, reward the purchaser for referring the seller to other possible customers. Mail premiums, unlike direct premiums, require the customer to perform some act in order to obtain a premium through return mail. An example might be a limited edition toy car offered by a marketer in exchange for one or more proofs-of-purchase and a payment covering the cost of the item plus handling. The premium is still valuable to the consumer because they cannot readily buy the item for the same amount. ----------------------------------------------------------------------------CONTINUITY PROGRAMS. Continuity programs retain brand users over a long time period by offering ongoing motivation or incentives. Continuity programs demand that consumers keep buying the product in order to get the premium in the future. Trading stamps, popularized

in the 1950s and 1960s, are prime examples. Consumers usually received one stamp for every dime spent at a participating store. The stamp company provided redemption centers where the stamps were traded for merchandise. A catalog listing the quantity of stamps required for each item was available at the participating stores. Today, airlines' frequent-flyer clubs, hotels' frequent-traveler plans, retailers' frequentshopper programs, and bonus-paying credit cards are common continuity programs. When competing brands have reached parity in terms of price and service, continuity programs sometimes prove a deciding factor among those competitors. By rewarding long-standing customers for their loyalty, continuity programs also reduce the threat of new competitors entering a market. ---------------------------------------------------------SAMPLING. A sign of a successful marketer is getting the product into the hands of the consumer. Sometimes, particularly when a product is new or is not a market leader, an effective strategy is giving a sample product to the consumer, either free or for a small fee. But in order for sampling to change people's future purchase decisions, the product must have benefits or features that will be obvious during the trial. There are several means of disseminating samples to consumers. The most popular has been through the mail, but increases in postage costs and packaging requirements have made this method less attractive. An alternative is door-to-door distribution, particularly when the items are bulky and when reputable distribution organizations exist. This method permits selective sampling of neighborhoods, dwellings, or even people. Another method is distributing samples in conjunction with advertising. An ad may include a coupon that the consumer can mail in for the product, or it may include an address or phone number for ordering. Direct sampling can be achieved through prime media using scratchand-sniff cards and slim foil pouches, or through retailers using special displays or a person hired to hand out samples to passing customers. Though this last technique may build goodwill for the retailer, some retailers resent the inconvenience and require high payments for their cooperation. A final form of sample distribution deals with specialty types of sampling. For instance, some companies specialize in packing samples together for delivery to homogeneous consumer groups, such as newlyweds, new parents, students, or tourists. Such packages may be delivered at hospitals, hotels, or dormitories and include a number of different types of products. Trade SALES Promotions A trade sales promotion is targeted at resellers—wholesalers and retailers—who distribute manufacturers' products to the ultimate consumers. The objectives of sales promotions aimed at the trade are different from those directed at consumers. In general, trade sales promotions hope to accomplish four goals: 1) Develop in-store merchandising support, as strong support at the retail store level is the key to closing the loop between the customer and the sale. 2) Control inventory by increasing or depleting inventory levels, thus helping to eliminate seasonal peaks and valleys. 3) Expand or improve distribution by opening up new sales areas (trade promotions are also sometimes used to distribute a new size of the product). 4) Generate excitement about the product among those responsible for selling it. Some of the most common forms of trade promotions—profiled below—include point-of-purchase displays, trade shows, sales meetings, sales contests, push money, deal loaders, and promotional allowances. POINT-OF-PURCHASE (POP) DISPLAYS. Manufacturers provide point-of-purchase (POP) display units free to retailers in order to promote a particular brand or group of products. The forms of POP displays include special racks, display cartons, banners, signs, price cards, and mechanical product dispensers. Probably the most effective way to ensure that a reseller will use a POP display is to design it so that it will generate sales for the retailer. High product visibility is the basic goal of POP displays. In industries such as the grocery field where a shopper spends about three-tenths of a second viewing a product, anything increasing product visibility is valuable. POP displays also provide or remind consumers about important decision information, such as the product's name, appearance, and sizes. The theme of the POP display should coordinate with the theme used in ads and by salespeople. -------------------------------------------------------------TRADE SHOWS. Thousands of manufacturers display their wares and take orders at trade shows. In fact, companies spend over $9 billion yearly on these shows. Trade shows provide a major opportunity to write orders for products. They also provide a chance to demonstrate products, disseminate information, answer questions, and be compared directly to competitors. Related to trade shows, but on a smaller scale, are sales meetings sponsored by manufacturers or wholesalers. Whereas trade shows are open to all potential customers, sales meetings are targeted toward the company's sales force and/or independent sales agents. These meetings are usually conducted regionally and directed by sales managers. The meetings may be used to motivate sales agents, to explain the product or the promotional campaign, or simply to answer questions. For resellers and salespeople, sales contests can also be an effective motivation. Typically, a prize is awarded to the organization or person who exceeds a quota by the largest percentage. --------------------------------------------------------------PUSH MONEY. Similarly, push money (PM)—also known as spiffs—is an extra payment given to sales-people for meeting a specified sales goal. For example, a manufacturer of refrigerators might pay a $30 bonus for each unit of model A, and a $20 bonus for each unit of model B, sold between March 1 and September 1. At the end of that period, the salesperson would send evidence of these sales to the manufacturer and receive a check in return. Although some people see push money as akin to bribery, many manufacturers offer it. ------------------------------------------------------------DEAL LOADERS. A deal loader is a premium given by a manufacturer to a retailer for ordering a certain quantity of product. Two types of deal loaders are most typical. The first is a buying loader, which is a gift given for making a specified order size. The second is a display loader, which means the display is given to the retailer after the campaign. For instance, General Electric may have a display containing appliances as part of a special program. When the program is over, the retailer receives all the appliances on the display if a specified order size was achieved. ------------------------------------------------------------------------TRADE DEALS. Trade deals are special price concessions superseding, for a limited time, the normal purchasing discounts given to the trade. Trade deals include a group of tactics having a common theme—to encourage sellers to specially promote a product. The marketer might receive special displays, larger-than-usual orders, superior in-store locations, or greater advertising effort. In exchange, the retailer might receive special allowances, discounts, goods, or money. In many industries, trade deals are the primary expectation for retail support, and the marketing funds spent in this area are considerable. There are two main types of trade deals: buying allowances and advertising/display allowances. -------------------------------------------------------------------------BUYING ALLOWANCES. A buying allowance is a bonus paid by a manufacturer to a reseller when a certain amount of product is purchased during a specific time period. For example, a reseller who purchases at least 15 cases of product might receive a buying allowance of $6.00 off per case, while a purchase of at least 20 cases would result in $7.00 off per case, and so forth. The payment may take the form of a check

or a reduction in the face value of an invoice. In order to take advantage of a buying allowance, some retailers engage in "forward buying." In essence, they order more merchandise than is needed during the deal period, then store the extra merchandise to sell later at regular prices. This assumes that the savings gained through the buying allowance is greater than the cost of warehousing and transporting the extra merchandise. Some marketers try to discourage forward buying, since it reduces profit margins and tends to create cyclical peaks and troughs in demand for the product. The slotting allowance is a controversial form of buying allowance. Slotting allowances are fees retailers charge manufacturers for each space or slot on the shelf or in the warehouse that new products will occupy. The controversy stems from the fact that in many instances this allowance amounts to little more than paying a bribe to the retailer to convince them to carry your company's products. But many marketers are willing to pay extra to bring their products to the attention of consumers who are pressed for time in the store. Slotting allowances sometimes buy marketers prime spaces on retail shelves, at eye level or near the end of aisles. The final type of buying allowance is a free goods allowance. In this case, the manufacturer offers a certain amount of product to wholesalers or retailers at no cost if they purchase a stated amount of the same or a different product. The allowance takes the form of free merchandise rather than money. -----------------------------------------------------------------ADVERTISING ALLOWANCES. An advertising allowance is a dividend paid by a marketer to a reseller for advertising their product. The money can only be used to purchase advertising—for example, to print flyers or run ads in a local newspaper. But some resellers take advantage of the system, so many manufacturers require verification. A display allowance is the final form of trade promotional allowance. Some manufacturers pay retailers extra to highlight their display from the many available every week. The payment can take the form of cash or goods. Retailers must furnish written certification of compliance with the terms of the contract before they are paid. Retailers are most likely to select displays that yield high volume and are easy to assemble. =========================================================== Sales promotion is one of the four aspects of promotional mix. Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Media and non-media marketing communications are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include: coupons discounts and sales, including Blue Cross Sale contests point of purchase displays rebates free samples (in the case of food items) • gifts and incentive items • free travel, such as free flights Sales promotions can be directed at either the customer, and / or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmick by many. ====================================================== -----------------------------------------------------------------------------------------------------b) SOAP MANUFACTURER Marketer Consumer sales promotion techniques -Price deal: A temporary reduction in the price, such for 2 weeks. •Loyalty rewards program: Consumers collect credits for purchases and redeem them for rewards. •Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. •Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). •Coupons: coupons have become a standard mechanism for sales promotions. •Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. •On-shelf couponing: Coupons are present at the shelf where the product is available. •Checkout dispensers: On checkout the customer is given a coupon based on products purchased. •On-line couponing: Coupons are available on line. Consumers print them out and take them to the store. •Online interactive promotion game: Consumers play an interactive game associated with the promoted product. See an example of the Interactive Internet Ad for tomato ketchup. Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. •Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product. •Point-of-sale displays: • Aisle interrupter: A sign the juts into the aisle from the shelf. • Dangler: A sign that sways when a consumer walks by it. • Dump bin: A bin full of products dumped inside. • Glorifier: A small stage that elevates a product above other products. • Wobbler: A sign that jiggles. • Lipstick Board: A board on which messages are written in crayon. • Necker: A coupon placed on the 'neck' of a bottle. -------------------------------------------------------------------------------------Trade sales promotion techniques • Trade allowances: short term incentive offered to induce a retailer to stock up on a product. • Dealer loader: An incentive given to induce a retailer to purchase and display a product. • Trade contest: A contest to reward retailers that sell the most product.

• Point-of-purchase displays: Extra sales tools given to retailers to boost sales. • Training programs: dealer employees are trained in selling the product. • Push money: also known as "spiffs". An extra commission paid to retail employees to push products. ---------------------------------------------------------------------------------------------------############################################## b) What is a brand? What distinct advantages do companies get from branding? Illustrate. BRAND ADVERTISING MEANS CREATING A BRAND IDENTITY FOR THE PRODUCT THROUGH -symbol / logo / fonts/ color/ sound. -product features/ benefits/ quality/ certainty/ reliability/delivery/ packaging/design. WITH WHICH CREATE -a perception through -a visual/ communication/ behavior WHICH WHICH -BRAND -BRAND -BRAND -BRAND RESULTS IN A BRAND PERSONALITY CONSISTS OF PERMEATION DISTINCTIVENESS VALUES IMAGE

WHICH HELPS TO DEVELOP 1. BRAND PLATFORM, WHICH INCLUDES -vision -mission -value -personality -positioning -strategy 2.BRAND ARCHITECTURE, WHICH INCLUDES -association -commitment -earnings -essence -identity -extension -harmonization -image -licensing WHICH CREATES FOR THE -sales -market share -consumer preference -builds loyalty -raises relative price PRODUCT

WHICH RAISES THE PRODUCT BRAND EQUITY -distinctiveness -perceived quality -value -permeation -personality -competitive innoculation -potential ============================== WHY BRANDING IS IMPORTANT FOR A PRODUCT TO BE SUCCESSFUL, IT MUST -bring continuous sales -gain market share, -win consumer preference -build loyalty -raises the relative price. WHICH RAISES THE EQUITY/ BRAND EQUITY OF THE PRODUCT THAT IS WHY BRANDING IS SO IMPORTANT. =======================================================

THIS EQUITY VALUE IS VERY IMPORTANT TO THE COMPANY ---- WHY the figures below indicate why????? BRAND EQUITY VALUE OF [US DOLLARS] 1.Coca-Cola 65.3 BILL. 2.Microsoft 58.7 BILL. 3.IB M 57.1 BILL. 4.GE 51.5 BILL. 5.Nokia 33.7BILL. 6.Toyota 32.1 BILL. 7.Intel 30.9 BILL 8.McDonald’s 29.4 BILL. 9.Disney 29.2 BILL. 10.Mercedes-Benz 23.6 BILL. ============================================= PRODUCT BRANDING BRANDING IS VERY IMPORTANT TODAY, FROM BOTH SIDES OF THE MARKETING EQUATION. FACTOR ONE --MARKETERS' SIDE THE MARKETERS CREATE A PLATFORM FOR THEIR PRODUCT'S BRAND THROUGH -symbol / logo / fonts/ color/ sound. -product features/ benefits/ quality/ certainty/ reliability/delivery/ packaging/design. Favorable brand attitudes are the determinants of brand loyalty - consumers must like the product in order to develop loyalty to it. In order to convert occasional purchasers into brand loyalists, habits must be reinforced. Consumers must be reminded of the value of their purchase and encouraged to continue purchasing the product in the future. To encourage repeat purchases, advertisement before and after the sale is critical. In addition to creating awareness and promoting initial purchases, advertising shapes and reinforces consumer attitudes so these attitudes mature into beliefs, which need to be reinforced until they develop into loyalty. Ads reinforce consumer's perception and behavior. Remember, it is easier to reinforce behaviors than to change them and the sale is just the beginning of an opportunity to turn the purchaser into a loyalist. THE MARKETERS ADOPT THE FOLLOWING TO DEVELOP BRAND LOYALISTS. 1 Develop an unbeatable product - if you want to keep customers, make sure they can get what they want from your product. 2 Give customers an incentive to repeat-purchase - chance to win a prize, gift with a certain number of proofs of purchase, in-pack discount coupon, etc. 3 Stand behind your product - if customers don’t trust the product, they won’t purchase it again. 4 Know your trophy customers and treat them best of all . 5 Make it easier to buy your brand than competing brands - availability and simplicity are keys in today’s high-speed world. Customers appreciate convenience more than ever. 6 Go to your customers - bring the product to customers when possible. 7 Become a customer service champion - seek to serve the customer and they will repeat-purchase…again and again! ======================================================================== FACTOR SECOND-----BUYERS' SIDE ON THE OTHER SIDE OF THE MARKETING EQUATION. Brand loyalty is a consumer’s preference to buy a particular brand in a product category. It occurs because consumers perceive that the brand offers the right product features, images, or level of quality at the right price. This perception becomes the foundation for a new buying habit. Basically, consumers initially will make a trial purchase of the brand and, after satisfaction, tend to form habits and continue purchasing the same brand because the product is safe and familiar. CORE BRAND LOYALISTS seek distinct advantages: 1 products are perceived as effectively differentiated from their competitors. 2 products satisfy consumer needs on both intellectual and emotional levels.

3 products consistently deliver on their brand promise, thus they consistently deliver value. When brands resonate with customers at this level, there is a powerful emotional relationship in place. This is the key element that leads to loyalty. THE PRODUCT OFFERS, EXACTLY, WHAT THE BRAND LOYALISTS SEEK: -product distinctiveness -product perceived quality -product value for money. -product permeation -product personality -product competitive innoculation -product's perceived potential ############################################## 4 a) Why does the marketing mix change as the product moves through its life cycle? How would you expect the mix to change for a novel home vacuum cleaning kit moves through the product life cycle? PRODUCT LIFE CYCLE

Products pass through a series of stages. Successful products progress through four basic stages: (1) Introduction; (2) Growth; (3) Maturity; and (4) Decline. The product life cycle concept provides important insights about developments at the various stages of the product's life. Knowledge that profits assume a predictable pattern through the stages and that promotional emphasis should shift from product information in the early stages to product promotion in the later stages should allow the marketing manager to improve planning. ======================================= PRODUCT LIFE CYCLE BENEFITS Here is a brief description of what is expected to take place in the stages of the life cycle: 1. Initiation starts with the initial conception or discovery of the product idea and runs until it has been evaluated, has become specific, and has been approved for development. 2. Development covers the various activities that transform an abstract product idea into a concrete prototype model of the product (if it is a tangible good) that can be manufactured. 3. Market plans and tests is our term for the final gestation phase, in which the product would pass its last tests and everything be ready for commercialising it. 4. Introduction starts when the offering is made available to buyers, probably on a limited scale, and continues as it is tried by innovators and experiences show slow sales growth. 5. Growth begins when numerous tryers like the product, word of its virtues spread, and the product sales "take off". Since the product is not established until this takes place, we include it in this chapter of "evolving products6. Maturity comes eventually, for the halcyon days of sharply rising demand vanish when most potential buyers have become actual customers. This may be a very long period during which demand decelerates and then reaches a plateau. 7. Decline sets in persistently when the product eventually becomes obsolete. When it actually starts to toboggan, it is time to give the product a merciful death and burial. The marketing strategist should never assume that the PLC operates inexorably, but should rather examine a brand's or product's actual position carefully. Further a serious effort should be made to find a winning strategy can revive a slumping demand, rather than summarily abandoning the possibility. In that context, the PLC does pose a hypothesis of product or brand behaviour that is useful for sales forecasting. It also enables us to clarify strategies in terms of their timeliness. ============================================== WHY YOU SHOULD USE THE PRODUCT LIFE CYCLE CURVE FOR ANALYSIS The product life cycle curve can be extremely important in generating strategist, and it should be monitored and controlled by the marketing manager. This is necessary due primarily to five reasons: 1 . Rapid Maturity of Products 2. Life Cycle Product Mix 3. Strategic Implications 4. Product Planning 5. Changing the Life Cycle Curve ============================================= THE PRODUCT LIFE CYCLE Successful products progress through four basic stages: Introduction. Growth. Maturity and Decline. This progression is known as the Product Life Cycle. 1.INTRODUCTION The company's objective in the early stages of the product life cycle is to stimulate demand for the new market entry. Since the product is not known to the public, promotional campaigns stress information about its features and benefits. They also may be directed toward marketing intermediaries in the channel to induce them to carry the product. In this phase, the public becomes acquainted with the merits of the product and begins to accept it. Losses are common during the introductory stage due to heavy promotion and extensive research and development expenditures. However, the ground is being laid for future profits. Companies expect.to recover the costs and to begin earning profits when the new product moves into the second phase of its life cycle the growth stage.

2.GROWTH Sales volumes rise rapidly during the growth stage as new customers make initial purchases and early buyers re purchase the product. 'Word of mouthl and advertising induce hesitant buyers to make trial purchases. As the company begins to realise substantial profits from its investment during the growth stage, the product attracts competitors. Success breads imitation and other companies rush into the market with competitive products. The majority of firms in a particular market enter during the growth stage. 3.MATURITY Industry sales continue to grow during the early part of the maturity stage, but eventually they reach a plateau as the backlog of potential customers is exhausted. By this time, a large number of competitors have entered the market, and profits decline as competition intensifies. In the maturity stage, differences among competing products diminish as competitors discover the product and promotional characteristics most desired by the market. Heavy promotional outlays emphasise subtle differences among competing products, and brand competition intensifies. In this stage, often available products exceed industry demand. Companies attempting to increase their sales and market share must do so at the expense of competitors. As competition intensifies, the competitors tend to cut prices in an attempt to attract new buyers. Even though a price reduction may be the easiest method of inducing additional purchases, it is also one of the simplest moves for, competitors to duplicate. Reduced prices result in decreased revenues for all firms in the industry unless the price cuts produce enough increased purchases to offset the loss in revenue on each item sold. 4.DECLINE In the final stage of the product's life, innovations or customer preferences bring about an absolute decline in industry sales. Sales and profits decline and companies begin to leave the industry in search of more profitable products. ======================================================== FOR EFFECTIVE MARKETING EFFORTS YOU WORK WITH PRODUCT LIFE CYCLE 1.INTRODUCTION **ORGANISATION CONDITIONS -High Costs -Inefficient Production Levels -Cash Demands HIGH -----------------**ENVIRONMENTAL CONDITIONS -Few or No Competitions -Limited Product Awareness and Knowledge -Limited Demand -------------------------**MARKETING EFFORTS -Stimulate Demand -Establish High Price -Offer Limited Product Variety -Increase Distribution -----------------------------===============================

2.GROWTH **ORGANISATIONAL CONDITIONS -Smoothing Production -Lowering Costs -Operation Efficiencies -Product Improvement Work ---------------------------------**ENVIRONMENTAL CONDITIONS -Expanding Markets -Expanded Distribution -Competition Strengthens -Prices Soften a Bit --------------------------------**MARKETING EFFORTS -Cultivate Selective Demand -Product Improvement -Strengthen Distribution -Price Flexibility -----------------------------------===================================== 3. MATURITY **ORGANISATIONAL CONDITIONS A. EARLY MATURITY -efficient scale of operation -production modification work -LOW profit B. LATE MATURITY -product standardization -Decreasing Profits -----------------------------**ENVIRONMENTAL CONDITIONS A. EARLY MATURITY -slowing growth -strong competition -expanded market -heightened competition B. LATE MATURITY -Faltering demand -fierce competition -shrinking number of competitors -established distribution pattern ----------------------------------**MARKETING EFFORTS A.EARLY MATURITY -Emphasise Market Segmentation -Improve Service and Warranty

-Reduce Prices B. LATE MATURITY -ultimate in market segmentation -competitive pricing -retain distribution -------------------------------=================================== 4.DECLINE **ORGANISATION CONDITIONS -Permanently Declining Demand ------------------------------**ENVIRONMENTAL CONDITIONS -Reduction of Competitors -Limited Product Offerings -Price Stabilisations ---------------------------**MARKETING EFFORTS -Increase Primary Demand -Profit Opportunity Pricing -Prune and Strengthen Distribution -------------------------------======================================= EXAMPLE OF MARKETING PROGRAM FOR STAGES IN PRODUCT LIFE CYCLE A.INTRODUCTION. 1.MARKETING OBJECTIVE -successful entry in the market. 2.SALES -increase sales. 3.CUSTOMERS -identify customer segments 4.ENVIRONMENT -Comply With External Regulations & Accepted Values 5.PRODUCT -Assure High Quality 6.PRICE -use cost plus strategy 7.PROMOTIONS -build product awareness 8.DISTRIBUTION -build and channels ================================== B. GROWTH. 1.MARKETING OBJECTIVE -gain market share -increase profitability 2.SALES

-increase / maximize sales volume. 3.CUSTOMERS -determine customer acceptance. 4.ENVIRONMENT -determine channel responses. 5.PRODUCT -offer extensions or value added like service. 6.PRICE -penetrate deeper into the market 7.PROMOTIONS -induce trial. 8.DISTRIBUTION -use selective distribution -------------------------------------------------------==================================== C.MATURITY. 1.MARKETING OBJECTIVE -consolidate market share -maximize profit. 2.SALES -maximize sales. 3.CUSTOMERS -determine re-purchase rates. 4.ENVIRONMENT -monitor competitive activities 5.PRODUCT -diversify the brands or models 6.PRICE -price war with competitors 7.PROMOTIONS -stress favourable evaluations 8.DISTRIBUTION -more intensive distribution ----------------------------------------------------------===================================== D.DECLINE. 1.MARKETING OBJECTIVE -arrest the market share decline. -minimize effort/time in marketing expenses. 2.SALES -retain sales volume. 3.CUSTOMERS -evaluate customer complaints. 4.ENVIRONMENT -search for new opportunities. 5.PRODUCT -phase out weak items 6.PRICE -cut price or offer other incentives 7.PROMOTIONS -maintain loyalty 8.DISTRIBUTION -depend on middlman

NEW PRODUCT –NOVEL HOME VACUUM CLEANING KIT. Market Development is the outcome of marketing mix elements IN THE PRODUCT LIFE CYCLE. The marketing strategy is usually built around the 4Ps P1=PRODUCT P2=PRICE P3=PROMOTIONS P4=PLACE [ SALES/DISTRIBUTION] ==================================== The marketing strategy must respond to the nature of the product / market situation. The marketer would use different weightages for the 4Ps as per the situations. FOR MARKET DEVELOPMENT IN CASE OF A NEW PRODUCT, AT THE LAUNCH, TOOTH PASTE ======================================== EXAMPLE ONE MARKET DEVELOPMENT AT THE INTRODUCTION STAGE.

**ORGANISATION CONDITIONS -High Costs -Inefficient Production Levels -Cash Demands HIGH -----------------**ENVIRONMENTAL CONDITIONS -Few or No Competitions -Limited Product Awareness and Knowledge -Limited Demand -------------------------**MARKETING EFFORTS -Stimulate Demand -Establish High Price -Offer Limited Product Variety -Increase Distribution -----------------------------=============================== Market Penetration Strategies. P1 1.ATTRACTING COMPETITORS' CUSTOMERS. Sharper product differentiation. Finding other products' uses. Increasing promotional effort. ---------------------------------------

P2 2.INCREASING PRESENT CUSTOMERS' RATE OF USAGE. Increasing the units of sales. (Special price packages/cross selling products) Reduction in price. Price incentive for increased use. ----------------------------------------------P3 3.REDUCING NUMBER OF LOST CUSTOMERS. Improving communication with present customers. Promotion aiming at existing customers. Understand reasons for losing customers. --------------------------------------------------------P4 4. CONCENTRATING RESOURCES ON MOST PROFITABLE CUSTOMER SEGMENTS. Concentrating on distribution channels reaching most profitable segments. Offering total customer service at higher price. ====================================================== ############################################## b) What is cyber marketing? What are the prospects and problems faced by the buyer in using this method? Discuss the limitations of cyber marketing. Cyber marketing has now become an indispensable segment of e-commerce as well as the internet and World Wide Web related topics. Cyber marketing simply refers to a technique of attracting potential customers by advertising your products or services through such means as websites, emails, and banners. In other words, cyber marketing is a blend of internet technology and direct marketing principles that is adopted by business owners to find profitable customers and to interact with them in order to enhance their business activities, thereby ensuring improved ROI (Return on Investment.) A number of activities are involved in cyber marketing such as online marketing, fax direct marketing, canvassing, call center direct marketing, and mobile phone marketing via SMS (Short Message Service.) Benefits derived from the adoption of cyber marketing techniques are immense. First of all, it enables to minimize business costs and helps you to reach a substantial number of customers and that too within minimal time frame. Another great benefit of cyber marketing is that it allows you to cost-effectively reach in any type market, let it be regional, national, and international. Also, a significant benefit of cyber marketing is that it enables you to win profitable customers. Exceptionally low marketing costs, high profit margin, increased customer loyalty, round the clock services, and expansion in customer base are the other obvious benefits of cyber marketing. However, it is not as easy you think to enhance your business profitability via cyber marketing techniques. In other words, in order to employ this marketing technique, it is important that business owners and other people engaged in the internet field such as ecommerce and marketing professionals must possess adequate skills. Cyber marketing includes - E-Business technology - E-Business Communication - E-Business Distribution Systems - E-Business Value Strategies - E-Business Strategy - E-Business Management - Individual as well as the diffusion of innovations - How to gather and use information - The Political, Legal, and Ethical Environment knowledge of cyber marketing helps such areas as: - Strategies as well as tactics involved in online marketing

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Role of E-business in restructuring the traditional distribution systems Way of designing advertising campaign and advertising banner How to employ email marketing, blog advertising, viral marketing, and Google advertising What is search engine optimization (SEO) and how to increase web visitor count through SEO? How to develop contents that should be included in a website Web analysis Aspects covering ethical, legal, and political sides of cyber marketing Cyber marketing tools HELPS TO UNDERSTAND gain the attention of audience through an effective website use gathered information to discover new knowledge enhance the value of your business using management systems organize E-Business strategies to compete with your rivals employ different data to gain competitive benefits

WHICH - How to - How to - How to - How to - How to

CYBER MARKETING IS DIFFERENT FROM CONVENTIONAL MARKETING. -but it is part of your total integrated marketing programs. -IT IS A SUPPLEMENT TO YOUR TOTAL MARKETING PLAN. ############################################################### 333333333333333333333333333333333333

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