american marketing association: marketing is the activity, set of institutions, and processes for...
TRANSCRIPT
Define Marketing
American Marketing Association: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing makes the journey of a product from its birthplace of factory to the hands of the consumer
It is a fascinating field involving decisions like knowing the needs of the consumer, how to communicate the benefits to the target audience and reaching the product in the hands of the consumer and then ensuring that the consumer comes back for more
B2B, B2C
Marketing vs Sales
Selling is the act of persuading or influencing a customer to buy (actually exchange something of value for) a product or service
The selling concept, instead of focusing on meeting consumer demand, tries to make consumer demand match the products it has produced
Sales takes the awareness marketing has created and sells to the people who now know not only about the product, but now want it
SELLING V/S MARKETING
SELLING MARKETING
STARTING POINT
MEANS
ENDS
PRODUCT
AGGRESSIVE SELLING & PROMOTION
PROFITS THROUGH SALES VOLUME
CUSTOMER NEEDS
SUPERFLUOUS SELLING
PROFITABILITY THROUGH CUSTOMER SATISFACTION
What can be sold
Services Events Experiences Persons Places Properties Organizations Information Ideas
What is a SBU
SBU – Strategic Business Unit
An SBU has three characteristics: (1) It is a single business or collection of related
businesses that can be planned separately from the rest of the company;
(2) it has its own set of competitors; and (3) it has a manager responsible for strategic
planning and profit performance who controls most of the factors affecting profit
4 Ps & 4 Cs
4 Ps•Product•Place•Price•Promotion
4 Cs•Customer Solution•Convenience•Customer Cost•Communication
7 Ps
•Product
•Place
•Price
•Promotion
•People
•Process
•Physical Evidence
Applicable on to service marketing
People: directly or indirectly involved in the consumption of a service
Process: Procedure, mechanisms and flow of activities by which services are consumed
Physical Evidence: The ability and environment in which the service is delivered.
Single source of all these communication to bring consistency in the communication.
Integrated Marketing Communication
Television Advertisement good for awareness but not as powerful as Sales Promotion to generate Action.
Cost per Thousand (CPM)
Pass Along Readership
Web as a medium cannot be ignored.
Hyper Impulsivity: Due to closer conjunction of Desire, Transaction and Payment.
Event Marketing/Sponsorships
Cause Marketing
Unconventional Media
Novel Media
Customerservice
Packaging
Events,Trade shows
Sponsorships
POP
Advertising specialties
STP
Segmentation A market segment consists of a large identifiable group within a
market, with similar wants, purchasing power, geographical location, buying attitudes, or buying habits
Geographic, Demographic, Psychographic, Behavioral Niche Marketing: A niche is a more narrowly defined group,
typically a small market whose needs are not being well served.
Target Market Marketers evaluate each segment to determine how many and
which ones to target and enter
Positioning Positioning is the act of designing the company’s offering and
image to occupy a distinctive place in the target market’s mind
The STDP Process
Identify markets with
unfulfilled needs
Discover segments on the basis of consumer
characteristics
Analyse segment
potential & finalise
segments to target
Differentiate product
offering from competitors
Create a distinctive
positioning in the minds of consumers
Segmentation
Mass marketing
Segment marketing
Reduces waste
Better understanding of segment environment
Best-fit strategies
Saves time & money
Easy to coordinate
BCG Matrix
?: A question mark requires a lot of cash; company is spending money on plant, equipment, and personnel. Co has to think hard about whether to keep pouring money into this business.
Stars: Market leaders in a high-growth market. It does not necessarily produce positive cash flow; the company must still spend to keep up with the high market growth and fight off competition.
Cash cow: produces a lot of cash for the company (due to economies of scale and higher profit margins), paying the company’s bills and supporting its other businesses
Dogs: generate low profits or even losses
HOLD BUILD BUILD
Harvest HOLD BUILD
Harvest Harvest HOLD
GE Investment Priority System
Business Unit Position
Ind
ust
ry A
ttra
ctiv
enessLow Medium High
Hig
hM
ed
ium
Low
Threat of Substitute Products
Threat of New
Entrants
Threat of New Entrants
Rivalry Among Competing Firms
in Industry
Bargaining Power of Buyers
Bargaining Power of Suppliers
Porter’s Five Forces Model of Competition
Product Mix
The product mix of an individual company can be described in terms of width, length, depth, and consistency.
Width: how many different categories (tbr, tp, personal care)
Length (Line): total number of products
Depth: how many variants of each product are offered(dry, oily, normal / size / colours )
Consistency: how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.
Product Mix
Line Extension
Multi Branding
Brand Extension
New Brand Development
Same Brand Name
New Brand Name
Same Product
Category
New ProductCategory
Branding
Brand: name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
Brand Equity: Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name
The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. This concept is referred to as brand equity
Brand Strategy
Line extensions: existing brand name extended to new sizes or flavours in the existing product category
Brand extensions: brand names extended to new product categories
Multibrands/Flanker Brands: new brand names introduced in the same product category
New brands: new brand name for a new category product
Co-brands: brands bearing two or more well-known brand names
Channel Partners/Intermediaries
Merchants: wholesalers and retailers—buy, take title to, and resell the merchandise.
Agents: brokers, manufacturers’ representatives and sales agents—search for customers and may negotiate on the producer’s behalf but do not take title to the goods
Facilitators: transportation companies, independent warehouses, banks, and advertising agencies—assist in the distribution process but neither take title to goods nor negotiate purchases or sales
Push vs Pull
A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product
A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product
In Push strategy the products has to be promoted by Producer to Wholesalers to Retailers to Consumer
Experiential/Buzz/Viral
Experiential Marketing is the art of creating an experience where the result is an emotional connection to a person, brand, product or idea
Viral Marketing use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of pathological and computer viruses. Viral promotions may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, or even text messages.
Buzz Marketing is a viral marketing technique that attempts to make each encounter with a consumer appear to be a unique, spontaneous personal exchange of information
Misc
Mind vs Shelf
ATL Above the line is a type of advertising through media such as TV,
cinema, radio, print, banners and search engines to promote brands. This type of communication is conventional in nature and is considered impersonal to customers
BTL Below the Line uses less conventional methods than the usual
specific channels of advertising to promote products, services, etc. Price promotion, Coupons, Gift with purchases, also gifts
certificates, Competitions and prizes, Money refunds, Frequent user/loyalty incentives, Point-of-sale displays, Events
Horizontal vs Vertical Marketing