marketing management
TRANSCRIPT
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Needs, Wants, and Demand
A need can be defined as a felt state of deprivation of
some basic satisfaction.
The specific satisfier that an individual looks for defines
the want.
(wants are the forms of human needs that are shaped by
culture, society, individual characteristics etc)
When the want is backed by purchasing power, it is
called the demand
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MARKET “Market stood for a place where buyers and sellers
gathered to exchange goods”
“ A Market refers to a collection of buyers and sellers
who transact over a particular product or product class”
“A Market consists of all the potential customers sharing
a particular need or want who might be willing and able
to engage in exchange to satisfy that need or want ”
“The set of all actual and potential buyers of a product
or service”
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MARKETING “Marketing is a social and Managerial process by which
Individuals and Groups obtain what they need and want
through creating, offering and exchanging products and
services of value with others”
“Meeting needs profitably”
“Marketing is an organizational function and a set of
processes for creating, communicating and delivering
value to customers and for managing customer
relationships in ways that benefit the organization and its
stakeholders”
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MARKETING “Marketing is managing profitable customer
relationships”
“Marketing is the process by which companies create
value for customers and build strong customer
relationships in order to capture value from customers in
return”
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Marketing Management “as the art and science of choosing target markets and
getting , keeping and growing customers through
creating ,delivering and communicating superior
customer value”
“ Marketing Management is customer management and
demand management”
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Product
A product is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a
need or want including physical goods, services, experiences,
events, persons, places, properties, organizations, information
and ideas”
Brand
A name, term, sign, symbol or design or a combination of them
intended to identify the goods and services of one seller or group
of sellers and to differentiate them from those of competitors
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Service Berry and Parasuraman “ A service is an intangible product
involving a deed, a performance, or an effort that cannot be physically possessed”
Christian Gronroos “A service is an activity or series of activities of more or less intangible nature that normally, not necessarily, takes place in interactions between the customer and service employees and/or physical resources or goods and/or system of the service provider, which are provided as solutions to customer problems.”
Prof. Brian Engelland "Any act or performance offered that is essentially intangible and does not result in ownership of any thing" -
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Distinctive characteristics of services
Intangibility
Inseparability
Variability
Perishability
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MARKET
Marketplaces
Marketspaces
MetaMarkets (Mohan Sawhney)
“ A cluster of complementary products and services
that are closely related in the minds of consumers
but are spread across a diverse set of Industries”
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Product Levels (The Customer Value Hierarchy )
Core Benefit
Basic/Generic Product
Expected Product
Augmented Product
Potential Product
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Customer Delivered Value is the difference between the total customer value and the total customer cost
Total customer value is the bundle of the benefits
customers expect from a given product or service.
“Value is the customer‟s estimate of the products overall capacity to satisfy his or her needs”
Total customer cost is the bundle of the costs customer expect to incur in evaluating, obtaining, and using the product or service.
Customer Value Triad- It is a combination of quality, service and price (qsp)
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Demand No Demand
Latent Demand (A Strong Need that cannot be satisfied by an existing Product)
Falling Demand
Irregular Demand (Synchromarketing)
Full Demand
Overfull Demand
Unwholesome Demand (Consumers may be attracted to products that have undesirable social consequences . The marketing task is to make the public aware about the dangers and harmful effects caused through misuse or over use of such products (cigarettes & alcohol etc ) by using appropriate degree of fear appeals, price hike, or reduced availability )
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Need Based Approach Physiological Needs
Reliance Communications - Food ,air, water and network
Sprite – Pyaas bhujata hai
Dominos – Hungry kya
Cadbury's Perk – Thodi si pet pooja
Safety Needs
Aviva – Kal par control
Aquaguard – Absolutely safe drinking water
Sugar Free – Freedom from calories
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Need Based Approach Social Needs
Dairy Milk – A gift for someone you love
Archies Card – The most special way to say you care
Esteem Needs
Raymonds – The complete man
Nike – Just do it
Apple iPod – Think different
Mercedes Benz – The future of the Automobile
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Viral Marketing
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Mass Marketing- Mass production, mass distribution and mass
promotion of one product for all buyers
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Customerization “Combination of operationally driven mass customization with customized
marketing in a way that empowers consumers to design the product and service offering of their choice”
“ Mass Customization is the ability of a company to meet each customers requirements- to prepare on a mass basis individually designed products , services, programs and communications”
Levis
Nerolac
Berger Paints
GM – Saturn Project
Asian Paints
Nike and Reebok
Arvind Mills „ Ruff n Tuff Jeans ‟
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Marketing Concepts The Production Concept
The Product Concept
The Selling Concept
The Marketing Concept
The Holistic Marketing Concept
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Holistic Marketing Concept
Holistic Marketing
Performance
Marketing
Internal Marketing
Integrated Marketing
Relationship Marketing
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Financial Accountability
Marketers are asked to justify their investments to senior management in financial and profitability terms, as well as in terms of building the brand and growing the customer base. As a consequence, they are employing a broader variety of financial measures to assess the direct and indirect value their marketing efforts create. They are also recognizing that much of their firm‟s market value comes from intangible assets, particularly their brands, customer base, employees, distributor and supplier relations etc
Performance Marketing
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Social Responsibility Marketing
The Societal Marketing Concept-
“ Organization‟s task is to determine the needs, wants
and interests of target markets and to deliver the desired
satisfactions more effectively and efficiently than
competitors in a way that preserves or enhances the
consumer‟s and the society‟s well being”
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i-shakti Project – HUL
Fair & Lovely foundation of HUL
e-Choupal- ITC
Bharti Enterprises (Bharti foundation- Satya bharti schools)
for providing free education to underprivileged
„Jaago grahak Jaago‟
Aurobindo Chaudhuri Memorial (GIDF) Great Indian
Dream Foundation
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Internal Marketing
Hilti India “Our Culture Journey”
Cash Tech Solutions “star of the month Awards”
Google – Nooglers
Infosys - Voice of Youth
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Robert Lauterborn
“Winning companies will be those that can meet customer needs economically and conveniently and with effective communication”
• Customer SolutionProduct
• Customer costPrice
• ConveniencePlace
• CommunicationPromotion
Four Ps Four Cs
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Product Price
Place Promotion
Marketing Mix
Integrated Marketing (Marketing Mix- McCarthy)
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Marketing Mix
Product Price Place Promotion
Product variety List price Channels AdvertisingQuality Discounts Coverage Sales promotion Design Allowances Locations Public relationsFeatures Payment period Inventory& transport Direct marketingBrand name credit terms Personal selling PackagingSizes & servicesWarranties & returns
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Relationship Marketing
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Packaging and Labeling Package- as all the activities of designing and producing the
container for a product
Primary package
Secondary package
Shipping package
Labeling- It may be a single tag attached to the product or an elaborately designed graphic that is part of the package. It might contain a brand name or information. So it is the written, printed and graphic material on the package.
Statutory component
Optional component
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Xerox We make copy machines We automate offices
Revlon “In the factory we In the drugstore we sell hope
make cosmetics”
Carrier We make air conditioners We provide climate in the home
Columbia Pictures We make movies We market entertainment
Encyclopedia Britannica
We sell encyclopedias We distribute information
“Marketing Myopia- The mistake of paying more attention to the
specific products a company offers than to the benefits and
experiences produced by these products”
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7Ps
Product
Price
Place
Promotion People
Process
Physical Environment
/Evidence
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Prof Chris Birch from Staffordshire University – Marketing
Mix (10 Ps)
10 PsProduct
Price
Place
Promotion People Process
Physicalassets
Perception
Projection/Prediction
Promise
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Contrast of Selling and Marketing Concept
Factory Products Selling and
promoting
Profits through
Sales volume
Market Customer
needs
Integrated/
Coordinated
Marketing
Profits through
Customer
satisfaction and
delight
START FOCUS MEANS ENDS
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Difference between Selling and Marketing by Theodore
levitt of Harvard University
Selling focuses on the
needs of the seller
Selling is preoccupied
with the seller‟s need to
convert his product into
cash
Marketing focuses on the
needs of the buyer
Marketing is with the
idea of satisfying the
needs and requirements
of customers through
products and services
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Selling Marketing
Starts with the seller and
concerned only with the
seller‟s needs
Core of business activity is
the seller
Converts existing product
into money
Business is a goods producing
process
Marketing mix planned as per
the sellers needs
Starts with the customer
needs and wants
Customer is the core of all
activity
Converts customer needs into
products
Business is a customer
satisfying process
Marketing mix planned as
per the customer needs
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Selling Marketing
Different departments of
the business act
independently
Production is the central
function of the business
Customer is the last link in
business
All the departments work in
an integrated way to satisfy
the customers
Marketing is the central
function of the business
Customer is the very
purpose of the business
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Consumer Products and Industrial Products
Consumer Products- These are products and services bought by final consumers for personal consumption
Convenience Products- are consumer products and services that customers usually buy frequently, as soon as they feel the need for them and with a minimum of comparison and buying effort
staples, impulse goods, emergency goods
Shopping Products- are less frequently purchased consumer products and services that consumers compare carefully on suitability, quality, price and style. Here consumers spend much time and effort in gathering information and making comparisons
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Specialty Products- are consumer products and services with
unique features and brand identification for which a significant
group of buyers are willing to make a special purchase effort.
They are more expensive than convenience products and are
not purchased so frequently
Unsought Products- are consumer products that the consumer
either does not know or knows but does not normally think of
buying
Industrial Products- A product bought by individuals and
organizations for further processing or for use in conducting a
business like Materials and parts, Capital items, supplies etc
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Product Mix (Product assortment/Product portfolio)
Home & personal care Foods
Personal wash Laundry Hair care Deodorants Color Tea Coffee Foods Ice-Cream
cosmetics
lux Surf excel Sunsilk Axe Lakme Brook Bru Kissan Kwality-
bond Annapurna walls
lifebuoy Rin Clinic Rexona Lipton
liril Wheel
Dove
Pears
Rexona
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Product Mix (Product assortment)-is the set of all products and items a particular seller offers for sale. It consists of various product lines.
Product line- A group of products within the product class that are closely related because they perform a similar function ,are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges. It may be composed of different brands or individual brand that has been line extended
Product class (product category)- A group of products having a certain functional coherence. Eg Financial Instruments
Product-mix Width- It refers to how many different product lines the company carries.
Product-mix length- It refers total number of items in its product lines
Product-mix depth- It refers how many variants are offered of each product in the line.
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Line stretching-It occurs when a company lengthens its
product line beyond its current range
Down market stretch- (Kodak funtime film, parker, Mercedes c-
class)
Up market stretch-(Toyota‟s Lexus, Hondas Accura, bajaj)
Two way stretch
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Vim Liquid Lemon 250 m Vim Liquid Lemon 500
ml
Vim Liquid Orange 250 m Vim Liquid Lime 500 ml
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Megamarketing
It is the strategic coordination of economic, psychological,
political and public relations skills etc to gain cooperation of a
number of parties in order to enter or operate in a given market
Marketing Intelligence system
It is a set of procedures and sources managers use to obtain
everyday information about developments in the marketing
environment. Marketing managers collect marketing
intelligence by reading books; newspapers, talking to customers,
suppliers etc; meeting with other company managers etc
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MARKETING ENVIRONMENT
“It, consists of Actors and Forces that effect the
Company‟s ability to develop and maintain
successful transactions and relationships with its
target markets”
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MARKETING ENVIRONMENT
The Marketing environment is composed of a micro
environment which consists of the following „actors‟
close to the company that affect its ability to serve its
customers and the macro environment consists of
the following larger societal „forces‟ that affect the
micro environment
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Micro Environment (Actors) Supplier / Marketing Intermediaries
Customers
Competitors
Public
“A public is any group that has an actual or potential interest or impact on a company‟s ability to achieve its objectives”
(PETA- People for the ethical treatment of animals)
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Macro Environment (Forces)
Demographic Age
Gender
Income
Occupation
Family size
Education
Religion, Nationality
Marital status
Economic
Technological
Natural environment
Political/Legal
Sociocultural
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Consumer Protection Act Some of the rights under this act are,
Safety- The right to be protected against the marketing of
goods and services that are hazardous to life and property
Information- To protect the consumers against unfair trade
practices, and the right to be informed about the quality,
quantity, purity and price etc
Choice- The right to choose a variety of products and
services at competitive prices
Consumer education- The right to consumer education
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CONSUMER BEHAVIOUR
“Consumer behavior refers to the mental and emotional
process and the observable behavior of consumers
during searching, purchasing and post consumption of a
product or service”
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Consumer decision making process
Need recognition
Informationsearch
Evaluation of alternatives
Purchasedecision
Post purchasebehavior
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The Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption (Rejection)
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Enhanced Adoption Process Model
Pre-existing Need
Awareness
Interest
Evaluation
Trial
Adoption (Rejection)
Post adoption /Post Evaluation
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Evaluation of Alternatives
Evoked Set Inept Set Inert Set
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Buying Roles
Initiator- The initiator is the person who first suggests or
thinks of the idea of buying the particular product or service.
Influencer- Is a person whose views and advice carry some
weight in making the final decision
Decider- The decider is a person who ultimately determines
any part of, or the entire buying decision- whether to buy,
what to buy, how to buy or where to buy etc
Buyer- Is the person who makes the actual purchase
User- Is the person or persons who consume or use the
product or service
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Buying Behavior (Levels of Consumer Decision
Making) Extensive problem solving Buying Behavior
Consumers exhibit this type of behavior when they indulge in
buying expensive, infrequently purchased and unfamiliar
products. Consumers gather a lot of data regarding the various
brands available in the product category
Buyer develops a belief about the product
Attitudes are shaped around that belief
The buyer makes a well planned decision
Limited Problem Solving
At this level of problem solving, consumers already have
established the basic criteria for evaluating the product category
and the various brands in the category. However, they have not
fully established preferences concerning a select group of
brands
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Buying Behavior (Levels of Consumer Decision
Making)
Routinized Buyer Behavior
Here the customers buy low-cost, regularly
purchased/routine products, they do not make significant
efforts to gather much information about the product.
Instead they choose the brand, which they are familiar
with or have been choosing for a long time. Purchase
decisions here usually is quick
Variety Seeking Behavior
Here the consumers show a great amount of brand
differentiation when buying a low involvement product.
They are not very brand conscious and often switch brands
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Organizational Buying Behavior
Types of Organizational Buying situations and Situational Factors
New Task- It involves a situation wherein a product is purchased
for the first time
Straight Rebuy- It is a process of buying a product that has been
purchased frequently and regularly. The buyer orders from an
approved supplier and the terms and conditions remain the same
as they were for previous orders
Modified Rebuy- Here a purchasing manager buys goods that have
been purchased earlier but changes specifications, quantity,
delivery schedules etc
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System Buying and Selling
System Buying
It is a process in which an organization selects only one
supplier for all its raw material requirements. It helps
managers cut down significantly on costs, which he would
have otherwise incurred for sourcing raw material from
multiple suppliers
System Selling
It is a process in which a seller himself sells all the raw
materials needed by a purchaser (customer)
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Diffusion of Innovation
The process by which the use of an innovation whether a product or
service spreads through out a market group, over time and over various
categories of adopters is known as diffusion of innovation. It helps
marketers to understand
The rate at which consumers are likely to adopt a new product or service
It also helps the marketers to identify the potential customers for their
new products and services and also predict their potential sales
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Diffusion of Innovation Curve
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Innovators
These are those buyers who want to be the first to have the new product or service. These buyers enjoy taking risks and are regarded as highly knowledgeable
Early Adopters
These are those buyers who generally do not like to take as much risk as innovators
but instead wait and purchase the product after careful review and sometimes are also regarded as opinion leaders
Early Majority
This group differs from buyers in the first two categories. Its members do not like to take as much risk and hence tend to wait. When early majority customers enter the market the number of competitors in the market usually also has reached its peak, so these buyers have many different price and quality choices
Late Majority
It is a group of buyers who adopt a product or service when it has reached its full market potential. By the time the late majority enters the market, sales tend to level off or may be in decline
Laggards
These consumers like to avoid change and rely on traditional products until they are no longer available and even sometimes they may never adopt a certain product or service
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Factors influencing Consumer behavior
Culture FactorsCulture is the complex whole that includes knowledge, belief, art, law, morals, customs and any other capabilities and habits acquired by humans as members of society)
Sub culture- The main culture includes smaller groups of sub – cultures within its fold like religious groups, geographical areas have different language and characteristic lifestyle , nationality groups etc
Social class- (upper, middle and lower class)
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Social Factors
Reference groups (it consists of all the groups that have a direct or indirect influence on the person‟s attitudes & behavior)-
Primary group,- family, friends, relatives etc Secondary group- religious, professional etc, Aspirational group- are those a person hopes to join Dissociative group- are those whose values or behavior an individual rejects Opinion Leader
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Factors influencing Consumer behavior
Roles and status / Personal characteristics
Psychological Factors “Psychological factors are internal to an individual and generate forces within that influence her/his purchase behaviour. The major forces include motives, perception, learning, attitude, and personality ”
Motivation-This refers to driving forces within an individual produced by a state of tension caused by unfulfilled needs, wants, and desires.
Maslow‟s Theory of motivation
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Perception“ the process by which an individual selects, organises and
interprets stimuli into a meaningful and coherent picture of
the world”- Schiffman and Kanuk
A Stimulus is any unit of input to a sensory receptor. In a
marketing context, the stimuli might include brand names,
colours, sounds, packaging and advertisements etc
“ Perception is the process by which we select, organize and
interpret information inputs to create a meaningful picture of
the world”
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MARKETING RESEARCH
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MARKETING RESEARCH
“Marketing Research is the Systematic Design, Collection, Analysis and Reporting of Data and Findings Relevant to a Specific Marketing situation facing the Company”
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Marketing research firms Nielsen
IMRB
Sampling Research
ORG MARG
MART (Marketing & Research Team)
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MARKETING RESEARCH PROCESS
Define the problem and research
Objectives
Develop the Research
Plan
Analyze the Information
Present the Findings
Make the decision
Collect the Information
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Define the problem and research Objectives
What is to be researched ?
Why is it to be researched ?
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Develop the Research Plan / Collect the
Information
Data Sources
Secondary Data- data that were collected for another
purpose and already exist somewhere
Primary Data- data freshly gathered for a specific purpose
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Primary Data Research Approaches
Depth interviews
Focus group
Projective techniques
Thematic Apperception Test (TAT)
Word Association Test
Sentence completion test
Laddering
A series of increasingly more specific “why” questions
are asked to reveal consumer motivation and interests
Brand personification
Ask what kind of person they think when the brand is mentioned. “If the brand were to come alive as a person, what would it be like, what would it do etc
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Ethnographic research
It is a particular observational research approach
that uses concepts and tools from anthropology and
other social science disciplines to provide a deep
understanding of how people live and work. The
goal is to immerse the researcher into consumers
lives to uncover certain desires that may not surface
in any other form of research. Methodologically it
encompasses fieldwork and participant observation
both of which are applied in the study of human
behavior
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Ethnographic research
“ A form of observational research that involves sending
trained observers to watch and interact with consumers
in their natural habitat”
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STRATEGY
Chandler, “Strategy is the determinator of the basic
long term goals of an enterprise and adoption of
courses of action and the allocation of resources
necessary for carrying out these goals”
Prahalad, “Strategy is more than just Fit and
allocation of resources .It is stretch and leveraging of
resources”
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Strategic Planning
“It is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people”
"What do we do?""For whom do we do it?"
"How do we excel?"
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Strategic planning (3 more)
Tactical (intermediate) planning (2-3)
Operational planning (1)
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Strategic Plans Intermediate (tactical) plan Operational plans
Long range plan Intermediate plan short range plan
Time frame 3 2-3 yrs One year within
or more yrs
Top management Performed by managers at Done usually at
responsibility middle level lower levels
Concerned with Concerned with integrating of the Covers day to day
broad objectives organization‟s departments the work of various
operations
Focus on planning
and forecasting
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Hierarchy of Vision ,Mission and Objectives
Vision
Mission
Objectives
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Vision and Mission VISION
Who are we ?
What are we trying to do ?
How do we want to go about it ?
Where are we headed ?
MISSION
(A statement of Purpose and function)
Why do we exist ?
“It is the founder‟s intentions- what they want to achieve. In
the dynamic environment of today, it must be re-examined
and refreshed periodically”
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VISION ITC
“Sustain ITC's position as one of India's most valuable
corporations through world class performance, creating
growing value for the Indian economy and the
Company‟s stakeholders”
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MISSION ITC
“To enhance the wealth generating capability of the
enterprise in a globalizing environment, delivering
superior and sustainable stakeholder value”
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Revision of Mission StatementsZee
To be the leading TV and communications group providing the people of South Asia, wherever they live, with the finest entertainment ,information and communications network and to provide a strong medium through which marketing organizations can enhance their business. Through these services we intend to be worthy citizens of this global village. We will be a profitable ,dynamic, forward looking and financially strong organization which cares for the welfare of its people while providing an enjoyable and rewarding work
experience
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Revision of Mission StatementsZee
To be the leading round the clock airtime properties provider, delighting the viewers, on the one hand ,and providing value to advertisers for their time and money on the other. To establish the company as the creator of entertainment and infotainment products and services to feast the viewers and the advertisers. Through these services, we intend to become an integral part of the global market. As a corporation, we will be profitable, productive, creative, trendsetting and financially rugged with care and concern for all stakeholders.
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Business-portfolio analysis models
Boston Consulting Group (BCG) Approach
The Boston Consulting Group is a consulting company which
developed this growth-share matrix to evaluate the position
of business units on the basis of market growth rate and
relative market share
General Electric Approach
General Electric developed this model with the assistance of
McKinsey & Company. This is an improvement over BCG
Growth-share matrix. It focuses on two dimensions
Industry Attractiveness
Business strength
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BCG Matrix
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Strategy for Stars Invest to sustain growth
Spend to keep competitors at bay
build sales / market share
Invest to maintain or increase leadership position
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Strategy for Cash Cows Defend the market share and look for short term profits
Little need for Investment & less potential for further
growth
To maximize short term cash flow & profits
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Strategy for Question Marks
Invest to increase market share
Invest in Promotion & other aspects of marketing
Build selectively
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Strategy for Dogs
Divest or utmost focus on defendable niche
Not worth investing
Phase out or sell off (divest)
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General Electric Approach
Business Strength
H igh
M edium
Low
Strong Average W eak
A
B
C
D
In
du
stry
Attra
ctiv
en
es
sAnalyzing Current SBU ’s:
GE’s Strategic Business -P lanning Grid
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2/22/2014
S.W.O.T ANALYSIS
STRENGTHSWhat do we do well?
INTERNALFOCUS
EXTERNALFOCUS
WEAKNESSESWhat is wrong now?
OPPORTUNITIESWhat possibilities exist?
THREATSWhat can go wrong?
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Broad Target
NarrowTarget
Lower Cost Differentiation
1. Cost Leadership 2. Differentiation
3. Cost Based
Focus
3. Differentiation
Based Focus
Porter‟s Generic Strategies
(Competitive Scope)
(Competitive Advantage)
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STP
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Segmenting
The Art of Dividing a market into distinct groups of
Buyers who might require separate Products and/or
Marketing Mixes
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Segmenting Procedure Survey Stage
Analysis Stage
Profiling Stage
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Bases for segmentation Geographic
Mc Donald's- McAloo Tikki Burger, Mc curry Pan, Times of India, Nilgiri Tea etc
Demographic
Age
Gender
Income
Occupation
Family size, Family life cycle
Education
Religion, Nationality
Marital status
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Hero Honda Pleasure
Set wet hair gel
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Happy Holi
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Psychographic
Values & Lifestyle
Social Class, Health oriented, culture oriented, busy
professional, active outdoor enthusiast, believers, strivers etc
Personality
Ambitious, introvert, extrovert etc
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Primary Motivation: Ideals, Achievement, and Self-Expression
The concept of primary motivation explains consumer attitudes and
anticipates behavior. VALS includes three primary motivations that matter for
understanding consumer behavior: ideals, achievement, and self-expression.
Consumers who are primarily motivated by ideals are guided by knowledge
and principles. Consumers who are primarily motivated by achievement look
for products and services that demonstrate success to their peers. Consumers
who are primarily motivated by self-expression desire social or physical
activity, variety, and risk
Resources
A person's tendency to consume goods and services extends beyond age,
income, and education. Energy, self-confidence, intellectualism, novelty
seeking, innovativeness, impulsiveness, leadership etc play a critical role. These
psychological traits in conjunction with key demographics determine an
individual's resources. Various levels of resources enhance or constrain a
person's expression of his or her primary motivation
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VALS Segmentation
The four groups with higher resources
Innovators
Successful, sophisticated, active people with high self-esteem and often prefer niche oriented products and services
Thinkers
Mature, satisfied and reflective people who are motivated by ideals and who value knowledge and responsibility. They seek durability, functionality and value in products
Achievers
Successful, goal-oriented people who focus on career and family. They favor premium products that demonstrate success to their peers
Experiencers
Young, enthusiastic, impulsive people who seek variety and excitement. They spend a comparatively high proportion of income on fashion,
entertainment and socialising
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Four groups with lower resources
Believers
Conservative, conventional and traditional people. They prefer familiar
products and are loyal to establish brands
Strivers
Trendy and fun loving people who are resource constrained. They favor
stylish products that emulate the purchases of those with greater material
wealth
Makers
Practical, down-to-earth and self-sufficient people who like to work and
seek products with a practical or functionality purpose
Survivors
Elderly, passive people who are concerned about change. They are
normally loyal to their favorite brands
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Behavioral Purchase, use occasions
Benefits
User Status Non-user, ex-user, potential user, first time user, regular user
Usage status light, medium and heavy user
Product knowledge
Loyalty status Hard Core Loyal- consumers who are loyal to only one brand all the
time
Soft Core Loyal/Split loyal- consumers who are loyal to two or three brands
Shifting Loyal- consumers who shift loyalty from one brand to another
Switchers- consumers who show no loyalty to any brand
Attitude towards the product and Extent of involvement
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Market Targeting “The Act of Developing measures of Segment attractiveness
and selecting one or more market segments to enter”
“Process of evaluating each market segment‟s attractiveness
and selecting one or more segments to enter”
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Evaluating/Analyzing the Market Segments
Segment Size and Growth
Segment Structural Attractiveness
(Porter‟s Five Forces Segment structural Attractiveness)
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Five patterns of Target Market Selection
Single Segment concentration
Selective Specialization
Market Specialization
Here the firm concentrates on serving many needs of a
particular customer group
Product Specialization
The firm makes a certain product that it sells to several
different market segments
Full Coverage
Undifferentiated marketing
Differentiated marketing
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Determining how many segments to enter
Undifferentiated marketing
This involves ignoring any differences among consumers and suggests offering just one product or service to the entire market. This mass-marketing strategy focuses on what is common in the needs of consumers rather than what is different
Differentiated marketing
The marketer decides to enter several market segments, or niches and develop separate offers for each. For instance Maruti Udyog is producing cars for various segments. Coca-Cola and Pepsi are offering different versions of their soft drinks
Concentrated marketing
Here the company targets a segment and goes for a large market share. For example Recycled paper producers like Wizard India focuses on the market for Greeting cards or wedding cards etc
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Niche Marketing A Niche is a more narrowly defined customer group seeking a
distinctive mix of benefits. Marketers usually identify niches by dividing a segment into subsegments
The customers in the niche have a distinct set of needs
They will pay a premium to a firm that best satisfies their needs
Niches are fairly small and normally attract only few Ezee (liquid detergent soap for woolen clothes)
Crack Cream (primarily targeted at women for prevention and treatment of cracked heels that develop due to inadequate protection and care)
Himalaya Herbal Health care in ayurvedic products
D‟cold NATURAL (cough syrup for kids)
Aastha (in India that targets on the basis of religion and spirituality)
STAR Sports- (STAR Cricket for cricket lovers)
Kellogg's Special K- (for women who are fitness conscious)
Women‟s Horlicks - ( New generation women balancing between family and career)
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Himalaya Herbal Health care in ayurvedic products
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A little girl is racked by a bout of coughing as
her parents get ready to summon the doctor
Just then her sympathising aunt asks, "Ghar mein D'cold Syrup nahin hai kya? Is mein haidoctor vaala tatv."
"D'cold Syrup mein hai doctor vaala tatv jispe sabhi bharosa karte hain. Yaani chain ki saans."
The girl is fully recovered and she celebrates her birthday in style as she chimes with her
aunt, "Is mein hai Doctor vaala tatv."
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Shot of a girl touching up
her make up in the campus
She is applying eye liner when suddenly a dude tries to
...hypnotize her, swinging in a
chain. whispers, "Look into my eyes."
In a little while, the girl
finds him hypnotized
instead.
She snatches the chain
from our spellbound fellow and moves ahead as , "LookLook into my eyes
Product window. Elle 18, the cooling eye liner with a steady grip brush. Ellie 18,
for eyes that hypnotize
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Market Positioning
“Positioning is the act of designing the Company‟s offer so
that it occupies a distinct and valued place in the target
customer‟s mind”
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Positioning by Corporate Identity
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Positioning by Product benefit
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Positioning by Product benefit
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A lady admires an expensive pair of sandals. The salesman takes...
... a closer look at her cracked heels as they settle
down to try it
The salesman shows a cheaper shoe but she insists on the red pair. "Woh wala aapke budget mein nahi... aygamadam", replies the man. MVO: "Afsoos, pairon ki dararon se koi bhi aapke zindagi mein jaank sakta hai."
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Pesh hai Vaseline ka aviskari ek do crack relief. Pehle liquid
saakht chamri nikale phir...
... cream dararon ko boar daale. Now, even at the jewelers they don't refuse her
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Positioning by Price Quality
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Positioning by Life Style or Use Occasion
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User-based Positioning
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Competitive Positioning
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Competitive Positioning
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Competitive Positioning
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It is a graphics technique used by marketers that attempts to visually display the perceptions of customers
or potential customers. Typically the position of a product,Product line , brand, or company is displayed relative to their competition .
Perceptual mapping
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Message Design-Appeal Rational Appeals
Emotional Appeals
Positive Emotional Appeals- Love, affection, joy, pride, humour, prestige,
status etc
Negative Emotional Appeals- Fear (slice of death) ads, shame, guilt,
embarrassment, rejection etc
Morale Appeals
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A camera captures a muddy and dry tree root and moves on... ...to an old and rusted axe lying there. VO: "Life will always find a
way... if you let it." At the tip of the axe a tiny shoot is growing.
„Issued in public interest by vivid motions pictures‟
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Max New York Life Insurance
The film opens with a woman hurriedly climbing up the stairs to her house
On her way she asks the security guard, “sahab aaye?” to which he replies “haan memsahab”
After entering the house, she quickly starts her kitchen chores and calls out for Sanju, her husband
On getting no response, she calls on his mobile and starts looking for him all over the house
Adding to her suspicion, the call is not answered as she finds his phone carelessly lying under a pillow
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Finally she manages to find her husband at the terrace, but is startled to see him lying still on a rocking chair.
Very nervously she moves him and shouts with mixed emotions of relief and fear to find him alright
Cut to a shot of an equally scared Sanju hugging his wife
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“Musibatein bata ke nahin aati, isliye Max New York Life ke life insurance plans. Life mein rahein hamesha taiyaar.”
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The film opens on a father and son in their car waiting for the signal to turn green
The boy tells his father that he will open a cycle repair show when he grows up
Surprised at his ambition the father asks him why he would do so
“Jis tarah aap sab petrol waste kar rahe hain, future mein tohpetrol bachega hi nahin.Tab toh sab cycle hi chalayegein na?” replies the son.
This leads to our man thinking who in turn puts off the engine .“Khud hi sara petrol khatam karegein ya kuch apne bachchon ke liye bhi chhodegein?
...Please. Kam se kam signal pe toh engine off keejiye.” (Save fuel yaani save money)
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Emotional Appeals Fair and Lovely- Beauty that empowers a woman to
change her destiny
Tanishq- Jewellery that wants to make you marry
HDFC- Sar uthake jiyo
Tata Tea- Har subah sirf utha mat. Jaago Re
Haywards Soda- Haywards hai to honsla buland hai
Tata Salt- Desh Ka Namak
Mountain Dew- Kyonki darr ke aage jeet hai
Raymond- The Complete Man