Marketing for Managers Rubina D’Mello

Contents Marketing an Its Applications Marketing planning and Organisation Understanding Consumers Product Management Pricing an Promotion Strategy Distribution and Public Policy

Block 1 Marketing and its Applications

Chapter 1 Introduction to Marketing

The Meaning of Marketing Marketing is the performance of business activities that directs the flow of goods and services from producer to consumer or user CONSUMER Need PRODUCER Product Marketing activities

The Marketing Mix Product Promotion C Price Place

Marketing Strategy Needed to create and retain a satisfied customers Strategies STDP Strategies Marketing Mix Strategies

STPD Strategies Segmentation Targeting Aggregating process – A cluster of people with similar needs. A Homogeneous group of customer who will respond to a marketing mix in a similar way. Targeting Once the market segment is defined, it has to decide how many and which one to target.

Differentiation Positioning Product Differentiation Service Differentiation Channel Differentiation Personnel differentiation Positioning It’s a perception about your offering in the minds of the consumer.

Product Mix Strategies What is Product Mix Set of all products offered by an organisation to its customers Consists of Width Length Depth Consistency

Product-Mix Width and Product-Line Length for PepsiCo India Case Study Product-Mix Width and Product-Line Length for PepsiCo India Product-line Length Product-Mix Width Beverages Juice Snacks Pepsi Mountain Dew Aquafina Mirinda 7-Up Dukes Soda Dukes Mangola Slice Tropicana Orange Nature Sweet Apple Grape Pineapple Tomato Mixed Fruit Lays Cheetos Lehar Numkeens Nutyumz Kurkure

Strategy of Product Mix Expansion of product mix Contraction of product mix Altering existing products Positioning the product

Manufactures or producer Place Is concerned with all the decisions involved in the getting right product to the target market’s place. Distribution Channels – any series of firms that participate in the flow of products from producer to its final consumers. Manufactures or producer Raymond's Toyota Nestle Wholesaler Wholesaler Wholesaler Retailer Retailer Retailer Consumer

Promotion Mix Strategy Push Strategy directing communications to channel members Pull Strategy directing communications to end users Factors type of product/market buyer readiness stage product life-cycle stage

Pricing Strategy PRICE QUALITY HIGH MEDIUM LOW 1) Premium Strategy 2) High-value strategy 3) Super-value strategy 4) Overcharging Strategy 5) Medium-value strategy 6) Good-value Strategy 7) Rip-Off Strategy 8) False economy strategy 9) Economy Strategy QUALITY

Chapter 2 Marketing in a Developing Economy

Marketing functions performed at different levels of development

Relevance of Marketing in a developing economy Marketing and planned economic growth How to view the marketing effort Significance of macro and micro marketing General role of marketing Stimulates potential aggregate demand and thus enlarge the size of the market It helps in the discover of entrepreneurial talent

Areas of Relevance Marketing in agriculture, basic industries, mining and plantation Intermediate industrial goods Semi-industrial products Export trade & services like tourism and banking

The Relevance of Social Marketing 4 P’s Social Marketing planning system

Chapter 3 Marketing of services

The service sector The services sector has been growing at a rate of 8% per annum in recent years More than half of our GDP is accounted for from the services sector This sector dominates with the best jobs, best talent and best incomes

“There are no such thing as service industries “There are no such thing as service industries.There are only industries whose service components are greater or less than those of other industries. Everybody is in service.” -Theodore Levitt-

What is services? It is the part of the product or the full product for which the customer is willing to see value and pay for it.

Growing Importance of Services Economic well being increases the demand of services Changing lifestyle Complexity of the product

Characteristics of Services Intangibility Perishability Inseparability Variability Client relationships Right of owner-ship

Intangibility Hard to grasp, concept is abstract Dramatization often necessary for concept Hard to separate the service provider and the service

Perishability Services cannot be stored or held in inventory. If not used when available, they “go to waste”.

Inseparability Outlet accessibility can limit the area covered by the service. Image is important: Image affects the perception of the service.

Variability Service quality tends to vary considerably. Haircut from your hair dresser vs. “Javed Habib”

Client Relationships Relationships between service organizations and customers are often close Potential for loyalty longterm

Right of owner-ship It is not taken to the service, we merely experience it. e.g. Services of a doctor, lawyer, teacher, mechanic, etc..

Difference between physical goods and services tangible intangible homogeneous heterogeneous Production and distribution are separated from consumption Production, distribution and consumption are simultaneous processes A thing An activity or process Core value processed in factory Core value produced in the buyer-seller interaction Customers do not participate in the production process Customers participate in production Can be kept in stock Cannot be kept in stock Transfer of ownership No transfer of ownership

SERVICES MARKETING MIX Product Place Prize Promotion People Physical Evidence Process

In services, the last experience remains uppermost in your mind In services, the last experience remains uppermost in your mind. Therefore, it is not enough to be good, you have to be consistently good

Service quality is directly proportional to employee satisfaction

Block 2 Marketing Planning and Organisation

Chapter 4 Planning Marketing Mix

The Elements of Marketing Mix Product activities Quality, features, style, brand name, packaging, sizes, services, warranties, returns Pricing activities Target customers, cost, competition, the law, social responsibility Promotional activities Advertising, personal selling, sales promotion, publicity and public relations Place or Distribution related activities Physical distribution Transportation, warehosuing and storage, Order processing, Inventory control, Location Channels of distribution

The Place of the Marketing Mix in Marketing planning Current Marketing Situation Identification of Problems and Opportunities Defining Objectives Designing the Marketing Strategy Developing the marketing programme

The Relationship between Marketing Mix and Marketing Strategy The concept of Optimum Marketing Mix

Marketing Mix and some specific Situation New product development and marketing mix Product life cycle and marketing mix Role of Advertising in marketing mix Role of price in marketing mix

The Product Life Cycle

Chapter 5 Market Segmentation

The Concept of Market In respect of the network of institutions like wholesalers and brokers dealing in a product To refer to the nature of demand for the product, as when we speak of the market for soap

The concept of segmentation Relationship of a segment to a market Market Segmentation versus product development Benefits and doubts about segmentation What is grouped in forming segments What, how, where, when, why, who

Bases for Segmentation Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Life cycle, Race, Occupation, or Income ... Lifestyle or Personality Psychographic Occasions, Benefits, Uses, or Attitudes Behavioral

Segmenting Business Markets…Contd. Personal Characteristics Demographics Bases for Segmenting Business Markets Operating Characteristics Situational Factors Purchasing Approaches

How is the basis for segmentation selected? Methods that companies use Logical division Perceptual mapping technique Considerations in using perceptual maps

Selection of Segments General factors Specific Segmentation factors Company trust Size & growth potential Investment needed Profitability Risk Competition Specific Segmentation factors Segment durability Mobility Visibility accessibility

Chapter 6 Marketing Organisation

Principles of Designing an Organisation Specialisation Departmentalisation Standardisation Formalisation Centralisation Evaluation Structure

Marketing Organisation The changing role of Marketing Organisation Simple sales department Sales department with some marketing function Separate marketing department Integrated marketing department Marketing oriented organisation Considerations involved in designing the marketing organisation Statement of objective and goals of the firm Nature of the product/Line of activity Areas of operation Nature of Industry Computerisation & up-gradation of information system External environment & Government intervention.

Marketing Organisation Methods of designing the Marketing Organisation Functional Organisation Product Management Organisation Market Centered Organisation Organisation of Corporate Marketing No corporate marketing support Minimal corporate marketing support moderate corporate marketing Strong corporate marketing

Chapter 7 Marketing Research & Its Applications

The Context of Marketing Decisions Definition of Marketing Research Purpose of Marketing Research Scope of Marketing Research Marketing Research Procedure Problem Definition Research design Field Work Data Analysis Report presentation and implementation Marketing Research in India Problems of conducting marketing research

Application of Marketing Research Sales & Market Analysis Determination of market potential Determination of market share Sales forecasting Design of market segmentation studies Target market Distribution channel studies Determination of market characteristics Determination of competitive information Product Research Evaluation of new product ideas Testing for new product acceptance Evaluating the need for change in product information Testing package design Testing of product positioning

Application of Marketing Research Business Economics and corporate research Studies of business trends Pricing studies Diversification studies Product mix studies Plant & warehouse location studies Advertising Research Audience Measurement Determining the most cost effective media plan Copy Testing Determining advertising effectiveness Consumer behaviour research

Block 3 Understanding Consumers

Chapter 8 Determinants of Consumer Behaviour

Importance of consumer behaviour for marketers Types of consumers Buyers v/s Users

Figure 16.2 A Simple Model of Consumer Decision Making External Influences Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture Input Consumer Decision Making Need Recognition Prepurchase Search Evaluation of Alternatives Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Process Experience Postdecision Behavior Purchase 1. Trial 2. Repeat purchase Postpurchase Evaluation Output

Individual Determinants Factors influencing consumer behaviour External Environment Individual Determinants culture Problem Recognition others Information search learning perception Purchasing decision family subculture Postpurchase behaviour motivation personality attitudes social group social class

Chapter 9 Models of Consumer Behaviour

Process of decision making What is a decision? Process of decision making Involvement Alternative differentiation Time pressure

Types of Consumer Decision Making What to buy How much to buy Where to buy When to buy How to buy

Levels of Consumer Decision Making Buying Roles Buying Behaviour Extensive problem solving Routinized buying behaviour Variety seeking behaviour

Stages in the Buyer Decision Process Evaluate the alternatives and select the best possible alternative Gather information about the product and brands Identify the problem recognition Purchase decision/ buying the product Post purchase Evaluation Post purchase use and disposal

Models of Buyer Behaviour Horward-Seth Model Inputs Perceptual & learning constructs Outputs Exogenous or external variable Engel-Kollat-Bloackwell Model Information processing Central control unit Decision process Environmental influences Model of family decision making Influencers Gatekeepers Deciders Preparers Buyers users Model of industrial buyer behaviour

Chapter 10 Indian Consumer Environment Demographic Characteristics Income and consumption characteristics Characteristics of organisational consumers Geographic characteristics Market potential Socio cultural characteristics

Block 4 Product Management

Chapter 11 Product decision and strategies

Anything that can be offered to a market to satisfy a want or need Product Anything that can be offered to a market to satisfy a want or need Physical goods Services Experiences Events Persons Places Properties Organizations Information Ideas

Product Levels Marketer has to turn core benefit into basic product Bank accounts like savings account, current account Encompasses all possible augmentation and transformations the product might undergo in future Anywhere banking, ATM sharing, CRM priority banking, portfolio management The fundamental service or product the customer is buying In a bank the customer is looking for security of his money Product levels In planning its market offering, the marketer needs to think through five levels of the product. Each level adds more value and the five constitute a customer value hierarchy   Augmented product Today’s competition takes place at the product-augmented level. “You don’t sell the steak – you sell the sizzle” Each augmentation adds cost. Will customers pay enough to cover the extra cost. Augmented benefits soon become expected benefits. So competitors will have to search for still other features and benefits As companies raise price of their augmented product, some competitors can offer a “stripped down” version at a much lower price. Alongside the growth of fine hotels, there is an emergence of lower-cost hotels (motels) which offer the clients the basis product Potential product: Here is where companies search for new ways to satisfy their customers and distinguish their offer. Successful companies add benefits to their offering that not only satisfy customers but also surprise and delight them. Delighting is a manner of exceeding expectations (hotel guest finds candy on pillow or bowl of fruit etc.) A product that exceeds customer expectations A bank can offer facilities like ATM/Debit cards, Telebanking, Internet Banking and also other financial services A set of attributes and conditions the buyers expect when they buy the product The bank customer would expect a cheque book, locker and other deposit products like FD, RD

Product Mix Product mix has a certain… Width Length Depth Consistency

Product-Mix Width and Product-Line Length for PepsiCo India Case Study Product-Mix Width and Product-Line Length for PepsiCo India Product-line Length Product-Mix Width Beverages Juice Snacks Pepsi Mountain Dew Aquafina Mirinda 7-Up Dukes Soda Dukes Mangola Slice Tropicana Orange Nature Sweet Apple Grape Pineapple Tomato Mixed Fruit Lays Cheetos Lehar Numkeens Nutyumz Kurkure

Case Study The Times Group Print Net Entertainment Retail

The Times Group contd.. Print

The Times Group contd.. Net GROUP SITES

The Times Group contd.. Entertainment

The Times Group contd.. Retail

Product Line Decisions B. Product line Length a. Objectives b. Cycle 1. Line Stretching a. Down market Stretch b. Up market Stretch c. Two way stretch 2. Line Filling Just-noticeable difference 3. Line Modernization, Featuring and Pruning

Chapter 12 Product Life cycle and New Product Development The Product Life Cycle Concept Marketing Mix at different stages

Strategy Introduction Growth Maturity Decline 1. Objective Aggressive Entry Maximize Share Boast Profits Milk Products 2. Focus Non- Users New Segments Defend Share Cut Costs 3.Customer Targets Innovators Early Adopters Majority Laggards 4.Competitor Few Growing Number Many Declining 5.Differentiated Advantage Product Performance Brand Image Price & Service Price Marketing MIX 1. Product Basic Extension & Enhancement Differentiation & Variety Rationalize Range 2. Price High Lower Stabilizing 3.Promotion Falling Low 4. Advertisement Forms. Awareness Brand Performance Loyalty Selective 5.Distribution Intensive

New Product Development Strategy Stages in new product development Ideas generation Screening of ideas Concept testing Product designing and evaluation Product testing Product launching

Chapter 13 Branding and packaging decison

Branding Definition: “A brand is a name, Term, Sign, Symbol, Brand or combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.” American Marketing Association Trademarks – legal right to the exclusive use of that name or mark Steps to make strong brand : 1. Develop Value propositions – Brand Positioning, Specific Positioning, Value Positioning, Total Value proposition

Challenges in Branding and decisions Branding to be or not to be.. Whether Produce Manufacturer Brands or Distributor / Private Brands Which Brand Name/s to use Whether to use Line extensions, Brand Extensions, Multi Brands, New Brands or Cobrands

Brand Name Features A Brand name should suggest something about the product’s benefits suggest the product or service category suggest concrete, “high imagery” qualities be easy to spell, pronounce, recognize, and remember be distinctive not carry poor meanings in other countries and languages

Packaging What is packaging Packaging Industry Functions of packaging Used materials : Metals, plastics, wood, paper, glass, laminates, polysters, etc. Functions of packaging Protection, Appeal Performance Offer convenience to the end-users Cost effective Legal dimensions of packaging Statutory requirements Net weight, when packed Date of manufacture Date of expiry Directions of storage MRP Directions for use

Block 5 Pricing and Promotion Strategies

Chapter 14 Pricing policies and practices

Price - X = Three variables that determine profit: Sales Volume Price Cost = Profit Benefit Seller Customer Price

Determinants of Price Demand Competition

Setting the Price

Pricing Strategies Price-Quality Strategies Higher Lower Premium Strategy (Mercedes,Evian) Good-Value Strategy (Amul) Higher Overcharging Strategy (Cielo) Economy Strategy (Akai,OK) Quality Evian – price 75/- for a litre of water bottle. USP: the water is sourced from the Swiss Alps. No examples for overcharging strategy as No organization can survive following overcharging strategy. Lower

Corporate Pricing Objectives Survival Low Prices to Cover Variable Costs and Some Fixed Costs to Stay in Business. Current Profit Maximization Choose the Price that Produces the Maximum Current Profit, Etc. Market Share Leadership Low as Possible Prices to Become the Market Share Leader. Product Quality Leadership High Prices to Cover Higher Performance Quality and R & D. Market Skimming Initially setting up High Prices to Skim the market

Selecting the Price Objective Survival (Mobile Operators) Maximum current profit (Aiwa) Maximum market share (Kodak KB) Maximum market skimming (Nokia Handsets / Intel Micro Chips) Product-quality leadership (Maruti)

Sum of the Fixed and Variable Costs for a Given Estimating Cost Fixed Costs (Overhead) Costs that don’t vary with sales or production levels. Executive Salaries Rent Variable Costs Costs that do vary directly with the level of production. Raw materials Total Costs Sum of the Fixed and Variable Costs for a Given Level of Production

Selecting a Pricing Method Markup Pricing Target Return Pricing Perceived Value Pricing Value Pricing Going-Rate Pricing Sealed-Bid Pricing

Pricing Methods Markup price = unit cost (1-desired return on sales) Where unit cost is variable cost + (fixed cost/unit sales) Target return pricing (target ROI) = Unit cost + desired return X invested capital Unit sales Break even volume = fixed cost Price – variable cost

Pricing Methods Value-based Pricing Pricing strategy reflects the beliefs and attitudes of the customer. Perceived price/quality relationship. Price is based on an understanding of the value of the product as perceived by the customer.

Value-Based Pricing Product Cost Price Value Customers Customer START Cost-Based Pricing Value-Based Pricing START

Pricing Methods Going-Rate Sealed-Bid Company Sets Prices Based On What Competitors Are Charging. Sealed-Bid Company Sets Prices Based On What They Think Competitors Will Charge.

Selecting the Final Price Psychological pricing Sometimes price is equated to quality Reference Price Influencing of other marketing-mix elements The final price must be take in to account the brands quality and advertising relative to competition Company pricing policies The Price must be consistent with company pricing policies Impact of price on other parties such as dealers and distributors

Geographical Pricing Adjusting prices to account for the Geographical Location of Customers Marketing Management – Philip Kotler US Price  $124.67 India Price  Rs. 310 Harry Potter – J. K. Rowling US Price  $17.99 India Price  Rs. 636

Discount & Allowance Reducing Prices to Reward Customer Responses such as Paying Early or Promoting the Product. Cash Discount Quantity Discount Functional Discount Seasonal Discount Promotional Allowance Trade-In Allowance

Promotional Pricing Reducing Prices to Increase Short-Run Sales Reducing Prices to Reward Customer Responses such as Paying Early or Promoting the Product.

Product mix Product-Mix Pricing Tactics: Product-line Pricing Two-Part Pricing Product-Mix Pricing Tactics: Optional-feature pricing By-Product Pricing Captive-product pricing Product-Bundle Pricing

Product Mix Pricing Strategies Optional-Product Pricing Pricing Optional or Accessory Products Sold With The Main Product i.e. Car Options such as a CD player Product Mix Pricing Strategies Captive-Product Pricing Pricing Products That Must Be Used Along With The Main Product e.g. Printer cartridges By-Product Pricing Pricing Low-Value By-Products To Get Rid of Them e.g. Sugarcane Product Mix Pricing Strategies Product-Bundle Pricing Bundles Of Products Sold Together at a Reduced Price e.g. Gillete razor blades & foam

Product Line Pricing Setting Price Steps Between Product Line Items

Analyzing Competitors ’Cost ,Prices and Offers The company needs to benchmark its costs against its competitors’cost to learn whether it is operating at a cost advantage or disadvantage. The company also needs to learn the price and quality of competitors’ offers

Assessing & Responding to Competitor Price Changes Has Competitor Cut Price? Hold Current Price; Continue to Monitor Competitor’s Price. No Will Lower Price Negatively Affect Our Market Share & Profits? Yes Reduce Price No Can/ Should Effective Action be Taken? Raise Perceived Quality Yes Improve Quality & Increase Price No Launch Low-Price “Fighting Brand” Yes

Chapter 15 Marketing Communication

The Communication Process

Marketing Communication Mix Advertising Sales Promotion Marketing Communication Direct Marketing Public Relations Personal Selling

The Promotion Mix Direct Marketing Personal Selling Public Relations Sales Promotion Special Offer Personal Selling Public Relations Advertising

Advertising Mass Media Newspapers TV Radio Magazines Billboards A paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media Mass Media Newspapers TV Radio Magazines Billboards Eg : Johnson & Johnson

Sales Promotion Britannia Khao World Cup Jao Types of sales promotions Consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade Types of sales promotions Coupon Point-of-Purchase Premium: free/ reduced-price Trade Show Contests & More Britannia Khao World Cup Jao

Public Relations & Publicity Promotional tool Identify, establish, and maintain beneficial relationships between a company and its stakeholders Benefits Corporate visibility Image Building Product Information Patni Computers i-flex solutions

Personal Selling Advantages Disadvantages JCI Franco Indian Pharma Promotional tool in which a salesperson communicates one-on-one with potential customers Advantages Immediate response Tailored message Ability to measure effectiveness Disadvantages Relies on ability of sales rep. Expensive per contact JCI Franco Indian Pharma

Direct Marketing & Others Direct Communications with Carefully Targeted Individual Consumers to Obtain an Immediate Response Face-to-Face Selling Online Marketing Direct-Mail Marketing Kiosk Marketing Catalog Marketing Direct-Response TV Marketing Telemarketing Tracmail Rohini International

Push & Pull Strategy Push Policy Pull Policy Promoting a product only to the next institution down the marketing channel Pull Policy Promoting a product directly to consumers to develop stronger consumer demand that pulls products through the marketing channel

Determinants of promotion mix Type of product Target Audience Nature of market Determinants Company Policy Stage in the PLC Budget

Establish the Communication Budget After Determining Its Objectives, the Marketer Must Set the Communications Budget for Each Product and Market. Affordable Based on What the Company Can Afford Objective-and-Task Based on Determining Objectives & Tasks, Then Estimating Costs Percentage of Sales Based on a Certain Percentage of Current or Forecasted Sales Competitive-Parity Based on the Competitor’s Promotion Budget

Factors in designing promotion mix strategies

Chapter 16 Advertising and Publicity How advertising works? Types of advertising Role of advertising Advertising expenditure Advertising management Setting advertising objective Developing advtg. Copy and message Selecting and scheduling media Measuring advertising effectiveness Coordinating with ad agency Publicity Use of publicity Measuring effectiveness of publicity

Chapter 17 Personal Selling and Sales Promotion

Role of personal Selling Types of selling jobs Merchandise deliveries Inside order-taker Outside order-taker Missionary salesperson Sales engineer Tangible product seller Intangible product seller The selling process Preparation Prospecting Preapproach Approach Sales presentation Handling objectives Closing the sale Post-sale follow-up

What is sales promotion? Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and or greater purchase of particular products/services by consumers or trade -Kotler “Below the line”

What is sales promotion? Non personal promotional effort that are designed to have immediate impact on sales Employed for a pre-determined limited period to increase consumer demand or stimulate market demand

What is sales promotion? Sales promotion offers an incentive to buy Encompasses everything that is outside of advertising, PR and DM Uses advertising, PR and DM to deliver the sales promotion Can be planned to increase sales over a long period and not necessarily about immediate results (privilege / mileage points)

Why has SP grown so much? Results ! - immediate / quick boost to sales Results over finite period of time - v/s advertising or PR Results are measurable Easy and inexpensive to implement Costs & efficiency of mass media / advertising has risen considerably

…. Product managers face pressure to increase sales Companies face more competition Consumers have become more deal oriented Sales Promotions work!

How does SP work? Consumer decision making process (except for low cost, low involvement impulse pur.) - Awareness - Information gathering - Pre purchase evaluation - decision - PURCHASE - Post purchase evaluation

- Information gathering - Pre purchase evaluation - Decision - Awareness - Information gathering - Pre purchase evaluation - Decision - PURCHASE - Post purchase evaluation Advt / PR Per Sell SP

SP works because ... It alters the price / value relationship that the product offers the buyer Lowers price - use of coupons, discounts Add value - value packs, extra free Everybody loves freebies Consumers have a reason to purchase the product NOW Justifies post purchase evaluation

Advantages Sales promotions help shape buying patterns - Annual sales Attract new audiences - trials for new products Increase sales - freebies, buy 1 get 1 free Increases profits Helps move stock / liquidate inventory Increases awareness - reach new buyers

Advantages Encourages the consumer to buy more than usual on a single shopping visit Reminder of product, especially when a new product / competitor is about to launch Improving TOM recall of the brand if promo is advertised in mass media Demoralise newly launched brands

Disadvantages Can seem like last minute panic measures and that can signal failure Can give an impression of hard sell Greed for sales - promos are often not related to the strategic elements of the brands mktg. mix Often viewed as simple reactionary techniques to increase sales and profits Dilutes brand value - discount brands

Sales promotion techniques Price deals Discounts Price pack deals Samples Rebates Sweepstakes/contests Frequency rewards Demos POP Trade allowances Dealer loader Trade contests POP Displays Training programs Push money / Spiffs Exhibitions

‘Samsung pinning toh winning’ All India promo Aggressive use of mass media Consumer gets an assured gift on purchase of any Samsung product 100 cr worth of prizes on offer Sms 16 digit pin and the gift u get wl b sms’d 2 u. Cash in on Diwali purchases

‘Phod ke dekho’ offer Consumer promotion scheme Packaged as a coconut which cons picks on purchase of a Samsung product Breaking the coconut reveals a chance to win a gift Strong consumer acceptance helped co to achieve a growth of 35% in sales over last year - same period

Test drive and win Tata Motors celebrated 50 years Offer to test drive any Tata car - fill a form - and lucky winners could win Prize Indica V2 Petrol Buzz / Hype / Awareness Mass media - TV / Press / DM Helped build / gather data base Buzz around Petrol

Some historic cases

Developing a Sales Promotion and Merchandising Plan Set sales promotion and merchandising objectives. What is your target audience? Establish a tentative sales promotion and merchandising budget. Select sales promotion and merchandising techniques.

Developing a Sales Promotion and Merchandising Plan Select media for distributing promotions. Decide on timing of sales promotions and merchandising. Pretest sales promotions and merchandising. Prepare final sales promotion and merchandising plan and budget. Measure and evaluate sales promotion and merchandising success.

10 commandments of sales promos Specific objectives Know when to break Coordinate with mktg Know Basic techniques Support brand image Creativity Simplicity Reinforce advertising Attn grabbing visuals Know your target Be clear

Block 6 Distribution and Public Policy

Chapter 18 Sales Forecasting What is a sales forecast? How to prepare a sales forecast? Product sales determinants Consumer non-durable goods Consumer durable goods Industrial goods Approach to sales forecasting Breakdown approach Market build-up approach

Methods of forecasting Executive Judgement Surveys Time series analysis Corelation and regression methods Market tests Combining forecast and using judgement Status of forecasting method usage The evaluation of forecasts Computerised sales forecasting Relating the sales forecast to the sales budget an profit planning

Chapter 19 Distribution Strategy Importance of channel of distribution Alternative channels of distribution Direct selling Mercantile Agents Brokers Commission agent Merchant Middlemen Wholesalers Retailers Functions performed by retailers Services rendered by the retailers Effective coordination between wholesaler and retailers Types of retailers Department stores Co-operative stores Multiple shops or chain stores

Role of middlemen in Indian Economy Selecting an appropriate channel The type of product Nature and extent of the marker Existing channels for comparable products Buying habits of consumers Cost involved in distribution Physical distribution tasks Location of manufacturing facilities Location of warehouses Mode and method of transportation Inventory decisions Using external distribution agency Location of fixed facilities Specific issues relating to maintenance of stocks

Chapter 20 Managing Sales personnel Selling and sales management Recruitment and selection of salesmen Training of sales personnel Motivating the sales personnel Controlling the sales personnel

Chapter 21 Marketing and Public Policy Regulatory role of the government Role of government in marketing in developing economy Government control and marketing decision making process Impact of government control on product decision Impact of government control on pricing decision Impact of government control on promotion decision Impact of government control on channel and distribution decision

Chapter 22 Cyber Marketing What is cyber marketing Cyber marketing and conventional marketing Interconnectivity Interactivity Involvement Information Individualisation integrity Cyber marketing model The nature of cyber marketing Customer profiling, segmentation and targeting Product planning Branding Pricing decision Advertising and sales promotion Distribution Marketing research

Limitations of cyber marketing Limits of digitisation Shopping experience Security issues Internet access density Customers used to freebies Dot.com bust Attracting traffic to the internet site

What is internet ?? Global network of interconnected networks. Includes millions of corporate, government, organizational and private networks. Types of network forming internet Intranet Extranet Web

What is E- Marketing Process of growing & promoting an organization using online media Ties creative and technical aspects of internet. Creating, communicating and delivering value to customers. Managing customer relationship. Your dialup access is what turns your computer into a node on the Internet. The only thing you really need from your ISP (Internet Service Provider) is the connectivity - somewhere to disl up and make the connection. You may get other services from your ISP as well, but once you can connect to the Internet, they may or may not be the best solution for the other things. One of the first things to consider is whether you need to access the Internet when you are on the road. A national service provider will have local dial-up numbers in most major cities in the US, and many foreign countries. If you use one of them, you won’t have to make a long-distance telephone call to check your email from on the road.

Objectives of Internet Marketing Create Awareness. Generate Interest. Disseminate Information. Create an Image. Create a Strong Brand.

Characteristics of Internet marketing Relatively Inexpensive. Wide reach. Allows research, purchase of products and services on convenience. Quick Response. As I mentioned before, this may be your ISP, but it doesn’t have to be. There are a number of hosting services available and they tend to offer a variety of interfaces (some totally browser-driven, some not), and they probably offer a better deal in terms of monthly fee and disk space, especially for a graphics-heavy web site like a band would typically need. I have clients who use hosting services like Web2010 (www.web2010.com) and FrontHost (www.fronthost.com). You will find many others listed in the Internet trade magazines at your local newstand. Your hosting service provides two functions (at least) - they hold the pages that make up your web site and serve them to the rest of the world, and they forward your e-mail from your domain (on their machine) to your local ISP or any other mail server you want. Most people forward mail from their hosting service to their ISP so they can read it along with their other mail. There are also online free email services like MailStart, YahooMail and HotMail which can be used if you want to keep your band mail separate from your personal mail.

Differentiators from offline Marketing One-to-one vs. one-to-many approach Demographics targeting vs. behavioral targeting. Measurability . Response and immediate results.

Limitations of E- Marketing Dependant on technology. Rigid mindset. Virtual aspect. Security Concern. Maintenance Cost. Global competition.

SWOT Analysis

Strength Your specialist marketing expertise. A new, innovative product or service. Location of your business. Quality processes and procedures. Any other aspect of your business that adds value to your product or service.

Weakness Lack of marketing expertise. Undifferentiated products or services. Location of your business. Poor quality goods or services. Damaged reputation.

Opportunity A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer improved profits. A new international market. A market vacated by an ineffective competitor

Threat A new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Competitors have superior access to channels of distribution. Taxation is introduced on your product or service.

Hidden Benefits Tax Breaks. Low Start up Costs. Low Operating Costs. High Profit Margin. Market for little or no money. You do not need your own Product. Time Freedom. Open 24 Hours in every country.

4Ps of Internet Marketing

Product Make sure that your product is something that is useful to your intended customers. Make sure that the product does what it says. Ensure Quality. Packaging. Brand Consistency. Good After Sales Service.

Price Competitive Pricing. Customers willingness to pay. Experimentation with price.

Place Placement on Major Search Engines. Placement of vertical search engines/ guides and local search. Placement through affiliates.

Promotion Promotion through display advertising. Promotion though search marketing. Promotion through socal media. Promotion through Public Relations.

Strategies of E -Marketing

7 Dimensions to Consider Personalization. Privacy. Customer Service. Community. Site. Security. Sales Promotion.

Classification of E-Marketing

Methods of Internet Marketing Search engine marketing. Display Marketing E-mail Marketing, Affiliate Marketing Interactive Marketing Blog Marketing. Viral Marketing Many local ISPs will let you store a small amount of data on their system. Typically, you won’t have a personal domain name, however. If that’s important to you (and it probably should be), note that it’s a lot easier to remember something like http://www.desotoband.com (which I haven’t registered yet) rather than something like http://members.home.com/warnock/desoto (which is what I’m using now). For part-time, local bands, it’s not so much of an issue, but it your aim or reputation are higher than that, pay attention to a good selection.

Segmentation and Targeting

Segmentation Geographic Demographic (Age, Income, Gender, Education, Ethnicity) Psycographic (Activities, Interests, Opinions, Personality, Values.) Behaviour (Benefits sort, Usage level, Brand Loyalty, User Status.)

Behavioral Segmentation Simplifiers Surfers Connectors Bargainers Routiners

Targetting Four different approaches 1) Mass Marketing. 2) Multi segment Marketing. 3) Niche Marketing. 4) Micro Marketing.

Differentiation and Positioning Strategies

Differentiation Product. Service. Personnel. Channel. Image.

Positioning Technology. Benefit. User Category. Competitor. Integrator.