Tuesday, December 14, 2010

COMPANIES/BRANDS AND THEIR TAGLINES

MRF - Tyres with Muscle




CEAT - Born Tough



EBAY - The World's Online Market Place



AMAZON.COM - Earth's Biggest BookStore



TIMESJOBS.COM - If you have a reason, we have the job -



BLOGGER.COM - Push Button Publishing



Microsoft - Where Do You Want to Go Today ; Your Potential Our Passion



Windows XP - Do More with Less



HP-Invent - Everything is Possible



Accenture - High Performance. Delivered



IBM - ON DEMAND



LENOVO - We are building a new technology company.



Apple Macintosh - Think Different.



TCS - Beyond the Obvious



Infosys - Powered by Intellect, Driven by Values;

Improve your odds with Infosys Predictability



WIPRO - Applying Thought



Adobe - Simplicity at work. Better by adobe.



Macromedia - What the web can be.



FORD – Built for the Road Ahead



GM – Only GM.



BMW – The Ultimate Driving Machine



TOYOTA - Touch The Perfection



HYUNDAI - Drive Your Way



HONDA - The Power of Dreams



SKODA – Obsessed with Quality since 1897.



VOLKSWAGEN - Drivers wanted



FIAT - Driven by Passion. FIAT



TATA MOTORS – Even More Car per Car



IBM - I think, therefore IBM.



Dell - Easy as DELL.



Intel - Intel inside.



LEE - The jeans that built America



Master card - There are some things money can't buy. For everything else there's MASTERCARD.



Kotak - Think Investments. Think Kotak.



Sun Microsystems - The Network is the Computer



Ernst and Young - Quality in Everything we Do



Barclays - Fluent in Finance; Its our business to know your business



Standard Chartered Bank - Your Right Partner



CNBC - Profit from it



AT&T - The World's Networking Company



Monster.com - Never Settle



Jet Airways - The Joy of Flying



Lufthansa - There's no better to fly



British airways - The Way to Fly.



Air Canada - A breath of Fresh Air



Sahara - Emotionally yours.



Malaysian Airlines - Going Beyond Expectations



Kingfisher Airlines - Fly the good times



Exxon Mobil - Taking on the World’s Toughest Energy Challenges



Chevron Corporation - Human Energy



Reliance industries Limited - Growth is Life



British Petroleum - Beyond Petroleum



ONGC - Making Tomorrow Brighter



IOCL - Bringing Energy to Life



BPCL - Pure for Sure



IBP - Pure bhi. Poora bhi



GAIL - Gas and Beyond



Essar corp - A positive a++itude



Speed - High Performance Petrol



Servo - 100 % Performance. Everytime.



NDTV Profit - News you can Use.



Toyota Innova -All you Desire.



Star Sports - We know your game



DR. REDDY'S LABORATORIES- Life. Research. Hope



The difference lies in our DNA - BIOCON



Caring for life - CIPLA



The Edge is Efficiency - (Bombay Stock Exchange )



The world puts its stock in us - NYSE (New York Stock Exchange)



Stock market for the digital world (NASDAQ)



Tomorrow Market's Today. (Singapore Stock Exchange, SGX)



Have You Met Life Today - Metropolitan Life Insurance Company or Metlife.



The Power on your side - Allianz Group



Growing and Protecting your wealth - Prudential Insurance Company



We know Money - AIG or American International Group Insurance Company



Your Partner for life - Max NewYork Life Insurance



Positively Different. - Standard Insurance Company Limited.



India's International Bank -- Bank of Baroda



Good People to Bank with -- Union Bank of India



Higher Standards -- Bank of America



You and Us -- UBS



The Citi Never Sleeps -- CITIGROUP or CITIBANK



Where Vision Gets Built -- Lehman Brothers



The World's Local Bank -- HSBC



A Passion to Perform -- Deutsche Bank



Making More Possible -- ABN AMRO Bank



The Magazine of the Corporate World - BUSINESS INDIA



For Managing Tomorrow - BUSINESS TODAY



Intelligent Computing - CHIP



Your Technology Navigator - DIGIT



Play the Game - BUSINESS WORLD



Journalism of Courage - The Indian EXPRESS



The Power of Knowledge - THE ECONOMIC TIMES



The Name India trusts for News - HINDUSTAN TIMES



Read a Bestseller everyday - THE DAILY TELEGRAPH



Like. No. Other. - SONY



Everyone's Invited or Its hard to Imagine - SAMSUNG



Life's Good - LG



The Indian Multinational - VIDEOCON



Born in Japan Entertaining The World - SANSUI



Inspired Living - HAIER



Sense and Simplicity - PHILLIPS



The Perfect Experience - JVC



Choose Freedom - TOSHIBA



Always low prices. Always. - WALMART



Like no other store in the world - BLOOMINGDALES



You can do it. We can Help. - HOME DEPOT



Every Little Helps - TESCO



The spirit of Commerce - METRO



Costs less to get more - KROGER



Is se sasta aur Achcha kahee nahee milenga - BIG BAZAAR



The stuff of life. - KMART



Shop. Eat. Celebrate - CENTRAL



Shaping the future of steel - MITTAL STEEL



Steel solutions for a better world - ARCELOR



We make things which make India proud - LARSEN and TOUBRO



Forever new Frontiers - BOEING



The Miracles of Science - DUPONT



Everyday Solutions - COMPTRON and GREAVES



Pride of Steel - VIZAG STEEL



Powering a Greener Tomorrow. - SUZLON ENERGY



Where will you be - THE DAY AFTER TOMORROW



An Adventure 65 Million Years In The Making - JURASSIC PARK



Collide With Destiny. - TITANIC



Come and Fall in LOVE - Dilwale Dulhaniya Le Jaayenge



At the edge of the world, his journey begins - CAST AWAY



The greatest Story ever told. - SHOLAY



When Good is not good enough. - CHEVROLET AVEO



The New Sign of Success. - McDowells Signature



Dare to Dream - BANK OF RAJASTHAN



Welcome to a Cashless World.- SBI DEBIT CARD



Exceed Your Vision - EPSON



Be Fearless. - SYMANTEC



Much more to do, with YOU in focus.- ANDHRA BANK

LOGOS







                                                                   VOLKSWAGAN

                                                           




















SKODA




























































































                                                         





















                                                                        AT & T









FERRARI


Monday, November 22, 2010

PRM Major/Minor Important Questions

PRM Major/Minor Important Questions



1) PROMOTION MIX AND ITS ROLE IN MARKETING COMMUNICATION
OR
INTEGRATED MARKETING COMMUNICATION STRATEGY

2) CREATIVE STRATEGY AND STEPS INVOLVED IN IT
OR
MEDIA STRATEGY

3) PERSONAL SELLING PROCESS
OR
SALES MANAGEMENT PROCESS
OR
SALES QUOTAS OR SALES BUDGET OR SALES TERRITORIES

4) CRM DEFINITION, PROCESS, CUSTOMER LIFE CYCLE
OR
KEY CUSTOMERS,NEGOTIATION WITH KEY CUSTOMERS, ITS ROLE IN CRM STRATEGY

5) CUSTOMER CENTRIC BUSINESS, CONCEPT, OBJECTIVE
OR
PARTNER RELATIONSHIP MANAGEMENT CONCEPT, AND TECHNOLOGY IN PRM

SHORT ANSWERS:


ADVERTISING
PUBLICITY
SALES BUDGET
SALES QUOTAS
PROMOTION MIX
MASS COMMUNICATION CHANNELS
CUSTOMER DRIVEN BUSINESS
APPEAL
KEY CUSTOMERS
CUSTOMER STRATEGY GRID
CUSTOMER RELATION SHIP MANAGEMENT
PARTNER RELATIONSHIP MANAGEMENT

Wednesday, November 10, 2010

UNIT II MARKET SEGMENTATION

MARKET SEGMENTATION


Definition: Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product needs, taste, and preferences. The purpose is to design a marketing mix strategy that more precisely matches the needs of individuals in a selected market segment(s).


Benefits of Market Segmentation:



1) Helps organization to identify new marketing opportunities, as it better understands customer needs in each segment

2) Helps to build competency and establishes effective marketing systems

3) Optimizes return on investment in each segment

4) The organization fine tunes product and service offerings to the marketing appeals used for each segment.

5) Helps to gain competitive advantage


SEGMENTING CONSUMER MARKETS

Geographic Segmentation: Market can be divided into different geographical units such as nations, countries, regions, states, and cities. Companies may decide to operate in one or more geographical regions, or states. Today, most of the companies are customizing the products, advertising and promotion according to needs and wants of peoples.

Demographic Segmentation: The Market is divided into groups based on demographic variables such as age, gender, income, occupation, education, religion, race and nationality. It is the most popular bases for segmenting consumer markets, because consumer needs and wants vary with demographic factors.

Psychographic Segmentation: Market can be divided into different groups based on social class, life style, or personality characteristics.

Social class:- Lower class, middle class, and upper class

Life style:– achievers, survivors and strivers etc

Personality:– ambitious, adventurous

Behavioral Segmentation: This divides the market in to buyer groups based their knowledge, uses and attitudes towards products. Marketer believes that behavioral segmentation is the best bases for dividing the market into groups of buyers.

Usage rate: light, medium, heavy user

User Status: potential user, first time user, regular user

Attitude: positive, negative

Benefits: Quality, service, economy, convenience, speed

Occasion: Regular, occasional


SEGMENTING BUSINESS MARKETS

Business markets be segmented based on the variables used in consumer markets. Business markets can be segmented geographically, demographically or by benefits, user status, usage rate and loyalty status.

Demographic: Type of industry, Company size; Location

Based on operating variables: Technology, user/non user status

Purchasing approaches: centralized or decentralized

Purchase policies, and purchasing power structure

Situational factors: urgency, specific application, size of order

Personal characteristics: attitude towards risk, loyalty, buyer seller similarity

MARKET TARGETING

 
After a firm has identified its market segment opportunities, it must decide which ones to
target. Market targeting is the selection of a set of buyers sharing common needs orcharacteristics that the company decides to serve.



CRITERIA FOR EFFECTIVE SEGMENTATION

Measurable: The segment must be measurable in size and purchasing power of the members Accessible:The segment must be effectively served and reached
Actionable: Effective programs can be formulated for attracting and serving the segments Substantial: The segment should be large and profitable enough to serve
Differentiable: The segment should be distinguishable.


Approaches to selecting markets :



Undifferentiated Marketing Approach (Total Market Approach): It uses single marketing mix for the entire market. All consumers have similar needs for a specific kind of product (Homogeneous market). The company designs a product that appeals to a majority of buyers and relies on mass distribution and advertising.

Differentiated approach(Market segmentation): The firm operates in several market segments and designs different products for each segment.

2) Single segment concentration; involves concentrating in one market segment. The firm gains a strong knowledge of the segment’s needs and achieves a strong market presence. It may also enjoy operating economies through specializing its production, distribution and promotion. The disadvantage is that a competitor may invade the segment or customer’s tastes may change.

3) Selective specialization; the firm may select a number of attractive segments which are potentially profitable. Such a strategy has the advantage of diversifying a firm’s risks.

4) Product specialization; The firm makes a certain product which it sells to several segments e.g. a paper manufacturer who sells to schools, the government and commercial dealers.

5) Market specialization; the firm concentrates on serving many needs of a particular customer group e.g. a firm that sells an assortment of products only to hospitals.

6) Full market coverage; the firm attempts to serve all customer groups with the products they might need. A company can do this by covering a whole market in two broad ways:


POSITIONING:


 Definition: Positioning is the place the product occupies in the consumers minds relative to competing products.

Positioning involves implanting the brands unique benefits and differentiation in the market. Positioning is the way consumer defines a product on some important attributes. It is the complex set of perceptions, impressions and feelings that consumers hold for the product in comparison with competing products. Positioning helps to gain competitive advantage through differentiation.


POSITIONING METHODS/BASES:



Positioning on specific product feature or attribute:
Eg: Tide-as powerful detergent, Nirma-economy bar

Positioning based on Benefits, problem solution or needs:
Eg: Head & Shoulder shampoo- removes dandruff

Specific usage occasions or application:
Eg: vicks vaporub- for cold, Burnol-for cut wounds

User category:
Eg; Johnson & Johnson soaps, shampoos- for children

Against competition:
eg: pepsi vs coke

Price/quality:
Eg: Surf excel detergent powder – high price, high quality, Nirma detergent powder – low price, low quality


Steps In Market Positioning/positioning strategy:

1) Identifying competitive advantages
2) Selecting the right competitive advantage
3) Effectively communicating the chosen position

 

The steps are explained below;

 

1) Identifying competitive advantages:
A competitive advantage is an advantage over competitors gained by offering consumers greater value either through lower prices or by providing more benefits that justify higher prices. This can be achieved through various forms of differentiation.

Product differentiation; This is based on dimensions such as;
Product features not provided by competitors (e.g. safety features and design of Volvo)
Product performance e.g. cleaner, faster etc.
Style; such as the extra-ordinary look of the jaguar car, etc.
Product durability, reliability etc.
Service differentiation; (delivery, installation, repair, etc) i.e. differentiating the services
that accompany a product- gaining competitive advantage through speedy, reliable or careful delivery.
Personnel differentiation; gaining competitive advantage by hiring and training better people than competitors and by having customer- contact people who are competent in the following areas;
- possess the required skills & knowledge
-courteous, friendly and considerate
-understand customers, communicate clearly with them and respond quickly to customer
requests and problems.
Image differentiation; even when companies offer the same products and accompanying services, buyers may perceive a difference based on company or brand images established through a company’s public relations and social responsibility activities. This is common in the service industry.

2) Selecting the right competitive advantage
A company must decide how many differences to promote of its product or brands. It may aggressively promote only one or a combination of benefits to the target market. Each of the company’s brands may promote itself as “number one” on an attribute such as; Best price, best service, lowest price, best value, e.t.c. A competitive advantage on which the company bases its differentiation should have the following characteristics;

important; the difference should deliver an important benefit to target buyers.
Distinctive; competitors should not be offering the difference.
Superior; the difference should be superior to other alternatives.
Communicable.
Pre-emptive; competitors should not be able to easily copy the difference.
Affordable; buyers should afford to pay the difference.
Profitable.

3) Communicating and delivering the chosen position
The company must deliver and communicate the desired position to target consumers through the marketing mix. Hence a firm that desires to position on high quality must produce high quality products, charge a high price, distribute through high class dealers and advertise in high quality media



DEMAND MEASUREMENT:


Demand: Demand is the consumer willingness to purchase a product backed by purchasing power. The study of predicting or estimating the demand is called demand forecasting

 Market Demand:

•Market Demand for a product is the total volume that would be bought by a
•defined customer group in a
•defined geographical area in a
•defined time period in a
•defined marketing environment under a
•defined marketing program


Company Demand:

It is the company’s estimated share of market demand (at alternative levels of company marketing effort at a given time period).


Company Sales Forecast:

It is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment.


Necessity for Demand Forecasting:

Accurate demand forecasting is essential for a firm to enable it to produce the required quantities at the right time and arrange well in advance for the various factors of production, viz., raw materials, equipment, machine accessories, labor, buildings, etc


 
Benefits of short-term demand forecasting:

Appropriate production scheduling
Reduces cost of purchasing raw materials
Forecast financial requirements
Determining appropriate price policy
Setting sales targets and establishing controls and incentives
To plan sales force to achieve the sales targets
Evolving a suitable advertising and promotional campaign


Benefits of long term forecasting:

Planning of a new unit or expansion of an existing unit.
Planning long term financial requirements


ESTIMATING THE CURRENT DEMAND

Current demand can be estimated by the following ways:
1) Total Market Potential
2) Area Market Potential
3) Estimating industry sales market shares

1)Total Market Potential

The maximum amount of sales that would be available to all the firms in an industry in a given time period under a given level of industrial marketing efforts and environmental conditions.
OR
(Estimate the potential number of buyers and then eliminate the groups that will not buy the product)
TMP = Potential Number of buyers * Average Quantity Purchased by a buyer * The Price

2) Area Market Potential: For estimating area market potential, two methods are used.

a) Market Build Up Method: Identify all the potential buyers in each market and estimate their potential purchases.
Ex.Pumps
b) Multiple Factor Index Method: Customers for consumer products are numerous. Hence predicting demand will be a problem. Hence such companies use existing indices for various products, and estimates are made.

3) Estimating industry sales market shares
a) identifying competitors b) estimating their sales



SALES FORECAST:

A sales forecast is an estimate of the possible sales of a company’s brand or product in units or value terms, during a specific period, in a specific market under specific marketing plan and environment.


SALES FORECASTING METHODS:



Opinion of executives: it is the traditional method of sales forecast, in which one or more top executives forecast future sales based on personal knowledge and market information. But this method lacks validity.

Survey of Buyer’s Intentions: In this method, customers are requested to communicate their buying intentions for coming period. The method suitable for industrial products. Sales forecasts based on the method will be accurate if customers expectations are accurate.

Sales force composite method: sales forecasts are based on the estimates given by salesmen who are having direct contact with customers and also know future buying intentions about the products/services. The data given by the sales personnel is consolidated by sales manager. Some salesmen were too optimistic and too pessimistic about sales forecasts.

Sampling: sample results are used to make sales estimates. In this method, survey is conducted in selected geographic territory, and the resultant data related to the sample is extended to total population.

Time series analysis: This method is based on past sales data. In this method, sales forecast are made with mathematical formula with the help of past sales data. An analysis of seasonal, cyclical variations, sales trends, and irregular variations is to be done in projecting sales estimates.

Delphi Technique: This method is mainly used in making futuristic estimates. In this method, a group of experts are interviewed and their reactions and opinions are recorded. Final sales estimates were made based on the data.

Correlation Analysis: Correlation Analysis is done when there is close relationship exists between two variables. So this analysis is useful in making sales estimates of one variable based on the degree of relationship with other variable.

Eg: sales of petrol/diesel are related automobile sales.

Test marketing: A firm markets its product in a limited geographic area, measures sales, and then projects the company’s sales over a larger area.

Market-factor analysis: demand for a product is assumed to be related to the behaviorof certain sales activity.

Wednesday, November 3, 2010

Marketing Management syllabus



Marketing Management

Unit – I: Basics:
Marketing, Market, Marketing Management. Tasks, Philosophies, Marketing Mix-expanded
Marketing Mix, Marketing Program and Marketing Strategy, Managing marketing effort, Global
marketing, Marketing Environment - Company's Micro and Macro Environment - Interface other functional areas
Unit – II: Market Segmentation:
Levels and Bases for Segmentation, Segmenting Consumer Markets, Business Markets,
International Markets, Market Targeting - Evaluating Market Segments, Selecting Market Segments – Differentiation, Product Positioning, Positioning Strategies, Demand Measurement and Sales Forecasting Methods, Estimating Current and Future Demand. Competitive strategies.
Unit – III: Marketing Programme:
Decisions Involved in Product, Branding, Packaging, Product Line and Product Mix Decisions. New Product development, Product Life Cycle, Pricing, Strategies, Distribution Channels, Channel Management Decisions, Promotion Mix - Advertising, Sales Promotion. Public Relations, Personal Selling. Online Marketing-
Unit – IV: Consumer Markets:
Model of Consumer Behavior, Seven Os Structure, Factors Affecting Consumer Behavior. Stages in the Adoption Process, Industrial Markets - Characteristics, Industrial Buyer Behavior, Services Markets-Characteristics, and Strategies.
Unit – V: Marketing Organization and Control:
Types of Marketing Organization Structures and Factors affecting Global marketing Organization, Marketing Organization Annual plan Control, Efficiency Control. Profitability Control and Strategic Control. Marketing Audit.
Suggested Books:
1. Kotler Philip, Garyarmstrong, Prafullay. Agnihotri, EU Haque, "Principles of Marketing", 2010,
13th Ed, Pearson Education Prentice Hall of Indi.
2. Paul Baines, Chris fill, Kelly page, "Marketing Management", 2009, 1st Ed. Oxford University
Press.
3. Roger j. best, "Market- Based Management", 2009, 1st Ed. PHI Learning Pvt. Ltd.
4. Kurtz & Boone, "Principles of Marketing", 2010, 12th Ed. Cengage Publications.
5. Tapan k panda, "Marketing Management". 2010, 1st Ed. Excel books.
6. Ramaswamy V.S. Namakumari S, "Marketing Management", 2009, The Global perspective-
Indian Context Macmillan India Ltd.
7. Rajan Saxena, "Marketing Management", 2009, 4th Ed. Tata McGraw Hill.

Sunday, October 24, 2010

UNIT I MARKETING BASICS










Philip Kotler



DEFINITIONS OF MARKETING:

Marketing is defined as a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging of products of value with others.(kotler)

The art and science of choosing target markets and getting, keeping, rowing customers through creating, delivering and communicating superior customer value.

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.

Market: Traditionally, market was a physical place where buyers and sellers gather to buy and sell goods.

According to economists, market is collection of buyers and sellers who transact over a particular product or product class ( grain market, fruit market)

Meta Market: is a cluster of complementary products and services that are closely related in the minds of consumer but are spread across a diverse set of industries.

Eg: Automobile meta market consists of automobile manufactures, new and used car dealers, finance companies, insurance company, mechanics, spare par dealers, service shops, auto magazines.

MARKETING MIX






The Marketing Mix is also known as the 4 P’s, can be used by marketers as a tool to assist in implementing the Marketing strategy. This method is used to generate the optimal response in the target market by blending 4 variables in an optimal way. These four P’s controllable variables. These 4p’s are adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the Marketing environment.

Product: A product is customer solutions and firms must define the characteristics of product or service that meet the needs of customers

Price: It is the amount the customers willing to pay for the product. And firms must be conscious in deciding the price of the product as customers are very sensible to it.

Place: Making the product available at right time, right place in right quantities.

Promotion: Its all about how chosen target markets are informed about organizations products and services and includes tools like advertising, sales promotion, publicity, public relations and direct marketing

EXPANDED MARKETING MIX







The 7-Ps model is more useful for services industries and also for knowledge-intensive environments.

5. People: All people directly or indirectly involved in the consumption of a service are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering.

6. Process: Procedure, mechanisms and flow of activities by which services are consumed (customer management processes) are an essential element of the marketing strategy.

7. Physical Evidence: The ability and environment in which the service is delivered, both tangible goods that help to communicate and perform the service and intangible experience of existing customers and the ability of the business to relay that customer satisfaction to potential customers.


WHAT IS MARKETED (MARKETING OFFERINGS)

Marketing offers 10 types of entities that include goods, services, experiences, events persons, places, properties, organizations, information, and ideas.

Goods: All physical goods are marketed by marketing people like cars, trucks, Tv’s machine tools, machines, industrial chemicals, watches cosmetics and others.

Services: In modern economy, most of the services are marketed that includes airlines, hotels, car rental firms, barbers and beauticians, maintenance and repair people, accountants, bankers, lawyers, engineers, doctors software programmers and management consultants

Experiences: experiences are also be marketed eg: rides in amusement or water park

Events: Events like trade shows, artistic performances world cups or Olympics are aggressively promoted by companies.

Persons: Celebrity marketing is a major business today. Film stars and sports personalities are increasingly endorsed with many brands to promote them.

Places: Even cities, states, region, and whole nations can attract tourists, factories, companies and new residents.

Properties: Properties like real estate, stocks and bonds also requires marketing.

Organizations: Companies, universities, museums performing arts organizations all use marketing to boost their image and compete with others.

Information: Information can be produced and marketed as a product.

Ideas: Product or service ideas can also be marketed well in advance.


CORE CONCEPTS OF MARKETING (Needs, Wants, And Demands)

Needs are the basic human requirements. People need food, air, water, clothing, and shelter to survive. People also have strong needs for creation, education, and entertainment.

The above needs become wants when they are directed to specific objects that might satisfy the need. An American needs food but may want a hamburger, French fries, and a soft drink. A person in Mauritius needs food but may want a mango, rice, lentils, and beans. Wants are shaped by one's society.

Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are willing and able to buy one.

Companies must measure not only how many people want their product but also how many would actually be willing and able to buy it.

Understanding customer needs and wants is not always simple. Some customers have needs of which they are not fully conscious, or they cannot articulate these needs, or they use words that require some interpretation. Consider the customer who says he wants an "inexpensive car.". The marketer must probe further. We can distinguish among five types of needs:

1. Stated needs (the customer wants an inexpensive car).

2. Real needs (the customer wants a car who operating cost, not its initial price, is low).

3. Unstated needs (the customer expects good service from the dealer).

4. Delight needs (the customer would like the dealer to include an onboard navigation system).

5. Secret needs (the customer wants to be seen by friends as a savvy consumer).


Target Markets, Positioning, And Segmentation: segmentation means dividing the total market in to groups of consumers with similar needs, wants, and preferences. Positioning is to place the company’s products in the minds of target buyers. Target market is the group of potential customers to whom the marketers offer their products.

Offering And Brands: An offering can be a combination of product, services, information and experiences. Brand is an offering from a known source that carries many associations in the minds of people (brand image)

Value And Satisfaction: Value reflects the perceived tangible and intangible benefits and costs to customers. Value is a combination of quality, service and price (customer value triad). Value increases with quality, service and decreases with price.

Marketing Channels: Channels helps to reach target customers. Communication channels deliver and receive message or feed back from their customers, whereas distribution channels enables deliver of physical products.

Competition: Competition includes all actual and potential rival offering and substitutes that a buyer might consider.

Marketing Environment: It includes both micro and macro environment factors that influence a company performance. The Microenvironment consists of the following factors close to the company that affect its ability to serve its customers.The company, Suppliers, Marketing intermediaries, Customer, Competitors, and Public. The macroenvironment factors include political, cultural, technological and demographical factors.


MARKETING MANAGEMENT PHILOSOPHIES:

What philosophies should guide the marketing efforts. There six alternative concepts under which organization carryout their marketing strategies.

Production Concept: The concept is of the idea that consumers will favor those products which are widely available and highly affordable. Therefore, management should focus on production and distribution efficiency.

Product Concept: The product concept hold that consumer will favor a product that offers Most quality, performance and innovative feature. So under this, marketing strategy focuses on product improvement through design, packaging and price.

Selling Concept: The concepts hold that consumers will not buy the products unless aggressive marketing efforts are pursued. This concept is mainly applicable incase of unsought goods (like insurance).

Marketing Concept: The concept holds that achieving goals depends o knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors. The concept mainly focuses on customer.

Holistic Marketing Concept: is an integrated perspective that is based on the development, design, and implementation of marketing programs, processes, and activities that recognizes their breadth and interdependencies. It contains four components that include relationship marketing, integrated marketing, internal marketing, and social responsibility marketing.

Relationship Marketing: It aims at building mutually satisfying long-term relationships with key parties that includes customers, suppliers, distributors and other marketing partners in order to earn and retain their business.

Integrated Marketing: the marketer’s task is to design marketing activities and integrated marketing programs to create, communicate and deliver value for consumers.

Internal Marketing: It ensures that everyone in the organization holds appropriate marketing principles. The main task of internal marketing is hiring, training and motivating able employees who want to serve customers well.

Social Responsibility Marketing Concepts holds that the 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 preserve or enhances the consumer’s and society’s well-being.



MARKETING TASKS: (OR) TASKS OF MARKETING

Developing Marketing Plan and Strategies: The first step is to identify the potential long run opportunities and core competencies of the company, and to devise marketing plans and strategy and can move forwards.

Capturing Marketing Insights: Every company needs reliable marketing information to understand what is happening inside and outside the company.(marketing environment). MIS also includes marketing research, an important tool, which assess buyer wants and behaviour, actual and potential market size.

Connecting With Customers: Marketing management must also consider how to best create value for its chosen target customers and develop, strong profitable, long run relationship with customers.

Building Strong Brands: Every company must understand the strength and weakness of the brands with customers. Companies must initiate new product development based on their product positioning that helps build strong brands. At the same time they must think about life cycle stages and competition and other activities.

Shape Market offerings: Firms offers variety of products to cater the needs of customers. And product is the heart for any marketing program that includes product quality, design, features, packaging and also provides support services which gives competitive advantage over the competition. Pricing is the one of the critical decision, and it must based on their product perceived value.

Delivering Value: Every company must properly deliver value embodied in products through careful identification and selection of channel intermediaries who performs channel activities. It must also understand the various types of middleman like retailers, wholesalers and physical distribution firms and how they make decisions.

Communicating Value: Firms need to communicate the value in products/services. Marketing communication are the means by which firms attempt to inform, persuade and remind customers directly or indirectly about the products or brands. One can opt for mass communication or personal communication channels or integrated communication.

Creating Long-term Profits: Another important task of marketing is to have long-term view of its products and profitability. Companies must continuously search for changing global opportunities and develop new products to meet the changing needs of consumers.



MARKETING ENVIRONMENT

A company’s marketing environment consists of the factors and forces outside marketing that affect the marketing management ability to develop and maintain successful transactions with its target customers(Kotler & Armstrong ).


Marketing Environment is composed of a micro environment and macroenvironment. The Microenvironment consists of the following factors close to the company that affect its ability to serve its customers.

1) The company
2) Suppliers
3) Marketing intermediaries
4) Customer
5) Competitors
6) Publics


Company: Marketing mangers while formulating the marketing program and plans must consider other groups such top management, R&D, production and purchasing and accounting and think about consumers and work in harmony

Suppliers: Suppliers are very important in value delivering system who provides resources for the company to achieve its goals. Any change in the suppliers environment such as price change, labour strike, supply shortage can impact marketing operations seriously.

Marketing intermediaries: Marketing intermediaries are the firms engaged in selling and distributing the goods/services to end users. These include middlemen, physical distribution firms, marketing service agencies, and financial intermediaries. Middlemen include retailers, wholesales, dealers, and agents

Customers: The organization must know customers needs and wants, what they require and their characteristics. Customers may come from consumer market, business, resellers, and government markets.

Competitors: Marketing must try to gain strategic advantage over its competitors through proper positioning of their offer in the consumer minds. While designing and implementing marketing strategies, one has to track the competitors activities and strategies.

Publics: The company’s marketing environment includes various groups such financial, media government, citizen, and general public.

Macroenvironment:

Economic environment: Marketer requires to study the buying power of people. Changes in income and spending pattern would influence marketing environment. So marketer has to study income levels and distribution.

Political Factor: Most of marketing decisions are strongly affected by development in the political environment. This environment includes government agencies and other pressure groups that influence organizations.

Cultural Factors: The cultural environment is made of up institutions and other forces that affect society’s basic values, perceptions, preferences and behavior. Marketer must focus on the cultural shifts.

Technological factors: The major impact on the society is the technological advancement and changes in product that effect on consumers. Technology will be advanced further and consumer demands better and sophisticated product and services. These factors effect the company and consumers.

Deomographic Environment: Demography means the study of human population in terms of age, sex, occupation, income and other statistics. Any change in demographic environment would impact business organizations. So, marketing manager has to identify the changes in these factors that would affect businesses.


Why the study of marketing environment is important for a marketer?

The task environment includes the immediate actors involved in producing, distributing and promoting the offering. The main actors are the company, suppliers, distributors, dealers and target customers. Includes in the supplier group are – material suppliers and service suppliers such as marketing research agencies, advertising agencies, banking and insurance companies, transportation and telecommunication companies. Included with distributors and dealers are agents, brokers and others who facilitate finding and selling to customers.

The broad environment consists of six components: demographic environment, economic environment, natural environment, technological environment, political-legal environment and social-cultural environment. these environments contain forces that can have major impact on the actors in the task environment.

The major responsibility for identifying significant market place changes falls to the company’s marketers. More than any other group in the company, they must be the trend trackers and opportunity sectors.

Marketers are keenly interested in the size and growth rate of population in cities, regions and nations; age distribution etc. Exposure population growth has major implications for business. A growing population does not mean growing markets unless these markets have sufficient power nonetheless the companies that carefully analyse their markets and find major opportunities.

National populations vary in their age mix. At one extreme is Mexico a country with a very young population and rapid population growth. At the other extreme is Japan, a country with one of the world’s oldest populations. Milk diapers, school supplies and toys would be important products in Mexico. Japan’s population would consume many more adult products. A population can be sub divided into six age groups – pre-school, school-age children, teens, young, adults age 25 to 40, middle-aged adults aged 40 to 65 and older adults aged 65 and up. For marketers, the most populous age groups shape up the marketing environment.

Marketing require purchasing power as well as people. The available purchasing power in an economic depends on current income, prices, saving, debt and credit availability. Marketers must pay close attention to major trends in income and consumer-spending patterns because they can have a strong impact on business especially for companies whose products are geared to high income price-sensitive consumers.

The deterioration of the natural environment is a major global concern. Steel companies and public utilities have hard to invest billions of dollars in pollution-control equipment and more environmentally friendly fuels marketers need to be aware of the threats and opportunities associated with four trends in the natural environment, the storage of raw materials especially the water, the increased cost of energy, increased pollution levels and the changing rate of the governments.


GLOBAL MARKETING


A Global Firm is one that, in operating in more than one country, captures R&D, production, logistical, marketing and financial advantages in its costs and reputation that are not available to purely domestic competitors. Global firms plan, operate and coordinate their activities on a world wide basis.

Each national market has unique features that must be grasped. A global firm has to take into account economic, political – legal and cultural factors of target country while planning its expansion programmes.

Economic Environment:

Three characteristics reflect a country’s attractiveness as an export market.



  1. Size of country’s population: Large countries are more attractive to exporters than small markets.

  2. Country’s industrial structures, four types of industrial structures can be distinguished: -

    • Subsistence Economics: - In Subsistence economics the vast majority of people engage in simple agriculture. They consume most of their output and barter the rest for simple goods and services. They offer few opportunities for exporters.

    • Raw Material Exporting Economics: - These economics are rich in one or more natural recourses but poor in other respects. Much of their revenue comes from exporting these resources Examples are Chile (tin and copper); Zaire (rubber). These countries are good markets for extracting equipment, tools and supplies, materials handling equipment and trucks. Depending on the number of foreign residents and wealthy native rulers and landlords, they are also a market for western – style commodities and luxury goods.

    • Industrializing Economies: - In an industrializing economy, manufacturing begins to account for between 10 and 20 percent of the country’s grogs national product. Examples include India, Egypt etc. As manufacturing increases, the country relies more on imports of textile raw materials, steel and heavy machinery and less on imports of finished textiles, papers products and automobiles. The industrialization creates a new rich class and small but growing middle class, both demanding new types of goods, some of which can be satisfied only by imports.

    • Industrial Economies: - Industrial economies are major exporters of manufactured goods and investment founds. They trade manufactured goods among themselves and also export them to other type of economies in exchange of raw materials and semi-finished goods. The large and varied manufacturing activities of these industrial nations and their sizable middle class make them rich markets for all sorts of goods.

Economic characteristics of the country: characters like income distribution. Income distribution is related to a country’s industrial structure but is also offered by the political system.


Political – Legal Environment

A company should consider four factors in deciding whether to do business in a particular country.


  1. Attitude towards International Buying: - Some nations are very receptive, indeed encouraging to foreign firms and others are very protectionist. For example, Mexico for a number of years has been attracting foreign investment by offering investment incentives, while India in the post required the exporter to cope with import quotes, blocked currencies and so on.

  2. Political Stability: - Government in some countries changes hands, sometimes quite violently. And with changes in government foreign trade policies also change. The foreign company’s property might be expropriated, or its currency holdings might be blocked. In such conditions international marketers might prefer export marketing to direct foreign investment. They will convert their currency rapidly. As a result, the people in the host country pay higher prices, have fewer jobs and get less satisfactory products.

  3. Monetary Regulation: - Sellers want to realize profits in a currency of value to them. Foreign firms want payments in hand currency with profit repatriation rights, but that may not be available in many markets.

  4. Government Bureaucracy: - A fourth factor is the extent to which the host government runs an efficient system for assisting foreign companies: quick licensing procedures, efficient custom handling adequate market information and other factors conductive to doing business.

Cultural Environment: - Each nation has its own values, customs and taboos. Foreign business people, if they are to be effective, must drop their ethnocentrism and try to understand the culture and business practices of their hosts, who often out on different concepts of time, space and etiquette. The way foreign consumers perceive and use certain products must be checked out by the seller before planning the marketing programme.

Short Notes:

Marketing Strategy:

Marketing strategy combines product development, promotion, distribution, and pricing approach, identifies the firm's marketing goals, and explains how they will be achieved within a stated timeframe. Marketing strategy determines the choice of target market segment, positioning, marketing mix, and allocation of resources. It is usually a part of company’s corporate plan.

Marketing Program:

Once marketing plan is completed and is being implemented, it is referred to as marketing program, a term that holds all the activities associated with implementation and control of the individual elements of the marketing mix.

Marketing Myopia:

Short sightedness and inward looking approach to marketing that focuses on the needs of the firm instead of defining its products in terms of the customers' needs and wants. Such firms fail to adjust to the changes in the market and will disappear later.

Wednesday, October 13, 2010

Unit I -- Marketing Basics

Marketing Management

Definition: The art and science of choosing target markets and getting, keeping, rowing customers through creating, delivering and communicating superior customer value.

Marketing Mix

The Marketing Mix is also known as the 4 P’s, can be used by marketers as a tool to assist in implementing the Marketing strategy. This method is used to generate the optimal response in the target market by blending 4 variables in an optimal way. These four P’s controllable variables. These 4p’s are adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the Marketing environment.

Product: A product is customer solutions and firms must define the characteristics of product or service that meet the needs of customers

Price: It is the amount the customers willing to pay for the product. And firms must be conscious in deciding the price of the product as customers are very sensible to it.

Place: Making the product available at right time, right place in right quantities.

Promotion: Its all about how chosen target markets are informed about organizations products and services and inclues tools like advertising, sales promotion, publicity, public relations and direct marketing

Expanded Marketing Mix

The 7-Ps model is more useful for services industries and also for knowledge-intensive environments.

5. People: All people directly or indirectly involved in the consumption of a service are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering.

6. Process: Procedure, mechanisms and flow of activities by which services are consumed (customer management processes) are an essential element of the marketing strategy.

7. Physical Evidence: The ability and environment in which the service is delivered, both tangible goods that help to communicate and perform the service and intangible experience of existing customers and the ability of the business to relay that customer satisfaction to potential customers.


PHILOSOPHIES OF MARKETING MANAGEMENT:


What philosophies should guide the marketing efforts. There six alternative concepts under which organization carryout their marketing strategies.

Production Concept: The concept is of the idea that consumers will favor those products which are widely available and highly affordable. Therefore, management should focus on production and distribution efficiency.

Product Concept: The product concept hold that consumer will favor a product that offers Most quality, performance and innovative feature. So under this, marketing strategy focuses on product improvement through design, packaging and price.

Selling Concept: The concepts hold that consumers will not buy the products unless aggressive marketing efforts are pursued. This concept is mainly applicable incase of unsought goods (like insurance).

Marketing Concept: The concept holds that achieving goals depends o knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors. The concept mainly focuses on customer.

Societal Marketing: The social marketing concept holds that marketing strategy should deliver value to customers in a way that maintains or improves the customer’s and society well-being.

MARKETING TASKS: (OR) TASKS OF MARKETING

Developing marketing plan and strategies: The first step is to identify the long run opportunities and core competencies for the company, thereby marketer designs marketing plans and strategy and move forwards.

Capturing marketing insights: Every company needs reliable marketing information to understand what is happening inside and outside the company.(marketing environment). MIS also includes marketing research which assess buyer wants and behaviour, actual and potential market size.

Connecting with customers: Marketing must consider how to create best value for its products/services for chosen target markets and develop, strong profitable, long run relationship with customers.

Building strong brands: Every company must understand the strength and weakness of the brands with customers. Companies must initiate new product development based on their product positioning that helps build strong brands. At the same time they must think about life cycle stages and competition and other activities.

Shape Market offerings: Firms offers variety of products to cater the needs of customers. And product is the heart for any marketing program that includes product quality, design, features, packaging and also provides support services which gives competitive advantage over the competition. Pricing is the one of the critical decision, and it must based on their product perceived value.

Delivering value: Every company must properly deliver value embodied in products through careful identification and selection of channel intermediaries who performs channel activities. It must also understand the various types of middleman like retailers, wholesalers and physical distribution firms and how they make decisions.

Communication value: Firms need to communicate the value in products/services. Marketing communication are the means by which firms attempt to inform, persuade and remind customers directly or indirectly about the products or brands. One can opt for mass communication or personal communication channels or integrated communication.

Creating long-term profits: Another important task of marketing is to have long-term view of its products and profitability. Companies must continuously search for opportunities and develop new products to meet the changing needs of consumers

MARKETING ENVIRONMENT

A company’s marketing environment consists of the factors and forces outside marketing that affect the marketing management ability to develop and maintain successful transactions with its target customers(Kotler & Armstrong ).

Marketing Environment is composed of a micro environment and macroenvironment. The Microenvironment consists of the following factors close to the company that affect its ability to serve its customers.

Microenvironment:

1) The company

2) Suppliers

3) Marketing intermediaries

4) Customer

5) Competitors

6) Publics

Company: Marketing mangers while formulating the marketing program and plans must consider other groups such top management, R&D, production and purchasing and accounting and think about consumers and work in harmony

Suppliers: Suppliers are very important in value delivering system who provides resources for the company to achieve its goals. Any change in the suppliers environment such as price change, labour strike, supply shortage can impact marketing operations seriously.

Marketing intermediaries: Marketing intermediaries are the firms engaged in selling and distributing the goods/services to end users. These include middlemen, physical distribution firms, marketing service agencies, and financial intermediaries. Middlemen include retailers, wholesales, dealers, and agents

Customers: The organization must know customers needs and wants, what they require and their characteristics. Customers may come from consumer market, business, resellers, and government markets.

Competitors: Marketing must try to gain strategic advantage over its competitors through proper positioning of their offer in the consumer minds. While designing and implementing marketing strategies, one has to track the competitors activities and strategies.

Publics: The company’s marketing environment includes various groups such financial, media government, citizen, and general public.

Macroenvironment:

Economic Environment: Marketer requires to study the buying power of people. Changes in income and spending pattern would influence marketing environment. So marketer has to study income levels and distribution.

Political Factor: Most of marketing decisions are strongly affected by development in the political environment. This environment includes government agencies and other pressure groups that influence organizations.

Cultural Factors: The cultural environment is made of up institutions and other forces that affect society’s basic values, perceptions, preferences and behavior. Marketer must focus on the cultural shifts.

Technological Factors: The major impact on the society is the technological advancement and changes in product that effect on consumers. Technology will be advanced further and consumer demands better and sophisticated product and services. These factors effect the company and consumers.

Deomographic Environment: Demography means the study of human population in terms of age, sex, occupation, income and other statistics. Any change in demographic environment would impact business organizations. So, marketing manager has to identify the changes in these factors that would affect businesses.

GLOBAL MARKETING

A Global Firm is one that, in operating in more than one country, captures R&D, production, logistical, marketing and financial advantages in its costs and reputation that are not available to purely domestic competitors. Global firms plan, operate and coordinate their activities on a world wide basis.

Each national market has unique features that must be grasped. A global firm has to take into account economic, political – legal and cultural factors of target country while planning its expansion programmes.

Economic Environment:

Three characteristics reflect a country’s attractiveness as an export market.

  1. Size of country’s population: Large countries are more attractive to exporters than small markets.
  2. Country’s industrial structures, four types of industrial structures can be distinguished: -
    • Subsistence Economics: - In Subsistence economics the vast majority of people engage in simple agriculture. They consume most of their output and barter the rest for simple goods and services. They offer few opportunities for exporters.
    • Raw Material Exporting Economics: - These economics are rich in one or more natural recourses but poor in other respects. Much of their revenue comes from exporting these resources Examples are Chile (tin and copper); Zaire (rubber). These countries are good markets for extracting equipment, tools and supplies, materials handling equipment and trucks. Depending on the number of foreign residents and wealthy native rulers and landlords, they are also a market for western – style commodities and luxury goods.
    • Industrializing Economies: - In an industrializing economy, manufacturing begins to account for between 10 and 20 percent of the country’s grogs national product. Examples include India, Egypt etc. As manufacturing increases, the country relies more on imports of textile raw materials, steel and heavy machinery and less on imports of finished textiles, papers products and automobiles. The industrialization creates a new rich class and small but growing middle class, both demanding new types of goods, some of which can be satisfied only by imports.
    • Industrial Economies: - Industrial economies are major exporters of manufactured goods and investment founds. They trade manufactured goods among themselves and also export them to other type of economies in exchange of raw materials and semi-finished goods. The large and varied manufacturing activities of these industrial nations and their sizable middle class make them rich markets for all sorts of goods.

Economic characteristics of the country: characters like income distribution. Income distribution is related to a country’s industrial structure but is also offered by the political system.

Political – Legal Environment

A company should consider four factors in deciding whether to do business in a particular country.

  1. Attitude towards International Buying: - Some nations are very receptive, indeed encouraging to foreign firms and others are very protectionist. For example, Mexico for a number of years has been attracting foreign investment by offering investment incentives, while India in the post required the exporter to cope with import quotes, blocked currencies and so on.
  2. Political Stability: - Government in some countries changes hands, sometimes quite violently. And with changes in government foreign trade policies also change. The foreign company’s property might be expropriated, or its currency holdings might be blocked. In such conditions international marketers might prefer export marketing to direct foreign investment. They will convert their currency rapidly. As a result, the people in the host country pay higher prices, have fewer jobs and get less satisfactory products.
  3. Monetary Regulation: - Sellers want to realize profits in a currency of value to them. Foreign firms want payments in hand currency with profit repatriation rights, but that may not be available in many markets.
  4. Government Bureaucracy: - A fourth factor is the extent to which the host government runs an efficient system for assisting foreign companies: quick licensing procedures, efficient custom handling adequate market information and other factors conductive to doing business.

Cultural Environment: - Each nation has its own values, customs and taboos. Foreign business people, if they are to be effective, must drop their ethnocentrism and try to understand the culture and business practices of their hosts, who often out on different concepts of time, space and etiquette. The way foreign consumers perceive and use certain products must be checked out by the seller before planning the marketing programme.