Fundamentals Marketing Management

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FUNDAMENTALS OFMARKETING MANAGEMENT

By Prabhat Ranjan Choudhury,Sr. Lecturer, B.J.B (A) College,

Bhubaneswar.


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Module of Presentation

Selling vs. MarketingWhat is Marketing?Definition of Marketing ManagementScope of Marketing ManagementMarketing MixProduct Life CycleSegmentation, Targeting and Positionning (STP)


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Selling vs. Marketing

Product oriented Customer oriented

Objective is exchange of goodsagainst money

Objective is customersatisfaction

To sell what you make To make what you can sell

Believes that customers can becoaxed into buying

Believes in delivering value

Selling focuses on the needs of the seller Marketing on the needs of thebuyer.

Selling is push Marketing is pull


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Selling Vs. Marketing


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What is Marketing???


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Definitions

Marketing is a societal process by which individualsand groups obtain what they want and need throughcreating , offering and freely exchanging productsand services of value with others

Phillip Kotler Marketing Management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services tocreate exchanges that satisfy individual and

organizational goals.American Marketing Association


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Scope of Marketing


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Scope of Marketing
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Marketing mix

Marketing mix is the set of marketing tools that the firmuses to pursue its marketing objectives in the targetmarket.

A product is any tangible, intangible or blend of both

offered to the target market that might satisfy theneeds, wants or aspirations of a consumer.Price refers to the money value that the consumershave to pay to buy the product or service.

Place is concerned with all the decisions involved ingetting the right product to the target markets place.

Promotion is concerned with telling the target market or others in the channel of distribution about the rightproduct.


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Marketing Mix


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Marketing Mix: Summary

Source: Phillip Kotler


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Marketing Mix: Product Decision


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Marketing Mix: Price Decision


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Marketing Mix: Promotion Decision


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Marketing Mix: Place Decision


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PLC

TIME

SALES &PROFITS

ProductDevStage

IntroStage

GrowthStage

MaturityStage

DeclineStage

Sales

Profit


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Examples of Different Stages of PLC


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Summary of PLC

Characteristics ProductDev Introduction Growth Maturity Decline

Sales Nil Low Rapidlyrising

Peak Declining

Costs Dev cost High cost per customer

Avg cots per customer

Low cost Low cost

Profits Negative Negative Rising High Declining

Customers Nil Innovators(2.5%)

Earlyadopters(13.5%)

Middlemajority(68%)

Laggards(16%)

Competitors Nil/few Few Growing Stable Declining

MarketingObjective

Make your productknownandestablisha test

period

Create productawareness &trial

Maximisemarket share

Maximisingprofit whiledefendingmarket share

Reduceexpenditure& milk thebrand



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Strategies of PLCProductDev

Introduction Growth Maturity Decline

Product Design anewproduct

Offer a basicproduct

Offer productextensions

Diversifybrand

Phase outweak items

Price Use cost-plus Price topenetratemarket

Price to matchor beatcompetitors

Cut price

Place/Distribution

No Selective Intensive Moreintensive

Go selective.Phase outunprofitablechannel

Advertising No Productawareness

amonginnovator, earlyadopters &dealers

Productawareness

among massmarket

Branddifference &

benefits

Reduce. Tryto retain hard

core loyalcustomers

SalesPromotions

Creation of public

marketproduct

Focus on trialpack

Reduce totake

advantage of heavy

Increase toencourage

brandswitching

Reduce tominimal level



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Segmentation Targeting & Positioning (STP)Market Segmentation is the process of dividing amarket into distinct subgroups of consumers with distinctneeds, characteristics, or behaviour, who might requireseparate products or marketing mixes.

Philip Kotler Target Marketing involves breaking a market intosegments and then concentrating your marketing effortson one or a few key segments.Positioning is the process of designing an offer so that itoccupies a distinct and valued place in the minds of thetarget customer.

Philip Kotler Positioning involves implanting the brands uniquebenefits and differentiation in customers mind.


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Levels of Market Segmentation

Segment marketing : Dividing the market intodifferent segments on the basis of homogenous need.Niche marketing : More narrowly defined group,typically a small market whose needs are not well

served. Marketers effort to position their product orservice in smaller markets that have similar attributesand have been neglected by other marketer

Local marketing : Marketers offer customized

products to suit the local markets.Individual marketing : Extreme marketing in whichmarketers focus on individual customers.


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Bases for Consumer Market Segmentation

ConsumerMarket

Segmentation

GeographicalRegions, cities,

states,countries

DemographicAge,

gender,income,

occupation,religion,

social class,family size

PsychographicLife style,

personality,values,beliefs

BehavioralOccasions,Benefits,

User status,Usage rate,

Loyalty status


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Targeting Segments - Overview


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Positioning

Positioning is the act of designing the companysoffering and image to occupy a distinctive place inthe target markets mind. Positioning is what you do to the mind of theprospect.Positioning is called as renting mind space Better to be first than the best.


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Different Positioning Strategies Attribute positioning: Hero Honda Splendors the largestselling bike in the world, Pilsburys Chakki Fresh Atta,Safola low fat contentBenefit positioning: Airtel network coverage , Safolapromises health

Use or application positioning: Apple iPhoneUser positioning: Allen Sollys Friday Dressing & nowMy World, My WayCompetitor positioning: Rin vs. Tide

Product category positioning: Fair & Handsome fairness cream only for menQuality or price positioning: Bajaj Automobiles Valuefor money . Big Bazaar Isse Sasta aur Achha KahinNahin


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You Can Catch me E-mail: [email protected]: +91 99373 42747


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Product ManagementThe new competition is not between what companiesproduce in their factories, but between what they addto their output in the form of packaging, services,advertising, customer advice, financing, deliveryarrangements, warehousing and other things thatpeople value.

Theodore LevittProduct Levels: other wise known as customer

value hierarchy with each level adding more value.


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Product Level: BikeCore benefit: Communication

Basic product:Features: fuel efficiency, speedDesign: masculine, feminine, executive,trendyBrand name: Hero, Bajaj, Suzuki, Yamaha

Expected product:Disc brakeBetter Graphic designBetter headlightTubeless tire

Alloy wheel Augmented product:

Rear & front disc brakeDigital meter Better seating

Potential product:Installation of GPS system

Automatic mode driving


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Product Classification

CONSUMERPRODUCT INDUSTRIALPRODUCTINTANGIBLEPRODUCT

Capital item Spare parts

Suppliesitem


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Consumer Products1. CONVINIENCE

a.Staple

c.

b.Emergency

2. SHOPPING3. SPECIALITY 4. UNSOUGHT
http://images.suite101.com/2193619_com_unsoughtpr.jpg


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Industrial Products

MATERIAL PARTS1. RAWMATERIALS

1.b)NATURALPRODUCTS

1.a) FARMPRODUCTS

MANUFACTUREDMATERIALS

COMPONENT PARTS


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Industrial Products

CAPITAL ITEM

FIXEDEQUIPMENT

INSTALLATION

OFFICEEQUIPMENT

PORTABLEFACTORYTOOL


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Industrial Products

SUPPLIES &SERVICES

OPERATING SUPPLIES

REPAIR & MAINTENANCEITEM

MAINTENANCE SERVICES

BUSINESS ADVISORYSERVICES


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Product Mix A product mix or product assortment is the setof all products & items a particular seller offersfor sale.

A companys product mix has a certain width,length, depth and consistency.

The width of product mix refers to all the product linesthe company carries.The length refers to the total number of items in the mix.The depth refers to the total number of variants offered of each product in the line.The consistency refers to how closely related thevarious product lines are in end use, productionrequirements, distribution channels, or some other way.


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PRODUCT MIX WIDTH AND PRODUCT LINELENGTH

PRODUCT MIX WIDTH

P R O D U C T L I N E

L E N G T H

PersonalCare Soap

DoveLuxPearsLirilRexonaBreeze

MotiLifebouyHammam

Detergent

Surf RinSunlightWheel

Ala

Food Items

Kissan(Jam,Ketchup,Squash)

Annapurna(Atta & Salt)Knorr Soup

ModernBread

Skin Care

Fair n LovelyLakmePondsVaseline

Aviance


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PRODUCT MIX WIDTH AND PRODUCT LINELENGTH FOR HULPRODUCT MIX WIDTH

P R O D U C T L I N E

L E N G T H

Hair Care

SunsilkClinic plusClinic AllClear Dove

Oral care

PepsodentClose-up

Deo Spray

AxeRexonaPondsDenim

Beverage

Brooke BondBruLipton


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Product LineProduct line is a group of products that are relatedbecause they function in a similar manner, are sold to thesame customer groups are marketed through the sametypes of outlets or fall within given price range.Product line length refers to the number of items in the

product line.Product line stretching occurs when a companylengthens its product line beyond its present range.Product line filling involves addition of new items within

the existing range of the product line.Product line featuring refers to product items to be used asshow piece to attract customer for the whole product rangeProduct line pruning refers to removal of particular productfrom the line.


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Product Line StretchingPulsar 220

Pulsar 150

Pulsar 135

Pr

ice

Quality

High

High

Low

Low


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Product Line Featuring


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Brand

A brand is a name, term, sign, symbol, or design or a combination of these, that identifies the maker of seller of a product or services and differentiate themfrom those of competitors.

Philip Kotler Brand mark is the part of the brand, which appearsin the form of symbol, design or distinctive coloringor lettering

When a brand mark is registered and legalized itbecomes Trade mark .


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Brand Equity Brand equity: The value premium that acompany realizes from a product with a recognizable or brand name as compared to its generic or unbrandedequivalent.Brand equity is the unique set of brand assets & liabilitiesthat is linked to a brand.

David Aaker David Aaker has proposed five assets underlying brandequity.

Brand loyaltyName awarenessPerceived qualityBrand association

Other assets like patent, trade mark


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BrandIndividual Brand Name: Each product has a specialand unique brand name.Family Brand Name: It is limited to one line of product.

Umbrella Brand: For all products the name of thecompany or the manufacturer.Combination Device: When an individual brandname is attached to umbrella brand is known as

Combination Device.Private or Middlemens Brand: Distributors,wholesalers, large retailers sell the products under their own brand name.


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Generic Brand A brand that becomes generic becomes a productcategory.


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Brand Awareness: Relates to the number of personwho recognize the brands significance & who areconscious of the promise, which the symbol express.Three type of awareness are

Top-of-the mind awarenessUnaided awareness

Assisted awarenessBrand Personality: reflects the consumer perceptionabout the brand, who personify it.

Brand Image: It is the meaning consumers give to aproduct based on the perceived value it delivers. It isa set of beliefs held about a specific brand. It is thetotality of consumer perceptions about the brand.


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Brand Development Strategy DecisionLine Extension : when a company introducesadditional items in the same product category under the same brand name.Brand extension : Use of existing brand name to

launch a product in a new category..Product Flanking : It refers to the introduction of different combinations of products at different prices,and package size to tap the market opportunities.

Multi Brands : A company will often introduceadditional brands in the same categoryNew Brands : When a company launches products ina new category.


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Top 10 Global Brands 2011


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Top Indian Brands Globally


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Top 10 Indian BrandIndiaRank(2011) Brand Name Category

2010RANK

1 AmulMilk powder/Milk/Ice-cream 73

2 Kingfisher Beer/Full-service

Airlines 140

3 Big Bazaar Retail 2484 ICICI Bank Bank 182

5State Bank of India(SBI) Bank 226

6 Airtel Mobile Service Provider 3017 LIC Insurance 2908 Cafe Coffee Day Coffee 3969 Titan Watch 292

10 Lakme Cosmetics 289


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Documents

Fundamentals Marketing Management