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It is the set of activities and process to create value to consumers and to communicate, deliver,
capture ..
Supply chain is set of approaches and techniques that firms employ to efficiently integrate suppliers,
manufactures , distributors, warehouses , stores and other partners such as transport companies
into a seamless chain in which goods are produced at right time, in right quantity and delivered at
right place, minimizing system wide costs and satisfying consumer needs.
All marketing activities are aimed at reduction of transaction cost and uncertainty.
4 Eras:
Production Era, Sales Era, Marketing Era and Value based Marketing.
o It creates employment.
o It provides consumers with necessary information.
o It integrates the organization by working with R&D, Operations, Suppliers, Distributors etc.
o It helps firms to increase global presence.
o It has a tinge of social cause.
Market driven
1. Collect the customer information and permeate it to all functions of the organization. Know
who is the important customer, whom to target, from where to collect information.
Summary of reports helps managers to take a quick look. Visit costumers place to
understand the usage of products better. Visit fairs to know competitors products.
2. Integrated tactical and strategic decision making among various departments of
organization. There should be regular discussion btw R&D, operations, sales , finance to take
collaborative decisions.
3. Collaborative execution with commitment.
3 Cs for being market driven, Coordination and Commitment are 3 prime factors to be
customer driven.
Marketing Myopia:
A brilliant paper by Theodore Levitt, the paper speaks about how companies fail to focus on
consumer needs. The author explains with examples on how companies failed without
predicting on what is going come in future. The companies failed to recognize the
substitutes. Companies sticking to just few of products and expecting the products to sell big
is incorrect. Instead they should look for what the consumers need, and how the companys
expertise could be utilized to fulfil consumers need. Only reducing prices and mass
production will not help doing these along with response to consumer preferences will make
sure companies survive. Companies must be adaptable, agile and ready for change.
Companies start with products and then build marketing plans to suit the product, this is
incorrect. It should be other way around marketing should provide the inputs to build a
good product.
Sticking to just one product and its optimization does not work out forever. One needs to
keep looking on how to grow the business organically, on how new needs to consumer could
be met with the existing expertise in the company.
One should not try to save his/her pride when he is about to lose his shirt.
Marketing Strategy:
Market Segmentation, Target market selection and Product Positioning are 3 prime activities to be
done before one starts deciding on marketing decision variables.
Segmentation could be done based on - Demographic factors, geographic factors or life style factors.
From the available segments a company should target the market that
The process of creating an impression in the minds of target customers is called positioning.
Segmentation, target market selection and positioning are most important aspects, once these 3 are
decided one can go about deciding 4P around these 3 factors.
My Perspective: -
1. For B2B marketing one important consideration is can customer produce the product on
his own , is he doing it now or is he planning to do in future ? Eg Server Industry and IT
Services industry.
2. One should also consider the probable substitutes that can come in next few years before
developing high Tech expensive products.
Product:
Product along with the pre sales support, after sales support, place of delivery, product brand, and
other factors make the integrated product or augmented product.
Breadth is the number of different products in the same category such as notebook, netbook, PC.
Length is the number of products in a variety of product, e.g. variants of laptop differing in prize and
features.
One needs to make decision on introducing a product in a existing line , deprecating a product from
the line, or introduction of a new line altogether.
New Product Management:
Opportunity Identification: Find out new requirements of consumers, check if company has
the capability to serve the requirements, verify on financial benefits.
Design and Test: Design the product see if it as per consumers needs through simulation or
test marketing.
Production Introduction: If test and design are successful then decide on geographies to
introduce and the price etc
Life cycle management of product: See what new requirements come up, how technology is
changing, what competitors are doing and enhance the product.
A channel is set of mechanisms or network through which an organization keeps in touch with
consumer to understand their requirements and deliver goods.
Channel Design:
Channel Management:
Promotion:
Market, Mission, Message, Media, Money and Measurements. 6M help to decide on how to
go about promotions.
Push Strategy : Push the products to consumers thro retailers thro advertising.
Pull Strategy: Develop such an insistence in consumer that he pulls the product from distributor.
Market Planning and Market Strategy:
In simple words strategy is the process of mapping ones resources with available opportunities.
Marketing strategy identifies STP, marketing mix and a way to have sustainable advantage.
A company is said to have sustainable advantage when it has created walls around its customers
which are not easy to be pulled down. Competitive advantage cannot be built using just price or any
other methodology which can be copied easily.
Service Excellence: Outstanding customer service, customer retention and relationship with
customer.
Operational excellence: Optimized operations, supply chain, good network with suppliers,
distributors.
Product excellence: Excellent perceived value for the product, great brand value and clear
positioning.
Location excellence: Availability of the product, location of shop, its ambience etc.
Marketing Plan
Executive Summary
Situation Analysis
o Sales Analysis
o Competitor Analysis
o Customer Analysis
o Attractiveness of the Market
History and Trends
Planning Assumptions
Marketing Strategy
o Problems , Growth Opportunities, Objectives
o How to Reach Objectives (STP),
o What to do exactly (4P), Marketing Programs
Financial Return and Estimations
Monitor and Control
Risk and Contingency Plans
Market plan provides a blue print of what company wants to do , what are its mission , its strength
and weakness, strategy for 4P and strategy for control.
Mission crisply conveys the companys objective and it clarifies what products company sells and
what are its unique points. This needs to be very clear before any further decisions are taken.
SWOT analysis demarcates the strengths and weakness of an organization and opportunities and
threats inherent in the market. A company will have internal and external strengths, internal and
external weakness. Threats and opportunities exist for every company and this needs to understand
to overcome threats and harness opportunities.
Segmentation is the process of dividing market into unique groups of customers with unique needs
and wants.
Targeting is the process of selecting the segments which yields benefits to company and where
company can deliver value and have substantial advantage.
Positioning is the process of conveying the value proposition, benefits of a product to the customer.
Positioning clearly differentiates the product from its competitors; it makes the customer
understand it.
Product is bundle of benefits, it creates value to customer. It should meet customers needs and
wants. Most important point is consumers should consider the product value for money.
Price is the rate at which company wants to sell the product. This captures the market. Pricing can
be of 3 major types
Pricing is very tricky because if priced high product will not sell and if priced very low profits do not
happen.
Place is the location at which the product is sold, the convenience offered, internet facility , online
buying etc The delivery should be valuable to the consumer.
Market Research:
The objectives and problem to be root caused should be as clear as possible for market research.
Primary Data is
Accurate
Expensive
Time Consuming
Expertise Intensive
Secondary Data
Less Expensive
Quickly Available
Might not be always relevant
Less Expertise required
Collection of Data:
Exploratory:
Conclusive:
Primary Data is collected by the researcher, it is more relevant and mostly more precise, more
expensive.
Secondary Data is collected from journals, other market research publications; this data is cheaper
but may not be precise and relevant. Secondary data can also be from internal sources.
Treatment: Is the process of making changes in the marketing variables such as price or promotion.
Qualitative data lack numerical measurement and statistical analysis. For example as discussion
with a customer or group of customers.
In market research understanding problem statement and proper research design is most
important.
Total Revenue could be varied by varying Market Choice, Reach Rate , Yield Rate , No of
Transactions , Transaction Size.
No of Units Required = (Total Profit Target + Fixed Cost) / Per Unit Contribution
Per Unit Contribution = Per Unit Selling Price Variable cost per unit
One needs to be very careful about fixed such as retail space, inventory and employee cost.
If price of the product per unit is raised no of units needed to reach same profit target is less.
If one is able to compute total profit then ROI = Profit / Total Investment.
There are general financial measures (Sales Growth, Quick Ration , Current Asset Ratio , ROI, RON ,
Working Capital EPS, DPS ) which give a fair idea about business.
But a marketing manager needs to use other ratios such as below for his decision making
External Market Ratio (Market Share, Consumer Perception , Non Customer Perception ,
Reach Rate , Yield Rate )
Space to Profit Ratios
Employees to Profit Ration
Marketing Expense to Profit Ratio
This benefit is the prime differentiator and the factor on which premium price can be charged.
A graph of Price V/S benefit is plotted as competitive positioning of every vendor with respect to
others can be measured.
There are secondary benefits that can have impact on price and sales but prime benefit is most
critical.
One needs to keep watching for primary benefit , as it can change in span of time and once it
changes the provider should change his priority or else the product will lose competitiveness.
One can use price benefit analysis to track competitors and decide strategy.
Product Management
Type of Competition:
Product Competition
Product Category Competition
Generic Competition / Form Competition
Budget Competition
Aggregate Factors
o Market Size
o Market Growth
o Product Life Cycle
o Cyclicity
o Seasonality
o Profit Range
o Profit Variation
Category Factors
o Threat of Entry
o Threat of Substitutes
o Threat of Customers
o Threat of Suppliers
o Rivalry
o Complementors
PESTLE Factors
o Political
o Environmental
o Social
o Technological
o Legal
o Economic
Competitor Analysis
Who is my competitor
Primary and Secondary Data to know about competitors , their strategy
How is my competitor differentiating
What are my competitors R&D, Production , Marketing , Financial , HR strengths
What would be my competitors next step
Customer Analysis
Product/Marketing Strategy:
Core Strategy
Customer Targets
Competitor Target
/Position / Differentiation / Core Value Proposition
Cost / Price Position
Product Differentiation
Idea Generation
Concept Generation
Concept Testing
Product Development
Product Testing
Market Testing
Go No Go Decision
New Products
For all new products one needs to see how it impacts existing customers (loyal), occasional
customers and non-customers
Concept Testing
Product Testing
Market Testing
To compute value for new to world products one could utilize existing similar products and see how
the new to world benefits customer as compared to similar products.
Brand Equity
Brand value is the amount by which the actual value of the product differs, it is the plus or minus of
actual value of the product. IT basically adds or subtracts value to the companys products.
Brand Loyalty
Brand Awareness
Brand Quality Perception
Brand Association
Pricing
The value of a product can be computed considering substitute products, competitors product, and
products brand value.
The market share of a product depends on the price of the product and perceived value of the
product. One can reduce price or increase perceived value to increase the market share .
Reduction of price may not always be a best option; reduction of price leads to more that
proportionate decrease in profits.
Pricing could be done considering historical pricing , competitors cost , own cost .
Pricing Tactics
Advertisement / Promotions
There are different channels through which Marketing Communication takes place
Advertisements, Promotions , Public Relations and Direct Mailing. It should be integrated marketing
communication.
Product manager needs to get involved in planning of budget for advertisements and its objective ,
the actual design is done by ad agency .
The ad should be able to increase the recall value, awareness, trial rates, repurchase rates
Promotions to convert the prospective customer to actual customer, it is not to create awareness, it
is for conversion.
Promotions budget are generally higher as compared to Ad, but this might not be a good idea.
Promotions do not create long term impacts, they are always short term.
Promotions can be of 3 types Customer Promotions, Trade Promotions and channel promotions
Lot of promotion budget goes into maintaining of coupons and its management
Control Measures
Sales Analysis:
Get into details of sales of each region, different customers segments, and different products and
see which is profitable, which has more growth prospectus, which needs to be dropped, a detailed
analysis based on sales data.
Variance Analysis:
Basically compute the variance of actuals versus planned. Variance of sales, impact of
advertisements, impact of marketing efforts, segment analysis, etc
Pre Sales:
Liaison between Sales and delivery team, need to have technical and business skills.
Basically understand the problem of customer , get clarity wherever required , setup clear tasks
allocations with architects , project managers and domain specialists , work with all of them to get
RFI and RFP.