Professional Documents
Culture Documents
• Evolution of Marketing
The Exchange Concept
The Production Concept
The Product Concept
The Selling Concept
The Marketing Concept
A shift in orientation:
• From Production to Marketing
• From Product to Customer
• From Supply to Demand
• From Sales to Satisfaction
• From Internal to External
Marketing is the Anticipation, Management and Satisfaction
of Demand through the Exchange Process.
The Pr
Traditi
Custom
Chart
Value Proposition: The set of benefits or values a company
promises to deliver to consumers to satisfy their needs.
The firm can enhance value by adjusting any of the elements
• Increasing the functionality of the product.
• Reducing the price.
• Giving better service support.
• Giving the customer easy access to the product.
• Offering beneficial communication.
1. Value selection
2. Value creation
3. Value communication
Making value proposition
4. Value enhancement
Product:
Characteristics of Product:
1. Variety
2. Quality
3. Design
4. Features
5. Brand name
6. Packaging
7. Services
The core or basic constituent
Associated Factors
Product Classification
• Convenience Products
• Shopping Products
• Specialty Products
• Unsought Products
• Product depth.
Brand Extension:
1. Line Extension
2. Category Extension
3. Umbrella Branding
4. Brand Rejuvenation
Competitive Grow
• Diversified Growth
– Growth occurring when new products are developed
to be sold in new markets
– Advantage of diversified growth is the spread of risk
across a number of markets
– Diversification allows for a wider use of managerial,
technical, and financial resources
Price
• Price is the sum of all the values that consumers
exchange for the benefits of having or using the product
or service.
Why is it so dangerous?
1. Internal Factors:
Marketing Objectives
Marketing Mix Strategy
Costs
2. External Factors
Pricing Objectives :
• Market share, Pricing objectives used to increase or
maintain market share.
• Profit
• Survival, accept short term losses necessary for survival
• Customer satisfaction
Pricing Mechanism:
Cost –Based Pricing:
• To maximize the profit on short and medium term
• In this the selling price of the product is fixed by adding a margin
to the cost price
Psychological Pricing:
Promotional Pricing:
Discount Pricing:
Cash
Quantity/Volume
Seasonal
Cost-Based Versus V
Cost-Based Pricing
Skimming pricing:
Product
Product
• The practice of ‘price skimming’ involves charging a
relatively high price for a short time where a new,
innovative, or much-improved product is launched onto a
market.
• The objective with skimming is to “skim” off customers
Cost
who are willing to pay more to have the product sooner;
Price
• Consumers demand must be inelastic.
Price
• This type of pricing structure works very well for products
that are in demand or where there are few competitors -
electronic equipment for example
Penetration Pricing:
Value
Value
• Price reduced compared to competitors to penetrate into
markets to increase sales.
• This type of pricing is used for products identified as
being in the "introductory" stage of the product life cycle
to enable the product to get a foothold in the market.
• It helps the firm for good coverage of the market
Basic principles of Pricing:
Place:
Marketing Channels:
Time utility
Place utility
Possession utility
Typical marketing
consumer product
Typical marketing
industrial, business
Agents:
• Mainly used in international markets
• Commission agent - does not take title of the goods. Secures
orders.
• Stockist agent - hold ‘consignment’ stock
• Control is difficult due to cultural differences
• Training, motivation, etc are expensive
Retailer:
• Franchiser?
Who gives the authority, and gets fee /royalty
• Franchisee?
Gets the authority to sell
• It is one type of exclusive retailing
• Retailing cum marketing
Benefits of franchiser:
COMMUNICATION:
Promotion:
Communication By:
• Publicity
By:
Sponsorship
Event management
PR
• Advertising:
• A paid form of non personal presentation and promotion
of ideas ,goods, or services by an identified sponsor.
o A paid form of communication
o A sponsor is identified
o Tries to persuade or influence the consumer to do
something
o Conveyed through mass media
o Reaches a large audience
o Is nonpersonal