Professional Documents
Culture Documents
Management
MBA II Semester
Liberalized Economy
Assumptions:
Assumption:
Companies not only produce the product but also try to convince
customers to buy them.
Assumptions:
If consumers are left alone they will ordinarily not buy enough
of Organization's products. and
Assumption:
Involves:
Customer Orientation.
Focus:
Customer is important.
Sales:
An activity which involves order taking and delivery of
Products. In the process it builds goodwill, generates
Demand and does problem solving
Advertising:
Value
Price Service
(Low, Competitive) (After Sales, Embedded, Extra Efforts
Customers Reflects in the perceived tangible and intangible
benefits offered by the product and its cost to
the customers.
Self
Actualisation
Esteem
Social
McDonalds Canteen
Physiological
Peter England Local Brand
3 Additional Tools:
Functions of Research:
Marketing Research
Functions of Exchange:
Selling
Salesmanship
Advertising
Pricing
Financing
Insurance
Analysing Marketing Environment:
Marketing Environment
External Internal
- Company Image
- Location
Macro Micro - R&D Capability
Economic Conditions - Customers -Financial Capability
Political and Legal
Demographic - Intermediaries -Human Resource
Competition - Suppliers -Production Facilities
Technology
Economic Conditions:
Business Cycle
Purchasing Power of Customers
Inflation
Interest Rates
Business Cycle
Recession
Recovery
Prosperity Depression
Legal and Governmental Factors:
Political Leadership
Stability of Government
A Premium on Time:
Paucity of time
Attitude towards gaining more free time
Convenience
Competitive
Environment
Customers:
- Needs
- Purchasing power
- Buying Behaviour
Suppliers:
- Raw Materials / Finished Goods
- Cooperative Relationships
Intermediaries:
- Value Creation; facilitating organisations
- Channels of distribution
Analysing Internal Environment:
Company Image;
Location;
Production Facility;
R & D Capability;
Financial Resource;
Human Resource;
Developing Marketing Strategies
Potential Market;
Assumptions;
1. People have similar characteristics and wants for a
product category.
Measurable;
Accessible;
Substantial;
Actionable;
Differentiable;
Concentration Strategy:
Segment A
Marketing Segment B
Mix
Segment C
Segment D
Multi-segment strategy
Marketing
Mix Segment A
Marketing Segment B
Mix
Segment C
Marketing
Mix Segment D
Bases for segmenting Markets.
knowledge
attitude
use
response to a product.
Occasions: Life events, transitions, festivals
Benefits: people vary in the benefits they seek from the
same product
User Status: non users, ex-users, potential users, first time
Users
Usage Rate: light, medium and heavy usage.
Loyalty Status: Hard core, split, shifting, switchers.
Attractiveness of a Market Segment
Size of the segment
Growth Rate of the segment
Competition in the segment
Brand Loyalty of existing customers
Required market share to break even
Whether the company can offer superior value to the
customers
Impact of catering to the specific segment on companies
image
Access to distribution channels
Identifying Target Markets.
Alternative Strategies
Narrow Coverage
Broad Coverage
Differentiated Marketing
Micro Marketing
Undifferentiated Marketing
Single Segment Concentration / Concentrated Strategy:
M1 M2 M3 M4
P1
P2
P3
Selective Specialisation Strategy / Differentiated Strategy:
Multiple segments catered.
Different Marketing Mix to different segments.
Product itself may or may not be different.
Some of the Marketing Mix Tools may vary.
M1 M2 M3 M4
P1
P2
P3
Product Specialisation:
M1 M2 M3 M4
P1
P2
P3
Market Specialisation:
M1 M2 M3 M4
P1
P2
P3
Full Market Coverage:
M1 M2 M3 M4
P1
P2
P3
Benefits of Segmentation
d. Image;
More
Marginal Benefits
Same Loosing Proposition
Proposition
Loosing Loosing
Less Proposition Proposition
Price
4. Developing a Positioning Statement
Reflected in;
Need Recognition:
Target Segment:
Solution:
Concept:
Differentiation:
5. Communicating and delivering the chosen position
Same
Less
Single Benefit Positioning: rare to find in intense
competition
Why Repositioning ?
1. Under Positioning: Vague idea about the brand.
Tanishque
It is important to know :
Customers
Disposition
to Buy
Aspirational Groups
Dissociative Groups
Opinion Leaders;
Family : Persons related by blood, marriage or adoption who
reside together.
Consumption Roles:
Influencers;
Deciders;
Buyers;
Users;
Maintainers;
1. Bachelor Stage
2. Newly Married Couples
3. Full Nest I
4. Full Nest II
5. Full Nest III
6. Empty Nest I
7. Empty Nest II
8. Solitary Survivor
At each stage of Family Life Cycle a person behaves
differently; consumption patterns are also shaped up
accordingly.
Roles and Status:
Brand Personality:
4. Psychological factors: Motivation, Perception, Learning and
Beliefs and Attitude.
1. Selective Attention
2. Selective Distortion
3. Selective Retention
Learning: involves changes in an individuals behavior arising
from experience.
the consumer does not pass through all the stages before
purchasing a product.
Information Search
Personal, Commercial,
Trying to determine what's available. Experimental
Evaluation
Eliminating products/services/companies
and deciding who's best.
Purchase
Actually buying your product/service
Evaluation of
Alternatives
Purchase
Intention
Attitudes of Unanticipated
Others situational Factors
Evaluation of
Alternatives
Purchase sub-decisions:
Brand Decision
Vendor Decision
Quantity Decision
Timing Decision
Payment Methods