Post on 06-Apr-2018
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Product and Concept
MarketingProduct:
Anything that can be offered to market that
satisfy a want or need
Concept of product
Benefit it Conveys
Attributes
Support Service
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ProductEg NirmaCore Product: is not physical productcleans the cloth
Actual Product : TangibleWashing Powder detergentAugmented Product: Non physical
After Sales service
Value AdditionFeedbackFree scrubber
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BRAND
Collection of experience in terms of benefits
which is important to him
Reebock / Adidas : Its Your experience with
product which will create impression on yourmind space
How to Secure a position in coveted space
ie, consumers perceptual space
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RATING
Amul
Nirma
LG
Idea
Nokia
How do you rate
these brands
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BRAND MANAGEMENT
Brand Management consists of :
Positioning
Brand Loyality
Brand Extention
Brand Portfolio
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PRODUCT LIFE CYCLECONCEPT
IMPORTANT POINTS TO BE NOTED
Products have a limited life cycle
Products sales pass thru different
stages
Each stage of lifecycles posesdifferent challenges and opportunities
Each stage requires differentmarketing, financial manufacturingand purchasing and resourcing
strategies
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Introduction stage
Slow/ erratic/ Period of LeavingVolkswagen
Strategy: Offensive (Innovative co. with R&D)Defensive (Wait and Watch)
Initiative (Chinese products,lowcost)
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MATURITY STAGE
Market saturation / market share/sales/ profit level off MARUTI
Strategy: Finding new avenues of
growth Improved efficiency for
growth
Rationilising of productlines/profitability
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DECLINE STAYS
Sales/ market show/ profit all decline
Maruti 800)
Strategy: Exit
: Maintain support to existing
customers
: Reduce investment
: Improve short-runprofitability
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MARKETING MIX
What is marketing mix:
Mixer of Ingredients
Effective blending of resources
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BASIC 4Ps
PRODUCT PRICE PLACE PROMOTION
Tangible good/serviceProduct hasPLC DesignTechnologyUsefulnessConvenienceValuesQuality
PackageBrandingAccessoriesWarrenties
StrategiesSkimmingPenetrationPsychologicalCost Plus loss leader
DistributionChanelRetailWholesaleMail OrderInternetDirect salesPeer to PeerMultichannel
AllCommunication AdvertisingPublic RelationPersonalsellingSalesPromotionEndorsements
User TrialsDirect MailingLeaflets
/PostersFree GiftsCompetitions
Joint Ventures
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EXTENDED MARKETING MIX (4 Ps)
PEOPLE PROCESS PHYSICALEVIDENCE /
ENVIRONMENT
Consumer Servive
Employees
Management
Culture
Customer Service
Especially relevant toService IndustriesHow are servicesconsumedLogistic flow ofService
Smart
Run down
Interface
Comfort
Facilities
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PRODUCT MIXSTRATEGIES For Leaders, Challenges, Follower
Designing Competitive strategiesdepending on SWOT
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A: Market Leader
MS/ Volume/Value:
GM was the leader cumulativeLosses
Toyota was leader in terms ofprofitability
Sustainable competitive advantages
Product Innovation Leader
Technology Leader
Cast Leader / Service Leader
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Market Leader should have Key Strategicactions:
Market expansion thru: New use/ moreusage/ Replacement demand
Defend share by profit innovation/Improve servicedistribution effectiveness/ reduce costimprove value chain Never neglect : Area/ Territory, cost
structure, customer Feed back/ Aftersales service
Increase sales when market rise isconstant
A rising tide raises all the ships inharbour
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B. MARKET CHALLENGER
Strong but not in dominant position
Targets not only leader but other andmale players too.
Pepsi targets Coke
Identify weakness in targets position
and attack and focus all resources at
this point
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Strategic Options:
1) Price discount/ cutting2) Line extention3) New products4) Product quality5) Improve Service6) Review distribution and service7) Cost Reduction
8) Intensify promotionAttack Strategies: Frontal, Encircle,Bypass, Guerilla
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C. Market follower
Imitation, viable, least resource cost
Strategic options:
1. Counterfeiter: Illegal / Unethical
2. Cloner: Copy everything but withslight variation
3. Imitator: Imitate leader but maintain
differentiation (Chinese/ Koraenproduct)
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D. Market Nicher
Select target market
Niche should be target enough to beprofitable and small enough to be
ignored by market leader
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Successful Niche Player
1. High value added industry with highmargin i.e., Sundarm Clayton
2. Highly focused on specific market
segment3. Market high end product/ service
with premium pricing strategy