Marketing Comprehensive Examination 2008, Clinical Marketing, Bi-marketing, Crazy marketing, role of...

Comprehensive Exam 2008

• Prof M C Rashid [email protected]

1Prof M C Rashid Khan , [email protected]

Crazy Marketing

• Creating high curiosity among the customers through innovative communication mix strategy (PR, Advertisement, Promotion, publicity etc).

• Providing innovative and break through product .• Generate high demand in less time for a product .• Using seduction and adventurous stunts in ads • Applying loss leader strategy in pricing • Making the product available everywhere through

out 24/7.


Connected Marketing• It is umbrella term for viral , buzz and word of mouth

marketing .• Any promotional activities that uses word of mouth

connections between people , whether digital or traditional as communication media to stimulate demand.

• Example: Connected customers• Direct friends• Friends-of-friends• New connectivity tools: Web, GSM, SMS, Messenger,

Blogs


Green Marketing

• . Marketing efforts to produce, promote, and reclaim environmentally sensitive products are called green Marketing


Example of Green marketing • Taj Hotel prides in being eco-friendly • It uses herbal toiletries , no smoking designated rooms,

stationary from recycled papers and educating guests on the need to protect Mother earth by using less detergents.

• Avoided the poly-utherane bags • DTC uses CNG after court order• Wastage management my MCD and corporate • Philips introduces energy saving fluorescent bulbs• McDonald wastage reduction and un-bleached paper

carry out bags


Ethical Marketing An emergent and growing marketing philosophy

Companies continually strive to find morally effective ways to attract and retain customers

Handling marketing in a way that contributes to the well being of society, do what is right , obey laws,

Companies not only consider its customers and its profitability but also the good of the wider community (local and globally)

It Leads to better market share and profitability

Consumer protection and curbing potential harm.

Example of unethical marketing : high price, poor service, deceptive practices, high pressure selling , privacy invasion, producing shoddy and unsafe products , creates barriers to other players to entry etc.


Unethical Practices


Marketing Mix

• Marketing Mix is particular combination of the products , its price , the method to promote it and the ways to make the product available to the customers

• Based upon its understanding of customers a company develop its marketing mix of product , price , place and promotion

• Managers must manage these 4p’s in a way that they satisfy customers needs better than the competitors


What Is a Product ?

• Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Kotler.

• A product is a total package of attributes the customers obtains when making a purchase. … Quelch

• A product is any offering by a company to a market that serves to satisfy customer needs and wants.

• It can be an object, service, idea, etc


Product • Product decision involves deciding what goods or services

should be offered to customers• The products or services serves the basic needs of the

customers• It provides the primary value to the customers• As technologies and tastes changes product become out of

date and inferior to the competition• Company must replace them with new designs and features

that customers value • Products decisions involves choices regarding brand , names ,

warranties , Packaging and services


Price• Price is the cost that customer is willing to bear for the

product• Payment period and credit terms also affect the real price

received in any transaction• Change in price can damage customer perceptions about the

value of the product• If price is reduced customers may start regarding it as an

inferior quality product• Higher price may also bring negative impact


Promotions• Decisions have to be made with respect to promotion mix ,

advertising , personal selling , sales Promotion, exhibition, sponsorship and public relations

• By these means the target audience is made aware of the existence of product and the benefits that it confers to customers

• Example: an expensive product like machinery with limited number of customers should be promoted through personal contacts between the buyers and sales persons


Place

• It involves decisions concerning distribution channels to be used

• Location of outlets• Method of transportation• Inventory level to be held• Product should be available in right quantity

at right time and place


Distribution Channel

• Independent intermediaries , such as retailers , wholesales and distributors through which goods passed onto the customers

• They provide cost effective access to the market place

• Company has to manage and structure good relationship with intermediaries


Function of distribution channel

• Transfer product from manufacturer to the customers

• Pass information from manufacturer to the customers

• Retrieve payments from the customers to the manufacturers


Segmentation

• Segmentation is the process of clubbing together similar customers in a group so that thy can continue to segments its market into smaller and more homogeneous (same) groups.

• It can be used as a vehicle for entering a market.


Target Market

• A company may not have the resources and the capabilities to serve all the segments

• It may decide to serve one or more segment depending upon its capabilities and resources

• The segment that a company chooses to serve is called target market


Positioning

• Positioning is the process of creating a distinct offer and communicating it to the customers

• The process of positioning is continuous in nature and it should always be proactive because new needs and competitors keep cropping up.


Marketing RedefinedMarketing Redefined

“Marketing is a process of satisfying customer’s demand for a product or service or solution beyond his / her expectations , taking into account customer value or value addition to customer and social responsibility as compared with a competitor.”

-- Dr. P. L. Maggu


De-Marketing

• Marketers attempt to reduce the demand for a product when the demand for the product is greater than the manufacturer's ability to produce it.

• Demarketing strategies involve raising prices, reducing advertising or promotion activities, or eliminating product benefits.

• Demarketing does not aim to destroy the demand but only to lower it to make it level with the ability to produce the product.

• Eg: An oil company is faced with an ever increasing demand. The marketer here has to de-market oil by educating motorist on the importance of conservation of oil.


Dual MarketingDual Marketing “When a new product in being marketed and existing old

product is being demarketed using a company’s goodwill for the old product in introducing the new one by withdrawing the old product at the same moment.” Dr. P. L. Maggu

This type of situation has been designated as the concept of dual marketing.

The business situation in which the concept of dual marketing can be visualized for example:

A business situation in which a company uses its brand name to introduce a new product in place of the existing product or a substitute product by withdrawing it from the market on account of the following reasons:


Dual MarketingDual Marketing

a) Inability to maintain the desired price ,product quality in the global market.

b) Rapid change in technology and incapability to cope up with it.

c) considering to increase the cost of existing product by changing its pattern and design

d) Replace the existing product anticipating the shortage of raw materials as per the government changed business policies.


Bi MarketingBi Marketing “When a company markets a product as a major

product and introduces a new product as a minor product the cost of which may be included in the major product and further the minor product is not being produced by any other competitor . Minor product is just a sample product which after some time may be inducted as a major product . This situation has been designated here as Bi-Marketing.” Dr. P. L. Maggu

• Example: A business situation in which a company is introducing a gift product along with the major (main) product.


Customer Value Maximization• Providing superior product than its competitors• Customizing the product as per customer requirement• Communicating the customers about the benefits and

usage of the products and services.• Providing product at less price , value for money• Making the product available at the convenient locations• Giving customers full freedom for product and service

choice• Listening to the customers with empathy and solving their

problems immediately• Maintaining long term interactive relationship with the

customers.


Value Creating Process

Bring voice of the customer in the organization Develop a value proposition and competitive positioning based on

customers needs Integrating the product ,pricing, placement, and promotion policies to

deliver what the target market wants. Example: Godrej-GE provides inbuilt curd make in its 400 liter fridge. Example: Virgin Atlantic adds new service for no cost or negligible cost . Example: FedEx provides the details of assignments free of cost on its

websites and even mention name of persons who received the assignments.


STP of Rebook

• Segment : aiming at the high end segment of those with the income of Rs. 4 to 5 lacs

• Targeting the Urban marketing in the initial phase later focused on “B” category cities.

• Positioning : Initially Youths(boys and girls) especially sports loving individuals. Later young working women.


Segment strategy

• Geographic : region , state , city , rural ,urban• Demographic : Income, age , gender, family

life cycle, social class , education, occupation, ethnic back ground etc.

• Psychographic : Personality , lifestyle, values .• Behavioral : Benefits desired , user rate


Target Market Strategy

• Mass Marketing strategy • Example: Vitamin tables, soap , pen etc.• Single segment strategy(Niche marketing)• Example: Royal Royce , Ferrari, Mercedes , Apollo Hospitals

offering Cradle for pregnant omen• Multi segment strategy • Example: University offering course for Executive as well as

regular students. Evian bottled water targeting athletes as well as pregnant women and environmentalists


Positioning Strategies Positioning is the act of fixing the locus (place) of

the products in the minds of the target customers .i. Selecting the positioning concept (i.e, what is

important to the target markets)ii. Design dimension and features that most

effectively convey the position ( brand name, a slogan, the appearance etc)

iii. Coordinate the marketing mix components to convey a consistent position ( consistently conveying the same positioning of marketing mix)


Clinical marketing

• Concept 1 : Marketing under observation by the marketers /users.

• Example: Try to Know why a particular toy attracts most of the kids.

• Concept 2: Selling clinical research (psychological / medical R & D data ) to the target market.


What is Marketing strategy

• “A marketing strategy is a process that can allow an organisation to concentrate its limited resources on the greatest opportunities (to increase sales and profit) and achieve sustainable competitive advantage”


Element of marketing Strategy • Marketing strategy: a firm’s overall program for selecting and satisfying a

target market• Elements of Marketing strategies : 1. Product selection(Customization /standardization)2. Market selection3. Setting the price4. Choosing the distribution system (company sales force

distributors, agents , franchise out let, wholesale , retail)5. Communication strategy (Print and television advertising, direct

mail, trade show, sampling, telemarketing, point of sales displays)6. Plant location 7. Technical service


Market Driven• Market Driven : strategies begin with an unmet customer need . • Customers are known, they can be easily surveyed.• Their needs are explicit . We can test customer satisfaction with the

new product.• Example: Adding internet-enabling technology to a Palm PDA,

mobile handsets .• The role of marketing: • Carefully researching the unmet customers needs• Devising a marketing plan that effectively communicates the

availability of the incremental innovation at an acceptable price point and at a convenient distribution place.

• Motorola utmost focused on product and ignoring the customer interest in digital technology led the rise of its competitors like Nokia, Ericssion, Qualcomm .


Market driving• Strategy begin with a new technology .• Example; The Original Palm PDA, Lap top, I-Pod etc.• These types of products innovation is describe as breakthrough.• Customers need to be educated about their need , use , availability

of the product etc.• Qualitative Marketing research is used • Marketers need to research customers and their expressed and

latent needs.• Role of marketer is to• Create new customers• Company should keep on innovating the product and should not be

obsessed with the technologies. • Example: Palm PDA , replaced by Newton PDA of Apple.


Role of Music in Marketing

• It creates warmth and friendliness and foster healthy public relation

• The jingles increases the recall value of the product/service

• It provides aesthetic value and cerate soothing selling environment


What is Co-branding?

Use of multiple brand names together on a single product or service to the

mutual benefit of both brands


Role of co-branding in advertising

• It increase the visibility of the both the brands• It help to reduce advertisement costs• It widens the reach of its communication • It helps to maintain effective Public relation• It make promotion and publicity easier • It helps to improve Sales guarantee/security• It creates awareness among the mass about

the utility of the products


Recession

● Income, production and employment fall

● Reduced demand for goods and services


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Recession Marketing Strategies

● Improve existing products

● Introduce new products

● Maintain customer services

● Emphasize top-of -the line productsand promote product value

Prof M C Rashid Khan , [email protected]

Marketing Comprehensive Examination 2008, Clinical Marketing, Bi-marketing, Crazy marketing, role of...

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