Module – 1

How to make presentations

• Start with the end in mind• Know your audience as well as possible

• Content is very important• Keep it simple

• Outline your content• Have a clear and sound structure

How To Speak so that People want to listen

“Human voice is the most powerful sound in the world”

-Julian Treasure

7 deadly sins of speaking

•Gossip• Judging•Negativity•Complaining•Excuses•Exaggeration•Dogmatisim

HAIL•Honesty - to be clear and straight

•Authenticity - to be yourself

•Integrity - to be your word

•Love - to wish them well

This tool box change the way you Speak

Register Pace Timbre Pitch Volume Prosody

Module – 2

UNDERSTANDING MARKETING MANAGEMENT

What is Marketing?

• Marketing is Meeting needs Profitably

• Definition: Marketing is the activity, Set of Institutions and process for creating, communicating , delivering and exchanging offerings that have value for customers, clients, partners and society at large

What is Marketed?• Goods• Services• Events• Experiences• Persons

• Places• Properties• Organisations• Information• Ideas

Core Marketing concepts• Need, Want , Demand• Target markets – It is set of customers we decided to do marketing• Positioning• Segmentation – It is dividing a broad target market into

subsections• Offerings • Brand – It is an offering from known source• Value – It is combination of Quality, Service and Price• Satisfaction – It defines product performance in relation to

expectations

Updating PMarketing Mix 4 Ps

Marketing mix

place

product

price

promotion

Modern Marketing Management 4 Ps

Marketing mix

people

process

programs

performance

DEVELOPING MARKETING STRATEGIES AND PLANS• Defining the corporate mission – Short, memorable and meaningful • Establishing strategic business units • Assigning resources to each strategic Business unit• Assessing growth opportunities – Intensive growth, integrated

growth, diversified growth

Business Strategic unit Planning Process

Swot analysis Goal formulation Strategy Formulation

Program formulationImplementationFeedback and

control

ASSESING MARKET OPPURTUNITIES AND CUSTOMER VALUE

Components Of Marketing Information System• Internal records – order payment cycle,sales

information, data mining and ware housing• Marketing Intelligence System supplies the happening

data• Collecting Marketing Intelligence on Internet and

communicating and acting on marketing Intelligence• We have to communicate and act on Marketing

Intelligence closely co-ordinating the decision making process

Analysing the Macro Environment

•Demographic Environment•Economic Environment•Sociocultural Environment•Natural Environment•Technological Environment•Political-legal Environment

Fore casting and Demand Measurement• Market Potential is the limit approached by market

demand as industry marketing expenditures approach infinity for an environment• Total market potential = Potential number of buyers

*Average quantity purchased by a buyer * Price• To measure the market potential we can use Multiple-

Factor Index method and Market-Build up Method• We should forecast the future demand by using

intentions of buyers, composite of Salesforce opinion and expert opinion

The market Research Process

Defining the problem and research objective

Develop the Research Plan

Collect the Information

Analyse Information

Make Decisions

Creating Customer Value and Relationships

Traditional Organisational Chart

Top Management

Middle Man

Frontline people

Customer

Modern Customer Oriented Organisational Chart

Customers

Frontline people

Middle Man

Top Management

Maximizing Customers Lifetime Value• Customer Profitability Analysis is conducted with tools of accounting

technique called Activity Based Costing• Don Lehmann and Sunil Gupta recommended the following formula CLV= - ACPt = Price paid by customer at time tCt = Direct cost of serving customerRt = Probability of customer repeat buying at time tAC = acquisition cost i= discount rate

Customer Relationship Management (CRM)• CRM is the process of carefully managing detailed

information about individual customers ‘touch points’ to maximize loyalty• CRM includes personalizing marketing, customer

empowerment, customers review and recommendations• Building loyalty include interacting with

customers ,Developing Loyalty Programs• We should utilise customer data base and manage Data

Ware Houses and Data Mining

Analysing customer markets

What influences Customers Behaviour ?

Cultural Factors Social Factors Personal Factors

Six great traits that characterize all great ideas

“SUCCESS”Simple – find a core ideaUnexpected – Grab peoples attention by surprising themConcentrate – make sure any idea can be grasped and remembered laterCredibility – give an idea believabilityEmotion – help people see importance of ideaStories – empower people to use idea through narratives

The buying Decision Process

Problem Recognition

Information Research

Evaluation of Alternatives

Purchase Decisions

Post purchase Behaviour

Analysing business markets

What is organisational Buying ?

It is the decision making process by which formal organisations establish the need for purchased product and services and identify, evaluate and choose among alternative brands and suppliers

Stages of Buying Process• Problem recognition•General Need Description and Product Specification• Supplier Search• Proposal Solicitation• Supplier Selection•Order routine Specification• Performance Review

Managing Business to Business Customer Relationships• Close relationships are driven in part of supply chain

management ,early supplier involvement and purchasing alliainces• Four factors such as availability of alternatives,

importance of supply, complexity of supply and supply market dynamics influence development of relation between business partners• Business relationships have risks and opportunities

involved in it which are to be managed• Many companies are using new technologies to improve

the way they do business with business to business customers

CHOOSING VALUE

Bases for segmenting customers

• Geographic Segmentation – segmenting by region, city, rural and semi urban• Demographic segmentation – segmenting by age,

family size, gender, income, occupation, education• Psychographic segmentation – segmenting by life style,

personality• Behavioural Segmentation – segmenting by occasions,

benefits, user status, user rate, loyalty status, readiness stage, attitude towards product

Major segmentation variables for business markets• Demographic – industry, company size, location• Operating Variables – technology, user status, customer capabilities• Purchasing Approaches – purchasing function organisations, power

structure, nature of existing relationship, purchasing criteria• Situational Factors – urgency, specific application, size of order• Personal Characteristics – buyer seller similarity, attitude towards risk,

loyalty

Competitive dynamics

• Expanding total Market Demand by attracting new customers and increasing the usage of product• Protecting Market Share by using strategies suitable for business such

as proactive marketing or defensive marketing• We should choose a general attack strategy against our competitors• Market nichers have to use innovative strategies to tap its customers

and sustain in the market against competition

Product Life Cycle

• Introduction – A period of slow sales growth as the product is introduced in the market• Growth – A period of rapid market acceptance and

substantial profit improvement• Maturity – A slowdown in sales growth because the

product has achieved acceptance by most potential buyers• Decline – Sales show a downward drift and profit erodes

Marketing in an Economic Downturn• Explore the upside of increasing investment during downturn•Get close to customers in tough times as they change what they want • Review budget allocations at the time of economic downturn• Put forth the most compelling value proposition during downturn• Fine tune brand and product offering during downturn

Crafting the brand positioning

• Identifying Optimal Point of Difference(POD) and Point of Parity (POP) between your product and your competitors is important in crafting brand positioning• Choosing PODs and POPs by using hypothetical Perpetual maps• Brand Mantra is an articulation of the heart and soul of the brand• Brand Mantras are short three to five word phases that capture the

irrefutable essence or sprit of brand positioning

Differentiation Strategies• Means of differentiation : Employee differentiation Channel differentiation Image differentiation Service differentiation Emotional Branding :Mystery adds complexity of relationships and people are naturally drawn to knowSensuality keeps five senses alert for sensory stimulusIntimacy means empathy, commitment , passion

Positioning and Branding Small Business• Creatively conduct low cost marketing research• Focus on building one strong brands based on key associations• Employ a well integrated set of brand element• Create buzz and a loyal brand community• Leverage as many secondary associations as possible

Creating brand equity“Brand is a name, term, sign, symbol or design or combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from competitors”Brand equity is the added value endowed on product and services which may be reflected in the way customers feel, think, and act

Brand Equity Models

Strong relationships Nothing else beats it

Does it offer some thing

Can it deliver?

Does it offer me something

Do I know about it Weak Relationshippresence

relevance

performance

advantage

bonding

Brand Resonance Model

Resonance

JudgementsFeelings

PerformanceImagery

Salience

Choosing Brand Element

• Memorable – How easily do customers recall and recognise brand element• Meaningful – Is the brand element credible?• Likable – How aesthetically appealing is the brand

element ?• Transferable – Can the brand element can introduce

new products in same or different categories ?• Adaptable – How adaptable and updatable is the brand

element?• Protectable – How legally protectable is brand element ?

DESIGNING VALUE

Setting product strategy

• Product classification: Products falls into three groups according to durability and tangibility• Nondurable goods are tangible goods consumed in few

uses: shampoos, soft drinks• Durable goods are tangible goods normally survive

many uses : fridges, machine tool, clothing• Services are intangible, inseparable, variable and

perishable products that normally require more quality control, supplier credibility

Product and services differentiationProduct differentiation• Form• Features• Customisation• Performance quality• Conformance quality• Durability• Reliability• Repairability

Services differentiation• Ordering Ease• Delivery• Installation• Customer Training• Customer Consulting• Maintenance and Repair• Returns

Product and Brand Relationship

• The Product Hierarchy stretches from basic needs to particular items that satisfy those needs• Product system is a group of diverse but related items that function in a compatible manner• Product line analysis and product line lengths are important factors that effects the brand• Co Branding and Integrated branding are important features to be considered

Developing price strategies & programs• Price is not just a number on a tag. It comes in many forms and performs many functions • A changing price environment let you get instant price comparisions from thousands of vendors•Many customers use price as a quality indicator• Image sensitive pricing is effective with ego-sensitive products such as perfumes, expensive cars and designer clothing

Steps in setting a price policy

• Selecting the price objective• Determining Demand• Estimating Costs• Analysing Competitors Costs, Prices and Offers• Selecting a Pricing Method• Selecting Final Price

Initiating and Responding to Price Changes• Initiating price cuts • low quality trap : The customer assumes quality is low• Fragile market share trap : Low Price buys market share

but not loyalty • Shallow pocket trap : Higher priced competitors match

lower prices but have longer staying power because deeper cash revenue• Price war trap : Competitors respond by lowering their

prices even more triggering a price war

DELIVER VALUE

Designing & managing integrated marketing channels•Channel Design decision :•Analysing Customer Needs and Wants•Establishing objectives and Constraints• Identifying Major Channel Alternatives•Evaluating Major Channel Alternatives

Channel-Management Decisions

•Selecting Channel Members•Training and Motivating Channel Members•Evaluating Channel Members•Modifying Channel Design and Arrangement•Channel Modification Decision•Global Channel Considerations

Channel Integration and Systems

• Vertical Marketing Systems : Corporate VMS Administered VMS Contractual VMS• Horizontal Marketing Systems• Integrating Multiple Channel Marketing Systems• Similarly conflicts are also divided into Horizontal,

Vertical and Multi Channel Conflict

Managing retailing, Wholesale & logistics• Retailing includes all the activities in selling goods

directly to final customer• Types of Retailers :• Store retailer – self service ,self selection ,limited

services, Full services• Nonstore Retailer -- Direct selling ,Direct marketing,

Automatic vending, Buying Services• Corporate Retailing and Franchising

Wholesaling•Wholesaling include activities in selling goods or services to those who buy for resale or business•Merchant Wholesalers• Full-service Wholesalers• Limited-service Wholesalers• Brokers and agents•Manufacturers and retailers branches and offices• Specalized wholesalers

Market Logistics• Market logistics include planning the infrastructure to

meet demand then implementing and controlling the physical flow of materials and final goods

M=T+FW+VW+S• M= total market logistic cost of proposed system• T= total freight cost of proposed system• FW= total fixed warehouse cost of proposed system• VW= total variable warehouse costs• S= total cost of lost sales due to average delivery delay

COMMUNICATING VALUE

Marketing Communication Mix

• Advertising• Sales Promotion• Events and Experiences• Public Relations and Publicity• Direct Marketing• Interactive Marketing• Word of Mouth Marketing• Personal Selling

Developing Effective Communications

Identify target audience

Determine objectives

Design communications Select channels

Establish Budget

Decide on Media Mix Measure results

Manage integrated marketing

communication

Deciding the Marketing Communication Mix• Advertising : pervasiveness, amplified expressiveness, control• Sales Promotion :ability to attention getting, Incentives , invitation• Public Relationship and Publicity : High credibility, Dramatization• Events and Experiences : Relevant, Engaging, Implicit• Direct and Interactive Marketing :Customized, Up to date, Interactive• Word of Mouth Marketing : Influential, Personal, Timey• Personal Selling : Personal interaction, Cultivation, Response

Managing mass communication

MissionSales goals

Advertising objective

Money

Factors to considerStages in PLC

Market Share and consumer base

MessageMessage generationMessage evaluationMessage execution

MediaReach,frequency,impact

Geographic media allocation

MeasurementCommunicatio

n impactSales impact

Sales Promotion

•Major consumer Promotion tools : Samples, Coupons, Cash refund offers ,Price packs, Premiums, Frequency Programs, Prizes, Patronage awards, Free Trails, Product warranties, Tie in Promotions, Cross Promotions•Major Trade Promotional Tools : Price off, Allowance, Free

goods•Major Business and Sales Force Promotion Tools : Trade

shows and Conventions, Sales Contests, Specialty Advertising

Module – 4

MOUNTAIN MAN BREWING

COMPANY(MMBC)BRINGING THE LIGHT BRAND

• Chris Prangel a recent MBA has come to manage marketing operation of MMBC• Light beer sales has increased by 4% from past 6 years• Premium beer sales has decreased by 4% from 6 years

Mountain Man :The Company and Brand• In 2005 MMBC was generating 50 million dollars revenue and is

selling 520000 barrels of beer• $2.25 for 12 ounce serving of draft beer and $4.99 for a pack of six in

local convention store• Its core drinkers are blue collar men , middle to lower income men

over age 45• Best beer of Virginia in 2005 straight 8 years• Best Beer or Indiana• Mountain Man has its sales in East central Region

Mountain Man situation in 2005

• Mountain Man is generating sale of $75 billion in 2005• The share of East central region in total U.S. beer sales is 18.3%• Light Beer has accounted to 50.4 % in 2005 compared to 29.8% in

2001• Mountain Man is know as West Virginia Beer and is recognised for its

toughness and bitter taste• Mountain Man has relied on Grass Root Marketing to Spread the beer

Challenges ahead for Mountain Man Light• The variable costs per barrel of Mountain Man Light is $4.69 more

than its premium beer• Oscar Prangel has fears that Mountain man Light can cannibalize the

sales of Mountain Man Langer• The advertising agency estimated creating a brand awareness levels

of 60% in East central region would cost $750000 in a intensive six month campaign.• This is top of annual incremental SG&A which is $900000

Chris decision

• From the financial projections he had done a few week before Mountain Man Light is expected to grow at least .25% of total market share every year and light beer is to grow by 4% in regional market Share• Chris looked at projections for Mountain Man lager which he obtained

to be 2% loss till 2010• Chris is not able to decide whether to launch Mountain Man Light or

get with some strategy to improve sales of Mountain Man Lager

The Spring Field Nor’Easters

Maximising the revenues in the Minor League

• Larry Buckingham is Marketing Director of Nor’Easters• Jimmy Mercante is owner and President of club and Bob Cortez the

General Manager• Before finalising the ticket rate Buckingham wanted undergo a survey

and keep the announcement made by Falcon in mind• Bucking ham has experience in marketing events but he is doing it for

sports for the first time

The city of Springfield

• It is the third largest city in Massachusetts and a median income of $37,800 for a family of three• 25% of families live below poverty line• 60% of families has children younger than 18 years of age

Minor League Baseball

• In 2008 there were 176 minor league baseball teams in U.S competing through 19 regional leagues• The teams are located in small towns, sub-urbs of large cities where

player development program• The major league teams provided funding for salaries of players and

bat ball expenses• Spring field stadium has 3600 seats under open air arena, 2000 seat

bleachers and 1600 grand stand seats

Developing the Sample to Survey

• Sample of 5000 names taken from Springfield census tracts of households with income above poverty line at $90 per thousand names• 5000 names were obtained from mailing list of four sports related

organisations at $125 to $130 per thousand names• The sample was heavily weighted towards the house holds with

children under 18 years of age and is 64%

Competing against Free

• Even companies with formidable assets are slow to fend off free product competitors .The reason is the ubiquity of the profit center structure and mind set• Assessing the threat• Choosing whether and when to respond• Offer a free better• Rethink Profit Centers

How Big a Threat is Free Competition

Immediate Threat

• Launch free product immediately

Business Model Threat

• Change Business Model

Minor Threat

• Monitor Situation

Delayed Threat

• Delay Launch of free product

Four Tried and True Strategies

• Up-Sell – Introduce a free basic offering to gain wide spread use and then change for a premium version• Cross -Sell – Sell other products that are not directly tied to free

products• Charge third Parties – provide a free service to user and charge third

party for access to them• Bundle – offer a free product or service with a paid offering

“Created by Sai Srujan,RGIPT

RaeBareli, during an internship by Prof. Sameer Mathur,IIM

LUCKNOW”