Comprehensive Exam 2008 Prof M C Rashid Khan [email_address] Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

Prof M C Rashid Khan

[email_address]

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. Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

. 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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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. Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in 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

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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. Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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. Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

“ 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. Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 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: Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

“ 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 Marketing Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in Inability to maintain the desired price ,product quality in the global market. Rapid change in technology and incapability to cope up with it. considering to increase the cost of existing product by changing its pattern and design Replace the existing product anticipating the shortage of raw materials as per the government changed business policies.

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

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

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

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

Bi Marketing Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in “ 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.

“ 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. Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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. Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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. Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 . Selecting the positioning concept (i.e, what is important to the target markets) Design dimension and features that most effectively convey the position ( brand name, a slogan, the appearance etc) Coordinate the marketing mix components to convey a consistent position ( consistently conveying the same positioning of marketing mix) Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

Positioning is the act of fixing the locus (place) of the products in the minds of the target customers .

Selecting the positioning concept (i.e, what is important to the target markets)

Design dimension and features that most effectively convey the position ( brand name, a slogan, the appearance etc)

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. Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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” Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

“ 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 : Product selection(Customization /standardization) Market selection Setting the price Choosing the distribution system (company sales force distributors, agents , franchise out let, wholesale , retail) Communication strategy (Print and television advertising, direct mail, trade show, sampling, telemarketing, point of sales displays) Plant location Technical service Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

Marketing strategy : a firm’s overall program for selecting and satisfying a target market

Elements of Marketing strategies :

Product selection(Customization /standardization)

Market selection

Setting the price

Choosing the distribution system (company sales force distributors, agents , franchise out let, wholesale , retail)

Communication strategy (Print and television advertising, direct mail, trade show, sampling, telemarketing, point of sales displays)

Plant location

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 . Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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. Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

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 Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

Income, production and employment fall

Reduced demand for goods and services

Recession Marketing Strategies Improve existing products Introduce new products Maintain customer services Emphasize top-of -the line products and promote product value Prof M C Rashid Khan , mcrashidkhan@yahoo.co.in

Improve existing products

Introduce new products

Maintain customer services

Emphasize top-of -the line products and promote product value