Marketing Management

Slide 1: Think Marketing ! Produced by www.studyMarketing.org 1 www.studyMarketing.org

Slide 2: Contents 1. Marketing Mix and Key Marketing Activities 2. Developing Market Segmentation 3. Product Planning and Development 4. Promotion Mix : Advertising, Publicity, Personal Selling and Sales Promotion 5. Distribution Planning and Pricing Strategy If you find this presentation useful, please consider telling others about our site (www.studyMarketing.org) 2 www.studyMarketing.org

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Slide 4: Marketing Mix and Market Segmentation 4 www.studyMarketing.org

Slide 5: Marketing Credo There is only one valid definition of business purpose : to create a customer Peter Drucker 5 www.studyMarketing.org

Slide 6: Marketing Mix Product Price Target Market Place Promotion 6 www.studyMarketing.org

Slide 7: Key Marketing Activities Consumer Analysis Distribution Product Planning Planning Promotion Price Planning Planning 7 www.studyMarketing.org

Slide 8: Key Marketing Activities Examination and evaluation of consumer Consumer Analysis characteristics, needs, and purchase processes Development and maintenance of products, product assortments, product positions, Product Planning brands, packaging, options, and deletion of old products Outlines price ranges and levels, pricing Price Planning techniques purchase terms, price adjustments, and the use of price as an active or passive factor 8 www.studyMarketing.org

Slide 9: Key Marketing Activities Establishment of channel relations, physical Distribution distribution, inventory management, Planning warehousing, transportation, allocation of goods, and wholesaling Combination of advertising, publicity, Promotion personal selling, and sales promotion to Planning drive sales revenue 9 www.studyMarketing.org

Slide 10: Product/Market Matrix Existing Products New Products Market Product Existing Markets Penetration Development Market Diversification New Markets Development 10 www.studyMarketing.org

Slide 11: Product/Market Matrix • The firm seeks to achieve growth with Market existing products in their current market Penetration segments, aiming to increase its market share • Effective when the market is growing or not yet saturated • The firm seeks growth by targeting its Market existing products to new market segments Development • Effective when a local or regional business looks to wider its market, new market segments are emerging due to changes in consumer life-style/demographics, and innovative uses are discovered for a mature product 11 www.studyMarketing.org

Slide 12: Product/Market Matrix • The firms develops new products Product targeted to its existing market segments Development • Effective when the firm has a core of strong brands • The firm seeks growth by targeting its Diversification existing products to new market segments • Diversification is utilized so that the firm does not become overly depend- ent on one product line 12 www.studyMarketing.org

Slide 13: Market Segmentation The division of a market into Market different homogeneous groups of Segment consumers Should be: • measurable • accessible by communication and distribution channels • different in its response to a marketing mix • durable (not changing too quickly) • substantial enough to be profitable 13 www.studyMarketing.org

Slide 14: Types of Market Segmentation Based on regional variables such as Geographic region, climate, population density, and population growth rate. Based on variables such as age, gender, Demographic ethnicity, education, occupation, income, and family status 14 www.studyMarketing.org

Slide 15: Types of Market Segmentation Based on variables such as values, Psychographic attitudes, and lifestyle Based on variables such as usage rate Behavioral and patterns, price sensitivity, brand loyalty, and benefits sought 15 www.studyMarketing.org

Slide 16: Step in Planning A Segmentation Strategy Determining Developing Analyzing characteristics and consumer consumer needs of consumers group similarities and for the product profiles differences category of the company Establishing Selecting Positioning an consumer company’s appropriate segment (s) offering in marketing relation to plan competition. 16 www.studyMarketing.org

Slide 17: Product Planning and Development 17 www.studyMarketing.org

Slide 18: Products : Types of Goods Convenience Goods Shopping Types of Goods Goods Specialty Goods 18 www.studyMarketing.org

Slide 19: Convenience Goods • Those purchased with a minimum of effort, Convenience because the buyer has knowledge of Goods product characteristics prior to shopping • The consumer does not want to search for additional information (because the item has been bought before) and will accept a substitute rather than have to frequent more than one store 19 www.studyMarketing.org

Slide 20: Convenience Goods • Staples are low-priced items that are Convenience routinely purchased on a regular basis, Goods such as detergent, milk, and cereal • Impulse goods are items that the consumer does not plan to buy on a specific trip to a store, such as candy, a magazine, and ice cream • Emergency goods are items purchased out of urgent need, such as an umbrella during a rainstorm, a tire to replace a flat, or aspirin for a headache 20 www.studyMarketing.org

Slide 21: Shopping Goods • Those for which consumers lack Shopping sufficient information about product Goods alternatives and their attributes, and therefore must acquire further knowledge in order to make a purchase decision 21 www.studyMarketing.org

Slide 22: Shopping Goods • For attribute-based shopping goods, Shopping consumers get information about and then Goods evaluate product features, warranty, performance, options, and other factors. The goods with the best combination of attributes is purchased. Sony electronics and Calvin Klein clothes are marketed as attribute-based shopping goods • For price-based shopping goods, consumers judge product attributes to be similar and look around for the least expensive item/store 22 www.studyMarketing.org

Slide 23: Specialty Goods • Those to which consumers are brand loyal. Specialty Goods • They are fully aware of these products and their attributes prior to making a purchase decision. • They are willing to make a significant purchase effort to acquire the brand desired and will pay a higher price than competitive products, if necessary. • For specialty goods, consumers will not make purchases if their brand is not available. Substitutes are not acceptable. 23 www.studyMarketing.org

Slide 24: Services Rented- goods Service Owned-goods Type of service Services Non-goods 24 www.studyMarketing.org

Slide 25: Services Involves the leasing of a good for a specified Rented- period of time. Examples include car, hotel room, goods Service apartment, and tuxedo rentals Involves an alteration or repair of a good owned by Owned-goods the consumer. Examples include repair services service (such as automobile, watch, and plumbing), lawn care, car wash, haircut, and dry cleaning Provides personal service on the pan of the seller; Non-goods it does not involve a goods. Examples include accounting, legal, and consulting services 25 www.studyMarketing.org

Slide 26: Characteristics of Services • The intangible nature of many services makes the consumer's choice more diffi-cult than with goods • The producer and his or her services are often inseparable • The perishability of services prevents storage and increases risks • Service quality may be variable 26 www.studyMarketing.org

Slide 27: Product Life Cycle Growth Maturity Decline Introduction 27 www.studyMarketing.org

Slide 28: Product Life Cycle Characteristics Introduction Growth Marketing objective Attract innovators and Expand distribution and opinion leader to new product line product Industry sales Increasing Rapidly increasing Competition None or small Some Industry profits Negative Increasing Customers Innovators Affluent mass market Product mix One or two basic Expanding line models Distribution Depends on product Rising number of outlets Pricing Depends on product Greater range of prices Promotion Informative Persuasive 28 www.studyMarketing.org

Slide 29: Product Life Cycle Characteristics Maturity Decline Marketing objective Maintain differential (a) cut back, advantage as long as (b) revive, possible (C) terminate Industry sales Stable Decreasing Competition Substantial Limited Industry profits Decreasing Decreasing Customers Mass market Laggards Product mix Full product line Best-sellers Distribution Greatest number of Decreasing number of outlets outlets Pricing Full line of prices Selected prices Promotion Competitive Informative 29 www.studyMarketing.org

Slide 30: New Product Planning Product Concept Business Idea Screening Testing Analysis Generation Product Commercial- Test Development ization Marketing 30 www.studyMarketing.org

Slide 31: New Product Planning • A continuous, systematic search for new Idea product opportunities Generation • It involves delineating sources of new ideas and methods for generating them • After the firm identifies potential Product products, it must screen them Screening • Many companies use a new-product screening checklist for preliminary evaluation 31 www.studyMarketing.org

Slide 32: Screening Checklist GENERAL CHARACTERISTICS OF NEW PRODUCTS Profit potential Existing competition Potential competition Size of market Level of investment Patentability Level of risk MARKETING CHARACTERISTICS OF NEW PRODUCTS Fit with marketing capabilities Effect on existing products (brands) Appeal to current consumer markets Potential length of product life cycle Existence of differential advantage Impact on image Resistance to seasonal factors PRODUCTION CHARACTERISTICS OF NEW PRODUCTS Fit with production capabilities Length of time to commercialization Ease of product manufacture Availability of labor and material resources Ability to produce at competitive prices 32 www.studyMarketing.org

Slide 33: New Product Planning • Concept testing presents the consumer with a proposed product and measures attitudes Concept and intentions at this early stage of Testing development • Concept testing is a quick and inexpensive way of measuring consumer enthusiasm • Business analysis for the remaining product concepts is much more detailed than product Business screening Analysis • Because the next step is expensive and time- consuming product development, critical use of business analysis is essential to eliminate marginal items 33 www.studyMarketing.org

Slide 34: Business Analysis Variables Factors Considerations Demand projections Price/sales relationship; short- and long-run sales potential; speed of sales growth; rate of repurchases; channel intensity Cost projections Total and per unit costs; use of existing facilities and resources; startup vs. continuing costs; estimates of future raw materials and other costs; econo-mies of scale; channel needs; break-even point Competition Short-run and long-run market shares of company and competitors; strengths and weaknesses of competitors; potential competitors; likely competitive strategies in response to new product by firm Required investment Product planning (engineering, patent search, product development, testing); promotion; production; distribution Profitability Time to recoup initial costs; short- and long-run total and per- unit profits; control over price; return on investment (ROI) 34 www.studyMarketing.org

Slide 35: New Product Planning • Product development converts a product idea into a physical form and identifies a basic Product marketing strategy Development • It involves product construction, packaging, branding, product positioning, and attitude and usage testing. • Test marketing involves placing a product for sale in one or more selected areas and Test observing its actual performance under the Marketing proposed marketing plan. • The purpose is to evaluate the product and pretest marketing efforts in a real setting prior to a full-scale introduction 35 www.studyMarketing.org

Slide 36: New Product Planning • After testing is completed, the firm is ready to introduce the product to its full target Commercial- market. This is commercialization and ization corresponds to the introductory stage of the product life cycle • Commercialization involves implementing a total marketing plan and full production 36 www.studyMarketing.org

Slide 37: Promotion Mix : Advertising, Publicity, Personal Selling and Sales Promotion 37 www.studyMarketing.org

Slide 38: Promotion Mix Publicity Advertising Target Market Sales Personal Promotion Selling 38 www.studyMarketing.org

Slide 39: Promot