marketing management

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  • YOR Health - 15 Factual Concepts of Network Marketing
  • YOR Health - 15 Factual Concepts of Network Marketing
  • The Importance of Information This CTR relates to the material on p. 99 and provides a context for discussing marketing research and marketing information systems. Instructor’s Note: This information is extra-textual. The Importance of Information A marketing information system is valuable for the information tools it provides in relation to the following areas: The Marketing Environment . Companies compete in an environment of social, legal, cultural, technological, natural, and competitive forces. Information on each aspect of the environment is crucial to effective market planning. Discussion Note: You may wish to discuss the role of environmental monitoring or scanning in class. Information gathering can be serendipitous or it can be planned. While not all environmental information needs can be identified in advance, it is possible to approach research and information systems planning with an eye to setting up ways of collecting information in an on-going fashion. Customer Needs and Wants . If environmental forces cause the company to seek information in a larger context, customer needs and wants focus the attention on the target market. Without information, identifying need and wants is guesswork -- or fortune telling. Competitors . The actions of competitors cannot go unnoticed by the company. Innovative companies not only identify competitive actions and offerings, they also consume competitors products -- in small quantities of course! For example, to understand the value of a competitors automobile it makes sense to drive it for awhile as a customer would and evaluate it in that fashion. Strategic Decision Making . Strategy formulation depends upon accurate & timely information most of all.
  • marketing management

    1. 1. Promotion Mix PIMG M.B.A.-II Semester Unit III
    2. 2. Market Strategy Design <ul><li>PROMOTION </li></ul>PLACE PRODUCT PRICE POSITIONING
    3. 3. Promotion And The Promotion Mix <ul><li>Promotion </li></ul><ul><li>Promotion involves various methods of communicating persuasively with the customer in order to arouse/ reinforce their interest in the product </li></ul><ul><li>Elements of the Promotion Mix </li></ul><ul><li>Advertising </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Public Relations </li></ul><ul><li>Direct Marketing </li></ul>
    4. 4. <ul><li>Promotion </li></ul><ul><ul><li>Personal Selling </li></ul></ul><ul><ul><li>Mass Selling </li></ul></ul><ul><ul><ul><li>Advertising </li></ul></ul></ul><ul><ul><ul><li>Publicity </li></ul></ul></ul><ul><ul><li>Sales Promotion </li></ul></ul>
    5. 5. <ul><li>Promotion </li></ul><ul><li>communication of information </li></ul><ul><li>influence the buyer </li></ul><ul><li>3 methods </li></ul><ul><li>Personal Selling </li></ul><ul><li>Mass Selling </li></ul><ul><li>Sales Promotion </li></ul>
    6. 6. <ul><li>Personal Selling </li></ul><ul><li>direct communication between seller and buyer </li></ul><ul><li>face2face contact </li></ul><ul><li>Usually used to sell industrial goods and services </li></ul><ul><li>Also used to sell some expensive consumer items, eg. Vacuum Cleaners, computer systems </li></ul>
    7. 7. <ul><li>Mass Selling </li></ul><ul><li>communicating with large numbers of potential customers </li></ul><ul><li>“ non”-personal selling </li></ul><ul><li>used when the target market is large and dispersed </li></ul><ul><li>Advertising is a form of Mass Selling </li></ul>
    8. 8. <ul><li>Advertising </li></ul><ul><li>the main form of mass selling </li></ul><ul><li>any paid form of non-personal communication eg. Techniques include billboard ads and TV commercials </li></ul>
    9. 9. The generation of awareness about a product beyond regular advertising methods. Usually less costly than advertising because sometimes the message is spread for free by a newspaper article or TV story. Publicity
    10. 10. <ul><li>Examples of Publicity </li></ul><ul><li>famous person photographed using your product </li></ul><ul><li>your product mentioned in National News in a positive way </li></ul><ul><li>your product featured in a movie </li></ul><ul><li>TV commentary about aspects of your product trade magazines carrying a story eg. Road and Track doing a feature on the new Landrover </li></ul>Publicity
    11. 11. Promotion Mix : Advertising PIMG M.B.A.-II Semester 1 Unit III
    12. 12. Advertising <ul><li>Advertising is paid, one-way non-personal communication about the products/services through a medium in which the sponsor is identified and the message is controlled by the sponsor. </li></ul><ul><li>Advertising utilizes a variety of media for communication such as TV, Radio, Press, Cinema, Hoardings, POP etc. </li></ul>
    13. 13. The Great Advertising Playground Advertising is a funny business because it is Not only a business--it is Half a business Quarter a profession and Quarter an art.
    14. 14. Increased Importance Of Advertising <ul><li>DUE TO : </li></ul><ul><li>Increased Competition </li></ul><ul><li>Larger Product Choice </li></ul><ul><li>Increased Customer Knowledge </li></ul><ul><li>Increased Power to Choose </li></ul>
    15. 15. Role Of Advertising <ul><li>INFORM </li></ul><ul><li>Give Information about product features/ </li></ul><ul><li>benefits/ availability </li></ul><ul><li>RETAIN </li></ul><ul><li>Establish the product in the minds of the customer </li></ul><ul><li>REMIND </li></ul><ul><li>Assist the customer in remembering the presence of the product </li></ul><ul><li>INFLUENCE </li></ul><ul><li>Prompt the customer to buy the product </li></ul>
    16. 16. Advertising Supports Sales and Marketing <ul><li>Advertising is a promotion process which : </li></ul><ul><li>Creates awareness amongst customers </li></ul><ul><li>Creates product preference amongst customers </li></ul><ul><li>Imparts initial product knowledge </li></ul><ul><li>Imparts other commercial information </li></ul><ul><li>Establishes supremacy over competitors </li></ul><ul><li>Establishes the take-away benefit by focusing on certain features </li></ul>
    17. 17. Stages Of Advertising <ul><li>Pioneering Advertising </li></ul><ul><li>Competitive Advertising (or Persuasive Advertising) </li></ul><ul><li>Retentive Advertising </li></ul>
    18. 18. Pioneering Advertisement Dove Hair Care Products
    19. 19. Pioneering Advertisement New Shampoo from ITC
    20. 20. Pioneering Advertising <ul><li>“ What Am I” and” What I Can Do For You”! </li></ul><ul><li>Usually done for new product launches or for existing products introducing new features (“Introduction&quot; stage) </li></ul><ul><li>Educates customers about the product and the benefits and the usage of the product/service. </li></ul><ul><li>Helps the consumer recognize the need </li></ul><ul><li>Appeals to the consumer’s rational as well as emotional being </li></ul><ul><li>Usually works on ‘selling’ the product concept rather than promoting the brand. </li></ul><ul><li>Builds primary demand for the new product concept rather than promoting the brand by establishing the need for the new product or establishing that this product fulfils a requirement that has not been met till now </li></ul>
    21. 21. Pioneering Advertisement <ul><li>More copy and less of visuals is used as the consumers need to be informed about the new product, its features, usage and benefits </li></ul>
    22. 22. <ul><li>“ Why Am I Better”! </li></ul><ul><li>Usually when the product is in the growth stage or enters a highly competitive market. </li></ul><ul><li>The aim is to create a preference for the brand over competitive brands by communicating the unique benefits. </li></ul><ul><li>Helps the consumer to evaluate their options. </li></ul><ul><li>Takes the comparative route. </li></ul><ul><li>Less of copy and more of visual is used to attract target customers </li></ul>Competitive Advertising
    23. 23. <ul><li>“ I Am Around”! </li></ul><ul><li>Usually done when a product is in its maturity stage and has a level of acceptance. </li></ul><ul><li>Advertising is aimed at: </li></ul><ul><ul><li>Maintaining the existing customers </li></ul></ul><ul><ul><li>Enhancing corporate image </li></ul></ul><ul><li>Advertising message is subtle and reinforces the product’s presence in the minds of the consumers. </li></ul><ul><li>Electronic advertisements are used that touch emotional issues. The advertisement need not educate the consumer about the product. </li></ul>Retentive Advertising
    24. 24. Product Life Cycle & Advertising Stages <ul><li>INTRODUCTION </li></ul>GROWTH MATURITY SALES DECLINE TIME RETENTIVE COMPETITIVE PIONEERING OR COMPETITIVE REPOSITIONING OR NO ADVERTISING
    25. 25. Forms of Advertisement Products of Marico
    26. 26. Forms of Advertisement
    27. 27. Product Advertisement <ul><li>Focus on promoting the product </li></ul><ul><li>The distinctive features and benefits are communicated to the target customers </li></ul>
    28. 28. <ul><li>Corporate Image Building </li></ul><ul><ul><li>Used by companies/group of companies to increase reliability of the customers towards all the company’s products. </li></ul></ul><ul><ul><li>Promotes a company by building a favourable image in the eyes of publics and c reating goodwill so that trust is built (internal as well as external customers) </li></ul></ul><ul><li>Public Relations </li></ul><ul><li>Used by companies to remain in the recall sphere of the customers’ memory or to clarify any issue which has affected the company or to make some announcements from time to time. </li></ul>Corporate Advertising
    29. 29. Characteristics Of Corporate Advertising <ul><li>Subtle in nature </li></ul><ul><li>May build upon the history and growth of the corporate </li></ul><ul><li>Creates awareness about the company among people as to how socially-responsible the corporate is </li></ul><ul><li>Aims to impact the basic attitudes of people </li></ul><ul><li>Objectives: </li></ul><ul><ul><li>To make the company known </li></ul></ul><ul><ul><li>To make its products / services known. </li></ul></ul><ul><ul><li>To make its achievements known. </li></ul></ul><ul><ul><li>To make its values known. </li></ul></ul><ul><ul><li>To make socio-political / economic / moral statements </li></ul></ul>
    30. 30. Types of Corporate Advertising <ul><li>Image Advertising </li></ul><ul><ul><li>The objective is to enhance the corporate image </li></ul></ul><ul><li>Issue Advertising </li></ul><ul><ul><li>The objective is to communicate the company’s position on a social issue </li></ul></ul>
    31. 31. Types of Corporate Advertising Issue Advertising Image advertising
    32. 32. <ul><li>Awareness Campaign </li></ul><ul><ul><li>Used to create awareness for social issues and encourage/influence customers to contribute. </li></ul></ul><ul><ul><li>Advertising is designed to educate/motivate target audiences to undertake socially-desirable actions </li></ul></ul><ul><li>Product Promotion </li></ul><ul><li>Social issues are used by companies to promote their product. </li></ul>Social Advertising
    33. 33. Social Advertisement Social ad of WWF
    34. 34. Social Marketing Vs Societal Marketing Social Marketing Societal Marketing Social good is the primary aim Profit generation is the primary aim Social good is the secondary aim Aims to bring social change Aims to build goodwill among customers Example: Polio Drops Campaigns, AIDS awareness, Safe driving, etc <ul><li>Example: </li></ul><ul><li>Surf Exel :save water (I bucket water) </li></ul><ul><li>Ariel (Re 1 goes to CRY for every purchase) </li></ul>
    35. 35. Societal Advertising
    36. 36. Societal Advertising
    37. 37. Forms of Advertising <ul><li>Product Advertising </li></ul><ul><li>Corporate Advertising </li></ul><ul><li>Social Advertising </li></ul>
    38. 38. Product Categories <ul><li>Consumer goods </li></ul><ul><ul><li>Consumer durables: appliances that serve for a long period of time </li></ul></ul><ul><ul><li>Consumer non-durables: frequently bought </li></ul></ul><ul><li>Industrial goods </li></ul><ul><ul><li>Elaborate buying process </li></ul></ul><ul><li>Service </li></ul><ul><ul><li>Activities, benefits or satisfaction offered for sale </li></ul></ul><ul><ul><li>Intangible, Inseparable, Variable and Perishable </li></ul></ul>
    39. 39. Consumer Durables: Print Ads  
    40. 40. Consumer Durable: Print Ads  
    41. 41. Product Category & Advertising Route <ul><li>ADVERTISING </li></ul>CATEGORY Consumer Durables <ul><li>Print preferred as print ads are informative </li></ul><ul><li>Preference oriented </li></ul><ul><li>Initial response generator </li></ul><ul><li>Heavy celebrity endorsement </li></ul><ul><li>Rational as well as emotional appeal </li></ul>Consumer Non-Durables <ul><li>Electronic preferred ( TV commercials) </li></ul><ul><li>as the medium is interactive </li></ul><ul><li>Emotional appeal </li></ul><ul><li>Sales generator </li></ul><ul><li>Heavy celebrity endorsement </li></ul>
    42. 42. Service: Print Advertisement
    43. 43. Service: Print Advertisement
    44. 44. <ul><li>Main objectives is to inform customers </li></ul><ul><li>Print/Electronic ads </li></ul><ul><li>Educative/Awareness generator </li></ul><ul><li>Corporate image focus </li></ul><ul><li>Trade journals and lay press media used </li></ul><ul><li>Rational appeal is used </li></ul>Product Category & Advertising Route ADVERTISING CATEGORY Industrial Services <ul><li>Print/Electronic </li></ul><ul><li>Influence or awareness generator </li></ul><ul><li>Emotional appeal </li></ul>
    45. 45. The 6 Ms of Advertising <ul><li>Mission </li></ul><ul><li>Market </li></ul><ul><li>Money </li></ul><ul><li>Message </li></ul><ul><li>Media </li></ul><ul><li>Measurement </li></ul>
    46. 46. The 6 Ms Of Advertising MISSION ADVERTISING OBJECTIVES MARKET TARGET SEGMENTS MEASUREMENT EFFECTIVENESS EVALUATION MONEY ADVERTISING BUDGET MESSAGE CREATIVE DESIGN MEDIA
    47. 47. Mission- The First M <ul><li>MISSION- THE FIRST M </li></ul><ul><li>Mission is the advertising objectives. The advertising objectives are derived out of the Marketing Objectives and have to achieve the marketing objectives. </li></ul><ul><li>The marketing objective could be to increase sales & the advertising objective would be to promote the brand in a fashion so as to do the same. </li></ul>
    48. 48. Market -- The Second M <ul><li>MARKET -- THE SECOND M </li></ul><ul><li>Defining the target market and the customer profile helps in designing the message and choosing the media. It helps the advertiser to understand the attitudes of the customers and their preferences. </li></ul><ul><li>The market is typically divided/segmented on Demographic/Geographic/social/ Economic & Psychographic factors. </li></ul><ul><li>A particular segment is then targeted by the advertiser </li></ul>
    49. 49. Money -- The Third M <ul><li>MONEY -- THE THIRD M </li></ul><ul><li>The advertising budget is allocated based on the availability of funds/sales target/advertising objectives/ the extent of the target market. </li></ul>
    50. 50. Message -- The Fourth M <ul><li>MESSAGE -- THE FOURTH M </li></ul><ul><li>The designing of the message undertakes formulating the visuals and the words to be written. The message design is based on the target market/media/product profile and the advertising objectives. </li></ul>
    51. 51. Media -- The Fifth M <ul><li>MEDIA -- THE FIFTH M </li></ul><ul><li>The Media decision involves studying the characteristics of various media/the reach of the media/ the profile of people watching the media/ the cost of the media an then planning the media vehicle to carry the advertisement. </li></ul>
    52. 52. Types Of Media <ul><li>Media can be classified into : </li></ul><ul><li>Print Media </li></ul><ul><ul><li>Newspapers </li></ul></ul><ul><ul><li>Magazines </li></ul></ul><ul><ul><li>Direct Response </li></ul></ul><ul><ul><li>Direct Mail </li></ul></ul><ul><li>Electronic Media </li></ul><ul><ul><li>Television </li></ul></ul><ul><ul><li>Radio </li></ul></ul><ul><ul><li>Internet </li></ul></ul><ul><li>Outdoor Media </li></ul><ul><ul><li>Hoardings/Banners/Posters Glow Signs/ Kiosks </li></ul></ul>
    53. 53. Designing A Print Advertising HEADLINE -- Promise of benefit SUB-HEADLINE -- Spelling out benefit BODY COPY -- Amplification of claim/ Proof of claim PUNCHLINE -- Proof of claim/ Action to take LOGO HEADLINE SUB-HEADLINE BODYCOPY PUNCHLINE VISUAL
    54. 54. Electronic Advertising THE ELECTRONIC MEDIA JINGLE STORYLINE VOICEOVER VISUALS CAST PROPS TIME FRAME
    55. 55. Measurement -- The Sixth M <ul><li>MEASUREMENT -- THE SIXTH M </li></ul><ul><li>Measuring the effectiveness of the campaign helps the advertisers to understand whether the advertising objectives have been met and if there has been a positive effect on the sales or the image of the company. </li></ul>
    56. 56. The Advertising Process Agency Discussions Client Briefing Briefing to Creative & Media team Creative Execution Client Presentation Client Approval Production Media Release
    57. 57. Promotion Mix : Sales Promotion PIMG M.B.A.-II Semester 2 Unit III
    58. 58. What is Sales Promotion ? Sales Promotion consists of short-term incentives to encourage the purchase or sales of a product.
    59. 59. Sales Promotion Objectives <ul><li>Increase short-term sales or help build long-term market share. </li></ul><ul><li>Get consumers to try a new product </li></ul><ul><li>Lure customers away from a competitor </li></ul><ul><li>In general, sales promotion should focus on consumer relationship building . </li></ul>
    60. 60. Sales Promotion Managers - they deal with Point-of-purchase advertising specialty advertising samples coupons premiums loyalty points / air miles rebates contests People in Sales Promotion Sales Promotion
    61. 61. <ul><li>Sales Promotion includes: </li></ul><ul><li>Point-of-purchase advertising </li></ul><ul><li>specialty advertising </li></ul><ul><li>samples </li></ul><ul><li>coupons </li></ul><ul><li>premiums </li></ul><ul><li>loyalty points / air miles </li></ul><ul><li>rebates </li></ul><ul><li>contests </li></ul>Sales Promotion
    62. 62. Major Consumer Sales Promotion Tools Sample Coupons Packages Premiums Trial amount of a product Savings when purchasing specified products Bundling products, for example a room and dinner Products offered free or low cost as an incentive to buy a product Displays or demonstrations
    63. 63. Major Consumer Sales Promotion Tools Patronage Rewards Point-of-Purchase Contests Sweepstakes Game Cash or other rewards for the use of a certain product Displays and demonstrations that take place at the point of sale Consumers submit an entry to be judged Consumers submit their names for a drawing Presents consumers with something every time they buy
    64. 64. Local Store Marketing <ul><li>Cross Promotions </li></ul><ul><ul><li>Coupons/free Goods Distributed by Another Organization </li></ul></ul><ul><ul><li>Consumer Goods--use High Traffic Retailers-- Look for Synergy With Your Product </li></ul></ul><ul><ul><li>Professional Services--other Professional Services </li></ul></ul>
    65. 65. P U S H P U L L <ul><li>Pushing through the promotion channel </li></ul><ul><li>Producer - personal selling 2 wholesaler retailer customer </li></ul><ul><li>Promotion techniques used </li></ul><ul><li>run ads in trade magazines to make wholesalers aware of the product </li></ul><ul><li>provide incentives to retailers to carry the item “… free case of drinks with each 2 cases it buys…” page 466 </li></ul><ul><li>run contests for salespeople to win prizes for selling the product </li></ul>
    66. 66. P U S H P U L L <ul><li>Pulling through the promotion channel </li></ul><ul><li>Producer - personal selling 2 wholesaler retailer customer </li></ul><ul><li>Promotion techniques used </li></ul><ul><li>run TV commercials so customers directly learn about the product - then they go to the store and ask for it, or call around to find out where it is sold </li></ul><ul><li>give free samples to potential customers </li></ul>
    67. 67. P U S H P U L L <ul><li>Pulling through the promotion channel </li></ul><ul><li>Producer - personal selling 2 wholesaler retailer customer </li></ul>Sometimes you do “pulling” when the Middlemen cannot be pushed, that is they already have a competitors product, so the way to get Middlemen to WANT to carry the product, is to have customers ask for it.
    68. 68. Promotion Mix : Public Relations PIMG M.B.A.-II Semester 3 Unit III
    69. 69. What is Public Relations? Public Relations Involves Building Good Relations With the Company’s Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events.
    70. 70. Public Relations Citizen Action Group Suppliers Customers Government Media Financial Community Publics
    71. 71. <ul><li>Local Publics - Community </li></ul><ul><ul><li>Local Area Marketing </li></ul></ul><ul><li>General Public </li></ul><ul><ul><li>Corporate Citizen </li></ul></ul><ul><li>Internal Publics </li></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><li>Board of Directors </li></ul></ul><ul><ul><li>Stockholders </li></ul></ul>Public Relations Cont.
    72. 72. Major Activities of PR Departments <ul><li>Press Relations </li></ul><ul><li>Product Publicity </li></ul><ul><li>Corporate Communication </li></ul><ul><li>Lobbying </li></ul><ul><li>Counseling </li></ul>
    73. 73. Publicity <ul><li>Product Related Publicity </li></ul><ul><ul><li>Assist in the Launch of New Products. </li></ul></ul><ul><ul><li>Assist in Repositioning a Mature Product </li></ul></ul><ul><ul><li>Build Up Interest in a Product Category </li></ul></ul>
    74. 74. Corporate Communication <ul><li>Influence Specific Target Groups </li></ul><ul><li>Defend Products That Have Encountered Public Problems </li></ul><ul><li>Build the Corporate Image in a Way That Projects Favorably on Its Products. </li></ul>
    75. 75. The Public Relations Process <ul><li>Research </li></ul><ul><li>Establishing the Marketing Objective </li></ul><ul><ul><li>Build Awareness </li></ul></ul><ul><ul><li>Build Credibility </li></ul></ul><ul><ul><li>Stimulate the Sales Force and Channel Intermediaries </li></ul></ul><ul><ul><li>Hold Down Promotion Costs </li></ul></ul>
    76. 76. The Public Relations Process -Continued <ul><li>Defining the Target Audience </li></ul><ul><li>Choosing the PR Message and Vehicles </li></ul><ul><ul><li>Event Creation </li></ul></ul>
    77. 77. Implementing the Marketing PR Plan <ul><li>Evaluating PR Results </li></ul><ul><ul><li>Exposures </li></ul></ul><ul><ul><li>Awareness/Com-prehension/Attitude Change </li></ul></ul><ul><ul><li>Sales-and-Profit Contribution </li></ul></ul>
    78. 78. Major Tools in Marketing PR Public Service Activities Identity Media Speeches Publications News Events
    79. 79. Public Relations Opportunities for the Hospitality Industry <ul><li>Public Relations Opportunities for Individual Properties </li></ul><ul><li>Build PR Around the Owner/operator </li></ul><ul><li>Build PR Around Location </li></ul><ul><li>Build PR Around a Product or Service </li></ul>
    80. 80. Promotion Mix : Direct Marketing PIMG M.B.A.-II Semester 4 Unit III
    81. 81. Direct Marketing <ul><li>Definition </li></ul><ul><li>A type of marketing in which a company directly communicates with carefully-targeted prospects without using any intervening media for driving purchases that can be attributed to a specific &quot;call-to-action” </li></ul><ul><li>A product is sold directly to customer with no middlemen in between </li></ul><ul><li>Direct marketing can be done in both B2B and consumer markets </li></ul><ul><li>Purpose: </li></ul><ul><ul><li>Obtain a direct and an immediate response </li></ul></ul><ul><ul><li>Build long-lasting relationships with customers </li></ul></ul>
    82. 82. Mass Marketing Vs. Direct Marketing Mass Marketing Direct Marketing One-to-many One-to-one One-way communication Two-way communication Targets broad markets Targets individual customers Standardised messages Customised messages Distributed to customers through intermediaries Direct distribution to customers
    83. 83. Comparison of Direct Marketing and General Advertising Direct Marketing General Advertising Selling to individuals. Customers are Mass selling. Buyers identified as broad often identifiable by name, address, and groups sharing common demographic and purchase behaviour. psychographic characteristics. Products have added value or service. Product benefits do not always include Distribution is important product benefit. convenient distribution channels. The medium is the marketplace. Retail outlet is the marketplace. Marketer controls product until delivery. Marketer may lose control as product enters distribution channel. Advertising used to motivate an Advertising used for cumulative effect immediate order or inquiry. over time to build image, awareness, loyalty, benefit recall. Purchase action deferred. Repetition used within ad. Repetition used over time. Consumers feel high perceived risk – Consumers feel less risk – have direct product brought unseen. Recourse is contact with the product and direct distant. recourse. D i r e c t M a r k e t i n g Not in your text
    84. 84. The Growth of Direct Marketing Popularity of Marketing Concept Consumers Lack of Time (hectic life style) Convenience of Ordering From Direct Marketers Growth of Customer Databases Demassification – Focus is Toward Minimarkets
    85. 85. Benefits of Direct Marketing Convenient Easy & Private Wide Selection Option Abundance of Information Interactive & Immediate Buyers Benefits Sellers Benefits One-to-one Consumer Relationship Building Reduced Costs (no intermediaries) Increased Speed & Efficiency Immediate and Direct Response Global Medium Flexibility Product Access
    86. 86. Forms of Direct Marketing <ul><li>Personal selling </li></ul><ul><li>Telephone marketing </li></ul><ul><li>Direct mail marketing </li></ul><ul><li>Catalogue marketing </li></ul><ul><li>Direct response television marketing </li></ul><ul><li>Kiosk marketing </li></ul><ul><li>Online marketing </li></ul>
    87. 87. Forms Of Direct Marketing: Personal Selling <ul><li>Oral communication between sales force of a company and potential buyers of the company with the intention of making a sale </li></ul><ul><li>Initially, focus is on developing a relationship with the potential buyer, but will always ultimately end with an attempt to close the sale </li></ul><ul><li>Involves personal interaction so that each party is able to assess other party's reaction </li></ul><ul><li>Helps to build buyer preference and conviction </li></ul>
    88. 88. Forms Of Direct Marketing: Telemarketing <ul><li>Using telephone for interacting with customers directly </li></ul>
    89. 89. Forms Of Direct Marketing: Direct Mail Marketing <ul><li>Relevant product information may be provided to interested customers through: </li></ul><ul><ul><li>Mailing letters </li></ul></ul><ul><ul><li>Product brochures </li></ul></ul><ul><ul><li>Order forms </li></ul></ul><ul><ul><li>Pre-paid reply envelopes </li></ul></ul><ul><li>Direct mail marketing requires: </li></ul><ul><ul><li>High-quality mailing list from a well-managed database </li></ul></ul><ul><li>Careful and accurate targeting and selection of prospects is essential (well-focussed customer targeting) </li></ul><ul><li>Customers need to be segmented into groups having similar demographic and psychographic attributes </li></ul>
    90. 90. What is this?
    91. 91. Forms Of Direct Marketing: Catalogue Marketing <ul><li>Product catalogue is sent to customers and prospects for informing them about the various products of a company </li></ul><ul><li>Customer/prospect can place order directly with the company through the toll-free number(s) given in the catalogue </li></ul>
    92. 92. Forms Of Direct Marketing: Television Marketing <ul><li>The medium of television is used for distribution </li></ul><ul><li>Home-shopping channels sell goods and services 24-hours a day </li></ul><ul><li>Program hosts explain the product features and benefits, the price, the ordering procedure, etc </li></ul><ul><li>Interested customers can place orders through toll-free numbers shown on the channel </li></ul><ul><li>Product is delivered within 48 hours </li></ul>
    93. 93. Television Marketing
    94. 94. Forms Of Direct Marketing: Kiosk Marketing A kiosk in a mall
    95. 95. Kiosk Marketing An iPhone kiosk
    96. 96. Kiosk Marketing An outdoor kiosk
    97. 97. Kiosk Marketing An interactive kiosk
    98. 98. Kiosk Marketing <ul><li>Machines (Kiosks) are placed at various locations where customers can place orders for a particular product </li></ul><ul><li>Kiosks may be placed at: </li></ul><ul><ul><li>Airports </li></ul></ul><ul><ul><li>Shopping malls </li></ul></ul><ul><ul><li>Retail stores </li></ul></ul><ul><li>Real-time transactions </li></ul>
    99. 99. Forms Of Direct Marketing: Online Marketing <ul><li>Direct marketing of products or services over the Internet </li></ul><ul><li>Conducted through interactive online computer systems, which link consumers with sellers electronically </li></ul>
    100. 100. Challenges of Online Marketing Limited Consumer Exposure and Buying Skewed User Demographics and Psychographics Chaos and Clutter Ethical Concerns Security
    101. 101. Network Marketing
    102. 102. The Professional Network Marketer Must Develop… <ul><li>A STRONG BELIEF SYSTEM Regarding the Credibility of the Network Marketing Industry </li></ul><ul><li>In-Depth Knowledge of the GENERIC NETWORK MARKETING PROCESS OF RELATIONSHIP MARKETING </li></ul><ul><li>A PASSION FOR AND KNOWLEDGE ABOUT the Company’s PRODUCTS AND SERVICES </li></ul><ul><li>A Comprehensive Understanding of the Company’s - UNIQUE MARKET POSITIONING STRATEGY - INTERNAL POLICIES AND PROCEDURES </li></ul>
    103. 103. A Positioning Challenge 10 Selected Factual Concepts The Credibility of Network Marketing:
    104. 104. FACTUAL CONCEPT #1: Word-of-Mouth Communication is the Most Powerful Communication Medium in the Marketing Discipline
    105. 105. Word-of-Mouth--“Buzz”: A New Vision <ul><li>Academic Research—1940-2010 </li></ul><ul><li>Applied Experiments: 1980-2010 Segmentation/Target Marketing </li></ul><ul><li>“ Innovators” / “Opinion Leaders” / “Taste Makers” </li></ul><ul><li>Corporate Research </li></ul><ul><li>Viral Marketing...SPREADING THE IDEA... </li></ul><ul><li>ANATOMY OF THE BUZZ...ETC...ETC...ETC </li></ul><ul><li>WOMMA... “Word-of-Mouth Marketing Assn” </li></ul>
    106. 106. FACTUAL CONCEPT #2: Direct Selling is Historically Well-Established as a Sales Channel in the Marketing Discipline
    107. 107. Direct Selling Distribution of Goods & Services: <ul><li>Through Personal Explanation & Demonstrations </li></ul><ul><li>Away From Fixed Business Locations </li></ul><ul><li>Primarily in the Home or Office </li></ul><ul><li>Of the Customer/Buyer </li></ul>
    108. 108. The Evolution of Direct Selling <ul><li>Colonial America: “The Yankee Peddler” </li></ul><ul><li>1840’s: Wholesaling and Retailing Channels Develop </li></ul><ul><li>The “Yankee Peddler” Declines...BUT... </li></ul><ul><li>1880’s: Formal Direct Selling Organizations Emerge </li></ul><ul><li>1920’s: A Selling Profession Develops </li></ul><ul><li>2010+ : Recognized Distribution Channel </li></ul>
    109. 109. FACTUAL CONCEPT #3: <ul><li>Direct Selling is: </li></ul><ul><li>A $114 Billion(US$) Industry Worldwide (WFDSA—2008—January, 2010) </li></ul><ul><li>Involving Over 65.0 Million Distributors Worldwide (WFDSA 2008-January, 2010) </li></ul><ul><li>16 Countries Do Over $1 Billion(US$) in Direct Sales Annually </li></ul>
    110. 110. The “Billion Dollar +” Countries in Direct Selling: A Global Analysis 2008* Country United States 29.60 15.100 Japan 22.84 2.700 Brazil 10.10 2.028 Germany 8.87 .778 Korea 7.00 3.089 Mexico--# 6 Globally 4.40 1.900 *WFDSA Statistics Report,, January, 2010 Retail Sales US Dollars (Billions) Number of Sales People (Millions)
    111. 111. FACTUAL CONCEPT #4: Outlook for Global Growth <ul><li> Population </li></ul><ul><li>India 1.0 Billion -- $600 Million Direct Sales -- 1.37 Million Distributors </li></ul><ul><li>China 1.3 Billion </li></ul><ul><li>Latin America 700 Million </li></ul><ul><li>Total Estimated 3.0 Billion </li></ul>Global Area
    112. 112. Major Global Growth in Developing Countries <ul><li> Population </li></ul><ul><li>Global Developing Markets 3 Billion </li></ul><ul><li>20%--30% Middle/ Upper Middle Class 600-900 Million </li></ul><ul><li> </li></ul><ul><li>* United Nations Estimates-2008 </li></ul>
    113. 113. FACTUAL CONCEPT #5: <ul><li>Network Marketing as a Channel of </li></ul><ul><li>Distribution Has a 65+ Year History </li></ul><ul><li>Dating Back to Circa 1941 </li></ul>
    114. 114. History of Network Marketing: <ul><li>1930’s to 1940’s: Multi-Level Marketing/Network Marketing is Born </li></ul><ul><li>First Company ?: Different Perspectives </li></ul><ul><li>The Most Powerful Early Pioneer: Nutrilite Products (California Vitamin Company) – 1934-1941 </li></ul><ul><li>Nutrilite Brand—2010--Amway </li></ul><ul><li>Conclusion: 69 + Year History of Success </li></ul>
    115. 115. FACTUAL CONCEPT #6: <ul><li>$ 28.13 Billion in Direct Sales (2009) </li></ul><ul><li>Involving Over 16.1 Million Distributors (2009) </li></ul><ul><li>26% of Global Direct Sales (2009) </li></ul>The United States is the Leading Direct Selling Country in the World with:
    116. 116. <ul><li>97.1% of All Direct Dollar Sales </li></ul><ul><li>99.6% of All Direct Sales Persons </li></ul><ul><li>94.2% of all Direct Selling Firms... </li></ul>Network Marketing Dominates Direct Selling (2009)…
    117. 117. FACTUAL CONCEPT #7: <ul><li>Network Marketing as a Channel of </li></ul><ul><li>Sales and Distribution is Based on </li></ul><ul><li>A Well Defined Business Model </li></ul>
    118. 118. Network Marketing Allows: <ul><li>Individual sales persons to: </li></ul><ul><li>Direct sell products and earn retail commissions... </li></ul><ul><li>Recruit, train and manage other persons to sell products... </li></ul><ul><li>Earn commissions from the product sales of those recruits </li></ul>
    119. 119. Network Marketing Involves... <ul><li>Personal Use of Product </li></ul><ul><li>Retailing of Product </li></ul><ul><li>Building and Managing a Sales Organization to Sell the Product </li></ul>
    120. 120. Network Marketing Industry Provides: <ul><li>A Broad Array of Products </li></ul><ul><li>An Established Infrastructure and Supply Chain </li></ul><ul><li>Trained Distributors </li></ul><ul><li>High-Tech Information Channels </li></ul><ul><li>Access to International Markets </li></ul>
    121. 121. FACTUAL CONCEPT #8: <ul><li>Network Marketing is Integrating </li></ul><ul><li>The Internet with Traditional </li></ul><ul><li>Word-of-Mouth Communication </li></ul>
    122. 122. Network Marketing Partnering with the Internet <ul><li>Mutually Supportive Relationship—Person-to-Person PLUS “Hi-Tech” </li></ul><ul><li>Improving Company IT Operations </li></ul><ul><li>Efficient Information Delivery </li></ul><ul><li>Targeted One-to-One Selling— E-Mail Messaging </li></ul><ul><li>Reinforces Customer Relationships </li></ul><ul><li>Facilitates Global Expansion </li></ul>
    123. 123. FACTUAL CONCEPT #9: <ul><li>Network Marketing has been recognized </li></ul><ul><li>as a Legitimate Channel of Distribution by </li></ul><ul><li>the Federal Trade Commission and the </li></ul><ul><li>United States Justice Department </li></ul>
    124. 124. FACTUAL CONCEPT #10: <ul><li>The Network Marketing Industry is </li></ul><ul><li>Increasingly Recognized in the </li></ul><ul><li>Major Public Financial Markets of </li></ul><ul><li>the United States </li></ul>
    125. 125. Financial Community View of Direct Selling/Network Marketing Industry <ul><li>Steady Annual Worldwide Growth </li></ul><ul><li>Healthy Cash Flow </li></ul><ul><li>High Return on Investment (ROI) </li></ul><ul><li>Long Term International Growth </li></ul><ul><li>Long Term Upturn in Market Valuations: Increases of over 100%+ in Stock Price for Some Industry Companies </li></ul>
    126. 126. <ul><li>Database Marketing </li></ul>
    127. 127. Database Marketing Database Marketing is when you store information about your customers or prospects in your computers database program.  You would then use that to more effectively market to them. Database marketing can save you money by letting you target your promotional efforts to your best prospects.
    128. 128. Some Definitions of Database Marketing AMA definition : An approach by which computer database technologies are harnessed to design, create, and manage customer data lists containing information about each customer's characteristics and history of interactions with the company. The lists are used as needed for locating, selecting, targeting, servicing, and establishing relationships with customers in order to enhance the long-term value of these customers to the company. Another definition Database marketing is a systematic approach to the gathering, consolidation, and processing of consumer data (both for customers and potential customers) that is maintained in a company's databases. Although databases have been used for customer data in traditional marketing for a long time, the database marketing approach is differentiated by the fact that much more consumer data is maintained, and that the data is processed and used in new and more sophisticated ways.
    129. 129. Some Definitions of Database Marketing Third definition : Database marketing is a way of organizing a company’s customer and prospect data so that it can be used more effectively in a direct marketing effort. It is a way of organizing the whole marketing process. Database marketing allows you to choose what to market to whom and when based on the sum total of your knowledge and experience with a customer or prospect. Fourth definition Database marketing is the technique of gathering all the information available about your customer, leads, and prospects into a central database and using that information to drive all your marketing efforts. The information is stored in a marketing database and can be used at both the strategic and tactical levels to drive targeted marketing efforts.
    130. 130. <ul><li>Why Database Marketing? </li></ul><ul><li>Informational Reasons </li></ul><ul><li>Availability of abundance data </li></ul><ul><li>Permission to collect them </li></ul><ul><li>Technological Reasons </li></ul><ul><li>Technology to collect and warehouse data </li></ul><ul><li>Technology and computing power available to analyze them </li></ul><ul><li>Availability of commercial software, some of which are even “user friendly” (e.g. XL miner, SAS enterprise miner) </li></ul><ul><li>Commercial Reason </li></ul><ul><li>Interest in generating intelligence to remain competitive main market share </li></ul><ul><li>Drive to be efficient </li></ul>
    131. 131. Define Your Objectives You can use database marketing to find out what your customers are most interested in. You can use database marketing to find out your customers purchasing habits. You can use database marketing to find out how much money your customers make.
    132. 132. Define Your Objectives You can use database marketing to find out your customers needs and wants. You can use database marketing to write all your sales material more effectively. You can use database marketing to target your best prospects.
    133. 133. Use The Power Of Database Marketing To… <ul><li>learn as much as you can about your customers so you can make a sale. </li></ul><ul><li>improve your customer service. </li></ul><ul><li>target your leads more accurately. </li></ul><ul><li>test ideas before launching a total sales campaign. </li></ul>
    134. 134. Use The Power Of Database Marketing To… <ul><li>build customer loyalty. </li></ul><ul><li>send reminders to customers. </li></ul><ul><li>send electronic greeting cards on holidays or birthdays to customers. </li></ul><ul><li>send surveys, polls or questionnaires. </li></ul>
    135. 135. Use The Power Of Database Marketing To… <ul><li>invite customers to special events you hold. </li></ul><ul><li>send announcements about changes in your business. </li></ul><ul><li>send new contests or sweepstakes announcements. </li></ul>
    136. 136. Decide What Types Of Database Marketing Communications You Will Use Offline Marketing Systems Online Marketing Systems or a combination of the two Remember you will need the right software
    137. 137. What Data Should You Gather? Company Name Full Business Address Title Full Name Street Address City State Zip Date Of Birth Gender Income Phone number Fax number Email Address Web site Address Education Occupation Hobbies Customer Code Purchase History Products/Services Purchased Dates Of Purchases Amount Of Purchases Other Products They Use Referral Sources Special Notes
    138. 138. Store and Analyse Store your information in your computer database. Analyze your information to accomplish your marketing goals
    139. 139. Three Key Elements of a Database System <ul><li>Technology: Computer hardware and software capable of supporting database marketing </li></ul><ul><li>  Accurate Information: Valid records, correct addresses, correctly spelled names, most recent purchase activity </li></ul><ul><li>  Prioritization: Knowing which groups are most likely to respond will help increase return rates and revenues </li></ul>
    140. 140. Keys to Successful Database Marketing <ul><li>Preplan </li></ul><ul><li>Specify targets </li></ul><ul><li>Select an appropriate message </li></ul><ul><li>Predetermine return on investment </li></ul><ul><li>Maintain creative consistency </li></ul><ul><li>Integrate mailings with program </li></ul><ul><li>Use clean lists </li></ul><ul><li>Know when to mail </li></ul><ul><li>Repeat your message </li></ul><ul><li>Track results </li></ul>
    141. 141. Promotion Mix : Personal Selling PIMG M.B.A.-II Semester 5 Unit III
    142. 142. Personal selling is person-to-person communication.
    143. 143. Salesperson roles <ul><li>Surveying – education about the customer’s business </li></ul><ul><li>Mapmaking – solutions strategy for the customer </li></ul><ul><li>Guiding – adding value by identifying problems and opportunities </li></ul><ul><li>Fire starting – engaging the customer and getting commitment </li></ul>
    144. 144. New emphasis: CRM <ul><li>CRM = Customer Relationship Management </li></ul><ul><li>Use database to estimate profitability of each account </li></ul><ul><li>Tailor services accordingly </li></ul><ul><li>Emphasis on building and maintaining long-term partnerships </li></ul>
    145. 145. Salesperson Responsibilities <ul><li>Locate prospective customers </li></ul><ul><li>Determine customers’ needs/wants </li></ul><ul><li>Recommend ways to satisfy customers’ needs/wants </li></ul><ul><li>Demonstrate company’s capabilities and products </li></ul><ul><li>Close the sale </li></ul>
    146. 146. Advantages of Personal Selling <ul><li>Two-way interaction </li></ul><ul><li>Message tailoring </li></ul><ul><li>Minimal clutter/distraction </li></ul><ul><li>Involvement throughout the decision-making process </li></ul><ul><li>Research tool </li></ul>
    147. 147. Disadvantages of Personal Selling <ul><li>Message inconsistency </li></ul><ul><li>Conflict between sales force and management </li></ul><ul><li>High cost </li></ul><ul><li>Poor reach </li></ul><ul><li>Ethical concerns </li></ul>
    148. 148. Evaluating Personal Selling <ul><li>Marketing intelligence obtained </li></ul><ul><li>Feedback on promotional materials </li></ul><ul><li>Number of promotional programs implemented </li></ul><ul><li>Success in meeting communications objectives </li></ul>
    149. 149. Distribution Mix PIMG M.B.A.-II Semester Unit IV
    150. 150. Market Strategy Design PLACE PRODUCT PRICE Marketing Mix PROMOTION
    151. 151. Definition of Distribution and Distribution System <ul><li>Distribution </li></ul><ul><ul><li>The physical flow of goods from the manufacturer to the ultimate consumer through channels that comprise independent firms who are in the distribution business to make profits </li></ul></ul><ul><ul><li>Distribution System </li></ul></ul><ul><ul><li>The network of intermediaries through which the manufacturer moves products to the target markets </li></ul></ul>
    152. 152. Objectives of Distribution <ul><li>Provide the right product, at the right place and at the right time </li></ul><ul><li>Make customers aware of the availability of the product and authorisation to purchase </li></ul><ul><li>Offer product support services, such as pre-sales advice, sales promotion and merchandising to customers </li></ul>
    153. 153. Distrubution Mix : Channels of Distribution PIMG M.B.A.-II Semester 1 Unit IV
    154. 154. <ul><li>Marketing Channel Defined </li></ul><ul><li>A marketing channel (or distribution channel) is a set of independent organizations that help make a product or service available for use or consumption by the consumer or business users. </li></ul>The Nature and Importance of Marketing Channels
    155. 155. <ul><li>How Channel Members Add Value </li></ul><ul><li>Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use them. </li></ul>The Nature and Importance of Marketing Channels
    156. 156. <ul><li>How Channel Members Add Value </li></ul><ul><li>Producers use intermediaries because they create greater efficiency in making goods available to target markets. </li></ul><ul><li>Intermediaries offer the firm more than it can achieve on its own through their contacts, experience, specialization, and scale of operations. </li></ul><ul><li>From an economic view, intermediaries transform the assortments of products into assortments wanted by consumers. </li></ul><ul><ul><li>Producers – narrow assortments of products in large quantities </li></ul></ul><ul><ul><li>Consumers – broad assortments of products in small quantities </li></ul></ul>The Nature and Importance of Marketing Channels
    157. 157. <ul><li>How Channel Members Add Value </li></ul><ul><li>Information: Gathering and distributing marketing research and intelligence </li></ul><ul><li>Promotion: Development and spreading persuasive communications about an offer </li></ul><ul><li>Contact: Finding and communicating with prospective buyers </li></ul><ul><li>Matching: Shaping and fitting the offer to the buyer’s needs, including activities such as manufacturing, grading, assembling, and packaging </li></ul><ul><li>Negotiation: Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred </li></ul><ul><li>Physical distribution: Transporting and storing goods </li></ul><ul><li>Financing: Acquiring and using funds to cover the costs of carrying out the channel work </li></ul><ul><li>Risk taking: Assuming the risks of carrying out the channel work </li></ul>The Nature and Importance of Marketing Channels
    158. 158. <ul><li>Number of Channel Members </li></ul><ul><li>Channel level refers to each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. </li></ul><ul><ul><li>Direct marketing channel has no intermediary levels; the company sells directly to consumers. </li></ul></ul><ul><ul><li>Indirect marketing channels contain one or more intermediaries. </li></ul></ul><ul><li>From the producer’s point of view, a greater number of levels means less control and greater channel complexity </li></ul>The Nature and Importance of Marketing Channels
    159. 159. Types of Distribution Systems <ul><li>Direct Distribution System </li></ul><ul><ul><li>The manufacturer sells the goods directly to the end users through its own sales force </li></ul></ul><ul><li>Indirect Distribution System </li></ul><ul><ul><li>The manufacturer sells its goods through middlemen to the end users </li></ul></ul>
    160. 160. INTENSIVE SELECTIVE EXCLUSIVE Distribution through every reasonable outlet in a market Distribution through multiple, but not all, reasonable outlets in a market Distribution through a single wholesaling middleman and/or retailer in a market Intensity of Distribution
    161. 161. Forms of Distribution <ul><li>Exclusive Distribution </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><ul><li>To establish a ‘premium’ image for the product </li></ul></ul></ul><ul><ul><ul><li>To exercise channel control </li></ul></ul></ul><ul><ul><ul><li>To ensure channel loyalty </li></ul></ul></ul><ul><ul><ul><li>To bring about price stability </li></ul></ul></ul><ul><ul><ul><li>To gain high profit margins </li></ul></ul></ul><ul><ul><li>Intermediaries </li></ul></ul><ul><ul><ul><li>Few in number (one or two) </li></ul></ul></ul><ul><ul><ul><li>Well established and have good reputation </li></ul></ul></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><ul><li>Few in number </li></ul></ul></ul><ul><ul><ul><li>Brand conscious </li></ul></ul></ul><ul><ul><ul><li>Willing to travel to store </li></ul></ul></ul>
    162. 162. Forms of Distribution <ul><li>Selective Distribution </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><ul><li>To achieve moderate market coverage </li></ul></ul></ul><ul><ul><ul><li>To establish a solid image </li></ul></ul></ul><ul><ul><ul><li>To exercise some channel control and loyalty </li></ul></ul></ul><ul><ul><ul><li>To achieve good sales and profits </li></ul></ul></ul><ul><ul><li>Intermediaries </li></ul></ul><ul><ul><ul><li>Moderate in number </li></ul></ul></ul><ul><ul><ul><li>Well established </li></ul></ul></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><ul><li>Moderate in number </li></ul></ul></ul><ul><ul><ul><li>Brand conscious </li></ul></ul></ul><ul><ul><ul><li>Willing to travel to store </li></ul></ul></ul>
    163. 163. Forms of Distribution <ul><li>Intensive Distribution </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><ul><li>To achieve widespread market coverage (maximise market penetration) </li></ul></ul></ul><ul><ul><ul><li>To gain channel acceptance </li></ul></ul></ul><ul><ul><ul><li>To achieve volume sales and profits </li></ul></ul></ul><ul><ul><li>Intermediaries </li></ul></ul><ul><ul><ul><li>Many in number </li></ul></ul></ul><ul><ul><ul><li>Broad range of dealers and outlets types </li></ul></ul></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><ul><li>Many in number </li></ul></ul></ul><ul><ul><ul><li>Convenience-oriented </li></ul></ul></ul>
    164. 164. <ul><li>“ Introduction” stage </li></ul><ul><ul><li>Create market for the new product </li></ul></ul><ul><ul><li>Manufacturer needs to have control on the product distribution </li></ul></ul><ul><ul><li>The value added by channel partner is very high </li></ul></ul><ul><ul><li>Few, exclusive outlets (Exclusive Distribution) </li></ul></ul><ul><li>“ Growth” stage </li></ul><ul><ul><li>Product has gained acceptance in the market and the customers are aware of the product </li></ul></ul><ul><ul><li>Expand the market </li></ul></ul><ul><ul><li>Employ several intermediaries (Selective Distribution) </li></ul></ul>Channel Strategies in Different PLC Stages
    165. 165. <ul><li>“ Maturity” stage </li></ul><ul><ul><li>Increase market share </li></ul></ul><ul><ul><li>Need to reach the maximum number of potential customers </li></ul></ul><ul><ul><li>Employ many intermediaries (Intensive Distribution) </li></ul></ul><ul><li>“ Decline” stage </li></ul><ul><ul><li>Make new customers </li></ul></ul><ul><ul><li>Reach the customers directly or through a few intermediaries (Exclusive distribution) </li></ul></ul>Channel Strategies in Different PLC Stages
    166. 166. Levels and Types of Distribution Channels PIMG M.B.A.-II Semester 8 Unit IV
    167. 167. Distribution Channel: definition <ul><li>A set of interdependent organisations involved in the process of making a product or service available for use or consumption </li></ul>
    168. 168. When to Use a Distribution Channel? <ul><li>Lack of resources to sell directly </li></ul><ul><li>The product is bought in small quantities by consumers </li></ul><ul><li>The channel members can provide valuable feedback to manufacturer regarding competition, consumer reaction, consumer needs and characteristics, etc. </li></ul><ul><li>Channel members invest in merchandising and displaying a product that help to make the product visible to the customers. </li></ul><ul><li>Need to provide consumer services, such as credit, product delivery, warranties and guaranties, product maintenance, etc. </li></ul><ul><li>Maximise the product availability to the target customers (both outlet wise and area wise in minimum time and at minimum-possible cost) </li></ul>
    169. 169. Major Distribution Channels <ul><li>For distribution of consumer goods, five different types of channels are widely used. </li></ul><ul><li>Business goods are normally distributed through four major types of channels. </li></ul><ul><li>There are only two common channels of distribution for services. </li></ul><ul><li>Some producers are not content to use only a single distribution channel and use multiple channels (a.k.a dual distribution ) </li></ul><ul><li>Multiple channels can aggravate middlemen and cause conflicts in the channels. </li></ul>
    170. 170. ULTIMATE CONSUMERS PRODUCERS OF CONSUMER GOODS Retailers Retailers Retailers Retailers Merchant wholesalers Merchant wholesalers Agents Agents Consumer Channels
    171. 171. BUSINESS USERS PRODUCERS OF BUSINESS GOODS Merchant wholesalers (industrial distributors) Agents Agents Merchant wholesalers (industrial distributors) Business Channels
    172. 172. ULTIMATE CONSUMERS OR BUSINESS USERS PRODUCERS OF SERVICES Agents Service Channels
    173. 173. Types of Distribution Channel <ul><li>Direct Channel </li></ul><ul><li>Manufacturer  Consumer </li></ul><ul><li>Indirect Channel </li></ul><ul><li>Manufacturer  Middlemen/Intermediaries  Consumer </li></ul>
    174. 174. Levels of Distribution Channel <ul><li>Zero-level Channel </li></ul><ul><li>Manufacturer  Consumer </li></ul><ul><li>One-level Channel </li></ul><ul><li>Manufacturer  Retailer  Consumer </li></ul><ul><li>Two-level Channel </li></ul><ul><li>Manufacturer  Wholesaler  Retailer  Consumer </li></ul>
    175. 175. Factors Affecting Choice of Distribution Channel PIMG M.B.A.-II Semester 9 Unit IV
    176. 176. Factors for Selecting a Distribution System <ul><li>Number of target customers </li></ul><ul><ul><li>Large: indirect </li></ul></ul><ul><ul><li>Small: direct </li></ul></ul><ul><li>Spread of target customers </li></ul><ul><ul><li>Concentrated: direct </li></ul></ul><ul><ul><li>Dispersed: indirect </li></ul></ul><ul><li>Volume of purchase </li></ul><ul><ul><li>Small: indirect </li></ul></ul><ul><ul><li>Bulk: direct </li></ul></ul><ul><li>Costs ( transportation, warehousing and stockholding) </li></ul><ul><ul><li>High: direct </li></ul></ul><ul><ul><li>Low: indirect </li></ul></ul>
    177. 177. Factors Influencing Choice of Distribution Form <ul><li>Product portfolio </li></ul><ul><li>Target audience </li></ul><ul><li>Resources available </li></ul>
    178. 178. Factors in Channel Selection <ul><li>Consumers </li></ul><ul><ul><li>Number </li></ul></ul><ul><ul><li>Concentration </li></ul></ul><ul><ul><li>Volume of purchase </li></ul></ul><ul><ul><li>Behaviour/expectations in terms of store locations </li></ul></ul><ul><ul><li>Shopping hours </li></ul></ul><ul><li>Product </li></ul><ul><ul><li>Technical nature </li></ul></ul><ul><ul><li>Perishability </li></ul></ul><ul><ul><li>Stocking norms </li></ul></ul><ul><ul><li>Value per unit </li></ul></ul>
    179. 179. <ul><li>Competition </li></ul><ul><ul><li>Number </li></ul></ul><ul><ul><li>Market shares </li></ul></ul><ul><ul><li>Concentration </li></ul></ul><ul><ul><li>Distribution method </li></ul></ul><ul><ul><li>Strengths </li></ul></ul><ul><li>Availability of intermediaries in terms of </li></ul><ul><ul><li>Territorial coverage </li></ul></ul><ul><ul><li>Experience and image in the market </li></ul></ul><ul><ul><li>Kind of customers serviced </li></ul></ul><ul><ul><li>Financial strength </li></ul></ul><ul><ul><li>Distribution facilities </li></ul></ul>Factors in Channel Selection
    180. 180. <ul><li>Company </li></ul><ul><ul><li>Sales and profit goals </li></ul></ul><ul><ul><li>Management ideology </li></ul></ul><ul><ul><li>Resources </li></ul></ul><ul><ul><li>Industry expertise </li></ul></ul>Factors in Channel Selection
    181. 181. Channel Members and Their Characteristics <ul><li>Stockist/Distributor </li></ul><ul><ul><li>Large-scale operators who sells goods and services to those who buy for resale (contract with the manufacturing company) </li></ul></ul><ul><ul><li>Buys from the manufacturing company in bulk </li></ul></ul><ul><ul><li>Can deal with more than one company at a time </li></ul></ul><ul><ul><li>Operate only in an assigned territory </li></ul></ul><ul><ul><li>Helps a manufacturer to achieve product penetration in far and wide markets that are difficult to access by the manufacturer itself (helps to maximise coverage) </li></ul></ul><ul><ul><li>Employ their own sales force for booking orders from retailers and wholesalers </li></ul></ul><ul><ul><li>Provide warehousing facility, thereby helping the manufacturing company to reduce costs </li></ul></ul><ul><ul><li>Does not keep competitors’ products </li></ul></ul>
    182. 182. <ul><li>Wholesaler </li></ul><ul><ul><li>Buys product in bulk and resells in bulk to retailers </li></ul></ul><ul><ul><li>Can operate in any territory and can stock any product </li></ul></ul><ul><ul><li>Operates on high volumes and low margins </li></ul></ul><ul><ul><li>Pay less attention to promotion as they deal with business customers and not end users </li></ul></ul><ul><ul><li>Looks for immediate profits </li></ul></ul><ul><li>Retailer </li></ul><ul><ul><li>Sells goods and services directly to the final consumer </li></ul></ul><ul><ul><li>Operates on low volumes and high margins </li></ul></ul><ul><ul><li>Stocks an assortment of products from a variety of suppliers </li></ul></ul><ul><ul><li>Pay attention to product display and merchandise to attract customers </li></ul></ul><ul><ul><li>May offer free home delivery and credit facility </li></ul></ul>Channel Members and Their Characteristics
    183. 183. <ul><li>Carrying & Forwarding Agent </li></ul><ul><ul><li>Provides godown space and transportation facility where the manufacturing company’s own infrastructure is not available </li></ul></ul><ul><ul><li>Buys in bulk </li></ul></ul><ul><ul><li>Works on a contract basis </li></ul></ul><ul><li>Franchise </li></ul><ul><ul><li>Puts in money and effort to run a business on the name of the principal </li></ul></ul><ul><ul><li>Invests on infrastructure but uses the principal’s name </li></ul></ul><ul><ul><li>Profit is shared by the franchise and the principal </li></ul></ul><ul><ul><li>Operates on the guidelines of the principal </li></ul></ul><ul><li>Value-added Reseller </li></ul><ul><ul><li>Common wit people dealing in computers </li></ul></ul><ul><ul><li>Provides attachments, such as floppy, computer table, etc </li></ul></ul>Channel Members and Their Characteristics
    184. 184. Functions and Mangement of Channel Members PIMG M.B.A.-II Semester 10 Unit IV
    185. 185. The Distribution Function <ul><li>distribution is about getting the product or service to the customer as conveniently as possible; it deals with access and availability </li></ul><ul><li>intermediaries perform many of the distribution functions on behalf of suppliers </li></ul><ul><li>merchant intermediaries actually take title to physical products that they distribute </li></ul><ul><li>agents do not ever own the products, but they arrange the transfer of title </li></ul>
    186. 186. Distribution Channels <ul><li>The role of distribution entails: </li></ul><ul><ul><li>Arranging for its sale and transfer of title </li></ul></ul><ul><ul><li>Promoting the product </li></ul></ul><ul><ul><li>Storing the product </li></ul></ul><ul><ul><li>Assuming some risk during distribution. </li></ul></ul><ul><li>Intermediaries often perform these activities for producer or consumer. </li></ul>
    187. 187. <ul><li>Provides market </li></ul><ul><li>information </li></ul><ul><li>Interprets consumers’ </li></ul><ul><li>wants </li></ul><ul><li>Promotes producers’ </li></ul><ul><li>products </li></ul><ul><li>Creates assortments </li></ul><ul><li>Stores products </li></ul><ul><li>Negotiates with </li></ul><ul><li>customers </li></ul><ul><li>Provides financing </li></ul><ul><li>Owns products </li></ul><ul><li>Shares risks </li></ul><ul><li>Anticipates wants </li></ul><ul><li>Subdivides large </li></ul><ul><li>quantities of a product </li></ul><ul><li>Stores products </li></ul><ul><li>Transports products </li></ul><ul><li>Creates assortments </li></ul><ul><li>Provides financing </li></ul><ul><li>Makes products </li></ul><ul><li>readily available </li></ul><ul><li>Guarantees products </li></ul><ul><li>Shares risks </li></ul>SALES SPECIALIST FOR PRODUCERS PURCHASING AGENT FOR BUYERS I N T E R M E D I A R Y The Distribution Functions
    188. 188. Functions Performed by Channel Members <ul><li>For the Manufacturer </li></ul><ul><ul><li>Market coverage </li></ul></ul><ul><ul><li>Inventory holding </li></ul></ul><ul><ul><li>Order processing </li></ul></ul><ul><ul><li>Market information </li></ul></ul><ul><ul><li>Customer support </li></ul></ul><ul><ul><li>Sales contact </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Promotion </li></ul></ul>
    189. 189. <ul><li>For the Consumer </li></ul><ul><ul><li>Product availability </li></ul></ul><ul><ul><li>Bulk breaking </li></ul></ul><ul><ul><li>Credit and finance </li></ul></ul><ul><ul><li>Customer service </li></ul></ul>Functions Performed by Channel Members
    190. 190. Selecting a Channel Partner <ul><li>Experience of the partner </li></ul><ul><li>Other product lines/brands handled by the partner </li></ul><ul><li>Growth and profit record of the partner </li></ul><ul><li>Financial strength of the partner </li></ul><ul><li>Market reputation </li></ul><ul><li>Size and quality of dealer sales force </li></ul><ul><li>Extent of coverage (present and potential) of the partner </li></ul><ul><li>Personal involvement in the business </li></ul><ul><li>Manufacturer-distributor fit </li></ul>
    191. 191. Channel Management <ul><li>Selecting channel partner(s) </li></ul><ul><ul><li>Those should be selected who have the capability to meet the marketing objectives of the manufacturer </li></ul></ul><ul><li>Monitoring channel partner(s) </li></ul><ul><li>Building relationship with channel partner(s) </li></ul>
    192. 192. Managing Physical Distribution PIMG M.B.A.-II Semester 11 Unit IV
    193. 193. Physical Distribution <ul><li>“ When is a refrigerator not a refrigerator?” </li></ul><ul><ul><li>“ When it is in Pittsburgh at the time it is desired in Houston.” </li></ul></ul><ul><li>Activities concerned with efficient movement of products and raw materials from producers to consumers </li></ul><ul><li>… .this is where the box goes. </li></ul>
    194. 194. Physical Distribution <ul><li>Why study in a marketing course? </li></ul><ul><ul><li>Marketing loses the sale, not physical distribution managers. </li></ul></ul><ul><ul><li>Critical cost area </li></ul></ul><ul><ul><ul><li>20% of GNP </li></ul></ul></ul><ul><ul><ul><li>1/2 of marketing costs </li></ul></ul></ul><ul><ul><ul><li>1/4 of total product costs </li></ul></ul></ul><ul><ul><ul><li>1/3 of food costs </li></ul></ul></ul>
    195. 195. Physical Distribution <ul><li>Why study in a marketing course? (cont.) </li></ul><ul><ul><li>Key interactions with marketing mix variables </li></ul></ul><ul><ul><li>Key corporate strategic area </li></ul></ul><ul><ul><ul><li>military origins </li></ul></ul></ul><ul><ul><ul><li>a buffer for manufacturing </li></ul></ul></ul><ul><ul><ul><li>a cost for finance </li></ul></ul></ul><ul><ul><ul><li>a selling necessity </li></ul></ul></ul>
    196. 196. Physical Distribution <ul><li>Total Cost Perspective </li></ul><ul><ul><li>Minimize total cost of physical distribution for a given level of customer service. </li></ul></ul><ul><ul><li>Cost-service orientation versus revenue enhancement </li></ul></ul><ul><ul><ul><li>A different way of managing assets </li></ul></ul></ul>
    197. 197. Physical Distribution <ul><li>Visible and hidden costs </li></ul><ul><ul><ul><li>warehouse, transportation, inventory carrying costs </li></ul></ul></ul><ul><ul><ul><li>stockout - lost profits due to failure to deliver </li></ul></ul></ul><ul><li>Visible and Hidden costs tradeoff </li></ul><ul><ul><ul><li>visible costs tradeoff against each other </li></ul></ul></ul><ul><ul><ul><li>… and together against hidden costs </li></ul></ul></ul><ul><li>Zero Sub-optimization </li></ul><ul><ul><ul><li>do not optimize one functional cost area to detriment of total costs </li></ul></ul></ul>
    198. 198. Physical Distribution <ul><li>Customer Service Standards </li></ul><ul><ul><li>Relate back to buyer behavior </li></ul></ul><ul><ul><li>Must be specific </li></ul></ul><ul><ul><ul><li>order processing and delivery time </li></ul></ul></ul><ul><ul><ul><li>assortments </li></ul></ul></ul><ul><ul><ul><li>order size constraints </li></ul></ul></ul><ul><ul><li>Must be coordinated with rest of marketing strategy </li></ul></ul><ul><ul><ul><li>This is how p.d. managers are constrained </li></ul></ul></ul>
    199. 199. Physical Distribution <ul><li>Warehousing </li></ul><ul><ul><li>Receive, identify, sort, store merchandise </li></ul></ul><ul><ul><ul><li>Efficiency in production requires manufacturing operations to be centralized and continuous, but demand is decentralized and not continuous. </li></ul></ul></ul><ul><ul><li>Used to hold inventory as a buffer </li></ul></ul><ul><ul><ul><li>Demand for warehouses is a function of the need for inventory. </li></ul></ul></ul>
    200. 200. Physical Distribution <ul><li>Warehousing (cont.) </li></ul><ul><ul><li>What type? </li></ul></ul><ul><ul><ul><li>Private versus public </li></ul></ul></ul><ul><ul><li>How many? </li></ul></ul><ul><ul><ul><li>Centralized or decentralized </li></ul></ul></ul><ul><ul><li>Where? </li></ul></ul><ul><ul><ul><li>Near factory or near customers </li></ul></ul></ul>
    201. 201. Physical Distribution <ul><li>Warehousing (cont.) </li></ul><ul><ul><li>Private </li></ul></ul><ul><ul><ul><li>owned by firm that owns the inventory inside </li></ul></ul></ul><ul><ul><ul><li>stable inventory levels </li></ul></ul></ul><ul><ul><ul><li>peculiar handling requirements </li></ul></ul></ul><ul><ul><ul><li>high volume </li></ul></ul></ul>
    202. 202. Physical Distribution <ul><li>Warehousing (cont.) </li></ul><ul><ul><li>Public </li></ul></ul><ul><ul><ul><li>rented space </li></ul></ul></ul><ul><ul><ul><li>highly seasonal demand </li></ul></ul></ul><ul><ul><ul><li>low volume </li></ul></ul></ul>
    203. 203. Physical Distribution <ul><li>Warehousing (cont.) </li></ul><ul><ul><li>Centralized </li></ul></ul>warehouse customer customer customer Lower warehouse cost, lower inventory cost, higher transportation costs
    204. 204. Physical Distribution <ul><li>Warehousing (cont.) </li></ul><ul><ul><li>Decentralized </li></ul></ul>warehouse field warehouse customer customer higher warehouse cost, higher inventory cost, lower transportation costs customer
    205. 205. Physical Distribution <ul><li>Inventory Management </li></ul><ul><ul><li>Match quantity produced with quantity demanded </li></ul></ul><ul><ul><ul><li>holding costs </li></ul></ul></ul><ul><ul><ul><li>ordering costs </li></ul></ul></ul><ul><ul><ul><li>stockout costs </li></ul></ul></ul>
    206. 206. Physical Distribution <ul><li>Inventory Management (cont.) </li></ul><ul><ul><li>When to reorder? </li></ul></ul><ul><ul><li>How much to reorder? </li></ul></ul><ul><ul><li>How much to keep as safety stock? </li></ul></ul><ul><ul><li>Key is accurate forecasting </li></ul></ul><ul><ul><ul><li>… of demand </li></ul></ul></ul><ul><ul><ul><li>… order filling time </li></ul></ul></ul>
    207. 207. Physical Distribution <ul><li>Inventory Management (cont.) </li></ul>time Stock on hand place order receive order order filling time Zero safety stock model
    208. 208. Physical Distribution <ul><li>Inventory Management (cont.) </li></ul>time Stock on hand place order receive order If demand increases... stockout safety stock
    209. 209. Physical Distribution <ul><li>Inventory Management (cont.) </li></ul>time Stock on hand place order receive order If order filling time increases... stockout safety stock
    210. 210. Physical Distribution <ul><li>Transportation Management </li></ul><ul><ul><li>What mode? </li></ul></ul><ul><ul><li>What route? </li></ul></ul>
    211. 211. Physical Distribution <ul><li>Transportation Management (cont.) </li></ul><ul><ul><li>Modes </li></ul></ul><ul><ul><ul><li>water </li></ul></ul></ul><ul><ul><ul><ul><li>bulk, low value, slow </li></ul></ul></ul></ul><ul><ul><ul><ul><li>inland waterways heavily subsidized by government </li></ul></ul></ul></ul><ul><ul><ul><li>rail </li></ul></ul></ul><ul><ul><ul><ul><li>flexible, long-haul, bulk, still slow, rough (high damage) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>dominant mode in ton-miles </li></ul></ul></ul></ul>
    212. 212. Physical Distribution <ul><li>Transportation Management (cont.) </li></ul><ul><ul><li>Modes (cont.) </li></ul></ul><ul><ul><ul><li>Motor Carriers (trucks) </li></ul></ul></ul><ul><ul><ul><ul><li>flexible, medium to short haul, high theft </li></ul></ul></ul></ul><ul><ul><ul><ul><li>only true door-to-door mode </li></ul></ul></ul></ul><ul><ul><ul><ul><li>dominant mode in number of shipments </li></ul></ul></ul></ul><ul><ul><ul><li>Air </li></ul></ul></ul><ul><ul><ul><ul><li>fast, high value, light weight </li></ul></ul></ul></ul><ul><ul><ul><ul><li>flexible but expensive </li></ul></ul></ul></ul><ul><ul><ul><li>Pipeline </li></ul></ul></ul><ul><ul><ul><ul><li>liquids and near liquids, inflexible, high fixed cost, not vc </li></ul></ul></ul></ul>
    213. 213. Physical Distribution <ul><li>Transportation Management </li></ul><ul><ul><li>Trends </li></ul></ul><ul><ul><ul><li>increased use of air freight </li></ul></ul></ul><ul><ul><ul><li>truck trains - “double,” “triple” bottoms </li></ul></ul></ul><ul><ul><ul><li>rail making comeback </li></ul></ul></ul><ul><ul><ul><ul><li>3:1 fuel efficiency advantage over trucks </li></ul></ul></ul></ul><ul><ul><ul><ul><li>10:1 + over planes </li></ul></ul></ul></ul><ul><ul><ul><li>subsidies on inland waterways decreasing </li></ul></ul></ul><ul><ul><ul><li>deregulation has led to increase in intermodal firms </li></ul></ul></ul>
    214. 214. Physical Distribution <ul><li>Symptoms of Poor PDM </li></ul><ul><ul><li>low inventory turnover </li></ul></ul><ul><ul><ul><li>6-12 times a year minimum </li></ul></ul></ul><ul><ul><li>stockout </li></ul></ul><ul><ul><ul><ul><li>inventory = 2 mos. Sales > 99% in stock </li></ul></ul></ul></ul><ul><ul><ul><ul><li>inventory = 1 mo. Sales > 90% in stock </li></ul></ul></ul></ul><ul><ul><li>interwarehouse shipments </li></ul></ul><ul><ul><ul><ul><li>do not ship it to yourself </li></ul></ul></ul></ul><ul><ul><li>frequent use of premium freight </li></ul></ul><ul><ul><ul><ul><li>instead of what system was designed to use </li></ul></ul></ul></ul>
    215. 215. Physical Distribution <ul><li>PD Management Trends </li></ul><ul><ul><li>increasing importance relative to the rest of operations, marketing </li></ul></ul><ul><ul><li>increasing fuel costs </li></ul></ul><ul><ul><li>international complexity </li></ul></ul><ul><ul><ul><li>rail traffic in Europe </li></ul></ul></ul><ul><ul><li>increasing opportunities…Supply Chain Management, </li></ul></ul><ul><ul><ul><li>recycling </li></ul></ul></ul>
    216. 216. Marketing Information System PIMG M.B.A.-II Semester 12 Unit V
    217. 217. Marketing Information System <ul><li>A Marketing Information System (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. </li></ul>
    218. 218. Marketing Information System <ul><li>‘ MKIS (MIS) is a set of procedures and methods for the regular, planned collection, analysis and presentation of information for use in marketing decisions’ </li></ul><ul><li>American Marketing Association </li></ul>
    219. 219. What is marketing information system ? <ul><li>Marketing information consists of people, equipment and procedures to gather,sort,analyze,evaluate and distribute needed, timely and accurate information to marketing decision makers. </li></ul>Marketing decision makers use the data to identify and solve marketing related problems.
    220. 220. <ul><li>Marketing Information system supplies three types of information. </li></ul><ul><li>Recurrent Information </li></ul><ul><li>Monitoring Information </li></ul><ul><li>Requested Information </li></ul>
    221. 221. <ul><li>Recurrent Information </li></ul><ul><li>This is the data that an MIS supplies periodically about the market share of a specific product and customer’s awareness of company’s brands. The data may be supplied on weekly, monthly or yearly basis. </li></ul>
    222. 222. <ul><li>Monitoring Information </li></ul><ul><li>This is the data obtained from the regular scanning of certain sources. Marketing managers may need data related to competition or the industry. It is essential so that marketing managers can be alert and identify potential problems </li></ul>
    223. 223. <ul><li>Requested Information </li></ul><ul><li>This information is developed in response to some specific request by the marketing manager. Secondary data or primary data through survey research are collected in response to the specific request. The MIS supplies the requested information for decision making. </li></ul>
    224. 224. Marketing Information system External data Internal data Requested information Marketing Research division Marketing Information system Marketing Managers Division
    225. 225. Sources of Marketing Information . <ul><li>The MIS information inputs come from different sources, viz., both within and outside firms . Some of the commonly used internal sources of information are: </li></ul><ul><li>Sales Analysis - The marketing information system retrieves sales information and put them in usable and disaggregated form. It detects various marketing strengths and weaknesses. Computer assisted sales analysis uncovers significant details for management needs. </li></ul>
    226. 226. <ul><li>Cost Analysis -The cost analysis is possible with the effective accounting system. The classification and analysis of the cost of production, cost of distribution and selling may provide adequate information for the management purposes . </li></ul><ul><li>Financial Records - The financial records & publications may provide adequate opportunities for management of sales & marketing activities .Many companies prepare periodical final statement to observe the balance of each item of financial records. </li></ul>
    227. 227. Why Information Is Needed Marketing Environment Strategic Planning Customer Needs Competition Strategic Planning Strategic Planning Strategic Planning Strategic Planning
    228. 228. Importance of Marketing Information System <ul><li>Anticipation Of Customer Demand -Every marketer needs up-to-date knowledge about consumer needs and wants. </li></ul><ul><li>Systematic Approach -Expanding markets and competitive marketing environment require adequate market intelligence system. </li></ul><ul><li>Economic indicator -Marketers must have latest information on the changing trends of supply, demand and prices </li></ul>
    229. 229. <ul><li>Significance of Analysing Competition -Marketer cannot survive without having information regarding nature , character and size of competition to be met. </li></ul><ul><li>Development of Technology -Marketers must have latest information regarding technological development. </li></ul><ul><li>Understanding the Consumer -Information system can establish proper two way flow of information and understanding between marketers and consumer. </li></ul><ul><li>Marketing Planning -Marketing plans and programmes are based upon information supplied by economic forecasts and market research. </li></ul>
    230. 230. <ul><li>Consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers. </li></ul><ul><li>Functions: </li></ul><ul><ul><li>Assess Information Needs. </li></ul></ul><ul><ul><li>Develop Needed Information. </li></ul></ul><ul><ul><li>Distribute Information. </li></ul></ul>What is a Marketing Information System (MIS)?
    231. 231. Marketing Information System
    232. 232. Marketing Information System Developing Information Information Analysis Internal Databases Marketing Research Marketing Intelligence Distributing Information Assessing Information Needs Marketing Managers Marketing Environment Marketing Decisions and Communications The Marketing Information System
    233. 233. Functions of a MIS: Assessing Information Needs Examine Cost/ Benefit of Desired Information Monitor Environment for Information Managers Should Have <ul><li>Conduct Interviews With Managers to Determine </li></ul><ul><li>What Information is </li></ul><ul><li>Desired, Needed, and Feasible to Obtain. </li></ul>
    234. 234. <ul><li>Assessing Information Needs </li></ul><ul><li>A good MIS balances the information managers would like to have against what they really need and what is feasible to offer. </li></ul><ul><li>Too much information can be as harmful as too little. </li></ul><ul><li>MIS must watch the marketing environment to enable to provide the decision makers key marketing decisions. </li></ul><ul><li>Marketing should undertake cost benefit analysis – costs of getting additional information against the benefits </li></ul>
    235. 235. Functions of a MIS: Developing Information Internal Data Collection of Information from Data Sources Within the Company Marketing Intelligence Collection and Analysis of Publicly Available Information about Competitors and Developments in the Marketing Environment From: Accounting, Sales Force, Marketing, Manufacturing From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies Marketing Research Systematic Design, Collection, Analysis, and Reporting of Data Relevant to a Specific Marketing Situation Facing an Organization Obtains Needed Information for Marketing Managers From the Following Sources:
    236. 236. <ul><li>Developing Information – information needed by competitors can be obtained from : internal data , marketing intelligence , and marketing research . </li></ul><ul><li>Internal Data – computerized collections of information obtained from data sources within the company e.g. </li></ul><ul><li>- Accounting Dept- financial statement, record of sales, costs, cash flows </li></ul><ul><li>- Manufacturing Dept – report on production schedules, shipments and inventories </li></ul><ul><li>- Marketing Dept - furnishes information – demographics, and buying behavior </li></ul><ul><li>- Customer Services Dept - records of customer </li></ul><ul><li>satisfaction or service problems </li></ul><ul><li>The database information must be well integrated and readily accessible through user-friendly interfaces to enable easy access and effective use by managers. </li></ul>
    237. 237. Developing Information – cont’d <ul><li>Marketing Intelligence </li></ul><ul><li>A systematic collection and analysis of publicly available information about competitors and development in the marketing environment </li></ul><ul><li>Can be gathered from many sources from suppliers /resellers - can also be collected from the company’s own personnel – executives, engineers and scientists, purchasing agents and the sales force. </li></ul><ul><li>Competitors reveal information through –annual reports, business publications, trade show exhibits, press releases, advertisements and web pages. </li></ul><ul><li>Companies buy intelligence information from outside suppliers, marketing research firms, and consultants who specialized in competitive intelligence and also by surfing the internet. </li></ul><ul><li>Increasingly, marketing intelligence activities have gone high-tech </li></ul>
    238. 238. Developing Information – cont’d <ul><li>Marketing Research </li></ul><ul><li>The system design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. </li></ul><ul><li>Every marketer needs research – ranging from market potential and market share studies, assessment of customer satisfaction and purchase behavior, studies of pricing, product, distribution, and promotion activities. </li></ul><ul><li>A company can conduct market research at its own department or can also be outsourced. </li></ul>
    239. 239. Distributing Information <ul><li>Marketing information has no value until managers use it to make better marketing decisions </li></ul><ul><li>Information gathered to be delivered to the right people , at the right time </li></ul><ul><li>Marketing managers need this reports for making regular planning, implementation, and control decisions. </li></ul><ul><li>With recent advances in computers, software and telecommunications most companies have decentralized their marketing communications –marketing managers have direct access to the information network from any personal computer and other means. </li></ul>
    240. 240. The Marketing Research
    241. 241. The Marketing Research Process Defining the Problem and Research Objectives Developing the Research Plan Implementing the Research Plan Interpreting and Reporting the Findings
    242. 242. Marketing Research Process Step 1. Defining the Problem & Research Objectives Exploratory Research Descriptive Research Causal Research <ul><li>Test hypotheses about cause- </li></ul><ul><li>and-effect relationships. </li></ul><ul><li>Tests hypotheses about cause- </li></ul><ul><li>and-effect relationships. </li></ul><ul><li>Gathers preliminary information </li></ul><ul><li>that will help define the problem </li></ul><ul><li>and suggest hypotheses. </li></ul><ul><li>Describes such things as market </li></ul><ul><li>potential for a product or attitudes </li></ul><ul><li>and demographics of consumers </li></ul><ul><li>who buy the product. </li></ul>
    243. 243. Primary Data Collection Process Step A. Research Approaches Experimental Research Observational Research Gathering data by observing relevant people, actions, and situations (Exploratory Information) Survey Research Asking individuals about attitudes, preferences or buying behaviors (Descriptive Information) Using groups of people to determine cause-and-effect relationships (Causal Information)
    244. 244. The components of a computerised MKIS User Interface Application Software Support System Mrktg Database
    245. 245. Benefits of MKIS <ul><li>Market Monitoring </li></ul><ul><li>Strategy Development </li></ul><ul><li>Strategy Implementation </li></ul><ul><li>Functional integration </li></ul>
    246. 246. A Retail Store MKIS
    247. 247. Conclusion <ul><li>Marketing information system is an important factor in a growing business today with increased competition and environmental changes affecting the consumer world . It is the marketing information system that makes or unmakes any organization in the perspective of marketing strategy .Marketing information system very aptly called as life blood of marketing. </li></ul>
    248. 248. Marketing Decision Support System (MDSS)
    249. 249. Types of Information Systems <ul><li>Information System (IS) </li></ul><ul><li>Decision Support System (DSS) </li></ul><ul><li>Marketing Decision Support System (MDSS) </li></ul>Essentials of Marketing Research Kumar, Aaker, Day MDSS IS DSS MDSS
    250. 250. Decision Support Systems (DSS) <ul><li>DSS models are developed and adapted to support each firms own decision problems </li></ul><ul><li>Used to retrieve data, transform it into usable information, and disseminate it to users </li></ul><ul><li>Allow managers to interact directly with database to retrieve information (EIS) </li></ul><ul><li>Provides a modeling function to help interpret information retrieved (OLAP) </li></ul>
    251. 251. Exemplary Entry Screen for Executive Information System Essentials of Marketing Research Kumar, Aaker, Day
    252. 252. Online Analytical Processing (OLAP) <ul><li>Also known as multidimensional data analysis. </li></ul><ul><li>Fast, flexible data summarizations. </li></ul><ul><li>Online analyses and reporting capabilities. </li></ul><ul><li>Ability to view trends over time. </li></ul><ul><li>Beyond traditional two-dimensional row and column data analysis. </li></ul>Essentials of Marketing Research Kumar, Aaker, Day
    253. 253. 3-D Plot in OLAP Essentials of Marketing Research Kumar, Aaker, Day
    254. 254. Types of Information for MDSS <ul><li>Recurring market and accounting data from market analysis and accounting activities </li></ul><ul><li>Intelligence relevant to future strategy of business </li></ul><ul><li>Marketing research studies not of a recurring nature </li></ul><ul><li>May contain a broad range of data from both internal and external sources </li></ul>Essentials of Marketing Research Kumar, Aaker, Day
    255. 255. Purpose of MDSS <ul><li>Identify problems and opportunities at an early stage </li></ul><ul><li>Provides early information for a head start or at least to keep up with competitors </li></ul><ul><li>Not totally separate activities </li></ul><ul><li>MDSS specifically for marketing decisions and used by marketing staff </li></ul><ul><li>Direct data access shifts to line positions </li></ul>Essentials of Marketing Research Kumar, Aaker, Day
    256. 256. Level of Data Aggregation <ul><li>Disaggregated or aggregated </li></ul><ul><li>Disaggregate data are more flexible and are typically used by companies (sales per customer) </li></ul><ul><li>Example: Spiegel Inc. Mail Order </li></ul><ul><ul><ul><li>disaggregate records for identifying consumers with slow order cycles (fewer catalogs) </li></ul></ul></ul><ul><ul><ul><li>identifying consumers who have missed their order cycle (reminder letters, discounts) </li></ul></ul></ul><ul><ul><ul><li>identifying customers who order repeatedly in the same department (specialty mailings) </li></ul></ul></ul>Essentials of Marketing Research Kumar, Aaker, Day
    257. 257. <ul><li>Forecasting and Demand Management </li></ul>
    258. 258. Demand Management <ul><li>Defined as “focused efforts to estimate and manage customers’ demand, with the intention of using this information to shape operating decisions.” </li></ul><ul><li>Recent practice has been just the opposite, with the manufacturer determining the what, where, when, and how many of the sale. </li></ul>
    259. 259. Demand Management <ul><li>It is this disconnect between manufacturing and the demand at the point of consumption that attracts attention to demand management. </li></ul><ul><li>Any attention paid to demand management will likely result in benefits flowing through the supply chain. </li></ul>
    260. 260. On the Line: Ingram Ingram Micro <ul><li>Took leadership in creating a demand chain among its supply chain partners. </li></ul><ul><li>$22 billion sales of 200,000 products from 1,500 manufacturers to 140,000 resellers in 130 countries. </li></ul><ul><li>Ingram Micro is using a demand chain, rather than a supply chain, to focus on meeting consumer demand. </li></ul>
    261. 261. On the Line: Ingram Micro
    262. 262. Demand Management Objectives <ul><li>Gathering and analyzing knowledge about consumers, their problems, and their unmet needs. </li></ul><ul><li>Identifying partners to perform the functions needed in the demand chain. </li></ul><ul><li>Moving the functions that need to be done to the channel member that can perform them most effectively and efficiently. </li></ul>
    263. 263. Demand Management Objectives <ul><li>Sharing with other supply chain members knowledge about consumers and customers, available technology, and logistics challenges and opportunities. </li></ul><ul><li>Developing products and services that solve customers’ problems. </li></ul><ul><li>Developing and executing the best logistics, transportation, and distribution methods to deliver products and services to consumers in the desired format. </li></ul>
    264. 264. Demand Management: Related Issues <ul><li>Lack of communication between departments results in little or no coordinated response to demand information. </li></ul><ul><li>Too much emphasis is often placed on forecasts of demand with little attention paid to collaborative efforts and strategic and operational plans that need to be developed from the forecasts. </li></ul>
    265. 265. Demand Management: Related Issues <ul><li>Demand information is often used more for tactical and operations purposes than for strategic purposes. </li></ul><ul><li>Primary emphasis should be on using demand information to create likely scenarios of the future as they relate to product supply alternatives. </li></ul><ul><li>Resulting business successes will be a outcome of the better match of demand to product availability. </li></ul>
    266. 266. Traditional Forecasting: Demand Forecasting <ul><li>A major component of demand management is forecasting the amount of product that will be purchased by consumers or end users. </li></ul><ul><li>In the integrated supply chain all other demand will be derived from the primary demand. </li></ul><ul><li>A key objective is to anticipate and respond to primary demand as it occurs in the marketplace. </li></ul>
    267. 267. Traditional Forecasting <ul><li>An example of integrating forecasting with production is illustrated by Figure 5-1. </li></ul><ul><li>Long-term (more than three years), midrange (one to three years), and short-term forecasting are each important contributors to the forecasting process. </li></ul>
    268. 268. Figure 5-1 Integration of Sales Forecasting and Production
    269. 269. Collaborative Planning, Forecasting, and Replenishment <ul><li>CPFR is recognized as a breakthrough business model for planning, forecasting, and replenishment. </li></ul><ul><li>Uses available Internet-based technologies to collaborate from operational planning through execution. </li></ul><ul><li>Developed by Wal-Mart and Warner-Lambert in 1995. </li></ul>
    270. 270. Collaborative Planning, Forecasting, and Replenishment <ul><li>The CPFR model is illustrated in Figure 5-2. </li></ul><ul><li>Emphasizes a sharing of consumer purchasing data among and between supply chain partners. </li></ul><ul><li>Creates a direct link between the consumer and the supply chain. </li></ul>
    271. 271. Figure 3-3 CPFR Business Model Chapter 3 Management of Business Logistics, 7 th Ed.
    272. 272. Collaborative Planning, Forecasting, and Replenishment <ul><li>The plan and the forecast are entered by suppliers and buyers into an Internet accessible system. </li></ul><ul><li>Within established parameters, any of the participating partners is empowered to change the forecast. </li></ul><ul><li>Only a few CPFR initiatives have been made public, but results are impressive. </li></ul>
    273. 273. Supply Chain Technology: Midwest Pharmaceuticals <ul><li>Using a statistically advanced demand-management system the company discovered that in one of its five 3,000 product families, 72% of the products were in the mature phase and 14% were in decline. </li></ul><ul><li>Management modified and improved its product investment strategy. </li></ul><ul><li>In essence, demand management helped make the company more profitable and effective. </li></ul>
    274. 274. <ul><li>E-Commerce and Online Marketing </li></ul>
    275. 275. Key Features of the Internet Audience <ul><li>Number of users online in the United States </li></ul><ul><ul><li>around 170 million in mid 2001 </li></ul></ul><ul><ul><li>expected 215 million in 2005 </li></ul></ul><ul><ul><li>rate of growth has begun to slow </li></ul></ul><ul><li>Intensity and scope of use </li></ul><ul><ul><li>Both increasing </li></ul></ul><ul><ul><li>56% of adult users logging on in a typical day </li></ul></ul>
    276. 276. Key Features of the Internet Audience <ul><li>Demographics and access </li></ul><ul><ul><li>some demographic groups have much high percentage of Internet users </li></ul></ul><ul><ul><li>different patterns of usage exist across groups </li></ul></ul><ul><li>Ethnicity </li></ul><ul><ul><li>Variation across ethnic groups not as wide as age groups </li></ul></ul><ul><ul><li>57% white </li></ul></ul><ul><ul><li>47% Hispanic </li></ul></ul><ul><ul><li>43% African American </li></ul></ul><ul><ul><li>Hispanics and African Americans going online at higher rates </li></ul></ul>
    277. 277. Key Features of the Internet Audience <ul><li>Education </li></ul><ul><ul><li>82% of individuals with a college degree online </li></ul></ul><ul><ul><li>39% with high school education of less online </li></ul></ul><ul><li>Gender </li></ul><ul><ul><li>Men accounted for the majority of Internet users at first </li></ul></ul><ul><ul><li>Women now outnumber men online </li></ul></ul>
    278. 278. Key Features of the Internet Audience <ul><li>Lifestyle impact </li></ul><ul><ul><li>Intense Internet usage may cause a decline in traditional social activities </li></ul></ul><ul><ul><li>Social development of children using Internet intensively instead of engaging in face-to-face interactions or undirected play out of doors may also be negatively impacted </li></ul></ul><ul><li>Media choices </li></ul><ul><ul><li>More time using the Internet </li></ul></ul><ul><ul><li>Less time spent using traditional media </li></ul></ul>
    279. 279. A Growing Range of Online Activity Slide 7-
    280. 280. The Purchasing Decision of Online Customer <ul><li>Five stages in the consumer decision process: </li></ul><ul><ul><li>awareness of need </li></ul></ul><ul><ul><li>search for more information </li></ul></ul><ul><ul><li>evaluation of alternatives </li></ul></ul><ul><ul><li>the actual purchase decision </li></ul></ul><ul><ul><li>post-purchase contact with the firm </li></ul></ul>
    281. 281. The Consumer Decision Process
    282. 282. Online Consumer Decision Process <ul><li>Adds two new factors: </li></ul><ul><ul><li>Web site capabilities -- the content, design, and functionality of a site </li></ul></ul><ul><ul><li>Consumer clickstream behavior -- the transaction log that consumers establish as they move about the Web and through specific sites </li></ul></ul>
    283. 283. A Model of Online Consumer Behavior
    284. 284. How Consumers Behave Online: Clickstream Analysis <ul><li>about 40% of online users purchase something entirely online </li></ul><ul><li>another 40% of online users research products on the Web, but purchase them offline </li></ul><ul><li>Most online purchases involve small ticket items, with the top categories being books, music, apparel and accessories, software, and toys </li></ul>
    285. 285. How Consumers Behave Online: Clickstream Analysis <ul><li>More that 85% of shoppers go directly to vendors sites by typing a product into a search engine, going straight to the merchant’s site, or entering a store or brand name in a search engine </li></ul><ul><li>More that 80% of shoppers are shopping on the Web for specific products or items </li></ul>
    286. 286. Increasing Online Purchases <ul><li>There are a number of actions e-commerce could take to increase the likelihood that shoppers and non-shoppers would purchase online more frequently. </li></ul><ul><ul><li>better prices </li></ul></ul><ul><ul><li>easier comparison shopping </li></ul></ul><ul><ul><li>easier returns </li></ul></ul><ul><ul><li>better security </li></ul></ul>
    287. 287. What Consumers Buy on the Web Slide 7-
    288. 288. How Shoppers Find Vendors and Stores Online Slide 7-
    289. 289. Intended Purchases on the Web
    290. 290. Factors that Would Encourage More Online Purchasing Slide 7-
    291. 291. <ul><li>Online consumers </li></ul><ul><ul><li>Now more mainstream and diverse </li></ul></ul><ul><ul><ul><li>Has created new targeting opportunities </li></ul></ul></ul><ul><ul><ul><li>Online behavior differs by age </li></ul></ul></ul><ul><ul><li>Online consumers differ from traditional off-line consumers </li></ul></ul><ul><ul><ul><li>They initiate and control the exchange process </li></ul></ul></ul><ul><ul><ul><li>Value information highly </li></ul></ul></ul>
    292. 292. Online Marketing: its advantages and disadvantages <ul><li>Buyer Benefits of E-Commerce: </li></ul><ul><li>Convenience </li></ul><ul><li>Easy and private </li></ul><ul><li>Greater product access/selection </li></ul><ul><li>Access to comparative information </li></ul><ul><li>Interactive and immediate </li></ul><ul><li>Seller Benefits of E-Commerce: </li></ul><ul><li>Relationship building </li></ul><ul><li>Reduced costs </li></ul><ul><li>Increased speed and efficiency </li></ul><ul><li>Flexibility </li></ul><ul><li>Global access, global reach </li></ul>
    293. 293. Advantages of Online Consumer Marketing <ul><li>Lower Prices </li></ul><ul><ul><li>Bots (short for robots): programs that check hundreds of sites, gather and assemble information, and bring it back to the sender </li></ul></ul><ul><li>Convenience </li></ul><ul><ul><li>Worldwide access, Day or night, Customized products and information </li></ul></ul><ul><li>Personalization </li></ul><ul><ul><li>Improves the quality of the shopping experience </li></ul></ul><ul><ul><li>Improves customer satisfaction </li></ul></ul>
    294. 294. Advantages of Online Consumer Marketing (Contd.) <ul><li>Relationship Building </li></ul><ul><ul><li>Crucial to success </li></ul></ul><ul><ul><li>Online’s personalization helps </li></ul></ul><ul><ul><li>Easier for small businesses with small budgets </li></ul></ul><ul><ul><li>Customer service is the key </li></ul></ul><ul><li>Increased Efficiency </li></ul><ul><ul><li>Greater profit margins </li></ul></ul><ul><ul><li>Educating customers online frees salespeople from answering routine questions </li></ul></ul>
    295. 295. Advantages of Online Consumer Marketing (Contd.) <ul><li>Cost Reductions </li></ul><ul><ul><li>Reduced start-up costs </li></ul></ul><ul><ul><li>Reduced operating costs </li></ul></ul><ul><ul><li>Frees funds for new marketing efforts </li></ul></ul><ul><li>A More Level Playing Field </li></ul><ul><ul><li>Even small firms with small budgets can compete in the global marketplace </li></ul></ul><ul><ul><li>Helps eliminate discrimination and allow minority businesses to succeed on their own merits </li></ul></ul><ul><ul><ul><li>AutoNetwork.com </li></ul></ul></ul>
    296. 296. The Internet <ul><li>The Internet (or sometimes just called the Net ) is a world-wide interconnected network of computers that lets a computer in one part of the world communicate with a computer or computer network located somewhere else in the world, using either an ordinary telephone line or a special dedicated data line. </li></ul>Computer Modem Telephone line Internet ISP Software
    297. 297. The Internet (cont.)
    298. 298. THE INTERNET CONSUMERS COMPANY WEB SITE COMPANY Getting online
    299. 299. The World Wide Web <ul><li>The World Wide Web (which is also simply known as the Web ) is a way of looking at and organising the information on the Internet. The web is basically a subset of the Internet and organises information according to pages - more than 10 billion of them - that lie all over the Internet. </li></ul><ul><li>These pages are interlinked with each other using hypertext (also called hyperlinks ). In other words, each page is connected to other pages, that are connected to other pages, that in turn are connected to still more pages, and so on, much like a spider’s web - hence the name, the Web </li></ul>
    300. 300. Online benefits <ul><li>Business </li></ul><ul><ul><li>Market development </li></ul></ul><ul><ul><li>Diversification </li></ul></ul><ul><ul><li>Market penetration </li></ul></ul><ul><ul><li>Product development </li></ul></ul><ul><li>Marketing </li></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><li>Market communications </li></ul></ul><ul><ul><li>Customer service </li></ul></ul><ul><ul><li>Public relations </li></ul></ul><ul><ul><li>Marketing research </li></ul></ul>
    301. 301. Online benefits (cont.) <ul><li>6Cs </li></ul><ul><ul><li>Cost reduction </li></ul></ul><ul><ul><li>Capability </li></ul></ul><ul><ul><li>Competitive advantage </li></ul></ul><ul><ul><li>Communications improvement </li></ul></ul><ul><ul><li>Control </li></ul></ul><ul><ul><li>Customer service management </li></ul></ul>
    302. 302. Online benefits (cont.) <ul><li>Target marketing </li></ul><ul><li>Message tailoring </li></ul><ul><li>Interactive capabilities </li></ul><ul><li>Information access </li></ul><ul><li>Sales potental </li></ul><ul><li>Creativity </li></ul><ul><li>Exposure </li></ul><ul><li>Speed </li></ul>
    303. 303. Internet marketing communications <ul><li>Marketspace </li></ul><ul><li>Digital </li></ul><ul><li>Interactive </li></ul><ul><li>Deep </li></ul><ul><li>Global </li></ul><ul><li>Non-linear </li></ul><ul><li>Mass-marketing </li></ul><ul><ul><li>One-to-one </li></ul></ul><ul><ul><li>One-to-many </li></ul></ul><ul><ul><li>Many-to-many </li></ul></ul>
    304. 304. Internet marketing communications cont. <ul><li>Personal </li></ul><ul><ul><li>Personalisation </li></ul></ul><ul><ul><li>Customisation </li></ul></ul><ul><li>Pull </li></ul><ul><li>Two-way communications </li></ul><ul><li>Communities </li></ul><ul><li>Control </li></ul><ul><li>Interface </li></ul><ul><li>Shortening of the communications channel </li></ul><ul><ul><li>Disintermediation </li></ul></ul><ul><ul><li>Reintermediation </li></ul></ul>
    305. 305. Supporting marketing communications with the Internet <ul><li>Multimedia enhanced communications </li></ul><ul><li>Speed of communications </li></ul><ul><li>24/7 </li></ul><ul><li>Linking together different technologies (e-mail, fax and SMS) </li></ul><ul><li>Direct marketing tool </li></ul><ul><li>E-newsletter </li></ul><ul><li>FAQs </li></ul><ul><li>Discussion forums </li></ul>
    306. 306. Differences <ul><li>Demographic differences </li></ul><ul><li>Cultural differences </li></ul><ul><ul><li>Techno-lusters </li></ul></ul><ul><ul><li>Academic buffs </li></ul></ul><ul><ul><li>Techno boffins </li></ul></ul><ul><ul><li>Get aheads </li></ul></ul><ul><ul><li>Hobbyists </li></ul></ul><ul><ul><li>Knowledge </li></ul></ul><ul><ul><li>Traders </li></ul></ul><ul><ul><li>Business bods </li></ul></ul><ul><ul><li>Home users </li></ul></ul><ul><li>Market differences </li></ul>
    307. 307. Different ways customers use the Internet … cont. <ul><li>Directed information seekers </li></ul><ul><li>Undirected information seekers </li></ul><ul><li>Directed buyers </li></ul><ul><li>Bargain hunters </li></ul><ul><li>Entertainment seekers </li></ul>
    308. 308. One-to-one marketing <ul><li>Stages </li></ul><ul><ul><li>Attracting customers to the site </li></ul></ul><ul><ul><li>Providing information </li></ul></ul><ul><ul><li>Capture customer information to maintian relationship </li></ul></ul><ul><ul><li>Maintain appropriate dialogue </li></ul></ul><ul><li>Technologies </li></ul><ul><ul><li>Web page personalisation </li></ul></ul><ul><ul><li>E-mail </li></ul></ul><ul><ul><li>Databases </li></ul></ul><ul><ul><li>Virtual communities </li></ul></ul>
    309. 309. Shaping buying behaviour <ul><li>Directed information seekers </li></ul><ul><li>Undirected information seekers </li></ul><ul><li>Directed buyers </li></ul><ul><li>Bargain hunters </li></ul><ul><li>Entertainment seekers </li></ul>
    310. 310. The Internet as an information source <ul><li>Public versus private </li></ul><ul><li>Finding information on the Internet </li></ul><ul><ul><li>Going directly to the page </li></ul></ul><ul><ul><li>Guessing addressing </li></ul></ul><ul><ul><li>Search engines

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