Webinar on Marketing Basics by IIM Rohtak for Admissions-2014


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Webinar on Marketing Basics by IIM Rohtak for Admissions-2014. Here are the videos of the webinar:

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Webinar on Marketing Basics by IIM Rohtak for Admissions-2014

  1. 1. Prashansa Khandelwal Nisarg Vyas A webinar by PR Cell, IIM Rohtak for Preparation for WAT-PI process, Admissions-2014
  2. 2. WHAT IS MARKETING & MARKETING MANAGEMENT? Marketing is identifying and meeting customers needs profitably  Example: CCD  Marketing Management: It is all about creating superior customer value  Example: Flipkart’s cash on delivery payment method 
  3. 3. Persons Places Events Experiences Goods Services Properties Organizations What all is Marketed? Information Ideas
  4. 4. DIFFERENCE BETWEEN SALES AND MARKETING Selling is the ultimate result of marketing. It is short term concept that fulfills sales volume objectives whereas marketing is a long term concept built around identifying and fulfilling customer needs.  Marketing shows how to reach to the Customers and build long lasting relationship while selling is matching customer demands with the firm’s product. 
  5. 5. Product Physical Environment Price 7 Ps of Marketing Process Promotion People Place
  6. 6. PRODUCT Core Benefit: The service or benefit the customer is really buying. The customer is buying rest and sleep Basic Product: The room includes a bed, bathroom, towels, desk, dresser and closet Expected Product: What customers minimally expect? Clean bed, fresh towels, working lamps Augmented Product: Exceeds Customer Expectations Potential Product: Encompasses all possible augmentations and transformations the product or offering might undergo in the future 5 Levels of Product Example: Hotels
  7. 7. PRODUCT ASSORTMENT The Product mix is the total variety of products a firm. For example Samsung's product mix includes mobile phones, netbooks, tablets, televisions, fridges, microwaves, printers and memory cards.  A Product line is a number of products grouped together based on similar characteristics. The characteristic used to split products, will depend on the firm and its product strategy.  The Product Line Length shows the number of different products in a product line. A long product line has lots of different products in it and a short product line has a small number of different products.  Product Line Depth - Some of the product types in a product line may be split again into groups, the product line depth shows how many subgroups the product line contains.  The Product mix width is the number of product lines in the product mix. A wide product mix increases the type of customers a firm can target.
  8. 8. PRICE Matching product benefits with cost  Sound pricing decisions are crucial to a successful business and should be considered at both long-term strategic and short-term tactical levels.  Pricing Strategies depends on the objectives of the company. Maximum Market Share: Penetration Pricing Maximum Market Skimming: Price Skimming 
  9. 9. PLACE To make the product conveniently available to the target market consistent with their purchasing pattern  Distribution Network, Supply Chain, Logistics 
  10. 10. PRICING At what Price you will offer your product to the consumer. Some of the pricing strategies widely used are: Price Skimming – Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply.  Penetration pricing – It is a pricing strategy where the price of a product is initially set at a price lower than the eventual market price, to attract new customers. The strategy works on the expectation that customers will switch to the new brand because of the lower price.  Premium Pricing – Use a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxury goods.  Psychological Pricing – This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example 'price point perspective' 99 cents not one dollar.  Cost Plus–Cost-plus pricing - The method determines the price of a product or service that uses direct costs, indirect costs, and fixed costs whether related to the production and sale of the product or service or not. These costs are converted to per unit costs for the product and then a predetermined percentage of these costs is added to provide a profit margin.  Loss Leader –Loss leader or leader is a product sold at a low price (at cost or below cost) to stimulate other, profitable sales.
  11. 11. PROMOTION A promotional mix specifies how much attention to pay to each of the elements and how much money to budget for each.  A promotional plan can have one or more of the following objectives: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. 
  12. 12. ELEMENTS OF PROMOTION MIX: Advertising Any Paid Form of Non-personal Communication. Personal Selling Personal Presentations by a firm’s Sales Force. Sales Promotion Short-term Incentives to Encourage Sales. Public Relations Direct Marketing Building Good Relations with Public by Obtaining Favorable Unpaid Publicity. Direct Communications With Individuals to Obtain an Immediate Response.
  13. 13. STP- SEGMENTATION, TARGETING & POSITIONING Market Segmentation • Dividing the market into subsets of consumers who share a similar set of needs and wants. • Geographic, Demographic, Psychographic Target Market • A group of customers towards which a business has decided to aim its marketing efforts and ultimately its products and services. • E.g. Women in age group 18-40 for a cosmetics brand Product Positioning • The way by which the marketers attempt to create a distinct impression in the customer's mind • E.g. BMW positioned itself as an automobile that offered both luxury and performance
  16. 16. STAGES OF PLC The PLC is a model that illustrates the different stages (six in total) that a product or service will pass through. Each stage has its own attributes and will vary in length (time) with different products and services. The time that it takes for your product/service to move through the PLC will largely be determined by how effective your marketing plan is.  Stage 1: Development - As soon as you put pen to paper, this is where the PLC of the product/service begins. This is the time where you will design and develop your product/service with all the direct costs that may be incurred such as wages, materials for prototypes, research, etc.  Stage 2: Introduction - This is the time when the product/service is new in the market and a high degree of marketing will be needed such as promotions and advertising to increase commercial awareness.
  17. 17. STAGES OF PLC (CONTD.)     Stage 3: Growth - Once your product/service has become established in the market, you can expect the number of sales to increase rapidly and marketing expenditure may now be used for brand building. This is the stage where you will benefit from high profits but this is also the stage where your profits will peak. Stage 4: Maturity - The stage of maturity begins when the product/service sales peak and become stable mainly due to the introduction of competitors during the end of the growth stage (influencing the move into the maturity stage). Stage 5: Saturation - The saturation stage is sometimes overlooked in many PLC models but is seen as the first sign of product/service decline. At this point, the product/service has no future for profits because there are too many competitors or the product/service is no longer popular. Stage 6: Decline - The product/service moves into the decline stage when sales start to drop continuously and will be a result of the issues that moved the product through maturity and saturation
  18. 18. BRAND, BRANDING, BRAND-EQUITY Brand •Any name, sign, symbol, design to identify goods or services and differentiate from competitors •CCD, LV, McDonalds Branding •Endowing products and services with the power of brand •Creates mental structure that helps consumers organize their knowledge about products or services, aiding decision making Brand Equity •It is the value of your brand •Reflected in the prices, market share and profitability the brand commands