MBA Advanced

1. The Portable
MBA
in Marketing
Alexander Hiam & Charles Schewe
Presentation By:
Anshul Pareek
Bhola Singh
Kartik Mysore
Lokesh Vasnani
Mayuri Negi
Nichay Garg

2. Marketing
All the new direction in management thoughts and practices
are marketing. Quality marketing program align
manufacturing and services standards with costumer
preferences & competitors capabilities.

3. Peter Ducker Say's
Marketing is so basic it can not be considered a separate
function its the whole business seen from the point of view of
its result that is its costumer point of view.

4. Essence of Marketing
First Last Always

5.  Idea of Marketing is only since 1950's
 Every organization must do marketing to survive
 Companies should define them selves in terms of the
benefits they provide to the costumers.
 Marketing is the sum total of activities that keeps costumer
focus and ensures that companies offerings are valued by
the costumers

6. 4 P's in Maketing
 Product (Focal point of marketing mix):- more than goods
services i.e., desired or sold. It involves planning, R&D,
Services(installation & maintenance)
 Price:- It is the cost or what the buyer must give up to receive
the product.
 Place : Product is available where and when it is wanted.
 Promotion:- Most visible to costumers. It is the entire field of
sales communication, sales promotion and public relation.

7. 3 More variables of Marketing
 1S
 Services
 2C's
Costumer Sensitivity
Convenience

8. Rank of Elements in Marketing Mix are:
1) Costumer Sensitivity
2) Product
3) Convenience
4) Service
5) Prize
6) Place
7) Promotion

9.  To manage costumer sensitivity manager needs to manage
attitude of all employees whose work affect costumer in any
way

10. Planning
 Strategic Plan
 Tactical Plan
Marketing participate in organizations Strategic Process

11. Approaches
 Top down Approach(general)
 Bottom Up (is now)
More marketing oriented

12. Focus & Flexibility
 Focus : Determining what you do best& building on it
(it originates at the top)
 Flexibility: Drafting possible scenario for the future

13.  Environmental Trends
 External Internal Analysis
 Alternative Plans
 Situational Analysis

14. Strength & Weakness
 Not only tangible and observable but also intangible
resources
 Skills of persons and organizations image.

15. THE ENVIRONMENT MARKETING

16. KEY FORCES OF EXTERNAL FORCES
• Administrative evnironment
• Technology environment
• Political environment
• Economic environment
• Social and cultural environment

17. ELEMENTS OF CULTURE
• Language
• Religion
• Values and attitude
• Ethics
• Social organisation

18. Marketing Research & Information – Figuring
out what customers want
Successful interpretation is crucial.
Management of huge data and accuracy to be maintained.
Excellent research achieved by – a)increasing sources info b)designing better
studies c) managing marketing info more aggressively d)reporting info clearly
e)reducing errors
Survey results seen and got through – books and journals,public
documents,superiors,Employees,Consultants and research firms and employees.
 Research info positively repellant for managers.

19. Types of Sources-
• Informal Sources – supplemented by other resources. Example:
Sony,American Express,P&G
• Formal Sources – got from primary or original resources.Example-
Customers
• Formal Procedures-competitors annual reports,employment
ads,technological advancements.
• Newspapers and magazines are the types of sources which give us
weekly research data.
• Scientific papers,speeches,displays and brochures also carry market
research data.

20. Survey Requirements-
• The WHAT- 1) Conducting a Q&A session. 2) Systematic Observation
• The WHY- 1) To measure market potential. 2) Evaluate new products.
• HOW MUCH- the amount of money spent on survey(25%-50%
usually)
• Criterion of the survey should be fixed.

21. Types of Research Firms-
Syndicated Services- AC nealson made a survey on demography of
TV audiences.
Custom Research Firm-designs customized survey.
Speciality Line
Field Research firm
Field research interview firm

22. Stages of Market Research-
 Stage 1-Formulating a problem(toughest) goals set only after problem
identified. “NEED TO KNOW” from Nice to know associated with mangers very
crucial here.
Stage 2-Determine needs,information and sources Hypothesis proved or
disproved.
 Stage 3-Select the research techniqueobservation,experiment and survey.
Stage 4 –Sample design1)Selecting Respondents 2)Select sample only.
Stage5 Process and analyze the data.
Marketing information defines customer needs.

23. Market Research Revenue-
• The research industry is worth U.S. $2.5 Billion
• Inflation Adjusted revenue fell down in 1990.
• There was an 8% growth rate in 1980’s.
• Managers have a love & hate relationship with the research industry which has
resulted in an extremely fluctuating growth rate.
• Useful for managers even if not directly responsible.

24. Profiling Markets and Forecasting Sales-The art
and science behind the numbers
• Forecasting Measuring the evil.
• To develop sound strategy for a product1) Description 2)Understanding 3)
Prediction.
• Complete picture of customer needsWHO,WHEN,HOW,WHERE,HOW
• DemographicsAnalize trends
• Forecasting is toughhuman behavior is slippery.
• Potential for exchange is most important for markets to exist.
• Mass statistics  describe market demographics.

25. An instance-
 In 1990, the population of USA was 250 million.
The baby boomers spent 10 times more on their first child.
Couples have a salary of more than US $35,000(dual career couple)
2/3 rd women return to work after child birth.
Older people increasing in countries like Japan,China.
The different markets are  1)Youth market 2)Baby boomers 3)Middle agers
4)Elderly
Baby boom created demographic bulgehousing market to job opportunities
affected.
$60-200elderly market share(spend and don’t pass over).
Sweden  80% women are in workforce.

26. Segmentation Positioning and
Targeting

27. Segmentation
• Why segmentation ?

28. • Can the Market be identified and measured
• Is the Segment large Enough
• Is the Market Reachable
• Character of the Market
(does the market change quickly)
Points for Segmentation

29. Basis of Segmentation
• Demography-age, sex, marital status
• Socioeconomic- education, income, occupation
• Geographic- location, nation, state
• Lifestyle- lifestyle of the consumer
• Occasion- birthday, marriages, retirement
• Knowledge of brand

30. How to Carry Out Segmentation
• Determine the market boundary
• Deciding the segmentation variable to be used
• Collecting segmentation data-research
• Develop a profile
• Target the segment to serve
• Design the marketing plan

31. Strategies
• Concentration- focuses on single group
• Differentiated- each customer is unique

32. Product Development-
the business of innovation
“Good ideas don’t begin around the conference table.
They begins with the consumer”.
by Charles hooper
Executive vice president And
chief operating officer,
helene curtis

33. Product life cycle

34. • Product Inception
• Development
 Six categories of new product using booz , allen and
hamilton are:
1. New to the world products
2. New product line
3. Additions to existing product line
4. Improvement in or revision of existing product
5. Repositioning
6. Cot reduction

35. Organising the new product
Stages in the development of new product
Generating idea
Screening ideas
Developing and testing the concept
Business analysis
Product development
Test marketing
Commercialization

36. Factor for making product harder to initate
• Product form
• Product function
• Product intangibles
• Pricing
• Promotion
• Distribution
• Firm characteristics

37. • Product management strategies
• Full Versus Limited Line
• The Line - Filling Strategy
• Line and Brand Extension strategies
• Line – Stretching Strategies
• Repositioning strategies
• Product deletion strategies
• Maturity and decline
Product management
( Birth ,death and resurrection)

38. The Nature of Pricing
• Price: Any transaction for exchange of something of
value (money) for some amount of satisfaction.
• Price: Rent, Fare, Interest, Premium, Bribe
• Managers: Less importance to price
• Consumers: Most important variable
• Services: Difficult to price than goods

39. Setting Prices
• Sales Objectives:
1. Sales Growth
2. Maintain Sales
3. Survival
• Profit Objectives:
1. Profit Maximization
ROI =
𝑷𝒓𝒐𝒇𝒊𝒕
𝑰𝒏𝒗𝒆𝒔𝒕𝒆𝒅 𝑪𝒂𝒑𝒊𝒕𝒂𝒍
• Competitive Objectives:
• Price set to meet or prevent competition.
• Example: Computer Industry: IBM vs Compaq
• “Price War”

40. Pricing
Strategies
Cost Based
Demand
Based
Competitor
Based

41. 1. Cost Based:
• Total Fixed Costs (TFC): Costs do not change with quantity
• Examples: plant & equipment, depreciation etc.
• Total Variable Costs (TVC): Costs varies with quantity
• Examples: Raw material, fuel etc.
• Total Costs(TC)= TFC + TVC
• Marginal Cost (MC): Cost of producing one extra unit

42. • Formula Pricing Strategy:
• To calculate price covering all costs with leaving some profit
• Cost-Plus Pricing Strategy:
• List price determined by adding profit to cost per unit
• Appropriate when demand is known and stable
• Risky : Costs change rapidly, marketer cannot know whether
price is in line with consumers’ perception about value.
• Affected by intermediaries (distributors, retailers): Markup
Pricing

43. • Target Return Pricing Strategy:
• Marketer seeks to obtain targeted percentage return on
capital used to produce and distribute product.
• Breakeven Pricing Strategy:
• Volume at which no profit or loss incurred
• BEP : enough units sold to cover TFC & TVC
Breakeven volume (units)=
𝑇𝐹𝐶
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒−𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡/𝑢𝑛𝑖𝑡

44. • Experience Curve Pricing Strategy:
• Average total cost decreases when more units are produced.
85% experience curve

45. 2. Demand-Based Pricing Strategy:
• As Demand increase price upper limit increase
• Very high price, no exchange
• Prestige Pricing Strategy:
• High Price, High sales
• Price Elastic strategy:
• Changes in quantity purchased relative to change in price
1. Elastic demand: High percentage of quantity sold
2. Inelastic demand: Small Percentage of quantity sold
3. Unitary demand: Same Percentage Change in Price &
quantity
• Price Range strategy: People refrain when price is low or high beyond
limits

46. 3. Competition:
• Strategic Pricing:
• More context specific
• Different for new or old products
• New Product Introductions:
1. Skimming approach- Initially high price and then lowered
2. Penetration strategy: low price, high volume
• Pricing when Intangibles are important:
• Marketer identifies all benefits that buyer will receive in
exchange

47. • Pricing in Oligopolies:
• One Company sets prices for entire industry, Dominate
• Pricing when buying is habitual
• Stick to traditional price- change in size and content
• Pricing to reflect buyer behavioral attitudes
• Consumer faces confusing choices

48. Pricing and Product Life Cycle

49. Value Pricing and Marketing Concept
• Giving more for less

50. Place and Time- The distribution function
• Distribution: Movement of products in all stages of development,
resource procurement through manufacturing to final sales
• Distribution Channels: Relationship, Business partners, manufacturers,
wholesalers, retailers
• Reduce distance between buyers and sellers
• Intermediaries:
• Experts in distribution activities
• Efficient and effective movement
• Middlemen, wholesalers
• Sorting, concentration and dispersion

51. • Services provided by Intermediaries:
1. Informal marketing research
2. Buying
3. Selling
4. Bulk buying
5. Promotion
6. Transportation
7. Storage
8. Financing
9. Risk Bearing
10. Management services

52. Product Distribution- without intermediaries

53. Product Distribution- with intermediaries

54. • Channels of Distribution:
Resource
Procurer
Producer Consumer

55. Product distribution channels-consumer

56. Product distribution channels- Industrial

57. Distribution Strategy
• Strategic and Tactical decisions
• Main Factors:
• Market Coverage
• Channel control
• Costs

58. PROMOTION
• TV ads, Radio, Print ads, billboards, contests, coupons, direct
mail
• Objectives:
• Informing
• Persuading
• Reminding
• Shifts Demand Curve

59. • Advertising
• Direct Marketing
• Personal Selling
• Sales Promotion
• Public Relations

60. THANK YOU