Valencia Soap By White Sight Co.


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Valencia Soap By White Sight Co.

  1. 1. |1 WHITE SIDE COMPANY INTRODUCTION White side co. had been established in 2008 in Dubai by Mr.Usman Bashir a biuionaire in Dubai. Mr. Usman is basically an industrialist. In the year of 2008in the month of July, he felt a great need forgetter infrastructure of health soap for health purpose boom in his country. So he decided to launch VALENCIA SOAP. In the start, it was a single person company but afterward general public from all over the world was invited for subscription. Many Pakistani now has a reasonable share in White side co. In the earlier stages, it only worked in UAE states successfully, but as time passes, Mr.Usman with the consultation of his Directors of the company agreed that Pakistan is Worlds best place at that time for VALENCIA SOAP Boom. So now VALENCIA SOAP is in Pakistan since Sep 2008. It is working in almost all the cities of Pakistan with best available packages and services. COMPANY OBJECTIVES TRUST OF THE CUSTOMER ON OWN SERVICES IS the pride of the VALENCIA SOAP. We always tried to arrange best possible services to our customer which any other company does not offer. We really value the customer. A right word is customer have the status of order perception is that we are contribution in the health progress of Pakistan. We will be all the time with Pakistan this process as our motto is “Sari Zindgi Sath Sath” The mystery of soap making Suggestions & Feedback: Valencia SOAP Health Comes first
  2. 2. |2 I always wanted to be one of those Suzy homemakers that did a lot of Canning and jarring and making my own soap and candles! All that stuff sounded so great to me. I never tried because I thought it was too hard! As of late however at the ripe old age of 45 I have decided it's now or never so I am going on some exploits and I am taking you with me (if you want to come!)We are now entering the twilight zone of 'Country gal 101' Today’s lesson is Wonderful and healthy soap making made easy! There is a list of 'soap making' sites at the end visit them for soap making in different degrees of difficulty. I don't know about you but the easy way works for me! I think I might advance one day but not today! I am a beginner myself but soap making, like I said, has always interested me! Add some Spice to your soap! Suggestions & Feedback: Valencia SOAP Health Comes first
  3. 3. |3 Ways to make your soap great! As shown below there are many ways to make your soap uniquely yours! Scented oils and healthy skin oils and butters herbs such as eucalyptus and Mint, Cinnamon, Aloe and Green tea just to name a few. You can scent with Fragrance oils and molds them into anything you want with soap molds! You can Even add sand or crunched up nuts to give the soap texture and 'scrub' qualities :) ((((TIP)))) Suggestions & Feedback: Valencia SOAP Health Comes first
  4. 4. |4 Put them in the freezer for an hour and they will come out of the molds easier! It works well to spray your mold with cooking spray! You can also add color to Make the soap beautiful! This stuff makes GREAT gifts! People love it! Unit Price Qty. Cost COCONUT SOAP BASE, 1 LB BLOCK [Remove] $5.49 $5.49 LIQUID SOAP SCENTS: GARDENIA, LIQUID SOAP SCENT [Remove] $4.99 $4.99 LIQUID SOAP SCENTS: LAVENDER, LIQUID SOAP SCENT [Remove] $4.99 $4.99 Subtotal: $15.47 Total: $15.47 Keep Shopping Related items: LIQUID SOAP COLORS: BLUE, LIQUID SOAP COLOR Price: $1.99 Suggestions & Feedback: Valencia SOAP Health Comes first
  5. 5. |5 GLYCERIN SOAP BASE, 5 LB BLOCK Price: $18.99 LIQUID SOAP COLORS: YELLOW, LIQUID SOAP COLOR Price: $1.99 An Easy Soap recipe! This should be a family affair! Get yo' Mama or Yo' Granny and get in that kitchen together! Nothing brings a family closer than making something together! What you'll need: • Glycerin soap, clear or white (This only works with glycerin soap - transparent Neutrogena bars will work fine.) • Soap dye in colors or your choice • Soap or candy molds • Microwave safe liquid measuring cup • Spoon • Popsicle stick or coffee stirrer • Knife (adults only) How to make it: 1. If using bars of soap, cut into three pieces. If using purchased glycerin blocks, cut off 2-3 pre-measured chunks. 2. Put glycerin soap into a measuring cup, microwave according to package directions (or 20 seconds), then in 10-second intervals until melted. 3. If you want colors, this is the time to add the dye. Add a few drops and stir with a spoon. If you want the color darker, simply add more dye. If you want fragrance add fragrance oil. If you Suggestions & Feedback: Valencia SOAP Health Comes first
  6. 6. |6 want a 'scrubbing side' to your soap add sand or crushed nuts. If you want healthy soap add aloe or olive oil now! 4. Slowly pour the liquid soap into the mold. Set aside to harden for 45 minutes to an hour. Some soap may harden sooner than others. 5. Rinse out measuring cup and repeat process for other colors. 6. After soap has cooled completely, pop them out of the molds. If you find this difficult, you can place the soap into the freezer for ten minutes and try again. Tips: • For a tie dye effect, don't add dye until after you have poured white soap into the molds. Add random drops of dye into white soap in mold and swirl with a coffee stick or toothpick. • For multicolor layers, pour the first color in and allow it to cool enough to form a skin (about 5 minutes). Carefully and very slowly add the second color over that. • For pastel shades, add only a couple drops of dye. For more bold colors, add more drops. • Make your own colors by mixing the dyes, or create a tie dye effect by using two or more colors instead of just one. Have fun with it! That’s what life is about discovering and inventing! MARKET SEGMENTATION INTRODUCTION: What we are seeing here is that within the some general market there are groups or customers __marker segments __ with different wants, buying preferences, of product- use behavior. In some markets these differences are relatively minor, and the benefits sought by consumers can be satisfied with a Suggestions & Feedback: Valencia SOAP Health Comes first
  7. 7. |7 single marketing mix. In other markets, some customers are unwilling to make the compromises necessitated by a single marketing mix. As a result, the segments must be targeted individually with different marketing mixes. A specific market segment (people or organizations) for which the seller designs a particular marketing mix is a target market. Using the marketing mix, a firm attempts to attractive position for offering in the minds of the target market. SEGMENTATION The variation in customers’ responses to a marketing mix can be traced to differences in buying habits, in ways in which the good or services is used, or in motives for buying. Suggestions & Feedback: Valencia SOAP Health Comes first
  8. 8. |8 Customer oriented marketers take these differences into considerations, but they usually cannot afford to design a different marketing mix for every customer. Consequently, most marketers operate between the extremes of one marketing mix for all and a different one for each customer. To do so involves market segmentation. A process of dividing the total market for a good or service into several smaller, internally homogeneous groups. The essence of segmentation is that the members of each group are similar with respect to the factors that influence demand. A major element in a company’s success is the ability to segment its market effectively. Segmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some Suggestions & Feedback: Valencia SOAP Health Comes first
  9. 9. |9 consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiated strategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentrated strategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices. In contrast, most airlines follow the differentiated strategy: They offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday. These travelers—usually business travelers—pay high fares but can only fill the planes up partially. The same airlines then sell some of the remaining seats to more price sensitive customers who can buy two weeks in advance and stay over. Note that segmentation calls for some tough choices. There may be a large number of variables that can be used to differentiate consumers of a given product category; yet, in practice, it becomes impossibly cumbersome to work with more than a few at a time. Thus, we need to determine which variables will be most useful in distinguishing different groups of consumers. We might thus decide, for example, that the variables that are most relevant in separating different kinds of soft drink consumers are (1) preference for taste vs. low calories, (2) preference for Cola vs. non-cola taste, (3) price sensitivity—willingness to pay for brand names; and (4) heavy vs. light consumers. We now put these variables together to arrive at various combinations. Several different kinds of variables can be used for segmentation. • Demographic variables essentially refer to personal statistics such as income, gender, education, location (rural vs. urban, Suggestions & Feedback: Valencia SOAP Health Comes first
  10. 10. | 10 East vs. West), ethnicity, and family size. Campbell’s soup, for instance, has found that Western U.S. consumers on the average prefer spicier soups—thus, you get a different product in the same cans at the East and West coasts. Facing flat sales of guns in the traditional male dominated market, a manufacturer came out with the Lady Remington, a more compact, handier gun more attractive to women. Taking this a step farther, it is also possible to segment on lifestyle and values.” • Some consumers want to be seen as similar to others, while a different segment wants to stand apart from the crowd. • Another basis for segmentation is behavior. Some consumers are “brand loyal”—i.e., they tend to stick with their preferred brands even when a competing one is on sale. Some consumers are “heavy” users while others are “light” users. For example, research conducted by the wine industry shows that some 80% of the product is consumed by 20% of the consumers—presumably a rather intoxicated group. • One can also segment on benefits sought, essentially bypassing demographic explanatory variables. Some consumers, for example, like scented soap (a segment likely to be attracted to brands such as Irish Spring), while others prefer the “clean” feeling of unscented soap (the “Ivory” segment). Some consumers use toothpaste primarily to promote oral health, while another segment is more interested in breathe freshening. In the next step, we decide to target one or more segments. Our choice should generally depend on several factors. First, how well are existing segments served by other manufacturers? It will be more difficult to appeal to a segment that is already well served than to one whose needs are not currently being served well. Secondly, how large is the segment, and how can we expect it to grow? (Note that a downside to a large, rapidly growing segment is that it tends to attract competition). Thirdly, do we have strengths as a company that will help us appeal particularly to one group of consumers? Firms may already have an established reputation. While McDonald’s has a great reputation for fast, consistent quality, family friendly food, it would be difficult to convince consumers that McDonald’s now offers gourmet food. Thus, Mud’s would probably Suggestions & Feedback: Valencia SOAP Health Comes first
  11. 11. | 11 be better off targeting families in search of consistent quality food in nice, clean restaurants. Positioning involves implementing our targeting. For example, Apple Computer has chosen to position itself as a maker of user- friendly computers. Thus, Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as a computer for “non-geeks.” The Visual C software programming language, in contrast, is aimed a “techies.” Michael Treaty and Fred Wiremen suggested in their 1993 book The Discipline of Market Leaders that most successful firms fall into one of three categories: • Operationally excellent firms, which maintain a strong competitive advantage by maintaining exceptional efficiency, thus enabling the firm to provide reliable service to the customer at a significantly lower cost than those of less well organized and well run competitors. The emphasis here is mostly on low cost, subject to reliable performance, and less value is put on customizing the offering for the specific customer. Wal-Mart is an example of this discipline. Elaborate logistical designs allow goods to be moved at the lowest cost, with extensive systems predicting when specific quantities of supplies will be needed. Suggestions & Feedback: Valencia SOAP Health Comes first
  12. 12. | 12 • Customer intimate firms, which excel in serving the specific needs of the individual customer well. There is less emphasis on efficiency, which is sacrificed for providing more precisely what is wanted by the customer. Reliability is also stressed. Nordstrom’s and IBM are examples of this discipline. • Technologically excellent firms, which produce the most advanced products currently available with the latest technology, constantly maintaining leadership in innovation. These firms, because they work with costly technologies that need constant refinement, cannot be as efficient as the operationally excellent firms and often cannot adapt their products as well to the needs of the individual customer. Intel is an example of this discipline. Tracy and Wireman suggest that in addition to excelling on one of the three value dimensions, firms must meet acceptable levels on the other two. Wal-Mart, for example, does maintain some level of customer service. Nordstrom’s and Intel both must meet some standards of cost effectiveness. The emphasis, beyond meeting the minimum required level in the two other dimensions, is on the dimension of strength. Repositioning involves an attempt to change consumer perceptions of a brand, usually because the existing position that the brand holds has become less attractive. Sears, for example, attempted to reposition itself from a place that offered great sales but unattractive prices the rest of the time to a store that consistently offered “everyday low prices.” Repositioning in practice is very difficult to accomplish. A great deal of money is often needed for advertising and other promotional efforts, and in many cases, the repositioning fails. To effectively attempt repositioning, it is important to understand how one’s brand and those of competitors are perceived. One approach to identifying consumer product perceptions is multidimensional scaling. Here, we identify how products are perceived on two or more “dimensions,” allowing us to plot brands against each other. It may then be possible to attempt to “move” one’s brand in a more desirable direction by selectively promoting certain points. There are two main approaches to multi-dimensional scaling. In the a priori approach, market researchers identify Suggestions & Feedback: Valencia SOAP Health Comes first
  13. 13. | 13 dimensions of interest and then ask consumers about their perceptions on each dimension for each brand. This is useful when (1) the market researcher knows which dimensions are of interest and (2) the customer’s perception on each dimension is relatively clear (as opposed to being “made up” on the spot to be able to give the researcher a desired answer). In the similarity rating approach, respondents are not asked about their perceptions of brands on any specific dimensions. Instead, subjects are asked to rate the extent of similarity of different pairs of products (e.g., How similar, on a scale of 1-7, is Snicker’s to Chitchat, and how similar is Tolerance to Three Musketeers?) Using a computer algorithm, the computer then identifies positions of each brand on a map of a given number of dimensions. The computer does not reveal what each dimension means—that must be left to human interpretation based on what the variations in each dimension appears to reveal. This second method is more useful when no specific product dimensions have been identified as being of particular interest or when it is not clear what the variables of difference are for the product category. MARKETING SEGMENTATION: Dividing a market into distinct groups of users with different needs, characteristic, or behavior who might require separate products or marketing mixes. Dividing a market into distinct group of buyers with different needs, characteristics and behavior who might require separate product or marketing mix. The company identifies different way to segment the market and develops profiles of the resulting market segments. MARKET TARGETING: The second step is market targeting – evaluating each markets segment’s attractiveness and selecting one or more of the market segments to enter. Suggestions & Feedback: Valencia SOAP Health Comes first
  14. 14. | 14 The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Suggestions & Feedback: Valencia SOAP Health Comes first
  15. 15. | 15 MARKET POSITIONING: The third step is market positioning – setting the competitive positioning for the product and creating a detailed marketing mix. Formulating competitive positioning for a product and a detailed marketing mix Suggestions & Feedback: Valencia SOAP Health Comes first
  16. 16. | 16 STEPS IN MARKET SEGMENTATION, TARGETING AND POSITIONING 6. Develop marketing mix for each target segment 5. Develop positioning for each target segment Market Positioning 4. Select the target segments Market Targeting 3. Develop measures of segment attractiveness Market Segmentation 2. Develop profiles of resulting segments 1. Identify bases for segmenting the market Suggestions & Feedback: Valencia SOAP Health Comes first
  17. 17. | 17 BENEFITS OF MARKET SEGMENTATION Market segmentation is customer-oriented, and thus it is consistent with the marketing concept. In segmenting, we first identify the wanes of customers within a submarket and then decide if it is practical to develop a marketing mix to satisfy those wants. By tailoring marketing programs to individual market segments, and company can do a better marketing fob and make more efficient use of its marketing resources. Market segmentation is customer-oriented, and thus it is consistent with the marketing concept. In segmenting, we first identify the wants of customers within a submarket and then decide if it is practical to develop a marketing mix to satisfy those wants. BENEFIT SEGMENTATION: Dividing the market into groups according to the different benefits that consumers seed from the product. o BENEFIT SOUGHT Suggestions & Feedback: Valencia SOAP Health Comes first
  18. 18. | 18 o USER STATUS o USAGE RATE o LOYALTY STATUS BENEFIT SOUGHT: A powerful form of segmentation is to group buyers according to the different benefits that they seed from the product. Benefit segmentation requires finding the major benefits people look for in the product class, the kinds of people who look for each benefit, and the major brands that deliver each befit. USER STATUS: Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. A company’s market position also influences its focus. Market share leaders focus on attracting potential users, whereas smaller firms focus on attracting current users away from the market leader. USAGE RATE: Markets can also be segmented into light, medium, and heavy product users. Heavy users are often a small percentage of the market but account for a high percentage of total consumption. LOYALTY STATUS: A market can also be segmented by consumer loyalty. Consumers can be loyal to brands (Tide), stores (Wal-Mart), and companies (Ford). Buyers can be divided into groups according to their degree of loyalty. Some consumers are completely loyal __ they buy one brand all the time. Others are Suggestions & Feedback: Valencia SOAP Health Comes first
  19. 19. | 19 somewhat loyal __ they are loyal to two or three brands of a given product or favor one brand while sometimes buying others. Still other buyers show no loyalty to and brand. They either want something different each time they buy or they buy whatever’s on sale. BENEFITS SEGMENTATION OF HEALTH SOAP MARKET Benefits Demographic Behavior Psychographics Favored Segments Brands Economy Women Heavy High Autonomy Brand on (Low Price) Users (Value Oriented) Sale Medicinal Large Family Smokers High Sociability, Crest (Decay Active Prevention) Cosmetics Teens, Young Heavy Hypochondriacally Alovera, (Bright Adults Users Conservatives Aqua Face) fresh Fragrance Children Spearmint High Self Pearl, Lovers Involvement, Aim Suggestions & Feedback: Valencia SOAP Health Comes first
  20. 20. | 20 Hedonistic THE PROCESS, OF MARKET SEGMENTATION Markets are sometimes segmented intuitively; that is, a marketer relies on experience and judgment to make a decision about the segments that exist in a market and how much potential each offers. Others follow the lead of competitors or earlier market entrants. 1. IDENTIFY THE CURRENT AND POTENTIAL WANTS THAT EXIST WITHIN A MARKET: The marketer carefully examines the market to determine the specific needs being satisfied by current offerings, the needs current offerings fail to adequately satisfy, and the needs that may not yet be recognized. This step may involve interviewing and/or observing consumers or firms to determine their behavior, levels of satisfaction, and frustration. 2. IDENTIFY CHARACTERISTICS THAT DISTINGUISH AMONG THE SEGMENTS: In this step the focus is on what prospects who share a particular want have in common to distinguish them from other segments in the market that have different wants. Among business firms it could be a physical feature (like size or location). Among consumers it might be an Suggestions & Feedback: Valencia SOAP Health Comes first
  21. 21. | 21 attitude or a behavior pattern. From the results of this step, potential marketing mixes (including product ideas) for the various segments can be geed. These alternatives can then be further analyzed. 3. Determine the size of the segments and how well they are being satisfied: The final step is to estimate how much demand (or potential sales) each segment rep- resents and the strength of the competition. These forecasts will determine which segments are worth pursuing. American Express launched an internet banking service that allows customers to make deposits, purchase certificates of deposit, and pay bills online. Despite the fact that online competition from conventional banks and other credit card companies is fierce, American Express’ existing cardholders make up an attractive initial market segment. LEVELS OF MARKETING SEGMENTATION Because buyers have unique needs and wants, each buyer is potentially a separate market. Ideally, then, a seller might design a separate marketing program for each buyer. However, although some companies attempt to serve buyers individually, many others face larger numbers of smaller buyers and do not find complete segmentation worthwhile. Instead, they look for broader classes of Suggestions & Feedback: Valencia SOAP Health Comes first
  22. 22. | 22 buyers who differ in their product needs or buying response. Thus, market segmentation can be carried out at many different levels. DIAGRAM OF COMPLETE SEGMENTATION MASS MARKETING: Companies have not always practiced target marketing. In fact, for most of the twentieth century, major consumer products companies held fast to mass marketing __ mass producing, mass distributing, and mass promoting about the same product in about the same way to all consumers. Henry Ford epitomized this marketing strategy when he offered the Model T Ford to all buyers; they could have the car “in any color as long as it is black”. Similarly, Coca Cola at one time produced only one drink for the whole market, hoping it would appeal to everyone. Suggestions & Feedback: Valencia SOAP Health Comes first
  23. 23. | 23 The traditional argument for mass marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can translate into either lower prices or higher margins. SEGMENT MARKETING: Isolating broad segments that make up a market and adapting the marketing to match the needs of one or more segments. A company that practices segment marketing recognizes that buyers differ in their needs, perceptions, and buying behaviors. Segment marketing offers several benefits over mass marketing. The company can market more efficiently, targeting its products or services, channels, and communications programs toward only consumers that it can serve best. The company can also market more effectively by fine-tuning its products, prices, and programs to the needs of carefully defined segments. The company may face fewer compete- tours if fewer competitors are focusing on this market segment. NICHE MARKETING: Focusing on sub segments or niches with distinctive traits that may seek a special combination of benefits. Market segments are normally large identifiable groups within a market __ for ex- ample, luxury car buyers, performance car buyers, utility car buyers, and economy car buyers. Niche marketing or inching focuses on subgroups within these segments. A niche is a Suggestions & Feedback: Valencia SOAP Health Comes first
  24. 24. | 24 more narrowly defined group, usually identified by dividing a segment into sub segments or by defining a group with a distinctive set of traits who may seek a special combination of benefits. Whereas segments are fairly large and normally attract several competitors, niches are smaller and normally attract only one or a few competitors. MICROMARKETING: The practice of tailoring Products and marketing programs to suit the tastes of specific individuals and Locations __ includes local marketing and individual marketing. Segment and niche marketers tailor their offers and marketing programs to meet the needs of various market segments. At the same time, however, they do not customize their offers to each individual customer. Thus, segment marketing and niche marketing fall between the extremes of mass marketing and micromarketing. Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and location. Micromarketing includes Local mar-keting and individual marketing. LOCAL MARKETING: Tailoring brand and promotions to the needs and wants of local customer groups. Local marketing involves tailoring brands and promotions to the need and wants of local customer groups – cities, neighborhoods, and even specific stores. Thus, retailers such as Sears and Wal-Mart routinely customize each stores merchandise and promotions to match its specific clientele, and Citibank provides different mixes of banking services in its Suggestions & Feedback: Valencia SOAP Health Comes first
  25. 25. | 25 branches depending on neighborhood demographics. Kraft helps supermarket chains identify the specific cheese assortments and shelf positioning that will optimize cheese sales in low income, middle income, and high income stores, and in different ethnic communities. INDIVIDUAL MARKETING: Tailoring products and marketing programs to the needs and preferences of individual customer __ also labeled markets of one marketing, customized marketing. BASES FOR SEGMENTING CONSUMER MARKETING There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structure. Table outlines the major variables that might be used in segmenting consumer markets. Here we look at the major geographic, demographic, psychographic, and behavioral variables. We will discuss four bases for segmenting consumer markets that are used separately or in combination o GEOGRAPHIC Suggestions & Feedback: Valencia SOAP Health Comes first
  26. 26. | 26 o DEMOGRAPHIC o PSYCHOGRAPHIC o BEHAVIORAL TABLE MAJOR SEGMENTATION VARIABLES FOR CONSUMER MARKETS. GEOGRAPHC World North America, Western Europe, Middle East, Pacific Rim, region or China, India, Canada, Mexico County Country Pacific, Mountain, West North Central, Wet South Central, region East North Central, East South Central, South Atlantic, Middle Atlantic, New England. City or Under 5,000; 5,00 – 20,000; 20,000 – 50,000 – 100,000; metro 100,000 – 250,000; 250,000 – 500,000; Size 500,000 – 1,000,000; 1,000,000 – 4,000,000; 4,000,000 or over Density Urban, suburban, rural Climate Northern, Southern DEMOGRAPHIC Age Under 6, 6-11, 12 -19, 20-34, 35-49, 50-64, 65+ Gender Male, female Family size 1-2, 3-4, 5+ Family life Young, single; young, married, no children; young, married with children; Cycle Older, married with children; older, married, no children under 18; older, single; other Income Under $ 10,000; $ 10,000-20,000; $20,000-$30,000; $30,000-$50,000; $50,000-$100,000; $100,000 and over Occupation Professional and technical; managers, officials, and proprietors; clerical, sales; craftspeople; foremen; operatives; farmers; retired; students; Suggestions & Feedback: Valencia SOAP Health Comes first
  27. 27. | 27 homemakers; unemployed Education Grad school or less; some high school; high school graduate; some college; college graduate Religion Catholic, Protestant, Jewish, Muslim, Hindu, other Race Asian, Hispanic, black, white Nationality North American, South American, British, French, German, Italian, Japanese PSYCHOGRAPHIC Social Lower lowers, upper lowers, working class, middle class, class upper middles, lower uppers, upper uppers Lifestyle Achievers, strivers, strugglers Personality Compulsive, gregarious, authoritarian, ambitious BEHAVIOAL Occasions Regular occasion, special occasion Benefits Quality, service, economy, convenience, speed User Nonuser, ex-user, potential user, first-time user, regular user status Usage rate Light user, medium user, heavy user Loyalty None, medium, strong, absolute status Readiness Unaware, aware, Informed, interested, desirous, intending to buy Stage Attitude Enthusiastic, positive, indifferent, negative, hostile toward Product GEOGRAPHIC SEGMENT: Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods. Geographic segmentation calls for dividing the market into different geographical units such as nations, regions, states, counties, cities, or neighborhoods. A company may decide to operate Suggestions & Feedback: Valencia SOAP Health Comes first
  28. 28. | 28 in one or a few geographical areas, or to operate in all area but pay attention to geographical differences in needs and wants. DEMOGRAPHIC SEGMENTATION: Dividing the market into groups based on demographic variables such as age, sex, family size family life cycle, income, occupation, education, religion, race, and nationally DEMOGRAPHIC SEGMENTATION divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, and nationality. Demographic factors are the most popular bases for segmenting customer groups largely because consumer needs, wants and usage rates often vary closely with demographic variables. Also, demographic variables are easier to measure than most other types of variables. Even when market segments are first defined using other bases, such as personality or behavior, their demographic characteristics must be known in order to assess the size of the target market and to reach it efficiently.  AGE AND LIFE-CYCLE SEGMENTATION o Dividing a market into different age and life-cycle groups  GENDER SEGMENTATION o Dividing a market into different groups based on  INCOME SEGMENTATION Suggestions & Feedback: Valencia SOAP Health Comes first
  29. 29. | 29 o Dividing a market into different income groups PSYCHOGRAPHIC SEGMENTATION: Dividing a market into different groups based on social class, lifestyle, or personality characteristics. Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics. People in the same demographic group can have very different psychographic. Marketers also have used personality variables to segment markets, giving their products personalities that correspond to consumer personalities. Successful market segmentation strategies based on personality have been used for products such as cosmetics, cigarettes, insurance, and liquor.16 BEHAVIORAL SEGMENTATION: Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product. Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product. Many marketers believe that behavior variables are the best starting point for building market segments. OCCASION SEGMENTATION: Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. Suggestions & Feedback: Valencia SOAP Health Comes first
  30. 30. | 30 SEGMENTING BUSINESS MARKETS Even though the number of buyers in a business market may be relatively few com- pared to a consumer market, segmentation remains important. The reason is quite simple a highly focused marketing effort directed at meeting the specific needs of a group of similar customers is both more efficient and more likely to be successful. SEGMENTATION BASES FOR BUSINESS MARKET Segmentation Bases Possible Market Segments Customer Location  Region South East Asia, Central America,  Location Upper Midwest, Atlantic Seaboard Single buying site, multiple buying sites. Customer Type  Industry Selected NAICS Codes  Size Sales Volume, Number of  Organization Structure Employees Centralized or Decentralized,  Purchase Criteria Group or Individual Decision Quality , Price, Durability, Lead Suggestions & Feedback: Valencia SOAP Health Comes first
  31. 31. | 31 Time Transaction Condition  Buying Situation Straight Rebury, Modified Rebury,  Usage Rate New Buy  Purchasing Procedure Nonuser, Light Users, or High  Order Size Users  Service Requirements Small, Medium or Large Light, Moderate or Heavy CUSTOMER LOCATION: Business markets are frequently segmented on a geographic basis. Some industries are geographically concentrated. For example, businesses that process natural resources locate close to the source to minimize shipping costs. Other industries are geographically concentrated simply because newer firms either spun off from of chose to locate near the industry pioneers. Companies also segment international markets geographically. In considering developing countries, for example, a firm might consider the reliability of public utilities, the quality of the transportation system, and the sophistication of the distribution structure in deciding where to expand its operation. CUSTOMER TYPE Customer Types includes the following: Suggestions & Feedback: Valencia SOAP Health Comes first
  32. 32. | 32 o INDUSTRY o SIZE o ORGANIZATIONAL STRUCTURE o PURCHASE CRITERIA INDUSTRY: Any firm that sells to business customers in a variety of industries may want to segment its market on the basis of industry. For example, a company that sells small electric motors would have a broad potential market among many different industries. However, this firm will d better by segmenting its potential market by type of customer and then specializing in order to more completely meet the needs of organizations in a limited number of these segments. SIZE: Business customer size can be estimated using such factors as sales volume, number of employees, number of production facilities, and number of sales offices. Many sellers divide their potential mar into large and small accounts, using sep- aerate distribution channels to reach each segment. The seller’s sales force may con- tact large-volume accounts directly, but to reach the smaller accounts, the seller may use a middleman or rely on the Internet or telemarketing. ORGANIZATION STRUCTURE: Firms approach buying in different ways. Some rely heavily on their purchasing departments Suggestions & Feedback: Valencia SOAP Health Comes first
  33. 33. | 33 to control the inflow of information, reduce the number of potential alternatives, and conduct negotiations. Selling to such companies would require a strong personal selling effort directed specifically at purchasing executives. It would also need excellent supporting materials if the product exceeded the technical expertise of the purchasing managers. Other buyers opt for greater involvement in the purchase process by the people who will be directly affected by the purchase. These buyers tend to include many people in their decisions, hold meetings over a long period of time, and engage in a lot of internal communication. PURCHASE CRITERIA: All buyers want good quality, low prices, and on-time delivery. However, within a market there are groups for which one of these or some other purchase criterion is particularly significant. TRANSACTION CONDITIONS: The circumstances of the transaction can also be a basis for segmenting a market. Sellers may have to modify their marketing efforts to deal with different buying situations, usage rates, purchasing procedures, order sizes, or service requirements. To illustrate, three o these transaction conditions are described below. Transaction Conditions include the following: o BUYING SITUATION o USAGE RATES Suggestions & Feedback: Valencia SOAP Health Comes first
  34. 34. | 34 o PURCHASE PROCEDURES BUYING SITUATION: When United Airlines is faced with the decision of whether or not to buy Boeing’s Sonic Cruiser, a plane that will hold 300 passengers and fly at near the speed of sound, it is making a new buy. The decision is quite different from the modified rebury that occurs when United purchases additional 737s, a plane it has flown successfully for years. These buying situations, along with the straight rebury, are sufficiently unique that a business seller might well segment its market into these three buy-class categories. USAGE RATE: Markets for most products can be divided among heavy users, light users, and nonusers (prospects). Heavy users appear to be the most attractive because of the volume they purchase, but they also generate the most competition. As an alternative to pursuing heavy users, some firms have found it profitable to avoid the competition by concentrating on light users. PURCHASE PROCEDURE: Products can be leased, financed, or purchased outright. Rice can be simply stated, negotiated, or submitted in a sealed bid. Consider how a bidding system affects a seller. Government agencies often by on the basis of sealed bids; that is, each prospective seller submits a confidential bid in response to a detailed description of what the agency wants to buy. When the bids are opened, the agency is typically bound by law to accept the lowest bid unless it is clearly inappropriate. Suggestions & Feedback: Valencia SOAP Health Comes first
  35. 35. | 35 Segmentation identifies the opportunities that exist in a market. The next step is for a firm to decide which of those opportunities to target with a marketing effort. TARGET-MARKET STRATEGIES: After a company has segmented a market, management must next select one or more segments as its target markets. TARGET MARKET: A set of buyers sharing common needs or characteristics that the company decides to serve Suggestions & Feedback: Valencia SOAP Health Comes first
  37. 37. | 37 UNDIFFERENTIATED MARKETING: A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offends. By adopting a market-aggregation strategy-also known as a mass- market strategy or an undifferentiated-market strategy__ a seller treats its total market as a single segment. An, aggregate market’s members are considered to be alike with respect to demand for the product. DIFFERENTIATED MARKETING: A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each. Under a multiple-segment strategy, two or more different groups of potential customers are identified as target markets. A separate marketing mix is developed to reach each targeted segment. For example, the maker of Bayer aspirin offers seven variations of its pain relief product, each with its own marketing program. In a multiple segment strategy. A multiple-segment strategy normally results in a greater sales volume than a single-segment strategy. It also is useful for a company facing seasonal demand. CONCENTRATED MARKETING: A market coverage strategy in which a firm goes after a large share of one or if you submarket. A single-segment strategy, also called a concentration strategy, involves selecting one segment from within the total Suggestions & Feedback: Valencia SOAP Health Comes first
  38. 38. | 38 market as the target market. One marketing mix is developed to reach this single segment. A company may want to concentrate on a sin- glue market segment rather than take on many competitors in the broader market. Company Marketing Market Mix A. Undifferentiated Market Company Marketing Mix 1 Segment 1 Company Marketing Segment 2 Mix 2 Company Marketing Segment 3 Mix 3 B. Differentiated Market Company Segment 1 Marketing Segment 2 Mix Segment 3 C. Concentrated Market Suggestions & Feedback: Valencia SOAP Health Comes first
  39. 39. | 39 CHOOSING A MARKET-COVERAGE STRATEGY Many factors need to be considered when choosing a market- coverage strategy. Which strategy is best depends on company resources. When the firm’s resources are limited, concentrated marketing makes the most sense. The best strategy also depends on the degree of product variability. Undifferentiated marketing is more suited for uniform products such as grapefruit or steel. Products that can vary in design, such as cameras and automobiles, are more suited to differentiation or con- contraction. The Product’s lifecycles stage also must be considered. When a firm introduces a new product, it is practical to launch only one version and undifferentiated marketing or concentrated marketing makes the most sense. In the mature stage of the product life cycle, however, differentiated marketing begins to make more sense. Another factor is market variability. If most buyers have the same tastes, buy the same amounts, and react the same way to marketing efforts, under important. When competitors use segmentation, undifferentiated marketing can be suicidal. Conversely, when competitors use, undifferentiated marketing, a firm can gain an advantage by using differentiated or concentrated marketing. POSITIONING: Having identified the potential segments and selected one or more to target, the marketer must next decide what position to pursue. A position is the way a firm’s producer, brand, or Suggestions & Feedback: Valencia SOAP Health Comes first
  40. 40. | 40 organization is viewed relative to the competition by current and prospective customers. To establish itself in a market that was dominated by firms appealing primarily to the preferences of children, Wendy’s positioned its burgers as ”hot and juicy,” and therefore primarily for adults. If a position is how a product is viewed, then positioning is a firm’s use of all the elements at its disposal to create and maintain in the minds of a target market a particular image relative to competing products. THERE ARE THREE STEPS IN A POSITIONING STRATEGY: o SELECT THE POSITIONING CONCEPT o DESIGN THE DIMENSION OR FEATURE THAT MOST EFFECTIVELY CONVEYS THE POSITION o COORDINATE THE MARKETING MIX COMPONENTS TO CONVEY A CONSISTENT POSITION SELECT THE POSITIONING CONCEPT: To position a product or an organization, a marketer needs to first determine what is important to the target market. Marketers can then conduct positioning studies to see how members target market view competing products or stores on the important dimensions. The results of this research can be portrayed in a perceptual map that locates the brand or organization relative to alternatives on the dimensions of interest. Suggestions & Feedback: Valencia SOAP Health Comes first
  41. 41. | 41 DESIGN THE DIMENSION OR FEATURE THAT MOST EFFECTIVELY CONVEYS THE POSITION: A position can be communicated with a brand name, a slogan, the appearance or other features of the product, the place where it is sold, the appearance of employees, and in many other ways. However, some features are more effective than others. It is important to not overlook details. According to a consultants chairs for customers are vital in upscale retail environments because they signal that the seller”Cates”. Because the marketer has limited resources, decisions have to be making on how best to convey the desired positioning concept. COORDINATE THE MARKETING MIX COMPONENTS TO CONVEY A CONSISTENT POSITION: When though one or two dimensions may be the primary position communicators, all the elements of the marketing mix the product, price, promotion, and distribution should complement the intended position. Many product failures are the result of inconsistent positioning that confuses consumers. WHAT IS PRODUCT DEVLOPEMENT AND SERVICE? Suggestions & Feedback: Valencia SOAP Health Comes first
  42. 42. | 42 PRODUCT: Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. SERVICE: Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. THE PRODUCT SERVICE CONTINUUM: A company’s offer to the marketplace often includes both tangible goods and services. Each component can be a minor or a major part of the total offer. At one extreme, the offer may consist of a pure tangible good, such as soap, toothpaste, or salt __ no services accompany the product. At the other extreme are pure services, for which the offer consists primarily of a service. Examples include a doctor’s exam or financial services. Between these two extremes, however, many goods and services combinations are possible. PRODUCT CLASSIFICATIONS Products and services fall into two broad classes based on the types of consumers that use them consumer and industrial products. Suggestions & Feedback: Valencia SOAP Health Comes first
  43. 43. | 43 Broadly defined, products also include other marketable entities such as organizations, persons, places and ideas. o CONSUMER PRODUCTS o INDUSTRIAL PRODUCTS CONSUMER PRODUCTS Product bought by final consumer for personal consumption.  CONVENIENCE PRODUCT: Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying clot. MARKETING CONSIDERATIONS FOR CONSUMER PRODUCTS Type of Consumer Product Marketing Convenience Shopping Specialty Unsought Consideration Suggestions & Feedback: Valencia SOAP Health Comes first
  44. 44. | 44 Customer Frequent Less Strong Little Buying purchase, frequent brand product Behavior Little planning, Purchase, Preference Awareness, little much and Comparison or Planning Loyalty, Knowledge and special (or if shopping Shopping Effort, Purchase Aware, little effort, low comparison effort, little or even of Customer Brands on Comparison Negative involvement price, of brands, interest) Quality, Low price style sensitivity Price Low price Higher price High price Varies Distribution Widespread Selective Exclusive Varies distribution distribution Distribution, In fewer In only one butlers or a few Convenient Outlets per locations market Area Promotion Mass Advertising More Aggressive promotion by and carefully advertising The producer Personal Targeted And selling by promotion personal by selling Both Both By producer producer producer and and and resellers resellers Resellers Examples Toothpaste, Major Luxury Life Suggestions & Feedback: Valencia SOAP Health Comes first
  45. 45. | 45 appliances, Goods such insurance, as Red Magazines, Television, Rolex Cross blood laundry furniture watches or donations fine Detergent Clothing Crystal  SHOPPING PRODUCT: Consumer good that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style.  SPECIALTY PRODUCT: Consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.  UNSOUGHT PRODUCT: Consumer product that the consumer either does not know about or knows about but does not normally think of buying. INDUSTRIAL PRODUCT Suggestions & Feedback: Valencia SOAP Health Comes first
  46. 46. | 46 Product bought by individuals and organizations for further processing or for use in conducting a business. Industrial products are those purchased for further processing or for use in conducting a business. Thus, the distinction between a consumer product and an industrial product is based on the purpose for which the product is bought. If a consumer buys a lawn mower for use around home, the lawn mower is a consumer product. If the same consumer buys the same lawn mower for use in a landscaping business, the lawn mower in an industrial product. The three groups of industrial products and services include materials and parts, capital items, and supplies and services. Materials and parts include raw materials and manufactured materials and parts. Raw materials consist of farm products (wheat, cotton, livestock, fruits, vegetables) and natural products (fish, lumber, crude petroleum, iron ore). Manufactured materials and parts consist of component materials (iron, yarn, cement, wires) and component parts (small motors, tires, castings). Most manufactured materials and parts are sold directly to industrial users. Price and service are the major marketing factors; branding and advertising tend to be less important. Suggestions & Feedback: Valencia SOAP Health Comes first
  47. 47. | 47 MACHINES USED IN SOAP MANUFACTURING These are the machines which are used in product development of health Soap. This machine is known as stamper-mazzoni-duplo-pq. This machine is known as Roll-mill- bulhre-pq. This machine is known as plodder_mazzoni_dtm300_4024_pq. Suggestions & Feedback: Valencia SOAP Health Comes first
  48. 48. | 48 This machine is known as atomizer_mazzoni_pq. This machine is known as cutter_mazzoni_tva_pq. This machine is known as logoimj. Suggestions & Feedback: Valencia SOAP Health Comes first
  49. 49. | 49 This machine is known as vacuum_pump_pq. Suggestions & Feedback: Valencia SOAP Health Comes first
  50. 50. | 50 Suggestions & Feedback: Valencia SOAP Health Comes first
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  52. 52. | 52 Suggestions & Feedback: Valencia SOAP Health Comes first
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  54. 54. | 54 PERSONS, PLACES, AND IDEAS: In recent years marketers have broadened the concept of a product beyond tangible products and services, to include other marketable entities __ namely, organizations, person’s places; and ideas. Organizations often carry out activities to sell the organization itself. Organization marketing consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization. Both profit and nonprofit organizations practice organization marketing. Business firms sponsor public relations or corporate advertising campaigns to polish their images. Nonprofit organizations __ such as churches, colleges, charities, museums, and performing arts groups’ __ market their organizations in order to raise funds and tract members or patrons. Suggestions & Feedback: Valencia SOAP Health Comes first
  55. 55. | 55 Corporate image advertising is a major tool company’s use to market themselves to various publics.  PERSON MARKETING: People can also be thought of as products. Person marketing consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people. All kinds of people and organizations practice person marketing. Presidents Reagan and Clinton skillfully marketed themselves, their parties, and their platforms to get needed votes and program support. Entertainers and sports figures such as Michael Jordan and Tiger Woods use marketing to promote their careers and improve their impact and incomes. Professionals such as doctors, lawyers, accountants, and architects market themselves in order to build their reputations and increase business. Business leaders use person marketing as a strategic tool to develop their companies’ fortunes as well as their won. Businesses, charities, sports marketing. Creating or associating with well know personalities often helps these organizations achieve their goals better.  SOCIAL MARKETING: The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group.  PACE MARKETING: Involves activities undertaken to create, maintain, or change attitudes or behavior toward Suggestions & Feedback: Valencia SOAP Health Comes first
  56. 56. | 56 particular places. Examples include business site marketing and tourism marketing. Business site marketing involves developing, selling, or renting business sites or for factories, stores, offices, warehouses, and conventions. For example, most states operate industrial development offices that try to sell companies on the advantages of locating new plants in their states. Even entire nations __ such as Canada, Ireland, Greece, Mexico, and Turkey __ gave marketed themselves as good locations for business investment. INDIVIDUAL PRODUCT DECISIONS PRODUCT QUALITY: The ability of a product to perform its functions; it includes the product’s overall durability, reliability, precision, case of operation and repair, and other valued attributes. PRODUCT ATTRIBUTES: Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by product attributes such as quality, features, and design. PRODUCT FEATURES: A product can be offered with varying features. A “stripped down “model, one without any extras, Suggestions & Feedback: Valencia SOAP Health Comes first
  57. 57. | 57 is the starting point. The company can create higher level models by adding more features. Features are a competitive tool for differentiating the company’s product from competitors’ products. Being the first producer to introduce a needed and valued new feature is one of the most effective ways to compete. PRODUCT DESIGN: Another way to add customer value is through distinctive product design. Some companies have reputations for outstanding design, such as Black & Decker in cordless appliances and tools, Steel case in office furniture and systems, Bose in audio equipment, and Ciba Corning in medical equipment. Design cab be one of the most powerful competitive weapons in a company’s marketing arsenal. Demographics Demographics are clearly tied to subculture and segmentation. Here, however, we shift our focus from analyzing specific subcultures to trying to understand the implications for an entire population of its makeup. Some articles of possible interest: Several issues are useful in the structure of a population. For example, in some rapidly growing countries, a large percentage of the population is concentrated among younger generations. In countries such as Korea, China, and Taiwan, this has helped stimulate economic growth, while in certain poorer countries; it puts pressures on society to accommodate an increasing number of people on a fixed amount of land. Other countries such as Japan and Germany, in contrast, experience problems with a "graying" society, where fewer non-retired people are around to support an increasing number of aging seniors. Because Germany actually hovers around negative population growth, the German government has issued Suggestions & Feedback: Valencia SOAP Health Comes first
  58. 58. | 58 large financial incentives, in the forms of subsidies, for women who have children. In the United States, population growth occurs both through births and immigration. Since the number of births is not growing, problems occur for firms that are dependent on population growth (e.g., Gerber, a manufacturer of baby food). Social class is a somewhat nebulous subject that involves stratifying people into groups with various amounts of prestige, power, and privilege. In part because of the pioneering influence in American history, status differentiations here are quite vague. We cannot, for example, associate social class with income, because a traditionally low status job as a plumber may today come with as much income as a traditionally more prestigious job as a school teacher. In certain other cultures, however, stratification is more clear-cut. Although the caste system in India is now illegal, it still maintains a tremendous influence on that society. While some mobility exists today, social class awareness is also somewhat greater in Britain, where social status is in part reinforced by the class connotations of the accent with which one speaks. Textbooks speak of several indices that have been used to "compute" social class in the United States, weighing factors such as income, the nature of one’s employment, and level of education. Taken too literally, these indices are not very meaningful; more broadly speaking, they illustrate the reality that social status is a complex variable that is determined, not always with consensus among observers, by several different variables. Suggestions & Feedback: Valencia SOAP Health Comes first
  59. 59. | 59 BRANDING A name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller of group of sellers and to differentiate them from those of competitors. Perhaps the most distinctive skill of professional marketers is their ability to create, maintain, Protect, and enhance brands of its products and services. A brand is a name, term, sign, symbol, or design, or a combination of these that identifies the maker or seller of a product or service. Consumers view a brand as an important part of a product, and branding can add value to a product. For example, most consumers would perceive a bottle of White Linen perfume as a high quality, expensive product. But the same perfume in an unmarked bottle would likely be viewed as lower in quality, even if the fragrance were identical. Suggestions & Feedback: Valencia SOAP Health Comes first
  60. 60. | 60 BRAND EQUITY: The value of a brand, based on the extent to which it has on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel relationships. Brands vary in the amount of power and value they have in the marketplace. A powerful brand has high brand equity. Brands have higher brand equity to the extent that they have higher brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel relationships. BRAND NAME SELECTION: A good name can add greatly to a product’s success. However, finding the best brand name is a difficult task. It begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies. Desirable qualities for a brand name include: o IT SHOULD SUGGEST SOMETHING ABOUT THE PRODUCT’S BENEFITS AND QUALITIES. EXAMPLES: DIE HARD, EASY OFF CRAFTSMAN SUNKIST, SPIC AND SPAN, SNUGGLES MERRY MAIDS, NATIONSBANK. Suggestions & Feedback: Valencia SOAP Health Comes first
  61. 61. | 61 o IT SHOULD BE EASY TO PRONOUNCE, RECOGNIZE, AND REMEMBER. SHORT NAMES HELP. PRIVATE BRAND (OR STORE BRAND): A brand created and owned by a reseller of a product or service. BRAND SPONSOR: A manufacturer has four sponsorship options. The product may be launched as a manufacturer’s brand (or national brand), as when Kellogg and IBM sell their output under their own manufacturer’s brand names. Or the manufacturer may sell to resellers who give it a private brand (also called a store brand or distributor brand). Although most manufacturers create their own brand names, others market licensed brands. Finally, two companies can join forces and co brand a product.  MANUFACTURE’S BRANDS VERSUS PRIVATE BRANDS: Manufactures’ brands have long dominated the retail scene. In recent times, however, and increasing number of retailers and wholesalers have created their own private brands.  LICENSING: Most manufacturers take years and spend millions to create their own brand names. However, some companies’ license names or symbol previously created by other manufacturers, names of well known celebrities, characters from popular movies and books __ for a fee, any of these can provide Suggestions & Feedback: Valencia SOAP Health Comes first
  62. 62. | 62 an instant and proven brand name. Apparel and accessories sellers pay large royalties to adorn their products __ from blouses to ties, and linens to luggage __ with the names or initials of fashion innovators such as Bill Blass, Calvin Klein, Pierre Cardin, Gucci, and Houston. Sellers of children’s products attach an almost endless list of character names to clothing, toys, school supplies, linins, dolls, lunch boxes, cereals, and other items. The character names range from classics such as Disney, Peanuts, Barbie, and Dr. Seuss characters, to the Muppets, Garfield, and batman.  CO-BRANDING: Although companies have been co branding products for many years, there has been a recent resurgence in co branded products. Co branding occurs when two established brand names of different companies are used on the same product. For example, Pillsbury joined Nabisco to create Pillsbury Oreo Bars Baking Mix. Ford and Eddie Bauer co branded a sport utility vehicle __ the Ford Explorer, Eddie Bauer edition. Mattel teamed with coca Cola to market Soda Fountain Sweetheart Barbie. Kellogg joined forces with Con Agra to co brand Healthy Choice from Kellogg’s cereals. In most co branding situations, one company licenses another company’s well known brand to use in combination with its own. BRAND STRATEGY: A company has four choices when it comes to brand strategy (see Figure 8-4). It can introduce line Suggestions & Feedback: Valencia SOAP Health Comes first
  63. 63. | 63 extensions (existing brand names extended to new forms, sizes, and flavors of an existing product category), brand extensions (existing brand names extended to new product categories), multi brands (new brand names introduced in the same product category), or new brands (new brand names in new product categories).  LINE EXTENSIONS: Line extensions occur when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes. Thus, DANONE recently introduced several line extensions, including seven new yogurt flavors, a fat free yogurt, and a large economy size yogurt. The vast majority of new product activity consists of line extensions. Using a successful brand name to introduce additional items I given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.  BRAND EXTENSION: Using a successful brand name to launch a new or modified product in a new category. A brand extension involves the use of a successful brand name to launch new or motioned products in a new category. Fruit of the Loom took advantage of its very high name recognition to launch new lines of socks, men’s fashion underwear, women’s underwear, athletic apparel, and even baby clothes. Honda uses its company name to cover different products such as its automobiles, motorcycles, snow blowers, lawn mowers, marine engines, and snowmobile. This allows Honda to advertise that it can fit six Hondas Suggestions & Feedback: Valencia SOAP Health Comes first
  64. 64. | 64 in a two car garage.” Swiss Army Brand Sunglasses, Disney cruise Lines, Snack well’s Snack bars, and Century 21 Home Improvements, Brinks home security systems __ all are brand extensions.  MULTIBRANDS: Companies often introduce additional brands in the same category. Thus, Procter & Gamble markets many different brands in each of its product categories. Multi branding offers a way to establish different features and appeal to different buying motives. It also allows a company to lock up more reseller shelf space. A major drawback of multi branding is that each brand might obtain only a small market share, and none may be very profitable. The company may end up spreading its resources over many brands instead of building a few brands to a highly profitable level. These companies should reduce the number of brands they sell in a given category and set up tighter screening procedures for new brands.  NEW BRANDS: A company may create a new brand name when it enters a new product category for which none of the company’s current brand names are appropriate. For example, Japan’s Matsushita uses separate names for its different families of products: Techniques, Panasonic, National, and Quasar. Or, a company might believe that the power of its existing brand name is waning and a new brand name is needed. Finally, the company may obtain new brands in new categories through acquisitions. Suggestions & Feedback: Valencia SOAP Health Comes first
  65. 65. | 65 PACKAGING The activities of designing and producing the container or wrapper for a product. Packaging involves designing and producing the container or wrapper for a product. The package may include the product’s primary container (the tube holding Colgate toothpaste); a secondary package that is thrown away when the product is about to be used (the cardboard box containing the tube of Colgate); and the shipping package necessary to store, identify, and ship the product (a corrugated box carrying six dozen tubes of Colgate toothpaste). Labeling, the printed information appearing on or with the package, is also part of packaging. LABELING Labels my range from simple tags attached to products to complex graphics that are part of the package. They perform several functions. At the very least, the label identifies the product or brand, such as the name Sunkist stamped on oranges. The label might also describe several things about the product __ who made it where it was made, when it was mad, its contents, how it is to be used, and how to use it safely. Finally, the label might promote the product through attractive graphics. PRODUCT LINE DECISIONS Suggestions & Feedback: Valencia SOAP Health Comes first
  66. 66. | 66 We have looked at product strategy decisions such as branding, packaging, labeling, and support services for individual products and services. Bust product strategy also calls for building a product line. A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups are marketed through the same types of outlets, or fall within given price ranges. The major product line decision involves product line length __ the number of items in the product line. The line is too short if the manager can increase profits by adding items; the line is too long if the manager can increase profits by dropping items. Product line length is influenced by company objectives and resources. Product lines tend to lengthen over time. The sales force and distributors may pressure the product manager for a more complete line to satisfy their customers. Or, the manager may want to add items to the product line to create growth in sales and profits. However, as the manager adds items, several costs rise: design and engineering costs, inventory cost, manufacturing changeover costs, transportation costs, and promotional costs to introduce new items. Eventually top management calls a halt to the mushrooming product line. Unnecessary or unprofitable items will be pruned from the line in a major effort to increase overall profitability. This pattern of uncontrolled product line growth followed by heavy pruning is typical and may repeat itself many times. Suggestions & Feedback: Valencia SOAP Health Comes first
  67. 67. | 67 PRODUCT LINE: A group of products that are closely related because they function in a similar. Manner, are sold to the same customer groups, are marketed through the same, types of outlets, or fall within given price ranges. PRODUCT MIX DECISIONS An organization with several product lines has a product mix. A product mix (or product assortment) consists of all the product lines and items that a particular seller offers for sale. Avon’s product mix consists of four major product lines: cosmetic, jewelry, fashions, and household items. Each product line consists of several sub lines. For example, a cosmetic breaks down into lipstick, eyeliner, powder, and so on. Each line and sub line has many individual items. Altogether, Avon’s product mix includes 1,300 items. In contrast, a typical Kmart stocks 15,000 item, 3M markets more than 60,000 products, and General Electric manufactures as many as 250,000 items. A company’s product mix has four important dimensions: width, length, depth, and consistency. Product mix width refers to the number of different product lines the company carries. For example, Procter & Gamble markets a fairly wide product mix consisting of many product lines, including paper, food, household cleaning, medicinal, cosmetics, and personal care products. Product mix length refers to the total number of items the company carries within its product lines. Procter & Gamble typically carries many brands within each line. For example, it sells eleven laundry detergents, eight hand soaps, six shampoos, and four dishwashing detergents. Suggestions & Feedback: Valencia SOAP Health Comes first
  68. 68. | 68 SERVICE MARKETING NATURE AND CHARACTERISTICS OF A SERVICE: Activities such as renting a hotel room, depositing money in a bank, traveling on an airplane, getting a haircut, having a car repaired, watching a professional sport, seeing a movie, and getting advice from a lawyer all involve buying a service. FOUR SERVICE CHARACTERISTICS Intangibility Inseparability Services cannot be seen, tasted, Services cannot be felt, heard or separated from smelled before their providers purchased Service s Variability Perish ability Quality of services Services cannot be depends on who stored for later provides them sale or use and when, where, and how  SERVICE INTANGIBILITY: A major characteristic of services __ they cannot be seen, tasted, felt, heard, or smelled before they are bought. Suggestions & Feedback: Valencia SOAP Health Comes first
  69. 69. | 69  SERVICE INSEPARABILITY: A major characteristic of services __ they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines.  SERVICE VARIABILITY: A major characteristic of services __ their quality may vary greatly, depending on who provides them and when, where, and how.  SERVICE PERISHES ABILITY: A major characteristic of services __ they cannot be stored for later sale or use. MARKETING STRATEGIES FOR SERVICE FIRMS Just like manufacturing businesses, good service firms use marketing to position themselves strongly in chosen target markets. Southwest Airlines positions itself as Just Plane Smart for commuter flyers __ as a no frills, short haul airline charging very low fares. The Ritz Carlton Hotel positions itself as offering a memorable experience that enlivens the senses, instills well being, and fulfills even the unexpressed wishes and needs of our guests. “These and other service firms establish their positions through traditional marketing mix activities. Suggestions & Feedback: Valencia SOAP Health Comes first
  70. 70. | 70 SERVICE PROFIT CHAIN: The chain that links service firm profits with employee and customer satisfaction. Successful service companies focus their attention on both their customers and their employees. They understand the service profit chain, which links service firm profits with employee and customer satisfaction. This chain consists of five links: o INTERNAL SERVICE QUALITY: superior selection and training, a quality work environment, and strong support for those dealing with customers, which results in … o SATISFIED AND PRODUCTIVE SERVICE EMPLOYEES: more satisfied, loyal, and hard working employees, which results in . . . o GREATER SERVICE VALUE: more effective and efficient customer value creation and service delivery, which results in . . . o SATISFIED AND LOYAL CUSTOMERS: satisfied customers who remain loyal, repeat purchase, and refer other customers, which result in . . . o HEALTHY SERVICE PROFITS AND GROWTH: superior service firm performance:  INTERNAL MARKETING: Marketing by a service firm to train and effectively motivate its customer contact employees Suggestions & Feedback: Valencia SOAP Health Comes first