Mkg 4 12

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Mkg 4 12

  1. 1. MARKETING - 4
  2. 2. Product level/Customer value hierarchy1. Core benefit2. Basic product3. Expected product4. Augmented product5. Potential product
  3. 3. Product mix/Product Assortment4 Elements :1. Width2. Length3. Depth4. Consistency
  4. 4. Product Line A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same channels, or fall within given price ranges Eg Life insurance
  5. 5. NEW PRODUCT DEVELOPMENT A product must be entirely new or changed in a functionally significant or substantial respect. Need of New product development
  6. 6. New product development process – 71. Idea generation2. Idea screening3. Concept development and testing4. Marketing strategy5. Business analysis6. Product development and testing7. Commercialization
  7. 7. 1. Idea Generation Interacting with others- Customers- Dist channel members- Competitors- Sales force- MR and AD agencies- Suppliers- Top Mgt and Scientists and consultants.
  8. 8.  Idea Generating techniques/Creativity techc- Brainstorming – Alex osborn- Problem analysis- Synectics – Willam Gordon
  9. 9. 2.Idea screening Ideas 3 groups- Promising ideas- Marginal ideas- Rejects2 types of errors- Drop error- Go error
  10. 10. 3. Concept Development and testingIs an elaborated version of the idea expressed in meaningful will Consumer term. Who will use the product What benefit should this product use the product When the consumer should use the product.
  11. 11.  Concept testing Conjoint Analysis tools
  12. 12. 4. Marketing Strategy3 parts Target markets size, structure and behavior Outlines the planned price, Dist and marketing budget for one year Long run sales and profit goals and marketing mix strategy
  13. 13. 5. Business AnalysisNeeds to prepare sales, cost and profit projections to determine whether they satisfy company objectives.
  14. 14. 6. Product Design and Development Product idea can be translated into a technically and commercially feasible productR & D Prototype products – test Functional test – Alpha test Consumer test – Beta test
  15. 15. 7. Market TestingConsumer goods market testing and business goods market testing. Consumer goods market testing- Ranking- Monadic test 1 – 7- Direct comparison test
  16. 16. - Sales – Wave research- Printed shopping list/Stimulated test marketing/accelerated test marketing- Controlled test marketing/mini market testing.
  17. 17.  Business – goods market testing/industrial goods Alpha testing Beta testing Trade shows Distributor and dealer display rooms
  18. 18. Mgt faces Several decisions : How many test cities? Which Cities Length of tests What information What action to take?
  19. 19. 8. Commercialization When ( Timing)- First entry- Parallel entry- Late entry Where ( Geographic strategy) To Whom ( Target – Market prospects)
  20. 20. The consumer Adoption process/StagesEverett . M . Rogers1. Innovators2. Early Adopters3. Early majority4. Late majority5. Laggards
  21. 21. PLC PLC curves are portrayed as bell shaped. This curve is typically divided into four stages: Introduction, growth, maturity and decline. S shaped sales curve
  22. 22. Product life Cycle /PLC4 things :1. Limited life2. Sales pass through distinct stages3. Profit rise and fall4. Different strategies
  23. 23. PLC4 STAGES1. INTRODUCTION2. GROWTH3. MATURITY4. DECLINE
  24. 24. INTRODUCTION STRATEGIES PRODUCT – OFFER A BASIC PRODUCT PRICE – CHARGE COST – PLUS DISTRIBUTION – BUILD SELECTIVE DISTRIBUTION ADVERTISING – BUILD PRODUCT AWARENESS AMONG EARLY ADOPTERS AND DEALERS SALES PROMOTION – USE HEAVY SALES PROMOTION TO ENTICE TRIAL
  25. 25. GROWTH STRATEGIES PRODUCT – OFFER PRODUCT EXTENSIONS,WARRANTY PRICE – PRICE TO PENETRATE DISTRIBUTION – BUILD INTENSIVE DISTRIBUTION ADVERTISING – BUILD AWARENESS AND INTEREST IN THE MASS MARKET. SALES PROMOTION –REDUCE TO TAKE ADVANTAGE OF HEAVY CONSUMER DEMAND
  26. 26. MATURITY STRATEGIES PRODUCT – DIVERSIFY BRANDS AND ITEMS MODELS PRICE – PRICE TO MATCH OR BEST COMPETITIORS DISTRIBUTION – BUILD MORE INTENSIVE DISTRIBUTION ADVERTISING –STRESS BRAND DIFFERENCES. SALES PROMOTION –INCREASE TO ENCOURAGE BRAND SWITCHING
  27. 27. DECLINE STRATEGIES PRODUCT – PHASE OUT WEAK PRICE – CUT PRICE DISTRIBUTION – GO SELECTIVE : PHASE OUT UNPROFITABLE OUTLETS ADVERTISING –REDUCE TO LEVEL NEEDED TO RETAIN HARD – CORE LOYALS SALES PROMOTION –REDUCE TO MINIMAL LEVEL
  28. 28. PRICING 2nd P of marketing is Pricing A price is an expression of value. Price = Value Price = Something The firm must decide where to position its product on quality and price.
  29. 29. SIX STEP PROCEDURE/Pricing policies1. SELECTING THE PRICING OBJECTIVE2. DETERMING DEMAND3. ESTIMATING COSTS4. ANALYZING COMPETITORS COSTS, PRICE AND OFFERS5. SELECTING A PRICING METHOD6. SELECTING THE FINAL PRICE
  30. 30. 1. Selecting the pricing objectives J.W. Kelvini- Short term pricing objectives- Long term pricing objectives
  31. 31. 2. Determining demand Price Elasticity of Demand Income Elasticity of Demand Price sensitive
  32. 32. 3. Estimating Costs Fixed cost Variable Cost
  33. 33. 4. Analyzing Competitors – costs , prices and offers.
  34. 34. 5. Selecting the Pricing Methods/Approaches/Strategies Cost Oriented Demand – Oriented /Perceived value pricing Competition oriented/Going Rate pricing Value pricing
  35. 35.  Auction type pricing- English Auctions (Ascending bids)- Dutch Auctions ( Descending bids)- Sealed bid actions Group pricing Skimming pricing Penetration pricing
  36. 36.  Premium pricing Psychological Pricing Discount pricing – 4- Cash discount- Quantity discount- Seasonal discounts- Allowance
  37. 37.  Geographical pricing Discriminatory pricing –- Customer segment pricing- Product form pricing- Place /location pricing- Time pricing- Image pricing Product Bundling pricing/ Mixed bundling
  38. 38. 6. Selecting the Final Price Psychological pricing The influence of other marketing mix elements – AD , Brand . Company pricing policies Impact of price on other parties.

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