Downloaded 75 times
Uploaded byNANDA KISHORE SETHURAMAN
Intro to mktg_itm_sept-2012_session-2
The document provides a comprehensive overview of marketing concepts, focusing on targeting, product strategy, positioning, and the marketing research process. It details the various types of research methods and their applications in product development, pricing, distribution, and advertising strategies. Additionally, it covers product management, segmentation, and the importance of branding in building customer relationships.
More Related Content
Similar to Intro to mktg_itm_sept-2012_session-2
Intro to mktg_itm_sept-2012_session-2
- 1. Introduction to Marketing Week 2 NANDA KISHORE SETHURAMAN ITM SEPTEMBER 2012
- 2. Agenda Targeting Product What is good marketing research? Product Strategy Marketing research Questions Product Essentials Types of information Features and Benefits Types of market research Classifying products Market research summary Product line and mix Test Market Branding Define Target Audience Packaging and Labeling Trademarks Estimate market potential Positioning and Brand Building Analyze market share/share of The Art of Positioning is Marketing customer Positioning the game of Mind and Track competitors Heart Identify market characteristics & Brand is a Promise trends Brand is owned by Customers Analyze sales data Understanding Brand Drivers Sales forecasting: Existing / new Brand Attributes products Brand Architecture The Positioning Template
- 3.
- 4. Research – AnIntroduction
- 5. The Process Understand the environment and the market Situation Identify threats and opportunities Analysis Assess the competitive position Define the business scope and served market Strategy segments Establish competitive advantages Development Set performance objectives. Product and channel decision Marketing Communication decisions Program Pricing Development Personal selling decisions Performance monitoring Implementation Refining strategies and program
- 6. Marketing Research inPractice Programmatic Research Develops market options through market segmentation, market opportunity analysis, or consumer attitude and product usage studies Selective Research Tests different decision alternatives such as new product testing, advertising copy testing, pre-test marketing, and test marketing Evaluative Research Evaluation of performance of programs
- 7. Marketing Decision SupportSystems Characteristics of MDSS: Interactive Flexible Discovery oriented User friendly
- 8. Marketing Decision SupportSystems Four components of MDSS: Database Reports and Displays Analysis capabilities Models
- 9. Gaining Insight froma MDSS Manager Modeling Display Analysis Database Environment
- 10. Participants in marketingresearch activities Information Users • General management • Planning • Marketing and sales managers • Product managers • Lawyers Information Suppliers: Information Suppliers: Inside Company Outside Company • Marketing research department • Research consultants • Sales analysis group • Marketing research suppliers • Accounting department • Advertising agencies • Corporate strategic planning
- 11. Marketing Research Process MR Process Evolves From Answers to Five Key Questions Why should we do research? What research should be done? Is it worth doing the research? How should the research be designed to achieve the research objectives? What will we do with the research?
- 12. Marketing Planning &Information System MARKETING PLANNING AND INFORMATION SYSTEM Planning system Information system • Strategic plans • Databases • Tactical plans • DSS 1. AGREE ON RESEARCH PROCESS • Problems or opportunities • Decision alternatives • Research users
- 13. 2. ESTABLISH RESEARCHOBJECTIVES • Problems or opportunities • Decision alternatives • Research users Estimate the value of NO Do not conduct information marketing research Is benefit > cost Yes
- 14. Yes 2. ESTABLISH RESEARCHOBJECTIVES • Problems or opportunities • Decision alternatives • Research users 5. COLLECT THE DATA 6. PREPARE AND ANALYZE THE DATA 7. REPORT THE RESEARCH RESULTS AND PROVIDE STRATEGIC RECOMMENDATIONS
- 15. The Marketing ResearchProcess Step 1 Research Purpose Problem or opportunity analysis Which problems or opportunities are anticipated What is the scope of the problems and the possible reasons? Evaluation of decision alternatives What are the alternatives being studied? What are the criteria for choosing among the alternatives? Research users Who are the decision makers? Are there any covert purposes?
- 16. The Marketing ResearchProcess (Contd.) Step 2 Research Objective A statement, in as precise terminology as possible, of what information is needed Should be framed to ensure information obtained will satisfy research purpose Research Question Hypothesis Development Research Boundaries
- 17. The Marketing ResearchProcess (Contd.) Research Question Asks what specific information is required to achieve the research purpose Sample questions to determine if a specific advertisement should be run: Will the advertisement be noticed? Will it be interpreted accurately? Will it influence attitudes?
- 18. The Marketing ResearchProcess (Contd.) Hypothesis Development A possible answer to a research question. Generating a hypothesis Draw on previous research efforts Borrow from other disciplines such as: Psychology Sociology Marketing Economics Manager’s experience with related problems, coupled with knowledge and the use of judgment
- 19. Source • Theory • Management experience • Exploratory research Research Research Research Question Hypothesis Design Purpose Research Objective
- 20. The Marketing ResearchProcess (Contd.) Step 3 Estimating the Value of Information Value depends on: Importance of decision Uncertainty that surrounds it Influence of research information on the decision
- 21. Illustrative Decision Models $ 4 million Introduce Success $ 1 million Product A Failure Do not Introduce $ 4 million Success Introduce Product B -$ 2.5 million Failure Do not Introduce
- 22. Research Design andImplementation Research Design The detailed blueprint to guide the implementation of a research study toward the realization of its objectives
- 23. Categories of Research Exploratory Research Used when seeking insights into the general nature of a problem, the possible decision alternatives, and the relevant variables that need to be considered Descriptive Research Provides an accurate snapshot of some aspect of the market environment, such as: Consumer evaluation of the attributes of our product versus competing products. The socioeconomic and demographic characteristics of the readership of a magazine The proportion of all possible outlets that are carrying, displaying, or merchandising our products Causal Research Used when it is necessary to show that one variable causes or determines the values of other variables, a causal research approach must be used
- 24. Detective Funnel Uses Combinationof All Three Research Techniques Exploratory techniques generate all possible reasons for a problem Descriptive and Causal approaches narrow the possible causes
- 25. Detective Funnel Problem Exploratory Research Descriptive Possible Research causes of the problem Causal Research Probable Causes
- 26. Methods & DataCollection.
- 27.
- 28. Sources of SecondaryData PRIMARY •SALES/PATRONAGE RESULTS ( OUTCOMES ) DATA •MARKETING ACTIVITY ( INPUTS ) SOURCES INTERNAL •COST INFORMATION RECORDS •DISTRIBUTOR REPORTS AND FEEDBACK •CUSTOMER FEEDBACK DATA SOURCES ELECTRONIC SECONDARY DATA •GOVERNMENT SOURCES •TRADE ASSOCIATIONS •PERIODICALS PUBLISHED •NEWSPAPERS DATA •BOOKS •ANNUAL REPORTS PRINTED •PRIVATE STUDIES EXTERNAL SOURCES STANDARDIZED SOURCES OF •STORE AUDITS MARKETING •WAREHOUSE WITHDRAWAL SERVICES DATA •CONSUMER PURCHASE PANELS •SINGLE SOURCE DATA •NIELSEN’S TELEVISION INDEX •STARCH SCORES •ARBITRON PANEL •MULTIMEDIA SERVICES INTERNET
- 29. Uses of SecondaryData Can solve the problem on hand all by its own Can lead to new ideas and other sources Helps to define the problem more clearly Can help in designing the primary data collections process Helps in defining the population / sample Can serve as a reference base
- 30. Benefits and Limitationsof Secondary Data Benefits Limitations Low cost Collected for some other purpose Less effort No control over data collection Less time May not be accurate At times, more May not be in correct form accurate May be outdated May not meet data At times, only way to requirements obtain data Assumptions have to be made
- 31. Internal Sources ofSecondary Data Internal Records Accounting Data Sales Reports Inventory Management Customer Database
- 32. External Sources ofSecondary Data Published data sources (Census, publications of various trade associations) Trade directories Computer retrievable databases ("online" databases)
- 33.
- 34. New Product Research NewProduct Research Process Generation of new product concepts Evaluation and development of those concepts Evaluation and development of the actual products Testing in the context of the marketing program Need Identification Perceptual maps Social and environmental trends Benefit structure analysis Product users Focus-group interviews Lead user analysis Concept Identification
- 35. New Product Research(Contd.) Test Marketing Designing the sell-in market test Selecting the test cities Implementing and controlling the test Timing Measurement Costs of a test market Controlled Distribution Scanner Markets (CDSM) Projecting Trial, Repeat and Usage Rate Using Panel Data
- 36. Other Applications Pricing Research Research for Profit-oriented Pricing Research for Share-oriented Pricing Distribution Research Warehouse and Retail Location Research Center-of-gravity Simulation Computerized Simulation Models Catchment Area Analysis Outlet Location Research Number and Location of Sales Representatives Sales effort approach Statistical analysis of sales data Field experiments Computerized models of sales force size and allocation by market and by product line
- 37. Advertising Research Criteria Copy Test Validity Recognition Qualitative Research Recall Audience Impressions of Persuasion the Ad Forced exposure, brand Adjective Checklist preference change On-air tests -- brand Eye Movement preference change Physiological Customized Measures of Measurement Communication / Attitude Budget Decision Purchase Behavior Coupon stimulated Media Research Measuring print vehicle purchasing Split-cable tests audiences Tracking Studies Measuring broadcast Diagnostic Testing vehicles audiences
- 38. Sales Promotion Research PromotionalTools Price Discounts Features Displays Coupons / Rebates Sweepstakes Promotional Strategy Hi-lo Every Day Low Price (EDLP)
- 39.
- 40.
- 41.
- 42. Let’s sell tosegments with big eyes and lips 42
- 43. Factors driving aTarget Marketing Strategy 43
- 44. Selling Ice Creamto Eskimos 44
- 46. Target Marketing Strategies 46 Broad
- 47. Target Marketing Socially ResponsibleTargeting Some segments, especially children, are at special risk Many potential abuses on the Internet, including fraud Internet shoppers Controversy occurs when the methods used are questionable 7 - 47
- 48.
- 49. What is aproduct? A product is anything that can offered to market for attention, acquisition ,use, consumption that might satisfy a want or need.
- 50. Products Tangible products Intangible products GOODS SEVICES
- 51. Features of product tangibility Associated attributes Intangible Features of attributes product Exchange Customer value satisfaction
- 52. Levels of product Unexpectedfeatures Luxury features Expected features Basic features Basic product
- 53.
- 54. Durables Durables Services Non-Durables
- 55.
- 56. Business products Materials andparts Raw materials and parts Manufactured materials and parts Capital items Installation Equiptment Suppliers and business services Maintenance and repair items Operating suppliers
- 57. Raw Materials Natural Products Farm Products
- 58.
- 59. Capital items Equipment Installation
- 60. Suppliers and businessservices Operating Suppliers Mainteinance and repair items
- 61.
- 62. Product Mix Theassortment of products that a company offers to a market Width – how many different product lines? Length – the number of items in the product mix Depth – The no. of variants offered in a product line Consistency – how closely the product lines are related in usage
- 63. Product Line &Product Mix LAMPS •Table •Ceiling •Track •Desk
- 64. Product Mix Product Product Product Line 1 Line 2 Line 3 LAMPS TABLES CHAIRS •Table •Kitchen •Dining Room •Ceiling •Dining Room •Living Room •Track •End •Bedroom •Desk •Coffee •Outdoor •Outdoor •Desk •Conference •Computer
- 65. PRODUCT MIX EXAMPLE Width (# of product lines) Hair Care Salty Dental Soft Drinks Snacks Care Depth (# of items) Shampoo Chips Tooth Brush Cola Conditioner Nuts Tooth Paste Ginger Ale Hair Spray Crackers Dental Floss Root Beer
- 66. Factors influencing changein product mix Changes in market demand Cost of production Quantity of production Changes in company desire Competitors actions and reactions
- 67. Product Mix Strategies Expansionof product mix Contracting or dropping the product mix Alteration of existing product s Trading up/trading down strategies
- 68. Product management Planning Forecasting Marketing ofproducts of a company is product management
- 69. Objectives of productmanagement To design product strategies To spot market opportunities To develop strategies for each stage of product life cycle To generate new product ideas
- 70. Product Innovation –New Product Types
- 71. Importance of newproduct To meet consumer needs and wants To meet competition To increase profits To avoid threats from substitutes
- 72. New Product DevelopmentProcess Step 1. Idea Generation Systematic Search for New Product Ideas Internal sources Customers Competitors Distributors Suppliers Step 2. Idea Screening Process to spot good ideas and drop poor ones Technically feasibility Financially viable
- 73. New Product DevelopmentProcess Step 3. Concept Development & Testing
- 74. New Product DevelopmentProcess Step 4. Marketing Strategy Development
- 75. New Product DevelopmentProcess Step 5. Business Analysis Step 6. Product Development
- 76. New Product DevelopmentProcess Step 7. Test Marketing
- 77. New Product DevelopmentProcess Step-8 commercialization Introducing the product into the market Introducing the product into the market
- 78. Profit per unitProduct category sales (real dollars) Product Life Cycle Life cycle extension Profit/unit Sales (real dollars) Introduction Maturity Decline or extension Competitive Growth turbulence Time (years) Source: Reprinted with permission from p. 60 of Analysis for Strategic Marketing Decisions, by George Day. Copyright © 1986 by West Publishing Company. All rights reserved. 8-78 8-3
- 79. Marketing Strategies: IntroductionStage Sales Sales Low sales Low sales Costs Costs High cost per customer High cost per customer Profits Profits Negative Negative Marketing Objectives Create product awareness and Create product awareness and Marketing Objectives trial trial Product Product Offer a basic product Offer a basic product Price Price Use cost-plus basis Use cost-plus basis Distribution Distribution Build selective distribution Build selective distribution Advertising Advertising Build awareness among innovators, Build awareness among innovators, early adopters early adopters
- 80. Marketing Strategies: GrowthStage Sales Sales Rapidly rising sales Rapidly rising sales Costs Costs Average cost per customer Average cost per customer Profits Profits Rising profits Rising profits Marketing Objectives Marketing Objectives Maximize market share Maximize market share Product Offer product extensions, service, Offer product extensions, service, Product warranty warranty Price Price Penetration Pricing Penetration Pricing Distribution Distribution Build intensive distribution Build intensive distribution Advertising Advertising Build awareness in the mass market Build awareness in the mass market
- 81. Marketing Strategies: MaturityStage Sales Sales Peak sales Peak sales Costs Costs Low cost per customer Low cost per customer Profits Profits High profits High profits Marketing Objectives Maximize profit while defending Maximize profit while defending Marketing Objectives market share market share Product Product Diversify brand and models Diversify brand and models Price Price Price to match or best competitors Price to match or best competitors Distribution Distribution Build more intensive distribution Build more intensive distribution Advertising Advertising Stress brand differences and benefits Stress brand differences and benefits
- 82. Marketing Strategies: DeclineStage Sales Sales Declining sales Declining sales Costs Costs Low cost per customer Low cost per customer Profits Profits Declining profits Declining profits Marketing Objectives Reduce expenditure and milk the Reduce expenditure and milk the Marketing Objectives brand brand Product Product Phase out weak items Phase out weak items Price Price Cut price Cut price Distribution Go selective: phase out unprofitable Go selective: phase out unprofitable Distribution outlets outlets Advertising Advertising Reduce to level needed to retain Reduce to level needed to retain hard-core loyal customers hard-core loyal customers
- 83. Causes of NewProduct Failures Overestimation of Market Size Product Design Problems Product Incorrectly Positioned, Priced or Advertised Costs of Product Development Competitive Actions Technical problems Poor planning Inadequate promotion Poor packing Fault pricing
- 84.
- 85. Positioning Positioning: The place the product occupies in consumers’ minds relative to competing products. Typically defined by consumers on the basis of important attributes. Involves implanting the brand’s unique benefits and differentiation in the customer’s mind. Positioning maps that plot perceptions of brands are commonly used. 7 - 85
- 87. Choosing a PositioningStrategy Topics Differentiation can be based on Products Identifying possible Services competitive advantages Channels People Choosing the right Image competitive advantage Choosing a positioning strategy 7 - 87
- 88. Choosing a PositioningStrategy Topics • How many differences to promote? Unique selling proposition Identifying possible Several benefits competitive advantages • Which differences to promote? Choosing the right Criteria include: competitive advantage Important Choosing a positioning Distinctive strategy Superior Communicable Preemptive Affordable Profitable 7 - 88
- 89. Choosing a PositioningStrategy Topics • Value propositions represent the full positioning of the brand Identifying possible • Possible value propositions: competitive advantages More for More Choosing the right More for the Same competitive advantage More for Less Choosing a positioning The Same for Less strategy Less for Much Less 7 - 89
- 90. Developing a PositioningStatement Positioning statements summarize the company or brand positioning EXAMPLE: To (target segment and need) our (brand) is (concept) that (point-of-difference) 7 - 90
- 91. Communicating the Positioning Companiesmust be certain to DELIVER their value propositions. Positions must be monitored and adapted over time. 7 - 91
- 92. Market Segmentation Process 6. Develop Marketing Mix for Each Target Segment Market 5. Develop Positioning Positioning for Each Target Segment 4. Select Target Segment(s) Market 3. Develop Measures of Segment Attractiveness Targeting 2. Develop Profiles of Resulting Segments 1. Identify Bases Market Segmentation for Segmenting the Market
- 93. Brand Identity Prism (KAPFERER)
- 94. KAPFERER represents brandidentity diagrammatically as a six-sided prism as shown below: Constructed Source/Sender E I x n t t e e r r n n a a l l i i s s a a t t i i o o n n Constructed Receiver
- 95. Brand Identity Prism Physiqueaccording to him is the basis of the brand. E.G. the physique of Philips is “technology and reliability” while for the brand Tata it is “trust” Personality is same as Aaker, it answers the question “what happens to this brand when it becomes a person?” Culture symbolizes the organization, its country-of- origin and the values it stands for. E.G. traditional brands like balsara, dabur and zandu.
- 96. Brand Identity Prism Relationshipis the handshake between consumer and the organisation. E.G. the relationship with “safola” is safety. Reflection is the consumer’s perception for what the brands stands for. E.G. coke’s image more attract youth. Self-image is what the consumer think of himself. E.G. benz Car owner think that since he has bought the car he is treating himself to one of the best car in the world.
- 97. Let us understandthe model in detail…
- 98. What is aBrand??? “ A Brand is a complex symbol. It is the intangible sum of a product’s attributes, its name, packaging and price, its history, reputation, and the way it’s advertised. A brand is also defined by consumer’s impression of people who use it, as well as their own experience ” - David Ogilvy
- 99. Now let uslook at how Brand Experience is differentiated…
- 100. Brand Experience areof Two types
- 101. The External BrandExperience includes Name Logo Advertising Brand Identity Environments Products & Service
- 102. The Internal BrandExperience includes Business Process Customer Relations Brand Values Training Quality Staff Motivation Recruitment Policies Technology etc..
- 103. Now let uslook at the Brand Identity Prism based on Kapferer model and the 6 key dimensions in it
- 104. -Name -Logo -Business Process -Customer Relations -Advertising -Brand Identity -Brand Values -Training -Environments -Products & Service -Quality -Staff Motivation -Recruitment Policies -Technology etc.. Constructed Source E I x n t t e e r r n n a a l l i i s s a a t t i i o o n n Constructed Receiver
- 105. Physical Product features, symbols & attributes Personality Character & attitude Relationship Beliefs & association Culture Set of Values Reflection Customer’s view of the brand Self-Image Internal mirror of customer as user of brand
- 106. Let us nowunderstand the prism with some examples…
- 107. For Sify Indialet us look at how they have built the brand basis the Kapferer Model
- 108. Sify India Physical Kite Symbol, Online Access Personality Innovative & Tech savvy Culture Customer centric & Indian Self -image "net" way of life empowered Reflection Consistent & dependable performer Relationship Best guide to the net
- 109. Sify India Physical Kite Symbol, Online Access Personality Innovative & Tech savvy Culture Customer centric & Indian Self -image "net" way of life empowered Reflection Consistent & dependable performer Relationship Best guide to the net
- 110.
Editor's Notes
- #56 Convenience goods – consumers use minimal effort for frequently purchased low cost items Shopping goods - consumers make a considerable effort to evaluate Consumers make product comparison(s) They seek information before purchase They are not impulsive Moderate substitutions are made Product’s last a considerable time Monetary & social costs may be high
- #79 Is the product life cycle concept useful? Why or why not? The product life cycle is concerned with the sales history of a product or product class. The concept holds that a product’s sales change over time in a predictable way and that products go through a series of five distinct stages: introduction, growth, shakeout, maturity, and decline. Each of these stages provides distinct opportunities and threats, thereby affecting the firm’s strategy as well as its marketing programs. Despite the fact that many new products do not follow such a prescribed route because of failure, the concept is valuable in helping management look into the future and better anticipate what changes will need to be made in strategic marketing programs. What are the product life-cycle limitations? The product life-cycle model’s major weakness lies in its normative approach to prescribing strategies based on assumptions about the features or characteristics of each stage. It fails to take into account that the product life cycle is driven by market forces expressing the evolution of consumer preferences (the market), technology (the product), and competition (the supply side).
- #80 Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes. Although this is a broad guideline, this may not be entirely true for some categories. For instance, pricing say Nokia Lumia on a cost plus basis would be impossible. Margins would be high because of the ‘novelty’ factor and tech products typically end up skimming. And they spend the most on advertising their new products.
- #81 Product Life-Cycle Strategies Growth. In this stage the company experiences both increasing sales and competition. Promotion costs are spread over larger volume and strategic decisions focus on growth strategies. Strategies include adding new features, improving quality, increasing distribution, and entering new market segments.
- #82 Product Life Cycle Strategies Maturity. In this stage the company must manage slower growth over a longer period of time. Strategic decisions made in the growth stage may limit choices now. Marketing managers must proactively seek advantage by either market modification to increase consumption, product modification to attract new users (quality, feature, and style improvements), or marketing mix modification in an attempt to improve competitive position.
- #83 Product Life Cycle Strategies Decline. In this stage the costs of managing the product may eventually exceed profits. Rate of decline is a major factor in setting strategy. Management may maintain the brand as competitors drop out, harvest the brand by reducing costs of support for short term profit increases, or drop the product (divest) altogether.
- #93 Steps in Segmentation, Targeting, and Positioning Market Segmentation. Market segmentation is the process of dividing a market into distinct groups of buyers who might require separate products or marketing mixes. All buyers have unique needs and wants. Still it is usually possible in consumer markets to identify relatively homogeneous portions or segments of the total market according to shared preferences, attitudes, or behaviors that distinguish them from the rest of the market. These segments may require different products and/or separate mixes. Market Targeting. Market targeting is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. Given effective market segmentation, the firm must choose which markets to serve and how to serve them. Discussion Note: In targeting markets to serve the firm must consider its resources and objectives in setting strategy. Market Positioning. Market positioning is the process of formulating competitive positioning for a product and a detailed marketing mix. Marketers must plan how to present the product to the consumer. Discussion Note: The product's position is defined by how consumers view it on important attributes. Steps in Segmentation, Targeting, and Positioning This CTR corresponds to Figure 7-1 on p. 196 and relates to the material on pp. 196.