ntroduction to Marketing - Session 3 at ITM, Mumbai. Includes:
Promotion and Advertising
• Promotional activities
o Trade shows, sponsorship, trade-fairs, contests, coupon programme, community projects
• Advertising
o TV, radio, trade magazines, direct mailing, billboards, packaging, internet
• Public Relations
o Relationships with media, customer’s community, public speaking, research
• Personal Selling
o B2B and B2C
• Marketing Accessories
Brochures, newsletters, fliers, give-aways
Pricing and Distribution
Price is unique among the 4 Ps in that it directly affects the company’s revenues and profits.
Pricing is both a science and an art
Pricing seems to be the one “P” that has been dramatically affected by the use of the Internet
Pricing and Distribution
• Cost based pricing
• Value based pricing
• Premium pricing
• Discount / promotional pricing
• Price Skimming
• Psychological pricing
• Geographic pricing
• Product line pricing
Introduction to Marketing - Session 2 at ITM, Mumbai. Includes:
Targeting
What is good marketing research?
Marketing research Questions
Types of information
Types of market research
Market research summary
Test Market
Define Target Audience
Estimate market potential
Analyze market share/share of customer
Track competitors
Identify market characteristics & trends
Analyze sales data
Sales forecasting: Existing / new products
Product
• Product Strategy
• Product Essentials
• Features and Benefits
• Classifying products
• Product line and mix
• Branding
• Packaging and LabellingTrademarks
Positioning and Brand Building
• The Art of Positioning is Marketing
• Positioning the game of Mind and Heart
• Brand is a Promise
• Brand is owned by Customers
• Understanding Brand Drivers
• Brand Attributes
• Brand Architecture
• The Positioning Template
Slides of my session at ITM, Mumbai. Introduction to Marketing. Session 1. Includes:
What is Marketing
Marketing Defined
Core Concepts
Marketing Process
Marketing Philosophies
Towards new marketing assumptions
Functions of Marketing
The Four 4 Ps The Marketing Variables
Market Segmenting
Identify sub-markets within market
Decide which one(s) to pursue (target)
Design marketing mix(es) to be attractive to targeted segment's
Demographics - age, race, sex, income, education
Geographic - country, state, urban/rural, climate
Psychographics -attitudes, values, beliefs, personality traits
Behavioral - benefits, usage.
Market consists of people with both the desire and ability to buy
Distribution
Direct and Indirect Selling Channels
Types of Intermediaries: Direct Channel
Types of Intermediaries: Indirect Channel
Channel Development
Channel Adaptation
Channel Decisions
Marketing of Industrial Product also called:(B2B)
Definition
Differences Between B2B and B2C
• Products/Services being marketed
• Nature of demand
• How the customer buys
• Communication process
• Economic/Financial factors
• Relationship Marketing
Marketing of Services
What is a service?
Difference between goods and services
Intangibility Inseparability, Heterogeneity and Perishability
Services -
Business Services, Health Services, Professional Services and
Hospitality Services
• The role of marketing in a service firm
Sales and Field Force Management
• Sales Management defined
• Task and goals of the sales
• Sales Management Model
• Sales Management Trends
• Transaction Selling vs Relationship Selling
• Recruiting and Managing the field team
• Time and Territory Management
Personal Selling
The most important promotional tool in B2B marketing
Transaction/relationship is often too complex to consummate without personal interaction between marketer and buyer.
Boundary Spanner
Customers are sophisticated and you need a long-term relationship to be successful.
B2B sales cost more than B2C selling
Introduction to Marketing - Session 2 at ITM, Mumbai. Includes:
Targeting
What is good marketing research?
Marketing research Questions
Types of information
Types of market research
Market research summary
Test Market
Define Target Audience
Estimate market potential
Analyze market share/share of customer
Track competitors
Identify market characteristics & trends
Analyze sales data
Sales forecasting: Existing / new products
Product
• Product Strategy
• Product Essentials
• Features and Benefits
• Classifying products
• Product line and mix
• Branding
• Packaging and LabellingTrademarks
Positioning and Brand Building
• The Art of Positioning is Marketing
• Positioning the game of Mind and Heart
• Brand is a Promise
• Brand is owned by Customers
• Understanding Brand Drivers
• Brand Attributes
• Brand Architecture
• The Positioning Template
Slides of my session at ITM, Mumbai. Introduction to Marketing. Session 1. Includes:
What is Marketing
Marketing Defined
Core Concepts
Marketing Process
Marketing Philosophies
Towards new marketing assumptions
Functions of Marketing
The Four 4 Ps The Marketing Variables
Market Segmenting
Identify sub-markets within market
Decide which one(s) to pursue (target)
Design marketing mix(es) to be attractive to targeted segment's
Demographics - age, race, sex, income, education
Geographic - country, state, urban/rural, climate
Psychographics -attitudes, values, beliefs, personality traits
Behavioral - benefits, usage.
Market consists of people with both the desire and ability to buy
Distribution
Direct and Indirect Selling Channels
Types of Intermediaries: Direct Channel
Types of Intermediaries: Indirect Channel
Channel Development
Channel Adaptation
Channel Decisions
Marketing of Industrial Product also called:(B2B)
Definition
Differences Between B2B and B2C
• Products/Services being marketed
• Nature of demand
• How the customer buys
• Communication process
• Economic/Financial factors
• Relationship Marketing
Marketing of Services
What is a service?
Difference between goods and services
Intangibility Inseparability, Heterogeneity and Perishability
Services -
Business Services, Health Services, Professional Services and
Hospitality Services
• The role of marketing in a service firm
Sales and Field Force Management
• Sales Management defined
• Task and goals of the sales
• Sales Management Model
• Sales Management Trends
• Transaction Selling vs Relationship Selling
• Recruiting and Managing the field team
• Time and Territory Management
Personal Selling
The most important promotional tool in B2B marketing
Transaction/relationship is often too complex to consummate without personal interaction between marketer and buyer.
Boundary Spanner
Customers are sophisticated and you need a long-term relationship to be successful.
B2B sales cost more than B2C selling
END RESULT ! Whether it is the end result of your audit or you want to audit the end result of the orgaization\'s activities - both are relevent ! Please view this presentation for a more clear understanding...
Unit no.1 introduction to marketing as per syllabus of pune university basics...Dr. Vinod Malkar
contents Definition & Functions of Marketing.
Scope of Marketing, Core concepts of marketing such as
Need, Want, Demand, Customer Value, Exchange, Customer & Consumer, Customer satisfaction, Customer Delight, Customer Loyalty, Marketing Vs market
1.2 Markets : Definition of market, Competition, key customer markets, Market places, Market spaces, Meta markets.
1.3 Company orientation towards market place: Product, Production, sales, marketing, societal, transactional, relational, holistic marketing orientation, selling vs marketing, Concept of marketing Myopia.
1.4 Introduction to the concept of marketing mix : Origin and concept of Marketing Mix and definition of 7 Ps people process and physical Evidence.
1.5. New Marketing Realities : Major societal forces, new consumer capabilities and new company capabilities
The Strategic Marketing Process - How to Structure Your Marketing Activities ...Moderandi Inc.
This guide defines a marketing process that you can use to put structure around your daily, monthly and annual marketing and sales activities.
The process covers more than just traditional marketing and ties together all go-to-market business activities: strategic planning, financial planning and measurement, creative development, marketing execution and sales, and customer retention.
END RESULT ! Whether it is the end result of your audit or you want to audit the end result of the orgaization\'s activities - both are relevent ! Please view this presentation for a more clear understanding...
Unit no.1 introduction to marketing as per syllabus of pune university basics...Dr. Vinod Malkar
contents Definition & Functions of Marketing.
Scope of Marketing, Core concepts of marketing such as
Need, Want, Demand, Customer Value, Exchange, Customer & Consumer, Customer satisfaction, Customer Delight, Customer Loyalty, Marketing Vs market
1.2 Markets : Definition of market, Competition, key customer markets, Market places, Market spaces, Meta markets.
1.3 Company orientation towards market place: Product, Production, sales, marketing, societal, transactional, relational, holistic marketing orientation, selling vs marketing, Concept of marketing Myopia.
1.4 Introduction to the concept of marketing mix : Origin and concept of Marketing Mix and definition of 7 Ps people process and physical Evidence.
1.5. New Marketing Realities : Major societal forces, new consumer capabilities and new company capabilities
The Strategic Marketing Process - How to Structure Your Marketing Activities ...Moderandi Inc.
This guide defines a marketing process that you can use to put structure around your daily, monthly and annual marketing and sales activities.
The process covers more than just traditional marketing and ties together all go-to-market business activities: strategic planning, financial planning and measurement, creative development, marketing execution and sales, and customer retention.
A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, from the point of production to the point of consumption.
BBA III SEM ADVERTISING MANAGEMENT -UNIT 2 Mansi Tyagi
BBA III SEM ADVERTISING MANAGEMENT -UNIT 2
-(MANSI TYAGI)
UNIT 2: SYLLABUS
Integrated Communication Mix (IMC)-meaning, importance;Communicationmeaning, importance, process, communication mix-components, role in marketing,Branding-meaning, importance in advertising.
UNIT-9-MANAGING MASS AND PERSONAL COMMUNICATION.pptetebarkhmichale
Invoice Finance
In Ethiopia, Ethio Lease is the first privately owned equipment leasing company with a license from the National Bank of Ethiopia. Ethio Lease provides its customers with carefully selected equipment on the basis of a lease contract, whereby the customer is the Lessee, who has a conditional right to use the equipment, and Ethio Lease is the Lessor, who buys and owns the equipment. If the equipment needs to be imported, Ethio Lease will buy the equipment abroad, using foreign currency from its parent company, AAFC. Ethio Lease customers can pay the lease fee in Ethiopian Birr. While leasing comes in many forms and shapes, for now the only form of leasing that the NBE will allow is a capital lease (aka “financial lease” or “full pay-out” lease). This Ethio Lease can be an alternative foe very few startups, it cannot be considered as a significant alternative for startups since most of them couldn’t fit it and it couldn’t be accessible enough.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
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Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
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Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
4. Learning Goals
Discuss how integrated marketing communications relates
to a firm’s overall promotion strategy.
Explain promotional mix and outline the objectives of
promotion.
Summarize the different types of advertising and
advertising media.
Outline the roles of sales promotion, personal selling, and
public relations.
Describe pushing and pulling promotional strategies.
Discuss the major ethical issues involved in promotion.
5. Promotions – What is it?
Promotion is the function of
informing, persuading, and
influencing a purchase decision.
Integrated marketing
communications (IMC) Coordination
of all promotional activities—media
advertising, direct mail, personal
selling, sales promotion, and public
relations—to produce a unified
customer-focused message.
6. Integrated Marketing Communications
Must take a broad view and plan for all form of
customer contact.
Create unified personality and message for the good,
service, or brand.
Elements include personal selling, advertising, sales
promotion, publicity, and public relations.
7. Promotional Mix
Promotional mix Combination of personal and
nonpersonal selling techniques designed to achieve
promotional objectives.
Personal selling Interpersonal promotional process involving a
seller’s face-to-face presentation to a prospective buyer.
Nonpersonal selling Advertising, sales promotion, direct
marketing, and public relations.
10. Objectives of Promotional Strategy
Providing Information
Major portion of advertising provides information about a product.
Differentiating a Product
Communicate to buyers meaningful distinctions about the attributes,
price, quality, or use of a good or service.
Increasing Sales
Most common objective of a promotional strategy.
Stabilizing Sales
Stable sales evens out the production cycle, reduces some
management and production costs, and simplifies financial,
purchasing, and marketing planning.
Accentuating the Product’s Value
Explaining hidden benefits of ownership.
11. Promotional Planning
Product placement Marketers pay placement fees to
have their products showcased in various media,
ranging from newspapers and magazines to
television and movies.
Guerilla marketing Innovative, low-cost marketing
efforts designed to get consumers’ attention in
unusual ways.
12. Advertising
Advertising Paid nonpersonal communication delivered
through various media and designed to inform, persuade,
or remind members of a particular audience.
Consumers receive 3,500 to 5,000 marketing messages
each day.
Types of Advertising
Product advertising Messages designed to sell a particular good or service.
Institutional advertising – Messages that promote concepts, ideas,
philosophies, or goodwill for industries, companies, organizations, or
government entities.
Cause advertising – Form of institutional messaging that promotes a specific
viewpoint on a public issue as a way to influence public opinion and the
legislative process
13. Advertising and the Product Life Cycle
Informative advertising – Used to build initial demand for
a product in the introductory phase of the product life cycle.
Persuasive advertising – Attempts to improve the
competitive status of a product, institution, or concept,
usually in the growth and maturity stages of the product life
cycle.
Comparative advertising – Compares products directly with their
competitors either by name or by inference.
Reminder-oriented advertising – Appears in the late
maturity or decline stages of the product life cycle to
maintain awareness of the importance and usefulness of a
product.
14. Advertising and the Product Life Cycle
Entertain emind
R
Convince
Attract
Attention
15. Advertising and the Product Life Cycle
•Only few brands available in its •High involvement / High Risk
High
space • Can’t afford to make mistakes
• Includes existing users also
• Promiscuous users
• Ex: Durables / Hospitals
• The job of Advertising is to • The job of Advertising is to
Involvement
‘ENTERTAIN’ ‘CONVINCE’
• Marketing Paradigm: FEEL / DO / • Marketing Paradigm: LEARN / FEEL /
FEEL DO
•Commoditised Brands •Commoditised Brands
• Predominantly speaking to ‘Own Past • Experienced by ‘New Brands’ entering
Users an existing market
• The job of Advertising is to ‘REMIND’ • Talks predominantly to ‘New users’
• Marketing Paradigm: DO / FEEL / DO only
• The job of Advertising is to ‘ATTRACT
Low
ATTENTION’
• Marketing Paradigm: LEARN / DO /
FEEL
Low Brand Risk High
16. Vehicles
Television Direct Mail
Largest reach High per person cost, but can be
Large variety of channels with carefully targeted and highly
varied interests effective.
Expensive Outdoor Advertising
Newspapers Requires brief messages.
Short life span Online and Interactive
Possibility to localize Advertising
Easy to coordinate with other Experts predict sales from online
promotional efforts. advertising will double in 2012.
Radio Virals – Kolaveridi?
Latest entrant (after a hiatus)
Low cost
Car commuters – captive audience
Sometimes Intrusive
Magazines
Including Consumer publications
and trade journals.
17. More Vehicles…
Sponsorship
Providing funds for a sporting or cultural event in exchange for
a direct association with the event.
Benefits: Exposure to target audience and association with
image of the event.
Other Media Options
Marketers look for novel ways to reach customers.
Examples: infomercials, ATM receipts, directory advertising
18. SALES PROMOTION
Sales promotion Nonpersonal
marketing activities other than
advertising, personal selling,
and public relations that
stimulate consumer
purchasing and dealer
effectiveness.
19. Consumer-Oriented Promotions
Premiums, Coupons, Rebates, Samples
Two of every five promotion dollars are spent on premiums, items
given free or at reduced price with the purchase of another product.
Coupons attract new customers but focus on price rather than brand
loyalty.
Rebates increase purchase rates, promote multiple purchases, and
reward product users.
Three of every four consumers who receive a sample will try it
Games, Contest, and Sweepstakes
Often used to introduce new goods and attract new customers.
Subject to legal restrictions.
Specialty Advertising
Gift of useful merchandise carrying the name, logo, or slogan
of an organization.
20. Trade-Oriented Promotions
Sales promotion geared to marketing intermediaries
rather than to consumers.
Encourage retailers in several ways:
To stock new products.
To continue carrying existing ones.
To promote both new and existing products effectively to
consumers.
Point-of-purchase (POP) advertising Displays or
demonstrations that promote products when and where
consumers buy them, such as in retail stores.
Promote goods and services at trade shows
21. PERSONAL SELLING
A person-to-person promotional presentation to a
potential buyer.
Usually used under four conditions:
Customers are relatively few in number and geographically
concentrated.
The product is technically complex, involves trade-ins, and
requires special handling.
The product carries a relatively high price.
It moves through direct-distribution channels.
Example: Selling to the government or military.
23. Public Relations
Public organization’s communications and
relationships with its various audience.
Helps a firm establish awareness of goods and services and
builds a positive image of them.
Publicity
Publicity Stimulation of demand for a good, service, place,
idea, person, or organization by disseminating news or
obtaining favorable unpaid media presentations.
Good publicity can promote a firm’s positive image
Negative publicity can cause problems.
24. PROMOTIONAL STRATEGY
Pushing and Pulling Strategies
Pushing strategy Relies on personal selling to market an item
to wholesalers and retailers in a company’s distribution
channels.
Companies promote the product to members of the marketing
channel, not to end users.
Pulling strategy Promote a product by generating consumer
demand for it, primarily through advertising and sales
promotion appeals.
Potential buyers will request that their suppliers—retailers or local
distributors—carry the product, thereby pulling it through the
distribution channel.
Most marketing situations require combinations of pushing
and pulling strategies, although the primary emphasis can
vary.
26. Learning Goals
1. Identify and define the internal factors
affecting a firm’s pricing decisions
2. Identify and define the external factors
affecting pricing decisions, including the
impact of consumer perceptions of price and
value
3. Contrast the three general approaches to
setting prices
27. Definition
Price
The amount of money charged for a product or service, or the
sum of the values that consumers exchange for the benefits of
having or using the product or service.
Rent Tuition • Bribe
Fee Fare • Salary
Rate Toll • Wage
Commission Premium • Interest
Assessment Retainer • Tax
30. Factors to Consider When Setting Price
Internal Factors Pricing must be carefully
coordinated with the other
Marketing objectives marketing mix elements
Target costing is often used to
Marketing mix
support product positioning
strategies strategies based on price
Costs Non-price positioning can also
Organizational be used
considerations
31. Factors to Consider When Setting Price
Internal Factors Types of costs:
Variable
Marketing objectives Fixed
Marketing mix Total costs
How costs vary at different
strategies
production levels will
Costs
influence price setting
Organizational Experience (learning) curve
considerations affects price
32. Factors to Consider When Setting Price
Who sets the price?
Internal Factors Small companies: CEO or
top management
Marketing objectives Large companies: Divisional
Marketing mix or product line managers
strategies Price negotiation is common in
industrial settings where
Costs
pricing departments may be
Organizational created
considerations
33. Factors to Consider When Setting Price
Types of markets
External Factors Pure competition
Monopolistic competition
Nature of market and Oligopolistic competition
demand Pure monopoly
Competitors’ costs, Consumer perceptions of price
prices, and offers and value
Price-demand relationship
Other environmental
Demand curve
elements
Price elasticity of demand
34. Factors to Consider When Setting Price
Consider competitors’ costs,
prices, and possible reactions
External Factors Pricing strategy influences the
nature of competition
Low-price low-margin
Nature of market and
strategies inhibit competition
demand High-price high-margin
Competitors’ costs, strategies attract competition
prices, and offers Benchmarking costs against the
Other environmental competition is recommended
elements
35. Factors to Consider When Setting Price
External Factors Economic conditions
Affect production costs
Affect buyer perceptions of
Nature of market and
price and value
demand Reseller reactions to prices
Competitors’ costs, must be considered
prices, and offers Government may restrict or
Other environmental limit pricing options
Social considerations may be
elements
taken into account
36. General Pricing Approaches
Cost-Based Pricing: Cost-Plus Pricing
Adding a standard markup to cost
Ignores demand and competition
Popular pricing technique because:
It simplifies the pricing process
Price competition may be minimized
It is perceived as more fair to both buyers and sellers
37. General Pricing Approaches
Cost-Based Pricing Example
- Variable costs: Rs.20 - Fixed costs: Rs.500,000
- Expected sales: 100,000 units - Desired Sales Markup: 20%
Variable Cost + Fixed Costs/Unit Sales = Unit Cost
Rs.20 + Rs.500,000/100,000 = Rs.25 per unit
Unit Cost/(1 – Desired Return on Sales) = Markup Price
Rs.25 / (1 - .20) = Rs.31.25
38. General Pricing Approaches
Cost-Based Pricing: Break-Even Analysis and
Target Profit Pricing
Break-even charts show total cost and total revenues at
different levels of unit volume.
The intersection of the total revenue and total cost curves
is the break-even point.
Companies wishing to make a profit must exceed the
break-even unit volume.
39. Breakeven Analysis
Breakeven analysis Pricing technique used to determine the
minimum sales volume a product must generate at a
certain price level to cover all costs.
Finding the Breakeven Point
40. General Pricing Approaches
Value-Based Pricing:
Uses buyers’ perceptions of value rather than seller’s
costs to set price.
Measuring perceived value can be difficult.
Consumer attitudes toward price and quality have shifted
during the last decade.
Value pricing at the retail level
Everyday low pricing (EDLP) vs. high-low pricing
41. General Pricing Approaches
Competition-Based Pricing:
Also called going-rate pricing
May price at the same level, above, or below the competition
Bidding for jobs is another variation of competition-based
pricing
Sealed bid pricing
42. Equilibrium Price: Supply = Demand
Price per flash drive/memory stick
Number of flash drives/memory sticks demanded
43. Elasticity of Demand
measure of the sensitivity of demand to changes in prices
Inelastic Demand Elastic Demand
Price
Price
Electricity Recreational
P2 P2 Vehicles
P1 P1
Q2 Q1 Quantity Q2 Q1
not price sensitive
Quantity
no real change in demand price sensitive - changes in demand
44. Marketing Strategy Over the Product Life Cycle
INTRODUCTION GROWTH MATURITY DECLINE
Marketing strategy Market development Increase market Defend market Maintain efficiency in
emphasis share share exploiting product
Pricing High price, unique Lower price Price at or below Set price to remain
strategy product / cover over time competition profitable or reduce
production costs to liquidate
Promotion Mount sales Appeal to Emphasize Reinforce loyal
Strategy promotion for mass market brand differences, customers; reduce
product awareness benefits & loyalty promotion costs
Place strategy Distribute through Build intensive Enlarge Be selective in
selective outlets network of distribution distribution, trim
outlets network unprofitable outlets
45. Alternative Pricing Strategies
Pricing Existing Products/Services - 3 options
Pricing below market prices - Price wars
EX: airlines, store brand vs. manufacturer’s brand
Dumping
Pricing above prevailing market prices for similar products
EX: Sony – higher price = higher quality?
Pricing at or near market prices
46. Alternative Pricing Strategies
Penetration Price Strategy
Penetration
PRICE
Low price establish
product in the market
Elastic demand; Predatory
Skimming Price Strategy pricing
Skimming
PRICE
High price; unique product;
appeal to early adopters;
Prestige pricing
Recovering high R&D
Skimming > Penetration costs
PRICE
Combination
Move inventory; stimulate D;
extend product life
50. Pricing Tactics
Price Lining
Setting a limited number of prices for certain categories of products
Psychological Pricing
Pricing to take advantage of the fact that consumers do not always
respond rationally to stated prices
Discounting
Price reductions offered as an incentive to purchase
High tech Pricing: giving it away!
56. Price Adjustment Strategies
Strategies Types of segmented pricing
strategies:
Product-line pricing
Discount / allowance Location pricing
Segmented Time pricing
Also called revenue or yield
Psychological
management
Promotional Certain conditions must exist
International for segmented pricing to be
effective
57. Segmented Pricing Effectiveness
Market must be “segmentable”
Segments must show different demand
Pricing must be legal
Costs of segmentation cannot exceed revenues earned
Segmented pricing must reflect real differences in customers’
perceived value
58. Pricing a Product Line
High
Quality Toyota Camry
W1
Low
Toyota Corolla
Quality Altis
58
60. Price Adjustment Strategies
Strategies The price is used to say
something about the product.
Price-quality relationship
Discount / allowance Reference prices
Segmented Differences as small as Re.1 can
be important
Psychological Numeric digits may have
Promotional symbolic and visual qualities
that psychologically influence
International the buyer
69. Select the appropriate pricing strategy.
Explain your choice.
Wal-Mart launches a new range
of own-label soups.
Cunard launches two new
cruise ships.
A cable TV provider moves into
a new area and needs to
achieve a market share.
Holiday Inns try to fill hotels
during winter weekends.
Burger King introduces a new
range of value meals.
Nokia launches a new
videophone.
70. What is the need for a Marketing Channel?
Many producers lack the financial resources to carry
out direct marketing
In some cases direct marketing simply is not feasible
Producers who do establish their own channels can
often earn a greater return by increasing their
investment in their main business
71. Role of Intermediaries
Greater efficiency in making goods available to
target markets.
Intermediaries provide
Contacts
Experience
Specialization
Scale of operation
Match supply and demand
72. What does a channel do?
Key functions include:
Gather information about potential and current customers,
competitors, and others
Develop and disseminate persuasive communications to
stimulate purchasing
Reach agreements on price and other terms so that transfer of
ownership or possession can be effected
Place orders with manufacturers
Acquire funds to finance inventories at different levels in the
marketing channel
Assume risk connected with carrying out channel work
Provide for the successive storage and movement of physical
products
Oversee actual transfer of ownership from one organization or
person to another
73. What does a channel do?
Breaking bulk
Reduce number of transactions and create bulk for
transport
Accessibility to markets
Provide specialist support service
M C M C
M C C
M I
M C M C
74. Channel intermediaries - Wholesalers
Break down ‘bulk’
buys from producers and sell small quantities to retailers
Provides storage facilities
reduces contact cost between producer and consumer
Wholesaler takes some of the marketing
responsibility e.g sales force, promotions
75. Wholesaling
Selling and promoting
Buying and assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management services and counseling
77. Channel intermediaries - Agents
Mainly used in international markets
Commission agent - does not take title of the goods.
Secures orders.
Stockist agent - hold ‘consignment’ stock
Control is difficult due to cultural differences
Training, motivation, etc are expensive
78. Channel intermediaries - Retailer
Much stronger personal relationship with the
consumer
Hold a variety of products
Offer consumers credit
Promote and merchandise products
Price the final product
Build retailer ‘brand’ in the high street
79. Types of Retailers
Specialty Store:
Narrow product line with a deep assortment.
Department Store
Several product lines with each line operated as a separate department
Supermarket
Relatively large, low-cost, low-margin, high volume, selfservice operation
Convenience Store
Relatively small store located near residential area
Nonstore retailing
Categories of nonstore retailing
Direct selling
Direct marketing
Telemarketing
Television direct-response marketing
Electronic shopping
Automatic vending
Buying service
Corporate Retailing
80. Retailing
Marketing Decisions
Target Market
Product Assortment and Procurement
Breadth
Depth
Product-differentiation Strategy Possibilities
Feature exclusive national brands that are not available at competing
retailers
Feature mostly private branded merchandise
Feature blockbuster distinctive merchandise events
Feature surprise or ever-changing merchandise
Feature the latest or newest merchandise first
Offer merchandise customizing services
Offer a highly targeted assortment
81. Channel intermediaries - Internet
Sell to a geographically disperse market
Able to target and focus on specific segments
Relatively low set-up costs
Use of e-commerce technology (for payment,
shopping software, etc)
Paradigm shift in commerce and consumption
82. Six basic channel decisions
Direct or indirect channels
Single or multiple channels
Length of channel
Types of intermediaries
Number of intermediaries at each level
Which intermediaries? Avoid intrachannel conflict
84. Channel-Design Decisions
Analyzing Consumer Service Needs
Analyzing Consumer Service Needs
Setting Channel Objectives & Constraints
Setting Channel Objectives & Constraints
Identifying Major Alternatives
Identifying Major Alternatives
Intensive
Intensive Selective
Selective Exclusive
Exclusive
Distribution
Distribution Distribution
Distribution Distribution
Distribution
Evaluating the Major Alternatives
Evaluating the Major Alternatives
86. Channel Strategy
•Market factors •Intensive distribution •Conventional channels
•Buyer behavior, •use of all available markets •Independence of channel
geographical concentration (e.g. cigarettes) members, little or no control
of customers •Selective distribution (e.g. pricing, brand image)
•Producer factors •use of a limited number of •Franchise operation
•Available resources outlets in a geographical •Legal contract in which
product mix offered area (e.g. computers) producer and channel
•Product factors •Exclusive distribution intermediaries agree each a
•Product size, bulky or •only one intermediary is member’s rights and
difficult to handle? used in a geographic area obligations
•Competitive factors (e.g. cars sold by only one •Channel ownership
•Competitor’s control over dealer in each town) •By purchasing retail outlets,
traditional distribution producers control their
channels) purchasing, production and
marketing activities
88. Channel Behavior and Conflict
The channel will be most effective when:
Each member is assigned tasks it can do best.
All members cooperate to attain overall channel goals and
satisfy the target market.
Focus on individual goals leads to conflict
Horizontal Conflict occurs among firms at the same level of the
channel.
Vertical Conflict occurs between different levels of the same
channel.
90. Logistics
Involves entire supply chain
Increasing importance of logistics
Effective logistics is becoming a key to winning and keeping
customers
Logistics is a major cost element for most companies
The explosion in product variety has created a need for
improved logistics management
Information technology has created opportunities for major
gains in distribution efficiency
91. Goals of Logistics system
Provide a Targeted Level of Customer Service at
the Least Cost.
Maximize Profits, Not Sales.
Higher Distribution Costs/ Higher
Customer Service Levels
Lower Distribution Costs/ Lower
Customer Service Levels
93. Transportation Modes
Rail
Rail
Nation’s largest carrier, cost-effective
Nation’s largest carrier, cost-effective
for shipping bulk products, piggyback
for shipping bulk products, piggyback
Truck
Truck
Flexible in routing & time schedules, efficient
Flexible in routing & time schedules, efficient
for short-hauls of high value goods
for short-hauls of high value goods
Water
Water
Low cost for shipping bulky, low-value
Low cost for shipping bulky, low-value
goods, slowest form
goods, slowest form
Pipeline
Pipeline
Ship petroleum, natural gas, and chemicals
Ship petroleum, natural gas, and chemicals
from sources to markets
from sources to markets
Air
Air
High cost, ideal when speed is needed or to
High cost, ideal when speed is needed or to
ship high-value, low-bulk items
ship high-value, low-bulk items
94. Selection consideration
Market segment - must know the specific
segment and target customer
Changes during plc - different channels are
exploited at various stages of plc
Producer-distributor fit - their policies,
strategies and image
Qualification assessment - experience and
track record must be established
Distributor training and support
What is the cost of the coke bottle? How much does making a ‘Maruti 800’ cost? Why is it priced at what each of these products are priced at?
When you set the price for your products or service, what factors influence? Pricing decisions are influenced by various factors: Cost of the product Economic conditions Competition Customer needs and characteristics (age, taste, geography) Company objectives
Positioning. Can’t price cheaply if your position is ‘premium’. Premium ‘ Kitna deta hai’ – Maruti example isn’t just a funny tale. If Lambhorghini sells for the price of ALTO then premium value is lost. Various stages of organisation also decide pricing
Pricing is never a stand alone decision
Economies of Scale Lower costs at same pricing will also increase profits
Monopolistic competition – MS Oligopolistic competition – Big 4 accounting firms Pure monopoly
Share examples of when one entity reduced prices because of competition
Fuel costs Subsidies Taxes
Q: How many memory sticks/flash drives are you willing to buy at Rs.200? (20) At Rs.300? (15) The D curve indicates the QD by customers at a particular price level. The D curve slopes downward, from left to right as the P goes down, the Q D goes up. Q: As a producer, how many flash drives are you willing to produce at Rs.200? At Rs.300? (25) The Supply curve indicates the Q that producers are willing to produce and offer to customers at a given price level. Producers are willing to produce more (QS) if they can get a higher P. When QD = QS, we have an equilibrium price and a sale can be made. Both parts of the exchange are satisfied with the price.
Q: At what stage is it? How are you pricing it? (How much does it cost?) Have you changed the price? Are you planning to change the price? When and why? Q: As a producer, what pricing strategy would you use when you introduce a product ? high volume/low price or high price/lower volume must recover R&D investment; penetration or skimming. Flying Machine as against Newport. What was the idea behind the different pricing between the two brands from same stable? Q: What would you do regarding the price as the product enters the growth and maturity stage? Lower price Competitive pricing (Most Shampoos) Q: At what stages do you think it is really important to promote the product to ensure its survival? Q: What would you do in terms of amount of promotion to introduce a product? Special sales promotions; displays; flyers to raise awareness Emphasize uniqueness of product! Q: What would you do in the maturity stage – increase or decrease advertising? Advertising = heaviest; highest cost outlay for the product
In general, for EXISTING PRODUCTS/SERVICES (mature) producers have 3 options for pricing: below, above, or at market prices as established by S + D forces. 1. Pricing below market prices price wars EX: airlines, store brand vs. manufacturer’s brand Extreme example: DUMPING = illegal (U.S. has been accused of dumping tomatoes in foreign countries to get rid of oversupply) 2. Pricing above prevailing market prices for similar products EX: Sony higher price = higher quality? 3. Pricing at or near market prices, especially for products with elastic D customers switch brands easily (food items; toothbrushes)
Penetration Pricing: More common in FMCG. Just to ensure that there is some amount of testing which happens Skimming: Very typical of electronic goods. Example Apple.
As discussed in earlier slide, it is possible to do Penetration pricing in FMCG. Markets are large, demand is elastic, large production can help in economies of scale and there is always intense competition and hence less uniqueness.
Q: What pricing strategy would you suggest for this product?
Big Bazaar or any other retail chain. Bundles of household goods made at the retailers end sold at a competitive price.
Contribution
Bata
What is an appropriate pricing strategy for each of these situations. Wal-Mart launches a new range of own-label soups. ECONOMY > PENETRATION Cunard launches two new cruise ships. SKIMMING or PREMIUM A cable TV provider moves into a new area and needs to achieve a market share. PENETRATION Holiday Inns try to fill hotels during winter weekends. PENETRATION Burger King introduces a new range of value meals. PENETRATION Nokia launches a new videophone. SKIMMING
India is not a major hub for manufacturing ‘tech products’, but is amongst the largest consumer. How would it be possible if: The producer / marketer did not identify this ‘need’ The producer / marketer did not find a ‘nearby’ manufacturing hub The producer / marketer did not find a way to make these products available in India. Example: Dell products.
Producers may not have knowledge of all markets. More often than not, the channel provides effective and inexpensive ways to reach end consumers and the information required to decide on such markets.
Speciality Store : Ex: The Body Shop, Croma Department Store : Ex: Big Bazaar Supermarket : Ex. Hypercity Convenience Store : Mom-and-pop stores, Kirana stores Non-Store Retailing : Direct Selling: Financial Services products (Ex: Mutual Funds) Direct Marketing Telemarketing: Cards Television Direct Response Marketing: TSN Network products Electronic Shopping: All internet stores Automatic vending: Not a concept in India yet Buying service: Catalogue marketing Corporate Retailing : Bulk retailers
Retailing in itself is a huge topic and there are specialist courses for retailing as a subject. With the advent of international trade and availability of investments across the world, logistics and channels have become increasingly important. How else would you have Aldo, Tag Heuer, Fossil, Benetton, FCUK etc in India?
Probably the biggest game-changer in marketing as it stands today. Selling / marketing / communicating etc has been made easy to a larger section of the public because of internet.
Forward & Backward Flow
Analyze Customers’ Desired Service Output Levels Lot size Waiting time Spatial convenience Product variety Service backup ===== Establish Objectives and Constraints Identify Major Channel Alternatives Types of Intermediaries Number of Intermediaries Exclusive distribution Exclusive dealing Selective distribution Intensive distribution ===== Terms and Responsibilities of Channel Members Price policy Conditions of sale Distributors’ territorial rights Evaluate the Major Alternatives Economic Criteria =====
Selection : Identification of candidates(trade sources, reseller enquiries) Development of selection criteria (knowledge (market, product, customer); market coverage; quality and size of sales force} Motivation : Motivate channel members to (act as distributors; Allocate adequate commitment and ;resources to producer’s lines) Possible motivators ( financial rewards; Territorial exclusivity Development of strong work relationship Training : Product knowledge Company knowledge Evaluation : Identification of shortfalls in distributor skills and Competencies; lack of distributors motivation Important for (retention, training and motivation decisions) Criteria include (sales volume and value; Profitability, Level of stocks, Quality and position of display) Managing Conflict : Sources of channel conflict: differences in goals; Differences in desired product line Avoiding and resolving conflict: training in conflict handling, Developing a partnership approach, Channel ownership, coercion
McDonalds in India has a logistics chain which is highly effective. The trucks never go empty. On way up to ‘picking up produce’ like lettuce, they deliver the buns (which are centrally produced) thereby achieving maximum efficiency.