1. The document discusses various marketing management topics including pricing strategies, demand curves, inventory management, store merchandizing, and segmentation, targeting, and positioning. 2. Key points include how discounting prices can attract customers and stimulate sales while improving cash flow and margins, and how inventory management techniques like JIT, FIFO and LIFO work. 3. Store merchandizing elements like layout, fixtures, product placement and shelf arrangement are covered, along with segmentation strategies such as undifferentiated, differentiated, concentrated and micro segmentation.

1. Sales & Marketing
Management
Prepare & Presented
By
Pyi Kyaw Lynn
5th Jan 2020 1

2. 5th Jan 2020 2
The effects of discounting prices
Attract
Meet
Accelerate
Reduce
Reinvest
Customers and stimulate sales activity,
increasing margins.
Competitive prices & cash flow will be
improved.
Accelerate the movement of slow-moving,
dead stock, and damaged inventory.
Reduce inventory levels to increase inventory
turnover ratios.
Of cash gained from clearing out stock into
inventory with high turnover rate

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0
5
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25
30
35
40
0 5 10 15 20 25 30 35
Price $
Quantity (000)
Pricing & Demand curve for music CD

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0
5
10
15
20
25
0 100 200 300 400 500 600 700 800
Demand curve
Pricing & Demand curve for Cruise line ticket
Price ,000 $
Quantity

5.  Management of the flow of
goods from manufacturers to
warehouses and from these
facilities to point of sales.
 The objective is to track & control
the inventory level correctly.
 It includes order processing,
maintaining the storage of stock
(warehousing), controlling the
amount of product for sale (JIT,
FIFO & LIFO), and order fulfillment.
 Without it, there is a risk of
 out of stocks
 over stocks
 mis-shipments
 mis-picks of wrong items
5th Jan 2020 5
Inventory management

6.  JIT: A technique of ordering
inventory on an as-needed basis
instead of ordering too much
and risking dead stock.
 FIFO: The older inventory is sold
first & a great way to keep
inventory fresh. E.g. perishable
commodities with limited shelf
life.
 LIFO: The newer inventory is
sold first & prevents inventory
from going bad. E.g. non-
perishable products.
5th Jan 2020 6
Inventory management

7.  SKU is a product code (number)
assigned to a product to identify
the price, product options and
manufacturer of the product.
 E.g. 100 pieces of t-shirt, blue
color, medium size have the same
SKU.
 Benefits of SKU
 Inventory tracking
 Identifying missing items
 Adjusting quality control
 Analyzing sales levels & trends
 Increasing productivity as real-time
data is available
 Improving inventory availability based
on demand.
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Inventory management: stock keeping unit (SKU)

8. Turn-over ratio
 Turnover rate= Cost of
goods sold/Average
inventory
 Sales Income
statement
 Inventory Balance
sheet
 Average inventory =
(Beginning inventory +
Ending inventory)/2
Calculation
 Sales : $ 100,000
 Beginning inventory: $ 40,000
 Ending inventory: $ 60,000
 Average inventory = [40,000 +
60,000]/2 = 50,000
 Turnover ratio= $100,000/$50,000=
2 times/year
 It’d take 6 months to sell and
replace all the inventories or
complete 1 turn.
 Low turnover: weak sales or excess
inventory (overstock) or little
marketing or product defects.
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Inventory turnover ratio

9. Compare
turnover ratio
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Inventory turnover ratio
[Benchmark]
Industry average
 Manufacturing
5~10 times
 Retailing
15~20 times

10. Store Merchandizing [Retailing]
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11. Merchandizing
 The means in which products
(merchandise) are displayed and
presented to the customer.
 Activities include acquiring
particular goods and making them
available at the right place, time,
price, quantity .
 For a single store, the owner or
stuff perform the purchasing
function.
 In the case of chain store, the
procurement function may be
centralized or decentralized
geographically (by
locations/regions) depending on
the organization.
5th Jan 2020 11

12. Centralized & Decentralized [sourcing]
Centralized buying
 Procurement from HQ
 Strict control & compliance
 Proximity to top level
management
 Volume discounts from bulk
buying
 Consistency
 Cons: Inflexibility, time
delay, less motivation from
stuffs
Decentralized buying
 Procurement done
independently
 Adaptable to store
conditions, quick order
processing
 Motivation from autonomy
 Cons: inconsistent planning,
loss of volume discounts
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13. Merchandizer need to know
 Breadth of merchandize
[narrow or wide]
 Depth of merchandize
[deep or shallow]
 Quality of merchandize
[high, medium, low]
 Store (private label)
brands or national
brands
 Pricing policies
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14. Merchandizing management
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Categorize
items based
on needs &
wants of
target
audience
E.g. food &
non food
Analyzing Planning
Future sale
of
merchandize
Acquisition Handling Controlling
Procurement
from
distributors &
manufacturers
Availability
of
merchandize
at right time,
right price at
right
condition
Budget
spending
on
procurement

15. Types of merchandise
Staple (regular products):
 Milks, Breads, Chocolates, etc.
Assortment:
 Furniture, Utensils, Apparel, etc.
Fashions:
 Products with cyclical sales due
to changing lifestyles
Seasonal:
 Products with seasonal sales.
Fad:
 High sales for a short period of
time & disappear.
5th Jan 2020 15

16. Cross merchandizing
 Retail practice of displaying
products (complementary)
from different categories
together to generate
additional sales (add-on
sales) for the stores.
 The concept is products
need to have a logical link or
connection. E.g. Flashlights
& batteries, Beer & snacks,
etc.
5th Jan 2020 16

17. 1. Key elements of store merchandizing
2. Store layout
3. Store fixtures
4. Specialty & promotional product placement
5. Arranging products on shelves to promote
sales
6. Consumer perception of value
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Store merchandizing

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Store layout
Grid layout Spine layout
Free-flow layout
The layout is dictated by the shape & size of the store premises.

19.  Easy to arrange & locate
merchandize
 Easily accessible for
customers & cost efficient as
less space is wasted
 Many counters & aisles are
wide enough for shoppers
and their carts.
 East of cleaning and used in
grocery stores
5th Jan 2020 19
Grid layout

20.  Based on single main aisle
running from the front to
the back of the store with
side roads.
 Mainly used by medium-
size stores. E.g. fashion
stores, toy stores,
stationery stores
5th Jan 2020 20
Spine layout

21. Free flow layout
 Merchandise are grouped in
free-flowing patterns on the
sales floor
 Used in sport wears stores.
E.g. Adidas
 Customers browse freely
and increase impulse buying
 Cons: waste of floor space,
difficult for cleaning
5th Jan 2020 21

22.  Fixtures means
any furniture used
to display
products.
 E.g. Mannequins,
display racks,
cases, stall walls,
signage holders,
etc.
5th Jan 2020 22
3. Store fixtures & shelves

23.  A specialty product is that
some consumers actively
seek to buy because of
unique features and functions
or loyalty to a specific brand.
 E.g. watches, perfumes, etc.
 Promotional products are give
away items for current or
potential customers to
promote a brand with a logo
and distributed at little or no
cost.
 E.g. key chains, umbrellas,
mugs, ball pens, etc.
5th Jan 2020 23
4. Specialty and promotional product placement
 Stimulate add-
on sales
 Promote
impulse buying
 Increase profit
margin

24. 5. Arranging products on shelves to promote sales
 Shelf management is the practice of
managing existing shelf space to
stock merchandize more efficiently
 It is important to catch the eye of the
customer from a distance (eye
impact), to improve product
presentation, and enhance the
shopping experience.
 E.g. Display gondola
 5-6 feet high for high priced
products
 3-4 feet high for medium priced
products
 < 3 feet high for low priced
products
5th Jan 2020 24

25. 5th Jan 2020 25
6. Consumer perceptions of value:
influenced by
Claims
Ratings
Reputation
Referrals
Claims made in advertising media
Testimonials & rating published in industry
magazines and reports.
Track record or reputation of the product in
the market.
Recommendations from friends and families
already used the products.

26. Elements to consider when doing market analysis
A methodology for conducting internal analysis of
business from a marketing perspective
Different types of media
Media planning
Business styles & pricing philosophies
Pricing policy
Discounting price & store merchandizing
5th Jan 2020 26
Summary of Marketing Management

27. 27
LEGAL
ECONO
MIC
SOCIAL
ENVIRON
MENT
CONSUMERS
TECHNO
LOGY
POLITI
CAL
 PESTLE analysis is a
framework of macro
environmental factors
(uncontrollable)
applied in the
environmental
scanning and these
external factors
influence organization.
 Strategic tool for
understanding market
situation and direction
for operations.
External environment: PESTLE
5th Jan 2020

28.  One of the most difficult
factors to monitor & predict.
 Government policies can
change rapidly and effects
on business operations
 Factors:
 Political parties
 Government organizations
 Foreign trade policies
 FDI
 Fiscal & Monetary policies
 Tax policies
 Boycotts & Demonstrations
5th Jan 2020 28
POLITICAL

29.  The factor takes into
account the economic
situations of home
country and
counterpart countries.
 Factors:
 Inflation rate
 Interest rate
 Exchange rate
 Unemployment rate
 GDP & GNP
5th Jan 2020 29
ECONOMIC

30.  Social factors includes the
cultures of consumers
including buying habits,
needs & wants, brand
preferences, beliefs,
values & customs of
consumers who directly
influence the sales.
 Factors:
 Ethnicity
 Generation trends
 Demographic (age,
gender, race, education,
income)
5th Jan 2020 30
SOCIAL

31.  Technology is directly
related to the innovation
of products & services.
 Computer technology
revolutionized product
design, quality control,
inventory management,
analysis of customer’s
information.
 Factors:
 Information technology
 Smart phones technology
 E-commerce
 Digital marketing
5th Jan 2020 31
TECHNOLOGICAL Advances

32.  Legal comprises all the
legislative & regulatory
framework in an economy.
 Organizations need to
comply with any regarding
fair competition, consumer
protection & industrial rules
and regulations.
 Factors:
 Labor law
 Tax law
 Copyright
 Health & safety law
 Industry specific regulations
5th Jan 2020 32
LEGAL

33.  Environmental is concerned
with geographical locations
& environmental
regulations.
 E.g. Acquatic & Agri-based
business is mainly related
and dependent on these
factors.
 Factors:
 Pollutions (air, soil, water)
 Green house gas emission
 Climate change
 Ecological regulations
5th Jan 2020 33
ENVIRONMENTAL

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Identifying bases &
determining the main
characteristics or
profile of every
segment
Segmentation Targeting
Selecting & Evaluating
the commercial value
& potential of one or
more of the segments
Positioning
Developing detailed
plan for positioning in
the segments.
Developing the
marketing mix to take
advantage of the
segments.
Segmentation, Targeting, Positioning [STP]

35. Undifferentiated segmentation
or Mass marketing
 Every one is considered as a
potential user for the
products which provides
same benefits & are easily
substitutable to everyone and
no need to differentiate
groups.
 E.g. Milk, Gasoline, Ice, Sugar,
Salts, etc.
5th Jan 2020 35
Segmentation strategies

36. Differentiated segmentation
 Different products are offered
for multiple segments to
increase market share.
 If one segments if performing
poorly, the firm’s profitability can
be offset by revenue from other
segments.
 E.g. Shoes, Clothes, Food
products, Personal grooming
products (shampoo, cosmetics,
etc.).
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Segmentation strategies

37. Concentrated segmentation
[niche]
 Providing a product &
focusing all its energies to
a single market to fit the
market’s needs.
 Most start-ups benefit
form using the
segmentation to apply
their limited resources
more efficiently.
 E.g. luxury segments (Rolls
Royce, Rolex)
5th Jan 2020 37
Segmentation strategies

38. Micro segmentation [one 2
one marketing]
 A firm offer custom-made
products to suit an
individual customer’s
needs or wants on a one
to one basic, providing
one to one marketing.
 These products are
typically more expensive
then ready-made
offerings.
5th Jan 2020 38
Segmentation strategies

39. 39
Organizing into customers into groups based on where they live
(Upper /Lower parts of a country , Asia-pacific region, etc. ).
E.g. grocery chain stores
Customers are grouped according to their age, gender, income
level, education, etc. E.g. Kellogs for kids, Nitendo, etc.
Customers are grouped based on their lifestyles, values, social
class , self-images (brand conscious), etc.) E.g. different
lifestyles & values between college students & general labor.
Based on buying behavior/pattern. E.g. orange juice for a
breakfast drink, gifts for Christmas, New Year, Ceremonies, etc.
Based in loyal customers who feel so strong that the firm can
meet their relevant needs best compared to other competitor
firms.
E.g. Air line loyal customers are offered even sold-out flights.
Types of segments
Geographic
Demo
graphic
Psycho
graphic
(personality)
Behavioral
Loyalty

40.  Selecting the segment with
most profitable/attractive
for the firm.
 Market attractiveness:
 Price sensitivity of the
segment
 Potential loyalty
 Potential growth
5th Jan 2020 40
Targeting

41.  A process of defining the
marketing mix variables so
that target customers have a
clear understanding or
perception (value, benefits)
of the product offered
compared with other
products.
 If buyers view a product with
fair price & reasonable
quality, they may prefer to
pay an increased price for
higher quality.
5th Jan 2020 41
Positioning

42.  Product positioning map
can be applied based on
 Modern/traditional,
 Inferior/superior,
 High price/low price,
 Strong taste/light
taste
 Necessity/luxury
5th Jan 2020 42
Positioning

43. 5th Jan 2020 43
Position map [soft drink]
Fun
Strong taste (sweet)
Light taste
Healthy
Bottled water
Coca-Cola, Pepsi
Iced-tea
Green-tea
Orange juice
Pocari sweat
Royal-D
Carbonated drinks
Lime juice

44.  Markets are not stagnant and so are
the consumer’s tastes.
 Competitors always react to market
shifts and attempting to maintain the
same position in the long run is risky
for a firm.
 Reasons are as follows:
 Change in customer’s needs & wants
 Change in organization’s objectives
 Environmental change
 New competitors appear
 New technology develop
5th Jan 2020 44
Repositioning
Notes: A well established position is easier to defend than a new one and a product
is highly vulnerable while shifting position.

45. 5th Jan 2020 45
Thank You !!