CBS MBA 401 workshop 2 @IBBM

464 views

Published on

CBS MBA 401 workshop 2 @IBBM

Published in: Business
  • Be the first to comment

  • Be the first to like this

CBS MBA 401 workshop 2 @IBBM

  1. 1. Unit 401 Marketing Management Sweta Sud Chifley Adjunct Faculty PNG  Ins(tute  of  Banking  and  Business  Management    
  2. 2. PNG  Ins(tute  of  Banking  and  Business  Management    
  3. 3. In this Unit.. •  First  workshop   Week  1   •  31st  Jan,  Friday   •  Read  the  Study  guide   Week  2   •  Read  the  book  –  Fee  Refund   •  2nd  workshop   Week  3   •  14th  Feb,  Friday   •  Do  the  assignment  –  17th  Feb   Week  4   •  Due  on  24th  Feb   •  3rd  workshop   Week  5   •  28  Feb,  Friday   •  Exam  on  6th  March  –  return  7th  March   Week  6   PNG  Ins(tute  of  Banking  and  Business  Management    
  4. 4. Today’s Agenda Unit-401, Workshop1, 31st Jan 2014 1   •  Market  Informa(on  and  Marke(ng  Strategy(Chap  4,7)   •  Morning  tea@10:00   2   •  Buyer  Behaviour  (Chap  5,6)   •  Lunch  @  12:30pm   3   •  Products,  Services,  Brands  (Chap8,9)   •  Evening  Tea@  2:30pm   •  Pricing  Strategies  (Chap10,11)   4   PNG  Ins(tute  of  Banking  and  Business  Management    
  5. 5. Principles  of  Marke7ng   Chapter  4   Managing  Marke7ng  Informa7on   Marke7ng  Informa7on   Customer  Insights   Market  Research   PNG  Ins(tute  of  Banking  and  Business  Management    
  6. 6. Conduc(ng  Marke(ng  Research   PNG  Ins(tute  of  Banking  and  Business  Management    
  7. 7. Discussion  Ques(ons   1.  What  cons(tutes  good  marke(ng  research?   2.  What  are  the  best  metrics  for  measuring  marke(ng   produc(vity?   3.  How  can  marketers  access  their  return  on   investment  of  marke(ng  expenditures?   PNG  Ins(tute  of  Banking  and  Business  Management     Copyright  ©  2012  Pearson  Educa(on,  Inc.  Publishing  as  Pren(ce  Hall   Slide  7  of  22  
  8. 8. Marke(ng  Research  System   Market  Research   Insight   PNG  Ins(tute  of  Banking  and  Business  Management    
  9. 9. Marke(ng  Research   The  systema*c  design,  collec*on,   analysis,  and  repor*ng  of  data  and   findings  relevant  to  a  specific  marke*ng   situa*on  facing  the  company.   PNG  Ins(tute  of  Banking  and  Business  Management    
  10. 10. PNG  Ins(tute  of  Banking  and  Business  Management    
  11. 11. PNG  Ins(tute  of  Banking  and  Business  Management    
  12. 12. Crea(ve  Research  Means   Check  out  rivals   Internet  sources   Rivals   Marke(ng  partners   Student  projects   PNG  Ins(tute  of  Banking  and  Business  Management    
  13. 13. Marke(ng  Research  Process   PNG  Ins(tute  of  Banking  and  Business  Management    
  14. 14. Step  1:  Define  the  Problem   Focused  inquiry   PNG  Ins(tute  of  Banking  and  Business  Management    
  15. 15. Step  2:  Develop  the  Research  Plan   Data  Sources   •  Secondary  data   •  Primary  data   Research  Approaches   •  Observa(on   •  Focus  groups   •  Surveys   •  Behavioral  data   •  Experiments   Sampling  plan   Contact  method   PNG  Ins(tute  of  Banking  and  Business  Management     Research  instrument   •  Ques(onnaires   •  Qualita(ve  measures   •  Technological  devices  
  16. 16. PNG  Ins(tute  of  Banking  and  Business  Management    
  17. 17. Step  3:  Collect  the  Informa(on   Online  surveys   Telephone  surveys   Interviews   In-­‐home  surveys   PNG  Ins(tute  of  Banking  and  Business  Management    
  18. 18. PNG  Ins(tute  of  Banking  and  Business  Management    
  19. 19. PNG  Ins(tute  of  Banking  and  Business  Management    
  20. 20. PNG  Ins(tute  of  Banking  and  Business  Management    
  21. 21. PNG  Ins(tute  of  Banking  and  Business  Management    
  22. 22. Step  4:  Analyze  the  Informa(on   PNG  Ins(tute  of  Banking  and  Business  Management    
  23. 23. Step  5:  Present  the  Findings   PNG  Ins(tute  of  Banking  and  Business  Management    
  24. 24. Step  6:  Make  the  Decision   Research   Decisions   PNG  Ins(tute  of  Banking  and  Business  Management    
  25. 25.                  Characteris7cs  of  Good  Marke7ng  Research   1.  Scien(fic  method   2.  Research  crea(vity   3.  Mul(ple  methods   4.  Interdependence  of  models  and  data   5.  Value  and  cost  of  informa(on   6.  Healthy  skep(cism   7.  Ethical  marke(ng   PNG  Ins(tute  of  Banking  and  Business  Management    
  26. 26. Former  marke(ng  research   execu(ve  for  General  Foods   concluded  that  Star  Wars  would   fail  at  the  box  office.  The  film   grossed  $4.3  billion  in  box  office   receipts.   PNG  Ins(tute  of  Banking  and  Business  Management    
  27. 27. Measuring  Marke(ng  Produc(vity   Marke(ng-­‐mix  modeling   Marke(ng  metrics   PNG  Ins(tute  of  Banking  and  Business  Management    
  28. 28. Marke(ng  Metrics   Quan(fy   Marke(ng   Performance   Compare   Interpret   PNG  Ins(tute  of  Banking  and  Business  Management    
  29. 29. Marke(ng  Metrics   External   •  •  •  •  •  •  •  •  •  Awareness   Market  share   Rela(ve  price   Number  of  complaints   Consumer  sa(sfac(on   Total  number  of  customers   Perceived  quality/esteem   Loyalty/reten(on   Rela(ve  perceived  quality   PNG  Ins(tute  of  Banking  and  Business  Management    
  30. 30. Marke(ng-­‐Mix  Modeling   Awareness   Expenditure   PNG  Ins(tute  of  Banking  and  Business  Management    
  31. 31. Marke(ng  Dashboards   PNG  Ins(tute  of  Banking  and  Business  Management    
  32. 32. Marke(ng  Dashboard  Example   PNG  Ins(tute  of  Banking  and  Business  Management    
  33. 33. {  Commercial  Break  }   PNG  Ins(tute  of  Banking  and  Business  Management     This  (me  is  for  real…  
  34. 34. Principles  of  Marke7ng   Chapter  2   OK,  We’re  back.       Again.   PNG  Ins(tute  of  Banking  and  Business  Management    
  35. 35. Principles  of  Marke7ng   Chapter  7   Marke7ng  Strategy   Segmenta7on   Targe7ng   Differen7a7on   Posi7oning   PNG  Ins(tute  of  Banking  and  Business  Management    
  36. 36. Iden(fying  Market   Segments  and  Targets   PNG  Ins(tute  of  Banking  and  Business  Management    
  37. 37. Discussion  Ques(ons   1.  What  are  the  different  levels  of  market   segmenta(on?   2.  In  what  ways  can  a  company  divide  a  market   into  segments?   3.  What  are  the  requirements  for  effec(ve   segmenta(on?   4.  How  should  business  markets  be  segmented?   5.  How  should  a  company  choose  the  most   aorac(ve  target  markets?   PNG  Ins(tute  of  Banking  and  Business  Management     Copyright  ©  2012  Pearson  Educa(on,  Inc.  Publishing  as  Pren(ce  Hall   Slide  37  of  22  
  38. 38. Target  Marke(ng  Requirements   1.  Iden(fy  and  profile  dis(nct  groups  of   buyers  (market  segmenta(on).   2.  Select  one  or  more  market  segments  to   enter  (market  targe(ng).   3.  For  each,  establish  and  communicate   benefits  of  offering  (market  posi(oning).   PNG  Ins(tute  of  Banking  and  Business  Management    
  39. 39. Bases  for  Segmen(ng  Consumers   Geographic   Demographic   Psychographic   PNG  Ins(tute  of  Banking  and  Business  Management     Behavioral  
  40. 40. Geographic  Segmenta(on   Geoclustering   PNG  Ins(tute  of  Banking  and  Business  Management    
  41. 41. Demographic  Segmenta(on   Age  and  Life-­‐cycle  Stage   Life  Stage   Gender   Income   Genera(on   Race  and  Culture   PNG  Ins(tute  of  Banking  and  Business  Management    
  42. 42. Age  and  Life-­‐Cycle  Stage   PNG  Ins(tute  of  Banking  and  Business  Management    
  43. 43. Life  Stage   PNG  Ins(tute  of  Banking  and  Business  Management    
  44. 44. Gender   Women:   Influence  80%  of  consumer  purchases   Make  75%  of  new  home  decisions   Purchase  60%  of  cars   PNG  Ins(tute  of  Banking  and  Business  Management    
  45. 45. Income   PNG  Ins(tute  of  Banking  and  Business  Management    
  46. 46. Genera(on   Gen  X  (1964-­‐1978)   Baby  Boomers  (1946-­‐1964)   Silent  Genera(on  (1925-­‐1945)   Millennials  (Gen  Y)  –  (1979-­‐1994)   -­‐78  Million  people   -­‐$187  annual  spending  power   PNG  Ins(tute  of  Banking  and  Business  Management    
  47. 47. U.S.  Genera(on  Cohorts   Cohort   Size   Defining  Features   Millennials     Raised  in  affluence,  tech  savvy,   78  m   perceived  immunity  from  marke(ng   Gen  X     Parents  relied  on  day  care,  accepts   50  m   diversity,  pragma(c  and  individualis(c   Baby  Boomers   Control  3/4th  of  the  wealth  in  the  U.S,   76  m   seek  fountain  of  youth  (hair  color,  hair   replacement),  home  exercise  equipment   (1979-­‐1994)   (1964-­‐1978)   (1946-­‐1964)   Silent  Genera(on   42  m   Lead  vibrant  lives,  spend  money  and   (1925-­‐1945)   (me  on  grandchildren.   PNG  Ins(tute  of  Banking  and  Business  Management    
  48. 48. Race  and  Culture   PNG  Ins(tute  of  Banking  and  Business  Management    
  49. 49. Mul(cultural  Market  Profile   PNG  Ins(tute  of  Banking  and  Business  Management    
  50. 50. Psychographic  Segmenta(on   •  Personality   traits   •  Lifestyle   •  Values   PNG  Ins(tute  of  Banking  and  Business  Management    
  51. 51. VALS  Segmenta(on   System   PNG  Ins(tute  of  Banking  and  Business  Management    
  52. 52. Behavioral  Segmenta(on   Usage  occasions   Ini(ator   User  status   User   Influencer   Usage  rate   Buyer-­‐readiness   Buyer   Decider   Decision  Roles   Needs  and  Benefits   PNG  Ins(tute  of  Banking  and  Business  Management     Loyalty  status   User  and  Usage  
  53. 53. Brand  Funnel   PNG  Ins(tute  of  Banking  and  Business  Management    
  54. 54. Consumer  Avtudes   Enthusias(c   Posi(ve   Indifferent   PNG  Ins(tute  of  Banking  and  Business  Management     Nega(ve   Hos(le  
  55. 55. Behavioral  Segmenta(on   PNG  Ins(tute  of  Banking  and  Business  Management    
  56. 56. Bases  for  Segmen(ng  B2B  Markets   Demographic   Industry,  company  size,  loca(on   Opera(ng  Variables   Technology,  user  status,  customer  capabili(es   Purchasing  Approach   Power  structure,  nature  of  exis(ng  rela(onship   Situa(onal  Factors   Urgency,  specific  applica(on,  size  of  order   Personal  Characteris(cs   Buyer-­‐seller  similarity,  loyalty,  risk  avtude   PNG  Ins(tute  of  Banking  and  Business  Management    
  57. 57. Market  Targe(ng   Effec(ve  Segmenta(on  Criteria   Measurable   Substan(al   Accessible   Differen(able   Ac(onable   PNG  Ins(tute  of  Banking  and  Business  Management    
  58. 58. Market  Targe(ng   Porter’s  Five  Force   Subs(tute   Products   Buyer   Power   Supplier   Power   New   Entrants   Rivals   PNG  Ins(tute  of  Banking  and  Business  Management    
  59. 59. Evalua(ng  and  Selec(ng  Segments   Mul(ple  segment   specializa(on   Full  market  coverage   Single-­‐segment   concentra(on   PNG  Ins(tute  of  Banking  and  Business  Management     Individual  marke(ng  
  60. 60. Levels  of  Segmenta(on   PNG  Ins(tute  of  Banking  and  Business  Management    
  61. 61. PNG  Ins(tute  of  Banking  and  Business  Management    
  62. 62. PNG  Ins(tute  of  Banking  and  Business  Management    
  63. 63. PNG  Ins(tute  of  Banking  and  Business  Management    
  64. 64. PNG  Ins(tute  of  Banking  and  Business  Management    
  65. 65. PNG  Ins(tute  of  Banking  and  Business  Management    
  66. 66. PNG  Ins(tute  of  Banking  and  Business  Management    
  67. 67. PNG  Ins(tute  of  Banking  and  Business  Management    
  68. 68. PNG  Ins(tute  of  Banking  and  Business  Management    
  69. 69. PNG  Ins(tute  of  Banking  and  Business  Management    
  70. 70. PNG  Ins(tute  of  Banking  and  Business  Management    
  71. 71. Principles  of  Marke7ng   Chapter  5   Consumer  Buyer  Behavior   Consumer  Behaviour   Buying  Decision   Buyer  Decision   Buyer  Decision  Process   PNG  Ins(tute  of  Banking  and  Business  Management    
  72. 72. Analyzing  Consumer   Markets   PNG  Ins(tute  of  Banking  and  Business  Management    
  73. 73. Discussion  Ques(ons   1.  How  do  consumer  characteris(cs  influence  buying   behavior?   2.  What  major  psychological  processes  influence  consumer   responses  to  the  marke(ng  program?   3.  How  do  consumers  make  purchasing  decisions?   4.  In  what  ways  do  consumers  stray  from  a  delibera(ve,   ra(onal  decision  process?   PNG  Ins(tute  of  Banking  and  Business  Management     Copyright  ©  2012  Pearson  Educa(on,  Inc.  Publishing  as  Pren(ce  Hall   Slide  73  of  22  
  74. 74. Buyer’s  Characteris(cs   The  study  of  how  individuals,  groups,   and  organiza(ons  select,  buy,  use,  and   dispose  of  goods,  services,  ideas,  or   experiences  to  sa(sfy  their  needs  or   wants.   PNG  Ins(tute  of  Banking  and  Business  Management    
  75. 75. Buyer’s  Characteris(cs   Personal  Factors   Cultural  Factors   Psychological   Factors   Social  Factors   PNG  Ins(tute  of  Banking  and  Business  Management    
  76. 76. Cultural  Factors   Social  Class   Culture   Subculture   PNG  Ins(tute  of  Banking  and  Business  Management    
  77. 77. Average  U.S.  Outlays  IN  2007   38.5%   4.8%   15.5%   11.4%   4.2%   PNG  Ins(tute  of  Banking  and  Business  Management     8.5%   3.3%   6.1%   2.1%  
  78. 78. Social  Factors   Reference  Groups   Family   Role  and  Status   PNG  Ins(tute  of  Banking  and  Business  Management    
  79. 79. Personal  Factors   Personality   Age   Life  Cycle  Stage   PNG  Ins(tute  of  Banking  and  Business  Management    
  80. 80. Personal  Factors   Occupa(on   Values   Lifestyle   Economic  situa(on   PNG  Ins(tute  of  Banking  and  Business  Management    
  81. 81. Psychological  Factors   PNG  Ins(tute  of  Banking  and  Business  Management    
  82. 82. Mo(va(on   Freud   Maslow   Herzberg   PNG  Ins(tute  of  Banking  and  Business  Management    
  83. 83. Maslow’s  Hierarchy  of  Needs   PNG  Ins(tute  of  Banking  and  Business  Management    
  84. 84. Percep(on   Selec(ve  Aoen(on   Selec(ve  Reten(on   Subliminal  Percep(on   Selec(ve  Distor(on   PNG  Ins(tute  of  Banking  and  Business  Management    
  85. 85. Learning   Driver   Cues   Discrimina(on   PNG  Ins(tute  of  Banking  and  Business  Management    
  86. 86. Emo(ons   PNG  Ins(tute  of  Banking  and  Business  Management    
  87. 87. Memory   The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. Memory  Processes   The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. Mental  Maps   Encoding   Retreival   Associa(on   Associa(on   Associa(on   Associa(on   Associa(on   Brand  Associa(ons   PNG  Ins(tute  of  Banking  and  Business  Management     Brand  
  88. 88. The  Buying  Decision  Process   PNG  Ins(tute  of  Banking  and  Business  Management    
  89. 89. Buying  Decision  Process   PNG  Ins(tute  of  Banking  and  Business  Management    
  90. 90. Problem  Recogni(on   “I’m   Hungry”   S(mulus   •  Internal   •  External   PNG  Ins(tute  of  Banking  and  Business  Management    
  91. 91. Informa(on  Search   Commercial   Personal  of  Banking  and  Business  Management     PNG  Ins(tute   Public   Experien(al  
  92. 92. Successive  Sets  Involved  in   Consumer  Decision  Making   PNG  Ins(tute  of  Banking  and  Business  Management    
  93. 93. Evalua(on  of  Alterna(ves   Beliefs   Avtudes   PNG  Ins(tute  of  Banking  and  Business  Management    
  94. 94. Steps  between  Evalua(on  of   Alterna(ves  and  Purchase  Decision   PNG  Ins(tute  of  Banking  and  Business  Management    
  95. 95. Purchase  Decision   Noncompensatory  Models   Choice  Heuris(cs:   •  Conjec(ve     •  Lexicographic   •  Elimina(on-­‐by-­‐aspect   A   Brand   Dealer   Purchase   subdecisions   Quan(ty   Timing   Payment  method   PNG  Ins(tute  of  Banking  and  Business  Management    
  96. 96. Postpurchase  Behavior   Postpurchase  Sa7sfac7on   Delighted   Sa(sfied   Dissa(sfied   Loyal   Stay  or  Go   Defect   PNG  Ins(tute  of  Banking  and  Business  Management     Postpurchase  Ac(ons  
  97. 97. Modera(ng  Effects   Low-­‐involvement   Variety  seeking   PNG  Ins(tute  of  Banking  and  Business  Management    
  98. 98. Behavioral  Decision  Theory   Decision  Framing   Decision  Heuris(cs   PNG  Ins(tute  of  Banking  and  Business  Management    
  99. 99. {  Commercial  Break  }   PNG  Ins(tute  of  Banking  and  Business  Management     This  (me  is  for  real…  
  100. 100. Principles  of  Marke7ng   Chapter  2   OK,  We’re  back.       Again.   PNG  Ins(tute  of  Banking  and  Business  Management    
  101. 101. Principles  of  Marke7ng   Chapter  6   Business  Buyer  Behavior     Business  Markets   Business  Buyer  Behavior   E-­‐Procurement   Govt.  and  Ins7tu7onal  Buying   PNG  Ins(tute  of  Banking  and  Business  Management    
  102. 102. Analyzing  Business   Markets   PNG  Ins(tute  of  Banking  and  Business  Management    
  103. 103. Discussion  Ques(ons   1.  What  is  the  business  market,  and  how  does  it  differ   from  the  consumer  market?   2.  What  buying  situa(ons  do  organiza(onal  buyers  face?   3.  Who  par(cipates  in  the  B2B  buying  process?   4.  How  do  business  buyers  make  their  decisions?   5.  How  can  companies  build  strong  rela(onships  with   business  customers?   6.  How  do  ins(tu(onal  buyers  and  government  agencies   do  their  buying?   PNG  Ins(tute  of  Banking  and  Business  Management     Copyright  ©  2012  Pearson  Educa(on,  Inc.  Publishing  as  Pren(ce  Hall   Slide  103  of  22  
  104. 104. Organiza(onal  Buying   The  decision-­‐making  process  by  which   formal  organiza(ons  establish  the  need   for  purchased  products  and  services  and   iden(fy,  evaluate,  and  choose  among   alterna(ve  brands  and  suppliers.     -­‐-­‐  F.  Webster  Jr  and  Y.  Wind   PNG  Ins(tute  of  Banking  and  Business  Management     Copyright  ©  2012  Pearson  Educa(on,  Inc.  Publishing  as  Pren(ce  Hall   Slide  104  of  27  
  105. 105. Business  Markets   Transporta(on   &  Distribu(on   Construc(on   Agriculture   Forestry   Manufacturing   Communica(ons   Banking  &  Finance   PNG  Ins(tute  of  Banking  and  Business  Management    
  106. 106. Business  Markets   Similari(es  to  the  Consumer  Market   •  Understanding  deep  customer  needs   •  Iden(fy  areas  for  growth   •  Improving  value  management  techniques   •  Calcula(ng  beoer  marke(ng  metrics   •  Compe(ng  and  growing  in  global  markets   •  Countering  product  commodi(za(on   •  Gain  support  for  the  marke(ng  concept   PNG  Ins(tute  of  Banking  and  Business  Management    
  107. 107. Business  Markets   Differences  to  the  Consumer  Market   Geographically   Concentrated   Fewer,  Larger   Buyers   Professional   Buyers   Mul(ple   Sales  Calls   PNG  Ins(tute  of  Banking  and  Business  Management     Personal   Rela(onships  
  108. 108. Business  Markets   Differences  to  the  Consumer  Market   Derived  Demand   Inelas(c  Demand   Demand   •  Derived   •  Inelas(c   •  Fluctua(ng   Fluctua(ng  Demand   PNG  Ins(tute  of  Banking  and  Business  Management    
  109. 109. Buying  Situa(ons   New  Task   Straight  Rebuy   Modified  Rebuy   PNG  Ins(tute  of  Banking  and  Business  Management    
  110. 110. Systems  Buying  and  Selling   yer   Bu actor    Contr Prime -­‐(er   d econ tors   S ntrac Co PNG  Ins(tute  of  Banking  and  Business  Management    
  111. 111. Business  Buying  Par(cipants   Ini(ator/ Users   Buyers   Influencer   Gatekeeper   PNG  Ins(tute  of  Banking  and  Business  Management     Decider   Approver  
  112. 112. Buying  Center  Influences   Par7cipants  differ  by:   •  •  •  •  •  PNG  Ins(tute  of  Banking  and  Business  Management     Interest   Authority   Status   Persuasiveness   Decision  criteria  
  113. 113. Targe(ng  Firms  and  Buying  Centers   Who  to  target?   PNG  Ins(tute  of  Banking  and  Business  Management    
  114. 114. Purchasing/Procurement  Process   Diverse  supplier  base   Benefits  vs.  Costs   PNG  Ins(tute  of  Banking  and  Business  Management    
  115. 115. Stages  in  the  Buying  Process   Problem   Recogni(on   Descrip(on  and   Characteris(cs   Supplier   Search   Proposal   Solicita(ons   Performance   Review   Order   Specifica(on   PNG  Ins(tute  of  Banking  and  Business  Management     Supplier   Selec(on  
  116. 116. Stages  in  the  Buying  Process   Problem   Recogni(on   Internal  s7muli   •  New  product  being  developed   •  Broken  machine   •  Low  stock  level     External  s7muli   •  Trade  show  visit   •  Adver(sement   PNG  Ins(tute  of  Banking  and  Business  Management    
  117. 117. Stages  in  the  Buying  Process   Descrip(on  and   Characteris(cs   Technical  specifica7ons   •  Reliability   •  Durability   •  Price   Product  value  analysis   PNG  Ins(tute  of  Banking  and  Business  Management    
  118. 118. Stages  in  the  Buying  Process   Supplier   Search   Trade  directories   Trade  adver(sements   Trade  shows   E-­‐Procurement   Lead  genera(on   PNG  Ins(tute  of  Banking  and  Business  Management    
  119. 119. Stages  in  the  Buying  Process   Proposal   Solicita(ons   Formal  presenta(on   Wrioen   PNG  Ins(tute  of  Banking  and  Business  Management    
  120. 120. Stages  in  the  Buying  Process   Supplier   Selec(on   Supplier-­‐evalua(on  model   Number  of  suppliers   PNG  Ins(tute  of  Banking  and  Business  Management    
  121. 121. Stages  in  the  Buying  Process   Order   Specifica(on   Technical  specifica(ons   Quan(ty   Delivery  (me   Return  policy   Warran(es   PNG  Ins(tute  of  Banking  and  Business  Management     Stockless   purchase   plan  
  122. 122. Stages  in  the  Buying  Process   Performance   Review   End  user  evalua(ons   Weighted-­‐score   method   7 PNG  Ins(tute  of  Banking  and  Business  Management     9 4
  123. 123. Buygrid  Framework   Table  7.1   Buyclasses   Modified   Rebuy   Straight   Rebuy   1.  Problem  Recogni(on   Yes   Maybe   No   2.  General  need  descrip(on   Buyphases   New  Task   Yes   Maybe   No   3.  Product  specifica(on   Yes   Yes   Yes   4.  Supplier  search   Yes   Maybe   No   5.  Proposal  solicita(on   Yes   Maybe   No   6.  Supplier  Selec(on   Yes   Maybe   No   7.  Order-­‐rou(ne  specifica(on   Yes   Maybe   No   8.  Performance  review   Yes   Yes   Yes   PNG  Ins(tute  of  Banking  and  Business  Management    
  124. 124. Managing  B2B  Rela(onships   Online  social  media   One-­‐to-­‐one  Marke(ng   PNG  Ins(tute  of  Banking  and  Business  Management    
  125. 125. Managing  B2B  Rela(onships   Ver(cal  Coordina(on   Rela(onship  Factors   Availability  of  alterna(ves   Importance  of  supply   Complexity  of  supply   Supply  market  dynamism   PNG  Ins(tute  of  Banking  and  Business  Management    
  126. 126. Buyer-­‐Seller  Rela(onship  Categories   Coopera(ve  systems   Collabora(ve   Customer  is  king   Contractual  transac(on   PNG  Ins(tute  of  Banking  and  Business  Management     Mutually  adap(ve  
  127. 127. Ins(tu(onal  and  Governments  Markets   Prisons   Government   agencies   Schools   Hospitals   PNG  Ins(tute  of  Banking  and  Business  Management    
  128. 128. Principles  of  Marke7ng   Chapter    8   Products,  Services,  Brands   Product   Services  Marke7ng   Branding  Strategy   PNG  Ins(tute  of  Banking  and  Business  Management    
  129. 129. PNG  Ins(tute  of  Banking  and  Business  Management    
  130. 130. PNG  Ins(tute  of  Banking  and  Business  Management    
  131. 131. PNG  Ins(tute  of  Banking  and  Business  Management    
  132. 132. PNG  Ins(tute  of  Banking  and  Business  Management    
  133. 133. PNG  Ins(tute  of  Banking  and  Business  Management    
  134. 134. THREE  LEVELS  OF  PRODUCT  DECISION   1.  Individual  Product  Decision   Product   Aoributes   Product   Support   Services   PNG  Ins(tute  of  Banking  and  Business  Management     Branding   Packaging   Labelling  
  135. 135. 2.  Product  Line  Decision   Product   Aoributes   Product   Support   Services   PNG  Ins(tute  of  Banking  and  Business  Management     Branding   Packaging   Labelling  
  136. 136. 3.  Product  Mix  Decision   Product   Aoributes   Product   Support   Services   PNG  Ins(tute  of  Banking  and  Business  Management     Branding   Packaging   Labelling  
  137. 137. PNG  Ins(tute  of  Banking  and  Business  Management    
  138. 138. PNG  Ins(tute  of  Banking  and  Business  Management    
  139. 139. PNG  Ins(tute  of  Banking  and  Business  Management    
  140. 140. PNG  Ins(tute  of  Banking  and  Business  Management    
  141. 141. PNG  Ins(tute  of  Banking  and  Business  Management    
  142. 142. PNG  Ins(tute  of  Banking  and  Business  Management    
  143. 143. Crea(ng  Brand  Equity   PNG  Ins(tute  of  Banking  and  Business  Management    
  144. 144. Brand   “A  name,  term,  sign,  symbol,  or   design,  or  a  combina(on  of  them,   intended  to  iden(fy  the  goods  or   services  of  one  seller  or  group  of  sellers   and  to  differen(ate  them  from  those  of   compe(tors.”   PNG  Ins(tute  of  Banking  and  Business  Management     Copyright  ©  2012  Pearson  Educa(on,  Inc.  Publishing  as  Pren(ce  Hall   Slide  144  of  27  
  145. 145. Strategic  Brand  Management   Plan   Measure/   Interpret   Iden(fy   Grow   PNG  Ins(tute  of  Banking  and  Business  Management    
  146. 146. Role  of  Brands   Consumer  Benefits   Brands:   •  Iden(fy  source/maker   •  Simplifies  decision  making   •  Reduces  risk   PNG  Ins(tute  of  Banking  and  Business  Management    
  147. 147. Role  of  Brands   Marketer  Benefits   Brands:   •  Simplify  product  handling   •  Protect  unique  features   •  Create  loyalty   •  Establish  barriers  to  entry     PNG  Ins(tute  of  Banking  and  Business  Management    
  148. 148. Scope  of  Branding   Crea(ng  difference  between  products   Brand   PNG  Ins(tute  of  Banking  and  Business  Management    
  149. 149. Brand  Equity   The  added  value  endowed  on  products   and  services  because  of  the  brand.     PNG  Ins(tute  of  Banking  and  Business  Management     Copyright  ©  2012  Pearson  Educa(on,  Inc.  Publishing  as  Pren(ce  Hall   Slide  149  of  27  
  150. 150. Customer-­‐based  Brand  Equity   Differences  in     consumer  response   Consumers’   brand  knowledge   Percep(ons,  preferences,   and  behaviors   PNG  Ins(tute  of  Banking  and  Business  Management    
  151. 151. Brand  Promise   What  the  brand  must  be   and  do  for  consumers.   PNG  Ins(tute  of  Banking  and  Business  Management    
  152. 152. Branding  Strategy   Develop  new  brand  elements   Apply  exis(ng  brand  elements   Combine  new  and  exis(ng  elements   The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. PNG  Ins(tute  of  Banking  and  Business  Management    
  153. 153. Branding  Strategy   Parent  Brand   (Master  or  Family  Brand)     Line  Extension   Tide   -­‐  Fruit  on  the  Bottom   -­‐  Fruit  Blends   PNG  Ins(tute  of  Banking  and  Business  Management     Category  Extension   Honda   -­‐  Automobiles   -­‐  Lawn  Mowers  
  154. 154. Branding  Decisions   Individual  Brand  Names   •  •  •  •  Bisquick   Gold  Medal   Whea(es   Yoplait   Company  Brand   GE,  Heinz,  Campbell  Soup   Sub-­‐brand  name   Kellogg’s  Rice  Krispies,  Frosted  Flakes…   PNG  Ins(tute  of  Banking  and  Business  Management    
  155. 155. Brand  Porzolio   A  brand  porzolio  is  the  set  of  all  brands   and  brand  lines  a  par(cular  firm  offers   for  sale  in  a  par(cular  category  or   market  segment.   PNG  Ins(tute  of  Banking  and  Business  Management     Copyright  ©  2012  Pearson  Educa(on,  Inc.  Publishing  as  Pren(ce  Hall   Slide  155  of  27  
  156. 156. Brand  Porzolio  -­‐  Sony   Computer   VAIO     -­‐notebook   -­‐desktop     Digital  Home     Disc  Burner   Televisions   Theatre   Cameras   Cyber-­‐shot   Televisions   Alpha  SLR   Home   theatre   systems       HandyCam     Printers       Digital   Loca(on  Free   picture     mylo     frames       So{ware   Photo   services     Portable   Electronics   Walkman   Video  MP3     Rolly     Blu-­‐ray  Disc   Reader   Digital  Book         DVD  players     Home  audio   components   Sony  Cell   Phone     GPS   PNG  Ins(tute  of  Banking  and  Business  Management     Sony   Pictures   Movies     -­‐Theatre   -­‐DVD   -­‐Blue-­‐ray     Television   -­‐Comedy   -­‐Drama   -­‐Day(me   -­‐Cartoons     Music   Games   PlaySta7on   -­‐PS3   -­‐PS2   -­‐Portable  
  157. 157. Brand  Roles   High-­‐end  Pres(ge   Cash  Cows   Low-­‐end  Entry  Level   PNG  Ins(tute  of  Banking  and  Business  Management     Flankers  
  158. 158. Brand  Extensions   Improve  the  odds  of  new-­‐product  success   PNG  Ins(tute  of  Banking  and  Business  Management    
  159. 159. Building  Strong  Brands   Brand   Posi(oning   • Aoributes   • Benefits   • Beliefs  and   Values   Brand  Name   Selec(on     Brand   Sponsorship   PNG  Ins(tute  of  Banking  and  Business  Management     Brand   Development  
  160. 160. {  Commercial  Break  }   PNG  Ins(tute  of  Banking  and  Business  Management     This  (me  is  for  real…  
  161. 161. Principles  of  Marke7ng   Chapter  2   OK,  We’re  back.       Again.   PNG  Ins(tute  of  Banking  and  Business  Management    
  162. 162. Principles  of  Marke7ng   Chapter  9   New  Product  Development   NPD  Strategy   Product  Life  Cycle  Strategies   PNG  Ins(tute  of  Banking  and  Business  Management    
  163. 163. Google.com   PNG  Ins(tute  of  Banking  and  Business  Management    
  164. 164. Product  Life  Cycle  Challenges   1.  New  Product  Development   2.  Product  Life  Cycle  Strategies   PNG  Ins(tute  of  Banking  and  Business  Management    
  165. 165. PNG  Ins(tute  of  Banking  and  Business  Management    
  166. 166. PNG  Ins(tute  of  Banking  and  Business  Management    
  167. 167. PNG  Ins(tute  of  Banking  and  Business  Management    
  168. 168. PNG  Ins(tute  of  Banking  and  Business  Management    
  169. 169. PNG  Ins(tute  of  Banking  and  Business  Management    
  170. 170. PNG  Ins(tute  of  Banking  and  Business  Management    
  171. 171. PNG  Ins(tute  of  Banking  and  Business  Management    
  172. 172. PNG  Ins(tute  of  Banking  and  Business  Management    
  173. 173. PNG  Ins(tute  of  Banking  and  Business  Management    
  174. 174. PNG  Ins(tute  of  Banking  and  Business  Management    
  175. 175. PNG  Ins(tute  of  Banking  and  Business  Management    
  176. 176. {  Commercial  Break  }   PNG  Ins(tute  of  Banking  and  Business  Management     This  (me  is  for  real…  
  177. 177. Principles  of  Marke7ng   Chapter  2   OK,  We’re  back.       Again.   PNG  Ins(tute  of  Banking  and  Business  Management    
  178. 178. PNG  Ins(tute  of  Banking  and  Business  Management    
  179. 179. PNG  Ins(tute  of  Banking  and  Business  Management    
  180. 180. PNG  Ins(tute  of  Banking  and  Business  Management    
  181. 181. PNG  Ins(tute  of  Banking  and  Business  Management    
  182. 182. PNG  Ins(tute  of  Banking  and  Business  Management    
  183. 183. PNG  Ins(tute  of  Banking  and  Business  Management    
  184. 184. Principles  of  Marke7ng   Chapter  9,10   Pricing  Strategies   Pricing  Strategies   Price  Changes   PNG  Ins(tute  of  Banking  and  Business  Management    
  185. 185. Developing  Pricing   Strategies  and   Programs   PNG  Ins(tute  of  Banking  and  Business  Management    
  186. 186. Discussion  Ques(ons   1.  How  do  consumers  process  and  evaluate  prices?   2.  How  should  a  company  set  prices  ini(ally  for   products  or  services?   3.  How  should  a  company  adapt  prices  to  meet   varying  circumstances  and  opportuni(es?   4.  When  should  a  company  ini(ate  a  price  change?   5.  How  should  a  company  respond  to  a   compe(tor’s  price  change?   PNG  Ins(tute  of  Banking  and  Business  Management     Copyright  ©  2012  Pearson  Educa(on,  Inc.  Publishing  as  Pren(ce  Hall   Slide  186  of  22  
  187. 187. Marke(ng  Mix   Cost   Product   Price   Cost   Place   Promo(on   Revenue   Producer   PNG  Ins(tute  of  Banking  and  Business  Management     Cost  
  188. 188. Changing  Price  Environment   Buyers   I’ll  pay  $235.00   Instant  Price  Comparisons   Get  Products  Free   Name  Your  Own  Price   PNG  Ins(tute  of  Banking  and  Business  Management    
  189. 189. Changing  Price  Environment   Sellers   $29.99   $19.99   $24.99   Selec7ve  Pricing   Nego7ate  Prices   PNG  Ins(tute  of  Banking  and  Business  Management     Monitor  Customers  
  190. 190. How  Companies  Price   Product-­‐line  Managers   (w/guidance)   Small  Business  Owner   Pricing  Department   PNG  Ins(tute  of  Banking  and  Business  Management    
  191. 191. Consumer  Psychology  and  Pricing   Price-­‐Quality  Inferences   Reference  Prices   99   $1. Price  Endings   PNG  Ins(tute  of  Banking  and  Business  Management    
  192. 192. A  Black  T-­‐Shirt   Armani  -­‐  $275   Gap  -­‐  $14.90   H&M  -­‐  $7.90   PNG  Ins(tute  of  Banking  and  Business  Management    
  193. 193. Sevng  the  Price   6   5   Select  Final  Price   Price  Method   4   Compe(tor  Analysis   3   Es(mate  Costs   2   Determine  Demand   1   Pricing  Objec(ve   PNG  Ins(tute  of  Banking  and  Business  Management    
  194. 194. Selec(ng  the  Pricing  Objec(ve   Survival   Maximum  Current  Profit   Maximum  Market  Share   Maximum  Market  Skimming   Product-­‐Quality  Leadership   Other  Objec(ves   PNG  Ins(tute  of  Banking  and  Business  Management    
  195. 195. Determining  Demand   Price  sensi7vity   Es7ma7ng  demand  curves   Price  Elas7city  of  Demand   PNG  Ins(tute  of  Banking  and  Business  Management    
  196. 196. Inelas(c  and  Elas(c  Demand   PNG  Ins(tute  of  Banking  and  Business  Management    
  197. 197. Es(ma(ng  Costs   Demand   Price  Ceiling   Price   Profit   Costs   PNG  Ins(tute  of  Banking  and  Business  Management     Price  Floor  
  198. 198. Es(ma(ng  Costs   Types  of  costs   Fixed  Costs   (overhead)   Variable  Costs   PNG  Ins(tute  of  Banking  and  Business  Management     Total  Costs  
  199. 199. Costs  at  Varying  Levels  of  Produc(on   PNG  Ins(tute  of  Banking  and  Business  Management    
  200. 200. Es(ma(ng  Costs   Accumulated  Produc7on   Experience  Curve   (Learning  Curve)   PNG  Ins(tute  of  Banking  and  Business  Management    
  201. 201. Es(ma(ng  Costs   Target  Cos7ng   Market  research   PNG  Ins(tute  of  Banking  and  Business  Management     Design  engineers  
  202. 202. The  Experience  Curve   PNG  Ins(tute  of  Banking  and  Business  Management    
  203. 203. Analyzing  Compe(tors’  Offers   Price   Costs   Reac(on   “A”   PNG  Ins(tute  of  Banking  and  Business  Management     “B”   Worth  to  Customer  
  204. 204. Selec(ng  a  Pricing  Method   Pricing  Methods   •  Markup     •  Target-­‐return   •  Perceived-­‐Value   •  Value   •  Going-­‐rate   •  Auc(on-­‐type   PNG  Ins(tute  of  Banking  and  Business  Management    
  205. 205. High  Price     (No  possible     demand  at  this  price)   Three  Cs   Model  for   Price  Sevng   Ceiling  price     Customers’   assessment  of  unique   product  features     Orien(ng  point     Compe(tors’  prices   and  prices  of   subs(tutes     Costs     Floor  Price   Low  Price     (No  possible     profit  at  this  price)   PNG  Ins(tute  of  Banking  and  Business  Management    
  206. 206. Markup  Pricing   Variable  cost  per  toaster  $10   Fixed  costs  $300,000     Expected  unit  sales    50,000   PNG  Ins(tute  of  Banking  and  Business  Management    
  207. 207. Target-­‐Return  Pricing   PNG  Ins(tute  of  Banking  and  Business  Management    
  208. 208. Target-­‐Return  Pricing   PNG  Ins(tute  of  Banking  and  Business  Management    
  209. 209. Perceived-­‐Value  Pricing   Customer’s  perceived-­‐value   •  •  •  •  Performance  $$$   Warranty  $   Customer  support  $   Reputa(on  $$   PNG  Ins(tute  of  Banking  and  Business  Management    
  210. 210. Value  Pricing   EDLP   THOUSANDS  OF     LOW  PRICES     EVERY  DAY   Level  of   Quality   throughout  the  store   P1   C1   P2   C2   High   Pricing   Low   PNG  Ins(tute  of  Banking  and  Business  Management    
  211. 211. Going-­‐Rate  Pricing   Commodi(es   Follow  the  Leader   PNG  Ins(tute  of  Banking  and  Business  Management    
  212. 212. Auc(on  Pricing   English  auc7on     (ascending  bids)   Dutch  auc7on     (descending  bids)   Sealed-­‐bid  auc7on   PNG  Ins(tute  of  Banking  and  Business  Management    
  213. 213. Selec(ng  the  Final  Price   Impact  on  others   Brand   Quality   Pricing  Policies   Gain-­‐and-­‐risk-­‐sharing   PNG  Ins(tute  of  Banking  and  Business  Management    
  214. 214. Adap(ng  the  Price   Geographic  Pricing   Price  Discounts   and  Allowances   Differen7ated  Pricing   Promo7onal  Pricing   PNG  Ins(tute  of  Banking  and  Business  Management    
  215. 215. Dealing  with  Price  Changes   Raising  Prices   Cugng  Prices   PNG  Ins(tute  of  Banking  and  Business  Management     Compe7tor  Moves  
  216. 216. {  Commercial  Break  }   PNG  Ins(tute  of  Banking  and  Business  Management     This  (me  is  for  real…  
  217. 217. Principles  of  Marke7ng   Chapter  2   OK,  We’re  back.       Again.   PNG  Ins(tute  of  Banking  and  Business  Management    
  218. 218. PNG  Ins(tute  of  Banking  and  Business  Management    
  219. 219. PNG  Ins(tute  of  Banking  and  Business  Management    
  220. 220. PNG  Ins(tute  of  Banking  and  Business  Management    
  221. 221. PNG  Ins(tute  of  Banking  and  Business  Management    
  222. 222. PNG  Ins(tute  of  Banking  and  Business  Management    
  223. 223. PNG  Ins(tute  of  Banking  and  Business  Management    
  224. 224. PNG  Ins(tute  of  Banking  and  Business  Management    
  225. 225. PNG  Ins(tute  of  Banking  and  Business  Management    
  226. 226. PNG  Ins(tute  of  Banking  and  Business  Management    
  227. 227. PNG  Ins(tute  of  Banking  and  Business  Management    
  228. 228. PNG  Ins(tute  of  Banking  and  Business  Management    
  229. 229. PNG  Ins(tute  of  Banking  and  Business  Management    
  230. 230. PNG  Ins(tute  of  Banking  and  Business  Management    
  231. 231. {  Lets  call  it  a  day}   PNG  Ins(tute  of  Banking  and  Business  Management     This  (me  is  for  real…  
  232. 232. Next  week’s  Case  Study Team  1:  Page  A16-­‐  1.1  to  1.5   Team  2:  Page  A23-­‐2.1  to2.3  -­‐  Westgate   Team  3:  Page  A27-­‐3.1-­‐  Kingsford   Team  4:Page  A27-­‐3.2  –  Pepsi  Co   Team  5:Page  A27-­‐3.3  –  Hair  Zone           PNG  Ins(tute  of  Banking  and  Business  Management        

×