8/7/2019 answer MS - 06_2011

1/31

MS-06

Management ProgrammeASSIGNMENT

FIRST SEMESTER

2011

MS- 06 -MARKETING FOR MANAGERS

School of Management Studies

INDIRA GANDHI NATIONAL OPEN UNIVERSITY

MAIDAN GARHI, NEW DELHI 110 068

ASSIGNMENT

Course Code : MS - 06

Course Title : Marketing for Managers

Assignment Code : MS-06/SEM - I /2011Coverage : All Blocks

Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with.

a) Discuss the distinguishing characteristics of services which make them different from tangible goods. What are the implications of theses characteristics in market

ervices?

) What do you understand from Segmentation, Targeting and Positioning (STP) strategies?

a) How does Marketing Research aid Marketing Managers in decision making . Discuss with suitable examples

) What is the type of packaging you would adopt in the following cases and why:

) Sea Food Exports

i) Premium Basmati Rice

ii) Unisex Perfume

a) Discuss the main objectives of Sales Promotion. Identify some sales promotions methods directed at consumers, which can be used by a soap manufacturer

) What is a brand? What distinct advantages do companies get from branding? Illustrate.

a) Why does the marketing mix change as the product moves through its life cycle? How would you expect the mix to change for a novel home vacuum cleaning kit

hrough the product life cycle?

) What is cyber marketing? What are the prospects and problems faced by the buyer in using this method? Discuss the limitations of cyber marketing.

a) Discuss the distinguishing characteristics of services which make them different from tangible goods. What are themplications of theses characteristics in marketing of services?

A.PRODUCT MARKETINGroduct marketing deals with the first of the "4P"'s of MARKETING , which are PRODUCT , PRICING , PLACE , and PROMOTIONS.Product

marketing, deals with more outbound MARKETING tasks. For example, product management deals with the nuts and bolts of PRODUCT

DEVELOPMENT within a firm, whereas product marketing deals with marketing the PRODUCT to PROSPECTS CUSTOMERS , and othersXAMPLE : LUX TOILET SOAP.

Role of product marketingroduct marketing in a business addresses five important strategic questions:

What products will be offered (i.e., the breadth and depth of the PRODUCT LINE ?Who will be the target customers (i.e., the boundaries of the market segments to be served)?How will the products reach those (i.e., the distribution channel)?How much should the products be priced at?

How to introduce the products (i.e., the way to promote the products)?

HE MOST APPROPRIATE / SELECT A COMBINATION FOR YOUR SITUATIONAY, LUX TOILET SOAP.

8/7/2019 answer MS - 06_2011

2/31

your product has a '' unique advantage/benefits.

your product offers the most competitive ''value for money''.

your product is one of the affordable in the market for its range.

your product positioning in the niche market.

your product distribution is matchless in the market, available at arms length.

your product merchandising is the most attractive at the retail level.

tc etc.---------------------------------------------------------------------

ERVICE MARKETING

ERVICE IS ANY ACT OR PERFORMANCE THAT ONE PARTY CAN OFFER TO ANOTHER THAT IS ESSENTIALLY INTANGIBLE AND DOES NOTRESULT IN ANY OWNERSHIPervices marketing is MARKETING based on relationship and value.

Marketing a service-base business is different from marketing a goods-base business.

here are several major differences, including:he buyer purchases are intangiblehe service may be based on the reputation of a single persont's more difficult to compare the quality of similar services

he buyer cannot return the servicehe major difference in the services marketing versus regular marketing is that instead of the traditional "4 P's," Product, Price, Place,

romotion, there are three additional "P's" consisting of People, Physical evidence, and Process. Service marketing also includes theervicescape referring to but not limited to the aesthetic appearance of the business from the outside, the inside, and the general appearf the employees themselves.

XAMPLE: EDUCATION

ervice quality is not one-dimensional; it encompasses numerous factors that are important to customer satisfaction. Satisfaction basicalelated to expectations and perceived delivery on these dimensions and as shown by the equation given below.he quality of service delivery results in customer satisfaction & their retention as it reinforces the perception that the value of the serviceeceived is grater than the price paid for it.

Quality is defined as the ability of the service provider to satisfy customer needs. Customer perception , service quality & profitability arenterdependent variable.ven in the case of products, quality is difficult to define because it is highly dependent upon customer perception. The task is made more

omplicated in the case of service because of the intengible nature of service & the variation in services offered to different customers.here are several reasons why customers must be given quality service. Most important of them are

. Industry has become so competitive that customers now have variety of alternatives. If the customers are lost, it can be extremely difo win back the individual.

. Most customers do not complain when they experience problems, these customers simply opt out & take their business elsewhere.

What is CUSTOMER Satisfaction?CUSTOMER Satisfaction = function of {CUSTOMER -Expectation and Perceived delivery}A person is said to be dissatisfied when the perceived delivery is lower than expectation; he/she is satisfied when they match; delighted whe delivery exceeds expectation and astonished when the delivery far exceeds expectation. The following equations explain theseelationships.erceived Delivery < Expectation --> Dissatisfactionerceived Delivery = Expectation --> Satisfactionerceived Delivery > Expectation --> Delight

erceived Delivery >> Expectation --> AstonishmentDimensions of Service Quality:here are various aspects that a customer expects from different services.

. Reliability: This refers to the ability of the company to perform the promised service dependably and accurately. Reliability is probably

ingle most important dimension of quality. Customers expect that companies will do what they say and they will do when they say they wo it.

. Tangibles: This refers to the appearance of the physical facilities, equipment, personnel, and communication materials. As services arentangible, the tangibles give an impression to the customers about the quality of service they can expect from a firm. A bank in a shabbyuilding will make the customer wonder whether their money will be safe in such a bank.

. Responsiveness: This refers to the willingness of the employees to help customers and provide prompt service. When you go to a bankminimum that you expect is that the employees would attend to you rather than chit-chat amongst themselves.

8/7/2019 answer MS - 06_2011

3/31

. Assurance: This factor is linked to several minor factors such as competence, courtesy, credibility and security. Competence depends o

he service provider's possession of the required skills and knowledge to perform the service. The politeness, respect, consideration, andriendliness of the service providers can be bundled into the term courtesy. Credibility refers to the perceived trustworthiness, believabilitnd honesty of the service provider. Security refers to the fact that the service should be free from danger, risk, and doubt. In sum, thessurance factor refers to the knowledge and courtesy of employees and their ability to inspire trust and confidence.

. Empathy: Empathy refers to the caring, individualized attention the firm provides to its customers. It includes access, communication a

nderstanding. Access refers to the approachability and ease with which the customer can contact the firm. Communication refers to keephe customer informed in the language they can understand and listening to them. Understanding has to do with the efforts made by the

ervice provider to know customers and their needs.he Service Quality Gaps:

Gaps between perceived & expected levels of service quality delivery result in the failure of the service provider.hese are the 5 gaps.The First gap does not know what customers expect. reaThe second gap is between what the customer expects and what the management understands as the customers' expectation from theompany.The third gap is with reference to the management's understanding of the customer expectations and the service quality standards set bhe management.The fourth gap is between the quality specifications and actual service delivery.The fifth gap is between what is communicated to customers and what is actually delivered.t is possible to measure the gaps and take corrective actions to fill them to the extent possible. The most difficult gap to fill is the one

etween customer expectations and the perceived service delivery. The expectation of the customers keeps rising with every goodxperience. When a customer visits the service organization, he/she expects a better service than what was experienced in the lastncounter.

====================================

he service marketing challenges areto generate re-sales

to create a waiting listto create a positive word of mouth advertisings a lot of new business is generated from satisfied customers.

WHICH MEANS THAT THERE IS NO/LITTLE GAP BETWEENERVICE EXPECTATIONS AND SERVICE DELIVERY.

====================================HOW DO YOU MATCH SERVICE EXPECTATION WITH DELIVERIESN PRODUCT MARKETING , WE RELY ON 4 P'sproduct attributes/benefitspricing strategyplace [ right / easy place to buy]promotions [ selected weighted mix]-------------------------------------------------------------

N CASE OF THE SERVICE, THE PRODUCT ISntangible, the greater the intangibility the more complexhe promise.perishable /heterogeneous, the production and consumption are often simulaneous.N SERVICE MARKETING, WE RELY ON 7 P'sproduct service [ features/benefits]place [ flexibility]

price [ flexi]promotions [ selected weighted mix]people [ ability,competent, right attitude ]physical evidenceprocess

====================================N SERVICE BUSINESS,SERVICE MARKETING PROMOTES ANDERVICE MANAGEMENT GENERATES RESULTS, through

service deliveryservice qualitycustomer satisfaction/ relation managementservice recoveryservice management audit.

=======================================ERVICE MANAGEMENT PROVIDES SATISFACTORY SERVICEby designing the customer oriented business processcost effective servicecontinuous improvements through research/developmentmproving people's abilities/competences.

====================================ERVICE MARKETING MEETS SERVICE MANAGEMENTby managing customer behavior

8/7/2019 answer MS - 06_2011

4/31

by conducting customer researchby managing customer expectations

by reverse-engineering the product/service portfolio.by determining what service the market needs/ we can offer.what do we need to do to fill the gap.

=======================================HE INTEGRITY OF PRODUCT-SERVICE DELIVERY

when the service marketing is intergrated with service management

hat is ,what you promise [either explicitly or implicitily] andwhat you deliver

N THIS CASE , ''INTEGRATED'' = ''INTEGRITY''here is no gap

WHICH MEANS CUSTOMER SATISFACTION,WHICH IT TURN MEANS = SUCCESSFUL SERVICE MARKETING.###############################

b) What do you understand from Segmentation, Targeting and Positioning (STP) strategies?

Market Segmentation

A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar producteeds.

Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or haimilar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given

marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprised of a given product or servold at a given price, distributed in a certain way and promoted in a certain way.

roadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Smallegments are often termed niche markets or specialty markets. However, all segments fall into either consumer or industrial markets.

Although it has similar objectives and it overlaps with consumer markets in many ways, the process of Industrial market segmentation isuite different.he overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand thehaviour; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenueshus improved.mproved segmentation can lead to significantly improved marketing effectiveness. With the right segmentation, the right lists can beurchased, advertising results can be improved and customer satisfaction can be increased

he purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" urchase your offering. If done properly this will help to insure the highest return for your marketing/sales expenditures. Depending on

whether you are selling your offering to individual consumers or a business, there are definite differences in what you will consider whenefining market segments.

Category of Needhe first thing you can establish is a category of need that your offering satisfies. The following classifications may help.

or businesses:Strategic - your offering is in some way important to the enterprise mission, objectives and operational oversight. For example, a serv

hat helped evaluate capital investment opportunities would fall into this domain of influence. The purchase decision for this category offfering will be made by the prospect's top level executive management.

Operations - your offering affects the general operating policies and procedures. Examples might be, an employee insurance plan or aorporate wide communications system. This purchase decision will be made by the prospect's top level operations management.

Functional - your offering deals with a specific function within the enterprise such as data processing, accounting, human resources, pmaintenance, engineering design, manufacturing, inventory control, etc. This is the most likely domain for a product or service, but you mecognize that the other domains may also get involved if the purchase of the product or service becomes a high profile decision. Thisurchase decision will be made by the prospect's functional management.

or the individual consumer:Social Esteem or Pleasure - your offering satisfies a purely emotional need in the consumer. Examples are a mink coat or a diamond r

here are some products that are on the boundary between this category and the Functional category such as a Rolex watch (a Timex woatisfy the functional requirement and probably keep time just as well).

Functional - your offering meets a functional requirement of the consumer such as a broom, breakfast cereal or lawnmower.

egmentation of Needs FOR BUSINESS ORGANIZATIONS

hen you should establish what the need is and who is most likely to experience that need. Your segmentation will be determined by a metween the benefits offered by your offering and the need of the prospect. Some "need" categories for segmentation include:

Reduction in expensesrospects might be businesses that are downsizing (right sizing), businesses that have products in the mature stage of their life cycle orndividuals with credit rating problems.

mproved cash flowrospects might be businesses that have traditionally low profit margins, businesses that have traditionally high inventory costs or individhat live in expensive urban areas.

8/7/2019 answer MS - 06_2011

5/31

mproved productivityrospects might be businesses that have traditionally low profit margins, businesses that have recently experienced depressed earnings o

ndividuals with large families.mproved manufacturing qualityrospects might be businesses with complex, multi-discipline manufacturing processes.mproved service deliveryrospects might be service businesses in highly competitive markets, product businesses requiring considerable post-sale support orndividuals in remote or rural areas.

mproved employee working conditions/benefitsrospects might be businesses where potential employees are in short supply.

mprovement in market share/competitive positionrospects might be new entrants to a competitive market.

Need for educationrospects might be businesses or individuals looking for books on business planning, or seminars on Total Quality Management.nvolvement with social trendsrospects might be businesses concerned with environmental protection, employee security, etc. or individuals who believe in say 'no' torugs, anti-crime, etc.pecific - relating to product/service characteristicsrospects might be businesses or individuals interested in safety, security, economy, comfort, speed, quality, durability, etc.

actors that segment prospectsHaving determined the more general segmentation characteristics you can proceed to a more detailed analysis of the market. There are

terally thousands of ways to segment a market, but the following are some of the more typical segmentation categories.

or businesses:ndustry by SIC code

his is especially beneficial for vertical market offerings.ize - revenues, # employees, # locations

n general if your offering is highly sophisticated, requires significant resources or provides greater value based on volume, then the targehould be the larger enterprises.ob position/responsibilityxamples of offerings might be planning software for managers or cleaning agents for maintenance managers.

Climatexamples of offerings might be dehumidifiers in areas near the ocean or snow plows in northern areas.ime related factorsome services in this category are vacation related industries in summer and tax planners in the spring.anguage

An example of a language specific service is a Spanish TV channel.tatus in the industryou might want to target businesses that are the technology leader or revenue leader or employee satisfaction leader, etc.

Accessibility

o minimize promotion and sales expense you may want to target urban rather than rural or local rather than national prospects.uture potentialA good example is how Apple Computer supplied products to schools at all levels to condition students graduating into the marketplace.Ability to make a quick purchase decisionargeting individual purchasers versus business committees can significantly reduce marketing expense and increase the probability of auick close.

Access (or lack of access) to competitive offerings

Cable TV business's significant investment in their service delivery system has allowed a near monopoly for some time. IBM's serviceeputation insured minimal competition during the mainframe days.

Need for customizationOfferings such as police cars, busses for municipalities and specialized computer systems fall into this category.roduct or service application to a business functionxamples are data processing, accounting, human resources and plant maintenance.

============================================or Individual Consumers:hysical Size

Offerings might be big men's clothing, golf clubs for shorter players, etc.Creation of or response to a fadxamples are hula hoops, Jurassic Park T-shirts, pet rock, physical fitness, etc.

Geographic locationMarketers take advantage of location by sell ing suntan lotion in Hawaii, fur coats in Alaska, etc.

ime related factorsou may be able to target vacationers in summer, impulse buyers during the holidays or commuters at 7AM.

Demographics/culture/religionthnic products would fall into this category.

Genderroduct examples are scarves for women, ties for men, etc.

Ageroduct examples are toys for children, jewelry for women, etc.ocial status

8/7/2019 answer MS - 06_2011

6/31

his could include country club memberships, philanthropic contributions, etc.ducation

roduct and service examples are encyclopedias, scientific calculators, learning to read tools and financial counseling.Avocationhis could include products for hunting, fishing, golf, art work, knitting, etc.pecial Interestsou could target cat lovers, science fiction readers, jazz music collectors, etc.

Accessibility

ecause the individual is more difficult to reach you may want to segment by urban versus rural, train commuters, people who read Walltreet Journal, etc.

Access (or lack of access) to competitive offeringsDue to high investment capital requirements or timing of market entry you may be able to capture a significant market share in a specificeographical area. Examples might be a trash service, emergency medical support, etc.

Need for specific informationased on features or content of your offering you can target a market segment. A product might be books on how to start a business or aervice might be seminars on how to quit smoking.

Need for customizationroduct/service examples are home decoration, fashion wear, personal portraits, etc.

Need for quality, durability, etc.roduct examples are mountain climbing gear, carpenter's tools, etc.

Degree of a product/service ingredientegmentation based on prospect preferences is common. An example is dark chocolate for some tastes, light chocolate for others.

========================================================================While market segmentation can be done in many ways, depending on how you want to slice up the pie, three of the most common types

Geographic segmentation based on location such as home addresses;Demographic segmentation based on measurable statistics, such as age or income;

Psychographic segmentation based on lifestyle preferences, such as being urban dwellers or pet lovers.f youre interested in target marketing, the first step is to do the research that will help you define and zero in on your target market.

================================================================he requirements for successful segmentation are:omogeneity within the segmenteterogeneity between segments

segments are measurable and identifiablesegments are accessible and actionablesegment is large enough to be profitable

-----------------------------------------------------------------------hese criteria can be summarized :

D Differential: it must respond differently to a different marketing mixA Actionable: you must have a product for this segment to be accuredM Measurable: size and purchasing power can be measuredA Accessible: it must be possible to reach it efficiently

S Substantial: the segment has to be large and profitable enough=================================================================he variables used for segmentation include:.Geographic variables

egion of the world or country, East, West, South, North, Central, coastal, hilly, etc.ountry size/country size : Metropolitian Cities, small cities, towns.

Density of Area Urban, Semi-urban, Rural.limate Hot, Cold, Humid, Rainy.

.Demographic variables

agegender Male and Femalesexual orientationfamily size

amily life cycleducation Primary, High School, Secondary, College, Universities.

ncomeccupationducation

.socioeconomic status

eligionationality/race

anguage

.Psychographic variables

8/7/2019 answer MS - 06_2011

7/31

ersonalityfe style

aluettitude

.Behavioural variables

enefit sought

roduct usage raterand loyalty

roduct end useeadiness-to-buy stageecision making unitrofitability

When numerous variables are combined to give an in-depth understanding of a segment, this is referred to as depth segmentation.When enough information is combined to create a clear picture of a typical member of a segment, this is referred to as a buyer profile. Whe profile is limited to demographic variables it is called a demographic profile (typically shortened to "a demographic"). A statisticalechnique commonly used in determining a profile is cluster analysis.

=================================================================HE BY-PRODUCT OF MARKET SEGMENTATION IS THE

DENTIFICATION OF THE PARTICULAR SEGMENT, TARGET MARKETWHICH ONE WANTS TO EXPLOIT.-----------------------------------------------------------------------------

NANO '' SMALL CAR''

N UNIVERSAL TERM, the nano is a small car.

N INDIAN TERM,nano is specifically designed for the indian market.t is designed for the indian markett is designed ''as a value for money''t is designed with india made parts.

HE MARKET SEGMENTATION VARIABLES CONSIDERED

OR THE BUSINESSES.

reduction in capital expenses.reduction in operation expenses.

reduction in maintenance expenses.

mprovement in the cash flow.mprovement in the working conditions for field employees.mprovement in the productivity of field employees.

mprovement in the business market coverage

mprovement in the business results.---------------------------------------------------OR THE INDIVIDUALS

.Demographic variablesagegender Male and Femalesexual orientation

family sizefamily life cycleEducation Primary, High School, Secondary, College, Universities.incomeoccupation

education-------------------------------------------------. socioeconomic statusreligionREGIONAL FOCUSlanguage

----------------------------------------. Geographic variablesregion of the country,NORTH / SOUTH/ EAST/ WEST/CENTRAL etc.

8/7/2019 answer MS - 06_2011

8/31

metro/ rural : Metropolitan Cities, small cities, towns.Density of Area Urban, Semi-urban, Rural.

climate Hot, Cold, Humid, Rainy.--------------------------------.Psychographic variablespersonalitylife stylevalue

attitude-------------------------

.Behavioural variablesbenefit soughtproduct usage ratebrand loyaltyproduct end usereadiness-to-buy stagedecision making unitprofitabilityincome status

=======================================###############################################

HE BY-PRODUCT OF MARKET SEGMENTATION IS THEDENTIFICATION OF THE PARTICULAR SEGMENT, WHICH ONE

WANTS TO EXPLOIT.

HENCE TO AIM AT THE NICHE MARKET,ONE MUST HAVE TO SEGMENT THE MARKET FIRST,

T IS A CRITICAL STEP.-----------------------------------------------------------------------------

A niche market also known as a target market is a focused, targetable portion (subset) of a market sector.y definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by

mainstream providers. A niche market may be thought of as a narrowly defined group of potential customers.A distinct niche market usually evolves out of a market niche, where potential demand is not met by any supply.uch ventures are profitable because of disinterest on the part of large businesses and/or lack of awareness on the part of other smallompanies. The key to capitalizing on a niche market is to find or develop a market niche that has customers who are accessible, that isrowing fast enough, and that is not owned by one established vendor already.

Marketing in and for niche marketsNiche marketing is the process of finding and serving profitable market segments and designing custom-made products or services for thor big companies those market segments are often too small in order to serve them profitably as they often lack economies of scale. Nic

marketers are often reliant on the loyalty business model to maintain a profitable volume of sales. this also means theres a gap in the ma==================================================================T IS NOT DANGEROUS TO PICK / MARKET MANAGE A NICHE MARKET.UT THE RISK IS HIGH.HE RISK COULD INVOLVEwrong segmentsbad market planning

poor cost.benefit analysispoor profiling of the market segmentneffective selection of the market mixpoor targeting effortstc.

HENCE CAREFUL SEGMENTATION IS CRITICAL.

o Qualify As A NICHE Market Target, A Group Of Customers ShouldMeet Important Conditions.

or any group regarded as a potential NICHE market target, the following questions should be asked:

Will the group satisfy our profit objectives?

s it apt to grow?

How stable is the market?

Can we accurately measure the size and purchasing power of the target?

8/7/2019 answer MS - 06_2011

9/31

Will we be able to reach the target with our promotion?

Do we have the resources to serve the proposed targeted market?

Are the homogeneous customers within the possible segment influential? Will their purchases cause other groups to buy the products?

Can we identify the customers so that we can know where and how to appeal to them?

How strong is our competition in this target market? Are there any competitive opportunities for us?

Many market segments will not meet the above requirements. For instance, a certain group may not have promising growth potential, yemay offer stable and profitable business forces.

HIS WILL HELP TO REDUCE THE RISK FACTORS.=================================================RODUCT POSITIONING IN THE SELECTED MARKET SEGMENT.

IRST STEP -- DO THE RESEARCH

he first step in the positioning process is to do the research. The good news is that product marketing managers already have done moshe research as part of their job. To successfully position a product, you need a thorough understanding of customer problems, channelssues, and how competitors are positioned. The answers to these and other questions become part of a rationale document for yourositioning strategy:

What is your target market (size, type of company, etc.)?

Who is the decision maker you want to target your message to, and what keeps that decision maker awake at night?

What pressing problem does your product solve for your prospective customer?

How is your prospect solving that problem today?

What specific benefit does your product deliver?

Why is your product better than the current solution and competitive alternatives?

Who are your key competitors; why and when do you win or lose to them?

How do your competitors position themselves in their marketing communications, including ads, direct mail campaigns, brochures, and w

ites?

What makes your product unique in a way that is relevant to your prospect?

Are there any problems, unique challenges, or special needs of your channel?

What do prospects and customers like and dislike about your product?

Do prospects and customers share your belief of why your product is better than the competitions?

Are there any characteristics of a sales situation that indicate whether or not your product or service will be selected?

Now incorporate the answers to these questions in a rationale document. By doing so, all product knowledge is captured in one place ande used as a reference guide when marketing and sales need it. The rationale document should be three to five pages and should include

nformation:roduct CategoryDefine the products key features, advantages, and benefits. A matrix can help clarify these items.

roduct Line FitDescribe how the product fits into the overall company product strategy.

ituation AnalysisDescribe the conditions that justify the release of this product, including why the company believes it can be successf

Market AnalysisProfile target market(s) by size, revenue, market segment, operational type, or other relevant categories.

Audience AnalysisProfile key prospects within the target market(s), including job titles and functions (demographics) and their concernsttitudes, and behaviors (psychographics).

DistributionDescribe how the product will be distributed and the impact of distribution on product communications.

Competitive PositioningDescribe the key competitors, their targets, and how they position their products.

8/7/2019 answer MS - 06_2011

10/31

ositioning Statement and RationaleEvaluate the product positioning statement against the following four criteria: Is it important, uniquelievable, and usable?

upport PointsDescribe how the three support points make the positioning statement unique, believable, and important. If multiple marr audiences require unique support points, explain why.

A rationale document transfers important product knowledge to those who need to know, but who dont have the time or expertise to findnformation themselves. Its especially useful when creating a product message strategy that includes a positioning statement (number 8 he rationale document) and three or four support points (number 9).

A MESSAGE STRATEGY IS A TIME SAVER

our positioning statement becomes the central idea and theme underlying all marketing activities. It is a short, compelling, declarativeentence that states just one benefit and addresses the target market's number one problem. It must be unique, believable, and importar the target market will ignore the message. Once you have found the right message, your product marketing managers wont need to bnvolved in every planning session for every marketing campaign.upporting benefit statements tell the story in more detail. They also provide a structure for product demonstrations. While the positionintatement articulates a high-level benefit, the claims made in the supporting statements should be readily demonstrable. That is, in just ateps, you should be able to show how the product delivers concrete benefits.

Make sure your message strategy has enough detail to support the creation of a standard product demonstration. This helps your productmarketing managers to create a demo quickly. And theres another benefitthe product detail in the support points answers a lot questioefore marketing and sales ask them.

A message strategy also facilitates delivery of the same message across all marketing media, including web sites, brochures, advertisemend presentations to investors, industry analysts, and prospects. A standard outline format makes it easy for writers and other

ommunicators to see the message strategy's benefit hierarchy, and to take full advantage of it.A Rationale Document Captures All the Product Knowledgen addition to documenting product knowledge, the positioning process improves marketing without intense, time-consuming input fromroduct marketing. A message strategy is like the recipe for how to talk about your product. Follow the recipe rather than ask product

marketing, and your marketers can create a compelling, accurate story about your product.his does not mean that your product marketing managers no longer need to be involved in the planning and creation of marketing mate

hey should provide input when appropriate. Its just that the process wont take up nearly as much of their time. Thats because marketets most of its infusion of product knowledge by referencing the rationale document and message strategy. And that means your produc

marketing managers have successfully cloned themselves; theyll have more time for other competing priorities.===================================================HERE ARE TWO EXAMPLES

---------------------------------------------------------------..NANOSEGMENT----- middle class.TARGET----upper income brack [ 400,000 ----1mill rupees]POSITIONING -----affordable / CONVENIENT.---------------------------------------------------------------------.AIRTEL-DTH

SEGMENT-middle classTARGET - FAMILIES with median income.POSITIONING ----entertainment for all situations.-----------------------------------------------------------------

2222222222222222222222222222222222222222222222222222

##############################################2 a) How does Marketing Research aid Marketing Managers in decision making . Discuss with suitable examples

HE OBJECTIVE OF THE MARKETING RESEARCH ISO PROVIDE THE MARKETING MANAGEMENT, A RANGE

OF VITAL INFORMATION ON

usiness Intelligenceusiness Performance Managementusiness rules

Data Miningredictive analytics

urchase order requestnterprise Architecturenformation technology management

Knowledge BaseOnline analytical processingTC ETC

====================================================he major EXPECTATIONS of MARKETING RESEARCH are to:each an understanding of the relevant processes on the basis of the available historic information. This element forms the basis for the

8/7/2019 answer MS - 06_2011

11/31

evelopment of models, required for forecasting and simulation.rovide information on the current situation, especially for early warning purposes, for instance related to issues impacting on business,

resources or business status.orecast changes and impacts, either natural or man-made, as an element in vulnerability assessments.orecast the consequences of policy decisions and measures before they are implemented in reality. This implies evaluating options for seiven scenarios based on the possible results and predicted consequences, and selecting the most acceptable alternative.

==============================================================OR THE MARKETING MANAGEMENT,

HE MARKETING RESEARCH IS THE MAIN/MAJOR TOOLto feel the market sensitivity/ market reactions to the product/ price etc

which helps in the decision to provide the market the right product/ right price/right promotion/nd at the right place.

N OTHER WORDS FROM THE MARKETresearched information on various aspects of the product/market.to shape the future requirements of the product/market.

AND PUT THE PRODUCT BACK INTO THE MARKET.

HE MARKET RESEARCH PROVIDESAd Tracking periodic or continuous in-market research to monitor a brands performance using measures such as brand awareness, brareference, and product usage.

Advertising Research used to predict copy testing or track the efficacy of advertisements for any medium, measured by the ads ability

et attention, communicate the message, build the brands image, and motivate the consumer to purchase the product or service.rand equity research - how favorably do consumers view the brand?rand name testing - what do consumers feel about the names of the products?

Commercial eye tracking research - examine advertisements, package designs, websites, etc by analyzing visual behavior of the consume

Concept testing - to test the acceptance of a concept by target consumersCoolhunting - to make observations and predictions in changes of new or existing cultural trends in areas such as fashion, music, films,

elevision, youth culture and lifestyleonsumer decision process research - to determine what motivates people to buy and what decision-making process they use

Copy testing predicts in-market performance of an ad before it airs by analyzing audience levels of attention, brand linkage, motivationntertainment, and communication, as well as breaking down the ads flow of attention and flow of emotion.

Customer satisfaction studies - exit interviews or surveys that determine a customer's level of satisfaction with the quality of theransaction

Demand estimation - to determine the approximate level of demand for the productDistribution channel audits - to assess distributors and retailers attitudes toward a product, brand, or company

Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums, web pages, blogs... where people exprreely about their experiences with products, becoming strong "opinion formers"

Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual marketingctivities.

mystery shopping - An employee or representative of the market research firm anonymously contacts a salesperson and indicates he or s

hopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researchingompetitors' products.ositioning research - how does the target market see the brand relative to competitors? - what does the brand stand for?rice elasticity testing - to determine how sensitive customers are to price changes

Sales forecasting - to determine the expected level of sales given the level of demand. With respect to other factors like Advertisingxpenditure, sales promotion etc.egmentation research - to determine the demographic, psychographic, and behavioural characteristics of potential buyers

Online panel - a group of individual who accepted to respond to marketing research onlineStore audit - to measure the sales of a product or product line at a statistically selected store sample in order to determine market sha

r to determine whether a retail store provides adequate serviceest marketing - a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider

marketViral Marketing Research - refers to marketing research designed to estimate the probability that specific communications will be transmithroughout an individuals Social Network. Estimates of Social Networking Potential (SNP) are combined with estimates of selling effectiveo estimate ROI on specific combinations of messages and media.

All of these forms of marketing research can be classified as either problem-identification research or as problem-solving research.

A company collects primary research by gathering original data. Secondary research is conducted on data published previously and usualomeone else. Secondary research costs far less than primary research, but seldom comes in a form that exactly meets the needs of theesearcher.

A similar distinction exists between exploratory research and conclusive research. Exploratory research provides insights into andomprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Conclusive research draws

onclusions: the results of the study can be generalized to the whole population.xploratory research is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of research. It

may serve as the input to conclusive research. Exploratory research information is collected by focus group interviews, reviewing literaturooks, discussing with experts, etc. This is unstructured and qualitative in nature. If a secondary source of data is unable to serve theurpose, a convenience sample of small size can be collected. Conclusive research is conducted to draw some conclusion about the problet is essentially, structured and quantitative research, and the output of this research is the input to MARKETING INFORMATION SYSTEM

xploratory research is also conducted to simplify the findings of the conclusive or descriptive research, if the findings are very hard tonterpret for the marketing manager.==================================================

8/7/2019 answer MS - 06_2011

12/31

OR THE MARKETING DEPARTMENTMR provides such informations as

consumer research data

market research data

market surveys

market analysis

competitors analysis

product analysis

product test analysis

product plans

test market results

market strategy analysis

sales analysis

distribution analysis

media analysis

promotion analysis

customer satisfaction survey

retail audit data

marketing auditing data

market forecast

sales forecast

sales planning data

distribution planning

customer analysis

market segment analysis

consumer [ socio/economic /demographic/psychographic] data

TC ETC.==================================================WHICH THE MARKETING DEPARTMENT USE FOR

new product development

new product planning

new product testing

new product test marketing

new product market forecast

new product sales forecast

annual market forecast

annual sales forecast

8/7/2019 answer MS - 06_2011

13/31

annual market planning

annual sales planning

annual distribution planning

annual target marketing

market segmentation

annual sales development programs

annual market development programs

annual sales planning

annual distribution planning

annual merchandising planning###########################################b) What is the type of packaging you would adopt in the following cases and why:i) Sea Food Exportsii) Premium Basmati Riceiii) Unisex Perfume

What is The need for packaging

rom the consumer's point of view the package's function is to protect the product. In the case of bulk goods, or if the product cannot besed without the support of the package, the package must help the use of the product. Without the service of packaging, most of the gospecially food, couldnt reach the consumer. Living in the countryside, one can buy goods, for example milk directly from the farmer, buan is needed to carry it home. This can also be considered as a refillable package, with almost an unlimited number of uses. In a city, man only be bought from the store, packed in aseptic carton box. It is not possible to avoid it, unless one goes daily to the dairy, and drinrom the tap.rom the packager's point of view, the most important function of the packaging is the protection of the usage and aesthetic values of theroduct from damages, and get the product sold to the consumer. For the producer, the package is also a value-creating media of theroduct. With the help of the package, the product can be sold to the consumer. For example, a barrel full of toothpaste has almost nourchase value, since who wants to buy 100 litre of toothpaste? Most probably nobody would buy even a handful of it in the grocery, but ertainly does buy 50 grams of toothpaste in a tube.

Modern packagings are an expressive form of the consumer-lifestyle. Over the protective function, packagings are giving character,

personality" to the product. They are following the product to the consumer, giving practical as well as aesthetic value. The proportion ofsage and aesthetic functions is important. The quality of packaging reflects our universal culture. All those products that appear in the snd offer themselves for purchase, apart of that - with very few exceptions - their usage function is primary, are creating the surrounding

material environment.==================================================================WHAT THIS PACKAGING PERFORMS IN THE TOTALMARKETING FUNCTION.

Primary packaging is the material the first envelops the product and holds it.Secondary packaging is outside the primary packaging perhaps used to group primary packages together.

What is the Role of PackagingThe role of packaging is containment, protection, safety, and display.If you are selling your product through retail stores, you are trying to use your packaging to :

Catch the browsers attentionCreate desire

Inspire confidence

What is the Importance of Packaginghe Importance of Packaginget's talk about packaging. Packaging can be thought about in many different ways, but if we think purely about the purpose of packaging

rst, we find the purpose is to:Contain the productCommunicate product informationacilitate product storage and shipment

Reinforce branding

Packaging is important, but you need to determine how critical it is based on your marketing/distribution methods.The packaging is a type of advertisement even if it goes through mail order to the customer directly. It will sit on the customers she

or peers to see. These peers are potential customers and most likely they will have the same needs as the person who already made th

8/7/2019 answer MS - 06_2011

14/31

urchase.The package becomes even more critical if you plan to distribute your product through resellers and it will sit on a shelf in a store. The

lot of competition for the customers attention. If you plan to do this, it is probably best to get a graphic designer to help you.Use descriptive titles for the product - not necessarily creative. Many people go into a retail store looking for products to perform a

unction, but don't necessarily have a specific product in mind. You need to communicate your function and benefits to them quickly andffectively.

Graphics and slogans on the package should reflect the usage of the product.Avoid technical jargon except for declaring content requirements.

Resellers are a good source of information for good packaging design. Ask for a reseller's input on a design.Stickers on a package work very well for attracting attention. In addition, you can use them to your advantage.

Include testimonial from existing users. This will inspire confidence.Include a sales literature in your packaging for the customer to pass on to their colleagues.

================================================================WHY IS THE PACKAGING SYSTEM AN IMPORTANT ELEMENTOF THE MARKETING ?

ackaging system is a set of operations that fulfil the function of creating sales units of the product. The operations of the packaging systre the follows: raw material supply, fuel and electricity production, packaging material production, package production, part of productrocessing that enables or helps the product to be packed, packaging (filling) operation.ince packages are made exclusively for the product's sake, the packaging system is a part of the product's system. That is why it is veryifficult to set the boundaries of the packaging system. To set system boundaries is also a dynamic process, and a basic step if a life-cycltudy of the packaging system shall be conducted.

A first evaluation is made in a screening LCA (Life Cycle Assessment) to identify the key processes that have to be studied in more detaileCA. Three aspects can be distinguished in these consecutive steps:boundaries between the packaging system and the environment,boundaries between the packaging system and the system of the packed product; and

the distinction between relevant processes related to the product system under study.ackaging system is often confused with only the packaging or fil ling operation. Although it is a very important part, but is only a part of

ackaging system. The choice of the packaging operation is a complex decision, and it is based on the following main groups of factors:protection of the product,available packaging technology,economics (costs),marketing (especially marketing-communication),product's properties,nvironmental considerations.

One would consider that the available packaging technology is the most important factor, but it is not so. The history of packagingevelopment showed, that new packaging technologies were found first of all from the wish to improve the protection functions of packagconomics is another important factor, it is crucial for the packager to be profitable, and spend the least possible on packaging the produ

Market considerations are another important factor especially at present level of "supermarket societies". If a producer wants the consumhoose his product from the wide range of goods available, he has to do a lot more than only produce a good product. The product shall b

acked to protect and enhance distribution.leasing, arising attention, image creation, helping the using ease, and most important: information supply, are top functions of packageNaturally the package's properties are adjusted to the packed product, but it is not seldom that the product's properties are changed withurpose of creating more practical package shapes. The motives are primarily economic -- simpler shapes are easier, and more effective ollect into secondary (retail) packages.

Another motive is the environmental concern: simpler shapes use less materials, and more effective collection to secondary packages alsmeans reduced resource exploitation. It is sensible, and legally required that waste management options are considered already at packa

esign. Design for reuse, recovery, or eventually disposal, are newly emerged tools of environmental marketing.================================HE SOCIAL IMPORTANCE OF PACKAGING

ackaging as a servicen modern societies, on the present level of economic development, to satisfy our needs, we have to rely on the services of the society. Tble to obtain consumer goods, we need among others the service of packaging. This study is based on the fact that packaging is anmportant part of our lives. This way the most important impact of packaging is that it enables satisfying human needs in an effective wa

ackaging effectivity means that packaging fulfils its function with minimal use of resources and minimal overall wastage. Service means ackaging consumer goods, helps their distribution, and gives an access to goods otherwise not accessible. It is most evident in foodackaging. Conserving perishable food prevents early spoilage, invention of aseptic packaging prolongs shelf-life and makes possibleistribution also to greater distances. This fact is more and more important in the present way of increasing urbanisation. In such level ofrbanisation, distribution of goods, especially food, is crucial, and the role of packaging is enormous.

he role of packaging in waste reduction is the most evident at food packaging. When food is processed and packaged, the food residues ften used as fuel, animal feed or some economically useful by-product. In absence of packaged processed food, the residues becomearbage in the household. Another reason why food packaging reduces waste is that it reduces spoilage.

==========================================================EA FOOD FOR EXPORTSHIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING.

product safely packed, with the right packing material.product quality is securedproduct flavor is retained

8/7/2019 answer MS - 06_2011

15/31

product content visibleproduct content identifiable

design layout cleareffective color combinationthe right font size lettering.packs easily visible / seen on the store shelfpackaging functionaleasy to shop

meets functional requirementsmeets the packaging technical requirements

packaging carries identifiable brandnstructions/directions ''how to use''nutritional value displayedetc etc

WE CHOOSE THESE COMBINATIONS, SO AS TO MAINTAINRODUCT STANDARD / NUTRIONAL VALUE / EASILY PORTABLE/

MAINTAINS HYGYENIC STANDARDS.=======================================================

NISEX PERFUME

HIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING.

product safely packed, with the right packing material.product content visibleproduct content identifiabledesign layout clear

effective color combinationthe right font size lettering.

packs easily visible / seen on the store shelfpackaging functionalpackaging carries identifiable brandetc etc

HE PRODUCT IS VISIBLE, IDENTIFIABLE/AND EASILY SELECTABLE BY THE CONSUMERS.=====================================================REMIUM BASMATI RICE

HIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING.product safely packed, with the right packing material.product quality is secured

product flavor is retainedproduct content visibleproduct content identifiabledesign layout cleareffective color combinationthe right font size lettering.packs easily visible / seen on the store shelf

easy to shopmeets functional requirementsmeets the packaging technical requirementspackaging carries identifiable brandpackaging functionaletc etc

HE PRODUCT IS VISIBLE, IDENTIFIABLE/AND EASILY SELECTABLE BY THE CONSUMERS.

=====================================================#########################################

What is The need for packagingrom the consumer's point of view the package's function is to protect the product. In the case of bulk goods, or if the product cannot be

sed without the support of the package, the package must help the use of the product. Without the service of packaging, most of the gospecially food, couldnt reach the consumer. Living in the countryside, one can buy goods, for example milk directly from the farmer, buan is needed to carry it home. This can also be considered as a refillable package, with almost an unlimited number of uses. In a city, man only be bought from the store, packed in aseptic carton box. It is not possible to avoid it, unless one goes daily to the dairy, and drinrom the tap.rom the packager's point of view, the most important function of the packaging is the protection of the usage and aesthetic values of the

roduct from damages, and get the product sold to the consumer. For the producer, the package is also a value-creating media of theroduct. With the help of the package, the product can be sold to the consumer. For example, a barrel full of toothpaste has almost nourchase value, since who wants to buy 100 litre of toothpaste? Most probably nobody would buy even a handful of it in the grocery, but

8/7/2019 answer MS - 06_2011

16/31

ertainly does buy 50 grams of toothpaste in a tube.

Modern packagings are an expressive form of the consumer-lifestyle. Over the protective function, packagings are giving character,personality" to the product. They are following the product to the consumer, giving practical as well as aesthetic value. The proportion ofsage and aesthetic functions is important. The quality of packaging reflects our universal culture. All those products that appear in the snd offer themselves for purchase, apart of that - with very few exceptions - their usage function is primary, are creating the surrounding

material environment.==================================================================

WHAT THIS PACKAGING PERFORMS IN THE TOTALMARKETING FUNCTION.

Primary packaging is the material the first envelops the product and holds it.Secondary packaging is outside the primary packaging perhaps used to group primary packages together.

What is the Role of PackagingThe role of packaging is containment, protection, safety, and display.If you are selling your product through retail stores, you are trying to use your packaging to :

Catch the browsers attentionCreate desireInspire confidence

What is the Importance of Packaging

he Importance of Packaginget's talk about packaging. Packaging can be thought about in many different ways, but if we think purely about the purpose of packagingrst, we find the purpose is to:

Contain the product

Communicate product informationacilitate product storage and shipment

Reinforce branding

Packaging is important, but you need to determine how critical it is based on your marketing/distribution methods.The packaging is a type of advertisement even if it goes through mail order to the customer directly. It will sit on the customers she

or peers to see. These peers are potential customers and most likely they will have the same needs as the person who already made thurchase.

The package becomes even more critical if you plan to distribute your product through resellers and it will sit on a shelf in a store. Thelot of competition for the customers attention. If you plan to do this, it is probably best to get a graphic designer to help you.Use descriptive titles for the product - not necessarily creative. Many people go into a retail store looking for products to perform a

unction, but don't necessarily have a specific product in mind. You need to communicate your function and benefits to them quickly andffectively.

Graphics and slogans on the package should reflect the usage of the product.Avoid technical jargon except for declaring content requirements.

Resellers are a good source of information for good packaging design. Ask for a reseller's input on a design.Stickers on a package work very well for attracting attention. In addition, you can use them to your advantage.Include testimonial from existing users. This will inspire confidence.Include a sales literature in your packaging for the customer to pass on to their colleagues.

================================================================WHY IS THE PACKAGING SYSTEM AN IMPORTANT ELEMENTOF THE MARKETING ?

ackaging system is a set of operations that fulfil the function of creating sales units of the product. The operations of the packaging systre the follows: raw material supply, fuel and electricity production, packaging material production, package production, part of productrocessing that enables or helps the product to be packed, packaging (filling) operation.ince packages are made exclusively for the product's sake, the packaging system is a part of the product's system. That is why it is veryifficult to set the boundaries of the packaging system. To set system boundaries is also a dynamic process, and a basic step if a life-cycltudy of the packaging system shall be conducted.

A first evaluation is made in a screening LCA (Life Cycle Assessment) to identify the key processes that have to be studied in more detaileCA. Three aspects can be distinguished in these consecutive steps:

boundaries between the packaging system and the environment,boundaries between the packaging system and the system of the packed product; andthe distinction between relevant processes related to the product system under study.ackaging system is often confused with only the packaging or fil ling operation. Although it is a very important part, but is only a part of ackaging system. The choice of the packaging operation is a complex decision, and it is based on the following main groups of factors:

protection of the product,available packaging technology,economics (costs),marketing (especially marketing-communication),product's properties,nvironmental considerations.

One would consider that the available packaging technology is the most important factor, but it is not so. The history of packagingevelopment showed, that new packaging technologies were found first of all from the wish to improve the protection functions of packag

8/7/2019 answer MS - 06_2011

17/31

conomics is another important factor, it is crucial for the packager to be profitable, and spend the least possible on packaging the produMarket considerations are another important factor especially at present level of "supermarket societies". If a producer wants the consum

hoose his product from the wide range of goods available, he has to do a lot more than only produce a good product. The product shall backed to protect and enhance distribution.leasing, arising attention, image creation, helping the using ease, and most important: information supply, are top functions of package

Naturally the package's properties are adjusted to the packed product, but it is not seldom that the product's properties are changed withurpose of creating more practical package shapes. The motives are primarily economic -- simpler shapes are easier, and more effective ollect into secondary (retail) packages.

Another motive is the environmental concern: simpler shapes use less materials, and more effective collection to secondary packages alsmeans reduced resource exploitation. It is sensible, and legally required that waste management options are considered already at packa

esign. Design for reuse, recovery, or eventually disposal, are newly emerged tools of environmental marketing.================================HE SOCIAL IMPORTANCE OF PACKAGING

ackaging as a servicen modern societies, on the present level of economic development, to satisfy our needs, we have to rely on the services of the society. Tble to obtain consumer goods, we need among others the service of packaging. This study is based on the fact that packaging is anmportant part of our lives. This way the most important impact of packaging is that it enables satisfying human needs in an effective waackaging effectivity means that packaging fulfils its function with minimal use of resources and minimal overall wastage. Service means ackaging consumer goods, helps their distribution, and gives an access to goods otherwise not accessible. It is most evident in foodackaging. Conserving perishable food prevents early spoilage, invention of aseptic packaging prolongs shelf-life and makes possible

istribution also to greater distances. This fact is more and more important in the present way of increasing urbanisation. In such level ofrbanisation, distribution of goods, especially food, is crucial, and the role of packaging is enormous.he role of packaging in waste reduction is the most evident at food packaging. When food is processed and packaged, the food residues ften used as fuel, animal feed or some economically useful by-product. In absence of packaged processed food, the residues become

arbage in the household. Another reason why food packaging reduces waste is that it reduces spoilage.==========================================================

EA FOOD FOR EXPORTSHIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING.product safely packed, with the right packing material.product quality is securedproduct flavor is retainedproduct content visibleproduct content identifiabledesign layout cleareffective color combinationthe right font size lettering.packs easily visible / seen on the store shelfpackaging functionaleasy to shop

meets functional requirementsmeets the packaging technical requirementspackaging carries identifiable brandnstructions/directions ''how to use''nutritional value displayedetc etc

WE CHOOSE THESE COMBINATIONS, SO AS TO MAINTAINRODUCT STANDARD / NUTRIONAL VALUE / EASILY PORTABLE/

MAINTAINS HYGYENIC STANDARDS.=======================================================

NISEX PERFUME

HIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING.product safely packed, with the right packing material.product content visible

product content identifiabledesign layout cleareffective color combinationthe right font size lettering.packs easily visible / seen on the store shelf

packaging functionalpackaging carries identifiable brandetc etc

HE PRODUCT IS VISIBLE, IDENTIFIABLE/AND EASILY SELECTABLE BY THE CONSUMERS.

=====================================================REMIUM BASMATI RICE

8/7/2019 answer MS - 06_2011

18/31

HIS IS A MACRO-ANALYSIS OF THE PRODUCT PACKAGING.product safely packed, with the right packing material.

product quality is securedproduct flavor is retainedproduct content visibleproduct content identifiabledesign layout cleareffective color combination

the right font size lettering.packs easily visible / seen on the store shelf

easy to shopmeets functional requirementsmeets the packaging technical requirementspackaging carries identifiable brandpackaging functionaletc etc

HE PRODUCT IS VISIBLE, IDENTIFIABLE/AND EASILY SELECTABLE BY THE CONSUMERS.=====================================================#########################################

a) Discuss the main objectives of Sales Promotion. Identify some sales promotions methods directed at consumers, whan be used by a soap manufacturer

MAJOR OBJECTIVES OF SALES PROMOTIONS.to support the advertising program.to support the sales team drive

to support the sales channels - trade.to accelerate the sales

to drive the people traffic to the point of sales.to stimulate the people to make the buying decision.to influence the people to choose a particular brand.to help the retail to move the merchandiseto help to liquidate the stocks.to help to overcome the competition.to help to gain the market shareto draw the customers' attention towards the product on the shelf.tc etc---------------------------------------------------------------------

AS FOR THE ELEMENTS OF PROMOTIONS, YOUR SELECTIONWILL DEPEND ON THE FOLLOWINGnature of the product

market situationsales situationmarketing / sales objectivesbudgettc etc

=================================ales promotion

uccessful promotion campaigns don't happen by chance. To realize goals, promotional products programs must be carefully planned, taknto consideration the audience, budget and, of course, the ultimate result to be gained.

. Define a specific objective.Whether the goal is to increase traffic at a trade show exhibit or to boost sales with current clients, the first step in any campaign is to clahe purpose of the program.. Determine a workable distribution plan to a targeted audience.

Distribution of a promotional product is as important as the item itself. Research shows that a carefully executed distribution plan significancreases the effectiveness of promotional products. For example, a pre-show mailing to a select audience delivers more trade show traffi

nd qualified leads than simply distributing items to passerby at the show.. Create a central theme.inking a recognizable logo and color to all aspects of a campaign, from promotional products to sales sheets to product packaging, helpsreate an instantly recognizable image.. Develop a message to support the theme.

upporting a campaign's theme with a message helps to solidify a company's name, service or products in the target audience's mind. Fonstance, to promote its services to small businesses, a bank created the theme "Are you tired of being treated like a small fish?" and sensh-related products to its prospects along with promotional literature.. Select a promotional product that bears a natural relationship to your profession or communications theme.

A good example is a company that developed a magic motif for its conference at Disney World. Attendees received magic-related producte in with the theme "Experience the magic at Disney."

. Don't pick an item based solely on uniqueness, price or perceived value.Don't fall prey to the latest trends or fads. The most effective promotional products are used in a cohesive, well-planned campaign================================================================ Consumer SALES Promotions

8/7/2019 answer MS - 06_2011

19/31

Consumer sales promotions are steered toward the ultimate product userstypically individual shoppers in the local marketbut the samechniques can be used to promote products sold by one business to another, such as computer systems, cleaning supplies, and machine

n contrast, trade sales promotions target resellerswholesalers and retailerswho carry the marketer's product. Following are some of tey techniques used in consumer-oriented sales promotions.RICE DEALS. A consumer price deal saves the buyer money when a product is purchased. The main types of price deals include discountonus pack deals, refunds or rebates, and coupons. Price deals are usually intended to encourage trial use of a new product or line exteno recruit new buyers for a mature product, or to convince existing customers to increase their purchases, accelerate their use, or purcha

multiple units. Price deals work most effectively when price is the consumer's foremost criterion or when brand loyalty is low.

uyers may learn about price discounts either at the point of sale or through advertising. At the point of sale, price reductions may be pon the package, on signs near the product, or in storefront windows. Many types of advertisements can be used to notify consumers of

pcoming discounts, including fliers and newspaper and television ads. Price discounts are especially common in the food industry, whereocal supermarkets run weekly specials. Price discounts may be initiated by the manufacturer, the retailer, or the distributor. For instancemanufacturer may "pre-price" a product and then convince the retailer to participate in this short-term discount through extra incentives.rice reduction strategies to be effective, they must have the support of all distributors in the channel. Existing customers perceive discous rewards and often respond by buying in larger quantities. Price discounts alone, however, usually do not induce first time buyers.

Another type of price deal is the bonus pack or banded pack. When a bonus pack is offered, an extra amount of the product is free when tandard size of the product is bought at the regular price. This technique is routinely used in the marketing of cleaning products, food, aealth and beauty aids to introduce a new or larger size. A bonus pack rewards present users but may have little appeal to users ofompetitive brands. A banded pack offer is when two or more units of a product are sold at a reduction of the regular single-unit price.ometimes the products are physically banded together, such as in toothbrush and toothpaste offers.

A refund or rebate promotion is an offer by a marketer to return a certain amount of money when the product is purchased alone or inombination with other products. Refunds aim to increase the quantity or frequency of purchase, to encourage customers to "load up" on

roduct. This strategy dampens competition by temporarily taking consumers out of the market, stimulates the purchase of postponableoods such as major appliances, and creates on-shelf excitement by encouraging special displays. Refunds and rebates are generally views a reward for purchase, and they appear to build brand loyalty rather than diminish it.

Coupons are legal certificates offered by manufacturers and retailers. They grant specified savings on selected products when presented f

edemption at the point of purchase. Manufacturers sustain the cost of advertising and distributing their coupons, redeeming their facealues, and paying retailers a handling fee. Retailers who offer double or triple the amount of the coupon shoulder the extra cost. Retailer

who offer their own coupons incur the total cost, including paying the face value. In this way, retail coupons are equivalent to a cents-offeal.

Manufacturers disseminate coupons in many ways. They may be delivered directly by mail, dropped door to door, or distributed through aentral location such as a shopping mall. Coupons may also be distributed through the mediamagazines, newspapers, Sunday supplemer free-standing inserts (FSI) in newspapers. Coupons can be inserted into, attached to, or printed on a package, or they may be distribuy a retailer who uses them to generate store traffic or to tie in with a manufacturer's promotional tactic. Retailer-sponsored coupons areypically distributed through print advertising or at the point of sale. Sometimes, though, specialty retailers or newly opened retailers willistribute coupons door to door or through direct mail.-----------------------------------------------------------------

CONTESTS/SWEEPSTAKES. The main difference between contests and sweepstakes is that contests require entrants to perform a task oremonstrate a skill that is judged in order to be deemed a winner, while sweepstakes involve a random drawing or chance contest that mr may not have an entry requirement. At one time, contests were more commonly used as sales promotions, mostly due to legal restrictn gambling that many marketers feared might apply to sweepstakes. But the use of sweepstakes as a promotional tactic has grown

ramatically in recent decades, partly because of legal changes and partly because of their lower cost. Administering a contest once costbout $350 per thousand entries, compared to just $2.75 to $3.75 per thousand entries in a sweepstake. Furthermore, participation inontests is very low compared to sweepstakes, since they require some sort of skill or ability.-----------------------------------------------------------------PECIAL EVENTS. According to the consulting firm International Events Group (IEG), businesses spend over $2 billion annually to link theroducts with everything from jazz festivals to golf tournaments to stock car races. In fact, large companies like RJR Nabisco and Anheususch have special divisions that handle nothing but special events. Special events marketing offers a number of advantages. First, event

end to attract a homogeneous audience that is very appreciative of the sponsors. Therefore, if a product fits well with the event and itsudience, the impact of the sales promotion will be high. Second, event sponsorship often builds support among employeeswho may recknowledgment for their participationand within the trade. Finally, compared to producing a series of ads, event management is relativimple. Many elements of event sponsorship are prepackaged and reusable, such as booths, displays, and ads. Special events marketing vailable to small businesses, as well, through sponsorship of events on the community level.-------------------------------------------------------------REMIUMS. A premium is tangible compensation that is given as incentive for performing a particular actusually buying a product. Theremium may be given for free, or may be offered to consumers for a significantly reduced price. Some examples of premiums includeeceiving a prize in a cereal box or a free garden tool for visiting the grand opening of a hardware store. Incentives that are given for free

he time of purchase are called direct premiums. These offers provide instant gratification, plus there is no confusion about returning cour box tops, or saving bar codes or proofs of purchase.

Other types of direct premiums include traffic builders, door openers, and referral premiums. The garden tool is an example of a traffic-uilder premiuman incentive to lure a prospective buyer to a store. A door-opener premium is directed to customers at home or to busieople in their offices. For example, a homeowner may receive a free clock radio for allowing an insurance agent to enter their home and

stening to his sales pitch. Similarly, an electronics manufacturer might offer free software to an office manager who agrees to an on-siteemonstration. The final category of direct premiums, referral premiums, reward the purchaser for referring the seller to other possibleustomers.

Mail premiums, unlike direct premiums, require the customer to perform some act in order to obtain a premium through return mail. Anxample might be a limited edition toy car offered by a marketer in exchange for one or more proofs-of-purchase and a payment coverinost of the item plus handling. The premium is still valuable to the consumer because they cannot readily buy the item for the same amo

----------------------------------------------------------------------------CONTINUITY PROGRAMS. Continuity programs retain brand users over a long time period by offering ongoing motivation or incentives.Continuity programs demand that consumers keep buying the product in order to get the premium in the future. Trading stamps, popular

8/7/2019 answer MS - 06_2011

20/31

n the 1950s and 1960s, are prime examples. Consumers usually received one stamp for every dime spent at a participating store. The stompany provided redemption centers where the stamps were traded for merchandise. A catalog listing the quantity of stamps required f

ach item was available at the participating stores. Today, airlines' frequent-flyer clubs, hotels' frequent-traveler plans, retailers' frequenthopper programs, and bonus-paying credit cards are common continuity programs. When competing brands have reached parity in termrice and service, continuity programs sometimes prove a deciding factor among those competitors. By rewarding long-standing customeor their loyalty, continuity programs also reduce the threat of new competitors entering a market.---------------------------------------------------------AMPLING. A sign of a successful marketer is getting the product into the hands of the consumer. Sometimes, particularly when a produc

ew or is not a market leader, an effective strategy is giving a sample product to the consumer, either free or for a small fee. But in ordeampling to change people's future purchase decisions, the product must have benefits or features that will be obvious during the trial.

here are several means of disseminating samples to consumers. The most popular has been through the mail, but increases in postage cnd packaging requirements have made this method less attractive. An alternative is door-to-door distribution, particularly when the itemre bulky and when reputable distribution organizations exist. This method permits selective sampling of neighborhoods, dwellings, or eveeople. Another method is distributing samples in conjunction with advertising. An ad may include a coupon that the consumer can mail ihe product, or it may include an address or phone number for ordering. Direct sampling can be achieved through prime media using scrand-sniff cards and slim foil pouches, or through retailers using special displays or a person hired to hand out samples to passing customehough this last technique may build goodwill for the retailer, some retailers resent the inconvenience and require high payments for theiooperation.

A final form of sample distribution deals with specialty types of sampling. For instance, some companies specialize in packing samplesogether for delivery to homogeneous consumer groups, such as newlyweds, new parents, students, or tourists. Such packages may beelivered at hospitals, hotels, or dormitories and include a number of different types of products.

rade SALES Promotions

A trade sales promotion is targeted at resellerswholesalers and retailerswho distribute manufacturers' products to the ultimateonsumers. The objectives of sales promotions aimed at the trade are different from those directed at consumers. In general, trade sales

romotions hope to accomplish four goals: 1) Develop in-store merchandising support, as strong support at the retail store level is the kelosing the loop between the customer and the sale. 2) Control inventory by increasing or depleting inventory levels, thus helping to elim

easonal peaks and valleys. 3) Expand or improve distribution by opening up new sales areas (trade promotions are also sometimes usedistribute a new size of the product). 4) Generate excitement about the product among those responsible for selling it. Some of the mostommon forms of trade promotionsprofiled belowinclude point-of-purchase displays, trade shows, sales meetings, sales contests, pus

money, deal loaders, and promotional allowances.

OINT-OF-PURCHASE (POP) DISPLAYS. Manufacturers provide point-of-purchase (POP) display units free to retailers in order to promote articular brand or group of products. The forms of POP displays include special racks, display cartons, banners, signs, price cards, and

mechanical product dispensers. Probably the most effective way to ensure that a reseller will use a POP display is to design it so that it wenerate sales for the retailer. High product visibility is the basic goal of POP displays. In industries such as the grocery field where a shopends about three-tenths of a second viewing a product, anything increasing product visibility is valuable. POP displays also provide oremind consumers about important decision information, such as the product's name, appearance, and sizes. The theme of the POP displahould coordinate with the theme used in ads and by salespeople.-------------------------------------------------------------

RADE SHOWS. Thousands of manufacturers display their wares and take orders at trade shows. In fact, companies spend over $9 billionearly on these shows. Trade shows provide a major opportunity to write orders for products. They also provide a chance to demonstrateroducts, disseminate information, answer questions, and be compared directly to competitors. Related to trade shows, but on a smallercale, are sales meetings sponsored by manufacturers or wholesalers. Whereas trade shows are open to all potential customers, sales

meetings are targeted toward the company's sales force and/or independent sales agents. These meetings are usually conducted regionand directed by sales managers. The meetings may be used to motivate sales agents, to explain the product or the promotional campaigimply to answer questions. For resellers and salespeople, sales contests can also be an effective motivation. Typically, a prize is awarded

he organization or person who exceeds a quota by the largest percentage.--------------------------------------------------------------USH MONEY. Similarly, push money (PM)also known as spiffsis an extra payment given to sales-people for meeting a specified salesoal. For example, a manufacturer of refrigerators might pay a $30 bonus for each unit of model A, and a $20 bonus for each unit of modold between March 1 and September 1. At the end of that period, the salesperson would send evidence of these sales to the manufacturnd receive a check in return. Although some people see push money as akin to bribery, many manufacturers offer it.------------------------------------------------------------

DEAL LOADERS. A deal loader is a premium given by a manufacturer to a retailer for ordering a certain quantity of product. Two types of oaders are most typical. The first is a buying loader, which is a gift given for making a specified order size. The second is a display loade

which means the display is given to the retailer after the campaign. For instance, General Electric may have a display containing appliancart of a special program. When the program is over, the retailer receives all the appliances on the display if a specified order size waschieved.------------------------------------------------------------------------RADE DEALS. Trade deals are special price concessions superseding, for a limited time, the normal purchasing discounts given to the tra

rade deals include a group of tactics having a common themeto encourage sellers to specially promote a product. The marketer mighteceive special displays, larger-than-usual orders, superior in-store locations, or greater advertising effort. In exchange, the retailer migheceive special allowances, discounts, goods, or money. In many industries, trade deals are the primary expectation for retail support, anhe marketing funds spent in this area are considerable. There are two main types of trade deals: buying allowances and advertising/displlowances.-------------------------------------------------------------------------

UYING ALLOWANCES. A buying allowance is a bonus paid by a manufacturer to a reseller when a certain amount of product is purchaseduring a specific time period. For example, a reseller who purchases at least 15 cases of product might receive a buying allowance of $6.0ff per case, while a purchase of at least 20 cases would result in $7.00 off per case, and so forth. The payment may take the form of a c

8/7/2019 answer MS - 06_2011

21/31

r a reduction in the face value of an invoice. In order to take advantage of a buying allowance, some retailers engage in "forward buyingssence, they order more merchandise than is needed during the deal period, then store the extra merchandise to sell later at regular pri

his assumes that the savings gained through the buying allowance is greater than the cost of warehousing and transporting the extramerchandise. Some marketers try to discourage forward buying, since it reduces profit margins and tends to create cyclical peaks androughs in demand for the product.he slotting allowance is a controversial form of buying allowance. Slotting allowances are fees retailers charge manufacturers for each spr slot on the shelf or in the warehouse that new products will occupy. The controversy stems from the fact that in many instances thisllowance amounts to little more than paying a