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For BSNL internal circulation only E3-E4 MANAGEMENT MARKETING OF NEW PRODUCTS 15-3-2011
For BSNL internal circulation only
E3-E4 MANAGEMENT
MARKETING OF NEW PRODUCTS
15-3-2011
For BSNL internal circulation only
AGENDAAGENDA
Marketing Fundamentals & Strategy
Strategies for marketing new product
BSNL 3G case study
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WHAT IS MARKETING… ?WHAT IS MARKETING… ?
Analyzing the needs of the people?
Trying to guess what types of products
they want?
Estimate how much they will buy?
Predict when they will want to buy?
Determine where they go to buy the stuff?
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WHAT IS MARKETING… ?WHAT IS MARKETING… ?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
Selling?
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MARKETING….MARKETING….
The sum of all activities that take you to a
sales outlet. After that sales takes over.
The process of planning and executing the
conception, pricing, promotion, and distribution
of ideas, goods, services to create exchanges
that satisfy individual and organizational goals.
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MARKETINGMARKETING MANAGEMENTMANAGEMENT
The art and science of choosing target
markets and getting, keeping, and growing
customers through creating, delivering, and
communicating superior customer value..
SERVICE MARKETING
� Service Marketing has 7 Ps like 7 Notes of
Music.
� 4 Ps of Product Marketing are Product , Price,
Promotion & Place.
� Additional three Ps are required for service
marketing i.e. People, Process & Physical
Evidence.
� 7 Ps are also called Marketing Mix.
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For BSNL internal circulation only
MKTG MIX FOR SERVICESMKTG MIX FOR SERVICES
Promotion (Communication)
Product (Customer Solution)
Physical Evidence ( Success depends upon its Creation)
Price(Customer Cost)
customers
Place,(Customer Convenience)
Ps for Product Marketing
+ Ps for Service Marketing
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STRATEGIC MKTGSTRATEGIC MKTG
Strategic marketing management is concerned
with how we will create value for the customer
Asks two main questions
What is the organization’s main activity at a particular time? –
Customer Value
What are its primary goals and how will these be achieved? –
how will this value be delivered
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PRODUCT LIFE CYCLEPRODUCT LIFE CYCLE
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MARKETING ENVIROMENT & MARKETING ENVIROMENT & COMPETITOR ANALYSISCOMPETITOR ANALYSIS
SWOT ( Strength, weakness, Opportunity and
Threats) Analysis
PEST (Political, Economic, Social and
Technological ) Analysis
Five forces analysis
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PORTER’S FIVE FORCESPORTER’S FIVE FORCES
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STRATEGY FORMULATIONSTRATEGY FORMULATION
Environmental Analysis
PEST &Porter’s Five Force
Analysis
Technology Know-How
Manufacturing Know-How
Marketing Know-How
Distribution Know-How
Logistics
Strength & Weaknesses
Identity Core Competencies
Opportunities & Threats
Identify opportunity
Fit internal Competencies with external opportunities
Firm Strategies
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MARKETING PROCESSMARKETING PROCESS
Business Mission Statement
Objectives
Situation or SWOT Analysis
Implementation Evaluation, Control
Target Market Strategy
Marketing Strategy
Product PromotionPlace/Distribution Price
Marketing Mix
People Process Physical Evidence
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STEPS INVOLVE IN STEPS INVOLVE IN LAUNCHING NEW PRODUCTSLAUNCHING NEW PRODUCTS
New product strategy
Idea generation
Idea screening
Concept development and testing
Marketing strategy
Business Analysis
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STEPS INVOLVE IN STEPS INVOLVE IN LAUNCHING NEW PRODUCTSLAUNCHING NEW PRODUCTS
Product development
Test Marketing
Commercialization
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STRATEGY FOR BRINGING STRATEGY FOR BRINGING NEW PRODUCT SERVICENEW PRODUCT SERVICE
Study your competition
Target the idea customer
Create a unique value proposition tactics
Test your concept and marketing approach
Roll out campaign
Know the product lifecycle
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FIRSTFIRST--MOVER ADVANTAGE MOVER ADVANTAGE (FMA)(FMA)
FMA, gained by the initial occupant
referred to first significant company
First entrant can gain control of recourses
that followers may not match
Sometimes, first mover fails and advantage
to second mover
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MECHANISM LEADING TO MECHANISM LEADING TO FIRST MORE ADVANTAGEFIRST MORE ADVANTAGE
Switching costs and buyer choice under
uncertainty- Switching cost on late entrants,
Extra resources for customer attraction and
risk about customer choice
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FIRSTFIRST--MOVER DISADVANTAGEMOVER DISADVANTAGE
Free- rider effects- Late entrants study
the strategy of first mover but not available to
the first mover
Resolution of technological and market
uncertainty-First mover deals with entire risk
related with creating a new market. Late
mover does not sustain risk
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FIRSTFIRST--MOVER DISADVANTAGEMOVER DISADVANTAGE
Shift in technology or customer needs-Late
entrants assess the market actual needs
Incumbent inertia
�Success may cause first mover
complacent
�Vulnerability of the first mover enhanced
by incumbent inertia
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BSNL NEW CASE: 3G SERVICEBSNL NEW CASE: 3G SERVICE
BACKGROUND
MTNL&BSNL were provided 3G spectrum
and license fees will be as per bidding
process.
3G equipment were covered in tender,
floated in year 2006. But, P.O. could be
issued in year 2008.
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3 G V/S 2 G3 G V/S 2 G
The main difference is a speed
2G use different switching techniques for voice
and data, where 3G uses single switching for any
kind of data.
� Different access technique
� Different data rate
� Different freq. bands
� Different services
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LAUNCH OF 3 GLAUNCH OF 3 G
The service was launched in Feb 2009 at
Chennai by Tamilnadu CM, (M .Karunanidhi)
BSNL 3G Service which include 3.6 Mbps
broadband, Video call and Mobile TV has
been made available in 100 select cities of
North and Eastern part.
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3 G COVERAGE 3 G COVERAGE ––NATIONAL SCENARIO NATIONAL SCENARIO
BSNL has planned to cover 751 cities for
3G in phase V.1.
BSNL plans to cover all the DHQs and
other commercial important towns in phase
V.1 order.
The 3G network is designed based.
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3 G EXPERIENCE CENTERS3 G EXPERIENCE CENTERS
BSNL came up with a concept of enabling
the customers to have a feel of 3G by setting
up of 3G experience centers across the
country.
An Advertising agency was assigned the
task of setting up such centers.
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CONTENT TIE UPSCONTENT TIE UPS
It was must to have heavy application which are of
customer interest.
BSNL Lunched video clip services:
� Video on demand service.
�The price of individual video is based on its type and range (
from Rs 5/- to Rs 20/-)
�The cost price per song is Rs 15/-
�Game:
�Customers can play the same games on their mobile phone as
they are play on their computers.
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