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FUNDAMENTALS OFMARKETING MANAGEMENT
By Prabhat Ranjan Choudhury,Sr. Lecturer, B.J.B (A) College,
Bhubaneswar.
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Module of Presentation
Selling vs. MarketingWhat is Marketing?Definition of Marketing ManagementScope of Marketing ManagementMarketing MixProduct Life CycleSegmentation, Targeting and Positionning (STP)
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Selling vs. Marketing
Product oriented Customer oriented
Objective is exchange of goodsagainst money
Objective is customersatisfaction
To sell what you make To make what you can sell
Believes that customers can becoaxed into buying
Believes in delivering value
Selling focuses on the needs of the seller Marketing on the needs of thebuyer.
Selling is push Marketing is pull
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Selling Vs. Marketing
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What is Marketing???
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Definitions
Marketing is a societal process by which individualsand groups obtain what they want and need throughcreating , offering and freely exchanging productsand services of value with others
Phillip Kotler Marketing Management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services tocreate exchanges that satisfy individual and
organizational goals.American Marketing Association
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Scope of Marketing
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Scope of Marketing
http://images.google.co.in/imgres?imgurl=http://blog.releasemyad.com/wp-content/uploads/2009/03/times-of-india-2.jpg&imgrefurl=http://blog.releasemyad.com/2009/03/special-property-offers-for-times-of-india-delhi-go-online/&usg=__ZdyY1FrQd7uA74Py4HFFPQWmaTs=&h=621&w=784&sz=261&hl=en&start=1&tbnid=9yUV91ZwchLHsM:&tbnh=113&tbnw=143&prev=/images?q=times+of+india&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://bankpo.files.wordpress.com/2009/01/you-can-win.jpg&imgrefurl=http://bankpo.wordpress.com/2009/01/30/you-can-win-for-voracious-readers/&usg=__ql5Bv8FxUlmud8uCk2YRrzLtPdQ=&h=450&w=300&sz=40&hl=en&start=1&um=1&tbnid=f4l22BsQorex9M:&tbnh=127&tbnw=85&prev=/images?q=you+can+win+by+shiv+khera&hl=en&um=1http://images.google.co.in/imgres?imgurl=http://www.punny.org/wp-content/images/200612/20061213mcdonalds.gif&imgrefurl=http://www.punny.org/2006/12/&usg=__V1wSNfd-e5IYsp4N0u6FGMp22OA=&h=352&w=460&sz=12&hl=en&start=1&tbnid=D--miOr5mUDb3M:&tbnh=98&tbnw=128&prev=/images?q=Mcdonald&gbv=2&hl=en&sa=X7/31/2019 Fundamentals Marketing Management
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Marketing mix
Marketing mix is the set of marketing tools that the firmuses to pursue its marketing objectives in the targetmarket.
A product is any tangible, intangible or blend of both
offered to the target market that might satisfy theneeds, wants or aspirations of a consumer.Price refers to the money value that the consumershave to pay to buy the product or service.
Place is concerned with all the decisions involved ingetting the right product to the target markets place.
Promotion is concerned with telling the target market or others in the channel of distribution about the rightproduct.
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Marketing Mix
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Marketing Mix: Summary
Source: Phillip Kotler
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Marketing Mix: Product Decision
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Marketing Mix: Price Decision
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Marketing Mix: Promotion Decision
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Marketing Mix: Place Decision
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PLC
TIME
SALES &PROFITS
ProductDevStage
IntroStage
GrowthStage
MaturityStage
DeclineStage
Sales
Profit
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Examples of Different Stages of PLC
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Summary of PLC
Characteristics ProductDev Introduction Growth Maturity Decline
Sales Nil Low Rapidlyrising
Peak Declining
Costs Dev cost High cost per customer
Avg cots per customer
Low cost Low cost
Profits Negative Negative Rising High Declining
Customers Nil Innovators(2.5%)
Earlyadopters(13.5%)
Middlemajority(68%)
Laggards(16%)
Competitors Nil/few Few Growing Stable Declining
MarketingObjective
Make your productknownandestablisha test
period
Create productawareness &trial
Maximisemarket share
Maximisingprofit whiledefendingmarket share
Reduceexpenditure& milk thebrand
Source: Phillip Kotler
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Strategies of PLCProductDev
Introduction Growth Maturity Decline
Product Design anewproduct
Offer a basicproduct
Offer productextensions
Diversifybrand
Phase outweak items
Price Use cost-plus Price topenetratemarket
Price to matchor beatcompetitors
Cut price
Place/Distribution
No Selective Intensive Moreintensive
Go selective.Phase outunprofitablechannel
Advertising No Productawareness
amonginnovator, earlyadopters &dealers
Productawareness
among massmarket
Branddifference &
benefits
Reduce. Tryto retain hard
core loyalcustomers
SalesPromotions
Creation of public
marketproduct
Focus on trialpack
Reduce totake
advantage of heavy
Increase toencourage
brandswitching
Reduce tominimal level
Source: Phillip Kotler
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Segmentation Targeting & Positioning (STP)Market Segmentation is the process of dividing amarket into distinct subgroups of consumers with distinctneeds, characteristics, or behaviour, who might requireseparate products or marketing mixes.
Philip Kotler Target Marketing involves breaking a market intosegments and then concentrating your marketing effortson one or a few key segments.Positioning is the process of designing an offer so that itoccupies a distinct and valued place in the minds of thetarget customer.
Philip Kotler Positioning involves implanting the brands uniquebenefits and differentiation in customers mind.
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Levels of Market Segmentation
Segment marketing : Dividing the market intodifferent segments on the basis of homogenous need.Niche marketing : More narrowly defined group,typically a small market whose needs are not well
served. Marketers effort to position their product orservice in smaller markets that have similar attributesand have been neglected by other marketer
Local marketing : Marketers offer customized
products to suit the local markets.Individual marketing : Extreme marketing in whichmarketers focus on individual customers.
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Bases for Consumer Market Segmentation
ConsumerMarket
Segmentation
GeographicalRegions, cities,
states,countries
DemographicAge,
gender,income,
occupation,religion,
social class,family size
PsychographicLife style,
personality,values,beliefs
BehavioralOccasions,Benefits,
User status,Usage rate,
Loyalty status
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Targeting Segments - Overview
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Positioning
Positioning is the act of designing the companysoffering and image to occupy a distinctive place inthe target markets mind. Positioning is what you do to the mind of theprospect.Positioning is called as renting mind space Better to be first than the best.
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Different Positioning Strategies Attribute positioning: Hero Honda Splendors the largestselling bike in the world, Pilsburys Chakki Fresh Atta,Safola low fat contentBenefit positioning: Airtel network coverage , Safolapromises health
Use or application positioning: Apple iPhoneUser positioning: Allen Sollys Friday Dressing & nowMy World, My WayCompetitor positioning: Rin vs. Tide
Product category positioning: Fair & Handsome fairness cream only for menQuality or price positioning: Bajaj Automobiles Valuefor money . Big Bazaar Isse Sasta aur Achha KahinNahin
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You Can Catch me E-mail: [email protected]: +91 99373 42747
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Product ManagementThe new competition is not between what companiesproduce in their factories, but between what they addto their output in the form of packaging, services,advertising, customer advice, financing, deliveryarrangements, warehousing and other things thatpeople value.
Theodore LevittProduct Levels: other wise known as customer
value hierarchy with each level adding more value.
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Product Level: BikeCore benefit: Communication
Basic product:Features: fuel efficiency, speedDesign: masculine, feminine, executive,trendyBrand name: Hero, Bajaj, Suzuki, Yamaha
Expected product:Disc brakeBetter Graphic designBetter headlightTubeless tire
Alloy wheel Augmented product:
Rear & front disc brakeDigital meter Better seating
Potential product:Installation of GPS system
Automatic mode driving
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Product Classification
CONSUMERPRODUCT INDUSTRIALPRODUCTINTANGIBLEPRODUCT
Capital item Spare parts
Suppliesitem
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Consumer Products1. CONVINIENCE
a.Staple
c.
b.Emergency
2. SHOPPING3. SPECIALITY 4. UNSOUGHT
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Industrial Products
MATERIAL PARTS1. RAWMATERIALS
1.b)NATURALPRODUCTS
1.a) FARMPRODUCTS
MANUFACTUREDMATERIALS
COMPONENT PARTS
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Industrial Products
CAPITAL ITEM
FIXEDEQUIPMENT
INSTALLATION
OFFICEEQUIPMENT
PORTABLEFACTORYTOOL
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Industrial Products
SUPPLIES &SERVICES
OPERATING SUPPLIES
REPAIR & MAINTENANCEITEM
MAINTENANCE SERVICES
BUSINESS ADVISORYSERVICES
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Product Mix A product mix or product assortment is the setof all products & items a particular seller offersfor sale.
A companys product mix has a certain width,length, depth and consistency.
The width of product mix refers to all the product linesthe company carries.The length refers to the total number of items in the mix.The depth refers to the total number of variants offered of each product in the line.The consistency refers to how closely related thevarious product lines are in end use, productionrequirements, distribution channels, or some other way.
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PRODUCT MIX WIDTH AND PRODUCT LINELENGTH
PRODUCT MIX WIDTH
P R O D U C T L I N E
L E N G T H
PersonalCare Soap
DoveLuxPearsLirilRexonaBreeze
MotiLifebouyHammam
Detergent
Surf RinSunlightWheel
Ala
Food Items
Kissan(Jam,Ketchup,Squash)
Annapurna(Atta & Salt)Knorr Soup
ModernBread
Skin Care
Fair n LovelyLakmePondsVaseline
Aviance
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PRODUCT MIX WIDTH AND PRODUCT LINELENGTH FOR HULPRODUCT MIX WIDTH
P R O D U C T L I N E
L E N G T H
Hair Care
SunsilkClinic plusClinic AllClear Dove
Oral care
PepsodentClose-up
Deo Spray
AxeRexonaPondsDenim
Beverage
Brooke BondBruLipton
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Product LineProduct line is a group of products that are relatedbecause they function in a similar manner, are sold to thesame customer groups are marketed through the sametypes of outlets or fall within given price range.Product line length refers to the number of items in the
product line.Product line stretching occurs when a companylengthens its product line beyond its present range.Product line filling involves addition of new items within
the existing range of the product line.Product line featuring refers to product items to be used asshow piece to attract customer for the whole product rangeProduct line pruning refers to removal of particular productfrom the line.
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Product Line StretchingPulsar 220
Pulsar 150
Pulsar 135
Pr
ice
Quality
High
High
Low
Low
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Product Line Featuring
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Brand
A brand is a name, term, sign, symbol, or design or a combination of these, that identifies the maker of seller of a product or services and differentiate themfrom those of competitors.
Philip Kotler Brand mark is the part of the brand, which appearsin the form of symbol, design or distinctive coloringor lettering
When a brand mark is registered and legalized itbecomes Trade mark .
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Brand Equity Brand equity: The value premium that acompany realizes from a product with a recognizable or brand name as compared to its generic or unbrandedequivalent.Brand equity is the unique set of brand assets & liabilitiesthat is linked to a brand.
David Aaker David Aaker has proposed five assets underlying brandequity.
Brand loyaltyName awarenessPerceived qualityBrand association
Other assets like patent, trade mark
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BrandIndividual Brand Name: Each product has a specialand unique brand name.Family Brand Name: It is limited to one line of product.
Umbrella Brand: For all products the name of thecompany or the manufacturer.Combination Device: When an individual brandname is attached to umbrella brand is known as
Combination Device.Private or Middlemens Brand: Distributors,wholesalers, large retailers sell the products under their own brand name.
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Generic Brand A brand that becomes generic becomes a productcategory.
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Brand Awareness: Relates to the number of personwho recognize the brands significance & who areconscious of the promise, which the symbol express.Three type of awareness are
Top-of-the mind awarenessUnaided awareness
Assisted awarenessBrand Personality: reflects the consumer perceptionabout the brand, who personify it.
Brand Image: It is the meaning consumers give to aproduct based on the perceived value it delivers. It isa set of beliefs held about a specific brand. It is thetotality of consumer perceptions about the brand.
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Brand Development Strategy DecisionLine Extension : when a company introducesadditional items in the same product category under the same brand name.Brand extension : Use of existing brand name to
launch a product in a new category..Product Flanking : It refers to the introduction of different combinations of products at different prices,and package size to tap the market opportunities.
Multi Brands : A company will often introduceadditional brands in the same categoryNew Brands : When a company launches products ina new category.
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Top 10 Global Brands 2011
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Top Indian Brands Globally
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Top 10 Indian BrandIndiaRank(2011) Brand Name Category
2010RANK
1 AmulMilk powder/Milk/Ice-cream 73
2 Kingfisher Beer/Full-service
Airlines 140
3 Big Bazaar Retail 2484 ICICI Bank Bank 182
5State Bank of India(SBI) Bank 226
6 Airtel Mobile Service Provider 3017 LIC Insurance 2908 Cafe Coffee Day Coffee 3969 Titan Watch 292
10 Lakme Cosmetics 289
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