Professional Documents
Culture Documents
Marketing
Marketing
Micro
Market/Demand, Consumer, Industry, Govt.
Policies, Supply Related Factors
According to the AMA ,Green Marketing is the marketing of
products that are presumed to be environmentally safe. Thus
green marketing incorporates a broad range of activities,
including product modification, changes to the production
process, packaging changes, as well as modifying advertising.
Other similar terms used are Environmental Marketing and
Ecological Marketing.
The marketing of "environmentally friendly" products; marketing
which takes into account environmental issues such as
wastefulness of the earth's resources, pollution, the release of
toxins into the atmosphere, etc.
Dividing a potential market into segments in order to
conquer them
Grouping potential buyers into different categories
having common desires.
Disaggregating a market into sub markets
BASES OF MARKET SEGMENTATION
Consumer characteristics: geographical,
demographical, psychographic
Consumer responses: benefits, usage, loyalty
Market segmentation
Market targeting- selecting one or more
segments to enter
Market positioning- for each target segment,
establish & communicate the distinctive
benefits of the co’s market offering.
Process where individuals decide whether, what,
when, where, how and from whom to purchase goods
and services.
Factors Influencing this behavior:
Cultural : culture, sub-culture, social class
Social : reference group, co-working group, family
Personal : age, occupation, life styles
Psychological : motivation, attitude, perception
Problem
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior
Stage Introduction Growth Maturity Decline
Sales Low sales Rapidly rising Peak sales Declining
Costs High Avg. Low Low
cost/customer cost/customer cost/customer cost/custom
er
Profits Negative Rising profits High profits Declining
Customer Innovators Early adopters Middle Laggards
s majority
8 STAGE MODEL:
Idea generation
Idea screening
Concept development and testing
Marketing strategy development
Business analysis
Product development
Market testing
Commercialization
Core benefit: service for which the customer is
buying
Basic product: converting a benefit into a basic
product
Expected product: a set of attributes and
conditions buyer normally expects
Augmented product: exceeding customer
expectation
Potential product: searching for new ways to
distinguish their product/offering
Convenience: frequently purchased, no evaluation,
nearby available, low in price, substitutes are
purchased due to unavailability
Shopping: not so frequently, not at nearby,
comparison is made, wait is there, high costs, 2 to 3
visits
Specialty: huge investments, once in life, family
involved, not instantly
Definition:
MR is a systematic gathering, recording and
analyzing the data about problems relating to the
marketing of goods and services.
Present
Present the
the Analyze
Analyze the
the
findings
findings information
information
Primary Data: freshly gathered for a specific
purpose by way of a surveys, experiments,
etc.
distributors, retailers
Direct Channel: when a producer and
ultimate consumer deal directly with
each other.
in a category brand
Involves the manufacturer using advertising
and promotion to persuade consumers to
ask intermediaries for the product, thus
inducing the intermediaries to order it.
Appropriate when there is high brand
loyalty
Exclusive distribution: severely limiting the no. of
intermediaries, used when the producer wants to
maintain control over the service level and outputs
offered by the resellers.
Selective distribution: involves the use of more than a
few but less than all of the intermediaries who are willing
to carry a particular product, used by established or new
co.’s seeking distributors
Intensive distribution: consists of the
manufacturer placing the goods or services
in as many outlets as possible, strategy is
generally used for items such as tobacco
products, snack products, for which the
consumer requires a great deal of location
convenience.
Vertical marketing system-comprises the producer, wholesaler(s)
and retailer(s), each acting as a separate business seeking to
maximize its own profits, even if it reduces profit as a whole.
Horizontal marketing system-in which two or more unrelated
companies put together resources to exploit an emerging
marketing opportunity. E.g.-post offices selling insurance and
mutual funds
Multichannel marketing systems-occurs when a single firm uses
two or more marketing channels to reach one or more
customer segments
Brand: a name, term, sign, symbol or design intended to
identify the goods or services of a seller and
differentiate it from the others.
Brand equity: the added value endowed to products and
services.
Brand image: perceptions and beliefs held by consumers
Brand line: all products or category extensions sold under
a particular brand name
Brand portfolio: the set of all brands/brand lines a
particular firm offers for sale to buyers in a particular
category
Market skimming pricing: prices of a product are
high and are lowered over time
Market penetration pricing: prices are set low
initially in order for a product to get deeply
penetrated into the market to drive higher sales
volume for price sensitive customers
Price discrimination: charging different prices for
the same goods or services to different
customers.
Warranty: formal statements of expected product
performance by the manufacturer, products under
it can be returned back to manufacturer or repair
centre for repair, replacement or refund, are legally
enforceable.
Guarantee: can be general or specific, reduce
buyer’s perceived risk, suggests that product is of
high quality and the co. & its service performance
are dependable, effective when the c. or product is
not known and when the quality is superior than
others
Consists of people, equipment and procedures
to gather, sort, analyze, evaluate and
distribute needed, timely and accurate
information to marketing decision makers.
Developed for internal company records,
marketing intelligence activities and
marketing research Role is to assess the
manager’s in the information needs
Internal records system supplies results data
MIS supplies happenings data.
Marketing intelligence system is a set of procedures &
sources mangers use to obtain everyday information
about developments in the marketing environment.
Collected by reading books, newspapers, and trade
publications; talking to customers, suppliers and
distributors
TOP CUSTOMERS
MANAGEMENT
TOP
CUSTOMERS
MANAGEMENT
(PROFIT CENTRE)
MODERN CUSTOMER
TRADITIONAL ORIENTED
APPROACH
(EBAY.COM)
Is an organization wide approach to continuously
improving the quality of all the organization’s
processes, products or services.
Product and service quality, customer satisfaction and
co. profitability are connected.
Higher levels of quality result in higher levels of
customer satisfaction which supports higher prices
and often lower costs.
Process of managing detailed information about
individual customers and carefully managing
all customer “touch points” to maximize
customer loyalty.
Touch point means when u encounters a
product or brand.
e.g. touch point for a hotel includes reservation,
check in and check out, room service
Basic marketing-salesperson simply sells the product
Reactive marketing-salesperson sells the product &
encourages the customer to call if having any questions
Accountable marketing-salesperson calls the customer to
check whether product is meeting expectations
Proactive marketing-salesperson contacts the customer from
time to time its suggestions about improved new products
Partnership marketing-co. works continuously with its large
customers to help improve their performance
Form-shape, size, physical structure
Features-varying features with basic feature
Performance quality-level at which the
product’s primary characteristics operate
Conformance quality-degree to which all the
produced units are identical and meet the
promised specification
Durability-measure of the product’s expected
operating life under natural or stressful
conditions, is a valued attribute for certain
products e.g. vehicles or kitchen appliances
Reliability-measure of the profitability that a
product will not malfunction or fail within a
specified time period
Repairability-measure of the ease of fixing a
product when it malfunctions or fail
Style-product’s look and feel to the buyer
Is an act or performance that one party can offer to another
i.e. essentially intangible & does not result in the ownership
of anything.
Characteristics:
Intangibility
Inseparability-produced and consumed simultaneously while
this is not true for physical goods
Variability- who provide and when and where it is provided so
it is highly variable
Perishability(ability to expire)-can’t be stored
Product
Place
Price
Promotion
People
Process
Physical Evidence
Pure click- those that have launched a web site
without any prior existence previously
e.g.- ebay
Brick and click- existing companies that have
added an online site for information or e-
commerce.
The overall evaluation of a company’s
strengths, weaknesses, opportunities and
threats is called SWOT analysis. It involves
monitoring the external and internal
marketing environment.
External environment analysis(opportunity and
threat):
A marketing opportunity is an area of buyer need &
interest in which there is a high probability that a co.
can profitably satisfy that need.
An environmental threat is a challenge posed by an
unfavorable trend or development that would lead, in
the absence of defensive marketing action, to lower
sales or profit.
Internal environment analysis (strengths and
weaknesses):It is the evaluation of its internal
strengths and weaknesses
Logical process that marketing follows.
This process consists of analyzing