GROUP 06

No Name Id
01 Md Rasel 13304149
02 Ansar ul Islam 13304137
03 Mafruha Jahan 13304126
04 Syed Mohammad Imran 13304143
05 Md Omar Faroque 13304148
06 Sarwar Alam 13304004
07 Arif Uddin 13304160

08 Mohammad Kaiser 13304069

09 Mohammad Ziauddin 13304014
10 Md Omar Faroque 13304148
11 Aktarozzaman Arman 13304090
 Product
A product is anything that can be offered to a
market for attention, acquisition, use or
consumption that might satisfy a want or need.

Includes physical objects, services, places,

organizations, and ideas
 Product Levels

Core Product

Facilitating Products

Supporting Products

Augmented Products
 Core Product
What the buyer is really buying

Facilitating Products
Goods or services that must be present for the guest to use the core
product
Supporting Products
Extra products offered to add value to the core product and help to differentiate it
from the competition

Augmented Product
The augmented product includes accessibility, atmosphere, customer
interaction with the service organization, customer participation, and
customers’ interaction with each other.
Brand
A brand is a name, term, sign, symbol,
design, or a combination of these
elements that is intended to identify the
goods or services of a seller and
differentiate them from competitors
 Perceived
Perceived Quality
Quality Name
Name Awareness
Awareness
Strong
Equity
Strong Brand
Brand High
Equity
High Brand
Brand
Association
Brand
Association Loyalty
Brand
Loyalty
Names
Brand Names
Brand
of
of
Identification Attributes
Advantages
Identification Attributes
Advantages
Quality
Quality && Value
Value Consistency
Consistency
Brand Equity
Brand positioning
Brand Portfolios
Managing Brands
 New Product Development
Marketing
Strategy Business
Development Analysis

Concept
Development Product
and Testing Development

Idea
Screening Market
Testing

Idea
Generation
Commercialization
 Product Life Cycle

Sales and
Profits ($) Sales

Profits

Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments ($)
Price

Price is the amount of money charged for a good or

service.

Price is the sum of the values consumers exchange

for the benefits of having or using the product or
service.
Factors to Consider When setting Prices.

External Factors
Internal Factors
Pricing  Nature of the
 Marketing Decision market and
Objectives demand
 Marketing mix  Competition
strategy
 Other
 Organization for environmental
pricing factors
( Economy, govt.)
Marketing Objectives
 Survival
 Current profit
maximization
 Market share leadership
 Product quality
leadership
Marketing Mix Strategy
 Costs
 Cost subsidization
 Product design and
quality
 Promotion and
Distribution
 Market Demand
 Cross Selling
 Upselling
 Consumer Perception of
price and Value
 Demand Curves
A. Inelastic Demand -
Demand Hardly Changes With
a Small Change in Price.
Price P2
P1

Q2 Q1
Quantity Demanded per Period
B. Elastic Demand -
Demand Changes Greatly With
a Small Change in Price.
Price

P’2
P’1

Q2 Q1
Quantity Demanded per Period
General Pricing Approaches

 Cost Based Pricing

 Break Even Analysis and Target Profit Pricing
 Value Based Pricing
 Competition Based Pricing
Product
Product Customers
Customers
Cost
Cost Value
Value
Price
Price Price
Price
Value
Value Cost
Cost
Customer
Customer Product
Product
Value-Based Pricing Cost-Based Pricing
Value-Based Pricing
 Sealed-Bid
Sealed-Bid
Company
Company Sets
Sets Prices
Prices Based
Based on
on
?
What
What They
They Think
Think Competitors
Competitors
Will
?
Will Charge.
Charge.
Going-Rate
Going-Rate
Company
Company Sets
Sets Prices
Prices Based
Based on
on What
What
Competitors
CompetitorsAre
Are Charging.
Charging.
Setting
Setting Prices
Prices
Competition-Based Pricing
New Pricing Strategies

PrestigePricing
Market Skimming Pricing
Market Penetration Pricing
Existing Product Pricing

 Product Bundle Pricing

 Price Adjustment
Strategies
 Revenue Management
 Distribution Channels
 Bar pricing
Psychological Pricing

 Promotional Pricing
 Value Pricing
Initiating Price Changes

 Initiating price cuts

 Initiating price increases
 Buyer reaction to price changes
 Competitor reaction to price
changes
12-
Supply Chains and the Value Delivery
22 Network
Supply Chain Partners
 Upstream partners include the set of firms that supply
raw material, components, parts, information, finances, and
expertise to create a product or service.

 Downstream partners include the marketing channels or

distribution channels that look forward toward the customer.
12-
Supply Chains and the Value
23
Delivery Network
Supply Chain Views
 Supply chain “make and sell” view includes the firm’s raw
materials, productive inputs, and factory capacity.
 Demand chain “sense and respond” view suggests that planning
starts with the needs of the target customer and the firm responds to
these needs by organizing a chain of resources and activities with
the goal of creating customer value.
The above two terms take a step-by-step, linear view of purchase-
production-consumption activities
The value delivery network is the firm’s suppliers, distributors,
and ultimately, customers who partner with each other to
improve the performance of the entire system.
12-
The Nature and Importance of
24
Marketing Channels
How Channel Members Add Value
 Channel members add value by bridging the major
time, place, and possession gaps that separate goods
and services from those who would use them.
12-
The Nature and Importance of
25
Marketing Channels
How Channel Members Add Value
 Producers use intermediaries because they create greater efficiency in
making goods available to target markets.
 Intermediaries offer the firm more than it can achieve on its own through
their contacts, experience, specialization, and scale of operations.
 From an economic view, intermediaries transform the assortments of
products into assortments wanted by consumers.
 Producers – narrow assortments of products in large quantities
 Consumers – broad assortments of products in small quantities
12-
The Nature and Importance of
26
Marketing Channels
How Channel Members Add Value
 Information: Gathering and distributing marketing research and
intelligence
 Promotion: Development and spreading persuasive communications about
an offer
 Contact: Finding and communicating with prospective buyers
 Matching: Shaping and fitting the offer to the buyer’s needs, including
activities such as manufacturing, grading, assembling, and packaging
 Negotiation: Reaching an agreement on price and other terms of the offer
so that ownership or possession can be transferred
 Physical distribution: Transporting and storing goods
 Financing: Acquiring and using funds to cover the costs of carrying out
the channel work
 Risk taking: Assuming the risks of carrying out the channel work
12-
The Nature and Importance of
27
Marketing Channels
Number of Channel Members
 Channel level refers to each layer of marketing intermediaries
that performs some work in bringing the product and its
ownership closer to the final buyer.
– Direct marketing channel has no intermediary levels; the
company sells directly to consumers.
– Indirect marketing channels contain one or more
intermediaries.
 From the producer’s point of view, a greater number of levels
means less control and greater channel complexity
Hospitality Distribution Channels

 Direct Booking
 Online Travel Agency (OTA)
 Global Distribution Systems
 Travel Agents
 Tour Wholesalers
 Hotel Representatives
 Tour Brokers,
 Motivational Houses
 Junket Reps
12-
29
Channel Behavior and Organization

Channel Behavior
 A marketing channel consists of firms that have partnered
for their common food, with each member playing a
specialized role.
 Channel conflict refers to disagreement over goals, roles,
and rewards by channel members.
– Horizontal conflict is conflict among members at the same channel level.
– Vertical conflict is conflict between different levels of the same channel.
12-
30 Channel Behavior and Organization

Conventional Distribution Systems

 Consist of one or more independent producers, wholesalers, and
retailers.
 Each seeks to maximize its own profits and there is little control
over the other members.
 No formal means for assigning roles and resolving conflict.
12-
31
Channel Behavior and Organization
Vertical Marketing Systems
 Vertical marketing systems (VMS) provide channel
leadership and consist of producers, wholesalers, and retailers
acting as a unified system and consist of:
– Corporate vertical marketing system integrates successive stages of
production and distribution under single ownership.
– Contractual vertical marketing system consists of independent firms
at different levels of production and distribution who join together
through contracts to obtain more economies or sales impact than each
could achieve alone. Most common form is the franchise organization
– Administered vertical marketing system has a few dominant channel
members without common ownership. Leadership comes from size and
power.
12-
32 Channel Behavior and Organization

Horizontal Marketing Systems

 Horizontal marketing systems include two or more companies at
one level that join together to follow a new marketing opportunity.
 Companies combine financial, production, or marketing resources to
accomplish more than any one company could alone.
Multichannel Distribution Systems
 Hybrid marketing channels exist when a single firm sets up two or
more marketing channels to reach one or more customer segments.
12-
33 Channel Behavior and Organization
A multichannel distribution system
12-
34 Channel Behavior and Organization

Hybrid Marketing Channels

 Advantages
 Increased sales and market coverage
 New opportunities to tailor products and services to specific needs of diverse customer segments

 Challenges
 Hard to control
 Create channel conflict
12-
35
Channel Behavior and Organization

Changing Channel Organization

 Disintermediation occurs when product or service
producers cut out intermediaries and go directly to final
buyers, or when radically new types of channel
intermediaries displace traditional ones.
The Promotional Mix

– Advertising
– Sales promotion
– Personal Selling
– Public Relation
– Direct Marketing
Integrated Marketing Communication

– The New Marketing Communications

Landscape
– The Shifting Marketing Communications
model
– The Need for integrated marketing
communications
– A vies of the communication process
Communication Process
Steps in Developing Effective
Communications
Setting the Total Promotional Budget
and Mix

– Affordable Method
– Percentage of Sales Method
– Competitive Parity Method
– Objective and Task Method
Push Vs Pull Strategies