Professional Documents
Culture Documents
Marketing Management Chapters 8-9-10-14-15
Marketing Management Chapters 8-9-10-14-15
Marketing Management Chapters 8-9-10-14-15
Product
Marketing Management - II
Importance
• At the heart of a great brand is a great PRODUCT.
• Superior Quality products provide unsurpassed value to customers.
Marketing Planning
(formulating an offering)
To meet
Target customers
(needs & wants)
Offering benefits
Customer judgement
(Product, Service, & Brand)
Product Differentiation
WHY ???
Products – A
differentiation
continuum
Product Design
the way consumers perceive a product’s
look, feel, & function
Significance – As competition intensifies, it
offers a potent way to differentiate and
position a company’s product
(Product Line)
• Up-selling
Product Line Length •
•
Cross-selling
Protect against economic downturn
(Influenced by Company’s Objectives) • Mkt Share & Growth – Long Product lines
• Profitability – Shorter Product Lines
• Excess manufacturing Capacity
• Sales Force Pressure
• Channel lobby
Product Line
• Up positioning
Lengthening
• Incremental profits
• Satisfying dealers
When
• Addressing Customer desire for variety
• Plugging holes to competition
Line • Meet genuine market need
Filling
(Adding more items
in the existing range)
Look out • Cannibalization of existing product
for
Includes all activities of • Buyer’s first encounter with the product
• Self-service
Factors for
• Consumer Affluence
growing use of
packaging • Company & Brand Image
• Innovation opportunity
• Brand Identification
• Convey information
Objectives
• Facilitate transportation, protection, storage
• Harmonize with other aspects
Use of
• Different meanings in different cultures & market segments
Colour • Different meanings and different emotions attached
• Colour can define a brand
New Realities
• Environmental impact
• Creativity
• Time & Resources
Can be a simple attached tag or • Identifies the product or a brand
Labeling
an elaborately designed graphic • Grades and describes the product
that is an inherent part of the • Promote the products through attractive graphics
package • Should follow Govt. rules
Service essentially tangible and does • Private Nonprofit – Colleges, Charities, Hospitals, Museums,
not result in ownership. It Foundations, Places of worship
may or may not be tied to a • A good part of business sector – Airlines, Banks, Insurance,
physical product Motion picture cos, Plumbing, Repair, Real estate, Parlours,
etc.
• A pure tangible good – Soap, Salt
• A tangible good with accompanying service – AC, RO
Categories of
• A hybrid offering – Restaurant
offerings
• Major Service with accompanying minor good – Airplane
• A pure service – Insurance, Counselling
“Difficult for the customer to judge the quality of “Service is an experience-oriented journey with
the services even after receiving them” credence qualities”
• Issues of scalability
• Work with larger groups
Service
Inseparability
• Work faster
• Train more service providers
• More awareness
Customer • Dislike multitude of service partners
empowerment • Power of social media
New Service • Swift response to customer complaints
Best Practices
• Service quality
• Cater high-value customers
• Manage customer complaints
Differentiatin
• Ease of ordering
• Speed & Timing of delivery
• Installation training
g Services •
•
Maintenance & Repair
Returns
SERVICE QUALITY MODEL
(Reliability, Responsiveness, Empathy, Assurance, Tangibles)
Building Strong Brands
Marketing Management - II
Name, term, sign, symbol or design or a Ultimate Aim – To create for customers, the company, and
combination of them, intended to identify the
Brand
its collaborators, a value (psychological) that goes beyond
goods/services of one seller or a group of the value created by the product/service aspects
sellers and to differentiate them from those of (functional/monetary) of the offering
competition (AMA)
Brandin Process of endowing a
product/service with the
•
•
Creating differences between products
Who, What, Why
g power of a brand
•
•
Organise knowledge that classifies decision making
Provide value to the firm
Role of
Customers
Brands Firms
• It is a promise - experience/benefits for loyalty • Predictability & Security of demand
• Means to set their expectations & reduce risk • Entry barriers to competitors
• Fulfil/Exceed expectations • Loyalty Customer willingness to pay more
• Simplify decisions • Impressions in customers’ mind
• Personal meaning & expression
Brand
Value
Brand Equity Brand Power
Monetary value of a brand & reflects Degree to which brand
the premium placed on company’s influences the way
valuation because of its ownership of customers think, feel & act
brand w.r.t the brand
Defining the Brand • 3 to 5 word articulation of heart & soul of the brand
Mantra • Closely related to the essence & core promise of the brand
(Focus on brand positioning & • Must economically communicate what brand is and what it is not
guide the way to help
customers think about the
brand)
y
• Important for a company that manages diverse brand portfolios
s
Brand • Reposition your old values
Repositioning • Brand New Repositioning (TATA Motors)
Ask
When • Leverage the existing Brand Equity
Brand • Contribute to the parent Brand Equity
Extensions •
•
Reduces risk for customers
Easy to convince marketing channels
•
•
Does the brand has significant power?
Is there a strong basis for fit?
Advantages • Savings in advertising cost • Will the extensions have optimum PoP
Use an established brand to • Opens a new market & PoD?
introduce a new product in a
• Facilitates new category extensions • Implications on parent Brand Equity &
different category or price tier
Profitability?
• Brand Dilution
Disadvantages • Opportunity to create a new brand
missed
Managing a Brand Crisis
BRAND VALUE CHAIN
Personal Selling
Marketing Management - II
Personal
• Involves direct interaction with buyers
• Purpose – Making presentations, answering questions, procuring orders • Customised
• Most effective tool at the later stages of the buying process • Relationship oriented
Selling •
•
Influence buyer preferences, conviction, and action
Ancient art
• Response oriented
Functions •
•
Gathering information – customers, competition, other actors & forces in the mktg environment
Develop & disseminate communication – Stimulate purchasing & foster brand loyalty
• Negotiate & reach agreements on price & other terms – Effecting transfer of ownership
• Place orders with manufacturers
• Acquire the funds to finance inventories at different levels in the mktg channel
• Assume risks connected with carrying out channel work
• Provide buyers with financing & facilitating payment
• Oversee actual transfer of ownership of goods from one organisation or person to another
FIVE MARKETING FLOWS IN MARKETING CHANNELS
Distributor
Distribution
reach customer segments in one area
Franchise Partners
Company
Channel Management
Decisions
Establishing • The customer aimed to reach Motivating Channel Power
Objectives • Product Characteristics Channel • Coercive
• Legal regulations and restrictions Members • Reward
• What other firms are doing • Legal
• Forge long-term relationships • Expert
• Referent