http://vustudents.ning.com/ (CHAPTER-1) PRINCIPALE PRINCIPALE OF MARKETING
MARKETING: It is the delivery of csto!er s"tisf"ctio# "t " $rofit% &r It is " $rocess of 'etti#' the ri'ht $rodcts to the ri'ht $eo$le "t the ri'ht $rice "#d "t the ri'ht $l"ce "#d ti!e ith the ri'ht $ro!otio#% IMP*E MARKETING +TEM
COMMUNIKCATION !"oduct/se"vice !RODUCER / SE%%ER
CONSUMER Mone# FEEDACK
&ME ,AIC & MARKETING: co#sist of . P: (i) (i)
PR&/ PR&/0C 0CT: T:
h"t h"t "re "re yo yo sell selli# i#' ' (it (it !i'h !i'htt 2e $rod $rodc ctt or serv servic ices es))
(ii) (ii)
PRIC PRICE: E: h"t h"t is yor yor $ric $rici# i#' ' str" str"te te'y 'y%%
(iii (iii))
P*AC P*ACE: E: $l"ce4
(iv) (iv)
PR&M& PR&M&TI TI&N: &N: Ho Ho "re "re yo yo tell telli#' i#' co#s co#s!e !ers rs "2o "2ott yor yor $rod $rodct4 ct4
(v)
P&I P&ITI TI&N &NIN ING: G: h"t h"t $l"ce $l"ce do yo yo "# "#tt yo yorr $ro $rod dct ct to hold hold i# the co#s!er5s !i#d:
(vi)
PER&N PER&NA* A* RE*A RE*ATI&NH TI&NHIP: IP: Ho "re yo 2ildi#' 2ildi#' rel"tio# rel"tio#shi$ shi$s s ith yor t"r'et co#s!ers4
(vii) (vii)
PE&P*E PE&P*E 6 PR&IT PR&IT: : P2lic P2lic ho c"# 2e "ffect "ffected ed 2y or'"#i7 or'"#i7"tio "tio# # "#d "#d to h"ve so!ethi#' v"les i# retr# of $rodct or service%
Ho Ho "re "re yo yo dis distr tri2 i2t ti# i#' ' yo yorr $rod $rodc ctt to to 'et 'et itit i#t i#to o the the !"r3 !"r3et et
REA&N &R T0/+ING MARKETING (i) (i)
It $l"ys "ys "# "# i!$ i!$o ort" rt"#t rol role i# i# so societ ciety y%
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http://vustudents.ning.com/ (ii) (iii (iii)) (iv) (iv)
It is is vit"l to to 2 2si#ess% It of offers fers ot otst st"# "#di di#' #' c"r c"ree eerr o$$o o$$ort rt# #it itie ies% s% It "ffe "ffect cts s yo yor life life ever every y d"y d"y%% (CHAPTER-8) MARKETING PROCESS CORE MARKETING CONCEPTS
MARKETING PROCESS :
There "re cert"i# f"ctors th"t c"# i#fle#ce the !"r3eti#' $rocess ter!ed "s9 "ctors "#d forces i# !"r3eti#' syste!5% They "re: (i) (i)
0PP 0PP*I *IER ER: : "re "re the the fir! fir!s s "#d "#d $ers $erso# o#s s th"t th"t $ro $rovi vide de the the res reso orc rces es to to $rodce 'oods "#d services%
(ii) (ii)
MARK MARKET ETIN ING G INTE INTERM RME/ E/IA IARI RIE E:: i#cl i#cld de e v"ri v"rio os s !idd !iddle le!e !e# # "#d "#d distri2tio# fir!s "s ell "s !"r3eti#' services "'e#cies%
(iii (iii))
C0T&MER MER: 0s" s"lly co#sist ist of 'over#!e#t "#d i#ter#"tio#"l !"r3et%
(iv) (iv)
C&MPE C&MPETIT TIT&R &R: : "re s"ll s"lly y co#s co#side idere red d thos those e co!$" co!$"#ie #ies s "lso "lso serv servi#' i#' " t"r'et !"r3et ith si!il"r $rodcts "#d services%
co# co#s!e !er9
i#d i#dstr stri"l i"l
rese eseller ler9
CORE MARKETING CONCEPTS :
NEE/;ANT;/EMAN/:
PPR&/0CT AN/ ER
"l "lity ity !"#"' #"'e!e# e!e#tt) is "# "$$ro"c "$$ro"ch h i# hich hich "ll the co!$"#y5 co!$"#y5s s $eo$le $eo$le "re i#volved i# co#st"#tly co#st"#tly i!$rovi#' the >"lity of $rodcts9 services "#d !"r3eti#' $rocess% E?CHANGE;TRANACTI&N AN/ RE*ATI&NHIP: RE*ATI&NHIP:
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http://vustudents.ning.com/ E@ch"#'e: is "ct of o2t"i#i#' " desired o2ect fro! so!eo#e 2y offeri#' so!ethi#' i# retr#% Tr"#s"ctio#: It is " tr"de v"les 2etee# to $"rties% (CHAPTER-B) MARKETING FUNCTIONS CUSTOMER RELATIONSHIP MANAGEMENT (CRM) MARKETS:
A !"r3et is the set of "ct"l "#d $ote#ti"l 2yers of " $rodct% MARKETING 0NCTI&N: There "re !"r3eti#' f#ctio#s th"t "re $erfor!ed i# !"r3eti#' these "re: i% ii% iii% iv% v% vi% vii% viii%
,yi#': (r" !"teri"l for $rodcts or fi#"l 'oods for frther reselli#') elli#': ($rodcts to s"tisfy csto!ers #eeds "#d "#ts) Tr"#s$orti#': (!ovi#' $rodcts fro! $rodctio# $oi#t to selli#' $oi#t) tori#': ("rehoses) for frther distri2tio# of $rodcts st"#d"rdi7i#' "#d 'r"di#' (to $rovide !ore >"lity "#d services for ch"r!) fi#"#ci#': ($rovide credit f"cility for ch"##el !e!2ers i%e% holes"lers;ret"iler ris3 t"3i#': for #e $rodcts secri#' !"r3eti#' i#for!"tio#: "2ot co#s!ers9 co!$etitors9 ch"##el !e!2er for !"3i#' !"r3eti#' decisio#%
MARKETING MANAGEMENT: It is the "rt "#d scie#ce of choosi#' t"r'et !"r3ets "#d 2ildi#' $rofit"2le rel"tio#shi$s ith the!% C0T&MER RE*ATI&NHIP MANAGEMENT (CRM) It is the $rocess to 2ild "#d !"i#t"i# $rofit"2le csto!er rel"tio#shi$s 2y deliveri#' s$erior csto!er s"tisf"ctio#% (i##i#' " #e csto!er is s"lly D-1 ti!es !ore costly th"# ret"i#i#' "# e@isti#' o#e hich is !ore $rofit"2le the lo#'er yo 3ee$ the!%) ,AIC G&A* & CRM i% ii% iii% iv% v%
Provide 2etter csto!er service M"3e c"ll ce#ters !ore efficie#t Hel$ s"les st"ff close de"ls f"ster i!$lify !"r3eti#' "#d s"les $rocess /iscover #e csto!ers
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Redces the r"te of csto!er defectio#
(CHAPTER-F) EVOLUTION OF MARKETING MARKETING PHI*&&PHIE: There "re sever"l "lter#"tive $hiloso$hies th"t c"# 'ide or'"#i7"tio#s i# their efforts to c"rry ot their !"r3eti#' 'o"ls% hich "re4 i.
The $rodctio# co#ce$t:
Co#s!er f"vor $rodcts th"t "re "v"il"2le "#d hi'hly "fford"2le
ii%
The $rodct co#ce$t: Co#s!er f"vor >"lity $rodcts th"t "re re"so#"2ly $riced "#d therefore little $ro!otio#"l effort is re>ired%
iii%
The selli#' co#ce$t: Co#s!er ill #ot 2y $rodct #less or'"#i7"tio# !"3es e@tr" ordi#"ry $ro!otio#"l efforts sch "s to sell i#sr"#ce $olicies%
iv%
The !"r3eti#' co#ce$t: It holds th"t "chievi#' or'"#i7"tio#"l 'o"ls de$e#ds o# deter!i#i#' the #eeds "#d "#ts of t"r'et !"r3ets%
v%
The soci"l !"r3eti#' co#ce$t: It holds th"t the or'"#i7"tio# shold deter!i#e the #eeds9 "#ts "#d i#terests of t"r'et !"r3et%
(CHAPTER-D) MARKETING CHALLENGES IN THE 21 ST CENTURY %
"%
Porter’s 5 or!es "o#e$ o !o"%et&t&o' :
(i) (ii) (iii) (iv) (v) A%
Thre"t of #e e#tr"#ts% ,"r'"i#i#' $oer of 2yers Thre"t of s2stitte ,"r'"i#i#' $oer of s$$liers% Riv"lry "!o#' co!$eti#' fir! i# i#dstry
THE IT REVOLUTION :
(i)
Tech#olo'ies for co##ecti#'% I#ter#et co##ecti#' ith csto!ers% I#ter#et co##ecti#' ith others i# the co!$"#y% E@tr"#ets co##ecti#' ith str"te'ic $"rt#ers ; s$$ler%
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,%
(ii)
Co##ectio#s ith csto!ers% Thro'h tele$ho#e9 !"il-order9 3ios3 set% I#ter#et /irect ch"##els (A!"7o#%Co!)
(iii)
Co##ectio#s ith !"r3eti#'5s $"rt#ers% M"r3eti#' #o lo#'er h"s sole o#ershi$ of csto!er i#ter"ctio#% $$ly ch"i# !"#"'e!e#t% tr"te'ic $"rt#ers%
(iv)
Co##ectio#s ith the orld "ro#d s% ir!s "re ch"lle#'ed 2y i#ter#"tio#"l co!$etitors i# their o#ce s"fe do!estic !"r3et% Co!$"#ies "re #ot o#ly e@$orti#' 2t 2yi#' !ore co!$o#e#ts fro! "2o"rd% /o!estic"lly $rch"sed 'oods "#d services "re hy2rids (ith co!$o#e#ts co!i#' fro! "#ly i#ter#"tio#"l sorces)
RAPI GLOALISATION :
"ster co!!#ic"tio# "#d tr"#s$ort"tio# orei'# co!$etitors% /el"y t"3i#' ste$s to"rd i#ter#"tio#"li7i#' (Ris3) C%
THE CHANGING *ORL ECONOMY :
/%
THE CALL FOR MORE ETHICS AN SOCIAL RESPONSIILITIES :
(i) (ii) (iii) (iv) (v) (vi) (vii)
Hi'h $rices Hi'h costs of distri2tio# Hi'h "dvertisi#' "#d $ro!otio# co"st% E@cessive !iddle !"# 'ross $rofit !"r'i# /ece$tive $r"ctices (f"ctory9 hole s"le) Hi'h $ressre selli#' $eo$le% 0#s"fe $rodcts%
E% THE NE* MARKETING LAN SCOPS % The #e !"r3eti#' l"#dsc"$e is " dy#"!ic9 f"st-$"ced "#d evolvi#' f#ctio# of "ll these ch"#'es "#d o$$ort#ities%
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http://vustudents.ning.com/ (CHAPTER-) STRATEGIC PLANING AN MAKETING PROCESS
1% STRATEGIC PLANNING : The $rocess of develo$i#' "#d !"i#t"i#i#' " str"te'ic fit 2y the or'"#i7"tio#5s 'o"ls "#d c"$"2ilities "#d its ch"#'i#' !"r3eti#' o$$ort#ities is c"lled str"te'ic $l"##i#'% 8% TACTICAL PLANNING : It is co#cer#ed ith tr"#sl"te the 'e#er"l 'o"ls "#d $l"#s develo$ed 2y str"te'ic !"#"'ers i# to o2ective th"t "re !ore s$ecific "ctiv"tes% B% OPERATIONAL PLANNING : or'"#i7"tio#%
It is sed to s$ervise the o$er"tio#s of the
CHARACTERISTICS OF A STRATEGIC PLAN :
"% 2% c% d%
It e#cor"'es !"#"'e!e#t to thi#3 "he"d syste!"tic"lly% It forces !"#"'ers to cl"rify o2ectives "#d $olicies% It le"ds to 2etter coordi#"tio# of co!$"#y efforts% It $rovides cle"rer $erfor!"#ce st"#d"rds for co#trol%
STRATEFGIC PLANING PROCESS :
"% 2% c% d%
t"ti#' " cle"r co!$"#y !issio#% etti#' s$$orti#' co!$"#y o2ective% /esi'#i#' " so#d 2si#ess $ortfolio% Pl"##i#' "#d coordi#"ti#' !"r3eti#' "#d other f#ctio#"l str"te'ies%
COMPANY’S MISSION : (1) A MISSION STATEMET :
"% 2% c% d% e% (8)
,e re"listic ,e s$ecific it the !"r3et e#viro#!e#t i#dic"te disti#ctive co!$ete#ce ,e !otiv"ti#'
SETTING COMPANY O+ECTIVES AN GOALS,
This seco#d ste$ i# the str"te'ic $l"##i#' $rocess re>ires the !"#"'er to set co!$"#y 'o"ls "#d o2ectives% (B)%
ESIGNING THE USINESS PORTFOLIO,
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http://vustudents.ning.com/ It is the collectio# of 2si#ess "#d $rodcts "#d !"3e $ the co!$"#y%
(CHAPTER-.) MARKETING PROCESS
SUs The str"te'ic 2si#ess #it is " #it of the co!$"#y th"t h"s " se$"r"te !issio# "#d o2ectives% EVELOPING GRO*TH STARATEGIES,
(i) M-r.et %e'etr-t&o', ch"#'i#' i# "#y "y%
M"3i#' !ore s"les to $rese#t csto!ers ithot
(ii) MARKET EVELOPMENT : A str"te'y for co!$"#y 'roth 2y ide#tifyi#' "#d develo$i#' #e !"r3ets for crre#t co!$"#y $rodcts (iii) PROUCT EVELOPMENT : A str"te'y for co!$"#y 'roth 2y offeri#' !odified or #e $rodcts to crre#t !"r3ets% (iv) IVERSIFICATION : A str"te'y for co!$"#y 'roth 2y st"rti#' $ or "c>iri#' 2si#esses otside the co!$"#y5s crre#t $rodcts "#d !"r3ets%
(CHAPTER-) MARKETING PROCESS MARKETING PRoCESS : It is the $rocess of "#"ly7i#' !"r3et o$$ort#ities9 selecti#' t"r'et !"r3ets9 develo$i#' the !"r3eti#' !i@9 "#d !"#"'i#' the !"r3eti#' effort
=%
*/-t -re t/e ste%s &' "-r.et&'0 4
A% (1)% ANALYING MARKETING OPPORTUNITIES : M"r3eti#' !"#"'er #it "#"lyses the lo#'-r# o$$ort#ities i# the !"r3et to i!$rove the 2si#ess #it5s $erfor!"#ce% (8)
SELECTING THE TARGET MARKET :
(i) M-r.et se0"e't-t&o': It is the $rocess of dividi#' !"r3et i#to disti#ct 'ro$s of 2yers ith differe#t #eeds ch"r"cteristic or 2eh"vior% (ii) M-r.et t-r0et&'0: It is the $rocess of ev"l"ti#' e"ch !"r3 se'!e#ts "ttr"ctive#ess "#d selecti#' o#e or !ore se'!e#ts to e"ter%
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http://vustudents.ning.com/ (iii) M-r.et %os&t&o'&'0 : It is "rr"#'i#' for " disti#ctive "#d desir"2le $l"ce rel"tive to co!$eti#' $rodcts i# the !i#ds of t"r'et co#s!ers% (B)
EVELPING THE MARKETING MI :
(i) M-r.et&'0 M&3 : It is the set of co#troll"2le !"r3eti#' v"ri"2les th"t the fir! 2le#ds to $rodce the res$o#se it "#ts i# the t"r'et !"r3et%
(F)
MANAGING THE MARKETING EFFORT
"% 2% c% d%
!"r3eti#' "#"lysis !"r3eti#' $l"##i#' !"r3eti#' i!$le!e#t"tio# !"r3eti#' co#trol
i% ii% iii% iv%
set s$ecific 'o"ls (hy do e "#t to "chieve) !e"sre $erfor!"#ce (h"t is h"$$e#i#') ev"l"te $erfor!"#ce (hy is it h"$$e#i#') t"3e corrective "ctio# (h"t shold e do "2ot it)
OPERATING CONTROL : It i#volves chec3i#' o#'oi#' $erfor!"#ce "'"i#st the "##"l $l"# "#d t"3e corrective "ctio# he# #ecess"ry STRATEGIC CONTROL : It i#volves loo3i#' "t hether the co!$"#y5s 2"sic str"te'ics "re ell !"tched to its o$$ort#ities MARKETING EPARTMENT ORGANIATION
i%
F4'!t&o'-$ or0-'&-t&o' : here differe#t !"r3eti#' "ctive ities "re he"ded 2y " f#ctio#"l s$eci"list
ii%
Geo0r-%/&! or0-'&-t&o': here s"les "#d !"r3eti#' $eo$le "re "ssi'#ed to s$ecific9 co#tires9 re'ios or districts
iii%
Pro#4!t M-'-0e"e't or0-'&-t&o' : here " $rodct !"#"'er develo$s " co!$lete str"te'y for " $rodct or 2r"#d%
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MARKET CUSTOMER MANAGEMENT ORGANIATION : here " s$ecific !"r3et $l"# is develo$ed for e"ch s$ecific !"r3et ; csto!er%
v%
COMINATION PLANE : here l"r'e co!$"#ies !"#y ti!es co!2i#e ele!e#ts of "#y of the "2ove%
(CHAPTER-)
MARKETING ENVIRONMENT
A co!$"#y5s !"r3eti#' e#viro#!e#t co#sists of the "ctors "#d forces otside !"r3eti#' the "ffect !"r3eti#' !"#"'e!e#t5s "2ility to develo$ "#d !"i#t"i# sccessfl rel"tio# shi$ ith its t"r'et csto!ers MICRO ENVIRONMENT MACRO ENVIRONMENT
16
MICRO ENVIRONMENT : i% the co!$"#y itself (i#cldi#' de$"rt!e#ts) ii% s$$liers ii% !"r3eti#' ch"##el fir!s iii% csto!er !"r3ets iv% co!$etitors v% $2lics
THE COMPANY’S MICROENVIRONEMNT :
I% II% III%
The co!$"#y $$liers M"r3et i#ter!edi"ries (resellers)
P/7s&!-$ #&str&84t&o' &r"s : It hel$s the co!$"#y to stoc3 "#d !ove 'oods fro! their $oi#ts of ori'i# to their desti#"tio#s M-r.et&'0 Ser9&!e A0e'!&es : It hel$ the co!$"#y t"r'et "#d $ro!ote its $rodcts% FINANCIAL INTERMEIARIES :
It hel$ fi#"#ce tr"#s"ctio# "#d e#sre "'"i#st ris3s
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26
MACRO ENVIRONMENT
THE C&MPAN+5 MACR& EN
(CHAPTER-11)
Marketing Information System: Marketing information is a critical element in eective marketing as a result of the trend toward global marketing, the transition from buyer needs to buyer wants, and the transition from price to non-price competition. All rms operate some form of marketing information system. MI works in the following way! A well-designed marketing information system "MI# begins and ends with the user. $he MI ne%t develops information and helps managers to use it more eectively. Marketing intelligence supplies marketing e%ecutives with everyday information about developments in the e%ternal marketing environment.
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http://vustudents.ning.com/ &inally, the marketing information system distributes information gathered from internal sources, marketing intelligence, and marketing research to the right managers at the right times. Marketing Intelligence: 'rovides the everyday information about environmental variables that managers need as the implement and ad(ust marketing plans.
Marketing Research: Marketing research links the consumer, customer, and public to the marketer through an e%change of information. f. Why to Conduct Business Research? Marketing )esearch is a ystematic * ob(ective process of designing, gathering, analy+ing * reporting information that is used to solve a specic problem. It 'rovides information for aid in making business related decisions, to Identify opportunities and generate * rene actions. It is important for the mangers for many decisions like! elps reduce risk inherent in decision-making 'rovides an important link to customers Allows implementation of the business concept nables managers to identify * understand stakeholders wants * needs and to develop appropriate strategies to meet these needs
Chapter -13
Uses of Marketing research:-
&. +. ,. -. . . 0. 2.
Me'su"ement o( m'")et potenti'*. An'*#sis o( m'")et sh'"e. Dete"min'tion o( m'")et ch'"'cte"istics. S'*es 'n'*#sis. p"oduct testing (o"ec'sting studies o( 1usiness t"ends Studies od competito"3s p"oducts.
Marketing research process:-
&. +. ,. -.
!"o1*em de(inition 'nd the "ese'"ch o14ectives Deve*oping the "ese'"ch p*'n Imp*ement'tion Inte"p"et'tion 'nd "epo"ting o( (indings
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http://vustudents.ning.com/ Objectives of research:1. Exploratory research:5he"e the o14ective is to g'the" p"e*imin'"# in(o"m'tion th't 6i** he*p to 1ette" de(ine p"o1*ems 'nd suggest h#potheses (o" thei" so*ution. 2. Descriptive research:5he"e the intent is to desc"i1e things such 's the m'")et potenti'* (o" ' p"oduct o" the demog"'phics 'nd 'ttitudes o( custome"s 6ho 1u# the p"oduct. . !as"al research:is "ese'"ch to test h#potheses '1out c'use7'nd7e((ect "e*'tionships. Developing the research plan:&. Dete"mining speci(ic in(o"m'tion needs +. 8'the"ing second'"# in(o"m'tion ,. !*'nning p"im'"# D't' co**ection #esearch $pproches:1. Observational research:5he"e in(o"m'tion is g'ined 1# o1se"ving "e*ev'nt peop *e9 'ctions9 'nd situ'tions. 2. %"rvey research:Is the g'the"ing o( p"im'"# d't' 1# 's)ing peop*e uestions '1out thei" )no6*edge9 'ttitudes9 p"e(e"ences9 'nd 1u#ing 1eh'vio".
.
Experi&ental research:Invo*ves the g'the"ing o( p"im'"# d't' 1# se*ecting m'tched g"oups o( su14ects9 giving then di((e"ent t"e'tments9 cont"o**ing "e*'ted ('cto"s9 'nd chec)ing (o" di((e"ence in7g"oup "esponses.
!ontact Metho's:&. M'i* uestionn'i"es +. Te*ephone inte"vie6ing ,. !e"son'* inte"vie6ing -. On*ine ;inte"net< . Compute" inte"vie6ing (hree 'ecisions of 'esigning a sa&ple:'. )ho is to 1e su"ve#ed ;6h't is sa&pling "nit <= *o+ &any peop*e shou*d 1e su"ve#ed;6h't sa&ple si,e <= 1. c. *o+ shou*d the s'mp*e 1e chosen;6h't sa&pling proce'"re <= in's of sa&ples:robability sa&plers > s'mp*ing e""o" c'n 1e me'su"ed '.
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/onprobability sa&ples > s'mp*ing e""o" c'nnot 1e me'su"ed.
!ons"&ers:A** individu'* 'nd househo*ds 6ho 1u# o" 'cui"e goods 'nd se"vices (o" pe"son'* consumption '"e te"med 's consume" 1eh'vio" )hy to st"'y cons"&ers behavior.:'sic o14ective o( stud#ing consume" 1eh'vio" is th't the (i"m needs to )no6 6ho 1u#s thei" p"oduct= ?o6 the# 1u#= 6hen 'nd 6he"e the# 1u#= 5h# the# 1u#= !ons"&er behavior:Its is the p"ocess th"ough 6hich the u*tim'te 1u#e" m')es pu"ch'se decisions. ositioning:A""'nging (o" ' p"oduct to occup# ' c*e'"9 distinctive9 'nd desi"'1*e p*'ce "e*'tive to competing p"oducts in the minds o( t'"get consume"s. %eg&entation:Dividing ' m'")et into distinct g"oups o( 1u#e"s on the 1'sis o( needs9 ch'"'cte"istics9 o" 1eh'vio" 6hi might "eui"e sep"'te p"oducts o" m'")eting mi@es. ro'"ct 'evelop&ent:A st"'teg# (o" comp'n# g"o6th 1# o((e"ing modi(ied o" ne6 p"oducts to cu""ent m'")ets segments. Market 'evelop&ent:A st"'teg# (o" comp'n# g"o6th 1# identi(#ing 'nd deve*oping ne6 m'")ets segments (o" cu""ent comp'n# p"oducts.
Mo'el of cons"&er behavior:1.
Marketing an' other sti&"li
2.
M'")eting !"oduct !"ice !*'ce !"omotion Othe" Economic Techno*og# !o*itic'* Cu*tu"'*
0"yers 0lack box
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u#e" ch'"'cte"istics u#e" decision p"ocess
0"yer response
p"oduct choice "'nd choice De'*e" choice !u"ch'se timing !u"ch'se 'mount
actors infl"encing cons"&er behavior :7 1.
!"lt"ral
Cu*tu"e Su1cu*tu"e ;n'tion'*ities9 "e*igions9 geog"'phic "egions< Soci'* c*'ss %ocial
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Re(e"ence g"oups F'mi*#
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Age 'nd *i(e7c#c*e st'ge Occup'tion Economic situ'tion %i(est#*e !e"son'*it# Se*(7concept psychological
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Motiv'tion !e"ception %e'"ning e*ie(s Attitudes 0"yer
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(ypes of b"ying behavior :7
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!o&plex b"ying behavior :7 Consume"s unde"t')e comp*e@ 1u#ing 1eh'vio" 6hen the# '"e high*# invo*ved in ' pu"ch'se 'nd pe"ceive signi(ic'nt di((e"ences 'mong 1"'nds. Dissonance-#e'"cing b"ying behavior :7 +. It occu"s 6hen consume"s '"e high*# invo*ved 6ith 'n e@pensive9 in("euent o" "is)# pu"ch'se9 1ut see *itt*e di((e"ence 'mong 1"'nds. *abit"al b"ying behavior :7 ,. It occu"s unde" conditions o( *o6 consume" invo*vement 'nd *itt*e signi(ic'nt 1"'nd di((e"ence. '. 5ariety-seeking b"ying behavior :7 Consume"s unde"t')e '"iet#7see)ing 1u#ing 1eh'vio" in situ'tions ch'"'cte"iBed 1# *o6 consume" invo*vement 1ut signi(ic'nt pe"ceived 1"'nd di((e"ences. 0"yer 'ecision process:
Need Recognition In(o"m'tion se'"ch Ev'*u'tion o( A*te"n'tives !u"ch'se decision !ost pu"ch'se 1eh'vio"
%tages in the $'option rocess:
$+areness :7 The consume" 1ecomes '6'"e o( the ne6 p"oduct9 1ut *'c)s in(o"m'tion '1out it. 6nterest :7 The consume" see)s in(o"m'tion '1out the ne6 p"oduct. Eval"ation :7 The consume" conside"s 6hethe" t"#ing the ne6 p"oduct m')es sense (rial:7 The consume" t"ies the ne6 p"oduct on ' sm'** sc'*e to imp"ove his o" he" estim'te o( its v'*ue $'option :7 The consume" decides to m')e (u** 'nd "egu*'" use o( the ne6 p"oduct.
0"siness &arket :7 It comp"ises '** the o"g'niB'tions th't 1u# goods 'd se"vices (o" use in the p"oduction o( othe" p"oducts 'nd se"vices th't '"e so*d9 "ented9 o" supp*ied to othe". !haracteristics of b"siness &arkets:-
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M'")et st"uctu"e 'nd dem'nd N'tu"e o( the 1u#ing unit T#pes o( decisions 'nd the decision p"ocess
0"siness b"yer behavior:-
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M'4o" t#pes o( 1u#ing situ'tions St"'ight "e1u#The 1u#e" "eco"de"s something 6ithout 'n# modi(ic'tions Modi(ied "e1u#777 The 1u#e" 6'nts to modi(# p"oduct speci(ic'tions9 p"ices9 te"ms9 o" supp*ie"s.
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!'"ticip'nts in the 1usiness 1u#ing p"ocess Use"s In(*uence"s u#e"s Decide"s 8'te)eepe"s M'4o" in(*uences on 1usiness 1u#e"s usiness 1u#e"s '"e su14ect to m'n# in(*uences 6hen the# m')e thei" 1u#ing decisions. Envi"onment'* F'cto"s O"g'niB'tion'* F'cto"s
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6nterpersonal actors:The 1u#ing cente" usu'**# inc*udes m'n# p'"ticip'nts 6ho in(*uence e'ch othe". 6n'ivi'"al actores:E'ch p'"ticip'nt in the 1usiness 1u#ing decision p"ocess 1"ings in pe"son'* motives9 pe"ceptions9 'nd p"e(e"ences. (he b"siness b"ying process:'. !"o1*em Recognition 1. 8ene"'* Need Desc"iption c. !"oduct speci(ic'tion d. Supp*ie" se'"ch e. !"opos'* so*icit'tion (. Supp*ie" se*ection g. O"de"7Routine Speci(ic'tion h. !e"(o"m'nce Revie6 6nstit"tional Markets:-
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http://vustudents.ning.com/ The Institution'* M'")ets consists o( schoo*s9 hospit'*s9 nu"sing9 home"s9 p"isons9 'nd othe" institutionsth't p"ovides goods 'nd se"vices to peop*e in. 7overn&ent Markets:The 8ove"nment M'")ets o((e"s *'"ge oppo"tunities (o" m'n# comp'nies9 1oth 1ig 'nd sm'**. /e+ task b"ying:A comp'n# 1u#ing ' p"oduct o" se"vice. 6nfl"encers:O(ten he*p de(ine speci(ic'tions 'nd '*so p"ovide in(o"m'tion (o" ev'*u'ting '*te"n'tives. 7atekeepers:Cont"o* the (*o6 o( in(o"m'tion to othe"s. Market seg&entation:Dividing ' m'")et into sm'**e" g"oups. Market (argeting:Ev'*u'ting e'ch m'")et segment3s 'tt"'ctiveness 'nd se*ecting one o" mo"e o( the m'")et segment3s to ente". 8evels of Market seg&entation:-
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Market seg&entation Identi(# 1'ses (o" segmenting the m'")et Deve*op segment p"o(i*es Market (argeting Deve*op me'su"e o( segment 'tt"'ctiveness Se*ect t'"get segments Market ositioning Deve*op positioning (o" t'"get segments Deve*op ' m'")eting mi@ (o" e'ch segment
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Mass Marketing:The t"'dition'* '"gument (o" m'ss m'")eting is th't it c"e'tes the *'"gest potenti'* m'")et9 6hich *e'ds to the *o6est costs9 6hich in tu"n c'n t"'ns*'te into eithe" *o6e" p"ices o" highe" m'"gins. %eg&ent Marketing:It o((e"s seve"'* 1ene(its ove" m'ss m'")eting. /iche Marketing:It is ' mo"e n'""o6*# de(ined g"oup9 usu'**# identi(ied 1# dividing ' segment into su1 segments. Micro Marketing:-
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http://vustudents.ning.com/ It inc*udes '** *oc'* m'")eting. It is the p"'ctice o( t'i*o"ing p"oducts 'nd m'")eting p"og"'ms to suit the t'stes o( speci(ic individu'* 'nd *oc'tions. %eg&enting cons"&er Markets:-
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8eog"'phic segment'tion Demog"'phic segment'tion Age 'nd %i(e7c#c*e st'ge 8ende" segment'tion Income segment'tion !s#chog"'phics segment'tion ;Dividing ' m'")et into di(e"ent g"oups 1'sed on soci'* c*'ss9 *i(est#*e < eh'vio"'* segment'tion ;dividing ' m'")et into g"oups 1'sed on consume" )no6*edge9 'ttitudes etc<
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#e9"ire&ents for Effective %eg&entation:&. Me'su"'1i*it#:7 Is the deg"ee to 6hich the siBe9 pu"ch'sing po6e"9 'nd p"o(i*es o( ' m'")et segment c'n 1e me'su"ed. +. Su1st'nti'*it#:7 It "e(e"s to the deg"ee to 6hich ' m'")et segment is su((icient*# *'"ge o" p"o(it'1*e. ,. Accessi1i*it#:7 It "e(e"s to the deg"ee to 6hich ' m'")et segment c'n 1e "e'ched 'nd se"ved. -. Di((e"enti'tion:7 It "e(e"s to the deg"ee to 6hich ' m'")et segment c'n conceptu'**# 1e distinguished 'nd h's the '1i*it# to "espond di((e"ent*# to di((e"ent m'")eting mi@ e*ements 'nd p"og"'ms. . Action A1i*it#:7 Its is the deg"ee to 6hich e((ective p"og"'ms c'n 1e designed (o" 'tt"'cting 'nd se"ving ' given m'")et segment.
Market (argeting 1.
Eval"ating Market %eg&ents:In this ' (i"m must *oo) 't th"ee ('cto"s: Segment siBe 'nd g"o6th9 segment st"uctu"'* 'tt"'ctiveness9 'nd comp'n# o14ectives 'nd "esou"ces. '. Undi((e"enti'ted m'")eting:7
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Using this st"'teg#9 ' (i"m might decide to igno"e m'")et segment di((e"enced 'nd go to the 6ho*e m'")et 6ith one o((e". Di((e"enti'ted M'")eting:7 Using this st"'teg#9 ' (i"m decides to t'"get seve"'* m'")et segments o" niches 'nd designs sep'"'te o((e"s (o" e'ch. Concent"'ted M'")eting:7 Using this st"'teg# 9 concent"'ted m'")eting9 is especi'**# 'ppe'*ing 6hen comp'n# "esou"ces '"e *imited.
Choosing ' M'")et7Cove"'ge st"'teg#:7 This st"'teg# is 1est depend in comp'n# "esou"ces. The 1est st"'teg# '*so depends on the deg"ee o( p"oduct v'"i'1i*it#. Soci'**# Responsi1*e T'"get M'")eting:7 Sm'"t t'"geting he*ps comp'nies to 1e mo"e e((icient 'nd e((ective 1# (ocusing on the segments th't the# c'n s'tis(# 1est 'nd most p"o(it'1*#. !ositioning (o" competitive Adv'nt'ge:7 !ositioning invo*ves imp*'nting the 1"'nd3s uniue 1ene(its 'nd di((e"enti'tion in custome"s mind.
2. !hoosing a positioning %trategy:Some (i"ms (ind it e's# to choose thei" positioning st"'teg#. . 6'entifying possible co&petitive $'vantages. 3. !hoosing the right co&petitive $'vantages. '. ?o6 M'n# di((e"ences to p"omote= 1. 5hich di((e"ences to p"omote= 4. %electing an overall positioning %trategy:Custome"s t#pic'**# choose p"oducts 'nd se"vices th't give them the g"e'test v'*ue. Thus9 m'")ete"s 6'nt to position thei" 1"'nds on the )e# 1ene(its th't the# o((e" "e*'tive to competing 1"'nds. . !o&&"nicating an' 'elivering the chosen position. The comp'n# must t')e st"ong steps to de*ive" 'nd communic'te the desi"ed position to t'"get consume"s.
PRO!C"!-
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http://vustudents.ning.com/ A product is anything that can be oered to a market for attention, acuisition, use, or consumption and that might satisfy a want or need. a# $e%els of Product and Ser%ices /#. "he core &roduct is the core, problem solving benets that consumers are really buying when they obtain a product or service 0#. "he actual &roduct may have as many as ve characteristics that combine to deliver core product benets. $hey are! a#. 1uality level. b#. &eatures. c#. 2esign. d#. 3rand name. e#. 'ackaging. 4#. "he augmented &roduct includes any additional consumer services and benets built around the core and actual products. Product Classi'cation I. Consumer Products 5onsumer products are those bought by nal consumers for personal consumption. Marketers usually classify these goods further based on how consumers go about buying them. 5onsumer products include convenience products, shopping products, specialty products, and unsought products. Con%enience &roducts are consumer products and services that the customer usually buys freuently, immediately, and with a minimum of comparison and buying eort. %amples include soap, candy, newspapers, and fast food. Sho&&ing &roducts are less freuently purchased consumer products and services that customers compare carefully on suitability, uality, price, and style.
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http://vustudents.ning.com/ S&ecialty &roducts are consumer products and services with uniue characteristics or brand identication for which a signicant group of buyers is willing to make a special purchase eort. %amples include specic brands and types of cars !nsought &roducts are consumer products that the consumer either does not know about or knows about but does not normally think of buying.
II. Industrial Products Industrial products are those purchased for further processing or for use in conducting a business. Ca&ital items are industrial products that aid in the buyer6s production or operations, including installations and accessory euipment. Installations consist of ma(or purchases such as buildings "factories, oices# and %ed euipment "generators, drill presses, large computer systems, elevators#. Indi%idual &roduct decisions a# Product (ttri)utes 2eveloping a product or service involves dening the benets that it will oer. $hese benets are communicated to and delivered by product attributes such as quality, features, style and design. i. Product *uality 1uality is one of the marketer6s ma(or positioning tools. ii. Product +eatures A product can be oered with varying features. iii. Product Style and esign Another way to add customer value is through distinctive product style and design. )# Branding 'erhaps the most distinctive skill of professional marketers is their ability to create, maintain, protect, and enhance brands of their products and services. i. Brand: A brand is a name, sign, symbol, or design, or a combination of these that identies the maker or seller of a product or service. http://vustudents.ning.com/
http://vustudents.ning.com/ ii. Brand e,uity is the value of a brand, based on the e%tent to which it has high brand loyalty, name awareness, perceived uality, strong brand associations, and other assets such as patents, trademarks, and channel relationships. iii. Selecting "he Brands -ame: electing a brand name is an important step. $he brand name should be carefully chosen since a good name can add greatly to a product7s success. 2esirable ualities of a good brand name include! /#. It should suggest something about the product7s benets and ualities. 0#. It should be easy to pronounce, recogni+e, and remember. 4#. It should be distinctive. 8#. It should translate easily into foreign languages. 9#. It should be capable of registration and legal protection. :nce chosen, the brand name must be protected. i%. S&onsorshi& o&tions for Branding: A manufacturer has four sponsorship options! /#. A manufacturers )rand /or national )rand# is a brand created and owned by the producer of a product or service "%amples include I3M and ;ellogg#. 0#. A &ri%ate )rand /or middleman0 distri)utor0 or store )rand# is a brand created and owned by a reseller of a product or service. 4#. A licensed )rand "a company sells it7s output under another brand name#. 8#. Co1)randing occurs when two companies go together and manufacture one product. Packaging 'ackaging involves designing and producing the container or wrapper for a product. $a)eling
http://vustudents.ning.com/ oer. -e21&roduct de%elo&ment: $he development of original products, product improvements, product modications, and new brands through the rm6s own )*2 eorts. Idea generation: $he systematic search for new-product ideas. Idea screening: screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible. Product conce&t: A detailed version of the new-product idea stated in meaningful consumer terms. Conce&t testing: $esting new-product concepts with a group of target consumers to nd out if the concepts have strong consumer appeal. Business analysis: A review of the sales, costs, and prot pro(ections for a new product to nd out whether these factors satisfy the company6s ob(ectives. Consumer (do&tion Process a# Stages in the (do&tion Process /. (2areness. In this stage the consumer is aware of the new product but lacks further information about it. 0. Interest. $he consumer is motivated to seek information about the new product. 4. 3%aluation. $he consumer determines whether or not to try the new product. 8. "rial. $he consumer tries the new product on a small scale to test its eicacy in meeting his or her needs. $rial can be imagined use of the product in some cases. 9. (do&tion. $he consumer decides to make use of the product on a regular basis. )# Indi%idual di4erences in the ado&tion of inno%ations /. Inno%ators. Innovators help get the product e%posure but are not often perceived by the ma(ority of potential buyers as typical consumers. 0. 3arly (do&ters. $his group serves as opinion leaders to the rest of the market. 4. 3arly Ma5ority . ome 48= of the market that is the >typical consumer> but likely to adopt innovations a little sooner. 8. $ate Ma5ority . $his group is skeptical and adopts innovations only after most of the market has accepted the product.
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http://vustudents.ning.com/ 9. $aggards. $his group is suspicious of change and adopts only after the product is no longer considered an innovation. C. Product $ife1Cycle Strategies After launching the new product, management wants the product to en(oy a long and happy life. Although it does not e%pect the product to sell forever, the company wants to earn a decent prot to cover all the eort a# Product de%elo&ment begins when the company nds and develops a new-product idea. b# Introduction is a period of slow sales growth as the product is introduced in the market. c# 6ro2th is a period of rapid market acceptance and increasing prots. d# Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. e# ecline is the period when sales fall o and prots drop.
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