CO BRANDING AND INGREDIENT BRANDING

Co Branding: - Brand Bundling is when two or more brands are sold together  in some fashion. E.g. Gillette India jointly Promote Mach 3 Turbo systems. The main advantage of this is it may be convincingly positioned apart from virtue of multiple brands involved. It may generate great sales and may bring additional opportunities. The disadvantage in this lack of control if alignment of brand in the minds of the customer. A necessary condition both brands should have separate brand equity so that every brand should have their identity.

Ingredient  Branding: -  It creates brand equities for materials, products which are necessarily contained  with the branded products.

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PRICING

Product Line Pricing

The organizations generally develop more than one product under one product line in order to deo step pricing or separate pricing points which helps in having the range covering most of the market segment i.e.  A shirt priced at 50, 200 and at500. Etc.

Optional Feature Pricing

Many companies offer optional product with the main product and thus charge for them for e.g. a car being offered with the power window. Steering etc will be charged as additional optional feature of pricing.

Captive Product Pricing: -

It is that some product requires use of captive products and thus a high price is charged for the captive product. E.g. Razors are sold but razor blades are generally expensive that is setting high markups and thus leads to captive product Pricing

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SERVICE DIFFERENTIATION

• Ordering Ease:- online delievery
• Delivery:- This include speed, Accuracy and care attention. E.g. pizzas, film development, lexis quick response system with the information system of it’s suppliers and it’s clients.
• Installation: refers to making the work operational post sale of the equipment to the client.
• Customer Training: Training to customers like companies employees training to use new machinery.
• Customer Consulting:- Advice services that sellers offer to the buyers.
• Maintenance and Repair

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INDUSTRIAL GOODS CLASSIFICATION

Industrial Goods Classification

Materials and parts it can be further classified into Raw materials and Manufactured Material and parts

Raw material are classified into

• Farm products:- Marketing intermediaries, transportation, assembly, grading , storage. It should have little advertising and and promotional activity with exceptions. There  may be a case  wherein the commodity groups might do campaigning
• Natural Products:- are limited in supply and is kind of hard on the end of producer to move a greatbulk and low unit resource to the user. Here in the user depends upon the long term supply, materials . Also, price and delievery reliability  are the major factors influencing the selection of the supplier.

Manufactured Materials Parts are classified into

• Component materials: - the can be further fabricated into quick form . Price and Supplier reliability are the 2 important purchase factors.
• Component parts: - they enter into finished products and go through no further ```changes.

Capital Items: - They are the long lasting goods which facilitate developing and managing the finished product. They include 2 items that is Installations and Equipment

• Installations:- building , heavy equipment. Advertising  is Little, Design for post sale and are usually bought directly from the Producer. Services
• Equipement: - Factory Equipment and tools They sell Direct more often there are rarely any intermediaries, market is geographically dispersed, buyers are numerous and orders are small. Quality, Feature and service are the main consideration.

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CONSUMER GOODS CLASSIFICATION

Convenience goods

• Staples: Goods bought on Regular Basis
• Impulse: Goods bought without planning any search effort e.g. candy bars, potato chips
• Emergency goods:- These are the goods bought only when there is emergency.

Shopping goods: - Compared on the basis of suitability, quality, price, style. Homogenous shopping where the feature of the good is the same but the price is different and heterogeneous where services and features both are different and price is not really that important.

Speciality Goods: - Goods which have a unique brand identification where buyers make special effort to buy it.

Unsought Goods: - Goods which people do not generally think of buying. E.g. Smoke Detectors

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LEVELS OF THE PRODUCT

The core or the basic benefit which u get from the actual product .

Basic product:- Core benefit derived from the product

Expected product:- A set of attributes bundled together for a product thinking that customers would be interested in buying the product.

The augmented benefit what all facilities in terms of installations, warranty and after sale services which are provided by the company to be a part of customer triad. But there is a case, that augmented benefit becomes a expected benefit on the part of the customer.

The potential product is the one which organizations keep on trying to satisfy its customers by distinguishing their offerings.

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NICHE AND MASS MARKETING

Niche Marketing delas a particular set of Customer groups which means fewer customer and easier application of marketing mix because there are less people to target, and followed by advertisement and less of distribution Channels.

Mass marketing deals with selling products on a large scale before segmenting it into mass or niche you should have a proper knowledge of the market of what customer wants and would seeliing of your product in the market would possibly create demand so thus it includes three major steps knowledge , application and further analysis in terms of competitors because as a new company u need to see whether your competitors are not already following a marketing strategy which relates to proving the products at a discounted rate so the new company should think of some innovative marketing strategy because being a new company they cannot lower down their price.

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MARKETING INFORMATION......CONTINUED

Internal Company records and Marketing Intelligence

Marketing managers basically rely on internal records of orders, sales, cost, inventory levels which thereby helps us is in spotting opportunities and problems.

The Order to payment Cycle

The heart of internal records is order to payment cycle. Sales representatives send orders to customers of the firm. The sales department presents invoices and generates other billing and shipping documents. So, today’s companies in order to improve the accuracy, efficiency and speed use of internet and extranet has increased so that timely delivery is done and customer only favors those who are fast and punctual in this work. E.g. Cisco connection online allowed the computer networking leader to connect with all its suppliers, manufacturers, distributors, retailers which helps in reduction of cycles and thus there is saving of money and faster dissemination of information.

Sales Information System

Sales information system is very important because it not only helps marketers know the current trend of sales. E.g. Wall mart kept an hourly update of every customer, store. It once saw that the east coast store sales were dropping, the marketing dept immediately contacted the store people and they found that the computers and monitors were not displayed so the customer was unaware about the posted price of the good. As, soon as the marketing department got to know about the problem they solved it by restarting the monitors and thus sales soon start to pick up. It means utilizing the information in order to understand the needs of the customer through required market information. The marketers also get the market related information from reliance world and Sify Way.

Databases, Data warehouse, Data Mining

In today scenario companies organize their information into databases like consumer database containing what he has bought, name address, demographics thus helps the company in determining what customer has the highest purchasing power to mail him the new offer and thus marketers are able to generate information and thus market their product.

Market Intelligence System

It is about how the mangers get to know about the recent Devt through newspaper, publications and internet, interaction with customers. Refer book.

It tells us the various sources through which the organization help in generating marketing information about the market and thus benefiting themselves

1 Motivate distributors, intermediaries, suppliers for passing on the intelligence

2 Networks Externally

3 Take advantages of Government Resources

4 Set up a customer advisory planning

5 Possible information from outside suppliers

6 Use online customer feedback for collecting competitive intelligence.

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MARKETING INFORMATION

Marketing information is all about observing the outside environment in order to know and gather as much information as you want which help us analyzing the fact what we gained during interaction with the customer thereby help in knowing the buying behavior, wants and preferences. Marketers help us in extensive consumption patterns over and across countries. E.g. Swiss consume most chocolates. Another problem arise is that organizations which do not have a marketing department for  them Market Information system which consists of people, gather, sort , analyze, evaluate , distribute the need of customer through this information system. It relies on the following aspects: -

Internal Company records

Market Intelligence System

Market Research

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NEW PRODUCT DEVELOPEMENT

It includes the following stages: -

Idea Generation: - it tells us the idea of a particular person about a particular product which may be relating to line filling or line pruning so that focus is made on specific projects or normally an idea to compete with the rivals in the market.

Source:- qsinnovations.com

Idea Screening: - It is all about giving life to the idea in the form of some document or some Information of what it is all about.

Business Analysis: - It is all about whether the idea is feasible after careful marketing research and see whether the customer needs and wants are fulfilling the  several aspects like political, economic and technological – can be the required technology needed for the product to be built which is actually being technologically advanced, social- issues relating to csr. It also does the SWOT of the product so to see that after careful evaluation of external factors we can predict the opportunity and threat for the product whereas the internal factor tells us about the strengths and weaknesses. It also focuses also on building strategic alternatives by matching an internal factor with an external factor which helps us in coming up with relative alternatives to support the main strategic objective. E.g. A company can match the internal factor flexibility with an external factor which is govt law which helps us in planning all  the business processes according to the new law which would occur in the future time. 

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BUSINESS UNIT STRATEGIC PLANNING!

SWOT Analysis

After careful management audit we are able to judge the possible assumptions cumin up relating to strengths, weaknesses, opportunities which we can focus upon and threats which can arise due to various factors which can be both internal and external.

Goal Formultion

Marketing objectives are made out of the assumptions because it helps us in designing the marketing strategy regarding what possibly we can do in order to satisfy the customer with the help of required resources and how on the basis of present growth can guide us in designing further strategies.

Strategic Formulation

After laying down the marketing objectives we can do the most important part that is budgeting the  plan which not only includes budgeting for operational activities but also long term projects which will come up as a result of diversification and other unexpected change in government policies  and prices of raw materials and other things etc.

Program Formulation and Implementation

After this some companies in order to monitor  whether the plan made is good enough to last in the market for long an implementation is done on a trial basis and time period is stated as per the company wants to.

Feedback and Control

It is done to find loop holes and doing required modification.

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CORPORATE AND DIVISION STRATEGIC PLANNING

Mission Statement or Defining the Corporate mission

Mission statement includes the mission of an organization which it needs to achieve through careful marketing research by carefully analyzing the needs and wants of what customer wants and providing him with the same. They have some characteristics such as a good mission statement should be: -

Firstly, should be limited to few goals.

 Secondly, it should be such that there should enough individual discretion to be acted upon the company’s major rules and policies. Thirdly, it should be defining the competitive spheres(Industry like one industry or, Products and applications, Competence like the kind of use of technology being used or if it is having the capacity to use it, market segment, Vertical like distribution channels and geographical) in which the company would be operating. Fourthly, it should be take a long term view and lastly, it should short, memorable and meaningful.

Establishing SBU’s

It talks about how market oriented definitions are stronger than product oriented definitions due to various factors. It tells us that if as a company u are giving the definition which is making u a company operating in a particular product line in a particular segment basically a product oriented definition but if we use a market oriented definition it helps us in diversification in the same segment and in product lines. E.g. IBM redefined itself  from a hardware and software manufacturer to a builder of networks , another example for target market definition is of Pepsi which defined that the target market for coca cola is the same i.e. only  drinks is its but did not realize when it is giving the market definition other drinks. Juices and water also comes under its product line. Each SBU has several characteristics: -

1 If it is a single business or a collection of businesses it can be planned separately from the business.

2 It has own set of competitors

3 One manger is responsible for the strategic planning and profit performance, which controls most of the factors affecting profit.

Assigning resources to SBU’s

It basically focuses on the investing decisions or to allocate corporate resources. It basically focuses on the working of BCG Matrix Model.

Assessing Growth opportunities

It means adding, downsizing or terminating the older businesses. It focuses on filing the gap between future desired sales and projected sales by adding new businesses. It tells us that lowest curve of the gap is expected sales over the period and highest curve depicts the sales over the same period and how fast company will grow.

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MARKETING PLANNING

Marketing planning is all about firm marketing activities. It can also be pertaining to a specific product or an organization as a whole.

So, when the senior management is taking the decision regarding the formulation and planning of business strategy they indebted to incorporate the marketing activities into the plan which they think are appropriate for the plan.

A (Product planning) marketing plan includes the following things: -

Executive Summary and table of contents:- containing the senior management goals and recommendations and other supporting rationale and operational detail

Situational Analysis: - Situation is judged in terms of the market, competitors, sales and various other macro environment forces. Also critically scrutinizing what all SWOTS tells us.

Financial Projection:-it tells us about the sales forecasts and also break even analysis. Hereby, on the revenue side the company would mention the sales volume by the product and month category. On the expense side it mentions the expected costs of marketing broken into fingers. The break even analysis mentions that if there is not a monthly offset of fixed cost and average per unit variable cost the sustained market share of a company after a saturation point would decline.

Implementation Controls: - Monitoring and adjustment of plans. It basically looks whether the company is a set budget and situation is able to perform at a particular standard.

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HOLISTIC MARKETING CONCEPT

 HOLISTIC MARKETING CONCEPT

         The concept believes that as long as there is marketing everything matters and there is an integrated perspective of everything.  The major components of holistic marketing are as follows: -

          

            Relationship Marketing: -  

          It is important for building long term relationships with client and customers in order to survive in the market. Customer Relationship Mgt and Partner Relationship Mgt play a major role. Key constituents are employees, customers, suppliers, distributors.

            Integrated Marketing: - 

         The marketer’s task is to devise activities in terms of creating, communicating and  delivering value satisfaction to customers. It is not just this but also marketing activities which is largely based on the marketing mix. Where under product we look for quality, design, variety, packaging, safety, warranty, reserves and brand name. Coming on to prive list price, discounts, allowances, credit terms etc. and then talking about place comes channels, coverage, assortments, locations, inventory , transport, and then promotion where in advertising, sales promotion, sales force, public relations and direct marketing.

           Internal Marketing: - 

          It is particularly a concept that relates to hiring, training and motivating the employees working for our organization who want to serve the customer’s well as the company wants to.

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ORIENTATION TOWARDS MARKETPLACE

COMPANIES ORIENTATION TOWARDS THE MARKET PLACE

 The competing concepts over which companies have built their companies activities are as follows: -

           The production concept:- 

           It is one of the oldest concepts in business it generally deals with a fact that their large scale production of good with low costs and mass distribution. This type of concept is also applied when a company kind of needs to expand .e.g. Haier, the domestic appliances giant used inexpensive labor to dominate the market in China.

           The product Concept:

           The product concept holds that customer is looking for products with good quality, strength, durability and that is what companies try to focus upon that is making  superior products and improving them over the period of time of what we really call continual improvement.

          The Selling Concept: -  

           The selling concept talks of that if customers and businesses are left alone they would not probe the customer to buy organization products. So, there has to be some selling and promotion effort. These type of concepts are generally applied for products which customers do not think of buying like encyclopedias, insurance etc.

           The Marketing Concept: -  Instead of a product centered or a make sell philosophy businesses shifted to customer centered approach wherein the marketing played a huge role in where marketing research was donw what the customer really wants , then identification of target audience was done in order to market the product i.e. Marketing.

          

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INTRODUCTION TO MARKETING MANAGEMENT

WHAT IS MARKETED

Goods, Services e.g. work of bankers, lawyers, insurance, hotels (hospitability), Events: - Olympics, world cup. Places e.g. Singapore tourism. Experiences: - Orchestra Walt Disney.  Organizations:- Like Philips we make thing better like having a corporate identity of it’s own. Persons: - Madonna, Jordan, Oprah Winfrey. Information: - encyclopedias, books, magazines. Properties: - like Jaypee group, Ideas:- marketing of companies idea of the product for their customer’s

KEY CUSTOMER MARKETS

Consumer Markets: - Companies selling mass consumer and goods have to spend a great deal of time establishing a brand image which depends upon the quality of the product which depends upon: -

• Product superiority
• Reliability
• Packaging
• After sale service

Business Markets:- Companies selling goods to skilled and pro buyers must be really good enough o market their product considering that there product is providing enough high revenues when they sell it further in the market. In this case advertising may play a small role but major role would be played by sales force.

Global Markets:-  Companies should no which country to enter in terms of culture, target market their profit estimation and various other reasons.

Non profit and Governmental Markets: - Companies selling good to churches and other charitable places should be considerate about pricing of the goods as they have limited purchasing power. Government purchasing for bids where in the lower bid is the most favored..

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