Marketing Management - II
Module 1
Marketing Mix
Product Management
Marketing Mix
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Marketing Mix
Group of marketing variables controlled by
a business
Aimed at implementing the marketing
strategy directed at a specific market
segment
Initial variables 12
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Marketing Variables
Product planning
Promotions
Pricing
Branding
Distribution channels
Personal selling
Advertising
Packaging
Display
Servicing
Physical handling
Fact finding and analysis
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The 4 Ps
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Marketing Mix Strategy
Fiskars Orange: the
ubiquitous pair of
scissors
Project Orange Thumb:
community gardening
groups
Viral marketing
o Fiskars fan community
o Interaction on what you can
do with your scissors
o Most passionate twitterers
community leaders
Direct mail
o To exclusive traders for
picking inventory
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Product
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Product vs. Marketing
Management
Product
Marketing
Scope
Narrow
Single product/product line
Broad
Portfolio of products
Decision
making
Tactical
Strategic
Time
horizon
Short-run
Long-run
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Positioning the Product
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Demarcating the Market
Food &
entertainment
Beverages
Soft drinks
Diet colas
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Total Product Concept
Core benefits: Transportation
Expected product: The basic
features that provide the core
benefit
Augmented product: Features
that are beyond expectation
Potential product: Features
added on
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Consumer Product Classification
Convenience
Shopping
Specialty
Unsought
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Consumer Product Classification
Convenience
Shopping
Specialty
Unsought
High
Low
Infrequent
Infrequent
Comparison & Minimal
Shopping Effort
Moderate
High
Minimal
Brand loyalty
Low
Higher
High
Low
Price
Low
Higher
High
Low to high
Availability
Widespread
Fewer outlets Few outlets
Low to high
Promotion
Mass
promotion
Advertising
and
personal
selling
Heavy
advertising
and
personal
selling
Purchase
Frequency
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Targeted
promotion
Industrial Product Classification
Capital equipment
Components
MRO
Raw materials
Processed materials
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Product Portfolio
Collection of all products offered by a firm
Portfolio management
o Decisions regarding current and future products
o Finite company resources
Mix dimensions
o Width
o Depth
o Length = Width x Depth
Width
o Expansion
o Extension
o Cannibalisation
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Depth
Additions
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LG India Product Portfolio
Home
Entertainment
Mobile
Phones
Computers
Home
Appliances
Air
Conditioners
Commercial
Flat Panel TVs
Smart Phones
Laptops
Refrigerators
Split
Cassette AC
CRT TVs
Basic Phones
Monitors
Dishwashers
Window
Ducted AC
3D TVs
Projectors
Microwave
Ovens
Dome Cameras
Home Theatre
Systems
Optical Media
Washing
Machines
IR Cameras
Music Systems
Vacuum
Cleaners
Access Control
Systems
DVD Players
Water Purifiers
Displays
Blu-Ray Players
Air Purifiers
Car infotainment
Video
Conferencing
Systems
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Product Strategy
Product positioning
o Cost (value) differential
o Feature differential
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Cost Differential
Economies of scale
Innovative purchasing, logistics, selling,
advertising
Criteria
o High volume single product (or family of
products)
o Efficient facilities
Risks
o Shift in consumer taste
o Technological shifts
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Differentiation
Quality especially for technology
products
Status
Convenience & service
Distribution
Brand
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Status
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Product Life Cycle
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Product Objectives
Introduction
o The basic product
Growth
o Add features
o Product line extension
Maturity
o Diversify to attract new customers
o Extend the life cycle
Decline
o Reduce costs
o Remove slow-selling variants
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Marketing Goals
Introduction
o Build awareness
o Encourage trial
o Heavy expenditure in promotion
Growth
o Take advantage of growing demand
o Build brand
o Mass communications
Maturity
o Maximise market share, and thus, profits
o Build brand preference
Decline
o Eliminate or reduce investments
o Reduce promotions to minimum level
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Limitations
Based on past results
Not fixed
Not true for each and every marketing
situation
o Fads, styles
More applicable to product categories rather
than individual brands
Difficult to identify the exact stage
Stifles marketing innovation decline stage
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Diffusion of Innovations
The speed of adoption of a product
Population is segmented based on the
openness towards innovations
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Adopter Categories
Openness to innovation: % of population
2.5
16
13.5
Innovators
Early Adopters
34
34
Early Majority
Late Majority
Laggards
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Category Traits
Innovators techies; like having new or
unusual things; testers; report on weaknesses
Early adoptersopinion leaders (visionaries);
social implications; less price sensitive; willing
to adopt if given personalised solutions &
good service
Early majority - pragmatists
Late majority conservatives; technologyshy; price sensitive
Laggards skeptics; resist until maintaining
status quo becomes difficult
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ACCORD Model
Advantage - Relative
Compatibility
Complexity
Observability Communicability
Risk - Financial or social
Divisibility
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NPD Process
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Types of New Products
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New Product Ideas from
Customers
1.
2.
3.
4.
Observe usage
Problems in usage
Dream products?
Form a brand community
o Social networking sites
5. Challenge to
change/improve
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Thank You!
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