Concept of Marketing Mix. The management process through which goods and services move from concept to the customer. Meaning Marketing is the process.

Concept ofMarketing

Mix

The management process through which goods and services move from concept to the customer.

Meaning

Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development.

The management process through which goods and services move from concept to the customer. As a practice, it consists in coordination of four elements called 4P's:

1. Product Development2. Product Life Cycle3. Branding Decisions4. Packing Decisions

1. Product Development Idea Generation

Idea Screening

Business Analysis

Development and Testing

Market testing

Commercialization

2. Product Life Cycle

Introduction StageGrowth Stage

Maturity StageExtension StageDecline Stage

Four things in mind

1. products have a limited life2. sales has distinct stages- with

challenges, opportunities, problems

3. profits rise and fall at stages4. products require different

marketing, financial, manufacturing, purchasing, and human resource strategies in each stage

Every product has a life cycleDefinition: A marketing theory in which products or brands follow a sequence of stages including : introduction, growth, maturity, and sales decline.

INTRODUCTION

GROWTH MATURITY DECLINE

Third generation mobile phones

Portable DVD Players

Personal Computers

Typewriters

E-conferencing Email Faxes Handwritten letters

iris-based personal identity cards

Smart cards Credit cards Cheque books

EXAMPLES:

Cost high

Sales volume low

No/little competition - competitive manufacturers watch for acceptance/segment growth losses

demand has to be created

customers have to be prompted to try the product

Stage-1:Market introduction stage

costs reduced due to economies of scale

sales volume increases significantly

profitability

public awareness

competition begins to increase with a few new players in establishing market

prices to maximize market share

Stage-2: Growth stage

no need for publicity

sales volume peaks

increase in competitive offerings

prices tend to drop due to the proliferation of competing products

brand differentiation, feature diversification

Industrial profits go down

Stage-3: Mature stage

THE INTERNATIONAL PRODUCT LIFE CYCLE

MNC ManufacturesProduct in DevelopedCountries; Exports toDeveloping Countries

MNC MovesProduction toDevelopingCountry; BeginsImporting toHome Country

DevelopingCountry CompetitorExports Product To MNC HomeCountry; Competeswith MNC Imports

Developing CountryMarkets Remain ViableTarget Markets forMNC; MNC HomeCountry Market IsDiminishing

Sales

Introduction and Growth Stages:

Early Maturity:

LateMaturity

Decline

Time

Product life cycle management of

Ambassador Car

Product life cycle management (or PLCM) is the succession of strategies used by business management as a product goes through its life cycle. The conditions in which a product is sold (advertising, saturation) changes over time and must be managed as it moves through its succession of stages.

Product life cycle management

Mohammed Umair- 3rd sem B.com

The Hindustan Ambassador is a car manufactured by Hindustan Motors of India. It has been in production since 1958 with few modifications or changes and is based on the Morris Oxford III model first made by the Morris Motor Company at Cowley, Oxford in the United Kingdom from 1956 to 1959.

Despite its British origins, the Ambassador is considered as a definitive Indian car and is fondly called "The king of Indian roads". The automobile is manufactured by Hindustan Motors at its Uttarpara plant near Kolkata, West Bengal. It was the most popular car in India and is perceived to be best suited to the harsh Indian terrain due to its very good suspension. Its iconic status was helped by the fact that it was the preferred means of conveyance of India's political leadership, including the Prime Minister of India, before they moved on to other luxury cars and SUVs. In 2002, then-Indian PM Atal Bihari Vajpayee started traveling in an armored BMW 7 Series for security purposes. However, some prominent Indian politicians, such as Sonia Gandhi, continue with their preference for the Hindustan Ambassador

Introduction


Origins

When the Birlas wanted a new model to replace their already old Hindustan models based on Morris Oxford Series II (Hindustan Landmaster), they scouted for the then-new Morris Oxford Series III. The car initially came with a side valve engine but was later improved to an overhead valve engine. Also the car at that point was quite an innovation with a fully enclosed monocoque chassis, which is why it is spacious inside.

Hindustan Motors Limited (HM), India's pioneering automobile manufacturing company and flagship company of the C.K. Birla Group was established just before Indian independence, in 1942 by B.M. Birla, commencing operations in a small assembly plant in Port Okha near Gujarat,


Evolution

The Amby, as it is affectionately called, has been in continuous production since its inception, with very few changes to its frame.

In 1948, Hindustan Motors shifted its assembly plant from Port Okha in Gujarat to Uttarpara in West Bengal's Hooghly district and strengthened its manufacturing capacity in the automobile segment.

The 1954 Morris Oxford series II in India was licence-built at Uttarpara, (Hooghly dist.), West Bengal, three years after its debut in England and labelled as the 1957 Hindustan Landmaster. It had a rounded rear squab and a curvaceous sloping hood.Engaged in the manufacture of the Ambassador, Contessa and utility vehicles like the Trekker, Porter and Pushpak, the plant also has to its credit, many innovations and improvements in the automobile industry in India. Hindustan Motors is the only manufacturing facility in the world to manufacture parts for Bedford trucks currently.


Ambassador Mark I to Mark IV

The Amby, as it is affectionately called, has been in continuous production since its inception, with very few changes to its frame.

In 1948, Hindustan Motors shifted its assembly plant from Port Okha in Gujarat to Uttarpara in West Bengal's Hooghly district and strengthened its manufacturing capacity in the automobile segment.

The 1954 Morris Oxford series II in India was licence-built at Uttarpara, (Hooghly dist.), West Bengal, three years after its debut in England and labelled as the 1957 Hindustan Landmaster. It had a rounded rear squab and a curvaceous sloping hood.Engaged in the manufacture of the Ambassador, Contessa and utility vehicles like the Trekker, Porter and Pushpak, the plant also has to its credit, many innovations and improvements in the automobile industry in India. Hindustan Motors is the only manufacturing facility in the world to manufacture parts for Bedford trucks currently.


Ambassador Mark I to Mark IV

Mark I

Mark II

Mark III

Mark IV


Ambassador Nova

Ambassador Nova was launched in early 90s in two variants- a 55 bhp petrol powered Deluxe version and a 37 bhp diesel powered Diesel DX version. Ambassador Nova had a newly designed steering wheel, new steering column, better brakes and electricals. Also it had some cosmetic changes which included a new radiator grill also.


Ambassador 1800 ISZIn an attempt to increase its appeal,in 1992 another version was released. Dubbed the Ambassador 1800 ISZ, this model featured a powerful 75 bhp 1800 cc Isuzu engine and a 5speed gearbox, and also had the option of bucket seats, as opposed to the earlier bench seats. Also, the entire dashboard was redesigned. Instrumentation panels were shifted from the centre of the dashboard to the right, behind the steering wheel. Seat belts became mandatory. At that time no Indian cars had such a powerful engine and it was the fastest car of that time.


Ambassador Ambassador Classic

After the millennium renovation project at the Uttarpara Plant, the Ambassadors released were renamed as Ambassador Classic. These models feature a redesigned dashboard, polyurethane seats, pull type door handles and the steering column gear lever was replaced by floor shift gears and had a tweaked up suspension. The higher end models featured servo assisted disc brakes and power assisted TRW steering.

Hindustan Ambassador Classic on the streets of Kolkata


Ambassador Avigo

Its most radical revision, a part of a brand revitalization kicked off in the middle of 2003, was the Avigo (a break from the Ambassador marque indicating a different marketing strategy), launched in the summer of 2004. The revitalization consisted of the Ambassador Classic of mid-2003, the Ambassador Grand of late-2003, and the aforementioned Avigo, designed by Manvindra Singh. Car enthusiasts, however see this as a desperate attempt to claw back the dwindling market share. Notable influences on the new design include the new Mini, and even the Porsche 356. However, the most overpowering influence on the front and bonnet has been that of the original Landmaster series (also based on Morris Oxford). The rear of the car has been left untouched, and this leads some to feel that the car is not really different from an Ambassador. Retro-car enthusiasts would have preferred a rounded back (without the small fins), while as a current car, the regular-look Ambassador is very good itself. The Avigo, however, has much more classic-touch internals, like a centrally mounted console (like the Mark IV models), beige colored seats and wood-grain interiors


EnginesIn the early 1990s, the old BMC 1.5L petrol engine was replaced in favour of an Isuzu 1.8 litre engine and became the fastest production car in India, beating Fiats, and the Maruti Suzuki cars at that time. The engines currently available are the 1.8L 75 bhp MPFI petrol engine and a 2.0L 50 bhp Isuzu diesel engine.

Extended version

Many local customisers offer stretched versions, though they are not very popular. One such manufacturer is Parikh, whose effort is called the "Ambylimo"

Customized version

Car designer Dilip Chhabria created a concept inspired by the Ambassador. version, the Ambierod. This car is not manufactured by Hindustan Motors nor is it based on the ambassador. Several styling ques however have been borrowed from the Ambassador.


Ambassador Mark I

Ambassador Mark II

Ambassador Mark III

Ambassador Mark IV

Ambassador Nova

Ambassador 1800 ISZ

Ambassador Classic

Ambassador Avigo

First phase

Second phase


Branding Decisions

Within every

brand is a product,

but not every

product is a brand

An identifying symbol, word

s, or mark that distinguishes

a product or company from its competitors.

Usually brands are registered (trademar

ked) with a regulatory authority and so cannot

be used freely by other parties. For many

products and companies, branding is

an essential part of marketing.

Bra

nd

ing

Dec

isio

ns

Attributes

Benefit

sCulture Va

lues

Personality

Bra

nd

ing

Dec

isio

ns

Attributes

Bra

nd

ing

Dec

isio

ns

Values

Bra

nd

ing

Dec

isio

ns

Culture

Bra

nd

ing

Dec

isio

ns

Ben

efi

t

Bra

nd

ing

Dec

isio

ns

Personality

Bra

nd

ing

Dec

isio

ns

User

Bra

nd

ing

Dec

isio

ns

Multi-brand

Corporate

brand

Individual

brand

Range brandi

ng

Private brandi

ng

Generic

branding

1. Corporate branding refers to use of company's name as a product brand name in order to associate credibility of established company name to the product.

2. Individual brand: Individual branding refers to use of unique brand name for each product offered by a company in order provide a separate image and identity.

3. Multi-Brands: This contrasts corporate branding, Individual branding refers to use of different brand names for two or more mutually competing products offered by a company.

Brand Positioning what the consumer can expect?

Dove Dove for beautiful skin

With Dove women can experience the ‘real’ difference by realizing their personal beauty potential by creating products that deliver real care.

Lux Iconic beauty bar used by the most beautiful and iconic stars of the world

Lux encourages women to express their beauty by giving them a million dollar feeling every time they use one of Lux’s exquisite products.

Lifebuoy Germ Protection Soap Lifebuoy makes people safe and secure by meeting their personal care hygiene & health needs.

Pears Pure & Gentle for skin Pears keeps your skin soft and smiling with innocence. It is so pure that you can actually see through it.

New Liril Clean, fresh and full of life skin

New Liril 2000 makes every part of your skin come alive with freshness.

Hamam Mild, family soap Indian-made natural soap which give effective protection from 10 skin problems like rashes, pimples, prickly heat, body odour etc.

Rexona Aromatic fragrance o the Indian women

Rexona’s irresistibly silky soft skin and lingering aromatic fragrance proposition has been an ally to the Indian women to keep those compliments flowing in from their loved ones.

Unilever’s individual brand strategy

4. Range branding: refers to use of different ranges of product in effect creating a family of products offered by a company. for example Lakme owned by uniliver offer a wide range of high performance and world class colour cosmetics, skincare products, and beauty salons.

5. Private branding (distributors own brand)Private branding involves selling of products by the manufacturer in bulk to large distribution channel member (usually a retailer) with a freedom use their own name on the product.

6. Generic brand involves selling of products without brand name and they are usually sold at the lowest price possible as there is no due promotional expenses involved.

Branding strategy

Advantages Disadvantages

Corporate brand

The strength of the corporate brand is conveyed to all products

Promotional costs are spread across all products

Any new product failure has the potential to damage to the corporate brand.

The positioning of the corporate brand constrains decisions on the quality and pricing for individual products

Multi-brand Allows individual differentiation of brands

Allows products to be occupy different positions in the same market i.e. a premium and a discount brand from the same parent company

Current brands are insulated from any new product failures

Each brand requires a separate promotional budget

Market sectors have to contain enough potential to support more than one brand

Highly focused brands are hard to reposition once a market enters decline

Branding strategy

Advantages Disadvantages

Individual brand

Product can be supported by the reputation of an existing corporate brand while at the same time the individual characteristics of the specific offering can be emphasised

A new product failure has the potential to cause some damage the company brand

The positioning of the company brand constrains decisions on quality and pricing of the individual product

Range brand The strength of the brand is conveyed to all the products in the range

Promotional costs are spread across all the products in the range

Any new product failure has the potential to damage the range brand

The positioning of the brand constrains decisions on quality and pricing for individual productsPrivate brand Demands little

promotional spend by producer

Producer can concentrate on gaining cost efficiency through volume production

Marketing decisions controlled by distributors

Removes the producer from direct contact with the market

Generic brand Little promotional budget, reduced packaging costs

Competition becomes based mainly on price and service levels

PACKAGE AND LABELLING

Meaning and Definition According to Philip Kotler,

Packaging is an activity of designing and producing the container for a product.

Labelling involves attaching a small piece of paper, fabric, plastic, or similar material that is part of the package, to identify it or give instructions or details concerning its ownership, use, nature, destination, etc.

Functions

Protection and preservation

Information transmission

Containment

Product Promotion

Product Identification

Convenience

Product Positioning

Enhances product image and Appeal

Pac

kin

g D

ecis

ion

s

Packing DecisionsFamily

Packing

MultiplePacking

ReusePacking

EcologicalPacking

JOHNSON'S NEW BORN BABY GIRL PACKAGE

Johnson's New born baby girl Package. An exclusive package goes decorated in a cane basket with a Greetings card with your wish written on it. This package contains:

Baby Towel (Pink Colour,medium size)

Pampers - 24 piece

Johnson’s baby powder-200 gm

Johnson’s baby oil-300 ml

Johnson’s baby shampoo-200 ml

Johnson’s baby cream-100 gm

Johnson’s baby soap-150 gm

Johnson’s baby wash-200 ml

Johnson’s baby brush-1 ps

Whether you're on vacation or just out for the day, this assortment of products will help you pack lighter and more quickly. Just grab it and go!

PRICING DECISIONS

According to Philip Kotler is “Price is the amount of money charged for a product or service.”

“Price is the assignment of value, or the amount the consumer must exchange to receive the offering or product”. − Michael R. Solomon, Elnora W. Stuart & Greg W. Marshall

In the word J. Walker, “Price is equal to the total product offering.

FACTORS INFLUENCING PRICING DECISIONS

Internal Factors

Organizational Consideration

Marketing Mix Strategy

Product Uniqueness

Cost of production

Stage of product Life Cycle

Pricing objectives

Depth of distribution channel

External Factors

Product Supply & Demand

Degree of Competition

Economic Situation

Government Regulations

Ethical Considerations

Suppliers

Consumer behaviour

STEPS IN PRICE DETERMINATION

1. DEVELOP PRICING OBJECTIVES:

2. ESTIMATING DEMAND, COST AND REVENUE

3. ANTICIPATE COMPETITION

4. DETERMINING EXPECTED MARKET SHARE

5. CHOOSE A PRICING STRATEGY

6. IMPLEMENTATION AND REVIEW

METHODS OF PRICING OR PRICING STRATEGIES & TACTICS

Based on Customer• Odd-even

pricing• Psychologica

l pricing• Prestige

pricing• Dual pricing• Price lining

Based on competition• Penetration

pricing• Skimmed

Pricing• Monoploy

pricing• Admisitrated

Cost and Demand• Cost based

pricing• Demand

based pricing

• Target rate pricing

Geography Pricing• FOB Pricing• Zone Pricing• Basic point

pricing

1. Odd-even pricing The odd-even pricing method lowers the rounded-up price of a product by

a paise or so, which people perceive as significantly lower than the rounded-up price.

For example, if the top price range for a jeans pant is Rs. 500 then the marketer would probably reduce it to Rs. 499.95 because most customers think this price is much cheaper.

2. Psychological pricing In Psychological pricing marketer uses the customer's emotional

response to encourage sales.

Consumer often assumes that a higher product price indicates a higher level of quality and vice versa.

3. Prestige pricing Prestige pricing, also known as premium pricing, in prestige pricing

strategy prices are set higher than normal to create an image of superior quality and social status.

The strategy behind prestige pricing is not tied to its quality but more to its image.

4. Dual pricing In dual pricing marketers sell the same or identical product at

different prices in different markets.

Dual pricing is not necessarily an illegal pricing practice as it done with an objective of dumping in different markets or due to government regulations.

5. Price Lining Price lining, also referred to as product line pricing, is pricing process

wherein prices are set with certain price points believed to be attractive to customer.

The objective behind this is to appeal to different segments of the market. For example, a car sellers in India come up three variants in the same

model: a value model, a standard model and a limited model. While each model has a different price point, the costlier model is seen as higher-end when compared to the base model, while both retain the same brand name.

Similarly a movie theatre offer tickets at three levels of prices, such as Rs. 200 (for Balcony), Rs. 150 (middle class) and Rs. 75(front stall) three distinct areas within the theatre offered for the customers to match the range they can afford.

B: BASED ON COMPETITION

Penetration pricing A pricing strategy in which a firm introduces a new product at a very low

price to encourage more customers to purchase it.

Skimmed pricing Price skimming is a pricing strategy in which a marketer charges a very

high premium price for a given product or service.

Monopoly pricing A monopoly is when a business dominates the entire business segment

with no competitors, monopolies are usually bad for an economy because they restrict free trade, which allows the market itself to set prices.

Administered pricing In administered pricing the price of a products or services is set by

government or regulatory bodies, instead of being determined by regular market forces of supply and demand.

C: BASED ON COSTS AND DEMAND

Cost plus pricing method In this method of setting prices in which the seller totals all the

costs for the product and then adds an amount to arrive at the selling price.

Target return pricing Target rate of return pricing is a pricing method in which firm

determines the price that would yield its target rate of return on investment (ROI).

Demand based pricing method In this method prices are based on demand for the product, if

the demand is high then the prices are raised and if the demand is low the prices are cut off.

D: BASED ON GEOGRAPHICAL LOCATION

FOB pricing (Free on Board) FOB pricing means a price which includes goods plus the

services of loading those goods onto some vehicle or vessel at a named location.

Zone pricing Zone pricing strategy involves setting prices of goods or

services based on the location where they will be offered for sale to customers.

Base point pricing Base point pricing is a pricing system under which marketers

set on the basis of a base point cost plus transportation costs to a given market.

ROLE & IMPORTANCE OF PRICING

Profitability depends on pricing

Price is determinant of buying decision

Price influences customer perception

Price is weapon to fight competition

Price is an important part of sales promotion

PLACE/PHYSICAL DISTRIBUTIONIN ORDER TO MOVE GOODS FROM THE PRODUCER TO THE CONSUMER, A CHANNEL OR NETWORK OF INTERMEDIARIES ARE REQUIRED.

Physical distribution in marketing implies to set of activities dealing with Handling, movement, and storage of goods from the point of origin to the point of consumption. Scope of

Physical Distributio

n

The Supply Chain Logistics

THE SUPPLY CHAIN

Supply chain refers to set of activities that control flow of goods amongst network of interconnected businesses to maximize total profitability.

LOGISTICS Scope and Function of Logistics management

Order Management

Order management is a process of dealing with purchase requests of customers, this includes order entry, picking, packing, shipping, and billing.

Warehousing

Once the stock is procured and assembled the next important process is to preserve the stock systematically for which proper storage and warehousing is required.

Transportation

It is important to note the availability of resources required by industries such as labour, raw materials are scattered or concentrated in certain geographical regions and in order to integrate these resources transportation plays an instrumental role.

Material Management

Materials management is an important part of logistics that deals with planning, organizing, and controlling flow of from the suppliers up to the end of production process.

Inventory Control

Inventory control is the process of monitoring and coordinating supply, storage, distribution, and recording of materials in order to insure an adequate supply without excessive oversupply.

Logistics is the managing, designing and improving flow of resources between the point of origin and the point of destination through the supply chain.

TYPES OF CHANNELS OF DISTRIBUTION

FUNCTIONS OF CHANNEL INTERMEDIARIES

Procurement & Assembling

Warehousing and storing

Grading and Packing:

Selling

Assumption of Risk:

Financing:

Supply of Market Information:

Advertising & Communication

FACTORS AFFECTING CHOICE OF DISTRIBUTION CHANNEL

Physical Nature Physical nature of the product signifies perishability, sizes & weight of

the product.

Perishable products (E.g. milk, butter, cheese, fish, etc.) should have a short distribution channel as products gets decay or spoiled very fast.

Technicality of product The technicality requirement confines special training and expertise to

practically handle and use the products. Therefore product with technical nature are usually sold directly by the producer to consumers

Product range A product a variety products of the same product platform that appeal

to different market segments manufactured by a single company. In case producer offer a narrow product range then it is ideal to distribute through wholesalers and retailers

A: Product Factors


Product Price Products with low unit price (e.g. salt, sugar, wheat, rice etc.) are

generally consumed on very large scale and therefore it should be sold through middlemen (through a long channel) as producer cannot bear the cost of direct selling.

On the other hand products with high unit price (e.g. gold, silver) involves low turnover and therefore a smaller distribution channel is required.


Government Regulations In case of some products Government regulations influences choice of

distribution channel. For instance products liquor, arms and ammunition, drugs etc. can be distributed only through li censed shops.

Buyer's Behaviour Buyer’s may or may not intend to apply time and effort on shopping, buyers have

different expectation like personal attention, one-stop shopping, customized service, credit facilities and some prefer self-service. Depending on these expectation the most appropriate trade channel should be selected.

Composition of target market If the customers is very large, then requires services of the middlemen. In

contrast limited customer base requires direct marketing as it is easy to manage limited customers.

Availability of channel Finally the Choice of a channel is also influenced by the availability of distribution

partners. On account of non-availability of desired type of middlemen producer may have to set up self owned distribution system.

B: Market Factors


Institutional Factors

Financing Capacity

Promotional Ability

After sales service

Channel Cost

Organisational Factors

Financial Resources

Reputation

Marketing Policy

DISTRIBUTION APPROACH

Type Description Example

Intensive Distribution

In this approach Marketers sells its products through as many outlets as possible (wholesalers or retailers that are willing to stock and sell the product), so that the consumers encounter the product everywhere they go.

Soft drinks, Biscuits and films

Exclusive Distribution

In this approach a product is sold only through a single outlet in a particular region. Usually, exclusive distribution is undertaken when the manufacturer desires more aggressive selling from channel partners.

Cars, Bikes and Premium apparel

Selective Distribution

In selective distribution, the number of outlets that may carry a product is limited, but more than exclusive distribution.

Clothing, Home furnishings

PROMOTION

Promotion is a set of activities designed to inform and persuade consumers about the products or services offered by the marketer.

Objective How it is Done?Create Awareness

Frequent advertisements, Slogans and jingles and Publicity stunts

Educate customer

Brochures, websites, newsletters and Personal selling

Persuade Celebrity endorsements, Status appeals and Sex appeals

Reinforce to buy

Coupons, Discounts, offers and Samples

Retain customer

Follow and feedback, reward and recognition

Objectives of Promotion

ELEMENTS OR METHODS OF SALES PROMOTION

AdvertisingSales

promotion

Public relation

s

Personal selling Publicity

ADVERTISING

According to John E. Kennedy, “Advertising is simple way of selling something in the most effective methods possible. Good advertising creates sales and not just attention”

In the words of R.H. Colley, “Advertising is mass period communication the ultimate purpose of which is to impart information, develop attitudes and induce action beneficial t the advertiser”

American Marketing Association says, “Any paid form of non-personal presentation of ideas, goods or services by an identified sponsor”.

MEDIAS OR METHODS OF ADVERTISEMENTS

Media of Advertisem

ent

Broadcast Media

Television

Radio

Non-Broadcast

Media

Cinema

Cable TV

Discs

Outdoor Media

Hoardings

Boards

Posters

Direct Response

Mailers

Pamphlets

Telemarketing

Internet

Social Networks

Search Engines

Youtube

PROS AND CONS OF VARIOUS METHODS OF ADVERTISEMENTS

Pros TV is extremely creative and flexible.

Network TV is the most cost-effective way to reach a mass audience.

Cable and satellite TV allow the advertiser to reach a selected group at relatively low cost.

A prestigious way to advertise.

Can demonstrate the product in use.

Can provide entertainment and generate excitement.

Messages have high impact because of the use of sight and sound.

Cons The message is quickly forgotten unless it is

repeated often.

The audience is increasingly fragmented.

Although the relative cost of reaching the audience is low, prices are still high on an absolute basis—

often too high for smaller companies. A 30-second spot on a prime-time TV sitcom costs well over Rs 1,50,000.

Fewer people view network television.

People switch from station to station and zap commercials.

Rising costs have led

Television


Pros Good for selectively targeting an

audience.

Is heard outside the home.

Can reach customers on a personal and intimate level.

Can use local personalities.

Relatively low cost, both for producing a spot and for running it repeatedly.

Because of short lead time, radio ads can be modified quickly to reflect changes in the marketplace.

Use of sound effects and music allows listeners to use their imagination to create a vivid scene.

Cons Listeners often don’t pay full attention to

what they hear.

Difficulty in buying radio time, especially for national advertisers.

Not appropriate for products that must be seen or demonstrated to be appreciated.

The small audiences of individual stations means ads must be placed with many different stations and must be repeated frequently.

Radio


Pros Wide exposure provides extensive

market coverage.

Flexible format permits the use of colour, different sizes, and targeted editions.

Provides the ability to use detailed copy.

Allows local retailers to tie in with national advertisers.

Readers are in the right mental frame to process advertisements about new products, sales, etc.

Timeliness, i.e., short lead time between placing ad and running it.

Cons Most people don’t spend much time reading

the newspaper.

Readership is especially low among teens and young adults.

Short life span—people rarely look at a newspaper more than once.

Offers a very cluttered ad environment.

The reproduction quality of images is relatively poor.

Not effective to reach specific audiences.

Newspapers


Pros Most of the population can be

reached at low cost.

Good for supplementing other media.

High frequency when signs are located in heavy traffic areas.

Effective for reaching virtually all segments of the population.

Geographic flexibility.

Cons Hard to communicate complex messages

because of short exposure time.

Difficult to measure advertisement’s audience.

Controversial and disliked in many communities.

Cannot pinpoint specific market segments.

Outdoor


Pros Can target specific audiences and individualize

messages.

Web user registration and cookies allow marketers to track user preferences and Web site activity.

Is interactive—consumers can participate in the ad campaign; can create do-it-yourself ads.

An entertainment medium allowing consumers to play games, download music, etc.

Consumers are active participants in the communication process, controlling what information and the amount and rate of information they receive.

Web sites can facilitate both marketing communication and transactions.

Consumers visit Web sites with the mindset to obtain information.

Cons Limited to Internet users only.

Banners, pop-ups, unsolicited e-mail, etc., can be unwanted and annoying.

Declining click-through rates for banners-currently less than 0.03 percent.

If Web pages take too long to load, consumers will abandon the site.

Phishing is e-mail sent by criminals to get consumers to go to phony Web sites that will seek to gain personal information such as credit card numbers.

Because advertisers’ costs are normally based on the number of click-through, competitors may engage in click fraud by clicking on a sponsored link.

Difficult to measure effectiveness

Outdoor

ROLE AND IMPORTANCE OF ADVERTISING

Persuades customer

Provides information

Image creation

Image creation

Motivates distribution partners

A tool to fight competition

ADVERTISEMENT A BOON OR BANE

Boon

Helps in promotion of products or services

Assist channels partners to sell

Creates brand awareness

Encourages salesman

Provides information to the customers

Advertising increases sales, employment and profits.

Source of entertainment for the people

Bane

Increases product costs

Misleads the Consumer

Advertisements are annoying and stupid

Influences purchasing power

Creates unwanted desires

Encourage monopoly

Vulgar advertisements offend public decency

Wastage of national resources

PERSONAL SELLING

According to Philip Kotler, "Personal Selling: face to face interaction with one or more perspective purchasers for the purpose of making presentations, answering questions, and procuring orders"

Personal Selling adds personal touch to promotional activities, personal selling is usually adopted by firm that uses a “push strategy” in which the objectives is to “push” or sell the product through channel partners such as retailers, sales personnel.

STEPS IN PERSONAL SELLING Prospecting

Identify potential buyers and preparing a list of prospects or sales leads (potential buyers)

Preapproach

Learn as much as possible about the prospect prospective customers and planning the sales interview

Approach

Making initial contact with the potential customer and creating a favorable impression about the product

Presentation

Sales presentation is to attract the prospect's attention, stimulate interest and desire for the product. It is also important to invite the customer’s involvement in the conversation.

Handle Objections

Clear the doubts that the customer may have with a positive approach and asks the buyer to clarify the objection.A good sales man turns the objection into a reason for buying.

Close the Sale

Climax of selling process in which salesperson actually asks the customer to buy the product.

Follow up

Activities after the sale that provide important services to customers.

ROLE, BENEFITS AND IMPORTANCE OF PERSONAL SELLING

Provides flexibility: Salesman can tailor his sales presentation to fit the needs, motives and attitudes of prospective customer.

Builds Relationships: Personal touch, extensive care and customized service makes the most for building strong customer relationships.

Persuasive impact: By comprehending effectively a salesman attracts the attention of customer and drives the customer to take up the product.

Educates Customer: By providing information and guidance to customers a salesman assists customers in satisfying their wants.

Interactive: Personal selling involves two-way flow of communication between the salesman and prospective customer which helps in understanding the needs and behaviour customers.

PERSONAL SELLING SUFFERS FROM THE FOLLOWING DRAWBACKS:

Widely misunderstood: Customers perceives most of the salespeople as arrogant, aggressive, greedy and manipulative.

High cost: To attract top-quality sales reps, the company has to develop an attractive salary package and further spend huge money on formal training programs.

Labour intensive: It is difficult to build and develop a professional sales force.

Limited Reach: Cannot reach as many customers as quickly through personal sales.

Sales Pressure: Most sales jobs bear a striking resemblance to a pressure cooker.

SERVICE MARKETING MIX: (EXTENDED MARKETING MIX)

According to Philip Kotler, “A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything.”

5. PEOPLE

People in service marketing mix means the employees of an organization who represent the organisation to the customer.

They are the first point of contact to the customers

Employees are real brand ambassador who represent the brand for customers

The personal interaction between consumers and service providers has been termed the "service encounter" in the services marketing.

Staff require appropriate interpersonal skills, attitude and service knowledge in order to deliver a quality service.

Role clarity of frontline staff is critical to their perceptions of service quality in services marketing.

Employees directly influence customer satisfaction with their offerings, they perform the role of marketers.

Thus role of employees is a critical factor in services marketing as:

They are the service

They are the organization in the customer’s eyes

They are the brand ambassadors

They are the marketers

Role of People(employees) in Services marketing

6. PROCESS Service process is the way in which a service is delivered to the

end customer.

service process is an important element and service provider must carefully examine the process problems that are most annoying to customers

Service delivery processes

INFRASTRUCTURE SUPPORT In order to manage the entire process of service

management a well defined and organised system is required.

By implementing this system an organisation manages and integrates the important parts of service deliver such as planning, marketing, finance, human resources, operations and Customer relationship management.

The system in this context includes Infrastructure–basic physical, organizational structures and facilities required for the operations of a service enterprise. For instance information technology, hardware, software solutions, telecommunication system and other service management applications.

B. BACK OFFICE PROCESS:

Back office is a part of internal operations of a service enterprise that carries activities that are necessary to deliver service product, operations carried in back office are not accessible or visible to the customers.

To serve administrative department in their routine operations

Collaborate with sales and marketing teams to facilitate service delivery

Execute marketing research and surveys followed by reporting

Assist front office in preparing, scheduling and organizing meetings, events and appointments.

Perform competitor product analysis and prepare reports.

Assist front office staff in maintaining the office premises clean and neat.

Support sales staff in handling and documenting customer accounts.

Order fulfilment and client services

Document and case management

Why Back office? – Need, Role, objectives and Importance

C. FRONT OFFICE PROCESS: Front office in services marketing is the department responsible interacting

with outside entities such as customers and prospects.

Front office process is directly accessible and visible to customer in service delivery process, further front office co-ordinates with the back-office departments to maintain a two-way flow of information.

To understand customer expectations

To demonstrate service benefits

To deliver service with quality performance

To guide customers in buying decision

Employee quality, training and satisfaction issues

Why Front office? – Need, Function, Role, objectives and Importance

7. PHYSICAL EVIDENCE The last component in service marketing mix is a physical evidence, as

discussed earlier services are intangible in nature, therefore customers can’t see, touch, or smell service.

To create a better customer experience tangible clues has to be delivered with the service.

Service delivery processes

SERVICE PROCESS—WAY IN WHICH A SERVICE IS DELIVERED TO THE END CUSTOMER AND STEPS TAKEN TO ACHIEVE DESIRED RESULTS.

Deciding location of service delivery

Defining service standards

Establishing service approach

Assesing level of customer invovlement

Understand the nature of Service

DESIGNING THE SERVICE PROCESS: INFLUENCING FACTORS & STEPS

Understand: Nature of Service Some services requires more resources and some requires less, for

instance in order to deliver a tour package to a customer there are a number of activities involved—such as transport, accommodation, meals, attractions and entertainment, all this can be carefully combined into a complete packaged experience.

On the other hand some services requires less resources—Laundry, teaching, legal advisory.

What is the level of: Customer involvement Service experiences are the outcomes of interactions between

organizations, related processes, service employees and customers.

In many services customers themselves have vital roles to play in creating service outcomes and ultimately enhancing or detracting from their own satisfaction and the value received.

DESIGNING THE SERVICE PROCESS: Customer

involvementCustomer presence during service Delivery

Low Moderate HighCustomer input

not need for service deliver

Inputs are required to deliver service

effectively

High involvement of customer is

required to deliver personalized

service

Service Type

Dry cleaning & Laundry

Car wash Computer

servicing Utility Bills

payment To watch

movie in theatre

Amusement parks

Bus travel Junk food

Hair cut House

construction Computer

servicing Utility Bills

payment Tour package Catering service DTH cable

service Medical

Consultation

Marriage Counselling

Career Guidance

Coaching Fitness

programmes


Establishing: Service approach- Whether to standardize or customize For instance Lakmé Salon follows pre-defined operating

procedure (standardization) in delivering its services- this means customer would experience a minimal difference in full body massage availed in Bangalore or Delhi.

Concept of standardization is more suitable for high volume and non-focussed services in which customer involvement is very less or moderate.

Customization of Service It not a good idea to always standardize a service, customers

often appreciate a service that is tailored to match their requirements.

Thus customised service requires more focus and commitment from the service provider and greater degree of customer involvement is also required.


Defining: Service Quality & standards

Quality is the degree of excellence in performing a task and standards are acceptable way of delivering the output by use of establish principles.

The perception concerning the quality of service received by a customer determines customer satisfaction and loyalty

HOW TO MEASURE SERVICE QUALITY?

GAP analysis GAP analysis is process to measure the difference

between a customer’s expectation of a service quality and actual performance delivered by the service provider.

There are various methods of managing and assessing service quality, the most widely accepted service quality measurement concepts include SERVQUAL and GAP analysis.

Nature of GAP DescriptionKnowledge GAP

Difference between consumers’ expectations and management’s perceptions

Standards GAP Difference between management perceptions and service quality specifications the firm sets

Delivery GAP Difference between expected service and actual serviceCommunicationGAP

Difference between actual service provided to customer & service promised (communication- Oral or written)

HOW TO MEASURE SERVICE QUALITY?

SERVQUAL is a scale to measure consumers’ perceptions of service quality by using five dimensions that includes tangibles, reliability, responsiveness, assurance, and empathy.

Dimension

Description Evaluation Criteria Example

Tangibles

Physical evidence of the service

Appearance of physical facilities

Appearance of service personnel

Tools or equipment used to provide the service.

A clean and professional looking office.

A clean and well dressed lecturer.

The equipment used in a medical examination

Reliability

Consistency and

dependability in performing the service

Accuracy of billing or record keeping

Performing services when promised

An accurate bank statement

A confirmed hotel reservation

An airline flight departing and arriving on time

Responsiveness

Willingness or readiness of

employees to provide the

service

Returning customer phone calls

Providing prompt service

Handling urgent requests

A waiter re-filling a customer's glass of wine without being asked

An ambulance arriving within three minutes

AssuranceKnowledge/competence of employees and ability to convey trust

and confidence

Knowledge and skills of employees

Company name and reputation

Personal characteristics of employees

A highly trained financial adviser

A known and respected service provider

A doctor's bedside manner

Empathy

Caring and individual attention

provided by employees

Listening to customer needs

Caring about the customer's interests

Providing personalised attention

Also access with regard to approachability and ease of contact from the customer is of importance to issues that may be raised by the customer.

A store employee listening to and trying to understand a customer's complaint

A nurse counselling a heart patient


Identifying: Location of service delivery

In case of services place indicates where the service product is going to be located.

Place can be physical or virtual, in a case of a physical place, service provider and service recipient can physically meet and interact with each other whereas in a virtual place they meet through internet.

Service Blue Print

A service blueprint is a systematic representation of all the activities involved in a service process with a description specifying how the service will be provided.

1. Physical Evidence: All the tangible evidence that customer encounters before they buy a product service.

2. Customer Action: It is a step that customers take to buy a service influenced by physical evidence.

3. Points of Contact: This includes Onstage contact employee actions that involve face-to-face interactions with customers and also Backstage contact employee actions who are not accessible or visible to the customers, as they operate backstage to ensure that services are delivered.

4. Support processes: This constitutes people and technological infrastructure to facilitate the service process. individuals part of this section usually interact only with backstage contact employees.

5. Line of Difference:

1. Line of interaction: direct interactions between the customer and organization.

2. Line of visibility: this line separates all service activities that are visible to the customers from those that are not visible.

3. Line of internal interaction: separates contact employees activities from those of other service support activities and people.

Concept of Marketing Mix. The management process through which goods and services move from concept to the customer. Meaning Marketing is the process.

Documents

product stage

growth stage slide

mature stage slide

market share stage

life cycle definition

packing decisions slide

concept of marketing

sales introduction