Presentation 4, End of Marketing Intern

The final piecePresentation

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Presentation tips by

Garr Reynolds &

Jesse Desjardins

5

In Presentation making

NOT ENOUGH VISUALS.

Poor Design

Visual Vomit

Lack of Preparation

Prepare

Start with pen and paper

Think how the presentation should be

Design

Follow the tips avoid the mistakes mentioned above

Rehearse delivering the presentation

Deliver

Stay Confident

Audience Oriented

Ditch the DiscountsBy Rafi Mohammed

Slides based on HBR article

The main point of the article

As the name suggests, main point is to literally “Ditch the discounts” during recession/low-demand period and instead go for “adaptive-pricing method” to cope up with it.

The article explains how “adaptive-pricing method” is better than “Ditch the discounts” in those periods; how the former can help the company regain its status when the period of recession/low-demand is over; etc.

What is

“Adaptive-pricing method”?

It capitalizes on the fact that different customers have different needs and therefore place different values on a given product or service.

The simplest adaptive-pricing method is called “versioning”—offering “good” “better” and “best” varieties of the same product.

Credit policies to boost sales also comes under adaptive-pricing method.

Issues involved with

Discounts.

Discounts devalue a product or service, limiting companies’ ability to raise prices as the economy improves.

It tells the market that the prices were too high before, and hence the customers start losing trust on the brand.

Even after the recession period is over discounts will remain the norm, the people(customers) get used to the discounts and with the tough competition, company have no option but to carry on with the discounts.

Advantages of

“Adaptive-pricing method.”

By using adaptive pricing, companies can adjust a product’s attributes to better appeal

to customers’ sense of value without necessarily dropping the price.

It provides increased flexibility as the economy begins to rebound.

How toUse Adaptive-pricing

methods

during recession/low-demand?

Introduce Lower-Priced Versions

In the Indian market, both BMW and Mercedes Benz have launched cheaper versions/models of their cars under

brand/product name X1 and A-Class respectively,to attract customers who avoided them due to high price.

Use Promotions to Avoid Price Drops

The 2 offers mentioned hereBuy 1 get 1 free equivalent to 50% off.Shop for 2000 get gift coupon worth 200 free, about 10% off.These type of discounting avoid devaluing the brand in consumers’ minds.

Adapt Products to Maintain Affordability

The strategy to decrease product size or volume, this way the company increases the price per unit but maintains the overall sticker price—the one consumers are more apt to notice.

Unbundle Services and Add Extra Fees

This strategy is too common in our country, From almost all car companies to various airlines use it.

This allows the company to advertise low prices and attract price-sensitive customers while earning higher profits from customers willing to pay a premium price for the premium model.

Airlines have option to select desired seat by paying extra, add luggage, add meals, etc in economy class itself along with the separate option to opt for a business class/premium ticket.

Spicejet recently launched “Travel Light, Save More” campaign/offer giving discounted air fairs to those travelling without check-in luggage.

We have various categories of a single car model in the market from a low model(without features like Air

Conditioner, Music System, AntiLock Braking System, etc) to a premium one containing them.

How toUse Adaptive-pricing

methods

during recovery?

Withdraw Recession-Pricing Tactics

Once the recession/low-demand period is over, the company can start withdrawing the tactics it used to cope up with the bad market.

Like P&G withdrew Tide Basic, which was launched in 2009 priced 20% less than regular tide, in 2010 as regular Tide began regaining market share in the U.S.

Introduce New Premium Products

As the economy picks up, take advantage of consumers’ willingness to splurge.

In Indian market we see newspapers like The Telegraph and hindustan times publishing special(premium) issues on Sundays at a higher rate.

Some

Examples of adaptive-pricing from Indian market

Cinema Hall pricing policy

The cinema halls charge money according to the place where the seat is situated.

The halls also provide discount/low-charge on morning shows.

Sometimes they provide extra ticket free on the purchase of 3-4 tickets on weekdays to attract customers.

Value Added ServicesBy various Telecom companies

All telecom companies in India provide “VAS” to its consumers/users.Value added services like jokes, caller tune, daily horoscopes, etc

They also provide plans and packs for their users according to the different requirements of different people, and hence both company and user can benefit the most out of it.

Big Bazaar’s Profit Club Card

This scheme is a fantastic marketing strategy used by Big Bazaar, it enabled them to not only boost up their sales but also “fixed” their customers’ monthly purchase for an entire year, making it invulnerable by the damage from market competition.

PAYBACKPayback is a loyalty program for customers of retail businesses, with which shoppers can collect points for purchases and redeem them for vouchers, goods or money.

It was launched in India in 2011, it has collaborated with many Indian retail brands and they together appeal to a very large market.

CreditsMarketing Management By Philip Kotler “Ditch the Discounts” HBR article by Rafi MohammedCreating presentations tips from Garr Reynolds and Jesse

DesjardinsWikipedia.orgPaybackBigbazaarMaruti Images from:• Google images• Mercedes Benz India• BMW India• www.dreamstime.com• cliparts.co• visual.ly

Thank You!

Created by Gaurav Rampuria, IIT Guwahati, during an internship by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com