8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
1/69
MGT301Principles of Marketing
Lecture-45
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
2/69
SummaryofLecture-44
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
3/69
Review-1
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
4/69
Todays Topics
Review-2
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
5/69
Individual Product Decisions
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
6/69
Product Attributes
Branding
Packaging
Labeling
Product Support Services
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
7/69
IdeaGeneration
Idea
Screening
ConceptDevelopmentand Testing
MarketingStrategy BusinessAnalysis
Product
Development
Test
Marketing
Commercialization
New Product Development
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
8/69
Time
ProductDevelopmentStage
Introduction
Profits
Sales
Growth Maturity Decline
Sales andProfits ($)
Sales and Profits Overthe Products LifeFrom
Inception to Demise
Product Life-CyclePLC)
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
9/69
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
10/69
Price The amount of money charged for a product or
service, or the sum of the values that consumers
exchange for the benefits of having or using the
product or service.
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
11/69
Factors Affecting Price Decisions
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
12/69
Internal Factors
Pricing
Decisions
External Factors
Target
Market
Positioning
Objectives
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
13/69
Total CostsSum of the Fixed and Variable Costs for a Given
Level of Production
Variable Costs
Costs that do varydirectly with the
level of production.
Raw materials
Fixed Costs
(Overhead)Costs that dont
vary with sales orproduction levels.
Executive Salaries
Rent
Costs
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
14/69
Fixed Costs Variable CostsRaw materials
Component parts
Hourly wages
Packaging & freight
Sales commissions
Rent
Depreciation
Managers salaries
Property taxes
Insurance
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
15/69
Setting Pricing Policy
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
16/69
Cost-based Pricing
Value-based Pricing
Competition-based Pricing
General Pricing Approaches
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
17/69
Break-evenforDetermining Target Return PriceandBreak-even Volume
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
18/69
Rupees
(inthous
ands)1200
1000
800
600
400
200
0
Total cost
Fixed cost
TargetprofitTotal revenue
10 20 30 40 50
Sales volume in units (thousands)
Break-even point
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
19/69
Market Skimming
MarketPenetration
New Product Pricing Strategies
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
20/69
Price - Quality Strategies
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
21/69
Premium
Strategy
Overcharging
Strategy
Good-Value
Strategy
Economy
Strategy
PriceHigher Lower
Higher
Lower
Quality
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
22/69
Discount and Allowance Pricing
Segmented Pricing
Psychological Pricing
Promotional Pricing
Geographical Pricing
International Pricing
Price-Adjustment Strategies
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
23/69
Price Changes
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
24/69
Responding to price changes
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
25/69
Hold Current Price;Continue to MonitorCompetitors Price.
Reduce Price
Raise PerceivedQuality
Improve Quality& Increase Price
Launch Low-Price
Fighting Brand
Has Competitor Cut
Price?
Will Lower Price
Negatively Affect OurMarket Share & Profits?
Can/ Should EffectiveAction be Taken?
Yes
No
No
No
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
26/69
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
27/69
Place DistributionChannel Marketing Channel
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
28/69
20 Contacts
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Customer
Customer
Customer
Customer
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
29/69
9 Contacts
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Customer
Customer
Customer
Customer
Wholesaling
Intermediary
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
30/69
ProducerAgent/
BrokerWholesaler Retailer Consumer
Producer Wholesaler Retailer Consumer
Producer Retailer Consumer
Producer Consumer
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
31/69
Selecting
FEEDBAC
K
Motivating
Training
Evaluating
Channel Management Decisions
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
32/69
Marketing Logistics and Supply ChainManagement
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
33/69
Inventory When to order?
How much to order?
Just-in-Time
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
34/69
RightProduct
Right
Cost
Right
Place
Right
Condition
Right Time
Customer Service Concept
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
35/69
Producer End usersInterme-diaries
Marketing
activities
Demand
Push Strategy
Demand
Push Versus Pull Strategy
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
36/69
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
37/69
Compete on value (not just price.)
Save customers time and energy.Make shopping fun.
Retailing and Wholesaling
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
38/69
Marketing Communications
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
39/69
Builds Relationships
Persuades
Informs
Reminds
Promotion and Its Goals
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
40/69
The Marketing CommunicationsMix
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
41/69
Advertising
Personal Selling
Any Paid Form of Non-personal Presentation by anIdentified Sponsor.
Sales Promotion Short-term Incentives toEncourage Sales.
Public RelationsBuilding Good Relations withVarious Publics by Obtaining
Favorable Unpaid Publicity.
Direct Marketing Direct Communications WithIndividuals to Obtain anImmediate Response.
Personal Presentations by aFirms Sales Force.
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
42/69
Setting the Promotion Mix
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
43/69
Advertising
A paid form of non-personal communication
about an organization and/or its products to
a target audience through a mass medium.
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
44/69
Personal sellingThe direct presentation of a product
to a prospective customer by a
representative of the selling
organization.
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
45/69
Sales promotion
Demand-stimulating activity designed to
supplement advertising and facilitatepersonal selling.
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
46/69
Public relationsA planned communication effort by an
organization to contribute to generally
favorable attitudes and opinions toward an
organization and its products.
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
47/69
Direct MarketingDirect connections with carefully targeted individual
consumers to obtain an immediate response and
cultivate lasting customer relationship
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
48/69
Step 1. Prospecting andQualifying
Step 2. Preapproach
Step 3. Approach
Step 4. Presentation/Demonstration
Identifying and Screening For
Qualified PotentialCustomers.
Learning As Much AsPossible About a ProspectiveCustomer Before Making a
Sales Call.
Knowing How to Meet theBuyer to Get the RelationshipOff to a Good Start.
Telling the Product Story tothe Buyer, and Showing theProduct Benefits.
Steps in the Selling Process
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
49/69
Step 5. Handling Objections
Step 6. Closing
Step 7. Follow-Up
Seeking Out, Clarifying,and Overcoming
Customer Objections toBuying.
Asking the Customer for
the Order.
Following Up After theSale to Ensure Customer
Satisfaction and RepeatBusiness.
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
50/69
Managing the Sales force
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
51/69
Designing Sales force Strategy and Structure
Recruiting and Selecting Salespeople
Training Salespeople
Compensating Salespeople
Supervising Salespeople
Evaluating Salespeople
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
52/69
Competitive Strategies
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
53/69
Market Leader
Market Challenger
Market Follower
Market Nicher
Competitive Positions
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
54/69
Global Village
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
55/69
Global Marketplace
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
56/69
Think Globally ActLocally
Global Marketing
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
57/69
e-Marketing
New Tool to Reach Consumer
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
58/69
Internet
Postal Service
Television
Telephone
Radio
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
59/69
Marketing and Society
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
60/69
Current Issues in Marketing
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
61/69
The current issues and marketing can be dividedinto two major subjects:
Social responsibility
Ethics
The two concepts are very closely related
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
62/69
Summary Marketing Management
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
63/69
TargetConsumers
Product
Place Price
Promotion
Competitors
Marketing
Intermediaries
PublicsSuppliers
Demographic-Economic
Environment
Technological-Natural
Environment
Political-Legal
Environment
Social-Cultural
Environment
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
64/69
Simple Marketing System
Producer/Seller Consumer
Communication
Product/Service
Money
Feedback
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
65/69
Marketing Process
The process of :
Analyzing marketing opportunities
Selecting target markets
Developing the market Mix
Managing the marketing effort
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
66/69
Marketing in Theory and Practice
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
67/69
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
68/69
Enough for Marketing. . .
8/13/2019 Principles of Marketing - MGT301 Power Point Slides Lecture 45
69/69
MGT301Principles of Marketing
Lecture-45