Making Marketing Decisions (Marketing Management)

Category: Education

Presentation Description

A detailed presentation on making marketin decisions taking various aspects into account. An indepth explanation about product decisions, pricing decision, promotion decisions, distribution channels.


Presentation Transcript

Welcome to Marketing Management:

Welcome to Marketing Management

Making Marketing Decisions:

Making Marketing Decisions

Product Line Decisions:

Product Line Decisions A group of products that are closely related. They function in a similar manner. They are sold to the same customer groups. Marketed through the same types of outlets. Fall within the given price range.

Product Line:

Product Line In offering a product line, companies develop a basic platform that can be added to meet different customer requirements.

Sales and Profit:

Sales and Profit A company can classify its products into 4 types that yield different gross margins. This depends on the sales, volume and promotion. Core Products High sales volume Low margin

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2) Staples Lower sales volume Higher margin Specialists Lower sales volume Highly promoted 4) Convenience items High sales volume Less promotion

Product-Line Length:

Product-Line Length There are a number of different products in product line. A company places its products in product line in two ways. They are: Line Stretching Line Filling

Line Stretching:

Line Stretching This occurs when a firm lengthens its product-line beyond the current range. The company can stretch its line in three ways. They are: Down-market Stretch Up-market Stretch Two-way Stretch

Line Filling:

Line Filling Line filling is the introduction of new product line at about the same price as existing product.

Line Modernisation:

Line Modernisation Line modernisation is a strategy in which items in product line are modified to suit modern styling and tastes and then re-launched.

Line Featuring:

Line Featuring The product line featuring is used to boost demand for slower selling products.

Line Pruning:

Line Pruning Line pruning is used in identifying weak items through sales and cost analysis.


Brand The origin of the word ‘brand’ leads us to the Norwegian word ‘brandr’ meaning to burn. According to Philip Kotler – “A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.”

Brand Equity:

Brand Equity According to David Aaker – “Brand equity is the unique set of brand assets and liabilities that is linked to a brand.” A measure of brand’s equity is the extent to which customers are willing to pay more for the brand.

Structure of Assets Creating Brand Equity:

Structure of Assets Creating Brand Equity Brand Loyalty Name Awareness Perceived Quality Brand Association Other Assets

Brand Name or Symbol:

Brand Name or Symbol Value to Customers by Enhancing Interpretation & processing of Information Ease of making choice & decisions Confidence in the purchase decision Use satisfaction Value to the Firm by Enhancing Efficiency & Effectiveness of marketing program Brand Loyalty Prices and margins Brand extensions, trade leverage, competitive advantage.

Brand Strategy Decisions:

Brand Strategy Decisions

Brand Positioning:

Brand Positioning Level 1 Level 2 Level 3 Positioning based on product attributes Positioning based on a desired benefit to the customer Positioning based on beliefs and values

Brand Name Selection:

Brand Name Selection A brand name is selected after careful analysis of the product and its benefits, the target market and proposed marketing strategies. Desirable qualities of a brand name: Suggestive of product’s benefits and qualities. Easy to pronounce, recognize and remember. Must be distinctive. Should be extendable. Should translate into foreign languages. Capable of registration and legal protection.

Brand Name Protection:

Brand Name Protection The brand name, after selection, has to be legally protected to prevent competitors using the same name. Occasionally some brands become highly successful and lead to generic names used by all. For ex: ‘Purohit Sweets’ in Belgaum.

Brand Sponsorship:

Brand Sponsorship Manufacturer’s Brand : The product could be launched as a manufacturer’s brand. For ex: Philips, IBM, Bajaj, Amul etc Private Brand : The manufacturers may sell the product to resellers who give it a private brand name which is also known as store brand or distributor brand. For ex: FabMall, Nilgiri’s etc

Distinction of Brands:

Distinction of Brands

Advantages of Various Brands:

Advantages of Various Brands Manufacturer’s Brand Private Brand Develops Customer Loyalty Earns Higher Profits Attracts New Customers Less Pressure to mark down prices Enhances Prestige Direct Competition to Dealers Offers Rapid Delivery Ties Customer to Wholesaler Ensures Dealer Loyalty No Control Over Distribution of Manufacturer’s Brand


Licensing Licensing is the practice of leasing a legally protected property to another party in conjunction with a product, service or promotion. It is the contractual licensing of a right by a trade mark owner to a third party, to develop, distribute and sell a product or service, under that trademark name.


Co-Branding Co-branding is a pairing of two or more branded products to form either a separate and unique product or brand, or to attach the popularity of one product or brand to a newly formed brand. Lays with Masterpiece Barbecue sauce HP laptop with Intel processor

Brand Development:

Brand Development

Brand Extension:

Brand Extension Brand extension means extending an established and successful brand name to more products which may or may not be related to the core brand. Main product of Maggie Extension of brand to others

Line Extension:

Line Extension Line extension involves introduction of additional items in a given product category under the same brand name, such as new flavours, forms, colours, ingredients, package sizes etc.

Product Flanking:

Product Flanking Product flanking is the introduction of same product in different combinations with respect to sizes and prices to tap market opportunities. Flanking helps the consumers to choose the same product according to their needs. 500gm 200gm 100gm 50gm 1 kg

Multi Brands:

Multi Brands Additional brands are launched in the same category. It facilitates product differentiation, i:e to establish different features, attributes and appeal to different buying motives. HLL’s Soaps

New Brands:

New Brands A new brand name is created by a company when it enters a new product category for which the present brand name is found not suitable. Original Brand New Brand Fast Track

Other Decisions related to Brand:

Other Decisions related to Brand Brand Rejuvenation : It is the act of adding value to an existing brand by improving product attributes and enhancing its overall appeal. For ex: HLL’s Surf became Surf Excel, Surf Ultra. Brand Re-launch : Companies give one more trial with some modified attributes or features and aggressive promotional campaigns. This process is called brand re-launch. ‘Sweet for children’ position to a product ‘meant for celebration’ .

Brand Portfolios:

Brand Portfolios Brand portfolio is the set of all brands and brand lines which a particular firm offers for sale in a particular category or market segment. For ex: HLL offers product lines in bathing soaps, fabric wash, beverages etc in the FMCG category.

Pricing Decisions:

Pricing Decisions Price Price is the amount for which a product, service, or idea is exchanged or offered for a sale. Ex: Rent for a house, wages to workers etc


Pricing Meaning of pricing : Pricing is the art of translating value of the product into quantitative terms. Pricing involves selling pricing objectives, identifying the factors governing the price, ascertaining their relevance, formulation of price policies and strategies etc.

Importance of Pricing Decisions:

Importance of Pricing Decisions 1. Legal basis of a sale transaction. 2. Source of revenue 3. Influencing factor on demand 4. Determinant of profitability. 5. Complexity in pricing. 6. Competitive strategy

Factors Affecting Pricing Decisions:

Internal Factors External Factors Marketing mix strategy Market competition Product life cycle Economic situation Distribution Policy Suppliers Organization Moral consideration Objectives Govt. regulation Factors Affecting Pricing Decisions

Pricing Objectives:

Pricing Objectives To meet the competition To secure target market share To maximize profits To mobilize resources To utilize ideal capacity

Methods of Price Determination:

Methods of Price Determination Cost Based Pricing (Markup Pricing) Break Even Pricing (Target profit pricing) Demand Based Pricing Competition Based Pricing

Cost based pricing:

Cost based pricing

Break Even Pricing:

Break Even Pricing Break even is a situation in business where in the profits meet the costs incurred exactly. It is a position where the business is not making any losses but neither is it making profits.

Demand Based Pricing:

Demand Based Pricing

Competition Based Pricing:

Competition Based Pricing


Promotion Promotion : Activities meant to gain approval for one’s products or ideas in the minds of consumers. Definition : According to Brink & Kelly – “Promotion is the coordination of all seller initiated effort to set up channel of information and persuasion to facilitate the sale of goods or services or the acceptance of an idea.”

Promotion Decision:

Promotion Decision Meaning: Promotion decisions are guided by previous results. They are concerned not only with the target market channel of distribution to be used but also with price and product.

Steps in Promotion Decision:

Setting of clear objective Knowing about the Market Determining Promotion Budget Appealing to its nature and timing Patterning the promotion mix Steps in Promotion Decision

Objectives of Promotional Activities:

Objectives of Promotional Activities Demand Objectives Communication Objectives Specific Objectives

Components of Promotion Decisions:

Components of Promotion Decisions

Personal Selling:

Personal Selling Personal selling – It is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to “close the sale”.

Objectives of Personal Selling:

Objectives of Personal Selling To do the entire job. To serve the existing people. To obtain new customers. To obtain sales volume which contribute to profit objective. To keep personal selling expenses within certain limit. To secure a given percentage of sales of the overall sales target.

Process of Personal Selling:

Process of Personal Selling


Advertising According to American Marketing Association – “Advertising is any paid form of non-personal presentation and promotion of goods and services or ideas by an identified sponsor.”

Central Theme in Advertising:

Central Theme in Advertising The Theme of Beauty. The Theme of Health. The Theme of Pride. The Theme of Economy. The Theme of Patriotism.

Advertising Media:

Advertising Media Factors in selection of advertising media: Objective of advertising. Media Circulation The class of people. Business Unit Message to be sent The extent of competition. The cost of space.

Kinds of Advertising:

Kinds of Advertising Indoor advertising Outdoor advertising Direct advertising Promotional advertising

Sales Promotion:

Sales Promotion Meaning : Promotion means to push forward, to move forward or to advance and idea. Sales promotion is an attempt to increase the sales. According to American Marketing Association – “Sales promotion is those marketing activities other than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness such as display shows, expositions, demonstrations and various non-recurrent selling efforts not in the ordinary routine.”

Purpose of sales promotion:

Purpose of sales promotion Before promotional activities After promotional activities

Objectives of sales promotion:

Objectives of sales promotion To increase buying response. To increase sales efforts of dealers and sales personnel. To inform the public about new product, its specialties, attraction and advantages. To create a favourable attitude towards product. To motivate sales force.

Advantages of sales promotion:

Advantages of sales promotion It stimulates an attitude towards the product. It creates demand. It gives direct inducement to the consumers to take immediate action. It is flexible. It can be used at any stage during a new product introduction.

Kinds of sales promotion:

Consumer sales promotion : Activities aimed at reaching the consumer at his place maybe called as consumer sales promotion. Various sales promotion schemes used at consumer level are: sampling, coupons, demonstration, contests, money refund offers, premium offers, price off offers etc. Kinds of sales promotion

Dealer sales promotion:

Dealer sales promotion The activities aimed at increasing the interest and enthusiasm of dealers and distributors towards the manufacturer’s products is called as dealer sales promotion. Some of the dealer sales promotion devices are: buying allowances, merchandise allowances, price deals, push money, dealer sales contests, gifts, co-operative ads etc

Sales force promotion:

Sales force promotion Salesmen are a major component in the channel of distribution. Therefore to increase the effectiveness of salesman’s efforts sales force promotion activities are carried out. Tools for sales force promotion are : Bonus to sales force. Sales force contests. Salesmen meeting and conferences.

Qualities of Good Salesman:



Publicity Publicity is an act of making the product of one’s company known to the general and specific public through the use of various methods of publicity. For ex: Public demonstrations, exhibitions etc.

Marketing Channel:

Marketing Channel Marketing channels are a set of inter-dependant organisations involved in the process of making a product or service available for use or consumption. Channel Decisions – The manufacturer is required to take certain channel decisions i:e he struggles between what is ideal.

Marketing Distribution Channel:

Marketing Distribution Channel Manufacturer Consumer Manufacturer Retailer Consumer Manufacturer Wholesaler Retailer Consumer Manufacturer Agent Wholesaler Retailer Customer

Five Kinds of Flows in Marketing Channel:

Five Kinds of Flows in Marketing Channel Physical Flow Title Flow Payment Flow Information Flow Promotion Flow

Designing a Channel System:

Designing a Channel System Steps involved in designing a channel system Formulating the channel objectives. Identifying channel functions. Linking channel design to product characteristics. Evaluation of distribution environment. Evaluation of competitors’ channel designs. Matching the channel design to company resources. Evaluating the alternatives and selecting the best.

Formulating the channel objectives:

Formulating the channel objectives In formulating the channel objectives, firms expect from channels: Effective coverage of the target market. Efficient and cost effective distribution. Ensuring that consumers incur minimum exertion in procuring the product. Partnering the firm in financing and sub-distribution tasks.

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Thank You By – Neeraj Kulkarni

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