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The offer you make to your customer can be altered by varying the mix elements. So for a high profile brand, increase the focus on promotion and desensitize the weight given to price. Slide 5: Another way to think about the marketing mix is to use the image of an artist's palette. Marketing Mix : Marketing Mix The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final colour. Every hand painted picture is original in some way, as is every marketing mix. Target Market is the key : Target Market is the key Competition Designing the right marketing mix : Designing the right marketing mix The most creative & challenging step in marketing is designing the right marketing mix The marketing mix is the specific collection of actions & associated instruments employed by an organisation to stimulate acceptance of its ideas, products & services Total Offer to the Customer : Total Offer to the Customer First, the firm chooses the product to meet the identified need of the target segment Second, the right distribution channel is used to make the product available Third, the firm undertakes eye catching promotion Fourth, the price platform is acceptable to the customer & firm E. Jerome McCarthy : E. Jerome McCarthy A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has seen wide use. 4Ps & 4Cs : 4Ps & 4Cs Product- Customer /Consumer Price- Customer cost Place- Convenience Promotion- Communication 4Ps & 4Cs : 4Ps & 4Cs Four Cs The Four Ps is also being replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication. The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing. Product- Consumer : Product- Consumer The product part of the Four Ps model is replaced by consumer or consumer models, shifting the focus to satisfying the consumer. Price- Cost : Price- Cost Pricing is replaced by cost, reflecting the reality of the total cost of ownership. Place- Convenience : Place- Convenience Placement is replaced by the convenience function. With the rise of internet and hybrid models of purchasing, place is no longer as relevant as before. Convenience takes into account the ease to buy a product, find a product, find information about a product, and several other considerations. Promotion- Communication : Promotion- Communication Finally, the promotions feature is replaced by communication. Communications represents a broader focus than simply promotions. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer. Extended Marketing Mix : Extended Marketing Mix There have been attempts to develop an 'extended marketing mix' to better accommodate specific aspects of marketing. For example, in the 1970s, Nickels and Jolson suggested the inclusion of packaging. In the 1980s Kotler proposed public opinion and political power Booms & Bithner : Booms & Bithner Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy: People – all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers. Process – procedures, mechanisms and flow of activities which lead to an exchange of value. Physical evidence – the direct sensory experience of a product or service that allows a customer to measure whether he or she has received value. Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered Extended- Marketing Mix : Extended- Marketing Mix Extended Marketing Mix : Extended Marketing Mix Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy: People Process Physical Evidence Extended Marketing Mix : Extended Marketing Mix People : People People – all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers. Process : Process Process – procedures, mechanisms and flow of activities which lead to an exchange of value. Physical Evidence : Physical Evidence The direct sensory experience of a product or service that allows a customer to measure whether he has received value. Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered. Physical Evidence : Physical Evidence Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. Physical evidence : Physical evidence There are many examples of physical evidence, including some of the following: Packaging. Internet/web pages. Paperwork (such as invoices, tickets and despatch notes). Brochures. Physical Evidence : Physical Evidence Furnishings. Signage (such as those on aircraft and vehicles). Uniforms. Business cards. The building itself (such as prestigious offices or scenic headquarters). 7Ps & 7Cs : 7Ps & 7Cs Fundamental Actions : Fundamental Actions The term 'marketing mix' however, does not imply that the 4P elements represent options. They are not trade-offs but are fundamental marketing issues that always need to be addressed. They are the fundamental actions that marketing requires whether determined explicitly or by default. Optimizing the marketing mix-1 Strategic & Tactical Changes : Optimizing the marketing mix-1 Strategic & Tactical Changes Broadly defined, optimizing the marketing mix is the primary responsibility of marketing. By offering the product with the right combination of the four Ps marketers can improve their results and marketing effectiveness. Strategic & Tactical Changes Optimizing the marketing mix-2 : Optimizing the marketing mix-2 Making large changes in any of the four Ps can be considered strategic. Making small changes in the marketing mix is typically considered to be a tactical change. Optimizing the marketing mix-3 : Optimizing the marketing mix-3 For example, a large change in the price, say from Rs19.00 to Rs39.00 would be considered a strategic change in the position of the product. However a small change of Rs130 to Rs129.99 would be considered a tactical change, potentially related to a promotional offer. Product : Product Product: A product, service or idea is that which satisfies the needs & wants of the customers Product- (Learn) : Product- (Learn) A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits. Product : Product Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ever-present mass produced service is a computer operating system. Product : Product Cars Cars- Reva : Cars- Reva Reva Car- Maruti 800 : Car- Maruti 800 Maruti Product : Product Variety Quality Design Features Brand Name Packaging Service Product Variety : Product Variety Even today, manufacturers of products which are built to customer order, for example, cars, aeroplanes and medical equipment, offer such a large range of combinations of product features that millions of variants of a single product are possible. Commercially available software systems support the automation of many aspects of the engineering process; product databases enable the description of single products and engineering applications can use these product descriptions to carry out their tasks. Product Quality : Product Quality A product or process that is reliable, and that performs its intended function is said to be a quality product. Quality in business, has an interpretation as the non-inferiority or superiority of something. Quality is a perceptual, conditional and somewhat subjective attribute and may be understood differently by different people. Consumers may focus on the specification quality of a product/service, or how it compares to competitors in the marketplace. Product design : Product design Product design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object or service Brand Name : Brand Name The brand name is often used interchangeably within "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of any product. In this context a "brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services Product : Product Instruments that aim at satisfaction of the prospective exchange party’s needs Examples: Product characteristics, options, assortments, packaging, guarantees, quality, features, style, brand name, size & packaging, services, warranties/guarantees, returns & replacements Product : Product Titan introduces quartz watches 24 Hour banking & ATMs by banks Tetra pack cartons for milk, juices Indoor coolers 7 year warranty on refrigerators- Allwyn Product & Packaging : Product & Packaging FMCG : FMCG Product : Product Consumer durable products Products : Products Increase in mobile services in India Product- Durable : Product- Durable Washing machines Product : Product Camera Product : Product Products : Products Latest Gadgets New generation products : New generation products Ipod, & walkman mobile Services : Services Courier Aviation Services : Services Despatch Modern gadgets : Modern gadgets ipod Aviation : Aviation Place : Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Place : Place Physical distribution are activities involved in transporting products from the producer to the consumer: Mode of transport Warehousing & Storage Order processing Inventory control Place : Place Channels of distribution are the routes through which the ownership of goods flow on its way from the producer to the customer Distributor Super-stockist Wholesalers Retailers Place : Place Instruments that determine the intensity & manner in which goods or services will be made available Types of channels, density of distribution, trade-relation mix, merchandising advise Place : Place Channels Coverage Locations Inventory Transportation Logistics Duty Free Stores - Airports : Duty Free Stores - Airports Hypermart-Store Signage's : Hypermart-Store Signage's Availability- Place : Availability- Place Large Format stores Large Format Stores : Large Format Stores Lifestyle Westside Shoppers Stop Pantaloons Big Bazaar Retail brands : Retail brands Stores Nokia Store : Nokia Store Place : Place Global Players in India Place : Place Markets Place : Place Stores Modern Grocery Store : Modern Grocery Store Local stores : Local stores Local kirana stores Price : Price The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. Price : Price List Price Discounts Allowances Payment Period Credit Terms List Price : List Price In retail, price regularly quoted to customers before applying discounts. List prices are usually the prices printed on dealer lists, invoices, price tags, catalogs, or dealer purchase orders. Price Lists : Price Lists Discounts & Allowances : Discounts & Allowances Discounting is a financial mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a charge or fee Discounts and allowances are reductions to a basic price of goods or services. Payment Period & Credit Terms : Payment Period & Credit Terms The stipulation by a business as to when it should be paid for goods or services supplied, for example, cash with order, payment on delivery, or within a particular number of days of the invoice date Price : Price Bills Price : Price Price is the amount a consumer pays in exchange for the product or service. Marketers must consider the following in setting prices: Price : Price Target segment- How much the target segment is willing to pay at different price levels- price elasticity of demand Cost- How much it costs the firm to produce & market the product Competition- Prices of competitors Society & Law- Within legal framework Price elasticity of demand-1 : Price elasticity of demand-1 Elasticity is a measure of responsiveness. Two words are important here. The word "measure" means that elasticity results are reported as numbers, or elasticity coefficients. The word "responsiveness" means that there is a stimulus-reaction involved. Some change or stimulus causes people to react by changing their behavior, and elasticity measures the extent to which people react. Price elasticity of demand-2 : Price elasticity of demand-2 The most common elasticity measurement is that of price elasticity of demand. It measures how much consumers respond in their buying decisions to a change in price. The basic formula used to determine price elasticity is e= (percentage change in quantity) / (percentage change in price). (Read that as elasticity is the percentage change in quantity divided by the percentage change in price.) Price : Price Marketers have to determine prices to consumers & channel partners Prices across models & geographic regions have to be established Policies on discounts have to be framed These decisions are vital to enhance sales volumes Innovative Discounts : Innovative Discounts Discount sales in shopping malls Off season sales Closing down sales Festival sales Credit points Exchange offers – mobiles, cookers, cars Festive Sales : Festive Sales Christmas & Diwali Sales Innovative discounts : Innovative discounts Discounts End of season sale : End of season sale Special Sales : Special Sales Sales Gold Sale- Impact : Gold Sale- Impact Festive season revives gold demand, premiums steady Report- Gold Sales : Report- Gold Sales Wednesday August 12, 01:40 PM Festive season revives gold demand, premiums steady SINGAPORE/MUMBAI (Reuters) - Gold trading picked up in India, the world's largest consumer, as jewellers took advantage of a price drop to replenish stocks during the festive season, while premiums for kilobars were mostly steady in Asia in the past week. Discount Rush : Discount Rush Promotion : Promotion Promotion activities are meant to communicate & persuade the target market to buy the company’s products This is done by:- Promotion : Promotion Advertising Personal selling Sales promotion- POS Public Relations Word of mouth – Viral advertising Promotion : Promotion Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has five distinct elements – advertising, personal selling, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the five principal elements together Advertising covers any communication that is paid for, from and cinema commercials, radio and Internet adverts through print media and billboards. ATL & BTL : ATL & BTL Above the line (ATL) is an advertising technique using mass media to promote brands. Major above-the-line techniques include TV and radio advertising, print advertising and internet banner ads. This type of communication is conventional in nature and is considered impersonal to customers. The ATL strategy makes use of current traditional media: television, newspapers, magazines, radio, outdoor, and internet. It differs from BTL (Below the line), that believes in unconventional brand-building strategies, such as direct mail. BTL- Below the line : BTL- Below the line The terms "below the line" promotion or communications, refers to forms of non-media communication, even non-media advertising. Below the line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in FMCG products, but also for industrial products. ATL & BTL : ATL & BTL What’s the difference between ‘Above the line’ and ‘below the line’ advertising? Below the line (BTL) is an advertising technique. It uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than ATL (Above the line) strategy. These may include activities such as direct mail, public relations and sales promotion for which a fee is agreed upon and charged up front. Below the Line : Below the Line Below the line advertising typically focuses on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates The term "Below the Line" is rapidly going out of fashion in advertising circles as agencies and clients switch to an 'Integrated Communication Approach.' BTL is a common technique used for touch and feel products. Those consumer items where the customer will rely on immediate information than previously researched items. BTL techniques ensures recall of the brand while at the same time highlighting the features of the product. Integrated Communication Approach : Integrated Communication Approach Definition: A management concept that is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. Through the line-TTL : Through the line-TTL Through the line" refers to an advertising strategy involving both above and below the line communications in which one form of advertising points the target to another form of advertising thereby crossing the "line". An example would be a TV commercial that says 'come into the store to sample XYZ product'. In this example, the TV commercial is a form of "above the line" advertising and once in the store, the target customer is presented with "below the line" promotional material such as store banners, competition entry forms, etc Personal selling : Personal selling Personal Selling: Face to face personal communication- Eureka Forbes In person selling, tele-marketing Advertising- Mass communication efforts through media Sales Promotion- Communication through contests, OOH, trade shows, free samples, yellow pages, call helplines Personal Selling : Personal Selling Personal Selling Discount coupons : Discount coupons Discount coupons Promotion-2 : Promotion-2 Publicity- Communicating with an audience by personal or non-personal media that are not paid for delivering the message Print media news, broadcast media news-UTI,PTI, Reuters, annual reports, speeches by employees Branding : Branding Signages Known companies : Known companies Recognizable companies Nokia : Nokia Nokia Messages : Messages Fly High Examples-LuxSame theme over the years : Examples-LuxSame theme over the years Chips : Chips Competition Celebrity endorsement : Celebrity endorsement Using famous people to attract target segment ICICI Bank- Print Ad : ICICI Bank- Print Ad Brand AmbassadorStar Power : Brand AmbassadorStar Power TV Channels : TV Channels TV Channels : TV Channels TV Channels : TV Channels TVC TV Channels : TV Channels TV Channels : TV Channels More than just news : More than just news Entertaining information to add spice First thing in the morning : First thing in the morning Print Media : Print Media Print- Newspapers & Magazines Newspapers : Newspapers Print Media : Print Media Newspapers & Magazines Read everywhere : Read everywhere Omnipresent Newspapers you could read : Newspapers you could read Economic Times Business Standard Mint Hindu Businessline Business News in daily newspapers The Hindu Radio : Radio Growing radio stations in India Radio Stations : Radio Stations Numerous- FM Radio channels : Radio channels Meow targets at women Bajaate Raho- Red FM : Bajaate Raho- Red FM Radio on the internet : Radio on the internet On the internet Videos can be uploaded : Videos can be uploaded Companies upload their corporate films www.youtube.com Sales Staff & PR : Sales Staff & PR Sales staff often plays an important role in word of mouth and Public Relations Public Relations : Public Relations Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Press Release : Press Release Press Release Public Relations : Public Relations Press Conferences Media Entertainment : Media Entertainment PR Material : PR Material Press kit to be given to press with all info. Press Conference : Press Conference Spokesperson of the company talks to the press Client Meetings : Client Meetings Word of mouth publicity Word of mouth publicity : Word of mouth publicity Word of mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication but now includes any type of human communication, such as face to face, telephone, email, and text messaging Word of mouth publicity : Word of mouth publicity Salespersons Word of mouth publicity : Word of mouth publicity At meetings Competitors : Competitors Responding to competitor activity & messages You may have seen similar activity in cola ad wars Reports in media : Reports in media Cola war shifts to a new turf The famous cola wars have found a new battleground — the Indian fields. The world’s largest beverage company Coca-Cola, like its rival PepsiCo, is finalising plans for sourcing fruit from India for its juice brands. OOH : OOH Cola vans act as OOH OOH : OOH Pepsi van OOH : OOH Cola signages Vending Machines : Vending Machines Vending machine- Note both brands Recognizable logos : Recognizable logos Coke vs Pepsi Sales Promotion : Sales Promotion Yeh Dil Maange More!!! Point of Sales : Point of Sales Point of sales (POS) or checkout refers to both a checkout counter in a shop, and the location where a transaction occurs POS Display : POS Display Cola Ads-Promotion : Cola Ads-Promotion Cola drinks- Thums Up, Coca Cola Vodafone vs Airtel : Vodafone vs Airtel Airtel : Airtel Telecom Ad- Messages : Telecom Ad- Messages Airtel- Now Airtel removes distances across India. Vodafone- Happy to Help Spice- Faltoo callers ki No Entry Vodafone vs Airtel Ads : Vodafone vs Airtel Ads Signages : Signages Celebrity endorsement Reliance Telecom : Reliance Telecom Reliance Reliance Mobile- Hritik : Reliance Mobile- Hritik Reliance Mobile : Reliance Mobile Hritik Roshan What an idea, Sirji : What an idea, Sirji Walk when you talk OOH- Idea Cellular : OOH- Idea Cellular Idea Cellular : Idea Cellular IDEA’s ad campaigns based on the theme of ‘Democracy’; ‘Championing a world without caste’; ‘Championing a world in which no one suffers from the disability to communicate’; and ‘Education for All’, have been a huge success amongst all categories of audience. Effectiveness of Campaign : Effectiveness of Campaign The testimony of the success of the campaign is reflected from the rapid growth of IDEA’s subscriber base in the country. The Aditya Birla Group company has grown to become the 3rd largest private GSM operator with over 43 million subscribers across 16 service areas, nationally. Bus shelters : Bus shelters Same message across all media Outdoor : Outdoor Hoarding/Billboard OOH : OOH Signages & Gates Brands using OOH : Brands using OOH Amul Mobile truck- OOH : Mobile truck- OOH Outdoor trucks with billboard Trade Shows & Events : Trade Shows & Events Trade Shows Events Wall paintings- Shutters : Wall paintings- Shutters Websites : Websites Airline Ad Wars : Airline Ad Wars Marketers should be ready to face communication challenges Jet Airways- We’ve Changed Kingfisher- We made them change Go Air- We’ve not changed; we are still the smartest way to fly Ad wars : Ad wars In Mumbai- Same location on Nariman Point Viral Marketing- Word of mouth : Viral Marketing- Word of mouth Viral marketing depends on a high pass-along rate from person to person. If a large percentage of recipients forward something to a large number of friends, the overall growth snowballs very quickly. If the pass-along numbers get too low, the overall growth quickly fizzles. Viral Marketing : Viral Marketing Word of mouth Word of Mouth Publicity : Word of Mouth Publicity On the internet : On the internet On the Internet, viral marketing is any marketing technique that induces Web sites or users to pass on a marketing message to other sites or users, creating a potentially exponential growth in the message's visibility and effect. Hotmail- Excellent Viral Marketing : Hotmail- Excellent Viral Marketing Hotmail--One example of successful viral marketing is Hotmail, a company, now owned by Microsoft, that promotes its service and its own advertisers' messages in every user's e-mail notes. www.hotmail.com : www.hotmail.com Hotmail- Viral Marketing : Hotmail- Viral Marketing In 1996, Hotmail was a particularly unique email service in that it was free, could be accessed anywhere, and would allow the user to have multiple accounts. One of the interesting things Hotmail did was it would attach the message "Get your free email at Hotmail" at the bottom of every email sent by a Hotmail user. Once the receiving user clicked on the word "Hotmail" they were taken to Hotmail's homepage where the free email service was further explained. The plan, original at the time, worked. By 1998, Hotmail had accumulated 12 million subscribers. Hotmail eventually sold to Microsoft for a cool $400 million. Cadbury’s in UK : Cadbury’s in UK Cadbury's Dairy Milk 2007 Gorilla advertising campaign was heavily popularised on YouTube and Facebook. Gorilla : Gorilla Gorilla is a British advertising campaign launched by Cadbury Schweppes in 2007 to promote Cadbury Dairy Milk-brand chocolate. The 90-second television and cinema advertisement, which formed the centrepiece of the £6.2 million campaign, was created and directed by Juan Cabral and starred actor Garon Michael. The campaign itself, which comprised appearances on billboards, print newspapers and magazines, television and cinema spots, event sponsorships and an internet presence, was handled by advertising agency Fallon London, with the online segment contracted out to Hyper. Gorilla Ad Campaign : Gorilla Ad Campaign Gorilla Campaign Definition- Viral Marketing : Definition- Viral Marketing The buzzwords viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of pathological and computer viruses. It can be word-of-mouth delivered or enhanced by the network effects of the Internet. Viral promotions may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, or even text messages. The basic form of viral marketing is not infinitely sustainable. Going Viral : Going Viral Funny Helpful & Unique Controversial Amazing & Spectacular Schematic Word of Mouth : Word of Mouth Word of Mouth Viral Marketing- Internet : Viral Marketing- Internet Social Networking sites Close to 35 million internet users in India : Close to 35 million internet users in India According to Internet market research firm comScore Inc. India had 34.6 million Internet users (who access the Web from their homes/offices) in June, of which at least 65%, or 22.61 million, accessed social networking sites. These figures have meant that people have kept launching new social sites in India fuelled by the hype but success is still far for them. T-Shirts : T-Shirts T-Shirts with company & Logo message Inflated Balloons : Inflated Balloons Scooter covers : Scooter covers You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.