Slide 1: The business activity of presenting
products or Services
in such a way as to make them
desirable PRODUCT MARKETING By Saima Yasmin Khan
2008.MS.EM.05 MSc .Engineering Management, Deptt. Of IME
University of Engineering & Technology, Lahore, Pakistan Presentation Overview : Presentation Overview 1. Role of Marketing
2. Marketing Concepts
3. Marketing Objectives
4. Marketing Process Role of product marketing : Role of product marketing Product marketing in a business addresses four important strategic questions:
What products will be offered (i.e., the breadth and depth of the product line)?
Who will be the target customers (i.e., the boundaries of the market segments to be served)?
How will the products reach those customers (i.e., the distribution channels to be used)?
Why will customers prefer our products to those of competitors (i.e., the distinctive attributes and value to be provided)? The Marketing Concept : The Marketing Concept The marketing concept is the philosophy that firms should
analyze the needs of their customers and then make decisions
to satisfy those needs, better than the competition. 1. Focusing on customer needs before developing the product 2. Aligning all functions of the company to focus on those needs 3. Realizing a profit by successfully satisfying customer
needs over the long-term Slide 5: Step 1: EvaluationHow your product will best fit in marketplace
Step 2: ReviewData analysis leads to a clear plan of action
Step 3: ExecutionProduct is managed to achieve success Marketing Objectives Slide 6: 1.Situation Analysis 2.Marketing Objectives 4.Marketing Mix Decisions 5.Implementation & Control 3.Marketing Strategy Marketing Process Slide 8: 1. Situation Analysis There are several frameworks that can be used to add structure
to the situation analysis 5 C Analysis
climate. PEST analysis
economic, societal, and
technological factors SWOT analysis
opportunities, and threats 5 C Analysis : 5 C Analysis 1.Company
Image in the market
Technology and experience
Market size and growth
Benefits that consumer is seeking, tangible and intangible.
Motivation behind purchase; value drivers, benefits vs. costs
Decision maker or decision-making unit
Retail channel - where does the consumer actually purchase the product?
Consumer information sources - where does the customer obtain
information about the product?
Buying process; e.g. impulse or careful comparison
Frequency of purchase, seasonal factors
Quantity purchased at a time
Trends - how consumer needs and preferences change over time 5.Climate (or context)
The climate or macro-environmental factors are:
Political & regulatory environment
governmental policies and regulations that affect the market
business cycle, inflation rate, interest rates, and other macroeconomic issues
society's trends and fashions
new knowledge that makes possible new ways of
the impact of technology on the demand for existing
Actual or potential
Direct or indirect
Strengths and weaknesses
of competitors PEST Analysis : PEST Analysis 1.Political Analysis
Risk of military invasion
Legal framework for contract enforcement
Intellectual property protection
Trade regulations & tariffs
Favored trading partners
Taxation - tax rates and incentives
Wage legislation - minimum wage and overtime
Mandatory employee benefits
Industrial safety regulations
Product labeling requirements 4.Technological Analysis
Recent technological developments
Technology's impact on product offering
Impact on cost structure
Impact on value chain structure
Rate of technological diffusion 2.Economic Analysis
Type of economic system in countries of operation
Government intervention in the free market
Comparative advantages of host country
Exchange rates & stability of host country currency
Efficiency of financial markets
Skill level of workforce
Business cycle stage
(e.g. prosperity, recession, recovery)
Economic growth rate
Inflation rate & Interest rates 3.Social Analysis
Culture (gender roles, etc.)
Attitudes (health, environmental consciousness, etc.)
Leisure interests SWOT Analysis : SWOT Analysis Situation Analysis
Internal Analysis External Analysis
Strengths Weaknesses Opportunities Threats
SWOT Profile Internal Analysis
Access to natural resources
Position on the experience curve
Patents and trade secrets External Analysis
Political and regulatory environment Slide 12: 1. Specific :Be precise about what you are going to achieve 2.Measurable :Quantify your objectives 3.Achievable :Are you attempting too much? 4.Realistic : Do you have the resource to make the objective happen
(men, money, machines, materials, minutes)? 5.Timed : State when you will achieve the objective (within a month 2. Marketing Objectives SMART objectives 3. Marketing Strategy : 3. Marketing Strategy Describe your target market
How will we target the segment?
How should we position within the segment?
Why this segment and not a different one? (This will focus the mind).
Define the segment in terms of demographics and lifestyle.
Show how you intend to 'position' your product or service within that segment. strategic marketing decisions Slide 14: The selected strategy may aim for any of a variety of specific objectives, including
optimizing short-term unit margins
or other goals Targets of marketing strategy Slide 15: To achieve the desired objectives, marketers typically identify one or more target customer segments which they intend to pursue. Customer segments are often selected as targets because they score highly on two dimensions:
The segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high prices), or other factors.
The company has the resources and capabilities to compete for the segment's business, can meet their needs better than the competition, and can do so profitably.
The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segments than it will for other, non-targeted customers. Slide 16: In conjunction with targeting decisions, marketing managers will identify the desired positioning they want the company, product, or brand to occupy in the target customer's mind. This positioning is often an encapsulation of a key benefit the company's product or service offers that is differentiated and superior to the benefits offered by competitive products.
For example, Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in "safety", whereas BMW has traditionally positioned its brand to be perceived as the leader in "performance."
Ideally, a firm's positioning can be maintained over a long period of time because the company possesses, or can develop, some form of sustainable competitive advantage. The positioning should also be sufficiently relevant to the target segment such that it will drive the purchasing behavior of target customers. : The 4 P's of Marketing
Marketing decisions generally fall into the following four controllable categories:
Promotion These four P's are the parameters that the marketing manager can control,
subject to the internal and external constraints of the marketing environment.
The goal is to make decisions that center the four P's on the customers in the
target market in order to create perceived value and generate a positive
response. 4. The Marketing Mix Decisions Slide 18: Brand name Functionality Styling Quality Safety Packaging Repairs &
Support Brand Warranty Accessories &
services The term "product" refers to tangible, physical products as well as services.
Here are some examples of the product decisions to be made: PRODUCT 1.Product Decisions Slide 19: Pricing strategy
(skim, penetration, etc.) Suggested retail price Volume discounts and
wholesale pricing Cash & early payment
discounts Seasonal pricing Seasonal Bundling Price flexibility Price discrimination Some examples of pricing decisions to be made include 2.Price Decisions 3.Distribution (Place) Decisions : 3.Distribution (Place) Decisions Distribution
channels Market coverage
distribution) Specific channel
management Warehousing Distribution
processing Transportation Reverse
logistics Distribution is about getting the products to the customer Some examples of
distribution decisions include 4.Promotion Decisions : 4.Promotion Decisions In the context of the marketing mix, promotion represents the various
aspects of marketing communication, that is, the communication of
Information about the product with the goal of generating a positive
customer response. Promotional strategy
(push, pull, etc.) Personal selling
& sales force Marketing
budget Sales promotions Public relations
publicity Advertising Marketing
decisions include Slide 22: At this point in the process, the marketing plan has been developed and the product has been launched.
Results of the marketing effort should be monitored closely. As the market changes, the marketing mix can be adjusted to accommodate the changes.
Often, small changes in consumer wants can addressed by changing the advertising message.
As the changes become more significant, a product redesign or an entirely new product may be needed.
The marketing process does not end with implementation - continual monitoring and adaptation is needed to fulfill customer needs consistently over the long-term. 5. Implementation and Control Slide 23: Start-up costs Monthly budgets Sales figure Market share data Consider the cycle
of control Remember that there is no planning without control. Control is vital 5. Marketing Controls Slide 24: The market success of any existing or new product is based on strong marketing to create and communicate meaningful customer value.
A comprehensive structure of advertising, public relations development and product marketing strategies is required to build the life-support system for the product success.