Marketing Planning, Types of Marketing Planning

Marketing Planning
Types of Marketing Planning
Factors affecting Marketing Planning

1. Marketing Planning Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning is simply a rational approach to accomplish an objective. It bridges the gap from where we are & where we want to go. Planning is the first management function to be performed in the process of management. It governs survival, growth and prosperity of any enterprise in a competitive and ever-changing environment.

2. Planning is an analytical process which covers:

3. Definition of Marketing Planning: The American Marketing Association has defined the marketing planning as – “Marketing planning is the work of setting up objectives for marketing activity and of determining and scheduling the steps necessary to achieve such objectives”. Thus, under marketing planning first of all marketing objectives are set-up and then marketing activities like – purchase-sale, product planning and development, advertisement, sales-promotion and scheduled policies and programme to carry out these activities are prepared.

4. Types of Marketing Planning:

5. Long-Term Marketing Planning: It refers to that marketing planning which is done for more than one year. It involves development of basic objectives and strategy to guide future company efforts. These long-run plans provide the framework within which other short-term plans are prepared and implemented. These plans are generally done by the top management. It involves the selecting of marketing research programme , selection of channel of distribution, selection of price policy, selection of media advertising and sales promotion etc.

6. Short-Term Marketing Planning: Planning made for less than one year for marketing activities refers to short-term marketing planning. Generally, these are annual or bi-annual plans of the company. In fact, these short-run plans are not possible in absence of the long run plan. These plans are made to solve problems of recurring nature. Short-term marketing planning is the responsibility of medium level of management.

7. Factors Affecting Marketing Planning:

8. ( i ) Internal Factors: Internal factors are those factors which arise in the organization itself. It includes size of the company, risk bearing capacity of the company; financial resources of the company; organizational structure; availability of experienced marketing personals and channel of distribution etc.

9. (ii) Industry Factors: Every firm is a part of total industry. Any change in factors related to industry also affects the organization. Various industrial factors are technological changes in industry; severity of competition in industry and relationship between organization and industry etc.; which affect marketing planning of an organisation .

10. (iii) Natural Factors: Certain natural factors like population and its regional distribution; National income and regional distribution; regional development in the country; State of national economy; industrial policy in the country and trade policy of country etc. also effect the marketing planning of an organization.

11. Marketing Planning System:

12. a. Product Oriented Organization: Under product oriented marketing organization, marketing plans for each product is made separately. In these organizations plan for each product is set separately and then detail programme for achieving these targets are made. In such planning amount to be spent on advertising, sales promotion, product development, market research etc. are fixed for each product. In same way decisions are taken separately for each product regarding its distribution and marketing etc.

13. b. Customer Oriented Organization: This type of organization is based on the different characteristics of customers. Separate marketing plans are prepared for each class of customers. The objectives and goals of the organization are set keeping in view the characteristics of each class of customers and decisions regarding advertising, sales promotion, pricing, distribution etc. are made accordingly.

14. c. Market Oriented Organization: These are those organizations in which different target for different regions are fixed and programmes are prepared to achieve these objectives or targets. In this type of organization decision regarding advertising, sales promotion, distribution channels and pricing etc. are made keeping in view the nature and intensity of competition in each region.

15. d. Function Oriented Organization: Under this type of organization marketing planning is based on the functions. In this organization whole marketing department is divided into different functions or activities like – marketing research, product planning and development, advertising and sales promotion; and physical distribution etc. There is separate head in each department, who makes plan for each department.

16. Process of Marketing Planning: Marketing planning process is a series of stages that are usually followed in a sequence. Organisations can adapt their marketing plan to suit the circumstances and their requirements. Marketing planning process involves both the development of objectives and specifications for how to achieve the objectives. Following are the steps involved in a marketing plan.

17. 1) Mission Mission is the reason for which an organisation exists. Mission statement is a straightforward statement that shows why an organisation is in business, provides basic guidelines for further planning, and establishes broad parameters for the future. Many of the useful mission statements motivates staff and customers.

18. 2) Corporate Objectives Objectives are the set of goals to be achieved within a specified period of time. Corporate objectives are most important goals the organisation as a whole wishes to achieve within a specified period of time, say one or five years. All the departments of an organisation including marketing department works in harmony to achieve the corporate objectives of the organisation . Marketing department must appreciate the corporate objectives and ensure its actions and decisions support the overall objectives of the organisation . Mission statement and corporate objectives are determined by the top level management (including Board of Directors) of the organisation . The rest of the steps of marketing planning process are performed by marketing department. All the actions and decisions of the marketing department must be directed to achieve organisation mission and its corporate objectives.

19. 3) Marketing Audit Marketing audit helps in analysing and evaluating the marketing strategies, activities, problems, goals, and results. Marketing audit is done to check all the aspects of business directly related to marketing department. It is done not only at the beginning of the marketing planning process but, also at a series of points during the implementation of plan. The marketing audit clarifies opportunities and threats, so that required alterations can be done to the plan if necessary.

20. 4) SWOT Analysis The information gathered through the marketing audit process is used in development of SWOT Analysis. It is a look at organisation's marketing efforts, and its strengths, weaknesses, opportunities, and threats related to marketing functions. Strengths and Weaknesses are factors inside the organisation that can be controlled by the organisation . USP of a product can be the example of strength, whereas lack of innovation can be the example of weakness. Opportunities and Threats are factors outside the organisation which are beyond the direct control of an organisation . Festive season can be an example of opportunity to make maximum sales, whereas increasing FDI in a nation can be the example of threat to domestic players of that nation.

21. 5) Marketing Assumptions A good marketing plan is based on deep customer understanding and knowledge, but it is not possible to know everything about the customer, so lot of different things are assumed about customer. For example :- Target Buyer Assumptions - assumptions about who the target buyers are. Messaging/Offering Assumptions - assumptions about what customers think are the most important features of product to be offered.

22. 6) Marketing Objectives and Strategies After identification of opportunities and challenges, the next step is to develop marketing objectives that indicate the end state to achieve. Marketing objective reflects what an organisation can accomplish through marketing in the coming years. Objective identify the end point to achieve. Marketing strategies are formed to achieve the marketing objectives. Marketing strategies are formed to determine how to achieve those end points. Strategies are broad statements of activities to be performed to achieve those end points.

23. 7) Forecast the Expected Results

24. 8) Create Alternative Plan An alternate marketing plan is created and kept ready to be implement at the place of primary marketing plan if the whole or some part of the primary marketing plan is dropped.

25. 9) Marketing Budget The marketing budget is the process of documenting the expected costs of the proposed marketing plan. One common method to allocate marketing budgeting is based on a percentage of revenue. Other methods are - comparative, all you can afford, and task method.

26. 10) Implementation and Evaluation At this stage the marketing team is ready to actually start putting their plans into action. This may involve spending money on advertising, launching new products, interacting with potential new customers, opening new retail outlets etc.

27. Strategic Marketing Planning Strategic Marketing Planning – “Without a strategy, the organisation is like a ship without a rudder” – Joel Ross and Michael Kami

28. Strategic Marketing planning is said to have the following characteristics:

29. 3. Impact on Long-Term Survival and Success of the Firm – Strategic planning, having a long- term commitment in terms of organisational objectives, are usually said to have a strong impact on the success of the firm. A good strategy formulation may bring company to new heights whereas a weak strategy formulation may ruin the company. 4. Future-Oriented – Strategic planning is done for the purpose of implementation in future. It is shaping of the future today. Strategies are proactive plan of actions developed for future execution. Strategic planning aims at reducing the total uncertainty of the future by devising goals and objectives and methodologies to attain them.

30. 5. Irreversible – Strategic planning due to its complexity, huge investment involvement and long-term commitment is generally said to be irreversible. Such decisions if required to be reversed or changed, requires a huge cost. That is the reason why strategic planning is to be done very carefully after detailed analysis of both internal and external factors. 6. Sensitive to the Environment – Strategic planning in order to be effective requires maintaining a balance between internal strengths and weaknesses of an organisation with the external opportunities and threats stemming from the environment. The main prerequisite of strategic planning is that it should be responsive to the environmental factors and be capable of adapting the changes.

31. Strategic Marketing Planning – Importance 1. The Marketing Plan: A marketing plan is part of an organization’s overall strategic plan, which typically captures other strate­gic areas such as – human resources, operations, equity structure, and a host of other non-marketing items. The marketing plan is an action- oriented document or playbook that guides the analysis, implementation, and con­trol of the firm’s marketing strategy.

32. 2. Mission Statement: i . What is our business? ii. Who is our customer? iii. What is our value to the customer? iv. What will our business be? v. What should our business be? These basic questions are often the most challenging and important that a firm will ever have to answer.

33. 3. Executive Summary: Once you have graduated and begun your career, you will likely come into contact with senior level executives at your firm in casual places, such as – the break room or elevator. When they ask what you are working on, you won’t have 20 minutes to discuss yourself and your projects. More likely, you will have time for only a short elevator pitch, which is a one- to two-minute opportunity to market yourself and share the main points of the work you are doing. The executive summary serves as the elevator pitch for the marketing plan. It provides a one to two-page synopsis of the marketing plan’s main points. In the same way that you should put great effort into making sure that every second of your elevator pitch counts, every line of an executive summary should convey the most valuable information of the marketing plan. Depending on your organization’s size and objectives, the marketing plan you create may be viewed by dozens or even hundreds of people. Some will take the time to read each line, but most are looking for a way to quickly understand the basic ideas and strategies behind your plan. The executive sum­mary provides this resource. While the executive summary is listed first, firms should complete this part of the marketing plan last.

34. 4. Situation Analysis: The situation analysis section is often considered the foundation of a marketing plan because organizations must clearly understand their current situation to make strategic decisions about how to best move forward. A situation analysis is the systematic collection of data to identify the trends, conditions, and competi­tive forces that have the potential to influence the performance of the firm and the choice of appropriate strategies.

35. The situation analysis comprises three subsections i . Market summary, ii. SWOT analysis, and iii. Competition.

36. i . Market Summary: The market summary sets the stage for the situation analysis section by focusing on the market to which the firm will sell its products. A market is the group of consumers or organizations that is interested in and able to buy a particular prod­uct. The market summary describes the current state of the market. For example, a market summary for McDonald’s might look at the size of the fast food market in the United States and how rapidly its numbers are growing or declining. A quality market summary should provide a perspective on important marketplace trends. The market summary would also consider the growth opportunities internationally and potential sales through international expansion.

37. BCG Matrix: One of the most popular analysis tools to describe the current market is The Boston Consulting Group (BCG) matrix. The tool is a two-by-two matrix that graphically describes the strength and attractiveness of a market. The vertical axis mea­sures market growth while the horizontal axis mea­sures relative market share, which is defined as the sales volume of a product divided by the sales volume of the largest competitor. The BCG matrix combines the two elements of market growth and relative market share to produce four unique product categories—stars, cash cows, question marks, and dogs—each of which requires a different marketing strategy.

38. a. Star: Star products combine large market share with a high growth rate. Apple’s iPad falls under this category. Firms with star products generally must invest heavily in marketing to communicate and deliver value as the industry continues to grow. Marketing efforts around star products focus on maintaining the product’s market position as a leader in a growing industry for as long as possible.

39. b. Cash Cows Cash cows are products that have a large market share in an industry with low growth rates. An example of a cash cow product is the Apple iPod. The market growth rate for MP3 type players has slowed in recent years, but the iPod still retains a large share of the market. As a result, Apple market­ers may decide to allocate only enough marketing resources (e.g., televi­sion commercials, special pricing discounts) to keep sales strong without increasing costs or negatively affecting profits.

40. c. Question Marks: Question marks have small market share in a high-growth industry. Prod­ucts in this quadrant are typically new to the market and require significant marketing investment in promotion, product management, and distribution. A new iPhone application would be a question mark product. Marketers for the new app must move quickly and creatively to reach Apple product users before competitors develop comparable apps. Question marks have an uncer­tain future and marketers must monitor the product’s position in the matrix to determine whether or not they should continue allocating resources to it.

41. d. Dogs: Dogs are products that have small market share in industries with low growth rates. Products that fall into this category typically should be discontinued so the firm can reallocate marketing resources to products with more profit potential. An example of a dog product might be compact discs, an industry in which no firm has large market share and the growth rate is declining. As part of the market summary, The BCG matrix allows a company to deter­mine where its product will fall in the marketplace and serves as a starting point for developing marketing strategies to address that market position

42. ii. SWOT Analysis: The evaluation of a firm’s strengths, weaknesses, opportunities, and threats is called a SWOT analysis. A SWOT analysis can be a valuable tool in the develop­ment of a marketing plan, but only if it’s executed well. Perhaps the most common mistake a firm makes when conducting a SWOT analysis is failing to separate internal issues from external issues.

43. iii. Competition: Many firms struggle to successfully compile the competition section of the market summary. The section should begin by clearly stating the organization’s direct competitors.

44. FUNDAMENTALS of Marketing Mix Definitions of Marketing Mix According to Philip Kotler, “ Marketing mix is the combination of four elements called the 4P’s- Product, Price, Promotion and Place that every company has the option of adding, subtracting or modifying in order to create a desired marketing strategy”

45. TYPES OF MARKETING MIX The Marketing Mix is a tool used by marketing professionals. It is often crucial when determining product or brand's offering, and it is also called as 4P's (Product, Price, Promotion, and Place) of marketing. However, in case of services the 4 P's have been expanded to 7P's.

46. In recent times by giving more importance to customer a new concept has been introduced, i.e. Concept of 4C’s. The Concept of 4C's is more customer-driven with a replacement of 4P's. According to Lauterborn's the 4C's are - Consumer, Cost, Communication, and Convenience. According to Shimizu's the 4C's are -Commodity, Cost, Communication, and Channel

47. Marketing mix is mainly of two types. 1) Product marketing mix – It comprises of Product, price, place and promotions and is mainly used in case of tangible goods. 2) Service marketing mix – The service marketing mix has three more variables included which are people, physical evidence and process.

48. 4P'S - PRODUCER-ORIENTED MODEL OF MARKETING MIX

49. Product - A product is an item that is built or produced to satisfy the needs of a certain group of people. Product can be tangible good or intangible service. It is defined as anything that can be offered to a market to satisfy a want. It not only includes physical objects and services but also the supporting services like packaging, installation, after sales services etc.

50. They can be categorized on the basis of 1. Usage (a) Consumer Goods: They are meant for personal consumption by the households or the final consumers like soaps, biscuits or books (b) Industrial Goods: They are meant for consumption or use as inputs in production of other products or provision of some service for example nuts and bolts, machinery etc

51. 2. Durability (a) Durable goods: Durable goods are products which are used for a long period i.e., for months or years together like mobile handsets, pressure cookers etc (b) Non-durable goods: Non-durable goods are products that are normally consumed in one go or last for a few uses.

52. 3. Tangibility: (a) Tangible goods: They have a physical form and can be touched and seen. (b) Intangible goods: Intangible goods refer to services provided to the individual consumers or to the organisational buyers

53. One must have the right type of product that is in demand for the market. Hence during product development phase, a marketer must undertake extensive research on the life cycle of the product that they are creating. Every product has a life cycle that includes the growth phase, the maturity phase, and the sales decline phase. It is important for marketers to constantly reinvent their products to increase demand once it reaches the sales decline phase. Marketers must, therefore, create the right product mix. Activity Prepare a list of 5 products in each of the of the categories on the basis of ( i ) Usage, (ii) Durability (iii) Tangibility.

54. Price – The price of the product is basically the amount that a customer pays for consuming it. Price is a very important component of the marketing mix definition. It is crucial in determining the organization’s profit and survival. Changes in price affect the demand and sales of the product. Pricing helps to shape the perception of a product in consumer’s eyes as a low price is associated with inferior goods. While too high prices might make them value their money over the product. Hence, examining competitor’s pricing while deciding prices becomes important. A new company which has not made a name for itself yet, is unlikely to have a target market which is willing to pay a high price. They might be able to charge higher prices once the product is acceptable in the markets.

55. When setting the product price, marketers should consider the perceived value that the product offers. Major pricing strategies followed are Market Penetration Pricing: The objective of penetration price strategy is to gain a foothold in a highly competitive market. The firm prices its product lower than the others in competition to achieve an early breakeven point and to maximize profits in a shorter time span or seek profits from a niche. Market Skimming Pricing: Most used strategy and refers to a firm’s desire to skim the market by selling at a premium price. Differential Pricing: It involves in a firm differentiate its price across different market segments. Geographic Pricing: It seeks to exploit economies of scale by pricing the product below the competitors in one market and adopting a penetration strategy in another. Product Line: These are a set of strategies which a multi-product forms usually adopt.

56. Sunfeast biscuits from ITC uses varied pricing policies. Some of the products are premium products while the other products are the regular ones. Hence it has been decided to keep the pricing policy variable as well as competitive. Discounts and other sales promotion schemes on high priced items like Sunfeast dark fantasy bring the prices down. Cost plus pricing is used for products like Sunfeast glucose and various other biscuits.

57. Promotion – Promotion represents the different methods of communication that are used by marketer to inform target audience about the product. It is an essential component of marketing as it can boost brand recognition and sales. Promotion is comprised of various elements like:

58. Advertising typically covers communication methods that are paid for like television advertisements, radio commercials, print media, and internet advertisements. In contemporary times, there seems to be a shift in focus from offline to the online world. Sales Promotion comprises of tools used to promote sales in a given territory and time. They are short term in nature and aim at stimulating quick sales. Advertising aims at creating awareness and also provides a rationale to buy a product; sales promotion induces him/her to buy the products. They include discount coupons, price offs, prizes, lucky draws, free trials etc.

59. Personal Selling is a direct display of the product to the consumers or prospective buyers. It refers to the use of salespersons to persuade the buyers to act favourably and buy the product. Public relations , on the other hand, are communications that are typically not paid for. This includes press releases, exhibitions, sponsorship deals, seminars, conferences, and events.

60. Word of mouth is an informal communication about the benefits of the product by satisfied customers and ordinary individuals. Word of mouth can also circulate on the internet. When effectively used it has the potential to be one of the most valuable assets, we have in boosting the profits online. An extremely good example of this is online social media and managing a firm’s online social media presence.

61. Place – Place or distribution refers to making the product available for customers at convenient and accessible places. We must position and distribute the product in a place that is accessible to potential buyers. This comes with a complete knowledge of the target market. Understanding them inside out will help discover the most efficient positioning and also increase the market share. Reaching out to the market can be through planning distribution structure and logistics. The distribution structure refers to the channel design and structure, and management of channels while logistics refers to the physical aspect of distribution. The distribution can be carried out through the channel members, and they would comprise of manufacturer, distributor, wholesaler/dealer, and retailer. The increase in length of the distribution channel increases the distance between the customer and manufacturer.

62. Organizations can employ distribution alternatives on the basis of their products and they, include: Intensive distribution: It involves making the product available at all possible outlets, example of soft drinks which are available through multiple outlets to ensure easy availability to the customer. Exclusive distribution: The firm decides to distribute through one or two major outlets, example of designer wear or high priced automobiles. Selective distribution: This is the middle path approach to distribution as the firm selects some outlets to distribute its products thereby enabling the manufacturer gain optimum market coverage and more control. Franchise and ecommerce platform

63. Maggi employs intensive distribution. Its channel partners include distributors, retailers and consumers. Nestle follows a twofold path for distribution. In the first, the product is available to every local store and the second where the stock is made available in every mall and shopping centers.

64. 4C'S - CONSUMER-ORIENTED MODEL OF MARKETING MIX In the recent times, the customer has gained importance and the concept of 4C‘shas been seen as an extension of 4P’s. According Lauterborn , the 4C’s are consumer, cost, communication and convenience.

65. Consumer - In this model the Product is replaced by Consumer. Marketers focus more on the needs, wants and demands of consumer. The product is designed and produced considering the requirements of consumer. Cost - Price is replaced by Cost. The cost refers to the total cost of owning a product. It includes cost to use the product, cost to change the product, and cost of not choosing the competitor's product. Communication - Promotion is replaced by Communication. According to Lauterborn promotion is manipulative while communication is cooperative. Communication includes advertising, public relation, personal selling, and any method that can be used to encourage proper, timely, and accurate communication between marketer and consumer. Convenience - Place is replaced by Convenience. It focuses on the convenience in getting product information, convenience in reaching to the store/product, and ease of buying.

66. Market Segmentation (definitions) Group of consumers according to their similarity related to a particular product category. The process of dividing a market into distinct subsets (segments) of consumers with common needs or characteristics and selecting one or more to target with a distinct marketing mix. A process used to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs.

67. Why market segmentation? Better market segmentation creates profitable customers Market segmentation allows you to; Target the right segment to approach Which means you can position your offer more effectively Which leads to better marketing mixes Which leads to your customers choosing your offer Word of mouth (and telling their friends).

68. Any colour you like, as long as it’s Black The Model T Ford is regarded as the first car to be built in 1908, using a production line. Henry Ford wanted to produce quickly. So Black paint was used, that dries more quickly so the only colour one could have was Black. Soon Ford lost share to companies that offered other colours.

69. No cup holders please, we are German In the 1990’s cup holders became popular in the USA German companies such as BMW and Mercedes didn’t see them as necessary (cars were about engineering not cup holders!) Their market share fell in the USA

70. The Mobile phone is just a device Early mobile phones were seen as just devices to make calls. The idea of a mobile phone as a fashion accessory was at first not accepted by many companies. Nokia did understand this and were the first company to offer different designs and colours Nokia gained huge market shares

71. What we learn from these stories? The customer really is king One offer never appeals to everyone Offers to everyone will be beaten by offers to targeted groups Marketing is becoming more complex (and more exciting – no.. honestly it is…)

72. How segmentation is applied at MCDonalds

73. Geographic Segmentation Divide markets into different geographic units. Examples: World Region or Country: North America, India, China, Pacific Rim, Mexico, etc. Country Region: North, South, East, West. State, City or Metro, Population Density: rural, suburban, urban Climate

74. Personal Demographics segmentation Age: Gender : Family Structure: Race:

75. Socioeconomic: Income: Occupation: Social Class :

76. Behavioural Segmentation.

77. Psychographic Segmentation:

78. Targeting Segments - Overview

79. Differentiated (Segmented) Marketing Targets several segments and designs separate offers for each. Coca-Cola (Coke, Sprite, Diet Coke, etc.) Procter & Gamble (Tide, Duracell , Oral-B, etc.) Toyota (Camry, Corolla, Prius, etc.)

80. Large Segment Strategy When a market is segmented and marketing resources are limited, the marketer may decide to pursue a large segment strategy. A mass market may be segmented say into three core segments. One of the segments, which is large enough and representing 50% or more of the market would be the centre of focus. We may also call it as the Single-segment marketing. For example one-hour photo has lost to digital photo camera, fax servicing has lost to e-mail, pager has lost to mobile phones, and STD booths have lost due to cheaper telecom services. Single market segment strategy can also be called as ‘concentrated targeting’ strategy or ‘niche’ strategy.

81. Adjacent Segment Strategy When a single segment focus has reached the point of full market penetration and after a single-market segment successful, the marketer opts for adjacent marketing strategy, a closely related segment is tackled next. Suzuki entered the Indian market with the Maruti 800 at the low-price end of the market (presently Alto serves this segment). As Maruti penetrated this segment, it moved to an adjacent segment in terms of price and quality by adding Maruti Zen. Next was entry into a large car segment with Maruti Esteem. Over the last 25 years, Suzuki effectively used an adjacent segment strategy and is a market leader in each segment

82. Multi-Segment Strategy: Market segmentation opens the door to multiple market-based strategies and greater marketing efficiency. For example in case of a power supplier, the segments may include domestic users, government users, commercial establishments, factories, occasional users, etc. The power supplier would serve all the segments at the same time. This strategy is known as multi-segmentation strategy. All of them would require separate marketing mixes. Nike produces shoes for golfers, tennis players, basketball players, for cricketers, and thus serves many segments relating to sports shoes. Chicago-based Hyatt Hotels and Resorts has targeted the gay, lesbian, bisexual and transgender market to make its image more attractive to this market. This strategy is also called as ‘differentiated marketing strategy’.

83. Small Segment Strategy: Although a market may provide three segment opportunities, a business with limited resources and capabilities may decide to compete only in the smallest segment. Such a small segment is normally ignored by large competitors, using mass market or large segment strategies. Even businesses with multi-segment strategy may feel ineffective to focus on such a small segment. In the case of Mercedes, for a very long time it used a small segment strategy to focus on luxury car market. However, due to competitive pressures and attractiveness of adjacent segments, it is following a dual-segment strategy

84. Niche Segment Strategy: The word niche itself implies that one is targeting a limited number of consumers or a particular set of customers. Separating a market into 100% homogeneous segments is really difficult. Many differences will always remain due to demographics or usage behaviour . Thus, there is always a possibility to carve a niche within a segment to customise marketing efforts according to group of target customers. Niche segment consists of sufficient number of customers seeking somewhat specialised benefits from a good or service. This strategy would avoid direct competition with larger firms who are pursuing bigger segments. This strategy is also known as ‘Concentrated marketing’. OM Pizzas are the Starbucks of the Pizza world!! Therefore, plenty of room for them is to play in the big gap between the fine dine pizzerias (which charge more than Rs. 700 per person) and the mass market Dominos and Pizza Hut (which charge around Rs.200-300 per person).” With Chillis Texas Grill & Bar, the company would hit the perfect spot in casual dining and a fun bar, with an international ambience.

85. Sub-Segment Strategy: If there are meaningful differences in customer needs within segments which are presently not being met by current market segmentation, then there is need for possible sub-segmentation. For example, a ready food kitchen may go in for segmentation within such segment. It may go for office delivery, food for standing on the ground floor, and customers sitting with air-conditioned atmosphere on the first floor. Food remains the same, but prices differ. We may call it as ‘Micromarketing’.

86. Socially Responsible Targeting Controversies and concerns Targeting the unsafe and disadvantaged Cigarettes, Alcohol, Fast-food

87. Types of Positioning Strategies By Product Attributes and Benefits. By Price and Quality By Use and Application By product Class By Product user By Competitor By Cultural Symbols

88. By Product Attributes and Benefits Strategy consists in associating an object with a product characteristic or customer benefit. Examples…… Positioned on its durability and style for its cycle. helps stop cavities before they start

89. BY PRICE AND QUALITY Certain product categories where high price is automatically associated with quality, or where low price is often considered to be synonymous with inferior quality. Example: You are offered an option to buy clothes. You might buy a jeans worth 1500 rs or you may buy 3 jeans worth the same amount of money. Immediately what comes in your mind is that the 3 jeans will be of lesser quality and therefore you might not get value for money. That’s the price quality approach of positioning for you.

90. BY USE AND APPLICATION Associating the product with a specific use. Used during cold and Flu….. Example….

91. BY PRODUCT CLASS Some brands need to compete against products of similar class. Example…. Car companies has to compete with other modes of vehicles.

92. BY PRODUCT USER Strategy of associating the product with a particular type or class of user. Example…. AXE targets men Specifically the Youth.

93. BY COMPETITOR Positioning strategy consists in making consumers think that your brand is better than, or as good as the competitors Example….

94. BY CULTURAL SYMBOLS Positioning strategy consist in identifying something that is very meaningful to people Example…. Maharajah of Air India has become a world figure It lays Emphasis on the royal Indian Comfort

95. Describe how each of the following brands, companies, or products is Segmented, targeted & positioned

96. Creating Long Term Loyalty Relationships Building customer value, loyalty and satisfaction: Customers perceived value: Customer’s perceived value is the difference between the prospective customer’s evaluation of all the benefits and all the cost of an offering and the perceived alternative. Total customer benefit: is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the product, service, people, and image. Total customer cost is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering, including monetary, time, energy, and psychological costs

97. Customer Value Analysis: Step-1: identify major attributes and benefits that customer value. Step-2: assess the qualitative importance of different attributes and benefits. Step-3: Assess the company’s and competitor performances on the different customer values against rated importance. Step-4: Examine ratings of specific segments. Step-5: Monitor customer values overtime.

98. Delivering high customer value: Consumers have varying degrees of loyalty to specific brands, stores, and companies. Loyalty: A deeply held commitment to rebuy or re patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior. Value Proposition: (package of benefit) the value proposition consists of the whole cluster of benefits the company promises to deliver; it is more than the core positioning of the offering. It’s more than the basic demand. For example: If you buy an ac from a showroom. You will get free delivery, install it and how to operate it.

99. Value delivery system: (payment system, delivery system, transportation system, everything related to value) the value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering. Monitoring customer satisfaction: Wise firms measure customer satisfaction regularly because it is one key to customer retention. A highly satisfied customer generally stays loyal longer. Buys more as the company introduces new and upgraded products, talks favorably toothers about the company and its products, pays less attention to competing brands and is less sensitive to price, offers product or service ideas to the company, and costs less to serve than new customers because transactions can become routine. 1. Periodic surveys 2. Market research

100. Product and service quality: Quality is the totality of features and characteristics of products and service that bear on its ability to satisfy stated or implied needs. 1. Conformance quality. 2. Performance quality. For example, matchbox, will lit up easily (performance quality), if each stick perform same (conformance)