5.

Marketing Mix
Product or Service: Essentially offered to satisfy a need or want.
A firms marketing plan should start with a the determination of offerings to a target market.

Phases of Product Planning:

.* Developing Product Concept Create new ideas for solving customer problems or customer needs. , * Study the
market SWOT analysis, * Market Research Qualitative and Quantitative. * Product Introduction small scale or
regional basis. * Product Life Cycle Introduction, Growth, Maturity and decline stage.

Product Life Cycle: Follows S-shaped curve.

.* Introduction Stage Profit are mostly negative, Introducing a product category is challenging, expensive, time
consuming and risky but introducing a sub-category is relatively easy. Distribution is critical. Pricing :
Skimming Price Customer is willing to pay high price. Niche market. Relatively insensitive to price.
Penetration Price Price Low & Promotion High.
.* Growth Stage Sharp rise in sales. Product with different features and different prices are introduced (Market
Mix). Channel members often tend to disinvest in less successful brands.
.* Maturity Stage Aim to gain volume, niche specialist gain more profit, Advertising to Promotion shift, Promotions
(discounts, coupons, premiums, and store promotions)
.* Decline Stage Customer preference changes. Companies tries to persuade distributors to keep their product.

New Product Development Process:

Concept Generation and Market Structure Identification
o Idea generation Creativity techniques
o Market Structure Analysis Overall Market size, segmentation data, market share.
o Sales Potential The potential of new product entry into market structure is estimated.
o Concept Screening Ideas are scrutinized. Rejections Patten, too inconsistent.
o Go-Error Launching a bad idea
o Drop Error Dropping a good idea.
o Put the idea into Intend to Buy test to find out competitive advantage.
Advertising Development:
o Create a advertisement copy to highlight product difference.
o Three documents are developed Strategy statement, Customer profile, Benefit statement.
Product Formation and Testing
o Idea on paper turns into product on hand.
o Prototype for limited customer testing.
Testing the Product:
o Concept Testing Measuring customer reaction to the idea of the product.
o Product Prototype testing
o Test Marketing
Commercialisation and Fina Launch:

6.Market Segment
Market Targeting Segmentation, Targeting, Positioning
Segmentation Dividing the large consumer market into smaller group of customers with similar demand.
Targeting Which market to enter based on segment alternatives.
Positioning Perception about the brand as being different.

Market Segmentation Segmentation converts heterogeneous market (Customer with diverse needs and wants) into
homogeneous market whos need and wants are similar.
Bases Geographic, Demographic, Enonomic, Psychographic, Behavioural, Volume, Benefits.

Target Marketing To select which market to enter from. Segmentation = whom to target, Target = how to target.
Factors for evaluation segment - Segment size, measurability, Attractiveness, Accessibility, Measurability.
Positioning Which image the company would like its customer to develop. Objective to occupy unique place in
customer mind and maximize its potential benefits.
Quality of successful Position : Relevance, Distinctiveness, Coherence, Commitment, Durability, Clarity, Courage.
Brand positioning process:
Identify set of possible competitive advantages
Choose the right competitive advantage
Select an overall positioning stragety
Communicate and deliver the chosen position to the market.

Marketing Channel A system of relationships existing among the business that participates in the process of buying
and selling products.
Level of Channels:
Level 0 : Direct marketing
Level 4 : Producer -> Agent -> Distributor -> Wholesaler -> Retailer -> Consumer.

Functions involved in marketing channel: Buying, Carrying Inventory, Selling, Transporting, Financing, Promoting,
Negotiation, Marketing Research, Servicing.
Channel Management Decision Selection, Traning, Motivation, Evaluation, Modificaiton.

Advertisement: Announcing in public place to promote sales. It is an indirect way of turning potential customer focus
toward the product and to create a favourable impression, create positive brand attitude.

Objectives of Advertising:
Generate Awareness What is it
Creating Favourable Attitude bring a change in their past purchase pattern.
Management Customer Loyalty Reinforcement of desired behaviour.

Benefits of Advertisement:
To Producers - Increase sales volume, achieve economies of sales
To middle men - Easier to sell the product.
To customer Stress quality and price. Indirect guarantee to customers. Helps customer to know when and where
the product is available. Merits and demerits of other products.
To Community Employment to advertising professionals.