MARKETING ASSIGNMENT

BY ABHISHEK VARMA

“A” SECTION, 1st SEM

BBM

QUESTION 1

Definition of marketing –

Wikipedia defines marketing as “a societal process that is

needed to discern consumer wants; forcing on a product and

service to those wants and to mould the consumer towards the

product and service”.

Marketing tends to be seen a creative industry ,which include

advertising distribution and selling .it is also concerned with

anticipating the customer future needs and wants often

through market research

American marketing association defines marketing “an

organization function and a set of processes for creating,

communicating and delivering value to customer relationship

in ways that benefit the organization and its stake holder”

As time went on people think of marketing in different manner

new technology and techniques have been designed and each

market change the definition of marketing suit on own

preferences

Personally marketing defined as all aspect starting with the

idea of creating of a product through the completion of the

sell. All the action that tends to take place before proceeding

and the entire step in between are considered the marketing

process.

Marketing is host of activities from concept of new idea,

innovations, promotions and advertising .the entire marketing

department has to work together on each pieces in order for

the organization to be successful .research needs to conducted

on market segmentation and working to build relationship is

all critical aspect that must be carried through .

Recent trend in marketing

Speaking of value –

Rather spending money on attractive advertisement marketers

have started forcing on educating their value of their product

compare to other product as consumer now days want to

satisfice their needs than their life style

Viral marketing –

Marketing phenomenon that facilitates and encourage people

to pass on the marketing message

If group of people are satisfied with product and service

then ,the product information spreads to other groups which

creates great demand of the product similar has it happened in

stock market where market expertise say the stock will rise

and people start investing in it .

Bottom of the pyramid marketing strategies –

A new type of marketing strategies, marketer plans an

innovative distribution channel by which they target new set of

customer.

They forces on customer directly rather than middle men to

create demand of the product

Vendor –management inventory –

VMI is a family of business models in which buyer provide

certain information to a supplier of the product and the

supplier takes the full responsibility of that information this

helps the supplier to customize their product according to

current needs of consumers

Blue ocean marketing strategies-

Value innovation is created where company action favors

both cost structure and value of the buyer’s, cost saving

and eliminating indirect expense to reduce the cost of

product and provide the customer with affordable price.

Marketing segmentation

“Dividing a market into distinct groups with distinct needs,

characteristics or behaviors who might require separate

product or marketing mixes”

1)Important of marketing segmentation is to find profitable

market segments and scan marketplace and see what various

consumer segments need and wants and how they might to

better satisfied.

2) Identifying groups of people with certain shared needs and

characteristics within the board market for consumer of

business product then aggregating these groups into larger

market segmentation according to their mutual interest and

product’s utility.

Market consists of many segments in which company

differentiate products and marketing strategy for every

segment or simply concentrate on one segment

Types of target

1) Target market –marketing activities are aimed at a

particular segment of the population

2) Target audience-advertising is aimed at a particular

group

Types of markets

1)consumer markets-most advertising falls under consumer

advertising ad directed at consumer or people who buy the

product for their own or someone else personal use .

2) Business markets-companies use business advertising to

reach people who buy goods and services for resale or for use

for their own business or for manufacturing other product

Customer segmentation process-

Understanding customer needs

Groups customers by needs groups

Identifying most attractive segment

Develop unique value propositions by segment

Develop unique go to market strategies by segment

Finding right niche

Who?

Geography –region type of settlement media consumption

Demographics –Gender, age types of household

Socio-economic –education, income, occupation

Psychographics-attitudes, values interest activities, life style

What?

Behaviors –share of customer, frequency of purchase, usage

patterns

Why?

Needs-characteristics, advantage benefits

Behavioristic segmentation –

Usage status –every product who buys a product wants

same benefits from it

Usage rate –light, medium and heavy product users.

Purchase occasion –temporal aspect of a consumer’s life

Benefits-emotional benefit, consumer benefit, functional

benefit

Geographic segmentation-

Region

Country size

City size

Specific location

Types of store

Demographic segmentation

Gender

Age

Ethnicity

Education

Occupation

Income

Geo-demographics segmentation

Demographic combined with geographic

segmentation .people’s lives are influenced by their

environment and ethnicity

Psychographic segmentation

Emotional appeal

Cultural appeal

Attribute

Personality

Life style

Benefit of segmentation

Segmentation customer into groups according to their

needs has number of benefit

-it helps to identify most and least profitable customer

-focus on marketing on customer most likely to buy the

product

-avoid unprofitable market

-helps in building loyal relationship with customers by

developing and offering them product they want

-improve customer service

-increases profit potential by keeping cost down

-helps in better understanding of the customers’ need and

wants

-better targeting and position of the product

-improve service delivery standards

Marketing mixes

A marketer’s task is to build a marketing program or plan

to achieve the company desirable objective

The marketing mix is the set of marketing tools the form

use to pursue its marketing objective in market .this tools

are broadly classified into four groups namely product,

price, place and promotion.

The 4P concept is easy to remember but it tends to follow

many other mixes-

XP’s-packaging, participants, partnerships, place,

programming, promise, promotion, publicity

-4C’s-customer needs, cost to the customer, convenience,

communication

-5D’s-documents, decide, differentiate, design and deliver

-5M’s-management, mode, media, message, metrics

Product mix

Product is composed of three sub-variables that stand for

product mix

-Product, service or ideas (PSI) is to be marketed

A PSI consist of three sub-variables

Brand, quality of service and physical feature

o Product

Product level-

Customer value, core benefit, basic product,

expected product, augment product, potential product

Product hierarchy-

Need family, product family, product class, product

line, product type

Product classification-

Durability and tangibility, customer goods, shopping

goods, specialty goods, unsought goods, industrial

goods, supplier and business services

o Branding

Brand decision-

Attribute, benefit, values, culture, personality, user

Building brand identity-

Brand bonding, understanding, brand promise

Brand equity-

Brand awareness, brand acceptability, brand

preferences

o Packaging and labeling

Packaging –

Primarily packaging, secondary packaging, shipping

packaging

Labeling –

Identifying, grading, description

Price mixes

Markets is highly price sensitive and low price

stimulate market growth it discourage actual

potential completion

Estimating cost –

Fixed cost, variable cost, total cost and average cost

Selecting a price method –

Value pricing, going rate pricing, group pricing

Selecting the final price

Adapting the price –

Geographical pricing, promotional pricing

Place mixes-

Retailing –

Specialized store, department store, supermarket

Wholesaling

Mail order

Internet

Direct sales

Promotion mixes –

advertising

sales promotion

publicity

o extended of marketing mix

people

The image they spend is important

training –all customer facing personnel need to be

trained and development to maintain a high quality

of personal service

personal selling –there are different kinds of

salesperson

customer service –many product service and

experiences are supported by the customer services

team

process -process is another element of the extent

marketing mix

Marketing process are-

Marketing environment, fixing marketing target,

setting marketing strategy and marketing mix

physical evidences –

Packaging, internet, paperwork, brochures, business card

QUESTION 2

Marketing plan for sonic PDA

Sonic company profile –

Sonic founded 18 months ago by two entrepreneurs with

extensive experiences in the pc market, it’s about to enter

the highly competitive 3.7 billion PDA market which is

currently dominated by PLAM

Sonic personal digital assistances is designed to meet the

communication and information needs to customer sand

business users despite intense competition from palm and

other rivals .

Sonic PDA marketing detail-

Sonic is preparing to launch a new PDA product in

very competitive market. Currently PALM which

leads this fast growing market and handspring, sonic

have to target specific segment in consumer and

business market, taking advantage of opportunities

in significant demand of wireless enabled PDA in

coming years .

Product description –

Product is sonic PDA and its key feature -

Voice recognition for hand free command

Built in wireless web access and email

Build in mp3

USP of sonic PDA-

Marketing of its incorporate voice recognition system for

hands-free operation feature

STP

Segmentation

Geographic segmentation-

U.S

As in US PDA market will continue to growth for

next 5 years with 4 million units forecast to be sold

next year and 5 million forecast for year after

Demographic segmentation –

Consumer needs-consumer which prefer lower

priced PDA and professionals who need one portable

device by which they can coordinate with their busy

schedule

Age –from 18 to 40 age group specialty people who

are doing business

Gender –male between age group 18-25 who are

students,

Both male and female who are business

person

Social class –middle to upper income family

Psychographic segmentation –

People who need to store needed documents and

information for access anywhere and to communicate

with family and friends

Behavioral segmentation-

Buyers who want durable products, powerful, easy to use

People who want to reduce paper work and quick updates

Targeting –

Micro marketing

Focused on potential customers at very basic level such

as life style, specific occupation

Primary target –middle to upper income professionals and

Business Corporation who wants to coordinate with their

busy schedule and prefer lower price PDA and reduce

work force

Secondary target –college student who wants to organize

the school work and people who want to stay touch with

their family

Small business owner and entrepreneurs

Positioning

Differentiating sonic PDA with other product it will be

position as most versatile, convenient, value added model

for personal and professional use.

communication a positioning strategy will be

-versatility

Ability to use any software application and mp3

feature

-convenient

Voice recognition and wireless email with web

browsing

-Value added

At reasonable rate

SWOT analysis

Strength –

Voice recognition capabilities

Built in wireless web access

Built in MP3

Lower price

Weakness-

Lack of brand image

Opportunities –

Increasing in demand

Threats –

Competition

Product mix

Tangible product–sonic PDA

Core service –voice recognition, wireless web, mp3.

Additional service –compatible software

application ,additional memory

Product service –the product will be sold at full 1

year warranty.

Levels of product –normal PDA with given features

and second model PDA with GPS and additional cell

phone service

Branding –the brand and logo will be displayed on

the product pack and on product

Packaging –the packaging will protect the product

from damage and packaging will be designed to

promote the product

Labeling- will done to which include the features of

product, value added benefits and price tag to

differentiate from other product

Price mix –

Value added price method –include cost per product

and profit on it

Cost of production +variable cost advertising campaign

+profit =Price +tax

Place mix –

Retail store

Online retail stores

Promotion mix-

Educating dealers

Internet /radio/newspaper and media advertising

Tech exhibition

Direct consumer target advertisement and

campaign

Product life cycle and marketing strategies

Introduction stage –

1 to 2 years

Entering the marketplace crowd with palm, handspring

and other rival it will take at least one to two years to

create product demand.

Taking advantage of wireless demand in market sonic

PDA can sell lot of product in its introduction stage

Other rival PDA currently as decline in marketing share

as they are not able to bring out new innovative product

features in their product ,sonic PDA bring cell phone

service in their product with large screen is advantage for

sonic to get a fast growth in their product life cycle .

Characteristics –

1) Low product acceptances –as the PDA product decline

in market, customer don’t know about the new feature of

sonic PDA

2) Sales will rise due to promotion and distribution

actives. The slow growth in market because customer are

not aware and are still deciding to buy it or not

3) Low profit because of high development

Growth stage –

4 years

Customer as they get satisfaction with the product, there

will be demand in market for sonic PDA product

Sales are growing rapidly and profits are rising quickly

which is opportunities for wider distribution which result

in high sales

Characteristics –

1) Sales increases rapidly as the product becomes well

know

2) Increases in profit

3) Management goal will be to increase brand loyalty for

future products

Maturity stage –

5 years

The success of the product and its sales, there has

been different models that have been created which

can replace PDA completely; this will stabilize the

market demand of PDA.

Because stable demand the cost of product will

increase as result lower profit margin

After 5 years down the line it will start declining as the

market behaviors changes.

Characteristics –

1) Industry profit at pick but will decline at time

2) Competition will increase due introduction of new

product

3) Marketing strategies will be re-updated during

maturity stage to minimize the loses in decline stage

Decline stage –

If it’s on decline stage within 2 year the product may

be out of the product if they forces on introduction

of new market rather than marketing the same stage

Sonic PDA should bring in new feature model or

change the model to completely new form as there

will complete decline in market after a period for

PDA as new generation products will be introduced

into the market

Characteristics –

1) Sales volume decreases sharply

2) Profit continues to fall

3) Complete model decline

4) Elimination of this type of product in market and

introduce of new generation product

Marketing strategies for PLC

Marketing

Objective

introduction growth maturity decline

Product Sonic PDA Introductio

n of new

model with

added

feature

Updates and

firmware for

the product

Complete

change of

the

model to

match

with new

product

or slowly

eliminati

ng it

from

market to

introduct

ion of

new

market

Price To fixed

according to

cost of

product

with profit

margin

Prices will

change as

demand

increase it

may cost

lower than

before

Price will be

increased to

gain as must

profit before

it starts

declining

Lower

profit to

clear the

stocks

left and

slow

down

productio

n

promotion Awareness

of dealers

and

customers

Special

discount ,a

dded

accessories

for free

Media

Advertiseme

nt

Newspapers

And online

market

Giving

limited

price

offer to

attracted

customer

to but

Place Retail stores

and online

Expand

distribution

Diversificatio

n of channels

Narrowin

g the

stores channel by selling it

globally

channel

to

decrease

the

transport

cost

Product life cycle chart

Sales

introduction growth maturity decline0

2

4

6

8

10

12

14

16

Column1sales

Stages