Monday, October 14, 2019
Marketing mix components role in market strategy
Marketing mix components role in market strategy The firms task is to find the best solution for its marketing decisions variables. The settings constitute its MARKETING-MIX. The M-Mix is the framework of policies which are used by the marketer to get success in the field of marketing. The MARKETING MIX in the form of 4Ps is interdependent on each others. The following are the components of Marketing mix: There are four types of components: 1. PRODUCT 2. PRICE 3. PROMOTION 4. PLACE COMPONENTSSS PRODUCT PRICE PROMOTIONON PLACE 1. Pricing Objectives 2. Price Fixation 3. Discount Policy 4. Credit Terms 1. Advertising 2. Sales -Promotions 3. Customer -Aids 4. Sales -Contests 1. Channels 2. Inventory -Level 3. Warehousing 4. Transport -ation 5. Retailing 1. Planning 2. Features 3. Variety 4. Branding 5. Packging 6. Labelling Figure 1: Components of 4ps Marketing Mix. 1. PRODUCT MIX- Product is sum total of tangible and intangible attributes includes product designs, style, size, colour, branding, packaging, labeling etc. Some important variables of Product Mix are explained here: PRODUCT DESIGN PRODUCT LINE PRODUCT QUALITY Figure 2: Important Variables of Product Mix. Product Design: Product must be designed in a manner as desired by the target consumers. Good designing increases sales. It is very important features in consumer products like shoes, readymade garments etc. Product Line: It is a group of closely related product. For example: BPL Co. manufacturing Televisions, Music System, etc. Product Quality: Product Quality depends on design, material used, workmanship etc. The quality can be fixed in terms of; size, weight, colour, shape, flavour etc. 2. PRICE- The value of product expressed in terms of money is known as Price, Buyer and seller can only exchange goods and service on the agreed price. Some important variables of PRICE MIX are explained here: Pricing policies and strategies Terms of credit Resale price maintenance Profit margin Figure 3: Important Variables of Price Mix. Pricing policies and strategies: The pricing policies and strategies are the guidelines which helps the producer in determining the price as to match the market needs. The price is depends upon factors like demand, cost, competition, nature etc. Terms of credit: To increase the sales, credit sales are necessary. Credit sales is necessary to run the business it certainly increases the profitability. It is decided on types of customers. Resale price maintenance: It removes price competition and increases the goodwill of the firm. Resale price maintenance is a practice and a source to earn money. Profit margin: Profit margin is a difference between the final price paid by a customer and cost of production .This include margin of retailer, wholesaler and the producer. 3. PROMOTION- Promotion is a mean by which marketer talk to its existing and potential customers. It is a mixture of communication. Promotion efforts can be Personal or Impersonal. It is depend on customers acceptance. Some Important variables of promotion mix are explained ere: PERSONAL SELLING TRADE FAIRS PUBLIC RELATIONS SALES PROMOTION Figure 4: Important Variables of Promotion Mix. Personal selling: An oral communication between a firm and its customers is known as Personal selling. In order to make best use of sale force, proper policies should be prepare regarding selection, training, recruitment, motivation and controlling. Sales Promotion: A bridge between advertising and personal selling is known as Sales promotion. Trade fairs: Trade fairs are the places where manufactures and dealers gathered for selling their products. Public Relations: It is an attempt to achieve good relation with public. Public Include: customers, banks, shareholders, suppliers, competitors etc. 4. PLACE- The smooth flow of goods and its services from the manufacturer to consumer by creating under time and to the proper place is known as Place Mix. Some Important variables of promotion mix are: TRANSPORTATION WAREHOUSING INVENTORY LEVELS DISTRIBUTION CHANNEL PHYSICAL DISTRIBUTION Figure 5: Important Variables of Promotion Mix. CONCLUSION Thus, there are four types of components of MARKETING MIX. They are helpful in different ways to design the market strategy. Top summaries about the 4ps Marketing mix, there are some bullet points to remember, as follows: 4Ps are interdependent on each other( each depend on others) 4Ps constitute your Marketing Strategy. Independent Variables ( We can Control These) Product is only one P. Sales Volume is the dependent variable. Q2: Explain the importance of segmentation? Justify yours arguments with examples? INTRODUCTION: Market segmentation is the sub-division of a market into homogeneous subsets of customers. It is the strategy of dividing markets in order to conquer them. It is consumer-oriented. In this supply is bended according to demand. Thus, every area of market can be addressed with a targeted marketing mix. Importance of Segmentation: Knowledge of Market Opportunities Knowledge of Customers Needs Increase Of Sales volume Better assessment Of the competition Proper Allocation Of Resources Adjustments in Products Helpful in Advertising Beneficial for consumers Figure 6: Types of Segmentation. There are five importances of segmentations: 1. Knowledge of market opportunities- With the help of market segmentation Marketers are in a better position to locate and compare the opportunities of market. E.g. In rural area there is less scope for sports facilities so the marketers can readjust their strategy. 2. Proper allocation of resources- Segmentation lead to proper allocation of resources because customer is the focus of all marketing efforts therefore he can allocate his limited financial resources according to the needs of different segments. 3. Knowledge of customers needs- All marketing activities are directed towards the satisfaction of consumer. With the help of segmentation it becomes easy to measure the level of segmentation in easy segment and also to make improvements in the segmentation level. 4. Increase in sales volume- The market producer can increases his sales volume by segment with the help of knowing demand pattern of the product. E.g. Clinic All Clear manufacturers provide variety of shampoos like clinic all clear Anti-Dandruff shampoo clinic all clear for men for its different customers. 5. Better assessment of the competition- These segmentation of market helps in assessing correctly the strength and weakness of the competitors. It also helps to know the level of competition in each segment. If the competitors has stronghold any segments, there is no use in wasting resources on such segments. 6. Adjustment in products- Under market segmentation marketers can easily make finer adjustments in their products and market communication according to the change in taste, need, nature and income of the consumers . 7. Helpful in advertising- With the help of market segmentation consumers through effective advertising media then the choices, habits, preferences, needs of different buyer groups are duly recognized. 8. Beneficial for consumers- Segment results in product wars between the giant manufacturers. E.g. Coca-Cola Vs Pepsi, Polo Vs Mint, Colgate Vs Close Up and so on. Other Importance of Market Segmentation: By focusing the relevant segments, marketers can get benefits very accurately. In market segmentation, a marketer is able to create new market for his products. Segmentation also helps in best allocation of marketing budget. By segmentation the producer, the working of different intermediaries or the distribution channels can be effectively evaluated. CONCLUSION: Thus, we conclude that MARKET SEGMENTATION helps the manufacturers and the marketers to match their products with the real needs of the consumers groups. It is Beneficial for customers. It is helpful to Increase in sales volume. Q3.Choose a product of your own choice and how does branding helps to promote this product? INTRODUCTION: Branding is a process by which a product is branded. It is a process of stamping a product with the some identifies name and mark. It means giving a distinct individuality to a product. Branding gives a specified name to a product or group of products of one seller. Branding gives the product individuality. MEANING OF BRANDING: A brand is a name, term, sign, symbol, or design used to identify the product of one firm and to differentiate them from the products of the competitors. A brand is an integral part of the symbol appearing on the product. Once the business start running on full stream, branding helps a lot in sense of strategy. To lead to this discussion I am going to discuss on footwear (shoes) as my product for this. There are different types of brand in footwear market and depth of each of these brands is extremely deep, but to make this discussion be specific I like to specifically talk on one brand named NIKE. Analysis of Nike Brand: Nike is a group of companies and distribution of footwear, cloths and sports products. They manufacture and distribute more than 200 models of footwear, spanning specialties in many sports, from running, basketball, to soccer and baseball cleats, to golf. Ã Each product of Nike is current, stylish and sleek.Ã Nike is an equipment, shoe and athletic apparel company.Ã Most of their customers are high performance athletes. They also are consistent with who does not fit their target market most of us!Ã Basically, Nike has built an international enterprise around top performing athletes.Ã There are more than 100 athletes signed on and wearing Nike product for promotions and marketing. The success and performance of the Nike is represented by athletes are their target market.Ã Nike obviously meets their needs.Ã To meet their target market they do such a good job, in fact, it has brought some criticism.Ã There is large number of shoe manufacturer and handful of them is easily recognizable, I would like to say it is quite up and down in the shoe business. In the market of pricing, Nike is always in line with their competitors. Most of competitors against Nike are Adidas, Reebok, New Balance, and many others, depending on the specific need.Ã This is very common now-a-days for the high ambitious competitors and surprising as they could receive more of a premium for their product. Nike uses some psychological techniques to boost their marketing with the name of brands. As Nike brand is very reliable and soft. They offer majority of warranties of the product with make trust bond between customer and company, and attract more customers. As they offer the best product in the market, once a customer bought product they do verbal marketing after using the product, which helps the company in sales and more profitable. Nike organizes events for their customer and offer vouchers on the limited sales which attract more customers for future. Nike provides more than 300 of styles and provides choices to customers. In terms of distribution, Nike has found all the right places.Ã Sports retailers such JJb sports, sports Direct, Sports Authority and some of the branded sole traders are common places to find them.Ã As the modern world come to online selling, now Nike starts providing home delivery to their customers under their budget prices. Nike manufacture shoes in the season and try to sell within the season with the new modified pieces for next seasons, if they found out of season and out of production, they starts selling on discount outlets for the clearance purpose. This strategy provides Nike product to the customer who are unable to buy product in the season because of high prices. CONCLUTION: Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã After analyzing Nike strategies, marketing mix, the product and promotion of Nike is admirable. These techniques show us that with an edge towards excellence, any branded product can achieve dominance. Q4. Carry out the SWOT analysis for a company of your own choice? INTRODUCTION: SWOT stands for: S-STRENGTH W-WEAKNESS O-OPPORTUNITY T-THREAT To analyse the concept of SWOT, I studied NOKIA Corporation. In the Telecommunication equipment market Nokia Corporation named in worlds largest manufactures. It has since established a leading brand presence in many local markets. GSM, CDMA and WCDMA are the common known mobile communication equipments offered by NOKIA in the current market. Not only electronic satellite but mobile phone infrastructure and many other telecommunications equipments such as broadband access, professional mobile radio, traditional voice telephony, wireless LAN, ISDN, voice over IP and a line of satellite receivers. SWOT Analysis of the Company: Nokia Strengths: Nokia has very strong financial aspects, with much more profits in the business. It has largest network of distribution and selling as compared to other mobile phone company in the world. It is backed with the high quality and professional team in the HRD Dept. The product being user friendly and have all the accessories one want that is why is in great demand making it No-1 selling mobile phones in the world. There are many choices of products available for all class. There are many good prices of second hand NOKIA mobile phones compared to other mobile phones. Weakness: After analyzing Nokia, we found out about lots of strengths and some weakness. The cost of the product offered by company is one of them. Some of the technology used by NOKIA is not user friendly, which is not helping the targeted customers. The price of the product is another main issue. There are very few service centers for the Nokia product repairs, which cause to bad service after sale. Opportunity: Nokia has large number of opportunity to increase its business in international market. With the large number of different types of products, mixer of features and wide selection price range for all people, it has an advantage over the competitors around. Nokia has to target right customer at right time to gain the most out of the situation according to the standard of living in the world, which will increased the purchasing power of the people and sales market of the company. Threats: As every company has to face many crisis and threats in their marketing, financial and development, Nokia also has to face many threats to tackle to maintain its position as market leader in the international market. The common threats for Nokia is like emerging of other telecommunication companies in the international market with huge range of product. The companies like Sony Ericsson, Apple (iPhone), Blackberry (Smartphone), Android, Motorola and Cingular (U.S) etc. These companies have come to the stand of tough competition with Nokia in the field of Mobile Phones. Threats for Nokia from others include, providing cheap phones, new style and type, new features, good services after sale etc. So, Nokia has to keep in mind that there are many growing competitors around the world and how to take over them. CONCLUSION In SWOT Analyses we know about the STRENGTH, WEAKNESS, OPPORTUNITY, THREATS of the company. Here we choose NOKIA Company. STRENGTH and WEAKNESS are inside the company. OPPORTUNITY and THREAT are outside the company. Q5Anylyse the external factors that can affect the promotion of a product? INTRODUCTION: The Beginning of successful products is creative idea. The very first step of new product development process is the generation of product ideas. There are two factors that can affect the promotion of a product INTERNAL FACTORS EXTERNAL FACTORS Figure 7: Types of Factors 1. INTERNAL FACTORS- These are in company sources of product idea generation. There are four such possible sources, such as: 1. RESEARCH AND DEVELOPMENT 2. MANUFACTURING PEOPLE 3. SALES PEOPLE 4. TOP MANAGEMENT 2. EXTERNAL FACTORS- External Factors are those factors that are outside the company. These help in developing the new thinking. It involves consumers, competitors, reseller etc. It Includes: 1. SECONDARY IMFORMATION 2. CONSUMERS 3. RESELLERS 4. INVENTORS 5. COMPETITORS 6. FOREIGN MARKETS 7. CARTOON AND ANIMATIONS FILMS 8. OTHER SOURCES 1. SECONDARY INFORMATION- Most of the business magazines and newspapers have a new product section which provides important information about new product. 2. CONSUMERS- Customers are very important source of new product ideas. The customers suggestions and complaints are good source of new ideas. A company can arrange meetings of the customers in order to collect information regarding their problems and solutions. 3. RESELLERS- Resellers are integral part firms marketing system. They have close contact with the consumers and well aware about the market changes.Therefore, they can easily suggest fruitful ideas of new products. 4. INVENTORS- Most of the companies remain in regular contact with the inventors for new product ideas. Scientists and Engineers can be a key source of technological innovations and new product ideas from outside the company. 5. COMPETITORS- Manufactures must establish a formal procedure for monitoring the new product activities of their competitors. Competitors product mix also help ingenerating the new product ideas. 6. FOREIGN MARKETS- Every country is known for certain product or products. For example: Germany-Steel cars; France-Wine; Italy-Leather products etc. Therefore, for new products ideas one can visits the foreign markets. 7. CARTOON AND ANIMATION- The producers and writers of animation films develop and show various animated products and ideas in there films which become a good source of new products ideas. 8. OTHER FACTORS There are many other sources from where, we can collect the new products ideas, such as: (i) Technical universities, engineering collages, government research laboratories and private research organization. (ii) Industrial consultants, trade associations, advertising agencies. (iii) International trade fairs, exhibition and technical collaborations. (iv) Supplier of raw material, new product consultants etc. (v) Brainstorming sessions of the management and technicians. CONCLUSION There are two Factors that are can affect the promotion of a company. First is INTERNAL AND second is EXTERNAL. Here we explain EXTERNAL FACTORS. In Many ways these factors are helpful the promotion of the Company. Q6. Explain the term Marketing objectives and analyse them in relation to a Promotional Campaign? MEANING OF MARKETING: The meaning of marketing has changed and evolved in the modern world. The Marketing defines as The Process of Management which is responsible for satisfying, identifying and anticipating customer requirements profitability. Now-a-days marketing is based on providing continual benefits to the consumers, these benefits will be provided and a transactional exchange will take place. MARKETING OBJECTIVES INTRODUCTION: MARKETING OBJECTIVE is a term which tells us that what the organization is trying to achieve through its marketing activities during a specific period. Roles of Marketing Objectives in relations to the Promotional Campaign:- Campaign is an activity which demands systematic planning. Promotional Campaign can be made successful if marketing objectives are determined or set properly. Following process can get the campaign off to the right start: THERE ARE SEVEN STEPS: ASSESS MARKETING COMMUNICATION OPPORTUNITIES USE OF COMMUNICATION CHANNELS DEVELOPING THE PROMOTIONAL MESSAGE DEVELOPING THE PROMOTIONAL BUDGET DETERMINE CAMPAIGN EFFECTIVENESS DETERMINATION OF OBJECTIVES DEVELOPING THE PROMOTIONAL MIX Figure 8: Steps of Marketing Campaign. Assess Marketing Communication Opportunities. It is very important to review and understand the needs of the market, market consumer, competition of the products, current users, decision-makers, groups and the general public. What Communication Channels Will You Use In the first step of planning everyone should have defined markets, products in the markets and environments of the consumer and the product. The information of these types able to assist in deciding which communication channels will be most beneficial for the organization and their products. Determine Your Objectives One should have to consider that the objectives of a promotional campaign are different from marketing campaign. Promotional campaign analyzes the behaviors of those people, who have been exposed to your promotional communication. Determine Your Promotion Mix to determine promotion MIX one should have to allocate resources among sales promotion, publicity, advertising, publicity, E-marketing and personal selling. Develop Your Promotional Message To develop promotional message for the product and organization, there is need to sit with the team members, special attentions on the contents of the product, format, structure, content and source of the message. Develop the Promotion Budget The most exciting part of the campaign is Promotion Budget. At this stage we need to determine the total promotion budget. The steps involved in these stages are: 1. Determining cost breakdowns per territory and 2. Promotional mix elements. Determine Campaign Effectiveness After following all the steps of the marketing campaign, the promotional plan must be formal defined in a written document. In this document you should need to specify situation analysis, copy of the platform, timetables for the events and effective integration of the promotional elements with elements in your marketing mix. CONCLUSION Thus we can say that Role of marketing objectives is very important in relation to promotional campaign. There are many different steps these are helpful in market objectives. Q7. Describe Primary and Secondary research and explain the benefits and drawbacks associated with these research methods? As per my opinion, Primary and Secondary research are the difference in conducting the research. PRIMARY RESEARCH: In Primary research, there is no information available for the researcher; thats why researcher has to start from scratches and hypothetical views. BENEFITS OF PRIMARY RESEARCH Quick and cheap if your sample is small Computer code-able for quick analysis and repetition Coding enables multiple comparisons among variables Allows generalization views to a larger population Verifiable by replication and re-questioning of interviewees/respondents DRAWBACKS OF PRIMARY RESEARCH Using a large sample can be time-consuming Large number of research loses unique meaning and case study data of the specific area. This process takes long time and can be very expensive. If the interpretation of the question changes, this leads to change in the overall result. Researchers can bias the data by concept definition and question framing We cannot judge the honesty of the responding people. SECONDARY RESEARCH In Secondary research, the researcher has the primary research collected data available. These research data are made available from other publications or reports, like newspaper, books and annual reports of companies. In the secondary research there is no need to start from scratch. BENEFITS OF SECONDARY RESEARCH Low cost to acquire and Easy to access E.g. Library, journals. Clear views about the Research Questions. Easy to conduct research on the question and provide specific result. DRAWBACKS OF SECONDARY RESEARCH Lack of consistency and Quality of research. Cannot check Biases and Inaccuracy. Incomplete Information and Expensive charges for full research. The concern over whether any data can be totally separated from the context of its collection CONCLUSION Thus, we have two research First is Primary and second Secondary Research. Primary research is that in which data are not available firstly data should be collect. In Secondary research data are available; there is no need to collect the data. Data prepared by other organization. 8Explain the source of Information that are available to Business? INTRODUCTION Business information encompasses a high range of sources that people involved in the world of commerce can turn to for data on and discussion of business-related subjects. These sources, which can provided from daily newspapers , financial magazines to professional associates, colleagues, and social contacts, can be invaluable in helping small business owners to tackle various aspects of operations, such as marketing, Research, product forecasting, and competitive analysis. There are two types of source of Information: INTERNAL BUSINESS INFORMATION EXTERNAL BUSINESS INFORMATION Research and Development Manufacturing People Sales People Top management Print Information Television and radio Information Online Information CD Rom Information INTERNAL INFORMATION EXTERNAL INFORMATION Figure 9: Types of Sources. INTERNAL INFORMATION: These are in business information of product idea generation. There is four such possible information such as: RESEARCH AND DEVELOPMENT DEPARTMENT Almost all big companies have Research and Development Department. This department is responsible for developing new product idea after proper market research and improving the existing products. MANUFACTURING PEOPLE Engineers, scientists and skilled workers who manufacture product often have ideas about product improvement. They do come out with new product ideas, because that is in regular contact with the business-its nature, product, quality etc. SALES PEOPLE Company sales persons can also be a good source of new product ideas. These people know what customers are not getting and what customers want. TOP MANAGEMENT In fact, it is the responsibility of the top management to explore new product ideas. Their idea can be good because they precisely know about the company needs and resources. EXTERNAL INFORMATION: External information can be obtained from printed material AND broadcast reports PRINT INFORMATION The category of print information ranges from large number of books and journals, Newspapers, newsletters and microfilms. TELEVISION AND RADIO MEDIA Broadcasting media might be least helpful for the small business owner. ONLINE INFORMATION There is huge demand of online information in todays world. This is a powerful way to get and access information speedly and many ways and in many types. The computer to store, organize and disseminate vast amounts of information has truly revolutionized business publishing. Large number of social marketing and information site are available. Large online search systems can help overcome the incredible fragmentation of published information. SECONDARY STORAGE INFORMATION Secondary memories like, CD-ROM (compact disc read only memory), hard drives, DVD, Blue-rays are popular alternative to online services. CONCLUSION: Thus, we can say that there are many information sources available in business. There is INTERNAL and EXTERNAL Information Available in business. Internal Information is under the business. It is Flexible as well as External Information is under the customers, Producers etc.