PRESENTATION ON MARKETING STRATEGY

PRESENTED BY:

AHTISHAM ZAHID

&

SHARMEN FATIMA

PRODUCT PLACE

PRICEPROMOTION

MARKETING MIX

PRODUCT

A product can be classified as tangible or intangible. A tangible product is a physical object that can be perceived by touch such as a building, vehicle, gadget, or clothing. An intangible product is a product that can only be perceived indirectly such as an insurance policy.

PRODUCT MIX

• Set of all product offered for sale by a company.• It consist of various product line.• Any company’s product mix has four dimension : 1. Width2. Length 3. Depth4. Consistency Width : Number of different product lines carries by the company. Length : Total number of items in the product mix of the company. Depth : Assortment of size, colour and models offered in each item of a product line.Consistency : It refers to the relationship of various product line either in their end use, production requirement, distribution channel or other way.

PRODUCT LINE AND PLANNING DECISIONS

• Does the product satisfy the customer?

• Does it gives opportunity for differentiation from the competitors?

• What impact of the product to the whole product line?

• What impact on the brand and the company?• PRODUCT LINE ANALYSIS Taking decision regarding

whether adding new product line or not, lengthen the existing product line or not, analysis of product line is useful.

PLACE (marketing channel)Marketing channels allow producer to deliver there products to consumers in the correct quantity, type and locations. Without help from additional channel members most companies would not be able to increase there target market reach and satisfy their customers.

HOW CHANNELS MEMBERS ADD VALUE

TWO MAJOR DECISIONS IN CHANNELS ARE:

Channel Design

Channel management

CHANNEL DESIGN

Channel design is weather distribution will be direct or indirect

DIRECT MARKETING CHANNEL:

Marketing channel with no intermediary

INDIRECT MARKETING CHANNEL:

Marketing channel with one or more intermediaries

CHANNEL MANAGEMENT

Conflict between “partners” in a distribution system is not uncommon-more than a few litigation have been filled over issues like: “we provide a great product, but they never sold it the way that they

agreed to”

Types of channel conflict• Vertical (Manufacturer vs. dealer)• Horizontal (Dealer vs. dealer)

manufacture

dealer

DEALER DEALER

vertical

HORIZONTAL

WHAT IS PROMOTION

It refers to use of communication with twin objectives of informing potential customers about a product and persuading them to buy it.

TASK AND TOOLSplanning communications strategy is the 6 M’s model

1) Market “to whom is the communication to be addressed?”

2) Mission “what is the objective of the communication?”

3) Message “What are the specific points to be communicated?”

4) Media “which vehicles will be used to convey the message?”

5) Money “how much will be spent in the effort?”

6) Measurement “how will impact be assessed after the campaign?”

NONPERSONAL COMMUNICATION CHANNEL

Media

Sales promotion

Public relation

ADVERTISING

Creating awareness of the product describing featuresDescribing features of productSuggesting usage situation Distinguishing the product from competitors Directing buyers to the point of purchase Creating or enhancing a brand image

SALES PROMOTION

It refers to the short term incentives

which are designed to encourage the

Buyers to make immediate purchase of

A product or service

Example:

Rebate , funds , discounts , gifts ,

product quantity and lucky draws etc.

PUBLIC RELATIONS

It is non personal and non paid form ofCommunication. It includes promoting the productstrough media.Done trough press conference, speeches, annual reports , events, publications and sponsor ship.

PERSONAL SELLING

It involves oral presentation of message in the form of conversation

With one or more prospective customers for the purpose of making

Sales.Oral face to face presentation of message with

prospective customer.It is flexible and has immediate effect.Development of relationship.

CONSTRUCTING THE COMMUNICATION MIX

Push strategy-manufactures uses the sales force, to induce intermediaries to carry, promote & sell product to end user.

Low brand loyalty, brand choices are made in store, impulse item, well understood benefits

Pull strategy-manufacture uses advertising, promotion & other forms of communication to persuade consumers to demand the product from intermediaries.

High brand loyalty, high involvement, can perceive difference between brands, chose brand before they go to store

PRICING

Price is the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service.Price is the only element in the marketing mix that produces

revenue; all other elements represent costs.

PRICING BASIS AND OBJECTIVES• Survival (Short run strategy specially when a company

has excess capacity or intense competition)• Maximum current profit (Estimate demand & cost

associated and try to get maximum current profits, cash flow or ROI) not a long term strategy

• Maximum market share (market penetration pricing) • Maximum market skimming (Sony HDTV @ $43,000)• Product-quality leadership (affordable luxuries, like

Lexus, BMW & Mercedes)

New-Product Pricing Strategies

Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share

• Price sensitive market

• Inverse relationship of production and distribution cost to sales growth

• Low prices must keep competition out of the market

New-Product Pricing Strategies

Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market• Product quality and image must support the price

• Buyers must want the product at the price

• Costs of producing the product in small volume should not cancel the advantage of higher prices

• Competitors should not be able to enter the market easily

PRICE CUSTOMIZATION

• Charging a different price for the same goods and services in different markets

• Different customers different prices

• For example the car rental companies have been a

Major source of profit as prices are varied depending on

When the buyer is booking, for how long, for what days of week, and so forth.

5c’sCUSTOME

RS

COMPETITORS

COLLABORATORS

CONTEXT

COMPANY