ssd-smg-l4 mktg mix

8/7/2019 SSD-SMG-L4 Mktg Mix

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Marketing ManagementMarketing Management

Marketing Mix



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Product MixProduct Mix

A bundle of attributes capable of exchange or use ,

covering tangible as well as intangible form.

Customers however buy value from these attributes

& not the product per se.



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Marketing Mix .. ContdMarketing Mix .. Contd

Product Mix

Line

Quality

Branding

Guarantees / Warranties

Packaging Value add-ons



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Product MixProduct Mix -- ContdContd

Line

Width ± No. of Product Lines ±

Current / Savings / Loans / Vaults / Trav Cheques

Depth ± Prod Line ± No. of Items in Each

EMI / Fxd Rate / Floating Rate / Unsecured / Term



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Quality :

Customer Perception : Intangibility Bottleneck

Customer Perception : Pre-Use & Post-Use

Efforts at bridging gap :Use of Positioning Bases

Efforts at Tangibilising : Goa Tourism / Crossword



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Branding :

Stand alone or Family : HLL v/s LIC

Differentiation

Pull effect

Enables Line Extensions Less price sensitivity



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Branding may Involve use of :

Visual : Welcome Group ± Folded Hands

: Canada ± Maple Leaf

Slogan : FedEx ± The World on Time

: IA ± Your home in the Sky

Colours : Jet Airways ± Blue & Yellow

: Ferrari - Red



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Value AddValue Add--ons / Augmentationons / Augmentation

Restaurants :

Tendulkar¶s : Children¶s Menu & Section

Hotels :

Free Internet Access / Room based access

Complimentary Health Club



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Promotion MixPromotion Mix

What does µpromotion¶ hope to do?

Objective is to inform , persuade or refresh

people¶s minds about an organization or

it¶s goods , services , ideas , image , etc.

Attempt to re - inforce receiver¶s feelings ,

beliefs or behaviour about your brand.



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Marketing Mix ..contdMarketing Mix ..contd

Promotion Mix

Advertising

PR

Publicity

Sales Promotion

WOM

Tele Marketing

E-Marketing



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Promotion may seek to influence :

Target Market

Channel Partners

Trade Entities

Consumer Groups Opinion Makers



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Promotion hopes to address :

Creating awareness about your brand / offering

Build reputation & customer confidence

Communicate USPs / Features

Keep existing products / services in ToM recall

Help in re - positioning image / products

Inform consumers about where / how of availability Inform consumers about special offers / sale



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Most Commonly used words in Promotions:

Free Save Easy

New You Few



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Sales Promotion :

Can be directed towards :

Channel Entities

Target Market



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Sales Promotions directed at Channel :

Trade Shows PoP displays

Trade discounts

Free Merchandise

Incentive Packages / Gifts



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Sales Promotions directed at Consumers :

Free Samples : Magazines

Exhibitions : GITEX / Utsav Contests : Slogan Writing

Rebates : Card Fee Waiver

Prizes / Gifts : In-flight Lucky Draw

Loyalty Benefits : FFPs



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Price Mix Interest

Rent

Fare Fee

Retainership

Wages

Tariff Premium



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Price MixPrice Mix

What¶s d ifferent ?

It is the only element in the marketing mix

which generates revenue , all others

generate costs.



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Price MixPrice Mix

What does pricing strategy get influenced by :

Cost

Competition

Customer Willingness

Brand / Product Price Positioning

Payment Terms

Taxes & Duties



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Price Mix

Methods of Pricing

Cost Based

Demand Based

Flexible

Penetration Skimming



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Methods of PricingMethods of Pricing

Demand Based :

Flexible pricing :

By product : Air travel:Business v/s Tourist

By place : Hotels :Swimming Pool view v/s Other View

By time : Hotels : Seasonality : Weekend Prices

By Volume : Hotels : Minimum Room Nights Contracts

By Customer : Special prices for Aged / Infirm ,etc.



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Methods of PricingMethods of Pricing

Penetration Pricing :

Very Low Introductory Pricing

Sales Volume / Market Share

Skimming Pricing :

Premium Introductory

Pricing

Short Supply / Inelastic Demand



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Place ( Distribution )Place ( Distribution )

Refers to the availability of the service

Ie Where & When can it be purchased

2 key dimensions :Accessibility & Availibility

2 key issues there : Inseparability + Perishability

Channels have to be short & swift

µRight Time¶ & µRight Place¶ Important



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Factors determining DistributionFactors determining Distribution

Company Resources : Owned / Franchised

NIIT / Aptech

Market Analysis : Size & Spread

Thomas Cook / SOTC

Type of Service : People / Equipment based

CA / ATM

Customer Confidence : Confidentiality / FaithBank / Fast Food



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Distribution thru FranchisingDistribution thru Franchising

Benefits to the Franchisor :

Low Cost Expansion

Rapid Growth

Local Expertise

Benefits to the Franchisee :

Reduced risk

Brand & Business Support



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Electronic Channels in ServicesElectronic Channels in Services

Offer the following Advantages :

Convenience : 24x7 , 365 days availability

Reach : Width & Depth of reach

Standardization : Maintain consistent quality

Speed : Much faster than human interface

Cost : Capital , High ; Operating , Low



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Place Mix

Quality Channels

Distribution Process

Reach

Storage

Techno Marketing Innovations



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Marketing of ServicesMarketing of Services

7 P¶s of Marketing



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The Augmented MixThe Augmented Mix

People

Physical Evidence

Process



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People MixPeople Mix

Services can be :

High Contact : Professional : Dentist / Education

----do---- Non± Professional : Baby-Sitting / Taxi

Low Contact : Car Wash / Vending Machine



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People MixPeople Mix

Contact based services can be re-grouped :

Direct : SP executes : Dentist / Hairstylist

Facilitation : Brand & SP distinct : Employee based

Ancillary : Setting up service deal :

Broker / Agent



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People & Customer SatisfactionPeople & Customer Satisfaction

Service Encounters :

Moments of Truth / Customer¶s First-Hand Experience

First & Last Opportunity to impress & delight customers

Service Profit Chain :

Employee Satisfaction => Customer Satisfaction

= > Customer Loyalty = > +ve WoM = > Revenue = > Profit



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People Mix ± Imp Issues Recruitment

Training Customer Care Attitude

Personal Attention

Grievance Handling

Culture & Values Team Work



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Physical Evidence MixPhysical Evidence Mix

Service Setting or Servicescape

Tangible commodities along with service

Independent items that communicate service

or indicate possible performance standard.



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Facility Exterior :

Signage / Front Elevation / Surrounding Environment

Facility Interior :

Design / Layout / Automation / Comfort

Other Tangibles :

Uniforms / Brochures / Testimonials



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Physical Evidence ± Airline Industry

Waiting Lounge / Check-In Counters / Terminal

Aeroplane Exterior : Colours / Cleanliness

Aeroplane Interior : Décor / AC / Seat / Music

Others : Uniforms / Food / Cutlery



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Process Mix

Process design would be influenced by :

Service Basis : Standardization / Customization

Use of Automation / Equipment

Level of Complexity of the Service

Response Times Expected / Committed

Level of Customer Involvement



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Process MixProcess Mix

Process Mix ± Imp Issues

Maximize Customization around Standardization Make it as structured & repeatable as possible

Provide for Customer Influence

Factor-In Customer Alignment



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Global ImpactGlobal Impact

Multiple choices,

difficult decisions.



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Thank YouThank You

For Your For Your ParticipationParticipation

ssd-smg-l4 mktg mix

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