 Managing products and services

 Pricing strategy
 Promotional mix and distribution

strategy
 Product Attributes - Features of a product that
gives value to customers.

 Branding – collection of images or ideas to

represent a product and its producer.
◦ Usually in the form of logos, name, slogan, design.
◦ Main step of marketing communication.
◦ Helps to get more prospects
 BRAND MANAGEMENT

 To build a brand the following points should be

clear
◦ Product you offer and the core value of the product.
◦ Mission of the organization and USP of the product
◦ Target market
 Brand Objective – to frame brand objective – clear
view about the purpose of the brand & the value of
the product to be communicated to the people.
 Brand identity – how the brand is to be perceived

by the consumers
 Brand barriers – to be recognized and plan to

overcome the barriers.

 Brand packaging – should be clear, professional,

eager to serve the customers.

 Approaches of Branding
◦ Individual branding – brand with separate name
competing with other brands of the same company
◦ Attitude branding – makes to feel larger
◦ Brand extension – using the existing strong brand
name for new products.
◦ Multi brands – same firm, same product category
but with different brand names
 Brand equity – value built over a period of time or the
outcomes of the product with brand than without
brand.
 Advantages of branding
◦ Helps to build corporate image
◦ Helps to attract loyal customers
◦ Gives legal protection to unique product
features.
 Product Mix- set of all products a seller sells, consists
of various product lines.
 Product Line – related products, various size, color,

price, etc.,
 Four dimensions of product mix
◦ Depth – number of variants of each product
◦ Width – number of product lines
◦ Length – total number of items in the mix
◦ Consistency – how closely related are the product
lines
• Line extension - extending the product line to
reach different market segments.
 Vulnerability – percentage of sale or profit in a line
 Decision proces
◦ Review – review the product lines in effect
◦ Modify – add/ delete the products in product line
◦ Compare & Monitor the effect – monitor the effect of new
product line with the old line and with the other existing
product lines
◦ Forecast – forecast for the effects of the change of
product mix.
 Strategies for Product Development
◦ Generation of ideas
 R&D
Interaction
Wider search
◦ Screening the ideas generated
Ideas compatible with company’s objectives
◦ Develop concepts
Elaborated version of the ideas
◦ Testing concepts
Testing and getting feed back from the target
market
◦ Marketing
Target market, product positioning
Distribution strategy and budgeting
Profit, shares, long term sales
◦ Analysis of the business
Analysis whether it suits the company’s
objectives and make profits
◦ Prototypes
Built by R & D and checked for its product
concepts and estimated cost
Functional test & Consumer test
◦ Testing in the market
Response of the dealers and consumers
◦ Commercialization (target market)
When - Market entry timing
Where – locality
How – action plan
◦ Adoption of the product
4 stages – awareness, interest, trying &
adopting
 Product life cycle – 4 stages, bell shaped
◦ Introduction
◦ Growth
◦ Maturity
◦ Decline
 Service – An act offered by one to another, intangible.
 Marketing strategies
◦ Holistic marketing
 External, Internal & Interactive Marketing
◦ Managing the quality of service
Meeting Customer expectations
Commitment for quality with high standards
Monitoring the performance
Employee satisfaction
• Pricing – Applying prices to purchase and sales
order, one of the four P’s of marketing mix.
 Factors to be considered for pricing

◦ Internal factors – productivity, profit maximization.

◦ External factors – consumers psychology, political
& economical factors.
 Select the objectives of pricing –
◦ Positioning the product in the market
◦ survival/profit maximization/increase in market
share/ high quality/market skimming
 Determine the demand and estimate the cost

◦ Statistical analysis, Experiments, Surveys.

◦ Fixed cost + Variable cost + Profit margin
 Analyze competitors’ price
 Select a pricing method
◦ Markup Pricing
◦ Target – Return Pricing
◦ Perceived Value Pricing
◦ Value Pricing
◦ Going rate pricing
◦ Group pricing
 Setting the final price

◦ Company’s pricing policies

◦ Other Marketing activities
• Pricing strategies most commonly used
 Premium pricing - high price – customers - sign of self worth
Penetration pricing – initial stage – low price – to gain
market share
Price skimming (Creaming) – high price – reimburse the
invested amount
Psychological pricing – emotional basis - positive
psychological impact
Predatory pricing – aggressive pricing – low price – to drive
out competitors.
 Product Line pricing – includes the price for benefits
of the parts in the range of products or services.
 Optional product pricing – optional extra services –

increases overall price.

 Product Bundle pricing – bundle of products in a

package – usually to clear off old stock

 Captive product pricing – products with

complements – products with premium price –

recoups margin by selling complement
 Byproduct pricing – pricing the by products – lower

price on main product

 4 Aspects of Promotional Mix
◦ Advertising
◦ Sales Promotion
◦ Public relation
◦ Personal Selling
 Advertising – Action of describing or presenting a
product, service or idea in order to induce the
individuals to buy or support it.
 Types of advertising

◦ Print Advertising
Brochures, new papers, magazines
◦ Outdoor Advertising
Attracting customers outdoors. Eg:-billboards,
events
◦ Media Advertising
Advertising in Television, Internet, Radio
◦ Covert Advertising
Using the products in cinemas, in stage shows
or in any other entertainment
 Sales Promotion – initiative to promote a increase in sales.
 Two forms- (i) Consumer sales promotion – target –
consumers – (ii) Trade sales promotion – target –
retailers.
 Techniques of sales promotion

◦ Consumer sales promotion

 Coupons , Rebates , Rewards , Price deal,
◦ Trade sales promotion
Training ,Push money, Allowances, Point -of-purchase
displays
 Public Relations – managing the flow of
information & maintaining mutual relations
between the organization & public.
◦ Creating awareness of the product and its uses.
◦ Via newspapers, television or magazines.
 Personal Selling – oral communication – intend to

make a sale.
◦ Push strategy; pull strategy
◦ Prospects
◦ Communicate
 5 stages of personal selling
◦ Prospects
◦ Communicate
◦ Sale
◦ Service
◦ Feedback
 Advantages

◦ Personal attention
◦ Demonstrate the product
◦ Long term relationship
 Direct Marketing – market products directly to
customers without intervening any media
 Channels of direct marketing

◦ Mail
◦ E Mail
◦ Telemarketing
◦ Couponing
 Advantages

◦ Communicate directly
◦ Costs less than other marketing techniques
◦ Greater control and accountability
 Marketing communication mix – particular combination
of marketing tools working together.
 Setting up Marketing Communication Mix
◦ Decide what is to be and to whom is to be
communicated
◦ Evaluate the characteristics of each component
◦ Consider the total budget & the resources available
◦ Select the components which suits the objective to
reach the target market
◦ Set up the marketing communication mix.
 Distribution channels -"Channel of distribution
comprises a set of institutions which perform all of
the activities utilized to move a product and its title
from production to consumption“- Buclin in
"Theory of Distribution Channel Structure"
 Factors to be considered:
◦ Market factors
◦ Producer factors
◦ Product factors
 Types of distribution channels

◦ Wholesalers
◦ Retailers
◦ Agents
◦ Direct sales