17. Tregjet konkurues – Konkurenca krijon zgjedhje per konsumatoret, por edhe per shitesit. Cilin treg dhe / ose segment te synojme? Kompania Konkurenti #1 Konkurenti #2 Bleresi #1 Bleresi #2 Bleresi #3 Bleresi #4 Bleresi #5 Bleresi #N … Kush do te bleje dhe nga kush? Tregje te tjere Projekton Prodhon Shet Sherben Blen Perdor Ka nevoje Shkon ne dyqan Blen Perdor Ka nevoje Shkon ne dyqan Blen Perdor Ka nevoje Shkon ne dyqan Blen Perdor Ka nevoje Shkon ne dyqan Blen Perdor Ka nevoje Shkon ne dyqan Blen Perdor Ka nevoje Shkon ne dyqan Projekton Prodhon Shet Sherben Projekton Prodhon Shet Sherben
18. Strategjite e Tregut Produkte te Reja Produktet Aktuale Produkte te Modifikuara 3. Strategjia e Zhvillimit te Produktit 1. Strategjia e Penetrimit te Tregut (Diversifikimi i Plote) 2. Strategjia e Zhvillimit te Tregut Tregje te Reja Tregjet Aktuale Segmente te Reja Risk i Rritur Investim i Rritur
23. Marketingu per Bizneset e Vogla NMV & Mjedisi Marketing Kerkimi i Tregut Tregu i Synuar Profili i Konsumatorit Plani Marketing Promovimi & Reklamimi Cmimi Vendi Produkti Konsumatori Mjedisi Parashikimi i Shitjeve & Shitjeve Sjellja Konsumatore dhe Procesi i Blerjes Variablat e Vendimarrjes (4 P-te) Planifikimi
27. Tre hapat kryesore ne tregun e synuar Segmentimi i Tregut Synimi i Tregut Pozicionimi ne Treg Identifikoni kriteret per segmentimin e tregut Zhvilloni profilet per segmentet rezultuese Zhvilloni masat per terheqjen e segmentit te synuar te tregut Perzgjidhni segmentet e synuara Zhvilloni pozicionimin per cdo segment te synuar Zhvilloni marketingun mix per cdo segment te synuar HAPAT MADHORE AKTIVITETET
32. Synimi i Tregut - Ju mund te zgjidhni nje nga tre strategjite e marketingut Per te zgjedhur nje strategji per mbulimin e tregut duhet te merrni ne konsiderate buriemt e kompanise, gamen e produkteve, ne c’faze te ciklit te tyre te jetes jane produktet dhe strategjite e marketingut te konkurenteve’. Marketingu i Padiferencuar Marketingu i Diferencuar Marketingu i Koncentruar Marketingu Miks i Kompanise Marketingu Miks 1 i Kompanise Marketingu Miks 2 i Kompanise Marketingu Miks 3 i Kompanise Marketingu Miks i Kompanise Tregu Segmenti 1 Segmenti 2 Segmenti 3 Segmenti 1 Segmenti 2 Segmenti 3
36. Zgjedhja e nje strategjie per mbulimin e tregut kerkon te merren ne konsiderate shume faktore. BURIMET E KOMPANISE STRATEGJIA E KONKURENTEVE FAZA E CIKLIT TE JETES SE PRODUKTIT VARIACIONET E PRODUKTIT DIFERENCAT E BLERESVE Perdorimi i marketingut te padiferencuar atje ku konkurentet ofrojne nje game produktesh te diferencuara nuk do te ishte zgjidhja e duhur, ndersa ne rastin e kundert do te ishte shume efikase! Marketingu i padiferncuar eshte me i pershtatshem per produktet uniforme si kripa. Produktet qe mund te variojne ne dizenjon e tyre jane me te pershtatshme per strategjine e diferencuar. (p.sh. kamerat, makinat) Ky faktor do te percaktoje shanset per diferencim. Bleresit me te njejtat shije dhe zakone blerjeje nuk jane kandidate te mire per strategjine e diferencimit. Produktet e reja normalisht nuk mund te prodhohen ne shume modele, keshtu qe keshillohet marketingu i diferencuar apo i perqendruar. Faktori me i rendesishem per zgjedhjen e nje strategjie per mbulimin e tregut. Perqendrimi ne nje pjese te vogel te synuar e te identifikuar qarte njihet me termin e marketingut niche .
39. Konsumatoret jane ne qender te te gjithe aktiviteteve te biznesit! Te njohesh klientet e tu eshte e rendesishme ne identifikimin si te konsumatoreve aktuale ashtu edhe te atyre potenciale ne te ardhmen. KONSUMATORET Aktivitetet e Marketingut Aktivitetet e Prodhimit Aktivitetet Financiare & te Kontabilitetit Aktivitetet e Burimeve Njerezore
40. Njohja e Konsumatoreve Tuaj – Kompanite duhet te studiojne perceptimet, preferencat dhe sjelljen blerese te konsumatoreve. Cilet jane konsumatoret e synuar? Pse do te duan te blejne konsumatoret? Cfare do te duan te blejne konsumatoret e synuar? Si do te duan te blejne konsumatoret? Kur do te duan te blejne konsumatoret? Ku duan te blejne konsumatoret? Ku jetojne konsumatoret? C’moshe kane ata?A jane burra, gra, femije? Cili eshte profesioni i tyre? Po te ardhurat? Statusi? Niveli i arsimimit? Besimi fetar? Interesa te vecanta? Cfare perfitimesh do te kene konsumatoret po te blejne produktin tim? Cilat produkte dhe me cfare karakteristikash do te permbushte pritjet e tyre? Si do ta duan produktin te paketuar? Cfare sasish deshirojne konsumatoret? A do te blejne konsumatoret kete produkt kur ata te blejne produkte te tjere qe lidhen me te? Sa i rendesishem eshte vendi i blerjes? A do te shkojne konsumatoret ta blejne kete produkt vetem apo me te tjere?A eshte e rendesishme shperndarja? Sa shpesh do te blinin konsumatoret? A eshte kjo nje blerje e rregullt apo speciale? A ka ndonje kohe te vecante apo dite javeose viti kur kerkesa per produktet eshte me e larte (per shembull ushqimet e vecanta mund te kerkohen me shume gjate Vitit te Ri) Cilat magazina, dyqane apo vende do te ishin me te lehta per t’u gjetur nga konsumatoret ku ata te blinin produktet tuaja Ku do te prisnin konsumatoret t’i gjenin ato? Njohurite rreth konsumatoreve te synuar perbejne bazat per t’u ofruar ketyre konsumatoreve produktet qe do t’i kenaqnin ata, do t’i benin ata besnike, bleres te vazhdueshem dhe do t’i siguronin fitime biznesit.
41. Marketuesit duhet te kuptojne se si konsumatoret transformojne inputet e marketingut ne pergjigje blerese! Sjellja Blerese Konsumatore Psikologjike Personale Sociale Kulturore Faktoret kulturore ushtrojne me shume influence ne sjelljen blerese konsumatore se sa faktoret e tjere kryesore. Faktoret sociale perfshijne grupet e references, familjen, rolin dhe statusin. Karakteristikat personale qe influencojne SBK: moshen dhe fazen ne ciklin e jetes, profesionin, gjendjen financiare,menyren e jeteses dhe personalitetin. Motivimi; Perceptimi; Te mesuarit; Besimet
44. Procesi i Blerjes nga Konsumatoret Njohja e Nevojave Kerkimi Vleresimi i Produktit ose Sherbimit Vendim marrja Sjellja blerese e konsumatoreve eshte rezultat i faktoreve kulturore, sociale, personale dhe psikologjik. Kompanite qe i kuptojne keta faktore do te jene ne gjendje te identifikojne konsumatoret e synuar te interesuar per produktin e tyre. Vleresimi Pas - Blerjes
45. Procesi i Blerjes nga Biznesi – zakonisht perfshin blerje me te medha se sa blerjet nga konsumatoret dhe shpesh me shume njerez perfshihen ne marrjen e vendimeve. Konsumatoret e biznesit bejne porosi me te medha dhe me shpesh sesa konsumatoret individuale. Te kuptosh procesin e blerjes se tyre dhe te marresh pjese ne te, do te thote te kesh shume fitime . Njohja e Problemit Pershkrimi i Nevojes se Pergjithshme Specifikimi i Produktit Kerkimi i Furnitorit Kerkesa per Propozime Zgjedhja e Furnitorit Specifikimi i Porosise Rishikimi i Performances
48. Kerkimi i Tregut PSE DUHET TE BENI KERKIM TREGU NESE JU TASHME I NJIHNI KONSUMATORET TUAJ?
60. Elementet Kryesore te Marketingut Taktik Zhvillimi i Produktit Zhvillimi i Sherbimit Gjetja e burimit Vendosja e Cmimit Shperndarja Sherbimi Forca Shitese Promovimi i Shitjeve Reklamimi Ofron Vlere Komunikon Vlere Produkti Cmimi Vendi Promovimi Marketingu Taktik
61. Vendimet kryesore te manaxhimit te marketingut mund te klasifikohen ne nje nga kategorite e meposhtme : 4P’te e marketingut jane variablat qe manaxheret e marketingut mundte kontrollojne me qellim qe te kenaqin konsumatoret ne tregun e synuar! PRODUKTI PROMOVIMI VENDI CMIMI TREGU I SYNUAR
70. Cikli i Jetes se Produktit Hyrja Zhvillimi Preferenca e Markes Pjekuria Besnikeria ndaj markes Ngopja Renia Volumi i Shitjeve Koha Shitjet dobet Fitimet humbje pozitive por pozitive por Pozitive por Cmimi I larte minimum stabel Kostot te larta stabel Konkurenca E dobet Ne kulmin e saj
71. Pjesa e Tregut Rritja e Tregut I larte I ulet E larte E ulet Matrica e Bostonit (Matrica Rritje/Pjesa e Tregut) 2. Lopet me Para 1. Yjet 3. Pikepyetjet (Femije me problem) 4. Qente
72. Tregjet Ekzistues Tregje te Reja Produkte Ekzistuese Produkte te Reja Matrica Ansoff (Matrica Produkt/Treg) Penetrimi ne Treg Zhvillimi i Produktit Zhvillimi i Tregut Diversifikimi
73. Tregje Ekzistues Tregje te Reja Produkte Ekzistuese Produkte te Reja Matrica Ansoff (Matrica Produkt/Treg) Per shembull Rirregullimi i marketingut miks Te njejtat pika shitjeje dhe strategji shitjesh - produkt i ri Per shembull zgjerimi gjeografik Diversifikimi - qe ka lidhje ose jo
79. Kompania duhet te zhvilloje rregullisht produkte te reja nese do qe te ece me shijet dhe kerkesat konsumatore qe jane vazhdimisht ne ndryshim! Tregje Ekzistues Tregje te Reja Produkte Ekzistuese Produkte te Reja Penetrimi i Tregut Zhvillimi i Produktit Zhvillimi i Tregut Diversifikimi
95. Metodat e Venies se Cmimit - Kostot e produktit duhet te caktojne nje cmim dysheme; Vlera ne perdorim eshte cmim maksimum qe do te paguaje nje konsumator .
98. Cmimi - ashtu si produkti - ndervepron ngushte me elementet e tjere te marketingut miks
101. Objektivat e Promocionit duhet t’i pershtaten tregut qe synon kompania dhe nevojave te tij! TE PANDERGJEGJESUAR Te ndergjegjesuar per produktin Kuptojne produktin Besojne te produkti E BLEJNE Besimi Perceptimi i Perfitimit Informacioni Stimuli Promocional Dyshon Indiferent Nuk kupton Harron
105. Miksi i mjeteve te promocionit eshte i ndryshem ne tregjet konsumatore dhe ato industriale. Mallrat Konsumatore Mallrat Industriale Marredheniet Publike Promocioni i Shitjeve Shitjet Personale Reklamimi Frekuenca e Perdorimit Rendesia relative e mjeteve te promocionit per mallrat konsumatore dhe ato industriale.
106. Ku duhet te alternoni vendimin per blerjen ne kanalit e distribucionit? Si duhet te alokoni burimet ?
107. Konsumatoret vleresojne mjete te ndryshme promocioni ne varesi se ku jane ne procesin e tyre te vendimarrjes per blerjen. Njohja e Problemit Kerkimi i Informacionit Vleresimi i Alternativave Vendimi per Blerjen Vleresimi Pas-blerjes Reklamimi, Publiciteti Reklamimi, Shitjet Personale Shitjet Personale Promovim i Shitjeve, Shitje Personale Reklamimi, Shitjet Personale
Notes de l'éditeur
Why our company exist? Company managers/owners must know the answer to this question. Do you creating any values to customers? How the customers perceived your company? What are the trends on your market? Is there any new “players”? By responding to these questions you are measuring “pulse” of the market. Than you will be able to prepare action plans to achieve your objectives. However, this is continuing process and manager must ask himself all the time these questions.
Production approach - past Success depends on network of suppliers Mass production with minimal costs Production is determined by capacity of machines Marketing approach - future Success depends on network of customers Produce only what sells profitably Production is determined by market requirements
Companies look at the market from different angles in order to find the best way to analyze it. Market segmentation is the first of three major steps in target marketing.
Measurable – it is crucial to be able to measure the size, buying power and customer profile of any target group. Reachable – a company can only target market segments that it can actually serve. You cannot promote sale of a product in a region where there is no distribution to make that product available to customers. A company cannot pursue contracts for large-volume sales if it does not have the production capacity to meet these orders. Sizable – there must be enough customers for it to be worthwhile to develop unique marketing mix to serve them. Achievable – the company must have the resources and capabilities to develop and deliver the marketing program to the market segments it chooses to target. Identifying possible market segments is a way that a company discovers its market segment opportunities. These various segments must be evaluated to determine which are the best ones to select as targets-buyers who share common needs or characteristics and that the company decides to serve. The company must decide which and how many target markets it will serve.
Many factors need to be considered when choosing a market coverage strategy. These include the company’s resources, its range products, where products are in their product life cycle, and competitors’ marketing strategies. A company can choose from one of three market coverage strategies (see slide).
These companies offer product and marketing variations in the hope of achieving higher sales and a stronger market position in each market segment. The goal is to improve company image and make customers more loyal because the company’s product offering better matches their desires. Differentiated marketing usually increase total sales, but it also increases costs in many areas. Companies must weigh these extra costs against the increased sales when deciding on differentiated market coverage strategy.
This strategy is especially appealing when company resources are limited. It is an excellent way for smaller and newer businesses to get foothold against larger and more established competitors. Small niche companies are often forced to sell out to their larger competitors when they do not have the resources to compete at that level. Many companies prefer to spread the risks of concentrated marketing by expanding their operations into several market segments. Recent advances in technology are also allowing more companies to segment their customers into more like-minded groups. The continuing development of these technologies suggests that there will be more and more concentrated marketing in the future. Concentrated marketing can be very effective for small SMEs with limited resources.
Why will they want to buy? Customers buys benefits. They buy a product or service because of the benefits they think they will get from the purchase. Customers do not buy a product because of its features, they buy it because it will help them satisfy a need. Therefore, product attributes must be translated into functional and emotional benefits that mean something to your customers.
Cultural factors Culture is the set of basic values, perceptions, wants and behaviors learned by members of society from their family and the other institutions in their life (schools, government, etc.). Cultural influences can vary greatly from country to country. Social classes are the divisions in a society where members of a given social class share similar values, interests, behaviors. Social classes often differ in their dress, speech, occupation, and many other characteristics. Companies are interested in social class because people within a given social class tend to exhibit similar buying behavior, showing distinct product and brand preferences in many areas (clothing, home furnishings, transpiration, entertainment and leisure activities). Social Factors Reference groups are all those groups that influence a person’s attitudes or behavior. This includes family, friends, clubs,etc.(e.g.members of the same sports team will want to buy similar products).Family is the most important consumer buying unit in society. Family often exert a strong influence on buying behavior. Personal factors Age and stage in life cycle refers to the fact that people buy different goods and services at different times in their lives. Tastes in food, clothes, furniture and recreation are often age related. Consumption is also shaped by the family life cycle (e.g. families with young children are more likely to buy home appliances, baby food, children’s toys). Occupation Occupation is an important influence on consumption pattern. Factory workers will buy work clothes and lunch boxes, while managers will buy business suits. Financial situation Financial situation includes a person’s income and the amount of money he or she has available to spend as well as possessions and savings or investments. A person’s financial situation will also affect his or her attitude toward spending and saving. Lifestyle Lifestyle refers to person’s pattern of living and his chosen activities, interests and opinions. Some people are very interested in change and see themselves as the first to try any new product, while others are followers who wait for others to take the lead. Companies introducing new and innovative products will be interested in finding ways to identify and target the innovators rather than the followers.
Observation method involves watching or observing a buying situation or the customer’s behavior. It is direct observation rather than communicating with a customer in order to obtain information. It is a method that can be used very effectively in self-serve stores. The communication method involves communicating with customers to obtain the desired information, usually by having them answer questions. The 3 main methods are:mail questionnaires, telephone interviews, personal interviews.
Companies need to focus on the entire buying process rather than on just the decision making activity. However, buying decisions do not necessarily follow all stages. Buying rice or other food staples you probably go to the same store where you usually buy food and do not go through a very complicated process. It is in new, important, or complex purchases that all stages are followed.
Marketing Research vs. Market Research Terms are used interchangeably but are different: Market research deals specifically with the gathering of information about a market's size and trends. Marketing research covers a wider range of activities and is a more general process to be applied to a variety of Marketing problems.
Write the answers on the board. Keep and use this in explaining Primary and Secondary Data! Stress that a business can never know enough about its customers since they changes and evolves as does the market. It is important to be as well informed as possible. Marketing research is often neglected by small business. The following benefits of such research must be made very clear to the participants: Better knowledge of the product Better knowledge of the constantly changing market Systematic sales analysis enabling to be made more rapidly Better knowledge of the consumer to whom new products can be offered More effective promotion/advertising Better knowledge of the competition
Business directories Telephone directories Market handbooks Annual reports Market information
Also Product Testing
Types of Marketing Research Market/consumer research Needs and wants of consumers/prospective customers Potential of market segments Competitive advantages/disadvantages Trading area measurement, etc. Product research New product development stages Product pricing Brand comparisons, image Blind vs named testing, etc Promotion research Advertising idea generation, recall and effectiveness measurement, retail promotion presence/effectiveness, etc. Sales research Measuring performance of sales staff, sales expenses, territory analyses, etc. Company research Industry/business trends, the firm’s image, employee morale, location assessment, etc.
T he main goal of competitor analysis is to forecast future competitive dynamics and plan a set of tactical moves that will optimize company position vs. competitors. By tracking competitors, company may be able to Increase management’s ability to do the right thing at the right time, so not to be blindsided by a new competitor, by unexpected actions by known competitors. Reduce the risk of making a wrong decision so it won’t be possible to say: “If only I knew then what I know now, I would have done things differently”, about the future direction and growth. Exploit their weaknesses, and undermine their strengths by changing our product/service, or by promoting it differently. Predict competitor’s response to company’s activities What kind of information about competitors does the company need? Product (Output in units, product features, and product mix…) I t is important to understand what product do they produce and how different are they from ours. How many different products do they produce and how much of each type? Do they sell everything they produce or do some products sell better than others do? Is the price of their products different from ours? Do their products have features that we do not or vice versa? Are there post sales services offered that we do not offer? Their customers (By location, by type, by financial power…) Customers are the reason each enterprise exists. The rule of the game, in the market economy, is to get as many customers as possible who are willing to pay a price that generates profit. Thus, it is crucial to know who your competitors’ customers are, and which customer segment is the most valuable? Do our competitors provide additional service and what are the terms of their warranty agreements? What do their customer think about our products? Why do not they buy our products? Distribution (Type-retailer, wholesaler, Outlets, special agreements with them, convenient for penetration the new markets, warehousing and transportation system…) In order to find the right customers and to properly serve them, it is necessary to have an appropriate distribution system that would reach our customers. It would be invaluable to know your competitors’ distribution channels, i.e. retailers, wholesalers. What are their terms of contract and is it different from ours? Are they concentrated on specific regions or do they have a countrywide distribution in place? Do they have superior transportation and/or warehousing facilities? How much profit do independent wholesalers make on their products? What about retailers? Promotion (Advertising mix, promotional materials, customer incentives, product demonstrations…) Promotion increases awareness of products. Thus, it is important to see how your competitors promote their products (focus on the methods of successful competitors). Do they advertise in different channels (i.e. TV, trade journals, radio). Do they have materials that describe their products? Is their promotion geared only to the end-customer or to the middle-man as well? Do they make cold calls to potential customers? What does their promotion convey about their products? What product strengths do they focus on? Price (price lists, sales contract terms, discounts, and terms of payment…) Since revenue of an enterprise depends on the price per unit and the volume of units sold, our enterprise must keep track of the price at which the competitors sell their products. Are your competitors willing to accept barter or promissory notes? What mark-up is being added at each level? Is their price lower (higher), and do they sell more than we do?
Ask the question and record the answers on the board. Establish the link between the product and consumer needs.e.g. in the case of retailer, the store is a part of the total product. The box of laundry detergent is only the product.
This is an information slide -- the point is to note how a taxonomy/ framework can help discipline thoughts about the marketing mix. Ultimately this is an argument about consistency -- as discussed earlier -- and should be positioned as such. The selection of the marketing mix -- particularly distribution and promotion must be consistent with the product type itself. Price as well -- although this is not advocating simple cost-plus pricing -- is determined by the product itself. Discussion/ Approach: COVER UP THE RIGHT HAND SIDE OF THE SLIDE and ask a member of the audience to comment on what the rest of the marketing mix might look like and why? Ask members of the audience to classify their own products.
Product development - sales are zero, investment costs are high Introduction - profits do not exist, heavy expense of product introduction Growth - rapid market acceptance and increasing profits Maturity - slowdown in sales growth. Profits level-off. Increase outlay to compete Decline - sales fall-off and profits drop Here is very important to emphasize that marketing strategies are very different for a product in the introductory phase and in the saturation. Products have a life cycle. They are born and at some point they decline toward obsolescence The key point is that at various points in the life cycle different marketing strategies and mixes apply, based on CUSTOMER response and COMPETITOR response. The general point is that marketing decisions should always be sensitive to their context -- one aspect of which is the point a product might be in its life cycle. It should be easy to get the audience to accept this concept at the level of common sense, without necessarily taking the (reductive) next step of assuming that there is one-and-only one marketing mix applicable for each stage in the life cycle. These decisions will be contingent on a range of other factors, and the PLC might not be the strongest factor (industry might well be more important for instance) Marketing always and especially in contemporary Russia requires FLEXIBILITY and controlled EXPERIMENT.
The business portfolio is the collection of businesses and products that make up the company. In portfolio analysis, management evaluates the businesses for their strategic fit in meeting company objectives. Question Mark – High growth, low share businesses. Strategy must decide between further investment to move question marks to star status or pashing the product out. A question mark requires a lot of cash both to keep up with a rapidly growing market and improve its share position. Stars – High growth, high market share. Stars are the market leader in these fast-growth markets. Stars often require heavy investment to build/maintain share in rapidly expanding markets. You may wish to discuss the importance of market share to product profitability at this point. Cash Cows – Low growth, high market share. When the market’s annual growth rate falls to less than 10% the stars becomes cash cows. Cows generate profits for investment in other businesses. Dogs – Low growth and low share. Dogs are often targets for divestment, but may still be profitable and contribute to othe organizational goals.
Intensive Growth The Ansoff’s grid plots two of the three methods a company can employ to achieve its strategic growth objectives. In utilizing an Intensive Growth Strategy, a company has three approaches. A Market Penetration strategy suggests a company could sell more of its current product(s) to its customers, attract competitors’ customers, or convince non-users to begin using the product, thereby increasing its existing market share. By employing Market Development a company could identify new markets for its product by determining potential user groups for its current products, seeking additional distribution channels in its present locations, offering its product for sale in new geographic territories, either domestic or international. Through a Product Development strategy, a company would create an augmented, or entirely new, product. This could both stimulate the current markets as well as create new ones. For Diversification Strategy three approaches are possible. The company could seek new products that have technological and/or marketing synergies with existing product lines, yet the new product may still appeal to a different target group. This is known as concentric diversification. The company might also search for new products that could appeal to its current customers even though they are unrelated to its current line (horizontal diversification strategy). Finally, the company might seek new business that have no relationship to the company’s current technology, products or markets, but rather are new business areas (conglomerate diversification).
Value depends on how deeply established in the market place the brand is -- brand loyalty is can be really valuable (as well as inexplicable at times) Brand equity can be enormous and represents years of heavy investment in advertising. Audience should be aware that establishing a brand is really not cheap. (Reference the PEPSI campaign somewhere in the discussion on brands -- and the $500 million that Pepsi is investing in effectively re-launching the brand) But brands once established have enormous value for the manufacturer/ distributor: they reduce marketing costs -- or rather improve the effectiveness of marketing because of the high existing level of awareness and loyalty; they give manufacturer greater power in distribution channel -- this is especially important where thousands of brands compete for limited retail space. They can establish a price premium and defend against simple price competition. And they are capable of being managed indefinitely -- less vulnerable to obsolescence through product life cycle. Discussion/ Approach: Read the slide -- establish that brands are really expensive to establish but can create huge benefits. Cost of establishing brands is less where competition is less fierce -- may be cheaper to establish brand in an emerging consumer market than in established market.
New product ideas come from internal and external sources. Internal sources account for over 55 % of all new product ideas. These can come from R&D activities or from company staff involved in design and production. Company sales people and managers can also brainstorm new ideas. External sources include customers, competitors, distributors, suppliers and others.
Distribution is possibly the hardest of the 4 Ps to manage It requires complex relationships with independent businesses -- it is not fully under the control of the firm; hence inherent potential for conflict Yet for all this: distribution is the key link with the end use customer who is supposed to be the “first mover” of marketing. It should probably be mentioned at this point -- although we stress it later -- that barter adds further complexity to the distribution relationship and further distance between manufacturer and customer. Distribution -- as other elements of the marketing mix involves Discussion/ Approach: We are moving toward the territory where we will learn as much form the audience as we will be able to teach them. Therefore try to get dialogue going at this point. What are their views on the state of distribution in the country ? What problems are they encountering? What methods do they use to try to get product to market and information back from the market?
Indirect Distribution Pros: Allows wide coverage product availability purchase convenience Allows distributor value addition information disbursement S ervice breaking up lot sizes/bundling assortments Cons: Lack of control of sale and price Lack of customers feed back Direct Sale Pros: Better feedback from customers Tighter control of marketing mix in the channel Cons: Expensive