1. Chetana BBA college, Bijapur

2.  It is an integrated process
through which companies
build strong
customer relationships
and creates value for
their customers and for
themselves.

3.  In marketing, a product is anything that can be
offered to a market that might satisfy a want or
need

4. 8 - 4

5.  Consumer products
 Industrial products
◦ Materials and parts
◦ Capital items
◦ Supplies and services
8 -
5

6. 8 -
6
Unsought ProductsUnsought Products
 New innovations
 Products consumers don’t
want to think about these products
 Require much advertising &
personal selling
i.e Life insurance, blood donation
Specialty ProductsSpecialty Products
 Special purchase efforts
 High price
 Unique characteristics
 Brand identification
 Few purchase locations
i.e can be anything
Shopping ProductsShopping Products
 Buy less frequently
 Higher price
 Fewer purchase locations
 Comparison shop
i.e Clothing, appliances
Convenience ProductsConvenience Products
 Buy frequently & immediately
 Low priced
 Mass advertising
 Many purchase locations
i.e Candy, newspapers

7. –A group of products that are closely
related because they may:
•function in a similar manner
•be sold to the same customer groups,
•be marketed through the same types of
outlets
•fall within given price ranges
P&G has 100 types of toothpastes.

8. Fig, tentative Product Mix of HUL

9. A good
honest scoop
of daily
pleasure.
Lipton has a
range of vitality
teas that truly
encompass the
goodness of tea.
India’s favorite cup
of tea, the great
taste of Red Label
brings people
closer together and
strengthens
relationships.
Brooke Bond Taaza
lifts me people
unshackles the mind,
allowing them to see
and realize
possibilities.
Brooke Bond Taj
Mahal is an exclusive
selection of teas for
the discerning
consumer.
Partnering with the
mom in nurturing
her dreams,
Annapurna Atta is
aimed at helping her
provide wholesome
tasty nutrition to her
Playful banter, a little
mischief, serious
conversation…
there’s no time for
young couples like
the time spent
sharing a cup of 3
Roses.
Ek cup Bru aur
mood ban
jae…
With Kissan,
good food is
loved not
shoved!
Kissan Amaze
Brainfood is
speci - fically
designed for the
mental
development of
kids.
Knorr helps
families make
meal times
special, nutritious,
tasty and healthy.

10. Active Wheel de
"Mehnat se Aazadi"
Freedom from painful
& tiring laundry
Cif- the best
cleaner to let you
shine.
The world’s
largest fabric
conditioner
brand.
The sheer power of
Domex bleach gives
you the confidence
you need,
eradicating all known
germs.
Rin provides ‘best in
class whiteness’
which is
demonstrable.
Sunlight is a
color care
brand
Giving your kids the
freedom to get dirty
and experience life,
safe in the knowledge
that Surf Excel will
remove those stains
Created in 1885, the
Vim brand is still
innovating and using
the magic of natural
ingredients to create
unbeatable results
over a hundred years
later.

11. Rexona gives you 24
hour protection from
sweat and body odour
and therefore the
confidence to handle
whatever the day has
in store.
Dove stands for real
beauty. All around the
world, Dove is making
complete therapy for your
hair.
Pears – the purest and most
gentle way to skincare!
Lux believes in passion
for beauty. It continues
to be a favorite with
generations of users for a
sensuous experience of
luxury.
Awaken, and enliven your
senses with a Liril bath.
Lifebuoy is available in
multiple variants in
soaps and specialist
formats such as liquid
hand wash, catering to
the entire family.
Holistic skin care
experiences perfected over
the ages to deliver healthy,
beautiful skin
Breeze, with the goodness
of glycerine gives soft,
fragrant and smooth skin.

12. New Clear with Essential Oils,
guarantees Zero dandruff and
leaves your hair feeling fabulous.
Clinic Plus is India’s largest selling
shampoo and has won the trust the
millions of families across India.
Freshness that brings you Closer Pepsodent India is committed to improve
the overall Oral health of Indians.
Sunsilk encourages young women in
India to live for today. Sunsilk helps you
transform the beauty of your hair
instantly because LIFE CAN'T WAIT!!
Dove stands for real beauty. All around
the world, Dove is making complete
therapy for your hair.

13. Your skin is
amazing. It
deserves to be
treated as such.
Rexona gives you 24
hour protection from
sweat and body
odour and therefore
the confidence to
handle whatever the
day has in store.
Get the expert to look after
your skin
Lakme is an ally to the
Indian Woman and
inspires her to express her
unique beauty and
sensuality. Thus, enabling
her to realize the potency
of her beauty.
More than 30 years ago,
a unique brand was
born. Wrapped within a
humble lavender tube,
it went on to become
the World’s No.1
Fairness cream.
Axe with Best
Quality Fragrance
LEVER Ayush aims to
help a new generation
of Indians rediscover
everyday health and
vitality through
customized Ayurvedic
solutions.
Aviance enables women
actualize their unique
potential through expert
customized beauty
solutions.
The new expansion
of fairness cream for
men

14. Line stretching:
Upward
Downward
Combination
Line filling
Line Modernization:
Line pruning:

15.  PRICE
 FACTORS IN PRICE SETTING
 VALUE BASED PRICING
 COST BASED PRICING
 OTHER INTERNAL & EXTERNAL
CONSIDERATION
 INTERNAL FACTORS
 EXTERNAL CONSIDERATION
 PRICING IN DIFFERENT TYPES OF
MARKET

16.  PRICE: “It is the amount of money charged for
a product or service
 IN A BROADER SENSE: “It is the sum of all
values that customers give up in order to
gain the benefits of having or using a
product or service”.

17.  A price that the company charges falls
some where between one that is too high
& one that is too low to produce a profit
 Customers perception of the product value
sets the ceiling for the prices, if the
customer perceive that the price is greater
than the product value. They will not buy
the product.

18.  “It is the setting of prices based on
buyer’s perceptions of value rather than
on the seller’s cost”.
 THERE ARE TWO TYPES OF VALUE
BASED PRICING
1.GOOD VALUE PRICING
2.VALUE ADDED PRICING

19.  “It is offering just the right combination of
quality & good services at a fair price”.
 During the past decade, there has been a shift in
consumer attitudes towards price & quality.
 Many companies have noticed these changes &
modified their prices to bring them in line with
changing conditions of the consumers.
 There are two types good value pricing
1. EDLP[Every Day Low Pricing]
2. High low pricing

20.  “It is attaching value added features &
services to differentiate a company offer
& to support charging higher prices”.
 To increase their pricing power, many company adopt
value added pricing , they attach value added features &
service to differentiate their offers & thus support higher
prices.
 To retain pricing power, a firm must retain or build the
value of its marketing offering.

21.  “Cost based pricing is the setting of the prices
based on the cost for producing, distributing &
selling the product plus a fair rate of return for
effort & risk”.
 Many companies work to lower their cost of production so
that they could sell in large number & earn more profits.
 There are two types of costs i.e. FIXED COSTS &
VARIABLE COSTS
 FIXED COSTS: are those costs that do not vary with
production or sales level.
 VARIABLE COSTS: are those costs that vary directly
with the level of production.
 TOTAL COSTS: are the sum of the fixed & variable
costs for any given level of production.

22.  If the production capacity is fixed & less the cost
of production will be high as the units produced
are only few. The fixed cost are spread over these
units with each unit bearing a large share of fixed
cost .
 If the production capacity is large or if a company
builds a larger plant, the number of units produced
will be more .The fixed cost gets spread over all
these units thereby reducing the cost of
production the long run average cost is low.

24.  The drop in the average cost of production with
accumulated production experience is called as
the EXPERIENCE CURVE or LEARNING
CURVE

25.  “It is the method of pricing where we add a
standard mark up to the cost of product”.

26.  “It is the setting of prices to break even
on the costs of making an marketing a
product , or setting prices to make a
target profit”.
 Formula:

28.  Internal factors are the companies over all
marketing strategy, objectives &
marketing mix.
 External factors are the
1. Nature of market
2. Nature of demand
3. Companies competitors strategies
4. Environmental factors

29.  If the company has selected its target market &
positioning carefully, then its marketing strategy
will be straight forward.

31. a) PURE COMPETITION
b) MONOPOLISTIC COMPETITION
c) OLIGOPOLISTIC COMPETITION
d) PURE MONOPOLY

32.  No single buyer & seller has much effort
on the on going market price. he cannot
charge more than the on going price. Nor
can he charge less as he can sell all they
want at that price.
 In a pure competitive market product
development, pricing , advertising & sales
promotion has no rule.

33.  A range of prices occurs because sellers can
differentiate there offers to their buyers .
 Buyers see the differences & pay different prices .
 The prices vary on account of product features
,style,design,or the services rendered..

34.  The product could be uniform .ex; steel, cars &
computers.
 There are few sellers because it is difficult for
others to enter the market.

35.  Here, the market consist of one company or
seller .
 The seller may be a Govt monopoly ex. Postal
service or regulated monopoly like power
company a HESCOM, Railway.

36.  Each price a company might charge will lead to a
different level of demand
 In a normal case, price & demand are inversely
related i.e. higher the price, lower the demand.
 The company sells less if the price is more & sells
more if the price is less.

37.  “It the major of the sensitivity of demand to
changes in price”.
 If the demand for the product changes to a relative
increase in price of the product this is called
ELASTIC.
 If the demand hardly changes with a small change
in price we call it as IN-ELASTIC.

38.  In setting its prices, the company must also
consider competitors costs, prices & marketing
offerings.
 The company needs to ask many questions as to
how the consumers perceive its product vice-
versa other products if they perceive it as of
higher value then it can charge high prices.
 No matter what price you charge high low or
medium we should give customers superior value
for that price.

39.  While setting prices, other factors too needed to
be considered like economic condition like
weather there is a boom or recession.
 It should also look in to Govt regulations & special
concerns.

40. NEW
PRODUCT
PRODUCT
MIX
PRICE
ADJUSTMENT
 SKIMMING
PRICING
 Product line  Discount &
allowance
 PENETRATING
PRICING
 Optional
pricing
 Segmented pricing
 Captive pricing  Psychological
pricing
 By- products  Reference pricing

41.  As we have observed the pricing changes as the
product passes through its Life Cycle .
 Firms bringing out new products face the challenge
of setting the prices for the 1st
time.
 They need to decide whether to set a very high
price or a low price.
 It depends on the company strategy as to what it
intends achieving a quick return on its investment or
a large customer base.
 The company can choose between two broad
strategies
 1)MARKET SKIMMING PRICING
 2)PENETRATING PRICING

42. 1. MARKET SKIMMING
PRICING
2. PENETRATION PRICING

43.  It is a setting a high price for a new product to
skim maximum revenues layer by layer from the
segments willing to pay high price Here, the
company makes fewer but more profitable
sales.

44.  “It is setting a low price for a new product in
order to attract a large number of buyers and a
large market share”

45. a) Product Line Pricing
b) Optional Product Pricing
c) Captive Product Pricing
d) By-Product pricing
e) Product Bundling Pricing

46.  “ It is the setting the price steps between
various products in a product line based on
cost difference between the products,
customers evaluation of different features &
competitive prices”.

47. ◦ “It is the pricing of optimal or accessory
products along with the main product”.

48.  “IT is setting the price for product that
must be used along with main product”.

49.  “It is setting a price for by – product in
order to make the main products price
more competitive”.

50.  “It is combining several products &
offering the bundle at a reduced price”.

51.  Companies usually adjust the basic prices to account
for various customer differences & changing
conditions.
 There eight price adjustment strategies
1. Discount & Allowance Pricing
2. Segmented Pricing
3. Psychological Pricing
4. Reference pricing
5. promotional Pricing
6. Geographical pricing
7. Dynamic Pricing
8. International pricing

52.  “It is a straight reduction in price on
purchase during a stated period of time”.
 Most companies adjust their basic price to
reward customers for certain responses such
as early payment or bills, volume purchases,
off season buying etc…
 ALLOWANCE :are another type of reduction
from the list price. There are basically
promotional money paid by manufactures to
retailer’s for an agreement. to feature the
manufacture product in some way.

53.  “It is selling a product or service at two or
more prices, where the difference in prices is
not based on difference in costs”.
 Companies often adjust their basic prices to
allow for differences in customers , products &
locations segmented pricing takes various
forms…
1. Customer segment pricing
2. Product form pricing
3. Location pricing
4. Time pricing

54.  “It is a pricing approach that considers
the psychological of prices & not simply
the economics the price is used to say
something about the product”.
 Customer usually perceive the quality of
a product is linked to high price, it
means higher the price, the higher
quality of the product.

55.  “It another aspect of psychological
pricing. it is the prices that buyers carry
in their minds & refer it when looking at a
given product. the reference price might
be formed by noting current prices,
remembering past prices or assessing
the buying situations”.

56.  “It is a pricing of the product temporarily below
the list price & some times even below its cost
of production to increase short run sales”.
 Super markets Dept stores resort to such
pricing & price a few products as loss leaders
to attract customers to the stores with a hope
that they will buy other items at normal
markup’s.
 Sellers at time give cash debts if product is
brought from the dealers within a specified time
or use special event pricing in certain seasons
to draw more customers.

57.  “It is the setting of prices for customers
located in different parts of the country
or world”.
 THERE ARE FIVE(5) STRATEGIES
1. FOB-ORIGIN PRICING
2. UNIFORM-DELIVERD PRICING
3. ZONE PRICING
4. BASING PRICING
5. FREIGHT ABSORPTION PRICING

58.  FOB-ORIGIN PRICING: “A geographical pricing
strategy in which goods are placed free on board
carrier, the customer pays the freight from the
factory to the destination”.
 UNIFORM-DELIVERD PRICING: “A geographical pricing
strategy in which the company charges the same price plus
freight to all customers, regardless of their location.
 ZONE PRICING: “A geographical pricing strategy in which the
company sets up two or more zone. All the customers within
the zone pay the same total price , the more distant the
zone , the higher is the price.
 BASING POINT PRICING: “ A geographical pricing strategy in
which the seller designates some city as a basing point &
charges all customers freight cost from that city to the
customer”.
 FREIGHT ABSORPTION PRICE : “ A geographical pricing
strategy in which the seller absorbs all or part of the freight
charges in order to get the desired business”

59.  “It is adjusting prices continually to meet
the characteristics and needs individual
customers & situation”
 E.X: internet sellers such as amazon.com can
mine their data base to gauge a shoppers
desires, major his/her means instantaneously
tailor products to fit the shoppers behavior &
price products accordingly.

60.  Companies that market their products
internationally must decide what price to charge in
the different countries in which they operates.

61. A name, term, sign, symbol or design, or a
combination of them, intended to identify the
goods or services of one seller or group of sellers
and to differentiate them from those of
competitors.

62. 62

63.  Step 1: Problem and Opportunity Recognition
 Step 2: Information Search
 Step 3: Evaluation of Choices
 Step 4: Behavior and Action
 Step 5: Review of Buying Decision
63

64. 64

65. 65

66. 66

67. Promotion is a form of corporate communication
that uses various methods to reach a targeted
audience with a certain message in order to
achieve specific organizational objectives

68. Personal
Selling
Advertising
Sales Promotion
Public Relations
Direct Marketing

69. Consistent clear
and compelling
company & brand
message
Promotion mix
Public relation
Personnel selling
Sales promotion
Direct marketing
advertising

70.  Identify the target audience
 Determine the communication objectives
◦ Persuasive , Informative, reminder
 Design a message
◦ Rational, moral, emotional
 Choose the media
◦ Personal , non-personal
 Select the message source
◦ Credible, experts
 Collect feedback

71. sender decodingmessageEncoding
feedback
receiver
Noise

72. Promotion ObjectivesPromotion Objectives
Target Market
Characteristics
Target Market
Characteristics
Funds AvailableFunds Available
Nature of the MediaNature of the Media

73. MediaMedia
2008
spend.
(billions)
2008
spend.
(billions)
%
growth
2007 to
2008
%
growth
2007 to
2008
AdvantagesAdvantages DisadvantagesDisadvantages
Television
& cable
Television
& cable $70.0$70.0 5.7%5.7%
Demonstrations,
good attention, wide
reach, cable targets
Demonstrations,
good attention, wide
reach, cable targets
Expensive in total,
“clutter”
Expensive in total,
“clutter”
Direct
mail
Direct
mail $63.7$63.7 4.54.5
Selected audience,
flexible, can
personalize
Selected audience,
flexible, can
personalize
Relatively costly per
contact, “junk mail,”
hard to retain attention
Relatively costly per
contact, “junk mail,”
hard to retain attention
News-
paper
News-
paper $42.1$42.1 - 1.8- 1.8 Flexible, timely, local
market
Flexible, timely, local
market
May be expensive,
short life, no “pass
along”
May be expensive,
short life, no “pass
along”
RadioRadio $18.6$18.6 0.20.2 Wide reach, low cost
segmented audience
Wide reach, low cost
segmented audience
Weak attention, many
different rates, short
exposure
Weak attention, many
different rates, short
exposure

74. MediaMedia
2008
spend.
(billions)
2008
spend.
(billions)
%
growth
2007 to
2008
%
growth
2007 to
2008
AdvantagesAdvantages DisadvantagesDisadvantages
Yellow
pages
Yellow
pages $14.7$14.7 1.1%1.1%
Reaches local
customers seeking
purchase info.
Reaches local
customers seeking
purchase info.
Many competitors
listed in same place,
hard to differentiate
Many competitors
listed in same place,
hard to differentiate
MagazineMagazine $14.1$14.1 3.03.0
Very targeted, good
detail, good “pass
along”
Very targeted, good
detail, good “pass
along”
Inflexible, long lead
times
Inflexible, long lead
times
InternetInternet $12.7$12.7 16.516.5
Ads link to more
detailed site, some
“pay for results,”
easy to track results
Ads link to more
detailed site, some
“pay for results,”
easy to track results
Hard to compare
costs with other media
Hard to compare
costs with other media
OutdoorOutdoor $6.6$6.6 6.16.1
Flexible, repeat
exposure,
inexpensive
Flexible, repeat
exposure,
inexpensive
“Mass market,” very
short exposure
“Mass market,” very
short exposure

77.  Upstream
 Downstream
 Value delivery network
 Nature
◦ Direct marketing
◦ Pricing
◦ Sales force

78.  Information
 Promotion
 Contact
 Matching
 Negotiation
 Physical distribution
 Financing
 Risk taking

79. Customer Customer Customer Customer
producer producer producer producer
Retailer Retailer
Wholesaler Sales branch
Business
disributor
Industrial

80. Vertical Horizontal
 Known as VMS  Known as HMS
Multi channel distributionMulti channel distribution

81.  Analyzing consumer needs
 Setting channel objectives
 Identifying major alternatives
◦ Types of intermediaries
 Company sales force
 Manufacturer’s agency
 Industrial distributors
 Number of intermediaries
◦ Intensive
◦ Exclusive
◦ Selective
◦ Responsibilities

82.  Evaluating major alternatives
◦ Economic criteria
◦ Control criteria
◦ Adoptive criteria

83.  Selecting channel members
 Managing and motivating channel members
 Evaluating channel members

84. Pull versus Push
Promotional Strategy
Vs.
Promotion Through the
Channel

85.  Hindustan Lever Limited (HUL) has two
types of channel selling ‐
i. Regular (traditional) retail channel,
ii.Direct Selling Channel in the name of
Hindustan Lever Network (HLN).

86. Redistribution stockists:-
 Sales Margin: 4.76% which includes cash discount, unloading expenses
from depot, distribution expenses to retailers, incentive schemes &
other incidental expenses.
 Modes of transport used: Rickshaw, tempo.
 Incentive schemes: Before 2000 holiday packages and tours but after 2000 no
non‐monetary incentive for RS.
 Software systems and Information System: UNIFY 8.3 (Developed by IBM & CMC).
This software needs to be synchronized daily and the system updates any
information/ incentive schemes / sales figures etc to and from the common shared
platform.
 Areas of Operations: Marked for each of the RS.
 Selling Operations: RSs sells the goods to ‐
o Wholesaler (gets 1.5 % max. discount from RS)
o Retailers (gets 1.0% max. discount from RS)

87.  Based on the QOC various awards are distributed to the field persons at
the end of every month. These awards are also known as ‘MOC Star’
awards.
 If QOC score > 4.5 - The person is eligible for 7 star award
 If QOC score > 4 - The person is eligible for 5 star award
 If QOC score > 3.5 -The person is eligible for 3 star award