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Showing posts from May, 2010

What are Brand and branding? What are the Main Strategies of Its?

Definition of Brand of Company

Brand means name, symbol or design of the product of company. It creates difference of one company's product with other competitor company's product.

Definition of Branding of Company

Branding is technique in which company provides the name and design to each product for creating a special identity. It is helpful for consumer to identify special quality product or products in market.

Strategies of Branding of Company

Following are the main branding strategy which can be used for making and developing of new brand.

1. Brand Positioning Strategy

Brand positioning means bring the brand name of company in mind of customer. When a customer goes to market and he or she should demand of specific product. It means company is successful to position the brand in the mind of consumer. Company must be careful while positioning the brand.

a) It must not be copied from other brand.

b) Company's brand shows the benefits of products.

c) It simply convey the i…

What is Product Mix?

Product mix is the set or group of products which a particular company offers to public. Product mix is very helpful for taking advantage one product brand benefit for selling other product. For example:

Godrej Agrovet division has following product mix:

a) animal feeds

b) agricultural inputs

c) horticulture

d) tissue culture

e) retailing

Product Life Cycle

Product life cycle shows the different stages in which it lives his life just as human being. A human being enjoys childhood, youth age and old age and after this, it is sure he will die. Same thing happens with all products. Product life cycle has four parts. In first stage introduction, second stage is stage of growth, third is the stage of maturity and in the end stage is decline. After this, value of product is totally dropped from market due to invention of new product. We can portray its sketch on the graph paper. Its shape will be bell shape.

Its strategies are divided in Four stages according to life of product.

Ist Stage

Introduction stage of Product life cycle

First stage of plc is called introduction stage. In this stage, product is newly developed and launched in the market. Because, consumer does not know about this product earlier, so its marketing is very difficult. Marketer has to teach the consumers about its benefits and its advance facilities . For new product'…

Stages in Developing New Product

Before describing the stages in developing the new product in marketing mix, we will define the product with following way

Definition of Product

Product is the tangible and intangible things which satisfy the needs of consumers. It means not only physical things which we purchase are the products but all the services of other persons are also product. For example TV, computer, watch, food, house and Taxi driver's services are also products which we can purchase and satisfy our needs.

Following are the seven stages or steps in development of a new product

Ist stage

Idea generation

Idea generation is the first stage of product development. For developing a product, company takes the idea from his internal and external sources.

internal sources of idea generation

a) basic research on google b) idea from production department c) sales men's idea d) top management's idea

external sources of idea generation

a) business magazine b) competitors c) necessity of consumers c) inven…

Positioning for Competitive Advantage Simplified

Simple definition of Positioning for competitive advantage

Positioning for competitive advantage is strategy for defeating our competitors. In this, we study weak points of our competitors and make the list. After this, company makes the product which can be easily sold, if our competitors are failed to provide same facilities with this product.

Strategy of Segmenting the Market

For creating target market or segmenting the market, we can use following strategy :


1st Strategy

Undifferential Marketing or Mass Strategy

In this strategy, company does not make small segment of market and target the whole market in one offer. All marketing mix policy will be same for all parts of market.



2nd Strategy

Differentiated Segmented Marketing

In this strategy, company divides his products, services according to need of different consumers. Company's all market policy will be different for all market segmentation.




For example:

Company of refrigerator enters in differentiative marketing technique and divide his product on basis of income of consumers.

Ist Product - 165 liters. with two door advance refrigerator for rich consumers.

2nd Product - 165 liters. with one door simple for middle consumer.

3rd Strategy

Concentrated Marketing

This strategy is used when company has limited resources and wants high profit from specific segment of market, at that time company makes marke…

Market Segmentation

Market segmentation is a technique in which companies divide their large market into small parts. This small division is very helpful to reach the specific consumer and providing his best product according to his need. There are large number of buyers in the market and market has been made big. So, it is very necessary to segment or divide into small parts according to the needs, wants, location of consumers.

Major basis or Ways or Approaches for segmenting consumer and business market

[ A] Segmenting Consumer Market

1. Geographic Segmentation

If a company divides his business market according to the geographical location, then it will be geographic segmentation. Segmentation is done on the basis of nations, regions, states countries, cities and villages.

2. Demographic Segmentation

In this segmentation, company divide the market into small parts on the basis of age, gender, family size and income.

For example, we can divide market according to age of consumers

We can develop products f…

Analyzing Consumer Market and Buyer Behavior

Q: What is  consumer behavior? What are main factors affecting consumer behavior and what are the stages or steps of buying decision process?

Definition of Consumer Behavior

Consumer behavior is the study of all factors which affect consumer's buying decision. It is the technique to analyze the psychology of consumer. It is very helpful for selling the products to all consumers and satisfy them. In simple words, with the study of consumer behavior, you can know:

a) When will our consumer buy the goods? - To know the correct time

b) Why will he buy the goods?  - Know the need of consumer

c) How will he buy the goods?  - Process of buying

d) Where will he buy the goods? - Place

Factor affecting consumer's behavior

1. Cultural factors

Culture affects consumer behavior very deeply. Following are the main components of cultural factors.

i) Nationality

Consumer buying decision is affected by nationality of consumer. Need of Indian consumer is different from need of USA consumers

ii) Reli…

What is Marketing Research and Strategic Planning in Marketing Management? What are the Steps in Marketing Planning? What are its importance?

Definition of Marketing Research and Strategic Planning

Marketing research and strategic planning is the process of estimation and directions for creating new customers. We all know that today business are facing competition. If we have to win competition, we have to take many decisions about future marketing. All decision are called marketing research and strategic planning.

Steps of marketing planning

Ist Step

To Identify company's Strength and Weakness

It is the first step of marketing planning in which company estimates his strength, opportunities and powers in marketing. It also estimates its weak points. This step can be done with marketing environment scanning. In this marketing scanning data and compare with our competitors. After this our strength and weakness can be estimated.

2nd Step

To Identify Marketing Objectives:

There are many objectives of marketing. It is the second step of marketing that we should identify these objectives. There are main objective of marketing plan…

Data Warehousing

Data warehousing is system in which data is collected in online data base. It is also helpful for providing data for data mining. In data warehouse, you can find data of consumer according to consumer's profile. So, there is no need to further analyze that data. For taking data from data warehousing there is no need to do any large scale activities. Almost all the work is done automatically.

Data Mining

Data mining is automatic analysis of large data stored in data warehouse. Today, different data mining sofware or cloud computing are being used for this purpose. It is useful for online marketing.

Marketing Intelligence

Marketing intelligence is strategy in which company gets the information of competitors activities through his intelligence bureau and use it for his business sales promotion.

For Example :

Suppose there are three companies who are taking the contract for construction of building. The names of company are A, B and C. Suppose, govt. demands bid for construction of government building. C company is very clever and takes help from his intelligence bureau for knowing the bid prices of B and C company. After some investigation, company's intelligence bureau succeeded to know the expected bid prices of B and C company. Now, A company decreases his cost than competitors and win the bid from government department. So, marketing intelligence is very needed for every company.

Components of Marketing Information System or Sources of MIS

1. Internal Marketing or Accounting System

This component or source tells that company should get all marketing relating information through this source. Company makes the accounts of customers and records the sales. After analyzing it through management accounting and cost accounting, company can obtain all useful information relating to past marketing data.

2. Marketing Intelligence

Company can take the help of marketing intelligence for getting information of competitor activities.

3. Marketing Research

For improving the quality of product, company need marketing research information. This information is given by marketing research team.

4. Marketing science

Marketing science means use mathematics and quantitative techniques to solve business and marketing problems.

Marketing Information System

Definition of Marketing Information System ( MIS )

Marketing Information system is to collect, sort, analyze, evaluate the information relating to marketing. After this, information is distributed to marketing decisions makers. Internal company records and marketing research are the main sources of marketing information .

Need and Importance and Advantages of Marketing Information System or System to Handle Marketing Information:

1. For making marketing planning

Marketing information system is very useful for making marketing planning. With MIS, we get useful information for marketing short term and long term plans. Suppose, we are new banking company for providing loans to students. But, if our MIS gives us the correct information about how many companies are already providing this facilities, then we can make good strategic planning according to this.

2. Helpful to marketing control

With MIS, we can control marketing risk and our decision becomes effective.

3. Helpful to convert raw da…

Sales Force Management

What is Sales Force Management? What is its Importance? What are the steps of Process of Sales Force Management in modern Marketing? Tell the Winning Tips of Sales Team?

Definition of Sales Force Management

Sales force management is one work of personnel department. Personnel manager recruits, selects and trains salesmen and sales personnel. Sales force is nothing but the team who are involved in sales related activities. Sales force management means decisions relating to sales team. Right person should be appointed at right place, at right time and he should do right working in sales field of company. In marketing, if sales force will be perfect, relation can be created with others.

Importance of Sales Force Management

It is helpful to make good sales personnel policies.Job analysis of salesmen.Good relation with sales force.Reduction the personal selling cost.Steps of sales force management process

1st Step

Determination the sales force objectives

Before creating sales force management,…

Public Relation

Simple Definition of Public Relation

Public relation is a technique to promote the public to buy the product and protect company's reputation from bad voice of public via media.

Creation of Public Relation Department

Its duty is to reduce negative publicity.

Main Fields of Public Relation

a) Press Relation

b) Product Publicity

c) Corporate Communication

Sales Promotion

Definition of Sales Promotion

Sales promotion is the technique in which salesman gives incentives to consumers for increasing the selling of his products.

Major Steps in Sales Promotion:

1st Step :

Setting of Objective

a) Target market - get consumers
b) switch away the market from competitors
c) Free trial for new users.

2nd Step:

Setting of Sales Promotion Tools :

a) Free Sample

b) Gift Coupons

c) Rebate or discount on sale

d) special facility : Free delivery

e) Contest, games and prizes

f) some quantity free with purchasing large scale.

g) Buy back guarantee

3rd Step

Setting Time Period for promotion

{*} Fix month, week or days of promotion

4th Step

Setting test before large scale sales promotion

{*} Test promotion incentive in small segment of market.

5th Step

Evaluation

Check the effect of promotion on sale

+ point : increase the sales

- point  : decrease the sale

Advertising and its Strategy

Advertising and Strategy which is Used in Advertising

Simple Definition of Advertising

Advertising is a technique in which company promote his sale without existence of any person. Advertisement is contract between advertiser and advertising companies. Advertiser pays money to advertising company. Advertising company uses his resource for showing the ads to public places. It is impersonal presentation of message of advertisers.

Following is the example of Ads

Come at Shop No. 4201  and  Buy garments at 50% discount

Above ads can be shown in banner for or can be distributed in pamphlet form.

Big company has its own department and its name is advertising department. This department manages ads of company.

Strategy which is used in Advertising

1. Setting the advertising objectives

First of all, fix the objectives of advertising. Following are the three objectives of advertising

a) Information : Provide information of new product

b) Position of the Brand : Position the brand in the minds …
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