Process of Marketing Sensing

Process of Marketing Sensing

The market sensing basically is effectively utilization of information gathered because information itself is nothing . The important think is the effective use of information. The use of information to make intelligent decision is known as marketing sensing.

1. Gather all relevant information about business environment
2. Analyses those information from every aspects.
3. Make a possible situation categorized them
   • Most desirable but challenging
   • Desirable and achievable
   • Not desirable but may occur
   • Not desirable and  may not occur
4. Planning for all above outcomes
   

Process of developing new Product

Process of developing new Product

The following are the process of developing new Product

1. Generate new ideas about new product
2. Analyses possibility of those ideas
3. Analyses about expected performance of product in market
4. Start product development
5. Perform market test of the product
6. Finally launch the product in whole market

Direct Selling

What is  Direct Selling

The direct selling means that there is no third party is involved . the product is directly delivered to the end user by the entity.

Reasons for Direct Selling

Maximize Profit

The one of the advantage is entity don't want to share its profit with third party. The normally third party involvement mean the sharing of profit from 5% to 10%. 

Customer Loyalty

The company is interested to transfer maximum benefit to the customer instead of transfer some benefit to third party. This approach will not only improve the brand image but also the customer loyalty.

Customer Satisfactions

The company is interested to achieve the maximum customer satisfactions. This very difficult to approach customer satisfactions through third party. The customer satisfaction play an important role in customer retention and attracting new customer.

Methods of Direct Selling

1. Direct order is place through post
2. Direct order is place through phone
3. Direct selling by door to door campaign
4. Direct selling by purchasing TV time
5. Direct selling by internet

Important factors for Setting Price

Important factors for Setting Price

The following are important factor for setting price

1.Demand for product

Normally high demand for a product attract high price but this concept is not taken in isolation there must be limited supply of product. similarly if there is more supply then demand then prices will decrease. This change in price is called price determination by market force.

2.Profitable Objective

The other important factor is the profit objective of the organization. if an organization is interested in making high profit in short run then they may add high profit to the product cost .The profit objective vary from company to company and situation to situation.

3.Cost of Product

The cost of product is off course is important factor. The organization want to make at least some percentage of profit . The cost play important role to determine the selling price after taking into account desired profit level. This is the reason that in inflationary economies the price are changing regular as the cost of product increasing and to compensate that company have to increase the price.

4. Availability of substitute product

if the substituent product is available then producer will not go for unreasonable increase in price because of fear of switching of customer to substitute product. The important example is that if there is a sharp increase in the prices of diesel cars the buyer may start buying petrol run cars.

5. Nature of the Market

The nature of the market is also important determinant of price for example in monopoly situation where there is not competition . The producer can charge any price to the customer without any fear because there is no other option available to customer except to buy  your product.

6. Product features or Quality

The product feature will also determine the prices . for example a a mobile phone with high resolution camera will cost you more. in simple words the premium good are sold at higher prices. The product will simple feature will have lower price and product with more features will have higher prices.

Some market is ready to pay high prices for improved quality. the quality can be real and perceived. The real quality mean that a product is using better material and giving high performance or give more comfort to buyer. The perceived quality is however charging price for brand name otherwise the same quality product are available at lower price.

7.National Economy and prices

if the economy is growing there is tendency of high prices because the demand for the product is high in the growing economy and high demand attract high prices. in case of recession economy the prices are low due to low demand.

8.Customer Income and prices

The customer income also play role in price determination of product, in case of high income areas the prices are at high side and in case of low income of customer the prices are set on lower side.

9.Prices offer by the competitor

You have to live in the business world and you have to maintain a market share. so you can not leave the market for your competitor . The competitor prices play important role to determine the price of your product. for example a competitor is offering $ 10 and you are offering $15 for a same kind of product then there is a fair chance that you will loss the market share.

10.Product life cycle

The product have different stages and each stage have different pricing strategy. for example some companies want to maximize the profit in the initial stage of product launch . Therefore they charge highest price in the initial stage.

11.Price marker and Price Taker

There are two kind of companies in the market one which dominant the market termed as price maker . The price of the product is defined by the price maker and other follow the price set by the price market. The competitor or stakeholder who follows the price is known as price taker.

12.Product life cycle and pricing

a.Introduction 

The most company go for high prices at the introduction stage as there is no competition in the market and the company want to maximize the profit .


b.Growth Stage 

 In this stage new competitor are entering the market and the objective is to maintain or maximize the market share therefore prices have downward tendency. however if there is no threatening competition in the market and the company is market leader then the prices will be on high side.

c.Maturity Stage 

in this stage the demand is not growing therefor to maintain the share in the market the company will normally reduce the prices.

d.Decline 

 Demand is declining and it is difficult to maintain the desired profit level therefore there is tendency of lower prices to raise demand. There may be short term increase in prices because many competitor is leaving the market due to low demand.

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Important Factors in Packaging

Important Factors in Packaging

The following are important factors in packaging

1. Protection of items therein
2. Facilitate convenient carriage of items
3. Protection from environmental effects
4. should give Eye catching look to customer
5. Customer convenience to carry the product
6. in compliance with regulator instruction
7. Convey brand image
8. Conveniently display in shop

Types of Sales promotions

Types of Sales promotions

 Sales promotion activities can be classified as under

1. Consumer Promotions Activities
2. Retailer promotion Activities
3. Sales Force Promotion Activities
4. Industrial Promotion Activities

1. Consumer Promotion Activates 

1. Free Sample offered to public
2. Free shopping coupon offered to public
3. Price reduction to boost sales
4. Free gift hamper for Children
5. Attractive offer ( buy one get one free)
6. Practical demonstration to general public
7. Competition on public places and gift for winner

2.Retailer Promotion Activities

1. Business trip for target achievement
2. Credit facility enhancement

3.Sales Promotion activities for Sales Force

1. Performance bonuses
2. Business Tripe for target achievement
3. Promotions

Positioning

What is Positioning

Positioning in marketing means comparison of your product in relation of other product in prospect of a market. in simple word positioning tells your your place in the market. The positioning may be expressed diagrammatically. 

 Types of positioning

1. Positioning with respect of product features
2. Positioning with respect of product price
3. Positioning with respect of market share
4. positioning with respect of market coverage
5. Positioning with respect of gender
6. Positioning with respect of age classification

New Product

Types of new Product

There are basically three types of new product

1. Product introduced to replace existing product in the market
2. The product is totally new entry in the market
3. The product is come to support existing product

Situation where old product serve as new product

1. Existing Product introduced to a new Market
2. Packaging was changed
3. Brand name was changed

Sources of development of new product

1. Get a license for production from international firm
2. Buy a production unit
3. Develop a new product internally
4. Enter into franchise arrangement
5. Agreement with research institute for research and development of product.

1.Take a License for new product: -

This is normally an international arrangement where a local producer takes a license from the international producer to produce the product in his name. The product launch under this arraignment is a total new entry as normally international producer grant licence to one party.The arrangement is normally knows as patent rights. Under this arrangement where the produce receives the reality for the production made by the local producer. This arrangement is beneficial for both license grantor and license acquirer as the license provider earn more profit without investment and license acquirer has a brand name which is very easy to market. 

2.Production unit acquisition

This is another type of product entry some companies believe that it would be difficult to take market share from the existing producer. Therefore they offer a huge price to buy the already production unit. This acquisition is part of long term planning because existing producer charge heavy price for the goodwill. In some cases it is cheaper option as compared to establish new unit when the existing unit is suffering losses due to poor management or inefficient processes.

3.Internal Development of new product

The other option is to start process of developing a new product internally. The great disadvantage of this methodology is this involves a high research and development cost. The second disadvantages are that company is not aware of the possible response of the market. If the product fails in the market then it will not only result in huge loses but also damage the image of the company. This is the reason that company are rarely go for the total new product line instead they try to add features in existing product.

4.Franchise arrangement

This is a bit different from license arrangement .under this arrangement you are selling the product of the licencor and charging fee for your investment. This kind of arrangement is very popular in services industry like telecom services etc.

5.Research and development institute

under this arrangement you hire a professional research body to develop a new product. The company gives the basic idea about the product and target market and research institute develop a suitable product.

Types of Marketing Research

Types of Marketing Research

The market research is basically collecting information about different aspect of the market and processing those information for decision making needs of management. The Market research can be divided into five sub categories. The research may be performed on primary data or secondary data.

1. Product Research .
2. Market Research.
3. Price Research
4. Distribution Research
5. Promotion Research

Market Segmentation

Types of market Segmentation

Market segmentation is basically division of market into different group. The groups are different from each other but the member within the group have same characteristic. The technical word for group with same characteristic is homogeneous group.

1. Age based Market Segmentation
2. Gender based Market Segmentation
3. Religion based market Segmentation
4. Social Status based Market Segmentation
5. Income based Market Segmentation
6. Region based Market Segmentation
7. Ethnic based Market Segmentation
8. Education based Market Segmentation

The following are important types of Market segmentation:

Advantages of Market Segmentation

1.Better Understanding :- 

The market segmentation is really helpful to understand the market dynamics.

2.Trend of Market :-  

The market segmentation also helpful to understand the trend of a particular market. for example one product is performing well in one market and other product is performing well in another segment provide information for the decision making.

3.Monitor Performance :- 

Market segmentation is also helpful to monitor the performance of the sales team specially if market segmentation is done on the bases of area or Supervisor. The effective monitoring of performance will result in improved efficiency of the sales team.

4.Improve Customer Relationship:- 

The market segmentation provide you to interact more with  your customer and have better understanding of your customer. The understanding of your customer would result in more information about customer expectation and this will help the management to satisfy customer need.

5.Setting Price :- 

The market segmentation especially with respect to product is provide detail information about the revenue contribution of product towards overall revenue and management can make effective decision about the prices of products.

Limitation of Market Segmentation

1.Difficult to define segment 

Sometime it really to define a segment especially in case service industry or organization offering single product or few products. for example if different region are used as segment then this segment is not suitable for compare the performance of different region as the different regions will have different level of population and different culture and different education level.

2.Segments are interlinked :- 

The one other limitation is that market segmentation the segment is taken in isolation where in practical market segment are really depends on many factor which are itself can be used as segment.

3.Too many product :-

 if organization has too many brands and range of product then to define the segment for a large number of market is not possible. even the mangment define the segment for large number of product it will not provide a helffull information. the decision making process will be more complex in such cases.

Advantages of Market Segmentation

1. Better knowledge and better understanding of the market
2. Hiring of specialist and more knowledge staff for a particular segment.
3. Exercise more control over performance of individuals
4. Setting accurate target and follow thereof
5. Help in setting more accurate budgeting of expenditure
6. More satisfied customer with improved service level
7. Development of product as per the requirement of customer.

Pull Technique

Pull Technique

The pull technique use the high advertising budget to attract customer and advantage is transferred to customer. 

Advantages of Pull Technique

The following are important advantages of pull technique.

1. Improve the image of brand
2. Direct relationship is built between customer and entity
3. Win customer loyalty

Disadvantages of Pull Techniques

The following are main disadvantages of pull techniques

1. This technique has very high budget of advertising
2. No support of distributor is available for marketing activities

Distribution Channels

Advantages of Distribution Channels

The following are the important benefits of using distribution channels

1. Transportation facility :- 

The distributor can offer extensive support of transportation facility.

2. Storage Facility :- 

The individual distribution can offer a lot of storage facility and off course the storage facility cost will be born by distributors.

3.Local Market Knowledge :-

 The distributor have more extensive knowledge of local market.

4.Display Function :- 

The more labor is available with distributor and the same can be utilized the display the product at every selling price.

Push Technique

Advantages of Push Technique

The push technique for promotion use the distribution network. the push technique provide incentive to distributor for promotion. the following are the important advantages of using the push technique for promotion.

1. Availability on stores shelf is ensured
2. The sales volume may be increased in short time
3. There is no need of advertising budget
4. The health relationship with distributor support many marketing functions

Disadvantages of Push Techniques

1. No customer loyalty is established
2. Profit are shared with distributor
3. Only short term boost of sales is possible
4. The dependence on distributor

Direct Selling

Advantages of Direct Selling

1.No Channel Available

 if no distributor is not available or not willing to buy distribution. Then direct selling is the only option available for the entity.

2.Entity Maximize the profit

 if entity want to maximize the profit and don't want to share its profit with the distributor.

3.Effective in Concentrated Market 

The direct selling is a very good option in highly concentrated market.