Podcast
Questions and Answers
What is the main characteristic of the price skimming strategy?
What is the main characteristic of the price skimming strategy?
In dynamic pricing, what primarily affects the price changes in airlines and hotels?
In dynamic pricing, what primarily affects the price changes in airlines and hotels?
What does psychological pricing aim to achieve?
What does psychological pricing aim to achieve?
How does captive product pricing typically work?
How does captive product pricing typically work?
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Which statement correctly explains geographical pricing?
Which statement correctly explains geographical pricing?
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What is the primary impact percentage attributed to cost in the three levels of a product model?
What is the primary impact percentage attributed to cost in the three levels of a product model?
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Which pricing strategy is characterized by lowering prices to attract buyers?
Which pricing strategy is characterized by lowering prices to attract buyers?
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What pricing method focuses on changing prices based on demand and time?
What pricing method focuses on changing prices based on demand and time?
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Which pricing strategy takes into account the emotions of customers rather than just the physical attributes of a product?
Which pricing strategy takes into account the emotions of customers rather than just the physical attributes of a product?
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What is commonly understood by 'captured product pricing'?
What is commonly understood by 'captured product pricing'?
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What defines the product purpose in the actual product level?
What defines the product purpose in the actual product level?
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What is the primary goal of penetration pricing?
What is the primary goal of penetration pricing?
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Which pricing strategy is characterized by setting a high initial price for a unique product?
Which pricing strategy is characterized by setting a high initial price for a unique product?
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Which pricing strategy involves setting initial prices high to maximize profits before lowering them?
Which pricing strategy involves setting initial prices high to maximize profits before lowering them?
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What primarily influences the pricing of a product according to perceived value?
What primarily influences the pricing of a product according to perceived value?
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What is one characteristic of psychological pricing?
What is one characteristic of psychological pricing?
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Which pricing strategy involves selling products at extremely low prices to drive competitors out of the market?
Which pricing strategy involves selling products at extremely low prices to drive competitors out of the market?
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What does dynamic pricing allow companies to do?
What does dynamic pricing allow companies to do?
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What is a key feature of skimming pricing?
What is a key feature of skimming pricing?
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In which scenario would geographical pricing be most appropriately applied?
In which scenario would geographical pricing be most appropriately applied?
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What is meant by captive product pricing?
What is meant by captive product pricing?
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Study Notes
Marketing Compendium
- This compendium is a comprehensive guide for summer/final placement activities.
- It covers commonly assessed conceptual and case-based materials.
- The compendium provides insightful analysis of recent and relevant topics in the realms of marketing and corporate strategy.
- It aims to provide a fresh perspective on business by linking concepts to corporate actions.
- It aims to grow the network of B-School students and aspirants with access to premium marketing content.
- There are over 35+ contributors working in reputed organizations, either currently in top B-schools or alumni.
Fundamental of Marketing
- Marketing is meeting consumer demands profitably.
- It starts by identifying a gap in the market.
- Marketing works to build a product or service to satisfy those needs and wants.
- It covers broad areas ranging from finding the right Target Group (TG) to pricing and communication strategies.
- A successful marketing execution brings prospects to a business (pull strategy).
Selling
- Selling is a process of convincing a prospect on buying a product or service (push strategy).
- This can involve salespeople, shopkeepers, or digital ecommerce websites.
- Well-marketed products are easier to sell than poorly marketed ones.
- In industries with minimal product differentiation, revenues are driven by pushing products to consumers.
Marketing vs Selling
- Marketing focuses on increasing revenue by optimizing processes (long-term).
- Selling focuses on increasing revenue by increasing sales volume (short-term).
- Marketing is customer-centric, while selling is product-centric.
Marketing Mix (4Ps & 7Ps)
- The Marketing Mix is about putting the right product in the right place, at the right time, for the right price.
- 4Ps: Product, Price, Place, Promotion
- 7Ps: Product, Price, Place, Promotion, People, Process, Physical Evidence.
- A product can be tangible or intangible and must be relevant and adaptable to changing consumer needs.
- Pricing strategies include: Premium, Penetration, Predatory, Geographical, Skimming, Psychological, Dynamic, Bundle Pricing.
Place
- Place in the marketing mix is the channels of distribution a company chooses to increase the product's reach.
- Various distribution channels include direct sales, indirect marketing channels, and ecommerce
Promotions
- Promotions create awareness about products to generate leads.
- Promotion strategies are diverse and include advertising (ATL/BTL/TTL).
- Promotions often involve engaging activities to attract consumers.
- Two types of promotions are Sales Promotion and Marketing Promotions
Segmentation, Targeting & Positioning (STP)
- Segmentation: Identifying and profiling distinct groups of buyers with different needs and wants.
- Key criteria for useful market segments include: Measurable, Substantial, Accessible, Differentiable, Actionable.
- Targeting: Identifying segments that fit the firm's objectives and which can be served. Firms can sell one product to several segments or concentrate on serving many needs of a specific customer segment.
- Positioning: Creating a favorable image for a product in the consumer's mind. Optimal Points-of-parity (POPs) and Points-of-difference (PODs) are required.
Points-of-Difference (POD) and Points-of-Parity (POP)
- PODs are unique brand attributes that are strongly held and favorably evaluated by customers.
- POPs are attributes that are not unique to the brand but are shared with other brands in similar categories.
- POPs can be categorized as Category (necessary but not sufficient condition for brand choice), Correlational (possibly negative attributes arising from positive associations), Competitive (designed to overcome competitor weaknesses).
Product Mix
- A product mix is the complete set of all product lines and items that a particular seller offers for sale.
- Measures can include product line length (number of products in a line) and product mix width (number of product lines).
BCG Matrix
- A 2x2 matrix that helps analyze a company's product portfolio (existing or new).
- Categories include: Stars, Question Marks, Cash Cows, Dogs.
Ansoff Matrix
- A tool to help businesses plan and analyze growth by putting their product portfolio into different categories.
- Categories include: Market Penetration, Market Development, Product Development, Diversification.
Pricing Strategies
- Includes various approaches like Premium Pricing, Penetration Pricing, Predatory Pricing, Geographical Pricing, Skimming Pricing, Psychological Pricing, Dynamic Pricing, and Bundle Pricing.
B2C (Business-to-Customer) and B2B (Business-to-Business)
- B2C selling products to individual customers. driven by promotions and panache, short-term relationships.
- B2B selling products to businesses. driven by efficiency and cost-effectiveness, long-term relationships.
Sales & Distribution Management
- Involves all the steps from manufacturing a good to getting it to a customer.
- Departments considered include Warehouse, Logistics, CRM, the Sales force, Business Development team.
E-commerce
- Electronic commerce includes buying and selling goods/services using the Internet, including transfer of money and data.
- E-commerce sales are predicted to grow substantially.
- Models include Consumer-to-Consumer (C2C), Business-to-Business (B2B), Business-to-Customer (B2C), and Consumer-to-Administration (C2A).
SWOT Analysis
- Strengths, Weaknesses, Opportunities, Threats
- Used to identify internal and external factors that can affect a business.
Service Marketing
- Relationship and Value - based customer needs.
- It refers to application of a set of strategies to predict customer needs for an intangible product, and from that meet requirements.
Campaigns, Examples, etc.
- Numerous case studies and examples of various marketing strategies used in different industries.
- Specific examples of companies, like Coca-Cola, Heinz, iPhone, Starbucks, Horlicks, etc., and their varied marketing approaches.
Brand
- Brand: A perception of a product or service held by customers. Usually it's an emotional and psychological bond between the customers and the company.
- Different aspects in building a brand include brand name, logo, theme, graphics, colour, and sound.
Brand Identity Prism
- A hexagonal framework to understand how the aspects of a brand relate to each other.
Rural Marketing
- The process of planning, executing conception, pricing, promotion, and distribution of ideas, goods, and services designed for rural segments to reach individual and organizational objectives.
- Availability, Acceptability, Affordability, and Awareness are key considerations for rural customers.
Cause Marketing
- Businesses donate a portion of their sales to a nonprofit or cause.
Surrogate Marketing
- Using advertising for products that are banned or restricted.
- Includes various methods like brand extension, use of media, and celebrity endorsements.
Meme Marketing
- A marketing effort utilizing trending social media content (viral images, jokes that spread via word-of-mouth).
- Important that memes are relatable and engaging.
Emotional Marketing
- A marketing strategy that uses basic emotions, such as happiness, sadness, or fear to elicit a customer’s response.
- First impressions are significant in terms of success, thus emotional marketing can be effective.
AIDA Model
- Attention, Interest, Desire, Action
- A model describing customer journey to purchase a product or service.
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