Marketing Management

Under

Proff. Sameer MathurMarketing Professor IIM Lucknow

The Internship was Dividedinto Four Modules

MODULE

4

Harvard Business Review Article:

Analysis & Apply the insights to

the Indian market.

For Mobile Devices: Think Apps, Not

Ads

A Harvard Business Review Article by Sunil Gupta

Mobile account for 10% of time

spent with Media but

Advertisers spend only 1%

on Mobile Advertising

Smart Marketers will Embrace Mobile as a Communication Platform.

But Why Mobile Ads Don’t Work?

People find mobile ads more intrusive than desktop ads, because mobile is a more

private venue.

People Don’t Like Them

Mobile screens are too small to have

a usable right margin, so ads pop up in unexpected

places.

There’s No Right Side

Advertisers closely track how many users tap on an ad. But many of those taps are inadvertent,

because the ads are tiny—so it’s difficult to judge an ad’s effectiveness

The “Fat Finger” Effect

New Media Require New AdvertisingSo We Need APPS not Ads

Consumers don’t perceive APPs as Advertising—they value them for their Functionality.

Apps can even generate revenue

by increasing the sales

Different Types Of APPs

• Games and entertainment• Social networks (especially Facebook)• Utilities, including maps, clocks, calendars, cameras, and e-mail• Discovery, including apps for Yelp, TripAdvisor, and Flixster• Brands, such as Nike and Red Bull.

So Marketers should produce APPs which

• Add Convenience• Offer Unique Value• Provide Social Value• Offer Incentives• Enterntain

Applying this Concepts in an INDIAN Context

1. Add Convenience

The smartphone apps function more quickly and smoothly, so most customers prefer them. Apps should add

convenience to customer life Every time a consumer uses one of these apps, it increases their exposure to the brand.

Like SBI Freedom and Book my show.

People can now book their tickets from anywhere using this App

SBI Freedom let people track their bank balance, pay bills, recharge phones and much more.

2. Offer Unique Value

Some apps take advantage of mobile capabilities to do things traditional desktop computers can’t. Mobile users

don’t want ads; they want apps that deliver unique benefits. Like

Scandid, Breathfree and Accu chek

Scandid is the first App in India which can scan barcode of the product to give instant price comparison and discount coupons.

Breathefree mobile app provides better treatment to patients by offering some handy tools like-Selecting Inhalation Device,Find out COPD Severity,Know Your PEFR, Respules Compatibility

3. Provide Social Value

Ads are not much Effective on social media sites, because ads interrupt the user experience of

connecting with friends. Activities that enhance connections among People are more effective like

Shadi.com and Social gifting app Printvenue

India's leading online store for printing solutions and personalized gifts provides Branded Pens, engraved card holders, business cards, personalized diaries and planners, key chains , customized apparels for men and women for gifting.

Shadi.com is the World’s largest Matrimonial service gives you access over 20 million matrimonial profiles of potential brides and grooms on your phone!

4. Offer Incentives

Many firms use short-term promotions and other incentives to entice customers to buy their products, in

the same way Brands can also offer incentives to customers for downloading their App

Flipkart offers additional discounts to customers ordering from App.

Goibibo gives 5000 Go Cash on downloading the app which can be used in making payment for Hotel rent, Airlines ticket through App.

5. Enterntian

Smartphone users spend more than 40% of their app time playing games. This represents a huge opportunity for

Marketing & Promotion.Whenever a customer hits “Play,” he’s engaging with the

Brand. Like Bollywood film’s game Apps

Marketers of films like Bhag Milka Bhag, Dhoom 3 have released there gaming App before their

release date to popularize the film

Apps are not only the most effective way to reach mobile consumers, they’re also more cost-efficient than many

traditional Ad campaigns

Marketers should create apps which add value to customers life and enhance long term investment.

MODULE

2

IntroductionTo Marketing: Application of Marketing

Principles

Learning from the Book

Marketing Management: A South Asian Perspective 14th Edition textbook by Philip Kotler, Kevin Lane Keller, Abraham Koshy,

Mithileshwar Jha

What is Marketing?

Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Marketing is not making Needs but developing Wants of Customers. Like Food is a Need but eating in Dominos is a Want.

So, What are the Main Marketing Management Tasks?

1.Developing Marketing Strategies and Plans

Marketer must develop a marketing plan for achieving its goals defining the business mission, analyzing external opportunities analyzing internal strengths and weaknesses, and threats,

2. Identifying Value

Analyzing The Market

Targeting the Right Customers

Marketers must connect with customers—informing, engaging, and maybeeven energizing them in the process.

3. Choosing Value

 Marketers must divide markets into groups of consumers or segments with distinct needs and wants; identify which market segments company can serve effectively.

He must Identify an important market gap andposition its product through appropriate differentiationstrategies to ensure success.

Marketers should look into the Competitors Strategies and know their moves.

Build Brand image, A strong brand commands intenseConsumer loyalty–at its heart is a great product or service.

4.Designing Value

Marketing planning begins with formulating anoffering to meet target customers.

Creative Packaging can popularize the new offering.

Marketers must take into account many factors in making pricing decisions–the Company, the customers, the competition, and the marketing environment.

Marketers should consciously strive tocreate a memorable customer experience.

5. Delivering Value

Companies today must build and manage acontinuously evolving and increasingly complexchannel system and Value network.

And also Managing Retailing,Wholesaling , and Logistics

5. Communicating Value

To effectively reach and influence target markets, holistic marketers have to creatively employ multiple forms of communications

Making best use of mass media in the new–and still changing—communication environment through Creative Advertising.

Personal dialogue between customers, intermediaries, and the company is vital for maintaining a strong relationship and ensuring marketing success.

7. Sustaining Growth and Value

Developing new Product

Expand into the Global Market

MODULE

3

Harvard Business School Case

Analysis

CASE1

GINO SA:

C A S E

Gino Distribution Network in China

Three Distributors Wayip Trading Co., based in the south China city Guangzhou; 100% Gino

burners Fung’s Co., based in the central coastal city Shanghai , 90%revenue from

textile industry Jinghua Mechanical Engineering Company, in the northern city, Beijing;

Largest distributor with 40% revenue of total.

Gino Distribution Network

Table 4: Distributors’ Performance Statistics In numbers of units sold — 1999

Jinghua FUNG’s Wayip TOTAL

Domestic 4,354 3,075 3,458 10,887 Commercial 876 433 568 1,877 Industrial 37 48 52 137 Total 5,267 3,556 4,078 12,901

Current Situation

Current Situation

Gino rely completely on distributors for sales. Gino want to increase its industrial burner market. Weishaupt own sales force and distribution

network. OEM are trying to bypass distributors. Issues with disributor.

Distribution Related Issues

• Distributor Behaviour Demand for Better Terms: Bargaining For more

margin. Stolen Sales: Poaching other Gino Distributor. Reluctance to Stock Industrial Burners: Loss of

sales due to shortage of stock.• No candidates for new or replacing distributors.• No warehouse.

Main Problem

Feima Boiler Co. Ltd is a leading boiler factory in northern China, made over 1,200 sets of boilers.

Last year Feima bought from Jinghua 350 domestic burners, 50 commercial burners and 3 industrial burners.

Jinghua gave an average 25 % discount off the public list price.

Now Feima is approaching Gino for OEM, expectinga 10 per cent greater discount and promising to buy50 % of its commercial and industrial burners and all its domestic burners from Gino.

PROBLEM

lll

• Lower Price• Good Reputation• Reputable Employee

Base

• Over reliance on distributors

• No Warehouse• No workforce for Sales

& Service

• New OEM Buisness• Control over Distributor

Power• Increased Profits

• Loss of Jinghua(40% Revenue)• Loss of Distributor trust• Can’t meet Assigned Goals

Three Choices

1. Develop Feima as OEM

Devlop Fiema as OEM and give 1-2 % extra discount to Jinghau on its dealing so that jhingua do not suffer loss.

• Pros • Cons

• Profit of about 359% more than the earlier dealing with Feima.

• Increased unit sales through Feima. • Brand image and potential end-user

channels built.• New OEM channel developed.• Decreasing distributor power

• Disappointed Jinghua. • Fear in distributor channel may lead

to poaching and exits.• Industrial stocking remains a

challenge.• High marketing investment.• If Jinghua leave 40% loss of revenue• No new distributor available

2. Accept Fiema as Jinghua’s Customer

• Negoitate with Fiema, that it can buy Industrial burner directly from Gino at 10% greater discount and Commercial, domestic burners from jinghua’s at 5% greater discount, if Fiema keeps its promise.

• Give 2% discount to Jinghua on its dealing with Fiema. So that there is no loss to Jinghua.

• Jinghua will be happy as its sales are increasing and total revenue too.

• Fiema will also be pleased as it is getting a greater discount.

• Pros • Cons

• Increase in unit sales.• Relationship with

distributors strengthened.• Industrial burners demand

increased.• New OEM.• Decreasing power of

distributors• Win Win situation for both.• Sales goal are met.

• A little loss in profit• High Investment

3. Reject Feima’s Offer

• Pros • Cons

• Relationships with distributors remain undeterred.

• Increase Trust in Distributor

• OEM account lost.• Guaranteed unit sales

lost.• Distributor power remains.• No profit increased• No sales goal met.

Reccomendations• By weighing the Pro’s & Con’s the second choice is best.• If negotiation fails then choice third should be chosen, since Gino

cannot afford to loose its distribution network• A warehouse should be built so that stocking problem is solved.• For services, Charge 5% extra from customers, so that distributors

are motivated for giving better service.• Improve the brand image by advertising, organizing various events

etc.

CASE2

The Springfield Nor’easters:Maximizing

revenue at MinorLeague

A class-A minor league baseball team has startedup in Springfield, MA, a year and a half advance ofthe first game

Game dates have already been determined, but pricing has not been finalized.A survey has been done with the expectation of getting insights to help in pricing ‘season’ and ‘single’ game ticketsAncillary issues of concession sales also need evaluation

• A class-A minor league baseball team has started up in Springfield, MA, a year and a half advance of the first game

• Game dates have already been determined, but pricing has not been finalized.

• A survey has been done with the expectation of getting insights to help in pricing ‘season’ and ‘single’ game tickets

• Ancillary issues of concession sales also need evaluation

The main problem was Pricing of Stadium Seats

How We did that• Determined the optimal pricing

strategy from willingness-to-pay.

What WE Learned• Understand the relationship

between pricing and its impact on the sales of auxiliary products.• To use quantitative analysis methods to

develop "scaled" pricing strategy for a perishable service that reflects constant costs per production unit (in this case, stadium seats)

What WE Learned• Illustrate the implementation, and

interpretation of• research surveys• o Evaluate primary research

studies,• o Setting research objectives,• o Questionnaire design,• o Data analysis and interpretation

What is Break even• Break even point for a Firm is the level of output

sufficient for revenue to cover all Costs.

CASE3

Mountain Man Brewing Company:Bringing the Brand to Light

Bavarian hops and unusual strains of barley, resulting in a flavorful, bitter-tasting strong beer which the Prangel family launched as Mountain Man Lager.

It was packaged in a brown bottle, with its original 1925 design of a crew of coal miners printed on the front.

It created an aura of authenticity and to position the beer with its core drinkers—bluecollar, middle-to-lower income men over age 45.

Present Situation

Younger beer drinkers were well aware of the brand, yet perceived the beer as “strong” and a “working man’s” beer largely consumed by the “swing” and baby boomer generations, resulting in smaller market in young generation

“Light” beer category which had been steadilygaining in market share and accounted for 50.4% of

volume sales in 2005. Decreasing market of Strong beer

Situation in MMBC

•Chris Prangel, MBA graduate, had returned home to manage the marketing operations of the Mountain Man Beer Company (MMBC),

•Mountain Man’s 2005 revenues were down 2% relative to the prior fiscal year.

•Chris wanted to launch Mountain Man Light, a “light beer” formulation of Mountain Man Lager,

Pros

•First, light beer was a newer, fast-growing product category and the only beer category demonstrating consistent growth.• Light beer would help MMBC gain share in on premise locations restaurants and bars. •Light beers appealed to younger drinkers overall, and to women, both groups that frequented these locations.•Mountain Man Light’s popularity could boost the sales of Mountain Man Lager

Cons

•Mountain Man Light could alienate the core customer base and erode and dilute the Mountain Man brand equity•It can hurt the sales of larger by 5%•Mountain Man Light would just replace facings earned for Mountain Man Lager•High SG&A Cost•Less margin on light beer.

Calculating

•Light beer product share increasing at 4% annually.•Mountain Man steadily growing its share of the regional light beer market by a quarter of a percent each year off of a 2006 base market share of 0.25%•Assuming that Mountain Man Lager lost its share by 2% if light beer is not launched and 5% loss if launched.•Total SG&A Cost =$1,650,000

Recommendation

Chris should go ahead with decision of launching Mountian Man Light as it

will Break Even in two years of its launch and will bring profits after

that.

MODULE

1

Improve your Presentation

Skills

How to Create a Great

Presentation?

Learning From the Presentations Giants

AND

Garr Reynolds

Mistakes We Generally Do…

Using Crap QualityPictures

Not Enough Visuals

Visual Vomit

What We Should Do...

Take a Pen & Pad to Create rough kind of Storyboard

Have a Sound and Clear Structure

Use A COLOR Scheme

Use Good Fonts

Like

Use Stunning Images

Use Audio or Video

Be a Storyteller. The managers of the Future will be “StoryTellers”

How to Present it…

Don’t bore your Audience but Gore Them

Be A Powerful Speaker

Sir, For your Valuable Guidance and

making this Internship such aWonderful Learning Experience.

Created by ROHAN GUPTA, IIT (BHU) Varanasi,

during an internship by

Prof. SAMEER MATHUR,

IIM Lucknowwww.iiminternship.com