E3-E4 MANAGEMENT MARKETING OF NEW PRODUCTS
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1 E3-E4 MANAGEMENT MARKETING OF NEW PRODUCTS
2 AGENDA Marketing Fundamentals & Strategy Strategies for marketing new product BSNL 3G case study
3 WHAT IS MARKETING? Analyzing the needs of the people? Trying to guess what types of products they want? Estimate how much they will buy? Predict when they will want to buy? Determine where they go to buy the stuff?
4 WHAT IS MARKETING? Advertising? Promotions? Making products available in stores? Maintaining inventories? Selling?
5 MARKETING. The sum of all activities that take you to a sales outlet. After that sales takes over. The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals.
6 MARKETING MANAGEMENT The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value..
7 SERVICE MARKETING Service Marketing has 7 Ps like 7 Notes of Music. 4 Ps of Product Marketing are Product, Price, Promotion & Place. Additional three Ps are required for service marketing i.e. People, Process & Physical Evidence. 7 Ps are also called Marketing Mix.
8 MKTG MIX FOR SERVICES Place, (Custo mer Conve nience) Product (Customer Solution) customers Promotion (Communication) Price (Custo mer Cost) Physical Evidence ( Success depends upon its Creation) Ps for Product Marketing + Ps for Service Marketing
9 STRATEGIC MKTG Strategic marketing management is concerned with how we will create value for the customer Asks two main questions What is the organization s main activity at a particular time? Customer Value What are its primary goals and how will these be achieved? how will this value be delivered
10 PRODUCT LIFE CYCLE
11 MARKETING ENVIROMENT & COMPETITOR ANALYSIS SWOT ( Strength, weakness, Opportunity and Threats) Analysis PEST (Political, Economic, Social and Technological ) Analysis Five forces analysis
12 PORTER S FIVE FORCES
13 STRATEGY FORMULATION Environmental Analysis PEST &Porter s Five Force Analysis Opportunities & Threats Identify opportunity Technology Know-How Manufacturing Know-How Marketing Know-How Distribution Know-How Logistics Strength & Weaknesses Identity Core Competencies Fit internal Competencies with external opportunities Firm Strategies
14 MARKETING PROCESS Business Mission Statement Objectives Situation or SWOT Analysis Marketing Strategy Target Market Strategy Product Marketing Mix Place/Distribution Promotion Price People Process Physical Evidence Implementation Evaluation, Control
15 STEPS INVOLVE IN LAUNCHING NEW PRODUCTS New product strategy Idea generation Idea screening Concept development and testing Marketing strategy Business Analysis
16 STEPS INVOLVE IN LAUNCHING NEW PRODUCTS Product development Test Marketing Commercialization
17 STRATEGY FOR BRINGING NEW PRODUCT SERVICE Study your competition Target the idea customer Create a unique value proposition tactics Test your concept and marketing approach Roll out campaign Know the product lifecycle
18 FIRST-MOVER ADVANTAGE (FMA) FMA, gained by the initial occupant referred to first significant company First entrant can gain control of recourses that followers may not match Sometimes, first mover fails and advantage to second mover
19 MECHANISM LEADING TO FIRST MORE ADVANTAGE Switching costs and buyer choice under uncertainty- Switching cost on late entrants, Extra resources for customer attraction and risk about customer choice
20 FIRST-MOVER DISADVANTAGE Free- rider effects- Late entrants study the strategy of first mover but not available to the first mover Resolution of technological and market uncertainty-first mover deals with entire risk related with creating a new market. Late mover does not sustain risk
21 FIRST-MOVER DISADVANTAGE Shift in technology or customer needs-late entrants assess the market actual needs Incumbent inertia Success may cause first mover complacent Vulnerability of the first mover enhanced by incumbent inertia
22 BSNL NEW CASE: 3G SERVICE BACKGROUND MTNL&BSNL were provided 3G spectrum and license fees will be as per bidding process. 3G equipment were covered in tender, floated in year But, P.O. could be issued in year 2008.
23 3 G V/S 2 G The main difference is a speed 2G use different switching techniques for voice and data, where 3G uses single switching for any kind of data. Different access technique Different data rate Different freq. bands Different services
24 LAUNCH OF 3 G The service was launched in Feb 2009 at Chennai by Tamilnadu CM, (M.Karunanidhi) BSNL 3G Service which include 3.6 Mbps broadband, Video call and Mobile TV has been made available in 100 select cities of North and Eastern part.
25 3 G COVERAGE NATIONAL SCENARIO BSNL has planned to cover 751 cities for 3G in phase V.1. BSNL plans to cover all the DHQs and other commercial important towns in phase V.1 order. The 3G network is designed based.
26 3 G EXPERIENCE CENTERS BSNL came up with a concept of enabling the customers to have a feel of 3G by setting up of 3G experience centers across the country. An Advertising agency was assigned the task of setting up such centers.
27 CONTENT TIE UPS It was must to have heavy application which are of customer interest. BSNL Lunched video clip services: Video on demand service. The price of individual video is based on its type and range ( from Rs 5/- to Rs 20/-) The cost price per song is Rs 15/- Game: Customers can play the same games on their mobile phone as they are play on their computers.
28
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