CONCEPTS

To succeed in today’s competitive marketplace, companies must be customer-centered. Companies must know how to create value for customers and build a profitable customer relationship. For this, the customer-driven market strategy must be followed. SEGMENTATION: Market Segmentation is the process of dividing a market up into distinct groups of buyers who have different needs, characteristics […]

Brand is the major enduring asset of the company outlasting the company’s specific products and facilities. They represent the consumer’s perceptions and feelings about the product and its performance. Brand Equity is the differential effect that knowing the brand name has on the customer response to the product and its marketing. Companies can create brand

Customer Equity Customer equity is a result of customer relationship management. It is made up of three components. Brand Equity – Brand equity is the customers subjective and intangible assessment of the brand above and beyond its objectively perceived value. In essence, on the name of a brand, a customer might be ready to pay more value

Market segmentation is a marketing concept which divides the complete market setup into smaller subsets comprising of consumers with a similar taste, demand and preference. Following are the steps of Segmentation:- 1 – Define the market The first step in creating market segments is to clearly define the market of interest. For instance, for a

Perceived customer value points out that success of a product is largely based on whether customers believe it can satisfy their needs. Hence delivering this value becomes the motto of marketers. Customer Perceived Value = Total Perceived Benefits – Total Perceived Costs           Example: While buying a car, the expected reactions

The GE/Mckinsey 9 cell matrix, named after General Electronics was first developed by Mckinsey. The objective of this matrix is to assess the industry attractiveness and competitive strength of strategic business units. Factors affecting the industry attractiveness are market growth rate, market size, demand variability, market profitability etc and all these factors are external to

The 7P’s of service marketing mix are – Product: The product in service marketing is intangible in nature unlike physical products like soap, creams, etc. and hence they cannot be measured and owned. For example, the tourism industry is a service. Place: The place is where the service is going to be located. It should

Porter’s Five Forces named after Michael E. Porter, is a simple but powerful tool for understanding the competitiveness of your business environment, and for identifying your strategy’s potential profitability. It helps to identify and analyze five competitive forces that shape every industry and helps to determine an industry’s weaknesses and strengths. These forces are: Competition

Price is the value for a product or a service. Pricing depends on various factors like segment, ability to pay, market conditions, competitor actions, input costs, etc. Basic pricing strategies are – Premium Pricing Unique products are sold with higher price than usual. Product packaging, store decor support premium pricing. Example: Apple iPhone, Porsche Cars,