MARKETING OF PREMIUM PRODUCTS

BUSINESS What is business? Need for doing business What business are we in?

MARKETING Identifying Product & Service Identifying Market/Customer Communication Sales Technique Development (Customer Satisfaction) process creating, communicating & delivering value to customers to benefit organization & its stakeholders

M A R K E T I N G Marketing is a Social and Managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.

MARKETING IN PRACTICE Marketing has become a key factor in the management of any business. Increasingly stiff competition, both locally & globally. To understand the customers well, deliver the greatest value to their target customers Marketing is not selling but marketing begins long before – in understanding the needs of the customers and satisfying their needs

WHAT’S MARKETING? Basics of marketing can be summarized in understanding and acting upon the following four simple questions? –What business are we in? –Who are our customers? –What are their needs? –What must we do to satisfy and delight the customers competitively and profitably?

What business are we in? Department of Posts is a Service industry. Four characteristics of service are: –IntangibilityInseparability –VariabilityPerishability. Marketing strategies for service firms. –Service - profit chain- links service firm profits with employee and customer satisfaction. –Internal marketing-train and motivate the employees to work as a team to provide customer satisfaction. –Interactive marketing-quality of service depends on the quality of buyer –seller interaction.

Challenges & customer needs Deteriorating financial position Postal tariff fixed taking the social and welfare issues into consideration. Multiple services under three categories –Communication, transportation and other services Changing market dimensions competition from the courier services and service companies. Growing demand for quality service

FINANCIAL MANAGEMENT Revenue & Expenditure in Total revenue receipts Rs Cr Total Expenditure Rs Cr. DeficitRs Cr. Revenue increase over pre.year 7% Increase in expdre over pre. Year 36.5% Percentage of cost of operations 64%

WHAT’S MARKETING ALL ABOUT ? Marketing is effectively aligning an organization to its markets Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably Marketing is the art of creating and satisfying customers better than the competitors at a profit Marketing is getting the right goods and services to the right people at the right places at the right time with the right communications and promotion Marketing in its true sense is simple: “MANAGING THE BUSINESS’

WHAT’S MARKETING ALL ABOUT? MARKETING IS NOT SELLING.. PROMOTION… ADVERTISING …

MARKETING VS SELLING  Marketing plays a critical role in running the company & building the business  It defines the way a company does business and it provides a total approach.  Marketing is neither selling nor promotion  The difference in marketing & selling is more than semantic  Selling focuses on the needs of the seller and marketing on the needs of the buyer.  Selling is pre-occupied with the seller’s need to convert his product into cash  Marketing one is concerned with the idea of satisfying the needs of the customer  In marketing the focus is on customer and ‘customer first’ is the essence of marketing

NEW THINKING ON MARKETING Orientation Product Orientation  Customer Orientation Focus Product  Customer Approach Creating Demand  Providing Solutions Strategy Product Customers’ price & promotion place  Hearts & Minds Measure of performance Product Volume  Customer Delight Revenue  Market share Profit Returns  Financial

Marketing – Right Notions Marketing is the customer’s voice inside the organization. Market oriented firms keep adopting and changing to keep in tune with the market place. ********************* Marketing is a way of doing business: It s an expression of company’s character Marketing is all pervasive: –Marketing is everybody’s job. –Marketing is too important to leave to marketing department. –Marketing is building relationship with customers: –Without customers, no business can exist. Marketing builds relationship with customers by consistently satisfying and exceeding the expectations of the customers.

MARKETING MIX A HARMONIOUS BLEND OF Price Place Product Promotion Physical Evidence People Process

Vision “India Post will be a socially committed, technology driven, entrepreneurially managed, self supporting institution” India Post

Mission The mission of India Post is to provide high quality mail, parcel and related services in India and throughout the world; to be recognized as an efficient and excellent organization exceeding the expectations of the customers, employees and the society; to perform the task by: Total dedication to understanding and fulfilling customer needs Total devotion to providing efficient and reliable services, which the customers consider to be value for money. Total recognition of the responsibilities as a part of the social, industrial and commercial life of the country. Total enthusiasm to be forward looking and innovative in all areas.

Fact File 1.55 lakh post offices-About 90% in rural areas Over 634 crore mail articles, 19 crore registered articles, 21 crore speed post and 7 crore parcels handled per annum. To provide greater impetus to business related mail and parcel activities BD Directorate set up in 1996 Reorganized into BD & Marketing Directorate in to provide a sharper focus on marketing.

Transformation Network expansion and consolidation to provide last mile mail communication service in urban, rural and hilly areas. Consistently designing, developing and implementing various business initiatives to cater to the mailing requirements of business community. Computerization and networking of postal operations for quick efficient and customer friendly service and better management of the back office operations. Upgrading the knowledge and skill of the human capital through continuous training Regular monitoring of the processes and performance indicators to achieve the desired customer service level for customer satisfaction

Products & Services Mail services : –Ordinary mail services, Registered or accountable mail Premium Services –Speed Post, Business Post, Bill Mail Post, Express Parcel Post, Media Post, Logistics Post, Direct Post, Retail Post. Financial Services –Banking, Money remittance like Money order, iMO, MO Videsh Insurance Services –Postal Life insurance, Rural PLI E-enabled Services –Epayment, epost

PREMIUM SERVICES Speed Post -Leading brand in Express market Wide Network Coverage-315 National Speed Post centers in the country. International speed post to 97 countries. –25 National SPCs & 9 State SPCs in Karnataka. One India one rate of Rs.25/- to any destination within the country for weight up to 50 grams. Tariff for local article –Rs.12/- for weight up to 50 gms. International EMS at a very reasonable tariff. Value additions and facilities. –Free on call pick up, Credit facility, Volume discount on fulfillment of the conditions. –Proof of delivery,Insurance,Track and Trace. Quality Service Initiatives. –PIN code in the address mandatory –Contact Phone number of the addressee/ sender –Soft copy of address data mandatory

Business Post Customized one stop solution for business mail. Prepayment of Postage is required. No credit facility. All pr ing activities from start to finish Services offered at nominal charges: –Collection of mail from premises –Preparation of mail like enveloping/ inserting –Gumming pasting and addressing –Franking, sorting and dispatch

Bill Mail and National Bill Service : Communications in the nature of financial statements, bills, monthly account bills or other items of similar nature posted by a service provider once in 90 days. Minimum quantity at a time 5000 articles for Bill Mail and articles for National Bill Mail. Bill Mail articles delivered within a circumscribed area like one city/ district. Competitive tariff of Rs.3/- for weight up to 50 gms and every additional 50 gms or part thereof Rs.2/- Should be fully sorted pin code wise and bundled delivery Post office-wise. National Bill Mail Service will be delivered any where in India. For dispatch of NBMS packages to destination post offices, postage for Speed post or EPP or Registered parcels depending upon the choice of customer.

Express Parcel Post –Reliable, fast and guaranteed delivery of parcels –Weight limit up to 35 kgs. –Distance based competitive tariff –EPP-Business for regular contract customers. Value added services –Credit facility for business customers –Volume based discount –Free pick up from customers premises for business customers –EPP-Deposit for occasional customers –Deposit account to be opened –Minimum deposit amount Rs.1000/- –Postage for parcels booked deducted from deposit amount –Further deposit amount taken when the balance reduces –EPP -Cash for retail customers –Retail customers can avail on payment of postage amount.

Parcel & Transport Services Logistics Post –Complete supply chain solution for transportation and distribution of large volume of parcels –Tariff based on weight, volume and distance and docket charge of Rs.100/- –Minimum chargeable weight 50 Kgs. –Consignments addressed to same consignor treated as one consignment. –Insurance facility –Doorstep pick up/ delivery –Warehousing, order fulfillment –Track and Trace –Flexible service- FTL/ HTL

ePost ePost bridges the digital divide Messages handwritten or printed in any language Scanned and transmitted as Message printed at the destination, enveloped and delivered Tariff Rs.10/- per A4 size page, per addressee. Customized solution for corporate and business houses. Message to multiple addresses from the sender’s premises Some of the Business Uses of epost are: –Sending periodic bills and statements to customers –Internal communication with offices spread out geographically –Collecting internal control statements –Volume discount for sending same message to 50 or more addressee, Rs.6/- per A4 size page, per addressee.

Direct Post Unaddressed mail for product promotion Letters, cards, pamphlets, samples or any other form of written communication can be sent. Size not to exceed the length & width of A.3 size paper. Select location, Target group and focused delivery. Minimum quantity 1000 pieces Separate processing and delivery through staff with local knowledge. Tariff per article upto 20 grams –Local – Rs.1.50 –Intercity- Rs.2.00 –Every additional 20 grams or part thereof Re.1

E-payment E-payment is a “Many to One” service for collection of payments of bills, subscription, premium etc. Post Office collects the amount across the counter, issues receipt to the customer and accounts for the transaction. Payments collected are consolidated electronically and MIS provided. Single payment of the collections made to biller/ service provider at one point. Service provider can download the collection details in the format required 816 e-enabled post offices in the State.

Retail Services Flat Rate Boxes –For sending parcels both domestic and international, in a safe & secure mode, postage prepaid fabricated parcel boxes with customs declaration form is made available in identified post offices.(CN.22/CN.23) CP.72 1 kg- Rs.1000/- 2.5 kg. Rs.1500/- 5 Kg. Rs.2500/- 1 kg- Rs. 125/- 2.5 kg. Rs. 200/- 5 Kg. Rs.400/- Other activities –Sale of application forms of UPSC, SSC, recruitment etc –Sale of speed post envelopes,

Customer Service Centre Computerised Customer Care Centres Dedicated customer relations management (CRM) services Toll Free Telephone Number. for on call postal information service. Mail pick up from your premise or postal service related queries or information

Steps in Marketing Prepare the data base of prospect customers. Collection/ study of the details about the Organization/ business Pre-call appointment Appearance Brief Introduction about your organization Listen to the prospect customer Understand the mailing requirement Formulate proposals and forward it Follow it up by telephone calls/ visit Close the deal

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