1. MGT601 SME MANAGEMENT

2. Role of Marketing in SME – II
Lesson 33
Role of Marketing in SME – II

3. Chapter Learning Objectives
This lecture deals with:
Marketing Decision Variables
Marketing Controllable Variable
Marketing Uncontrollable
Decision about Product
Product Life Cycle
Marketing Mix

4. Marketing Decision Variables
Marketing Controllable Variable
Marketing Uncontrollable Variable

5. 1. Marketing Controllable Variables
a. Target Market Segment
Location
Target customers
Timing

6. Marketing Controllable Variables…..
b) Products offered
Type of product
Range of product
Design features
Quality

7. Marketing Controllable Variables…..
c) Price
Price level
Price variables (discount)
Maintenance

8. Marketing Controllable Variable…..
d) Advertisement & Promotion
Advertising level
Advertising media
Sales promotion

9. Marketing Controllable Variables…..
e) Distribution
Channels
Number of sales outlets
Warehousing facility

10. 2. Marketing Uncontrollable Variables
a. Resource Availability.
Availability of required materials
Cost and quality of required material
Material

11. Marketing Uncontrollable Variables….
b) Competition – Direct & Indirect.
c) Economic Conditions –
total market size,
economic trends,
income situation.

12. Marketing Uncontrollable Variables….
d) Socio- Cultural Conditions
societal values,
life style,
fashion consciousness.
e) Political & Legal Conditions.
Political risk situation
Legal regulation

13. Marketing Uncontrollable Variables….
f) Technological Situation
state of technology,
rate of technological change.

14. Product
In economics and commerce, products belong to a broader category of goods. The economic meaning of product was first used by political economist Adam Smith.
In marketing, a product is anything that can be offered to a market that might satisfy a want or need.
In retailing, products are called merchandise.
In manufacturing, products are purchased as raw materials and sold as finished goods.

15. Decision about Product
Product decisions have quite important because the length of time for which a Product remains profitable has considerably shortened. Frequent technological innovation and entry of new products have contributed to the shortening of life of a product. Such factors pose a problem beyond the financial capabilities of a Firm.

16. Decision about Product
The product features amenable to manipulation by a small firm are;
a) Performance and functional features i.e. firm’s ability to perform, durability, reliability and precision.
b) Use characteristics i.e. ease in handling and serviceability.
c) Aesthetic qualities e.g. style, design, color etc.
d) Extrinsic features e.g. uniqueness of product, status value etc.

17. Product Life Cycle
PLC like human beings, products also have an arc. From birth to death, human beings pass through various stages e.g. birth, growth, maturity, decline and death.
A similar life-cycle is seen in the case of products. The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. PLC has to do with the life of a product in the market with respect to business/commercial costs and sales measures.

18. Product Life Cycle
Product Life Cycle is equally helpful in deciding about appropriate marketing strategy to be adopted. The five main stages of a product's life cycle.
Product Development Stage
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage

19. Introduction Stage costs are very high slow sales volumes to start
little or no competition
demand has to be created
customers have to be prompted to try the product
makes no money at this stage

20. Growth Stage costs reduced due to economies of scale
sales volume increases significantly
profitability begins to rise
public awareness increases
competition begins to increase with a few new players in establishing market
increased competition leads to price decreases

21. Maturity Stage
costs are lowered as a result of production volumes increasing and experience curve effects
sales volume peaks and market saturation is reached
increase in competitors entering the market
prices tend to drop due to the proliferation of competing products
brand differentiation and feature diversification is emphasized to maintain or increase market share
Industrial profits go down

22. Decline Stage costs become counter-optimal sales volume decline
prices, profitability diminish
profit becomes more a challenge of production/distribution efficiency than increased sales

23. Marketing Mix
The marketing mix is a business tool used in marketing products. The marketing mix is often synonymous with the 'four Ps': 'product', 'promotion', 'price', and 'place‘.

24. Product
Correct combination of product and service. It will cover product depth (i.e. model, size, style, and color) and product breadth (i.e. number of product lines carried).

25. Price
The price is the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival.
Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often, it will affect the demand and sales as well.
The marketer should set a price that complements the other elements of the marketing mix.

26. Promotion
It represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion.

27. Place
It refers to providing the product at a place which is convenient for consumers to access. Place is synonymous with distribution. Various strategies such as intensive distribution, selective distribution, exclusive distribution, franchising can be used by the marketer to complement the other aspects of the marketing mix.

28. Thanks you
Happy Learning,
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