Description
It describes the Compares consumer marketing and industrial marketing, explains pricing strategies and policies.
Name: Sona Koyo Steering Systems Ltd. ? Product: Steering wheel systems ? Description: We will analyze the application of 4Ps in the marketing of Steering Systems to an automobile company such as Tata Motors Ltd. ? Sona Koyo Steering Systems Limited (SKSSL), established in 1985 is currently the largest manufacturer of steering systems for the passenger car and utility vehicle market in India.
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Consumer Markets
• Brand name • Packaging • Sizes • Product Variety • Emotional Appeal • Low Associated Risk
Industrial Marketing
• Features • Design • Customization • Warranties • Delivery • Service
Quality ? Design ? Features ? Customization ? Services ? Delivery ? Warranties
?
Quality Policy: "Commitment to defect prevention and Continuous improvement while meeting or exceeding customer requirements at all times.“ ? Products: Propeller Shaft Assy., Rack Pinion Steering Assy., Recirculating Ball Screw Type Assy., etc.
?
Two types of pricing decisions.
Pricing strategies
Pricing policies Discounts Geographical pricing
Setting a price (product / market situations)
Initiating a price change Responding to a competitor's price change Leasing
1. Competitive Bidding ? In business markets, large volume of purchasing is done through competitive bidding, using either closed (or sealed) bidding or open (or negotiated) bidding method 2. New Product Pricing Strategy In the introduction stage of a new product, two alternative pricing strategies are available (i) Skimming (high initial price) strategy, and (ii) Penetration (low initial price) strategy 3. Pricing Across Product Life – Cycle (PLC) Marketing and pricing strategies vary as the product moves across 4 – stages of PLC 4. Leasing Business buyers have options of either leasing or buying capital items like machinery. The advantages for the lessee (asset user) are : (i) conserving capital, (ii) gaining tax advantages, (iii) getting the latest products. The lessor (asset owner) often earns good income from buying firms who can not afford outright purchase.
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Price list is a statement of basic prices of a product, having various sizes/specifications Net price = price list (or list-price) less discount (or allowances). Business buyers are more interested in net price
?
?
Discounts consist of trade discounts, volume discounts and cash discounts
Geographical Pricing It includes decisions on how to price the company’s products to customers located in different geographic areas
?
?
Complex nature of Product
› Focus on features of the product E.g. Auto Expos, Trade Fairs
?
Media platforms used are different
› Direct Marketing and Referrals work stronger as compared to
mass marketing tools
?
Relationships, relationships and relationships…
› Longer buying process due to cost considerations › Effective one to one engagement and persuasion
?
Internet as a medium for Industrial Product Promotion
› Detailed information about the product › Leads from others’ usage and reviews › Referrals and Networking online
?
‘Product is its own marketing’
› Even more compelling for industrial product › Features and quality take greater essence
› Branding of the product or company happens
through word of mouth and consistency with quality › Main media isn’t as much involved for promotions › Need identification is an integral part of the promotion rather than pushing the product
doc_483962729.pptx
It describes the Compares consumer marketing and industrial marketing, explains pricing strategies and policies.
Name: Sona Koyo Steering Systems Ltd. ? Product: Steering wheel systems ? Description: We will analyze the application of 4Ps in the marketing of Steering Systems to an automobile company such as Tata Motors Ltd. ? Sona Koyo Steering Systems Limited (SKSSL), established in 1985 is currently the largest manufacturer of steering systems for the passenger car and utility vehicle market in India.
?
Consumer Markets
• Brand name • Packaging • Sizes • Product Variety • Emotional Appeal • Low Associated Risk
Industrial Marketing
• Features • Design • Customization • Warranties • Delivery • Service
Quality ? Design ? Features ? Customization ? Services ? Delivery ? Warranties
?
Quality Policy: "Commitment to defect prevention and Continuous improvement while meeting or exceeding customer requirements at all times.“ ? Products: Propeller Shaft Assy., Rack Pinion Steering Assy., Recirculating Ball Screw Type Assy., etc.
?
Two types of pricing decisions.
Pricing strategies
Pricing policies Discounts Geographical pricing
Setting a price (product / market situations)
Initiating a price change Responding to a competitor's price change Leasing
1. Competitive Bidding ? In business markets, large volume of purchasing is done through competitive bidding, using either closed (or sealed) bidding or open (or negotiated) bidding method 2. New Product Pricing Strategy In the introduction stage of a new product, two alternative pricing strategies are available (i) Skimming (high initial price) strategy, and (ii) Penetration (low initial price) strategy 3. Pricing Across Product Life – Cycle (PLC) Marketing and pricing strategies vary as the product moves across 4 – stages of PLC 4. Leasing Business buyers have options of either leasing or buying capital items like machinery. The advantages for the lessee (asset user) are : (i) conserving capital, (ii) gaining tax advantages, (iii) getting the latest products. The lessor (asset owner) often earns good income from buying firms who can not afford outright purchase.
?
Price list is a statement of basic prices of a product, having various sizes/specifications Net price = price list (or list-price) less discount (or allowances). Business buyers are more interested in net price
?
?
Discounts consist of trade discounts, volume discounts and cash discounts
Geographical Pricing It includes decisions on how to price the company’s products to customers located in different geographic areas
?
?
Complex nature of Product
› Focus on features of the product E.g. Auto Expos, Trade Fairs
?
Media platforms used are different
› Direct Marketing and Referrals work stronger as compared to
mass marketing tools
?
Relationships, relationships and relationships…
› Longer buying process due to cost considerations › Effective one to one engagement and persuasion
?
Internet as a medium for Industrial Product Promotion
› Detailed information about the product › Leads from others’ usage and reviews › Referrals and Networking online
?
‘Product is its own marketing’
› Even more compelling for industrial product › Features and quality take greater essence
› Branding of the product or company happens
through word of mouth and consistency with quality › Main media isn’t as much involved for promotions › Need identification is an integral part of the promotion rather than pushing the product
doc_483962729.pptx