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MGT601 - SME Management - Lecture Handout 33

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Marketing Decision Variables

  1. Marketing Controllable Variable
    • Target Market Segment
      • Location
      • Target customers
      • Timing
    • Products offered
      • Type of product
      • Range of product
      • Design features
      • Quality
    • Price
      • Price level
      • Price variables (discount)
      • Maintenance
    • Advertisement & Promotion
      • Advertising level
      • Advertising media
      • Sales promotion
    • Distrbution.
      • Channels
      • Number of sales outlets
      • Warehousing facility
    • Servicng
  2. Marketing Uncontrollable
    • Resource Availability.
      • Availability of required materials
      • Cost and quality of required material
      • Material
    • Competition – Direct & Indirect.
    • Economic Conditions – total market size, economic trends, income situation.
    • Socio- Culural Conditions – societal values, life style, fashion consciousness.
    • Political & Legal Conditions.
      • Political risk situation
      • Legal regulation
    • Technological Situation – state of technology, rate of technological change.

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. The product features amenable to manipulation by a small firm are;

  1. Performance and functional features i.e. firm’s ability to perform, durability, reliability and precision.
  2. Use characteristics i.e. ease in handling and serviceability.
  3. Aesthetic qualities e.g. style, design, color etc.
  4. Extrinsic features e.g. uniqueness of product, status value etc.

Product Life Cycle

Product Life Cycle is equally helpful in deciding about appropriate marketing strategy to be adopted.

  • Product Development
  • Introduction
  • Late Growth
  • Maturity
  • Decline

Marketing Mix

It is the integration of the four elements noted below to service the needs of target market.

  1. Product Mix: 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).
  2. Promotional Strategy: Promotional Strategy to inform customer about firm, products/.service etc. through personal selling, sales promotion etc.
  3. Physical Distribution: Physical Distribution i.e. the chair of distribution to be adopted. It forms the subject matter of a separate chapter.
  4. Pricing.

Related Content: MGT601 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of SME Management