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GROUP 4 ANUKRITI

MEETA

SONAM SNEHAL

SUSHMITA

NIVEDITA

PRIYANKA

DHRUVI

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GROUP 4 VISION & MISSION

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PRINCIPLES OF MARKETING WARFARE In Marketing Warfare Al Ries and Jack Trout argue that marketing is war and that the marketing concept's customer-oriented philosophy is inadequate. Rather, firms would do better by becoming competitor-oriented. If the key to success were to introduce products closest to those wanted by customers, then the market leader simply would be the firm that performed the best market research. Clearly, much more is required. •There are 4 principles of Marketing Warfare a)Defensive Warfare b)Offensive Warfare c)Flanking Warfare d)Guerilla Warfare

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DEFENSIVE WARFARE DEFFENSIVE

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Defensive  Survival, maintaining leadership  Defensive warfare is mainly used by market leaders to              protect their position in the market place against      competitor attacks. Attack yourself in the best way  Self analysis in all its aspects Block strong competitor moves Always keep something in reserve Should avoid legal exposure Indian example­ Cadbury chocolate

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OFFENSIVE WARFARE

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Offensive  To defeat the leader Marketing warfare strategy whereby a company in a second  or third position will attack a competitive leader in the market  place.  Find a weakness in the leader’s strength. Should not ignore its own weakness.

Ex.­ Aquaguard v/s Pure It Horlicks and Complan 

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FLANKING WARFARE

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Flanking Warfare 

Market penetration with revived strategy Designed to minimize confrontational losses. Flanking the leader in areas that are uncontested Has a surprise element along with persistent pursuit of the  goal Focuses on­ Distribution, product mix and pricing •

Example­ lifebuoy

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Guerilla Warfare 

Create its market share with new strategy Particularly for niche leadership Small firms strategy  Find a segment in the market small enough to  defend. Never act like a leader. Be prepared to bug out at a moment’s notice without   incurring much losses. Ex­ Paramount Airlines Centershock

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MULTI LEVEL MARKETING (MLM)

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MULTI LEVEL MARKETING (MLM)

Multiple levels of people are marketing a product to consumers. 

A sales representative (also referred to as a distributor, member, affiliate, partner  or associate) gets customers and recruits Trains another sales rep to get customers. Creating a downline of distributors and a hierarchy of multiple levels of  compensation in the form of a pyramid. The products and company are usually marketed directly to consumers  Word of mouth marketing­ DIRECT SALES

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How does it works

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STAGES IN MLM

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Examples Amway

Tupperware

Oriflame

Agel Enterprises LLC­ World’s 1st  nutritional supplement supplier Stream Energy­ is a retail electricity and natural gas firm active in the Texas Mini IQ­ focuses on educational books toys, games and other products for children  and the family.  Mannatech­the company offered 24 nutritional products, three topical products,  seven different skin care products, and a weight­management system consisting of  four different products G6.A_GROUP4_VER1.1 11/30/09

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POPULARITY CHART Top Companies AVON, INC.   Mary Kay Cosmetics   Pampered Chef   MonaVie   Tupperware   Lia Sophia   Beachbody   Arbonne International   Herbalife International   Amway  

http://www.mlmrankings.com/

Popularity % 12.53%   5.56%   5.18%   3.84%   3.66%   3.53%   2.89%   2.70%   2.67%   2.16%   G6.A_GROUP4_VER1.1 11/30/09

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ADVANTAGES AND DISADVANTAGES 

ADVANTAGES



DISADVANTAGES



The feeling of belonging





Benefit from the knowledge  & experience of others

Dependency on others for  income



No guarantee of fixed income



Additional source of income





No need to hire full time  salespeople



The affiliate does not have to  keep inventory on hand

MLM affiliate programs  promise huge residual  income from downline  affiliates and never  deliver.



Most orders are taken either  online or through a  campaign of catalog  distribution



No  transparency 

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Thank You for your patience!

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