Principles of Marketing

for

BYArnav Rana

Lili ChanMina Lee

Contents

Managing Profitable customer relationship

Company and Marketing StrategyMarketing EnvironmentBuyer’s BehaviorCustomer Driven Marketing StrategyProduct, Services and Branding StrategyPricing Products

Marketing ProcessFailed to understand market

place and consumer need and wants

Marketing MyopiaLed to bankruptcyTried to differentiate and position

itself

Focused on ….

Production concept Reduction of number of

movement parts from 90→5140% reduction in cost in

assembles Parts were 0.002 mm

Strategic planning Mission To come out from the lossObjective & Goal To design low price analog To compete with digital watchDesign business portfolioProduct developmentHigh class to all

Marketing Mix

Product -0.1mm analog watch

-Different colors and designs Price $40

Promotion -Swatch

-Giant Swatch clock

Place Swatc

h

Micro environment

Macro environment

Factors Affecting Consumer Behavior

Social FactorsPersonal FactorsEconomic SituationsPsychological Factors

Variety-Seeking Buying Behavior

Steps to Create Value forTarget Customers

Segmentation

- Demographic-Psychographic-Behavioral

Differentiation

-More for less-High quality -low price

Targeting-Teens and 20s’-Lower Class and above

Positioning-Reliability-Craftsmanship-stylish

Create value

Product DecisionsShopping productQuality- reliability & craftsmanshipFeatures – 1mm thick and water

proofStyle and Design –different colors

and plastic caseBranding Development

Strategy

NEW BRAND

Value based pricing Customer : everyone ↓Value : style , different colors, water proof ↓Price : $40 ↓Cost : $6.65 ↓Product : watch

Monopolistic Market

Pricing Strategy

Market Penetration Pricing