Team submission on "Ethics in Marketplace". Course: Business ethics.

1. A Presentation on Market Place
BY GROUP 6
AJAY CHOUDHARY
ANKUR KUMAR
ARJUN ARACKAL
KISHORE KUMAR
ROHIT KUMAR
SOMENATH MUKHERJEE

2. AGENDA
Packaging,
Labelling &
Product launch
01
Government
Regulation
03
Pricing
Strategies
05
Pricing
Objectives
02
Brand
Management
04

3. What is Marketing
Marketing is the science and art of exploring, creating, and delivering value to satisfy
the needs of a target market at a profit.
The activities of a company associated with buying and selling a product or service. It
includes advertising, selling and delivering products to people.
Why is Marketing required 4P’s
• Finding the Target audience for the product
• To differentiate your product from competitors
• To set competitive pricing
• The most effective promotion techniques
• To form strategies to compete in the market
INTRODUCTION

4. Packaging is anything used to contain, protect, handle, deliver or present raw materials and
processed goods.
Container : It is a physical necessity that most contents need a suitable container.
Physical Protection : Physical protection from shock, vibration, temperature
Agglomeration : Small packets are packed in bulk
Portion control : The immediate container of the product is a natural vessel for the quantity
Packaging

5. Labelling
• Display of information about a product on its container, packaging, or the product itself.
Logical information
• Immediate communication about what is contained in the package
• Products with chemicals, foodstuffs and Pharmaceuticals need extra guild lines
Marketing
• It directly communicates what customer wants
• Maintains customers relationship
Packaging & Labelling

6. Launching a Product.
Mantra of 3 Major FMCG companies
• Dabar : Widen Market share and increase investment
• Marico : Brand Building
• ITC Ltd. Introduce as many new products as possible
Things required to do before Launching a product.
• Market Research
• Communication
• Visibility
• Strategy for execution
Product launch

7. Pricing Strategies
- Penetration pricing strategy – Considerable discounts/ freebies,
sudden withdrawal , price war, unfair comparisons, imperceptible
volume reductions

8. Pricing Strategies
- Price skimming – gradually reducing prices for same product, wiping out competitions & achieve
monopoly in the market
- Competitive pricing- watchful, dynamic prices, shadow pricing, lower prices to wipe out others

9. Pricing Strategies
- Price shading –distributors given a free hand on
discounts , constant escalation may cause glut in
the market, if sales goes down profit will b e hit
badly
- Seasonal pricing-Lesser price at end of season,
seasons clearance very often an excuse to clear
inventory
- Term pricing- Discounts to those who pay in full,
large industrial buyers benefit from this
- Segment pricing-Discounts /freebies for a
particular segment, deceptive tactic
- Volume pricing- larger the volume greater the
discount, creating demand wont be beneficial
on the long run

10. Pricing
- Free market – marketers lower price to raise demand, higher prices higher the supply & lower demand,
equilibrium is achieved after some time
- Ethically ideal situation is when both parties are happy & ethical behavior is ensured from both ends
- Monopoly market –Extremely unethical because they violate the fundamentals of free market, here illegal
control of supply forces & pricing

11. Role of Government
• Government plays an important role in encouraging businesses to behave in an
ethical manner.
• Its control is important to have a control on the monopoly market.
• In poor and developing countries its role is very crucial
• Example – India, rationing of food grains and other essentials

12. Protecting the economy
• Having control measures like price control by fixing base price or floor price to
protect farmers
Protecting the consumers
• Measures like price ceiling to protect tenants
Ethical problems
• Problems related to human freedom
• Curtailing the entrepreneurial freedom of people
• People depend on government for everything which harmed the self esteem of the
people
• What ever role government plays it should be for the benefit of the people

13. Brand Management
• Brand is the identity of a company
• A company is responsible for the goods and services it produces under the brand
name
• Brand has a character shaped by the company internally
• It is recognized by the consumers externally
• Brands that connect ethically to society earn reputation

14. Deterrence:
• Refers to any action taken by an existing business
• discourages potential entrants from entering into competition in that market
• barriers to entry
• product differentiation through heavy spending on new product development, capacity expansion to
achieve lower unit costs, and predatory pricing.
• Virgin Atlantic v British Airways
Pre-emptive Strike:
Frontal Attack
• Gather as many customers as possible
• Leaving a blazing trail that keeps competitors away
• Customers may dislike too much intrusion in personal life
Pricing Strategies

15. Flanking:
• To tap the untapped are or in which competitors are less interested.
• Blue ocean
• Good space to nurture a new entrant
• Might go unnoticed.
Sequential Strategies:
• This is about the people who has ample amount of experience in the field.
• Well thought out and long term plans
• Detailed plan and policies
• Demerit is that they might be bogged down by the bureaucratic process.
Alliances:
• When companies feel that they are being part of undue competition
• Might provide better product an services and not merely look after acquiring customers
• Lead to Monopoly
• E commerce companies mutually decided to cut down on coupon discounts.
Pricing Strategies

16. Counter Offensive marketing strategies :
• Are used to secure competitive advantages;
• Market leaders, runner-ups or struggling competitors are usually attacked
• Keeps the company at toes
• Might loose out more because of hyperactive digital media.
Mobile defense:
• Company keeps the product mix flexible
• Allows innovation and repositioning of its products.
• Might loose stability
Encirclement:
• Long term strategy, surrounds competitor slowly
• Might miss the bigger picture and be bogged down
Pricing Strategies

17. Strategic withdrawal:
• Defensive tactic
• Foresight of an economic down turn
• Competitors might get n upper hand.
Leapfrogging:
• Innovate strategy coupled with the new technology ; leave competitors behind with the primitive style of
business.
• May not be appreciated by customers.
Pricing Strategies

18. Pricing
- Most important among 4Ps – Crucial role in free market
economies
- Pricing Objectives
- Competitive pricing – Follow the leader & differentiate
using other characteristics like quality , strategies
adopted to be different should be fair
- Prestige pricing- To enhance reputation for up-market
areas through limited supplies, products will not be
value for money
- Profitability pricing – maximize revenues through fair
price & high volumes , ways to maximize revenue should
be fair
- Volume pricing- Lowest pricing for max. sales, difficult
for small players to survive

19. Creation of Consumer capacity
• General assumption is that people have money or people with money are the customers.
• Fortune is at the bottom of the pyramid.
• In social marketing assumption is that consumer have very less money
Strategy for them:
Innovative
product and
services
Affordability
Partners in
business
Supportive
relationship
Empowerment
and dignity
Availability
Access
Unusual Strategy: Integral marketing paradigm

20. Affordability
Vs
Access Availability
Innovative product and services
Local Branded