Fundamentals of Marketing New[1]

7/31/2019 Fundamentals of Marketing New[1]

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Marketing

Buzzwords of confusion

Sales versus Marketing

Market Research &

Marketing Research

Event Marketing

SWOT, PEST, KPIs,

USPs, DINKYs etc


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As Event Managers,why is it important we understand

what Marketing is?


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Interactive

Media

Radio

Television

OutdoorPrint

Media

Internet

Below

the line

Events

Important Part of the Marketing Tactics


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Example of Events in Marketing

The PepsiChallenge has beenan ongoingmarketing promotion

run by PepsiCo forthe last 2 decades

1980s PepsiChallenge built

around a premisethat had to beestablished live
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Marketing


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The challenge takes the form of a taste test. At publiclocations, a Pepsi representative sets up a table with twoblank cups, one containing Pepsi and one with Coke.

Shoppers are encouraged to taste both colas, andcorrectly identify which is Pepsi and which is Coke. Ifthey can correctly identify the two, they win a prize.

Example of Events in Marketing


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Events within Marketing

Marketing(A Philosophy)

Events

The Marketing Mix (Tactics)

Product Price Place Promotion People Physical

Evidence

Process


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Agenda

Marketing What is it?

The Marketing Mix

The Environment The Marketing Plan

The Promotion Focus

Events (Face to Face Communication)


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What is Marketing ?


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The agrarian economy was largely self sufficientand trade was mostly through barter

The industrial revolution in early 19th centurysuddenly created surplus putting pressure on

manufacturers to find markets that could absorbthe produce

The need for labeling the produce, brands,trademarks and patents gradually began to

come in Mid 19th Century traveling salesman toorganized distribution

Marketing History


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The Sales Era lasted till the 2nd world war

Post war boom started the consumeristwave money in the hands of people, and

larger number of enterprises makingsimilar products

Product proliferation made business very

competitive It was this that paved the way for

Marketing

Marketing History


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Orientation Stages

Production Oriented

Firms tend to manufacture and offergoods that they are good at producing

Sales Oriented

The Hard Sell, firms now realise thatdue to competition the goods have tobe sold. Sales volume becomes themost important criterion

Marketing OrientedThe firm ascertains the genuine needsand wants of specifically defined targetmarkets and then produce goods andservices that satisfy the customer

requirements


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Marketing Some Descriptions

Marketing is a human activity directed at

satisfying human needs and wantsthrough exchange process

The customer is always right

The right product, in the right place, at the

right time, at the right price


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Marketing Definitions

Marketing is the management process whichidentifies, anticipates and supplies customerrequirements efficiently and profitably

Chartered Institute of Marketing

Marketing is the process of planning andexecuting the conception, pricing, promotion,

and distribution of ideas, goods and services tocreate exchanges that satisfy individual andorganizational objectives

American Marketing Association


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Sales process beginswith the producer

Based on what theproducer can make

Seller defines the price

Focus on finding buyersand selling them anyhow

The sale is the end of thetransaction

Product attributes static,as long as it sells

Marketing begins with theconsumer

Based on consumer needsand wants

Market demand decides

Focus on matching consumer

needs with product attributes The sale is the beginning of

the transaction relationship

Products must adapt to

changing customer trends


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Marketing is involved with the planning ofthe presentation of the firms capabilities;

whereas

Sales is the execution of the transfer orexchange of the product, good or

service.


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Marketing is a strategic function and has anumber of tactical activities, of which selling isone.

The primary function of sales is to find andclose leads, turning prospective customers inactual ones

Sales definitionIncome (at invoice values) received for goodsand services over some given period of time


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Presentation Status


The Marketing Mix


The Promotion Focus



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The Marketing Mix


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The Marketing Mix The 4 Ps

The variables that the marketing manager can control inorder to best satisfy customers in the target market

TargetMarket

2. Price

1. Product

4. Promotion

3. PlaceThe physical productor service offered tothe consumer.

Channels of distributionto get the product to the

consumer.

Producer-Wholesaler-

Retailer-Customer

Financial aspects of theprocess; price levels,profit margins etc.

The communication andselling to potentialcustomers


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The Extended Marketing Mix

5. People

Employees are in direct

contact with customersand therefore must beconsidered the in thedeveloping themarketing mix


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6. Physical Evidence Service has an

intangiblecharacteristic, thereforeimportance is placed onmore tangible elementsof the service mix such

as facilities andequipment.


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7. Process

How the service is

provided is important.Procedures for dealingwith customers at thepoint of contact, and the

supply of a consistentquality service must bepre-planned andmanaged


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Presentation Status


The Marketing Mix


The Promotion Focus



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The Environment


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Components of Communication

Encoder Decoder

Channel

Message


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Organisational Buying Process

Need recognition

Determine specification (general)

Determine specification (specific)

Search

Evaluation

Selection

Post-purchase evaluation


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Comsumer Buying Process


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Market Analysis PEST A framework to scan the external macro-

environment in which a firm operates

Price

Product

Promotion

Place

Company Economic

Socio-Cultural

Techno-logical

Political


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Target Markets

One of the reasons why marketing arose wasbecause of the diversity of markets and complexhuman needs and wants

As competition increased and more producersstarted producing similar goods, the need tocarve out exclusive niches arose

This could be done by changes to the productDIFFERENTIATION, or to the market definitions- SEGMENTATION


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Segmentation & Targeting

If segmentation is about breaking up a massmarket into more specific subsets, targeting is allabout the decisions to appeal to them

Treating them all as one large group with a

common interest is called UNDIFFERENTIATEDmarketing Selecting one small niche and catering to that

segment is called CONCENTRATED marketing

Identifying several unique subsets and talking tothem individually is called DIFERENTIATEDmarketing


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Why Segment?

Better matching of customer needs

Enhanced profits, margins for the business

Better opportunities for growth Retain loyalty of customers

Targeted marketing communications

Gain share in the segment


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Some Examples of Profiles

Ultra Conservative - don't rock the boat, whatever they purchasemust be consistent with their current way of doing things.

Conservatives - are willing to change, but only in small incrementsand only in a very cost effective manner.

Liberals - regularly looking for new solutions, willing to makechange (even major change) if the benefit can be shown.

Technical Liberals - enamored with the benefits provided by hightech solutions and any purchase decision will be biased by thetechnical content of the offering.

Self Helpers - consistently defines/designs solutions to theirproblems, likes to acquire tools that help in the innovation process.


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The Road to the Market

To get a product or service to the rightperson or company, a marketer wouldfirstly

1. segment the market,2. then target a single segment or series of

segments,

3. and finally position within the segment(s)


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1. Market Segment

Segmentation is essentially the identification of subsets ofbuyers within a market who share similar needs and whodemonstrate similar buyer behavior.

by geography region, climate, population density andgrowth

by demographics - such as age, gender, occupation,income, education and family status

by psychographics - such as values, lifestyle or beliefs

by behaviour such as class, brand loyalty, pricesensitivity


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2. Targeting the Market

After the market has been separated intoits segments, the marketer will select asegment or series of segments and 'target'it/them

It's like looking at a dart board or ashooting target. You see that it has areas

with different scores - these are yoursegments. Aiming the dart or the bullet ata specific scoring area is 'targeting'


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2. Targeting the Market (cont)

Eg. The Car Industry


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Eg. Rolls Royce


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Eg. Washing Powder


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3. Position in Market

After segmenting a market and then targeting aconsumer, you would proceed to position aproduct within that market

Positioning is all about 'perception

Products or services are 'mapped' together on a

'positioning map'. This allows them to becompared and contrasted in relation to eachother


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EG. Automotive

Positioning Map

3. Position in Market (cont)


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Presentation Status


The Marketing Mix


The Promotion Focus



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The Marketing Plan


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Marketing Plan

Marketing plans are vital to marketingsuccess. They help to focus the mind ofcompanies and marketing teams on the

process of marketing i.e. what is going tobe achieved and how we intend to do it.


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The Marketing Plan (cont)

The key stages of the plan are contained

under the acronym AOSTC

1. Analysis2. Objectives

3. Strategies

4. Tactics

5. Control.


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1. Analysis

The environment (PEST)

Internal Audit

Competitors

SWOT


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SWOT ANALYSIS A tool for identifying and analysing the (internal)

strengths and weaknesses of a corporation and the(external) opportunities and threats.

Strong brand / reputation

Industry expertise

Natural resources

Patents

New product / service

Location

Quality process or procedure

Developing marketMergers or strategic alliances

Moving into new attractive market segments

New international markets

Loosening of regulations

Removal of international trade barriers

Market is led by weak competitor

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

Poor quality of goods or service

Damaged reputation

Lack of marketing expertise

Location of business

Competitors have superior resources

Weak HR and personnel

New competitor in home marketPrice war

Innovative product/service from competitor

New regulations

Increased trade barriers

Taxation on product / service


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2. Objectives (SMART) Specific

Be precise about what you are going to achieve

MeasurableQuantify you objectives

Achievable

Are you attempting too much?

Realistic

Do you have the resource to make the objective happen (men,money, machines, materials, minutes)?

Timed

State when you will achieve the objective (within a month? By

February 2010?)


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3. Strategies

Describe your target market.

Which segment?

How will we target the segment?How should we position within the segment?

Define the segment in terms of demographics and lifestyle

Show how you intend to 'position' your product or service

within that segment. Use other tools to assist in strategic

marketing decisions such as Boston Matrix, Ansoffs Matrix


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4. Tactics

Convert the strategy into the marketing mix (4 ps)marketing

mix. These are your marketing tactics.

PRICE. Will you cost plus, skim, match the competition orpenetrate the market?PLACE. Will you market direct, use agents or distributors?PRODUCT Sold individually, as part of a bundle, in bulk?PROMOTION Which media will you use? e.g sponsorship,radio advertising, sales force, point-of-sale, etc? Think ofthe mix elements as the ingredients of a 'cake mix
http://www.marketingteacher.com/Lessons/lesson_promotion.htmhttp://www.marketingteacher.com/Lessons/lesson_place.htm


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5. Control

Remember that there is no planning withoutcontrol. Control is vital.

Start-up costs Monthly budgets

Sales figure

Market share data Monitor and Evaluate plan


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Marketing Budgets

Gear your marketing efforts to the most cost effectiveuse

Budgets include everything from equipment investmentsto soft company support of community events

Keys areas could be: (mix) Advertising; public relations Product packaging Sales force / commercial incentives

Marketing budget should anticipate results; internallysell the expenditures for each piece; support most

important objectives Some marketingorganizations have P/L responsibility You cant make a buck, without spending a buck


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Campaign Framework

MarketingCommunication

Objectives &Strategy

MarketingCommunication

Tactics

CampaignImplementation

CampaignEvaluation &

Control

SpecificMeasurable

Short Term

Targets

Budgets

Creative

Media selection

Below the linepromotions

Sales force

Public relations

Distributionchannels &management

National Launch orsmaller scalecampaign


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Presentation Status


The Marketing Mix

The Environment

The Marketing Plan

The Promotion Focus



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The Promotion Focus


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Events within Marketing

Marketing(A Philosophy)

Events

The Marketing Mix (Tactics)

Product Price Place Promotion People Physical

EvidenceProcess


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Push & Pull Marketing Strategies

PUSHMarketing effortstargeted at themiddlemen and thesalesforce

PULLMarketing effortstargeted at consumers

Cash discounts

Dealer competitions

Salesforce cash incentives

Direct Mail shots

Credit facilitiesTrade Exhibitions & Events,Demonstrations

Training schemes

Price reductions,

CouponsFree samples/demos instores

Competitions

Buy one get one free,

Packaging,Point of Sale displays,

Consumer Advertising

Sponsorship

CHANNELSOF

DISTRIBUTION


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The Promotion Cake The basic ingredients are always the same. However if you vary the amounts of

one of the ingredients, the final outcome is different. You can 'integrate' differentaspects of the promotions mix to deliver a unique campaign cake.

Personal

Selling

Advertising

PR

DirectMail

Sales

Promotion

Events

Sponsorship

Personal

Selling

Advertising

PR Direct

Mail

Sales

Promotion

Events

Sponsorship


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Advertising

Advertise make knownTo inform

An advertisement to be successful;

Must be seen

Must be read

Must be believed

Must be remembered Must be acted upon


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Presentation Status


The Marketing Mix

The Environment

The Marketing Plan

The Promotion Focus In progress



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Presentation Status


The Marketing Mix

The Environment

The Marketing Plan

The Promotion Focus In progress



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Marketing Plan Example


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Presentation Status


The Marketing Mix

The Environment

The Marketing Plan

The Promotion Focus



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Events

(Face to Face Communication)


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An Overview of Events

Events

Award Ceremonies

Carnivals

Concerts

Conferences Corporate Events

Exhibitions

Festivals Fashion Shows

Product Launches

Promotions

Road Shows

Seminars

Sporting Events

Trade Fairs


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Award Ceremonies


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Carnivals


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Concerts


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Conferences


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Car Launch


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Exhibitions


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Festivals


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Fashion Show


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Opening Ceremony


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Product Launch

S i E


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Sporting Event

T i E


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Tourist Events

W ddi


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Weddings

P i S


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Presentation Status


The Marketing Mix

The Environment

The Marketing Plan

The Promotion Focus


Brand

BrandBrand


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Brand

Building

Events

Product

Displays

Brand

Awareness

Merchandising

Promotions

PR

DriverEntertainment

Brand

Building

Brand

PositioningVisibility

Personal

Selling

TangibleSales

Research &

Planning

Brand

Communication Product

Sampling

E t C i ti


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Event Communication

Advantages

Clean and customer direct

Direct benefit to the user (even enjoyment) It is suggested that the advertising arena

(while growing in terms of size) is slowingdown and being replaced by the Face-to-facestyle medium of communication.

M k ti Di ti


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Marketing Dictionary

Above the Line Advertising for which a payment is made and forwhich commission is paid to the advertising agency. See also'below the line' and 'push versus pull promotion

Advertising Promotion of a product, service, or message by an

identified sponsor using paid-for media.

Brand The set of physical attributes of a product or service,together with the beliefs and expectations surrounding it - aunique combination which the name or logo of the product orservice should evoke in the mind of the audience.

Brown Goods Electrical goods such as TVs, videos, stereosystems etc, used for home entertainment. So called becausethey were originally cased in bakelite, a brown plastic.

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Buzz marketing uses 'word-of-mouth' advertising: potentialcustomers pass round information about a product. See also 'viralmarketing

Channels The methods used by a company to communicate and

interact with its customers

Copyright The law that protects an author's original material,usually (in the UK) for 70 years after the author's death. Similarlaw covers logos and brand names

Copywriting Creative process by which written content isprepared for advertisements or marketing material

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Customer Relationship Management (CRM) The coherentmanagement of contacts and interactions with customers. (Thisterm is often used as if it related purely to the use of IT, but ITshould in fact be regarded as a facilitator of CRM.)

Decision Making Unit (DMU) The team of people in anorganisation who make the final buying decision

Differentiation Ensuring that products and services have aunique element to allow them to stand out from the rest

DINKY Double Income No Kids Yet - a demographic grouping

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Direct Marketing All activities which make it possible to offergoods or services or to transmit other messages to a segment ofthe population by post, telephone, e-mail or other direct means

Electronic Point of Sale (EPOS) System A system wherebyelectronic tills are used to process customer transactions in aretail outlet

Endorsement Affirmation, usually from a celebrity, that a productis good

FMCG Fast Moving Consumer Goods - such as packaged food,beverages, toiletries, and tobacco

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Focus Groups A tool for market research where small groups ofcustomers are invited to participate in guided discussions on thetopic being researched

Grey Marketing (also called Parallel Importing) The illicit saleof imported products contrary to the interests of a holder of atrademark, patent or copyright in the country of sale

Guerrilla Marketing The strategy of targeting small andspecialised customer groups in such a way that bigger companieswill not find it worthwhile to retaliate

Logo A graphic, usually consisting of a symbol and/or group ofletters, that identifies a company or brand

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Macro Environment The external factors which affect acompanys planning and performance, and are beyond its control:for example, socio-economic, legal and technological change.Compare 'micro environment

Market Penetration The attempt to grow one's business byobtaining a larger market share in an existing market - see'market share' and 'market development

Micro Environment The immediate context of a company'soperations, including such elements as suppliers, customers andcompetitors - compare 'macro environment

Personal Selling One-to-one communication between seller andprospective purchaser

Marketing Dictionar


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PIMS Profit Impact of Marketing Strategies: a US databasesupplying data such as environment, strategy, competition andinternal data with respect to 3000 business. This data can beused for benchmarking purposes

Point of Sale (POS) (also called Point of Purchase) Thelocation, usually within a retail outlet, where the customer decideswhether to make a purchase. See also 'EPOS - Electronic Pointof Sale'

Portfolio (and Portfolio Analysis) The set of products orservices which a company decides to develop and market

Product Life Cycle A model describing the progress of a productfrom the inception of the idea, via the main period of sales, to itseventual decline



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Promotional Mix The components of an individual promotionalcampaign, which are likely to include advertising, personal selling,public relations, direct marketing, packaging, and sales promotion

Relationship Marketing The strategy of establishing arelationship with the customer which continues well beyond thefirst purchase.

Return on Investment (ROI)/Return on Capital Employed(ROCE) The value that an organisation derives from investing ina project

Skimming Setting the original price high in the early stages of theproduct life cycle in an attempt to get as much profit as possiblebefore prices are driven down by increasing competition



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Supply Chain The network of suppliers, manufacturers anddistributors involved in the production and delivery of a product

Unique Selling Preposition (USP) The benefit that a product orservice can deliver to customers that is not offered by anycompetitor: one of the fundamentals of effective marketing andbusiness

Value Preposition The set of qualities of a good or service thatallows it to fulfill the customer's needs and desires, as opposed tosimply benefiting the seller

White Goods Large electrical devices for domestic use, such asfridges, freezers and dishwashers. Used to be cased in whiteenamel, hence the name

Documents

Fundamentals of Marketing New[1]