Transcript Marketing - PickUrProjects

Marketing
Buzzwords of confusion
• Sales versus Marketing
• Market Research &
Marketing Research
• Event Marketing
• SWOT, PEST, KPI’s,
USP’s, DINKY’s etc
As Event Managers,
why is it important we understand what
Marketing is?
Important Part of the Marketing Tactics
Below
the line
Interactive
Media
Radio
Events
Internet
Television
Print
Media
Outdoor
Example of Events in Marketing
• The Pepsi Challenge
has been an ongoing
marketing promotion
run by PepsiCo for the
last 2 decades
• 1980’s Pepsi Challenge
– built around a
premise that had to be
established ‘live’
Example of Events in Marketing
• The challenge takes the form of a taste test. At public locations,
a Pepsi representative sets up a table with two blank cups, one
containing Pepsi and one with Coke.
• Shoppers are encouraged to taste both colas, and correctly
identify which is Pepsi and which is Coke. If they can correctly
identify the two, they win a prize.
Events within Marketing
Marketing
(A Philosophy)
The Marketing Mix (Tactics)
Product
Price
Place
Promotion
Events
People
Physical Process
Evidence
Agenda
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
What is Marketing ?
Marketing History
• The agrarian economy was largely self sufficient and
trade was mostly through barter
• The industrial revolution in early 19th century
suddenly created ‘surplus’ – putting pressure on
manufacturers to find markets that could absorb
the produce
• The need for labeling the produce, brands,
trademarks and patents gradually began to come in
• Mid 19th Century – traveling salesman to organized
distribution
Marketing History
• The Sales Era lasted till the 2nd world war
• Post war boom started the consumerist wave – money in the hands
of people, and larger number of enterprises making similar products
• Product proliferation made business very competitive
• It was this that paved the way for Marketing
Orientation Stages
• Production Oriented
Firms tend to manufacture and offer goods
that they are good at producing
• Sales Oriented
The Hard Sell, firms now realise that due to
competition the goods have to be sold. Sales
volume becomes the most important
criterion
• Marketing Oriented
The firm ascertains the genuine needs and
wants of specifically defined target markets
and then produce goods and services that
satisfy the customer requirements
Marketing – Some Descriptions
• “Marketing is a human activity directed at satisfying human needs
and wants through exchange process”
• “The customer is always right”
• “The right product, in the right place, at the
right time, at the right price”
Marketing – Definitions
• “Marketing is the management process which identifies, anticipates
and supplies customer requirements efficiently and profitably”
Chartered Institute of Marketing
• “Marketing is the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational
objectives”
American Marketing Association
Sales versus Marketing
• Sales process begins with
the producer
• Based on what the producer
can make
• Seller defines the price
• Focus on finding buyers and
selling them anyhow
• The sale is the end of the
transaction
• Product attributes static, as
long as it sells
• Marketing begins with the
•
•
•
•
•
consumer
Based on consumer needs
and 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
Sales versus Marketing
• Marketing is involved with the planning of the presentation of the
firm’s capabilities;
whereas
• Sales is the execution of the transfer or “exchange” of the product,
good or service.
Sales versus Marketing
• Marketing is a strategic function and has a number
of tactical activities, of which selling is one.
• The primary function of sales is to find and close
leads, turning prospective customers in actual ones
• Sales definition
Income (at invoice values) received for goods and
services over some given period of time
Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
The Marketing Mix
The Marketing Mix
• The 4 P’s
The variables that the marketing manager can control in order
to best satisfy customers in the target market
1. Product
The physical product
or service offered to
the consumer.
2. Price
Financial aspects of the
process; price levels,
profit margins etc.
3. Place
Target
Market
Channels of distribution
to ‘get’ the product to the
consumer.
Producer-WholesalerRetailer-Customer
4. Promotion
The communication and
selling to potential
customers
The ‘Extended’ Marketing Mix
5. People
• Employees are in direct
contact with customers
and therefore must be
considered the in the
developing the marketing
mix
The ‘Extended’ Marketing Mix
6. Physical Evidence
• Service has an intangible
characteristic, therefore
importance is placed on
more tangible elements of
the service mix such as
facilities and equipment.
The ‘Extended’ Marketing Mix
7. Process
• How the service is provided
is important. Procedures for
dealing with customers at
the point of contact, and the
supply of a consistent quality
service must be pre-planned
and managed
Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
The Environment
Components of Communication
Channel
Encoder
Message
Decoder
Organisational Buying Process
Need recognition
Determine specification (general)
Determine specification (specific)
Search
Evaluation
Selection
Post-purchase evaluation
Comsumer Buying Process
Market Analysis
• PEST – A framework to scan the external macro-environment in
which a firm operates
Political
Product
Technological
Place
Company
Price
Promotion
Socio-Cultural
Economic
Target Markets
• One of the reasons why marketing arose was
because of the diversity of markets and complex
human needs and wants
• As competition increased and more producers
started producing similar goods, the need to carve
out exclusive niches arose
• This could be done by changes to the product –
DIFFERENTIATION, or to the market definitions SEGMENTATION
Segmentation & Targeting
• If segmentation is about breaking up a mass market
into more specific subsets, targeting is all about the
decisions to appeal to them
• Treating them all as one large group with a common
interest is called UNDIFFERENTIATED marketing
• Selecting one small niche and catering to that
segment is called CONCENTRATED marketing
• Identifying several unique subsets and talking to
them individually is called DIFERENTIATED
marketing
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
Some Examples of Profiles
• Ultra Conservative - don't rock the boat, whatever they purchase must
be consistent with their current way of doing things.
• Conservatives - are willing to change, but only in small increments and
only in a very cost effective manner.
• Liberals - regularly looking for new solutions, willing to make change
(even major change) if the benefit can be shown.
• Technical Liberals - enamored with the benefits provided by high tech
solutions and any purchase decision will be biased by the technical
content of the offering.
• Self Helpers - consistently defines/designs solutions to their problems,
likes to acquire tools that help in the innovation process.
The Road to the Market
To get a product or service to the right person or company, a marketer
would firstly
1.
segment the market,
2.
then target a single segment or series of segments,
3.
and finally position within the segment(s)
1. Market Segment
Segmentation is essentially the identification of subsets of
buyers within a market who share similar needs and who
demonstrate similar buyer behavior.
• by geography – region, climate, population density and growth
• 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, price sensitivity
2. Targeting the Market
• After the market has been separated into its segments, the marketer will
select a segment or series of segments and 'target' it/them
• It's like looking at a dart board or a shooting target. You see that it has
areas with different scores - these are your segments. Aiming the dart or
the bullet at a specific scoring area is 'targeting'
2. Targeting the Market (cont)
• Eg. The Car Industry
2. Targeting the Market (cont)
• Eg. Rolls Royce
2. Targeting the Market (cont)
• Eg. Washing Powder
3. Position in Market
• After segmenting a market and then targeting a
consumer, you would proceed to position a product
within that market
• Positioning is all about 'perception‘
• Products or services are 'mapped' together on a
'positioning map'. This allows them to be compared
and contrasted in relation to each other
3. Position in Market (cont)
EG. Automotive
Positioning Map
Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
The Marketing Plan
Marketing Plan
• Marketing plans are vital to marketing success. They help to focus
the mind of companies and marketing teams on the process of
marketing i.e. what is going to be achieved and how we intend to do
it.
The Marketing Plan (cont)
The key stages of the plan are contained
under the acronym AOSTC
1. Analysis
2. Objectives
3. Strategies
4. Tactics
5. Control.
The Marketing Plan (cont)
1. Analysis
• The environment (PEST)
• Internal Audit
• Competitors
• SWOT
SWOT ANALYSIS
• A tool for identifying and analysing the (internal) strengths and
weaknesses of a corporation and the (external) opportunities
and threats.
STRENGTHS
Strong brand / reputation
Industry expertise
Natural resources
Patents
New product / service
Location
Quality process or procedure
OPPORTUNITIES
Developing market
Mergers 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
WEAKNESSES
Poor quality of goods or service
Damaged reputation
Lack of marketing expertise
Location of business
Competitors have superior resources
Weak HR and personnel
THREATS
New competitor in home market
Price war
Innovative product/service from competitor
New regulations
Increased trade barriers
Taxation on product / service
The Marketing Plan (cont)
2. Objectives (SMART)
• Specific
Be precise about what you are going to achieve
• Measurable
Quantify 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?)
The Marketing Plan (cont)
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, Ansoff’s Matrix
The Marketing Plan (cont)
4. Tactics
Convert the strategy into the marketing mix (4 p’s)marketing
mix. These are your marketing tactics.
PRICE. Will you cost plus, skim, match the competition or
penetrate 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 of
the mix elements as the ingredients of a 'cake mix’
The Marketing Plan (cont)
5. Control
Remember that there is no planning without control. Control is vital.
• Start-up costs
• Monthly budgets
• Sales figure
• Market share data
• Monitor and Evaluate plan
Marketing Budgets
• Gear your marketing efforts to the most cost effective use
• Budgets include everything from equipment investments to
“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; internally “sell”
the expenditures for each piece; support most important
objectives
• Some marketing organizations have P/L responsibility
• “You can’t make a buck, without spending a buck”
Campaign Framework
Marketing
Communication
Objectives &
Strategy
Marketing
Communication
Tactics
Campaign
Implementation
•Specific
•Budgets
•Measurable
•Short Term
•Targets
•Creative
•National Launch or
smaller scale
campaign
•Media selection
•Below the line
promotions
•Sales force
•Public relations
•Distribution
channels &
management
Campaign
Evaluation &
Control
Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
The Promotion Focus
Events within Marketing
Marketing
(A Philosophy)
The Marketing Mix (Tactics)
Product
Price
Place
Promotion
Events
People
Physical Process
Evidence
Push & Pull Marketing Strategies
PUSH
PULL
Marketing efforts
targeted at consumers
Marketing efforts
targeted at the
middlemen and the
salesforce
CHANNELS
OF
DISTRIBUTION
•Cash discounts
•Dealer competitions
•Salesforce cash incentives
•Direct Mail shots
•Credit facilities
•Trade Exhibitions & Events,
Demonstrations
•Training schemes
•Price reductions,
•Coupons
•Free samples/demos in
stores
•Competitions
•Buy one get one free,
•Packaging,
•Point of Sale displays,
•Consumer Advertising
• Sponsorship
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' different aspects of the
promotions mix to deliver a unique campaign cake.
Advertising
Sponsorship
Events
Personal
Selling
Direct
Mail
Sales
Promotion
PR
Advertising
Personal
Selling
Sponsorship
Events
Sales
Promotion
PR
Direct
Mail
Advertising
‘Advertise’ – ‘make known…To inform’
An advertisement to be successful;
• Must be seen
• Must be read
• Must be believed
• Must be remembered
• Must be acted upon
Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
In progress
• Events (Face to Face Communication)
Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
In progress
• Events (Face to Face Communication)
Marketing Plan Example
Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
Events
(Face to Face Communication)
An Overview of Events
• Award Ceremonies
• Carnivals
• Concerts
• Conferences
• Corporate Events
• Exhibitions
• Festivals
• Fashion Shows
• Product Launches
• Promotions
Events
•
•
•
•
Road Shows
Seminars
Sporting Events
Trade Fairs
Award Ceremonies
Carnivals
Concerts
Conferences
Car Launch
Exhibitions
Festivals
Fashion Show
Opening Ceremony
Product Launch
Sporting Event
Tourist Events
Weddings
Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
Brand
Positioning
Visibility
Brand
Brand
Building
Building
Product
Displays
Brand
Awareness
Personal
Selling
Events
Tangible
Sales
Merchandising
Research &
Planning
Brand
Communication
Promotions
Product
Sampling
Entertainment
PR
Driver
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 slowing down and being
replaced by the ‘Face-to-face’ style medium of
communication.
Marketing Dictionary
• Above the Line Advertising for which a payment is made and for which
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 - a unique combination which
the name or logo of the product or service should evoke in the mind of
the audience.
• Brown Goods Electrical goods such as TVs, videos, stereo systems etc,
used for home entertainment. So called because they were originally
cased in bakelite, a brown plastic.
Marketing Dictionary
• Buzz marketing uses 'word-of-mouth' advertising: potential customers
pass round information about a product. See also 'viral marketing‘
• 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. Similar law covers logos
and brand names
• Copywriting Creative process by which written content is prepared for
advertisements or marketing material
Marketing Dictionary
• Customer Relationship Management (CRM) The coherent management
of contacts and interactions with customers. (This term is often used as if
it related purely to the use of IT, but IT should in fact be regarded as a
facilitator of CRM.)
• Decision Making Unit (DMU) The team of people in an organisation who
make the final buying decision
• Differentiation Ensuring that products and services have a unique
element to allow them to stand out from the rest
• DINKY Double Income No Kids Yet - a demographic grouping
Marketing Dictionary
• Direct Marketing All activities which make it possible to offer goods or
services or to transmit other messages to a segment of the population by
post, telephone, e-mail or other direct means
• Electronic Point of Sale (EPOS) System A system whereby electronic tills
are used to process customer transactions in a retail outlet
• Endorsement Affirmation, usually from a celebrity, that a product is good
• FMCG Fast Moving Consumer Goods - such as packaged food, beverages,
toiletries, and tobacco
Marketing Dictionary
• Focus Groups A tool for market research where small groups of
customers are invited to participate in guided discussions on the topic
being researched
• Grey Marketing (also called Parallel Importing) The illicit sale of
imported products contrary to the interests of a holder of a trademark,
patent or copyright in the country of sale
• Guerrilla Marketing The strategy of targeting small and specialised
customer groups in such a way that bigger companies will not find it
worthwhile to retaliate
• Logo A graphic, usually consisting of a symbol and/or group of letters,
that identifies a company or brand
Marketing Dictionary
• Macro Environment The external factors which affect a company’s
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 by obtaining a
larger market share in an existing market - see 'market share' and
'market development‘
• Micro Environment The immediate context of a company's operations,
including such elements as suppliers, customers and competitors compare 'macro environment‘
• Personal Selling One-to-one communication between seller and
prospective purchaser
Marketing Dictionary
• PIMS Profit Impact of Marketing Strategies: a US database supplying data
such as environment, strategy, competition and internal data with
respect to 3000 business. This data can be used for benchmarking
purposes
• Point of Sale (POS) (also called Point of Purchase) The location, usually
within a retail outlet, where the customer decides whether to make a
purchase. See also 'EPOS - Electronic Point of Sale'
• Portfolio (and Portfolio Analysis) The set of products or services which a
company decides to develop and market
• Product Life Cycle A model describing the progress of a product from the
inception of the idea, via the main period of sales, to its eventual decline
Marketing Dictionary
• Promotional Mix The components of an individual promotional
campaign, which are likely to include advertising, personal selling, public
relations, direct marketing, packaging, and sales promotion
• Relationship Marketing The strategy of establishing a relationship with
the customer which continues well beyond the first purchase.
• Return on Investment (ROI)/Return on Capital Employed (ROCE) The
value that an organisation derives from investing in a project
• Skimming Setting the original price high in the early stages of the
product life cycle in an attempt to get as much profit as possible before
prices are driven down by increasing competition
Marketing Dictionary
• Supply Chain The network of suppliers, manufacturers and distributors
involved in the production and delivery of a product
• Unique Selling Preposition (USP) The benefit that a product or service
can deliver to customers that is not offered by any competitor: one of the
fundamentals of effective marketing and business
• Value Preposition The set of qualities of a good or service that allows it
to fulfill the customer's needs and desires, as opposed to simply
benefiting the seller
• White Goods Large electrical devices for domestic use, such as fridges,
freezers and dishwashers. Used to be cased in white enamel, hence the
name