Transcript Table 2.2 UK consumer expenditure

Business / Marketing Minor
Marketing Fundamentals
M21439
Session 3:
Operational Objectives & The Marketing
Mix
Key Concepts
• Difference between strategic and operational
marketing
• Marketing objectives
• Marketing mix as a tactical toolkit
• Different theorists marketing mixes
Strategic Marketing
Lambin (1997) identified that the role of
strategic marketing is to ‘lead the firm towards
attractive economic opportunities; that is,
opportunities that are adapted to its
resources and know-how and offer a potential
for growth and profitability”
Marketing Objectives
A marketing objective is a statement of what
is to be expected from marketing activities. It
specifies the results expected from marketing
efforts.
For example, To increase sales of the product in the UK by
10% per annum in real terms each year for the next 3
years.
Marketing Objectives
May relate to any of the following:
-
Selling existing products into existing
markets
-
Selling existing products into new markets
-
Selling new products into existing markets
-
Selling new products into new markets
Ansoff’s Matrix
Products
Current Products
Current
Markets
New Products
Market Penetration
Product Development
Market Development
Diversification
Markets
New
Markets
Source: Harding,S. & Long,T. (1998) MBA Management Models UK:Gower
Question:
Give examples of organisations
pursuing the four strategies
defined by Ansoff?
For example, Birds Eye are currently relaunching its
frozen food range across Europe to try and penetrate
the market more successfully and thus increase sales.
Marketing Programmes for
Implementation
This is the detailed operational information
which allows the marketing plan to be
carried out in the short to medium term.
Operational Marketing
Lambin (1997) identified operational
marketing as “an action orientated process
which is extended over a short to medium
term planning horizon and targets existing
markets and segments”.
The Marketing Mix
The marketing mix is the tactical toolkit
deployed by marketing managers in order to
implement a company’s agreed marketing
strategy.
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin, p.245
Unique Selling Proposition
Baker (2000) states that
“in devising this unique selling proposition or
bundle of the benefits the marketer has 4
basic ingredients which he/she can combine
in an almost infinite number of ways to
achieve different end results.”
Source: Baker,M.J. (2000) Marketing Strategy & Management, 3rd ed, London:Macmillan Business
McCarthy’s Marketing Mix
PRODUCT
PRICE
Variety, Quality, Design,
Features, Brand name,
Packaging, Services
List price, Discounts,
Allowances, Payment
Period, Credit terms
Target
Customers
Intended
Positioning
PROMOTION
Advertising, Personal
Selling, Sales promotion,
Public relations
PLACE
Channels, Coverage,
Assortments, Locations,
Inventory, Transportation,
Logistics
Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9th ed,USA:Prentice Hall
Dibb et al (2001)
Marketing
Mix –
5 Dimensions
Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4th ed, USA:Houghton Mifflin, p.245
Boom & Bitner (1981) 7 Dimension
Definition
PRICE
PRODUCT
PROMOTION
PEOPLE
Focus on satisfying
customers’ needs
profitably
PROCESSES
PLACE
PHYSICAL
EVIDENCE
Source: Palmer,A. (2000) Principles of Marketing USA:Oxford University Press
Question:
Why do different theorists favour
different marketing mixes?
Product
“Anything that can be offered to a market for
attention, acquisition, use, or consumption
that might satisfy a want or need. It includes
physical objects, services, persons, places,
organisations and ideas.”
Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9th ed, Prentice Hall, p7
Branding
Adcock (2000) suggests that
“a brand is not a product that just happens to
have high awareness, nor is it a recognisable
name or logo, although both these are often
present. It is so much more, it is a powerful
stimulus that conjures up a complex image
and level of expectation about itself and what
it can do for a consumer.”
Source: Palmer, A. (2000) Principles of Marketing UK:Oxford
Packaging
An important part of the product that not only
serves a functional purpose, but also acts as
a means of communicating product
information and brand character.
Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2nd ed, UK:FT/Prentice Hall
Question:
Give examples of products that
you purchase often & would like to
purchase?
What is it about them that makes you
consumer/desire them?
Definition of Price
The amount of money charged for a product
or service, or the sum of the values that
consumers exchange for the benefits of
having or using the good or service.
Source: Kotler.P & Armstrong.G (2001) Principles of Marketing 9th ed, USA:Prentice Hall
Question:
When is a price too expensive?
Give example.
Channel Structure for Consumer
Goods
PRODUCER
Agent
Retailer
Wholesaler
Wholesaler
Retailer
Retailer
CONSUMER
Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2nd ed, UK:FT/Prentice Hall
Channel Structure for
Organisational Markets
MANUFACTURER
Agent
Distributor
Agent
Distributor
USER
Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2nd ed, UK:FT/Prentice Hall
Question:
Why do supermarkets in the UK
have so much power over the
channel?
Has the introduction of Walmart in
the UK changed things?
Elements of the Promotional Mix
Sales Promotion
Advertising
PROMOTIONAL MIX
Direct Marketing
Personal Selling
Public Relations
Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2nd ed, UK:FT/Prentice Hall
Question:
Which promotional mediums have
you been subjected to today?
Physical Evidence
Physical evidence is important to guide
buyers of intangible services through the
choices available to them.
This evidence can take a number of forms.
Source: Palmer, A (2000) Principles of Marketing UK:Oxford
Question:
Why do some organisations offer
‘flash cars’ or health club
memberships as part of a
renumeration package?
People
“People decisions are particularly important to
the marketing of services. In service sectors,
people planning can assume great
importance where staff have a high level of
contact with customers.”
Source: Palmer, A (2000) Principles of Marketing UK:Oxford
Question:
Do people matter?
If so why?
Question:
In a marketing orientated
organisation who is responsible
for the customer?
Process
Process decisions are again important to
marketers in the service sector. For example,
a customer of a restaurant is deeply affected
by the manner in which staff serve them.
Source: Palmer, A (2000) Principles of Marketing UK:Oxford
Aspects of Process
“Friendliness of staff and the flows of
information affect the customer’s perception
of the service product offer. Appointment or
queuing systems become part of the service.
Ease or difficulty of payment can enhance or
spoil the consumption of the service.”
Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrell.O.C. (2001) Marketing – Concepts & Strategies
US:Houghton Mifflin
Question:
Give examples of organisations
who have made the process of
purchase more flexible. How?