Transcript The Marketing Mix

Understanding the
Market for your
Idea
Kim Jones
What we’ll be covering

What’s marketing?

Why marketing?

Questions, questions, questions

Applied common sense?

Best laid plans?

Delivering customer value

Value your customers

Future framework
So, what’s marketing then?

Function or department?

Advertising and selling?

Approach to doing business?
So, what’s marketing then?
“basic function is to attract and retain
customers at a profit” (Drucker)
“matching a company’s capabilities and the
wants of customers in order to achieve the
objectives of both parties” (McDonald)
“..turning simple ideas into strategy” (Trout)
So, what’s marketing then?
It’s the whole business - as seen by the
customer:
“There is only one valid definition of a business
purpose – to create a customer.
What the business thinks it produces is not of
first importance … what the customer thinks he
is buying, what he considers value is decisive
– it determines what a business is, what it
produces and whether it will prosper” (Drucker)
A marketing orientation

Fundamental focus on customers

Understanding customers via feedback & research

Understanding competitive situation

Encourages innovation, adaptation & proactivity
Striving for competitive advantage produces
better products or services


Understanding, controlling & planning your business
What fires up the Dragons?
Realistic, defensible forecasts
 Detailed market knowledge – trends, segments, barriers

Competitive knowledge – who, how long, shares?
 Value – company, idea/offer, contacts
 Pricing strategy, detailed costs, profit potential

Product distinctiveness – easy to imitate/ protect?
 Target customer strategy
 Risk assessment/ contingency planning
 You – credibility, experience, passion, listening

and that’s Marketing!
Some good questions for you…

What problem does your idea resolve?

Who would be interested in it and why?

What do they currently do/ buy?

Why should they change/ try your idea?

Where will customers be able to buy?

When will they be most interested?

How will they get to know about it?

How much/ how regularly/ what price?

How effective – how likely to come back?

Who will copy your idea and when?
Towards finding some answers
Research your opportunity:
1. Define the target customers
- the most likely to be interested
- segmentation (avoid going too broad)
- describe “bulls-eye” customer in detail
2. Decide if you have a market
- secondary data
- library, internet, Business Link, Uni
3. Get to know it
- influencers/ innovators?
- why buy, when, how often, trends?
- check out the competition (mystery shop)
Towards finding some answers
4. Review all your assumptions
Pull it apart and reconstruct:
- name, presentation, format
- price structure
- segmentation and target audience
- forecast volumes
- test? (pros and cons)
5. Evaluation/ on-going assessment
- quantified objectives
- benchmarking
- customer feedback
- avoid wishful thinking
- be a good listener; commonsense
Positioning
Segmentation - where company competes
Positioning – how it competes
About providing customers with a salient reason
to choose your offering over a competitor’s –
i.e. your competitive advantage.
“starts with a product, a service, a company
or even a person – but positioning isn’t what
you do to a product, it’s what you do to the
mind of the prospect.”
Positioning maps
Luxury
X
Mercedes
X
X
Lexus
BMW
Performance
Safety
X
X
Audi
Volvo
X
Saab?
Used?
X
Alfa
Everyday
The Marketing Mix
Aim: “right product, right place,
right price, and right time” Right?
Product
Price
Place
Promotion
+
People
Process
Physical evidence
The marketing mix
Product

Quality - specification and management

Key suppliers

Features and benefits

Patents

Name, packaging/ presentation

Range/ sizes

On-going development
The marketing mix
Price

Pricing strategy (premium, value etc)

Approach - cost based; competitor, market?
Value - not only financial; “cost” of continuing
to live with the problem?


Cost elements/ value added

Monitor competition

Discount structure?

Easy to lower!
The marketing mix
Place
 Geography/ market/ customer - segment

Internet

Direct channels

Own retail outlet

Own/ contract sales force

Wholesalers, retailers, agents

Franchising
The marketing mix
Promotion

Positioning strategy and budget

Advertising

Public Relations

Sales promotion

Direct marketing

Website

Personal selling

Trade fairs and exhibitions

Letterheads, brochures

Word of mouth
The services marketing mix
Services are different: intangibility,
inseparability variability, perishability


Three more P’s :

your people represent the company
the way you do business says a lot
about the company/ brand

your service delivery location also
makes a statement (website, retail
outlet, workshop, call centre, vehicle)

Needs an integrated approach!
Company
Internal Marketing
Enabling promises
Employees
External Marketing
Interactive Marketing
Keeping promises
Making promises
Customers
Building a Brand
Our input into
Product
Place
Price
Promotion
People
Process
Physical evidence
Brand
Distinctive
reputation
Functional &
emotional values
Consistency and
trust
Customers’
output from
Self image
Quality
Value
Expected
performance
Differentiation
Benefits of brand building

Customer loyalty – recognition/ reinforcement

Achievement of distribution coverage

Potential for price premium

Higher profitability

Less vulnerable to competitive threats

Easier to introduce new products/ extensions

Equity value
The marketing plan
Mission and Objectives
Defines scope, activities &
aspirations of the company


Market focused

Defines boundaries

Explains purpose

States core values
The marketing plan
Marketing audit
Answer basic questions:
- Where are we now?
- Where do we want to go?
-How should we get there?
Two sections:
External audit
PEST, Market, Competition
Internal audit
- Operating results
- Marketing mix
- Evaluation, research, feedback
SWOT analysis
Source
Strengths
Weaknesses
matching
strategies
conversion strategies
Opportunities
Threats
Internal
(controllable)
External
(uncontrollable)
Objectives & Strategy

An objective is what you want to achieve

A strategy is how you plan to achieve it

Objectives should be measurable

Strategy should involve:
- Target markets
- Competitors
-
Marketing mix
Implementation plans & budgets
Develop each strategy into specific action
plans with clear targets


Activities costed & time-tabled

Indicate any additional resources needed

Dependencies/ contingencies recognised

Programmes coordinated as necessary

Ensure evaluation

Try doing it for key competitors
Key customer strategies too
Who buys?
Who’s involved in the decision?
How do they buy?
What are their choice criteria?
Where do they buy?
When do they buy?
Where can we add value?
Build customer relationships

High costs of recruiting new customers

Life-time value

Knowledge of existing customers

Opportunity to cross/up sell

Build trust/ social bonds

Develop customer loyalty

Maintain database!
Delivering customer value
Performance
Increasing
loyalty
Delighted
Desired
Very satisfied
Satisfied
Dissatisfied
Zone of
tolerance
Decreasing
loyalty
Keep on planning!
Where are we now?
Diagnosis
Why are we here?
If we continue, where will we be?
Where could/ should we be?
How do we get there?
Are we getting there?
Do we need to correct our course?
Have we reached our goal?
Prognosis
Analysis
Objectives
Strategy &
Tactics
Implementation
Evaluation & Control
Great implementation!
Understanding
Persuasion
Selling
Negotiation
Conviction
Communication
Listening
Tenacity
Execution
To summarise…

Market/ segmentation analysis

Research – not just family and friends!

Positioning – how do you want to be regarded?

Marketing mix – the toolbox

Branding – the ultimate aim

Planning – take control/ evaluation

Customer relationships – build the future

Orientation – from the outset
Presentation Written By: Keith Burton - BBS