1. DA010 - Professional Diploma in Public Relations - COMM6026EP
Marketing Public Relations: Principles and
Practice (2012/01)
Lecture 2
Marketing Principles
Developed and Presented by
Roy Ying, Msc., B.Comm.
Note: Pictures used in this power point file
is for academic Purpose only 1

2. Is Marketing just the 4Ps?
2

3. Class Discussion
• Product
– What is the most important factor in deciding what
product to sell?
• Place
– What is the most important factor in deciding where to
sell your product?
• Price
– What is the most important factor in deciding how
much you can charge for your product?
• Promotion
– What is the most important factor in deciding what
you need to do in promoting your product?
3

4. There is the 5 Ps
4

5. This is essentially the 5P Model
PEOPLE
5

6. There’s the 7Ps in
service marketing
• 4 Ps plus…
• People are crucial in service delivery. The best food may
not seem equally palatable if the waitress is in a sour
mood. A smile always helps.
• Processes are important to deliver a quality service.
Services being intangible, processes become all the
more crucial to ensure standards are met with.
• Physical evidence affects the customer’s satisfaction.
Often, services being intangible, customers depend on
other cues to judge the offering. This is where physical
evidence plays a part.
6

7. 7

8. What’s 9 P?
• Purpose – Know the “why and what.”
• People – Engaging with customers and their
engagement with you is priceless. You can learn
so much.
• Processes – It should include a strategic
marketing plan which feeds into the business
plan for the company, and a marketing budget.
• Philosophy – You also often share your
philosophies with the world.
• Packaging – More and more important as the
global market place is now your competitor.
8

9. Which marketing mix to choose?
• It depends on how much control do you
have on your business scope
9

10. Class Discussion
• Identify one type of company, and name
one example, in each of the company
orientations
– Production
– Sales
– Innovation
– Marketing
10

11. A simple marketing system
11

12. Sales vs Marketing Orientation
Sales:
• Heavy reliance on promotion activity to sell
products/services the company wanted to make;
• Aggressive selling tactics;
• Promotion consumes a large share of the
company’s overall budget;
• Inside-out thinking (If we build it they will come);
and
• Short-term planning.
12

13. Sales vs Marketing Orientation
Marketing:
• Consumers/Customers less willing to be persuaded;
• Consumers/customers are knowledgeable about the
market and the products/services available;
• Companies identify what customers want and tailor all
business towards those wants/needs (in an efficient
manner);
• Marketing vs. just selling (i.e. management of the 4 Ps,
not just promotions);
• Product input before selling (Alpha testing, beta testing,
trials, etc); and
• Medium to long-term planning
13

14. Chief Marketing Officers Care
About Customers Most…
14

15. Customer Focus Marketing Mix
• Customer is the main focus point of the marketing mix.
• Consumer-oriented activity: Marketing mix’s purpose is
to give satisfaction and pleasure to consumers.
• Four Ps of sellers correspond to four Cs of customers:
Four Ps in the marketing mix represent the sellers' view
of the marketing tools available for influencing buyers.
15

16. Interview with Coca Cola’s CMO –
customer engagement
16

17. Consumers remind us every day that Coke
is THEIR brand…
On Facebook Billion we’ve got:
Facebook “2 alone photo
-uploads photos - nearly 70
4,600+ a month
-million a day…” USA TODAY 8/09
95+ videos
- 500,000+ “likes”*
- 90,000+ “comments”*
(*just in the last 6 months)
17

18. General comments about the brand and
other Coke products are top topics…
Positive Conversation Tones
“Coca-Cola is the best drink!!!! I love it...”
“ALWAYS COCA-COLA!! funny add from “Biggest General
Fan” Comments
Coca-Cola with Grant Theft Auto!” Other
Coke
Advertising Products
Ideas/
Suggestions
Consumptio “DIET COKE IS WHERE IT'S AT
n Habits/ YA'LL!!!! :)”
Addicted
Low Post High Post
Availability
Volume Volume
“i am the # 1 fan. just ask anyone who knows
me.”
“I adore cola! I can drink it every day :D”
“Anyone know if 'Kosher Coke'
is available in Colorado??”
“. . . Bring back the glass bottle it makes a difference”
Negative Conversation Tones
18

19. Our “Fans First” Approach: We will be Everywhere Our
Consumers are in an Authentic “Member of the Community –
Non BIG Brand Way”
Majority
of our
efforts
Enabling Fans to Comment, Upload Strategically targeted messaging in
and Consume THEIR own consumer support of our brand objectives
generated brand related content
Our approach is designed to foster equitable engagement to earn
sustainable relationships that are authentic, delightful and reciprocal.
Being a Fan, Friend or Follower does not mean that they opted in to have
advertising blasted at them.
19
19

20. Coca-Cola “official” Social Communities…
20
20

21. How to connect customers?
21

22. Listen to your customers
• Customer surveys
22

23. How Starbucks do research?
• What consumers think about Starbucks
• How consumers feel about Starbucks by
asking 4 ‘P’s of marketing
• E.g. We ask about affordability
of Starbucks to find out
consumers perception on
pricing of Starbucks
products
23

24. 4 ‘P’s: Price
• Pricing approaches
Value-Based Pricing (good service, quality); NOT Cost-Based Pricing
(mark-up too high)
Competition-based pricing e.g. The Coffee Connoisseur
• Comparing with competitors
Similar price ranges
More benefits to impress consumers
• Product mix pricing strategies
Product-Line Pricing (Coffees, Teas, Ice-blended drinks)
Different prices due to different cost prices
• Price adjustment strategy
Psychological Pricing (higher-priced products = higher quality)
• Consumer responses on Starbucks’ Pricing
Affordability of Starbucks
Paying for Quality or Quantity
Whether Starbucks is value-for-money
24

25. 4 ‘P’s: Promotion
• Marketing communications (promotion) mix
• Advertising
Reminder e.g. location of new outlet
Informative e.g. new flavors of beverage
Persuasive e.g. guaranteed satisfaction for consumers
• Sales promotion
Advertisement specialties, contests, premiums and coupons
• Public Relations
Community relationship e.g. Salvation Army donation
Invited celebrities
• Direct Marketing
Facebook
• Marketing Communication Objectives
• Consumer responses on Starbucks’ Promotion
Whether more promotion is needed
Type of promotion
Type of advertising tool
25

26. 4 ‘P’s: Place
• Number of Channel levels
Uses direct marketing channel: Starbucks outlets
Also uses indirect marketing channel: Bottled
frappuccino
• Channel Intensity
Selective distribution: Kraft, Pepsi
• Number of outlets, locations, etc.
• Consumer responses on Starbucks’ Place
Convenience of Starbucks
Whether ambience of location of Starbucks affects
patronage
Starbucks to be intensive or selective distribution
26

27. 4 ‘P’s: Product
• Levels of Product
Core benefit, Actual product, Augmented product
• Classification of Consumer Product
Shopping products (SQPS)
Limited extensive advertising; available in limited number of stores
• Brand Positioning
Product attribute: Organic coffee
Product Benefit: Caffeine
• Brand Sponsorship
Licensed brand
• Brand Development
Line extension: Short, Tall, Grande and Venti
Brand extension: Merchandises e.g. tumblers, bottles and mugs
• Consumer Responses on Starbucks’ Product
Starbucks is the preferred brand
Quality of Starbucks products: 8/10
27
Packaging of Starbucks products: 6/10

28. Conclusions &
Recommendations
• Starbucks coffee is a premium
coffeehouse that focuses on quality in the
way that it position itself.
• More advertising
• Update packaging
• Stronger branding needed
Create distinctive product benefit
Or expand brand extension line / Go into
multi-branding
28

29. Collecting Feedback
• Pre-launch events
29

30. Social Media Campaign
• 1,000 free breakfasts
30

31. Group Project
• Due date: Lecture 10
• Group Presentation
• All group members earn the same score.
• A hard copy as well as a soft copy of PPT
• Oral presentation should be 15 – 20 min
long.
• Team 1 will ask team 2 a couple of
questions, who will in turn ask team 3….the
last team will ask team 1 questions.
31

32. Group Project - Topic
• Pick one brand from
• Each team must
pick a different
company.
32
Full report available at: http://www.millwardbrown.com/BrandZ/default.aspx

33. Group Project – Content
requirements
Part I
• Conduct a review of the company’s
marketing public relations activities
– News articles about the brand
– Exhibitions that they or their vendors
participate in
– Popularity of the spokespersons of the
company
– Special events organized by the company
33

34. Group Project – Content
requirements
Part II
• Give recommendations on how you think
the company can do a better job in 2012
so that the brand will be worth more, and
that consumers are willing to pay a
premium to buy their products.
34

35. Group Project – Grading criteria
1. Research effort on selected company
2. Demonstration of understanding of MPR
concepts
3. Feasibility of recommendation
4. Presentation skills (i.e., content planning,
slides preparation, use of visual aids,
and delivery techniques)
35

36. Dos and Don’ts in presentation
• Don't think about "delivering a speech".
• Don't try to recite from memory.
• Don't read word-for-word from a stack of papers.
• Instead, think about "talking to people”.
• Use visuals to help you explain, not as
substitutes for explanation.
• Be aware of the time!
• Take questions in the middle, not at the end?
36

37. As a presenter, you want to ask:
•• What do
What do
•• What’s your
What’s your you want
you want
point?
point? them to
them to
remember?
remember?
•• If IIam one
If am one
of the
of the
•• What
What attendees,
action do II attendees,
action do will II want
will want
want them
want them to stay?
•• Why did
Why did to stay?
to take?
to take? they bother
they bother
to come
to come
listen to me?
listen to me?
37

38. What has Steve Jobs done right?
38

39. Why were you able to pay attention?
39

40. What was his main objective?
40

41. This is what NOT to do!
41