2. Marketing – What is it?
The Marketing Mix
The Environment
The Marketing Plan
The Promotion Focus
3.
4. 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
5. 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
6. 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
7. “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”
8. “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
9. 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
10. 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.
11. 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
12.
13. The 4 P’s
The variables that the marketing manager can
control in order to best satisfy customers in the
target market
Target
Market
2. Price
1. Product
4. Promotion
3. Place
The physical product
or service offered to
the consumer.
Channels of distribution
to ‘get’ the product to the
consumer.
Producer-Wholesaler-
Retailer-Customer
Financial aspects of the
process; price levels,
profit margins etc.
The communication and
selling to potential
customers
14. 5. People
Employees are in
direct contact with
customers and
therefore must be
considered the in the
developing the
marketing mix
15. 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.
16. 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
21. 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
22. 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
23. 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
24. 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
25. 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.
26. 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)
27. 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
28. 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'
32. 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
35. 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.
36. The key stages of the plan are contained
under the acronym AOSTC
1. Analysis
2. Objectives
3. Strategies
4. Tactics
5. Control.
38. 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 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
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 market
Price war
Innovative product/service from competitor
New regulations
Increased trade barriers
Taxation on product / service
39. 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)
40. 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
41. 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’
42. 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
43. 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
“You can’t make a buck, without spending a buck”
47. PUSH
Marketing efforts
targeted at the
middlemen and the
salesforce
PULL
Marketing efforts
targeted at consumers
•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
CHANNELS
OF
DISTRIBUTION
48. 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.
Personal
Selling
Advertising
PR
Direct
Mail
Sales
Promotion
Events
Sponsorship
Personal
Selling
Advertising
PR Direct
Mail
Sales
Promotion
Events
Sponsorship
49. ‘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
50. Above the Line Advertising for which a payment is made
and for which commission is paid to the advertising
agency.
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.
51. Buzz marketing uses 'word-of-mouth' advertising:
potential customers pass round information about a
product.
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
52. 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
53. 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
54. 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
55. 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
56. 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
57. 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
58. 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
