S.Basavaraj Ireland - Description of Marketing Marketing is the science of meeting the needs of a customer by providing valuable products to customers by utilizing the expertise of the organization, at same time, to achieve organizational goals. According to The American Marketing Association.Classical marketing is often described in terms of the four “P’s, which are: Product – what goods or services are offered to customers Promotion – how the producer communicates the value of its products Price – the value of the exchange between the customer and producer Placement – how the product is delivered to the customer.

1. MarketingMarketing
Preview
3. What product can I sell where
at what price?
2. How are markets analysed?
1. What is marketing?
4. Have my marketing measures
been effective?

2. Definition
MARKETING includes all the activitiesMARKETING includes all the activities
needed to direct the flow of goods andneeded to direct the flow of goods and
services from producers to consumers.services from producers to consumers.
 at least two parties
 each has something to offer
 must be able to communicate
 must be able to deliver
 parties must be free to accept
or reject offers

3. Roles of marketing
But Also:
• product development
(brand and product managers)
• packaging
(packaging designers)
• pricing
(pricing specialists)
• distribution
(sales personnel)
Main Roles:
• advertising (advertising and promotion managers)
• selling (sales representatives/sales force)

4. Marketing Process
Three Elements:
1. Market analysis
(Who will buy?)
2. Marketing-mix planning
(What? Where? How much? How?)
3. Marketing control
(Have we been successful?)

5. 1. Market analysis (STP)
a) Segmentation
segmentniche
individuals
b) Targeting: Who are my customers?
c) Positioning: What is my main selling point?

6. = developing a tactics to achieve strategic aims
Elements:
a) Product
b) Price
c) Place
d) Promotion
Aim: to make customers from the target group buy
2. Marketing mix planning (4 P)

7. = looking back at the entire process to find out whether or not
it was successful
Why control?
– planning is no guarantee for profit
– markets change constantly
– strategies not always effective
Tools:
a) Annual-plan control
b) Profitability control
c) Efficiency control
d) Strategic control
3. Evaluation and control

8. 1. Market analysis (STP)
 Segmentation
 Targeting
 Positioning
2. Marketing-mix planning (4 P)
 Product
 Place
 Price
 Promotion
3. Marketing control
 Annual-plan control
 Profitability control
 Efficiency control
 Strategic control
Review :

9. a) Product
 Now A Days:
- products have a life cycle
- product range is constantly expanded
- find out what target market desires
Consequence is adjustment of:
Product development
 Traditional Economies: same things
produced and consumed
- public relations
- finance
- personnel administration
- research & development
- production

10. Packaging
• create clear message
• create credibility
• involve emotionally
• motivate
• invite user loyalty
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Branding

11. b) Price
Pricing strategies:
1. Market determines
the price
2. Price as an expression
of quality
3. Price as a method of
gaining market share
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12. c) Place (distribution)
Production site Warehouse Wholesaler
Retailer
- factory outlet
- mail order house
- internet
- TV shopping
- door-to-door selling
consumer
back

13. c) Promotion
Aims:
 communicate with customers
 influence customers
4 Major Tools:
1. Sales force
2. Advertising
3. Sales promotion
4. Public relations
back

14. 1. Sales force
 they personalize the promotion process
Representatives who advertise for and sell products
effective at selling complex goods
most expensive promotion
back

15. 2. Advertising
Presents a reason to buy a product/service
Media:
back

16. 3. Sales promotion
 attracts brand switchers
 is a short-term incentive
(Anreiz) to buy a product/service
Techniques:
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3. two for one
2. loyalty reward points
1 price reduction

17. 4. Public relations
Does not aim to increase sales directly but tries to
boost the image of the company
back
- contests
- community events
- charitable events
- ecological projects
Techniques:
- press conferences
- foundations

18. a) Annual-plan control
Tools:
1. Sales analysis
(Did we sell as much as we planned?)
2. Market-share analysis
(Have we lost or gained market share?)
3. Marketing expense-to-sales analysis
(Did the marketing efforts pay?)
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19. b) Profitability control
back
• many cheap products and many customers
Do we have more earnings than expenditures?
Strategies:
Aim:
Which of my products is the most profitable?
• few expensive products and few customers

20. c) Efficiency control
Example: Avon Lady (sales representative)
 how many doors in what time?
 how many products sold?
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Are my marketing methods profitable?

21. d) Strategic control
back
Is my marketing program effective
over a long period of time?
 marketing philosophy
 information policy
- enough advertisement?
- enough promotion?
Positioning USA: “big and powerful”
after few years: Is this positioning still OK?

22. 1. Sales analysis
Comparison  sales goals (100 units)
 actual sales (20 units)
_____________
discrepancies???
reasons
 better product of the competitors
 decline of the economic situation
 wrong calculation
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23. 2. Market share analysis
Analysis of the competition on the market
Rates of selling beauty cases
28%
42%
13%
17%
Gucci
Joop
Dolce & Gabbana
Kuniberg
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24. 3. Marketing expense-to-sales analysis
– How much did my marketing activities cost?
– What sales numbers have these activities generated?
Example: expenses (costs): € 200.000
sales revenues: € 200.001
=> We have a problem!!!
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