School Of Forestry And Rural Industries


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School Of Forestry And Rural Industries

  1. 1. Hilkka Jankkila, Principal Lecturer, ROVANIEMI POLYTECHNIC, School of Forestry and Rural Industries <ul><li>Lectures = basic concepts and processes of </li></ul><ul><ul><li>Marketing ( 3 x 3 h ) </li></ul></ul><ul><ul><li>Product development ( 1 x 3 h ) </li></ul></ul><ul><ul><li>Quality management ( 1 x 3 h ) </li></ul></ul><ul><li>Group working with practices ( 10 h ) </li></ul><ul><li>Excursions / notes / analysis ( 24 h ) </li></ul><ul><li>Exam and evaluation: ( 4,5-6 Hungarian credits ) </li></ul><ul><li>-Active participating in the lectures + group reports; Hungarian and Finnis </li></ul><ul><li>students together prepare reports ( 2-3 groups ), see “Practises 1 and 2 “ </li></ul><ul><li>-The Hungarian students give exam to professor Horvath Gabor </li></ul><ul><li>-The Finnish students have a written test and more practice in F inland </li></ul>MARKETING -Jankkila 2004 -
  2. 2. MARKETING – PRODUCT DEVELOPMENT – QUALITY MANAGEMENT <ul><li>Literature in English : </li></ul><ul><li>Lancester, Geoff - Reynolds, Paul. 2004. </li></ul><ul><li> “ Marketing “ </li></ul><ul><li>Kotler, Philip – Amstrong, Gary. 2004. </li></ul><ul><li>“ Principles of Marketing “ </li></ul>MARKETING -Jankkila 2004 -
  3. 3. THE MARKET <ul><li>A environment where the demand and supply meets each other and the marketing occurs </li></ul><ul><li>A group of people, who needs and wants products/services/experiences/information and who have buyingpower to satify their needs </li></ul><ul><li>The set of all actual and potential buyers of a product or service ( Kotler-Amstrong 2004 ) </li></ul>MARKETING - Jankkila 2004 -
  4. 4. MARKETING -Jankkila 2004 - MARKETING ” A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others” – Kotler-Amstrong 2004; Principles of marketing CONCEPTS *needs *wants *demands, *marketing offers = products, services, experiences *value *satisfaction *exchanges *transactions *relationships *markets
  5. 5. MARKETING <ul><li>> A comprehensive, well planned social and managerial process </li></ul><ul><li>> Market and environment analysis to get information about </li></ul><ul><li>demand, cutomers, competition </li></ul><ul><li>> Studying the needs and wants of the customers/ creating needs </li></ul><ul><li>> Developing products satifying those needs and wants </li></ul><ul><li>> Pricing </li></ul><ul><li>> Presentation ( information, Public Relations, sales promotion, advertising, profiling ) </li></ul><ul><li>> Distribution </li></ul><ul><li>> Personnel, Service process, Physical Evidence </li></ul><ul><li>OBJECTIVES AND TARGETS </li></ul><ul><li>> The business is economically profitable </li></ul><ul><li>> The customers are satisfied </li></ul>MARKETING -Jankkila 2004 -
  6. 6. THE MARKETING PROCESS MODEL - Lancester-Reynolds 2004 - <ul><ul><li>Marketing Sales Buyer </li></ul></ul><ul><ul><li>recearch forecasting behavior </li></ul></ul><ul><ul><li>SUPPLIER CUSTOMER </li></ul></ul><ul><ul><li>Product Price Distribution Promotion Personal Segmentation </li></ul></ul><ul><ul><li> Channels Logistics selling targeting and </li></ul></ul><ul><ul><li> positioning </li></ul></ul><ul><ul><li> Information Public Relations </li></ul></ul>MARKETING -Jankkila 2004 - Advertising Sales promotion
  7. 7. MARKETING AND PRODUCT DEVELOPMENT <ul><li>Market recearch - Feedback </li></ul><ul><li>MARKET - CUSTOMERS </li></ul><ul><li>Administration MARKETING Financing </li></ul><ul><li>PROMOTION </li></ul><ul><li>PRODUCT DISTRIBUTION SERVICE PRICING </li></ul><ul><li>Ideas Channels Logistics - Strategies </li></ul><ul><li>Legis- Ideageneration - Price - </li></ul><ul><li>lation Ideascreening defining </li></ul><ul><li>Concept development </li></ul><ul><li>Compe- Business planning Production Packing </li></ul><ul><li>titors and evaluation - procedures -materials </li></ul><ul><li>Product development - capacity -procedures </li></ul><ul><li>Test market - quality assurance -the needs of </li></ul><ul><li>Launch - raw materials customers, retails and wholesalers, </li></ul>MARKETING -Jankkila 2004 -
  8. 8. MARKETING ALONGSIDE OTHER ELEMENTS OF BUSINESS <ul><li> Production </li></ul><ul><li> Marketing </li></ul><ul><ul><ul><li>Finance CUSTOMER Recearch and </li></ul></ul></ul><ul><ul><ul><li>development </li></ul></ul></ul><ul><li> Marketing </li></ul><ul><li>Human secource </li></ul><ul><li> management </li></ul>MARKETING -Jankkila 2004 -
  9. 9. MARKETING MANAGEMENT ORIENTATIONS - Kotler-Amstrong 2004 - <ul><ul><li>PRODUCTION CONSEPT </li></ul></ul><ul><ul><li>Consumers favor the products which are available and highly </li></ul></ul><ul><ul><li>affordable. Focus on improving production and distribution </li></ul></ul><ul><ul><li>efficiency </li></ul></ul><ul><li>PRODUCT CONSEPT </li></ul><ul><li>Consumers favor products that offer the most quality, </li></ul><ul><li>performance and features. Focus on continous product </li></ul><ul><li>improvements </li></ul><ul><li>SELLING CONSEPT </li></ul><ul><li>Consumers do not buy enough unless the firm undertakes a </li></ul><ul><li>large-scale selling and promotion effort </li></ul>MARKETING -Jankkila 2004 -
  10. 10. MARKETING MANAGEMENT ORIENTATIONS - Kotler-Amstrong 2004- <ul><li>MARKETING CONSEPT </li></ul><ul><li>Customer focus and value = paths to sales and profits. Customer-centred sense and respond. Find the right products for customers. </li></ul><ul><li>CUSTOMER RELATIONSHIP MANAGEMENT = CRM </li></ul><ul><li>Create profitable relationships with the customers. Customer database management activity. Achieve customer’s loyalty </li></ul><ul><li>Bacic realtionship, full partnership </li></ul><ul><li>Financial and social benefits, frequency marketing </li></ul><ul><li>programs, club marketing programs </li></ul>MARKETING -Jankkila 2004 -
  11. 11. MARKETING MANAGEMENT ORIENTATIONS - Kotler-Amstrong 2004- S elling ( 1 )and marketing ( 2 )concepts contrated: Starting point Focus Means Ends 1 Factory Existing Selling Profits through products and promotion sales volume 2 Market Customer Intergated Profits through needs marketing customer satisfaction MARKETING -Jankkila 2004 -
  12. 12. - <ul><li>SOCIETAL MARKETING CONSEPT </li></ul><ul><li>Kotler-Amstrong 2004 – </li></ul><ul><li>organization / firm should determine the needs / wants / interests of target markets </li></ul><ul><li>deliver the desired satisfactions more effeciently and effective than the competitors do </li></ul><ul><li>in a way that maintains or improves the consumer´s and society´s well being </li></ul><ul><li>*Quality management and assurance ! </li></ul><ul><li> *Environmental quality management ! </li></ul>MARKETING -Jankkila 2004
  13. 13. SOCIETAL MARKETING <ul><li> SOCIETY </li></ul><ul><li> Human welfare </li></ul><ul><li> </li></ul><ul><li> SOCIETAL </li></ul><ul><li> MARKETING </li></ul><ul><li> CONCEPT </li></ul><ul><li>CONSUMERS COMPANY </li></ul><ul><li>Want satisfaction Profits </li></ul><ul><li>Conflicts between consumer shot term wants </li></ul><ul><li>and consumer long-run welfare?? </li></ul>MARKETING -Jankkila 2004 -
  14. 14. MARKETING ENVIRONMENT <ul><li>MICRO ENVIRONMENT </li></ul><ul><li>1. Elements over which a firm has control ( marketing mix = 4 + 3 Ps ) </li></ul><ul><li>or which it can influence in order to gain information that will help it </li></ul><ul><li>in its marketing operations –Lancester-Reynolds 2004- </li></ul><ul><li>2. Actors close to firm/company that affect its ability to serve the </li></ul><ul><li>customers = company, suppliers, marketing intermediaries, </li></ul><ul><li>customer markets, competitors - Kotler-Amstrong 2004 - </li></ul><ul><li>MACRO ENVIRONMENT </li></ul><ul><li>-all forces and agencies external to the marketing firm itself </li></ul><ul><li>>close to firm = customers, suppliers, agents, distributors, other </li></ul><ul><li>íntermediaries, competing firms, public - Lancester-Reynolds 2004-, </li></ul><ul><li>>wider external = legal, cultural, economic,demographictechnological </li></ul><ul><li>subenvironments, political - (Kotler-Amstrong & lancester-Reynolds - </li></ul>MARKETING -Jankkila 2004 -
  15. 15. MARKETING ENVIRONMENT <ul><li>COMPANY </li></ul><ul><li>>top management, finance, recearc&development, </li></ul><ul><li>purchasting, operations, accounting </li></ul><ul><li>SUPPLIERS </li></ul><ul><li>>raw material suppliers, </li></ul><ul><li>INTERMEDIARIES </li></ul><ul><li>>firms that helps the company to promote, sell, distribute the goods to </li></ul><ul><li>final buyers; resellers, phycical distribution firms, marketing service </li></ul><ul><li>agencies, financial intermediers </li></ul>MARKETING -Jankkila 2004 -
  16. 16. MARKETING ENVIRONMENT <ul><li>CUSTOMERS </li></ul><ul><li>>consumer markets = individuals and households > personal </li></ul><ul><li>consumption </li></ul><ul><li>>business markets = buy goods and services for further processing or </li></ul><ul><li>for use in their product process </li></ul><ul><li>>reseller markets = buy goods and services to resell at a profit </li></ul><ul><li>>government markets = buy goods and services to produce public </li></ul><ul><li>services or transfer them to people who need them </li></ul><ul><li>>international markets = buyers in other countries </li></ul><ul><li>COMPETITORS </li></ul><ul><li>>other firms </li></ul>MARKETING -Jankkila 2004 -
  17. 17. MARKETING ENVIRONMENT <ul><li>PUBLICS </li></ul><ul><li>> groups that have an actual or potential interest in or impact on </li></ul><ul><li>an firm`s ability to achieve its objestives </li></ul><ul><li>-financial publics = banks, funds, investment houses, stocholders … </li></ul><ul><li>-media publics = newpapers, television stations, editorial opinion … </li></ul><ul><li>-government publics = product safety, truth of advertising .. </li></ul><ul><li>-citizen action publics = consumer organisations, environmental </li></ul><ul><li>groups, minority groups … </li></ul><ul><li>-local publics = community organizatios … </li></ul><ul><li>-general public and the public´s attitudes and images of company </li></ul><ul><li>-internal publics = workers, manaagers, directors … </li></ul>MARKETING -Jankkila 2004 -
  18. 18. MARKETING ENVIRONMENT Macro environment <ul><li>DEMOGRAPHIC </li></ul><ul><li>-human population’s size, density, location, age, gender, </li></ul><ul><li>race, occupation … </li></ul><ul><li>ECONOMIC </li></ul><ul><li>-factors that affect consumer buying power and spending </li></ul><ul><li>patterns = income changes, income distribution, classes, </li></ul><ul><li>changing consumer spending patterns </li></ul><ul><li>NATURAL </li></ul><ul><li>-natural recources that are needed as inputs by </li></ul><ul><li>marketers or that are affected by marketing activities </li></ul>MARKETING -Jankkila 2004 -
  19. 19. MARKETING ENVIRONMENT <ul><li>TECHNOLOGICAL </li></ul><ul><li>-froces that create neeeew technologies, creating new product and market opportunities </li></ul><ul><li>POLITICAL </li></ul><ul><li>-increasing legislation regulating business </li></ul><ul><li>-laws, government agencies, pressure groups, ethics and socially </li></ul><ul><li>responsible actions ( social codes and rules) </li></ul><ul><li>-protect compnies from each other, protect consumers from unfair </li></ul><ul><li>business practices </li></ul><ul><li>CULTURAL FORCES </li></ul><ul><li>>institutions and forces that affect ssocietys´s bacic values, </li></ul><ul><li>perceptions, preferenc es and behaviors </li></ul>MARKETING -Jankkila 2004 -
  20. 20. BUYER BEHAVIOUR Focus on the consumer buyer behaviour <ul><li>The acts of individuals directly involved in obtaining and using economic goods and services, including the decision process that precede and determine these acts- Lancester-Reynolds- </li></ul><ul><li>Consumer buyer behaviour - the buying behaviour of final consumers = individuals and households who buy goods and services for personal consumption –Kotler-Amstrong- </li></ul><ul><li>Consumer = most important of the marketing environment </li></ul><ul><li>=> the firm must know : WHAT, WHEN, HOW, WHY </li></ul><ul><li>the customer buyes </li></ul>MARKETING -Jankkila 2004 -
  21. 21. MODEL OF BUYER BEHAVIOUR –Kotler-Amstrong <ul><li>MARKETING AND BUYER’S BUYER’S </li></ul><ul><li>OTHER STIMULI BLACK BOX RESPONSES </li></ul><ul><li>Marketing Other Buyer Buyer Product choice </li></ul><ul><li>Product Economic character decision Brand choice </li></ul><ul><li>Price Technologicál istics process Dealer choice </li></ul><ul><li>Place Political Purchace timing </li></ul><ul><li>Promotion Cultural Purchace amount </li></ul>MARKETING –Jankkila 2004 - a
  22. 22. FACTORS INFLUENCING CONSUMER BEHAVIOUR – Kotler-Amstrong 2004 - <ul><li>CULTURAL SOCIAL PERSONAL PSYCHOLOGICAL </li></ul><ul><li>Culture Reference Age and life- Motivation </li></ul><ul><li>Subculture groups cycle stage Perception </li></ul><ul><li>Social class Family Occupation Learning </li></ul><ul><li>Roles and Economic Beliefs and </li></ul><ul><li>status situation attitudes </li></ul><ul><li> Lifestyle </li></ul><ul><li> Personality and </li></ul><ul><li> self-concept </li></ul><ul><li> For the most marketers can not control such factors – </li></ul><ul><li>but they must be taken into account – </li></ul>MARKETING -Jankkila 2004 -
  23. 23. Hierarcy of needs by Maslow <ul><li>SELF </li></ul><ul><li>ACTUALISATION </li></ul><ul><li>Creativity fulfillment, Pursue </li></ul><ul><li>RESPECT AND SELF-ESTEEM </li></ul><ul><li>Achiement qualifications </li></ul><ul><li>SOCIAL NEEDS </li></ul><ul><li>Recognition and belonging, friends , family </li></ul><ul><li>SAFETY NEEDS ; </li></ul><ul><li>Protection, security, stability, Freedom of fear </li></ul><ul><li>PHYSIOLOGICAL NEEDS ; Hunger, Thirst, shelder, warmth </li></ul>MARKETING -Jankkila 2004 -
  24. 24. BUYERS DECISION PROCESS –Kotler-Amstrong- Lancester-Reynolds - <ul><li>PROBLEM / NEED RECOGNITION </li></ul><ul><li>INFORMATION SEARCH </li></ul><ul><li>EVALUATION OF ALTERNATIVES </li></ul><ul><li>PURCHASE DECISION </li></ul><ul><li>POSTPURCHASE BEHAVIOUR </li></ul>MARKETING -Jankkila 2004 -
  25. 25. STAGES IN THE ADOPTION PROCESS – NEW PRODUCT –Kotler-Amstrong- Lancester-Reynolds- <ul><li>1. AWARENESS </li></ul><ul><li>2. INTEREST/INFORMATION </li></ul><ul><li>3. EVALUATION </li></ul><ul><li>4. TRIAL </li></ul><ul><li>5. ADOPTION </li></ul><ul><li>6. POST-ADOPTION CONFIRMATION </li></ul>MARKETING -Jankkila 2004 -
  26. 26. DIFFUSION PROCESS OF INNOVATIONS Rogers, Kotler-Amstrong, La´ncester-Reynolds <ul><li> 34 % 34 % </li></ul><ul><li>Early Late </li></ul><ul><li> majority majority </li></ul><ul><li>2,5 % 13,5 % 16 % </li></ul><ul><li>Innovators Early Laggards </li></ul><ul><li> adopters </li></ul>MARKETING -Jankkila 2004 -
  27. 27. SEGMENTATION–TARGETING– –Kotler-Amstrong 2004 - <ul><li>MARKET SEGMENTATION = </li></ul><ul><li>- Dividing the market into distinct groups with distinct </li></ul><ul><li>needs, characteristics or behaviour who might require </li></ul><ul><li>separate products or markettin mixes </li></ul><ul><li>- geographic, demographic, psychographic, behavioral </li></ul><ul><li>TARGET MARKETING = </li></ul><ul><li>- The process of evaluating each market segment’s </li></ul><ul><li>attractiveness and selecting one or more segments </li></ul><ul><li>- undifferentiated=massmarketing, ifferentiated=segmented </li></ul><ul><li>marketing, concentrated=niche marketing, </li></ul><ul><li>micromarketing =local or individual marketing </li></ul>MARKETING -Jankkila 2004 -
  28. 28. POSITIONING <ul><li>MARKET POSITIONING </li></ul><ul><li>Arranging for a product to occuby a clear, distinctive and </li></ul><ul><li>desirable place relative to competing products in the minds of </li></ul><ul><li>target consumers </li></ul><ul><li>PRODUCT POSITION </li></ul><ul><li>The Way the products is defined by consumers on important </li></ul><ul><li>attributes - the place the product occupies in consumers’ mind </li></ul><ul><li>relative to competing products </li></ul><ul><li>CONSUMERS ORGANIZE PRODUCTS INTO CATEGORIES </li></ul><ul><li>The consumers do not reevaluate the products every time they make a </li></ul><ul><li>buying decision > they organize products, services and companies into </li></ul><ul><li>categories and POSITION them in their minds </li></ul><ul><li>MARKETING MIX EFFORTS SUPPORT THE POSITIONING STRATEGY ! </li></ul>MARKETING -Jankkila 2004 -
  29. 29. BUSINESS IDEA <ul><li>WHAT TO WHO </li></ul><ul><li>Products, services, experiences The market </li></ul><ul><li>experinces -customers needs/wants </li></ul><ul><li>quality -market opportunities </li></ul><ul><li>price -segmentation </li></ul><ul><li>-competition situation </li></ul><ul><li>HOW IMAGES/POSITION </li></ul><ul><li>- enterprice´s structure PROFILES </li></ul><ul><li>- way of doing/actioning, manners - product/service/firm/ </li></ul><ul><li>-marketing concept and processes managening profile </li></ul>MARKETING -Jankkila 2004 -
  30. 30. FROM IDEA TO ACTION From customer centred businessidea to action -Rope 1989 - <ul><li>SEGMENTATION COMPETITORS </li></ul><ul><li>-segment determining -present/future </li></ul><ul><li>-needs of the segment </li></ul><ul><li>BUSINESS IDEA DESICIONS FIRM at present </li></ul><ul><li>-what, to who, how, ímages -know-how </li></ul><ul><li> -recources </li></ul><ul><li>BUSINESS IDEA REALIZATION </li></ul><ul><li>-internal marketing SOCIETY </li></ul><ul><li> -economical/technical/ </li></ul><ul><li>EXTERNAL MARKETING attitude changes </li></ul><ul><li>-profiling </li></ul><ul><li>-profiling </li></ul>MARKETING -Jankkila 2004 -
  31. 31. MARKETING MIX -Kotler-Amstrong and Booms-Bitner <ul><li>The set of controllable tactical marketing tools </li></ul><ul><li>Everything the firm can do to influence the demand of its products </li></ul><ul><li>Sellers view Customers view </li></ul><ul><li>4 Ps: 4 Cs: </li></ul><ul><li>> Product > Customer solution </li></ul><ul><li>> Price > Customer cost </li></ul><ul><li>> Place > Convenience </li></ul><ul><li>> Promotion > Communication </li></ul><ul><li>3 more Ps: </li></ul><ul><li>> People </li></ul><ul><li>> Process </li></ul><ul><li>> Phycical evidence </li></ul>MARKETING -Jankkila 2004 -
  32. 32. 4 Ps <ul><li>PRODUCT PRICE </li></ul><ul><li>Variety, Quality List price, Discounts </li></ul><ul><li>Design, Features Allowances, Payment </li></ul><ul><li>Brand name, Packaging period, Credit terms </li></ul><ul><li>Services TARGET </li></ul><ul><li> CUSTOMERS </li></ul><ul><li> INTENDED POSITIONING </li></ul><ul><li>PROMOTION PLACE </li></ul><ul><li>Advertising Channels, Coverage </li></ul><ul><li>Personal selling Assortments, Locations </li></ul><ul><li>Sales promotion Inventory, Transportation </li></ul><ul><li>Public Relations Logistics </li></ul>MARKETING -Jankkila 2004 -
  33. 33. The 7 – Ps – Extended Marketing Mix –Booms-Bitner - <ul><li>Marketing Strategy tool that expands the number of controllable variables from the four in the original Marketing Mix Model to seven. </li></ul><ul><ul><ul><li>People ( explicit faktor ) </li></ul></ul></ul><ul><ul><ul><li>Process ( explicit faktor ) </li></ul></ul></ul><ul><ul><ul><li>Phycical Evidence ( implicit faktor ) </li></ul></ul></ul><ul><li>The traditional Marketing Mix model was primarily directed and useful for tangible products. </li></ul><ul><li>The 7-Ps model is more useful for services industries and arguably also for knowledge-intensive environments. </li></ul><ul><li>  </li></ul>MARKETING -Jankkila 2004 -
  34. 34. 7- Ps <ul><li>People </li></ul><ul><li>All people directly or indirectly involved in the consumption of a </li></ul><ul><li>service are an important part of the extended marketing mix. </li></ul><ul><li>Knowledge Workers, Employees, Management and other Consumers </li></ul><ul><li>often add significant value to the total product or service offering. </li></ul><ul><li>Process </li></ul><ul><li>Procedure, mechanisms and flow of activities by which services are </li></ul><ul><li>consumed (customer management processes) </li></ul><ul><li>Physical Evidence </li></ul><ul><li>The ability and environment in which the service is delivered </li></ul><ul><li>both tangible goods that help to communicate and perform the service </li></ul><ul><li>and intangible experience of existing customers and the ability of the </li></ul><ul><li>business to relay that customer satisfaction to potential customers.   </li></ul>MARKETING -Jankkila 2004 -
  35. 35. 7 Ps <ul><li>Booms and Bitner also suggest that Place in a service-oriented company includes the accessibility of the service, and that Promotion in a service-oriented company includes the input of front-line service personnel. </li></ul>MARKETING -Jankkila 2004 -
  36. 36. PRODUCT / SERVICE Kotler-Amstrong 2004, Lancester-Reynolds 2004 <ul><li>PRODUCT = Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need </li></ul><ul><li>>industrial goods = installations, assessories, raw materials, component parts and materials, supplies </li></ul><ul><li>>consumer goods =convenience goods, shopping goods, speciality goods, unsought goods </li></ul><ul><li>SERVICE = Any activity or benefit that one party can offer to another that is esssenntially intangible and does not result in the ownership of anything </li></ul><ul><li>EXPERIENCE = memorable, personal, take place in minds </li></ul>MARKETING -Jankkila 2004 -
  37. 37. THREE LEVELS OF PRODUCT –Kotler-Amstrong- <ul><li> AUGMENTED PRODUCT Delivery Credit After </li></ul><ul><ul><ul><ul><ul><li> sale </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li> ACTUAL PRODUCT service </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Brand CORE Features </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>name BENEFIT </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Core product </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Quality Design </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Packing </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Installation Warranty </li></ul></ul></ul></ul></ul>MARKETING -Jankkila 2004 -
  38. 38. PRODUCT/SERVICE CLASSIFICATIONS – Kotler-Amstrong 2004 - <ul><li>CONSUMER PRODUCT </li></ul><ul><li>> bought by final consumer for personal consumption </li></ul><ul><li>CONVENIENCE PRODUCT </li></ul><ul><li>> consumer product that the customer usually buys frequently with </li></ul><ul><li>a minimum of comparison and buying efforts ( fast food, newspaper ) </li></ul><ul><li>SHOPPING PRODUCT </li></ul><ul><li>> consumer good that the customer in the selection and comparison </li></ul><ul><li>process and purchase buys ( suitable, quality, price, style ) </li></ul><ul><li>SPECIALTY PRODUCT </li></ul><ul><li>> consumer product with unique characteristics or brand identifications </li></ul><ul><li>( specific brands and types of cars, cameras, phones, clothes, wines ) </li></ul>MARKETING -Jankkila 2004 -
  39. 39. PRODUCT/SERVICE CLASSIFICATIONS <ul><li>UNSOUGHT PRODUCT </li></ul><ul><li>> consumer product that the consumer either does nor know about or knows about but does not normally think of buying ( life insurance, consulting ) </li></ul><ul><li>INDUSTRIAL PRODUCT </li></ul><ul><li>> product bought by individual or organizations for further </li></ul><ul><li>processing or use in conducting business </li></ul><ul><li>1. Materials and parts ( raw materials, manufactured materials ) </li></ul><ul><li>2. Capital items ( installations and accessory equipments ) </li></ul><ul><li>3. Supplies and services ( operating supplies, repair items, </li></ul><ul><li>business services, business advisory services ) </li></ul>MARKETING -Jankkila 2004 -
  40. 40. MARKETING -Jankkila 2004 -
  41. 41. PRODUCT DEVELOPMENT STRATEGIES -Kotler-Amstrong, Lancester-Reynolds <ul><li>ANSOFF MATRIX ( Igor Ansoff 1957 ) </li></ul><ul><li>New markets Existing markets </li></ul><ul><li>New products True innovators Product development </li></ul><ul><li> Risky strategy strategy </li></ul><ul><li>Existing products Market development Market penetrations </li></ul>MARKETING -Jankkila 2004 -
  42. 42. NEW PRODUCT DEVELOPMENT –Kotler-Amstrong, Lancester-Reynolds - <ul><li>ACQUISITION </li></ul><ul><li>> By buying a whole company, a papent or a licence to </li></ul><ul><li>produce someone else’s product </li></ul><ul><li>NEW PRODUCT DEVELOPMENT </li></ul><ul><li>> innovative, original products </li></ul><ul><li>> replacement products, product improvements, product </li></ul><ul><li>modifications </li></ul><ul><li>> Imitative products ”me to” products </li></ul><ul><li>> Relaunced, products, new brands </li></ul>MARKETING -Jankkila 2004 -
  43. 43. NEW PRODUCT DEVELOPMENT STAGES -Kotler-Amstrong, Lancester-Reynolds <ul><li>IDEA GENERATION </li></ul><ul><li>IDEA SCREENING </li></ul><ul><li>CONCEPT DEVELOPMENT AND TESTING </li></ul><ul><li>MARKETING STRATEGY </li></ul><ul><li>BUSINESS ANALYSIS </li></ul><ul><li>PRODUCT DEVELOPMENT </li></ul><ul><li>TEST MARKETING </li></ul><ul><li>COMMERCIALIZATION </li></ul>MARKETING -Jankkila 2004 -
  44. 44. NEW PRODUCT PROCESS … <ul><li>ÍDEA GENERATION </li></ul><ul><li>*The systematic search for new-products ideas </li></ul><ul><li> *Internal = new-product managers, committees, departments, </li></ul><ul><li>venture teams </li></ul><ul><li>*External = customers, competitors </li></ul><ul><li>IDEA SCREENING </li></ul><ul><li>*Go or drop decisions- spot good ideas and drop poor ideas </li></ul><ul><li>as soon as possible </li></ul>
  45. 45. NEW-PRODUCT PROCESS … <ul><li>CONCEPT DEVELOPMENT AND TESTING </li></ul><ul><li>*Product concept = A detailed version of the new-product </li></ul><ul><li>idea stated in meaningsful consumer terms </li></ul><ul><li>*Concept testing = testing a new-product concept wit a group of tarket consumersto find out if thr concepts have strong consumer appeal. </li></ul><ul><li>MARKETING STRATEGY </li></ul><ul><li>*The target market; positioning, sales, market share, profit goals </li></ul><ul><li>*Outlines of the product; price, distribution, marketing budget </li></ul><ul><li>*Long run sales, profit goals, marketing mix strategy </li></ul>MARKETING -Jankkila 2004 -
  46. 46. NEW-PRODUCT PROCESS … <ul><li>BUSINESS ANALYSIS </li></ul><ul><li>* A review of the sales, costs and profits projections for a new product to find out whether these factors satisfy the firms’s objectives </li></ul><ul><li>PRODUCT DEVELOPMENT </li></ul><ul><li>Developing the product concept intoa phycical product in </li></ul><ul><li>order to ensure that the product idea can be turned into a workable product </li></ul>MARKETING -Jankkila 2004 -
  47. 47. NEW PRODUCT PROCESS …. <ul><li>PRODUCT DEVELOPMENT </li></ul><ul><li>*prototypes, product appraisal tests </li></ul><ul><li>*product refinement and modification by feedback, </li></ul><ul><li>> development cost increace sharply ! </li></ul><ul><li>TEST MARKETING </li></ul><ul><li>*The product and marketing program are tested in more </li></ul><ul><li>realistic market settings –Standard, Controlled, Simulated </li></ul><ul><li>Problem = competitors see your product ! </li></ul><ul><li>- Test marketing does not quarantee succees ! </li></ul><ul><li>COMMERCIALIZATION </li></ul><ul><li>*Introducing a new-product into the market – </li></ul><ul><li>- few new-product ideas succeed ! </li></ul>MARKETING -Jankkila 2004 -
  48. 48. PRODUCT LIFE CYCLE MATRIX by Barksdale-Harris <ul><li>PIONEERING GROWTH MATURITY DECLINE </li></ul><ul><li>-sales- stars cash cows war horses </li></ul><ul><li>high market high market high market </li></ul><ul><li> share, high share, low hare, negative growth growth growth </li></ul><ul><li>infants problem children dogs/cash dogs dodos </li></ul><ul><li>low market share low market share low market share </li></ul><ul><li>high growth low growth negative growth </li></ul><ul><li>Entry - time - Exit </li></ul>MARKETING -Jankkila 2004 -
  49. 49. INDIVIDUAL PRODUCT / SERVICE DECISIONS – Kotler-Amstrong - <ul><li>Product attributes </li></ul><ul><li>Branding </li></ul><ul><li>Packaging </li></ul><ul><li>Labeling </li></ul><ul><li>Product support services </li></ul>MARKETING -Jankkila 2004
  50. 50. PRODUCT QUALITY – Kotler-Amstrong- <ul><li>” When our customers come back and our products do not” </li></ul><ul><li>Ability of a product to perform its functions </li></ul><ul><li>Characteristics of a product or service that satisfy customer’s stated or implied needs </li></ul><ul><li>Is closely linked to customer value and satisfaction </li></ul><ul><li>One of the marketer’s major positioning tools </li></ul><ul><li>Has a direct impact on product or service performance </li></ul><ul><li>Freedom of defects – is it enough ? </li></ul>MARKETING -Jankkila 2004 -
  51. 51. ATTRIBUTES OF PRODUCT – Kotler-Amstrong - <ul><li>Core benefit of the product </li></ul><ul><li>Product features; </li></ul><ul><ul><li>stripped-down model </li></ul></ul><ul><ul><li>more features as a tool of differentiating the product from competitors </li></ul></ul><ul><li>Product and Desing </li></ul><ul><li>Trade mark </li></ul><ul><li>Brand = Manufacturer’s brand, Private/Store brand, Licencing, Co-Branding, Multibrands, New Brands, </li></ul><ul><li>With the help of Customer Relationship Marketing ! </li></ul>MARKETING -Jankkila 2004
  52. 52. BRAND – BRANDING –Kotler-Amstrong - <ul><li>A name, term, sign, symbol, design </li></ul><ul><li>or a combination of these </li></ul><ul><li>Intended to identify the goods or services of one seller or group of another sellers </li></ul><ul><li>To differentiate these goods from these of competitors </li></ul><ul><li>Consumer view a brand is an important part of product – may add value </li></ul><ul><li>Branding = Perhaps the most distinctive skill of professional marketers in their ability to create, maintain, protect and enhance brands of their product and services </li></ul>MARKETING - Jankkila 2004
  53. 53. PACKAGE – PACKAGING – Lancaster-Reynolds , Kotler-Amstrong-- <ul><li>The end part of the product development; an external appereance </li></ul><ul><li>A part of the promotion </li></ul><ul><li>The activities of designing and producing te container or wrapper for the product </li></ul><ul><ul><li>primary container </li></ul></ul><ul><ul><li>secondary package </li></ul></ul><ul><ul><li>package for storing </li></ul></ul><ul><ul><li>labeling = printed information </li></ul></ul>MARKETING -Jankkila 2004
  54. 54. THE FUNCTIONS OF PACKAGING -Lancester-Reynolds- <ul><li>Protect and preserve its contents </li></ul><ul><li>Help the distribution of the goods via a number of logistics intermediaries from the factory/producer to customer; transfering, stocking </li></ul><ul><li>Selling; the promotional appeal, design, information, trademark, brand </li></ul><ul><li>For conceniency of users; storage of contents, suitable sizes of package </li></ul><ul><li>To conform the statutory and voluntary regulations in providing a list of contents/weight/the origin of product, E-numbers, ingrediants </li></ul>MARKETING -Jankkila 2004
  55. 55. LABELING – PRODUCT SUPPORT SERVICES – <ul><li>LABEL </li></ul><ul><li>= identifies and promote the product or brand, </li></ul><ul><li>= describes several things of the good; who, where, when made, contents, how to use, price per unit, open dating, nutritional labeling, health-related term </li></ul><ul><li>SUPPORT SERVICES </li></ul><ul><li>= Augmented parts of product </li></ul>MARKETING -Jankkila 2004 -
  56. 56. PRODUCT LINE / MIX <ul><li>PRODUCT LINE </li></ul><ul><li>= A group of products that are closely related together; function in similar manner, sold to same customer group, marketed through same types of outlets, given price ranges ”Nike athletic apparel” Nokia telecommunication products ” </li></ul><ul><li>PRODUCT MIX – PRODUCT ASSORTIMENT </li></ul><ul><li>= Set of all product lines and items which a particular seller </li></ul><ul><li>offers for sale </li></ul><ul><li>*widht = number of different product lines </li></ul><ul><li>*lenght = total number of items </li></ul><ul><li>*depht = number of versions of each product in the line </li></ul><ul><li>*consistency = closeness of items ( distribution channels, </li></ul>MARKETING -Jankkila 2004 -
  57. 57. PRICE – PRICING –Kotler-Amstrong, Lancecter-Reynolds - <ul><li>PRICE = </li></ul><ul><li>The amount of money charged for a product or service or </li></ul><ul><li>the sum of the values the customers exchange for the </li></ul><ul><li>benefits of having or using the product or service </li></ul><ul><li>The means whereby an organisation covers costs of all activities </li></ul><ul><li>The major factor affecting buyer choice – usually </li></ul><ul><li>A flexible element in the marketing mix – can change quickly </li></ul><ul><li>DYNAMIC PRICING = </li></ul><ul><li>Charging different prices depending on individual </li></ul><ul><li>customers and situations </li></ul>MARKETING -Jankkila 2004 -
  58. 58. PRICING PERCPECTIVES – Lancecter-Reynolds - <ul><li>ECONOMIST’s approach </li></ul><ul><li>The price is the means through which supply and demand is brought into equilibrium </li></ul><ul><li>ACCOUNTANTS’s approach </li></ul><ul><li>The price covers the costs and make profits </li></ul><ul><li>MARKETER’s approach </li></ul><ul><li>Effect of price on the organisation’s competitive </li></ul><ul><li>market position </li></ul>MARKETING -Jankkila 2004
  59. 59. FACTORS AFFECTING PRICING DECISIONS –Kotler-Amstrong,-- <ul><li>INTERNAL EXTERNAL </li></ul><ul><li>FACTORS P FACTORS </li></ul><ul><li>Marketing objectives R Nature of the market </li></ul><ul><li>Marketing mix strategy I and demand </li></ul><ul><li>Costs C Competition </li></ul><ul><li>Organisational I Other environmental </li></ul><ul><li>considerations N factors ( economy, G resellers, government </li></ul>MARKETING -Jankkila 2004
  60. 60. PRICING IN DIFFERENT TYPES OF MARKETS –Kotler-Amstrong, Lancecter-Reynolds – <ul><li>PURE COMPETITION </li></ul><ul><li>-Many buyers and sellers trading in uniform </li></ul><ul><li>commodity – many fully informed buyers and sellers of </li></ul><ul><li>similar products </li></ul><ul><li>-No single seller or buyer has much effect on the going </li></ul><ul><li>market price > going pricing </li></ul><ul><li>PURE MONOPOLY </li></ul><ul><li>A single producer of a product – no substitudes for product – free price setting </li></ul><ul><li>OLIGOPOLISTIC COMPETITION </li></ul><ul><li>Few sellers who are highly sensitive to each other’s pricing and marketing strategies </li></ul>MARKETING -Jankkila 2004
  61. 61. MAJOR CONSIDERATIONS IN SETTING PRICE –Kotler-Amstrong- <ul><li>Product Competitor’s Consumer </li></ul><ul><li>costs prices and other perception of </li></ul><ul><li> internal and external of value </li></ul><ul><li> factors </li></ul><ul><li>PRICE PRICE </li></ul><ul><li>FLOOR CELLING </li></ul><ul><li>No profits below No demand </li></ul><ul><li>this price above this price </li></ul>MARKETING -Jankkila 2004
  62. 62. COST-BASED PRICING “Cost-plus” <ul><li>Adding a standard markup ( profit ) to the costs of the product </li></ul><ul><li>Product driven pricing </li></ul><ul><li>>Fixed costs = do not vary with production or sales level </li></ul><ul><li>Variable costs = vary diriectly with the level of production </li></ul><ul><li>Total costs = fixed costs + variable costs </li></ul><ul><li>PRODUCT COST PRICE VALUE CUSTOMER </li></ul>MARKETING -Jankkila 2004
  63. 63. TARKET PROFIT PRICING –Kotler-Amstrong- <ul><li>Setting price to break even on the costs of making and marketing a product or </li></ul><ul><li>Setting price to make a target profit </li></ul><ul><li>Target pricing uses the concept of a break-even chart – </li></ul><ul><li>it shows the total cost and total revenue expected at different sales volume levels TOTAL REVENUE </li></ul><ul><li>Costs </li></ul><ul><li> Target profit </li></ul><ul><li> TOTAL COSTS </li></ul><ul><li> FIXED COSTS </li></ul><ul><li>Sales volume in units </li></ul>MARKETING -Jankkila 2004
  64. 64. VALUE-BASED PRICING –Kotler-Amstrong 2004- <ul><li>Setting price based on buyer’s perceptions of value rather than on the seller’s costs </li></ul><ul><li>Offering just the right combination of quality and good service at the fair price </li></ul><ul><li>Pricing begins with analyzing consumer’s needs / wants and value perceptions and the price is set to match consumer’s percieved value > design the product </li></ul><ul><li>CUSTOMER VALUE PRICE COST PRODUCT </li></ul>MARKETING -Jankkila 2004
  65. 65. COMPETITION-BASED PRICING –Kotler-Amstrong- <ul><li>Setting prices based on the price that competitors charge for similar products </li></ul><ul><li>Going rate pricing </li></ul><ul><li>Price represents the ”collective wishdom” of the industry sector when demand elasticity is hard to measure </li></ul>MARKETING -Jankkila 2004
  66. 66. PRICING STRATEGIES –Kotler-Amstrong - <ul><li>MARKET-SKIMMING PRICING </li></ul><ul><li>>Setting high price for a new product to skim maximum </li></ul><ul><li>revenues from the segment willing to pay the high price. </li></ul><ul><li>-Company makes rewer but more profitable sales </li></ul><ul><li>-Product’s quality and image must support the high price </li></ul><ul><li>-Enough buyers must want the product at that price </li></ul><ul><li>-Competitors should not be able to enter the market and </li></ul><ul><li>undercut the price </li></ul><ul><li>MARKET-PENETRATION PRICING </li></ul><ul><li>>Setting a low price for a new product in order to attract a </li></ul><ul><li>large number of buyers and a large market share </li></ul>MARKETING -Jankkila 2004
  67. 67. PRICING STRATEGIES –Kotler-Amstrong - <ul><li>PRICE ADJUSTMENT STRATEGIES </li></ul><ul><li>> Discount = price reduction > Allowance = promotional money </li></ul><ul><li>BY-PRODUCT PRICING - Setting a price for by-products in order to make the main product’s price more competitive </li></ul><ul><li>SEGMENTED PRICING – two or more prices at same product </li></ul><ul><li>PSYCHOLOGICAL PRICING – price says something of the product </li></ul><ul><li>REFERENCE PRICE - prices that buyers carry in their minds </li></ul><ul><li>PROMOTIONAL PRICING – temporarily, increase short-run sales </li></ul><ul><li>GEOGRAPHICAL PRICING – different price on different regions / or not </li></ul><ul><li>INTERNATIONAL PRICING – prices in the </li></ul><ul><li>international market </li></ul>MARKETING -Jankkila 2004
  68. 68. PRICING > PRICE <ul><li>+VARIABLE COSTS / product unit : </li></ul><ul><li>raw materials, other variable costs, labour costs, </li></ul><ul><li>costs connected wit labour costs ( social costs, assurance ) </li></ul><ul><li>+COVER = fixed costs, charges, rates, incometaxes, profit </li></ul><ul><li>= NET RRICE </li></ul><ul><li>+VALUE ADDED TAX </li></ul><ul><li>=SELLING PRICE </li></ul><ul><li>+SELLING REWARDS </li></ul><ul><li>+FREIGHTS THAT WILL BE PAYD </li></ul><ul><li>+DISCOUNTS PROVISOS, </li></ul><ul><li>= TOTAL PRICE </li></ul>MARKETING -Jankkila 2004
  69. 69. CHANNELS OF DISTRIBUTION - Kotler-Amstrong, lancester-Reynols- <ul><li>DISTRIBUTION </li></ul><ul><li>Channels /Supply chain Phycical distribution </li></ul><ul><li>Agents Logistics </li></ul><ul><li>Wholesalers </li></ul><ul><li>Retailers Right place ! </li></ul><ul><li>= intermediaries Right time ! </li></ul><ul><li>Suitable amounts ! </li></ul><ul><li>With greatest ease ! </li></ul><ul><li>Favourable costs ! </li></ul>MARKETING -Jankkila 2004
  70. 70. MARKETING CHANNEL = DISTRIBUTION CHANNEL –Kotler-Amstrong- <ul><li>A set of interdependent organizations involved in the process </li></ul><ul><li>of making a product or service available for use or </li></ul><ul><li>consumption by consumer or business user </li></ul><ul><li>SUPPLY CHAIN = VALUE DELIVERY NETWORK, </li></ul><ul><li>-Information; gathers and distribute information </li></ul><ul><li>-Promotion; developes and spread information about offers </li></ul><ul><li>-Matching; shapes and fits the offer to the buyer’s need </li></ul><ul><li>-Negotiation; reach the agreement of price and </li></ul><ul><li>-Phycical distribution and stocking </li></ul><ul><li>-Financing, invoicing </li></ul><ul><li>-Risk taking / dealing </li></ul>MARKETING -Jankkila 2004
  71. 71. DIRECT – INDIRECT MARKETING CHANNELS -K otler-Amstrong, Lancester-Reynolds- <ul><li>DIRECT CHANNEL = no intermediaries </li></ul><ul><li>INDIRECT CHANNEL = one or more intermediaries </li></ul><ul><li>AFFECTING TO THE CHANNEL DECISIONS : </li></ul><ul><li>* Numbers of potential customers in the market </li></ul><ul><li>* How concentrated or dispersed the customers are </li></ul><ul><li>* How much each will buy in a given period = buying sensity </li></ul><ul><li>* Costs including transportation, warehousing, stockholding </li></ul><ul><li>* Product imago positioning, market share objective </li></ul><ul><li>* The need of by-services </li></ul><ul><li> * Absolute price of the product and the profit objective </li></ul><ul><li> * Firm’s recources </li></ul>MARKETING -Jankkila 2004
  72. 72. DIRECT DISTRIBUTION INDIRECT Small Amount of customrs Large Rarely Density of purchase Often Large Size of one purchasing Small Large Profit marginal Small Concentrated The buyer placement Disperced High Complexity of product Low No need Need of by-services Yes Yes Completely product No lines MARKETING -Jankkila 2004
  73. 73. MULTICHANNEL DISTRIBUTION SYSTEM –Kotler-Amstrong- <ul><li>Catalogs, telephone, internet, home-selling Customer 1 </li></ul><ul><li>Own resailer places /warehouses Customer 2 </li></ul><ul><li>Retailers Customer 3 </li></ul><ul><li> Distributors Dealers Business segment 1 </li></ul><ul><li>Sales force Business segment 2 </li></ul>MARKETING -Jankkila 2004 PRODUCER
  74. 74. NUMBER OF MARKETING INTERMEDIARIES –Kotler-Amstrong- <ul><li>INTENSIVE DISTRIBUTION </li></ul><ul><li>-stocking the product in as many outlets as possible </li></ul><ul><li>-usually convenience products </li></ul><ul><li>EXCLUSIVE DISTRIBUTION </li></ul><ul><li>-giving a limited number of dealers the exclusive right to </li></ul><ul><li>distribute the products in their territories </li></ul><ul><li>-for exclusive products, product’s image, higher markups </li></ul><ul><li>SELECTIVE </li></ul><ul><li>-more than one dealer but not all dealers who are willingly </li></ul><ul><li>to carry company’s produts, ”Label-retailer” </li></ul><ul><li>-good market coverageto producer with more control and less </li></ul><ul><li>cost than intensive distribution </li></ul>MARKETING -Jankkila 2004
  75. 75. MARKETING CHANNELS DECISIONS ? Questions for a countryside firm <ul><li>DIRECT MARKETING </li></ul><ul><li>reach few customers, </li></ul><ul><li>direct producer/customer contact, </li></ul><ul><li>not effective? </li></ul><ul><li>is product suitable for direct marketing? </li></ul><ul><li>larger profit marginal? </li></ul><ul><li>have producer time enouhg for producing and marketing? </li></ul><ul><li>small amounts of products can be marketed, </li></ul><ul><li>Important; quality, producers own capasity and knowledge of marketingco, co-operation with other small producers? </li></ul>MARKETING -Jankkila 2004
  76. 76. MARKETING CHANNELS DECISIONS ? Questions for a countryside firm <ul><li>RETAILER </li></ul><ul><li>more customers, customers find the products in the same place as other products=easier for customers, </li></ul><ul><li>is the retailer interested in the small producer’s products? </li></ul><ul><li>do the customers find the products among other products? </li></ul><ul><li>important; quality, reliable distribution, is it sure you can produce the amounts of products you aimed, producer’s own activity to reach retailers, package </li></ul>MARKETING -Jankkila 2004
  77. 77. MARKETING CHANNELS DECISIONS ? Questions for a countryside firm <ul><li>LARGE-SCALE KITCHENS ( restaurangs ..) </li></ul><ul><li>one good possibilit for small firms, business to business </li></ul><ul><li>relation > product development together? easily to get feed </li></ul><ul><li>back from custemers, fresh raw materials, bigger ( suitable ) </li></ul><ul><li>amounts to one place, saves distribution and packaking </li></ul><ul><li>SPECIAL / EXECUTIVE RETAILERS </li></ul><ul><li>the importance of quality and package and image ! </li></ul><ul><li>better profit by pricing strategy </li></ul>MARKETING -Jankkila 2004
  78. 78. MARKETING CHANNELS DECISIONS ? Questions for a countryside firm <ul><li>WHOLE SAILERS </li></ul><ul><li>large-scale, concentrated distribution </li></ul><ul><li>> producers’s work decrease </li></ul><ul><li>can you produce large amounts? </li></ul><ul><li>is a long chain suitable for your ( fresh? ) goods? </li></ul><ul><li>is the price competitive by the customers? </li></ul><ul><li>packaging for the wholesailing and distribution >costs? </li></ul><ul><li>logistics if the distribution ways are long? </li></ul><ul><li>who does pay the freight? </li></ul>MARKETING -Jankkila 2004
  79. 79. MARKETING CHANNELS DECISIONS ? Questions for a countryside firm <ul><li>CONTRACTUAL CO-OPERATION ( franchising .. ) </li></ul><ul><li>PRODUCER NET WORK - THE SAME TRADEMARK - </li></ul><ul><li>SUBCONTACTOR PRODUCING </li></ul><ul><li>small-scale producing is possible </li></ul><ul><li>producer’s own name not seemed in the products </li></ul><ul><li>the producer can concentrate to producing/marketing /delivering/retailing </li></ul><ul><li>EXPORT </li></ul><ul><li>a long, difficult and expencice process </li></ul><ul><li>co-operation ! export know how ! </li></ul>MARKETING -Jankkila 2004
  80. 80. LOGISTICS – PHYSICAL DISTRIBUTION –Kotler-Amstrong <ul><li>MARKETING LOGISTICS </li></ul><ul><li>The tasks involved in planning, implementing, and </li></ul><ul><li>controlling the phycical flow of materials, final goods, and </li></ul><ul><li>related information from points of origin to points of </li></ul><ul><li>concumption to meet customer requirements at a profit </li></ul><ul><li>SUPPLY CHAIN MANAGEMENT = </li></ul><ul><li>Managing upstream and downstream value-added flows of </li></ul><ul><li>material, final goods, and related information among </li></ul><ul><li>suppliers, the company, resellers and final consumers </li></ul>MARKETING -Jankkila 2004
  81. 81. LOGISTICS – PHYSICAL DISTRIBUTION –Kotler-Amstrong <ul><li>SUPPLIERS </li></ul><ul><li>Inbound logistics </li></ul><ul><li>COMPANY Reverse </li></ul><ul><li>Outbound logistics </li></ul><ul><li>RESELLERS logistics </li></ul><ul><li>CUSTOMERS </li></ul>MARKETING -Jankkila 2004
  82. 82. PROMOTION – MARKETING COMMUNICATION MIX <ul><ul><ul><ul><ul><li>The specific mix </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>advertising, personal selling, sales promotion, public relations and information </li></ul></ul></ul></ul></ul>MARKETING -Jankkila 2004
  83. 83. PROMOTION – MARKETING COMMUNICATION MIX –Kotler-Amstrong - <ul><li>The specific mix of advertising, personal selling, sales promotion , public relations and information </li></ul><ul><li>ADVERTISING = any paid form of nonpersonal </li></ul><ul><li>presentation and promotion of ideas, goods, or services by </li></ul><ul><li>an identified sponsor </li></ul><ul><li>SALES PROMOTION = short-term incentives to encourage the purchase or sale of a product or a servi´ce </li></ul>MARKETING -Jankkila 2004
  84. 84. PROMOTION – MARKTING COMMUNICATION MIX –Kotler-Amstrong - <ul><li>PERSONAL SELLING = personal presentation by the </li></ul><ul><li>firm’s sales force for the purpose of making sales and </li></ul><ul><li>building customer relationships </li></ul><ul><li>PUBLIC RELATIONS = building good relations with the firm’s various publics by obtaining favourable publicity, good corporate image, and handing or heading unfavourable stories and events </li></ul><ul><li>DIRECT MARKETING = direct connections with </li></ul><ul><li>carefully targeted individual consumers to obtain new or cultivate lasting relationships </li></ul>MARKETING -Jankkila 2004
  85. 85. ELEMENTS OF COMMUNICATION PROCESS <ul><li>SENDER RECEIVER </li></ul><ul><li>IDEA MESSAGE IMAGE </li></ul><ul><li>Encoding to Decoding to an </li></ul><ul><li>a message MEDIA image </li></ul><ul><li> Disruptions </li></ul><ul><li> Disorders </li></ul><ul><li>FEEDBACK = knowledge that the receiver </li></ul><ul><li> has reacted to the communication </li></ul>MARKETING -Jankkila 2004
  86. 86. ADVERTISING Kotler-Amstrong- <ul><li>OBJECTIVE SETTING </li></ul><ul><li>communication objectives, sales objectives </li></ul><ul><li>BUDGET DECISIONS </li></ul><ul><li>affordable approach, percent of sales, competitive parity, </li></ul><ul><li>objective and task </li></ul><ul><li>MESSAGE DECISIONS MEDIA DECISIONS </li></ul><ul><li>message strategy - reach, frequenc, impact </li></ul><ul><li>message execution - major media types </li></ul><ul><li>- specific media vehicles </li></ul><ul><li>- media timing </li></ul><ul><li>CAMPAINGN EVALUATION </li></ul><ul><li>Communication and sales impact </li></ul>MARKETING -Jankkila 2004
  87. 87. POSSIBLE OBJECTIVES - Kotler-Amstrong- <ul><li>INFORMATIVE ADVERTISING </li></ul><ul><li>gives information about a new product, the firm, new uses of product, price change, explain how the product works .. </li></ul><ul><li>PERSUASIVE ADVERTISING </li></ul><ul><li>brand building, changing customer’s perceptions of product attributes .. </li></ul><ul><li>REMINDER ADVERTISING </li></ul><ul><li>remind consumer of the goods and services, remind the selling palaces.. </li></ul>MARKETING -Jankkila 2004
  88. 88. SALES PROMOTION TOOLS –Kotler-Amstrong- <ul><li>SAMPLE </li></ul><ul><li>COUPON </li></ul><ul><li>CASH REFND OFFER ( RABATE ) </li></ul><ul><li>PRICE PACK </li></ul><ul><li>PREMIUM </li></ul><ul><li>ADVERTICING SPECIALITY </li></ul><ul><li>PATRONAGE REWARD </li></ul><ul><li>POINT-OF-PURCHASE ( POP ) </li></ul><ul><li>PROMOTIONAL EVENTS </li></ul>MARKETING -Jankkila 2004
  89. 89. BUSINESS PROMOTION TOOLS <ul><li>DISCOUNT </li></ul><ul><li>a straight reduction in price on purchase during stated period of time </li></ul><ul><li>ALLOWANCE </li></ul><ul><li>promotional money paid by manufactures to retailers in return for agreement to feature the manufacture’s products in some way </li></ul>MARKETING -Jankkila 2004
  90. 90. DIRECT MARKETING Kotler-Amstrong - <ul><li>FACE TO FACE MARKETING </li></ul><ul><li>TELEMARKETING </li></ul><ul><li>DIRECT-MAIL MARKETING </li></ul><ul><li>CATALOG MARKETING </li></ul><ul><li>DIRECT RESPONSE TELEVISION MARKETING </li></ul><ul><li>KIOSK MARKETING </li></ul><ul><li>ONLINE MARKETING </li></ul>MARKETING -Jankkila 2004
  91. 91. - <ul><li>COMPETITION -Porter 1980- </li></ul><ul><li>Potential new firms </li></ul><ul><li>Threat </li></ul><ul><li>Suppliers Competitions in Buyers </li></ul><ul><li>Negotiation the branch Negotiation </li></ul><ul><li>power power </li></ul><ul><li> Threat </li></ul><ul><li> Substitutes </li></ul>MARKETING -Jankkila 2004
  92. 92. COMPETITION STRATEGIES –Porter 1980- <ul><li>Overall cost leadership </li></ul><ul><li>-producing a standard product at low cost or engaging in </li></ul><ul><li>heavy advertising in order to undercut competetion – price </li></ul><ul><li>competition </li></ul><ul><li>Differentiation </li></ul><ul><li>-selling at a higher price than average, in the product unique </li></ul><ul><li>feature of quality, image or design </li></ul><ul><li>Focus concentrates </li></ul><ul><li>-focusing on a specialist product rangeor a unique segment of </li></ul><ul><li>the market or a combination of them both </li></ul>MARKETING -Jankkila 2004 -
  93. 93. - MARKETING INFORMATION SYSTEM MkiS Kotler 1997, Lancester-Reynolds 2004 <ul><li>A marketing information system ( MkiS ) </li></ul><ul><li>concists of people, equipment and procedures </li></ul><ul><li>> to gather, sort analyse, evaluate and distribute needed, timely and accurate information to marketing desicion makers </li></ul>MARKETING -Jankkila 2004
  94. 94. MARKETING INFORMATION SYSTEM – Lancester-Reynolds - <ul><li>MANAGING </li></ul><ul><li>Marketing Analysis, Planning, Tactics, Implementation, </li></ul><ul><li>Actions Control, Review, Monitoring, Contingency </li></ul><ul><li>Defining information needs Distiribution of information </li></ul><ul><li>Internal accounting system Marketing research system </li></ul><ul><li> Component </li></ul><ul><li> parts </li></ul><ul><li>Marketing intelligence system Analytical marketing system </li></ul><ul><li>MARKETING ENVIRONMENT </li></ul><ul><li>Tarket markets, Marketing channels, Communication, Logistics </li></ul><ul><li>Competition, International aspects, Macroénvironment </li></ul>MARKETING -Jankkila 2004 -
  95. 95. MARKETING INTELLIGENCE SYSTEM <ul><li>SALES TRANSPORT OTHER </li></ul><ul><li>PERSONNEL PERSONNEL PERSONNEL </li></ul><ul><li> intelligence gathered from </li></ul><ul><li>Competition Telephone calls and </li></ul><ul><li>Exhibitions Visiting customers requests </li></ul><ul><li>Conferences General chats with Visitors to firm </li></ul><ul><li>Training courses other drivers Letters and direct mails </li></ul><ul><li>Customers Visiting suppliers Press and journals </li></ul><ul><li>Sponsored events General observastion General observation </li></ul><ul><li>MARKETING RESEARCH SYSTEM </li></ul><ul><li>Primary data </li></ul><ul><li>Secondary data </li></ul><ul><li>INTERNAL ACCOUNTING SYSTEM </li></ul>MARKETING -Jankkila 2004 -
  96. 96. - <ul><li>PRACTICE 1. Analyse the business idea of the ( small/medium size, </li></ul><ul><li>countryside branch ) firm and give ideas to develop the business concept by </li></ul><ul><li>using the theoretic knowledge you got on the lectures and from the books </li></ul><ul><li>The firm identification: </li></ul><ul><li>WHAT TO WHOM </li></ul><ul><li>-product, service, experience - market, segmentation, market region </li></ul><ul><li>-quality - custome’s needs/wants for the product </li></ul><ul><li>-price, pricing strategy - competition situation </li></ul><ul><li>-how they have developed the product </li></ul><ul><li>HOW IMAGES/POSITION </li></ul><ul><li>-organization structure -positioning on the market, </li></ul><ul><li>-how they use the parts marketing -profiling; trademark, brand …. </li></ul><ul><li>of marketing mix -your own opinion or image of the product </li></ul><ul><li>-quality policy and the quality </li></ul><ul><li>management </li></ul><ul><li>-why the company has choosed this </li></ul><ul><li>way of operating? </li></ul>MARKETING -Jankkila 2004
  97. 97. PRACTICE 2. Create a new product / service /experience idea on the basis of local ( in Hungry+ in Finland ) possibilities or renew an old product; what, customer segment, quality, pricing strategy, distribution, marketing, feature, package, marketing communicatio …Compare the Hungrian and Fnnish cases; are there similarities / dissimilarities? <ul><li>USE SWOT ANALYSIS TOO </li></ul><ul><li>Strengt ( Strengthen ) Weakness ( Improve ) </li></ul><ul><li>Opportunities ( Utilize ) Threats ( Avoid ) </li></ul>MARKETING -Jankkila 2004 -
  98. 98. EVALUATION OF THE COURSE Give your evaluation of the coure, please <ul><li>Good points ; contents, practises, presentation, teaching </li></ul><ul><li>Not good points; contents, practises, presentation, teaching </li></ul><ul><li>What did you learn? Can you use this knowledge in your </li></ul><ul><li>job in future? </li></ul><ul><li>Evaluate your own learning stage in numbers 1-5 </li></ul><ul><li>Your experience and opinion of studying in an international group? Should this kind of operation continue or not? Why? </li></ul><ul><li>Please, send reports and evaluation by e-mail: </li></ul><ul><li> [email_address] </li></ul><ul><li>THANK YOU  </li></ul>MARKETING -Jankkila 2004 -
  99. 99. From an idea to a product <ul><li>Type of product: Identification number: Date: </li></ul><ul><li>Name of product and the description of the product: </li></ul><ul><li>Origin of the idea? </li></ul><ul><li>Why the idea have been produced? </li></ul><ul><li>What kind of need or want the product does solve? </li></ul><ul><li>Competing products and substitudes? </li></ul><ul><li>Critical and hazardous points on tproduct development, </li></ul><ul><li>production and marketing? SWOT-analysis </li></ul><ul><li>Objectives: Product quantity, marketing share, returns? </li></ul><ul><li>What next? Item Timing Responsible </li></ul><ul><li> -core product </li></ul><ul><li> -packing </li></ul><ul><li> -pricing </li></ul><ul><li> -distribution </li></ul><ul><li> - - promotion </li></ul>MARKETING -Jankkila 2004
  100. 100. TOURIST PROGRAM DESCRIPTION <ul><li>Name: </li></ul><ul><li>Timing, when: </li></ul><ul><li>Duration: </li></ul><ul><li>Place: </li></ul><ul><li>Description of content: </li></ul><ul><li>Price, min/max/discounts: </li></ul><ul><li>Price including: </li></ul><ul><li>Further information: </li></ul><ul><li>How it is reached: </li></ul><ul><li>Information of the firm/ reservations </li></ul><ul><li>Information of the retailer / reservations: </li></ul>MARKETING -Jankkila 2004
  101. 101. BLUE PRINT FOR A TOURIST PROGRAM <ul><li>CONCRETE ELEMENTS; hotel, means of transfer, </li></ul><ul><li>accomandation during the program, food, reindeer, snowmobile </li></ul><ul><li>THE CUSTOMER PROCESS; what / how does the </li></ul><ul><li>customer do during the program </li></ul><ul><li>VISIBLE SERVICE PROCESS – front office personnel, </li></ul><ul><li>responsible persons </li></ul><ul><li>INVISIBLE SERVICE PROCESS – back office personnel </li></ul><ul><li>THE TIMING OF THE PROGRAM – from the </li></ul><ul><li>beginning to the end minutes, hours, days </li></ul>MARKETING -Jankkila 2004