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Marketing Toolbox
Subtitle, Autor or Date
Basics
Definitions / Explanations
Marketing Orientation
Orientation in companies which strongly influenced the development of
marketing



Technological Orientation        Marketing Orientation
(innovation, perfectionism)      (market share, competitive advantage)

Employee Orientation             Customer Orientation
(satisfaction, qualification)    (customer satisfaction, customer loyalty)

Efficiency Orientation           Financial Orientation
(optimization, cost reduction)   (result, revenue, profitability, liquidity)

Social Orientation               Quality Orientation
(environment, public, image)     (improvement, ISO-certification, quality price)
Marketing Triangle
Company, employees and customer

                                  Company




                              Marketing
                               Triangle

          Employee                                   Customer
                             interactive marketing
Marketing - Simple Model
Model of a simplified marketing system and connection between provider
and market

                       Communication to Market / Information




    Provider                                                      Market
                            Delivery of Product / service
                                                                 Overall market
   Provider of the
  product or service             Transaction                   of customers and
                                                               interested parties
                                     Payments



                         Feedback to provider / information
Marketing - Perspectives
Differentiation of 3 perspectives: The entrepreneurial approach (philosophy),
instrumentation (technology) and management concept

                                   Marketing
       Philosophy                  Technology                 Management

       Orientation of              Orientation of               Orientation of
     the marketing to            the marketing to             the marketing to
     the most optimal            the most optimal             the most optimal
       satisfaction of          effect of marketing        process development,
        all customer                instruments              analysis, planning,
       requirements                                             steering and
                                                              controlling of all
                                                            marketing activities
Development Phases of Marketing
Development phases in the last 100 years

                                        Sales and                 Market and                    Customer /
 Production
                                        distribution              competition                   individual
 orientation
                                        orientation               orientation                   orientation
                                                                                                   market oriented company
                                                                                              management (marketing management)

                                                                                                     customer relationship
                                                                                                      management (CRM)


                                                                                                   marketing implementation


                                                                   marketing implementation             marketing mix


                                             marketing mix              marketing mix                   product policy


                                             product policy             product policy                    price policy


                                               price policy              price policy                communication policy


                      advertisement       communication policy       communication policy             distribution policy


        sales             sales             distribution policy       distribution policy               mix extension



    1900 - 1920   approx. 1920 - 1950   approx. 1950 - 1980       approx. 1980 - 1990                  since 1990
Development of Marketing
Steps of development of Marketing




 Product orientation                 Market orientation               Environment orientation               Network orientation
 Pure production due to              Specialization on individual     Response to environmental,            Web 2.0, social networks,
 popular demand                      needs and market                 political, technological or           Word of Mouth
 (eg postwar period)                 segmentation                     societal changes



    2020              2021              2022               2023                2024             2025             2026

                     Sales orientation                  Competition                       Dialog orientation
                     Change from the Production         orientation                       Interactive design of
                     to distribution                                                      communication through the
                                                        Emphasis on unique
                                                                                          internet, e-mails
                                                        selling points (USP)
Marketing Pyramid
Pyramid with (higher-ranked) marketing objectives on the top



                                             Marketing
                                             objectives



                                           Marketing
                                           strategies


                             Marketing instruments

                 Product- and       Price and       Communication   Distribution
                program policy   condition policy      policy          policy
Marketing - Classical vs. Alternative Marketing
 Overview of some marketing tools

 Classical Marketing                                                               Alternative Marketing

                                           Guerilla marketing   Viral marketing
                        Public relations
                                                                                  Search engines
   Outside advertisement /
   Billboard advertisement                                                              Mobile marketing
                                                                                                   Direct marketing
Radio / TV / Movies
                                                                                                   Sales promotion

    Print media                                                                           Product placement

                                                                                     Fairs / Exhibitions
       Classical advertisement
                                                          Event marketing
                                      Sponsoring
Marketing Objects
Differentiation according to different marketing objects and approaches


                                                Marketing object
                      Consumer goods -                 Investment goods -                   Service
                1     marketing                  2     marketing                   3        marketing

                       marketing of                      marketing of                      marketing for
                       products for                      products for                  immaterial goods and
                       private usage                   occupational use                 service performance




      Non-Profit-                      Social                             Destination                       Trade
4     marketing                  5     marketing                   6      marketing                     7   marketing

        marketing for                   marketing of a                    marketing of an                    marketing of a
    organizations without                 social idea                     explicit region               trade and sales company
        gainful intent                 (no organization)                    (tourism)                            (retail)
Marketing - Sales Markets
Differentiation according to 3 sales markets and the participating partners


                                      Marketing
          B - to - B                    B - to - C                    C - to - C

   Business-to-Business-         Business-to-Customer-            Customer-to-
        Marketing                      Marketing               Customer-Marketing
      (company customer)         (private customer business)
          Marketing of one             Marketing of a             Marketing of a private
        company to another                company                 household to another
              company              to a private house old           private household
    (i.e. production machines)     (consumption goods)         (i.e. private sales on ebay)
Characterization of Markets - Types of Goods
Types of assets and their usage situations




     Consumer Goods                         Capital Goods                            Services
    Consumer goods (e.g. food)        Are used by production companies           Immaterial benefits,
   and durables (e.g. cars) satisfy    to produce further goods. Buyers    often incurred only at the time
 immediate needs, and are directly       are usually establishments or    of consumption. The customer is
     put into use by the buyers                public companies.          part of the performance / service.
            (consumers).


                                          Single, clear identifiable         Services for customer with
        Mass-Market (B2C)
                                              customer (B2B)                   a high use of resources
Market Segmentation
Scientific level of consideration




                                                     Market
          Market Capture                          Segmentation
                                                                 Market Processing




  Explanatory
                                                                                      Segments-
    models           Acquisition of        Information           Selection of
                                                                                    Specific use of
  of purchase         information           processing            segments
                                                                                     instruments
    pattern



     Consumer-oriented approach

                            Method-oriented approach              Management-oriented approach
Market Segmentation
Objectives, methods, strategies of market segmentation




Lead Structure                        Approaches of
                                    Market Segmentation

                                        behavior-oriented

   Reasons/
   Meaning       OBJECTIVES             method-oriented              STRATEGIES

                                      management-oriented




                              Quantitative             Qualitative
Market Definition
Hierarchy representation for the preparation of a market analysis of companies
with a broad range of products or services

                                         Overall Market
Strategic
management
Definition             Market 1              Market 2              Market 3
of markets           (Description)         (Description)         (Description)


Strategic
business units          SBU 1                 SBU 2                 SBU 3

Marketing
                       Segment A            Segment B            Segment C
   Sub Market A
   Sub Market B
   Sub Market C
Market Analysis/
Competition
Situation analysis
Situation Analysis - Search Fields
Search fields for the identification of potential chances and risks


   Environment analysis                           Market analysis

 Frame conditions:
  political
  social                                           Competitor
  technological
  economical
  ecological

                                                     Company
 Stakeholder:                     Supplier                            Customer
                                                      analysis
  employees
  investors
  unions
  etc.                                              Substitute
                                                      products
Market Analysis - Strategic Situation Analysis
Analysis of market participants, political and legal situation and social,
technological, geographical and economical aspects
        Own                          Relevant               Supplier, Sales mediator         Legal, social and natural
     organization                   competitor              and potential customers               environment




  Potential analysis          Competition analysis               Market analysis           Environment analysis




         Strengths and weaknesses analysis                            Opportunities and threats analysis




                                                 SWOT Analysis


            Interpretation of data of strategic situation analysis are the foundation
                              of the following marketing decisions
Marketing - Situation Analysis
Check list with basic questions to clarify the initial situation


       What is the market where the company operates and
 1     how can it be defined and narrowed?

       Who is involved in the sales process?
 2     What determines the behavior of these groups?


 3     Which competitors are currently operating on the market?


       Do public interest groups or any external stakeholders have an
 4     impact on your company policy?

       What is the actual-situation of the company?
 5     What are your strengths and weaknesses?
Market Analysis - Company Analysis
Corporate philosophy (1/6)

 Corporate policy                  Corporate vision                  Corporate idea
 Insert description and notes in   Insert description and notes in   Insert description and notes in
 key words.                        key words.                        key words.
Market Analysis - Company Analysis
Corporate philosophy (2/6)

 Corporate identity                Corporate culture                 Corporate objectives
 Insert description and notes in   Insert description and notes in   Insert description and notes in
 key words.                        key words.                        key words.
Market Analysis - Company Analysis
Corporate potentials (3/6)

 Development                       Marketing                         Production
 -research/ development            -marketing concept                -technology
 -know how                         -standards                        -capacity
 -patent                           -brands                           -productivity
 -development status




                                   Insert description and notes in   Insert description and notes in
 Insert description and notes in
                                   key words.                        key words.
 key words.
Market Analysis - Company Analysis
Corporate potentials (4/6)

 Procurement                       Financing                         Company
 - procurement systems             -capital requirements             -organization
 - supplier relationship           - investment intensity            -value chain
 - purchasing power




 Insert description and notes in   Insert description and notes in   Insert description and notes in
 key words.                        key words.                        key words.
Market Analysis - Company Analysis
Corporate resources (5/6)

 Material resources         Financial resources               Employees
 - installations            - liquidity                       -staff situation
 - interior                 -reserves                         - education
 -equipment                 -possibilities to raise capital   - staff development




 Managers                   IT-equipment                      Other
 - quality of leadership    - sort                            Insert description and notes in
 - business experience      - actuality                       key words.

 - age structure            - complexity
Market Analysis - Company Analysis
Company position on the market (6/6)

Markets                     Advantages               Product mix              Cost- Price
-overall and partial        - product and            - revenue                - price per piece- market
- market share              performance advantages   - profitability          price relations

-market and sales profile   - innovations            - age profile            - value chain
                            - protection against
                            replicates




Insert description and      Insert description and
notes in key words.                                  Insert description and   Insert description and
                            notes in key words.      notes in key words.      notes in key words.
Potential Analysis
    Inspection of the position of own company on the market according to the
                                  following factors

    TV campaign                   Documentary                   Capital              Employees
      brand image of            positioning of company,      capital resources,   number of employees,
         company,              market share of provider of   creditworthiness          structure,
         separate                   product brands                                    qualification
      product brands                                                                 and motivation




       Location                         Sales                   Partner               Customer
       location quality,              distribution              relation to        number of customers,
        infrastructure,               organization             cooperation          customer potential,
     business locations,                                     and distribution       customer retention
 distribution in target area                                     partners         (loyalty vs. fluctuation)
Market Analysis - Strengths and Weakness
Strengths and weaknesses profile

    Own company            Other Company

                                                Weakness             Strength
Criteria
                                           -3      -2      -1   +1     +2       +3

Product range (quantity)

Product range (quality)

Price

Service (general)

Availability by phone

Customer satisfaction

Supplier satisfaction

…
Competition Analysis
Example

                                                          Characteristic
                                   high                                                low

                                      1       2   3   4         5          6   7   8   9
Quality
Price
Performance
Usage
Image
Environment-friendliness
Design
Additional functions

  Your product         Competitor’s product
Marketing - Representation of Market Volume
Representation of market volume and its development as a diagram

                          Market potential
                          Number of possible customer                                      Sales volume or sales of a
                          or amount if all customers                                       provider / company
                          are prepared to buy (at the given price)




                                                        Market volume                   Market share




       Market capcity
       Total number of possible customer                    Actual sales or sales for
       or max. amount of products that can be used          all vendors at the market
       consumed / (if price does not matter)
                                                                                               Market volume
                                                                            Saturation =                            x 100%
                                                                                              Market potential
Characterization of Markets - Sizes
Relationship between market potential, market volume and market share
to assess the market attractiveness
                                   Relative       Market Share A
                               Market Share =
Market Volume                   Company A         Market Share B                                 Market Share
Total sales or a turnover                                                    Market share of a company and the ratio
of an industry including                                                     of sales / turnover of the company to the
all competitors                                                                                          market volume




                                                                                                     Relative
                                                                                                 Market Share
                                                                                             Ratio of Market share of
                                                                                            a company to the market
                                                                                               share of the strongest
                                      Market Potential                                                    competitor
                            Capacity of the market up to market saturation
Market - Description/ Term Definition
Terms to describe markets

                               Market potential:                                             Market volume:
             equates to the absorption capacity of the                                       realized / scheduled sales or revenue for a
               market (market capacity) or the volume                                        similar product for example for one year.
            of the possible deductable amounts of one                                        Clearly more specific than the market
                           product at a certain market.                                      potential.


                                                             Market potential


                                Market-                        Sales / Revenue                Absolute           Relative
                               exhaustion                  volume of the company             market share       market share


                                                              Market volume




                 Market exhaustion:                                                                             Relative market share:
   percentage value that indicates to what                 Absolute market share:                               indicator of market position by
 degree the possible customer of a product            market share, that the company has                        relating their own sales to the sales
 would consume it. (Market limit used as a                   realized on a certain market                       of its largest competitor in the
          gauge for future market growth)                               (sales or revenue)                      industry.
Market Analysis - Environment Analysis
Placeholder for your own Subheadline


                                                          Calculation

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                                              Dep. 4                                        o/1         o/1
                                                                                                                                 Internet
                                                                            +/3
                                                                                                  Customer            Supplier
                                                          +/1                                       gen.
                                                                   Design                    /0                                             Quality of connection
                                                                  engineer        +/1                                                       + perfect
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                                     Feedback
                                                                                                    Reference
The text demonstrates how                                                                                                                   Frequency of connection
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you replace the placeholder                                                                                                                 1 low
with your own text.                                                                                                                         0 nonexistent
Opportunities - Threats-Analysis
Analysis about the company’s opinion on environmental changes and where
adjustments need to be done
Criteria                                Opportunities          Threats
Marktsituation
 Market structure                             x
 Market potential/ market volume              x
 Customer structure                                               x
 Competitor                                                       x
Environment / Frame conditions
 Laws / Taxes                                                     x
 Society                                      x
 Ecology                                      x
 Technological Development                                        x
Strength
 Product range                                x
 Prices                                       x
 Organization / Management                    x
 Cash Flow                                    x
Weaknesses
 Locations                                    x
 Marketing performance                        x
 Innovation ability                                               x
 Financial resources                                              x
Chance-Risk-Analysis
Chances and Risks with possible development outside the company and their
influence on marketing strategy and business planning
Opportunities                                           Threats

new product development in own company                  development of a new product by the competitor


own innovations                                         innovations of the competitor

new target groups and buyer levels                      development of new competitors

opening new markets in other countries                  development of new competitive suppliers in other countries

increasing demand                                       development of over-production

recovery of the overall economy                         weakening of the overall economy

loosening or changing of relevant laws                  limited measures and legislative processes

currency exchange revenues on foreign markets through   exchange rate losses on foreign markets through negative changes
positive change of exchange rates                       of the exchange rate

                                                        technological development / change of base technologies
Strength and Weaknesses Analysis
Analysis of internal Company Resources

                                                             Relevance
Sector          Success Factor                                                   Notes
                                                     1   2      3        4   5
                Range of service
                Pricing
                Image
                Market share
                Market growth
                Sales development
                Distribution
                Sales network
                Advertising
Marketing and   Complaint management
Sales           Adherence to schedules
                Customer structure
                Order processing
                Sensitivity to economic situations
                Customer service
                Market cultivation
                Sales representatives
                Market research
                Sales planning
                Customer loyalty
SWOT-Analysis
Enter your subheadline here


                Strength      Weaknesses




                                           External Analysis
             Opportunities     Threats
Gap Analysis
Revenue targets and their development in the course of time
 Target value i.e. revenue




                                                                                 Strategic gap
                                             Development limit
                                                                 New business


                                                                     Potential
                                                                                 Operative gap
                                                                 core business


                             Core business



                                        Present                       Planning horizon           time
ABC-Analysis
ABC Analysis is methodology that gives a quickly and simple review of
assortments of products in retail, wholesale or manufacturing businesses
            Turnover / Value in %



100%




80%




60%                                 A         B               C
40%




20%



                                                          Range of Products / Quantity in %
 0%
       0%                               20%   40%   60%          80%                  100%
ABC-Analysis
Placeholder für Ihre eigene Subheadline

         Percent                          Sales 2010    Commulated
 No.             Customer
       Customer                           (in Dollar)        Sales
  1          5% Placeholder                 100,000          16,4%

  2         10% Placeholder                  95,000          31,9%

  3         15% Placeholder                  90,000          46,7%

  4         20% Placeholder                  85,000          60,6%

  5         50% Placeholder                  30,000          82,3%

  6       100% Placeholder                       300         100%

                                            610,400
Quality and Price Positioning
Relative positioning of different product categories
      high




                                                           Brand article
 Relative quality




                          No-names   Trademarks
      low




                    low                   Relative price                   high
Seller / Buyer's Market - Features
Comparison and limits of the characteristics of the seller and buyer's market

                                  Activities of supplier             Activities of demander

         Features                  Seller‘s Market                    Buyer‘s Market
          Economic
                                    Scaricity economy                    Affluent societies
      development stage


       Ratio of supply              Demand> Supply                      Supply> Demand
                                    (Excess demand)                          (Surplus)
        and demand           Demand more active than provider    Providers more active than buyers


       Bottleneck area
                             Procurement and / or production                 Turn over
        of company


       Primary efforts       Rational extension of procurement   Awakening of demand and creation
        of company                and production capacity          of preferences for their own
Market Attractiveness - Competition Advantage
Portfolio 1/3
Analysis of portfolio categories according to the criteria lists

Evaluation of market attractiveness
                                                     Coefficients                                                                Coefficients
Criteria                                 Weigh.   0 0,1 0,2…0,8 0,9   Index   Criteria                               Weigh.   0 0,1 0,2…0,8 0,9   Index
                                                           1                                                                           1

1. Market growth                                                              3. Energy / Accommodation
2. Market quality                                                             - interference of accommodation

- Profitability of the branch
                                                                              - influence of profitability through
- Tolerance for price policy                                                  price incensement

- Technological level                                                         - existence of alternatives

- Protectability of know how                                                  4. Environment situation
- Intensity of investments
                                                                              - Economic dependency
- Intensity / structure of competition
                                                                              - Inflation effects
- Number / structure of potential
consumer                                                                      - Dependency on legislation

- Entry barriers                                                              - Dependency on public

- Distribution requirements                                                   - Risk of public interference
- Variability of competition
conditions                                                                    - Pollution of nature

- Substitution possibilities                                                  TOTAL                                   1,0
Market Attractiveness - Competition Advantage
Portfolio 2/3
Analysis of portfolio categories according to the criteria lists

Evaluation of market attractiveness
                                          Coefficients                                                                Coefficients
Criteria                      Weigh.   0 0,1 0,2…0,8 0,9   Index   Criteria                               Weigh.   0 0,1 0,2…0,8 0,9   Index
                                                1                                                                           1
1. Rel. market position                                            - Pot. increase of productivity

- Market share                                                     - Environmental friendly production

- Size and financial power                                         -Delivery conditions

- Growth rate                                                      - Sustain market share with given
                                                                   supply conditions
- Profitability
                                                                   - Cost situation with energy and raw
- Risk                                                               material supply
- Market potential                                                 3. Relative R&D potential
2. Rel. product potential                                          - Status of research
- Process efficiency                                               - Development compared to market
                                                                   position
- Cost advantage
                                                                   - Innovation potential
- Innovation ability
                                                                   4. Rel. employee qualification
- License relations
                                                                   - Professionalism and culture
- Adaptability
                                                                   - Innovation climate
- Sustain market share with
capacity                                                           - Quality of management systems
- Location advantage                                               TOTAL                                   1,0
Market Attractiveness - Competition Advantage
Portfolio 3/3
Display of portfolio graphic according to results of prior criteria lists

                         low              medium                high

                                                                                Investment and
                                                                                growths strategies
                         A




                                                                       high
 Market attractiveness




                                                                                Selective strategies




                                                                       medium
                                            B

                                                                                Absorption and
                                                                                divestment strategies
                                                                 C
                                                                       low




                               Relative competition advantage
Market Segmentation
Different types and levels of market segmentation
                                                                                            Segmentation
            Undifferentiated marketing                     Differentiated marketing       Concentrates marketing              Micro marketing

         Mass                     Product variety                  Segment                        Nische
                                                                                                                           Individual marketing
        marketing                   marketing                      marketing                     marketing

Products, distribution and   Prices, distribution and      High degree of market         High specialization and          It’s the highest degree of
advertisements are           advertisement measures        coverage serves multiple or   concentration on special         segmentation and external
designed the same for all    are developed for different   many different sub            sub markets or clearly           opposite to mass
customers.                   target groups.                markets.                      defined customer groups.         marketing.

Difference between           Orientation according to      Further sub divisions:        Niche providers are highly       Segmentation of market
separate segments are        target groups creates                                       specialized and pursuit a        down to the individual
being ignored and the        better approaches for the     1. Concentration to only      secure market position in        customer by increasing
market is served with one    determination of market       one segment                   procurement.                     individualization tendency
offer.                       chances.                      2. Selective specialization                                    and technical progress.
                                                           3. Product specification
                                                           4. Market specialization                                       Customized mass
                                                           5. Complete segment                                            production
                                                             coverage                                                     (Mass customization /
                                                                                                                          One-to-One-marketing)




     Broad target group                                                                                               Narrow target group
     approach                                                                                                         approach
Segmenting-Targeting-Positioning (STP-Model)
Three steps to target group oriented marketing

    Market segmentation                       Target market determination                                 Positioning
    Determination of                                  Development of assesment                          Development of a lasting
1   segmentation variables/
    segmentation of Market
                                                  guidelines for the determination of
                                                  attractiveness. Finally the selection
                                                                                                        competition position and
                                                                                                       determination of tasks and
                                                  and concentration on one or more                 performance program for selected
                   Development of                              segments.                                   target segments.
             2     resulted
                   segment profile

                                            Estimation of
                                        3   attractiveness of each
                                            Segment


                                                           4     Selection of target
                                                                 segments
         Zoning of market in clear
     defined target groups / Customer
      groups with own products and
              marketing-mix.
                                                                                          5   Development of possible
                                                                                              positioning concepts

                                                                                                                 Selection and
                                                                                                           6     Communication of
                                                                                                                 positioning concept


                                                                 Time
Segmenting-Targeting-Positioning (STP-Model)
Three steps in the process of market segmentation



 Segmentation                       Targeting                       Positionierung


  Determination of segment
   variables                              Analysis of estimation       Designing of a possible
                                           of attractiveness of          positioning concept
  Definition and segmentation of          each segment
   the market                                                           Selection and
                                          Selection of target           communication of
  Development and description of          segments                      positioning concept
   resulting segment profiles
Customer Segmentation
Differentiation and description of target groups

Customer segment X
Characteristics:                                                Feature A
 …
 …
 …
Core motive:


Customer segment Y
Characteristics :
 …
 …                                                                         Feature B
 …
Core motive:
                                                   Individual

Customer segment Z
Characteristics :
 …
 …
 …
Core motive:
Market Entry Barriers
Institutional and behavior dependent market entry barriers

                                                        Market entry barriers

                                                                                       Behavior dependent market
              Institutional market entry barriers                                            entry barriers

       Tariff barriers                   Non-tariff barriers             Market side barriers             Company side barriers


             Tolls                           Import quotes                  Demand behavior                Information availability


                                                                                                           Psychological distance
                                        Capital flows limitations          Language / culture
                                                                                                              of management


                                      Minimum /maximum prices              Distribution systems


                                                                             Administrative
                                       Local content regulations
                                                                               constrains


                                          Norms / standards


                                            Self limitations
Values and Lifestyles (VALS)
System of lifestyle-typology of consumer

                                 VALS Typology
                            Values and Lifestyles (VALS)



       Extroverts                  Notleidende               Introverts
        Achievers                    Sustainers            Socially-Conscious
        Emulators                     Survivors             Experimentals
        Belongers                                              I-am-me s
Competitive Advantage
Representation of the thre influencial factors customers, organization
and competition


                                   Expectation on the
                                   product and benefit




                                   Competitive
                                    advantage
Market Research - Process Scheme
Separation of market research process in five phases


Definition Phase                       Data Collection Phase                  Documentation Phase
                                                                              Dokumentations-
Problem definition and                                                        Presentation of results
                                                                              phase
development of survey                                                         Research report distributer
                                                                              Präsentation der Ergebnisse
targets Topic of research                                                     Forschungsbericht Verteiler




        D1                    D2                    D3             D4                   D5


                    Designphase                          Data analysis phase                     Marketing
                    Fixation of target groups            Evaluation of data                       decision
                    Selection of research methods        Interpretation                      Recommendations
                    and instruments                      Prognosis                               that influence
                    Organization (time/cost)                                                          decisions
                    Sources for data
Sales Orientation vs. Marketing Orientation
Comparison

The sales orientation
     Initial point      Main focus on         Measure                 Target


       existing             existing        advertisement,         profit through
      production            products       sales promotions        high revenue




The marketing orientation
     Initial point      Main focus on         Measure                 Target

                                                                   long term profit
                        actual customer       integrated        expectation through
      the markets
                         requirements     marketing approach   sustainable satisfaction
                                                                     of customers
Competition Strategies
Differentiation between cost leadership, time leadership and quality leadership




       Cost leadership                Time leadership               Quality leadership
 Causing lower costs than        Choice of time of market       Determination and
 competitor i.e. though          entry.                         implementation of technical
 production of large amounts     Previous development time,     improvements and product
 and low priced procurements.    handling time and production   improvements with the target
 Mostly this doesn’t require a   time are important here.       to always provide the best
 large market share.                                            quality on the market.
Competitive Advantage - 5 Principles
A competitive advantage over the competition is a superior performance
or property


                          A distinction is made between five principles:
   Principle of             Opportunity              Perceptual             Concentration              Consistency
     survival                principle                principle               principle                 principle

 At least one strategic    Creating competitive      Only competitive       At least one strategic    Focus on strategic
competition advantage      advantages through      advantages that the     competitive advantage     competitive benefits
   must be present        important competitive   customer subjectively       must be present          which are most
      (long term).             parameters.         perceives count (not          (long term).           important for
                          (the more the greater   technical advantages).                                the customer.
                               the chance)
Competitive Advantage - Advantage Matrix
Representation of the relationship of competitive advantages and quantities

                        Volume has no /or
                                                       Volume has great advantages
                         small advantages



   Many                   Niche business                     Special business
 competitive
 advantages         (Restaurants, consultants)            (Journals, instruments)




  Only a few               Patt-business
 competitive                                                 Volume business
 advantages     (Basic materials chemistry, standard
                                                                (PC's, IC's)
   possible                    paper)
Competition Strategies
Representation of coherences between competitive advantages and amounts


                     +
                              Cost leader                                         Benefit leader
     Profitability




                         -                                     ?                                   +

                     -
                             Cost leader and benefit leader require singularity characteristics
                                       otherwise they lose their leading positions.
Marketing Models
Established models
Competition - Driving Forces
The five driving forces of sector competition (according to Porter)


                                                    Potentially new
                                                     competitors

                                                               Threat of new
                                                               competitors


                 Bargaining power
                 of suppliers                     Competitors in the
                                                     industry
   Suppliers                                                                                      Buyer
                                               Rivalry among existing
                                                     companies                 Bargaining power
                                                                               of buyers


                                    Threat of substitution
                                     products or services



                                                      Substitution
                                                       products
Marketing - 4P-Model
Product, Price, Place, Promotion



                                    PRODUCT




           PRICE                               PLACE




                                   PROMOTION
Marketing - 4P-Model
Product, Price, Place, Promotion
5P-Model
Expansion of the 4P model with the aspect of “Personnel”



                                   PRODUCT




           PRICE                                              PLACE




                   PROMOTION                      PERSONNEL
5P- Model
Expansion of the 4P model with the aspect of “Personnel”
Marketing 4P‘s
Enter your subheadline here


                                       4Ps


      Product                 Price          Promotion                   Place
      Main usage         Conditions          Advertisement     Strategic distribution/ sales
                                                                         Physical
      Side usage              Rebate              Sales
                                                                  distribution/logistics
    Additional usage      Discount             Sponsoring                Location

         Brand            Leasing            Sales promotion

        Content                                  Event

        Quality                                   PPR

       Packaging
Marketing Mix - 7P                                              Classical instruments
Classical and new instruments                                   New instruments

                                      Product policy
                                        „product“

            Process policy                                        Price policy
              „process“                                             „price“




  Distribution policy                                                  Equipment policy
        „place“                                                        „physical facilities“




                   Personnel policy                    Communication policy
                     „personnel“                          „promotion“
Marketing Mix
Example with individual factors




                                        Brand name
                        Slogan                             Logo
                                                                    Product design /
          ad campaign                                                  packaging


                                                                               Brochure /
                                                                            Corporate design
 Sales Training

                                                                       Brochures / Product
Press conference
                                                                          presentation

       Reseller discount                                          Businesspaper

                           Give-Aways                Website
Marketing Mix (4P‘s)
Components of the marketing mix

     Product policy                Price policy             Communication policy            Distribution policy
 Product innovations        Price                          Media advertisement          Distribution systems
 Product improvements       Price deductions               Sales promotion              Sales organs
 Product differentiation    Rebates and discounts          Direct marketing             Logistic systems
 Marking                    Delivery conditions            Public relations
 Naming                     Payment conditions             Sponsoring
 Service performance                                        Personal communication
 Assortment planning                                        Fairs and exhibitions
 Packaging                                                  Multi-media communication
                                                             Employee communication




                                                    Marketing mix


                                      Sub-markets and customer groups
Service marketing (from 4P’s to 7P’s)
Comparison of 4P´s and 7P´s

        4 P‘s of the classical                    7 P‘s of the
    consumption goods marketing                service marketing



                                            advertisement    product


                   product

                                       positioning                  employees
        advertisement          price


                 positioning                                      physical
                                             price                facilities
                                                       process
                                                     management
AIDA- Model
Step model in 4 phases (Phases could variy)




          A                    I                  D                A
      Attention         Interest              Desire           Action
      Attract the       The customer is       The desire for   The cusomer
      customer‘s        interested in the     the product is   probably
      attention         product               awakened         purchases
AIDA - Action Principle
The stage model includes four phases the Customer goes through in order to
make the purchase decision



Physical reaction            Action
(economical)                                           The customer buys the product

                                                           The desire for the product
                             Desire
                                                              is awakened (demand)
Psychological reaction
(pre- economical)                                        The customer is interested in
                            Interest                                      the product

                                                            Attention of the customer
                           Attention                         for the product is excited
Marketing 3C’s Triangle
Enter your subheadline here


                                Customer




                               Distributors


                     Clients                  Competitors



                                Suppliers
Diamond-Model - National Competitive Advantages
Thesis to assess the competitive abilities of states in terms of individual industries
(according to Porter)


      Coincidence                Strategy, structure and
                                      competition




        Factual conditions                                     Demand conditions




                                Related and supporting
                                      industries                   Government
Porter‘s Five Forces Analysis
Enter your subheadline here


                             New Competitors
                         Threat of new competition


                              Competition on relevant
   Bargening power                                       Bargening prower
                              market = rivalry among
      of supplier                 competitors              of customer



                               Substitution products
                              = threat of substitution
Five Forces
Five (+1) competitive forces according to Porter (supplement through stakeholder)

     Potentially new competitors                                           Potential further stakeholder
      threat through new competitors                                       Potential bargaining power and the
                                                                           ability to intervene in the industry
                                                                           events



                                                 Competitors/
                                                rivalry between
                                               industry suppliers
                    Suppliers                                                      Customer
         bargaining strength of                                                    bargaining power of customers
                      suppliers




                                             Substitute products
                                  threat through substitute products or services
S-Curve Concept - Life Cycle
Representation of the life cycle of technology in the course of time

                                                           Basic technology




   Pace setting
   technology

                                                                              time

 development phase       growth             maturity          age phases
                         Life cycle of a technology
Marketing Strategy /
Concept
Strategic marketing / concepts
Differentiation - Strategic Marketing
Position of the strategic marketing between strategic management and marketing
management
Conception Phases of Marketing
Enter your subheadline here

                                        Situation Analysis
                                    1
       Marketing Control    7                     2    Marketing Objectives




    Implementation /
                        6       Customer              3      Marketing Strategy
          Realization



       Marketing Instruments/   5          4     SBU-Planning
               Marketing-Mix                     (Strategic Business Units)
Marketing - Communication Policy
Ten-step model of marketing communication

                                                                                              Measure effect        Step 10
                                                                  Apply communication measures
                                                                                                           Step 9
                         Pre- test, Control of effect, return result to step 7, to apply
                                                                                              Step 8




                                                                                                                              Return result at 5-9
                                                                         improvements

                              Plan separate communication measures                            Improvements
                                                                                    Step 7
                                                                                              and corrections
Budgeting and media selection (selecting advertising media)            Step 6

                                                         Step 5         Develop communication strategy


                                            Step 4        Define communication targets and target groups


                              Step 3         Derive marketing
                                             targets
                  Step 2        Agree on company objectives

      Step 1       Situation analysis and prognosis for the company
Four Codes of Brand Communication
Communication model that implies that there are three more codes next to
language responsible for concrete meaning


                                          Meaning


     Language               History                   Symbols                   Sensorics
       Style               Tell stories              Protagonists           Sensorial experience

      Rhetoric           Show episodes                  Figures             Stimulation of senses

      Wording                                       Places of action           Noises / colors

                                                                              Shapes / haptics



                 Only the interaction of these four Codes makes the brand
                           communication sustainably successful
Core Competences / Product Pyramid
Core competences as a base of the product pyramid, which are not easily adapted
by other companies and therefor improve the benefit of the end product



                                                         End product



                                                                 Core product


                             Core competences
  BASE




                                                                 are
                  valuable    rare   difficult to    not sub-    strength-
                                      immitate      stitutable   ened the
                                                                 more they
                                                                 are used
Marketing Strategy - Influencial Factors
Influencial factors



Organizational                                   Attitude to
objectives and                               change and risk
resources



                        Marketing
                        Strategy


 Competitor                                 Market structure
 strategies                                and opportunities
Marketing Strategy
Marketing as market-oriented business management / business strategy


                             Procurement Strategy




  Research and                Business Strategy           Production Strategy
  Development Strategy                                       Quality Strategy




                           Human Resources Strategy
Elements of Marketing Concept
Connection between the separate elements and their logical process structure



       Wishes, requirements                                          Offer of products
               and demands                                           and services




                                          Elements

                 Markets                                                Customer benefit and
                                                                        customer satisfaction




                              Exchange, transactions and relations
Market Areal Strategy
Determination of geographic coverage


                           Market areal strategies



                                              Inter-         Multi-
   Local       Regional      National                                  Global
                                             national       national




                          Process of geographic expansion
Market Simulation Strategies - Stuck in the Middle
  Placeholder for own Subheadline

                                                             Performance                           II: Preference strategy

                   IV: Advantage                           high
                       strategy      Outpacing strategy



           Outpacing
             strategy
                                   „Stuck-in-the-Middle“
               low                                                                                        high
                                                                                                                 Price
                                                                   Security
                                                                   distance
                                                                              I: Over reaching strategy



    III: Price /
Amount strategy
                                                       low
Marketing Strategy - Strategic Triangle
Integrated marketing strategies include the strategic triangle of company,
customer and competitor



                                      Customer




                                 Competitve advantage
               Own
                                                             Competition
             Company
Marketing Strategy - Strategic Pentagon
According to Ohmae 1992


                            Customer




          Government                        Currency




                  Company              Competitor
Innovation - Demand Pull and Technology Push
Interplay between both strategies



     Company                         Market
Media Strategy - Dimensions
Analysis and visualization of the six most important parameter of media strategy

                                                     Percentage of the
                                                   reached target group

                                                         Range

      Design of advertising                                                                  Frequency of addressing the
 (for instance: color) and their                                                                   target persons
           placement                  Impact                                    Contacts




                                   Dominance                                    Intensity
 Size, formats, advertising and                                                             The number of applied media
          spot lengths                                                                             (Media mix)


                                                      Repetition
                                               Frequency and timely intervals
                                                      of the contacts
Marketing Strategies
Strategies according to individualization degree and customer relation

          Level of individualization of a product



                   Customized Marketing              Individual Marketing
   high
                             individualization          customer individual
                                of product              market development




                         Mass-Marketing             Relationship Marketing
    low
                             standardized               Individualization of
                          market development           customer relationship



                                   low                         high            Individualization degree
                                                                               of customer relationship
Strategic Marketing
Questions and Marketing


             Where?                                   How?                                 When?

                                              What is the central                 When will the company
     In which market is the
                                               orientation of the                   become active on
        company active?
                                              marketing strategy?                     the market?




    Concentration of company's            Conscious selection of markets         Determination of market entry
 activities on particularly attractive   and definition of future strategies   time in compliance of the previous
       and promising markets                with long-term orientation         development and production effort
Marketing Orientations
Orientation of the company on the turnover market

 Starting Point                      Medium                     Objectives

                                                                                     “ Produce as much
                                       Expansion /
                                    rationalization of         Profit on increased
 Products/ Performance
                                     production and
                                      procurement
                                                                     volume
                                                                                     as you can. ”

                     Production orientation (seller‘s market)


 Products/ Performance
                                      Sales-political          Profit on accordant   “ Write off what
                                       instruments                   volume
                                                                                     you‘ve produced. ”
                     Sales orientation (saturation tendency)
                                 Market-
                                 research      Bundle of       Profit on long-term
   Customer wishes                             marketing         satisfaction of     “ Produce what you
                                               measures            customers
                                                                                     can write off. ”
                         Market orientation (buyer‘s market)
Cost Leadership
The strategy of a company to reach sustainable competitive advantage be low
costs is differentiated in 8 methods



    Economies of scale         Economies of scope        Experience effects



   Economies of learning         Product design            Process design


                                                          Residual effects
    Capacity utilization          Input-Costs             the operational
                                                           effectiveness

                              Cost leadership
Differentiation Strategy
The strategy of a company to differentiate themselves positively from the
competition from the customer’s point of view is separated in 6 different methods



           Price                     Image                      Support



          Design                     Quality               Not differentiated


                          Differentiation Strategy
Market Field Strategies according to Ansoff
Ansoff-matrix with the representation of product-market-strategies

           Markets

 Products/           Existing                     New
 Performance


                     Market penetration           Market development
                      Market presence             Internationalisation
     Existing
                      Market suppression          Market segmentation



                     Product development          Diversification
                      Product innovation          Vertical diversification
       New
                      Product differentiation     Horizontal diversification
                                                   Lateral diversification
Market Area Strategies
Basic principles for market areas / market development

                                                                 International Strategies

                                                Multinational market
                                                International market
                                                World market




          National Strategies

  Local market
  Regional market
  Cross regional market
  National market
Marketing - STP-Strategies
Strategies of market davelopment




         S                         T                          P
  Segmenting                 Targeting                     Positioning
  Market segmetation,        Segment evaluation,           Positioning versus Differentiation.
  segmentation criteria to   target market determination   Establishment of a competition
  divide the markets         and target group              position in each target segment.
  into clearly defined       determination. Selection of   Selection and communication of
  customer groups            the most attractive market    a concept
                             segments
Competition Strategies
 Matrix for the devision and basic concept of competition strategies
                        Overall market




                                             Differentiation strategy                        Cost leadership
                                             • performance/quality                           • price/costs
Degree of competition




                                             • uniqueness                                    • standard product




                                             Differentiation focus                           Cost focus
                                             • specific need                                 • limited need
                                             • relatively price-inelastic                    • price elastic
                        Sub-market




                                         Performance advantage                                                    Cost advantage
                                                                            Competitive advantage
Competition Strategies
 Matrix for the devision and basic concept of competition strategies
                        Overall market




                                             Strategy of quality                      Strategy of aggressive
                                             leadership                               cost leadership
Degree of competition




                                             Strategy of selective                    Strategy of selective
                                             Quality leadership                       Cost leadership
                        Sub-market




                                         Performance advantage                                                Cost advantage
                                                                     Competitive advantage
Competition Strategies
Matrix for the devision and basic concept of competition strategies

                       Strategic
                      advantage       Singularity from
                                                                   Cost advantage
 Strategic                         customers perspective
 target object

                                                                      Extensive
          Industry wide               differentiation              cost leadership




    Limitation to one segment                           Focusing
Market Field Strategies according to Ansoff
Ansoff-matrix with the representation of product-market-strategies


                    Product
                                        Existing                     New
    Market




             Existing              Market penetration     Market development




              New                 Product development         Diversification
Norm Strategies - McKinsey/GE
Enter your subheadline here

       Market-
 attractiveness          Specializing in few
                                                         Fight for the market
                          strength                                                       Maximum investments
                                                          leadership
             high



                         Overcoming weaknesses                                          Concentration on                     Invest
                                                         Usage of strength
                         Retreat when missing                                            preservation of existing            Develop
                                                         Strengthening of poorly         strength
                          signs for continuous
                                                          performing areas
                          growth


                         Search for low risk                                            High investments in
                                                         Defending of position
             medium




                          expansion possibilities                                         attractive segment                  Devest
                         Minimizing of investments      Concentration of               Defense against                     Develop
                                                          investments of attractive       competitors
                         Rationalizing of internal       and low risk areas
                          processes                                                      Increasing productivity



                                                         Defense of position in         Realization of profit            Selective action
                         Sales with increasing
                                                          most profitable area           Concentration of most             Profit priority
                          profits
             low




                                                         Improvement of product          attractive segments
                         Reduction of fixed costs
                                                          line                           Defense of existing
                         No investments
                                                         Minimizing investments          strength
                                                                                                                     Competitive
                                                                                                                     strength
                                   low                         medium                             high
Norm Strategies - McKinsey/GE
Matrix of norm strategies (threefold division of axis )



                                                                                       Keep
                         High    Investment or retreat        Investment
                                                                                  market leadership
Market attractiveness




                                    Absorption and
                        Medium                                 Transition             Growth
                                  gradual divestment


                                                         Absorption and gradual
                         Low         Divestment                                      Absorption
                                                              divestment


                                         Low                    Medium                  High

                                            Relative competitive advantages
Market Growth
Representation of market sizes, like market potential, market volume and market
growth in the course of time

Amount / Value         Market Potential
 6                                                           Sales Volume Provider A
                                                             Sales Volume Provider B
 5
                                                             Sales Volume Provider C
 4                                                           Sales Volume Provider D

 3

 2                                                             Market Volume

 1

 0                                                    Time

         Period 1   Period 2    Period 3   Period 4
Outpacing-Strategie
Increase in profitability by maximizing quality (high customer benefit) and cost
reduction


          high
                                      Cost reduction

                                                                Target of




                                                                            Offer differentiation
                                                               outpacing
Quality/
Customer benefit
                        Innovator




                                    Follower
           low
            expensive                                                               cheap
                                               Price / Costs
Innovation Strategies - Innovation Pentagram
A tool of innovation management


                                  Motive: Which motive
                                  targets the innovation?



     Business system:
     With what kind of                                  Advantage: What kind of
        business system                                 advantages does the
      is the innovation                                 innovation provide?
          implemented?




         Timing: When are we                   Revenue model: How is the
      applying these measures?                 revenue generated?
Marketing Concepts - Dimensions
Platzhalter für Ihre eigene Subheadline
Internationalization Strategies
Placeholder for own Subheadline

 This is a placeholder text. This text can be
  replaced with your own text.
 The text demonstrates how your own text                                             3                     4




                                                                          high
  will look when you replace the placeholder




                                                  Integration advantage
                                                                                   Global              Transnational
  with your own text.                                                             marketing              marketing

 If you don’t want to use the style and size
  of the fonts as used in this placeholder it’s
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                                                                          low
                                                                                 International         Multinational
                                                                                   marketing            marketing


                                                                                    low                     high

                                                                                      Differentiation advantage
Marketing Planning /
Objectives
Marketing Management - Process
Representation of the ideal type process of marketing management

                          Analysis phase                  Marketing situation analysis


                                              Determination of market segments and marketing targets
 Four classic phases




                                                        Definition of marketing strategy
                          Planning phase
                                                       Determination of marketing budget


                                                     Determination of marketing measures


                       Implementation phase          Implementation of marketing measures


                          Control phase                   Control of marketing results
Marketing-Planning Process
Marketing as a process devided in the five steps of market analysis, marketing
objective, strategy, marketing instruments and success control

       Market analysis       Where are you?
      (actual-condition)     What is the initial situation?

      Marketing targets
                             Wher do you want to be?
    (establish objectives)

     Marketing strategy      How will you reach your objectives?


   Marketing instruments     Which instruments will be used?


       Success control       Analysis of the difference between target and result
Marketing Targets
Economic and non-economic objectives of a business

         Economic marketing targets                Non-economic marketing targets
       Close connection to general               Connecting to mental processes of
      economic company objectives                   buyer (purchase behavior)

              revenue / profitability                     customer retention
    profit contribution / Return-on-Investment           customer satisfaction
          growth (revenue/sales/profit)                    name recognition
                   rationalizing                      attitude (image / sympathie)
                    capacities                              repurchase rate
            security (risk distribution)                  level of distribution
          market position /market share                  effects of knowledge
                                                     strength of purchase intention
Goal criteria − SMART
The 5 criteria that define a goal so that it can be used in project management




    Specific          Measurable        Attainable           Realistic         Time-bound


    Objectives have   A goal            It should be         The objective     The goal has to
    to be specific    achievement       attractive for the   needs to be       set within a
    and positively    should be         project team to      achievable in a   time frame.
    described.        measurable.       reach the goal.      realistic way.
Marketing Objectives - Target Pyramid
Placeholder for own Subheadline




                           Corporate            Retention of the economic and legal independency, increasing
                           objectives
                                                development of flexibility


                     Marketing      Financial         Increase in sales, improvement of
                     objectives      target           company image



            Price     Communication Distribution             Preparation of contract conclusions
        policy target    target        target




    PR- objectives     Exhibition objectives Advertisement          Managing customer data, raise purchase
                                               objectives           interest, increasing popularity of brand
Marketing objctives / Hierarchical levels of objectives
Objective system in form of a hierarchy


                                          Object of the company



                                          Company objective



                                          Function targets
                                          Marketing targets are
                                          function targets
                                          Instrumental target
                                          Levels of objectives and
                                          marketing instruments
CR-Marketing - Target Hierarchy
Operative and strategic main and sub objectives



                                                  Company related
                                                  sub-objectives
                                                  - Positioning on the market
                            Corporate
                                                  - Employee loyalty
                            objectives            - Employee motivation
                                                  - Innovation
                           Profit / Yield         Customer related
                                                  sub-objectives
                                                  -Customer contribution margin
                     Marketing overall targets    - Customer loyalty
                      Costs / Productivity /
                         Revenue / Sales
                                                  - Customer satisfaction
                                                  - Perceived performance quality
Conventional Marketing Targets
Targets for successful business




         Increasing               Increasing                   Improving
        market shares              revenues               contribution margin


  Popularity                            Price segment
  Image                                 Revenue
  Customer reach                        Distribution
  Customer satisfaction
  Customer loyalty
Marketing Plan
Process to create a marketing plan

                            Objectives and Indicators                              Strategy Implementation (Marketing
                            • Strategic and operational objectives                 Mix)
                              Financial objectives                                 • Product and pricing policy
                              Market-and customer-related                          • Communication and distribution
                              objectives                                              policy




                                                                     3. Strategy
      1. Analysis                                                                         4. Mix              5. Control
                                    2. Target




Strategic Analysis                         Strategy Selection and Combination         Success Control (progress and results)
• Market and environment                   • Competitive strategies                   • Effectiveness of marketing tools
   analysis                                • Portfolio strategies                     • Performance of the people involved
• Customer and competitor                  • Positioning strategies                   • Profitability of the chosen
   analysis                                • Innovation strategies                      products, markets and (customer
                                                                                        success estimation)
Marketing
Management
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templates

  • 3. Marketing Orientation Orientation in companies which strongly influenced the development of marketing Technological Orientation Marketing Orientation (innovation, perfectionism) (market share, competitive advantage) Employee Orientation Customer Orientation (satisfaction, qualification) (customer satisfaction, customer loyalty) Efficiency Orientation Financial Orientation (optimization, cost reduction) (result, revenue, profitability, liquidity) Social Orientation Quality Orientation (environment, public, image) (improvement, ISO-certification, quality price)
  • 4. Marketing Triangle Company, employees and customer Company Marketing Triangle Employee Customer interactive marketing
  • 5. Marketing - Simple Model Model of a simplified marketing system and connection between provider and market Communication to Market / Information Provider Market Delivery of Product / service Overall market Provider of the product or service Transaction of customers and interested parties Payments Feedback to provider / information
  • 6. Marketing - Perspectives Differentiation of 3 perspectives: The entrepreneurial approach (philosophy), instrumentation (technology) and management concept Marketing Philosophy Technology Management Orientation of Orientation of Orientation of the marketing to the marketing to the marketing to the most optimal the most optimal the most optimal satisfaction of effect of marketing process development, all customer instruments analysis, planning, requirements steering and controlling of all marketing activities
  • 7. Development Phases of Marketing Development phases in the last 100 years Sales and Market and Customer / Production distribution competition individual orientation orientation orientation orientation market oriented company management (marketing management) customer relationship management (CRM) marketing implementation marketing implementation marketing mix marketing mix marketing mix product policy product policy product policy price policy price policy price policy communication policy advertisement communication policy communication policy distribution policy sales sales distribution policy distribution policy mix extension 1900 - 1920 approx. 1920 - 1950 approx. 1950 - 1980 approx. 1980 - 1990 since 1990
  • 8. Development of Marketing Steps of development of Marketing Product orientation Market orientation Environment orientation Network orientation Pure production due to Specialization on individual Response to environmental, Web 2.0, social networks, popular demand needs and market political, technological or Word of Mouth (eg postwar period) segmentation societal changes 2020 2021 2022 2023 2024 2025 2026 Sales orientation Competition Dialog orientation Change from the Production orientation Interactive design of to distribution communication through the Emphasis on unique internet, e-mails selling points (USP)
  • 9. Marketing Pyramid Pyramid with (higher-ranked) marketing objectives on the top Marketing objectives Marketing strategies Marketing instruments Product- and Price and Communication Distribution program policy condition policy policy policy
  • 10. Marketing - Classical vs. Alternative Marketing Overview of some marketing tools Classical Marketing Alternative Marketing Guerilla marketing Viral marketing Public relations Search engines Outside advertisement / Billboard advertisement Mobile marketing Direct marketing Radio / TV / Movies Sales promotion Print media Product placement Fairs / Exhibitions Classical advertisement Event marketing Sponsoring
  • 11. Marketing Objects Differentiation according to different marketing objects and approaches Marketing object Consumer goods - Investment goods - Service 1 marketing 2 marketing 3 marketing marketing of marketing of marketing for products for products for immaterial goods and private usage occupational use service performance Non-Profit- Social Destination Trade 4 marketing 5 marketing 6 marketing 7 marketing marketing for marketing of a marketing of an marketing of a organizations without social idea explicit region trade and sales company gainful intent (no organization) (tourism) (retail)
  • 12. Marketing - Sales Markets Differentiation according to 3 sales markets and the participating partners Marketing B - to - B B - to - C C - to - C Business-to-Business- Business-to-Customer- Customer-to- Marketing Marketing Customer-Marketing (company customer) (private customer business) Marketing of one Marketing of a Marketing of a private company to another company household to another company to a private house old private household (i.e. production machines) (consumption goods) (i.e. private sales on ebay)
  • 13. Characterization of Markets - Types of Goods Types of assets and their usage situations Consumer Goods Capital Goods Services Consumer goods (e.g. food) Are used by production companies Immaterial benefits, and durables (e.g. cars) satisfy to produce further goods. Buyers often incurred only at the time immediate needs, and are directly are usually establishments or of consumption. The customer is put into use by the buyers public companies. part of the performance / service. (consumers). Single, clear identifiable Services for customer with Mass-Market (B2C) customer (B2B) a high use of resources
  • 14. Market Segmentation Scientific level of consideration Market Market Capture Segmentation Market Processing Explanatory Segments- models Acquisition of Information Selection of Specific use of of purchase information processing segments instruments pattern Consumer-oriented approach Method-oriented approach Management-oriented approach
  • 15. Market Segmentation Objectives, methods, strategies of market segmentation Lead Structure Approaches of Market Segmentation behavior-oriented Reasons/ Meaning OBJECTIVES method-oriented STRATEGIES management-oriented Quantitative Qualitative
  • 16. Market Definition Hierarchy representation for the preparation of a market analysis of companies with a broad range of products or services Overall Market Strategic management Definition Market 1 Market 2 Market 3 of markets (Description) (Description) (Description) Strategic business units SBU 1 SBU 2 SBU 3 Marketing Segment A Segment B Segment C Sub Market A Sub Market B Sub Market C
  • 18. Situation Analysis - Search Fields Search fields for the identification of potential chances and risks Environment analysis Market analysis Frame conditions:  political  social Competitor  technological  economical  ecological Company Stakeholder: Supplier Customer analysis  employees  investors  unions  etc. Substitute products
  • 19. Market Analysis - Strategic Situation Analysis Analysis of market participants, political and legal situation and social, technological, geographical and economical aspects Own Relevant Supplier, Sales mediator Legal, social and natural organization competitor and potential customers environment Potential analysis Competition analysis Market analysis Environment analysis Strengths and weaknesses analysis Opportunities and threats analysis SWOT Analysis Interpretation of data of strategic situation analysis are the foundation of the following marketing decisions
  • 20. Marketing - Situation Analysis Check list with basic questions to clarify the initial situation What is the market where the company operates and 1 how can it be defined and narrowed? Who is involved in the sales process? 2 What determines the behavior of these groups? 3 Which competitors are currently operating on the market? Do public interest groups or any external stakeholders have an 4 impact on your company policy? What is the actual-situation of the company? 5 What are your strengths and weaknesses?
  • 21. Market Analysis - Company Analysis Corporate philosophy (1/6) Corporate policy Corporate vision Corporate idea Insert description and notes in Insert description and notes in Insert description and notes in key words. key words. key words.
  • 22. Market Analysis - Company Analysis Corporate philosophy (2/6) Corporate identity Corporate culture Corporate objectives Insert description and notes in Insert description and notes in Insert description and notes in key words. key words. key words.
  • 23. Market Analysis - Company Analysis Corporate potentials (3/6) Development Marketing Production -research/ development -marketing concept -technology -know how -standards -capacity -patent -brands -productivity -development status Insert description and notes in Insert description and notes in Insert description and notes in key words. key words. key words.
  • 24. Market Analysis - Company Analysis Corporate potentials (4/6) Procurement Financing Company - procurement systems -capital requirements -organization - supplier relationship - investment intensity -value chain - purchasing power Insert description and notes in Insert description and notes in Insert description and notes in key words. key words. key words.
  • 25. Market Analysis - Company Analysis Corporate resources (5/6) Material resources Financial resources Employees - installations - liquidity -staff situation - interior -reserves - education -equipment -possibilities to raise capital - staff development Managers IT-equipment Other - quality of leadership - sort Insert description and notes in - business experience - actuality key words. - age structure - complexity
  • 26. Market Analysis - Company Analysis Company position on the market (6/6) Markets Advantages Product mix Cost- Price -overall and partial - product and - revenue - price per piece- market - market share performance advantages - profitability price relations -market and sales profile - innovations - age profile - value chain - protection against replicates Insert description and Insert description and notes in key words. Insert description and Insert description and notes in key words. notes in key words. notes in key words.
  • 27. Potential Analysis Inspection of the position of own company on the market according to the following factors TV campaign Documentary Capital Employees brand image of positioning of company, capital resources, number of employees, company, market share of provider of creditworthiness structure, separate product brands qualification product brands and motivation Location Sales Partner Customer location quality, distribution relation to number of customers, infrastructure, organization cooperation customer potential, business locations, and distribution customer retention distribution in target area partners (loyalty vs. fluctuation)
  • 28. Market Analysis - Strengths and Weakness Strengths and weaknesses profile Own company Other Company Weakness Strength Criteria -3 -2 -1 +1 +2 +3 Product range (quantity) Product range (quality) Price Service (general) Availability by phone Customer satisfaction Supplier satisfaction …
  • 29. Competition Analysis Example Characteristic high low 1 2 3 4 5 6 7 8 9 Quality Price Performance Usage Image Environment-friendliness Design Additional functions Your product Competitor’s product
  • 30. Marketing - Representation of Market Volume Representation of market volume and its development as a diagram Market potential Number of possible customer Sales volume or sales of a or amount if all customers provider / company are prepared to buy (at the given price) Market volume Market share Market capcity Total number of possible customer Actual sales or sales for or max. amount of products that can be used all vendors at the market consumed / (if price does not matter) Market volume Saturation = x 100% Market potential
  • 31. Characterization of Markets - Sizes Relationship between market potential, market volume and market share to assess the market attractiveness Relative Market Share A Market Share = Market Volume Company A Market Share B Market Share Total sales or a turnover Market share of a company and the ratio of an industry including of sales / turnover of the company to the all competitors market volume Relative Market Share Ratio of Market share of a company to the market share of the strongest Market Potential competitor Capacity of the market up to market saturation
  • 32. Market - Description/ Term Definition Terms to describe markets Market potential: Market volume: equates to the absorption capacity of the realized / scheduled sales or revenue for a market (market capacity) or the volume similar product for example for one year. of the possible deductable amounts of one Clearly more specific than the market product at a certain market. potential. Market potential Market- Sales / Revenue Absolute Relative exhaustion volume of the company market share market share Market volume Market exhaustion: Relative market share: percentage value that indicates to what Absolute market share: indicator of market position by degree the possible customer of a product market share, that the company has relating their own sales to the sales would consume it. (Market limit used as a realized on a certain market of its largest competitor in the gauge for future market growth) (sales or revenue) industry.
  • 33. Market Analysis - Environment Analysis Placeholder for your own Subheadline Calculation Colleague gen. FTL +/2 Dep. 4 Lead Customer +/2 gen. Engineer Dep. 1 +/3 +/2 DB +/2 Construction o/0.5 +/2 Design Intranet engineer k/0.5 Design +/3 Dep. 4 engineer o/1 Dep. 4 o/1 o/1 Internet +/3 Customer Supplier +/1 gen. Design /0 Quality of connection engineer +/1 + perfect Dep. 4 Attempt o normal K critical Customer Feedback Reference The text demonstrates how Frequency of connection Calculation your own text will look when 3 intensive 2 medium you replace the placeholder 1 low with your own text. 0 nonexistent
  • 34. Opportunities - Threats-Analysis Analysis about the company’s opinion on environmental changes and where adjustments need to be done Criteria Opportunities Threats Marktsituation Market structure x Market potential/ market volume x Customer structure x Competitor x Environment / Frame conditions Laws / Taxes x Society x Ecology x Technological Development x Strength Product range x Prices x Organization / Management x Cash Flow x Weaknesses Locations x Marketing performance x Innovation ability x Financial resources x
  • 35. Chance-Risk-Analysis Chances and Risks with possible development outside the company and their influence on marketing strategy and business planning Opportunities Threats new product development in own company development of a new product by the competitor own innovations innovations of the competitor new target groups and buyer levels development of new competitors opening new markets in other countries development of new competitive suppliers in other countries increasing demand development of over-production recovery of the overall economy weakening of the overall economy loosening or changing of relevant laws limited measures and legislative processes currency exchange revenues on foreign markets through exchange rate losses on foreign markets through negative changes positive change of exchange rates of the exchange rate technological development / change of base technologies
  • 36. Strength and Weaknesses Analysis Analysis of internal Company Resources Relevance Sector Success Factor Notes 1 2 3 4 5 Range of service Pricing Image Market share Market growth Sales development Distribution Sales network Advertising Marketing and Complaint management Sales Adherence to schedules Customer structure Order processing Sensitivity to economic situations Customer service Market cultivation Sales representatives Market research Sales planning Customer loyalty
  • 37. SWOT-Analysis Enter your subheadline here Strength Weaknesses External Analysis Opportunities Threats
  • 38. Gap Analysis Revenue targets and their development in the course of time Target value i.e. revenue Strategic gap Development limit New business Potential Operative gap core business Core business Present Planning horizon time
  • 39. ABC-Analysis ABC Analysis is methodology that gives a quickly and simple review of assortments of products in retail, wholesale or manufacturing businesses Turnover / Value in % 100% 80% 60% A B C 40% 20% Range of Products / Quantity in % 0% 0% 20% 40% 60% 80% 100%
  • 40. ABC-Analysis Placeholder für Ihre eigene Subheadline Percent Sales 2010 Commulated No. Customer Customer (in Dollar) Sales 1 5% Placeholder 100,000 16,4% 2 10% Placeholder 95,000 31,9% 3 15% Placeholder 90,000 46,7% 4 20% Placeholder 85,000 60,6% 5 50% Placeholder 30,000 82,3% 6 100% Placeholder 300 100% 610,400
  • 41. Quality and Price Positioning Relative positioning of different product categories high Brand article Relative quality No-names Trademarks low low Relative price high
  • 42. Seller / Buyer's Market - Features Comparison and limits of the characteristics of the seller and buyer's market Activities of supplier Activities of demander Features Seller‘s Market Buyer‘s Market Economic Scaricity economy Affluent societies development stage Ratio of supply Demand> Supply Supply> Demand (Excess demand) (Surplus) and demand Demand more active than provider Providers more active than buyers Bottleneck area Procurement and / or production Turn over of company Primary efforts Rational extension of procurement Awakening of demand and creation of company and production capacity of preferences for their own
  • 43. Market Attractiveness - Competition Advantage Portfolio 1/3 Analysis of portfolio categories according to the criteria lists Evaluation of market attractiveness Coefficients Coefficients Criteria Weigh. 0 0,1 0,2…0,8 0,9 Index Criteria Weigh. 0 0,1 0,2…0,8 0,9 Index 1 1 1. Market growth 3. Energy / Accommodation 2. Market quality - interference of accommodation - Profitability of the branch - influence of profitability through - Tolerance for price policy price incensement - Technological level - existence of alternatives - Protectability of know how 4. Environment situation - Intensity of investments - Economic dependency - Intensity / structure of competition - Inflation effects - Number / structure of potential consumer - Dependency on legislation - Entry barriers - Dependency on public - Distribution requirements - Risk of public interference - Variability of competition conditions - Pollution of nature - Substitution possibilities TOTAL 1,0
  • 44. Market Attractiveness - Competition Advantage Portfolio 2/3 Analysis of portfolio categories according to the criteria lists Evaluation of market attractiveness Coefficients Coefficients Criteria Weigh. 0 0,1 0,2…0,8 0,9 Index Criteria Weigh. 0 0,1 0,2…0,8 0,9 Index 1 1 1. Rel. market position - Pot. increase of productivity - Market share - Environmental friendly production - Size and financial power -Delivery conditions - Growth rate - Sustain market share with given supply conditions - Profitability - Cost situation with energy and raw - Risk material supply - Market potential 3. Relative R&D potential 2. Rel. product potential - Status of research - Process efficiency - Development compared to market position - Cost advantage - Innovation potential - Innovation ability 4. Rel. employee qualification - License relations - Professionalism and culture - Adaptability - Innovation climate - Sustain market share with capacity - Quality of management systems - Location advantage TOTAL 1,0
  • 45. Market Attractiveness - Competition Advantage Portfolio 3/3 Display of portfolio graphic according to results of prior criteria lists low medium high Investment and growths strategies A high Market attractiveness Selective strategies medium B Absorption and divestment strategies C low Relative competition advantage
  • 46. Market Segmentation Different types and levels of market segmentation Segmentation Undifferentiated marketing Differentiated marketing Concentrates marketing Micro marketing Mass Product variety Segment Nische Individual marketing marketing marketing marketing marketing Products, distribution and Prices, distribution and High degree of market High specialization and It’s the highest degree of advertisements are advertisement measures coverage serves multiple or concentration on special segmentation and external designed the same for all are developed for different many different sub sub markets or clearly opposite to mass customers. target groups. markets. defined customer groups. marketing. Difference between Orientation according to Further sub divisions: Niche providers are highly Segmentation of market separate segments are target groups creates specialized and pursuit a down to the individual being ignored and the better approaches for the 1. Concentration to only secure market position in customer by increasing market is served with one determination of market one segment procurement. individualization tendency offer. chances. 2. Selective specialization and technical progress. 3. Product specification 4. Market specialization Customized mass 5. Complete segment production coverage (Mass customization / One-to-One-marketing) Broad target group Narrow target group approach approach
  • 47. Segmenting-Targeting-Positioning (STP-Model) Three steps to target group oriented marketing Market segmentation Target market determination Positioning Determination of Development of assesment Development of a lasting 1 segmentation variables/ segmentation of Market guidelines for the determination of attractiveness. Finally the selection competition position and determination of tasks and and concentration on one or more performance program for selected Development of segments. target segments. 2 resulted segment profile Estimation of 3 attractiveness of each Segment 4 Selection of target segments Zoning of market in clear defined target groups / Customer groups with own products and marketing-mix. 5 Development of possible positioning concepts Selection and 6 Communication of positioning concept Time
  • 48. Segmenting-Targeting-Positioning (STP-Model) Three steps in the process of market segmentation Segmentation Targeting Positionierung  Determination of segment variables  Analysis of estimation  Designing of a possible of attractiveness of positioning concept  Definition and segmentation of each segment the market  Selection and  Selection of target communication of  Development and description of segments positioning concept resulting segment profiles
  • 49. Customer Segmentation Differentiation and description of target groups Customer segment X Characteristics: Feature A  …  …  … Core motive: Customer segment Y Characteristics :  …  … Feature B  … Core motive: Individual Customer segment Z Characteristics :  …  …  … Core motive:
  • 50. Market Entry Barriers Institutional and behavior dependent market entry barriers Market entry barriers Behavior dependent market Institutional market entry barriers entry barriers Tariff barriers Non-tariff barriers Market side barriers Company side barriers Tolls Import quotes Demand behavior Information availability Psychological distance Capital flows limitations Language / culture of management Minimum /maximum prices Distribution systems Administrative Local content regulations constrains Norms / standards Self limitations
  • 51. Values and Lifestyles (VALS) System of lifestyle-typology of consumer VALS Typology Values and Lifestyles (VALS) Extroverts Notleidende Introverts Achievers Sustainers Socially-Conscious Emulators Survivors Experimentals Belongers I-am-me s
  • 52. Competitive Advantage Representation of the thre influencial factors customers, organization and competition Expectation on the product and benefit Competitive advantage
  • 53. Market Research - Process Scheme Separation of market research process in five phases Definition Phase Data Collection Phase Documentation Phase Dokumentations- Problem definition and Presentation of results phase development of survey Research report distributer Präsentation der Ergebnisse targets Topic of research Forschungsbericht Verteiler D1 D2 D3 D4 D5 Designphase Data analysis phase Marketing Fixation of target groups Evaluation of data decision Selection of research methods Interpretation Recommendations and instruments Prognosis that influence Organization (time/cost) decisions Sources for data
  • 54. Sales Orientation vs. Marketing Orientation Comparison The sales orientation Initial point Main focus on Measure Target existing existing advertisement, profit through production products sales promotions high revenue The marketing orientation Initial point Main focus on Measure Target long term profit actual customer integrated expectation through the markets requirements marketing approach sustainable satisfaction of customers
  • 55. Competition Strategies Differentiation between cost leadership, time leadership and quality leadership Cost leadership Time leadership Quality leadership Causing lower costs than Choice of time of market Determination and competitor i.e. though entry. implementation of technical production of large amounts Previous development time, improvements and product and low priced procurements. handling time and production improvements with the target Mostly this doesn’t require a time are important here. to always provide the best large market share. quality on the market.
  • 56. Competitive Advantage - 5 Principles A competitive advantage over the competition is a superior performance or property A distinction is made between five principles: Principle of Opportunity Perceptual Concentration Consistency survival principle principle principle principle At least one strategic Creating competitive Only competitive At least one strategic Focus on strategic competition advantage advantages through advantages that the competitive advantage competitive benefits must be present important competitive customer subjectively must be present which are most (long term). parameters. perceives count (not (long term). important for (the more the greater technical advantages). the customer. the chance)
  • 57. Competitive Advantage - Advantage Matrix Representation of the relationship of competitive advantages and quantities Volume has no /or Volume has great advantages small advantages Many Niche business Special business competitive advantages (Restaurants, consultants) (Journals, instruments) Only a few Patt-business competitive Volume business advantages (Basic materials chemistry, standard (PC's, IC's) possible paper)
  • 58. Competition Strategies Representation of coherences between competitive advantages and amounts + Cost leader Benefit leader Profitability - ? + - Cost leader and benefit leader require singularity characteristics otherwise they lose their leading positions.
  • 60. Competition - Driving Forces The five driving forces of sector competition (according to Porter) Potentially new competitors Threat of new competitors Bargaining power of suppliers Competitors in the industry Suppliers Buyer Rivalry among existing companies Bargaining power of buyers Threat of substitution products or services Substitution products
  • 61. Marketing - 4P-Model Product, Price, Place, Promotion PRODUCT PRICE PLACE PROMOTION
  • 62. Marketing - 4P-Model Product, Price, Place, Promotion
  • 63. 5P-Model Expansion of the 4P model with the aspect of “Personnel” PRODUCT PRICE PLACE PROMOTION PERSONNEL
  • 64. 5P- Model Expansion of the 4P model with the aspect of “Personnel”
  • 65. Marketing 4P‘s Enter your subheadline here 4Ps Product Price Promotion Place Main usage Conditions Advertisement Strategic distribution/ sales Physical Side usage Rebate Sales distribution/logistics Additional usage Discount Sponsoring Location Brand Leasing Sales promotion Content Event Quality PPR Packaging
  • 66. Marketing Mix - 7P Classical instruments Classical and new instruments New instruments Product policy „product“ Process policy Price policy „process“ „price“ Distribution policy Equipment policy „place“ „physical facilities“ Personnel policy Communication policy „personnel“ „promotion“
  • 67. Marketing Mix Example with individual factors Brand name Slogan Logo Product design / ad campaign packaging Brochure / Corporate design Sales Training Brochures / Product Press conference presentation Reseller discount Businesspaper Give-Aways Website
  • 68. Marketing Mix (4P‘s) Components of the marketing mix Product policy Price policy Communication policy Distribution policy  Product innovations  Price  Media advertisement  Distribution systems  Product improvements  Price deductions  Sales promotion  Sales organs  Product differentiation  Rebates and discounts  Direct marketing  Logistic systems  Marking  Delivery conditions  Public relations  Naming  Payment conditions  Sponsoring  Service performance  Personal communication  Assortment planning  Fairs and exhibitions  Packaging  Multi-media communication  Employee communication Marketing mix Sub-markets and customer groups
  • 69. Service marketing (from 4P’s to 7P’s) Comparison of 4P´s and 7P´s 4 P‘s of the classical 7 P‘s of the consumption goods marketing service marketing advertisement product product positioning employees advertisement price positioning physical price facilities process management
  • 70. AIDA- Model Step model in 4 phases (Phases could variy) A I D A Attention Interest Desire Action Attract the The customer is The desire for The cusomer customer‘s interested in the the product is probably attention product awakened purchases
  • 71. AIDA - Action Principle The stage model includes four phases the Customer goes through in order to make the purchase decision Physical reaction Action (economical) The customer buys the product The desire for the product Desire is awakened (demand) Psychological reaction (pre- economical) The customer is interested in Interest the product Attention of the customer Attention for the product is excited
  • 72. Marketing 3C’s Triangle Enter your subheadline here Customer Distributors Clients Competitors Suppliers
  • 73. Diamond-Model - National Competitive Advantages Thesis to assess the competitive abilities of states in terms of individual industries (according to Porter) Coincidence Strategy, structure and competition Factual conditions Demand conditions Related and supporting industries Government
  • 74. Porter‘s Five Forces Analysis Enter your subheadline here New Competitors Threat of new competition Competition on relevant Bargening power Bargening prower market = rivalry among of supplier competitors of customer Substitution products = threat of substitution
  • 75. Five Forces Five (+1) competitive forces according to Porter (supplement through stakeholder) Potentially new competitors Potential further stakeholder threat through new competitors Potential bargaining power and the ability to intervene in the industry events Competitors/ rivalry between industry suppliers Suppliers Customer bargaining strength of bargaining power of customers suppliers Substitute products threat through substitute products or services
  • 76. S-Curve Concept - Life Cycle Representation of the life cycle of technology in the course of time Basic technology Pace setting technology time development phase growth maturity age phases Life cycle of a technology
  • 78. Differentiation - Strategic Marketing Position of the strategic marketing between strategic management and marketing management
  • 79. Conception Phases of Marketing Enter your subheadline here Situation Analysis 1 Marketing Control 7 2 Marketing Objectives Implementation / 6 Customer 3 Marketing Strategy Realization Marketing Instruments/ 5 4 SBU-Planning Marketing-Mix (Strategic Business Units)
  • 80. Marketing - Communication Policy Ten-step model of marketing communication Measure effect Step 10 Apply communication measures Step 9 Pre- test, Control of effect, return result to step 7, to apply Step 8 Return result at 5-9 improvements Plan separate communication measures Improvements Step 7 and corrections Budgeting and media selection (selecting advertising media) Step 6 Step 5 Develop communication strategy Step 4 Define communication targets and target groups Step 3 Derive marketing targets Step 2 Agree on company objectives Step 1 Situation analysis and prognosis for the company
  • 81. Four Codes of Brand Communication Communication model that implies that there are three more codes next to language responsible for concrete meaning Meaning Language History Symbols Sensorics Style Tell stories Protagonists Sensorial experience Rhetoric Show episodes Figures Stimulation of senses Wording Places of action Noises / colors Shapes / haptics Only the interaction of these four Codes makes the brand communication sustainably successful
  • 82. Core Competences / Product Pyramid Core competences as a base of the product pyramid, which are not easily adapted by other companies and therefor improve the benefit of the end product End product Core product Core competences BASE are valuable rare difficult to not sub- strength- immitate stitutable ened the more they are used
  • 83. Marketing Strategy - Influencial Factors Influencial factors Organizational Attitude to objectives and change and risk resources Marketing Strategy Competitor Market structure strategies and opportunities
  • 84. Marketing Strategy Marketing as market-oriented business management / business strategy Procurement Strategy Research and Business Strategy Production Strategy Development Strategy Quality Strategy Human Resources Strategy
  • 85. Elements of Marketing Concept Connection between the separate elements and their logical process structure Wishes, requirements Offer of products and demands and services Elements Markets Customer benefit and customer satisfaction Exchange, transactions and relations
  • 86. Market Areal Strategy Determination of geographic coverage Market areal strategies Inter- Multi- Local Regional National Global national national Process of geographic expansion
  • 87. Market Simulation Strategies - Stuck in the Middle Placeholder for own Subheadline Performance II: Preference strategy IV: Advantage high strategy Outpacing strategy Outpacing strategy „Stuck-in-the-Middle“ low high Price Security distance I: Over reaching strategy III: Price / Amount strategy low
  • 88. Marketing Strategy - Strategic Triangle Integrated marketing strategies include the strategic triangle of company, customer and competitor Customer Competitve advantage Own Competition Company
  • 89. Marketing Strategy - Strategic Pentagon According to Ohmae 1992 Customer Government Currency Company Competitor
  • 90. Innovation - Demand Pull and Technology Push Interplay between both strategies Company Market
  • 91. Media Strategy - Dimensions Analysis and visualization of the six most important parameter of media strategy Percentage of the reached target group Range Design of advertising Frequency of addressing the (for instance: color) and their target persons placement Impact Contacts Dominance Intensity Size, formats, advertising and The number of applied media spot lengths (Media mix) Repetition Frequency and timely intervals of the contacts
  • 92. Marketing Strategies Strategies according to individualization degree and customer relation Level of individualization of a product Customized Marketing Individual Marketing high individualization customer individual of product market development Mass-Marketing Relationship Marketing low standardized Individualization of market development customer relationship low high Individualization degree of customer relationship
  • 93. Strategic Marketing Questions and Marketing Where? How? When? What is the central When will the company In which market is the orientation of the become active on company active? marketing strategy? the market? Concentration of company's Conscious selection of markets Determination of market entry activities on particularly attractive and definition of future strategies time in compliance of the previous and promising markets with long-term orientation development and production effort
  • 94. Marketing Orientations Orientation of the company on the turnover market Starting Point Medium Objectives “ Produce as much Expansion / rationalization of Profit on increased Products/ Performance production and procurement volume as you can. ” Production orientation (seller‘s market) Products/ Performance Sales-political Profit on accordant “ Write off what instruments volume you‘ve produced. ” Sales orientation (saturation tendency) Market- research Bundle of Profit on long-term Customer wishes marketing satisfaction of “ Produce what you measures customers can write off. ” Market orientation (buyer‘s market)
  • 95. Cost Leadership The strategy of a company to reach sustainable competitive advantage be low costs is differentiated in 8 methods Economies of scale Economies of scope Experience effects Economies of learning Product design Process design Residual effects Capacity utilization Input-Costs the operational effectiveness Cost leadership
  • 96. Differentiation Strategy The strategy of a company to differentiate themselves positively from the competition from the customer’s point of view is separated in 6 different methods Price Image Support Design Quality Not differentiated Differentiation Strategy
  • 97. Market Field Strategies according to Ansoff Ansoff-matrix with the representation of product-market-strategies Markets Products/ Existing New Performance Market penetration Market development  Market presence  Internationalisation Existing  Market suppression  Market segmentation Product development Diversification  Product innovation  Vertical diversification New  Product differentiation  Horizontal diversification  Lateral diversification
  • 98. Market Area Strategies Basic principles for market areas / market development International Strategies  Multinational market  International market  World market National Strategies  Local market  Regional market  Cross regional market  National market
  • 99. Marketing - STP-Strategies Strategies of market davelopment S T P Segmenting Targeting Positioning Market segmetation, Segment evaluation, Positioning versus Differentiation. segmentation criteria to target market determination Establishment of a competition divide the markets and target group position in each target segment. into clearly defined determination. Selection of Selection and communication of customer groups the most attractive market a concept segments
  • 100. Competition Strategies Matrix for the devision and basic concept of competition strategies Overall market Differentiation strategy Cost leadership • performance/quality • price/costs Degree of competition • uniqueness • standard product Differentiation focus Cost focus • specific need • limited need • relatively price-inelastic • price elastic Sub-market Performance advantage Cost advantage Competitive advantage
  • 101. Competition Strategies Matrix for the devision and basic concept of competition strategies Overall market Strategy of quality Strategy of aggressive leadership cost leadership Degree of competition Strategy of selective Strategy of selective Quality leadership Cost leadership Sub-market Performance advantage Cost advantage Competitive advantage
  • 102. Competition Strategies Matrix for the devision and basic concept of competition strategies Strategic advantage Singularity from Cost advantage Strategic customers perspective target object Extensive Industry wide differentiation cost leadership Limitation to one segment Focusing
  • 103. Market Field Strategies according to Ansoff Ansoff-matrix with the representation of product-market-strategies Product Existing New Market Existing Market penetration Market development New Product development Diversification
  • 104. Norm Strategies - McKinsey/GE Enter your subheadline here Market- attractiveness  Specializing in few  Fight for the market strength  Maximum investments leadership high  Overcoming weaknesses  Concentration on Invest  Usage of strength  Retreat when missing preservation of existing Develop  Strengthening of poorly strength signs for continuous performing areas growth  Search for low risk  High investments in  Defending of position medium expansion possibilities attractive segment Devest  Minimizing of investments  Concentration of  Defense against Develop investments of attractive competitors  Rationalizing of internal and low risk areas processes  Increasing productivity  Defense of position in  Realization of profit Selective action  Sales with increasing most profitable area  Concentration of most Profit priority profits low  Improvement of product attractive segments  Reduction of fixed costs line  Defense of existing  No investments  Minimizing investments strength Competitive strength low medium high
  • 105. Norm Strategies - McKinsey/GE Matrix of norm strategies (threefold division of axis ) Keep High Investment or retreat Investment market leadership Market attractiveness Absorption and Medium Transition Growth gradual divestment Absorption and gradual Low Divestment Absorption divestment Low Medium High Relative competitive advantages
  • 106. Market Growth Representation of market sizes, like market potential, market volume and market growth in the course of time Amount / Value Market Potential 6 Sales Volume Provider A Sales Volume Provider B 5 Sales Volume Provider C 4 Sales Volume Provider D 3 2 Market Volume 1 0 Time Period 1 Period 2 Period 3 Period 4
  • 107. Outpacing-Strategie Increase in profitability by maximizing quality (high customer benefit) and cost reduction high Cost reduction Target of Offer differentiation outpacing Quality/ Customer benefit Innovator Follower low expensive cheap Price / Costs
  • 108. Innovation Strategies - Innovation Pentagram A tool of innovation management Motive: Which motive targets the innovation? Business system: With what kind of Advantage: What kind of business system advantages does the is the innovation innovation provide? implemented? Timing: When are we Revenue model: How is the applying these measures? revenue generated?
  • 109. Marketing Concepts - Dimensions Platzhalter für Ihre eigene Subheadline
  • 110. Internationalization Strategies Placeholder for own Subheadline  This is a placeholder text. This text can be replaced with your own text.  The text demonstrates how your own text 3 4 high will look when you replace the placeholder Integration advantage Global Transnational with your own text. marketing marketing  If you don’t want to use the style and size of the fonts as used in this placeholder it’s possible to replace it by selecting different options. 1 2 low International Multinational marketing marketing low high Differentiation advantage
  • 112. Marketing Management - Process Representation of the ideal type process of marketing management Analysis phase Marketing situation analysis Determination of market segments and marketing targets Four classic phases Definition of marketing strategy Planning phase Determination of marketing budget Determination of marketing measures Implementation phase Implementation of marketing measures Control phase Control of marketing results
  • 113. Marketing-Planning Process Marketing as a process devided in the five steps of market analysis, marketing objective, strategy, marketing instruments and success control Market analysis Where are you? (actual-condition) What is the initial situation? Marketing targets Wher do you want to be? (establish objectives) Marketing strategy How will you reach your objectives? Marketing instruments Which instruments will be used? Success control Analysis of the difference between target and result
  • 114. Marketing Targets Economic and non-economic objectives of a business Economic marketing targets Non-economic marketing targets Close connection to general Connecting to mental processes of economic company objectives buyer (purchase behavior) revenue / profitability customer retention profit contribution / Return-on-Investment customer satisfaction growth (revenue/sales/profit) name recognition rationalizing attitude (image / sympathie) capacities repurchase rate security (risk distribution) level of distribution market position /market share effects of knowledge strength of purchase intention
  • 115. Goal criteria − SMART The 5 criteria that define a goal so that it can be used in project management Specific Measurable Attainable Realistic Time-bound Objectives have A goal It should be The objective The goal has to to be specific achievement attractive for the needs to be set within a and positively should be project team to achievable in a time frame. described. measurable. reach the goal. realistic way.
  • 116. Marketing Objectives - Target Pyramid Placeholder for own Subheadline Corporate Retention of the economic and legal independency, increasing objectives development of flexibility Marketing Financial Increase in sales, improvement of objectives target company image Price Communication Distribution Preparation of contract conclusions policy target target target PR- objectives Exhibition objectives Advertisement Managing customer data, raise purchase objectives interest, increasing popularity of brand
  • 117. Marketing objctives / Hierarchical levels of objectives Objective system in form of a hierarchy Object of the company Company objective Function targets Marketing targets are function targets Instrumental target Levels of objectives and marketing instruments
  • 118. CR-Marketing - Target Hierarchy Operative and strategic main and sub objectives Company related sub-objectives - Positioning on the market Corporate - Employee loyalty objectives - Employee motivation - Innovation Profit / Yield Customer related sub-objectives -Customer contribution margin Marketing overall targets - Customer loyalty Costs / Productivity / Revenue / Sales - Customer satisfaction - Perceived performance quality
  • 119. Conventional Marketing Targets Targets for successful business Increasing Increasing Improving market shares revenues contribution margin  Popularity  Price segment  Image  Revenue  Customer reach  Distribution  Customer satisfaction  Customer loyalty
  • 120. Marketing Plan Process to create a marketing plan Objectives and Indicators Strategy Implementation (Marketing • Strategic and operational objectives Mix) Financial objectives • Product and pricing policy Market-and customer-related • Communication and distribution objectives policy 3. Strategy 1. Analysis 4. Mix 5. Control 2. Target Strategic Analysis Strategy Selection and Combination Success Control (progress and results) • Market and environment • Competitive strategies • Effectiveness of marketing tools analysis • Portfolio strategies • Performance of the people involved • Customer and competitor • Positioning strategies • Profitability of the chosen analysis • Innovation strategies products, markets and (customer success estimation)