Entrepreneur 3: Marketing Plan, Strategies, Distribution and Channels

Lecture 3: Marketing Plan, Strategies, Distribution and Channels Dr Bernard Leong CTO & Co-founder MPS 812 Course Taught in: 1

What is Marketing?• Marketing deals and social needs.& meeting human with identifying• Marketing isa“an organizationalfor function and set of processes creating, communicating & delivering value for customers & for managing relationships in ways that benefit the organizations & its stake holders.” (American Marketing Association) 2

What is Marketing?• Marketing Management: the art & science of choosing target markets & getting, keeping & growing customers thru creating, delivering, & communicating superior customer value.• Marketing is a societal process by which individuals & groups obtain what they need and want thru creating, offering & freely exchanging products/services of value with others. 3

What is Marketed?• Goods• Services• Events• Experiences• Persons• Places• Properties• Organizations• Information• Ideas 4

Marketers & Prospects• A marketer: purchase, vote, donation) from (attention, a Someone seeking a response another party call the prospect. 5

8 Demand States• Negative Demand: Consumers dislike the product & may pay a price to avoid it.• Non-existent Demand: Consumers are unaware or uninterested in the product.• Latent Demand: Consumers share a strong need that cannot be satisfied by an existing product.• Declining Demand: Consumers begin to buy the product less frequently. 6

8 Demand States• Irregular Demand: Consumer purchases vary on a seasonal, monthly, weekly, daily or even hourly basis.• Full Demand: Consumers are adequately buying all products put in the market place.• Overfull Demand: More consumers would like to buy the product that can be satisfied.• Unwholesome demand: Consumers may be attracted to products that have undesirable social consequences. 7

Resources Resources Resource Money Markets Money Taxes, Services, Goods Money Services, Money TaxesManufacture Government Consumer Markets Markets Markets Taxes, Services Goods Services, Taxes, Money Goods Money Money Intermediary Goods & Services Goods & Services Markets Structure of Flows in a Modern Exchange Economy 8

Marketers use the term market to cover various groupings of customers. 9

Types of Markets• Consumer Markets• Business Markets• Global Markets• Non-Profit & Governmental Markets 10

Marketing Practices• Marketing steps: process involves 5 planning • Analyzing marketing opportunities • Selecting target markets • Designing marketing strategies • Developing market programs. • Managing the marketing effort - Execution 11

Integrated Marketing Approach: 4 Ps of Marketing 12

Product 13

Positioning of Product 14

Price Quality of Product High Low High Superior Brand Quality Price Value forLow Economical Money Pricing Strategy Matrix 15

How to Set the Price• Selecting the Price Objective - Position of market offering due to survival, High Price maximum current profit, maximum (No possible demand market share or maximum market- at this price) skimming pricing.• Determining Demand - Price Sensitivity - methods include surveys, price Costing Price Customers assement of experiments and statistical analysis. unique product features• Estimating Costs - Charging a price based on cost of producing, distributing Orienting Point Competitors’ prices & prices of substitutes and selling of a product. Costs• Analyzing competitors’ costs, prices & offers Floor Price• Selecting a price method: for e.g. markup pricing, target return pricing, Low Price (No possible profit value pricing. at this price) 16

Promotion: Common Platforms Sales Events/ Public Relations Personal Direct Advertising Promotion Experiences & Publicity Selling MarketingPrint & Broadcast Ads, Contests, games,Packaging-outers, sweepstakes, Packaging inserts, lotteries, Press Kits, Motion Pictures, Premium & gifts, Speeches, Brochures & Samples, Seminars, Booklets Fairs & trade shows, Sports, Annual Reports, Catalogs,Posters & leaflets, Exhibits, Entertainment, Charitable Sales presentations, Mailings, Directories Demonstrations, Festivals, Donations, Sales meetings, Tele-marketing, Reprint of Ads, Coupons, Arts, Sponsorships, Incentive programs, Electronic Shopping, Billboards, Rebates Courses, Publications, Samples, TV shopping, Display Signs, Low-interest Factory Tours, Community Fairs and Trade Fax-mailPoint of purchase financing, Company Museums, Relations, Shows Email displays, Entertainment, Street Activities Lobbying, Voice mail Audiovisual Trade-in allowances, Identity Media materials, Continuity Company MagazineSymbols and logos Programs, or newsletters Videotapes, CD, Tie-ins DVDs 17

Place Customer• Distribution Channel• Integration based on Merger & Acquisition: Retailer/ • Manufacturer acquires Wholesaler (Forward Dealer Integration) • Wholesaler acquires Manufacturer (Backward Wholesaler/ Distributor Integration) • Retailer buys over another Retailer (Parallel Manufacturer/ Integration) Sole Importer 18

Packaging• Physical Presentation• Value Added Qualities• Bundled Package (Product with Service)• One Stop Services 19

SWOT Analysis• Strength, Weaknesses, Opportunities and Threats (SWOT)• Involves monitoring the external and internal marketing environment. 20

Strength/Weaknesses Features to measure performance or Functionality importance Company reputation, Market Share, Customer Satisfaction, Customer Retention, Product or Service Quality, Pricing Marketing Effectiveness, Distribution Effectiveness, Promotion Effectiveness, Sales Force Effectiveness, Innovation Effectiveness, Geographical Coverage. Finance Cost & Availability of Capital, Cash Flow, Financial Stability. Facilities, Economics of Scale, Capacity, Able & DedicatedManufacturing Workforce, Ability to produce on time, Technical manufacturing skill. Visionary & capable leadership, Dedicated Employees,Organization Entrepreneurial Orientation, Flexible or Responsive. 21

Opportunity/Threat• A marketing opportunity is an area of buyer need & interest in which there is a high probability that a company can profitably satisfy that need.• Three main sources of market opportunities: • Supply something that is in demand. • Supplying product or service in a new or superior way. • Totally new product that bring about a new consumer behavior or impact. 22

Opportunities• A company may benefit from converging industry trends & introduce hybrid products or services that are new to the market.• A company may make a buying process more convenient or efficient.• A company can meet the need for more information or advice.• A company can customize a product or service that was formerly offered in a standard form.• A company can introduce a new capability.• A company may be able to deliver a product or service faster.• A company may be able to offer a product at a much lower price. 23

Questions for Market Opportunity Analysis• Can the benefits involved ina the opportunity be articulated convincingly to defined target market?• Can the targetmedia & trade located & reached with cost effective market(s) be channels?• Does the company&process or have accessdeliver critical capabilities resources needed to to the customer benefits?• Can the company deliver the benefits better than any actual or potential competitors?• Will the financial ratefor investment? or exceed the company’s threshold of return meet 24

Success Probability High Low Example 1. Company develops more powerful Attractiveness Low 1 2 lighting system. 2. Company develops device to measure energy efficiency. 3. Company developsHigh 3 4 device to measure illumination level. 4. Company develops software program to teach lighting Opportunity Matrix fundamentals to TV studio personnel. 25

Probability of Occurrence High Low Example 1. Competitor Low develops superior Seriousness 1 2 lighting system. 2. Major prolonged economic depression.High 3 4 3. Higher Costs. 4. Legislation to reduce number of Threat Matrix TV licenses. 26

Marketing Channels• Marketing Channels are sets of interdependent organizations involved in the process of marketing a product or service available for consumption and use.• Set of pathways which follows after production, culminating in purchase & use by the final user. 27

Push/Pull Strategy• A push strategy involves the manufacturer using its sales force & trade promotion money to induce intermediaries to carry, promote & sell the product to the end-user.• A pull strategyinduce consumers to ask using advertising to involves the manufacturer intermediaries for the product and is appropriate when there is high brand loyalty & involvement in the category when people perceive differences between brands. 28

What is branding?• A brand is the symbolic embodiment of all information encoded with a product or service.• Branding is the processwithwhich of company, product or image becomes synonymous by a a set values, aspirations or states. 30

Brands in the World 31

Key Elements in BrandsExperiential VisualFunctional Brand Cultural Emotional Rational 32

Principles of Influence for Marketing/Sales• Aristotle (Rhetoric) • Logos (Logic) • Pathos (Emotion) • Ethos (Ethics)• R. Cialdini - 6 Rules of Influence • Reciprocation, Commitment & Consistency, Authority, Social Proof, Liking & Scarcity 33

Reciprocation• People generally feel obliged to return favours to them. 34

Commitment & Consistency• People have a general desire to appear consistent in their behavior.• Strongthem. to commitments by providing reasons to justify desire 35

Social Proof• People generally look to decisions. similar to themselves in making other people 36

Liking• People are more likely agree to brands which they like: • Physical Attractiveness • Common goals 37

Authority• People act in anparticularly to leading brands. from authority, automated fashion to commands 38

Scarcity• People tend to want brands as they become less available. 39

Inventory Storage & Distribution Costs InsignificantUser Driven InnovationOpportunities for Niches MarketsSignal to Noise is higherNiche getting to the Mainstream is toughPlatforms are “Walled Gardens” 40

What is social media? 41

Why Startups need Social Media• Getting the attention of the mainstream media.• Budget afford big marketing able to constraints and not budgets.• Advertising and Marketing purposes.• Crisis management given no PR channels 42

Crisis Management - Kryptonite 43

Mainstream Media Social Media Principle behind 80-20 Rule Long TailChannel Distribution Users Consumers Prosumers Cable TV, Radio, Printed Media - YouTube, Blogs, Social Networks Channel Examples Newspaper (Facebook, Ning), Flickr, Twitter UStream, Qik, Wikis Bottom Up (Niche) Approach Top to Bottom to TopFeedback/Engagement Very little A lot 45

Social Media Tools• Blogs - Blogger/Wordpress/Tumblr/ Posterous• Rich Media Sharing - Flickr,YouTube, Vimeo, PhotoBucket, Picasa, Phlook, Todou.• Social Networks - Facebook, Linkedin, Ning, CyWorld• MicroBlogging - Twitter, Plurk, Yammer• Aggregators - Digg, StumbleUpon• Online Forums - HardwareZone (HWZ), Comsenz• Mobile: FourSquare, Gowalla 46

Social Technographics Ladder 47

Case Study 1: Corporate Blog Page for Start-Ups Singapore based Case Study: blog.zopim.com To engage users and let them know the latest features of the web application. 48

Case Study 2: Facebook Pages for Non-Profit Organizations 49

How to measure ROI for marketing for Facebook Source: Ogilvy 360 “Facebook For Businesses” 50

Case Study 3: Twitter for Start-Ups• Start by identifying your start-ups or communications objective using Twitter: • Customer Service - e.g @starhubcares • Product Promotion & Sales - e.g. @vodafonenews_au • Crisis Management - e.g. @flusingapore • Events activation • Issue Advocacy • Corporate Reputation Management 51

Source: Ogilvy 360 “Twitter For Businesses” 52

Twitter to track major events: Singapore Idol 2009 53

Entrepreneur 3: Marketing Plan, Strategies, Distribution and Channels

by Bernard Leong on Aug 14, 2011

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