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Advanced advertising   marketing
 

Advanced advertising marketing

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    Advanced advertising   marketing Advanced advertising marketing Presentation Transcript

    • ADVANCEDADVERTISINGMarketing
    • What exactly is “Marketing”?
    • Marketing Marketing consists of the strategies and tactics, used to identify, create and maintain satisfying relationships with customers that result in value for both the customer and the marketer.
    • Dissecting the definition Strategies and tactics Strategies – the direction marketing efforts take over a period of time Tactics – actionable steps or decisions made to follow the strategies
    •  Satisfying relationships – Provide products and services that customers want and make the customers feel that they are partner in the transaction, rather than just a source of revenue. Identify, create and maintain – Identify the customers, create avenues to build relationship with customers, and take steps to keep customers satisfied and happy.
    •  Value for both customer and marketer – both the customer and marketer gain benefit, not necessarily monetary.
    • Role of Marketing Developing products that satisfy needs and enhance society‟s quality of life. Creating a competitive environment that helps lower product prices. Developing product distribution system to provide product to a large number of customers and many geographic locations Building demand for products that require organizations to expand labor force
    • Marketing Mix A planned mix of the controllable elements of the product‟s marketing plan. They are adjusted until the right combination of the elements is found to serve the needs of the consumer and generating income for the organization
    • Elements of the marketing mix Product Promotio Marketing Price n mix Place
    • Product The actual goods or services made for consumers according to their needs and requirements. Supporting elements like warranties and guarantees are also included in Product. Every product goes through a cycle called product life cycle. At each stage different strategies are used.
    • Product life cycle Introduction Growth Maturity Decline Withdrawl
    • PLC - Introduction The product is introduced in the market. No pressure of immediate profit. Awareness for product is created. Generally no competitors at this stage.
    • PLC - Growth Competitors enter the market with similar products. Products become profitable. Advertising spend is high. Companies focus on brand building Market share tends to stabilize.
    • PLC - Maturity Sales grow at a decreasing rate and then stabilize. Companies attempt to differentiate products using branding. Price wars and intense competition occurs. Market becomes saturated. Some producers leave the market due to small profit margins. Promotion is widespread and media usage is high.
    • PLC - Decline More innovative products have entered the market. Consumers tastes have changed. Intense price –cutting Marketing spend is decreased.
    • PLC - Withdrawl Products are finally removed from the market, producers move on to other businesses.
    • Elements of the marketing mix Product Promotio Marketing Price n mix Place
    • Price The process of setting a price for a product, including all kinds of incurred costs like production cost, manufacturing cost, storage cost, discounts to be offered etc.
    • Pricing strategies Four basic strategies  Premium pricing  Penetration Pricing  Economy Pricing  Price Skimming
    • Premium pricing Use a higher price where there is a uniqueness about the product or service. Used when a substantial competitive advantage exists. Such prices are charged for luxuries.
    • Penetration Pricing The price charged for products and services is set artificially low in order to gain market share. Once it is achieved , the price is increased. E.g. Habeeb masala used low introductory prices .
    • Economy pricing A no frills low price. The cost of manufacturing and marketing are kept at a minimum.
    • Price skimming Charge a high price because you have a substantial competitive advantage. This high price tends to attract new competitors into the market. As a result price of the product falls due to increased prices E.g telecom services
    • Other pricing strategies Psychological pricing Product line pricing Optional product pricing Captive product pricing Product bundle pricing Promotional pricing Geographical pricing Value pricing
    •  Psychological pricing  Used when marketer wants the consumer to respond on an emotional basis rather than a rational basis.  E.g. 99 rupees only as compared to Rs.100  Rs. 399 instead of Rs.400 Product line pricing  When there is a range of services the pricing reflects the benefits of parts of the range.  E.g hair cut – Rs. 300, protein treatment – Rs. 400, whole package – Rs. 700
    •  Optional product pricing  Companies will start to increase the amount the customer spends once they start to buy, by offering them the optional but tempting “extras”.  E.g extra cheese for Rs.50 on a Rs.1100 pizza Captive product pricing  The basic product is charged low. The accessories/refills/re usable parts are priced using premium pricing strategy  E.g. a different charger for Samsung cellphones. Product bundle pricing  Sellers combine several products in the same package.  Usually used to move old stock.
    •  Promotional pricing  Price used to promote a product.  E.g. buy one get free Geographical Pricing  Price varies in different geographical regions  E.g. fast food items Value pricing  When external factors like recession or increased competition force companies to provide „value‟ products and services to retain sales.  e.g. value meals at McDonalds
    • Elements of the marketing mix Product Promotio Marketing Price n mix Place
    • Place Also called channel, distribution or intermediary. The mechanism through which goods or services are moved from the manufacturer/ service provider to the user or consumer.
    • 6 basic channel decisions 1. Do we use direct or indirect channels? (direct to consumerr or indirect through a wholesaler) Single or multiple channels Cumulative length of the multiple channels Types of intermediary No of intermediary at each level Which companies as intermediaries to avoid „intrachannel‟ conflicts (e.g. fighting between local distributors)
    • Selection considerationHow to select a distributor: Market Segment  Distributor must be familiar with your target consumer and segment Changes at different PLC stages  In introductory phase, product may be available at specific locations. In maturity, at many generic locations.
    • Channel intermediaries Wholesalers  Purchase bulk, break down into packages, resell to retailers and have storage facilities  Reduce producer to consumer contact, take some of marketing responsibilities. Agents  Secure orders for producer and take commission, do not purchase product. Usually used in international markets.
    • Channel intermediaries Retailers  Have a stronger personal relationship with the consumer.  Holds several brands and products, hence consumer is exposed to several products.  Are a strong brand themselves , e.g. Makro, Metro, Imtiaz… Internet  Geographically dispersed market.  Product reaches a wide audience  Set up costs are low.  Use e-commerce for payment.
    • Elements of the marketing mix Product Promotio Marketing Price n mix Place
    • Promotion Different activities held to promote the product to the target audience
    • Promotion Mix Personal Selling Sponsorship Sales Person Promotion Mix Public Advertising Relations Trade Fairs Direct Mail
    • Personal Selling Effective way to manage personal customer relationships. The sales person acts on the behalf of the organization They contact consumers personally and motivate them to buy a product.
    • Sales Promotion All kinds of promotions except advertising, personal selling and public relations. E.g  buy one get one free  Coupons  Money off promotions  Introductory offers  Free accessories Should be carefully costed and compared with the next best alternative
    • Public Relations Deliberate, planned, sustained effort to establish and maintain mutually beneficial relationship between an organization and it‟s publics. Cheaper than other promotional elements.
    • Direct Mail Customers are targeted based upon a database. An email or snail mail is sent directly to customers in the specific target market, with the expectation that some of them will place an order. E.g. Medical students can be sent a mail regarding medical textbooks.
    • Trade Fairs and Exhibitions Used to meet companies to meet with both the trade and the consumer Intention is to create an impression rather than sell the product. Exhibitions are good for making new contacts and renewing old ones.
    • Advertising „Paid for‟ communication Used to develop attitudes, create awareness, and transmit information in order to gain response from the target market. Advertising media such as newspapers, magazines and journals, televsion, etc.
    • Sponsorship When an organization pays to be associated with a particular event, cause or image. Companies sponsor sports events like Olympics or Formula One, or TV shows etc. e.g Olper‟s associated with morning shows, Kisan pak raha hay kia etc. The attributes of the event are then associated with the sponsoring organization.