Fast Track to DM




Track 1: Introduction to DM


                              Part I : What is Marketing ?

           ...
First track

       • Track 1 = Introduction to DM
             • Part 1 : What is marketing
             • Part 2 : What ...
What is marketing


       • Track 1 = Introduction to DM
             • Part 1 : What is marketing? Basics of marketing

...
What is direct marketing


       • Track 1 = Introduction to DM
             • Part 2 : What is direct marketing
        ...
The practice of direct marketing


       • Track 1 = Introduction to DM
             • Part 3 : The practice of direct ma...
What is Marketing
                         Marketing

                         Market

                         Bring to t...
What is marketing ?

                                                    What is ‘brought’ to the
                        ...
What is marketing ?




Fast Track to DM      Track 1: Introduction to DM   ShortTitle – Page 8
What is marketing ?

       Needs, wants,                                           Products
       and demands           ...
In other words


        "Yes, I sell people things they don't need.
        I can't, however, sell them something
       ...
Definition of marketing


         Marketing is the social process by which
         individuals and groups obtain what th...
In other words


               Marketing is to find out what your
               customers want and then give it to
     ...
Marketing model

                                               Marketing Concept
                                        ...
Customers are important : case of GM’s failure


             Background       • General Motors in 1978
             & Obj...
GM’s failure




                   How is that possible ?
                   What are the reasons of GM’s failure ?




F...
In other words




             Customers buy for their reasons, not yours.


                                            ...
Strategic Marketing
                                Corporate and Marketing Objectives

                   Segmentation
  ...
Market segmentation




                   Grass cutters




Fast Track to DM                   Track 1: Introduction to D...
Market segmentation

                   Exemple in Telco sector




Fast Track to DM                   Track 1: Introducti...
Market segmentation

         The division of a market
         into distinct groups of
         buyers who might require
...
Basic Target Marketing Strategies




          Orthopedic   White shoes        Shoes               Sport shoes
          ...
Market positioning




                              The place the product occupies in the
                              c...
In other words



                   You must have mindshare
                   before you can have marketshare.

        ...
Market positioning




                                             What variables are
                                   ...
Marketing evolution

   Product-Driven                                    Customer-Driven

   •    Treat customers the sam...
Marketing evolution
                                                 III                         IV

          Ability to ...
Marketing Environment

    Macro
    Envirionment                            Demographic
                                 ...
Marketingmix




Fast Track to DM       Track 1: Introduction to DM   ShortTitle – Page 28
Marketing Mix

  •    Product : deals with the specifications of the actual good or service, and how it
       relates to ...
P of product

                                 Installation



                                 Packaging


              ...
In other words



      A product is something made in a factory;
      a brand is something that is bought
      by the c...
P of Product
         Product life cycle




                   Flat             GSM                     Enclyclopedia
   ...
P of Price
                     What ‘s the price for a « pint » ?
                             At home ?

               ...
P of Price


                                                   Savoy Hotel Suite
                                        ...
P of Price

                   .




Fast Track to DM       Track 1: Introduction to DM   ShortTitle – Page 35
P of Place


                                Place (Distribution)
                                Place (Distribution)
   ...
P of Place


                                    Channel members
                                    Channel members
     ...
P of Place


                                    Channel members
                                    Channel members
     ...
P of Place




Fast Track to DM     Track 1: Introduction to DM   ShortTitle – Page 39
P of Promotion
         Promotional Mix:

              •    Personal Selling
              •    Sales Promotion
         ...
P of Promotion
         Public relation
                                             Do you see the differences ?




    ...
P of Promotion
         Promotional Mix:




Fast Track to DM            Track 1: Introduction to DM   ShortTitle – Page 42
What is Marketing ?

    Apply the marketing mix to the following products

                Product                       ...
What is Marketing ?

    Apply the marketing mix to the following products

              Product                         ...
Above and Below




   Above the line

   Below the line




Fast Track to DM    Track 1: Introduction to DM   ShortTitle ...
Above and Below

                                                       Radio
                       Newspapers           ...
Above and Below




   Above the line
                       Through the line ?
   Below the line




Fast Track to DM    ...
Marketing Management Process
                                                        - seek new ways to offer value to con...
Marketing Information System

                            Marketing Information System
                                   ...
Marketing is a business
      Partners in a chain             Art Work
                                                   ...
Exercice

                                  Last Question for this
                                  session

            ...
Questions ?




Fast Track to DM      Track 1: Introduction to DM   ShortTitle – Page 52
Next time : Fast track to DM




   Above the line

   Below the line


                    WHAT IS DIRECT MARKETING ?



...
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Part1 Basics of marketing

  1. 1. Fast Track to DM Track 1: Introduction to DM Part I : What is Marketing ? Patrick Verstraete
  2. 2. First track • Track 1 = Introduction to DM • Part 1 : What is marketing • Part 2 : What is direct marketing • Part 3 : The practice of direct marketing Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 2
  3. 3. What is marketing • Track 1 = Introduction to DM • Part 1 : What is marketing? Basics of marketing –Definition of marketing –Marketing model –Strategic marketing : segmentation, targeting, positioning –Marketing Evolution –Marketing Mix : the 4 P’s –Investments in advertising –Marketing Information System –Marketing is a business Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 3
  4. 4. What is direct marketing • Track 1 = Introduction to DM • Part 2 : What is direct marketing –Definition of direct marketing –Cornerstones of DM –Mentality – Mission – Method – Media –Database –Why DM –Integrated marketing Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 4
  5. 5. The practice of direct marketing • Track 1 = Introduction to DM • Part 3 : The practice of direct marketing - Value chain and players - Lists for lead generation - Data quality - Marketing services - Intelligent prospection tools Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 5
  6. 6. What is Marketing Marketing Market Bring to the Market What For Who Why When How Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 6
  7. 7. What is marketing ? What is ‘brought’ to the market ? What kind of product is behind this ad ? Which trade mark ? Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 7
  8. 8. What is marketing ? Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 8
  9. 9. What is marketing ? Needs, wants, Products and demands and services Core Marketing Concepts Markets Value, satisfaction, and quality Exchange, transactions, and relationships Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 9
  10. 10. In other words "Yes, I sell people things they don't need. I can't, however, sell them something they don't want. Even with advertising. ” John O'Toole Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 10
  11. 11. Definition of marketing Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. P. Kotler Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 11
  12. 12. In other words Marketing is to find out what your customers want and then give it to them Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 12
  13. 13. Marketing model Marketing Concept  Consumer Orientation Concept  Competitive advantage  Long term profit Marketing Environment  Market research Marketing  Market Information system Marketing Application  Market segmentation  Target Marketing  Positioning Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 13
  14. 14. Customers are important : case of GM’s failure Background • General Motors in 1978 & Objective • Top management wanted higher profits, greater shareholder return • Raise prices above inflationary levels Solution • Decrease costs through lowing the quality of products • Decrease investment in new models • Concentrate on larger, more profitable models at the expense of smaller, less profitable models Short-term • Increased short-term profits Results • Loss of first-time buyers to Japanese auto industry who specialized in smaller, high quality, inexpensive cars Long-term Results • Market share decrease from 46% in 1978 to 33% in 1996 Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 14
  15. 15. GM’s failure How is that possible ? What are the reasons of GM’s failure ? Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 15
  16. 16. In other words Customers buy for their reasons, not yours. Orvel Ray Wilson Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 16
  17. 17. Strategic Marketing Corporate and Marketing Objectives Segmentation • Consider variables for segmenting market • Look at profile of emerging segments • Valildate segments emerging Targeting • Decide on targeting strategy • Decide which and how many segments should be targeted Positioning • Understand customer perception • Position products in the mind of the customer Marketing Mix Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 17
  18. 18. Market segmentation Grass cutters Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 18
  19. 19. Market segmentation Exemple in Telco sector Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 19
  20. 20. Market segmentation The division of a market into distinct groups of buyers who might require different products or marketing mix Targeting strategy The selection of the customers you wish to service Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 20
  21. 21. Basic Target Marketing Strategies Orthopedic White shoes Shoes Sport shoes Babyshoes Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 21
  22. 22. Market positioning The place the product occupies in the consumer’s mind relative to competing products Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 22
  23. 23. In other words You must have mindshare before you can have marketshare. Christopher M. Knight Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 23
  24. 24. Market positioning What variables are relevant in positioning BMW vs LADA ? ? LADA Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 24
  25. 25. Marketing evolution Product-Driven Customer-Driven • Treat customers the same • Treat customers differently • Customers interchangeable • Customers are individuals • Talk at customers • Talk with customers • Success = getting more customers • Success = keeping & growing customers • Customer data used indiscriminately • Customer learnings applied with permission Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 25
  26. 26. Marketing evolution III IV Ability to interact with customers individually database CRM marketing Interacting I II Customers addressed only in mass media mass niche marketing marketing Standard Tailored Products Tailoring Products Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 26
  27. 27. Marketing Environment Macro Envirionment Demographic forces Cultural Economic forces Consu- mers Suppliers forces Compe- Public titors Stakehol- Interme- Political/legal ders diaires Natural forces forces Micro Envirionment Technological forces Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 27
  28. 28. Marketingmix Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 28
  29. 29. Marketing Mix • Product : deals with the specifications of the actual good or service, and how it relates to the end-user's needs and wants. • Price/value : refers to the process of setting a price for a product, including discounts • Place/distribution : refers to how the product gets to the customer; for example, point of sale placement or retailing, e-commerce, direct selling by catalogues • Promotion : includes advertising, sales promotion,publicity, and personal selling, and refers to the various methods of promoting the product, brand, or company. Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 29
  30. 30. P of product Installation Packaging Brand name Features Delivery And Core benefit After Credit or service Sales Service Quality Styling Warranty Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 30
  31. 31. In other words A product is something made in a factory; a brand is something that is bought by the customer.." Stephen King Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 31
  32. 32. P of Product Product life cycle Flat GSM Enclyclopedia Screen Brittanica TV (printed version) Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 32
  33. 33. P of Price What ‘s the price for a « pint » ? At home ? Draft at home ? In a pub ? In a restaurant ? In a bar ? In a night club ? Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 33
  34. 34. P of Price Savoy Hotel Suite Telenet connection Spaghetti Digital watches Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 34
  35. 35. P of Price . Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 35
  36. 36. P of Place Place (Distribution) Place (Distribution) Producer Marketing intermediaries Customer Merchants - resellers - wholesalers - retailers - internet Functional middlemen - agents - brokers - jobbers Session 8 - Distribution 3 Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 36
  37. 37. P of Place Channel members Channel members Producers Producers Distributors Distributors Retailers Retailers Customers Customers Hotel Guest Airline Agency Passenger Brewery Distributor Liquor store Customer Designer Wholesaler Boutique Patron channel length Session 8 - Distribution 13 Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 37
  38. 38. P of Place Channel members Channel members Producers Producers Distributors Distributors Retailers Retailers Customers Customers Hotel Guest Airline Agency Passenger Brewery Distributor Liquor store Customer Designer Wholesaler Boutique Patron channel length Session 8 - Distribution 13 Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 38
  39. 39. P of Place Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 39
  40. 40. P of Promotion Promotional Mix: • Personal Selling • Sales Promotion • Public Relations • Direct Marketing • Trade fairs and exhibitions • Advertising • Sponsorships • Merchandising • Packaging Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 40
  41. 41. P of Promotion Public relation Do you see the differences ? Klaus Kleinfeld CEO Siemens 1350 people lost their job Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 41
  42. 42. P of Promotion Promotional Mix: Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 42
  43. 43. What is Marketing ? Apply the marketing mix to the following products Product Price family cars or city car Reduction / take over Diesel engine or fuel Free options Extra seats, color, options Offering credit (customization) Special conditions cars selling by dealer network TV ads direct selling Personal selling Website : to inform Offering test drives Open door Sponsorship Place Promotion Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 43
  44. 44. What is Marketing ? Apply the marketing mix to the following products Product Price gsm loans coffee Place Promotion Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 44
  45. 45. Above and Below Above the line Below the line Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 45
  46. 46. Above and Below Radio Newspapers T.V. Cinema Magazines Outdoors (affichage) Above the line Web banners Below the line Direct marketing Mailings E-mails Couponing DRTV Telemarketing Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 46
  47. 47. Above and Below Above the line Through the line ? Below the line Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 47
  48. 48. Marketing Management Process - seek new ways to offer value to consumers - develop product or services Market opportunities - be aware of competitors, environmental forces, ... - market definition - classify customers in homogeneous groups - criteria : who buys what , why, how, where, when, ? Looking for segments - target segmentation : who do you really want to reach - positioning : the place a product has in consumers’ mind relative to competitors Marketing mix and positioning - marketing mix : how to influence the demand for your product - planning, implementing, organizing Managing marketing efforts - evaluate, measure, control - refine, develop, adapt, Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 48
  49. 49. Marketing Information System Marketing Information System Marketing Assessing Developing Internal Information Information Records Needs Marketing Intelligence Distribution Information Marketing Information Analysis Research Environment Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 49
  50. 50. Marketing is a business Partners in a chain Art Work T.V, Radio, Cinema, Press Events & Sponsoring Media Advertiser Agency Market Research Fulfilment DM Agency & Services Call Center Media Agency Postal services Print Distribution Design & Packaging In store communication Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 50
  51. 51. Exercice Last Question for this session Use the following words to comment this ad and the product: brand segment merchandising market definition distribution Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 51
  52. 52. Questions ? Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 52
  53. 53. Next time : Fast track to DM Above the line Below the line WHAT IS DIRECT MARKETING ? Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 53

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