Saturday Morning

1. Part 3

2. • Analyse market opportunities (Do Your
Homework!)
• Research and select target markets
(More Homework)
• Develop marketing strategies (Yet More)
• Plan marketing tactics (Don’t start here)
• Organise, implement and control
marketing efforts
The Marketing Management Process

3. Customer
Acqui-
sition
Vision,
Mission,
Objectives
Analyse Marketing Opportunities
Business Environment
(PESTLIED Factors)
Market
Environment
Our
Business
Suppliers
Customers
Competitors
Choices:
Segmentation
Targeting
Positioning
4 (7?)
P’s of
Mark-
eting
Unique Value Proposition

4. PESTLIED
• Political
• Economic
• Sociological
• Technological
• Legislative
• International
• Environmental
• Demographic

5. Why Did Lion
Lager Fail?

6. • Share of market, and share of pocket
• Share of customers’ minds – awareness and
visibility
• Share of heart: which company do customers
prefer to buy from?
• Convenience and availability – reach and
distribution
• Service levels
Analysing the Competitive Environment - Influencers

7. • Customer awareness of products and services
• Product quality
• Technical assistance available
• Selling staff – skills, morale, reward and
recognition, tactics
• Price and pricing policies/tactics
• Management quality and staff commitment
Analysing the Competitive Environment - Influencers

8. Strengths
Weaknesses
Our
Company
Strengths Weaknesses
Competitors
Best
Worst Future?
Differen-
tiate
Analysing the Competitive Environment

9. But you
can’t do it
without
information!

10. Threat of
mobility -
new entrants
Intensity of
the rivalry
Threat of
substitutes
Customer
Power
Supplier
Power
Porter’s Model of Industry Attractiveness (5 Forces
Determine Attractiveness)

11. Barriers and Profitability
Low, stable
returns
Low
High, stable
returns
High
Low
Low, risky
returns
High, risky
returns
High
EntryBarriers
Exit barriers

12. Industry Competition
• Number of Sellers - Degree of
Differentiation
• Entry, Mobility, Exit barriers
• Cost Structure
• Degree of Vertical Integration
• Degree of Globalisation

13. Activity: Porter’s Model – p50
Your Turn!
Would you class your industry, and your
company’s position within it, as attractive or not
attractive?
Briefly analyse your company’s relative strengths
and weaknesses using Porter’s Model of Industry
Attractiveness

14. Sales & Profit Life Cycles
Introduction Growth Maturity Decline
Time
Sales&profits
Pre-launch “and Introduction is Expensive. Why?
Pioneers &
Early Adopters
Laggards &
“Nevers
Re-launch? Or
cannibalise?

16. Why do so many new products fail?
•Poor market analysis
•Product/service defects
•Poor marketing
•Bad timing
•Competitive strength
•Higher production costs
•Product price too high
•Over estimation of market size

17. Four Introductory Marketing Strategies
Rapid-
skimming
strategy
Rapid-
penetration
strategy
Slow-
penetration
strategy
Slow-
skimming
strategy
Price
Low
High
Promotion
High Low

18. Maturity Stage - Choices
• Market Modification
• Product Modification
• Marketing-Mix Modification

19. Decline Stage - Choices
• Increase investment
• Resolve uncertainties - stable investment
• Selective niches
• Harvesting
• Divesting

20. Please review the table on
pages 54 and 55 that shows
details of various aspects of
the Product Life Cycle

21. There is one dangerous trap to be avoided when
using this PLC approach…
Beware of the danger of the
self-fulfilling prophecy!

22. High Relative Market Share, and
High Market Growth:
“Stars” - develop product
/ service, invest in R&D,
extend credit, keep
competitors off balance,
promote aggressively.
Low Relative Market Share and High
Market Growth:
“Problem Child / Question
Mark” - Usually new
products. Launch attack on
a narrow front, co-ordinate
all efforts, keep it simple.
(Guerrilla tactics called for
here.)
High Market Share, and Low
Market Growth:
“Cash Cow” - prune
product range, segment
and target more
appropriately, reduce
costs, tighten credit,
increase turnover.
Low Market Share and Low
Market Growth:
“Dog” - lost cause.
Don’t throw good
money after bad
Growth
High Relative Market Share Low
The BCG Matrix

23. 20%-
18%-
16%-
14%-
12%-
10%-
8%-
6%-
4%-
2%-
0
MarketGrowthRate
3
?
Question marks
?
2
1
Cash cow
6
Dogs
8
7
10x 4x 2x 1.5x 1x
Relative Market Share
.5x .4x .3x .2x .1x
Stars
5
4
The Boston Consulting Group’s Growth-Share Matrix

24. Growth
High Relative Market Share Low
BCG Matrix

25. Please read Roche,
Michelin and Philips
Case Studies (p61 - 62)

26. Attractive
Industry
Unattractive
Industry
Company
Strengths
Company
Weaknesses
The G.E. Grid
What
makes an
industry
attractive?

27. Porter’s Model of Choices
Focused Strategy
Low-
Cost
Produ-
cer
The
Differ-
entia-
tor
ProbabilityofSuccess

28. Analysing Customers and Buying Behaviour
• Who are they?
• What do they buy?
• Why do they buy?
• Who participates in the
buying process?
• How do they buy?
• When do they buy?
• Where do they buy?

29. Customer Insights
A customer insight is a creative idea
which derives from a profound
understanding of the customer
Implementing a high quality insight,
translated into competitive
superiority, will lead to a
greater competitive
advantage

30. Coke versus Pepsi:
A lesson in perceptions and branding
Blind
Test
Open
Test
Prefer Pepsi
Prefer Coke
Same/Can’t say
52%
5%
43%
22%
66%
12%

31. What influences customer
purchases?
•Cultural factors
•Social factors
•Personal factors
•Psychological factors

32. In business-to-business markets…
• Demographic: What industries? What size companies? Which
locations?
• Operating variables: What customer technologies should we focus on?
What is the user/non-user status? What are the customer capabilities?
• Purchasing approaches: what is the purchasing function of the
company? (Centralised or non-centralised?) What is the power
structure? What is the nature of our existing relationships? What are their
general purchasing policies? How do they define the purchasing criteria?
(Quality, service, price, speed?)
• Situational factors: How quickly do they want delivery? Are there
specific applications for our products that are different? Order size?
• Personal Characteristics: Should we focus on companies which are
similar to ours? What are their attitudes towards risk? What is their level
of loyalty?

33. But What do
Customers Actually
Want? Identifying
Customer Insights*
(*BTW – They don’t always know!)

34. The New Science of Customer Emotions
A better way to drive growth and profitability
Scott Magidis, Alan Zorfas, & Daniel Leeman (2015). The New Science of Customer Emotion. Harvard Business Review. Vol 93, No 11. 66-76.
I have a desire to: Brand Positioning SCARF
Model
1 Stand out from the crowd Be seen as special/unique Clarity
2 Have confidence in the future Positive image of the future Clarity
3 Enjoy a sense of well-being Stress free. Balance.
4 Feel a sense of freedom Act independently Autonomy
5 Feel a sense of thrill Visceral, overwhelming pleasure
6 Feel a sense of belonging Aspirational. Feel part of a group. Relatedness
7 Protect the environment Environment is sacred
8 Be the person I want to be Ongoing self-improvement. Status
9 Feel secure Assurance. Pursue goals. Clarity
10 Succeed in life Meaningful worth beyond money Status
10 of 300 “emotional motivators” that work significantly well across all categories

35. Protect the environment
35
The New Science of Customer Emotions

36. Standout from the
crowd
Feel secure
36
The New Science of
Customer Emotions
A better way to drive
growth and profitability

37. The Ultimate Marketing Machine
Most Marketing Executives are stuck in the last century.
Here’s how the best meet the challenge of the digital age.
“Marketing has become too
important to be left just to
the marketers in a company”
De Swaan Arons, M., Van den Driest, F. and Weed, K. (2014). The Ultimate
Marketing Machine. HBR, Jul-Aug, 2014, p.55-63

38. The 4-Deadly Sins (i.e. Winning Characteristics)
1. Marketing Leadership: Marketing must tap every function. “Woe to the
company whose marketing is still siloed.” Connect marketing to the
business
• Inspire all levels by engaging them with the brand purpose/vision
• Focus all levels on a few simple key priorities/rules (i.e. on time delivery)
• Organise agile cross-functional teams
• Build internal capabilities needed to deliver key priorities
2. Insights from Big-Data: Research what customers are doing and why;
this will exposed their needs. What are the “universal human truths” that
drive them?
3. Purposeful Positioning using All Three Brand Positioning Pillars:
1) Functional (caffeine), 2) Emotional (i.e. social), 3) Societal (i.e. fair
trade coffee).
4. Total Experience: 1) Personalise the offering, 2) Adding more
touchpoints. The most important marketing metric is “share of experience”
not “share of voice”. Think numerous digital & physical touchpoints:

39. Customer Value Propositions in Business Markets, (HBR: March 2006, p.91-99)
Customer Value Propositions
POSITIONING Disadvantage Advantage
1. List/mention all
benefits: All Points-of-
Parity (POP) and Points-
of Difference (POD)
POD is diluted
amoungst all the other
POP/POD.
Shotgun all markets –
but this is bad
marketing-practice
2. All PODs (assuming
there are many!)
Dilution occurs. Buyer
may see your POD as
his Points-of-
Contention.
Differentiation
3. 1 or 2 x PODs (and
maybe 1 x POP.
Resonating focus
Not all markets will
purchase, but this is
good marketing-practice
Crystal clear
differentiation. Mention
what customers value
most.
Note: Research to confirm. What are customer’s alternatives?

40. 6 x Brand Pillars
The brain must be confused with myth and reality
Pillars of
Branding
Brand Positioning Ideas Your Brand
1 A simple symbol Nike swoosh, Tree (Timberland)
2 A chosen one Cowboy, Michelin man, colonel
3 A code of laws McDonald’s code of laws, recycle
4 A story & a secret Coke’s secret formulae, KFC’s spices
5 Common enemy Obesity, boredom, isolation, global warming,
depression,
6 Rituals Mass, party, anthem, club
M Lindstrom’s book, Buyology (2010): nuns & brand addicts have
the same cerebral imaging processes on fMRI scanners
Markitects
Georges, P.M., Bayle-Tourtoulou, A. & Badoc, M. (2014). Neuro Marketing in Action: How to
talk and sell to the brain. Kogan Page Limited. Great Britain and United States.

41. Hopefully, by now, you have
“done your homework”,
and you have a good
understanding of what
marketing opportunities
exist.
What happens next?

42. Customer
Acqui-
sition
Vision,
Mission,
Objectives
Analyse Marketing Opportunities
Business Environment
(PESTLIED Factors)
Market
Environment
Our
Business
Suppliers
Customers
Competitors
4 (7?)
P’s of
Mark-
eting
Unique Value Proposition
Choices:
Segmentation
Targeting
Positioning

43. Once you understand your markets,
but before taking action, you need to
Make Your Choices…
•Segmentation
•Targeting
•Positioning
The S.T.P. Process

44. • Customer Segmentation, Targeting & Selection
Segmentation:
Identify variables
that allow the market
to be segmented
Targeting: Evaluate
the attractiveness of
each segment and
choose a target
segment
Positioning: Identify
and communicate
the unique and
valued differentiators

45. Who is
out…
…And
who is
in?
•Segmentation
•T
•P
Why?
•Who to aim expensive
communications at
•What media
•What image to create
•Price range
•Best distribution
•Styling?

46. Why Niches? Guerillas vs. Gorillas
• Distinct needs
• Easier to find
• Premium price
• Few rivals
• Certain economics
through specialisation
• Niches have size,
profit and growth
potential

47. Definition of a Segment
Groups of customers with similar needs or
wants and priorities...
and who because of this...
seek the same benefits and attach the same
importance to their satisfaction
Sometimes this corresponds to the amount
that they purchase from the company

48. Segmentation
It is obvious that if you haven’t deeply
and profoundly understood the
customer’s needs*, your chances of
success are severely limited
* You need insights into customers’ needs, wants,
desires, perceived benefits, expectations, fears,
motivations and all other variables that will turn them
on – or off – to your business and it’s offering

49. •Heavy to transport
•Difficult to handle
•Messy to store on shelves
•Sold 2/3 to visitors, not Londoners

50. • A tool to understand customers
• A cost-effective promotional vehicle
• A symbol of commitment to customers

51. •Have identified 20 000 different market segments
•Each customer has a unique “DNA Profile” derived from
the products that they buy (“You are what you eat”)
•Sell information and intelligence back to manufacturers
•Know that average diet lasts 18 days and can respond
with encouragement and recommendations

52. Segmentation Activity – Part 1
1.Write down all the benefits sought by your customers on
Post-Its
2.Stick all those that are similar or cluster together, and give
them a title
3.Divide all of these needs into 2 categories:
1.The hygiene factors – essential, deal-breakers
2.The motivators – desirables that contribute to the
decision on who to buy from

53. Segmentation Activity – Part 2 (Simple)
1.Choose two motivators on which customers vary
on their needs – the differentiating motivators
2.Make sure that they are independent of each
other
3.Estimate the split of customers between high and
low for each. (50/50? 60/40? 70/30?)
4.Cross multiply to create a perception map, and
give each segment descriptive lables

54. Nando’s Example – Benefits
• Tasty peri-peri (Sexy and
invigorating?)
• Fun ads
• Décor and ambience
• Healthy for you (grilled
versus fried)
• Happy chickens –
ethically sourced
• Halaal and Kosher
• Snob/status value
• Cleanliness and hygiene
• Service/friendliness
• Availability and access
• Serviettes & hand-wash facility
• Speed of service
• Parking
• Affordability
• Quality meal
• Not burnt

55. Nando’s Example – Taste and “Snob” Value
• Taste: 80% high need for taste, 20% don’t care
• Snob value: important to 60% of customers, not
important to 40%
Taste
Snob Value
NB
Not NB
Not NB NB
48%
8%
32%
12%
HiT:HiS = 80X60 = 48%
HiT:LoS = 80X40 = 32%
LoT:HiS = 20X60 = 12%
LoT:LoS = 20X40 = 8%

56. Okay, so now you have a good understanding of your
most important segments and channels
The next step is to target and select the “valuable”
customers where your efforts will get the best return,
and match these with the amount of effort that you
want to put into each segment by offering a superior
value proposition to each
Targeting: Evaluate
the attractiveness of
each segment and
choose a target
segment

57. •Segmentation
•Targeting
•P
Why?
•Size & growth?
•Structural attractiveness?
(Porter)
•Objectives, resources, core
business, competences?
•Can we truly offer superior
value?






 

58. But the superior value
proposition must not only be
achieved and visible, but must
also be communicated to and
valued by customers!
(See “Positioning”)

59. Who are the
customers that we’d
kill to have?
(Targeting and Selection)

60. What Makes a
Customer “Valuable”?

61. What Makes Customers Valuable and/or Attractive?
• Revenue, value, frequency &
distribution channels
• Lifetime value & potential growth (Up-
sales, X-sales, price sensitivity)
• Profitability of this customer, and
“expensiveness” (cost to serve) Also,
hidden costs
• Ability to meet/exceed and differ-entiate
needs. Delighted versus hostile versus
mercenary customer
• Competitors and nature of rivalry
• Our share of the customer, (portfolio
saturation,) & their share of us. Long
tail may be profitable – or not
• Referrals & recommendations, and
promoting our offer to their
customers
• Risk: Creditworthiness, financial
stability, assets, default likelihood
• Efficient ways of serving them &
reduce cost to serve, physical
accessibility, initial investment
• Willingness to share info, build
relationships, learn & grow
• Our capabilities, competences, &
assets
• Prestige, influence, & more

62. Our Competitive Strengths: Are we stronger or better than our rivals?
• Market share
• Brand awareness of products/services
• Ease of doing business with you
• Innovativeness
• Price charged, and costs of doing business with you
• Their service requirements and our ability to customise
• Quality requirements and our capacity/quantity
• Any investment that we are prepared to make
• Added value for them in the supply chain, right up to the
disposal stage at the end
• Long-term sustainability and risk profile
• Our experience and/or willingness to learn

63. Positioning
The act of designing the company’s total offer and image
so that it occupies a distinct and valued place in the
target customer’s mind
How will we position ourselves in this segment
compared to other companies competing here?

64. Positioning Your Offer
If our company was…
•An animal
•A movie
•A drink
•A car
•A property
•A newspaper or magazine
…what would it be?
Use these to find out
what your customers’
perception are right
now, (e.g. postcard
contest, or focus
group,) but also to
determine what your
desirable state will be

65. Positioning Your Offer – The Statement
•Convince… A segment
•That… Our product or service
•Because… Differential benefit
•Health conscious eagles
“Nandos is healthy because
our chickens are not fed with
hormones”

66. Positioning Your Offer – The Statement
To business managers and professionals
engaged in making time sensitive decisions about
international business, DHL delivers on time
because its pickup, transportation and delivery
system is wholly-owned and managed by DHL
personnel, not by third party providers

67. Positioning…
How will we position ourselves in this segment
compared to other companies competing
here?
…As opposed to “Differentiation”:
“The act of designing a set of
meaningful differences to
distinguish the company’s offer
from those of its competitors.”

68. The Customer Experience Model
Product:
Must Work
Service
Experience
Delivery System

69. The Customer Experience Model
Value for money,
reliability, variety,
safety, price,
available
Emotional, partnership,
relationships, social impact,
atmosphere
Value for time, choice,
communication,
individual
Knowledge/skills,
access, attitude, caring
processes
Brand and image of company,
but also skills/attitude/
personality of people
If you could
pick one only?

70. Module 2
Marketing Tactics
and Activities:
The Four P’s

71. Agenda: Module 2
•The Marketing Mix – the 4Ps of marketing (and
another 3Ps)
•Products – features and benefits
•Price – how to make decisions, pricing methods
•The pitfalls of price-cutting – and alternatives
•Place - and distribution channel decisions
•Promotion – 5 specific methods, (advertising, sales
promotions, public relations, personal selling, direct
marketing)

72. Agenda: Module 2 (Ctd.)
•The Challenger Sale
•What promotional mix is best?
•The AIDA Model
•Strategies for growth – Ansoff’s Grid
•Designing Global Marketing Offerings

73. Analyse market opportunities (Do Your
Homework!)
Research and select target markets
(More Homework!)
Develop marketing strategies (Yet More!)
Plan marketing tactics
Organise, implement and control
marketing efforts
The Marketing Management
Process

74. Customer
Acqui-
sition
Vision,
Mission,
Objectives
Analyse Marketing Opportunities
Business Environment
(PESTLIED Factors)
Market
Environment
Our
Business
Suppliers
Customers
Competitors
4 (7?)
P’s of
Mark-
eting
Unique Value Proposition
Choices:
Segmentation
Targeting
Positioning

75. The Four P’s
Product: must meet needs & wants
Price: what are they prepared to pay?
Place: convenient to customers
Promotion: communicate effectively with
customers
The Marketing Mix: Now that the analytical “homework” has
been done, and you have determined your marketing objectives
you can plan strategies & tactics
People,
Processes,
Premises?

76. Maximising Value through Customer Management
Customer
Value?
Cost to
Customer?
Communica-
tion? (RAP)
Con-
venience?

77. Product Decisions
•What combination of Goods, Services, Events,
Places, Properties, Ideas, People, Information,
Experiences, and Organisation does your offer
include?
•How important are each of
the four elements that make
up the total customer experi-
ence for your customers?
•Bear in mind that you cannot put whipped cream on
garbage (The basics must be right)

78. Product Decisions
•The product variety to be offered (Choice)
•Levels of quality: reliability, durability, error-free, cut
the frills versus the best that money can buy
•Design: style, form, performance, appearance,
installation, unpack, use, etc.
•Features that are included
•Brand names and symbols
•Packaging and/or sizes to be offered

79. Product Decisions
•Any other services to be included: maintenance,
notifications and reminders, rewards, trade-ins and
disposal, all the “freebies”
•Warranties available
•Return and cancellation policies
•Thus…
• Must benefit customers by meeting/exceeding needs,
wants, desires, expectations
• Will affect everything else in marketing mix

80. Price Decisions
•Too high versus too low
•Four main factors that will influence price decisions:
•Cost of producing product/service (Sets the
minimum price, and works forwards – “cost +”)
•Competition and level of market demand
•Value perceived by customers (Sets the maximum
price)
•Level of profitability required to sustain and
continue in business (Working backwards)

81. Price Decisions
•Different prices for similar products in different
segments by changing promotion, perceived
image, or actual quality. (Airlines, motor vehicles)
•Differential pricing based on demand…
• Includes lower prices off-peak (movies, hotels, travel)
• Price skimming strategies at launch, growth, maturity, decline
stages (Vodacom, Panasonic)
•Competitors and pricing: especially if you know
their strategy: market share versus profitability

82. Price Decisions: Questions to Ask
•What is the list price? How does it compare to
rivals?
•Discounts and commissions to be offered?
•Any allowances?
•Payment period and credit terms?

83. Price Decisions: Common Problems
•Too cost oriented
•Not revised often enough
•Set independently of the rest of marketing mix
rather than with the positioning strategy
•Not varied enough for different products, market
segments, and purchase occasions
•Giving in to sales people who think only of short-
term deals rather than long-term impact

84. Relative
Price
Low
High
High
Perceived Quality of Experience
The Marketing Battleground
Low-Cost
Producer
Differentiator
Rip
Off
• Few Substitutes: Monopoly/cartel, proprietary
technology, high cost of switching, “grudge
purchase”, desperate need, dominant brand
equity, powerful loyalty programme
• Status, prestige & power
• Fashions or fads
• Exclusive, unique, one-of-a-kind
• Impulse buying purchase
• Emotional purchase: +ve or -ve

85. Price Decisions: Six Steps
Step 1 - Select Pricing Objective
•Positioning
•Maximise profit versus market share versus sales
growth (PLC Stage)
•Survival in price s situation
•Market skimming pricing
•Product quality leadership
•Other?

86. Price Decisions: Six Steps
Step 2 - Estimating Demand
•Elasticity of demand, or price sensitivity
•Affected by uniqueness, awareness of or access
to substitutes, ease/difficulty of price
comparisons, total expenditure to income, end
benefit effect (ROI), shared cost effect, sunk
costs effect, price quality effect, (prestige,
exclusivity, image,) inventory effect, desperation

87. Price Decisions: Six Steps
Step 3 - Estimating Costs
Step 4 – Analysing Competitor
Costs, Prices, and Offers
Step 5 – Selecting a Pricing Method
•Mark-up: Cost +
•Target-return: to get ROI on
large initial costs
•Perceived value: charge
what the market can take
•Value-pricing: best value for
money in this segment
•Going-rate: same, slightly
more, slightly less
•Sealed-bid: tenders

88. There are also 19 suggested strategies to use when
customers feel that your price is too high

89. Place Decisions
The Distribution Channels
3 Choices…
•Sell and supply direct to final customer/consumer
•Sell and supply through an
intermediary/middleman
•A combination of the above
What are the relative pro’s and con’s?

90. Place Decisions
Choices will be determined by…
•The nature of the product itself
•The customers’ preferences
•The levels of customer demand for the
product

91. Place Decisions: What Questions
•Directs versus through middleman? (The trend towards
“disintermediation”)
•Who “owns” the customer?
•What coverage will occur? In what density?
•Assortments: who gets to sell what?
•Who keeps what stock? What order lead times?
•How will physical distribution take place?

92. Place Decisions: What Questions
•Locations at which sales occur? (Branches,
shopping malls, internet, direct mail, network
marketing, etc.)
•Third party/outsourced logistics?
•Transport to final point of consumption? Who gets
what? Who comes to us? Who do we go to?
•Convenience to customers is the key issue here

93. Promotion Decisions: How can we most
effectively communicate with and present
our offer to customers?
You have to identify…
•Your target audience
•The response that you want
•And avoid “spray and pray!”

94. He who has a thing to sell,
And goes and whispers in a well,
Is not so apt to get the dollars,
As he who climbs a tree and
hollers!

95. THE PROMOTION MIX
1. Advertising (Paid for, non-personal)
2. Sales promotions: to consumers, “the trade”, or the
sales force, (including exhibitions and sponsorships)
3. Public relations/social responsibility (Personal, non-
paid for)
4. Personal selling, (& network marketing)
5. Direct marketing, www (& network marketing)

96. Advertising
• Market leaders derive more benefit than others
• Market leaders get better returns than from other promotional
activities
• Less effective in markets with fewer/ large buyers
• Good for introducing new products, explaining new features, or
even for training customers
• More economical than sales calls as a reminder
• Can be used to generate “hot” leads

97. Sales Promotion
Short-term incentives to encourage trial,
purchase or repurchase
• Consumer promotions (Hundreds!)
• Trade promotions
• Sales force promotions

98. Public Relations and Publicity
Designed to promote or protect the company’s
image or products
• With the various publics, but especially customers
• Far less expensive that advertising, but…
• Far more credible and believable: more authentic,
and catches them off-guard
• Personal and trusted

99. Getting Publicity
• Is it newsworthy, interesting and dramatic?
• Is it authentic and subtle, or blatantly in your face?
• Does it spotlight an event or product, or piggyback
on something that happened/is about to happen?
• Was it properly planned? Did they really want it?

100. Personal Selling
Face-to-face conversations to make a presentation, to answer
questions, to close a sale and to build relationships
• Most expensive, but most effective
• Full time or part time or even outsourced
• Telephonic contact improves efficiency
• Alive, immediate and interactive
• Can get immediate response

101. Direct and Interactive Marketing
Use of mail, telephone, fax, e-mail, internet and other media to
communicate directly with customers. Also includes “pyramids
• Can be personally addressed to a specific person,
and customised, and response measured
• Is interactive to a degree
• Responders can be targeted again
• Easy to disseminate quickly

102. •Type of product market
•Buyer “readiness” stage
•PLC stage
•Communications objectives
What is the best “mix”?

103. The goal of all promotion?
A: Grab attention/awareness
I: Create interest through benefits
D: Desire to purchase, liking
A: Get action and get them to buy

104. The goal of all promotion?
And was it…
R: Relevant?
A: Anticipated?
P: Personal?

105. Case Study: Cadbury’s
• Only 3 of the top 10 brands in SA
• One of their best sellers? Lunch
Bar
• Research showed a number of
segments:
• Treat – Eat Now
• Treat – Eat Later
• Refuel – Snack
• Refuel - Gutfill
• “Gifting”
• Functional

106. The Value Drivers for Refuel:
• Snack: In-between meals, fills the gap,
personal, trust the brand, available
anywhere, easy to share, less messy,
right texture, light on chocolate delivery
(guilt free)
• Gutfill: Hunger satisfaction, meal
replacement, personal consumption, fun
to eat, trust the brand, energy booster,
great mouth-feel, cheers me up. (In SA,
this is ……..?)

107. Who are the primary consumers
of Lunch Bar?
Male or Female?
Adults or Kids?
Black or White?
The largest segment is black
males, followed by white males

108. 1992 in South Africa
• Emergence of “black” as beautiful,
empowered, positive, independent,
enfranchised
But how do you promote Lunch Bar
to them without alienating your
second largest segment? We saw the
birth of..
Makhatini from Maritzborough

109. • Increase prices (with or without
adding extra value)
• Manage customers better by
retention, cross- and up-sales,
reduce cost to serve, regain “lost”
customers
• Determine new strategies: Use
Ansoff’s Grid
Strategies for Growth
Not many options to increase business…

110. Existing
Markets
New
Markets
Existing
Products
New
Products
Protect and build: Market
penetration, withdrawal,
or productivity
improvement, cross-
sales, up-sales
Product development or
replacement: listen and
innovate
Market development or
refinement: need good
marketing expertise and
good customer knowledge
Diversify or divest:
risky
Ansoff’s
Grid
So where do
your
opportunities
lie?

111. Questions to ask… and answer!
1. How can we spot and choose the right market segment(s)
to serve?
2. How can we differentiate our offerings from competitive
offerings?
3. How should we respond to customers who press us for a
lower price?
4. How can we compete against lower-cost, lower-price
competitors both here and abroad?

112. 5. How far can we go in customising our offering for each
customer?
6. What are the major ways in which we can grow our
business?
7. How can we build stronger brands?
8. How can we reduce the cost of customer acquisition?
9. How can we keep our customers loyal for a longer time?
10.How can we tell which customers are more important?
Questions to ask… and answer!

113. 11.How can we measure the payback from advertising,
sales promotion, and public relations?
12.How can we improve sales force productivity?
13.How can we establish multiple channels and yet
manage channel conflict?
14.How can we get the other company departments to be
more customer oriented?
Questions to ask… and answer!