Marketing is the success factor in a company Marketing can be seen in everything that is done in a company Every function in a company has its effect to and in marketing Even customers and stakeholders has affect marketing results Marketing is much more than advertising
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 (Kotler) 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. Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (American Marketing Association AMA)
Marketing is an on-going process without a clear end or a beginning Everyone is a marketeer in a company Marketing has many goals Creating knowledge or image Getting new customers Increasing sales Motivating the personnel Informing stakeholders and investors Etc Some sort of marketing is needed in every branch and every business
A good marketer can easily form the big picture of the situation A good marketeer knows something about almost everything A good marketeer is curios and hardworkin A good marketeer gathers enough information and then thinks what are the best solutions to the problem A good marketeer is creative
1. Introduction and idea2. Analyses 2.1 Organizational analysis WHERE ARE WE NOW? • Facts 2.2. Competitor analysis •Information from different sources to be 2.3. Demand analysis analyzed 2.4. PEST analysis • Research if needed 2.5. SWOT WHERE ARE WE GOING TO?3. Strategical decisions • Your own definitions about the most 3.1. Target group reasonable target group, the values / 3.2. Strategical values adjectives this target group respects and 3.3. Goals and objectives for marketing plan the goals for this marketing plan4. Implementation HOW TO GET THERE? 4.1. Product • Your own ideas/suggestions of the 4.2. Price implementation based on the facts you have gathered earlier and put under the 4.3. Place topics of 5P 4.4. Personnel • Strategical values should be seen in each 4.5. Promotion of 5p’s and this should be written in the5. Budget, timetable and responsibilities report, too6. Follow-up • In the report ther must also be the ways how the defined implementation (5p’s) helps in reaching the goals
Knowledge of marketing and its different elements as such Knowledge of the phenomenons that affect targets of marketing Knowledge of the phenomenons that affect marketing itself Knowledge of phenomenons that affect the environment where marketing happens “In a time of turbulence and change, it is more true than ever that knowledge is power” John Fitzgerald Kennedy quotes (American 35th US President (1961-63), 1917-1963)
External opportunities and threats are circumstances that can’t be affected by the company byt which has a great impact on company’s functions Competitors Demand Laws and regulations Trends and culture Technological development
First of all, We’ve got to know A LOT of our customers and the potential customers (demand) and how they are going to evolve in the future Who they are? Where they come from? What are their characteristics (socioeconomical and demograpfical background)? What they buy? Where they buy? How they buy? How much they buy? Why they buy? Purchase habits? Purchase reasons? ◦ Needs, values, opinions – FEELINGS? How are they going to change in the future?=> CUSTOMER AND DEMAND ANALYSISALL THIS AFFECTS THEN COMPANY’S FUTURE DECISIONS!,because we should develop our company and our marketing mix sothat customers find our company as the best alternative in the market!
Then we’ve got to know our competitors and how they are going to evolve in the future Who they are? What they sell? How they sell? Why people buy from them? What are their values and their image? How are they going to change in the future?=> COMPETITOR ANALYSIS We can divide our competitors to core competitors, need competitors, marginal competitors and potential competitorsALL THIS AFFECTS THEN COMPANY’S FUTURE DECISIONS,because we should differ from our competitors so, that our customersthink that we are the best alternative!
We should also know about the rules that companies and people should follow when the live here on Planet Earth This means Laws, Regulations Culture Politics Sociological issues (communication etc.) Technological issues Environmental issues=> PEST AnalysisALL THIS AFFECTS COMPANY’S FUTURE DECISIONS, too,because we must in certain amount follow the newest trendsand we must fuNction accordIng to the laws . We must alsotake the culture ant the politics in a country into considerationif we want to be successful.
Internal strengths and weaknesses can be Business idea: basic for whole entrepreneurship Products, prices, distribution, co-operation: what are they, why, what needs do they fullfil etc Personnel: is there enough, what kind of skills it has, is it motivated etc. Management: what is it, why Resources: money, machines, know-how Marketing: how is it done now, why Customers: who are they know, why etc
Then we’ve got to know A LOT about our own company and what are our future goals Who are we? Why do we exist? What are our values and our image? What are our resources and finance? What do we sell (products and services)? What are our selling arguments? With what price do we sell? Why? Where do we sell our product/service? Who are our distributors? Why? What is the strategy here (massdistribution or direct selling to the customer)? How do we communicate of ourselves? What kind of adds do we have? Why? Where? What is the central message? Why? What kind of people is there working with us? What is their meaning to the company? What is their competence? Is there enough of them? How have we differentiated our product from our competitors?=> ORGANIZATIONAL ANALYSISAFTER THIS WE SHOULD COMPARE OUR PRESENT STATE TO OTHERANALYSIS AND FIGURE OUT, how we should develop and market ourcompany in order to differ from our competitors so that customers think weare the best alternative and still keep our own values and function accordingto the rules of society.
SWOT is a tool that helps you to gather information of many different things affecting the company and its success SWOT is based on facts that are gathered from different objective sources, not just something that you think or like SWOT divides information into company’s STRENGTHS WEAKNESSES internal strengths and weaknesses and external opportunities and threats that affect company from OPPORTUNITIES THREATS outside
SWOT is not a list of things, it is an analysis This means that SWOT should be written with whole sentences and everything written in it should be analyzed Easist way to analyze is to think, whether something is good or bad and should it be changed or improved somehow The normal / usual way to use SWOT is to think how to take advantage of strengths and opportunities how to improve weaknessed And how to foresee and prevent threats
Gather information of the company Facts about location, ownership, marketing, products, services, resources, decoration, values, personnel, goals Analyze customers Present vs. future Needs, values, wishes How do the customers affect business and marketing? What kind of changes / improvements they cause? WHY? Analyze the competitors (NOTE! Competitors are those, who fight for customers’ attention and money) Present competitors vs. future competitors Their products, services, marketing, strengths, values How should the company differentiate itself from the competitors so, that that customer would choose it instead of competitors? What this means in practice – changes in personnel, products etc? WHY? Analyze laws and regulations What laws and regulations affect the company and its business? How do these laws affect? What kind of demands or restrictions they set to the company? Analyze trends and culture Are there some trends that affect demand or our business? Does culture has some impact on demand, marketing or our business? How do these effect? Do they cause some improvements / changes? Why? Analyze economical and technological environment and trends Are there some trends that affect demand or our business amd its marketing? How do these effect? Do they cause some improvements / changes? Why?
Be critical! Don’t just take the entrepreneurs word as the only truth – it is usually biased and subjective Gather other information from objective sources Your decisions and suggestions should be based on facts – so gather enough information of everything and many different sources and point of views Analysis is usually 80 % of marketing plan
Now you have finished your analysis tool and know a lot more about your markets, competitors and customers than in the beginning You also have a clue what is needed from your organization Now it is time to consider company’s strategies and target groups It is also time to set goals that are based on the analysis, so that they are realistic and still demanding
In order to make marketing more effective and to concentrate on the most profitable target group a company must divide its potential customers into target groups Customers can be divided into groups based on Demografic and social-economic basis Psychografic basis According to situation Nowadays the most usual way is to find groups with similar interests and values!
It is also important to think, how the company shall keep the customers as its customers in the future This is called as customer program and it aims to keep customers satisfied Customer satisfaction is always customer’s own decisions and evaluation Customer satisfaction is effected by: The quality of product / service The whole personnels skills and attitude towards customers Managers’ attitude towards customers and personnel A long-term planning and implementing process Keeping of the service promise
A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept where customer satisfaction is the main goal.
A marketing strategy is often the starting point to a marketing plan, which contains a set of specific actions required to successfully implement a marketing strategy. A marketing strategy often binds an organizations marketing goals, policies, and action sequences (tactics) together. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. Company’s values are important!
the state of affairs that a plan is intended to achieve A goal or objective consists of a projected state of affairs which a person or a system plans or intends to achieve or bring about A personal or organizational desired end-point in some sort of assumed development. Many people endeavor to reach goals within a finite time by setting deadlines.
Marketing plans built with clear, stated goals — backed up with appropriate metrics and measurements — will be approved a lot more readily than those that arent. Marketing must develop its plans based on the realities of the business environment while remaining in alignment with corporate goals. If a marketing plans primary goal is not expressed in these terms, it will be difficult for the plan to gain approval from company executi Concrete goals are a key component of all marketing plans. Goals help to steer the development of all marketing activities, including promotions, advertising campaigns, and press related activities
Goals should be specific and measurable (quantity goals), e.g. increasing market share by two percentage points over a 12- month period doubling sales of a particular product in six months increasing customer retention by 25 percent from one holiday season to the next Less specific goals are often qualitative, e.g. increasing a companys visibility within a marketplace differentiating a company from its rivals If you state your goals clearly and with good grounds, it’s easy to follow-up whether the implementation goes right and the right and sufficient results are achieved
PRICE PEOPLE PRODUC T PROMOTI PLACE ONDoes the organization create what its intended customers want? Definethe characteristics of your product or service that meets the needs of yourcustomers.• Why would our target group ”buy” our product?• How can we make our target group interested in our product?• How can we differ from our competitors? IMAGE• Differentation SUPPORTING PARTS• Branding CORE PRODU CT
A product can be defined as a collection of physical, service and symbolic attributes which yield satisfaction or benefits to a user or buyer. A product is a combination of physical attributes say, size and shape; and subjective attributes say image or "quality“ COMMODITY is a common name for everything, that a company produces to the sales. It can be a product or a service SERVICE is an immaterial commodity. PRODUCT is something real and touchable
The production of the product or service should be well planned and coordinated The main elements to consider are the production process itself specifications culture the physical product packaging labelling branding warranty service Product marketing in a business addresses four important Strategic questions: What products will be offered? Who will be the target customers? How will the products reach those customers? Why will customers prefer our products to those of competitors?
distinguishing the differences of a product or offering from others to make a product more attractive to a particular target market Source of a competitive advantage The objective is to develop a position thatpotential customers see as unique
The brand differences difference in packaging difference in an advertising theme Differences in quality Differences in price Differences in functional features Differences in design Sales promotion activities of sellers Differences in availability
Differentiation is due to buyers perceiving a difference, Differentiation is the possibility of charging more money from customers However, if customers value the firms offer, they will be less sensitive to aspects of competing offers and price may not be one of these aspects
A brand is a collection of images and ideas representing a product or a company FOR BRANDING COMPANY
Company name >< Individual branding Colours Sounds Forms and designs Packages Prices Logos Slogans Advertisements Names Attitudes
PRICE PEOPLE PRODUCT PROMOTIO PLACE NHow much are the intended customers willing to pay?Here we decide on a pricing strategy - do not let it just happen!The consumer is often sensitive for price discounts and special offers.Price builds also the company image: something that is expensive must be good• How should we price our product so that our customers buy it? Is price important to our customers?• How should we price our product so that it differs from our competitors?• How should we price our product so that we make some profit?• Discounts• Terms of payment• Price creating image
Price is the result of an exchange; a numerical monetary value to a good, service or asset In marketing the price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customers perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.
How much to charge for a product or service? How much do customers value the products and services? What are the pricing objectives? How to set the price? (cost-plus pricing, demand based or valuebased pricing, rate of return pricing, or competitor indexing) Should there be a single price or multiple pricing? Should prices change in various geographical areas, referred to as zone pricing? Should there be quantity discounts? Do you use a price skimming strategy or a penetration pricing strategy? What image do you want the price to convey? Do you use psychological pricing? How visible should the price be? Should the price be neutral? What sort of payments should be accepted?
PRICE PEOPLE PRODUCT PROMOTIO PLACE N~ Available at the right place, at the right time, in the right quantities ~•What is the best place to sell our product so that it is available to our customers?• How widely should the product be sold?• Should we use distributors? Who are our distributors? Why?• How should our ”shop” (premises) look like?• Signs• Decoration• Distributors• Storage• Availability
Place strategy tells how the product or service will be distributed to the end user. The product must be at the right place at the right time. Two types of distribution methods: Indirect distribution – use of an retailer or an intermediary Direct distribution - selling directly from a manufacturer to the consumer Three type of distribution strategies 1. Intensive distribution - the product is sold in as many places as possible. 2. Exclusive distribution - a single outlet 3. Selective Distribution: - A small number of retail outlets
PRICE PEOPLE PRODUCT PROMOTIO PLACE N~ People are the most important element of any service or experience. ~•What is the meaning of people in our company and in our success?• What kind of people do we need?• How many people do we need?• Appearance of our people?• Skills and knowledge of our people?• How to motivate our staff?
People buy from people that they like Personnel’s attitude, skills and appearance are important Personnel is a company’s first market – they must believe in the company and know its products, strategies and values INTERNAL MARKETING An ongoing process which aims for that personnel is satisfied and gives its best for the company and its customers.
1. Hire right kind of people to the company2. Keep the good, old workers3. Motivate personnel for doing their jobs better4. Create employee job satisfaction5. Internal communication
Better job performance Responsibility for employees Common understanding of the company and its strategies Better service to clients Improved employee development Integrates business culture, structure, human resources management, vision and strategy with the employees professional and social needs Better coordination and cooperation among departments of the business.
PRICE PEOPLE PRODUCT PLACE PROMOTI ONPROMOTION = All communication that happens inside or outside thecompany 1. You’ve got to have something to tell – the central message / the service promise • Company’s point of view • Customers’ point of view!!! 2. ”The package” • You’ve got to express the central message in such a way that customers pay attention to it, notice your message and adapt it as their own 3. Media choices • You’ve got to find the medias that your customers follow and use them as your marketing channels • The package? / The budget? / The effect? 4. Timetable 5. Responsibilities (The role of advertising agency?)
Information about a product, product line, brand, or company one of the five key aspects of the marketing mix Definition of Promotion Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity Above the line promotion: promotion in the media advertiser pays for it targeted directly to the customers Below the line promotion: All other promotion Promotion targeted to other groups than customers – affects indirectly customers For example sponsorship, product placement, sales promotion, public relations, trade shows
Promotional mix or communication mix: Advertising: Any paid presentation and promotion of ideas, goods, or services by an identified sponsor Personal selling: A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Sales promotion: Incentives designed to stimulate the purchase or sale of a product, usually in the short term Public relations: Non-paid non-personal stimulation of demand for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Two strategies: "push" and "pull". Push Uses salesmen and trade promotion to create consumer demand for a product. The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. Pull Uses advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.NOTE! With promotion you build images and give information. Whether yourpromotion campaign has emphasis on information or images depends firstly oncustomers wishes and values and secondly on your product and company.
Decisions in marketing communication Interactive marketing Support for salesCustomer Personal Advertising Sales Public service selling Promotion Relatuins Communication in the print media Direct marketing Outdoor advertising Electric media (radio, TV, internet etc.)
AdvertisingA message that is sent and paid by a recognisable sender usually in massmedia.The message tells aboyt the services, products and the company and its goal ist tucreate/increase selling and/or the knowledge of the product/service/company orcreate/improve the image of the prodWhy advertising needs?1. It informs customers of the product/service/company and its contents and elements, the price, the selling places…2. It affects people’s attitudes and feelings and it aims for creating a good product- and company image; a brand.3. It wants to create a will for purchase by telling the good sides and the advantages in buying the product Johanna Heinonen-Salakka 12.2.2002
The positive elements in advertising • Reaches masses • Quick • Cheap, if you consider the number of persons you reach • Cheap for the customerThe negative elements in advertising • Expensive • Demands skills to be done right • Impersonal Johanna Heinonen-Salakka 12.2.2002
How to make a good advertisement?BASIC:Keep it simpleDon’t change it • in order to make people remember your advertisement, you must use the same elements over and over again during the years. E.g. The color blue in Fazer blue chocklate, color Red in Viking Line, three stripes in Adidas, ”Have a Coce and a smile”Advertisements can be• Visually same (same color, logo etc)• Verbally same (same slogan)• Orally same (same sound) Johanna Heinonen-Salakka 12.2.2002
How to make a good advertisement?Go public regularyly and often enoughDon’t use too many elements in your advertisement – rather use emptyspaceUse picture as often as its possibleFurther information about the topic can be found e.g. the followingnetsites:• http://www.bly.com/Pages/documents/HTWAGA.html• http://www.marketingtoday.com/marcom/writeads.htm Johanna Heinonen-Salakka 12.2.2002
CONTENTS IN ADVERTISING• main promise / central message• the parts that support the main promiseUseful tool is AIDA (e.g. an exaggerated version is TV Shop)A get your customers’ attentionI create interestD make them desire your product / companuA make them act (buy)S guarantee satisfaction Johanna Heinonen-Salakka 12.2.2002
Advertising campaingLasts a certain period during which the advertiser sends amessage to the target group in the chosen mediasThe same message can be told with different communicationtoolsLevels in advertising campaing1. National2. Regional3. In one shop or residence Johanna Heinonen-Salakka 12.2.2002
PLANNING AND ADVERTISING CAMPAIGN Gathering background information Goals and target groups for advertising campaign Publishing time Budget Choosing media/s Number of repeats Deciding the central Message and contents Implementantion: Pretesting Production Publishing Measuring the effectiveness and gathering feed back
Timing alternatives for an advertising campaing Even Rising Sinking Changing CenteredContinuous Breaking
Advertising medias• Print media (newspapers, magazines etc) (further information e.g. http://contentmanagementsoftwares.net/Benefits_of_advertising_through_print_m edia.htm)• Radio (further information e.g. http://www.rab.com/ and http://www.rab.fi/en_GB/)• TV (further information e.g. http://www.nelonen.fi/inenglish/ and http://spotti.mtv3.fi/site/mtv3/en/)• Internet• Outdoor advertising adn advertising on vehicles• Advertising in the shopWhy to choose a certain advertising media? 1. Target group 2. The elements in product or service 3. Competitor’s actions 4. Economic point of views Johanna Heinonen-Salakka 12.2.2002
GOALS IN ADVERTISING• informational goals• goals that aim for change the attitudes among target group•goals that aim for action in target group
MEASUREMENTSIn general: Read this http://www.wan-press.org/IMG/pdf/Adfvertising_Measure_14074F.pdfOTS – Opportunity to seeHow many times people who are reached by the media has an oppotunityto see the asvertisementCover numbersHow many percent of the target group will be reachedContact numbersHow much does it cost to reach one people Johanna Heinonen-Salakka 12.2.2002
Now make a list of everything, that you have thought to do in your marketing plan (in product, price, place, people, promotion etc) like this e.g… 1. Task nro 1: Design a new package 2. Task nro 2: Give a novelty discount 3. Task nro 3: Decorate the shop 4. Task nro 4: Buy new furniture 5. Task nro 5: Have a TV –commercial 6. Task nro 6: Have a newspaper ad 7. Task nro 7: Have a direct marketing letter 8. Task nro 8: Hire 2 new people 9. Etc…..
Next: Figure out what each one of your tasks would cost and then count them together 1. Task 1:xxx € 2. Task 2:zzz € 3. Task 3:yyy € 4. etc
Next step is to define the timetable for different actions (= tasks). Like this for example… 1. Task 1:The 1st of May 2. Task 2:Week 38 3. Task 3:On July at the latest 4. Task 4:During March 5. Etc.
The last step in this phase is to decide who is resposible for different tasks. Here is an example again: 1. Task 1:Marketing Manager 2. Task 2:Mister X 3. Task 3:Advertising agency 4. Task 4:Financial department 5. etc.
In order to know whether your marketing plan has been succesful and if it has reached the gols you have ste before, it is essential to measure up the results and the process itself The results from measurement will be used in planning the next marketing round Measurement and follow-up are in that sense a part of analysis tool Measurement and the pre-set goals go always hand in hanSTEPS how to do it Decide what to follow at least the goals and objectives you have set, but are there other important things Decide how to follow different topics There can be different ways of following different items in one marketing plan. Each one of them must be defined Decide when the follow up should be made Decide who is responsible for each follow-up action Decide what to do if the marketing hasn’t been succesful or the goals haven’t been reached Think corrective measures => And actually here you start a new circle of planning marketing actions
It is essential to plan in advance how to follow up the results and how to gather feedback Follow-up is usually based on the goals you have set earlier Targets can be almost anything Customers, Sales, Image, Profit, Turnover, Costs, Quality of products, Development of prices, Efficiency of the distributor etc. How to follow-up Desk survey, questionnaires, interviews (quantitative vs. qualitative)
MARKETING RESEARCH Problem Identification Problem-Solving Research Research Market Potential Research Market Share Research Segmentation Research Image Research Product ResearchMarket Characteristics Research Pricing Research Sales Analysis Research Promotion Research Forecasting Research Distribtion Research Business Trends Research
Exploratory research formulates problems more precisely, clarifies concepts, gathers explanations, gains insight, eliminates impractical ideas, and formis hypotheses literature search or case studies Descriptive research describes users of a product, determines the proportion of the population that uses a product, or predicts future demand for a product who, what, where, when, why, and how aspects of the research should be defined Causal research cause and effect relationships between variables laboratory and field experiments
A marketing research can be done by the desk or on the field A desk study concentrates on the literature, statistics, studies etc. that already exist and draws conclusions based on them This is usually secondary research = you don’t get the answer directly from the target group PROS AND CONS: s usually less time consuming is usually less costly may not be updated is usually not customised to suit your needs may be sufficient if you require just general information such as industry profile, trends and demographics A field study goes outside the firm and asks customers, competitors, stakeholders etc. some special questions => primary research PROS AND CONS: time consuming Costly tailored to suit your specific needs valuable especially if you need to know something specific The best way to do marketing research is to combine these two ways
Marketing research can be done once or repeatedly A study that is done once is called ad hoc. It usually concentrates on a special problem or a question Omnibus study repeats itself in a certain time intervals (eg. annually). The goal for an omnibus study is to gather material in order to see how something has developed
There are two ways of doing research: qualitative and quantitative Qualitative generally used for exploratory purposes small number of respondents not generalizable to the whole population statistical significance and confidence not calculated examples include focus groups, depth interviews, and projective techniques Usually studies emotions, opinions and perspectives Quantitative generally used to draw conclusions can test a specific hypothesis uses random sampling techniques so as to infer from the sample to the population involves a large number of respondents examples include surveys and questionnaires Provides numbers and percentage (hard data) for a certain item
Experiments and testing Observations Interviews Questionnaires Use of existing data (desk study)
Gather background information and theory Define the problem Determine research design (method) Identify data types and sources Design data collection forms and questionnaires Determine sample plan and size Do the timetable and budget for your research Agree of the responsibilities Survey the risks in your research Collect the data Analyze and interpret the data Prepare the research report
List the goals you have set in your marketing plan earlier Think at least one way (there can be several ways) to measure each goal you have set Then read through your marketing plan and think, what other things are to be measured and figure out the way to do that Finally write down a way to measure the marketing plan process NOTE! It’s not enough to write down the ways to measure – you should also think, how the information should be used