* Marketing & AdvertisingAhmed m. Soliman, MBAMasters of Business Administration (Freelancer Instructor)
* * Ahmed Mahmoud Soliman, MBAAAST (Business Administration & Management Instructor - freelancer) Performed many courses around various topics in the field of Management & Business administration like [Organizational Behavior-Advanced Marketing-Principles of Management-Human Resources] in many outstanding organizations such as: ACETS, ERA consulting, Amideast, Trendology, AAST & Afrolink.Cell-phone: +201-001-811-045E-mail: email@example.com
** In the Strategic planning, ABC we have to know (what is meant by the following): 1. Vision: Defines the desired or intended future state of an organization or a long term view, sometimes describing how the organization would like the world in which it operates to be. e.g. : "A world without poverty“ for a charity. 2. Mission: Defines the fundamental purpose of an organization, describing why it exists and what it does to achieve its Vision. 3. Strategy: means "the art of the general" (from Greek stratigos), simply defined as the long-term plan (beyond a single year).
A Plan: It is a set of intended actions, through which one expects to achieve a goal.Marketing plan: It is a written document that details the necessary actions to achieve one or more marketing objectives. Marketing plans cover between one and five years. External Audit Vision & Operational Feedback & Mission Strategies Planning Control SWOT Goals Internal Audit
*1. Executive summary2. Current situation i. Macro-environment ii. Market analysis iii. Internal situation (resources, objectives, & culture)3. Summary of situation (SWOT)4. Marketing Research5. Marketing Strategy by Marketing Mix i. Product ii. Price iii. Promotion iv. Place/Distribution6. Implementation (Action Program/Tactics)7. Financial Summary [Budget]8. Scenarios [Control]9. Appendix
** Social marketing: Is the use of marketing techniques to convince people to change their behavior for their own good or for the benefit of society. The aim of social marketing is to minimize social problems such as crime or poverty.* Corporate social responsibility (CSR): Taking positive actions for the benefit of its staff and society as a whole-include enhanced brand image, and greater ease in attracting staff.
*Different ways of CSR: 1. Cause related marketing (CRM) is when a company donates money to a charity, a non-profit organization or a good cause, the brand is then associated with the charity. 2. Green marketing is the development and distribution of eco- friendly, or environmentally friendly goods. 3. Responsible purchasing Companies can refuse to buy materials or goods made using child labor or that have been tested on animals.
** Micro-environment: Its factors have a direct impact on the company and its stakeholders: consumers, employees, shareholders and suppliers. The company has an influence over these factors.
* Macro-environment: A STEP analysis (also known as a PEST analysis) looks at sociological, technological, economic and political factors in the market environment on a macro level – often looking at a particular country or region. The relationship between the company and these factors is indirect.
** Intellectual property refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images and designs used in commerce. Intellectual property is divided into two categories: 1. Industrial property 2. Copyright protects* Legal problems: 1. Counterfeiting 2. Piracy* Consumer protection Act Is a law that protects the consumer from faulty or defective products.
** “Is the process of gathering information about a market, analyzing it and interpreting it.”* Or its A systematic design, collection, analysis & reporting of data relevant to the company situation in market.* Types of Research: 1. Consumer research: Buying behavior 2. Motivation research: psychological reasons* Qualitative vs. Quantitative researches
*1. Secondary “Desk” research include the internet, books, newspapers, magazines, and government statistics.2. Primary “In-field” research involves talking to people and finding out what they think about a market, a product, a business sector, etc. And usually carried out by market research institutes, through: Surveys, experiments & observations.
*1. Idea generation focusing on identifying customer demands (what customers are asking for) and understanding consumer needs (what customers require to solve a particular problem).2. Idea screening A company has to assess which ideas are viable (will survive in a competitive marketplace), technically feasible (the company has the skills and resources to produce them), and profitable (will make money).3. Concept development attractive idea is developed into several different product concepts.4. Concept testing5. Marketing strategy6. Business analysis Companies estimate the sales volume, the selling price and revenue expectations.
*a) The Workflow organization * Resource allocation, Prioritization & Project teamb) Product Development & Optimization * CAD & Prototypec) Test marketing * Collect info about the product performance in the marketplace before its launch whether by simulation or even real sampling test in a real –short range- market. “Local market”d) Commercialization * Action plan on introduction into market & Distribution network
** Product types: 1. Raw material: products used to make/manufacture other products, such as Cotton, Steel, Oil, etc. 2. A product type: is a group of products offered by different companies which are technically similar. 3. Product class: is a group of products that may be considered as substitutes for another, such as H&M with Zara.* Word combinations with Goods & Products* Types of Services
** BCG matrix 1. Question mark 2. Star 3. Cash cow 4. Dogs
*1. B2B (Business to Business)2. B2C (Business to Customer)3. C2C (Customer to Customer)
*Brand: A name, sign, symbol, or design or a combination of these intended to identify the good/service of a company to differentiate it from those of competitors.Packaging: The activities of designing and producing the container for a product.
Brand Equity/Recognition: The Marketing value/power of a brand based on * – High brand loyalty * – Name awareness * – Perceived quality
Private Brand: A brand created and owned by a reseller of a product or service. e.g: GhabbourCo-branding: The practice of using an established brand name of 2 different companies on the same product. e.g: SonyEricsson
Brand extension: Using a successful brand name to launch a new/modified product in a new category.Brand Awareness: The recognition of a brand and connecting it with a company’s product.Trademark/Logo: A graphic symbol that represents a brand.
Brand Slogan: A phrase that refers to a the fundamental spirit of the brand – expressed in a simple word of mouth. : Brand Value The tangible & intangible benefits offered from the brand to its customers.Brand Loyalty:The consistency of choosing one brand over another, & keeping onbuying it again and again.
Differentiation: The extent to which a certain brand is different and distinct from similar product category.Derived Brand: When a component of a Product becomes a brand by its Own.
** Market Segmentation: A process of dividing the total market into groups of customers that tend to share values, needs, and purchasing habits.* Or: Identifies groups of buyers within a market who share similar needs & demonstrate similar purchasing behavior. * Applied through: 1. Demographics ( Age, sex, religion, ethnicity, Income & Lifecycle). 2. Psychographics (Education, Attitudes, Opinion & Lifestyle).
*1. Innovators Create something new and start a new trend.2. Early Adopters Identify trends early and like to be associated with the launch of a trend.3. Early Majority Follow the trend set by Early Adopters.4. Late Majority Follow the trends have been tested by the Early Majority.5. Laggards Are the last of people to buy a product/brand; indeed they may never buy it!
** Loyalty is a deeply held commitment to re-buy a preferred brand in the future despite situational influences that may cause switching behavior.* Loyalty Programs: Offering the customer gifts & advantages such as Discounts & special offers in order to retain, keep & identify Preferred customers.
**Building relationships with valued customers to maximize their long term value and profitability (customer differentiation?).*It maximize the value of the company’s customer base, more focus on high value customers.
** Marketing Budget: it present the cost of the marketing plan, include the cost of distribution and different marketing actions like Ads.* Budgeting approaches: 1. Affordable approach 2. Percentage of Sales approach 3. Objective-and-task approach 4. Competitive parity* ROI (return on investment)
** What is a Price? It is the amount of money charged for a product or service, or the sum of values that consumers exchange for the benefits of having or using the product or service. oCost based vs. Value based pricing Product Cost Price Value Customers Customers Value Price Cost Product
* The 2 extremes Pricing strategies: 1. Market-Skimming pricing Setting a high price for a product to skim maximum revenues from the segment willing to pay this high price “Crème de la crème” ; the company make fewer but more profitable sales. 2. Market-Penetration pricing Setting a low price for a product in order to attract a large number of buyers and a large market share.
* Advanced Pricing strategies: 1. Captive product pricing Pricing an item very low & its complement very high. 2. Economy pricing Pricing an item as cheaply as possible. 3. Geographical pricing Pricing according to area where goods are sold. 4. Penetration pricing Pricing items at a very low price to encourage people to buy them- often the prices are later raised. 5. Premium pricing Charging a high price for a unique high-quality item. 6. Skimming pricing Charging a high price for an item where you have a competitive advantage. 7. Psychological pricing The consumer respond on an emotional –rather than a rational- basis. E.g.: charging 99 cents instead of 1 dollar. 8. Product bundle pricing Combining several products in the same package to move the old stock, like DVDs.
** Demand: The higher demand on a certain product, the higher price attached to it.* Product substitutability: The more product alternatives, the less customer loyalty.* Price sensitivity: The customer is highly sensitive to any raise in price, especially if the product is substitutable.* Complementary costs: the customer needs no complementary costs to get complementary goods.
** Shipping methods: 1. Container ships/freight “Oceans” 2. Air ships/freight “Airways” 3. Land freight/ Road haulage “Lorries & Vehicles” 4. Rail ships/freight “Goods Railway”* Direct distribution: * Eliminate the Middle-men * Eliminate the Distribution costs * Keeping track of the Inventory * Receive customer orders directly * Ease of the Mass-customization
** Merchandise is a marketing activity where a brand image is used to sell another product, in order to increase retail sale e.g.: CATERPILLAR clothes . * Promotional merchandising: 1. In-pack offers: items inside the packaging e.g.: Toys in Kentucky. 2. On-pack offers: gifts, Discounts, money-offers. 3. Goodies/Giveaways: items like samples, hats with the firm’s logo. 4. Corporate gifts: luxurious items with the company logo given to special Clients/ VIPs e.g.: Gold Pens. * Sports merchandising: (Addidas vs. Ahly football club) or (Egyptian league vs. Etisalat). * Film, book & music Merchandising: Cross Marketing: the sale of a product helps promote the sale of another product , e.g.: games of a Movie story or book of a Movie story like Harry Potter.
** Trade show= Trade exhibition= Trade fair: Is an industry-specific business event.* A Trade show vs. Public trade show.* A Vertical trade show vs. Horizontal trade show.* Organizing an event “fair”: 1. Explore the Event profile of company’s previous years events. 2. Check the Visitor profile/List. 3. Calculate the Floor space. 4. Book a Stand/Booth. 5. Customize the Booth with Trade show Displays. 6. Train the Booth Staff. 7. Guide the visitors with Roadmap to reach the Venue easily.
** It is a form of Direct Marketing where an Operator calls potential customers in order to achieve an immediate response. Measured through Cost per inquiry or Cost per order.* Outbound telemarketing: The Operators call Prospects (potential customers) from a Cold List brought from a List broker since such a process is called ”Cold Calling”. A Qualified telemarketing list include the details about prospects who have the need or authority to purchase. * Advantages: 1. Lead generation 2. Phone sales 3. Appointment setting* Lead Conversion is making a Follow-up calls after a Mailshot/Trade show convert the Leads into Sales.
* Voice-broadcasting is a cheaper form of Outbound marketing -substituting the live call with a Recorded message.* Inbound telemarketing: Clients call the telemarketing firm, may be in response to Advertising , make a Reservation, place an Order or contact Customer service.* Telemarketing scripts & dealing with the Customer’s objections.
** Browse the Home-page to check on the items of purchase through Delivery, the Website visitors may search by Product category.* A Wish list is list of items created by the client who wish to receive them as a present. The Wedding list/Baby registry is a good example of the Wish list.* A Clear payment information must be given for the customers, including sufficient details about Delivery costs & options.
** Sales force The sales force is composed from Sales-persons or Sales-reps who interact directly with the prospects to build long-term relationships & make Sales.* The Sales process: assist in converting leads into signed deals 1. Prospecting & Qualifying 2. Presenting 3. Closing deals 4. Following-up* The Sales kit includes sales aid: 1. Product samples 2. Price lists 3. Order forms
*1. Pester power Encourages kids to ask their parents to buy a specific product.2. Beauty “sex” appeal Suggests that consumers who use the product will be more attractive.3. Peer approval Associates the product with social acceptance by friends or peers.4. Scientific “Statistical” claim Uses research or statistics to convince customers.5. Lifestyle advertising Suggests that buying the brand will give access to an inspirational life.6. Rebel advertising Goes against social norms and may appeal to teenagers.
7. Escape advertising Make the consumer imagine that he/she is living a very different life.8. Celebrity endorsement Uses a famous person to recommend the product.9. Puffing Uses a very exaggerated message that customer won’t believe it to be true.
** Media strategy 1. Communication objectives 4. Lifestyle 2. Target audience 5. Demographics 3. Media mix 6. Media budget* Media planning Communication channels *Media buying Media schedule Media bookings are done Continuity strategy “Top of mind” Media pressure strategy according to Space. Reach/Coverage Time span Frequency
* Advertising on TV/Radio * 1. Contact an Ad Agency 2. Come-up with a Communication strategy 3. Check the Ad copy “Text” 4. Set the Catchy Jingle “music rip for the ad” 5. Create a memorable Slogan* Advertising formats: TV/Radio broadcast “Commercials/ad” A traditional format shown during the commercial break between programs. Ident A short name with the Brand name & Logo shown before the program. Sponsored program “AFP-advertiser funded program” Its financed by the Sponsor. Interactive ads Applied with digital TVs by using the remote control to press a button responding to the ad.
** Out-of-homes advertising formats: Roadside panels: 1. Billboards: (large outdoor panels for displaying ads.) 2. Giant banners/Wallscapes: (hung on front of the buildings.) 3. Light boxes: (illuminated panels.) 4. Tri-face billboards: (rotating tripod with 3 sides of ads.) 5. Scrollers: (signs displaying multiple posters.) Street furniture: 1. Bus shelters 2. Pedestrians panels Transit ads: e.g.: Bus, Taxi & Metro Ambient media: e.g.: back of the receipts Digital outdoor ads: e.g.: LED displays
** Design: Printed docs are prepared & produced inside the Graphic studio. Graphic designers make the Layout & a Dummy showing how the finished work will look. The Copy/Text is written by the Marketing team, the a Proofread is done to ensure a mistakes-free work. This process is called Copywriting.* The print job 1. Prepress: (Typesetting/composition, Print specification & Registration marks). 2. Final proofing: (press check make few copies to see color corrections). 3. Printing/Press: ( 8 printing techniques). 4. Finishing: (perfect binding, folding & perforating).
** Branded content is entertainment created, funded or produced by a Brand. (A good example is Pampers producing the babies healthcare program on Nojoom FM).* It can be a TV show, Radio program, Movie, Video Game, Book or a live event.* Interruptive advertising: commercials in advertising breaks.* Types of Branded content: Advertiser-funded program Off-air events Digital media networks Online Mobile/Wireless content Contract publishing Films Adver-gaming Product placement/integration
** Internet advertising formats: • Banners • Buttons • Skyscrapers • Pop-ups • Microsites: small websites dedicated to promote a certain product & has its own address or URL, may be a part of large business website (like Jordan by Nike / AMG from Mercedes ). • Rich media formats• The effectiveness of Online ads unit is measured in Impressions- which is the number of times that the Ad is viewed to the online audience.
* Search Engines http://www.google.com* SEM (Search Engine Marketing) Organic search listing Vs. Paid search listing SEO(Search Engine Optimization) increasing the traffic toward a certain website according to its ranking in order to appear recommended in the SERP(Search Engine Result Page). White hat/Black hat is a sort of classifying the websites based on Trust from Search Engines.