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FUNDAMENTALS_OF_MARKETING_new.ppt
- 1. Marketing Buzzwords of confusion •Sales versus Marketing • Market Research & Marketing Research • Event Marketing • SWOT, PEST, KPI’s, USP’s, DINKY’s etc
- 2. As Event Managers, whyis it important we understand what Marketing is?
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- 4. Example of Eventsin Marketing • The Pepsi Challenge has been an ongoing marketing promotion run by PepsiCo for the last 2 decades • 1980’s Pepsi Challenge – built around a premise that had to be established ‘live’
- 5. • The challengetakes the form of a taste test. At public locations, a Pepsi representative sets up a table with two blank cups, one containing Pepsi and one with Coke. • Shoppers are encouraged to taste both colas, and correctly identify which is Pepsi and which is Coke. If they can correctly identify the two, they win a prize. Example of Events in Marketing
- 6. Events within Marketing Marketing (APhilosophy) Events The Marketing Mix (Tactics) Product Price Place Promotion People Physical Evidence Process
- 7. Agenda • Marketing –What is it? • The Marketing Mix • The Environment • The Marketing Plan • The Promotion Focus • Events (Face to Face Communication)
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- 9. • The agrarianeconomy was largely self sufficient and trade was mostly through barter • The industrial revolution in early 19th century suddenly created ‘surplus’ – putting pressure on manufacturers to find markets that could absorb the produce • The need for labeling the produce, brands, trademarks and patents gradually began to come in • Mid 19th Century – traveling salesman to organized distribution Marketing History
- 10. • The SalesEra lasted till the 2nd world war • Post war boom started the consumerist wave – money in the hands of people, and larger number of enterprises making similar products • Product proliferation made business very competitive • It was this that paved the way for Marketing Marketing History
- 11. Orientation Stages • ProductionOriented Firms tend to manufacture and offer goods that they are good at producing • Sales Oriented The Hard Sell, firms now realise that due to competition the goods have to be sold. Sales volume becomes the most important criterion • Marketing Oriented The firm ascertains the genuine needs and wants of specifically defined target markets and then produce goods and services that satisfy the customer requirements
- 12. Marketing – SomeDescriptions • “Marketing is a human activity directed at satisfying human needs and wants through exchange process” • “The customer is always right” • “The right product, in the right place, at the right time, at the right price”
- 13. Marketing – Definitions •“Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably” Chartered Institute of Marketing • “Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives” American Marketing Association
- 14. Sales versus Marketing •Sales process begins with the producer • Based on what the producer can make • Seller defines the price • Focus on finding buyers and selling them anyhow • The sale is the end of the transaction • Product attributes static, as long as it sells • Marketing begins with the consumer • Based on consumer needs and wants • Market demand decides • Focus on matching consumer needs with product attributes • The sale is the beginning of the transaction – relationship • Products must adapt to changing customer trends
- 15. Sales versus Marketing •Marketing is involved with the planning of the presentation of the firm’s capabilities; whereas • Sales is the execution of the transfer or “exchange” of the product, good or service.
- 16. Sales versus Marketing •Marketing is a strategic function and has a number of tactical activities, of which selling is one. • The primary function of sales is to find and close leads, turning prospective customers in actual ones • Sales definition Income (at invoice values) received for goods and services over some given period of time
- 17. Presentation Status • Marketing– What is it? • The Marketing Mix • The Environment • The Marketing Plan • The Promotion Focus • Events (Face to Face Communication)
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- 19. The Marketing Mix •The 4 P’s The variables that the marketing manager can control in order to best satisfy customers in the target market Target Market 2. Price 1. Product 4. Promotion 3. Place The physical product or service offered to the consumer. Channels of distribution to ‘get’ the product to the consumer. Producer-Wholesaler- Retailer-Customer Financial aspects of the process; price levels, profit margins etc. The communication and selling to potential customers
- 20. The ‘Extended’ MarketingMix 5. People • Employees are in direct contact with customers and therefore must be considered the in the developing the marketing mix
- 21. The ‘Extended’ MarketingMix 6. Physical Evidence • Service has an intangible characteristic, therefore importance is placed on more tangible elements of the service mix such as facilities and equipment.
- 22. The ‘Extended’ MarketingMix 7. Process • How the service is provided is important. Procedures for dealing with customers at the point of contact, and the supply of a consistent quality service must be pre-planned and managed
- 23. Presentation Status • Marketing– What is it? • The Marketing Mix • The Environment • The Marketing Plan • The Promotion Focus • Events (Face to Face Communication)
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- 25. Components of Communication EncoderDecoder Channel Message
- 26. Organisational Buying Process Needrecognition Determine specification (general) Determine specification (specific) Search Evaluation Selection Post-purchase evaluation
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- 28. Market Analysis • PEST– A framework to scan the external macro- environment in which a firm operates Price Product Promotion Place Company Economic Socio-Cultural Techno- logical Political
- 29. Target Markets • Oneof the reasons why marketing arose was because of the diversity of markets and complex human needs and wants • As competition increased and more producers started producing similar goods, the need to carve out exclusive niches arose • This could be done by changes to the product – DIFFERENTIATION, or to the market definitions - SEGMENTATION
- 30. Segmentation & Targeting •If segmentation is about breaking up a mass market into more specific subsets, targeting is all about the decisions to appeal to them • Treating them all as one large group with a common interest is called UNDIFFERENTIATED marketing • Selecting one small niche and catering to that segment is called CONCENTRATED marketing • Identifying several unique subsets and talking to them individually is called DIFERENTIATED marketing
- 31. Why Segment? • Bettermatching of customer needs • Enhanced profits, margins for the business • Better opportunities for growth • Retain loyalty of customers • Targeted marketing communications • Gain share in the segment
- 32. Some Examples ofProfiles • Ultra Conservative - don't rock the boat, whatever they purchase must be consistent with their current way of doing things. • Conservatives - are willing to change, but only in small increments and only in a very cost effective manner. • Liberals - regularly looking for new solutions, willing to make change (even major change) if the benefit can be shown. • Technical Liberals - enamored with the benefits provided by high tech solutions and any purchase decision will be biased by the technical content of the offering. • Self Helpers - consistently defines/designs solutions to their problems, likes to acquire tools that help in the innovation process.
- 33. The Road tothe Market To get a product or service to the right person or company, a marketer would firstly 1. segment the market, 2. then target a single segment or series of segments, 3. and finally position within the segment(s)
- 34. 1. Market Segment Segmentationis essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. • by geography – region, climate, population density and growth • by demographics - such as age, gender, occupation, income, education and family status • by psychographics - such as values, lifestyle or beliefs • by behaviour – such as class, brand loyalty, price sensitivity
- 35. 2. Targeting theMarket • After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them • It's like looking at a dart board or a shooting target. You see that it has areas with different scores - these are your segments. Aiming the dart or the bullet at a specific scoring area is 'targeting'
- 36. 2. Targeting theMarket (cont) • Eg. The Car Industry
- 37. 2. Targeting theMarket (cont) • Eg. Rolls Royce
- 38. 2. Targeting theMarket (cont) • Eg. Washing Powder
- 39. 3. Position inMarket • After segmenting a market and then targeting a consumer, you would proceed to position a product within that market • Positioning is all about 'perception‘ • Products or services are 'mapped' together on a 'positioning map'. This allows them to be compared and contrasted in relation to each other
- 40. EG. Automotive Positioning Map 3.Position in Market (cont)
- 41. Presentation Status • Marketing– What is it? • The Marketing Mix • The Environment • The Marketing Plan • The Promotion Focus • Events (Face to Face Communication)
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- 43. Marketing Plan • Marketingplans are vital to marketing success. They help to focus the mind of companies and marketing teams on the process of marketing i.e. what is going to be achieved and how we intend to do it.
- 44. The Marketing Plan(cont) The key stages of the plan are contained under the acronym AOSTC 1. Analysis 2. Objectives 3. Strategies 4. Tactics 5. Control.
- 45. The Marketing Plan(cont) 1. Analysis • The environment (PEST) • Internal Audit • Competitors • SWOT
- 46. SWOT ANALYSIS • Atool for identifying and analysing the (internal) strengths and weaknesses of a corporation and the (external) opportunities and threats. Strong brand / reputation Industry expertise Natural resources Patents New product / service Location Quality process or procedure Developing market Mergers or strategic alliances Moving into new attractive market segments New international markets Loosening of regulations Removal of international trade barriers Market is led by weak competitor STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Poor quality of goods or service Damaged reputation Lack of marketing expertise Location of business Competitors have superior resources Weak HR and personnel New competitor in home market Price war Innovative product/service from competitor New regulations Increased trade barriers Taxation on product / service
- 47. The Marketing Plan(cont) 2. Objectives (SMART) • Specific Be precise about what you are going to achieve • Measurable Quantify you objectives • Achievable Are you attempting too much? • Realistic Do you have the resource to make the objective happen (men, money, machines, materials, minutes)? • Timed State when you will achieve the objective (within a month? By February 2010?)
- 48. The Marketing Plan(cont) 3. Strategies •Describe your target market. •Which segment? •How will we target the segment? •How should we position within the segment? •Define the segment in terms of demographics and lifestyle •Show how you intend to 'position' your product or service within that segment. Use other tools to assist in strategic marketing decisions such as Boston Matrix, Ansoff’s Matrix
- 49. The Marketing Plan(cont) 4. Tactics Convert the strategy into the marketing mix (4 p’s)marketing mix. These are your marketing tactics. PRICE. Will you cost plus, skim, match the competition or penetrate the market? PLACE. Will you market direct, use agents or distributors? PRODUCT Sold individually, as part of a bundle, in bulk? PROMOTION Which media will you use? e.g sponsorship, radio advertising, sales force, point-of-sale, etc? Think of the mix elements as the ingredients of a 'cake mix’
- 50. The Marketing Plan(cont) 5. Control Remember that there is no planning without control. Control is vital. • Start-up costs • Monthly budgets • Sales figure • Market share data • Monitor and Evaluate plan
- 51. Marketing Budgets • Gearyour marketing efforts to the most cost effective use • Budgets include everything from equipment investments to “soft” company support of community events • Keys areas could be: (mix) – Advertising; public relations – Product packaging – Sales force / commercial incentives • Marketing budget should anticipate results; internally “sell” the expenditures for each piece; support most important objectives • Some marketing organizations have P/L responsibility • “You can’t make a buck, without spending a buck”
- 52. Campaign Framework Marketing Communication Objectives & Strategy Marketing Communication Tactics Campaign Implementation Campaign Evaluation& Control •Specific •Measurable •Short Term •Targets •Budgets •Creative •Media selection •Below the line promotions •Sales force •Public relations •Distribution channels & management •National Launch or smaller scale campaign
- 53. Presentation Status • Marketing– What is it? • The Marketing Mix • The Environment • The Marketing Plan • The Promotion Focus • Events (Face to Face Communication)
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- 55. Events within Marketing Marketing (APhilosophy) Events The Marketing Mix (Tactics) Product Price Place Promotion People Physical Evidence Process
- 56. Push & PullMarketing Strategies PUSH Marketing efforts targeted at the middlemen and the salesforce PULL Marketing efforts targeted at consumers •Cash discounts •Dealer competitions •Salesforce cash incentives •Direct Mail shots •Credit facilities •Trade Exhibitions & Events, Demonstrations •Training schemes •Price reductions, •Coupons •Free samples/demos in stores •Competitions •Buy one get one free, •Packaging, •Point of Sale displays, •Consumer Advertising • Sponsorship CHANNELS OF DISTRIBUTION
- 57. The Promotion Cake •The basic ingredients are always the same. However if you vary the amounts of one of the ingredients, the final outcome is different. You can 'integrate' different aspects of the promotions mix to deliver a unique campaign cake. Personal Selling Advertising PR Direct Mail Sales Promotion Events Sponsorship Personal Selling Advertising PR Direct Mail Sales Promotion Events Sponsorship
- 58. Advertising ‘Advertise’ – ‘makeknown…To inform’ An advertisement to be successful; • Must be seen • Must be read • Must be believed • Must be remembered • Must be acted upon
- 62. Presentation Status • Marketing– What is it? • The Marketing Mix • The Environment • The Marketing Plan • The Promotion Focus In progress • Events (Face to Face Communication)
- 63. Presentation Status • Marketing– What is it? • The Marketing Mix • The Environment • The Marketing Plan • The Promotion Focus In progress • Events (Face to Face Communication)
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- 65. Presentation Status • Marketing– What is it? • The Marketing Mix • The Environment • The Marketing Plan • The Promotion Focus • Events (Face to Face Communication)
- 66. Events (Face to FaceCommunication)
- 67. An Overview ofEvents Events • Award Ceremonies • Carnivals • Concerts • Conferences • Corporate Events • Exhibitions • Festivals • Fashion Shows • Product Launches • Promotions • Road Shows • Seminars • Sporting Events • Trade Fairs
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- 81. Presentation Status • Marketing– What is it? • The Marketing Mix • The Environment • The Marketing Plan • The Promotion Focus • Events (Face to Face Communication)
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- 83. Event Communication • Advantages •Clean and customer direct • Direct benefit to the user (even enjoyment) • It is suggested that the advertising arena (while growing in terms of size) is slowing down and being replaced by the ‘Face-to-face’ style medium of communication.
- 84. Marketing Dictionary • Abovethe Line Advertising for which a payment is made and for which commission is paid to the advertising agency. See also 'below the line' and 'push versus pull promotion‘ • Advertising Promotion of a product, service, or message by an identified sponsor using paid-for media. • Brand The set of physical attributes of a product or service, together with the beliefs and expectations surrounding it - a unique combination which the name or logo of the product or service should evoke in the mind of the audience. • Brown Goods Electrical goods such as TVs, videos, stereo systems etc, used for home entertainment. So called because they were originally cased in bakelite, a brown plastic.
- 85. Marketing Dictionary • Buzzmarketing uses 'word-of-mouth' advertising: potential customers pass round information about a product. See also 'viral marketing‘ • Channels The methods used by a company to communicate and interact with its customers • Copyright The law that protects an author's original material, usually (in the UK) for 70 years after the author's death. Similar law covers logos and brand names • Copywriting Creative process by which written content is prepared for advertisements or marketing material
- 86. Marketing Dictionary • CustomerRelationship Management (CRM) The coherent management of contacts and interactions with customers. (This term is often used as if it related purely to the use of IT, but IT should in fact be regarded as a facilitator of CRM.) • Decision Making Unit (DMU) The team of people in an organisation who make the final buying decision • Differentiation Ensuring that products and services have a unique element to allow them to stand out from the rest • DINKY Double Income No Kids Yet - a demographic grouping
- 87. Marketing Dictionary • DirectMarketing All activities which make it possible to offer goods or services or to transmit other messages to a segment of the population by post, telephone, e-mail or other direct means • Electronic Point of Sale (EPOS) System A system whereby electronic tills are used to process customer transactions in a retail outlet • Endorsement Affirmation, usually from a celebrity, that a product is good • FMCG Fast Moving Consumer Goods - such as packaged food, beverages, toiletries, and tobacco
- 88. Marketing Dictionary • FocusGroups A tool for market research where small groups of customers are invited to participate in guided discussions on the topic being researched • Grey Marketing (also called Parallel Importing) The illicit sale of imported products contrary to the interests of a holder of a trademark, patent or copyright in the country of sale • Guerrilla Marketing The strategy of targeting small and specialised customer groups in such a way that bigger companies will not find it worthwhile to retaliate • Logo A graphic, usually consisting of a symbol and/or group of letters, that identifies a company or brand
- 89. Marketing Dictionary • MacroEnvironment The external factors which affect a company’s planning and performance, and are beyond its control: for example, socio-economic, legal and technological change. Compare 'micro environment‘ • Market Penetration The attempt to grow one's business by obtaining a larger market share in an existing market - see 'market share' and 'market development‘ • Micro Environment The immediate context of a company's operations, including such elements as suppliers, customers and competitors - compare 'macro environment‘ • Personal Selling One-to-one communication between seller and prospective purchaser
- 90. Marketing Dictionary • PIMSProfit Impact of Marketing Strategies: a US database supplying data such as environment, strategy, competition and internal data with respect to 3000 business. This data can be used for benchmarking purposes • Point of Sale (POS) (also called Point of Purchase) The location, usually within a retail outlet, where the customer decides whether to make a purchase. See also 'EPOS - Electronic Point of Sale' • Portfolio (and Portfolio Analysis) The set of products or services which a company decides to develop and market • Product Life Cycle A model describing the progress of a product from the inception of the idea, via the main period of sales, to its eventual decline
- 91. Marketing Dictionary • PromotionalMix The components of an individual promotional campaign, which are likely to include advertising, personal selling, public relations, direct marketing, packaging, and sales promotion • Relationship Marketing The strategy of establishing a relationship with the customer which continues well beyond the first purchase. • Return on Investment (ROI)/Return on Capital Employed (ROCE) The value that an organisation derives from investing in a project • Skimming Setting the original price high in the early stages of the product life cycle in an attempt to get as much profit as possible before prices are driven down by increasing competition
- 92. Marketing Dictionary • SupplyChain The network of suppliers, manufacturers and distributors involved in the production and delivery of a product • Unique Selling Preposition (USP) The benefit that a product or service can deliver to customers that is not offered by any competitor: one of the fundamentals of effective marketing and business • Value Preposition The set of qualities of a good or service that allows it to fulfill the customer's needs and desires, as opposed to simply benefiting the seller • White Goods Large electrical devices for domestic use, such as fridges, freezers and dishwashers. Used to be cased in white enamel, hence the name