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Marketing assignment-Philip Kotler
- 1. ADVERTISING SRUTHI KM |19PGM50 MARKETING MANAGEMENT ASSIGNMENT POST GRADUATE DIPLOMA IN MANAGEMENT
- 2. ADVERTISING Advertising is definedas a form of marketing communication used by companies to promote or sell products and services. Advertising is one of the components or subsets of marketing. In other words, if you think of marketing as a pie, then advertising will be an important slice of that pie. 2 COGNITIVE AFFECTIVE CONATIVE
- 3. 5 M’s ofADVERTISING Marketing managers must always start by identifying the target market and the buyer’s motives. Then they can make the five major decisions in developing an advertising program, known as the Five M’s… Mission Money Message Media Measurement 3
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- 5. MISSION Sales Goals Advertising Objectives MONEY Stage inPLC Market share and consumer base Competition and clutter Advertising frequency Product sustainability MESSAGE Generation, evaluation and selection Execution Social Responsibility review MEDIA Reach, frequency , impact Major media types Geographical media allocation MEASUREMENT Communication and sales impact 5 M’s AND THEIR DECISIONS 5
- 6. MISSION – SETTINGTHE ADVERTISING OBJECTIVES Advertising objective is a specific communication task and achievement level to be accomplished with a specific audience in a specific period of time. Classification of objectives Informative advertising Persuasive advertising Reminder Advertising Reinforcement advertising 6
- 7. Informative Advertising Aims tocreate brand awareness and knowledge of new products/features of existing products. They may also include Suggesting new uses of the product Informing how the product works Corrective false impressions Reducing buyers fears Building a company image. Vicco VajraDanti- Launches a new packaged toothpaste featuring Alia Bhatt. 7
- 8. Persuasive Advertising Aims tocreate liking , preference, conviction and purchase of the product or service. Aims to create BRAND Comparative advertising works best in this case, when it tries with cognitive and effective way of convincing customers. https://www.youtube.com/watch?v=-urr59Y65aY -Dove comparison with litmus paper. 8
- 9. Reminder Advertising Aims tostimulate repeat purchase of the product and services. Highly effective in the maturity stage of the product. The aim to keep thinking about the product all time. Expensive advertisements make us reminded about the product. 9
- 10. Reinforcement Advertising Aims toconvince customers that their choice is right. We have positive and negative reinforcement. 10
- 11. Money- Deciding onAdvertising Budget The company should analyse and spend the right amount of money for advertising. Thorough analysis should be done , as advertising is an investment into building a Brand Equity and Customer Loyalty. Budgeting can be done based on 11 Departments Product groups External advertisement Calendar, Magazine. Social Media Media Specific Geographic Areas Focused market
- 12. 5 Factors affectingBudget Decisions 12 • New products , high budgets build awareness and gain consumer trail • Established brands, lower budgets. Stage in Product lifecycle • Financial concept , High market share Less advertising budget • Building share by increasing market share requires high budget Market share and consumer base • High advertisements needed for products that have high competition in market • Advertisements not directly affecting the market causes Clutter, need for heavier advertising Competition and clutter • Number of repition to create a brand’s message to consumers • This has an obvious impact on advertising and budget. Advertising Frequency • Less- differentiated /commodity like product classes needs high budget to create brand image • Beer, Soft Drinks, Airlines, Banks. Product Sustainability
- 13. Message - Developingthe advertising design Using both Art and Science to develop a message known by message strategy and how it expresses the brand, claims the creative strategy. 3 steps involved Message generation and evaluation Creative Development Social-Responsibility review. 13
- 14. Message generation andevaluation Inductive: This can be done by talking to consumers, dealers, experts and competitors. Consumers are the major source of good ideas. Their feeling about the product, its strengths, and weaknesses gives enough information that could aid the Message generation process… Deductive: John C. Meloney proposed a framework for generating Advertising Messages. According to him, a buyer expects four types of rewards from a product: Rational Sensory Social Ego Satisfaction. 14
- 15. Buyers might visualizethese rewards from, ▪ Results-of-use Experience ▪ Product-in-use Experience ▪ Incidental-to-use Experience The Matrix formed by the intersection of these four types of rewards and the three types of experiences follows… 15
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- 17. Creative Development andExecution Ad’s impact depends not only on what it says, but also on how it says. They can be done through 10 forms of retail marketing. Display ads Social media ads newspapers and magazines outdoor advertising radio and podcasts direct mail and personal sales video ads product placement event marketing email marketing 17
- 18. Social Responsibility Review Marketingand the advertising agencies must make sure that they do not overstep the social and legal norms or offend the general public or ethnic, racial or special interest groups. Advertisements play a more positive broader social role. 18
- 19. Media –Choosing theright media Reach , Frequency and Impact Finding the cost effective media to deliver the desired number and type of exposures to the target audience. Reach-Number of different persons Frequency- Number of times Impact-The qualitative value of an exposure. 19
- 20. Choosing among majoradvertising options Next step every alternative media is evaluated. 20
- 21. Selecting media timingand allocation Decisions are taken between the micro scheduling and the macro scheduling. Factors to consider are Continuity Concentration Flighting Pulsing 21
- 22. Classification of advertisingpatterns 22
- 23. Measurement- Evaluating advertising effectiveness Communication–Effect It’s potential impact on awareness, knowledge or preference. Sales-Effect How much sales is generated with the expenditure made. Controllable factors such as price and feature play an important role. Sales impact is the easiest and the preferred measure in direct marketing, but hardest in the image /brand building. 23
- 24. MARKETING PLAN SRUTHI KM| 19PGM50POST GRADUATE DIPLOMA IN MANAGEMENT MARKETING MANAGEMENT ASSIGNMENT
- 25. “ 70% ofthe small businesses are owned and operated by a single person, provided there is a proper planning -United States Small Business Advocates 25
- 26. MARKETING AND CUSTOMERVALUE Biggest task is to deliver customer value at a profit. Which can be done by fine tuning the value delivery process, choosing, providing and communicating superior value to customers. 26
- 27. THE VALUE DELIVERYPROCESS Successful companies place marketing at the beginning of the planning. This comes in 3 phases Choosing the value Providing the value Communicating the value 27
- 28. THE VALUE CHAIN Atool for identifying ways to create more customer value. 9 strategically relevant activities -5 primary and 4 support activities. These creates value and cost benefits in specific business. 28
- 29. Strategically relevant activities Primaryactivities Inbound logistics Operational activities Outbound Logistics Marketing Service Support Activities Procurement Technology development HRM Firm Infrastructure 29
- 30. Co-ordination of thecompanies core activities Marketing sensing process New-offering realization process Customer Acquisition Process Customer Relationship management Process Fulfilment Management Process 30
- 31. CORE COMPETENCIES Characteristics ofcompetencies Source of competitive advantage Applications in wide range of market It should be difficult for competitors to duplicate/imitate 31
- 32. Realignment to maximizecore competencies Redefining the “Big Idea” Reshaping the business scope Repositioning the company’s brand identity 32
- 33. CENTRAL ROLE OFSTRATEGIC PLANING 33
- 34. MARKETING PLAN It isthe central instrument for directing and coordinating the marketing effort. Operates at 2 levels Strategic marketing planning Tactical marketing planning 34
- 35. CORPORATE AND DIVISIONSTRATEGIC PLANNING 4 planning activities Defining corporate mission Establishing strategic business units Assigning resource to each strategic business units Assessing growth opportunities 35
- 36. DEFINING THE CORPORATEMISSION What is our business? Who are our customers? What is the value to the customer? What will business be? What will our business be? “Mission should answer all above questions “ 36
- 37. Crafting a missionstatement (Good statement ) Focusing limited number of goals Stress the company’s major policies and values Define major competitive spheres in which the company operates. Long term view Short, memorable and meaningful as possible 37
- 38. ESTABLISHING STRATEGIC BUSINESSUNITS Characteristics of a strategic Business unit (BSU) It is a single business , so plans should be made accordingly. It has its own set of competitors It has manager responsible for every SBU. 38
- 39. ASSIGNING RESOURCES TOEACH SBU 39
- 40. ASSESSING GROWTH OPPORTUNITIES Planningnew businesses, downsizing and terminating older businesses. Step 1: Identify growth opportunities within businesses (Intensive Opportunities) Step 2: Identify opportunities to build and acquire businesses related to current businesses (Integrative Opportunities) Step 3: Identify opportunities to add attractive unrelated businesses (Diversification opportunities) SRUTHI KM | 19PGM50 40
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- 42. ORGANIZATION AND ORGANIZATIONAL CULTURE Strategicplanning happens within the context of the organization. Phrases like “Making it right” , The Enterprise way” and “Fix any Problem” are ways it tell us the organization culture. 42
- 43. MARKETING INOVATION A marketinginnovation is the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing 43
- 44. MARKETING INNOVATION TECHNIQUES Word ofMouth Marketing Social Media Marketing Retain Your Existing Customers Explore New Geographies Brand Repositioning Show Your Expertise EXAMPLES Instagram Netflix Hotstar Youtube 44
- 45. NATURE AND CONTENTSOF MARKETING PLAN A marketing plan is a written document that summarizes what the marketer has learned about the market place and indicates how the firm plans to reach its marketing objectives. 45
- 46. Sections in amarketing plan Executive summary and table of contents Situation Analysis Marketing strategy Marketing Tactics Financial Projections Risk Analysis Implementation controls 46
- 47. ROLE OF RESEARCH Upto date information on market environment Identify key issues, threats and opportunities and feed back to the original strategy Satisfying the customers with providing service of their expectations 47
- 48. ROLE OF RELATIONSHIPS Influencingthe market by training the staffs to establish good bond between the customer and themselves. This way we can deliver value and satisfy customers. 48
- 49. From Marketing planto Marketing Action ▪ Example of how the plan is converted to action chart 49
- 50. MARKETING STRATEGIES AND FORMLUATION SRUTHI KM| 19PGM50 MARKETING MANAGEMENT ASSIGNMENT POST GRADUATE DIPLOMA IN MANAGEMENT
- 51. BUSINESS UNIT STRATEGICPLANNING PROCESS 51
- 52. THE BUSINESS MISSION Everybusiness needs to define its specific mission within the broader company mission. “A business mission describes the organization's basic function in society, in terms of the products and services it produces for its customers”” 52
- 53. SWOT ANALYSIS Evaluation ofa company’s strength, weakness, opportunities and threats is called SWOT. External (Opportunities and threats) and Internal environment (Strength and Weakness) plays a major role. 53
- 54. External Environment Monitoring microand macro environment factors plays an important role in earning profits. Marketing opportunity is an area of a buyer need and interest that the company has a high probability of profit. 54
- 55. 3 Main sourcesof marketing opportunities Problem Detection • Asking customers for suggestion. • How has the product been? Ideal Method • Imagining an ideal version of the product. • How the product was and has been designed? Consumption Chain method • Ask customers to chart their steps in acquiring , using and displaying the product. • This can lead to a totally new product. 55
- 56. Marketers should begood at spotting Opportunities. Opportunities for Apple Inc. These say that they are one step ahead in their competing market. Plotted against common attributes of attractiveness and success probability. 56
- 57. It is equallyimportant to identify threats …. Threats is a challenge posed by changing markets that , if in case we fail to take a defensive marketing action will lead to lower sales or profit. 57
- 58. Internal Environment Strength andWeakness analysis Strengths: characteristics of the business or project that give it an advantage over others. Weaknesses: characteristics of the business that place the business or project at a disadvantage relative to others. 58
- 59. SWOT ANALYSIS OFAPPLE INC. 59
- 60. GOAL FORMULATION Means developingspecific goals for the planning period. Business units sets these objectives Managers by objectives (MBO) Final Goal 60
- 61. Units objectives mustmeet criteria Arranging hierarchically from the most to least important. Objectives should be quantitative whenever possible Goals should be realistic Objectives should be consistent 61
- 62. STRATEGIC FORMULATION Designing strategiesfor achieving the goal considering Market Strategy , Compatible technology Strategy and Sourcing Strategy PORTER GENERIC STRATEGIES Overall cost leadership Differentiation Focus 62
- 63. Strategic Alliances Product orservice alliances -Licensing another company to produce its product. Promotional Alliances -Agreeing to carry promotion for other company. Logistic Alliances -Offering logistic services to other company Pricing Collaborations -One or more companies join in a special pricing 63
- 64. FINAL STRATEGY PROGRAM FORMULATION ANDIMPLEMENTATION Developing supporting systems Estimating implementation cost Managing details to implement the strategy. FEEDBACK AND CONTROL “Do the right thing to be effective , than to do things right to be effective” -Peter Ducker 64
- 65. IN MARKETING POST GRADUATEDIPLOMA IN MANAGEMENT SRUTHI KM | 19PGM50
- 66. WHAT IS MEANTBY ETHICS? Ethics is the art and science of determining good and bad or right or wrong moral behaviour of a single or a group of people. 66
- 67. “ MARKETING isthe science and art of exploring , creating and delivering value to satisfy the needs of a target market at a profit. -Philip Kotler 67 WHAT IS MARKETING?
- 68. MARKETING ETHICS Marketing ethicsis an area that deals with the moral principles behind marketing. Ethics in marketing applies to different spheres such as in product, pricing, Placing (Distribution), promotion & advertising etc 68
- 69. WHY ETHICS INMARKETING? Ethical marketing helps increase retention because employees feel eager and willing to help sell the product or service. A transparent company that promotes responsible marketing can provide a sense of purpose to workers and worth to society 69
- 70. PRINCIPLES OF ETHICALMARKETING All marketing communications share the common standard of truth. Marketing professionals abide by the highest standard of personal ethics. Advertising is clearly distinguished from news and entertainment content. Marketers should be transparent about who they pay to endorse their products. Consumers should be treated fairly based on the nature of the product and the nature of the consumer (e.g. marketing to children). The privacy of the consumer should never be compromised. Marketers must comply with regulations and standards established by governmental and professional organizations. Ethics should be discussed openly and honestly during all marketing decisions. 70
- 71. Do every organizationfollow ethics? It is impossible to claim that a company is completely ethical or unethical. Ethics resides in the grey area and resides in fine lines and boundaries. 71
- 72. Dove commercials asan example (Case study) Dove , ran a couple of ads featuring real models for their campaign. The Ad was meant to provide realistic body image and encourage girls to LOVE THE WAY THEY LOOK. But seems that they had altered the images of models to hide imperfections. Dove marketed ethically in one campaign and unethically in another. This illustrates how difficult it is to do the right thing in all circumstances. 72
- 73. TYPES OF UNETHICALADVERTISING Surrogate advertising- Reminder advertisement to use products like cigarettes and alcohols , indirectly. ”Redbull gives you wings” Exaggeration –False advertising about the products quality and popularity. ”Get coverage everywhere across the globe” Puffery –Relies on subjective claims rather than objective claim. “Best tasting coffee”. 73
- 74. Continued… Unverified claims –Resultswithout testing scientifically . “Thick, Long Shiny hair in just 2 use” Stereotyping women – Women being portrayed as sex objects or domestic servants. False Brand Comparisons- misleading comparison with competitors Children in advertising – Children believe advertisements and hence it is ethical to get Ads professional. 74
- 75. ETHICAL ISSUES INMARKETING We discuss Marketing issues by using 4P’S OF MARKETING Product & packaging price placing (distribution) promotion (advertising & branding) 75
- 76. ISSUES PRODUCT Consumer Safety Product Liabilityand reliability Designing for special needs PACKAGING Label information Packaging graphics Packaging safety Environmental implications of packaging 76
- 77. PRICE AND PLACING PRICE Bidrigging Supra competitive pricing Price Fixing Price skimming PLACING Transportation charges Partiality to the manufactures and its competitors Promised shipping Unsafe vehicles for shipping 77
- 78. PROMOTION (ADVERTISING ANDBRANDING) Promotion is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision. To present information to consumers as well as others To increase demand To differentiate a product 78
- 79. IMPORTANCE OF ETHICS CustomerLoyalty Long-term Gains Builds Credibility Leadership Displays rich culture Attracts talent Attains financial goals Enhanced brand value Satisfies basic human needs and wants 79
- 80. CREATING VALUE PROPOSITIONS SRUTHI KM| 19PGM50POST GRADUATE DIPLOMA IN MANAGEMENT MARKETING MANAGEMENT ASSIGNMENT
- 81. WHAT IS VALUEPROPOSITION? A value proposition is a promise of value to be delivered, communicated, and acknowledged. It is also a belief from the customer about how value (benefit) will be delivered, experienced and acquired. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services.
- 82. LINKING CUSTOMER WITHVALUE 82
- 83. VALUE PROPOSITIONS Understanding yourvalue proposition is the key to building a strong business model. It’s also the hardest part. Lets’ see some examples 83
- 84. 84 WHAT DO THESEPICTURE SELLS US? Value proposition?????? Will we spend a $10,000 just for this watch that shows us the same time as $100 watch?
- 85. This picture sellsus its heirloom Want to know how? States “You merely loom after it for the next generation” -this is special; the kind of thing you’ll pass on to your children. It’s hard to put a price on something sentimental. 85
- 86. UNIQUE VALUE Starbucks- Relaxingspace b/w work and home Google- The information you want fast Rolex- Doesn’t just tells time, it tells history. Rolls Royce- Quality perfection, engineered excellence 86
- 87. HOW DO WECREATE VALUE PROPOSITION? 87 What do you offer? Make your offer unique! What does your offer speak? What does your offer promise to do?
- 88. THE VALUE CYCLE Valueelements can be created in each of the five stages of the value life cycle. 88 value creation, value appropriation value consumption value renewal value transfer
- 89. BENEFITS OF VALUEPROPOSITIONS Provides the foundation for your offering Is a critical factor in conversion success Creates a strong differentiation between you and your competitors Increases not only the quantity but also the quality of prospective leads Helps your organisation internally 89
- 90.