Principles Of Marketing (anamika Sharma)

Principles of Marketing

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The Course Objectives 

LEARN PRACTICAL MARKETING KNOWLEDGE AND PRACTICES  Module

1 (Day 1)

• Marketing Definition • STP, Principle of Real World Mktg.  Module

2 (Day 2 & 3)

• Marketing Tools • From Online Marketing to Direct Marketing  Module

3 (Day 4)

• Marketing Program – Workshop • Learn How To Design a Marketing Program Picture 13

Today’s Objectives     

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What is marketing? STP The Marketing Mix Principles of real world marketing Exercise

What is Marketing?

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It is not just “selling and advertising”; It is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

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“The Whole Firm Taken From A Customer Perspective” Peter Drucker

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EVERYTHING THAT TOUCHES THE CONSUMER IS MARKETING

What Marketing Does? Reach customers  Motivate Them To Buy  Use  AND REBUY The product 

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What Marketers Do? Reach customers  Motivate Them To Buy  Use  AND REBUY The product 

Marketers Should March To The Drums Of The Customers Picture 13

STP (Segmentation, Targeting &Positioning) Market segmentation 2. Identify bases for segmenting the market. 3. Develop segment profiles

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Target marketing 3. Develop measure of segment attractiveness 4. Select target segments.

Market positioning 5. Develop positioning (differentiation) for target segments. 6. Develop a marketing mix for each segment.

1. Market segmentation 

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Dividing a market into smaller groups of buyers distinct needs, characteristics, or behavior who might require separate products or marketing mixes

Market segmentation 

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Buyers differ in  Wants  Resources  Locations  Buying attitudes  Buying practices Through market segmentation, companies divide large, heterogeneous (different) markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs

Geographic segmentation Dividing a market into different geographical units such as nations, states, regions, counties, cities or neighborhoods  Al-wasset classifieds (maadi) 

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Demographic segmentation Dividing the market into groups based on demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race and nationality  Most popular because our needs, wants and usage rates depend on the demographics 

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Age and life cycle segmentation Dividing a market into different age and life cycle groups  Kids (corn flakes), adults, magazines (teen stuff) 

Gender segmentation Dividing a market into different groups based on gender  Clothing, cosmetics, perfumes 

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Income segmentation Dividing the market into different income groups  Cars, financial services 

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Psychographic segmentation 

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Dividing a market into different groups based on social class, lifestyle or personality characteristics

Behavioral segmentation  Dividing

a market into groups based on consumer knowledge, attitude, use, or response to a product  Occasion segmentation Dividing

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the market into groups according to occasions when buyers get the idea to buy

Behavioral segmentation (cont’d)  Benefit

sought segmentation

Dividing

the market into groups according to the different benefits that consumers seek from the product (detergent)

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Using multiple segmentation bases 

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Using multiple segmentation bases in an effort to identify smaller, better defined target groups

Requirements for effective segmentation Measurable  Accessible  Differentiable (segment is unique)  Actionable (can perform marketing mix to reach this segment) 

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STP Market segmentation 2. Identify bases for segmenting the market. 3. Develop segment profiles

Target marketing 3. Develop measure of segment attractiveness 4. Select target segments.

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Market positioning 5. Develop positioning (differentiation) for target segments. 6. Develop a marketing mix for each segment.

Target marketing 

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The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

Evaluating market segments Segment size  Growth  Segment attractiveness  Company objectives and resources  Competitors  Buying power  Supplier power 

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Selecting target market segments 

Target market A

set of buyers sharing common needs or characteristics that the company decides to serve

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Targeting Strategies

Undifferentiated Strategy One marketing mix for the whole market

Chipsy Picture 13

Concentrated (niche) Strategy One marketing mix and one segment BMW

Differentiation Strategy Two marketing mix and 2 different segment

STP Market segmentation 2. Identify bases for segmenting the market. 3. Develop segment profiles

Target marketing 3. Develop measure of segment attractiveness 4. Select target segments.

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Market positioning 5. Develop positioning (differentiation) for target segments. 6. Develop a marketing mix for each segment.

Product positioning 

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The way that product is defined by consumers on important attributes the place the product occupies in consumer’s minds relative to competing products

Perceptual Positioning Map for Automobiles Stylish, prestigious, distinctive

Volvo 850R

Mercedes 400SE Porsche 914

•

• TM3

•

TM2

• Lexus LS400 Buick Park Avenue • Jeep Grand Cherokee • Oldsmobile L35 • Acura Integra • Honda Accord • Taurus • Ford Saturn Fun, SC2 • Chrysler LHS

Staid, conservative, older

Nissan Sentra

Plymouth Voyager Dodge Caravan

sporty, fast

•

• •

Geo Metro Picture 13

•

• Honda Civic Dodge Neon• •

Kia Sephia

•

Practical, common, economical

TM1

Developing the marketing mix 

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Marketing mix: the set of controllable tactical marketing tools: product, price, place and promotion that the firm blends to produce the response it wants in the target market

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Consumer Principles of Real products World Marketing Picture 13

Principles of Real World Marketing Your Customers Aren’t Listening To You  Everybody Else Is Shouting At Your Customers  The Rest Of Your Organization thinks you are crazy BUT  You Cant execute your program without the rest of the company 

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Principles of Real World Marketing The More You Give; The More You Get  Being Good Is Never Good Enough; You Have To Be Better  Marketing Should Be The Most Creative and Most Logical Part Of Your Business  Everything Is Marketing 

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Integrated Marketing Communications (IMC) 

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The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

IMC

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Marketing communications mix - promotion mix 

The mix of  Advertising  Personal

selling  Sales promotion  Public relations  Direct Marketing  Picture 13

That the company uses

a. Advertising Any paid form of non-personal presentation and promotion of ideas, goods, or services  Advertising tools 

 Print

(newspapers, magazines)

 TV  Radio  Outdoor Picture 13

 Online

1. Setting advertising objectives A specific communication task to be accomplished with a specific target audience during a specific period of time  Objectives 

 Informative

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(new product category)  Persuading (when competition increases, comparative advertising, comparative advertising AUDI ad)  Reminding (coca cola, Pepsi)

2. Developing advertising strategy a. Creating advertising messages 

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Message execution  Slice of life: one or more “typical” people using the product in a normal setting. Samna and Oil ads)  Lifestyle: how a product fits in with a particular lifestyle. Nescafe  Fantasy: creates fantasy around the product or its use. Galaxy (girl in the big chair), 7up tropical  Musical: one or more people or cartoon characters singing about the product. (Sunsilk)

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Message execution  Technical

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expertise: shows the company’s expertise in making the product. Chipsy  Scientific evidence: presents surveys or scientific evidence that the brand is better or better liked than one or more other brands. Crest and the egg ad  Testimonial evidence or endorsement Highly believable or likeable source endorsing the product –CelebrityNancy Agram

2. Developing advertising strategy b. Selecting advertising media 

Deciding on reach, frequency  Reach:

measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time  Frequency: measure of how many times the average person in the target market is exposed to the message Picture 13

Choose Your Media Type 

Question  How

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to choose the best medium?

Answer  Whatever

Works for your campaign and reaches your target market

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• Primary Medium • Secondary Medium • Spread your budget equally on more than one medium

Profiles of major media types Medium

Print Newspaper Television Radio Print Magazine Outdoor Online

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Advantages

Limitations

Flexibility; timeliness; good local market coverage; broad acceptability; believability

Short life; poor production quality

Good mass-market coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses Good local acceptance; high geographic and demographic selectivity; low cost

High absolute cost; high clutter; less audience selectivity

High geographic and demographic selectivity; credibility and prestige; quality production; long life; good pass-along Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity High selectivity; low cost; immediacy; interactive capabilities

high cost; no guarantee of position

Audio only; low attention (“half heard”); fragmented audiences

Little audience selectivity; creative limitations Small, demographically skewed audience; low impact; audience controls exposure

Print Advertising (Newspapers, Magazines)   

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Most Advertisers budget more for print than any other media Works mainly to promote sales promotions Anatomy:  Headline  Sub headline  Copy – choose the font that serves the message  Visual  Caption  Trademark  Signature  Slogan

Exercise 

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Each Team chooses a print ad from the newspaper or magazine and analyze it

Television 

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Used When You Need To Evoke Emotions – surprise, anxiety, excitement, happiness, …

Radio Rely On Sounds – choose cool sound effect, interesting voice, catchy musical phrase, …  Choose One Strong Idea  Talk To Your Market Right Away – i.e. if you want to advertise for salon’s service; start right away with ex. :”not another bad hair day” 

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Outdoor – Billboards, Banners and Signs    

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It must be read in a hurry It is geographically specific It directs people to your business location Placing it in front of competitor location IS SMART  Design should include 2 main sections: 1Header to catch attention from far, 2essential information

Outdoor – Billboards, Banners and Signs 

Forms:  Vinyl  Hand

Painted

 Wood  Metal  Light

Boxes  Electronic Display Picture 13

Online Advertising 

Types:  Website

= company brochure  Banner Ads = billboard where you use your logo, one simple message and max. couple lines of body copy  N.B

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• Refresh Your Content Regularly • Deliver fascinating and attractive content

Other Forms of Indirect Advertising 

Point Of Purchase POP  Flags  Danglers  Roll

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ups & pop ups

Word Of Mouth  Virtual

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WOM  Face To Face

b. Sales promotion 

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Short-term incentives to encourage the purchase or sale of a product or service

Major sales promotion tools for consumers 

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Sample: a small amount of a product offered to customers for trial. (perfumes) Coupon: certificate that gives buyers a saving when they purchase a specified product Price off (cents-off deal): reduced price that is marked by the producer directly on the label or package. (10 instead of 12) Premiums: prizes, gifts consumers receive when purchasing products. (shampoo with shower gel, vodafone)

Major sales promotion tools for consumers (cont’d) 

Contests and sweepstakes  Contests:

solve questions and you win something (who would win the million)  Sweepstakes: depend on luck 

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Bonus packs: additional or extra number of items is placed in a special product package (3 with price of 2, 20%extra)

Major sales promotion tools for trade Discount: a straight reduction in price on purchases during a stated period of time  Allowances: promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way 

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c. Public relations 

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Building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image”, and handling or heading off unfavorable rumors, stories, and events It is unpaid advertising PR tools  Press

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releases  Sponsorships (Mc Donald’s and the hospital 53753)  Special events (Vodafone and the charity complex)

d. Personal selling Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships  Personal selling tools 

 Personal

presentation  Trade shows (exhibitions and fairs. Le marche) Picture 13

e. Direct marketing Direct communications with carefully targeted individual consumers-the use of telephone, mail, fax, e-mail, the internet, and other tools to communicate directly with specific consumers  Direct marketing 

 Sending Picture 13

catalogues  Telemarketing

Push strategy A promotion strategy that calls for using the sales force and trade promotion to push the product through channels.  The producer promotes the product to wholesalers, the wholesalers promote to retailers, and the retailers promote to consumers 

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Pull strategy A promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand.  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 

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Push Vs Pull strategy

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1. Affordable method 

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Setting the promotion budget at a level management thinks the company can afford

2. Percentage of sales method 

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Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of unit sales price

3. Competitive-parity method Setting the promotion budget to match competitors’ outlays  Get Data from reports such as PARC 

 Mobinil

and Vodafone  Pepsi and coca cola

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4. Objective and task method 

Developing the promotion budget by  Defining

specific objectives  Determining the tasks that must be preformed to achieve these objectives  Estimating the costs of performing these tasks  Picture 13

The sum of these costs is the proposed promotion budget