Think Marketing !

1. Think Marketing ! Produced by www.studyMarketing.org

2. Contents • Marketing Mix and Key Marketing Activities • Developing Market Segmentation • Product Planning and Development • Promotion Mix : Advertising, Publicity, Personal Selling and Sales Promotion • Distribution Planning and Pricing Strategy

3. Marketing Mix and Market Segmentation

4. Marketing Credo There is only one valid definition of business purpose : to create a customer Peter Drucker

5. Marketing Mix Product Price Target Market Place Promotion

6. Key Marketing Activities Consumer Analysis Distribution Planning Product Planning Promotion Planning Price Planning

7. Key Marketing Activities Examination and evaluation of consumer characteristics, needs, and purchase processes Consumer Analysis Development and maintenance of products, product assortments, product positions, brands, packaging, options, and deletion of old products Product Planning Outlines price ranges and levels, pricing techniques purchase terms, price adjustments, and the use of price as an active or passive factor Price Planning

8. Key Marketing Activities Establishment of channel relations, physical distribution, inventory management, warehousing, transportation, allocation of goods, and wholesaling Distribution Planning Combination of advertising, publicity, personal selling, and sales promotion to drive sales revenue Promotion Planning

9. Product/Market Matrix Existing Products New Products Market Penetration Product Development Existing Markets Market Development Diversification New Markets

10. Product/Market Matrix • The firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share • Effective when the market is growing or not yet saturated Market Penetration • The firm seeks growth by targeting its existing products to new market segments • Effective when a local or regional business looks to wider its market, new market segments are emerging due to changes in consumer life-style/demographics, and innovative uses are discovered for a mature product Market Development

11. Product/Market Matrix • The firms develops new products targeted to its existing market segments • Effective when the firm has a core of strong brands Product Development • The firm seeks growth by targeting its existing products to new market segments • Diversification is utilized so that the firm does not become overly depend­ent on one product line Diversification

12. Market Segmentation The division of a market into different homogeneous groups of consumers Market Segment • Should be: • measurable • accessible by communication and distribution channels • different in its response to a marketing mix • durable (not changing too quickly) • substantial enough to be profitable

13. Types of Market Segmentation Based on regional variables such as region, climate, population density, and population growth rate. Geographic Based on variables such as age, gender, ethnicity, education, occupation, income, and family status Demographic

14. Types of Market Segmentation Based on variables such as values, attitudes, and lifestyle Psychographic Based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought Behavioral

15. Step in Planning A Segmentation Strategy Determining characteristics and needs of consumers for the product category of the company Developing consumer group profiles Analyzing consumer similarities and differences Establishing an appropriate marketing plan Selecting consumer segment (s) Positioning company’s offering in relation to competition.

16. Product Planning and Development

17. Products : Types of Goods Convenience Goods Types of Goods Shopping Goods Specialty Goods

18. Convenience Goods • Those purchased with a minimum of effort, because the buyer has knowledge of product characteristics prior to shopping • The consumer does not want to search for additional information (because the item has been bought before) and will accept a substitute rather than have to frequent more than one store Convenience Goods

19. Convenience Goods • Staples are low-priced items that are routinely purchased on a regular basis, such as detergent, milk, and cereal • Impulse goods are items that the consumer does not plan to buy on a specific trip to a store, such as candy, a magazine, and ice cream • Emergency goods are items purchased out of urgent need, such as an umbrella during a rainstorm, a tire to replace a flat, or aspirin for a headache Convenience Goods

20. Shopping Goods • Those for which consumers lack sufficient information about product alternatives and their attributes, and therefore must acquire further knowledge in order to make a purchase decision Shopping Goods

21. Shopping Goods • For attribute-based shopping goods, consumers get information about and then evaluate product features, warranty, performance, options, and other factors. The goods with the best combination of attributes is purchased. Sony electronics and Calvin Klein clothes are marketed as attribute-based shopping goods • For price-based shopping goods, consumers judge product attributes to be similar and look around for the least expensive item/store Shopping Goods

22. Specialty Goods • Those to which consumers are brand loyal. • They are fully aware of these products and their attributes prior to making a purchase decision. • They are willing to make a significant purchase effort to acquire the brand desired and will pay a higher price than competitive products, if necessary. • For specialty goods, consumers will not make purchases if their brand is not available. Substitutes are not acceptable. Specialty Goods

23. Services Rented- goods Service Type of Services Owned-goods service Non-goods

24. Services Rented- goods Service Involves the leasing of a good for a specified period of time. Examples include car, hotel room, apartment, and tuxedo rentals Involves an alteration or repair of a good owned by the consumer. Examples include repair services (such as automobile, watch, and plumbing), lawn care, car wash, haircut, and dry cleaning Owned-goods service Provides personal service on the pan of the seller; it does not involve a goods. Examples include accounting, legal, and consulting services Non-goods

25. Characteristics of Services • The intangible nature of many services makes the consumer's choice more diffi­cult than with goods • The producer and his or her services are often inseparable • The perishability of services prevents storage and increases risks • Service quality may be variable

26. Product Life Cycle Growth Maturity Decline Introduction

27. Product Life Cycle

28. Product Life Cycle

29. New Product Planning Product Screening Concept Testing Business Analysis Idea Generation Product Development Commercial-ization Test Marketing

30. New Product Planning • A continuous, systematic search for new product opportunities • It involves delineating sources of new ideas and methods for generating them Idea Generation • After the firm identifies potential products, it must screen them • Many companies use a new-product screening checklist for preliminary evaluation Product Screening

31. Screening Checklist

32. New Product Planning • Concept testing presents the consumer with a proposed product and measures attitudes and intentions at this early stage of development • Concept testing is a quick and inexpensive way of measuring consumer enthusiasm Concept Testing • Business analysis for the remaining product concepts is much more detailed than product screening • Because the next step is expensive and time-consuming product development, critical use of business analysis is essential to eliminate marginal items Business Analysis

33. Business Analysis Variables

34. New Product Planning • Product development converts a product idea into a physical form and identifies a basic marketing strategy • It involves product construction, packaging, branding, product positioning, and attitude and usage testing. Product Development • Test marketing involves placing a product for sale in one or more selected areas and observing its actual performance under the proposed marketing plan. • The purpose is to evaluate the product and pretest marketing efforts in a real setting prior to a full-scale introduction Test Marketing

35. New Product Planning • After testing is completed, the firm is ready to introduce the product to its full target market. This is commercialization and corresponds to the introductory stage of the product life cycle • Commercialization involves implementing a total marketing plan and full production Commercial-ization

36. Promotion Mix : Advertising, Publicity, Personal Selling and Sales Promotion

37. Promotion Mix Publicity Advertising Target Market Sales Promotion Personal Selling

38. Promotion Mix

39. Four Key Steps to Advertise Determine message content and devise an ad Specify the location of an ad (media placement) Choose how many variations of a basic message to utilize Outline a promotion schedule

40. Things to Consider in Advertising Wasteis the portion of an audience that is not in a firm's target market. Because media appeal to mass audiences, waste is a significant factor in advertising. Waste Reach refers to the number of viewers or readers in the audience Reach

41. Things to Consider in Advertising Frequency is how often a medium can be used. It is greatest for newspapers, radio, and television, where ads may appear daily and advertising strategy may be easily changed Frequency Message permanence refers to the number of exposures one advertisement gener­ates and how long it remains with the audience Message permanence

42. Things to Consider in Advertising Persuasive impactis the ability of a medium to stimulate consumers. Television often has the highest persuasive impact because it is able to combine audio, video, color, animation, and other appeals. Persuasive impact Clutter involves the number of ads that are contained in a single program, issue, etc. of a medium. Clutter is low when a limited number of ads is presented and high when many ads are presented. Clutter

43. Publicity : Poor and Good Response

44. Developing a Publicity Plan Outlining types of publicity Setting objectives Creating publicity messages Selecting media Timing publicity messages

45. Publicity Type

46. Specific Personal Selling Objectives

47. Personal Selling Process Customer Wants Prospecting (blind, lead) Approach Answering Questions (questions and objections) Sales Presentation Follow up (satisfaction, referrals, repurchase) Close

48. Types of Sales Promotion

49. Types of Sales Promotion

50. Sales Promotion Advantages • It helps attract customer traffic and maintain brand or store loyalty • Quick results can be achieved • Some forms of sales promotion (calendars, t-shirts. Pens, etc) provide value to the consumer and are retained by them; and these forms can provide a reminder function • Impulse purchases can be increased through in-store displays