Marketing Tools

1. Marketing Tools IP Program SUSTAIN ACTIVE_16.05.2014 Dr. YvonneBrodrechtova

2. Definition ofmarketing Marketing … is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.  … is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Source: Kotler 2003; American Marketing Association, 2014

3. Definition ofgreenmarketing Green marketing ? … consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment. … is the marketing of products that are presumed to be environmentally safe. Source: Polonsky, 1994; American Marketing Association, 2008

4. Fivereasonsforincreaseduseofgreenmarketing Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives Organizations believe they have a moral obligation to be more socially responsible Governmental bodies are forcing firms to become more responsible Competitors' environmental activities pressure firms to change their environmental marketing activities Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior

5. Example: Forestproductsindustries

6. The coreofmarketingis (Green) marketing mix • The marketer‘s task is to build a marketing plan to achieve company‘s desired objectives. • The marketing plan consists of numerous decisions on the mix of marketing tools to use. • The marketing mix is the set of (green) marketing tools the firm uses to pursue its marketing objectives in the target market.

7. The marketing mix (a setofmarketingtools) • quality, brand name, design • packaging • product varietyand features • services, warranties, returns • list price • discounts, allowances • payment period • credit terms • advertising, sales promotion • public relations • sales force • direct marketing • channels • coverage • assortments • locations • inventory • transport Source: Kotler 2003

8. „The best way to get and keep customers is to constantly figure out how to give them more for less.“ PRODUCT CONCEPT I.: The productcontinuum Total product Web-based ordering Special packaging Proprietary grading Core product € € € Source: Juslin and Hansen, 2011

9. „Watch the product life cycle, but more importantly, watch the market life cycle.“ PRODUCT CONCEPT II.: Productlife-cycle OSB Softwood lumber Plywood SALES Wooden I-joists WPC PROFITS 0 Introduction Growth Maturity Decline Source: Juslin and Hansen, 2003

10. „Who should ultimately design the product? The customer, of course.“ GREEN PRODUCT CONCEPT • Product • Product life cycle • Product quality • Product differentiation • Product branding

11. DISCUSSION • WHAT DECISION CONCERNING YOUR (GREEN) PRODUCT IS MOST IMPORTANT IN YOUR MARKETING (BUSINESS) PLAN? • concept of product , • quality, • brand name, • design, • packaging, • product variety and features, • services, • warranties, • returns.

12. PRICE I. „Sell value, not price.“ Missed opportunities High Price paid Medium Price= Value Low Unharvested value Low Medium High Value received Source: Kotler, 2003

13. „The best respond varies with the situation.“ PRICE II. The firm has to consider many factors in setting its pricing policy: • Selecting the pricing objective • Determining demand • Estimating costs • Analyzing competitors’ costs, prices, and offers • Selecting a pricing method • Selecting the final price • Adapting the price • Initiating and responding to price changes

14. DISCUSSION • WHAT (GREEN) PRICE ADAPTATIONS SHOUD YOU INCLUDE IN YOUR MARKETING /BUSINESS PLAN? • geographical pricing, • price discounts, • price allowances, • discriminatory pricing, • promotional pricing.

15. „Integrated marketing communications is a way of looking at the whole marketing process from the viewpoint of the customer.“ PROMOTION I. The marketing communication mix consists of: • Advertising • Sales promotion • Public relations and publicity • Personal selling • Direct and interactive marketing

16. „The best advertizing is done by satisfied customers.“ PROMOTION II. Identify target audience Determine objectives Design message The communication process Select channels Establish budget Decide on media mix Measure results Manage integrated marketing com. Source: Kotler, 2003

17. DISCUSSION • WHICH (GREEN) MARKETING COMMUNICATION MIX ARE YOU CONSIDERING IN YOUR MARKETING (BUSINESS) PLAN? • advertising, • sales promotion, • public relations, • sales force, • direct and interactive marketing.

18. „Establish channels for different target markets and aim for efficiency, control, and adaptability“ PLACE I. The marketing channel is a link between the producer and consumer to fulfill its functions (forest products industries): • Delivering products • Gathering and transferring information • Developing and disseminating communications • Placing orders with manufactures • Prompting delivery • Etc.

19. „Successful go-to-market strategies require integrating retailers, wholesalers, and logistical organizations.“ PLACE II.: marketingchannel alternatives Producer Foreign agent Domestic agent Consumer Producer Sales office Importer Retailer Consumer Producer Sales office Ind. end-user Consumer Producer Domestic agent Importer Ind. end-user Consumer Producer Sales company Ind. end-user Consumer Producer Consumer Adapted from: Juslin and Hansen, 2003

20. DISCUSSION • HAVE YOU ALREADY THOUGHT ABOUT YOUR (GREEN) MARKETING CHANNEL?

21. Thankyou! Dr. Yvonne Brodrechtova Technical University in Zvolen College of Forestry T. G. Masaryka 24 SK-96053 Zvolen Tel.: +421-45-5206022 Fax: +421-45-5332654 E-mail: brodrechtova@vsld.tuzvo.sk