Understanding Marketing Fundamentals: Sino-British College Case Study

1. Welcome • Marketing Case Study • Sino British College MKT 213 • May / June 2018 MKT 213 Marketing Case Study

2. Part 1 Marketing is not new! • Kellogg’s Corn Flakes • Coca Cola • Levis • Marks and Spencer • AIDA MKT 213 Marketing Case Study

3. MKT 213 Marketing Case Study

4. Marketing the Essence Selling products that don’t come back to people who do ? Products what is marketed ? MKT 213 Marketing Case Study

5. Goods etc - What are Marketed? MKT 213 Marketing Case Study

6. Marketing the key difference • A BANK IS A BANK IS A BANK? • A CAR IS A CAR IS A CAR? • Every little helps • Lightening the load • JS? • Asda USP MKT 213 Marketing Case Study

7. Marketing - contact • Communication and Information • Availability MKT 213 Marketing Case Study

8. Marketing is Business • The main objective of business/organisation is to create and retain customers • Markets consist of customers • Marketing is concerned with markets • Therefore - Marketing = Business MKT 213 Marketing Case Study

9. Marketing is profit • By setting the optimum price • By satisfying customers demands MKT 213 Marketing Case Study

10. The Market The 6 O’s • Occupants • Objects • Objectives • Occasions • Organisation • Operations/ outlets MKT 213 Marketing Case Study

11. The Market- Segmentation Markets can be broken done into parts and targeted with special appeals. Segments can be described in many ways but they are based upon common needs. MKT 213 Marketing Case Study

12. The Marketing Mix • 4 Ps • Product • Price • Place • Promotion • + 3Ps • People • Process • Physical Evidence • Hard and Soft Elements MKT 213 Marketing Case Study

13. Product • Jaffa Cakes, What is the difference between McVities Tesco and Marks and Spencer’s MKT 213 Marketing Case Study

14. Pricing • Setting a price to cover the costs • Being competitive • Consistency = Price reflects Quality reflects Value MKT 213 Marketing Case Study

15. Place - getting the product to market • Use of intermediaries to put the products/services into the marketplace • Traditional routes • New routes Internet MKT 213 Marketing Case Study

16. Promotion • The Mix • Extended mix • Sponsorship • Exhibitions • Direct Marketing MKT 213 Marketing Case Study

17. People • Services Process • Services but also how easy is it for the market to buy? • Energis + Tesco MKT 213 Marketing Case Study

18. Physical Evidence • Services - making intangibles tangible! • Also Physical Environment MKT 213 Marketing Case Study

19. Product • Types of product / service • FMCG • Shopping Goods • B2B MKT 213 Marketing Case Study

20. Product • Core product • Actual Product • Augmented Product • Features and Benefits MKT 213 Marketing Case Study

21. New Products • Where do they come from? • The development process – • Why do we need them? MKT 213 Marketing Case Study

22. Pricing • Techniques • Strategies • Cost Plus - Breakeven MKT 213 Marketing Case Study

23. Competition • Perhaps the most effective influence on pricing • DIRECT • INCIRECT MKT 213 Marketing Case Study

24. Market Response • An open market exists • Stocks and shares • Commodities • Auctions - on the wwweb MKT 213 Marketing Case Study

25. Thresholds • Psychological • £399 • £1.99 • £99.95 MKT 213 Marketing Case Study

26. Price Lining • Bracketing of similar products by price bands • All items on this rack £3.99 • Easy for seller and helps buyer MKT 213 Marketing Case Study

27. Indication of Quality • Consumers’ expectations • In the absence of any other information MKT 213 Marketing Case Study

28. Loss Leaders/Diversionary • ‘Low’ (gross) profit margins on lead goods are justified • Examples • Hilti • Tesco (formerly) • Photocopiers • Computers (software & peripherals) • Also known as Cost Leading or Capturing MKT 213 Marketing Case Study

29. Bids • Tendering • Need for clear specifications • Advantage to the buyer • Cheapest bidder wins? • Examples • Channel Tunnel • TV Franchises MKT 213 Marketing Case Study

30. Penetration Pricing • Low initial price to become established • Encourage consumer trial • Intention to harden price after the initial period • But …. • THE DREADED PRICE WAR • WHO WINS? WHO LOSES? MKT 213 Marketing Case Study

31. Skim the Cream/Skimming • Reflect innovation value of the product/fad/fashion • Inherent costs not apparent to consumer • Knowledge that prices will fall • R & D costs quickly recovered • CD players • Pocket calculators MKT 213 Marketing Case Study

32. Discounts Offered • Bulk • Settlement • Loyalty • Overrider/Target • First time MKT 213 Marketing Case Study

33. Sale or Return • Goods paid for only when sold (on) • No risk of stock loss to reseller • Widely used in print media • This leads to high waste costs • Gains distribution MKT 213 Marketing Case Study

34. Seasonal/Zones/Off Peak • Match imbalances in supply and demand • Price Discrimination • Profit Maximisation MKT 213 Marketing Case Study

35. Don’t Cut Your Throat By Cutting PricesPrice = Profit! MKT 213 Marketing Case Study

36. Place • Place - the roles of the middlemen • T • A • S • C MKT 213 Marketing Case Study

37. Distribution Levels • Intensive - available everywhere usually high volume, low value impulse items • Selective - available in recognised outlets that customers will portfolio visit and need for high outlet support • Exclusive - available in restricted non competing outlets geographically with outlet not carrying any competing (directly) products. Rarity value MKT 213 Marketing Case Study

38. MKT 213 Marketing Case Study

39. Co-operative • Variety • Superstores • Franchises • Sheds • Retail Parks • Factory Outlets • Buying clubs -Matalan • Agents MKT 213 Marketing Case Study

40. Place Issues • Polarisation and alliances • New channels – Wayside stores • Changing consumer habits • Relationship Marketing • Vertical integration • Globalisation • 24/24 7/7 364/365 MKT 213 Marketing Case Study

41. Promotion - the mix • Advertising • Sales Promotion • Personal Selling • Public Relations / Publicity • Plus • Sponsorship • Exhibitions • Direct Marketing MKT 213 Marketing Case Study

42. Advertising - above the line • Cognitive • Affective • Behaviour • AIDA • Attention • Interest • Desire • Action MKT 213 Marketing Case Study

43. The power of a brand

44. The Power of a Brand A strong brand can: Create instant recognition Command a premium selling price Promote brand loyalty Provide a competitive advantage Strengthen buyer and supplier power Amplify the marketing effort ?

45. Sales Promotion • Below the line • Push • Pull • Profile • Grunt • Pulling the trigger MKT 213 Marketing Case Study

46. Personal Selling • Shopping Goods • The stages • AIDA • The roles/activities of a salesperson • Key account - Relationship Marketing MKT 213 Marketing Case Study

47. Types of Media • Broadcast versus printed • Mass versus narrow • Global vs National v local MKT 213 Marketing Case Study

48. Media Characteristics • Audience • Costs • Message • Accessibility • Responsiveness MKT 213 Marketing Case Study

49. T e l e v i s i o n • Appeals to most senses • Good creative platform • Mass vs local vs Targetted channels • Timing flexible • Good image - as seen on TV. • Intrusive medium • Certain groups have low TV exposure • Long time scales • Expensive • Response = limited MKT 213 Marketing Case Study

50. Radio • Reach • Campaign flexibility • Production lead times short • Relatively low cost • Programming defines audience • Creative opportunity • Message is transient - non permanent • Often considered as Wallpaper MKT 213 Marketing Case Study