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Marketing. Social scientists tell us ‘each person has a network of 8 to 12 people in their close network of friends, family, and associates. A person's broader network may consist of scores, hundreds, or thousands of people, depending upon her position in society. ‘.
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Marketing Social scientists tell us ‘each person has a network of 8 to 12 people in their close network of friends, family, and associates. A person's broader network may consist of scores, hundreds, or thousands of people, depending upon her position in society. ‘
What is marketing then ? • The essence of marketing: • Marketing is about meeting the needs and wants of customers; • Marketing is a business-wide function – it is not something that operates alone from other business activities; • Marketing is about understanding customers and finding ways to provide products or services which customers demand
If we look at stages of adopting a new product: • Research suggests that customers go through five stages in the process of adopting a new product or service: these are summarised below: • (1) Awareness - the customer becomes aware of the new product, but lacks information about it • (2) Interest - the customer seeks information about the new product • (3) Evaluation - the customer considers whether trying the new product makes sense • (4) Trial - the customer tries the new product on a limited or small scale to assess the value of the product • (5) Adoption - the customer decides to make full and/or regular use of the new product
What is the role of marketing in the process of new-product adoption? • A marketing team looking to successfully introduce a new product or service should think about • how to help customers move through the five stages • For example, what kind of advertising or other promotional campaign can be employed to build customer awareness? If customers show a desire to trial or sample a product, how can this be arranged effectively?
Marketing • To convince people to try out or keep using particular products or services • 2 important principles • All company policies and activities should be directed towards satisfying customer needs • Profitable sales volume is more important than max sales volume • Best used by : • market research - Determine needs of customers by • market strategy - Analyse competitive advantage in order to develop a strategy • target marketing - Select specific markets to serve • marketing mix - Determine how to satisfy customer needs by identifying
Create a Marketing Strategy • customer needs and the business environment in which you operate are constantly changing. • marketing strategy will need to look at what changes are taking place, and at what opportunities and threats are emerging.
Ask the questions : • What are customers looking for? • What are their needs? • Which customers are the most profitable? • How will I target the right potential customers? • Are there groups that I can target effectively? • What's the best way of communicating with them? • How can I best promote my products? • Options might include advertising, direct marketing, exhibiting at trade fairs, PR or marketing on the web.
Focus on the market Your marketing strategy should: • analyse your understanding of the different needs of different groups of customers • focus on a market niche where you can be the best • Possibly aim to put most of your efforts into the 20 per cent of customers who provide 80 per cent of profits You need to encapsulate All this in a Marketing plan >
Main components of a Marketing Plan • THE MARKETING PLAN • Identify your target audience . • Set your objectives and strategy • Decide upon the marketing mix • Agree a budget • Action planning • Measure your success
Main components of a Marketing Plan 1. Identify your target audience - if you identify multiple targets, rank them in order of importance so that you can allocate resources accordingly. Profile each target group and understand their requirements and expectations so that you can pitch your costs and benefits at the correct level.
Ten things you need to know about your customers • Who they are - If you sell directly to individuals, find out your customers' gender, age, marital status and occupation. If you sell to other businesses, find out what size and kind of business they are. For example, small private company or big multinational. • What they do - If you sell directly to individuals, it's worth knowing their occupations and interests. If you sell to other businesses, it helps to have an understanding of what their business is trying to achieve. • Why they buy - If you know why customers buy a product or service, it's easier to match their needs to the benefits your business can offer. • When they buy - If you approach a customer just at the time they want to buy, you will massively increase your chances of success. • How they buy - For example, some people prefer to buy from a website, while others prefer a face-to-face meeting.
Ten things you need to know about your customers • How much money they have - You'll be more successful if you can match what you're offering to what you know your customer can afford. • What makes them feel good about buying - If you know what makes them tick, you can serve them in the way they prefer. • What they expect of you - For example, if your customers expect reliable delivery and you don't disappoint them, you stand to gain repeat business. • What they think about you - If your customers enjoy dealing with you, they're likely to buy more. And you can only tackle problems that customers have if you know what they are. • What they think about your competitors - If you know how your customers view your competition, you stand a much better chance of staying ahead of your rivals.
Main components of a Marketing Plan 2. Set your objectives - possible objectives could include awareness raising (of your business or disseminating information about your products or services), focusing on sales (building Internet sales of a product or increasing the frequency of sales from regular customers), or internal efficiency (decreasing marketing costs, reducing order-taking and fulfilment costs, or improving customer retention rates).
Your marketing objectives • based on understanding your strengths and weaknesses, and the business environment you operate in. They should also be linked to your overall business strategy. • For example, suppose your business objectives include increasing sales by 10 per cent over the next year. Your marketing objectives might include targeting a promising new market segment to help achieve this growth. • Other marketing objectives can be : • Drive market growth. • Increase market share. • Create sustainable competitive advantages. • Improve market adoption. • Increase demand. • Manage product life cycles • Establish long-term customer loyalty. • Improve brand equity. • Execute profitable marketing campaigns
Objectives should always be SMART though: • Specific. For example, you might set an objective of getting ten new customers. • Measurable. Whatever your objective is, you need to be able to check whether you have reached it or not. • Achievable/ actionable. While you should set targets that stretch you, there is no point in being too ambitious. Also what if they are not met what is the resultant action ? • Realistic. You must have the resources you need to achieve the objective. The key resources are usually people and money. • Time-bound. You should set a deadline for achieving the objective. For example, you might aim to get ten new customers within the next 12 months.
Main components of a Marketing Plan 3. Decide upon the marketing mix – look at this in next few slides 4. Agree a budget - careful budgeting allows you to prevent costs spiralling out of control. By identifying the returns you expect to make from your investment in e-marketing activities you can compare these with the costs in order to develop a cost/benefit analysis.
Variables controlled to best satisfy customers in target market Marketing Mix (4p’s) What your product offers that your customers value, and how you should change your product to meet customer needs . How and where you sell. This may include using different distribution channels. For example, you might sell over the Internet or sell through retailers Place Product Target Market Price Promotion For example, you might aim simply to match the competition, or charge a premium price for a quality product and service. You might have to choose either to make relatively few high margin sales, or sell more but with lower unit profits How you reach your customers and potential customers. For example, you might use advertising, PR, direct mail, marketing on the web, and personal selling .
If you sell a service, you can extend this to 7 Ps: • People. For example, you need to ensure that your employees have the right training. • Processes. The right processes will ensure that you offer a consistent service that suits your customers. • Physical evidence. The appearance of your people and premises can affect how customers see your service. Even the quality of paperwork, such as invoices, makes a difference.
Main components of a Marketing Plan 5. Action planning - identify the tactics for implementing the selected marketing activities. The plan should also cover internet and non-internet marketing activities that are being undertaken. Some examples :
Activities of marketing : Campaigns Campaigns • Different strategies are explored based on the customer’s perceived value, buying process, priorities and influencers; and are based on sustainable competitive advantages that create barriers of entry. • The campaigns are composed by a set of programs designed to increase sales, create demand and influence customers. These programs may be targeted to the sales force as incentives, to customers as promotions and to the industry as contributions. • Incentives - Targeted to the sales force that may include, incremental compensation, awards and special recognition. • Promotions - Targeted to customers that may include, discounts, additional services, bundles and preferable commercial conditions. • Contributions -Targeted to the industry, primarily to the forums and standard bodies, and are developed through a market alliance.
Activities of marketing : Sales tools • Sales Tools which may include: • Seminars • On-site presentations • Business case • Case studies • White papers • Demonstrations • Field trials • Product Approvals • Events including: • Seminars • Trade shows • Speaking engagements • On-site presentations • Webinars
Activities of marketing : Web • Web site • Search engines • Referrals and collaboration • Email • Advertising • etc
Main components of a Marketing Plan 6. Measure your success - build in feedback mechanisms and regular reviews to enable you to assess the success of your marketing activities, particularly for e-marketing as e-commerce is such a dynamic and fast-changing area.
When setting Business Strategy • Business strategy including: • what your business is about (your business mission) • your key business objectives • your broad strategy for achieving those objectives • Carry out an External and internal analysis for your marketing plan • A PEST analysis helps you to identify the main opportunities and threats in your market: • Political and legal changes such as new regulations • Economic factors such as interest rates, exchange rates and consumer confidence • Social factors such as changing attitudes and lifestyles, and the ageing population • Technological factors such as new materials and growing use of the Internet
Carry out a S.W.O.T • A SWOT analysis combines the external and internal analysis to summarise your Strengths, Weaknesses, Opportunities and Threats. You need to look for opportunities that play to your strengths. You also need to decide what to do about threats to your business and how you can overcome important weaknesses • For example, your SWOT analysis might help you identify the most promising customers to target. You might decide to look at ways of using the Internet to reach customers. And you might start to investigate ways of raising additional investment to overcome your financial weakness
How do we get all the market info ? … • …. Well through market research ….
Market research and market reports • Market research helps you to gain this vital knowledge. • You can build a picture of general trends using published market information - from free government statistics and data to paid-for market reports from commercial providers. Your own contacts and sales records can also be a great resource. • You can add to your knowledge by using field research - from surveys and discussions to product tests - to investigate customers' attitudes and examine questions specific to your business.
For business customers, you'll want to know how big their businesses are, what sectors they're in, and who makes the decision to buy your product or service. • If you're targeting individual consumers, it may be useful to know such things as their gender, age, occupation, income, lifestyle, attitudes or social class • Once you've identified the information you need, you can start to draw it together. Initially it's worth looking at information that's already been published, eg market reports, official statistics, trade publications etc.
Basic Field search • You'll probably need to carry out some of your own field research - talking, observing or carrying out product tests with customers and potential customers. This can help you to: • test customers' reactions to a new product, and adapt it if necessary • investigate attitudes of customers and potential customers • find information specific to your business or a local market, rather than the market as a whole • Field research can be quantitative or qualitative: • Quantitative research provides statistical information - for example, how many potential customers there are and what their average incomes are. • Qualitative research examines people's feelings and attitudes towards your product or service, and what motivates them.
