Transcript Lecture 32- Revision 2.ppt

MGT-519
STRATEGIC MARKETING
AAMER SIDDIQI
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LECTURE 32
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REVISION
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PROMOTION
• Promotion is the method used to spread the word about the
product or service to customers,
stakeholders and the broader public.
• Promotion informs consumers about the
rest of the marketing mix. Without it,
consumers do not know about the
product, the price, or the place
• Promotion refers to raising customer awareness of a product or
brand, generating sales, and creating brand loyalty.
• 3 basic objectives of promotion. These are:
1. To present information to consumers
2. To increase demand.
3. To differentiate a product
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PROMOTIONAL MIX
• Promotional Mix includes:
Personal selling
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Prospecting and qualifying
Pre-approach.
Approach
Presentation and demonstration
Handling objections
Closing Follow-up
• Promotion
– Consumer promotions
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Point of purchase display material
In-store demonstrations, samplings and celebrity appearances
Competitions, coupons, sweepstakes and games, On-pack offers, multi-packs
Loyalty reward programs
– Sales Force Promotions
• Commissions
• Sales competitions with prizes or awards
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SALES PROMOTION ACTIVITIES (CONT’D)
• Business promotions
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Seminars and workshops
Conference presentations
Trade show displays
Telemarketing and direct mail campaigns
Newsletters
Event sponsorship
Capability documents
• Trade promotions
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Reward incentives linked to purchases or sales
Reseller staff incentives
Competitions
Corporate entertainment
Bonus stock
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PUBLIC RELATIONS
• Public relations
– 'deliberate,
– planned and
– sustained effort
 to establish and
 maintain mutual understanding between an organisation and its
public
• PR can be split into 2 forms
– Proactive
• communications designed to build understanding
• Pro-active campaigns are long-term attempts to build on core values of the organisation
– Reactive
• communications designed to counter misunderstanding.
• the result of the need to counter an event that has resulted in
negative views about the organisation
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STAKEHOLDERS
• Stakeholders are the various groups in a society which can
influence or pressure your business’s decision making and have an
impact on its marketing performance.
• Operationally, stakeholders really refer to those groups that your
business is or should be, communicating with
• These groups include:
• Clients/customers
• Staff
• Shareholders
• Strategic partners
• Media
• Government
• Local community
• Financial institutions
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KEY STEPS IN IMPLEMENTING PUBLIC RELATIONS
• The three major steps are: • Setting the objectives – what is it you want to achieve and
who do you want to reach?
• Deciding on the message and the vehicle – what is the major
thing you want to communicate
• Evaluating the results – did you achieve the desired result
• did it lead to a positive outcome?
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ADVERTISING
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Advertising is a 'paid for' communication
Mass, i.e. nontargeted
Direct, targeted.
Used to develop attitudes,
create awareness, and
transmit information
In order to gain a response from the target market.
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ADVERTISING
• Advertising is a form of communication designed to persuade
potential customers to choose your product or service over
that of a competitor
• Successful advertising involves making your products or
services positively known by that section of the public most
likely to purchase them.
• It should be a planned, consistent activity that keeps the
name of your business and the benefits of your products or
services uppermost in the mind of the consumer.
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WHY ADVERTISE
• The objective of advertising is to increase your profit by
increasing your sales. Advertising aims to:
• Make your business and product name familiar to the public
• Create goodwill and build a favourable image
• Educate and inform the public
• Offer specific products or services
• Attract customers to find out more about your product or
service
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RULES OF ADVERTISING
• There are four rules to consider when planning any advertising
activity
• Aim - What is the primary purpose of the advertisement?
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Is it to inform,
sell,
produce listings or
improve the image of business?
• Target - Who is the target?
• From which sector of the public are you trying to achieve a
response?
• For example is it male, female, adult, teenager, child, mother, father
etc.
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RULES OF ADVERTISING
• Media – Bearing the aim and target in mind, which of the
media available to you is the most suitable
• ie: TV, radio, press or Internet?
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Competitors – What are your competitors doing?
Which media channel do they use?
Are they successful?
Can you improve on their approach and beat them in
competition?
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DEVELOPING EFFECTIVE ADVERTISING
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Good advertising generally elicits the following four responses:
Attention – It catches the eye or ear and
stands out amid the clutter of competing advertisements.
Interest – It arouses interest and
delivers sufficient impact in the message or offering.
Desire – It creates a desire to learn more or crave ownership.
Action – It spurs an action
which leads to achievement of the ad’s original objective
ie: it prompts potential customers to purchase or use your
product or service.
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COMMONLY USED MEDIA
•Stationery
•Window display or office front
• Press advertising
• Radio
•Television
• Direct mail
• Outdoor
• Ambient
• Cinema
• Point of Sale
• Online
• Directory listings
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TRADE FAIRS AND EXHIBITIONS
• The purpose of trade fairs and exhibitions is to increase
awareness
• Encourage trial
• Largely through face-to-face contact of supplier and customer.
• They offer the opportunity for companies to meet with both
the trade and the consumer,
• Both to build relationships outside traditional sales meetings.
• They are heavily used with B2B marketing
• Within technology and engineering based products
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SERVICE MARKETING MIX
EXTENDED MARKETING MIX (7Ps)
• A service is not tangible the
marketing mix for a service has
three additional elements:
1. Physical Evidence
2. People
3. Process
• By adding these three aspects
to the marketing mix,
you get what is known as the “7 P’s of Marketing.”
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PHYSICAL EVIDENCE
• The environment in which the service is delivered and where
the firm and customer interact, and any tangible components
that facilitate performance or communication of the service’.
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MATERIAL PART OF SERVICE
• Physical evidence is the material part of a service.
• Strictly speaking there are no physical attributes to a service,
so a consumer tends to rely on material cues. There are many
examples of physical evidence,
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Packaging.
Internet/web pages.
Paperwork (such as invoices, tickets and despatch notes).
Brochures.
Furnishings.
Signage (such as those on aircraft and vehicles).
Uniforms.
Business cards.
The building itself (prestigious/scenic headquarters).
Mailboxes and many others . . . . . .
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EXAMPLES OF PHYSICAL EVIDENCE
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A sporting event is packed full of physical evidence.
Your tickets team's logos printed on them
Players are wearing branded kits.
The stadium itself could be impressive and have an
electrifying atmosphere.
• Some organisations depend heavily upon physical evidence as
a means of marketing communications, for example tourism
attractions and resorts (e.g. Disney World), parcel and mail
services (e.g. UPS trucks),
• and large banks and insurance companies (e.g. Lloyds of
London).
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PHYSICAL EVIDENCE
• To the customer or potential customer, the physical
environment has to feel right and be in line with their
expectations.
• There was a time when all bank branch staff were hidden
away behind glass screens, dealing with customers through a
small opening. This was inconsistent with the open and
approachable stance that the banks were trying to
develop. So slowly the banks started to move some staff
outside into the public area so they could better interact with
customers.
• The physical environment then became consistent with other
elements of the marketing mix.
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PEOPLE
• People are the most important element of any service or
experience.
• Services tend to be produced and consumed at the same
moment, and
• Aspects of the customer experience are altered to meet the
'individual needs' of the person consuming it.
• Most of us can think of a situation where the personal service
offered by individuals has made or tainted a tour, vacation or
restaurant meal.
BUYING PREFERANCES
• Some ways in which people add value to an experience, as
part of the marketing mix –
– training,
– personal selling and
– customer service
PROCESS
Process is an element of service that sees the customer experiencing
an organisation's offering
• This element of the marketing mix looks at the systems used to
deliver the service.
• Imagine you walk into Burger King and order a Whopper Meal and
you get it delivered within 2 minutes.
• What was the process that allowed you to obtain an efficient
service delivery?
• Banks that send out Credit Cards automatically when their
customers old one has expired again require an efficient process to
identify expiry dates and renewal.
THREE VIEWS ON PROCESS
• All views are understandable, but not particularly customer
focused.
• Three main views in the discussion of process within
marketing;
1. Processes is seen as a means to achieve an outcome,
– for example - to achieve a 30% market share a company implements
a marketing planning process.
2. Marketing has a number of processes that integrate
together to create an overall marketing process
– for example - telemarketing and Internet marketing can be
integrated.
3. A further view is that marketing processes are used to
control the marketing mix i.e. processes that measure the
achievement marketing objectives
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• It's best viewed as something that your customer participates
in at different points in time
• At each stage of the process, markets:
• Deliver value through all elements of the marketing mix.
– Process, physical evidence and people enhance services.
• Feedback can be taken and the mix can be altered.
• Customers are retained, and other services or products are
extended and marketed to them
• The process itself can be tailored to the needs of different
individuals, experiencing a similar service at the same time.
• Processes essentially have inputs and outputs. Marketing adds
value to each of the stages
PRODUCT MANAGEMENT
• Product management is an organizational lifecycle function
within a company dealing with the
– planning,
– forecasting, and
– production, or marketing
• Of a product(s) at all stages
of the product lifecycle
• The role may consist of
– product development and
– product marketing,
• Different (yet complementary) efforts, with the objective of
– maximizing sales revenues,
– market share, and
– profit margins.
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PRODUCT MANAGEMENT
Product management is involved in developing an understanding of
the market, leading to STP, which leads to branding and from those
to the marketing mix, in particular to product design and
development. In essence Product management IS marketing in
marketing organisations
• Product management is a strategic role
• Product managers bring a powerful combination of skills: product
and technology expertise combined with market and domain
knowledge as well as business savvy.
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PRODUCT MANAGEMENT
• Marketing people know how to communicate; Product
managers know what to communicate
• Sales people know what one customer wants to buy; Product
managers must determine if the deal represents a single
customer or a market full of customers.
• Developers know what can be built; product managers know
whether it should be built.
• Product management is a strategic role focused on what
Products and markets we can serve in the years to come.
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MARKETING COMMUNICATIONS OR MARCOM OR
INTEGRATED MARKETING COMMUNICATIONS (IMC)
• These are messages and related media used to communicate
with a market
• They are messages from companies to the customers about
– Products
– Brands or
– The company itself
• All marketing communication activity is a form of promotion
• In one way or another it attempts to promote the interest of
the brand, product range and/or company.
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THE MARKETING COMMUNICATIONS MIX
• Promotion describes the communications activities of
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advertising
personal selling
sales promotion and
publicity/public relations.
• Advertising is a non-personal form of mass communication, paid
for by an identified sponsor.
• Personal selling involves a seller attempting to persuade a
potential buyer to make a purchase.
• Sales promotion encompasses short-term activities
• Publicity/public relations is a non-personal, not paid for
communication usually in the form of journalistic or editorial
cover.
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MARCOM
• The marketing communications mix is made up of personal
selling, a range of conventional advertising media and a range
of non-media communication tools.
• The conventional media tools, which involve ‘renting’ space
on television, newspapers, posters, radio etc., are referred to
as ‘above-the-line’ promotional techniques.
• Other marketing communications techniques, such as sales
promotion, sponsorship and exhibitions do not involve the
commissioning of space or air-time in or on conventional
media.
• These techniques are referred to as below the line
techniques. Marketing effectiveness depends significantly on
communications effectiveness.
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MARCOM
• The market is activated through information flows.
• The way a potential buyer perceives the seller’s market
offering is heavily influenced by the amount and kind of
information he or she has about the product offering, and the
reaction to that information.
• Marketing relies heavily upon information flows between the
seller and the prospective buyer.
• To many people marketing communications, such as television
advertising, direct mail and poster advertising is marketing.
• This is because marketing communications is certainly the
most highly visible aspect of marketing activity and it impacts
on everyday on life.
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MARCOM
• Marketing communications, whether above or below the line
activity, is collectively just one of the ‘4Ps’ of the marketing
mix.
• However, it is a very important part. No matter how good a
firm’s product or service offering is, the benefits to the
consumer need to be communicated effectively.
• Marketing communications, in the form of above and below
the line promotion, lies at the very centre of any marketing
plan.
• Within the context of a general introduction to marketing
theory it is not possible to cover the subject of Marketing
Communications in the depth and breadth its role in modern
business demands.
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EXPANDING MARKETING’S TRADITIONAL
BOUNDARIES
• Non-traditional marketing/Alternative Marketing/OffStreet Marketing. The major categories are as follows;
• Ambient marketing
• Astroturfing or Astroturf marketing
• Buzz Marketing
• Cause marketing or cause-related marketing
• Event marketing
• Experiential marketing
• Guerrilla Marketing
• Grass Roots
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NON-TRADITIONAL MARKETING
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Organisation marketing
Person marketing
Place marketing
Presence Marketing
Social Marketing
Social media Marketing
Sports Marketing
Tissue Pack marketing
Undercover Marketing
Viral Marketing
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THANKYOU
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