Devoloping Marketing Mix

8/2/2019 Devoloping Marketing Mix

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Developing marketing Mix What is a marketing mix?

What is the Promotion mix?

What are communication objectives?

What are communication mixstratergies?



What is a Product?

Convenience

Shopping

Specialty Unsought

Goods

Services

Places

Organizations People, etc..

Types ofConsumer Products GENERIC term that Includes



Four Ps of Marketing

MarketingMix

TargetMarket

PricePromotion

Product Place



Elements of the MKG Mixthat compose a cohesive MKG program

Place Outlets

ChannelsCoverage

Transportation

Stock level

Promotion Advertising

Personal sellingSales promotion

Publicity

PriceList price

DiscountsAllowances

Credit items

Payment period

ProductFeatures

Brand namePackaging

Service

Warranty

Marketingmanager

Cohesive marketing mix

PromotionPlace

Price

PromotionPlace

Product



Advertising

PR

Place(Distribution)

Personal

Selling

Product

Sales

Promotion

Promotion

Place

The Promotional Mix

Advertising Strategies

4P’s

Price

Direct

MKG



Basic Communication Model

Sender(Source) Receiver(Consumer)Message

Channel

(Medium)

Feedback




What are the 4 main Communication Objectives?

I…

P…

R…

C…



Informative Advertising Inform Consumers orBuild Primary Demand

Comparison AdvertisingCompares One Brand to

Another

Persuasive AdvertisingBuild Selective Demand

Reminder AdvertisingKeeps Consumers Thinking

About a Product

Advertising ObjectiveSpecific Communication Task Accomplished with a Specific

Target Audience

During a Specific Period of Time

Setting Communication

Objectives



Changes in Advertising Objectives during the

Product Life Cycle


Defineobjectives andplan thepromotionalcampaign

Developproductawareness,stimulate genericdemand, andattractdistributors

Createproductacceptanceand brand preference if there arecompetitiveproducts

Maintain andenhance brandloyalty convertbuyers anddistributors of competitivebrands

Minimalexpenditures

just enough tophase productout

Sales

Generalpromotion

objective

Advertising

strategy

Screen

concepts,createadvertisements, and planmedia selection

primary demandadvertising to getpotentialpurchasers to try the product.trade advertisingto introduceproduct

Extensive

advertisingexpendituresemphasizingadvantages of the product andbrand

Reminder andemotionaladvertising andpromotions topromote repeatpurchases anddifferentiatebrands

Minimal

advertisingexpendituresemphasizinglow price toreduceinventory

Pre-

IntroductionIntroduction

GrowthMaturity Decline

Time



Strategy that

Calls forSpending A Loton Advertisingand ConsumerPromotion toBuild Up (Pull)ConsumerDemand.

StrategySelectedDepends

on:

Type of Product-Market &

ProductLife-Cycle

Stage

Strategy thatCalls for Usingthe Salesforceand TradePromotion to

Push theProduct Throughthe Channels.

Communication Mix Strategies



5 Eyes Marketing Strategy

Past

Present

Future

Yourself

Competitors

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Situation Analysis

S

W

OT

Things the company does well.

Things the company does not do well.

Conditions in the external environmentthat favor strengths.

Conditions in the external environmentthat do not relate to existing strengthsor favor areas of current weakness.



SWOT

Do not limit the S and W to the Product

Opportunities:

• Do not describe what you will do. EG, develop a marketdevelopment strategy based on the growing seniorpopulation

• Avoid basic opportunities: population growth, economicslow down, health consciousness, obesity rate, gaz

prices,… • Identify opportunities outside the product/consumer level

Threats: focus on specific competitors



Developing an Effective Marketing Program

Requires analyzing marketing

problems/opportunitiesThis analysis has 3 steps and is grounded inprimary and secondary marketing researchdata

Once an opportunity has been identified marketing strategy must be developed

CustomerAnalysis

CompetitiveAnalysis

Analysis ofOrganizationCapabilities

Opportunity

Identification

3 generic strategies for achievinga differential advantage overcompetitors are available:

•Product Differentiation•Overall Cost Leadership•Special Market Focus Offering ProductDifferentiation & Low Cost



BENCHMARKING = Analyzing

Competitors

Identifying thecompany’s competitors

Assessing competitor’sobjectives, strategies,strengths and weaknesses,

and reaction patterns

Selecting whichcompetitors toattack or avoid

Assessment of strengths andweaknesses of competitors.



Competitive Leadership

OperationalExcellence

Alaska Airlines/Dell

CustomerIntimacy

Ikea/VW

ProductLeadership

Intel/Sony

Companies GainLeadership Positions byDelivering Superior Valueto their CustomersThrough TheseStrategies:



Competitive Marketing

Strategies



Marketing Strategy and Tactics

A marketing strategy is a means by which a marketing

objective/goal is to be achieved, usually characterized by a

specific target market and a marketing program to reach it.

Marketing tactics are detailed day-to-day operational decisions

essential to the overall success of marketing strategies.



Strategies Lead to Tactics

Direct ourpromotion to

males, ages 25to 40 years old.

Advertise inmagazinesread by this

group ofpeople

Advertise on

televisionprograms

watched bythis group

..

PossibleTactics

Strategy

..



Strategic Roles of Most Successful New Products

Strategic Role

Defend market

share position

Establish foothold

in new market

Preempt marketsegment

Maintain position as

product innovator

Exploit technology

in new way

Capitalize ondistribution strengths

Provide a cash

generator

Use excess or

off-season capacity

Percentage of responses

0 10% 20% 30% 40% 50%

Externally

driven

Internallydriven



STP

Segmentation Targeting & Positioning

Market Targeting

Market Positioning

Market Segmentation

M k ti Diff ti ti St t



Marketing Differentiation Strategy

A Undifferentiated Marketing

BConcentrated Marketing

C Differentiated Marketing

Company Marketing Mix Market

Target 1

Target 2Target 3

Target 1Target 2Target 3

Company Marketing Mix

Company Marketing Mix 1



keting strategies



The Marketing process

CAMMISConcept

Development

Analysis ofmarketopportunity

MarketStrategyDesign

Markettesting

Implementation

Selling



Analyzing the market

opportunity

Analyzing themkt

opportunity

Understandingthe mkt

environment

Identifying target mkts

Understanding consumer

behavior

Identifying mktsegments



Environmental factors

Concept or an idea

Economicconditions Competition Technology

Demographicforces

Social andculturalforces

Political &legal forces



Market stratergy design

The next stage of CAMMIS involvesdesigning and planning the marketingmix elements which are

Product

Price

Promotion

Place and

Positioning



Market testing

Marketing mix elements once designed need to bevalidated with the target segment. Most companiesprefer to test mkt the marketing mix elements prior to

launching in the product formally in the overall mkt.

Test mktg is done in a smaller area which isrepresentative of the larger mkt in terms of presence

of the target segment, availability of the desireddistribution system and the right media.



Implementation

Once the mkt testing is conducted and any changesrequired are made, then the company goes in for thelast stage of CAMMIS- the implementation stage.

In this the marketing plan is implemented with alldepartments coordinating their activities to worktowards it.



Marketing Plan

Marketing plan is complete method of conceiving and definingall activities that are to be carried out to implement themarketing process.

In Other words it is the blue print for all the mktg activities suchas

Marketing objectives

Market segmentation

Target segmentation

Marketing mix startegies Communication mix strategies



MARKETING PLAN HELPS IN

Providing a focussed approach to all marketing activities

Helps to monitor the product performance in the market as perthe plan

Giving guidelines to other departments in the organization suchas sales, production, promotion and personnel, to coordinatetheir activities and resources for achieving the definedmarketing objectives

Marketing plans depending on the corporate requiremnts can be short term (for the period of 1 year )

Long term (more than 1 year)



Marketing objectives

Marketing plan is an instrument thru which you can achieveyour marketing objectives.

Marketing objectives of any organization are derived from theoverall corporate objectives of the organization. In Effect, alldepartments, including the marketing, plans its activities andsets its objectives in line with the corporate objectives

Business strategic planning includes

Corporate mission

Corporate objectives Corporate strategies



Fashion marketing planning

process

Mission statement- “Providing fashionable evening wear and accessories”. “Providing designchoice and value" Dressing the urban and modern women and meeting her daily needs”

Corporate objectives -are broader and include all aspects of of the company’ s operationssuch as production, personnel and safety, as well as marketing objectives.

Marketing objectives- Should be clear, written, measurable , attainable, Specific and timeoriented (Our aim is to increase sales turnover from $31.3million to $ 35.7 million in thenext financial year ,to increase the gross margin by 5.2% and to increase the share of sales

via our corporate website from 4.3% of sales turnover to 8.5% within the next six months.) Marketing audit- Periodic reviews of the marketing goals and performance are known as

marketing audits. It involves a set of questions that are asked to determine the status of thefirm in relation to its objectives, customers, competition and marketing environment(SWOT)

Marketing strategy -If the marketing objective describes what has to be achieved ,then themarketing strategy details how the objectives are to be achieved.

Marketing plan

Implementation

Evaluation & control



MKG PLAN

I. MACRO ENVIRONMENT ANALYSIS USING SWOT

• Internal Analysis: Strengths & Weaknesses• External Analysis: Opportunities & Threats

II. CUSTOMER PROFILING

Geographic, Demographic, Psychographic, Behaviour

COMPITITOR PROFILING IV. MARKETING OBJECTIVES

• The goals to be achieved through the marketing plan in such areasas customer satisfaction, sales volume target mkt or market share

V. MARKETING STRATEGIES

• Overall Strategies & STP - used to achieve the objectives

VI. IMPLEMENTATION PLAN

• 4P’s - that will be used to achieve the objectives

Devoloping Marketing Mix

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