IP Program SUSTAIN ACTIVE_16.05.2014Dr. Yvonne Brodrechtova

Marketing Tools

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.

Definition of marketing

Source: Kotler 2003; American Marketing Association, 2014

Green marketing

Definition of 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

Five reasons for increased use of green marketing

1. Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives

2. Organizations believe they have a moral obligation to be more socially responsible

3. Governmental bodies are forcing firms to become more responsible

4. Competitors' environmental activities pressure firms to change their environmental marketing activities

5. Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior

Example: Forest products industries

(Green) marketing can help to ensure new opportunities for the

forestry sector

Customer-oriented industry (adaptation is necessary for

survival)

Production-oriented industry (very

traditional, slow to respond)

(Green) marketing mix

1. The marketer‘s task is to build a marketing plan to achieve company‘s desired objectives.

2. The marketing plan consists of numerous decisions on the mix of marketing tools to use.

3. The marketing mix is the set of (green) marketing tools the firm uses to pursue its marketing objectives in the target market.

The core of marketing is

The marketing mix (a set of marketing tools)

Source: Kotler 2003

ADDITIONAL MARKETING

TOOLS

BASIC MARKETING

TOOLS

PLACE

PROMOTION

PRICE

PRODUCT

PHYSICAL EVIDENCE

PROCESS

PEOPLE

• quality, brand name, design

• packaging

• product variety and 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

PRODUCT CONCEPT I.: The product continuum

„The best way to get and keep customers is to constantly figure out how to give them more for less.“

€ € €

Core product

Proprietary grading

Special packaging

Web-based ordering

Total product

Source: Juslin and Hansen, 2011

PRODUCT CONCEPT II.: Product life-cycle

„Watch the product life cycle, but more importantly, watch the market life cycle.“

Source: Juslin and Hansen, 2003

Introduction Growth Maturity Decline

PROFITS

SALES

WPC

Wooden I-joists

OSB Softwood lumber

Plywood

0

GREEN PRODUCT CONCEPT„Who should ultimately design the product? The customer, of course.“

• Product

• Product life cycle

• Product quality

• Product differentiation

• Product branding

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.

PRICE I. „Sell value, not price.“

Pri

ce p

aid

Value received

Low Medium High

Lo

wM

ed

ium

Hig

h Missed opportunities

Price= Value

Unharvested value

Source: Kotler, 2003

PRICE II.

The firm has to consider many factors in setting its pricing policy:

1. Selecting the pricing objective

2. Determining demand

3. Estimating costs

4. Analyzing competitors’ costs, prices, and offers

5. Selecting a pricing method

6. Selecting the final price

7. Adapting the price

8. Initiating and responding to price changes

„The best respond varies with the situation.“

DISCUSSION

WHAT (GREEN) PRICE ADAPTATIONS SHOUD YOU INCLUDE IN YOUR MARKETING /BUSINESS PLAN?

• geographical pricing,

• price discounts,

• price allowances,

• discriminatory pricing,

• promotional pricing.

PROMOTION I.

The marketing communication mix consists of: Advertising Sales promotion Public relations and publicity Personal selling Direct and interactive marketing

„Integrated marketing communications is a way of looking at the whole marketing process from the viewpoint of the customer.“

PROMOTION II.

„The best advertizing is done by satisfied customers.“

Identify target audience

Source: Kotler, 2003

Measure results

Design message

Select channels

Establish budget

Decide on media mix

Determine objectives

Manage integrated

marketing com.

The comm

unication

process

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.

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.

„Establish channels for different target markets and aim for efficiency, control, and adaptability“

PLACE II.: marketing channel alternatives

„Successful go-to-market strategies require integrating retailers, wholesalers, and logistical organizations.“

Adapted from: Juslin and Hansen, 2003

Producer

Producer

Producer

Producer

Producer

Domestic agent

Foreign agent

Sales office

Sales office

Importer

Sales company

Importer

Domestic agent

Retailer

Ind. end-user

Ind. end-user

Ind. end-user

Producer

Consumer

Consumer

Consumer

Consumer

Consumer

Consumer

DISCUSSION

HAVE YOU ALREADY THOUGHT ABOUT YOUR (GREEN) MARKETING CHANNEL?

Thank you!

Dr. Yvonne BrodrechtovaTechnical University in Zvolen

College of ForestryT. G. Masaryka 24SK-96053 Zvolen

Tel.: +421-45-5206022Fax: +421-45-5332654

E-mail: brodrechtova@vsld.tuzvo.sk