Principles of Marketing (anamika sharma)

8/14/2019 Principles of Marketing (anamika sharma)

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The Course Objectives

LEARN PRACTICAL MARKETINGKNOWLEDGE AND PRACTICESModule 1 (Day 1)

Marketing Definition STP, Principle of Real World Mktg.

Module 2 (Day 2 & 3) Marketing Tools

From Online Marketing to Direct Marketing

Module 3 (Day 4) Marketing Program Workshop Learn How To Design a Marketing Program


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Todays Objectives

What is marketing?

STP

The Marketing Mix Principles of real world marketing

Exercise


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What is Marketing?

It is not just selling and advertising; It is the process

by which companies create value forcustomers and

build strong customer relationships in order to

capture value from customers in return.

The Whole Firm Taken From A Customer

Perspective Peter Drucker

EVERYTHING THAT TOUCHES THE CONSUMER

IS MARKETING


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What Marketing Does?

Reach customers

Motivate Them To Buy

Use AND REBUY The product


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STP (Segmentation, Targeting

&Positioning)

Market

segmentation

2. Identify bases

for segmentingthe market.

3. Develop

segment profiles

Target marketing

3. Develop measure

of segment

attractiveness

4. Select target

segments.

Market positioning

5. Develop

positioning

(differentiation) for

target segments.

6. Develop a

marketing mix for

each segment.


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1. Market segmentation

Dividing a market into smaller groups

ofbuyers distinct needs,

characteristics, or behaviorwho mightrequire separate products or

marketing mixes


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Market segmentation

Buyers differ inWantsResourcesLocations

Buying attitudesBuying practices

Through market segmentation,

companies divide large,heterogeneous(different) markets into smaller segmentsthat can be reached more efficiently andeffectively with products and services thatmatch their unique needs


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Geographic segmentation

Dividing a market into different

geographical units such as nations,

states, regions, counties, cities orneighborhoods

Al-wasset classifieds (maadi)


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Demographic segmentation

Dividing the market into groups based

on demographic variables such as age,

gender, family size, family life cycle,

income, occupation, education, religion,race and nationality

Most popular because our needs,

wants and usage rates depend on thedemographics


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Age and life cycle

segmentation

Dividing a market into different age and

life cycle groups

Kids (corn flakes), adults, magazines

(teen stuff)

Gender segmentation

Dividing a market into differentgroups based on gender

Clothing, cosmetics, perfumes


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Income segmentation

Dividing the market into different

income groups

Cars, financial services


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Psychographic

segmentation

Dividing a market into different groups

based on social class, lifestyle or

personality characteristics


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Behavioral segmentation

Dividing a market into groups

based on consumer knowledge,

attitude, use, or response to aproduct

Occasion segmentation

Dividing the market into groupsaccording to occasions when

buyers get the idea to buy


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Behavioral segmentation

(contd)

Benefit sought segmentation

Dividing the market into groups

according to the different benefitsthat consumers seek from the

product (detergent)


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Using multiple segmentation

bases

Using multiple segmentation bases in

an effort to identify smaller, better

defined target groups


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Requirements for effective

segmentation

Measurable

Accessible

Differentiable (segment is unique) Actionable (can perform marketing

mix to reach this segment)


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STP

Market

segmentation

2. Identify bases

for segmenting

the market.

3. Develop

segment profiles

Target marketing

3. Develop measure

of segment

attractiveness

4. Select target

segments.

Market positioning

5. Develop

positioning


target segments.

6. Develop a

marketing mix for

each segment.


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Target marketing

The process ofevaluating each

market segments attractiveness and

selecting one or more segments toenter


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Evaluating market segments

Segment size

Growth

Segment attractiveness Company objectives and resources

Competitors

Buying power Supplier power


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Selecting target market

segments

Target market

A set of buyers sharing common needs or

characteristics that the company decides toserve


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Targeting Strategies

Undifferentiated Strategy

One marketing mix for the

whole market

Concentrated (niche)

Strategy

One marketing mix andone segment

Differentiation Strategy

Two marketing mix and 2

different segment

Chipsy BMW


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STP

Market

segmentation

2. Identify bases

for segmenting

the market.

3. Develop

segment profiles

Target marketing

3. Develop measure

of segment

attractiveness

4. Select target

segments.

Market positioning

5. Develop

positioning


target segments.

6. Develop a

marketing mix for

each segment.


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Product positioning

The way that product is defined by

consumers on important attributes -

the place the product occupies inconsumers minds relative to

competing products


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Perceptual Positioning Map for

Automobiles

Volvo 850R

Chrysler LHS

Buick Park Avenue

Oldsmobile L35

Honda Accord

Nissan Sentra

Plymouth VoyagerDodge Caravan

Geo Metro

Kia Sephia

Dodge Neon

Saturn SC2

Porsche 914

Mercedes 400SE

Lexus LS400

Jeep Grand CherokeeAcura Integra

Ford Taurus

Honda Civic

Stylish, prestigious, distinctive

Practical, common, economical

Staid,

conservative,

older

Fun,

sporty,

fast

TM3TM2

TM1


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Developing the marketing

mix

Marketing mix: the set of controllable

tactical marketing tools: product,

price, place and promotion that thefirm blends to produce the response it

wants in the target market


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Consumer

productsPrinciples of Real

World Marketing


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Principles of Real World

Marketing

Your Customers Arent Listening To

You

Everybody Else Is Shouting At YourCustomers

The Rest Of Your Organization thinks

you are crazy BUT

You Cant execute your program

without the rest of the company


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Principles of Real World

Marketing

The More You Give; The More You Get

Being Good Is Never Good Enough;

You Have To Be Better Marketing Should Be The Most Creative

and Most Logical Part Of Your Business

Everything Is Marketing


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Integrated Marketing

Communications (IMC) The concept under which a company

carefully integrates and coordinates

its many communications channels todelivera clear, consistent, and

compelling message about the

organization and its products


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IMC


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Marketing communications mix

- promotion mix

The mix of

Advertising

Personal sellingSales promotion

Public relations

Direct Marketing That the company uses


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a. Advertising

Any paid form ofnon-personal

presentation and promotion of ideas,

goods, or services

Advertising tools

Print (newspapers, magazines)

TV

Radio

Outdoor

Online


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1. Setting advertising

objectives

A specific communication task to be

accomplished with a specific target

audience during a specific period of

time

Objectives

Informative (new product category)

Persuading (when competition

increases, comparative advertising,

comparative advertising AUDI ad)

Reminding (coca cola, Pepsi)


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2. Developing advertising strategy

a. Creating advertising messages

Message execution

Slice of life: one or more typical people

using the product in a normal setting.

Samna and Oil ads) Lifestyle: how a product fits in with a

particular lifestyle. Nescafe

Fantasy: creates fantasy around the

product or its use. Galaxy (girl in the bigchair), 7up tropical

Musical: one or more people or cartoon

characters singing about the product.

(Sunsilk)


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2 D l i d ti i t t


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2. Developing advertising strategy

b. Selecting advertising media

Deciding on reach, frequency

Reach: measure of the percentage of people in

the target market who are exposed to the adcampaign during a given period of time

Frequency: measure ofhow many times the

average person in the target market is

exposed to the message


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Choose Your Media Type

Question

How to choose the best medium?

AnswerWhatever Works for your campaign and

reaches your target market

Primary Medium Secondary Medium

Spread your budget equally on more than

one medium


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Profiles of major media

typesPrint -Newspaper

Flexibility; timeliness; good local market

coverage; broad acceptability; believabilityShort life; poor productionquality

Television Good mass-market coverage; low cost perexposure; combines sight, sound, and motion;appealing to the senses

High absolute cost; high clutter;less audience selectivity

RadioGood local acceptance; high geographic anddemographic selectivity; low cost

Audio only; low attention (halfheard); fragmented audiences

Print -Magazine

High geographic and demographic selectivity;credibility and prestige; quality production;long life; good pass-along

high cost; no guarantee ofposition

Outdoor Flexibility; high repeat exposure; low cost; lowmessage competition; good positional

selectivity

Little audience selectivity;creative limitations

Online High selectivity; low cost; immediacy;interactive capabilities

Small, demographically skewedaudience; low impact; audiencecontrols exposure

Medium AdvantagesMedium Advantages LimitationsLimitations


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Print Advertising (Newspapers,

Magazines)

Most Advertisers budget more for print than any othermedia

Works mainly to promote sales promotions Anatomy:

Headline Sub headline Copy choose the font that serves the message Visual Caption

Trademark Signature Slogan


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Exercise

Each Team chooses a print ad from the

newspaper or magazine and analyze it


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Television

Used When You Need To Evoke

Emotions surprise, anxiety,

excitement, happiness,


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Outdoor Billboards,

Banners and Signs

It must be read in a hurry

It is geographically specific

It directs people to your business location Placing it in front of competitor location IS

SMART

Design should include 2 main sections: 1-

Header to catch attention from far, 2-essential information


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Outdoor Billboards,

Banners and Signs

Forms:

Vinyl

Hand PaintedWood

Metal

Light BoxesElectronic Display


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Online Advertising

Types:

Website = company brochure

Banner Ads = billboard where you use

your logo, one simple message and

max. couple lines of body copy

N.B Refresh Your Content Regularly

Deliver fascinating and attractive content


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Other Forms of Indirect

Advertising

Point Of Purchase POP

Flags

DanglersRoll ups & pop ups

Word Of MouthVirtual WOM

Face To Face


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b. Sales promotion

Short-term incentives to encourage

the purchase or sale of a product or

service


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Major sales promotion tools for

consumers Sample: a small amount of a product

offered to customers for trial. (perfumes)

Coupon: certificate that gives buyers a

saving when they purchase a specifiedproduct

Price off (cents-off deal): reduced price

that is marked by the producer directly on

the label or package. (10 instead of 12)

Premiums: prizes, gifts consumers receive

when purchasing products. (shampoo with

shower gel, vodafone)


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consumers (contd)

Contests and sweepstakes

Contests:solve questions and you win

something (who would win the million)Sweepstakes:depend on luck

Bonus packs:additional or extra

number of items is placed in a special

product package (3 with price of 2,

20%extra)


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trade

Discount: a straight reduction in price

on purchases during a stated period

of time Allowances: promotional money paid

by manufacturers to retailers in return

for an agreement to feature the

manufacturer's products in some way


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c. Public relations

Building good relations with the companys

various publics by obtaining favorable

publicity, building up a good corporate

image, and handling or heading off

unfavorable rumors, stories, and events

It is unpaid advertising

PR tools

Press releasesSponsorships (Mc Donalds and the hospital

53753)

Special events (Vodafone and the charity

complex)


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d. Personal selling

Personal presentation by the firms

sales force for the purpose of making

sales and building customerrelationships

Personal selling tools

Personal presentation

Trade shows (exhibitions and fairs.

Le marche)


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e. Direct marketing

Direct communications with carefully

targeted individual consumers-the use

oftelephone, mail, fax, e-mail, theinternet, and other tools to

communicate directly with specific

consumers

Direct marketing

Sending catalogues

Telemarketing


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Push strategy

A promotion strategy that calls for

using the sales force and trade

promotion to push the product throughchannels.

The producer promotes the product to

wholesalers, the wholesalers promote

to retailers, and the retailers promote

to consumers


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Pull strategy

A promotion strategy that calls for

spending a lot on advertising and

consumer promotionto build upconsumer demand.

If the strategy is successful,

consumers will ask their retailers for

the product, the retailers will ask the

wholesalers, and the wholesalers will

ask the producers


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Push Vs Pull strategy


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1. Affordable method

Setting the promotion budget at a

level management thinks the

company can afford


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3. Competitive-parity method

Setting the promotion budget to match

competitors outlays

Get Data from reports such as PARCMobinil and Vodafone

Pepsi and coca cola

4 Obj ti d t k


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4. Objective and task

method

Developing the promotion budget by

Defining specific objectives

Determining the tasks that must bepreformed to achieve these objectives

Estimating the costs of performing

these tasks

The sum of these costs is the

proposed promotion budget

Principles of Marketing (anamika sharma)

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