d2531 marketing-toolbox en ppt2007-2010
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Marketing ToolboxSubtitle, Autor or Date
BasicsDefinitions / Explanations
Marketing OrientationOrientation in companies which strongly influenced the development of marketing
Technological Orientation (innovation, perfectionism)
Employee Orientation (satisfaction, qualification)
Efficiency Orientation (optimization, cost reduction)
Social Orientation (environment, public, image)
Marketing Orientation (market share, competitive advantage)
Financial Orientation (result, revenue, profitability, liquidity)
Quality Orientation (improvement, ISO-certification, quality price)
Customer Orientation (customer satisfaction, customer loyalty)
Marketing TriangleCompany, employees and customer
Company
interactive marketingCustomerEmployee
external marketing in
tern
al m
arke
ting
MarketingTriangle
Marketing - Simple ModelModel of a simplified marketing system and connection between provider and market
Provider of the product or service
ProviderOverall market
of customers and interested parties
MarketDelivery of Product / service
Transaction
Payments
Feedback to provider / information
Communication to Market / Information
Marketing - PerspectivesDifferentiation of 3 perspectives: The entrepreneurial approach (philosophy), instrumentation (technology) and management concept
Marketing
Philosophy
Orientation of the marketing to the most optimal satisfaction of
all customer requirements
Management
Orientation of the marketing to the most optimal
process development, analysis, planning,
steering and controlling of all
marketing activities
Technology
Orientation of the marketing to the most optimal
effect of marketing instruments
Development Phases of MarketingDevelopment phases in the last 100 years
Customer / individual orientation
Market and competition orientation
Sales and distribution orientation
Production orientation
market oriented company management (marketing management)
customer relationship management (CRM)
marketing implementation
marketing mix
product policy
price policy
communication policy
distribution policy
mix extension
marketing implementation
marketing mix
product policy
price policy
communication policy
distribution policy
marketing mix
product policy
price policy
communication policy
distribution policy
advertisement
salessales
since 1990approx. 1980 - 1990 approx. 1950 - 1980approx. 1920 - 19501900 - 1920
Steps of development of Marketing
Development of Marketing
2020 2021 2022 2023 2024 2025 2026
Product orientation Pure production due to popular demand (eg postwar period)
Sales orientation Change from the Productionto distribution
Market orientationSpecialization on individual needs and marketsegmentation
Competition orientation Emphasis on uniqueselling points (USP)
Environment orientationResponse to environmental, political, technological or societal changes
Dialog orientation Interactive design of communication through the internet, e-mails
Network orientationWeb 2.0, social networks,Word of Mouth
Marketing PyramidPyramid with (higher-ranked) marketing objectives on the top
Marketing instruments
Product- andprogram policy
Price andcondition policy
Communication policy
Distributionpolicy
Marketing strategies
Marketingobjectives
Overview of some marketing tools
Marketing - Classical vs. Alternative Marketing
MARKETING
Classical advertisement
Public relations
Sponsoring Event marketing
Fairs / Exhibitions
Product placement
Sales promotion
Direct marketing
Mobile marketing
Print media
Radio / TV / Movies
Outside advertisement / Billboard advertisement
Search engines
Guerilla marketing
Classical Marketing Alternative Marketing
Viral marketing
Marketing ObjectsDifferentiation according to different marketing objects and approaches
1 Consumer goods - marketing
marketing of products for private usage
2 Investment goods - marketing
marketing of products for
occupational use
3 Service marketing
marketing for immaterial goods and service performance
4 Non-Profit-marketing
marketing for organizations without
gainful intent
5 Social marketing
marketing of a social idea
(no organization)
6 Destinationmarketing
marketing of an explicit region
(tourism)
7 Trademarketing
marketing of a trade and sales company
(retail)
Marketing object
Marketing - Sales MarketsDifferentiation according to 3 sales markets and the participating partners
Marketing
B - to - B
Business-to-Business-Marketing
(company customer)
Marketing of one company to another
company (i.e. production machines)
C - to - C
Customer-to-Customer-Marketing
Marketing of a private household to another
private household (i.e. private sales on ebay)
B - to - C
Business-to-Customer-Marketing
(private customer business)
Marketing of a company
to a private house old (consumption goods)
Characterization of Markets - Types of GoodsTypes of assets and their usage situations
Consumer Goods Capital Goods ServicesConsumer goods (e.g. food)
and durables (e.g. cars) satisfy immediate needs, and are directly put
into use by the buyers (consumers).
Are used by production companies to produce further goods. Buyers
are usually establishments or public companies.
Immaterial benefits, often incurred only at the time
of consumption. The customer is part of the performance / service.
Mass-Market (B2C) Single, clear identifiable customer (B2B)
Services for customer with a high use of resources
Market SegmentationScientific level of consideration
Market Capture Market ProcessingMarket Segmentation
Explanatory models
of purchase pattern
Acquisition of information
Information processing
Selection of segments
Segments-Specific use of instruments
Consumer-oriented approach
Method-oriented approach Management-oriented approach
Market SegmentationObjectives, methods, strategies of market segmentation
Approaches ofMarket Segmentation
Lead Structure
behavior-oriented
method-oriented
management-oriented
Quantitative Qualitative
OBJECTIVESReasons/Meaning STRATEGIES
Hierarchy representation for the preparation of a market analysis of companies with a broad range of products or services
Market Definition
Overall Market
Market 1(Description)
Market 2(Description)
Market 3(Description)
SBU 1 SBU 2 SBU 3
Strategic management
MarketingSegment A
Sub Market ASub Market BSub Market C
Segment B Segment C
Definition of markets
Strategicbusiness units
Market Analysis/ CompetitionSituation analysis
Situation Analysis - Search FieldsSearch fields for the identification of potential chances and risks
Market analysisEnvironment analysis
Frame conditions:politicalsocialtechnologicaleconomicalecological
Stakeholder:employeesinvestorsunionsetc.
Supplier Company analysis Customer
Competitor
Substitute products
Market Analysis - Strategic Situation AnalysisAnalysis of market participants, political and legal situation and social, technological, geographical and economical aspects
Interpretation of data of strategic situation analysis are the foundation of the following marketing decisions
SWOT Analysis
Strengths and weaknesses analysis
Own organization
Potential analysis
Relevant competitor
Competition analysis
Supplier, Sales mediator and potential customers
Market analysis
Legal, social and natural environment
Environment analysis
Opportunities and threats analysis
1 What is the market where the company operates andhow can it be defined and narrowed?
2 Who is involved in the sales process?What determines the behavior of these groups?
3 Which competitors are currently operating on the market?
4 Do public interest groups or any external stakeholders have an impact on your company policy?
5 What is the actual-situation of the company?What are your strengths and weaknesses?
Check list with basic questions to clarify the initial situation
Marketing - Situation Analysis
Market Analysis - Company AnalysisCorporate philosophy (1/6)
Corporate policy Corporate ideaInsert description and notes in key words.
Insert description and notes in key words.
Corporate visionInsert description and notes in key words.
Market Analysis - Company AnalysisCorporate philosophy (2/6)
Corporate identity Corporate objectivesInsert description and notes in key words.
Insert description and notes in key words.
Corporate cultureInsert description and notes in key words.
Market Analysis - Company AnalysisCorporate potentials (3/6)
Development Production-technology-capacity-productivity
Insert description and notes in key words.
Marketing-marketing concept-standards-brands
Insert description and notes in key words.
-research/ development-know how-patent-development status
Insert description and notes in key words.
Market Analysis - Company AnalysisCorporate potentials (4/6)
Procurement Company- procurement systems- supplier relationship- purchasing power
Insert description and notes in key words.
-organization-value chain
Insert description and notes in key words.
Financing-capital requirements- investment intensity
Insert description and notes in key words.
Market Analysis - Company AnalysisCorporate resources (5/6)
Material resources Employees- installations- interior-equipment
-staff situation- education- staff development
Financial resources- liquidity-reserves-possibilities to raise capital
Managers Other- quality of leadership- business experience- age structure
Insert description and notes in key words.
IT-equipment- sort- actuality- complexity
Market Analysis - Company AnalysisCompany position on the market (6/6)
Markets Cost- Price-overall and partial - market share-market and sales profile
Insert description and notes in key words.
- price per piece- market price relations- value chain
Insert description and notes in key words.
Advantages- product and performance advantages- innovations- protection against replicates
Insert description and notes in key words.
Product mix- revenue- profitability- age profile
Insert description and notes in key words.
Potential AnalysisInspection of the position of own company on the market according to the following factors
Imagebrand image of
company, separate
product brands
Marketpositioning of company,
market share of provider of product brands
Capitalcapital resources, creditworthiness
Employeesnumber of employees,
structure, qualification
and motivation
Locationlocation quality, infrastructure,
business locations, distribution in target area
Salesdistribution organization
Partnerrelation to
cooperation and distribution
partners
Customernumber of customers,
customer potential, customer retention
(loyalty vs. fluctuation)
Market Analysis - Strengths and WeaknessStrengths and weaknesses profile
CriteriaWeakness Strength
-3 -2 -1 +1 +2 +3
Product range (quantity)
Product range (quality)
Price
Service (general)
Availability by phone
Customer satisfaction
Supplier satisfaction
…
+
+
+
+
+
+
+
+ Own company Other Company
Characteristic
high low
1 2 3 4 5 6 7 8 9
Quality
Price
Performance
Usage
Image
Environment-friendliness
Design
Additional functions
Competition AnalysisExample
Your product Competitor’s product
Marketing - Representation of Market VolumeRepresentation of market volume and its development as a diagram
Market shareMarket volume
Market potential Number of possible customeror amount if all customersare prepared to buy (at the given price)
Market capcity Total number of possible customeror max. amount of products that can be used consumed / (if price does not matter)
Actual sales or sales for all vendors at the market
Sales volume or sales of a provider / company
Saturation = Market volume
Market potentialx 100%
Characterization of Markets - SizesRelationship between market potential, market volume and market shareto assess the market attractiveness
Market PotentialCapacity of the market up to market saturation
Market VolumeTotal sales or a turnover of an industry including all competitors
Market ShareMarket share of a company and the ratio of sales / turnover of the company to the
market volume
RelativeMarket Share
Ratio of Market share of a company to the market
share of the strongest competitor
RelativeMarket Share
Company A =
Market Share A
Market Share B
AF
C
B
D
E
Market - Description/ Term Definition Terms to describe markets
Market potential
Market volume
Sales / Revenuevolume of the company
Market-exhaustion
Absolute market share
Relativemarket share
Market volume:realized / scheduled sales or revenue for a similar product for example for one year. Clearly more specific than the market potential.
Market potential:equates to the absorption capacity of the
market (market capacity) or the volumeof the possible deductable amounts of one
product at a certain market.
Absolute market share:market share, that the company has
realized on a certain market(sales or revenue)
Relative market share:indicator of market position by relating their own sales to the sales of its largest competitor in the industry.
Market exhaustion:percentage value that indicates to what
degree the possible customer of a product would consume it. (Market limit used as a
gauge for future market growth)
Market Analysis - Environment AnalysisPlaceholder for your own Subheadline
Quality of connection+ perfecto normalK critical
Frequency of connection3 intensive2 medium1 low0 nonexistent
Design engineer
Dep. 4
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Calculation
Colleaguegen.
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CustomerReference
Calculation
Attempt
LeadEngineer
Dep. 1
Design engineer
Dep. 4
Design engineer
Dep. 4
Customergen.
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Intranet
Internet
FTLDep. 4
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FeedbackThe text demonstrates how your own text will look when you replace the placeholder with your own text.
Opportunities - Threats-AnalysisAnalysis about the company’s opinion on environmental changes and where adjustments need to be done
Criteria Opportunities ThreatsMarktsituation
Market structure xMarket potential/ market volume xCustomer structure xCompetitor x
Environment / Frame conditionsLaws / Taxes xSociety xEcology xTechnological Development x
StrengthProduct range xPrices xOrganization / Management xCash Flow x
WeaknessesLocations xMarketing performance xInnovation ability xFinancial resources x
Chance-Risk-AnalysisChances and Risks with possible development outside the company and their influence on marketing strategy and business planning
Opportunities Threats
new product development in own company development of a new product by the competitor
own innovations innovations of the competitor
new target groups and buyer levels development of new competitors
opening new markets in other countries development of new competitive suppliers in other countries
increasing demand development of over-production
recovery of the overall economy weakening of the overall economy
loosening or changing of relevant laws limited measures and legislative processes
currency exchange revenues on foreign markets through positive change of exchange rates
exchange rate losses on foreign markets through negative changes of the exchange rate
technological development / change of base technologies
Sector Success FactorRelevance
Notes1 2 3 4 5
Marketing and Sales
Range of service
Pricing
Image
Market share
Market growth
Sales development
Distribution
Sales network
Advertising
Complaint management
Adherence to schedules
Customer structure
Order processing
Sensitivity to economic situations
Customer service
Market cultivation
Sales representatives
Market research
Sales planning
Customer loyalty
Strength and Weaknesses AnalysisAnalysis of internal Company Resources
SWOT-AnalysisEnter your subheadline here
SWOT
Strength Weaknesses
Opportunities Threats
Inte
rnal
Ana
lysi
sExternal Analysis
Gap AnalysisTa
rget
val
ue i.
e. re
venu
e
timePresent Planning horizon
Development limit
New business
Potential core business
Core business
Strategic gap
Operative gap
Revenue targets and their development in the course of time
ABC-AnalysisABC Analysis is methodology that gives a quickly and simple review of assortments of products in retail, wholesale or manufacturing businesses
Turn
over
/ V
alue
in %
Range of Products / Quantity in %
A
100%
0%
80%
60%
40%
20%
0% 20% 40% 60% 80% 100%
B C
ABC-AnalysisPlaceholder für Ihre eigene Subheadline
No. PercentCustomer Customer Sales 2010
(in Dollar)Commulated
Sales
1 5% Placeholder 100,000 16,4%
2 10% Placeholder 95,000 31,9%
3 15% Placeholder 90,000 46,7%
4 20% Placeholder 85,000 60,6%
5 50% Placeholder 30,000 82,3%
6 100% Placeholder 300 100%
610,400
Quality and Price PositioningRelative positioning of different product categories
low highRelative price
high
low
Re
lativ
e qu
ality
No-names Trademarks
Brand article
Seller / Buyer's Market - FeaturesComparison and limits of the characteristics of the seller and buyer's market
Activities of supplier Activities of demander
Features Seller‘s Market Buyer‘s Market
Economic development stage
Scaricity economy Affluent societies
Ratio of supply and demand
Demand> Supply(Excess demand)
Demand more active than provider
Supply> Demand(Surplus)
Providers more active than buyers
Bottleneck area of company Procurement and / or production Turn over
Primary efforts of company
Rational extension of procurement and production capacity
Awakening of demand and creation of preferences for their own
Criteria Weigh.Coefficients
0 0,1 0,2…0,8 0,9 1
Index
1. Market growth
2. Market quality
- Profitability of the branch
- Tolerance for price policy
- Technological level
- Protectability of know how
- Intensity of investments
- Intensity / structure of competition
- Number / structure of potential consumer
- Entry barriers
- Distribution requirements
- Variability of competition conditions
- Substitution possibilities
Criteria Weigh.Coefficients
0 0,1 0,2…0,8 0,9 1
Index
3. Energy / Accommodation
- interference of accommodation
- influence of profitability through price incensement
- existence of alternatives
4. Environment situation
- Economic dependency
- Inflation effects
- Dependency on legislation
- Dependency on public
- Risk of public interference
- Pollution of nature
TOTAL 1,0
Evaluation of market attractiveness
Market Attractiveness - Competition Advantage Portfolio 1/3Analysis of portfolio categories according to the criteria lists
Market Attractiveness - Competition Advantage Portfolio 2/3Analysis of portfolio categories according to the criteria lists
Criteria Weigh.Coefficients
0 0,1 0,2…0,8 0,9 1
Index
1. Rel. market position
- Market share
- Size and financial power
- Growth rate
- Profitability
- Risk
- Market potential
2. Rel. product potential
- Process efficiency
- Cost advantage
- Innovation ability
- License relations
- Adaptability
- Sustain market share with capacity
- Location advantage
Criteria Weigh.Coefficients
0 0,1 0,2…0,8 0,9 1
Index
- Pot. increase of productivity
- Environmental friendly production
-Delivery conditions
- Sustain market share with given supply conditions
- Cost situation with energy and raw material supply
3. Relative R&D potential
- Status of research
- Development compared to market position
- Innovation potential
4. Rel. employee qualification
- Professionalism and culture
- Innovation climate
- Quality of management systems
TOTAL 1,0
Evaluation of market attractiveness
Market Attractiveness - Competition Advantage Portfolio 3/3
A
B
low medium high
low
med
ium
high
Relative competition advantage
Mar
ket a
ttrac
tiven
ess
Investment and growths strategies
Selective strategies
Absorption and divestment strategies
C
Display of portfolio graphic according to results of prior criteria lists
Market SegmentationDifferent types and levels of market segmentation
Massmarketing
Product varietymarketing
Segmentmarketing
Nischemarketing Individual marketing
High degree of market coverage serves multiple or many different sub markets.
Further sub divisions:
1. Concentration to only one segment2. Selective specialization3. Product specification4. Market specialization5. Complete segment
coverage
High specialization and concentration on special sub markets or clearly defined customer groups.
Niche providers are highly specialized and pursuit a secure market position in procurement.
It’s the highest degree of segmentation and external opposite to mass marketing.
Segmentation of market down to the individual customer by increasing individualization tendency and technical progress.
Customized mass production(Mass customization / One-to-One-marketing)
Products, distribution and advertisements are designed the same for all customers.
Difference between separate segments are being ignored and the market is served with one offer.
Undifferentiated marketing Differentiated marketing Concentrates marketing Micro marketing
Broad target groupapproach
Narrow target groupapproach
Segmentation
Prices, distribution and advertisement measures are developed for different target groups.
Orientation according to target groups creates better approaches for the determination of market chances.
Segmenting-Targeting-Positioning (STP-Model)Three steps to target group oriented marketing
Market segmentation Target market determination PositioningDetermination of segmentation variables/ segmentation of Market
Development of resultedsegment profile
Estimation of attractiveness of each Segment
Selection of target segments
Development of possible positioning concepts
Selection and Communication of positioning concept
1
2
3
4
5
6
Zoning of market in clear defined target groups / Customer
groups with own products and marketing-mix.
Development of assesment guidelines for the determination of attractiveness. Finally the selection and concentration on one or more
segments.
Development of a lasting competition position and
determination of tasks and performance program for selected
target segments.
Time
Segmenting-Targeting-Positioning (STP-Model)Three steps in the process of market segmentation
Segmentation Targeting Positionierung
Determination of segment variables
Definition and segmentation of the market
Development and description of resulting segment profiles
Analysis of estimation of attractiveness of each segment
Selection of target segments
Designing of a possible positioning concept
Selection and communication of positioning concept
Differentiation and description of target groups
Customer Segmentation
Customer segment XCharacteristics: … … …Core motive:
Customer segment YCharacteristics : … … …Core motive:
Customer segment ZCharacteristics : … … …Core motive:
Feature A
Feature B
Individual
Market Entry BarriersInstitutional and behavior dependent market entry barriers
Market entry barriers
Institutional market entry barriers Behavior dependent market entry barriers
Tariff barriers Non-tariff barriers Market side barriers Company side barriers
Import quotes
Capital flows limitations
Minimum /maximum prices
Local content regulations
Norms / standards
Self limitations
Demand behavior
Language / culture
Distribution systems
Administrative constrains
Information availability
Psychological distance of management
Tolls
Values and Lifestyles (VALS)System of lifestyle-typology of consumer
VALS TypologyValues and Lifestyles (VALS)
ExtrovertsAchievers
Notleidende Introverts
Emulators
Belongers
Sustainers
Survivors
Socially-Conscious
Experimentals
I-am-me´s
Competitive Advantage Representation of the thre influencial factors customers, organization and competition
Competitive advantage
Expectation on the product and benefit
Core competences
range of service
Competi
tion field
and
its ra
nge of
servi
ce
Separation of market research process in five phases
D1 D2 D3 D4 D5
Definition PhaseProblem definition and development of survey targets Topic of research
DesignphaseFixation of target groupsSelection of research methods
and instrumentsOrganization (time/cost)Sources for data
Data Collection Phase
Data analysis phaseEvaluation of dataInterpretationPrognosis
Dokumentations-phase Präsentation der ErgebnisseForschungsbericht Verteiler
Marketing decision
Recommendations that influence
decisions
Documentation Phase Presentation of resultsResearch report distributer
Market Research - Process Scheme
Sales Orientation vs. Marketing OrientationComparison
The sales orientation
Initial point Main focus on Measure Target
existing production
existing products
advertisement, sales promotions
profit through high revenue
The marketing orientation
Initial point Main focus on Measure Target
the markets actual customer requirements
integrated marketing approach
long term profit expectation through
sustainable satisfaction of customers
Competition StrategiesDifferentiation between cost leadership, time leadership and quality leadership
Cost leadership Time leadership Quality leadership
Choice of time of market entry.Previous development time, handling time and production time are important here.
Determination and implementation of technical improvements and product improvements with the target to always provide the best quality on the market.
Causing lower costs than competitor i.e. though production of large amounts and low priced procurements. Mostly this doesn’t require a large market share.
Competitive Advantage - 5 PrinciplesA competitive advantage over the competition is a superior performanceor property
Principle of survival
Opportunityprinciple
Perceptual principle
Concentration principle
Consistency principle
A distinction is made between five principles:
At least one strategiccompetition advantage
must be present (long term).
Creating competitive advantages through
important competitive parameters.
(the more the greater the chance)
Only competitive advantages that the
customer subjectively perceives count (not
technical advantages).
At least one strategiccompetitive advantage
must be present (long term).
Focus on strategic competitive benefits
which are most important for the customer.
Competitive Advantage - Advantage MatrixRepresentation of the relationship of competitive advantages and quantities
Volume has no /orsmall advantages Volume has great advantages
Many competitive advantages
Only a few competitive advantages
possible
Niche business
(Restaurants, consultants)
Special business
(Journals, instruments)
Patt-business
(Basic materials chemistry, standard paper)
Volume business
(PC's, IC's)
Competition StrategiesRepresentation of coherences between competitive advantages and amounts
Cost leader and benefit leader require singularity characteristics otherwise they lose their leading positions.
Profi
tabi
lity
Cost leader Benefit leader
? +-
-
+
Marketing ModelsEstablished models
Competition - Driving ForcesThe five driving forces of sector competition (according to Porter)
Potentially new competitors
Substitution products
BuyerSuppliers
Competitors in the industry
Rivalry among existing companies
Threat of new competitors
Threat of substitution products or services
Bargaining power of buyers
Bargaining power of suppliers
Marketing - 4P-ModelProduct, Price, Place, Promotion
PRICE
PRODUCT
PROMOTION
PLACE
Marketing - 4P-ModelProduct, Price, Place, Promotion
PRICE
PRODUCT
PROMOTION
PLACE
5P-ModelExpansion of the 4P model with the aspect of “Personnel”
PRICE
PRODUCT
PLACE
PROMOTION PERSONNEL
5P- ModelExpansion of the 4P model with the aspect of “Personnel”
PRICE
PRODUCT
PLACE
PROMOTION PERSONNEL
Enter your subheadline here
Marketing 4P‘s
4Ps
Product Price Promotion PlaceMain usage Conditions Advertisement Strategic distribution/ sales
Side usage Rebate Sales Physicaldistribution/logistics
Additional usage Discount Sponsoring Location
Brand Leasing Sales promotion
Content Event
Quality PPR
Packaging
Marketing Mix - 7PClassical and new instruments
Product policy „product“
Equipment policy „physical facilities“
Communication policy „promotion“
Personnel policy „personnel“
Distribution policy „place“
Price policy „price“
Process policy „process“
Classical instrumentsNew instruments
Example with individual factors
Marketing Mix
MARKETINGMIX
Reseller discount
Slogan
Give-Aways Website
Businesspaper
Brochures / Product presentation
Brochure / Corporate design
Product design / packaging
Press conference
Sales Training
ad campaign
Brand nameLogo
Marketing Mix (4P‘s)Components of the marketing mix
Product policy Price policy Communication policy Distribution policy
Product innovations Product improvements Product differentiation Marking Naming Service performance Assortment planning Packaging
Price Price deductions Rebates and discounts Delivery conditions Payment conditions
Media advertisement Sales promotion Direct marketing Public relations Sponsoring Personal communication Fairs and exhibitions Multi-media communication Employee communication
Distribution systems Sales organs Logistic systems
Marketing mix
Sub-markets and customer groups
Service marketing (from 4P’s to 7P’s)Comparison of 4P´s and 7P´s
advertisement
product
price
positioning
processmanagement
physical facilitiesprice
employees
advertisement product
positioning
4 P‘s of the classical consumption goods marketing
7 P‘s of the service marketing
Step model in 4 phases (Phases could variy)
AIDA- Model
A I D AAttention
Attract the customer‘sattention
Interest The customer is interested in the product
Desire
The desire for the product is awakened
Action
The cusomer probably purchases
The stage model includes four phases the Customer goes through in order to make the purchase decision
AIDA - Action Principle
Attention of the customerfor the product is excited
The customer is interested inthe product
The desire for the productis awakened (demand)
The customer buys the product
Psychological reaction(pre- economical)
Physical reaction(economical)
Attention
Interest
Desire
Action
Marketing 3C’s TriangleEnter your subheadline here
Customer
Distributors
Suppliers
CompetitorsClients
Diamond-Model - National Competitive Advantages Thesis to assess the competitive abilities of states in terms of individual industries (according to Porter)
Demand conditionsFactual conditions
Related and supporting industries
Strategy, structure and competition
Coincidence
Government
Porter‘s Five Forces AnalysisEnter your subheadline here
New CompetitorsThreat of new competition
Substitution products= threat of substitution
Bargening power of supplier
Competition on relevant market = rivalry among
competitors
Bargening prower of customer
Five ForcesFive (+1) competitive forces according to Porter (supplement through stakeholder)
Potentially new competitorsthreat through new competitors
Potential further stakeholderPotential bargaining power and the ability to intervene in the industry events
Customerbargaining power of customers
Substitute productsthreat through substitute products or services
Suppliersbargaining strength of
suppliers
Competitors/ rivalry between
industry suppliers
Representation of the life cycle of technology in the course of time
S-Curve Concept - Life Cycle
development phase growth maturity age phases
Pace settingtechnology
Basic technology
Life cycle of a technology
time
Marketing Strategy /ConceptStrategic marketing / concepts
Differentiation - Strategic MarketingPosition of the strategic marketing between strategic management and marketing management
Stra
tegi
c M
anag
emen
t
Stra
tegi
c M
arke
ting
Mar
ketin
gM
anag
emen
t
Enter your subheadline here
Customer
Situation Analysis
Marketing Strategy
SBU-Planning (Strategic Business Units)
Marketing Instruments/Marketing-Mix
Marketing Objectives
Implementation /Realization
Marketing Control
1
2
3
45
6
7
Conception Phases of Marketing
Marketing - Communication PolicyTen-step model of marketing communication
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
Step 9
Step 10
Situation analysis and prognosis for the company
Agree on company objectives
Derive marketing targets
Define communication targets and target groups
Develop communication strategy
Budgeting and media selection (selecting advertising media)
Plan separate communication measures
Pre- test, Control of effect, return result to step 7, to apply improvements
Apply communication measures
Measure effect
Retu
rn re
sult
at 5
-9
Improvements and corrections
Four Codes of Brand CommunicationCommunication model that implies that there are three more codes next to language responsible for concrete meaning
Only the interaction of these four Codes makes the brand communication sustainably successful!
Meaning
LanguageStyle
Rhetoric
Wording
HistoryTell stories
Show episodes
SymbolsProtagonists
Figures
Places of action
SensoricsSensorial experience
Stimulation of senses
Noises / colors
Shapes / haptics
Core competences as a base of the product pyramid, which are not easily adapted by other companies and therefor improve the benefit of the end product
Core Competences / Product Pyramid
Core competences
valuable rare difficult to immitate
not sub-stitutable
are strength-ened the more they are used
End product
Core product
BASE
Marketing Strategy - Influencial FactorsInfluencial factors
Organizational objectives and resources
Attitude tochange and risk
Competitorstrategies
Market structure and opportunities
MarketingStrategy
Marketing as market-oriented business management / business strategy
Research andDevelopment Strategy
Production StrategyQuality Strategy
Human Resources Strategy
Procurement Strategy
Business Strategy
Marketing Strategy
Connection between the separate elements and their logical process structure
Elements of Marketing Concept
Elements
Offer of products and services
Customer benefit and customer satisfaction
Exchange, transactions and relations
Markets
Wishes, requirements and demands
Market Areal StrategyDetermination of geographic coverage
Market areal strategies
Local Regional National Inter-national
Multi-national Global
Process of geographic expansion
Market Simulation Strategies - Stuck in the MiddlePlaceholder for own Subheadline
Performance
low
highIV: Advantage strategy
III: Price / Amount strategy
II: Preference strategy
I: Over reaching strategy
lowPrice
high
„Stuck-in-the-Middle“
Security distance
Outpacing strategy
Outpacing strategy
Marketing Strategy - Strategic TriangleIntegrated marketing strategies include the strategic triangle of company, customer and competitor
Own Company Competition
CustomerCusto
mer ben
efit Customer benefit
Competitve advantage
Marketing Strategy - Strategic PentagonAccording to Ohmae 1992
Strategic Pentagon
Customer
Currency
CompetitorCompany
Government
Innovation - Demand Pull and Technology PushInterplay between both strategies
Demand Pull
Technology Push Innovation
Company Market
Media Strategy - DimensionsAnalysis and visualization of the six most important parameter of media strategy
Percentage of the reached target group
The number of applied media (Media mix)
Frequency and timely intervals of the contacts
Size, formats, advertising and spot lengths
Design of advertising(for instance: color) and their
placement
Frequency of addressing the target persons
Range
Contacts
Intensity
Repetition
Dominance
Impact
Strategies according to individualization degree and customer relation
Marketing Strategies
Mass-Marketingstandardized
market development
Relationship MarketingIndividualization of
customer relationship
Customized Marketingindividualization
of product
Individual Marketingcustomer individual market development
Level of individualization of a product
Individualization degree of customer relationship
low high
low
high
Strategic MarketingQuestions and Marketing
Where? When?How?
In which market is the company active?
When will the company become active on
the market?
What is the central orientation of the
marketing strategy?
Concentration of company's activities on particularly attractive
and promising markets
Conscious selection of markets and definition of future strategies
with long-term orientation
Determination of market entry time in compliance of the previous development and production effort
Marketing OrientationsOrientation of the company on the turnover market
“ Produce as much as you can. ”
“ Write off what you‘ve produced. ”
“ Produce what you can write off. ”
Production orientation (seller‘s market)
Products/ Performance
Expansion / rationalization of production and
procurement
Profit on increased volume
Sales orientation (saturation tendency)
Products/ Performance Sales-political instruments
Profit on accordantvolume
Market orientation (buyer‘s market)
Customer wishesProfit on long-term
satisfaction of customers
Market-research Bundle of
marketingmeasures
Starting Point Medium Objectives
Cost LeadershipThe strategy of a company to reach sustainable competitive advantage be low costs is differentiated in 8 methods
Economies of scale Economies of scope Experience effects
Economies of learning Product design Process design
Capacity utilization Input-Costs Residual effectsthe operational
effectiveness
Cost leadership
Differentiation StrategyThe strategy of a company to differentiate themselves positively from the competition from the customer’s point of view is separated in 6 different methods
Price Image Support
Design Quality Not differentiated
Differentiation Strategy
Market Field Strategies according to AnsoffAnsoff-matrix with the representation of product-market-strategies
Existing New
Existing
New
Markets
Products/ Performance
Market penetration Market presence Market suppression
Market development Internationalisation Market segmentation
Product development Product innovation Product differentiation
Diversification Vertical diversification Horizontal diversification Lateral diversification
Market Area Strategies Basic principles for market areas / market development
National Strategies
Local market Regional market Cross regional market National market
International Strategies
Multinational market International market World market
Marketing - STP-StrategiesStrategies of market davelopment
STP-Strategyn
Segmenting Targeting Positioning
Market segmetation, segmentation criteria to divide the marketsinto clearly defined customer groups
Segment evaluation, target market determination and target group determination. Selection of the most attractive market segments
Positioning versus Differentiation.Establishment of a competition position in each target segment. Selection and communication of a concept
S T P
Competition StrategiesMatrix for the devision and basic concept of competition strategies
Competitive advantagePerformance advantage Cost advantage
Sub-
mar
ket
Ove
rall
mar
ket
Degr
ee o
f com
petiti
on
Differentiation strategy• performance/quality• uniqueness
Cost leadership• price/costs• standard product
Differentiation focus• specific need• relatively price-inelastic
Cost focus• limited need• price elastic
Competition StrategiesMatrix for the devision and basic concept of competition strategies
Competitive advantagePerformance advantage Cost advantage
Sub-
mar
ket
Ove
rall
mar
ket
Degr
ee o
f com
petiti
on
Strategy of quality leadership
Strategy of aggressive cost leadership
Strategy of selectiveQuality leadership
Strategy of selective Cost leadership
Competition StrategiesMatrix for the devision and basic concept of competition strategies
Industry wide
Limitation to one segment
Singularity from customers perspective
differentiation
Cost advantage
Extensive cost leadership
Focusing
Strategic advantage
Strategictarget object
Market Field Strategies according to AnsoffAnsoff-matrix with the representation of product-market-strategies
Existing
New
Existing
Market penetration
New
Market development
Product
Market
Product development Diversification
Norm Strategies - McKinsey/GEEnter your subheadline here
Specializing in few strength
Overcoming weaknesses Retreat when missing
signs for continuous growth
Fight for the market leadership
Usage of strength Strengthening of poorly
performing areas
Maximum investments Concentration on
preservation of existing strength
Search for low risk expansion possibilities
Minimizing of investments Rationalizing of internal
processes
Defending of position Concentration of
investments of attractive and low risk areas
High investments in attractive segment
Defense against competitors
Increasing productivity
Sales with increasing profits
Reduction of fixed costs No investments
Defense of position in most profitable area
Improvement of product line
Minimizing investments
Realization of profit Concentration of most
attractive segments Defense of existing
strength
low
med
ium
high
low medium high
Market-attractiveness
Competitive strength
InvestDevelop
DevestDevelop
Selective actionProfit priority
Norm Strategies - McKinsey/GEMatrix of norm strategies (threefold division of axis )
Relative competitive advantages
Mar
ket a
ttrac
tiven
ess
High
Medium
Low
Investment or retreat Investment Keep market leadership
Absorption and gradual divestment Transition Growth
Divestment Absorption and gradual divestment Absorption
Low Medium High
Market GrowthRepresentation of market sizes, like market potential, market volume and market growth in the course of time
0
1
2
3
4
5
6 Sales Volume Provider ASales Volume Provider BSales Volume Provider CSales Volume Provider D
Period 1 Period 2 Period 3 Period 4Time
Market Volume
Amount / Value Market Potential
Market Growth
Outpacing-StrategieIncrease in profitability by maximizing quality (high customer benefit) and cost reduction
Quality/ Customer benefit
high
low
Price / Costsexpensive cheap
Target of outpacing
Cost reduction
Follower
Inno
vato
r
Offe
r diff
eren
tiatio
n
Innovation Strategies - Innovation PentagramA tool of innovation management
Motive: Which motive targets the innovation?
Advantage: What kind of advantages does the innovation provide?
Revenue model: How is the revenue generated?
Business system: With what kind of
business systemis the innovation
implemented?
Timing: When are we applying these measures?
Marketing Concepts - DimensionsPlatzhalter für Ihre eigene Subheadline
strategic marketing
external
internal
public
procurement market
sales market
operative dimensions
strategic dimensions
normative dimensions
3D Function1. Right click on to the object.
2. Select “Format Shape ...”
3. Select “3-D Rotation”
Internationalization StrategiesPlaceholder for own Subheadline
3Global
marketing
4Transnational
marketing
1International
marketing
2Multinational
marketing
low highhi
ghlo
w
Differentiation advantage
Inte
grati
on a
dvan
tage
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Marketing Planning /Objectives
Marketing Management - ProcessRepresentation of the ideal type process of marketing management
Four
clas
sic p
hase
s
Marketing situation analysisAnalysis phase
Determination of market segments and marketing targets
Definition of marketing strategy
Determination of marketing budget
Determination of marketing measures
Implementation of marketing measures
Control of marketing results
Implementation phase
Control phase
Planning phase
Marketing-Planning ProcessMarketing as a process devided in the five steps of market analysis, marketing objective, strategy, marketing instruments and success control
Market analysis(actual-condition)
Where are you? What is the initial situation?
Marketing targets(establish objectives) Wher do you want to be?
Marketing strategy How will you reach your objectives?
Marketing instruments Which instruments will be used?
Success control Analysis of the difference between target and result
Marketing TargetsEconomic and non-economic objectives of a business
Economic marketing targets
Close connection to general economic company objectives
revenue / profitability
profit contribution / Return-on-Investment
growth (revenue/sales/profit)
rationalizing
capacities
security (risk distribution)
market position /market share
Non-economic marketing targets
Connecting to mental processes of buyer (purchase behavior)
customer retention
customer satisfaction
name recognition
attitude (image / sympathie)
repurchase rate
level of distribution
effects of knowledge
strength of purchase intention
Goal criteria − SMARTThe 5 criteria that define a goal so that it can be used in project management
S M A R TSpecific
Objectives have to be specific and positively described.
Measurable
A goal achievement should be measurable.
Attainable
It should be attractive for the project team to reach the goal.
Realistic
The objective needs to be achievable in a realistic way.
Time-bound
The goal has to set within a time frame.
Marketing Objectives - Target PyramidPlaceholder for own Subheadline
Corporate objectives
Financial target
Communication target
Exhibition objectives
Retention of the economic and legal independency, increasing development of flexibility
Increase in sales, improvement of company image
Preparation of contract conclusions
Managing customer data, raise purchase interest, increasing popularity of brand
Marketing objectives
Price policy target
Distribution target
PR- objectives Advertisement objectives
Marketing objctives / Hierarchical levels of objectivesObjective system in form of a hierarchy
Object of the company
Company objective
Function targetsMarketing targets are function targets
Instrumental targetLevels of objectives and marketing instruments
Asce
rtain
men
t of o
bjec
tives
Means-end relationship
CR-Marketing - Target HierarchyOperative and strategic main and sub objectives
Company relatedsub-objectives- Positioning on the market- Employee loyalty- Employee motivation- Innovation
Corporateobjectives
strat
egic
oper
ative
Profit / Yield
Marketing overall targetsCosts / Productivity / Revenue
/ Sales
Customer relatedsub-objectives-Customer contribution margin- Customer loyalty- Customer satisfaction- Perceived performance quality
Conventional Marketing TargetsTargets for successful business
Increasing market shares
Increasing revenues
Improving contribution margin
Popularity Image Customer reach Customer satisfaction Customer loyalty
Price segment Revenue Distribution
Process to create a marketing plan
Marketing Plan
Objectives and Indicators• Strategic and operational objectives
Financial objectivesMarket-and customer-related objectives
Strategy Implementation (Marketing Mix)• Product and pricing policy• Communication and distribution
policy
1. Analysis2. Target
3. Strategy4. Mix 5. Control
Strategic Analysis• Market and environment
analysis• Customer and competitor
analysis
Strategy Selection and Combination• Competitive strategies• Portfolio strategies• Positioning strategies• Innovation strategies
Success Control (progress and results)• Effectiveness of marketing tools• Performance of the people involved• Profitability of the chosen products,
markets and (customer success estimation)
MarketingManagement
Display as 4 phases model / marketing cycle
Marketing Management Cycle
Procurement, evaluation and interpretation of market data
Determination of marketing objectives
Development of marketing strategy
Success control of target achievement (target-actual-comparison)
Planning and implementation of marketing measures
Management Cycle
Display as 4 phases model / marketing cycle
Marketing Management Cycle
Management cycle
Situation analysis
Customer and competitor behavior, environment trends, resources, where do we stand?
ControllingReference objects (products,
customers, branches, etc.), early detection systems (environment
development)
Organization Development and process organization, primarily and secondary organization, key
processes, qualification
Mix
Product, communication, distribution, price
Targets
Competences, orientation, target segments, revenue,
market share, DB, image
Budget
Fundraising, allotment, methods, function and overall
budget
Strategies
Product – market innovation, cooperation, acquisition,
competition strategy, brand
Preparation of employees about the interaction with customers by internal marketing
Internal Marketing
SkillsKnow-HowMotivationSettingCompetencies Internal training and interactive
communication Recruitment advertisementand Internal market research
Optimal supplierbuyer interaction
Marketing-Mix
Customer
CompanyEmployees
Inte
racti
ve M
arke
ting External M
arketing
Internal Marketing
Service Culture
Integrated MarketingIntegration of marketing oriented views in all economic subdivisions of a company
Suppliers Procurement
marketing
EmployeesInternal
marketing
Sales intermediary Sales marketing
(push)
End customer
Public Public
marketing
CompetitorCompetitive marketing
Process orientation
Sales marketing (pull)
Marketing Oriented ManagementDesign of the organization and its interactions (functional chain)
Market orientation of company structure
Market orientation of managerial subsystem within the company:
personal management organization system QM system information system control system
Service offer
Employee behavior
Customer satisfactionloyalty
willingness to pay a certain price
Market success, economic success
Customer related effects
Company success
Enter your subheadline here
Marketing Structure
Marketing Planning Marketing Strategy
Product Policy Pricing Policy Communications Policy Sales Policy
Marketing Organization Marketing Controlling
Mar
ketin
g Re
sear
ch
Fundamentals
Marketing Organization - Function-orientedFunction-oriented marketing organization
ManagementProcurement Production Marketing Finance
Marketing Research
Marketing Planning Communication Physical
Distribution Sales
Marketing-Informations Marketing-Operations
Marketing Organization - Product-orientedEnter your subheadline here
ManagementProcurement Production Marketing Finance
Product group C sales
Product group C communication
Product group C market research
Product group C marketing planning
Product group C physical
distribution
Marketing product group A
Marketing product group B
Marketing product group C
Central communication
Central marketingresearch
Central marketing planning
Centraldistribution
Marketing Organization - Customer-orientedEnter your subheadline here
Management
Marketing-managementfor the separate customer groups
Marketing customer group 1
Marketing customer group 2
Marketing customer group 3
Marketing customer group 4
Prod. development customer group 2
Advertisement customer group 2
Distribution customer group 2
Market researchcustomer group 2
Matrix Organization in MarketingEnter your subheadline here
ManagementProcurement Production Marketing Finance
Marketing columnsPublic relations Marketing planning Market research
Advertisement Sales Physicaldistribution Sales promotion
Product A
Product B
Product C
SalesManager
Market ResearchManager
Advertising and Promotions Manager
Product Manager Product 1
Product Manager Product 2
Product Manager Product 3
Placeholder Placeholder Placeholder
Placeholder Placeholder Placeholder
Placeholder Placeholder Placeholder
Matrix Organization in MarketingEnter your subheadline here
Funktional Sales - Marketing-OrganizationEnter your subheadline here
Managing Director
Sales Director
Marketing Director
Sales Manager 1
Sales Manager 2
Market Research Manager
Advertising andPromotions
Manager
Product Development
Manager
Marketing Management - TasksDifferentiation between three important task areas in marketing management
Tasksof marketingmanagement
Market relatedtasksto control the demand, fulfillment of demand, demand development and activation and reduction of demand.
Company relatedtasks
for the coordination and avoidance of possible
interest conflicts through integration of
marketing in existingcompany organization.
Society related tasksin respect to social responsibilities of marketing management (Economics,
humanistic and ethical standards)
Four central parameter of company management that need to be aligned to market and customer requirements
Marketing Management
Which objectivesneed to be achieved?
How should the objective be
accomplished?
Which organisatorialstructures secure the
acomplishment of the objectives?
What values and norms are lead by our actions?
Culture
Process
Market
Customer
Strategy
Structure
Marketing Management - Task AreasTask areas in the company / environment
Product
Sales promotion
PriceDi
strib
ution
Target customer
Demographic-economic
environment
Political-legal
environment
socio-cultural environment
Technologic-environmentalenvironment
Supplier Interest groups
Participants of the commercial world
Competitors
Representation of marketing as a sub-process (function) in a company
Marketing in the Company
Planning Organization Management Control
Business core processes
Managementprocesses
Procurement Production Marketing
Finance, F&E, personal, controlling, administration
Supporting processes
Procurement market Market
Note: If marketing is the central bottleneck, all processes have to act accordingly (subject heading "Market-Oriented Management"). By the way: Each process can be a central bottleneck.
Note: Commercial companies have mainly just the two core processes Procurement and Marketing (Sales). In service companies no one speaks of production but of service performance; in technology-intensive companies is research and development usually the core process (in terms of contribution to value creation ).
Management
Marketing control - Basic SchemeMarketing control to varify structures, processes and results
Consequence 2: Change and adjustments of current measures
Consequence 1:Change and adjustments of
objectives
Input / Output
Compareobjectives/
result
Objectives Observed results
Decisions about
response
The sum of all communications measures of a company (corporate communications)
Company Communication
CorporateCommunication
Performance potential, abilities, benefit, intention, values
Customer, employees, partners, suppliers, public
Self image
Public image
Multi-Channel-MarketingDisplay of different marketing channels
Multi-ChannelMarketing
@
Personal Sales
Database Marketing
Direct Mail Marketing
Telemarketing
Social Media
E-Mail Marketing
Search Engine Marketing
Online Advertising
Innovation Management - OverviewPlaceholder for own Subheadline
Innovation strategy
Innovation ideas
Innovation organization
Innovation processes
Environment
Customer
Product Planning
Supply chain that shows the way of all components of a product from commodity to supplier, manufacturer till customer
Value Chain (Supply Chain)
Supplier Customer
Procurement Production Sales
Cash Flow - ProductTypical curve of the cumulative cash flow of a product
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Deve
lopm
ent C
osts
Prot
otyp
e
Inve
stm
ents
Mar
ket E
ntry
Cos
ts
Break-Even-Point
Market exit
Market entry
Technical feasibility is clarified
Production technique is ready
positi
vene
gativ
e
0
1 2 3 4 5
Cumulative Cash Flow
Product Variation - New- and Replacement DemandCourse of the overall demand of a product by product variation
Replacement demand 1 Replacement demand 2
Overall demand
Market potential
Change of model or variation
Product variation - Product life cycleTheoretical course of life cycle of a product when revenue is increased by product variation
Variant 1
t
Variant 2
Variant 3
Revenue
Product Life CycleLife cycle with the representation of sales, profit and loss zones in the course of time in separate phases
Introduction
Sale
s and
Pro
fit
Development Growth Maturity Saturation Degeneration Elimination
Revenue profile analysis with defense of production capacities
Revenue Profile of an Assortment
Production capacity in %
Revenue in %
III
III
100%
40%10%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%0% 20% 30% 50% 60% 70% 80% 90% 100%
I - III = Product programs
Contributions of individual product programs to sales and profit
Revenue and Profit according to products
Product 1 Product 2 Product 3 Product 4
20%
50%
20%
10%
18%
42%
25%
15%
Sales Profit
Product programm
Price / Cost Management
Composition of ProfitThe price is the only component of the marketing mix, which directly affects sales and profits
Profit
Amount Pricex
Sales Sales-
Product development / innovation Product line expansion product differentiation New customer groups New territories
Factor with the greatestunexploited profit potential
High cost reduction potential reached
Price StrategiesMatrix with high-price, low price and value-oriented price strategies
Low price strategies:Traditional approach with the lowest possible price for the product.
High price strategies:Target specific customer through high price level.
Value oriented price strategies:Prices of the service correspond exactly to the customer value.
high
low
Pric
e le
vel
highlow Service/Performance (Customer value)
High price strategies
Value oriented price strategies
Low price strategies
Marketing - Leaning/Experience CurveEvery doubling of the cumulated Revenue of a product results in a cost lowering potential between 10 and 30%
Uni
t cos
ts
Cumulated volume and market share
Market price
20% Decline
30% Decline
Break-Even AnalysisEvaluation model to determine the sales volume required to achievethe break-even point
Cos
t of s
ales
€
QuantityBreak-even quantity
loss
Break-even sales
0
profit
Revenues
Total cost
Variablecosts
Fixedcosts
Break-even-Point
Marketing / Controlling - ExperienceVolume related cost reduction (cost reduction effect)
dynamic
static
Learning effects(knowledge collection)
Technical development
Rationalisation / standardisation
Favorable procurement
Economies of scale Degression offixed costs
experiences
Marketing Strategy - Cost FactorsCost factors that should be considered in a marketing strategy
Transport Storage
Adve
rtise
men
t
Financing
Sales
MarketingStrategy
Placeholder for your own text Insert your own text here
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Placeholder for text
Placeholder for your own text
Price Differentiation and Profit PotentialExhaustion the profit potential through price differentiation
Price
Sales
B
A C
Your sales
Unit cost Your price
Lost profits
Your profits
Types of price differentiation4 types according to various characteristics of differentiation
Customer-related price differentiation
Demographic characteristics: age sex size of household
Socio-economic characteristics: income profession education business
Psychological characteristics: lifestyle personality
Regionalprice differentiation
Different prices in two or more regions or countries ->
By partitioning the markets of each other (clients can’t obtain market overview)
Temporalprice differentiation
Customers pay different prices for the same performance as a function of the day, week or year
Usage-relatedprice differentiation
Price differentiation according to applications such as for example Fuel oil for heating / diesel for motor vehicles ->
Difficult to implement because it’s rarely seen in practice
Distribution / Sales
Comparisson of the classical (above the line) and the “non-classical” (below the line) communication instruments
Marketing - Communication Instruments
Below The Line (BTL)
Sponsoring
Event marketing
Exhibitions / Trade fair
Product placement
Promotions
Direct marketing
Mobile marketing
Online marketing / Search engines
Viral marketing / Guerilla marketing
… further instruments
Alternative marketing
Above The Line (ATL)
Classical advertisement
Print media
Radio / TV / Movies
Outdoor advertisement / Billboard advertisement
Classical marketing
Public relations
Advertising MeasuresAdvertising types in classic media and online
Classic Media
Direct mail Events
Movies Posters
PR Print media
Sponsoring Telephone/Fax
Teletext TV & Radio
Online-Medien
Affiliate - program Banner campaign
E-Mail marketing Keyword advertising
PR Mobile marketing
Sponsoring Product serarch engines
Teletext
Comparisson of the classical (above the line) and the “non-classical” (below the line) communication instruments
Marketing - Communication Instruments
Classical marketing- recognizable for everybody
Above The Line (ATL)
Below The Line (BTL)Alternative marketing- mainly visible only for targeted groups
Classical advertisementPrint mediaRadio / TV / MoviesOutdoor advertisement / Billboard advertisement Public relations
SponsoringEvent marketingExhibitions / Trade fairProduct placementPromotionsDirect marketingMobile marketingOnline marketing / Search enginesViral marketing / Guerilla marketing
Purchase Decision Process PhasesGraphical representation of the five phases of an extensive buying decision process (real purchasing decision)
Information searchoffline / online
Testing of alternatives regardingsuitability and satisfaction of the purchase need (requirement / demand)
Acquisition decision, if the necessary purchasing power is available.
Demand or lack recognition (motive)
Evaluation, feedback,service
Purchase Decision
SearchPhase
Eevaluationand
SelectionPhase
PurchasePhase
Excitation Phase
RepurchasePhase
Diffusion model by RogersDistinction of customers for their willingness to adopt a new product
t + σt - 2 σ t - σ tAdoption time
Adopter
2,5% 13,5% 34% 34% 16%
Innovators(Pioneers)
Early adopter
Early majority
Late majority
Straggler
Pyramid of Needs according to MaslowRepresentation of hierarchies of different levels of needs
Self-realization
Need for recognition
Social needs
Security needs
Basic physiological needs
Adventure, independence
Power, status, recognition
Love, friendship, membership
Protect the health,Protection of belongings
Eating, drinking, sleeping, sex
SOR- Model according to Howard & ShethStimulus-response scheme with assumptions about perception and informationprocessing (learning effects)
S(stimulus)
O (organism) R(response)
Hypothetical constructs
Perception constructs Learning constructsInput variables Output variablen
search behavior
attention
stimulusambiguity
perceptivedistortion
Einstellung
security
motives electoralcriteria
brand knowledge
satisfaction
intention to buy
purchase
intention to buy
attitude
brand knowledge
attention
Information fromcommercial sources
quality price peculiarity service availability
Information fromsocial sources
family friends and
acquaintances colleagues
Procurement Center ModelRoles in the purchase decision-making in the corporate sector
GatekeeperSecretary
Decision makerManager
BuyerEmployee
UserEmployee
InfluencerManagement consultant
Gatekeeper
Informationcollection
comparison of offers decision-making
preparation
Decision maker Buyer User Influencer
purchase decision vendor selection
Purchase Price negotiations,
discounts, and quantities
delivery conditions
suggestions for purchase
assessment after the purchase (qualitatively)
criteria formulation for selection and evaluation of offers
Sales Development - Options
Level 1 Level 2 Level 3 Advantages Disadvantages
No surcharges
Building up own competence
Faster market access
Faster market access
No competence
Short-term not possible
No customer relations
Partners optimize first
Distribution options
Own distribution
Foreign sales
Use of existing distribution
Construction of new distribution
Distribution order
Use of distribution partners
Customer Relations
Copy Platform / Copy StrategyModel to develop an advertising argumentation
Promise of usagetone, kind of approach
Justification of performance of product or company
Six different options of interpersonal interaction
Win- Win- Situation
Supplier interest
Cust
omer
inte
rest Win / Lose
(only one partner wins)
Lose / Win(only one partner wins)
Win / Win(both partners win)
Lose / Lose(both are deprived)
Compromisewhich both agree on
No business
optional
optional
Customer StrategiesOffensive or defensive organization of a company's customer strategy
Customer Strategies
offensive defensive
Win new customers
Commit existing customers
Expand market
Increase market share
Build hurdles against provider switch
Increase customer satisfaction
Model of a one-step communication / information transmission
Market Communication - One step Model
Informationtransmission RecipientSender
Intendedsignal
Codedsignal
Advertisingmedium
The sender has to ensure that the recipientcan decode the message correctly.!
Feedback
Receivedsignal
Decodedsignal
Behavioral effects
Model of a one-step communication / information transmission
Market Communication - One step Model
Information transmissionAdvertising message
Sender
Intendedsignal
Codedsignal
Advertiser
Advertisingmedium
The sender has to ensure that the recipientcan decode the message correctly.!
Feedback
Receivedsignal
Decodedsignal
Behavioral effects
Recipient
Customer
Model of a two-step Communication / Information transmission by mass media
Market Communication - Two Step Model
Opinion leaders areinfluenced by experts
Opinion leader is the central element. He obtains a mediating role wherehe passes on information to advertising subjects in his social environment.!
Members of the "followers“-group
are influenced by theopinion leader
Mass media Opinion leader "Passive" audienceMass
communication
Personal
communication
Customer Satisfaction - GraphicGraphic of customer satisfaction as a result between expectation and perceived performance quality (Customer satisfaction = B / A)
Process of comparison
Individual(subjective)
expectation of Customer
Perceived product- / service quality
AB
A product leads to customer satisfaction if it is capable to satisfy customer‘s requirements (Expectations-Experience)
Comparison
Customer Satisfaction
On Purchase Usage
Accord with the expectations that a customer has on the purchase of the product
Expecrations that are made during the use of the product.
Expectation of the product
Experience with the product
Product
Customer Satisfaction
Purchase Decision and Influencing Variables Representation of the factors that can influence a buying decision
Purchase Decision
„Bundle“ of(Product-) functions
Other factors (i.e.maintenance costs, service, etc.)
DesignQuality
Price
Time relevant availability on market
Type of function
Physical features(size, weight, etc.)
Experience of CustomerPlaceholder for own Subheadline
Customer
Invoice
Packaging
Delivery
Other communication
Fax, E-Mail
Phone conversation
Offer
Price list
Instructions
Usage of goods
Service visit
Ad
Brochure
Data sheet
Vendor contact
Product presentation
Purchase Decision Process - CircleInteraction cycle and phases of the purchase decision processes
Purchase Decision Process
Order Inquiry
Submit tender to customer
Offer preparation with cooperation partner
Order handling Pre- acquisition
Bidd
ing
phas
e
Neg
otiati
ons w
ith
cust
omer
s pha
se
Development Stages of CustomersRepresentation of the different stages of customers with increased customer satisfaction and customer loyalty
Suspected / PromisingNew customer (prospective)
First-time customern
Repeated customer
Exclusive customer
Active intercessory customer
Integrated partners
Qualified new customer with potentially strong interest in the product or service. Existing financial resources.
If necessary procurement from suppliers or competitors.Customer loyalty strategies to make him repeated purchases.
Purchase only from a provider / your company and don’t accept competitive products.
Use of CRM tools e.g. membership in the customer club. Transfer positive aspects about the company / product to other potential customers
Active cooperation between customer and company (especially B-to-B)
Cust
omer
satis
facti
on
Development Stages of CustomersRepresentation of the different stages of customers with increased customer satisfaction and customer loyalty
Suspected / PromisingNew customer (prospective)
First-time customern
Repeated customer
Exclusive customer
Active intercessory customer
Integrated partners
Increasing customer satisfaction
1 n?
Value that the customer is prepared to pay for the services of a company
The Value ChainSu
ppor
t Acti
vitie
s
Infrastructure management
Personal management
Technology development
Procurement
Input logistics Operation Output
logisticsMarketing and Sales Service
Marge
Mar
ge
Main Activities
DAGMAR-FormulaStep model of advertising effectiveness and advertising success
Theory based on the assumption that advertisement doesn’t only have economic objectives but that it also has to meet particular communication tasks.The advertisement goes through several levels of consciousness with each customer:
Contact Is the advertising recognized?
AcceptanceIs the promotional information recognized quickly?
Understanding Is the advertising message instantly understood by the target group?
StorageIs the core message easily absorbed?
AttitudeIs the advertising message credible, likeable, prestigious?
ActionPurchase due to the positive perception of the consumer.
DAGMAR
AWARENESS COMPREHENSION CONVICTION ACTION
Visualize core competences as a matrix with evaluations according to increase in value for the company and customer satisfaction
Core CompetencesIn
crea
se in
val
uehi
ghm
ediu
mlo
w
Customer not satisfied satisfied amazed
Core competences
Potential key skills (ressources)
R&D
Production
Sales
ServiceProcurement
Logistics
Timing and phases of the customer life cycle (customer relationship)
initiationCustomer acquisition- Initiation Phase- Socialization Phase
Customer loyalty- Growth Phase- Maturity Stage
Customer recovery- Exposure Period- Resolution Phase- Abstinence Phase
strength /Intensity
(Quality)the customersrelationship
development
extension
stability
termination
duration ofcustomer relationship
Customer Lifetime Circle
Customer ProfileCustomer profile analysis according to sales and number of customers
Number of customers
Sales in %100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%10 50 10020 30 40 60 70 80 900
10 Customers make50% of the sales
The majority of the customer accounts
for less than 10% of sales.
CRM- Functional ChainA CRM- busines model should relate to a functional chain
Customern-Orientation
Qualitäts-Orientation
Customern-zufriedenheit
Customern-bindung
Customern-wert
Unternehmens-erfolg
Company's entire contact chain from initial contact to the re-sales contact
First Contact
opinion making
Pre-Sales-Contact
consulting quotationpurchase
negotiations
Sales-Contact
order purchasedelivery
After-Sales- Contact
usage of the productservice
Re-Sales- Contact
repurchase
Customer Lifetime Circle
Interested Party Customer Regular Customer
CRM - Contact Chain
Customer Relationship Marketing (CRM) is a management approach that focuses on the systematic development and the maintenance of customer relationships
This process runs through the following 5 phases:
Accost
Hello
Inform
iMaintainWin Handle
CR-Marketing - Phases
Brand / Corporate Identity
Corporate Identity vs. ImageDifferentiation of two perspectives
CorporateIdentity Image
Image from inside Image from Outside
Company
Branding policy - Requirements for a BrandMajor tasks of branding policy: development of brand names and trademarks
1 Brand name/ marking
Product designPackagingTrademark
2 Brand protection
Protectability of branddifferentiation from
other brands
3 Distinctiveness
Difference in performance compared with competitive
offerings
4 Standards
Standardized QualityConsistently high Quality
5 Price stability
No specials, action prices or sales
6 Availability
Availability and widespreaddistribution
7 Publicity
Perception and recognition in the market through
advertising
Criteria and characteristics of a brand
Differentiation of TrademarksExamples according to trademark types
Word signs Word-Image Trademark
Recognition by self-developed script. Easily represented in all media.
Highest conciseness bylogo and illustration of the peculiarity of the offer.
Graphic trademark
Only work if you about to be published across years (through advertising)
Corporate IdentityThe total of all communication political measures, the behavior, appearance and market communication of a company
CorporateIdentity
Corporate IdentityDetailed presentation of the three activities of a company, aligned upon a corporate philosophy
Internal and external corporate communication: press releases, ads, posters, TV spots, staff newspaper, customer magazine, website, banners, Open house, company celebration, trade show appearance, packing design
Appearance:logo, fonts,
color, layout
Behavior from inside to outside:to employees, customers and suppliers
Graphics
Competition - GraphicEnter your subheadline here
Customer
Own Company
C1
C2C3 C4 C5
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Graphic - Marketing vs. Strategy Signs
MARKETING AVE
STRATEGYST
Marketing - Buzzword CubesEnter your subheadline here
MM M AA NNRR EEKK
TTA II
GGG
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Marketing - Buzzword
MA
RK
ET
IN
G
S
RA
TE
GY
MARKETING
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Graphic - Mouse Cursor „Marketing“
Graphic - Flowchart Sale OptionsEnter your subheadline here
Sale
Yes
No
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Puzzle - Marketing 4P‘s
Place
Promotion
Price
Product
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