d2531 marketing-toolbox en ppt2007-2010

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


distribution policy

marketing mix

product policy

price 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)



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.


Corporate cultureInsert description and notes in key words.

Market Analysis - Company AnalysisCorporate potentials (3/6)

Development Production-technology-capacity-productivity


Marketing-marketing concept-standards-brands


-research/ development-know how-patent-development status


Market Analysis - Company AnalysisCorporate potentials (4/6)

Procurement Company- procurement systems- supplier relationship- purchasing power


-organization-value chain


Financing-capital requirements- investment intensity


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


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


- price per piece- market price relations- value chain


Advantages- product and performance advantages- innovations- protection against replicates


Product mix- revenue- profitability- age profile


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

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Internet

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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


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


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


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

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


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


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


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


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


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




Prod. development customer group 2

Advertisement customer group 2

Distribution customer group 2

Market researchcustomer group 2

Matrix Organization in MarketingEnter your subheadline here


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



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

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Placeholder for text

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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


Graphic - Marketing vs. Strategy Signs

MARKETING AVE

STRATEGYST

Marketing - Buzzword CubesEnter your subheadline here

MM M AA NNRR EEKK

TTA II

GGG


Marketing - Buzzword

MA

RK

ET

IN

G

S

RA

TE

GY

MARKETING


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

d2531 marketing-toolbox en ppt2007-2010

Documents

design engineer

company analysiscorporate

strategic

sustain market

absolute market

market field

marketing

company analysiscorporate