MarketingMarketingPreview
3. What product can I sell where at what price?
2. How are markets analysed?
1. What is marketing?
4. Have my marketing measures been effective?
Definition
MARKETING includes all the activities needed to direct the flow of goods and services from producers to consumers.
at least two parties each has something to offer must be able to communicate must be able to deliver parties must be free to accept or reject offers
Roles of marketing
but also:• product development (brand and product managers)
• packaging (packaging designers)
• pricing (pricing specialists)
• distribution (sales personnel)
main roles:• advertising (advertising and promotion managers)
• selling (sales representatives/sales force)
Marketing Process
three elements:
1. Market analysis (Who will buy?)
2. Marketing-mix planning (What? Where? How much? How?)
3. Marketing control (Have we been successful?)
1. Market analysis (STP)
a) Segmentationsegmentniche
individuals
b) Targeting: Who are my customers?
c) Positioning: What is my main selling point?
= developing a tactics to achieve strategic aims
elements:
a) Product
b) Price
c) Place
d) Promotion
aim: to make customers from the target group buy
2. Marketing mix planning (4 P)
= looking back at the entire process to find out whether or not it was successful
Why control?• planning is no guarantee for profit• markets change constantly• strategies not always effective
Tools:a) Annual-plan controlb) Profitability controlc) Efficiency controld) Strategic control
3. Evaluation and control
1. Market analysis (STP) Segmentation Targeting Positioning
2. Marketing-mix planning (4 P)
Product Place Price Promotion
3. Marketing control Annual-plan control Profitability control Efficiency control Strategic control
Review
a) Product
nowadays:
- products have a life cycle
- product range is constantly expanded
- find out what target market desires
Consequence is adjustment of:
Product development
traditional economies: same things produced and consumed
- public relations- finance
- personnel administration - research & development- production
Packaging
• create clear message• create credibility • involve emotionally • motivate• invite user loyalty
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Branding
b) Price
Pricing strategies:
1. Market determinesthe price
2. Price as an expression
of quality3. Price as a method of
gaining market share
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c) Place (distribution)
Production site Warehouse Wholesaler
Retailer
- factory outlet - mail order house- internet- TV shopping- door-to-door selling
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c) Promotion
Aims: communicate with customers
influence customers
4 major tools:1. Sales force 2. Advertising3. Sales promotion4. Public relations
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1. Sales force
they personalize the promotion process
Representatives who advertise for and sell products
effective at selling complex goods
most expensive promotion
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2. Advertising
Presents a reason to buy a product/service
Media:
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3. Sales promotion
attracts brand switchers
is a short-term incentive (Anreiz) to buy a product/service
Techniques:
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3. two for one
2. loyalty reward points
1 price reduction
4. Public relations
Does not aim to increase sales directly but tries to boost the image of the company
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- contests - community events - charitable events - ecological projects
Techniques:
- press conferences
- foundations
a) Annual-plan control
Tools:
1. Sales analysis (Did we sell as much as we planned?)
2. Market-share analysis(Have we lost or gained market share?)
3. Marketing expense-to-sales analysis(Did the marketing efforts pay?)
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b) Profitability control
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• many cheap products and many customers
Do we have more earnings than expenditures?
Strategies:
Aim:Which of my products is the most profitable?
• few expensive products and few customers
c) Efficiency control
Example: Avon Lady (sales representative) how many doors in what time? how many products sold?
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Are my marketing methods profitable?
d) Strategic control
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Is my marketing program effective over a long period of time?
marketing philosophy
information policy- enough advertisement?- enough promotion?
Positioning USA: “big and powerful”
after few years: Is this positioning still OK?
1. Sales analysis
Comparison sales goals (100 units) actual sales (20 units)
_____________ discrepancies???
reasons
better product of the competitors decline of the economic situation wrong calculation
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2. Market share analysis
analysis of the competition on the market
Rates of selling beauty cases
28%
42%
13%
17%
Gucci
Joop
Dolce & Gabbana
Kuniberg
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3. Marketing expense-to-sales analysis
• How much did my marketing activities cost?• What sales numbers have these activities
generated?
Example: expenses (costs): € 200.000sales revenues: € 200.001
=> We have a problem!!!
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