Unit 7 Marketing

pp. 1-2/ Definitions

1. marketing mix 7. marketer

2. the four Ps 8. brand awareness
3. market 9. prestige pricing
segmentation 10.sales promotion
4. direct marketing 11.the tipping point
5. market niche 12.product life cycle
6. promotional mix
13.diversification 19.a B2B product/a
14.green marketing B2C product/a B2G
15.guerrilla marketing product
16.opt in 20.marketing
17.target market 21.a fifth and a sixth
18.product line P
22.product range
 p. 3 / Collocations
a. (allow a fine) market segmentation
b. run a sales promotion
c. the trend toward shorter product life cycles
planned obsolescence
d. abandon a diversification strategy
e. maintain brand awareness
f. underestimate the importance of packaging
g. spend a lot on green marketing campaigns
h. direct marketing
i. the tipping point at which something becomes
justified
j. a target market for a certain product
k. a promotional mix consists of
l. to grow beyond ones original market niche
p. 4 / Definitions
 p. 4 /A definition of marketing

the activity of presenting, advertising and

selling a companys products in the best
possible way:
The company invests heavily in the marketing of its
brands.
 p. 4 /A definition of advertising

the act of making a company, a product or a

service known to the public; the notices,
pictures and short films that a company uses to
tell people about itself and its products.

> Using /Appealing to the five senses!

 p. 4 / A definition of PR (Public relations)

the business of giving the public information

about a particular organization or person in
order to create a good impression:

Your website is a vital PR tool.

Branding
 p. 5 / Before you read
Starbucks No Longer a Luxury?
Positive or negative implications?

Starbucks raising the bar

ubiquity of Starbucks
Starbucks in a bind
high-end image vs. customer perceptions
availability and affordability of quality coffee elsewhere
Starbucks and competitors: prices
Misperceptions
A myth of the 4$ latte
Starbucks response: marketing strategy
cutting prices
diversification
 Marketing concepts & Starbucks

marketing strategy

Part of the Starbuck's new strategy is to debunk

the myth of a $4 latte.

brand association

Starbucks is perceived as a luxury brand.

 Marketing concepts & Starbucks

diversification

There aren't just hot drinks there are also

smoothies, food, equipment etc.

Starbucks is developing new products, such as

instant coffee Via.
 Marketing concepts & Starbucks

4 Ps: pricing

upmarket / high-end

The prices are generally considered to be high, although

Starbucks has made efforts to correct these
misperceptions.

(prestige pricing)
 Marketing concepts & Starbucks

4 Ps: place
Starbucks has a lot of stores in lot of locations,
almost to
the point of ubiquity.

(sales) promotion
discounted breakfast pairings
training the staff to emphasize thefact that most
Starbucks drinks are less than $3.
Advertising
p. 7 /Advertising effectiveness and
media
a good coverage of ads compete with
local markets other text
ads can be placed ads get thrown away
quickly (short life span)
ads can be cut out
and saved
p. 7 /Advertising effectiveness and
media

can target very ads must often be

specific audiences in placed months in
specialist advance
publications; cost is relatively
long life of ad high
(usually several
weeks)
p. 7 /Advertising effectiveness and
media
uses sight, sound very high cost
and motion;
reaches a wide
audience;
high attention with
no competition from
other material
p. 7 /Advertising effectiveness and
media
low cost may have low
can target specific attention because it
audiences is a background
medium
very flexible
audiences may not
good for local remember ad (only
marketing one physical sense
involved and nothing
to keep)
p. 7 /Advertising effectiveness and
media
high visibility and limited message
repeat exposure difficult to get
relatively low cost attention of
strong local focus audience for any
one specific ad
p. 7 /Advertising effectiveness and
media
if linked to a high cost
customer database consumers may
can be targeted at reject ad as 'junk'
very specific
markets
very flexible
ad can be saved
p. 7 /Advertising effectiveness and
media
connects a company many 'eyeballs' but few
with its customers at the 'click-throughs
precise moment they
are looking for a product
click fraud (clicks on
global coverage at a your advert arranged by
relatively inexpensive dishonest companies or
price competitors, not made
interactive by potential customers)
24/7
Hit (n.)
single request from a web browser for a single
item from a web server

Vs.
Click-through (n.)
when a user interacts with an advertisement
and clicks through to the advertisers website
p. 7 /Advertising effectiveness and
media
Criteria:
cost
visibility
exposure
how targeted they are
flexibility

interactivity?
p. 6 / Community building in online marketing

Quickly find:
1 sentence expressing the key idea (cf. the
headline)
benefits of community building for users
several simple ways in which online communities
can be built for your own marketing purposes
2 basic types of online relationships that
businesses can seek to build and exploit
2 basic options for businesses that wish to utilize
online communities and their respective benefits
for businesses and users
p. 6 / Community building in online marketing

1 sentence expressing the key idea (cf. the

headline)
There are different ways in which you can seek to utilise
online communities for your own marketing purposes.

benefits of community building for users

users feel part of the site by posting their own information
and responding to other users

several simple ways in which online communities

can be built for your own marketing purposes
the development of online chat rooms, discussion groups and
online events
p. 6 / Community building in online marketing

2 basic types of online relationships that

businesses can seek to build and exploit

2 types of customers and prospects:

B2C business-to-consumer & B2B business-
to-business marketplaces

consumer communities
business professionals subscribing to
discussion groups
that focus upon their own particular field
 p. 6 / Community building in online marketing
you operate in a specialist
field
>> setting up your own
user forum or online
community for other
people with similar
interests
users receive both the
information and the social
bonding
companies present
customised products,
forging relationships with
the individual members
there is already a well
established user
community in your area
of business
>> consider joining it
companies make other
users aware of the
products or services that
they offer
 pp.9-10 / Reading
Kotler on Kotler

questions Ks main points regarding the role

of advertising agencie
identifying the challenges involved
suggesting solutions

discussing the trends K forecasts from todays

perspective
 p. 9 / voc
Kotler on Kotler
He is the author of Marketing Management, one of the most widely
used marketing books in graduate business schools worldwide.
The average American is exposed to several hundred ad messages a
day and is trying to tune out.
James Bond used a Sony cell phone and prominently featured an
Omega wristwatch.
Products are also mentioned in novelsin fact, Bulgari
commissioned a whole mystery novel to be written called The
Bulgari Connection.
Celebrity endorsements. Michael Jordan's endorsements gave a
boost to Nike shows.
What is the main communication challenge?
 p. 9 / voc
Kotler on Kotler

There is a great deal of hype about integrated marketing communications.

Among the few mass audience vehicles are the Super Bowl and the
Olympics.
Google has developed a system to align paid-for ads next to topics being
searched by consumers.
Furthermore the message can be fresher and more believable. PR is better
equipped to create "buzz" about a new product or service.

 p. 9 / voc
Kotler on Kotler

Which of the alternative ways to capture audiences are used in

your country?
Public relations and word-of-mouth marketing are playing a
growing role within the marketing mix to build and maintain
brands.

 p. 12
cause (problem)
Americans exposed to too many ads
result
try to tune out
solution (if mentioned)
marketers must consider other methods
of getting consumer
attentions:sponsorships etc.
 p. 12
cause (problem)
consumers avoid advertising messages
result
hard to capture consumers attention
solution (if mentioned)
find new ways to capture attention
public relations and word-of-mouth
marketing
 p. 12
cause (problem)
separating marketing communication
tools
result
ineffective advertising
solution (if mentioned)
designate a Chief Communication
Officer
 p. 12
cause (problem)
TV channel proliferate and more
channel switching takes place
result
fall of TV advertising effectiveness
solution (if mentioned)
reduce TV advertising budgets and
concentrate on other media
 p. 12
cause (problem)
advertising limitation
result
traditional advertising works as a
monologue
solution (if mentioned)
setting up systems that enable dialogue
 p. 12
cause (problem)
mass advertising
result
not targeted enough
solution (if mentioned)
use channels that allow target
marketing, even one-to-one marketing;
more insistence on direct marketing
 p. 12
cause (problem)
different communication tools are
traditionally dealt with separately;
result
uneven budget allocation;
dominance of advertising over other tools
solution (if mentioned)
clear & consistent communication with
customers (communicating high quality)
integration of tools;
more reliance on PR
 p. 13 / E-marketing concepts
Ad Serving
Really Simple Syndication (RSS)
Hit
Web portal
User generated content (UGC)
Click-through
Pay Per View (PPV)
Cookie
Location Based Services (LBS)
 p. 13 / E-marketing concepts
A website or service that offers a broad array
of resources and services. They include
email, forums, search engines, and online
shopping malls.

Web portal
 p. 13 / E-marketing concepts
Software that allows you to flag website
content (often from blogs or new sites) and
aggregate new entries to this content into an
easy to read format.

RSS
 p. 13 / E-marketing concepts
A small text file on the users PC that
identifies the users browser and hence, the
user so they are recognised when they re-
visit a site.

cookie
 p. 13 / E-marketing concepts
Delivery of online adverts to an end users
computer by an ad management system. The
system allows different online adverts to be
served in order to target different audience
groups and can serve adverts across multiple
sites.

Ad Serving
 p. 13 / E-marketing concepts
Online content created by website users
rather than media owners or publishers -
either through reviews, blogging, podcasting
or posting comments, pictures or video clips.

UGC
 p. 13 / E-marketing concepts
Is an ecommerce model that allows media
owners to grant consumers access to their
programming in return for payment. Micro
payments may be used for shorter
programming whilst feature films may attract
larger sums.

PPV
 p. 13 / E-marketing concepts
A range of services that are provided to
mobile subscribers based on the geographical
location of their handsets within their
cellular network.

LBS
 p. 13 / E-marketing concepts
A single request from a web browser for a single
item from a web server.
Vs. When a user interacts with an
advertisement and clicks through to the
advertisers website.

Hit
Click-through (n.)