Marketing

Preview
1. What is marketing?

2. How are markets analysed?

3. What product can I sell where at what price? 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
main roles: advertising (advertising and promotion managers) selling (sales representatives/sales force) but also:

product development
(brand and product managers)

packaging
(packaging designers)

pricing
(pricing specialists)

distribution
(sales personnel)

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) Segmentation
niche segment

individuals

b) Targeting:

Who are my customers?

What is my main selling point?

c) Positioning:

2. Marketing mix planning (4 P)

= developing a tactics to achieve strategic aims aim: to make customers from the target group buy elements: a) Product b) Price c) Place d) Promotion

3. Evaluation and control

whether or not it was successful

= looking back at the entire process to find out

Why control? planning is no guarantee for profit markets change constantly strategies not always effective

Tools:
a) b) c) d) Annual-plan control Profitability control Efficiency control Strategic control

Review

1. Market analysis (STP)

Segmentation Targeting Positioning Product Place Price Promotion

2. Marketing-mix planning (4 P)

3. Marketing control
Annual-plan control Profitability control Efficiency control Strategic control

a) Product
Product development
traditional economies: same things produced and consumed
nowadays: - products have a life cycle - product range is constantly expanded - find out what target market desires Consequence is adjustment of: - production - research & development - personnel administration - finance - public relations

Packaging

Branding
create clear message create credibility involve emotionally motivate invite user loyalty

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b) Price
Pricing strategies:
1. Market determines the price
2. Price as an expression of quality 3. Price as a method of gaining market share

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c) Place
Production site

(distribution)

Warehouse

Wholesaler

factory outlet mail order house internet TV shopping door-to-door selling consumer Retailer
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c) Promotion
Aims:
communicate with customers

influence customers

4 major tools:
1. 2. 3. 4.

Sales force Advertising Sales promotion Public relations

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1. Sales force
Representatives who advertise for and sell products they personalize the promotion process 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
is a short-term incentive (Anreiz) to buy a product/service Techniques: 1 price reduction 2. loyalty reward points 3. two for one

attracts brand switchers

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4. Public relations
Does not aim to increase sales directly but tries to boost the image of the company Techniques:
press conferences contests community events charitable events ecological projects foundations
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a) Annual-plan control

Tools:

1. Sales analysis

(Did we sell as much as we planned?) (Have we lost or gained market share?) (Did the marketing efforts pay?)

2. Market-share analysis

3. Marketing expense-to-sales analysis

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b) Profitability control
Do we have more earnings than expenditures?

Strategies:
few expensive products and few customers

many cheap products and many customers

Aim: Which of my products is the most profitable?

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c) Efficiency control
Are my marketing methods profitable?

Example: Avon Lady (sales representative)

how many doors in what time? how many products sold?
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d) Strategic control
Is my marketing program effective over a long period of time? marketing philosophy
Positioning USA: big and powerful

after few years: Is this positioning still OK?

information policy - enough advertisement? - enough promotion?

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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

17% 28% Gucci 13% Joop Dolce & Gabbana Kuniberg

42%

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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): 200.000 sales revenues: 200.001 => We have a problem!!!

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