Developing marketing Mix

What is a marketing mix? What is the Promotion mix? What are communication objectives? What are communication mix stratergies?

What is a Product?
Types of Consumer Products

GENERIC term that Includes

Convenience Shopping Specialty Unsought

Goods Services Places Organizations People, etc..

Four Ps of Marketing

Marketing Mix

Product Price

Place

Target Market
Promotion

Elements of the MKG Mix that compose a cohesive MKG program Marketing manager
Product
Features Brand name Packaging Service Warranty

Price
List price Discounts Allowances Credit items Payment period

Promotion
Advertising Personal selling Sales promotion Publicity

Place
Outlets Channels Coverage Transportation Stock level

Cohesive marketing mix

Promotion Promotion Product Price

Place Place

The Promotional Mix

PR Direct MKG Personal Selling

Advertising Sales Promotion

Product
Place Price
Advertising Strategies

Promotion
4Ps

(Distribution)

Place

The Marketing Communications Mix (Promotion Mix)

Advertising
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor. Personal Presentations by a Firms Sales Force.

Personal Selling

Sales Promotion

Short-term Incentives to Encourage Sales. Building Good Relations with Various Publics by Obtaining Favorable Publicity. Direct Communications With Individuals to Obtain an Immediate Response.

Public Relations

Direct Marketing

Advertising Strategies

Basic Communication Model

Sender (Source)

Message

Channel (Medium )

Receiver (Consumer)

Feedback

Advertising Strategies

What are the 4 main Communication Objectives?

I P R C

Setting Communication Objectives

Informative Advertising
Inform Consumers or Build Primary Demand

Persuasive Advertising
Build Selective Demand

Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time

Advertising Objective

Comparison Advertising
Compares One Brand to Another

Reminder Advertising
Keeps Consumers Thinking About a Product

Changes in Advertising Objectives during the Product Life Cycle

Sales
Time

PreIntroduction
Define objectives and plan the promotional campaign

Introduction Growth
Develop product awareness, stimulate generic demand, and attract distributors primary demand advertising to get potential purchasers to try the product. trade advertising to introduce product Create product acceptance and brand preference if there are competitive products Extensive advertising expenditures emphasizing advantages of the product and brand

Maturity

Decline

General promotion objective

Maintain and enhance brand loyalty convert buyers and distributors of competitive brands Reminder and emotional advertising and promotions to promote repeat purchases and differentiate brands

Minimal expenditures just enough to phase product out

Advertising

strategy

Screen concepts, create advertisements , and plan media selection

Minimal advertising expenditures emphasizing low price to reduce inventory

Advertising Strategies

Communication Mix Strategies

Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand.

Strategy Selected Depends on: Type of ProductMarket &

Product Life-Cycle Stage

Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels.

SWOT

What is a SWOT Analysis?

5 Eyes Marketing Strategy

Past
Present

Future
Yourself

Competitors

Situation Analysis

S W O T

Things the company does well.

Things the company does not do well.

Conditions in the external environment that favor strengths. Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.

SWOT
Do not limit the S and W to the Product Opportunities: Do not describe what you will do. EG, develop a market

development strategy based on the growing senior population Avoid basic opportunities: population growth, economic slow down, health consciousness, obesity rate, gaz prices, Identify opportunities outside the product/consumer level

Threats: focus on specific competitors

Developing an Effective Marketing Program

Requires analyzing marketing problems/opportunities This analysis has 3 steps and is grounded in primary and secondary marketing research data
Customer Analysis Competitive Analysis Opportunity Identification Analysis of Organization Capabilities

3 generic strategies for achieving a differential advantage over competitors are available:

Product Differentiation Overall Cost Leadership Special Market Focus Offering Product Differentiation & Low Cost

Once an opportunity has been identified marketing strategy must be developed

BENCHMARKING = Analyzing Competitors

Identifying the companys competitors

Assessment of strengths and weaknesses of competitors.

Assessing competitors objectives, strategies, strengths and weaknesses, and reaction patterns
Selecting which competitors to attack or avoid

Competitive Leadership
Companies Gain Leadership Positions by Delivering Superior Value to their Customers Through These Strategies:
Product Leadership
Intel/Sony

Operational Excellence
Alaska Airlines/Dell

Customer Intimacy
Ikea/VW

Competitive Marketing Strategies

Marketing Strategy and Tactics

A marketing strategy is a means by which a marketing objective/goal is to be achieved, usually characterized by a specific target market and a marketing program to reach it.

Marketing tactics are detailed day-to-day operational decisions essential to the overall success of marketing strategies.

Strategies Lead to Tactics

Direct our promotion to males, ages 25 to 40 years old.

..

Strategy

Possible

Tactics

Advertise in magazines read by this group of people

Advertise on television programs watched by this group

Strategic Roles of Most Successful New Products

Strategic Role
Defend market share position Establish foothold in new market Preempt market segment Maintain position as product innovator Exploit technology in new way Capitalize on distribution strengths Provide a cash generator Use excess or off-season capacity
Percentage of responses

10%

20%

30%

40%

50%

Externally driven

Internally driven

STP
Segmentation Targeting & Positioning
Market Segmentation

Market Targeting

Market Positioning

Marketing Differentiation Strategy

A Undifferentiated Marketing
Company Marketing Mix Market

B Concentrated Marketing
Company Marketing Mix
Target 1 Target 2 Target 3

C Differentiated Marketing
Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3 Target 1 Target 2 Target 3

arketing strategies

The Marketing process

CAMMIS
Selling

Concept Development Analysis of market opportunity

Implementation

Market Strategy Design

Market testing

Analyzing the market opportunity

Understanding the mkt environment Understandin g consumer behavior Analyzing the mkt opportunity

Identifying mkt segments

Identifying target mkts

Environmental factors
Economic conditions
Competition Technology

Concept or an idea

Demographic forces

Social and cultural forces

Political & legal forces

Market stratergy design

The next stage of CAMMIS involves designing and planning the marketing mix elements which are Product Price Promotion Place and Positioning

Market testing

Marketing mix elements once designed need to be validated with the target segment. Most companies prefer to test mkt the marketing mix elements prior to launching in the product formally in the overall mkt.
Test mktg is done in a smaller area which is representative of the larger mkt in terms of presence of the target segment, availability of the desired distribution system and the right media.

Implementation

Once the mkt testing is conducted and any changes required are made, then the company goes in for the last stage of CAMMIS- the implementation stage. In this the marketing plan is implemented with all departments coordinating their activities to work towards it.

Marketing Plan

Marketing plan is complete method of conceiving and defining all activities that are to be carried out to implement the marketing process. In Other words it is the blue print for all the mktg activities such as Marketing objectives Market segmentation Target segmentation Marketing mix startegies Communication mix strategies

MARKETING PLAN HELPS IN

Providing a focussed approach to all marketing activities Helps to monitor the product performance in the market as per the plan Giving guidelines to other departments in the organization such as sales, production, promotion and personnel, to coordinate their activities and resources for achieving the defined marketing objectives

Marketing plans depending on the corporate requiremnts can be short term (for the period of 1 year ) Long term (more than 1 year)

Marketing objectives
Marketing plan is an instrument thru which you can achieve your marketing objectives. Marketing objectives of any organization are derived from the overall corporate objectives of the organization. In Effect, all departments, including the marketing, plans its activities and sets its objectives in line with the corporate objectives Business strategic planning includes Corporate mission Corporate objectives Corporate strategies

Fashion marketing planning process

Mission statement- Providing fashionable evening wear and accessories. Providing design

choice and value" Dressing the urban and modern women and meeting her daily needs Corporate objectives -are broader and include all aspects of of the company s operations such as production, personnel and safety, as well as marketing objectives. Marketing objectives- Should be clear, written, measurable , attainable, Specific and time oriented (Our aim is to increase sales turnover from $31.3million to $ 35.7 million in the next financial year ,to increase the gross margin by 5.2% and to increase the share of sales via our corporate website from 4.3% of sales turnover to 8.5% within the next six months.) Marketing audit- Periodic reviews of the marketing goals and performance are known as marketing audits. It involves a set of questions that are asked to determine the status of the firm in relation to its objectives, customers, competition and marketing environment (SWOT) Marketing strategy -If the marketing objective describes what has to be achieved ,then the marketing strategy details how the objectives are to be achieved. Marketing plan
Implementation Evaluation & control

MKG PLAN

I. MACRO ENVIRONMENT ANALYSIS USING SWOT Internal Analysis: Strengths & Weaknesses External Analysis: Opportunities & Threats II. CUSTOMER PROFILING

Geographic, Demographic, Psychographic, Behaviour

COMPITITOR PROFILING IV. MARKETING OBJECTIVES The goals to be achieved through the marketing plan in such areas as customer satisfaction, sales volume target mkt or market share V. MARKETING STRATEGIES Overall Strategies & STP - used to achieve the objectives VI. IMPLEMENTATION PLAN 4Ps - that will be used to achieve the objectives