Professional Documents
Culture Documents
Body of knowledge
Marketing Communication is critical to any business optimum functioning, being the most efficient instrument in promoting your company, your products and services. It is the key of understanding that integrates the players of a market (organizations, clients, suppliers, etc) from top to bottom, bottom to top, and side to side.
Understand the importance of marketing and communication within the media business process Create a marketing orientation in your group or firm Understand the major marketing techniques and strategies Plan effective marketing programs, advertising campaigns, and sales promotions Develop an explicit marketing plan as integrated part of the companies business strategic plan Understand the importance of marketing communication, as a complex mix between advertising, direct sales, sales promotions, public relations, direct marketing, etc
What is Marketing?
The science ant the art of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals' and companies' goals
Marketing starts with the organization's mission:
Marketing Process
Analyze market opportunities
Course Structure
Marketing and Communication
I.
Chapter I
CUSROMERS
COMPETITION
MARKET OPPORTUNITIES
CUSTOMER Analysis
Social Forces
Personal Forces
Psychological Forces
Recognize a Need Search for more information Weigh the alternatives Decide to buy
Your newsletter doesnt provide financial information, so you need to subscribe to a new one
That newsletter have all the information the old one provided, plus a detailed section on finances
Determining that the price is right, concluding that you've done enough "shopping around," and subscribing the newsletter You may feel satisfied, disappointed, or even delighted with your purchase; you may unsubscribe to the new newsletter or decide to buy it again
Problem: How do your gather and use information about your target market? Answer: By RESEARCHING and EVALUATING
Reading newspapers, and trade publications Talking with customers, suppliers, and distributors Checking Internet sources Meeting with company managers
2.
3. 4. 5. 6.
Evaluating Consumers
Lengthy and complex decision process between your firm and the company
Pressure to protect the account to keep rivals from encroaching on your business
Purchasing staff members' differing interests, authority levels, ways of interacting with one another
An individual buyer's age, income, education, job position, attitudes toward risk
Attitudes and practices influencing the way people like to do business; for example, some people tend to emphasize the collective, not individual, benefits of doing business
Choose a supplier Negotiate the final order Assess the chosen supplier's performance
Understand Competition
Why should customers buy from you and not from competition?
You have to make it clear to customers what the benefits of your products are. That is, you must find, and sustain a competitive advantage that has meaning for your customers.
Analyze Competition
Strategies Objectives
Competition Analysis
Share of market
Share of mind
What percentage of customers name that competitor as the first one to come to mind?
Share of heart
What percentage of customers say they'd prefer to buy from that firm before any other?
2. If you cant be first in a category, create a new category you can be first in 3. It is better to be first in the consumers mind than to be first on the market
4. Marketing is not the battle of the products, but the battle of the consumers perceptions relative to the products
Chapter II
Customer Needs
Customer needs are the underlying force for making purchasing decisions
Unstated NEEDS
Goods
Experiences
Places
Ideas
Properties Organizations
Manage Demand
NO Demand Latent
Negative
Increasing
Declining Overfull
Full demand
Product
Consumers favor products that offer the most quality, performance, or innovative features.
Selling
We have to sell our products aggressively, because consumers won't buy enough of them on their own.
Company Focus
The design and constant improvement of superior products, with little input from customers
Using a battery of selling and promotional tools to coax consumers into buying
Societal marketing
Our task is to determine our target customers' needs, wants, and interests and to satisfy them better than our rivals do, but in ways that preserve or enhance customers' and society's well-being.
Company Focus
Target markets, customer needs, coordination of all company functions from the target customer's point of view
Building social and ethical considerations into marketing practices; balancing profits, consumer satisfaction, and public interest
Chapter III
PRODUCT
Product Aspects
1. The physical product
Positioning
Branding
MARKETING
Differentiation
Products physical distinctions
Form Features Performance quality Conformance quality Durability Reliability Reparability Style
Design
Branding
Implies a strong brand image
Attributes User Benefits
Personality
Values
Culture
Product Lifecycle
Marketing Objectives Market Strategies
Product Introduction
Low sales, high cost per Create product customer, no profits, few awareness and trial competitors Rising sales and profits, more and more competitors Maximize market share
Offer a basic product Use heavy promotions to entice trial Offer product extensions Reduce promotions due to heavy demand Diversify brands Intensify promotion to encourage switching to new brands Phase out weak products Cut price; reduce promotion
Product Growth
Product Maturity
Peaking sales and profits, Maximize profit stable or declining number while defending of competitors market share
Declining sales, profits, and number of competitors Reduce expenditure and "milk" the brand
Product Decline
Company's employees
Industry consultants and publications Market-research firms
Ask a number of qualified buyers to answer questions about their product preferences. Then invite them to look at a series of commercials or print ads that include one for your new product. Finally, give them some money and set them loose in a store. See how many of them buy your product.
Place your product in a number of stores and geographic locations that you're interested in testing. Test different shelf positions, displays, and pricing. Measure sales through electronic inventory control systems. This is test-marketing on a grand scale. Select a few representative cities, get your sales force to give the product thorough exposure in those cities, and unleash a full advertising and promotion campaign. See how well the product sells.
Test-market
Beta testing
Similar to alpha testing, but it is done in the product-development processwhen the product is close to be finalized.
Observe how much interest participants show in the product, how they react to various features, and how many express clear intention of buying the product
PRICE
Product Price
The price is the amount a customer pays for a product It depends on: Market share Competition Product identity Customer's perceived value of the product
Product Price
Product
Price
REVENUES
Positioning
Promotion
COSTS
Pricing Variables
1. Prices list 2. Discounts 3. Bundling 4. Payment terms and financing options
Pricing
Customers are more receptive to value, not to price. When they buy judging by price, they do it because they do not see significant differences between high price products with and low price products. Philip Kotler
Price Customization
Developing a product line Example: full color magazine and black and white cheaper version of the same magazine Controlling the availability of lower prices E.g. by making them available only in certain locations
Varying prices based on observable buyer characteristics Example: lower prices for old, loyal clients
Varying prices based on observable characteristics of he transaction E.g. quantity discounts could be offered if the situation were that big-volume buyers valued the product less than smallvolume buyers
PROMOTION
Advertising
Advertising forms
Print brochures or flyers Billboards Point-of-purchase ads Television and radio ads Website banners
Advertising Strengths
Inform (give information to the consumer) Persuade (influence the consumer to buy) Remind (maintain consumer awareness)
Sales Promotions
Sales Promotions forms
Coupons for product savings Contests Free trials Cash refunds
Direct Sales
Sales Promotions forms
The salesperson's persuades the consumer to purchase the product
Salespeoples tasks
Looking for new prospects Communicating face-to-face Selling Servicing Performing market research
Direct Marketing
Direct Marketing Supports
Printed, mailed marketing pieces Radio TV Telemarketing Faxes E-mail Web sites Online services
Identify prospects Decide which customers should receive a particular offer Deepen customer loyalty "Reactivate" customer purchases
Online Marketing
Online Marketing technologies
Internet Electronic Markets Electronic commerce Commercial online services
Cyber-Marketing
High amount of information available on companys websites and also on other websites Available 24 hour a day, 7 dais a week; offers solutions by phone, fax or e-mail; fixes problems from distance, through automatic diagnose Video-conferences with potential clients; on-line demonstrations/ presentations of the products Online newsgroups for interviews and discussions; online / by e-mail questionnaires
Client service
Sales
Market Research
Relationship Marketing
Relationship Marketing
Combination of traditional directmarketing media (mailings, radio spots, kiosks), new media (Internet and e-mail) and recent database technologies
consumer irritation
"Companies want my friendship, loyalty, and respectbut they're not giving me those same things in return!" "Companies treat their best customers like kings and queensand ignore the rest of their customers!" "Companies offer too many optionsI can't keep them straight in my mind!"
PR vs. Advertising
PR is credible; customers accept the message as helping and impartial Advertising became irritating and has no credibility; the more companies try to sell, the more customers reject the message Advertising is spatial (involves many channels and resources); but after the campaign is over, the return is tot as attractive as expected
PR is a linear (step by step) and long term process, which consolidates the brand value and the customer loyalty.
PR is oriented to others
PR vs. Advertising
PR does not involve high costs PR encourages new brands Advertising is costly Advertising encourages existing product lines extension Advertising is funny Advertising does not need to be creative; it has to work with ideas already present in consumers mind (due to PR) Advertising is visual Advertising dies
PR is serious
Placement (Distribution)
Placement/Distribution
Distribution refers to how the product gets to the customer Includes all aspects of distribution: The channel by which a product gets in touch with customer and the firm goes on market Which geographic region or industry To which segment (young adults, families, business people), etc
A Paradox
A high number of distribution channels ensures coverage of all targeted markets
To many distribution channels might be difficult to control. More, a conflict between channels is imminent.
Channel Management
1. Pay extra attention to proper design of contracts and other explicit understandings that can generate conflicts
2. Good communication
Almost always will me necessary to resolve issues since contracts cannot typically anticipate all the situation that may arise
Train and motivate employees to service customers well Develop an attractive physical (or virtual) environment in which to deliver the service
Differentiate the image associated with your service
4. Profits from different products, consumer segments or distribution channels are too low
Chapter IV
Marketing Plan
Marketing Plan details the actions necessary to achieve one or more marketing objectives A comprehensive marketing plan can be a vital component to any business plan
After marketing plans for brands are finalized and accepted, product category managers develop more general marketing plans for category of products, plans that include brands marketing plans.
Each new launched product/brand need a detailed plan that includes the new product definition, market-tests, launching campaign, etc.
It is essential to develop marketing plans for each country, region, city, and even neighbourhood.
Account managers will develop separate marketing plans for each high value customer.
4.
5. 6. 7.
Marketing Strategy
Marketing Action Plan Budget Procedures for Marketing Control Process
Chapter V
Understand how your company manages its marketing efforts Determine how you might best work with supervisors, peers, and direct reports in order implement marketing plan
INTEGRATION
Geography
The marketing department is divided into several units by region, markets and often by ethnic and demographic segments
Product or brand
Advantages: develops marketing mix for each product, respond quickly to changes, monitor smaller brands Disadvantages: possible conflicts
Customer Markets
A marketing manager supervises specialists (individuals, businesses) in a particular market segment
Customer Markets
Global operating units report directly to top management, not to an international division head
Looking for the source of a problem in the marketing function, the plan itself, the company's policies or culture, or in other areas Budgeting resources wisely, organizing work effectively, motivating others
Implementation
Evaluation
Chapter VI
Annual Plan
Profitability
Marketing controllers
Efficiency
Strategy
To ask whether the company is pursuing the best market, product, and channel opportunities