MARKETING APPROACHES/STRATEGIES enhanced sales force efficiency and effectiveness

TRADITIONAL improved pricing

一 PRODUCTION CONCEPT customized products and services
assumes that customers prefer products that are improved customer service efficiency and
inexpensive, affordable, and widely available effectiveness
individualized marketing messages; campaigns
一 PRODUCT CONCEPT
assumes that customers will always prefer and CUSTOMER LIFETIME VALUE
patronize products of high quality 一 forecasted sales or profits that a company can derive from
consumers will favor those products that offer the an entire span of the future relationship with a particular
most quality, performance, or innovative features customer.

一 SELLING CONCEPT MARKETING MIX

emphasizes aggressive selling and promotional PROMOTION
efforts 一 communication by marketer that informs, persuades, and
consumers and businesses, if left alone, will reminds potential buyers of a product in order to influence
ordinarily not buy enough of the selling company’s an opinion or elicit a response
products
一 ROLE OF PROMOTION IN THE MARKETING MIX
CONTEMPORARY
一 SOCIETAL MARKETING CONCEPT
includes considerations that protect customers
well-being and interests, as well as the interest of the
environment and society

一 RELATIONSHIP MARKETING CONCEPT

believes that all marketing activities are for the
purpose of maintaining, and strengthening meaningful
long-term relationships with customers

一 MARKETING CONCEPT
considers the needs of both the customer and the
product offered
一 MARKETING COMMUNICATION
CUSTOMER SERVICE
CUSTOMER - DRIVEN MARKETING
一 involves activities designed to enhance customer
satisfaction, or the perception that a product has met or
exceeded expectations
一 relationship marketing is a strategy designed to foster
customer loyalty interaction and long-term engagement
一 designed to develop strong connections with customers by
providing them with information directly suited to their
needs and interests and by promoting open
communication – Forbes

CUSTOMER SERVICE
一 process of ensuring customer satisfaction with product or SENDERS
service • inform
• persuade
CUSTOMER RELATIONSHIP MANAGEMENT • remind
一 process of managing an organization’s interactions with RECEIVERS
current and future customers • develop messages
一 BENEFITS • adapt messages
enhanced ability to target customers • spot new communication opportunities
integrated assistance across channels
一 GOALS AND TASKS OF PROMOTION . transit advertising

- NEW ADVERTISING MEDIA

. web sites
. e-mail
. blogs
. videos
. interactive games

• ADVANTAGES & DISADVANTAGES

INFORMATIVE PROMOTION
• increase awareness
• explain how product works
• suggest new uses
• build company image
PERSUASIVE PROMOTION
• encourage brand switching
• change customers’ perceptions of
attributes
• influence immediate buying decision
• persuade customers to call
REMINDER PROMOTION
• remind customers that product may be needed
• remind customers where to buy product
• maintain customer awareness
CONNECT PROMOTION
• form relationships through social media
• encourage transparent information exchange
• customers become brand advocates
- ADVANTAGES
. reach large number of people
. low cost per contact
. can be micro-targeted
- DISADVANTAGES
. total cost is high
. national reach is expensive for small
companies
product
PUBLIC RELATIONS
• evaluates public attitudes, identifies areas within
the organization that public may be interested in,
and executes a program to earn public
understanding
• FUNCTIONS
- maintain a positive image
- educate the public about the company’s
objectives
- introduce new products
- support the sales effort
- generate favorable publicity

一 PROMOTIONAL MIX SALES PROMOTION

combination of promotion tools used to reach the • marketing activities, other than personal selling,
target market and fulfill the organization’s overall advertising, and public relations, that stimulate
goals consumer buying and dealer effectiveness
• short run tool to stimulate immediate increase in
ADVERTISING demand
• most commonly distributed by traditional media,
though increasingly through non-traditional
media, such as websites, e-mail, blogs, and
interactive video kiosks in malls and
supermarkets

• ADVERTISING MEDIA
- TRADITIONAL ADVERTISING MEDIA
. television
. radio
. newspapers
. magazines
. pay-per-click advertising
PERSONAL SELLING
. banner advertising
• planned presentation to one or more prospective
. direct mail
buyers for the purpose of making a sale
. billboards

SOCIAL MEDIA
一 PROMOTIONAL GOALS AND THE AIDA CONCEPT
attention, interest, desire, action
model that outlines the process for achieving
promotional goals in terms of stages of consumer
involvement with the message
一 INTEGRATED MARKETING COMMUNICATIONS
the careful coordination of all promotional messages
to assure the consistency of messages at every
contact point where a company meets the consumer
一 FACTORS THAT AFFECT THE PROMOTIONAL MIX
NATURE OF THE PRODUCT
STAGE IN PLC
TARGET MARKET CHARACTERISTICS
TYPE OF BUYING DECISION
PROMOTION FUNCTIONS
PUSH OR PULL STRATEGY
PRODUCT
一 anything that can be offered to the market for attention,
acquisition, use, or consumption that might satisfy a want
or need
一 LEVELS OF A PRODUCT
CORE PRODUCT
• problem-solving services or benefits that
consumers are really buying when they obtain a
product
ACTUAL PRODUCT
• product’s parts, quality, level features, design,
brand name, packaging, and other attributes that
combine to deliver core product benefits
AUGMENTED PRODUCT
• additional consumer services and benefits built
around the core and actual products.
一 CLASSIFICATIONS OF PRODUCTS
CONSUMER PRODUCTS
• products bought by final consumers for personal
consumption
• SHOPPING PRODUCTS
- consumer goods that the customer, in the
process of selection and purchase,
characteristically compares on such bases
as suitability, quality, price and style
- examples: furniture, clothing, used cars,
major appliances
• CONVENIENCE PRODUCTS
- consumer products that the customer usually
buys frequently, immediately, and with a
minimum of comparison and buying effort
- examples: toothpaste, crackers, candy bars,
magazines, umbrellas during rainy season
• SPECIALTY PRODUCTS
- consumer goods with unique characteristics
or brand identification for which a significant
group of buyers is willing to make a special
purchase effort.
- examples: cars, custom-made suits,
high-tech photo equipment
• UNSOUGHT PRODUCTS
- consumer products that the consumer either
does not know about or knows about but
does not normally think of buying.
- examples: life insurance, phone plan, fire
extinguishers
一 THE PRODUCT LIFE CYCLE
 INTRODUCTION
• occurs when product first enters the marketplace
• promoting consumer awareness
• getting customers to try new product
• millions of dollars spent to educate consumers
• major task - getting product in the marketplace
GROWTH
• more competitors enter the marketplace
• adding distribution outlets
• product improves by adding flavors, features, etc.
• improved to stay competitive
• sold in more locations
MATURITY
• sales begin to slow down for the product
• repeat customers stop buying the product
• attracting new buyers is a challenge
• product has reached its peak
DECLINE
• sales and profits drop
• little to no marketing support
• product may be dropped by company
• there is no longer a demand for the product
一 HOW STAGES OF THE PRODUCT LIFE CYCLE
RELATE TO FIRM’S MARKETING OBJECTIVES AND
MARKETING MIX ACTIONS
PRICE
一 FACTORS
INTERNAL FACTORS
• marketing objectives
• marketing-mix strategy
• costs
• organizational considerations
EXTERNAL FACTORS
• nature of the market and demand
• competition
• other environmental factors (economy, resellers,
government)
一 PRICING STRATEGIES
PENETRATION PRICING
• a business will introduce a product/service at a
lower price than the normal price to attract
customers
• example: C2 Solo was first introduced at 8 pesos
instead of 15 pesos
PRICE SKIMMING
• this is when a business will have a unique
product and be able to charge a high price for an
amount of time
• when the iPhone was introduced, Apple were the
market leaders so could charge what they
wanted
STATUS QUO PRICING
• a business will charge a similar price to its
immediate competitors
• example: a supermarket may decrease the price
of petrol and then the other supermarkets in
direct competition may copy
PLACE
一 DISTRIBUTION AS A COMPETITIVE STRATEGY
mass customization requires a different distribution
strategy
rapid pace of markets requires minimizing products
held in inventory
low cost distribution (e.g. the internet) is a powerful
tool for value creation
一 DISTRIBUTION TRENDS
collapse of the middle - bundles and value-added
solutions
emergence of new customer groups
migration within the value chain
redefinition of the product/service (e.g., Starbucks and
coffee)
一 DISTRIBUTION CHANNEL OPTIONS
DEFINITION OF AN EFFECTIVE CHANNEL
• inventory
• ownership
• negotiation
 • gathering of market information
• financing and payment
• risk management

NEED FOR INDIRECT CHANNELS TO PROVIDE

VALUE FOR MANUFACTURERS
• CHANNEL ASSEMBLY
- manufacturers ship semi-finished products to
distributors
- build products based on demand

• CO - LOCATION
- distributor’s employees work from vendor
manufacturing site to ship completed
products to resellers

DISTRIBUTION STRATEGY
• TRADITIONAL CHANNEL

• DIRECT CHANNEL

• E-COMMERCE

INTERMEDIARIES
• aggregate heterogeneous goods into a line of goods
• break bulk
• provide customer/market information to
• the producer/manufacturer