Welcome

MARKETING STRATEGY AND MARKET RESEARCH

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Program of the week-day by day:
• Monday: Marketing strategy and marketing environment • Tuesday: Marketing strategy and business plan • Wednesday: Market research • Thursday: Marketing mix: definition and creation • Friday: Marketing management and marketing plan
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Programme for Monday
Agenda – topic of the day:
Marketing strategy: definition, form, content, different types  Objective of the day: 3. To learn how to define marketing strategy: segmentation, differentiation and positioning 4. To learn how to conduct SWOT, PEST  Working hours 16:00 – 20:00  Individual counselling 20:00 – 21:00  Reflexion form 
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Is Marketing = Sale? Is Marketing = Promotion?

NO!!!
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MARKETING is:
• having the right product • on the right place • in the right time ... satisfying consumers needs, in relation to competition, with accomplishing business profitability.
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Company orientations in relation to market

• Production concept • Selling concept • Marketing concept

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Market segmentation ...

... is process of market partition on particular parts or groups according to mutual criterions, with aim to identify target groups.

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Market segments:
Market segments Business market segments
– – – – .... .... .... ....

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Steps:
Market segmentation
1. Identify basis for segmenting market 2. Develop segment profiles

Market Targeting
3. Develop measure of segment attractiveness 4. Select target segments

Market positioning
5. Develop positioning for target segment 6. Develop marketing mix for each segment

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Geografical segmentation
• World, region or country • City • Density of climate

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Demographical segmentation
Dividing the market into groups based on variables such as:
– – – – – – – – – – Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nacionality

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Psychografic segmentation
Divides customers into groups depending on: • Social class • Lifestyle • Personality

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Behavior segmentation
Divideng the market into groups based on variable such as: • Occasions • Benefits • User status • User rate • Loyalty status • Readiness stage • Attitude toward product

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Targeting
• First step – segmentation • Second step – targeting

 Mass marketing  Differentiated marketing strategy  Concentrated marketing

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Mass Marketing
same product to all consumers
(no segmentation, i.e. Coca Cola)

Segment marketing
different products to one or more segments
(some segmentation, i.e. Marriot)

Niche marketing
different products to subgroups within segments
(more segmentation, i.e. Standard or Luxury car)

Micro marketing
products to suit the tastes of individuals and locations
(complete segmentation)
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Differentiation through: • • • • Product Services Image Personnel

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Positioning Strategy …the way the product is defined by potential consumers - the place the product occupies in consumers minds relative to competition

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Choosing a positioning strategy • Step 1: Identify list of your competitive advantages • Step 2: Select right competitive advantage of your products/services • Step 3: Comunicate with the market and present the position of your company
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Making positioning strategy

• depends on market conditions, on position of competition • “me too” • “far away of competition”

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Identifying competitive advantages...
• Key to winning and keeping customers is to understand their needs better than competition. • Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits.
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More competitive advantages...
Product diferentiation i.e: features, performance, Style, design, attributes Services differentiation i.e: Delivery, instalation, repair services, customer training services Personel diferentiation i.e: hiring, training better people than competitiors do
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Image differentiation

i.e: symbols, atmospheres, events

Exercise: Segmenting Your market!

Time: 60 min 15 min. – preparing 10 min. – for presenting of each group
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Break/networking
18:00-18:20

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Marketing environment and competitor analysis • PEST analysis • SWOT analysis

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PEST analysis

• • • •

Political factors Economic factors Socio-cultural factors Technological factors

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Political/legal • • • • • • Legislation Environmental protection laws Taxation policy Employment laws Government policy Others
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Economic factors • • • • • • Inflation Employment Disposable income Business cycles Energy availability and cost Others
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Socio-cultural factors • • • • • Demographics Social mobility Lifestyle changes Levels of education Others
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Technological factors • • • • • • New discoveries and innovations Speed of technology transfer Rates of obsolescence Internet Information technology Others
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SWOT analysis • • • • Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external)

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Strengths:
• • • • • • • experience in production wide assortment of products high level of capacity utilization high quality of product quality services location qualified management team
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Weaknesses:
• • • • • • • hang-over technology small production capacity high costs of human resources uncompetitive product poor design and packaging poor quality system location
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Opportunities: • • • • • revival of economy activities regulations modifications tendency of consuming product growth market development – via internet bigger purchasing power of population
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Threats: • • • • new competitor on domestic market price war with competitors competition has new product/service new technology development

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Exercise: SWOT analysis
Time: 50 min. 10 min. – preparing 10 min. – for presenting each group
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Thanks for your attention
• Final remarks • If you want to speak on your own business idea: 20:00 hours is the time (max 21:00 hours) • Tomorrow’s theme is Marketing strategy and business plan • See you tomorrow 16:00 hours
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Welcome

MARKETING STRATEGY AND MARKET RESEARCH

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Programme of the week-day by day:
• Monday: Marketing strategy and marketing environment • Tuesday: Marketing strategy and business plan • Wednesday: Market research • Thursday: Marketing mix: definition and creation • Friday: Marketing management
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Programme for Wednesday
Agenda – topic of the day: Market research Objective of the day: 1) To understand the importance of market research 2) To learn how to conduct market research Working hours 16:00 – 20:00 Individual counselling 20:00 – 21:00 Reflexion form 40

Market research
Market research is process of gathering and analyzing information about customers, competitors and market, in order to develop best possible product/service for customers.

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Research help You determine:
• • • • • • • Target market Location Sales projections Demanded product and service Pricing strategy Appropriate advertising Credit policy
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• The purpose of market reseach is to help companies make better business decisions about the development and marketing of new products. • Market research represents the voice of the consumer in a company
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A list of questions that can be answered through market research:
• • • • What is happening in the market? What are the trends? Who are the competitors? How do consumers talk about the products in the market? • Which needs are important? • Are the needs beign met by current products?
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Types of market research:

• Primary research (collecting original data) • Secondary research (using already made research)
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Primary research
• Quantitative research – Surveys – Observation – Experimentation • Qualitative research – Personal in-dept interviews – Focus groups – Projective techniques
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Where to find information?
• • • • • • • Republic Statistical office Government of Republic of Serbia Chamber of Commerce Newspapers Computer databases Trade associations Internet
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Lack in secondary research

• Expired information • Questionable data • Data is rarely available in requested form
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Research instruments • Questionnaires
– Open-ended questions – Close-ended questions (yes/no)

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The Market research process
3. Defining the problem and research objectives 4. Developing the research plan for collecting information 5. Implementing the research plan and analyzing the data 6. Interpreting and reporting the findings
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1. Defining the problem and research objectives
Exploratory research (gathers preliminary information that will help define the problem) Descriptive research (describe things as market potential, consumer attitudes etc.) Casual research (cause and effect relationships)
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2. Developing research plan Research plan development follows these steps: - Determining specific information needs - Gathering secondary information - Planning primary data collection
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Planing primary data collection
• Preparing sampling plan
– Sampling unit – Sample size – Sampling procedure

Choise a data Collection Method
– – – – Personal interviews Telephon research Mail research E-mail research

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Personal interviewing
• Advantages:
– Easier to get and hold attention > more questions can be asked – Permits question clarification – Can be supplemented by personal observation

• Disadvantages:
– Most expensive – Technical and administrative planning and supervision needed – May allow interviewer bias – May allow respondent bias
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Surveying by telephone
• Advantages:
– Quick – Permits question clarification – Can be cheaper than mail, if restricted to local area

• Disadvantages:
– Restricted to telephone owners – Must be short and not too personal – May allow interviewer bias
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Direct mail
• Advantages:
– No interviewers bias – Economical for large geographic area – Respondent anonymous > more truthful responses

• Disadvantages
– Require simple and clearly worded questions – Return rate low and/or slow (can introduce a bias) – Need good and up-to-date mailing list

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3. Implementing the research plan
COLLECTING THE DATA

PROCESSING THE DATA

RESEARCH

ANALYZING THE DATA
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Collect data
Questionary should consist: • Demografic information (age, gender, occupation, income
range, etc)

• Confirmation that the respondent uses the product /services you are testing • Which brand is used • How often brands are used • Importance of different brand images • Purchase intention on a five-point scale (definitely, maybe
indifferent, maybe not, definitely not)

• What could be done to change existing product

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When you prepare questionary:
• be short • be careful if you ask about personal information • use close-ended questions • use standard language • do not use negative questions • do not ask more than one question in the same time

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Survey Questions and Answer Tipes a) The Dishotomous question (Yes/No) Example: Have you ever purchased a product or service from our web-site? 6. Yes 7. No
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Survey Questions and Answer Tipes
b) Multiple choice questions Example: How did you hear about our web site? 6. TV 7. Radio 8. Newspaper 9. Word of the mouth 10.Internet 11.Other (please specify) ....................
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Survey Questions and Answer Tipes
c) Rank Order Scaling Example:
Based upon what you have seen and experienced, please rank the following brands according to their reliability. Place “1” next to the brand that is most reliable, and so on. Remember no two cars can have same ranking. _ Honda _ Toyota _ Mazda _ Ford
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Survey Questions and Answer Tipes
d) The Rating scale Example: Which of the following categories best describe your last experience purchasing a product or service on our website? Would you say that your experience was: • Very pleasant • Pleasant • Neither pleasant nor unpleasant • Unpleasant 63 • Very unpleasant

4. Interpreting/reporting the findings
STEP 1. INTERPRET THE FINDINGS

STEP 2. DRAW CONCLUSIONS

STEP 3. REPORT TO MANAGEMENT

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Consumer preferences according to packaging type

14% 12% 52% 22%

plastic bag plastic jars glass package no preferences

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Consumer preferences according to packaging volume

5%

10%

3%

less than 250 gr 251-500 gr 501-750 gr 58% 751-1000 gr more than 1000 gr

24%

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Write a Research Report
Keep reports short and precize, that is use the concept: Hypothesis-analyses-results Example: H: Most probably, customers know your brand A: A questionary was submitted to 100 people at the shoping centre xx 67 R: 45% knew our brand

Break/networking
18:00-18:20

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Exercise: Role playing Research your colleges and describe what they like/dislike
Time: 50 min. 20 min. – Questionnaires 20 min. – Presentation
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Exercise: Research Serbian market in the field of manufacturing ..................
Time: 50 min. 15 min. for preparing 8 min. for each group for presenting

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Thanks for your attention
• Final remarks • Tomorrow’s theme is Marketing mix • See you tomorrow at 16:00 h

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Welcome

MARKETING STRATEGY AND MARKET RESEARCH

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Program of the week-day by day:
• Monday: Marketing strategy and marketing environment • Tuesday: Marketing strategy and business plan • Wednesday: Market research • Thursday: Marketing mix: definition and creation • Friday: Marketing management
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Programme for Thursday
Agenda – topic of the day:
  3. 4. The Marketing mix: definition and creation Objective of the day: To provide basic understanding how to create appropriate marketing mix according to marketing strategy To set up right price, place and promotion for selected segments/niches Working hours 16:00 – 20:00 Individual counselling 20:00 – 21:00 Reflexion form
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  

The Marketing mix

Is the mix of controllable variables that the firm uses to reach desired sales level in target market, including price, product, place and promotion – 4P`s

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4 P`s ... • • • • Product Price Place Promotion

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+3P
• People
Staff selection, motivation,training and customer service

• Physical evidence
The decor and ambience are very much part of the product offer – as are costumer testimonials and celebrity endorsement.

• Process
The efficiency of the process is what provides benefits for the costumer. It could be measured in many ways, for example by surveying the buyers
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Marketing mix – Product
Product life cycle

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Summary of Product Life Cycle Strategies
Introduction Strategies
Product Offer a basic product Charge cost-plus Build selective distribution Build product awareness among early adopters and dealers Use heavy sales promotion to Offer product extensions, services, warranty Price to penetrate market Build intensive distribution Diversity brands and items Price to match or best competitors Build more intensive distribution Stress brand differences and benefits Phase out weak models Cut price Go selective phase out unprofitable outlets Reduce to level needed to retain hard-core loyals

Growth

Maturity

Decline

Price Distribution

Advertising

Build awareness and interest in the mass market

Sales Promotions

Reduce to take advantage of heavy consumer

Increase to encourage brand

Reduce to minimal 80 level

New product development process
Marketing strategy development Concept development and testing Business analysis Product development

Idea screening Idea generating

Market testing

Commercialization
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Reasons for new product failure • • • • failing to offer a unique benefit underestimating the competition product design not as good as it could be product development costs are higher than expected • slow or poor timing in product introduction
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Marketing mix – Product
Tree levels of the Product

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Marketing mix – PRICE
• Price is the sum of all the values that consumers exchange for the benefits of having or using the product or service. • Price is sometimes the major factor affecting buyer choice; • Price is the only element in the marketing mix that produces revenues; all others represent costs.
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What is the right price?
• Right for You • Right for Your customer

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Right price for customers
• Your customers will maybe be ready to pay only very low price, and you wont be able to make profit • That could be right price for customer, but is it for You too?

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Right price for You
• • • • How big profit you want? How much sales you can make? How fast you want to grow? What part of the market you want to take over? • What kind of quality picture you want to project?
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Right price for You and customers
2 basic points for observation: • DEMAND – what customers are ready to pay • OBJECTIVES – what YOU want to achieve with your business
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How important is to form the right price? • Small price change could make big change in profit • It is IMPORTANT to form the right price!

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Factors affecting pricing decision
Internal factors:
1. Marketing objectives 2. Marketing mix strategy 3. Costs

External factors:
Pricing decision
1. Nature of the market and demand 2. Competition 3. Other factors (governemnt regulation)

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Internal factors Affecting Pricing Decision
• Marketing objectives:
– Company must decide on its strategy for the product – General Objectives: Survival, curent profit maximization, market share leadership, and product quality leadership.
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Internal factors Affecting Pricing Decision Costs • Fixed Costs:
– Costs that do not vary with production or sales level

• Varible cost:
– Costs that vary directly with the level of production
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External factors Affecting Pricing Decision The market and demand: • Costs set the lower limit of prices • The market and demands set the upper limit
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External factors Affecting Pricing Decision Competition: • Direct competitor price • More than competitor • Less than competitor
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External factors Affecting Pricing Decision Other External Factors • Economic condition (affect production costs) • Government may restrict or limit pricing options
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Cost-plus pricing
• Adding a standard markup to the cost of the product • Popular because:
- Sellers more certain about cost than demand - Simplifies pricing - When all sellers use, prices are similar and competition is minimized - Some feel it is more fair to both buyers and sellers
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Value-based pricing • Uses buyers perceprtion of value, not the product cost, as the key to pricing • Measuring perceived value can be difficult

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Cost-Based and Value-Based Pricing Cost- based pricing
Product Cost Price Value Customer

Value-based pricing
Customer Value Price Cost Product

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Mark-ups and Mark-up chain
• Mark-up per cent is the percentage of the selling price that is added to the cost to get the selling price • Products may be marked up several times through the distribution channels • High mark-ups do not always mean high profits
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Discount policies

Cash Quantity Funcional Seasonal

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Pricing strategies

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Marketing mix - PLACE/CHANELL
• • Make your product/service available to target market for purchasing Channel of distribution All in chain – from producer to final user or buyer

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Types of Channel Intermediares:
Conventional marketing channel Manufacturer Manufacturer Wholesaler Retailer Consumer Wholesaler Retailer
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Vertical marketing channel

Consumer

Marketing mix - PROMOTION How you could say to customers about your product/service?

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Overview of Eight Steps to Effective Communication
• • • • • • • • Identify target audience Determine objectives Design the message Select communication channels Establish communications budget Develop communications mix Measure results Effectively manage the process
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• PROMOTION MIX (sinergy)
Public Relations Sale promotion Advertising

Direct Marketing

Marketing communication

Personal sale

Gerilla Marketing

Publicity

E-marketing
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Identifying Target Audience
Potential buyers General public Current users

Deciders and influencers

Specific publics
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Buyers pass through these stages:

– Cognitive stage (think) – Affective stage (like) – Behavior stage (do)

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Designing the Message

ttention nterest esire ction
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All products have 2 characteristics:

1. “feature” – what it is 2. “benefit” – what is offered to buyer
People buy BENEFIT not CHARACTERISTICS Sell BENEFIT
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Advertising media • • • • • newspapers television direct mail radio magazines
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The Five Ms of Advertising

Mission Money Message Measurement Media

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Other forms of advertising
• Office material:
– – – – Business cards Invoices Envelopes Memos

• • • • • •

Logo Vehicles Business gifts Work uniforms Packaging Movable adverts
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Personal Communication Channels • Identify influential people
– and cater to them – Use influential people in testimonials

• Establish electronic forum • Develop referral channels
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Marketing Budget Some common methods of budgeting are:
– Affordable – Percentage of sales (expected sales) – Competition role – Objectives and tasks
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Measuring and Monitoring Results
• What are some ways to measure the impact of marketing communication? • For what measuring should be used?
– Analyses and perception of business activity – Influence on positioning – Costs justification

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Break/networking
18:00-18:20

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Exercise: Creating marketing mix by groups! Time: 18:20 – 19:00

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Guest speaker Panell discussion about media plan

19:00 - 19:50
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Thanks for your attention
• Final remarks • If you want to speak on your own business idea: 20:00h is the time (max. 21:00h) • Tomorrow’s theme is Marketing Management • See you tomorrow at 16:00h

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Welcome

MARKETING STRATEGY AND MARKET RESEARCH

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Programme of the week - day by day:
• Monday: Marketing strategy and marketing environment • Tuesday: Marketing strategy and business plan • Wednesday: Market research • Thursday: Marketing mix: definition and creation • Friday: Marketing management
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Programme for Friday
Agenda – topic of the day:
 Marketing management  Objective of the day: 1.To learn about marketing management importance 2 To learn how to set up control process 3.To learn how to prepare marketing plan  Working hours 16:00 – 20:00  Individual counselling 20:00 – 21:00  Reflexion form
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Marketing management process
Market planning
Set objectives Evaluate opportunities Plan marketing strategies Develop marketing plans Develop marketing program

Control marketing plans and programs
Measure results Evaluate progress

Implement marketing plans and programs
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Marketing mix planning
Why is the 4 Ps idea helpful? • • • provides an organizing framework helps to bring many, more detailed decisions together in a logical fashion focuses thinking on the idea that ALL marketing decisions must work together as a whole
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The Marketing plan
Marketing plan: a written statement of a marketing strategy and the time-related details for carrying out the strategy • Spells out, in detail:
– – – – – – What marketing mix is offered To what target market For how long What resources (costs) are needed and at what rate What results are expected What control procedures will be used
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The marketing plan includes…
• • • • • Mission Product market Customer analysis Competitor analysis Analysis of their aspects of external environment • Company analysis • Marketing information requirements • • • • • Product strategy Place strategy Price strategy Promotion strategy Implementation problems to be overcome • Forecast and estimates • Timing
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Marketing management
Planning
Setting goals Selecting strategies Forecasting

Implementing Controlling
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Controlling the marketing plan

4. Find out WHAT happened 5. Find out WHY it happened 6. Decide WHAT to do about it

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The Marketing Control Proces

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There are many approach to control:
• • • • • • • Market share analysis Sales analysis Quality controls Budgets Ratio analysis Marketing research Customers satisfaction
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There are many approach to control:
• Customer Relationship Management systems • Cash flow statements • Distributor support • Performance of any promotional activities • Market reaction /acceptance to pricing policy
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Types of reports
• To aspect of time:
– – – – monthly on three months on six months annual

• To aspect of income level:
– internal – external

• To aspect of decision importance:
– tactical moves – strategic moves
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Never:
• • • • • • Assume what customer wants Ignore the competition Try to be competitive only with prices Rely on small group of customers Try to grow too fast Become satisfied with what You offer and never ignore innovation of Your product/service
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Break/networking 18:00-18:20

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Exercise: MARKETING PLAN
Time: Completion: 40 min. Presentation: 50 min. (12 min. for each group)
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End of Module
• Complete Reflexion form and action plan • Complete evaluation form • If you want to speak on your own business idea: 20:00 hours is the time (max. 21:00 hours) • Availability for questions - gmkonsalting@beotel.net

Good luck with your company Thanks!

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