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Marketing Process Topic highlight
• Marketing Mix and traditional 4Ps • Modern Marketing Mix with additional 3Ps • Marketing Planning, Implementation and control
The Marketing Mix
Four Ps and Four Cs and Four Vs of Marketing
Product Promotion Price Placement –
Customer Communication Cost Convenience
Validity Vogue Value venue
Solution Information Value Accessibility
.Marketing Mix • When marketing their products firms need to create a successful mix of: - the right product sold at the right price in the right place using the most suitable promotion.
The Marketing Mix • The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives • 7Ps – Price. Process. Product. People. Promotion. Place. Physical Environment • Traditional 4Ps extended to encompass growth of service industry .
• What should the product mix look like? • Which features/benefits should the individual product offer? • Product variety • Product’s quality .Product: • Goods or services a company offers to its target market.
• • • • Product’s features Brand Name Packaging Services .
The product should be designed keeping the customer needs and requirements in mind. repairs and Support. . • Some elements of product/service that require attention for a successful business are: quality. Product: • “Product” refers to the goods and services that firms offer to their customers. brand name. Firms must place sufficient importance to the product/service as well as the other aspects associated with the product that attract customer attention. warranties. services. features. safety. packaging.• 1. options.
hence the saying ‘Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer’ .Product Product Decisions Branding Quality Benefits offered Features We must remember that Marketing is fundamentally about providing the correct bundle of benefits to the end user.
Marketing Mix of NIKE Clothes .
• Shoes .
Bags $ 40 $ 65 $ 65 .
Sporting goods .
Pricing • Pricing is the only mix which generates a turnover for the organisation. it costs to distribute a product and costs to promote it. Pricing is difficult and must reflect supply and demand relationship. . Price must support these elements of the mix. • It costs to produce and design a product. The remaining 3p’s are the variable cost for the organisation.
medium-priced/ • Which pricing approach – cost-based.Price • Amount of money customers have to pay for a company‘s product/service • At which price should a product be offered – cheap. market-based. competition-based? • Which factors affect the price? • Discounts • Allowance • Credit period • Credit terms . expensive.
• If the price is too high customers would opt for a product which has the similar features but is priced relatively lower than the one offered by a particular firm. Price plays an important role in customer’s buying decision.• “Price” refers to the cost of a particular product or service. Therefore careful attention should be paid while determining the price of a particular product/service. .
. firms must price the product in a way which reflects the appropriate position of the product in the market. Therefore. customers might consider it as a signal of low quality. incase the price determined by a firm is lowest among the competitors. • This P of the marketing mix is highly important for the success of the business as it is the one that determines the revenues generated. Price must cover the costs incurred and contribute to the firm’s image by communicating the perceived value.• However.
• • • • • Advertising Sales promotion Public relation Publicity Personal Selling .
Promotion Advertising Public Relations Promotional Mix Sales Promotion Personal Selling Direct Mail Internet/ E-commerce A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional mix can consist of: .
.• Promotion: Promotion refers to the awareness created of the introduction of a new product and availability of an already existing product by means of advertising and selling activities. The main objective of promotion is to make customers aware of product features. Promotion activities help the firms to position their products in the right way in the market to reach the target customers. its uses and benefits.
Effective promotional activities consist of a clear and simple message which is directly targeted at a specific group of people. reached by means of an appropriate medium like television or print adverts. . personal selling. Promotional activities involve advertising. The message should be consistent with the overall marketing image of the firm and should reach the target audience and generate the desired response. public relations and sales promotions.
Place • The means by which products and services get from producer to consumer and where they can be accessed by the consumer – The more places to buy the product and the easier it is made to buy it. the better for the business (and the consumer?) .
Place is also known as channel. or intermediary.• Place” refers to the distribution channels used to get a firm’s products from the manufacturer/service provider to the end customers. . Therefore great importance should be placed in determining the distribution medium. distribution. it is important that the product/service offerings are at the right place at the right time. • For business to be successful.
.• The selection of distribution method should be carefully made keeping in mind the target audience and the positioning of the product in the market.
Place Direct Distribution Indirect Distribution Manufacturer Manufacturer Retailer Consumer Consumer .
Additional Three Ps in marketing People Physical evidence Process .
Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organisation wants to obtain a form of competitive advantage.People • An essential ingredient to any service provision is the use of appropriate staff and people. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. • .
management and everybody else involved in it. . It is essential for everyone to realize that the reputation of the brand that you are involved with is in the people's hands.• People . employees.People refer to the customers.
which tells consumers that staff are taken care off by the company and they are trained to certain standards. .• Staff should have the appropriate interpersonal skills. and service knowledge to provide the service that consumers are paying for. aptititude. Many British organisations aim to apply for the Investors In People accreditation.
if they are provided in time. if the customers are informed in hand about the services and many such things.It refers to the methods and process of providing a service and is hence essential to have a thorough knowledge on whether the services are helpful to the customers.• Process . .
• An example can be a customer walking in to Mc Donald's and ordering a meal. The steps followed by the service provider for providing its service so efficiently is the process being followed by it. The meal is delivered within 5 minutes. .
What was the process that allowed you to obtain an efficient service delivery? . Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes.• Process • Refers to the systems used to assist the organisation in delivering the service.
• Banks that send out Credit Cards automatically when their customers old one has expired again require an efficient process to identify expiry dates and renewal. . • An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company.
If you walk into a restaurant your expectations are of a clean. On an aircraft if you travel first class you expect enough room to be able to lay down! .• Physical Evidence • Where is the service being delivered? Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organisation. friendly environment.
consumers will make perceptions based on their sight of the service provision which will have an impact on the organizations perceptual plan of the service.• Physical evidence is an essential ingredient of the service mix. .
For example.• Physical (evidence) . .It refers to the experience of using a product or service. it is essential that you help him see what he is buying or not. When a service goes out to the customer.brochures. pamphlets etc serve this purpose.
Developing an Effective Marketing Mix • Marketing Mix is vey vital • SWOT analysis is more important to know more about Marketing Mix • Focus on Four specific areas • Assess its position in market .
SWOT • A widely used framework for organizing and using data and information gained from situation analysis • Encompasses both internal and external environments • One of the most effective tools in the analysis of environmental data and information .
Think of your SWOT as a tune-up that every business needs periodically to diagnose and fix what’s a bit worn. or what’s already broken and needs replacement--so that you can keep the business humming—even better than it has in the past. what’s on the verge of breaking down. Opportunities.• A SWOT (Strengths. Weaknesses. . and Threats) is a tool used to provide a general or detailed snapshot of a company's health.
• A SWOT analysis generates information that is helpful in matching an organization’s or a group’s goals, programs, and capacities to the social environment in which they operate • It is an instrument within strategic planning • When combined with a dialogue, it is a participatory process
• Factors affecting an organization can usually be classified as: • Internal factors
– Strengths (S) – Weaknesses (W) Strengths Weaknesses
• External factors
– Opportunities (O) – Threats (T) Opportunities Threats
SWOT: internal factors
– Positive tangible and intangible attributes, internal to an organization. They are within the organization’s control
– Factors that are within an organization’s control that detract from its ability to attain the core goal. In which areas might the organization improve?
SWOT: external factors
– External attractive factors that represent the reason for an organization to exist and develop. What opportunities exist in the environment which will propel the organization? – Identify them by their “time frames”
– External factors, beyond an organization’s control, which could place the organization’s mission or operation at risk. The organization may benefit by having contingency plans to address them should they occur – Classify them by their “seriousness” and “probability of occurrence”
Marketing Planning implementation and Control • Marketing plan is functional plan • They support to have better coordination among departments. .
.SWOT OF a Retail Shop Strengths •Unique brands protected by sole supply agreements •Successful relationship marketing. resulting in stocking a limited product range •Manager has limited industry experience and industry knowledge Threats •Changing fashion trends may shift consumer interest in our product range •Exchange rate variation may impact costs •Rents increasing above CPI putting pressure on our margins •Center owner shifting us within the center Opportunity •Backward integration in the supply chain to include importing directly •Increased geographic coverage •Leverage the growth of the internet to enhance business 1. and •Innovative sales techniques Weaknesses •Small store size and inability to find an expansion.
. laptops and other computer peripherals. sell and support personal computer. manufacture.SWOT OF DELL COMPUTER • Dell Inc is one of the larges multinational technology corporation that develops.
Strength • • Customer oriented marketing strategies. Server. • • Offer wide range of PC. • • 24X 7 Customer support. Laptops. • • Dell offer computers with AMD and Dell processor. • • Dell Company employs more than 76000 thousand people. Data storage devices. . network switches and software. • • Listed in the fortune 500 companies as the 25th largest company. • • Dell has nine of manufacturing plants. • • Provide quality PCs. Laptops and computer peripherals at low price. Monitors and LCDs. • • Well-Known for online selling of Computers. • • Low manufacturing cost.
Weaknesses • •Elimination of bonuses in 2006 to increase the company financial performance. • • Dell not able to attract the students of schools and colleges. • • Dell is dependent on its suppliers • No t easily available of repair parts of equipments for repairs.900 jobs and the shift of production to its plant in Poland. • • Dell have no proprietary technology. this segment earn only 5% of total revenues. 2009 Dell announced the closing of its manufacturing plant in Limerick. the currently used technology by dell are shared by the other major competitors. • • Closure of Dell’s biggest call center in April. • • On January 8. 2003 terminating 1100 employees. Ireland with the loss of 1. .
Pakistan and Bangladesh are the untapped markets. • • Market penetration in education and Government markets. • • Cost reduction in latest technology. • • Dell has opportunity to sell computer directly to retailers. .Opportunities • • India. • • Partnership or acquiring of suppliers.
• • Most of the countries are hit by recession which may result in the reduction of revenues. • •• Bargaining of Suppliers. .Threats • • Fluctuation in currency outside US. • • Rapid change in technology obsoletes the product in small span of time. • • Major competitors in the market.
deceptive) . Analyze the current market situation: • Intended market and market segmentation • Consumer buying behavior for certain products • Marketing environment (supportive. implementation and control Contents of marketing plan Executive Summary: brief summary of plan that helps for busy executives to get points very quickly.Marketing planning. 1.
Objectives and Issues: Marketing objectives they want to achieve and issues they may affect them. 3. PEST Analysis • Assessment of external environment to find opportunity and threats. .• Major competitors and their marketing strategies 2.
Take a good look at the available skills and resources that you can commit to implement and integrate your goals into your marketing plan effectively. • Study the budget requirements for the strategies you select and plan accordingly. the number of people you would like to reach.• Marketing objectives can include setting the number of new clients you would like to acquire. . or the amount of income you would like to generate. Be realistic and practical in establishing your goals.
Targeting and positioning • Four Ps of marketing • Planned activities Programs to be undertaken 1 2 3 Responsibility for monitoring Time Cost .4. Marketing Strategies • Segmentation.
Marketing Budget 6.5. Control .
This involves tracking and evaluating customers’ responses to each marketing strategy .• By monitoring results. Identify strategies that generate leads and sales. you determine which of your marketing strategies are working and which are not.
meet with them for detailed feedback and ask them for ideas and suggestions about how you can introduce your products and services to more prospects who are just like them .• Survey or interview regular users for comments about why they find a service important. • As you get to know your repeat clients better.
Other % . Target Market . MARKET ANALYSIS • A.Who are the customers? • 1. Government % e.• I. Wholesalers % c Retailers % • d. We will be selling primarily to (check all that apply): • Market Segment • Total Percent of Business • a. Private sector % b.
2. Sales? We will target sales of _________________ • d. We will be targeting customers by: • a. Other? _________________ • 3. Geographic area? Which areas?_________________ • c. Product line We will target specific lines _________________ • b. How much will our selected market spend on our type of product or service this coming year? $_______________ . Industry? Our target industry is_________________ • e.
• B. Who are our business competitors? • NAME _____________________________________ • ADDRESS _____________________________________ • _____________________________________ • Years in business ___________________ . Business Competition • 1.
• • • • 2. We will be targeting customers by: Market share ___________________ Price/Strategy ___________________ Product/Service Features ___________________ .
How competitive is the market? • High Competitive Market ____________________ • Medium Competitive Market ____________________ • Low Competitive Market ____________________ .• 2.
services.___________ • 3. etc.__________ 2.• 3. List below your strengths and weaknesses compared to your business competition (consider such areas as location._________ • 2.): • Strengths Weaknesses • 1. reputation.___________ 3. personnel.___________ 1. size of resources.________ .
): • ___________________________________________ ___________ • 2. The following are some important legal factors that will affect our market: • ___________________________________________ __________ .• C. rising energy prices. industry health. The following are some important economic factors that will affect our product (such as country growth. taxes. etc. Market Environment • 1. economic trends.
but over which we have no control: • _____________________________________ _________________ .• 3. The following are some important government factors: _______________________________________ _______________ • 4. The following are other environmental factors that will affect our market.
Description • 1. PRODUCT OR SERVICE ANALYSIS • A.• II. Describe here what the product/service is and what it does: • _____________________________________ _________________ .
• B. What advantages does our product/service have over those of the competition (consider such things as unique features. expertise. Comparison • 1. What disadvantages does it have? . patents. etc.)? • _____________________________________ _________________ • 2. special training.
Some Considerations • 1. Where will you get your materials and supplies? • _____________________________________ _________________ • 2.• C. List other considerations: • _____________________________________ _________________ • _____________________________________ _________________ .
• III. Image • 1. or convenience.MARKET MIX • A. or customer-oriented. what kind of image do we want to have (such as cheap but good.. or speed. MARKETING STRATEGIES . or . or exclusiveness. or highest quality.)? • _____________________________________ _________________ .. First.
____________________________________ _______________ • b. Features • 1.____________________________________ _______________ . List the features we will emphasize: • a.____________________________________ _______________ • c.• B.
We will be using the following pricing strategy: • a. Markup on cost ____ What % markup?______ • b. Premium price ____ f. Pricing • 1. Below competition ____ • e. Suggested price ____ • c. Competitive ____ • d.• C. Other ____ .
Are our prices in line with our image? • YES___ NO___ • 3. --------------------_____________________________________ . c. Do our prices cover cost and leave a margin of profit? • YES___ NO___ • D. ----------.• 2. List the customer services we provide: • a.b--------------. Customer Services • 1.
• 2. _____________________________________ ________ • c. These are our sales/credit terms: • a. _____________________________________ ________ • b. .
The competition offers the following services: • a.• 3. _____________________________________ _________ • b. _____________________________________ _________ .
• E. Advertising/Promotion • 1. These are the things we wish to say about the business: • _____________________________________ _________________ • _____________________________________ _________________ .
• . Personal contacts ________ 5. Radio ________ 3. Trade associations ________ . We will use the following advertising/promotion sources: • 1. Television ________ 2. Direct mail ________ 4.
The following are the reasons why we consider the media we have chosen to be the most effective: ----------------------------------- . Magazines ________ 8. Billboard ________ 10.• 6. Other___________ ________ • 3. Newspaper ________ 7. Yellow Pages ________ 9.
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