Marketing

Buzzwords of confusion ‡ Sales versus Marketing ‡ Market Research & Marketing Research ‡ Event Marketing ‡ SWOT, PEST, KPI¶s, USP¶s, DINKY¶s etc

As Event Managers, why is it important we understand what Marketing is?

Important Part of the Marketing Tactics
Interactive Media

Below the line

Radio Events

Internet Print Media

Television

Outdoor

Example of Events in Marketing
‡ The Pepsi Challenge has been an ongoing marketing promotion run by PepsiCo for the last 2 decades ‡ 1980¶s Pepsi Challenge ± built around a premise that had to be established µlive¶

Example of Events in Marketing
‡ The challenge takes the form of a taste test. At public locations, a Pepsi representative sets up a table with two blank cups, one containing Pepsi and one with Coke. ‡ Shoppers are encouraged to taste both colas, and correctly identify which is Pepsi and which is Coke. If they can correctly identify the two, they win a prize.

Events within Marketing
Marketing
(A Philosophy)

The Marketing Mix (Tactics)
Product Price Place
Promotion

People

Physical Process Evidence

Events

Agenda
‡ ‡ ‡ ‡ ‡ ‡ Marketing ± What is it? The Marketing Mix The Environment The Marketing Plan The Promotion Focus Events (Face to Face Communication)

What is Marketing ?

Marketing History
‡ The agrarian economy was largely self sufficient and trade was mostly through barter ‡ The industrial revolution in early 19th century suddenly created µsurplus¶ ± putting pressure on manufacturers to find markets that could absorb the produce ‡ The need for labeling the produce, brands, trademarks and patents gradually began to come in ‡ Mid 19th Century ± traveling salesman to organized distribution

Marketing History
‡ The Sales Era lasted till the 2nd world war ‡ Post war boom started the consumerist wave ± money in the hands of people, and larger number of enterprises making similar products ‡ Product proliferation made business very competitive ‡ It was this that paved the way for Marketing

Orientation Stages
‡ Production Oriented Firms tend to manufacture and offer goods that they are good at producing ‡ Sales Oriented The Hard Sell, firms now realise that due to competition the goods have to be sold. Sales volume becomes the most important criterion ‡ Marketing Oriented The firm ascertains the genuine needs and wants of specifically defined target markets and then produce goods and services that satisfy the customer requirements

Marketing ± Some Descriptions
‡ ³Marketing is a human activity directed at satisfying human needs and wants through exchange process´ ‡ ³The customer is always right´ ‡ ³The right product, in the right place, at the right time, at the right price´

Marketing ± Definitions
‡ ³Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably´
Chartered Institute of Marketing

‡ ³Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives´
American Marketing Association

Sales versus Marketing
‡ Sales process begins
‡ ‡ ‡ ‡ ‡ with the producer Based on what the producer can make Seller defines the price Focus on finding buyers and selling them anyhow The sale is the end of the transaction Product attributes static, as long as it sells

‡ Marketing begins with the
‡ ‡ ‡ ‡ ‡ consumer Based on consumer needs and wants Market demand decides Focus on matching consumer needs with product attributes The sale is the beginning of the transaction ± relationship Products must adapt to changing customer trends

Sales versus Marketing
‡ Marketing is involved with the planning of the presentation of the firm¶s capabilities; whereas ‡ Sales is the execution of the transfer or ³exchange´ of the product, good or service.

Sales versus Marketing
‡ Marketing is a strategic function and has a number of tactical activities, of which selling is one. ‡ The primary function of sales is to find and close leads, turning prospective customers in actual ones ‡ Sales definition Income (at invoice values) received for goods and services over some given period of time

Presentation Status
‡ ‡ ‡ ‡ ‡ ‡ Marketing ± What is it? The Marketing Mix The Environment The Marketing Plan The Promotion Focus Events (Face to Face Communication)

The Marketing Mix

The Marketing Mix
‡ The 4 P¶s The variables that the marketing manager can control in order to best satisfy customers in the target market 1. Product
The physical product or service offered to the consumer.

3. Place Target Market
Channels of distribution to µget¶ the product to the consumer. Producer-WholesalerRetailer-Customer

2. Price
Financial aspects of the process; price levels, profit margins etc.

4. Promotion
The communication and selling to potential customers

The µExtended¶ Marketing Mix
5. People ‡ Employees are in direct contact with customers and therefore must be considered the in the developing the marketing mix

The µExtended¶ Marketing Mix
6. Physical Evidence ‡ Service has an intangible characteristic, therefore importance is placed on more tangible elements of the service mix such as facilities and equipment.

The µExtended¶ Marketing Mix
7. Process ‡ How the service is provided is important. Procedures for dealing with customers at the point of contact, and the supply of a consistent quality service must be pre-planned and managed

Presentation Status
‡ ‡ ‡ ‡ ‡ ‡ Marketing ± What is it? The Marketing Mix The Environment The Marketing Plan The Promotion Focus Events (Face to Face Communication)

The Environment

Components of Communication

Channel Encoder Message Decoder

Organisational Buying Process
Need recognition Determine specification (general) Determine specification (specific) Search Evaluation Selection Post-purchase evaluation

Comsumer Buying Process

Market Analysis
‡ PEST ± A framework to scan the external macroenvironment in which a firm operates Political Product Technological Company Price Promotion Place Economic

Socio-Cultural

Target Markets
‡ One of the reasons why marketing arose was because of the diversity of markets and complex human needs and wants ‡ As competition increased and more producers started producing similar goods, the need to carve out exclusive niches arose ‡ This could be done by changes to the product ± DIFFERENTIATION, or to the market definitions - SEGMENTATION

Segmentation & Targeting
‡ If segmentation is about breaking up a mass market into more specific subsets, targeting is all about the decisions to appeal to them ‡ Treating them all as one large group with a common interest is called UNDIFFERENTIATED marketing ‡ Selecting one small niche and catering to that segment is called CONCENTRATED marketing ‡ Identifying several unique subsets and talking to them individually is called DIFERENTIATED marketing

Why Segment?
‡ ‡ ‡ ‡ ‡ ‡ Better matching of customer needs Enhanced profits, margins for the business Better opportunities for growth Retain loyalty of customers Targeted marketing communications Gain share in the segment

Some Examples of Profiles
‡ Ultra Conservative - don't rock the boat, whatever they purchase must be consistent with their current way of doing things. ‡ Conservatives - are willing to change, but only in small increments and only in a very cost effective manner. ‡ Liberals - regularly looking for new solutions, willing to make change (even major change) if the benefit can be shown. ‡ Technical Liberals - enamored with the benefits provided by high tech solutions and any purchase decision will be biased by the technical content of the offering. ‡ Self Helpers - consistently defines/designs solutions to their problems, likes to acquire tools that help in the innovation process.

The Road to the Market
To get a product or service to the right person or company, a marketer would firstly 1. segment the market, 2. then target a single segment or series of segments, 3. and finally position within the segment(s)

1. Market Segment
Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. ‡ by geography ± region, climate, population density and growth ‡ by demographics - such as age, gender, occupation, income, education and family status ‡ by psychographics - such as values, lifestyle or beliefs ‡ by behaviour ± such as class, brand loyalty, price sensitivity

2. Targeting the Market
‡ After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them ‡ It's like looking at a dart board or a shooting target. You see that it has areas with different scores - these are your segments. Aiming the dart or the bullet at a specific scoring area is 'targeting'

2. Targeting the Market (cont)
‡ Eg. The Car Industry

2. Targeting the Market (cont)
‡ Eg. Rolls Royce

2. Targeting the Market (cont)
‡ Eg. Washing Powder

3. Position in Market
‡ After segmenting a market and then targeting a consumer, you would proceed to position a product within that market ‡ Positioning is all about 'perceptionµ ‡ Products or services are 'mapped' together on a 'positioning map'. This allows them to be compared and contrasted in relation to each other

3. Position in Market (cont)
EG. Automotive Positioning Map

Presentation Status
‡ ‡ ‡ ‡ ‡ ‡ Marketing ± What is it? The Marketing Mix The Environment The Marketing Plan The Promotion Focus Events (Face to Face Communication)

The Marketing Plan

Marketing Plan
‡ Marketing plans are vital to marketing success. They help to focus the mind of companies and marketing teams on the process of marketing i.e. what is going to be achieved and how we intend to do it.

The Marketing Plan (cont)
The key stages of the plan are contained under the acronym AOSTC 1. Analysis 2. Objectives 3. Strategies 4. Tactics 5. Control.

The Marketing Plan (cont)
1. Analysis ‡ ‡ ‡ ‡ The environment (PEST) Internal Audit Competitors SWOT

SWOT ANALYSIS
‡ A tool for identifying and analysing the (internal) strengths and weaknesses of a corporation and the (external) opportunities and threats.
Strong brand / reputation Industry expertise Natural resources Patents New product / service Location Quality process or procedure

STRENGTHS

WEAKNESSES
Poor quality of goods or service Damaged reputation Lack of marketing expertise Location of business Competitors have superior resources Weak HR and personnel

OPPORTUNITIES
Developing market Mergers or strategic alliances Moving into new attractive market segments New international markets Loosening of regulations Removal of international trade barriers Market is led by weak competitor

THREATS
New competitor in home market Price war Innovative product/service from competitor New regulations Increased trade barriers Taxation on product / service

The Marketing Plan (cont)
2. Objectives (SMART)
‡ Specific Be precise about what you are going to achieve ‡ Measurable Quantify you objectives ‡ Achievable Are you attempting too much? ‡ Realistic Do you have the resource to make the objective happen (men, money, machines, materials, minutes)? ‡ Timed State when you will achieve the objective (within a month? By February 2010?)

The Marketing Plan (cont)
3. Strategies
‡Describe your target market. ‡Which segment? ‡How will we target the segment? ‡How should we position within the segment? ‡Define the segment in terms of demographics and lifestyle ‡Show how you intend to 'position' your product or service within that segment. Use other tools to assist in strategic marketing decisions such as Boston Matrix, Ansoff¶s Matrix

The Marketing Plan (cont)
4. Tactics
Convert the strategy into the marketing mix (4 p¶s)marketing mix. These are your marketing tactics. PRICE. Will you cost plus, skim, match the competition or penetrate the market? PLACE. Will you market direct, use agents or distributors? PRODUCT Sold individually, as part of a bundle, in bulk? PROMOTION Which media will you use? e.g sponsorship, radio advertising, sales force, point-of-sale, etc? Think of the mix elements as the ingredients of a 'cake mix¶

The Marketing Plan (cont)
5. Control Remember that there is no planning without control. Control is vital. ‡ Start-up costs ‡ Monthly budgets ‡ Sales figure ‡ Market share data ‡ Monitor and Evaluate plan

Marketing Budgets
‡ Gear your marketing efforts to the most cost effective use ‡ Budgets include everything from equipment investments to ³soft´ company support of community events ‡ Keys areas could be: (mix)
± Advertising; public relations ± Product packaging ± Sales force / commercial incentives

‡ Marketing budget should anticipate results; internally ³sell´ the expenditures for each piece; support most important objectives ‡ Some marketing organizations have P/L responsibility ‡ ³You can¶t make a buck, without spending a buck´

Campaign Framework
Marketing Communication Objectives & Strategy ‡Specific ‡Measurable ‡Short Term ‡Targets Marketing Communication Tactics Campaign Implementation Campaign Evaluation & Control

‡Budgets ‡Creative ‡Media selection ‡Below the line promotions ‡Sales force ‡Public relations ‡Distribution channels & management

‡National Launch or smaller scale campaign

Presentation Status
‡ ‡ ‡ ‡ ‡ ‡ Marketing ± What is it? The Marketing Mix The Environment The Marketing Plan The Promotion Focus Events (Face to Face Communication)

The Promotion Focus

Events within Marketing
Marketing
(A Philosophy)

The Marketing Mix (Tactics)
Product Price Place
Promotion

People

Physical Process Evidence

Events

Push & Pull Marketing Strategies
PUSH Marketing efforts targeted at the middlemen and the salesforce ‡Cash discounts ‡Dealer competitions ‡Salesforce cash incentives ‡Direct Mail shots ‡Credit facilities ‡Trade Exhibitions & Events, Demonstrations ‡Training schemes PULL Marketing efforts targeted at consumers
CHANNELS OF DISTRIBUTION

‡Price reductions, ‡Coupons ‡Free samples/demos in stores ‡Competitions ‡Buy one get one free, ‡Packaging, ‡Point of Sale displays, ‡Consumer Advertising ‡ Sponsorship

The Promotion Cake
‡ The basic ingredients are always the same. However if you vary the amounts of one of the ingredients, the final outcome is different. You can 'integrate' different aspects of the promotions mix to deliver a unique campaign cake.
Advertising Personal Selling Sponsorship Events Direct Mail Sales Promotion PR

Advertising Personal Selling Sales Promotion PR

Sponsorship Events

Direct Mail

Advertising
µAdvertise¶ ± µmake known«To inform¶ An advertisement to be successful; ‡ Must be seen ‡ Must be read ‡ Must be believed ‡ Must be remembered ‡ Must be acted upon

Presentation Status
‡ ‡ ‡ ‡ ‡ ‡ Marketing ± What is it? The Marketing Mix The Environment The Marketing Plan In progress The Promotion Focus Events (Face to Face Communication)

Presentation Status
‡ ‡ ‡ ‡ ‡ ‡ Marketing ± What is it? The Marketing Mix The Environment The Marketing Plan In progress The Promotion Focus Events (Face to Face Communication)

Marketing Plan Example

Presentation Status
‡ ‡ ‡ ‡ ‡ ‡ Marketing ± What is it? The Marketing Mix The Environment The Marketing Plan The Promotion Focus Events (Face to Face Communication)

Events (Face to Face Communication)

An Overview of Events
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Award Ceremonies Carnivals Concerts ‡ Conferences ‡ Corporate Events ‡ Exhibitions ‡ Festivals Fashion Shows Product Launches Promotions

Road Shows Seminars Sporting Events Trade Fairs

Events

Award Ceremonies

Carnivals

Concerts

Conferences

Car Launch

Exhibitions

Festivals

Fashion Show

Opening Ceremony

Product Launch

Sporting Event

Tourist Events

Weddings

Presentation Status
‡ ‡ ‡ ‡ ‡ ‡ Marketing ± What is it? The Marketing Mix The Environment The Marketing Plan The Promotion Focus Events (Face to Face Communication)

Brand Positioning Visibility

Brand Brand Building Building

Product Displays

Personal Selling

Brand Awareness

Tangible Sales

Events

Merchandising

Research & Planning Brand Communication PR Driver

Promotions

Product Sampling

Entertainment

Event Communication
‡ Advantages ‡ Clean and customer direct ‡ Direct benefit to the user (even enjoyment) ‡ It is suggested that the advertising arena (while growing in terms of size) is slowing down and being replaced by the µFace-to-face¶ style medium of communication.

Marketing Dictionary
‡ Above the Line Advertising for which a payment is made and for which commission is paid to the advertising agency. See also 'below the line' and 'push versus pull promotionµ ‡ Advertising Promotion of a product, service, or message by an identified sponsor using paid-for media. ‡ Brand The set of physical attributes of a product or service, together with the beliefs and expectations surrounding it - a unique combination which the name or logo of the product or service should evoke in the mind of the audience. ‡ Brown Goods Electrical goods such as TVs, videos, stereo systems etc, used for home entertainment. So called because they were originally cased in bakelite, a brown plastic.

Marketing Dictionary
‡ Buzz marketing uses 'word-of-mouth' advertising: potential customers pass round information about a product. See also 'viral marketingµ ‡ Channels The methods used by a company to communicate and interact with its customers ‡ Copyright The law that protects an author's original material, usually (in the UK) for 70 years after the author's death. Similar law covers logos and brand names ‡ Copywriting Creative process by which written content is prepared for advertisements or marketing material

Marketing Dictionary
‡ Customer Relationship Management (CRM) The coherent management of contacts and interactions with customers. (This term is often used as if it related purely to the use of IT, but IT should in fact be regarded as a facilitator of CRM.) ‡ Decision Making Unit (DMU) The team of people in an organisation who make the final buying decision ‡ Differentiation Ensuring that products and services have a unique element to allow them to stand out from the rest ‡ DINKY Double Income No Kids Yet - a demographic grouping

Marketing Dictionary
‡ Direct Marketing All activities which make it possible to offer goods or services or to transmit other messages to a segment of the population by post, telephone, e-mail or other direct means ‡ Electronic Point of Sale (EPOS) System A system whereby electronic tills are used to process customer transactions in a retail outlet ‡ Endorsement Affirmation, usually from a celebrity, that a product is good ‡ FMCG Fast Moving Consumer Goods - such as packaged food, beverages, toiletries, and tobacco

Marketing Dictionary
‡ Focus Groups A tool for market research where small groups of customers are invited to participate in guided discussions on the topic being researched ‡ Grey Marketing (also called Parallel Importing) The illicit sale of imported products contrary to the interests of a holder of a trademark, patent or copyright in the country of sale ‡ Guerrilla Marketing The strategy of targeting small and specialised customer groups in such a way that bigger companies will not find it worthwhile to retaliate ‡ Logo A graphic, usually consisting of a symbol and/or group of letters, that identifies a company or brand

Marketing Dictionary
‡ Macro Environment The external factors which affect a company¶s planning and performance, and are beyond its control: for example, socio-economic, legal and technological change. Compare 'micro environmentµ ‡ Market Penetration The attempt to grow one's business by obtaining a larger market share in an existing market - see 'market share' and 'market developmentµ ‡ Micro Environment The immediate context of a company's operations, including such elements as suppliers, customers and competitors - compare 'macro environmentµ ‡ Personal Selling One-to-one communication between seller and prospective purchaser

Marketing Dictionary
‡ PIMS Profit Impact of Marketing Strategies: a US database supplying data such as environment, strategy, competition and internal data with respect to 3000 business. This data can be used for benchmarking purposes ‡ Point of Sale (POS) (also called Point of Purchase) The location, usually within a retail outlet, where the customer decides whether to make a purchase. See also 'EPOS - Electronic Point of Sale' ‡ Portfolio (and Portfolio Analysis) The set of products or services which a company decides to develop and market ‡ Product Life Cycle A model describing the progress of a product from the inception of the idea, via the main period of sales, to its eventual decline

Marketing Dictionary
‡ Promotional Mix The components of an individual promotional campaign, which are likely to include advertising, personal selling, public relations, direct marketing, packaging, and sales promotion ‡ Relationship Marketing The strategy of establishing a relationship with the customer which continues well beyond the first purchase. ‡ Return on Investment (ROI)/Return on Capital Employed (ROCE) The value that an organisation derives from investing in a project ‡ Skimming Setting the original price high in the early stages of the product life cycle in an attempt to get as much profit as possible before prices are driven down by increasing competition

Marketing Dictionary
‡ Supply Chain The network of suppliers, manufacturers and distributors involved in the production and delivery of a product ‡ Unique Selling Preposition (USP) The benefit that a product or service can deliver to customers that is not offered by any competitor: one of the fundamentals of effective marketing and business ‡ Value Preposition The set of qualities of a good or service that allows it to fulfill the customer's needs and desires, as opposed to simply benefiting the seller ‡ White Goods Large electrical devices for domestic use, such as fridges, freezers and dishwashers. Used to be cased in white enamel, hence the name

Boston Consulting Group Growth Share Matrix

Boston Share Matrix

Product Life Cycle

Maslow¶s Hierarchy

Pricing Strategies Matrix

Ansoff Matrix

The Relationship
Determine marketing objectives

Identify and select marketing strategies

Identify and select marketing tactics

Consumer Buying Process

ABTL & BTL
Above the Line ‡ Direct Advertising ‡ An artificial concept used by Advertising Agencies to distinguish between promotional expenditures that were commissionable and those that were not Below the Line ‡ Promotional activity ‡ All non media promotion

Advertising
Outdoor

Advertising (cont)
Outdoor

Advertising (cont)
Outdoor

Advertising (cont)
Magasines

Advertising (cont)
Newspapers

Advertising meets Sponsorship
A MIX

Personal Selling
‡ One-to-one communication between seller and prospective purchaser

Personal Selling (cont)
Media Kit

Personal Selling (cont)
Sales and Marketing Barge

Sales Promotion
‡ A range of techniques used to engage the purchaser. These may include discounting, coupons, guarantees, free gifts, competitions, vouchers, demonstrations, bonus commission and sponsorship.

Public Relations
‡ ³The deliberate, planned and sustained effort to establish and maintain mutual understanding between an organisation and its public´
Institute of Public Relations

‡ Community, Employees, Government, Financial community, Distributors, Consumers, Opinion Leaders, Media

Public Relations (cont)
Sponsorship

Public Relations (cont)
Sponsorship

Public Relations (cont)
Sponsorship

Public Relations (cont)
Visits to Workplace

Public Relations (cont)
Press releases

Direct Mail
‡ Delivery of an advertising or promotional message to customers or potential customers by mail.

Trade Fairs & Exhibitions
‡ A physical display of products and/or services. A trade fair where exhibitors display their products for sale, or a museum exhibition, where the items displayed are not for sale

Sponsorship
‡ Specialised form of sales promotion where a company will help fund an event or support a business venture in return for publicity ‡ GV Video

Marketing History
‡ 1776, Adam Smith, the father of modern economics, wrote the following passage in his famous work, µThe Wealth of Nations¶ ³Consumption is the sole end purpose of all production and the interests of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer´

Marketing History
‡ Peter Drucker believes Marketing arose in around 1650 in Japan, not America ! ‡ A member of the Mitsui family settled in Tokyo to open a µdepartment store¶ that would offer a wide assortment of products rather than focusing on a craft , category or process. ‡ In mid 1800¶s Cyrus McCormick of IHC invented the mechanized harvester, and also the tools of marketing ± MR, service salesman, credit etc
Peter F. Drucker - writer, management consultant and university professor born 1909

Sales versus Marketing
The seven main elements in the Selling Process are; ‡ The opening ‡ Need identification and stimulation ‡ The presentation ‡ Dealing with objections ‡ Negotiation ‡ Closing the sale ‡ The follow-up

The Marketing Mix
1. Product ‡ Quality ‡ Features/options ‡ Brand/Style ‡ Services/warranty ‡ Packaging ‡ Range/latest 2. Price ‡ Strategies ‡ List price ‡ Price changes ‡ Allowances ‡ Payment/finance ‡ Credit terms 3. Place ‡ Channel configuration ‡ Intermediaries ‡ Location ‡ Market coverage ‡ Order processing systems ‡ Warehousing/storage The weapons in the marketing armoury. Regarded in today¶s market as the most important µP¶ to focus on

4. Promotion ‡ Advertising ‡ Personal selling ‡ Sales promotion ‡ Public relations and publicity ‡ Direct Mail ‡ Trade Fairs & Exhibitions ‡ Sponsorship

Need for Segmentation
‡ Need for businesses to find subtle differences to stay ahead of competition ‡ Catering to specialty markets more efficient unless it is a mass, commodity product ‡ Undifferentiated marketing works best in mass markets and relies on economies of scale ‡ Differentiated marketing relies in grouping audiences on some basis into more homogeneous groups for specialised targeting

Differentiated Marketing
‡ Builds greater loyalty and repeat purchases ‡ More focused sales efforts ‡ Improves market position, better lock in with customers ‡ Efficient production, distribution, promotion ‡ Markets can be segmented on various bases ± viable segments necessary

How To Segment?
‡ Key task is to find the bases or variables for splitting the market ‡ Two types of segmenting approaches - Needs - Profilers

The Marketing Plan (cont)
3. Strategies ‡ Marketing Strategy is a set of objectives, policies, and rules that guides over time the firm¶s marketing effort ± its level, mix, and allocation ± partly independently and partly in response to changing environmental and competitive conditions

Strategy and Tactics
‡ In any situation, strategy dictates long term action and goals; tactics is concerned with immediate or short term gains; (1 year plus vs 2 or 3 months) ‡ Tactics may or may not be subservient to strategy, but strategy should never be dictated by tactics ‡ There are three types of companies ± those who make things happen, those who watch things happen and those that wonder what happened

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