Marketing

By
Dr.J.R.Das
Professor
S ‘O’A University
 Marketing
Preview
1. What is marketing?
2. How are markets analysed?
3. What product can I sell where
at what price?
4. Have my marketing measures
been effective?
 Definition
MARKETING includes all the activities
needed to direct the flow of goods and
services from producers to consumers.

 at least two parties

 each has something to offer
 must be able to communicate
 must be able to deliver
 parties must be free to accept
or reject offers
 Roles of marketing
main roles:
• advertising (advertising and promotion managers)
• selling (sales representatives/sales force)
but also:
• product development
(brand and product managers)
• packaging
(packaging designers)
• pricing
(pricing specialists)

• distribution
(sales personnel)
 Marketing Process
three elements:
1. Market analysis
(Who will buy?)

2. Marketing-mix planning
(What? Where? How much? How?)

3. Marketing control
(Have we been successful?)
 1. Market analysis (STP)

a) Segmentation
niche segment

individuals

b) Targeting: Who are my customers?

c) Positioning: What is my main selling point?

2. Marketing mix planning (4 P)

= developing a tactics to achieve strategic aims

aim: to make customers from the target group buy

elements:

a) Product
b) Price
c) Place
d) Promotion
 3. Evaluation and control
= looking back at the entire process to find out
whether or not it was successful

Why control?
• planning is no guarantee for profit
• markets change constantly
• strategies not always effective
Tools:
a)Annual- plan control
b)Profitability control
c)Efficiency control
d)Strategic control
Review
1. Market analysis (STP)
 Segmentation
 Targeting
 Positioning

2. Marketing-mix planning (4 P)
 Product
 Place
 Price
 Promotion

3. Marketing control
 Annual-plan control
 Profitability control
 Efficiency control
 Strategic control
 a) Product

Product development

 traditional economies: same things

produced and consumed
 nowadays:
- products have a life cycle
- product range is constantly expanded
- find out what target market desires

Consequence is adjustment of:

- production
- research & development
- personnel administration
- finance
- public relations
Packaging

Branding

• create clear message

• create credibility
• involve emotionally
• motivate
• invite user loyalty

back
 b) Price
Pricing strategies:
1. Market determines
the price

2. Price as an expression

of quality
3. Price as a method of
gaining market share

back
 c) Place (distribution)
Production site Warehouse Wholesaler

- factory outlet
- mail order house
- internet
- TV shopping
- door-to-door selling

consumer Retailer
back
 c) Promotion

Aims:
 communicate with customers
 influence customers

4 major tools:
1. Sales force
2. Advertising
3. Sales promotion
4. Public relations

back
1. Sales force
Representatives who advertise for and sell products
 they personalize the promotion process

effective at selling complex goods

most expensive promotion

back
 2. Advertising
Presents a reason to buy a product/service

Media:

back
 3. Sales promotion
 is a short-term incentive
(Anreiz) to buy a product/service

Techniques:
1 price reduction
2. loyalty reward points

3. two for one

 attracts brand switchers

back
 4. Public relations

Does not aim to increase sales directly but

tries to boost the image of the company

Techniques:
- press conferences
- contests
- community events
- charitable events
- ecological projects
- foundations

back
 a) Annual-plan control

Tools:
1. Sales analysis
(Did we sell as much as we planned?)
2. Market-share analysis
(Have we lost or gained market share?)
3. Marketing expense-to-sales analysis
(Did the marketing efforts pay?)

back
 b) Profitability control
Do we have more earnings than expenditures?

Strategies:
• few expensive products and few customers

• many cheap products and many customers

Aim:
Which of my products is the most profitable?

back
 c) Efficiency control

Are my marketing methods profitable?

Example: Avon Lady (sales representative)

 how many doors in what time?
 how many products sold?

back
 d) Strategic control
Is my marketing program effective
over a long period of time?
 marketing philosophy

Positioning USA: “big and powerful”

after few years: Is this positioning still OK?

 information policy
- enough advertisement?
- enough promotion?
back
 1. Sales analysis

Comparison  sales goals (100 units)

 actual sales (20 units)
_____________
discrepancies???
reasons

 better product of the competitors

 decline of the economic situation
 wrong calculation
back
 2. Market share analysis

analysis of the competition on the market

Rates of selling beauty cases

17%
28%
Gucci

13% Joop
Dolce & Gabbana
Kuniberg

42%

back
 3. Marketing expense-to-sales
analysis

• How much did my marketing activities cost?

• What sales numbers have these activities
generated?

Example: expenses (costs): € 200.000

sales revenues: € 200.001
=> We have a problem!!!

back
Thank You