Prof. Dr. Steffen Schwarz
Contents
• Generation Y
• Marketing Concept
– Marketing Targets
– Marketing Strategy
– Marketing-Mix
• Product
• Price
• Place
• Promotion
• Your Marketing Concept
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Prof. Dr. Steffen Schwarz
Context : The Generation Y
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Traditionalists1920 – 1943
Prefers formality, authority, social order, cost aware and value driven, laggards, not experimental
Baby Boomers1944 – 1968
Defined by post war optimism and values, hard working, conformist, cost aware and value driven.
Generation X1969 – 1981
Loyal, work focused, family oriented, information driven, followers, brand aware.
Generation Y1982 – 2001
Require balance, connected, self confident, entrepreneurial, goal oriented, independent, bored by routine, non family oriented, social
Prof. Dr. Steffen Schwarz
Generation Y – Some Facts
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Approximate Population % (2010)
• Canada 20.5%
• US 20.8%
• France 19.4%
• Germany 17.5%
• Italy 17.4%
• China 25%
• India 27.7%
• Japan 18.2%
• Russian Federation 24.5%
• UK 19%
Prof. Dr. Steffen Schwarz
Generation Y – Some Facts
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• Typically aged between 12 and 27 as at 2010
• Post 18 years old are less likely to leave the parental home – 30+!
• Spend more time sleeping than any other generation (male 9 hours per day, female 9.2 hours per day)
• Spend less time eating per day.
Prof. Dr. Steffen Schwarz
Generation Y – Some Facts
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• Spend almost 50% less on housework than previous generations and are more likely to pay for domestic help.
• Spend more time studying than previous generations and are career driven - ambitious
• Travel more than previous generations.
• Majority remain single until they are in their mid-late 30s.
Prof. Dr. Steffen Schwarz
Generation Y – Some Facts
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• Generation Y spend almost 50% more time per day on leisure activities than any other generation.
• 50% more time on social activities
• However, Generation Y are more culturally aware than previous groups and more likely to be interested in Theatre or live entertainment.
Prof. Dr. Steffen Schwarz
Analysis of Market and Competition
Marketing Conception
Realization
Marketing Targets
Marketing Strategy
Activities: Marketing-Mix
Product Price Place Promotion
Controlling
Informations from the analysis of market and competition are the basis of the marketing conception .
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Prof. Dr. Steffen Schwarz
Market and Competition Market and Competition Modules for Sales Planning Modules for Sales Planning
Conception
Market DemandTarget group and region
Number of customers
Demand
CompetitionNumber of competitors
Importance of competitors
Market-Potential Volume of Competition
Sales Planning
PLUS MINUS
Prof. Dr. Steffen Schwarz
1. Level Marketing Targets
Determinationof desired places
Marketing StrategiesDetermination of the right road
Marketing MixDetermination of the transport system
Levels of Marketing Conceptions
Where do we want to go?
2. Level
3. Level
How do we get there?
What do we have to do?
Conception Levels: Basic Questions:
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Prof. Dr. Steffen Schwarz
psychological
Brand Awareness Image Corporate Identity Trust Competence Customer Satisfaction
Strategic Corporate Targets
Marketing Targets
Operational Corporate Targets
economical
Sales figures Turnover Profit Growth Rate Market Share Costs Distribution
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1. Level: Marketing Targets1. Level: Marketing Targets
Prof. Dr. Steffen Schwarz
Marketing StrategyMarketing Strategy
Marketing Strategies define the path how to reach the Strategic Marketing Targets of a Company. They show the middle and and long term focusses in Marketing, especially concerning the behaviour towards customers, intermediaries (e.g. retailers, wholesalers) and competitors.
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2. Level: Marketing Strategy2. Level: Marketing Strategy
Prof. Dr. Steffen Schwarz
Four Strategic LevelsFour Strategic Levels Strategic CommitmentStrategic Commitment Strategic AlternativesStrategic Alternatives
1. 1.
Market Field StrategyMarket Field Strategy
Product / Market Combination (ANSOFF-Matrix)
Existing or new products in existing or new markets
2. 2.
Market Stimulation Market Stimulation StrategyStrategy
Decision on market manipulation
(PORTER)
Premium, discounting or „more for less“ strategy
3. 3.
Market Segmentation Market Segmentation StrategyStrategy
Decision on market segmentation Mass Marketing or segmented Marketing
4. 4.
Market Area StrategyMarket Area Strategy
Decision on market area National or international Marketing
Marketing Strategies – Customer Focussed Strategies
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Prof. Dr. Steffen Schwarz
Market Stimulation Strategies
Discounting Strategy:Discounting Strategy: Lowest cost structure in comparison to competitors, e.g. Southwest Airlines, Air Asia
Premium Strategy:Premium Strategy: Better quality and additional benefits which allow to charge a price premium, e.g.Bang & Olufsen, German premium car manufacturers.
More for Less:More for Less: You can either focus on a market niche, like German „hidden champions“ e.g. in engine construction do worldwide or you combine low prices with special quality features, e.g. H&M, Zara in retail clothing.
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Prof. Dr. Steffen Schwarz
http://www.thomassabo.com
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Premium Strategy
More for Less
www.avocadostore.de„Your market place for eco fashion and green lifestyle"
Discounting Strategy www.hotel.de
www.hotel.info
Prof. Dr. Steffen Schwarz
3. Level: Marketing Mix3. Level: Marketing Mix
The 4 P´s:The 4 P´s: PProduct
PPrice
PPlace
PPromotion
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Prof. Dr. Steffen Schwarz
„„4 Ps“ Company View --- „4 Cs“ Customer View4 Ps“ Company View --- „4 Cs“ Customer View
Customers wants & needs
Costs
Convenience Communication
Product Price
Place Promotion
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Prof. Dr. Steffen Schwarz
Product Policy in broader sense
Product policy
Quality Basic benefit Additional benefit Packaging Product image Design Prestige Brand policy
Product mix policy
Product mix breadth Product mix depth Product elimination Diversification
Service policy
Service before sales Service after sales Service within the product Commercial service Technical service Amount of service
Guarantee policy
Content Timing Kaufgarantie Complaint management
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Prof. Dr. Steffen Schwarz
High quality restaurant with online ordering and delivery via roller coaster with loopings. Growth via franchising.
http://www.sbaggers.de19
http://www.dyson.de
One product is not enough
Prof. Dr. Steffen Schwarz
Decisions in price policy:
Price fixing Methods to calculate the price
Price positioning Decision e.g. on premium or discount price
Price differentiation Different prices for target groups (e.g. students, seniors, B2B, B2C), quantities and usage times
Price strategy Prices before, during and after launch
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Prof. Dr. Steffen Schwarz
Place: Distribution- and sales-policy
Marketing instruments:
(Online-) shop, own sales force, agents, printed catalogues, phone sales,
franchising, type of transport, etc.
How to bring products/services to the customer in the right quality,
quantity and time
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Prof. Dr. Steffen Schwarz
Promotion policy
Marketing instruments:
Public relations, advertising (-channels), sales promotion, sponsoring, events, product placement, etc.
What should I tell different target groups about me and my products/services via which channel?
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Prof. Dr. Steffen Schwarz
Sales Promotion:Trousers control of ALBERTO company„Police woman“ of ALBERTO checked man trousers. Minor qualities were „punished“ with a coupon for winning a pair of ALBERTO trousers in a local shop.
Event: Red Bull Air Race
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Prof. Dr. Steffen Schwarz
Internet banner advertising
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http://www.zalando.dehttp://www.zappos.com
Tony Hsieh: Delivering Happiness
Prof. Dr. Steffen Schwarz
Your Marketing Concept
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Describe your target group exactly
How does your market and competitor analysis look like ?
Describe your marketing targets
Describe your markteting strategy
Describe your marketing-mix (4-7 P´s) in detail
Renew your Marketing concept at least once per year