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Marketing
Buzzwords of confusion
Sales versus Marketing
Market Research &Marketing Research
Event Marketing
SWOT, PEST, KPIs,
USPs, DINKYs etc
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As Event Managers,
why is it important we understandwhat Marketing is?
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Interactive
Media
Radio
Television
OutdoorPrint
Media
Internet
Below
the line
Events
Important Part of the Marketing Tactics
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Example of Events in Marketing
The PepsiChallenge has beenan ongoingmarketing promotion
run by PepsiCo forthe last 2 decades
1980s PepsiChallenge built
around a premisethat had to beestablished live
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The challenge takes the form of a taste test. At publiclocations, a Pepsi representative sets up a table with twoblank cups, one containing Pepsi and one with Coke.
Shoppers are encouraged to taste both colas, andcorrectly identify which is Pepsi and which is Coke. If
they can correctly identify the two, they win a prize.
Example of Events in Marketing
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Events within Marketing
Marketing(A Philosophy)
Events
The Marketing Mix (Tactics)
Product Price Place Promotion People Physical
Evidence
Process
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Agenda
Marketing What is it?
The Marketing Mix
The Environment The Marketing Plan
The Promotion Focus
Events (Face to Face Communication)
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What is Marketing ?
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The agrarian economy was largely self sufficientand trade was mostly through barter
The industrial revolution in early 19th centurysuddenly created surplus putting pressure onmanufacturers to find markets that could absorbthe 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
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The Sales Era lasted till the 2nd world war
Post war boom started the consumeristwave money in the hands of people, andlarger number of enterprises makingsimilar products
Product proliferation made business very
competitive It was this that paved the way for
Marketing
Marketing History
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Orientation Stages
Production Oriented
Firms tend to manufacture and offergoods that they are good at producing
Sales OrientedThe Hard Sell, firms now realise thatdue to competition the goods have tobe sold. Sales volume becomes themost important criterion
Marketing Oriented
The firm ascertains the genuine needsand wants of specifically defined targetmarkets and then produce goods andservices that satisfy the customerrequirements
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Marketing Some Descriptions
Marketing is a human activity directed at
satisfying human needs and wants
through exchange process
The customer is always right
The right product, in the right place, at the
right time, at the right price
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Marketing Definitions
Marketing is the management process whichidentifies, anticipates and supplies customerrequirements efficiently and profitably
Chartered Institute of Marketing
Marketing is the process of planning andexecuting the conception, pricing, promotion,
and distribution of ideas, goods and services tocreate exchanges that satisfy individual andorganizational objectives
American Marketing Association
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Sales versus Marketing
Sales process beginswith the producer
Based on what theproducer can make
Seller defines the price
Focus on finding buyersand selling them anyhow
The sale is the end of thetransaction
Product attributes static,as long as it sells
Marketing begins with theconsumer
Based on consumer needsand 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
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Sales versus Marketing
Marketing is involved with the planning of
the presentation of the firms capabilities;
whereas Sales is the execution of the transfer or
exchange of the product, good or
service.
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Sales versus Marketing
Marketing is a strategic function and has anumber of tactical activities, of which selling isone.
The primary function of sales is to find andclose leads, turning prospective customers inactual ones
Sales definitionIncome (at invoice values) received for goodsand services over some given period of time
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Presentation Status
Marketing What is it?
The Marketing Mix
The Environment The Marketing Plan
The Promotion Focus
Events (Face to Face Communication)
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The Marketing Mix
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The Marketing Mix The 4 Ps
The variables that the marketing manager can control in
order to best satisfy customers in the target market
Target
Market
2. Price
1. Product
4. Promotion
3. PlaceThe physical product
or service offered to
the consumer.
Channels of distribution
to get the product to the
consumer.
Producer-Wholesaler-
Retailer-Customer
Financial aspects of the
process; price levels,
profit margins etc.
The communication and
selling to potential
customers
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The Extended Marketing Mix
5. People
Employees are in direct
contact with customers
and therefore must be
considered the in the
developing the
marketing mix
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The Extended Marketing Mix
6. Physical Evidence
Service has an
intangiblecharacteristic, thereforeimportance is placed onmore tangible elementsof the service mix such
as facilities andequipment.
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The Extended Marketing Mix
7. Process
How the service is
provided is important.Procedures for dealingwith customers at thepoint of contact, and the
supply of a consistentquality service must bepre-planned andmanaged
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Presentation Status
Marketing What is it?
The Marketing Mix
The Environment The Marketing Plan
The Promotion Focus
Events (Face to Face Communication)
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The Environment
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Components of Communication
Encoder Decoder
Channel
Message
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Organisational Buying Process
Need recognition
Determine specification (general)
Determine specification (specific)
Search
Evaluation
Selection
Post-purchase evaluation
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Comsumer Buying Process
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Market Analysis PEST A framework to scan the external macro-
environment in which a firm operates
Price
Product
Promotion
Place
Company Economic
Socio-Cultural
Techno-
logical
Political
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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 producersstarted 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
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Segmentation & Targeting
If segmentation is about breaking up a massmarket into more specific subsets, targeting is allabout the decisions to appeal to them
Treating them all as one large group with acommon interest is called UNDIFFERENTIATEDmarketing
Selecting one small niche and catering to thatsegment is called CONCENTRATED marketing
Identifying several unique subsets and talking tothem individually is called DIFERENTIATEDmarketing
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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
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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 makechange (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 theirproblems, likes to acquire tools that help in the innovation process.
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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)
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1. Market Segment
Segmentation is essentially the identification of subsets ofbuyers within a market who share similar needs and whodemonstrate similar buyer behavior.
by geography region, climate, population density andgrowth
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, pricesensitivity
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2. Targeting the Market
After the market has been separated intoits segments, the marketer will select asegment or series of segments and 'target'
it/them
It's like looking at a dart board or ashooting target. You see that it has areas
with different scores - these are yoursegments. Aiming the dart or the bullet ata specific scoring area is 'targeting'
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2. Targeting the Market (cont)
Eg. The Car Industry
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2. Targeting the Market (cont)
Eg. Rolls Royce
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2. Targeting the Market (cont)
Eg. Washing Powder
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3. Position in Market
After segmenting a market and then targeting aconsumer, you would proceed to position aproduct within that market
Positioning is all about 'perception
Products or services are 'mapped' together on a
'positioning map'. This allows them to becompared and contrasted in relation to eachother
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EG. Automotive
Positioning Map
3. Position in Market (cont)
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Presentation Status
Marketing What is it?
The Marketing Mix
The Environment The Marketing Plan
The Promotion Focus
Events (Face to Face Communication)
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The Marketing Plan
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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.
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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.
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The Marketing Plan (cont)
1. Analysis
The environment (PEST) Internal Audit
Competitors
SWOT
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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 expertiseNatural resources
Patents
New product / service
Location
Quality process or procedure
Developing marketMergers 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
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
Poor quality of goods or service
Damaged reputationLack of marketing expertise
Location of business
Competitors have superior resources
Weak HR and personnel
New competitor in home marketPrice war
Innovative product/service from competitor
New regulations
Increased trade barriers
Taxation on product / service
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The Marketing Plan (cont)
2. Objectives (SMART) Specific
Be precise about what you are going to achieve
MeasurableQuantify you objectives
Achievable
Are you attempting too much?
RealisticDo 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?)
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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, Ansoffs Matrix
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The Marketing Plan (cont)
4. Tactics
Convert the strategy into the marketing mix (4 ps)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?
PRODU
CT 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
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The Marketing Plan (cont)
5. Control
Remember that there is no planning withoutcontrol. Control is vital.
Start-up costs
Monthly budgets
Sales figure
Market share data
Monitor and Evaluate plan
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Marketing Budgets
Gear your marketing efforts to the most cost effectiveuse
Budgets include everything from equipment investmentsto soft company support of community events
Keys areas could be: (mix) Advertising; public relations Product packaging
Sales force / commercial incentives
Marketing budget should anticipate results; internallysell the expenditures for each piece; support most
important objectives Some marketing organizations have P/L responsibility
You cant make a buck, without spending a buck
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Campaign Framework
Marketing
Communication
Objectives &
Strategy
Marketing
Communication
Tactics
Campaign
Implementation
Campaign
Evaluation &
Control
Specific
Measurable
Short Term
Targets
Budgets
Creative
Media selection
Below the linepromotions
Sales forcePublic relations
Distributionchannels &management
National Launch orsmaller scalecampaign
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Presentation Status
Marketing What is it?
The Marketing Mix
The Environment The Marketing Plan
The Promotion Focus
Events (Face to Face Communication)
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The Promotion Focus
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Events within Marketing
Marketing(A Philosophy)
Events
The Marketing Mix (Tactics)
Product Price Place Promotion People Physical
Evidence
Process
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Push & Pull Marketing Strategies
PUSH
Marketing efforts
targeted at the
middlemen and the
salesforce
PULL
Marketing efforts
targeted at consumers
Cash discounts
Dealer competitions
Salesforce cash incentives
Direct Mail shots
Credit facilitiesTrade Exhibitions & Events,
Demonstrations
Training schemes
Price reductions,
Coupons
Free samples/demos in
stores
Competitions
Buy one get one free,
Packaging,
Point of Sale displays,
ConsumerAdvertising
Sponsorship
CHANNELS
OF
DISTRIBU
TION
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The Promotion Cake The basic ingredients are always the same. However if you vary the amounts ofone of the ingredients, the final outcome is different. You can 'integrate' different
aspects of the promotions mix to deliver a unique campaign cake.
Personal
Selling
Advertising
PR
Direct
Mail
Sales
Promotion
Events
Sponsorship
Personal
Selling
Advertising
PR Direct
Mail
Sales
Promotion
Events
Sponsorship
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Advertising
Advertise make knownTo inform
An advertisement to be successful;
Must be seen Must be read
Must be believed
Must be remembered Must be acted upon
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Presentation Status
Marketing What is it?
The Marketing Mix
The Environment The Marketing Plan
The Promotion Focus In progress
Events (Face to Face Communication)
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Presentation Status
Marketing What is it?
The Marketing Mix
The Environment The Marketing Plan
The Promotion Focus In progress
Events (Face to Face Communication)
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Marketing Plan Example
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Presentation Status
Marketing What is it?
The Marketing Mix
The Environment The Marketing Plan
The Promotion Focus
Events (Face to Face Communication)
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Events
(Face to Face Communication)
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An Overview of Events
Events
Award Ceremonies
Carnivals
Concerts
Conferences
Corporate Events
Exhibitions
Festivals Fashion Shows
Product Launches
Promotions
Road Shows Seminars
Sporting Events
Trade Fairs
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Award Ceremonies
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Carnivals
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Concerts
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Conferences
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CarLaunch
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Exhibitions
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Festivals
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Fashion Show
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Opening Ceremony
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Product Launch
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Sporting Event
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Tourist Events
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Weddings
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Presentation Status
Marketing What is it?
The Marketing Mix
The Environment The Marketing Plan
The Promotion Focus
Events (Face to Face Communication)
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Brand
Building
Events
Product
Displays
Brand
Awareness
Merchandising
Promotions
PR
DriverEntertainment
Brand
Building
Brand
PositioningVisibility
Personal
Selling
Tangible
Sales
Research &
Planning
Brand
Communication Product
Sampling
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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 Face-to-facestyle medium of communication.
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Marketing Dictionary
Above the Line Advertising for which a payment is made and forwhich commission is paid to the advertising agency. See also'below the line' and 'push versus pull promotion
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 - aunique combination which the name or logo of the product orservice should evoke in the mind of the audience.
Brown Goods Electrical goods such as TVs, videos, stereosystems etc, used for home entertainment. So called becausethey were originally cased in bakelite, a brown plastic.
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Marketing Dictionary
Buzz marketing uses 'word-of-mouth' advertising: potentialcustomers pass round information about a product. See also 'viralmarketing
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. Similarlaw covers logos and brand names
Copywriting Creative process by which written content isprepared for advertisements or marketing material
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Marketing Dictionary
Customer Relationship Management (CRM) The coherentmanagement of contacts and interactions with customers. (Thisterm is often used as if it related purely to the use of IT, but ITshould in fact be regarded as a facilitator of CRM.)
Decision MakingUnit (DMU) The team of people in anorganisation who make the final buying decision
Differentiation Ensuring that products and services have aunique element to allow them to stand out from the rest
DINKYDouble Income No Kids Yet - a demographic grouping
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Marketing Dictionary
Direct Marketing All activities which make it possible to offergoods or services or to transmit other messages to a segment ofthe 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 aretail outlet
Endorsement Affirmation, usually from a celebrity, that a productis good
FMCG Fast Moving Consumer Goods - such as packaged food,beverages, toiletries, and tobacco
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Marketing Dictionary
Focus Groups A tool for market research where small groups ofcustomers are invited to participate in guided discussions on thetopic being researched
Grey Marketing (also called Parallel Importing) The illicit sale
of imported products contrary to the interests of a holder of atrademark, patent or copyright in the country of sale
Guerrilla Marketing The strategy of targeting small andspecialised customer groups in such a way that bigger companieswill not find it worthwhile to retaliate
Logo A graphic, usually consisting of a symbol and/or group ofletters, that identifies a company or brand
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Marketing Dictionary
Macro Environment The external factors which affect acompanys planning and performance, and are beyond its control:for example, socio-economic, legal and technological change.Compare 'micro environment
Market Penetration The attempt to grow one's business byobtaining a larger market share in an existing market - see'market share' and 'market development
Micro Environment The immediate context of a company'soperations, including such elements as suppliers, customers and
competitors - compare 'macro environment
Personal Selling One-to-one communication between seller andprospective purchaser
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Marketing Dictionary
PIMS Profit Impact of Marketing Strategies: a US databasesupplying data such as environment, strategy, competition andinternal data with respect to 3000 business. This data can beused for benchmarking purposes
Point of Sale (POS) (also called Point of Purchase) Thelocation, usually within a retail outlet, where the customer decideswhether to make a purchase. See also 'EPOS - Electronic Pointof Sale'
Portfolio (and PortfolioAnalysis) The set of products or
services which a company decides to develop and market
Product Life Cycle A model describing the progress of a productfrom the inception of the idea, via the main period of sales, to itseventual decline
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Marketing Dictionary
Promotional Mix The components of an individual promotionalcampaign, 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 thefirst purchase.
Return on Investment (ROI)/Return on Capital Employed(ROCE) The value that an organisation derives from investing ina project
Skimming Setting the original price high in the early stages of theproduct life cycle in an attempt to get as much profit as possiblebefore prices are driven down by increasing competition
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Marketing Dictionary
Supply Chain The network of suppliers, manufacturers anddistributors involved in the production and delivery of a product
Unique Selling Preposition (USP) The benefit that a product orservice can deliver to customers that is not offered by any
competitor: one of the fundamentals of effective marketing andbusiness
Value Preposition The set of qualities of a good or service thatallows it to fulfill the customer's needs and desires, as opposed tosimply benefiting the seller
White Goods Large electrical devices for domestic use, such asfridges, freezers and dishwashers. Used to be cased in whiteenamel, hence the name
Boston Consulting Group
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Boston Consulting Group
Growth Share Matrix
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Boston Share Matrix
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Product Life Cycle
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Maslows Hierarchy
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Pricing Strategies Matrix
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Ansoff Matrix
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The Relationship
Determine marketing objectives
Identify and select marketing strategies
Identify and select marketing tactics
C
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Consumer Buying Process
ABTL & BTL
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ABTL & BTL
Above the Line
Direct Advertising
An artificial concept used by AdvertisingA
gencies to distinguish between promotionalexpenditures that were commissionable andthose that were not
Below
the Line Promotional activity
All non media promotion
Ad ti i
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AdvertisingOutdoor
Ad ti i ( t)
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Advertising (cont)Outdoor
Ad ti i ( t)
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Advertising (cont)Outdoor
Ad ti i ( t)
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Advertising (cont)Magasines
Ad ti i ( t)
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Advertising (cont)Newspapers
Ad ti i t S hi
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Advertising meets SponsorshipA MIX
P l S lli
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Personal Selling
One-to-one communication
between seller and
prospective purchaser
P l S lli ( t)
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Personal Selling (cont)Media Kit
P l S lli ( t)
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Personal Selling (cont)Sales and
Marketing
Barge
S l P ti
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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.
P blic Relations
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Public Relations
The deliberate, planned and sustainedeffort to establish and maintain mutualunderstanding between an organisation
and its public Institute of Public Relations
Community, Employees, Government,
Financial community, Distributors,Consumers, Opinion Leaders, Media
Public Relations (cont)
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Public Relations (cont)Sponsorship
Public Relations (cont)
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Public Relations (cont)Sponsorship
Public Relations (cont)
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Public Relations (cont)Sponsorship
Public Relations (cont)
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Public Relations (cont)Visits to
Workplace
Public Relations (cont)
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Public Relations (cont)Press releases
Direct Mail
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Direct Mail
Delivery of an advertising or promotional
message to customers or potential
customers by mail.
Trade Fairs & Exhibitions
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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
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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
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1776, Adam Smith, the father of moderneconomics, wrote the following passage inhis famous work, The Wealth of Nations
Consumption is the sole end purpose of allproduction and the interests of theproducer ought to be attended to, only so
far as it may be necessary for promotingthat of the consumer
Marketing History
Marketing History
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Peter Drucker believes Marketing arose inaround 1650 in Japan, not America !
A member of the Mitsui family settled in Tokyo toopen a department store that would offer a
wide assortment of products rather than focusingon a craft , category or process.
In mid 1800s Cyrus McCormick of IHC inventedthe mechanized harvester, and also the tools of
marketing MR, service salesman, credit etc
Peter F. Drucker - writer, management consultant and university professor born 1909
Marketing History
Sales versus Marketing
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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
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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 processingsystems
Warehousing/storage
4. Promotion
Advertising
Personal selling
Sales promotion
Public relations and publicity
Direct Mail
Trade Fairs & Exhibitions
Sponsorship
The weapons in themarketing armoury.
Regarded in todaysmarket as the mostimportant P tofocus on
Need for Segmentation
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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 homogeneousgroups for specialised targeting
Differentiated Marketing
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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?
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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)
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The Marketing Plan (cont)
3. Strategies
Marketing Strategy is a set of objectives,
policies, and rules that guides over time
the firms marketing effort its level, mix,and allocation partly independently and
partly in response to changing
environmental and competitive conditions
Strategy and Tactics
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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 whomake things happen, those who watch things
happen and those that wonder what happened