MGT-519 STRATEGIC MARKETING

AAMER SIDDIQI

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LECTURE 32

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REVISION

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PROMOTION• Promotion is the method used to spread the word about the

product or service to customers,stakeholders and the broader public.

• Promotion informs consumers about therest of the marketing mix. Without it, consumers do not know about the product, the price, or the place

• Promotion refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty.

• 3 basic objectives of promotion. These are:• To present information to consumers • To increase demand.• To differentiate a product

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PROMOTIONAL MIX• Promotional Mix includes:

Personal selling – Prospecting and qualifying– Pre-approach.– Approach – Presentation and demonstration– Handling objections– Closing Follow-up

• Promotion– Consumer promotions

• Point of purchase display material• In-store demonstrations, samplings and celebrity appearances• Competitions, coupons, sweepstakes and games, On-pack offers, multi-packs • Loyalty reward programs

– Sales Force Promotions• Commissions• Sales competitions with prizes or awards 5

SALES PROMOTION ACTIVITIES (CONT’D)• Business promotions

– Seminars and workshops– Conference presentations– Trade show displays– Telemarketing and direct mail campaigns– Newsletters– Event sponsorship– Capability documents

• Trade promotions– Reward incentives linked to purchases or sales– Reseller staff incentives– Competitions– Corporate entertainment– Bonus stock

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PUBLIC RELATIONS • Public relations

– 'deliberate, – planned and – sustained effort

to establish and maintain mutual understanding between an organisation and its

public • PR can be split into 2 forms

– Proactive • communications designed to build understanding• Pro-active campaigns are long-term attempts to build on core values of the organisation

– Reactive • communications designed to counter misunderstanding.• the result of the need to counter an event that has resulted in

negative views about the organisation

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• Stakeholders are the various groups in a society which can influence or pressure your business’s decision making and have an impact on its marketing performance.

• Operationally, stakeholders really refer to those groups that your business is or should be, communicating with

• These groups include: • Clients/customers• Staff• Shareholders• Strategic partners• Media• Government• Local community• Financial institutions

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STAKEHOLDERS

KEY STEPS IN IMPLEMENTING PUBLIC RELATIONS

• The three major steps are: -• Setting the objectives – what is it you want to achieve and

who do you want to reach? • Deciding on the message and the vehicle – what is the major

thing you want to communicate • Evaluating the results – did you achieve the desired result• did it lead to a positive outcome?

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ADVERTISING

• Advertising is a 'paid for' communication • Mass, i.e. nontargeted• Direct, targeted. • Used to develop attitudes, • create awareness, and • transmit information • In order to gain a response from the target market.

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ADVERTISING

• Advertising is a form of communication designed to persuade potential customers to choose your product or service over that of a competitor

• Successful advertising involves making your products or services positively known by that section of the public most likely to purchase them.

• It should be a planned, consistent activity that keeps the name of your business and the benefits of your products or services uppermost in the mind of the consumer.

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WHY ADVERTISE

• The objective of advertising is to increase your profit by increasing your sales. Advertising aims to:

• Make your business and product name familiar to the public• Create goodwill and build a favourable image• Educate and inform the public• Offer specific products or services• Attract customers to find out more about your product or

service

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RULES OF ADVERTISING• There are four rules to consider when planning any advertising

activity• Aim - What is the primary purpose of the advertisement?

– Is it to inform, – sell, – produce listings or – improve the image of business?

• Target - Who is the target? • From which sector of the public are you trying to achieve a

response? • For example is it male, female, adult, teenager, child, mother,

father etc.

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RULES OF ADVERTISING• Media – Bearing the aim and target in mind, which of the

media available to you is the most suitable • ie: TV, radio, press or Internet?

• Competitors – What are your competitors doing? • Which media channel do they use? • Are they successful? • Can you improve on their approach and beat them in

competition?

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DEVELOPING EFFECTIVE ADVERTISING• Good advertising generally elicits the following four responses:• Attention – It catches the eye or ear and • stands out amid the clutter of competing advertisements.• Interest – It arouses interest and • delivers sufficient impact in the message or offering.• Desire – It creates a desire to learn more or crave ownership.• Action – It spurs an action • which leads to achievement of the ad’s original objective • ie: it prompts potential customers to purchase or use your

product or service.

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COMMONLY USED MEDIA•Stationery•Window display or office front• Press advertising• Radio•Television• Direct mail• Outdoor• Ambient• Cinema• Point of Sale• Online• Directory listings

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TRADE FAIRS AND EXHIBITIONS• The purpose of trade fairs and exhibitions is to increase

awareness• Encourage trial• Largely through face-to-face contact of supplier and

customer. • They offer the opportunity for companies to meet with both

the trade and the consumer, • Both to build relationships outside traditional sales meetings. • They are heavily used with B2B marketing• Within technology and engineering based products

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SERVICE MARKETING MIXEXTENDED MARKETING MIX (7Ps)

•A service is not tangible the marketing mix for a service has three additional elements: 1.Physical Evidence2.People 3.Process •By adding these three aspects to the marketing mix, you get what is known as the “7 P’s of Marketing.”

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PHYSICAL EVIDENCE• The environment in which the service is delivered and where

the firm and customer interact, and any tangible components that facilitate performance or communication of the service’.

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MATERIAL PART OF SERVICE• Physical evidence is the material part of a service. • Strictly speaking there are no physical attributes to a service,

so a consumer tends to rely on material cues. There are many examples of physical evidence,– Packaging.– Internet/web pages.– Paperwork (such as invoices, tickets and despatch notes).– Brochures.– Furnishings.– Signage (such as those on aircraft and vehicles).– Uniforms.– Business cards.– The building itself (prestigious/scenic headquarters).– Mailboxes and many others . . . . . .

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EXAMPLES OF PHYSICAL EVIDENCE• A sporting event is packed full of physical evidence. • Your tickets team's logos printed on them • Players are wearing branded kits. • The stadium itself could be impressive and have an

electrifying atmosphere. • Some organisations depend heavily upon physical evidence as

a means of marketing communications, for example tourism attractions and resorts (e.g. Disney World), parcel and mail services (e.g. UPS trucks),

• and large banks and insurance companies (e.g. Lloyds of London).

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PHYSICAL EVIDENCE• To the customer or potential customer, the physical

environment has to feel right and be in line with their expectations.

• There was a time when all bank branch staff were hidden away behind glass screens, dealing with customers through a small opening. This was inconsistent with the open and approachable stance that the banks were trying to develop. So slowly the banks started to move some staff outside into the public area so they could better interact with customers.

• The physical environment then became consistent with other elements of the marketing mix.

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PEOPLE

• People are the most important element of any service or experience.

• Services tend to be produced and consumed at the same moment, and

• Aspects of the customer experience are altered to meet the 'individual needs' of the person consuming it.

• Most of us can think of a situation where the personal service offered by individuals has made or tainted a tour, vacation or restaurant meal.

BUYING PREFERANCES

• Some ways in which people add value to an experience, as part of the marketing mix – – training, – personal selling and – customer service

PROCESSProcess is an element of service that sees the customer experiencing

an organisation's offering•This element of the marketing mix looks at the systems used to deliver the service. •Imagine you walk into Burger King and order a Whopper Meal and you get it delivered within 2 minutes. •What was the process that allowed you to obtain an efficient service delivery? •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.

THREE VIEWS ON PROCESS• All views are understandable, but not particularly customer

focused.• Three main views in the discussion of process within marketing;

1. Processes is seen as a means to achieve an outcome, – for example - to achieve a 30% market share a company implements a

marketing planning process.

2. Marketing has a number of processes that integrate together to create an overall marketing process

– for example - telemarketing and Internet marketing can be integrated.

3. A further view is that marketing processes are used to control the marketing mix i.e. processes that measure the achievement marketing objectives

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• It's best viewed as something that your customer participates in at different points in time

• At each stage of the process, markets:• Deliver value through all elements of the marketing mix.

– Process, physical evidence and people enhance services.

• Feedback can be taken and the mix can be altered.• Customers are retained, and other services or products are

extended and marketed to them• The process itself can be tailored to the needs of different

individuals, experiencing a similar service at the same time.• Processes essentially have inputs and outputs. Marketing

adds value to each of the stages

PRODUCT MANAGEMENT• Product management is an organizational lifecycle function

within a company dealing with the – planning, – forecasting, and – production, or marketing

• Of a product(s) at all stages of the product lifecycle

• The role may consist of – product development and – product marketing,

• Different (yet complementary) efforts, with the objective of – maximizing sales revenues, – market share, and – profit margins.

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PRODUCT MANAGEMENT

Product management is involved in developing an understanding of the market, leading to STP, which leads to branding and from those

to the marketing mix, in particular to product design and development. In essence Product management IS marketing in

marketing organisations

•Product management is a strategic role•Product managers bring a powerful combination of skills: product and technology expertise combined with market and domain knowledge as well as business savvy.

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• Marketing people know how to communicate; Product managers know what to communicate

• Sales people know what one customer wants to buy; Product managers must determine if the deal represents a single customer or a market full of customers.

• Developers know what can be built; product managers know whether it should be built.

• Product management is a strategic role focused on what Products and markets we can serve in the years to come.

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PRODUCT MANAGEMENT

MARKETING COMMUNICATIONS OR MARCOM ORINTEGRATED MARKETING COMMUNICATIONS (IMC)

• These are messages and related media used to communicate with a market

• They are messages from companies to the customers about– Products– Brands or – The company itself

• All marketing communication activity is a form of promotion• In one way or another it attempts to promote the interest of

the brand, product range and/or company.

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THE MARKETING COMMUNICATIONS MIX• Promotion describes the communications activities of

– advertising – personal selling – sales promotion and – publicity/public relations.

• Advertising is a non-personal form of mass communication, paid for by an identified sponsor.

• Personal selling involves a seller attempting to persuade a potential buyer to make a purchase.

• Sales promotion encompasses short-term activities• Publicity/public relations is a non-personal, not paid for

communication usually in the form of journalistic or editorial cover.

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MARCOM• The marketing communications mix is made up of personal

selling, a range of conventional advertising media and a range of non-media communication tools.

• The conventional media tools, which involve ‘renting’ space on television, newspapers, posters, radio etc., are referred to as ‘above-the-line’ promotional techniques.

• Other marketing communications techniques, such as sales promotion, sponsorship and exhibitions do not involve the commissioning of space or air-time in or on conventional media.

• These techniques are referred to as below the line techniques. Marketing effectiveness depends significantly on communications effectiveness.

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MARCOM• The market is activated through information flows. • The way a potential buyer perceives the seller’s market

offering is heavily influenced by the amount and kind of information he or she has about the product offering, and the reaction to that information.

• Marketing relies heavily upon information flows between the seller and the prospective buyer.

• To many people marketing communications, such as television advertising, direct mail and poster advertising is marketing.

• This is because marketing communications is certainly the most highly visible aspect of marketing activity and it impacts on everyday on life.

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• Marketing communications, whether above or below the line activity, is collectively just one of the ‘4Ps’ of the marketing mix.

• However, it is a very important part. No matter how good a firm’s product or service offering is, the benefits to the consumer need to be communicated effectively.

• Marketing communications, in the form of above and below the line promotion, lies at the very centre of any marketing plan.

• Within the context of a general introduction to marketing theory it is not possible to cover the subject of Marketing Communications in the depth and breadth its role in modern business demands.

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MARCOM

EXPANDING MARKETING’S TRADITIONAL BOUNDARIES

• Non-traditional marketing/Alternative Marketing/Off-Street Marketing. The major categories are as follows;

• Ambient marketing• Astroturfing or Astroturf marketing• Buzz Marketing• Cause marketing or cause-related marketing • Event marketing• Experiential marketing• Guerrilla Marketing• Grass Roots

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NON-TRADITIONAL MARKETING• Organisation marketing• Person marketing• Place marketing• Presence Marketing• Social Marketing• Social media Marketing• Sports Marketing• Tissue Pack marketing• Undercover Marketing• Viral Marketing

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THANKYOU

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