Aleksandra Mihnenoka Creative Ideas, Riga, Latvia Zadar, Croatia 31.08.2016

Let`s define marketing… • up to 10 words • 3 min

Meeting consumers’

needs profitably

Philip Kotler, guru of marketing

Satisfied

customer + Profit = Marketing

A business idea

A potential customer

?

Which tools we should use to deliver our “idea” to the potential customer?

Marketing strategy

In order to perform on a market and be a successful company, it needs to develop a marketing strategy.

1.Which customers a company is going to serve (define a target audience)

2.How a company is going to create a value for its customers and make it be profitable - customers and their needs are the core aspect of marketing (marketing mix elements)

SEGMENTATION IDENTIFYING

MENINGFULLY DIFFERENT GROUPS OF

CUSTOMERS

TARGETING SELECTING WHICH

SEGMENT(S) TO SERVE

POSITIONING IMPLEMENTING CHOSEN IMAGE AND APPEAL TO

CHOSEN SEGMENTS

It is an organized attempt for a brand to set itself apart from the crowd and influence the way their target audience perceives them. For example, Volvo develops its cars for buyers to whom safety is a principal factor, positioning the vehicles as the safest on the market, a customer can find.

Which factors can we use in order to make a segmentation?

• Write down 8-10 features that can be used for market segmentation

• Make several (1-2) combinations of these characteristics

(i.e. for youngers, elderly people, women under 40 y.o., men keen on swimming, etc.)

Target customers - every company must divide the whole market on segments, choose the segments with better opportunities, and develop a strategy how to serve particular segments.

Design Quality

Functionality Branding Packing Services

Availability Accessories

Warranty

PRODUCT

Strategy List price Discounts

Allowances Payment

period Payment methods

PRICE

Location Retail

Wholesale Internet

Direct sale Multi-channel

PLACE

Ad Personal selling

Special offers Free gifts User trials

Public relations Direct mailing

PROMOTION

MARKETING MIX 4Ps

Employees Management Sales people,

etc.

PEOPLE

Customer service during purchase and

after

PROCESS

Layout Facilities

Everything that approve a purchase

PHYSICAL EVIDENCE

EXTENDED MARKETING MIX 7Ps

MARKETING MIX

Product life cycle (PLC)

describes the stages a product passes through from the idea until it is removed from the market

display the direction of product`s sales and profits during its lifetime

helps entrepreneurs to interpret product and market dynamics, conduct planning and control, and forecast

helps marketers to determine necessary changes in product, its price, place (distribution channels) and promotion according to the particular stage of the cycle.

Introduction Growth Maturity Decline

Sales

Time

PLC

Apple iPhone s6

Group work: 1. Read the information

about the company – 10 min

2. Make a short presentation of its marketing mix elements – 2 min

3. What is in common?

What about your budget? How much money do you have to promote your product/business and increase people`s awareness?

..You do not have enough money?!

..A budget is restricted?!

Then low-cost marketing is for you!

Public Relations Advertising vs. Public Relations – what`s the difference?

Low-cost marketing: The power of social networks

The most influential way to promote your product and reach the target audience is the power of social networks

1. What social networks

do you know/use?

Describe the chosen social

network, and ask the

questions:

1. What are the pros-and-cons

of this social network?

2. Is it good for B2B or B2C?

3. For goods or services?

Network Description Good for

Facebook 1.5 billion monthly active users, mobile users ≈ 87%

Mobile ad revenue makes up 76% of all ad revenue ($2.9 billion in Q2 of

2015)

Users share 1 million links every 20 minutes

B2C

Great opportunities for

mobile engagement

Twitter Micro blogging social site with limited posts of 140 characters

289 million active users and 9,100 tweets happen every second; mobile

phone users ≈ 86%

Is often powered by potential customers who respond well to links (blog

links), user base is much more diverse and text oriented

B2B, B2C

Real-time conversation

with consumers.

Opinion analysis

Instagram Social sharing site all around pictures and 15 second videos

300 million active users, almost 99% are mobile users

Can participate through the use of hashtags, geotags and posting pictures

consumers can relate to

B2C

Visual product

Integration with

Facebook

LinkedIn Environment appealing to the business community, job seekers, and

corporate recruiters

380 million users worldwide

79% of users are 35 or older

≈26% use mobile version

B2B

Interaction with older

generation

Professional interaction

Pinterest Social site that is all about discovery concerning decor, crafts, cooking,

health, and fashion

70 million users, more than 90% are mobile users

80% of users are female

B2C

Alternate for extremely

visual products/services,

Best for retail

Low-cost marketing: Guerrilla marketing

- achieving conventional goals, such as profits and joy, with unconventional methods, such as investing energy instead of money

• Emphasizes creativity over budget.

• Strategies are often cheap and easy to implement.

• Distinctive feature - close interaction with a target audience.

• Relies on creative, unexpected and provocative campaigns.

The aim of such campaign is

• to take the consumer by surprise (to have a psychological impact on the target audience),

• make an unforgettable impression and create extensive social buzz (among people and media),

• in many cases this kind of marketing have no ethical restrictions.

Low-cost marketing: Guerrilla marketing - ways to implement

• Guerrilla performances

• Flash mobs

• Direct mailing

• Using urban environment for Guerrilla installations

• Everything else to attract people’s attention and make product or business visible and known

Sony’s campaign in 2002;

Nivea campaign -

https://www.youtube.com/watch?v=

4N22-SsJtAg ;

Christina Aguilera perfume

promotion -

https://www.youtube.com/watch?v=

5lj2WtHwBWM,

advertising campaign of Latvian

journal “Ir” -

https://www.youtube.com/watch?v=

7pS3NnOCvK0 1. Create a pseudo-event that is

related to the brand/company

2. The aim is to create a

profitability, not an event it self

Guerrilla marketing - Examples

Israel Cancer Association hosted a guerrilla

marketing campaign with towels that look like

burning charcoal under a grill and placed

roughly 50 towels on the beach from early

morning to late afternoon.

Tel-Aviv, 2011

Anti Smoking Stickers

Source of images: Pinterest

World Wildlife Fund (WWF): Save Paper – Save

the Planet (2007)

Guerrilla marketing - Examples

Implemented campaign of the organization Oro

Verde in order to defense the trees, Germany, Source of images Pinterest

Guerrilla marketing - Examples

Nivea: Goodbye Cellulite Sofa, USA, 2008

Nestle: Benchvertising

Source of images: Pinterest

Guerrilla marketing - Examples

Source of images: Pinterest

Guerrilla marketing - Examples

Hairdresser: Manchester, UK

See more: http://www.creativeguerrillamarketing.com/guerrilla-marketing/122-must-see-guerilla-marketing-examples/

Source of images: Pinterest

Guerrilla marketing - Examples

Elmex used two rows of lockers to create a mouth with teeth. Opening a locker gave the illusion that there was a hole in one of them. To complete the experience, a product

sample and additional information about the toothpaste and its benefits were waiting inside the locker.

Apple’s promotion of the “home stereo system” for the iPod, the iPod Hi-Fi (2014)

Source of images Pinterest

Guerrilla marketing - Examples

King Kong 3D Guerrilla Marketing Campaign at the Beach (USA, Santa Monica, 2011)

Copenhagen Zoo: Snake Bus Giant constrictor snake squeezing complete Copenhagen city-bus. (2009)

Source of images Pinterest

Guerrilla marketing - Examples

Ariel advertisement in magazine, Dubai

DHL,China

Adidas

See more: http://www.creativeguerrillamarketing.com/guerrilla-marketing/creativedoublepagemagazineads/

Source of images Pinterest

Hyundai Getz campaign of 2008 Five Hyundai Getz cars were equipped with trolleybus booms. They were racing the city and speeding down at the public transport stops. Hyundai Getz was positioned as the cheapest new car available in Latvia, primary target group was people who don't own any car yet and who use public transport. As trolleybus routes are restricted campaigns slogan was: "You can choose Your own route tomorrow!"

Stockmann: Trakās dienas (“crazy days”)

Zelta Zivtiņa Zelta Zivtiņa: tram (2008/2009)

Zelta Zivtiņa: pedestrian tunnel in Riga, latvia

Zelta Zivtiņas tunell is a pedestrian tunnel under 13. Janvara street in Riga. Named after Zelta Zivtina (Gold Fish) mobile prepayment card, owned by TELE2. Got recognition of Golden Hammer in 2009.

Low-cost marketing: Guerrilla marketing: Training

1. https://www.youtube.com/watch?v=5SMG5AaQyRk&feature=youtu.be

2. https://www.youtube.com/watch?v=pvMF-InnJnQ&feature=youtu.be

3. https://www.youtube.com/watch?v=bFPQe7Ne-14&feature=youtu.be

1. What is your attitude to the

campaign?

Positive/Negative/Why?

2. How do you think, was it an

efficient campaign?

3. Was it a permissible way to

promote a product? Why?

4. How the campaign affected

publicity (PR) of the

company?

Case study of “Meteorite” –

advertising campaign of

Swedish mobile phone

operator Tele2, conducted in

2009 in Latvia. Watch several

videos about the implemented

campaign and answer the

questions

Discussion: Mention, please,

advantages &

possible diadvantages

of Guerrilla marketing

(3 min)

Group work:

Training

1. Develop a sketch (use less

words, more pic) of the

marketing mix elements for

your product (10-12 min)

2. Present it to the others (3 min)

Group work:

Thank you!