the art of fmcg ( part four )
TRANSCRIPT
To all my dear friends ,, brothers ,,
colleagues ,, managers ,, team who
support me , motivate me ,, gave me the
true beloved advice ... Who learn me to
be an ambitious and curious to learn ,,
search for the goals and hungry to know
a lot about all the fields in my life ....
Through more than 8 years of working
in FMCG i learned that the success and
progress didn't come by luck but by the
hard work and challenge your self and
ur obstacles ...... The more u work and
learn ..... The more u can achieve your
targets .....Thank u .... I appreciate all of
ur efforts
First You must see this video
https://www.youtube.com/watch?v=mA
7ms-6wTeq
GTM GO TO Market
Go-to-market or go-to-market strategy is the plan of an
organization, utilizing their inside and outside resources
(sales force and distributors), to deliver their unique value
proposition to customers and achieve competitive
The end goal of a go-to-market strategy is to enhance the
overall customer experience taking into account various
aspects of the value proposition such as the quality of the
product and pricing
Developing a go-to-market strategy
Go-to-market strategy processes
Processes of a go-to-market strategy
In the earliest stages of developing a go-to-market strategy
for a new product or a service, the company has to initially
conduct an accurate definition of the target market. The
company has to decide, whether they already have a
prospective customers within their customer base but using
different services
After defining the market, the product or service is
researched until a final decision has been made on what the
value proposition will be. Then the company determines its
pricing strategy. It is very challenging to decide what pricing
strategy to follow as it differs from one product or service to
the another, or even when the product or service remains
the same but the strategy changes, such as switching to
subscription-based pricing (an example for this is Adobe's
major shift from selling its Creative Suite software which
included all Adobe's products such as Photoshop and
Illustrator, to a $50-per-month Creative Cloud and various
other subscription plans.
Moreover, choosing the right distribution and marketing
channels followed by promotion, are very vital steps in a go-
to-market strategy. A company has to decide which
distribution model to choose, what kind of support and
services are required and addressing the possibility of
creating a competitive advantage. Afterwards, the company
decides how it is going to promote its product or services
and what kind of marketing campaigns are the most
influential to follow
Driving factors in a go-to-market strategy
When considering to develop a go-to-market strategy, there
are 3 essential factors to focus on
Customers
Delivering exceptional customer experiences leads to loyalty
and advocacy of the customer. Consequently, that triggers
increase in product purchase, customer retention and low
cost of service
CompanyTaking company's mission and vision into account
is a key determining factor when performing a go-to-market
strategy. Motivating employees to perform well is a decisive
factor to include. Thus, defining company's vision and what
kind of impact it is trying to create is essential in the earliest
stages of a go-to-market strategy
Competition
Understanding the competition is crucial in deciding what
product or service to offer. Gathering information about
how competitors are performing in the market, what
customers think of the different products available and what
is missing in the market through conducting research using
different methods such as SWOT and PEST analyses
Market Segmentation in a go-to-market strategy
Market segmentation is dividing the prospective customers
into different groups (segments) that have common needs
and the same expected reaction to a marketing action. This
approach enables companies to offer customers full value
proposition of their products or services
P7's of Marketing
Marketing P's. Used in targeting and defining a market in a
go-to-market strategy.
There are common factors considered when performing a
market segmentation in a go-to-market strategy
Industry: The type of industry the customer involved in.
Customer size and sales potential of the customer.
Customer behavior: Studying the customer's behavior
related to the product or service such as the customer
buying from a competitor or examining the responsiveness
to selling effort.
Geography: Geographical locations of prospective buyers.
Application and use of the product or service by the
customer.
Benefits earned by the customer due to buying the product
or service.
Information which is required to be provided by the
company to the customer.
Usage situation: When and where the product or service is
used.
Profitability of selling to a certain customer.
Go-to-market strategy and marketing strategy
The definition of a marketing strategy is the strategy of an
organization which includes every marketing activity, that
helps the organization to target the market after conducting
market research
Go-to-market strategy is usually performed
during introduction of new products or services, while a
marketing strategy of an organization combines all of its
marketing goals including the go-to-market strategy.
Marketing strategy covers
The products or services of a business.
market share and position of those products and services.
Identification of clients and competitors.
Basics of a marketing plan.
Example of a go-to-market strategy
An example of using a go-to-market strategy could be
observed in the automobile insurance industry. Initially, the
company has to choose the right segment of the market
(market segmentation). If the customers are considered
individual households, then the company works on creating
interest to their prospective customers using different forms
of media such as TV advertisements, social media and
billboards. Once the customers are persuaded to proceed,
they are offered to purchase for the service through
different channels such as the internet (company's website)
or agents, both of which act as entities responsible for
customer service.
In case of customers being corporate accounts during the
market segmentation process, interest creation and purchase
are done through direct sales, agents or the internet. Tele-
service and direct service representatives serve as contacts
after the purchase is done
Every company can have different ideas or philosophy. For example, a
particular company can have its idea or philosophy that if the production is
done on a large scale, the cost would be less and the product would be sold
automatically
In this way, such a company will concentrate mainly on the large scale
production of goods. Similarly, some other company can have a different idea.
It may have an idea that if the quality of the product is improved, there will be
no difficulty in selling the product.
Under the marketing management philosophy, we shall
study the following five concepts:
(1) Production Concept
(2) Product Concept
(3) Selling Concept
(4) Marketing Concept
(5) Societal Marketing Concept
1. Production Concept
Those companies who believe in this philosophy think that if the
goods/services are cheap and they can be made available at many places, there
cannot be any problem regarding sale.
Keeping in mind the same philosophy these companies put in all their
marketing efforts in reducing the cost of production and strengthening their
distribution system. In order to reduce the cost of production and to bring it
down to the minimum level, these companies indulge in large scale production.
This helps them in effecting the economics of the large scale production.
Consequently, the cost of production per unit is reduced.
The utility of this philosophy is apparent only when demand exceeds supply.
Its greatest drawback is that it is not always necessary that the customer every
time purchases the cheap and easily available goods or services.
2. Product Concept
Those companies who believe in this philosophy are of the opinion that if the
quality of goods or services is of good standard, the customers can be easily
attracted. The basis of this thinking is that the customers get attracted towards
the products of good quality. On the basis of this philosophy or idea these
companies direct their marketing efforts to increasing the quality of their
product.
It is a firm belief of the followers of the product concept that the customers get
attracted to the products of good quality. This is not the absolute truth because
it is not the only basis of buying goods.
The customers do take care of the price of the products, its availability, etc. A
good quality product and high price can upset the budget of a customer.
Therefore, it can be said that only the quality of the product is not the only way
to the success of marketing.
3. Selling Concept
Those companies who believe in this concept think that leaving alone the
customers will not help. Instead there is a need to attract the customers towards
them. They think that goods are not bought but they have to be sold.
The basis of this thinking is that the customers can be attracted. Keeping in
view this concept these companies concentrate their marketing efforts towards
educating and attracting the customers. In such a case their main thinking is
‘selling what you have’.
This concept offers the idea that by repeated efforts one can sell-anything to the
customers. This may be right for some time, but you cannot do it for a long-
time. If you succeed in enticing the customer once, he cannot be won over
every time.
On the contrary, he will work for damaging your reputation. Therefore, it can
be asserted that this philosophy offers only a short-term advantage and is not
for long-term gains.
4. Marketing Concept
Those companies who believe in this concept are of the opinion that success
can be achieved only through consumer satisfaction. The basis of this thinking
is that only those goods/service should be made available which the consumers
want or desire and not the things which you can do.
In other words, they do not sell what they can make but they make what they
can sell. Keeping in mind this idea, these companies direct their marketing
efforts to achieve consumer satisfaction.
In short, it can be said that it is a modern concept and by adopting it profit can
be earned on a long-term basis. The drawback of this concept is that no
attention is paid to social welfare.
5. Societal Marketing Concept
This concept stresses not only the customer satisfaction but also gives
importance to Consumer Welfare/Societal Welfare. This concept is almost a
step further than the marketing concept. Under this concept, it is believed that
mere satisfaction of the consumers would not help and the welfare of the whole
society has to be kept in mind.
For example, if a company produces a vehicle which consumes less petrol but
spreads pollution, it will result in only consumer satisfaction and not the social
welfare.
Primarily two elements are included under social welfare-high-level of human
life and pollution free atmosphere. Therefore, the companies believing in this
concept direct all their marketing efforts towards the achievement of consumer
satisfaction and social welfare.
In short, it can be said that this is the latest concept of marketing. The
companies adopting this concept can achieve long-term profit
Internal Influences
Memory
Dr. Jill Novak, University of Phoenix, Texas A&M University
Marketing messages can be effective only if the consumer correctly
understands the messages, and remembers them when needed. Memory refers
to a consumer’s ability to understand the marketing messages and assign them
value and meaning. Value and meaning always together.
Color: Colors have an enormous impact on marketing
messages, and color affects consumers in a subjective
manner, so that most of the time consumers don’t even
know they are being affected! For example, in the US, the
color red makes people eat 25% more, therefore most
restaurants use red as their main color. The meaning and
value assigned to colors changes with the culture, so
marketers need to be fully aware of how color is
interpreted by different groups of people. For example, the
Starbucks Coffee Company logo is green, but when they
opened shops in Malaysia, they had to change the logo to
brown because in that culture green is associated with
sickness.
Font: The presentation of words and how they are shaped
will also enhance the marketing message and contribute to
the value and meaning. For example, these two different
fonts for a cigarette company will convey entirely different
meanings, and may attract two different customers.
Caribou Cigarettes
Caribou Cigarettes
The first logo is block style, bold and more intense and may be more
masculine. The second is a script font, with more curls, softer lines and may be
more feminine. So which is better? Well, that depends on the product and the
target market you are trying to attract.
Simplicity of the message: A simple message is generally
easier to understand. Using short phrases and easy to read
terminology, such as “heart healthy” will quickly and
easily convey the message that the product is good for
your heart.
Consistency of the message: The message needs to fit in
with the surrounding information—style, color, text,
photographs, music—all have to work together. For
example, showing a television ad for travel to the
Caribbean will have soft, flowing fonts, bright colors, and
reggae music. It can sometimes be an advantage to
haveinconsistentmessages, some consumers may
remember the ad more if some of the elements don’t make
sense.
Source of the message: Consumers will be more likely to
remember and purchase products endorsed by credible
sources, animated characters or celebrities. They have to
be likeable, have some expertise or at least pretend that
they have expertise), be trustworthy, and attractive.
Three things influence consumer’s ability to understand messages:
Physical Characteristics of message
Imagery: When the brand name, words, and slogan work
together to create an image in the mind of the consumer, it
will invoke ideas, feelings and objects, and a direct
recovery of past experiences. Disney is big on evoking
nostalgia and past experiences, they want adult customers
to remember being taken to the Disney parks as a child and
then repeat the experiences with their own children. Much
of their advertisement depicts families having wonderful
experiences together, while the adults are remembering
being there as children.
Characteristics of the message receiver (consumer)
Intelligence: unless you are specifically marketing a
product to extremely intelligent individuals, it is best to
word marketing messages on a level most people can
understand, and don’t ever talk to your customers in a way
that would make them feel inferior.
Involvement: A customer with higher levels of
involvement with the product, service and marketing
information will have more recall than a consumer with
less involvement. Creating more interest in the product and
making a website more interactive will help to increase
sales. More involvement means more sales.
Familiarity: Generally, the more familiar a customer is
with a product, the more likely they are to purchase it;
however, having too much familiarity can lead to
adaptation, when customers become tired of their
“familiar” purchases and seek out novelty items. For
example, in the US in the 1990s, ketchup sales began
slipping and to revamp sales, ketchup manufacturers
created green and purple ketchup, these novelty items
boosted sales, but only for a few months, when consumers
became tired of them.
Expectations: If the customer doesn’t know what to
expect from the product or service, then they are not going
to purchase it. This explains why familiar brand names
like Campbell’s Soup, Coca-Cola and Disney do not
change their logos—customers are familiar with them,
have positive thoughts about them and know what to
expect.
Physical limits: Marketers need to remember that some
consumers have limitations such as hearing impairment or
color blindness and this needs to be taken into
consideration when creating marketing messages.
Characteristics of the environment
Intensity of information: If a consumer is overloaded
with stimuli in an environment, they are much more likely
to avoid the ad, or not comprehend it at all. Let’s face it,
we live in a world cluttered with advertisements, it can be
difficult to break through all of it and get to your target
market customers. Marketers have to be more creative
since customers can now skip commercials (thanks to
recordable television); marketers use product placement in
the actual movie or television show, the characters in the
show use the brand name products and may even talk
about how they like the brand name. This is all part of the
advertising. Marketers are also making use of new social
marketing movements such as Twitter and Facebook that
can be programmed to reach customers that want to see
your marketing messages.
Framing: Messages can be framed to seem positive or
negative and this will affect how customers assign value.
“If you don’t use sunscreen, you could get skin cancer” or
“Use sunscreen to moisturize and protect your delicate
skin”.
Timing: Many factors will influence how a message is
interpreted and assigned value including: amount of time
customer has to view a message, time of day, and type of
medium used. A customer driving in the morning 70mph
past a billboard for coffee may only have a few seconds to
interpret the message, but since it is a time of day when
that product is most consumed, they may be more likely to
act on the message.
The value and meaning assigned is largely determined by internal factors,
(thoughts, feelings, emotion, attitude, perception, motivation, personality,
lifestyle) which are different for each consumer.
For example, a consumer who drinks lots of milk, sees an advertisement that
says “Got Milk?” and since they already have positive feelings for the product
they will purchase more milk, whereas a consumer who does not enjoy
drinking milk and sees the same ad, may dismiss the ad or may try drinking
more milk for a short period of time and then decrease consumption again.
Services Marketing Mix
Of course the marketing mix for services still needs to address the remaining
4Ps of pricing, product, place and promotion. Let’s consider some examples of
these four elements from the perspective of a service.
Pricing for services
Pricing needs to take into account two factors in relation to services. The first
issue is what is the unit which we are pricing? Do we sell a hotel room based
on its area or upon how long you use it for? Would you cost dental surgery by
the amount of time you sat in the dentist’s chair or by the actual procedure that
was undertaken? Secondly if a price is based upon a bundle of sub services
then how do you price it as a whole? An example of this would be an all-you-
can-eat menu priced at a single point e.g. €20, or would you charge for each
item on the menu individually and add-on a service charge?
Product for services
In this instance our product and service are pretty much the same. However as
we have discussed our service is intangible etc. One-way dealing with this is to
consider that: service = product + process. So we need to focus upon the
process. For example when you arrive at a hotel people process you to ensure
that you are registered and your baggage is taken to a room. This is an example
of people processing. Another type of processing is possession processing, and
an example would be where you take your dog to be groomed, or you organise
a service for your car i.e. your possessions are processed. Both of these are
examples of product in relation to service.
Place for services
Where you consume the service is a central part of the services marketing mix.
With the place element the marketer considers convenience, location, footfall,
number of outlets, and timing. Consider an event which takes place over a
weekend. If you have a food trailer which sells organic salads to the public you
need to make sure that you are actually booked at the event, that people will
walk past your trailer and be able to stop and queue, and that you are able to
sell to the people when they want to eat. Simply scale this up for businesses
like Pizza Express.
Promotion for services
Obviously services are more difficult to assess in terms of attributes in
comparison to tangible products. The marketer needs to be more innovative and
clear when it comes to the benefits to the target market of his or her service.
The marketer can try a number of techniques which include:
Emphasising any tangible cues e.g. telecommunications
companies will use symbols such as Mercury to emphasise
speed. Burger King will use boxes and packaging which
emphasise its marketing communications.
Exploiting celebrity to provide information about the
service. There are many examples of well-known public
faces telling us on TV how they purchase life assurance or
organise their final will.
Branding is everything to service. Starbucks does sells
coffee and cake but much of its offering is its service.
Starbucks’ logo, its location, the ambience of their stores
and the whole service experience is all part of the brand
Starbucks. There are many other examples of this
including KFC and McDonalds. Can you think of any
more?
Physical Evidence (Physical evidence is) . . . 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. Zeithaml et al (2008)
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, including some of the
following buildings, equipment, signs and logos, annual accounts and business
reports, brochures, your website, and even your business cards.
Process (Process is) . . . The actual procedures, mechanisms, and flow of
activities by which the service is delivered – this service delivery and operating systems.
Zeithaml et al (2008).
There are a number of perceptions of the concept of process within the business
and marketing literature. Some see processes as a means to achieve an
outcome, for example – to achieve a 30% market share, a company implements
a marketing planning process. However in reality it is more about the customer
interface between the business and consumer and how they deal with each
other in a series of steps in stages, i.e. throughout the process
People (People are) . . . All human actors who play a part in service delivery
and thus influence the buyers’ perceptions; namely, the firm’s personnel, the customer, and other customers in the service
environment. Zeithaml et al (2008).
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.