principles-of-marketing-1

Principles of Marketing

Dina El Tabey

Mariam Abou-Youssef

The Course Objectives

LEARN PRACTICAL MARKETING KNOWLEDGE AND PRACTICES Module 1 (Day 1)

• Marketing Definition • STP, Principle of Real World Mktg.

Module 2 (Day 2 & 3)• Marketing Tools

• From Online Marketing to Direct Marketing Module 3 (Day 4)

• Marketing Program – Workshop • Learn How To Design a Marketing Program

Today’s Objectives

What is marketing? STP The Marketing Mix Principles of real world marketing Exercise

What is Marketing? It is not just “selling and advertising”; It is the process

by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

“The Whole Firm Taken From A Customer Perspective” Peter Drucker

EVERYTHING THAT TOUCHES THE CONSUMER IS MARKETING

What Marketing Does?

Reach customers Motivate Them To Buy Use AND REBUY The product

What Marketers Do?

Reach customers Motivate Them To Buy Use AND REBUY The product

Marketers Should March To The Drums Of The Customers

STP (Segmentation, Targeting &Positioning)

Market segmentation

1. Identify bases for segmenting the market.

2. Develop segment profiles

Target marketing

3. Develop measure of segment attractiveness

4. Select target segments.

Market positioning

5. Develop positioning (differentiation) for target segments.

6. Develop a marketing mix for each segment.

1. Market segmentation

Dividing a market into smaller groups of buyers distinct needs, characteristics, or behavior who might require separate products or marketing mixes

Market segmentation Buyers differ in

WantsResourcesLocationsBuying attitudesBuying practices

Through market segmentation, companies divide large, heterogeneous (different) markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs

Geographic segmentation

Dividing a market into different geographical units such as nations, states, regions, counties, cities or neighborhoods

Al-wasset classifieds (maadi)

Demographic segmentation

Dividing the market into groups based on demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race and nationality

Most popular because our needs, wants and usage rates depend on the demographics

Age and life cycle segmentation

Dividing a market into different age and life cycle groups

Kids (corn flakes), adults, magazines (teen stuff)

Gender segmentation Dividing a market into different

groups based on gender Clothing, cosmetics, perfumes

Income segmentation

Dividing the market into different income groups

Cars, financial services

Psychographic segmentation

Dividing a market into different groups based on social class, lifestyle or personality characteristics

Behavioral segmentation

Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product

Occasion segmentationDividing the market into groups

according to occasions when buyers get the idea to buy

Behavioral segmentation (cont’d)

Benefit sought segmentationDividing the market into groups

according to the different benefits that consumers seek from the product (detergent)

Using multiple segmentation bases

Using multiple segmentation bases in an effort to identify smaller, better defined target groups

Requirements for effective segmentation

Measurable Accessible Differentiable (segment is unique) Actionable (can perform marketing

mix to reach this segment)

STP

Market segmentation

1. Identify bases for segmenting the market.

2. Develop segment profiles

Target marketing

3. Develop measure of segment attractiveness

4. Select target segments.

Market positioning

5. Develop positioning (differentiation) for target segments.

6. Develop a marketing mix for each segment.

Target marketing

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

Evaluating market segments

Segment size Growth Segment attractiveness Company objectives and resources Competitors Buying power Supplier power

Selecting target market segments

Target marketA set of buyers sharing common needs or

characteristics that the company decides to serve

Targeting Strategies

Undifferentiated Strategy

One marketing mix for the whole market

Concentrated (niche) Strategy

One marketing mix and one segment

Differentiation Strategy

Two marketing mix and 2 different segment

Chipsy BMW

STP

Market segmentation

1. Identify bases for segmenting the market.

2. Develop segment profiles

Target marketing

3. Develop measure of segment attractiveness

4. Select target segments.

Market positioning

5. Develop positioning (differentiation) for target segments.

6. Develop a marketing mix for each segment.

Product positioning

The way that product is defined by consumers on important attributes - the place the product occupies in consumer’s minds relative to competing products

Perceptual Positioning Map for AutomobilesPerceptual Positioning Map for Automobiles

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• •Volvo 850R

Chrysler LHS

Buick Park Avenue

Oldsmobile L35

Honda Accord

Nissan Sentra

Plymouth VoyagerDodge Caravan

Geo Metro

Kia Sephia

Dodge Neon

Saturn SC2

Porsche 914

Mercedes 400SE

Lexus LS400

Jeep Grand CherokeeAcura Integra

Ford Taurus

Honda Civic

Stylish, prestigious, distinctive

Practical, common, economical

Staid, conservative, older

Fun, sporty,

fast

TM3 TM2

TM1

Developing the marketing mix

Marketing mix: the set of controllable tactical marketing tools: product, price, place and promotion that the firm blends to produce the response it wants in the target market

Consumer productsPrinciples of Real World Marketing

Principles of Real World Marketing

Your Customers Aren’t Listening To You

Everybody Else Is Shouting At Your Customers

The Rest Of Your Organization thinks you are crazy BUT

You Cant execute your program without the rest of the company

Principles of Real World Marketing

The More You Give; The More You Get Being Good Is Never Good Enough;

You Have To Be Better Marketing Should Be The Most Creative

and Most Logical Part Of Your Business Everything Is Marketing

Integrated Marketing Communications (IMC)

The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

IMC

Marketing communications mix - promotion mix

The mix of AdvertisingPersonal sellingSales promotionPublic relationsDirect Marketing

That the company uses

a. Advertising

Any paid form of non-personal presentation and promotion of ideas, goods, or services

Advertising toolsPrint (newspapers, magazines)TVRadioOutdoorOnline

1. Setting advertising objectives A specific communication task to be

accomplished with a specific target audience during a specific period of time

ObjectivesInformative (new product category)Persuading (when competition

increases, comparative advertising, comparative advertising AUDI ad)

Reminding (coca cola, Pepsi)

2. Developing advertising strategya. Creating advertising messages

Message execution Slice of life: one or more “typical” people

using the product in a normal setting. Samna and Oil ads)

Lifestyle: how a product fits in with a particular lifestyle. Nescafe

Fantasy: creates fantasy around the product or its use. Galaxy (girl in the big chair), 7up tropical

Musical: one or more people or cartoon characters singing about the product. (Sunsilk)

Message executionTechnical expertise: shows the

company’s expertise in making the product. Chipsy

Scientific evidence: presents surveys or scientific evidence that the brand is better or better liked than one or more other brands. Crest and the egg ad

Testimonial evidence or endorsement Highly believable or likeable source endorsing the product –Celebrity- Nancy Agram

2. Developing advertising strategy b. Selecting advertising media

Deciding on reach, frequencyReach: measure of the percentage of people in

the target market who are exposed to the ad campaign during a given period of time

Frequency: measure of how many times the average person in the target market is exposed to the message

Choose Your Media Type

QuestionHow to choose the best medium?

AnswerWhatever Works for your campaign and

reaches your target market • Primary Medium• Secondary Medium • Spread your budget equally on more than

one medium

Profiles of major media types

Print - Newspaper

Flexibility; timeliness; good local marketcoverage; broad acceptability; believability

Short life; poor production quality

Television Good mass-market coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses

High absolute cost; high clutter; less audience selectivity

Radio Good local acceptance; high geographic and demographic selectivity; low cost

Audio only; low attention (“half heard”); fragmented audiences

Print - Magazine

High geographic and demographic selectivity; credibility and prestige; quality production; long life; good pass-along

high cost; no guarantee of position

Outdoor Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity

Little audience selectivity; creative limitations

Online High selectivity; low cost; immediacy; interactive capabilities

Small, demographically skewed audience; low impact; audience controls exposure

Medium AdvantagesMedium Advantages Limitations Limitations

Print Advertising (Newspapers, Magazines) Most Advertisers budget more for print than any other

media Works mainly to promote sales promotions Anatomy:

Headline Sub headline Copy – choose the font that serves the message Visual Caption Trademark Signature Slogan

Exercise

Each Team chooses a print ad from the newspaper or magazine and analyze it

Television

Used When You Need To Evoke Emotions – surprise, anxiety, excitement, happiness, …

Radio

Rely On Sounds – choose cool sound effect, interesting voice, catchy musical phrase, …

Choose One Strong Idea Talk To Your Market Right Away – i.e.

if you want to advertise for salon’s service; start right away with ex. :”not another bad hair day”

Outdoor – Billboards, Banners and Signs It must be read in a hurry It is geographically specific It directs people to your business location Placing it in front of competitor location IS

SMART Design should include 2 main sections: 1-

Header to catch attention from far, 2- essential information

Outdoor – Billboards, Banners and Signs

Forms:VinylHand PaintedWoodMetalLight BoxesElectronic Display

Online Advertising

Types:Website = company brochure Banner Ads = billboard where you use

your logo, one simple message and max. couple lines of body copy

N.B• Refresh Your Content Regularly • Deliver fascinating and attractive content

Other Forms of Indirect Advertising

Point Of Purchase POP FlagsDanglersRoll ups & pop ups

Word Of MouthVirtual WOMFace To Face

b. Sales promotion

Short-term incentives to encourage the purchase or sale of a product or service

Major sales promotion tools for consumers

Sample: a small amount of a product offered to customers for trial. (perfumes)

Coupon: certificate that gives buyers a saving when they purchase a specified product

Price off (cents-off deal): reduced price that is marked by the producer directly on the label or package. (10 instead of 12)

Premiums: prizes, gifts consumers receive when purchasing products. (shampoo with shower gel, vodafone)

Major sales promotion tools for consumers (cont’d)

Contests and sweepstakesContests: solve questions and you win

something (who would win the million)Sweepstakes: depend on luck

Bonus packs: additional or extra number of items is placed in a special product package (3 with price of 2, 20%extra)

Major sales promotion tools for trade

Discount: a straight reduction in price on purchases during a stated period of time

Allowances: promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way

c. Public relations

Building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image”, and handling or heading off unfavorable rumors, stories, and events

It is unpaid advertising PR tools

Press releases Sponsorships (Mc Donald’s and the hospital

53753) Special events (Vodafone and the charity

complex)

d. Personal selling

Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships

Personal selling toolsPersonal presentation Trade shows (exhibitions and fairs.

Le marche)

e. Direct marketing

Direct communications with carefully targeted individual consumers-the use of telephone, mail, fax, e-mail, the internet, and other tools to communicate directly with specific consumers

Direct marketingSending cataloguesTelemarketing

Push strategy

A promotion strategy that calls for using the sales force and trade promotion to push the product through channels.

The producer promotes the product to wholesalers, the wholesalers promote to retailers, and the retailers promote to consumers

Pull strategy

A promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand.

If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers

Push Vs Pull strategy

1. Affordable method

Setting the promotion budget at a level management thinks the company can afford

2. Percentage of sales method

Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of unit sales price

3. Competitive-parity method

Setting the promotion budget to match competitors’ outlays

Get Data from reports such as PARCMobinil and VodafonePepsi and coca cola

4. Objective and task method

Developing the promotion budget byDefining specific objectivesDetermining the tasks that must be

preformed to achieve these objectivesEstimating the costs of performing

these tasks The sum of these costs is the

proposed promotion budget