marketing with nlp
DESCRIPTION
Talk to me about branded and customised training programs for your company. This is a marketing course I developed it can be customised for your organisation with your branding. The program comes with comes with a facilitators guide, presentation and a learners work book.TRANSCRIPT
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THE MARKETING PROCESS
Facilitator: DEAN EGAN
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Topic’s
The Marketing Process
The Consumer
Global Marketing
Targeting the Market
Market Research
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Topic’s
Establishing Value & Pricing
Retailing
Advertising
Personal Selling & Sales
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Marketing Services-The Intangible Product
THE MARKETING PROCESS
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The Marketing Process
Marketing is the activity, set of institutions,
and processes for creating, capturing,
communicating, delivering, and exchanging
offerings that have value for customers,
clients, partners, and society.
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Marketing helpscreate value.
Marketing requires product, price, placement, and
promotion decisions.
Marketing entailsan exchange.
Marketing is aboutsatisfying
customer needs and wants.
Marketing occurs in many settings.
Marketing can be performed by both
individuals and organizations.
Marketing
What Do We Market?
Things or Products
People
Services
Ideas
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Why is Marketing Important?
Improves society by providing products to consumers.
Makes life easier for consumers.
Provides employment opportunities.
Occurs throughout the supply chain process.
Occurs throughout the entire company.
Allows for company growth such as global markets.
Can create entrepreneurship, which can create employment.
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The History of Marketing
Production Oriented Era
Focused on producing, not options.
Sales Oriented Era
Focused on selling after the depression.
Market Oriented Era
Focused on the marketing aspects .
Value-Based Marketing Era
Focused on the value.
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Production
SalesMarketin
g
Value-Based
Marketing
The Turn of the Century 1920 1950 1990
What is Value-Based Marketing?
It is the relationship between the perceived benefits of the
product or service and its cost.
Balancing Benefits with Costs: Value-oriented marketers
continuously measure benefits that customers perceive
against the cost of their products or services.
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Received Benefits Giving up Time/Money
Building Relationships with Customers
Transactional Orientation: The buyer-seller relationship is merely a
series of individual transactions.
Relational Orientation: Is based on the more traditional view; that the
buyers and sellers should develop a long-term relationship.
Marketing Entails an Exchange
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CommunicationsDelivery
Information Money
Marketing Channels
Business to Business (B2B)
Business to Consumer (B2C)
Consumer to Consumer (C2C)
Supply Chain Raw MaterialManufacturerRetailerConsumer
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B2B B2C C2C
Manufacturer(Makes a
Computer)
Retailer(Sells the
Computer)
Consumer A(Buys the Computer)
Consumer B(Buys the
Computer from Consumer A)
Marketing Can Be Performed by Both Individuals and Organizations
How Firms Compete on the Basis of Value
With all of the current technology and simple formulas,
marketers should be able to deliver value consistently,
right? Well, not exactly. In today’s quickly changing world,
consistently, creating and delivering value is quite
difficult.
Consumers buying habits constantly change, competitors
are always entering the market, and now consumers have
the ability to buy products and services from anyone
anywhere in the world.
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How do Firms Become Value Driven?
Sharing Information
Balancing Benefits with Costs
Building Relationships with Customers
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The Marketing Plan
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Step 1: Business Mission & Objectives
Step 2: Situation AnalysisSWOT
Step 3: Identify Opportunities
Step 4: Implement Marketing Mix
Step 5: Evaluate Performance Using Marketing Metrics
Planning Phase
Implementation Phase
Control Phase
Marketing Strategy
Segmentation Targeting Positioning
Product Price Place Promotion
Ethics
The philosophical examination, from a moral
standpoint, of particular issues in private and
public life that are matters of moral judgment.
It is thus, a term used to describe attempts to
use philosophical methods to identify the morally
correct course of action in various fields of human
life.
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Ethics
Business Ethics: This refers to ethical studies
specifically for the cooperate and business worlds.
Marketing Ethics: This refers to the use of ethics
In developing marketing strategies and plans.
Ethical Climate: This refers to creating an ethical
environment within which one works.
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The Framework for Ethical Decision Making
Identify the Issues
Discuss and list any issues that have arisen.
Gather Information & Identify Who This Affects
Not all issues affect everyone, so be sure to identify whom
this pertains too.
Brainstorm Alternatives
Always have a list of alternative solutions to the ethical
dilemma/issue.
Select a Course of Action
Determine what actions should be taken.
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How to Integrate Ethics into the Marketing Strategy
The Planning Phase
It is important to introduce ethics in any company’s mission.
The Implementation Phase
It is important to choose the segments that will be targeted
ethically and to use ethics within the 4 P’s such as pricing
and promotion.
The Control Phase
It is important that when an evaluation is made that it is fair
and ethical.
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Ethical Decision-Making Model
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Identify Issues
Gather Information and Identify Stockholders
Brainstorm and Evaluate
Alternatives Choose Course of Action
Step 1 Step 2 Step 3 Step 4
What Is Social Responsibility?
Social responsibility refers to the actions that
individuals take throughout the course of business
operations to ensure that ethical decisions are
made.
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Corporate Social
Responsibility(CSR)
Output
Consumer
Cause/Issue
Company
Consumer
Company
Cause/Issue
Input
CSR Model
The 4 P’s
Product
Remember that there are different types of
products such as actual goods, services, ideas,
and people. Create value for the product. Decide what sets this product apart from any
other product on the market.
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The 4 P’s
Price
Linked to the value of the product. If the value is
perceived as high then the consumer is willing to
pay more. The key is to determine the maximum
value at which the customer feels satisfied while
still making a profit. Always consider the competitor’s price.
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The 4 P’s
Placement Choose your market wisely. Conduct research to determine where the best
market is especially for new products. Determine where the product will be sold based
on the perceived value. Consider the use of supply chain management
in the placement process.
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The 4 P’s
Promotion Promoting the value of the product to the
customer. Consider different avenues such as the internet,
the media and people for advertising purposes. Use associations to things that people are
familiar with already for promoting. Focus on the value of the product.
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The Strategic Planning Process
The strategic planning process is a set of steps,
which someone in marketing would go through; to
develop a marketing plan.
Phase 1 The Planning
Step 1
This is when the mission and vision of the
business is defined. A company’s mission is a
broad statement of its goals and purpose. It should
include the nature of the business as well as well
as strategies to accomplish their goals.
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Phase 1 The Planning
Step 2
A situation analysis is done which analyzes how
both individuals inside the firm and outside the
firm can affect the potential for success.
The situation analysis is done by using a SWOT
analysis.
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S.W.O.T Analysis
Evaluation
Internal
External
Environment
Strengths•Strong brand identity•Retail store network•Grocery network
Weaknesses•Reliance on joint ventures•Rapid growth erodes customer experience
Opportunities•Expansion outside of the U.S. market•Social & green marketing efforts
Threats•Potential saturation of the U.S. market•Intense competition
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Phase 2 The Implementation
Step 3
This is when managers can identify and evaluate
different opportunities through segmentation, targeting and
positioning.
Segmentation: Determining the different segments of the
market that consumers belong too.
Targeting: What areas to focus on for each segment.
Positioning: How to position the firm within each of the
target segments.
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Phase 2 The Implementation
Step 4
This is when the 4 P’s of marketing are implemented in a
marketing plan. The firm decides what the product is and
how to create value, then it decides what the price is, then
where to place the product and how to promote it. The firm
must then decide how to allocate the resources of the
company. The initial stage of this is done through the
Strategic Business Unit, which is usually formed at the first
of the 4 P’s.
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Phase 3 The Control
Step 5
This is for evaluating the performance of the
marketing strategy. Managers at this step usually
evaluate the other steps to determine if their plan
was effective. Performance Objective Financial Performance Metrics
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What is a Marketing Strategy?
A marketing strategy identifies a firms target
market, a related marketing mix- their 4 P’s and
the bases upon which the firm plans to build a
sustainable competitive advantage.
Sustainable Competitive Advantage: is defined
as an advantage the competition that is not easily
copied, and thus can be maintained over a long
period of time.
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Growth Strategies
Market Penetration Strategy: This focuses on the current
markets and the current products and services.
Market Development Strategy: This focuses on the new
markets and the current products and services.
Product Development Strategy: This focuses on the
current markets and the new products and services.
Diversification Strategy: This focuses on both new
markets and new products.
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Marketing/Products and Services Strategies
Products and Services
Markets Current New
Current Market Penetration Product Development
New Market Development Diversification
Scenario Planning Process
This is the process of integrating the information
collected during the situation analysis, the
opportunity analysis, and the marketing plan
process.
The collective data helps the firm understand the
potential performance outcomes associated with
different marketing mix scenarios.
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Steps In Planning A Scenario
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Step 1: Assess the current situation by examining the firm’s strengths and weaknesses.
Step 2: Assess what could affect the firm by examining the firm’s opportunities and threats.
Step 3: Identify different scenarios.
Step 4: Apply the marketing mix to the different scenarios.
Step 5: Assess the profitability of each scenario.
Macro Strategies
Customer Excellence: This is when the firm focuses on
The excellent services for the customer to retain loyal
customers.
Operational Excellence: This is when a firm focuses on
having effective operations to make the company efficient.
Product Excellence: This is when the firm focuses on the
branding on the product to create value in order to achieve
a high-ranking product.
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Macro Strategies for Developing Customer Value
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Customer Value
Customer Excellence
Operations Excellence
Product Excellence
Locational Excellence
Analyzing the Market Environment
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Consumers
Company
Immediate Environment
Competition CorporatePartners
Analyzing the Market Environment
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Macro Environment
Consumers
Culture Demographics
Social
Technology
Political/Legal
Economic
The Environment
Analyzing the Environment
This is the process of paying close attention to consumer needs and
the continuous monitoring of the business environment in which the
company operates.
The Marketing Environment
This is referring to all of the things happening in our world that may
have a direct impact on business. The environment is an external
concept and therefore, is outside of the firm's control.
The Immediate Environment The Company The Competition The Corporate Partners
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The Macro Environment
The Culture
The culture is defined as, the shared meanings,
beliefs, morals, values, and customs of a group of
people. Country Culture: The characteristics of the country
that we live in, including trends and what people
want. Regional Culture: The characteristics of the area
that people live in, including how we refer to things.
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The Macro Environment
The Demographics
The demographics is the characteristics of the human population.
Cohorts: People of the same generation, same age group, example seniors, baby boomers etc
Income: refers to individual income and household income. The trend in the U.S. is that income has become polarized.
Education: Studies indicate that the higher the level of education, the higher the job prospects. This information is used to target segments.
Gender: Observe the trend that gender roles have transitioned. Ethnicity: The U.S. has become a diverse country and depending on
one’s ethnic background, things may appeal to them differently.
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The Macro Environment
Social Trends
Social trends is defined as, a persistent change in social relations and
social structure over time. Trends are the aggregate effect of many
individual and group actions, bureaucratization, industrialization,
urbanization, suburbanization. Greener Consumers: This is the consumers demand for green-
oriented products. Green Marketing involves the strategic efforts to supply customers with environmentally friendly merchandise.
Privacy Concerns: Identity theft is on the rise, which has created the need for firms to protect client information by implementing and enforcing strict privacy policies.
The Time-Poor Society: People no longer have time to shop at leisure.
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The Macro Environment
Technology
Technology advances have accelerated over the last
decade that has improved the value products and services.
Firms are able to track an item from the moment it is
manufactured, when the item goes through the distribution system, to the retail store, and into the hands of the final consumer.
Inventory Management Alpha Moms: Tech savvy, family-centric, working
mothers.
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The Macro Environment
The Economy
This is referring to the monitoring of the general economic situation, for
both in country and abroad. The economy situation has a direct
influences the way consumers buy merchandise and how they spend
their money. Inflation: This is referring to the increase in the price of goods and
services. Interest Rates: The cost of borrowing money.
Politics/Regulatory Environment
It is important to keep track of the politics since this leads to laws and
regulations, which may affect the ability to market certain products.
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THE CONSUMER
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Why Do People Shop?
Habitual Shopping: This is when individuals shop and purchase things
that they are just used to buying, such as Starbucks or even regular
shopping such as shopping for jeans.
Limited Problem Solving: This requires the consumer to have
Moderate effort and typically will lead to something that is short term
that has the potential to change quickly. It however can be long term.
Extended Problem Solving: This requires in depth effort and may
involve quite a bit of risk such as purchasing a house or car. It is
typically a long-term solution.
The Consumer Decision-Making Process
Step 1: Need Recognition
Step 2: Research & Gather Information
Step 3: Evaluate Alternatives
Step 4: The Actual Purchase
Step 5: Post Purchase
Need Recognition
Purchase Post Purchase
InformationSearch
AlternativeEvaluation
Consumers’ Needs Classified
Functional Needs: These typically refer to actual
products such as food, clothing, transportation etc.
Psychological Needs: These typically refer to
services, such as getting a manicure or high-end
physical products such as a high-end car.
Researching The Product And Gathering Information
Internal: The consumer reflects on their own
memory and knowledge of the product.
External: Actual research about the product is
completed; by the consumer.
Factors That Can Affect The Consumer Decision Making Process
Psychology: People’s perceptions and motives
can influence why they purchase things.
Attitudes: Things can influence people’s attitudes
or sometimes they have innate attitudes about the
product or service.
Factors That Can Affect The Consumer Decision Making Process
Social Factors: Such as ones’ family, culture and
social groups.
Situational Factors: Situational factors are
related to the purchase and shopping situation; as
well as the persons attitude at the time of and after
the purchase.
Psychological Factors
Situational Factors
Social Factors
Marketing Mix
ProducePricePlacementPromotion
MotivesAttitudesPerceptionsLearning/Lifestyle
Purchase SituationShopping SituationTemporal State
FamilyReference GroupsCulture
ConsumerDecisionProcess
Factors That Can Affect The Consumer Decision Making Process
GLOBAL MARKETING
Global marketing refers to marketing activities
coordinated and integrated across multiple country markets.
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Globalization
This is the process by which goods, services,
capital, and people, information, and ideas flow
across national borders.
Globalization of Products
This refers to manufactures’ producing of goods and
services from around the globe to take advantage of
national differences in the cost and quality of various
factors of production, as in labor, energy, land, and capital.
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Factors In Assessing The Global Market
Economic Analysis
Marketers look for a healthy economy. Marketers also assess the Gross Domestic Product:
defined as the market value of the goods and services produced by a country in a year.
Also assess other factors such as the HDI- Human development index: a measurement of 3 indicators of the quality of life: life expectancy at birth, educational attainment and also average income.
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Factors In Assessing The Global Market
Infrastructure and Technology Infrastructures are the basic facilities, services, and
installations needed for a community or society to function.
Marketers focus on transportation, distribution channels, communication and commerce
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Factors In Assessing The Global Market
Government Government’s actions can affect marketing in terms
of regulatory practices. Tariffs: a tax levied on a ‘good’ imported into the
country. Quota: this refers to the maximum amount of a
product that can be brought into the country. Boycott: when a group refuses to deal with a certain
organization.
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Factors In Assessing The Global Market
Socio-Cultural Analysis Culture: this is a set of values, beliefs,
understandings, and ways of doing things
shared by members of society.
Exchange Control: Regulation of the country’s
exchange rate. (the measurement of one country’s
dollar vs. another).
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Countertrade: When goods and services are traded
and not funds.
Trade Agreements: When two or more countries
have actual agreements.
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Factors In Assessing The Global Market
The International Market Entry Evaluation Process
Purpose
Is to gauge which international market
or markets offer the best opportunities for the
firm’s products or services to succeed.
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The International Market Entry Evaluation Process
Step 1: Country Identification: Choosing which
country/countries to enter.
Step 2: Preliminary Screening: Rank nations based on the
factors mentioned above. (exchange rates/government policies)
Step 3: In-Depth Screening
Step 4: Final Selection: Choosing the country/countries.
Step 5: Direct Experience: Marketers use this as an opportunity
to personally go the country, interact with the people, and learn
about the lifestyle and culture.
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Types Of Global Marketing Opportunities
Exporting: manufacturing the good locally and selling them in another
country.
Franchising: When a company has a contract between you and them
to promote their name but with your ownership.
Strategic Alliance: When firms collaborate to build relationships but
do not invest in each other….example…AA one world alliance.
Joint Venture: The local firm pools resources with a firm abroad in the
desired market to create a new venture.
Direct Investment: the firm going global maintains ownership of all its
entities including plants and manufacturing sites.
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Global Marketing and the Marketing Mix
Placement The Internet: Marketers can use the internet to
actually sell products worldwide. Licensing: A firm charges a fee for the use of their
technology. International Distributors: These typically have an in
already into the market. Strategic Alliances Joint Ventures
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Global Marketing and the Marketing Mix
Price
International Pricing Approaches: Export Pricing: A price is set by the home based managers
for the international market. Non-Cash Payment: Counter trading Transfer Pricing: A price is set by the home based manager
but the product them goes to an international subsidiary who can change the price
Standardization vs. Adaptation: The marketer evaluates whether you use a set or standard price or do you adapt to conditions in the foreign market
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Global Marketing and the Marketing Mix
Promotion Media Choices: May not be the same as in the
home country. Advertising: What appeals to the foreign market?
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TARGETING THE MARKET
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The S.T.P. Process
Segmentation
Step 1: Establish Your Objectives And Overall Strategies
Differentiated Segmentation Strategy: Using the same company and having different segments. Example Regis hair salons-Regis, Trade Secret and Master Cuts.
Concentrated Segmentation Strategy: This is when a company selects a single segment and finds a product that would be suitable to that market. It is concentrated in that they are focusing on one market and one product.
Micromarketing: This is when the company caters to the individual and creates products just for that one person.
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The S.T.P. Process
SegmentationStep 2: Describe The Segments
Geographic Segmentation: This is when customers are organized based on their geographic location.
Demographic Segmentation: This is when customers are organized based on certain demographic segments.
Psychographic Segmentation: This allows the consumer to decide what segment they fall into based on how they see themselves.
Benefit Segmentation: This allows consumers to be grouped based on the benefit of the product.
Geo-Demographic Segmentation: This mixes both the demographic and the geographic segmentation.
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The S.T.P. Process
Targeting
Step 3: Evaluating The Attractiveness Of The Segment
Identify: The firm must identify who in the community is able to design the products or services they need.
Substantial: The firm must determine if the market is substantially large enough to turn a profit.
Reachable: The firm must determine if they are able to reach out to the market.
Responsive: For a marketing venture to be successful, the consumers must respond, either by additional purchases or through referrals.
Profitable: The firm has to determine whether or not the efforts were profitable enough.
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The S.T.P. Process
Targeting
Step 4: Selecting the Target Market
The firm will actually select the market at this point.
The firm will most likely use the results of the SWOT.
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The S.T.P. Process
Positioning
Step 5: Identify And Develop Positioning Strategy
Value: Relationship between benefits to cost.
Salient Attributes: This focuses on some of the attributes
of the product that are important to the particular market.
Symbol: The Company can use a symbol to promote their product.
Competition: This is when the firm uses the competitor to launch their marketing campaign.
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The 5-Stages of Positioning
Determine the consumers’ perceptions about the product and how they have evaluated it.
Identify The Competitor’s Position: This is finding out how a consumer looks at the company’s brand vs. the competitors.
Determine The Preference Of The Consumer.
Select The Position For The Company: This is determining where the product will go from here.
Monitor The Positioning Strategy: Constantly evaluate your position.
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THE MARKET RESEARCH PROCESS
Define the objectives and research needs.
Design the research project.
Secondary Data: Data that has been collected by someone else.
~Primary Data: Data that you the researcher are compiling.
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THE MARKET RESEARCH PROCESS
Data Collection: There are several methods of collecting.
~Observation: This is when the researcher observes.
~Interviews: The researcher sends out questionnaires.
It is important to decide who the sample population will be. This can either be a random sample, a selected sample or a stratified sample.
Analyzing the Data
Present the Results
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THE MARKET RESEARCH PROCESS
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DefiningObjectives
DesigningThe
Research Project
DataCollection
AnalyzingData
Presenting Results
Step 1 Step 2 Step 3 Step 4 Step 5
Product, Branding, and Packaging Decisions
Product Assortment
Also known as product mix, this is the complete package of
products being offered by a firm or company.
Product Lines
Grouping the products that are used or belong together in a
broad sense, such as household items or pet products.
Product Category
Grouping the products that go together under one category,
such as pet food.
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Product Breadth And Depth
Each category within a product line may use the
same or different brands. Which are the names,
terms, designs, symbols, or any other feature that
identify one seller’s good or service as distinct from
those of other sellers.
Breadth: The number of product lines (aka variety)
offered by the firm.
Depth: The number of categories within a certain
product line.
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Changing the Breadth and Depth
A company may change their product mix’s breadth
or depth, by either adding to or deleting categories.
Companies offer add new product categories to
attract new or evolving markets, or to increase sales.
Sometimes it is necessary to delete entire product
lines to address changing market conditions or to stay
in line with new company strategic strategies.
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Changing the Breadth and Depth
Increasing the Breadth: This is when the firm
increases the number of lines offered.
Decreasing the Breadth: Taking away a line from a
firm to make it more specialized.
Increasing the Depth: Adding more categories within
the certain line.
Decreasing the Depth: Removing categories from a
certain line.
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The Value Of Branding And Brands
It makes purchasing easier. It helps consumers make quick decisions since they may be familiar with the brands.
It establishes loyalty and confidence. If the consumer uses the brand over and over, and they like it then they will stick with the brand name.
It protects the brand from competition with respect to prices.
It reduces marketing costs. The brand speaks for itself.
The brand can have an impact on the market value of the product.
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The Value Of Branding And Brands
Brand Equity: The positives or negatives that are linked to a
brand; that can add or subtract from the value of the brand.
Brand Awareness: This measures how well the consumer
knows the brand.
Perceived Value: The value of the product.
Brand Association: The associations that the consumer
makes between the brands the attributes of the brand.
Brand Loyalty: This is when the consumer buys the same
brand repeatedly.
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Branding Strategies
Brand Ownership
National Brands: These are owned by the manufacturer,
example, Coke and Adidas.
Private Label: Labels that are sold in stores and made by the
store.
Generic Brands: Sold without a brand name attached to it,
such as generic medicines.
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Branding Strategies
Naming Brands and Product Lines
Corporate or Family Brands: This is when the firm uses their
name to brand all their products such as GE. Some products
may apply it to their entire product line and not just the one
category of product.
Individual Brands: This is when the larger firms produces
single products and then uses each product individually.
Example proctor and gamble and their line such as tide.
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Brand Extension
This is when firms use the same brand name for new products or for
extending their markets globally.
Brand Dilution: This is when the firm uses their name for other
Products which results in the original product not being deemed as
good as it was before.
Co-Branding: This is when firms mix two brand names together.
Brand Licensing: An actual license is involved. One firm contracts
with another to use their brand name and logo.
Brand Repositioning: This is when the firm changes it is image of
the brand in an attempt to increase sales and profit. This can be
done when trying to focus on new markets.
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Product, Branding, and Packaging Decisions
Product Packaging
It is important to remember that the product packaging appeals
to the consumers.
Primary Package: the package that the actual product is in.
Secondary Package: this is when the primary package is
placed in something else.
Product Labeling
This is the way the product is labeled.
Putting information on a package provides the consumer with the information that they need.
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Product, Branding, and Packaging Decisions
Developing New Products
Innovation: This is the process by which ideas
become new products.
Diffusion of Innovation: This is the rate at which the
new product gets in to the market.
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Categories of Consumers
Innovators: The portion of the population wanting to be the first to
try a new product.
Early Adapters: This is the second set of consumers that would use
the new product.
Early Majority: This is the third group of consumer which actually
represents the largest component of the market. Typically once they
get involved in the new product this is when the product starts
becoming profitable.
Late Majority: The last big set of consumers to use the product.
Laggards: This is a group of the market that likes to avoid change
and use the traditional and older products until they’re not available.
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Things To Consider With The Diffusion of the Innovation Theory
Relative Advantage: If a product is perceived to be
better than others already existing, it will diffuse quickly.
Compatibility: If the product is compatible with people’s
habits then it will diffuse fast also.
Observability: If the product can be observed easily then
it will diffuse faster.
Complexity: Products that are less complex and not
complicated will diffuse faster.
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The Process Of Developing New Products
Generate an Idea
Things to do in generating an idea:
Internal Research: The firm can use their research and
development team or conduct their own research. R& D Consortia: The firm may be a part of a consortium so
that it can get information and research and assistance from
other individuals. Licensing: The firm may purchase a license to use certain
technology in the development of their idea.
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The Process Of Developing New Products
Generate an Idea
Things to do in generating an idea:
Brainstorming Looking at the Competitor’s Products: This is when a
firm finds out about a new product that a competitor is bringing out or has brought out and they then use the basic idea and change things to make it their own.
Getting Input From the Customer
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The Process Of Developing New Products
Test the Concept
Test the new product idea among a set of potential customers.
Develop the Product
Alpha Testing: Hypothetical testing in a managed environment
Beta Testing: Using potential consumers to test the product to determine if there are any issues
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The Process Of Developing New Products
Test the Market
Pretests: Testing on customers before it is actually launched.
Market Tests: Introducing the product to a limited area. Launch the Product
Consider the price, promotion, and placement.
Consider the timing of the launch. Evaluate the Results
Analysis of the performance of the new product and making
appropriate modifications.
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The Product Life Cycle Stages
The product life cycle defines the stages that new
products move through as they enter, are
established, and ultimately leave the marketplace
and thereby offers marketers a starting point for their
strategy planning.
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The Product Life Cycle Stages
Introduction Stage: The new product enters the market and
the innovators try it.
Growth Stage: The product grows and the early adapters and
early majority try it.
Maturity Stage: The product is at its’ best phase when the late
adapters try it. If a product does not mature, then it can enter a
decline stage, which ultimately leads to the product exiting the
market.
Decline Stage: This is the beginning of the ending cycle when
the product is replaced is no longer in demand, or has become
obsolete.
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MARKETING SERVICES
THE INTANGIBLE PRODUCT
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MARKETING SERVICES
The marketing of services is different from
marketing a product.
The Definition of a Service: Is any
intangible offering that involves an act,
a deed, a performance, or an effort.
There are four fundamental differences
involved in the marketing of services.
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MARKETING SERVICES
Intangible: Is something that cannot be
touched, tasted, or seen by the consumer.
Inseparable: Services are produced and
consumed at the same time; meaning that a
service and consumption are inseparable.
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MARKETING SERVICES
Variable: This refers to the quality of the
service. The more a service is demanded
and provided, the higher the variability of
the service.
Perishable: Services are considered
perishable because they cannot be stored.
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MARKETING SERVICES
The Gaps Model
This highlights areas in the service industry
where customers believe they are getting
less or poorer service than they should.
These areas are the ‘gaps.’
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MARKETING SERVICES
Knowledge Gap
This refers to the difference between the customers’
expectations and the company’s perceptions about what
the customers expect.
How to Reduce the Gap Understand the consumer’s expectations. Evaluate the service quality of your company. Conduct marketing research to understand the consumers.
Zone of Tolerance: This is the area between what the.
customer can tolerate and what they actually want.
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MARKETING SERVICES
Standards Gap
This refers to the difference between the
company’s expectations of what the consumer
expects and the actual standards they set.
How To Reduce The Gap Training Make sure the managers are committed to
excellence.
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MARKETING SERVICES
Delivery Gap
This is the difference between the firm’s set service
standards and the actual service it provides to
consumers.
How To Reduce The Gap Allow employees to make decisions about the type of
service that should be offered. Provide support services to employees so that they are
always willing to be pleasant. Use technology to increase efficiency.
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MARKETING SERVICES
Communication Gap
The difference between the actual service
that the company provides and the service
that the company promotes.
How To Reduce The Gap Always deliver what you promote.
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MARKETING SERVICES
Service Quality
This is the customers’ perception of how well a
service meets or exceeds their expectations, often is
different for customers to evaluate.
Voice-of-Customer Program
This is the systematic collection of customer inputs
and then the integration of that data, is used in the
managerial decisions process.
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Establishing Service Quality
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RELIABILITY
The ability to perform the service dependably and accurately.
RESPONSIVENESS
The willingness to help customers and provide prompt service.
ASSURANCE
The knowledge of and courtesy by employees and their ability to convey trust and confidence.
EMPATHY
The caring, individualized attention provided to customers.
TANGIBLES
The appearance of physical facilities, equipment, personnel, and communication materials.
Methods to Reducing Delivery Gaps
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Empowering
Employees
Reduce
Delivery Gaps
Use of
Technology
Provide
Support and
Incentives
Methods to Reducing Delivery Gaps
How To Solve The Problem Of Bad Service Listen to the customer Find a fair solution to the problem Always resolve any problems quickly
Distributive Fairness: This is the customers perception of
the benefits he or she is receiving compared with the costs
of inconvenience and/or loss.
Procedural Fairness: This is the perceived fairness with
the resolution process of an issue or complaint.
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The CREST Method
C= Calm the Customer: Listen and show empathy.
R= Repeat the Problem: Confirm your understanding of the issue.
E= Empathy: Use “empathy statements”.
S= Solve the Problem: Take action to resolve the issue.
T= Timely: Make a “timely response” to ensure the issue is resolved in a defined amount of time that is acceptable to all parties that all involved.
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ESTABLISHING VALUE AND PRICING
Price for Marketing Purposes
The amount a consumer is willing to sacrifice to acquire a product or service they need or want.
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The 5 C’s of Pricing
Company Objectives
The pricing strategy that the firm uses should enable them
to achieve their goals.
Profit Oriented Target Profit Pricing: this is when a company has a
target price for a certain profit. Maximizing Profits: the company identifies the price at
which it can have the most profit. Target Return Pricing: not directly concerned with profit
but rather return on investment (ROI).
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The 5 C’s of Pricing
Sales Oriented The Company feels that they should set a price to
increase sales and not necessarily focus on profit initially. Rather as sales increase, they will eventually hit their
target profit.
Competitor Oriented Competitive Parity: the company sets prices that are
similar to that of their competitor. Status Quo Pricing: only changes their price to meet or
beat their competitor.
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The 5 C’s of Pricing
Customer Oriented Invokes the concept of value. How much is the customer willing to pay for a
product or a service.
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The 5 C’s of Pricing
Customers
This is the stage where the company then
tries to understand the consumer’s reaction
to the different prices. This stage is very
important since it deals with the customer
who in turn creates the value.
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The 5 C’s of Pricing
Demand Curve: This is a chart that shows how the
demand of a product can change over time based on
the price. Typically the cheaper the product the higher
the demand, so there is an inverse correlation.
Price Elasticity: This formula measures how a
change in price can affect the quantity of the product.
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The 5 C’s of Pricing
Three Things That Affecting Demand
1. Changes in Income: People’s change in income can affect what they purchase and how much.
2. Substitution: There may be another product that the consumer changes to.
3. Cost Price Elasticity: This refers to the % change in price of the product.
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The 5 C’s of Pricing
Costs
The company has to understand cost structures so that
they know the degree to which their products will be
profitable at different prices. Variable: Costs of the product that can change such as
primary labor and raw materials. Fixed: Costs that typically do not change such as rent
and salaried labor. Total: The variable and the total cost.
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The 5 C’s of Pricing
Break Even Analysis
This is simply a technique by which a
company can determine the price at which
they cover all their costs.
There is no profit but also no loss.
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The 5 C’s of Pricing
Competition
This has a huge effect on pricing simply because
business is a competitive world. Monopoly: One company dominates the market
and has little competition. Oligopoly: A couple companies dominate the
market so they compete with each other primarily. Pure: There is no one company or some
companies that dominate the market.
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The 5 C’s of Pricing
Channel Members
This refers to the individuals who take the
product and channel it out into the market.
There are manufacturers, wholesalers, and
retailers. The pricing will vary from channel
to channel since typically they have variable
costs.
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Gray Marketing
This is the area in marketing that is not
necessarily illegal but can cause conflicts of
interest. Most gray areas in marketing are
addressed; with clearly defined agreements
between retailers and manufactures.
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Influences On Pricing
The Internet: People are now able to get more
knowledge about different products, company
different prices easily and even shop online.
The Economy: This ties back in to disposable
income. If the economy is doing well and people
have a higher disposable income then they would
be more likely to spend more.
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Pricing Strategies
Pricing
Strategies Value-BasedCost-Based
Competitor-Based
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Pricing Strategies
Cost Based Methods
This determines the price based on the initial cost. It is
based strictly on cost and not on the consumer’s value.
Competitor Based Methods
This uses the competitor’s price to create their own. Also
includes premium pricing which is keeping the price above
the competition so that people can think that the quality is
superior.
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Pricing Strategies
Value Based Methods Improvement Value Method: this is how much more or
less a consumer is willing to pay for a product relative to their competitor.
Cost of Ownership Method: this related the total cost of owning the product over the life of the product.
Psychological Methods
This appeals to the consumer’s psyche. For example, the
consumer may purchase something if it is 6.99 vs. 7.00.
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Pricing Strategies
Product Line Pricing
This refers to when you have a line of
products for example at a car wash.
Promotional Pricing
Offering some type of promotion, such as
buy one get one free.
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Pricing Strategies
Geographical Pricing
This is varying the price based on location. This would be
based on how rare the product is or perhaps shipping
costs for the manufacturers to get the raw materials.
Product Bundle Pricing
This is offering a package. Often companies will do this to
either get rid of a group products or a single product or
simply to increase the dollar value of the sale.
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Psychological Factors that Affect Prices
This is the psychological process in which
the buyer is influence and reacts to prices.
Consumers assign meaning of prices by
placing them into categories. (expensive, a
good deal, cheap, overpriced, or fair)
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Psychological Factors that Affect Prices
Reference Prices: Is the price in with buyers compare
the actual selling price of the product, which allows
the consumer to compare prices.
Every-Day Low Prices: Companies use this strategy
to let consumers believe that their prices are always
lower so it attracts the mind.
Price vs. Quality: The consumer will pay the price
based on what they feel the value and quality are.
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Pricing New Products
Price Skimming: Innovators and early
adapters would be willing to pay a higher
price to get the product; therefore the initial
price is high.
Market Penetration Pricing: Setting the
initial price low as an introductory price.
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Pricing Tactics
Seasonal Discounts: An additional
reduction based on the season.
Quantity Discounts: Buy more and you
pay less!
Price Lining: Establishing a range of prices
and is effective with high end products since
the lower price would still be perceived as a
great product.
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Pricing Tactics
Price Bundling: Bundle the products
for one price.
Markdowns: Reductions on the initial
selling price of the product.
Coupons and Rebates: The company
gives coupons in the newspapers.
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Legality and Ethics in Pricing
Deception: Always tell the truth in
advertising.
Bait and Switch: The store advertises a
product at a certain price and then lures the
consumer in and attempts to switch the
product to a higher price product.
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Legality and Ethics in Pricing
Predatory Pricing: When a company uses
a very low price with the intent to send their
competitor out of business.
Price Discrimination: Selling a product at a
different price to different people or channels.
Price Fixing: Collaborating with other companies
to fix the price so the consumer has no choice.
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RETAILING
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What is Retailing?This is a set of business activities that add value to products and services sold to the consumers for their personal or family use.
What Is The Difference BetweenRetailing And Wholesaling?
Wholesaling involves buying the
item, storing and handling the item
and often does not add value as far
as customer service.
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Creating Value Through RetailingUsing the Marketing Mix
Product Assortments give customers a choice. Companies have developed their own line of
products.
Price Aligning the price with the marketing image. Manufactures consider prices when selling to
retailers so that they can both be competitive in their own marketplace.
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Creating Value Through RetailingUsing the Marketing Mix
Promotion Retailers specialize in promotion. Consumers have access to store credit, coupons
and gift cards. Retailers invest in display items to attract the
consumer.
Placement Convenience is the key to getting the consumer. The three most important things in retailing are
“location, location, location”.
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Types of Retailers
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Supermarket
Supercenter
Convenience
Warehouse Club
Drug
Category Specialist
Full-Line Discount
Off-Price
Department
Specialty
Extreme Value
Food Retailers General Merchandise
Channels for Selling to Consumers
Store Channel
Brick and mortar retail stores offer consumers several
benefits they cannot get when they shop online. • Browsing• Touching and Felling Products• Personal Service• Cash and Credit Payment• Entertainment and Social Experiences• Immediate Gratification• Risk Reduction
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Channels for Selling to Consumers
Catalog Channel
This channel provides specialty items that
cannot be purchased at the store.
Other Benefits Include: • Convenience• Information• Safety
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Channels for Selling to Consumers
Internet Channel
The internet provides several benefits to the
purchaser. • Broader Selection• More Information to Evaluate Merchandise• Personalization • Convenience
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Integrated Marketing Communications (IMC)
This refers to the Promotion aspect of the
marketing mix. This process includes,
general advertising, personal selling,
sales promotion, public relations, direct
marketing efforts, electronic media and
public contributions.
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Integrated Marketing Communications (IMC)
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Customer
Focused
Communication
Channel Results
IMC
Different Elements of IMC Strategy
Advertising: Advertising is a paid form of
communication from an identifiable source
delivered through a communication channel.
Personal Selling: Two-way communication
between a buyer and seller.
Sales Promotion: Special incentives or
programs that encourage sales such as
coupons, rebates, samples etc.
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Different Elements of IMC Strategy
Direct Marketing: The message is delivered
directly to the consumer such as emails or
phone texts.
Public Relations: The firm uses this to
promote themselves and the product without
paying for advertising.
Electronic Media: The company uses the
internet to allow the consumer the opportunity
to test the product such as with games.
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Legalities in IMC
Commercial Speech: A message with an
economic motivation to promote a product
to persuade someone to purchase it.
Commercial speeches have to be
substantiated.
Non-Commercial Speech: A message
without an economic motivation.
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The Communication Process
The Sender: This refers to the actual
company or the entity wanting to send
the message.
The Transmitter/ The Encoder: This
refers to the person or agency that the
sender goes to in order to transmit the
message. The transmitter then encodes
the message into a deliverable format.
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The Communication Process
The Communication Channel: This is
the channel of communication such as
television, radio or the newspapers.
The Receiver/ The Decoder: This is the
consumer on the other end getting the
message and decoding it so that they
understand the message.
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The Communication Process
Other Considerations
Noise: This refers to interference when
the message is relayed.
Feedback: This allows the receiver to
communicate with the sender so that
the sender knows if the message was
received.
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The AIDA Model
Awareness: Make the consumer aware
of the product and the company. Get their
attention.
Interest: Use communications to increase
the consumer’s interest in the product
once he or she is aware. Make the
consumer like the product.
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The AIDA Model
Desire: After getting the consumer
interested in the product, this phase
should make the consumer feel that they
have to have it. Make the consumer want
the product.
Action: Once the consumer likes and
wants the product, the goal of this phase
if for the consumer to purchase the product.
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The AIDA Model
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Awareness
Do Feel Think
Interest
DesireAction
ADVERTISING
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What is Advertising?
This is a paid form of communication delivered
using some different types of media, that we
communicate your message about your
organization, products, services, or idea,
designed to persuade the receive to take some
type of action, now or in the future.
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The Process Of Planning For Advertising
Step 1- Identify The Target Audience
It is always a key component to determining who you are
trying to market the product or service to.
Step 2 - Set Advertising Objectives To Inform/Informative Advertising: This type simply informs
consumers about the product and the brand. To Persuade/Persuasive Advertising: This type is to
persuade the consumer to purchase after they are aware
of the brand.
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The Process Of Planning For Advertising
Step 2 - Set Advertising Objectives To Remind/Reminder Advertising: This type simply
reminds people that the product is available.
It Can Be Used For Two Things: To remind people about
products that are doing well and simply for them to think
about it or for products that have not been doing too well
to generate some new interest.
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The Process Of Planning For Advertising
Step 3 - Determine the Budget Consider the role that advertising will play or contribute
to the achievement of the organizational objectives. The product cycle should be considered when
determining the budget. The nature of the market and the products influence
should also be considered.
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The Process Of Planning For Advertising
Step 4 - Convey the Message The marketer determines what they want to convey. Ensure that the message you are coding is able to be
decoded accurately. Ensure that you appeal to the senses of the consumer.
There Are Two Senses
1) Informative
2) Emotional
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The Process Of Planning For Advertising
Step 5 - Evaluate And Select The Form Of Media Ensure that you select the appropriate media for
the market you are trying to target. Try to determine how often you would like the ad
to appear to the audience.
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The Process Of Planning For Advertising
Step 6 - Create the Ad
There are several key components to creating an ad for print. The Heading: This is the type of text, and the font size. The Body Copy: This is the actual text portion of the ad. The Background: Or backdrop for the ad and selection of
color(s). The Foreground: This is everything that appears on top of
the background. The Branding: This is the logo/symbol that identifies the
sponsor of the ad.
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The Process Of Planning For Advertising
Step 7 - Assess The Impact
The effectiveness of the ad campaign should be
assessed before, during and after the ad has run.
Pretesting: This is the assessments that are
completed before the ad campaign is implemented.
Tracking: Monitoring KPIs during the campaign.
Post-Testing: This is the evaluation of the
campaign’s impact after it has been implemented.
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Types Of Media Used In Advertising
Outdoor Ads/Posters/Billboards Television Radio Magazines Newspapers Internet/Web Engines Direct Mail Cinema
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Promoting Sales
Use of Coupons Give Deals: Short term reduction in price. Have Contests: This usually is based on the consumer
doing something or having some skill. Do Sweepstakes: The consumer will simply have to fill
out a form. Provide Samples: Let the consumer try it for free. Create Loyalty Programs: This can be tied in with the use
of credit cards. Use Product Placement: Such as putting the product in a
movie or TV show to create appeal.
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PERSONAL SELLING AND SALES
What Is Personal Selling?
This occurs when an individual salesperson sells
a product or service to a client. It involves a two way flow of communications. The salespeople match the benefits of what they
are offering to the specific needs of the clients. The purchase tends to involve large sums of
money.
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PERSONAL SELLING AND SALES
Relationship Selling
This is maintaining and building the relationship over time
once it has been established.
The Value of Personal Selling The sales person can educate the consumer and also
provide advice. The salesperson saves the consumer time and makes
the purchasing process easy.
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The 6 Stage Personal Selling Process
Prospecting
This refers to finding prospects or potential
consumers. This can be done either by purchasing
leads from a private company or generating them
from the community such as trade shows.
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The 6 Stage Personal Selling Process
Making The First Contact Know the potential client if possible before you
make the initial contact. Set an objective for the call…what is the purpose…
to set an appointment etc? Ensure that you state the purpose of your call when
you make it. If you had set a time before for the call, then make
sure you are on time.
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The 6 Stage Personal Selling Process
The Actual Sales Call This can be the actual sales presentation.
Handling Objections Be prepared to answer questions.
Closing the Sale Ask for the business at the appropriate time.
The Follow Up After the Sale Always have a follow up plan. Use a (CRM) System.
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PERSONAL SELLING AND SALES
Ethical Issues With Personal Selling Treat everyone fairly and equally. Always tell the truth.
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PERSONAL SELLING AND SALES
Things To Consider When Managing A Sales
Department Recruiting The Correct Sales People: Not everyone
can do any job. Training: Be sure that before the sales person is in
action, that proper training is provided. Setting Objectives: It is important that each
salesperson knows their goals. Provide Support Personnel
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Q & A
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