MarketingMarketingPreview

3. What product can I sell where at what price?

2. How are markets analysed?

1. What is marketing?

4. Have my marketing measures been effective?

Definition

MARKETING includes all the activities needed to direct the flow of goods and services from producers to consumers.

at least two parties each has something to offer must be able to communicate must be able to deliver parties must be free to accept or reject offers

Roles of marketing

but also:• product development (brand and product managers)

• packaging (packaging designers)

• pricing (pricing specialists)

• distribution (sales personnel)

main roles:• advertising (advertising and promotion managers)

• selling (sales representatives/sales force)

Marketing Process

three elements:

1. Market analysis (Who will buy?)

2. Marketing-mix planning (What? Where? How much? How?)

3. Marketing control (Have we been successful?)

1. Market analysis (STP)

a) Segmentationsegmentniche

individuals

b) Targeting: Who are my customers?

c) Positioning: What is my main selling point?

= developing a tactics to achieve strategic aims

elements:

a) Product

b) Price

c) Place

d) Promotion

aim: to make customers from the target group buy

2. Marketing mix planning (4 P)

= looking back at the entire process to find out whether or not it was successful

Why control?• planning is no guarantee for profit• markets change constantly• strategies not always effective

Tools:a) Annual-plan controlb) Profitability controlc) Efficiency controld) Strategic control

3. Evaluation and control

1. Market analysis (STP) Segmentation Targeting Positioning

2. Marketing-mix planning (4 P)

Product Place Price Promotion

3. Marketing control Annual-plan control Profitability control Efficiency control Strategic control

Review

a) Product

nowadays:

- products have a life cycle

- product range is constantly expanded

- find out what target market desires

Consequence is adjustment of:

Product development

traditional economies: same things produced and consumed

- public relations- finance

- personnel administration - research & development- production

Packaging

• create clear message• create credibility • involve emotionally • motivate• invite user loyalty

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Branding

b) Price

Pricing strategies:

1. Market determinesthe price

2. Price as an expression

of quality3. Price as a method of

gaining market share

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c) Place (distribution)

Production site Warehouse Wholesaler

Retailer

- factory outlet - mail order house- internet- TV shopping- door-to-door selling

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c) Promotion

Aims: communicate with customers

influence customers

4 major tools:1. Sales force 2. Advertising3. Sales promotion4. Public relations

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1. Sales force

they personalize the promotion process

Representatives who advertise for and sell products

effective at selling complex goods

most expensive promotion

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2. Advertising

Presents a reason to buy a product/service

Media:

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3. Sales promotion

attracts brand switchers

is a short-term incentive (Anreiz) to buy a product/service

Techniques:

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3. two for one

2. loyalty reward points

1 price reduction

4. Public relations

Does not aim to increase sales directly but tries to boost the image of the company

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- contests - community events - charitable events - ecological projects

Techniques:

- press conferences

- foundations

a) Annual-plan control

Tools:

1. Sales analysis (Did we sell as much as we planned?)

2. Market-share analysis(Have we lost or gained market share?)

3. Marketing expense-to-sales analysis(Did the marketing efforts pay?)

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b) Profitability control

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• many cheap products and many customers

Do we have more earnings than expenditures?

Strategies:

Aim:Which of my products is the most profitable?

• few expensive products and few customers

c) Efficiency control

Example: Avon Lady (sales representative) how many doors in what time? how many products sold?

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Are my marketing methods profitable?

d) Strategic control

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Is my marketing program effective over a long period of time?

marketing philosophy

information policy- enough advertisement?- enough promotion?

Positioning USA: “big and powerful”

after few years: Is this positioning still OK?

1. Sales analysis

Comparison sales goals (100 units) actual sales (20 units)

_____________ discrepancies???

reasons

better product of the competitors decline of the economic situation wrong calculation

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2. Market share analysis

analysis of the competition on the market

Rates of selling beauty cases

28%

42%

13%

17%

Gucci

Joop

Dolce & Gabbana

Kuniberg

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3. Marketing expense-to-sales analysis

• How much did my marketing activities cost?• What sales numbers have these activities

generated?

Example: expenses (costs): € 200.000sales revenues: € 200.001

=> We have a problem!!!

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