Principles of Marketing

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Principles of Marketing

• Dina El Tabey
• Mariam Abou-Youssef

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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

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Todays Objectives

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

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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

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What Marketing Does?

• Reach customers
• Motivate Them To Buy
• Use
• AND REBUY The product

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What Marketers Do?

• Reach customers
• Motivate Them To Buy
• Use
• AND REBUY The product

Marketers Should March To The Drums Of The
Customers
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STP (Segmentation, Targeting Positioning)

• Market segmentation
• Identify bases for segmenting the market.
• 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.
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1. Market segmentation

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

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Market segmentation

• Buyers differ in
• Wants
• Resources
• Locations
• Buying attitudes
• Buying 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

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Geographic segmentation

• Dividing a market into different geographical
  units such as nations, states, regions, counties,
  cities or neighborhoods
• Al-wasset classifieds (maadi)

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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

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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

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Income segmentation

• Dividing the market into different income groups
• Cars, financial services

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Psychographic segmentation

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

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Behavioral segmentation

• Dividing a market into groups based on consumer
  knowledge, attitude, use, or response to a
  product
• Occasion segmentation
• Dividing the market into groups according to
  occasions when buyers get the idea to buy

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Behavioral segmentation (contd)

• Benefit sought segmentation
• Dividing the market into groups according to the
  different benefits that consumers seek from the
  product (detergent)

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Using multiple segmentation bases

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

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Requirements for effective segmentation

• Measurable
• Accessible
• Differentiable (segment is unique)
• Actionable (can perform marketing mix to reach
  this segment)

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STP

• Market segmentation
• Identify bases for segmenting the market.
• 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.
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Target marketing

• The process of evaluating each market segments
  attractiveness and selecting one or more segments
  to enter

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Evaluating market segments

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

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Selecting target market segments

• Target market
• A set of buyers sharing common needs or
  characteristics that the company decides to serve

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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
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STP

• Market segmentation
• Identify bases for segmenting the market.
• 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.
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Product positioning

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

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Perceptual Positioning Map for Automobiles
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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

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Consumer products

• Principles of Real World Marketing

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Principles of Real World Marketing

• Your Customers Arent 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

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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

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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

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IMC
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Marketing communications mix - promotion mix

• The mix of
• Advertising
• Personal selling
• Sales promotion
• Public relations
• Direct Marketing
• That the company uses

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a. Advertising

• Any paid form of non-personal presentation and
  promotion of ideas, goods, or services
• Advertising tools
• Print (newspapers, magazines)
• TV
• Radio
• Outdoor
• Online

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1. Setting advertising objectives

• A specific communication task to be accomplished
  with a specific target audience during a specific
  period of time
• Objectives
• Informative (new product category)
• Persuading (when competition increases,
  comparative advertising, comparative advertising
  AUDI ad)
• Reminding (coca cola, Pepsi)

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2. Developing advertising strategy a. 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)

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• Message execution
• Technical expertise shows the companys
  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

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2. Developing advertising strategy b. Selecting
advertising media

• Deciding on reach, frequency
• Reach 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

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Choose Your Media Type

• Question
• How to choose the best medium?
• Answer
• Whatever Works for your campaign and reaches your
  target market
• Primary Medium
• Secondary Medium
• Spread your budget equally on more than one medium

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Profiles of major media types
Medium Advantages
Limitations
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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

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Exercise

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

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Television

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

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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 salons service start right
  away with ex. not another bad hair day

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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

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Outdoor Billboards, Banners and Signs

• Forms
• Vinyl
• Hand Painted
• Wood
• Metal
• Light Boxes
• Electronic Display

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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

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Other Forms of Indirect Advertising

• Point Of Purchase POP
• Flags
• Danglers
• Roll ups pop ups
• Word Of Mouth
• Virtual WOM
• Face To Face

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b. Sales promotion

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

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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)

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Major sales promotion tools for consumers (contd)

• Contests and sweepstakes
• Contests 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, 20extra)

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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

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c. Public relations

• Building good relations with the companys
  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 Donalds and the hospital 53753)
• Special events (Vodafone and the charity complex)

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d. Personal selling

• Personal presentation by the firms sales force
  for the purpose of making sales and building
  customer relationships
• Personal selling tools
• Personal presentation
• Trade shows (exhibitions and fairs. Le marche)

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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 marketing
• Sending catalogues
• Telemarketing

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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

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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

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Push Vs Pull strategy
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1. Affordable method

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

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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

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3. Competitive-parity method

• Setting the promotion budget to match
  competitors outlays
• Get Data from reports such as PARC
• Mobinil and Vodafone
• Pepsi and coca cola

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4. Objective and task method

• Developing the promotion budget by
• Defining specific objectives
• Determining the tasks that must be preformed to
  achieve these objectives
• Estimating the costs of performing these tasks
• The sum of these costs is the proposed promotion
  budget