MGT-519 STRATEGIC MARKETING

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MGT-519 STRATEGIC MARKETING

• AAMER SIDDIQI

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• LECTURE 32

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• REVISION

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PROMOTION

• Promotion is the method used to spread the word
  about theproduct or service to
  customers,stakeholders and the broader public.
• Promotion informs consumers about therest of the
  marketing mix. Without it, consumers do not
  know about the product, the price, or the place
• Promotion refers to raising customer awareness of
  a product or brand, generating sales, and
  creating brand loyalty. 
• 3 basic objectives of promotion. These are
• To present information to consumers
• To increase demand.
• To differentiate a product
•  

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PROMOTIONAL MIX

• Promotional Mix includesPersonal selling 
• Prospecting and qualifying
• Pre-approach.
• Approach
• Presentation and demonstration
• Handling objections
• Closing Follow-up
• Promotion
• Consumer promotions
• Point of purchase display material
• In-store demonstrations, samplings and celebrity
  appearances
• Competitions, coupons, sweepstakes and games,
  On-pack offers, multi-packs
• Loyalty reward programs
• Sales Force Promotions
• Commissions
• Sales competitions with prizes or awards

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SALES PROMOTION ACTIVITIES (CONTD)

• Business promotions
• Seminars and workshops
• Conference presentations
• Trade show displays
• Telemarketing and direct mail campaigns
• Newsletters
• Event sponsorship
• Capability documents
• Trade promotions
• Reward incentives linked to purchases or sales
• Reseller staff incentives
• Competitions
• Corporate entertainment
• Bonus stock

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PUBLIC RELATIONS

• Public relations 
• 'deliberate,
• planned and
• sustained effort
• to establish and
• maintain mutual understanding between an
  organisation and its public
• PR can be split into 2 forms
• Proactive
• communications designed to build understanding
• Pro-active campaigns are long-term attempts to
  build on core values of the organisation
• Reactive
• communications designed to counter
  misunderstanding.
• the result of the need to counter an event that
  has resulted in negative views about the
  organisation

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STAKEHOLDERS

• Stakeholders are the various groups in a society
  which can influence or pressure your businesss
  decision making and have an impact on its
  marketing performance.
• Operationally, stakeholders really refer to those
  groups that your business is or should be,
  communicating with
• These groups include 
• Clients/customers
• Staff
• Shareholders
• Strategic partners
• Media
• Government
• Local community
• Financial institutions

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KEY STEPS IN IMPLEMENTING PUBLIC RELATIONS

• The three major steps are -
• Setting the objectives what is it you want to
  achieve and who do you want to reach?
• Deciding on the message and the vehicle what is
  the major thing you want to communicate
• Evaluating the results did you achieve the
  desired result
• did it lead to a positive outcome?

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ADVERTISING

• Advertising is a 'paid for' communication
• Mass, i.e. nontargeted
• Direct, targeted.
• Used to develop attitudes,
• create awareness, and
• transmit information
• In order to gain a response from the target
  market.

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ADVERTISING

• Advertising is a form of communication designed
  to persuade potential customers to choose your
  product or service over that of a competitor
• Successful advertising involves making your
  products or services positively known by that
  section of the public most likely to purchase
  them.
• It should be a planned, consistent activity that
  keeps the name of your business and the benefits
  of your products or services uppermost in the
  mind of the consumer.

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WHY ADVERTISE

• The objective of advertising is to increase your
  profit by increasing your sales. Advertising aims
  to
• Make your business and product name familiar to
  the public
• Create goodwill and build a favourable image
• Educate and inform the public
• Offer specific products or services
• Attract customers to find out more about your
  product or service

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RULES OF ADVERTISING

• There are four rules to consider when planning
  any advertising activity
• Aim - What is the primary purpose of the
  advertisement?
• Is it to inform,
• sell,
• produce listings or
• improve the image of business?
• Target - Who is the target?
• From which sector of the public are you trying to
  achieve a response?
• For example is it male, female, adult, teenager,
  child, mother, father etc.

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RULES OF ADVERTISING

• Media  Bearing the aim and target in mind, which
  of the media available to you is the most
  suitable
• ie TV, radio, press or Internet?
• Competitors  What are your competitors doing?
• Which media channel do they use?
• Are they successful?
• Can you improve on their approach and beat them
  in competition?

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DEVELOPING EFFECTIVE ADVERTISING

• Good advertising generally elicits the following
  four responses
• Attention  It catches the eye or ear and
• stands out amid the clutter of competing
  advertisements.
• Interest  It arouses interest and
• delivers sufficient impact in the message or
  offering.
• Desire  It creates a desire to learn more or
  crave ownership.
• Action  It spurs an action
• which leads to achievement of the ads original
  objective
• ie it prompts potential customers to purchase or
  use your product or service.

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COMMONLY USED MEDIA

• Stationery
• Window display or office front
• Press advertising
• Radio
• Television
• Direct mail
• Outdoor
• Ambient
• Cinema
• Point of Sale
• Online
• Directory listings

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TRADE FAIRS AND EXHIBITIONS

• The purpose of trade fairs and exhibitions is to
  increase awareness
• Encourage trial
• Largely through face-to-face contact of supplier
  and customer.
• They offer the opportunity for companies to meet
  with both the trade and the consumer,
• Both to build relationships outside traditional
  sales meetings.
• They are heavily used with B2B marketing
• Within technology and engineering based products

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SERVICE MARKETING MIX

• EXTENDED MARKETING MIX (7Ps)
• A service is not tangible the marketing mix for
  a service has three additional elements 
• Physical Evidence
• People
• Process
• By adding these three aspects to the marketing
  mix, you get what is known as the 7 Ps of
  Marketing.

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PHYSICAL EVIDENCE

• The environment in which the service is delivered
  and where the firm and customer interact, and any
  tangible components that facilitate performance
  or communication of the service. 

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MATERIAL PART OF SERVICE

• Physical evidence is the material part of a
  service.
• Strictly speaking there are no physical
  attributes to a service, so a consumer tends to
  rely on material cues. There are many examples of
  physical evidence,
• Packaging.
• Internet/web pages.
• Paperwork (such as invoices, tickets and despatch
  notes).
• Brochures.
• Furnishings.
• Signage (such as those on aircraft and vehicles).
• Uniforms.
• Business cards.
• The building itself (prestigious/scenic
  headquarters).
• Mailboxes and many others . . . . . .

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EXAMPLES OF PHYSICAL EVIDENCE

• A sporting event is packed full of physical
  evidence.
• Your tickets team's logos printed on them
• Players are wearing branded kits.
• The stadium itself could be impressive and have
  an electrifying atmosphere.
• Some organisations depend heavily upon physical
  evidence as a means of marketing communications,
  for example tourism attractions and resorts (e.g.
  Disney World), parcel and mail services (e.g. UPS
  trucks),
• and large banks and insurance companies (e.g.
  Lloyds of London).

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PHYSICAL EVIDENCE

• To the customer or potential customer, the
  physical environment has to feel right and be in
  line with their expectations. 
• There was a time when all bank branch staff were
  hidden away behind glass screens, dealing with
  customers through a small opening.  This was
  inconsistent with the open and approachable
  stance that the banks were trying to develop.  So
  slowly the banks started to move some staff
  outside into the public area so they could better
  interact with customers. 
• The physical environment then became consistent
  with other elements of the marketing mix.

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PEOPLE

• People are the most important element of any
  service or experience.
• Services tend to be produced and consumed at the
  same moment, and
• Aspects of the customer experience are altered to
  meet the 'individual needs' of the person
  consuming it.
• Most of us can think of a situation where the
  personal service offered by individuals has made
  or tainted a tour, vacation or restaurant meal.

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BUYING PREFERANCES

• Some ways in which people add value to an
  experience, as part of the marketing mix
• training,
• personal selling and
• customer service

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PROCESS

• Process is an element of service that sees the
  customer experiencing an organisation's offering
• This element of the marketing mix looks at the
  systems used to deliver the service.
• Imagine you walk into Burger King and order a
  Whopper Meal and you get it delivered within 2
  minutes.
• What was the process that allowed you to obtain
  an efficient service delivery?
• Banks that send out Credit Cards automatically
  when their customers old one has expired again
  require an efficient process to identify expiry
  dates and renewal.

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THREE VIEWS ON PROCESS

• All views are understandable, but not
  particularly customer focused.
• Three main views in the discussion of process
  within marketing
• Processes is seen as a means to achieve an
  outcome,
• for example - to achieve a 30 market share a
  company implements a marketing planning process.
• 2. Marketing has a number of processes that
  integrate together to create an overall marketing
  process
• for example - telemarketing and Internet
  marketing can be integrated.
• 3. A further view is that marketing processes are
  used to control the marketing mix i.e. processes
  that measure the achievement marketing objectives

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• It's best viewed as something that your customer
  participates in at different points in time
• At each stage of the process, markets
• Deliver value through all elements of the
  marketing mix.
• Process, physical evidence and people enhance
  services.
• Feedback can be taken and the mix can be altered.
• Customers are retained, and other services or
  products are extended and marketed to them
• The process itself can be tailored to the needs
  of different individuals, experiencing a similar
  service at the same time.
• Processes essentially have inputs and outputs.
  Marketing adds value to each of the stages

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PRODUCT MANAGEMENT

• Product management is an organizational lifecycle
  function within a company dealing with the
• planning,
• forecasting, and
• production, or marketing
• Of a product(s) at all stages of the product
  lifecycle
• The role may consist of 
• product development and 
• product marketing,
• Different (yet complementary) efforts, with the
  objective of
• maximizing sales revenues,
• market share, and
• profit margins.

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PRODUCT MANAGEMENT

• Product management is involved in developing an
  understanding of the market, leading to STP,
  which leads to branding and from those to the
  marketing mix, in particular to product design
  and development. In essence Product management IS
  marketing in marketing organisations
• Product management is a strategic role
• Product managers bring a powerful combination of
  skills product and technology expertise combined
  with market and domain knowledge as well as
  business savvy.

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PRODUCT MANAGEMENT

• Marketing people know how to communicate Product
  managers know what to communicate
• Sales people know what one customer wants to buy
  Product managers must determine if the deal
  represents a single customer or a market full of
  customers.
• Developers know what can be built product
  managers know whether it should be built.
• Product management is a strategic role focused on
  what Products and markets we can serve in the
  years to come.

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MARKETING COMMUNICATIONS OR MARCOM ORINTEGRATED
MARKETING COMMUNICATIONS (IMC)

• These are messages and related media used to
  communicate with a market
• They are messages from companies to the customers
  about
• Products
• Brands or
• The company itself
• All marketing communication activity is a form of
  promotion
• In one way or another it attempts to promote the
  interest of the brand, product range and/or
  company.

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THE MARKETING COMMUNICATIONS MIX

• Promotion describes the communications activities
  of
• advertising
• personal selling
• sales promotion and
• publicity/public relations.
• Advertising is a non-personal form of mass
  communication, paid for by an identified sponsor.
  
• Personal selling involves a seller attempting to
  persuade a potential buyer to make a purchase.
• Sales promotion encompasses short-term activities
• Publicity/public relations is a non-personal, not
  paid for communication usually in the form of
  journalistic or editorial cover.

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MARCOM

• The marketing communications mix is made up of
  personal selling, a range of conventional
  advertising media and a range of non-media
  communication tools.
• The conventional media tools, which involve
  renting space on television, newspapers,
  posters, radio etc., are referred to as
  above-the-line promotional techniques.
• Other marketing communications techniques, such
  as sales promotion, sponsorship and exhibitions
  do not involve the commissioning of space or
  air-time in or on conventional media.
• These techniques are referred to as below the
  line techniques. Marketing effectiveness depends
  significantly on communications effectiveness.

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MARCOM

• The market is activated through information
  flows.
• The way a potential buyer perceives the sellers
  market offering is heavily influenced by the
  amount and kind of information he or she has
  about the product offering, and the reaction to
  that information.
• Marketing relies heavily upon information flows
  between the seller and the prospective buyer.
• To many people marketing communications, such as
  television advertising, direct mail and poster
  advertising is marketing.
• This is because marketing communications is
  certainly the most highly visible aspect of
  marketing activity and it impacts on everyday on
  life.

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MARCOM

• Marketing communications, whether above or below
  the line activity, is collectively just one of
  the 4Ps of the marketing mix.
• However, it is a very important part. No matter
  how good a firms product or service offering is,
  the benefits to the consumer need to be
  communicated effectively.
• Marketing communications, in the form of above
  and below the line promotion, lies at the very
  centre of any marketing plan.
• Within the context of a general introduction to
  marketing theory it is not possible to cover the
  subject of Marketing Communications in the depth
  and breadth its role in modern business demands.

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EXPANDING MARKETINGS TRADITIONAL BOUNDARIES

• Non-traditional marketing/Alternative
  Marketing/Off-Street Marketing. The major
  categories are as follows
• Ambient marketing
• Astroturfing or Astroturf marketing
• Buzz Marketing
• Cause marketing or cause-related marketing
• Event marketing
• Experiential marketing
• Guerrilla Marketing
• Grass Roots

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NON-TRADITIONAL MARKETING

• Organisation marketing
• Person marketing
• Place marketing
• Presence Marketing
• Social Marketing
• Social media Marketing
• Sports Marketing
• Tissue Pack marketing
• Undercover Marketing
• Viral Marketing

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• THANKYOU