MARKETING APPROACHES/STRATEGIES enhanced sales force efficiency and effectiveness

TRADITIONAL improved pricing

一 PRODUCTION CONCEPT customized products and services
assumes that customers prefer products that are improved customer service efficiency and
inexpensive, affordable, and widely available effectiveness
individualized marketing messages; campaigns
一 PRODUCT CONCEPT
assumes that customers will always prefer and CUSTOMER LIFETIME VALUE
patronize products of high quality 一 forecasted sales or profits that a company can derive from
consumers will favor those products that offer the an entire span of the future relationship with a particular
most quality, performance, or innovative features customer.

一 SELLING CONCEPT MARKETING MIX

emphasizes aggressive selling and promotional PROMOTION
efforts 一 communication by marketer that informs, persuades, and
consumers and businesses, if left alone, will reminds potential buyers of a product in order to influence
ordinarily not buy enough of the selling company’s an opinion or elicit a response
products
一 ROLE OF PROMOTION IN THE MARKETING MIX
CONTEMPORARY
一 SOCIETAL MARKETING CONCEPT
includes considerations that protect customers
well-being and interests, as well as the interest of the
environment and society

一 RELATIONSHIP MARKETING CONCEPT

believes that all marketing activities are for the
purpose of maintaining, and strengthening meaningful
long-term relationships with customers

一 MARKETING CONCEPT
considers the needs of both the customer and the
product offered
一 MARKETING COMMUNICATION
CUSTOMER SERVICE
CUSTOMER - DRIVEN MARKETING
一 involves activities designed to enhance customer
satisfaction, or the perception that a product has met or
exceeded expectations
一 relationship marketing is a strategy designed to foster
customer loyalty interaction and long-term engagement
一 designed to develop strong connections with customers by
providing them with information directly suited to their
needs and interests and by promoting open
communication – Forbes

CUSTOMER SERVICE
一 process of ensuring customer satisfaction with product or SENDERS
service • inform
• persuade
CUSTOMER RELATIONSHIP MANAGEMENT • remind
一 process of managing an organization’s interactions with RECEIVERS
current and future customers • develop messages
一 BENEFITS • adapt messages
enhanced ability to target customers • spot new communication opportunities
integrated assistance across channels
一 GOALS AND TASKS OF PROMOTION . transit advertising

- NEW ADVERTISING MEDIA

. web sites
. e-mail
. blogs
. videos
. interactive games

• ADVANTAGES & DISADVANTAGES

- ADVANTAGES
INFORMATIVE PROMOTION . reach large number of people
• increase awareness . low cost per contact
• explain how product works . can be micro-targeted
• suggest new uses
• build company image - DISADVANTAGES
. total cost is high
PERSUASIVE PROMOTION . national reach is expensive for small
• encourage brand switching companies
• change customers’ perceptions of product
attributes PUBLIC RELATIONS
• influence immediate buying decision • evaluates public attitudes, identifies areas within
• persuade customers to call the organization that public may be interested in,
and executes a program to earn public
REMINDER PROMOTION understanding
• remind customers that product may be needed
• remind customers where to buy product • FUNCTIONS
• maintain customer awareness - maintain a positive image
- educate the public about the company’s
CONNECT PROMOTION objectives
• form relationships through social media - introduce new products
• encourage transparent information exchange - support the sales effort
• customers become brand advocates - generate favorable publicity

一 PROMOTIONAL MIX SALES PROMOTION

combination of promotion tools used to reach the • marketing activities, other than personal selling,
target market and fulfill the organization’s overall advertising, and public relations, that stimulate
goals consumer buying and dealer effectiveness
• short run tool to stimulate immediate increase in
ADVERTISING demand
• most commonly distributed by traditional media,
though increasingly through non-traditional
media, such as websites, e-mail, blogs, and
interactive video kiosks in malls and
supermarkets

• ADVERTISING MEDIA
- TRADITIONAL ADVERTISING MEDIA
. television
. radio
. newspapers
. magazines
. pay-per-click advertising
PERSONAL SELLING
. banner advertising
• planned presentation to one or more prospective
. direct mail
buyers for the purpose of making a sale
. billboards
 PRODUCT
SOCIAL MEDIA 一 anything that can be offered to the market for attention,
acquisition, use, or consumption that might satisfy a want
一 PROMOTIONAL GOALS AND THE AIDA CONCEPT or need
attention, interest, desire, action
model that outlines the process for achieving 一 LEVELS OF A PRODUCT
promotional goals in terms of stages of consumer CORE PRODUCT
involvement with the message • problem-solving services or benefits that
consumers are really buying when they obtain a
product

ACTUAL PRODUCT
• product’s parts, quality, level features, design,
brand name, packaging, and other attributes that
combine to deliver core product benefits

AUGMENTED PRODUCT
• additional consumer services and benefits built
around the core and actual products.

一 CLASSIFICATIONS OF PRODUCTS
一 INTEGRATED MARKETING COMMUNICATIONS CONSUMER PRODUCTS
the careful coordination of all promotional messages • products bought by final consumers for personal
to assure the consistency of messages at every consumption
contact point where a company meets the consumer
• SHOPPING PRODUCTS
一 FACTORS THAT AFFECT THE PROMOTIONAL MIX - consumer goods that the customer, in the
NATURE OF THE PRODUCT process of selection and purchase,
STAGE IN PLC characteristically compares on such bases
TARGET MARKET CHARACTERISTICS as suitability, quality, price and style
- examples: furniture, clothing, used cars,
major appliances

• CONVENIENCE PRODUCTS
- consumer products that the customer usually
buys frequently, immediately, and with a
minimum of comparison and buying effort
- examples: toothpaste, crackers, candy bars,
magazines, umbrellas during rainy season

• SPECIALTY PRODUCTS
TYPE OF BUYING DECISION - consumer goods with unique characteristics
PROMOTION FUNCTIONS or brand identification for which a significant
PUSH OR PULL STRATEGY group of buyers is willing to make a special
purchase effort.
- examples: cars, custom-made suits,
high-tech photo equipment

• UNSOUGHT PRODUCTS
- consumer products that the consumer either
does not know about or knows about but
does not normally think of buying.
- examples: life insurance, phone plan, fire
extinguishers

一 THE PRODUCT LIFE CYCLE

 INTRODUCTION
• occurs when product first enters the marketplace 一 PRICING STRATEGIES
• promoting consumer awareness PENETRATION PRICING
• getting customers to try new product • a business will introduce a product/service at a
• millions of dollars spent to educate consumers lower price than the normal price to attract
• major task - getting product in the marketplace customers
• example: C2 Solo was first introduced at 8 pesos
GROWTH instead of 15 pesos
• more competitors enter the marketplace
• adding distribution outlets PRICE SKIMMING
• product improves by adding flavors, features, etc. • this is when a business will have a unique
• improved to stay competitive product and be able to charge a high price for an
• sold in more locations amount of time
• when the iPhone was introduced, Apple were the
MATURITY market leaders so could charge what they
• sales begin to slow down for the product wanted
• repeat customers stop buying the product
• attracting new buyers is a challenge STATUS QUO PRICING
• product has reached its peak • a business will charge a similar price to its
immediate competitors
DECLINE • example: a supermarket may decrease the price
• sales and profits drop of petrol and then the other supermarkets in
• little to no marketing support direct competition may copy
• product may be dropped by company
• there is no longer a demand for the product PLACE
一 DISTRIBUTION AS A COMPETITIVE STRATEGY
一 HOW STAGES OF THE PRODUCT LIFE CYCLE mass customization requires a different distribution
RELATE TO FIRM’S MARKETING OBJECTIVES AND strategy
MARKETING MIX ACTIONS rapid pace of markets requires minimizing products
held in inventory
low cost distribution (e.g. the internet) is a powerful
tool for value creation

一 DISTRIBUTION TRENDS
collapse of the middle - bundles and value-added
solutions
emergence of new customer groups
migration within the value chain
redefinition of the product/service (e.g., Starbucks and
coffee)

一 DISTRIBUTION CHANNEL OPTIONS

PRICE
一 FACTORS
INTERNAL FACTORS
• marketing objectives
• marketing-mix strategy
• costs
• organizational considerations

EXTERNAL FACTORS
• nature of the market and demand DEFINITION OF AN EFFECTIVE CHANNEL
• competition • inventory
• other environmental factors (economy, resellers, • ownership
government) • negotiation
 • gathering of market information
• financing and payment
• risk management

NEED FOR INDIRECT CHANNELS TO PROVIDE

VALUE FOR MANUFACTURERS
• CHANNEL ASSEMBLY
- manufacturers ship semi-finished products to
distributors
- build products based on demand

• CO - LOCATION
- distributor’s employees work from vendor
manufacturing site to ship completed
products to resellers

DISTRIBUTION STRATEGY
• TRADITIONAL CHANNEL

• DIRECT CHANNEL

• E-COMMERCE

INTERMEDIARIES
• aggregate heterogeneous goods into a line of goods
• break bulk
• provide customer/market information to
• the producer/manufacturer