1、Unit 3 Advertising & Marketing ProcessMarketingvMarketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy the perceived needs, wants and objectives of individuals and organizations. (Aren

2、s: 2008) vThe purpose of Marketing is to sell more stuff to more people more often for more money in order to make more profit. (Sergio Zyman) The marketing mixvThe marketing mix approach to marketing is one model of crafting and implementing marketing strategies. It stresses the mixing of various d

3、ecision factors in such a way that both organizational and consumer objectives are attained. Generally speaking, it includes four Ps.a successful mix vthe right product vsold at the right pricevin the right place vusing the most suitable promotion.4P decides the market planWhatWhereWhenWhoHow manyHo

4、w muchHow to doDecisionMcDonalds marketing department can determine:v1. What products are well received?v2. What prices consumers are willing to pay?v3. What TV programs, newspapers and advertising consumers read or view?v4. What restaurants are visited?Market research Meeting the needs of key audie

5、nces v Marketing analysisSWOT analysis vcompanys products and how appropriate they are for the futurevquality of employees and how well trained they are to offer the best service to customersvsystems and how well they function in providing customer satisfaction e.g. marketing databases and restauran

6、t systemsvfinancial resources available for marketing. Marketing plan vA marketing plan is critical for the development of a successful business. v1. Mission: What is the overall goal of the company?v2. Objectives: What are you trying to achieve (usually over the next year) must be measurable and sp

7、ecificv3. Strategies: What resources need to be applied to achieve these objectives?v4. Tactics (Plan and Time & Events): Which elements of the marketing mix are most appropriate? Which weapons in the marketing armory?Set out the detailed plan including the time frame for all elements. 1. Produc

8、t Historically, the thinking was: a good product will sell itself. However there are no bad products anymore in todays highly competitive markets. Plus there are many laws giving customers the right to return products that he perceives as bad. Define the characteristics of your product or service th

9、at meets the needs of your customers. Therefore the question on product has become : Does the organization create what its intended customers want? ProductAdvertising purpose Set up a brandcompetitionmaintenanceAdvertising strategyinformativepersuasivereminderTarget audience Fashion pursuer Mass con

10、sumer Former consumer & newcomerThe phases of a product life cycle Product (consideration factors)ProductFunctionalityServiceBrandPackagingAppearanceQualitySupportWarrantyInsert ex. 6.14, p. 193Worlds most valuable brandsPosition = 2.9” horizontal, 1.5” verticalSize = 5.7” WIDEResolution = 300 d

11、piThe Product ElementWorlds most valuable brands 2. Place Available at the right place, at the right time, in the right quantities? Some of the revolutions in business have come about by changing Place. Think of the internet and mobile telephones. Place (considerations)PlaceLocations Market Coverage

12、 Channel Motivation Channel membersLogistics Service Levels Internet / Mobile3. Price How much are the intended customers willing to pay? Here we decide on a pricing strategy - do not let it just happen! Even if you decide not to charge for a service (a loss leader), you must realize that this is a

13、conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still sensitive for price discounts and special offers. Permanently competing on price is for many companies not a very sensible approach. Price has also an irrational s

14、ide: something that is expensive must be good. Price (considerations)PriceList PriceServiceLeasing Options FinancingDiscountsQualityAllowances 4. Promotion (How) are the chosen target groups informed or educated about the organization and its products? This includes all the weapons in the marketing

15、armory advertising, selling, sales promotions, Public Relations, etc. While the other three Ps have lost much of there meaning in todays markets, Promotion has become the most important P to focus on. Promotion (considerations)PromotionAdvertisingSalesDirect SalesMessagePublic Relations Media Budget

16、4Ps & 4CsvProduct- Customer /Consumer vPrice- Customer costvPlace- ConveniencevPromotion- Communication4Ps & 4CsvFour CsvThe Four Ps is also being replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication. vThe Four Cs model is more consumer-oriented and fit

17、s better in the movement from mass marketing to niche marketing.Product- ConsumervThe product part of the Four Ps model is replaced by consumer or consumer models, shifting the focus to satisfying the consumer. Price- CostvPricing is replaced by cost, reflecting the reality of the total cost of owne

18、rship. Place- ConveniencevPlacement is replaced by the convenience function. vWith the rise of internet and hybrid models of purchasing, place is no longer as relevant as before.v Convenience takes into account the ease to buy a product, find a product, find information about a product, and several

19、other considerations. Promotion- CommunicationvFinally, the promotions feature is replaced by communication. vCommunications represents a broader focus than simply promotions. vCommunications can include advertising, public relations, personal selling, viral advertising, and any form of communicatio

20、n between the firm and the consumer.Extended Marketing MixvThere have been attempts to develop an extended marketing mix to better accommodate specific aspects of marketing.vFor example, in the 1970s, Nickels and Jolson suggested the inclusion of packaging.vIn the 1980s Kotler proposed public opinio

21、n and political power Booms & BithnervBooms and Bitner included three additional Ps to accommodate trends towards a service or knowledge based economy:vPeople all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, ma

22、nagement and consumers. vProcess procedures, mechanisms and flow of activities which lead to an exchange of value. vPhysical environment the direct sensory experience of a product or service that allows a customer to measure whether he or she has received value. Examples might include the way a cust

23、omer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is deliveredThe Marketing MixThe Marketing MixvThe tools available to a business to gain the reaction it is seeking from its

24、target market in relation to its marketing objectivesv7Ps Price, Product, Promotion, Place, People, Process, Physical EnvironmentvTraditional 4Ps extended to encompass growth of service industryPricePricevPricing StrategyvImportance of:knowing the marketelasticitykeeping an eye on rivalsImage copyri

25、ght: www.freeimages.co.ukProductProductvMethods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g.Extension strategiesSpecialised versionsNew editionsImprovements real or otherwise!Changed packagingTechnology, etc.Image

26、copyright: www.freeimages.co.ukPromotionPromotionvStrategies to make the consumer aware of the existence of a product or servicevNOT just advertisingPlacePlacevThe means by which products and services get from producer to consumer and where they can be accessed by the consumerThe more places to buy

27、the product and the easier it is made to buy it, the better for the business (and the consumer?)PeoplePeoplevPeople represent the businessThe image they present can be importantFirst contact often human what is the lasting image they provide to the customer?Extent of training and knowledge of the pr

28、oduct/service concernedMission statement how relevant?Do staff represent the desired culture of the business?ProcessProcess procedures, mechanisms and flow of activities which lead to an exchange of value.ProcessvHow do people consume services?vWhat processes do they have to go through to acquire th

29、e services?vWhere do they find the availability of the service?ContactRemindersRegistrationSubscriptionForm fillingDegree of technologyPhysical EnvironmentPhysical EnvironmentvThe ambience, mood or physical presentation of the environmentSmart/shabby?Trendy/retro/modern/old fashioned?Light/dark/brig

30、ht/subdued?Romantic/chic/loud?Clean/dirty/unkempt/neat?Music?Smell?The Marketing MixvBlend of the mix depends upon:vMarketing objectivesvType of productvTarget marketvMarket structurevRivals behaviourvGlobal issues culture/religion, etc.vMarketing positionvProduct portfolioProduct lifecycleBoston MatrixCorporate Goal Marketing StrategyMarketing MixProduct Price PlaceCustomerCostConveniencePromotion CommunicationPublic relationpoliti