7ps macdonarld

download 7ps macdonarld

of 28

Transcript of 7ps macdonarld

  • 7/28/2019 7ps macdonarld

    1/28

    1. MARKETINGMARKETING :- Marketing is the

    process throughwhich an organization can execute their

    plans andpolices into market, creating desire of product,

    flow ofgoods and services from producers to

    consumers,creating mutual value between customers

    need andbusiness objectives which ultimately helps in

    achievingthe goals of an organizations. ORThe right

    product, in the right place, at the righttime, and at the

    right price

    2. Implications of marketing Who are our existing /

    potential customers? What are their current / future

    needs? How can we satisfy these needs? Can we offer

    a product/ service that the customer would value? Can

    we communicate with our customers? Can we deliver a

    competitive product of service? Why should customers

    buy from us?

  • 7/28/2019 7ps macdonarld

    2/28

    3. The marketing concept choosing and targeting

    appropriate customers positioning your offering

    interacting with those customers controlling the

    marketing effort continuity of performance

    4. Marketing management processAnalysis/Audit -

    where are we now?Objectives - where do we want to be?

    Strategies - which way is best?Tactics - how do we get

    there?(Implementation - Getting there!)Control -

    Ensuring arrival

    5. Why planning necessary in marketing? development

    of Systematic better co- performancefuturistic thinking

    ordination of a standards for by management companys

    efforts control sharpening of better prepare for objectives

    and sudden policies developments

    http://www.slideshare.net/navin_sosimple/marketting-7-pshttp://www.slideshare.net/navin_sosimple/marketting-7-ps
  • 7/28/2019 7ps macdonarld

    3/28

    6. MARKETING MIXThe combination of marketing

    components that will maximizecustomer satisfaction and

    ensure PROFITS

    7. HISTORYThe term marketing mix was coined in an

    articlewritten by Neil Borden called The Concept of

    theMarketing Mix.The marketer, E. Jerome McCarthy,

    proposed afour Ps classification in 1960Robert F.

    Lauterborn proposed a four Csclassification in 1993

    8. MARKETING MIX- Four Ps- By E. Jerome

    McCarthy

    9. 4 Ps & 4 CsProduct- Customer /ConsumerPrice-

    Customer costPlace- ConveniencePromotion-

    Communication

    10. EXTENDED MARKETING MIX By Booms and

    Bitner

    http://www.slideshare.net/navin_sosimple/marketting-7-pshttp://www.slideshare.net/navin_sosimple/marketting-7-pshttp://www.slideshare.net/navin_sosimple/marketting-7-pshttp://www.slideshare.net/navin_sosimple/marketting-7-ps
  • 7/28/2019 7ps macdonarld

    4/28

    11. 7Ps & 7Cs The 7 Ps The 7 Cs Organization

    Customer Facing Facing PRODUCT = CUSTOMER/

    CONSUMER PRICE = COST PLACE =

    CONVENIENCE PROMOTION =

    COMMUNICATION PEOPLE = CARING PROCESS =

    CO-ORDINATEDPHIYSICAL EVIDENCE =

    CONFIRMATION

    12. PRODUCTA business offers goods and services to

    itscustomer. Choice of product Packaging Services to

    support product Product development strategy

    Positioning Quality Business image

    13. PRODUCT What product/service will you provide?

    What choice of product/service will you make available

    to customers? How will you package or display your

    product? Will you provide additional services such as

    repair with your product? What warranties or guarantees

    http://www.slideshare.net/navin_sosimple/marketting-7-pshttp://www.slideshare.net/navin_sosimple/marketting-7-pshttp://www.slideshare.net/navin_sosimple/marketting-7-pshttp://www.slideshare.net/navin_sosimple/marketting-7-ps
  • 7/28/2019 7ps macdonarld

    5/28

    can a customer be assured of when purchasing your

    product/service? What level of quality do you plan to

    offer with your product/service? How do you want

    customers to view your business? How much research

    and development will be needed to stay competitive?

    14. Product--Choice and Packaging Choice of products

    for your business o Product consistency is vital. o Do all

    of the products/services fit together? Packaging your

    products o Packaging choices affect the appearance and

    appeal of the product. o Packaging impacts the display

    and storage of the product.

    15. Product--Services Do you provide services to

    support the products: o Some products such as

    computers, appliances, vehicles, and many other

    technical products require special services to maintain

    http://www.slideshare.net/navin_sosimple/marketting-7-pshttp://www.slideshare.net/navin_sosimple/marketting-7-ps
  • 7/28/2019 7ps macdonarld

    6/28

    customer satisfaction. o Do you provide repair services

    for your product or just sell the product?

    16. Product development strategy Product developmet

    strategy by Ansoff Market penetration Product

    development Market development Diversification

    17. Product development strategy..Market penetration

    This involves increasing market share withinexisting

    market segments. This can be achieved by selling

    moreproducts/services to established customers or by

    finding newcustomers within existing markets. Product

    development This involves developing new products

    forexisting markets. Product development involves

    thinking about hownew products can meet customer

    needs more closely and outperformthe products of

    competitors.Market development This strategy entails

    finding new markets forexisting products. Market

  • 7/28/2019 7ps macdonarld

    7/28

    research and further segmentation ofmarkets helps to

    identify new groups of customers.Diversification This

    involves moving new products into newmarkets at the

    same time. It is the most risky strategy. The more

    anorganisation moves away from what it has done in the

    past the moreuncertainties are created.

    18. Product--Warranties Warranties o Assurance by the

    seller that the product is as it is represented to be or that

    it will be as it is promised to be. o A certain level of

    performance is expected from all products; however,

    some products may not meet customer expectations. o

    What steps will the business take to back up the

    products and ensure customer satisfaction? o Customer

    satisfaction is important for return customers.

    19. Product--Quality Level of quality of the products or

    the business relates to customers perception of product

  • 7/28/2019 7ps macdonarld

    8/28

    value. o If the customer perceives higher quality, a

    higher price will be accepted. o Interpretation of

    customer perceptions must be accurate to succeed with

    higher prices.

    20. ProductBusiness Image Business image is the

    mental picture customers have of the business. How do

    you want customers to view your business? o Discount

    (Wal-Mart): Image is built on low prices everyday. o

    Popular-priced (Shopper stops, Marshalls): Image is

    built on the concept of quality designer brand

    merchandise at lower prices. o Exclusive (UB City):

    Image is built on the superiority of the products carried

    by the business. o Specialty (Victorias Secret): Image is

    built on the single brand or single type of merchandise

    carried.

  • 7/28/2019 7ps macdonarld

    9/28

    21. ProductResearch and Development Product

    research and development is necessary in order to remain

    competitive. An organization must consistently strive to

    improve products and services for customers and to keep

    up with trends, technology and customer spending

    patterns.

    22. ProductPositioning Positioning of a business is

    the perceived standing of a business or its product in the

    minds of its customers as compared to the competition.

    This perception will help the customers decide where to

    spend their money.

    23. PRICE The amount of money abusiness charges

    customers for its goods and services

    24. Economy PricingThis is a no frills lowprice. The cost

    ofmarketing andmanufacture are keptat a minimum.

  • 7/28/2019 7ps macdonarld

    10/28

    25. Penetration PricingTechnique of setting a relatively

    low initial entry price,often lower than the eventual

    market price, to attract newcustomers. The strategy

    works on the expectation that thecustomer will switch to

    the new brand because of thelower price. This pricing

    strategy increase market share orsales volume, rather

    than to make profit in short term.

    26. Price SkimmingThis pricing strategy in which a

    marketer sets arelatively high price for a product or

    service at first,then lower the price over time. It is a

    temporal versionof price discrimination. It allows the

    firm to recover itssunk costs quickly before competition

    steps in andlower the market price. For Eg:- MP3 player,

    Appleiphone 5

    27. Premium PricingPremium Pricing means high price

    andhigh quality, such as diamonds, watchesand cars.

  • 7/28/2019 7ps macdonarld

    11/28

    28. PLACEProviding the product at a place which is

    convenient for consumer toaccess. Place is concerned

    with various methods of transporting andstoring goods,

    and then making them available for the customer.Getting

    the right product to the right place at the right time

    involvesthe distribution system. The choice of

    distribution method willdepend on a variety of

    circumstances. It will be more convenient forsome

    manufacturers to sell to wholesalers who then sell to

    retailers,while others will prefer to sell directly to

    retailers or customers.

    29. Place---Channels of DistributionChannels of

    distribution from the manufacturer to the customer o The

    usual channel of distribution goes from manufacturer to

    wholesaler to retailer o How will your product get from

    the manufacturer to your customer? To manufacturer To

    wholeseller To retailer t

  • 7/28/2019 7ps macdonarld

    12/28

    30. Place---Exclusive RightsSo what is the difference

    between sellingproduct in the big shops and luxury

    shops?

    31. So which one is better for you to buy Rolex?

    32. Place---TransportationTransportation What carrier

    will be chosen to move the products? Remember, the

    more people that touch the product between the

    manufacturer and the consumer, the higher the cost of the

    product will be to the final customer. Common carrier:

    Provides transportation services for any business in its

    operating area for a fee. Examples include: UPS

    Federal Express

    33. PROMOTIONPromotion is all about

    communication.Why because promotion is the way in

    abusiness makes its products known to thecustomers

  • 7/28/2019 7ps macdonarld

    13/28

    34. PROMOTION. Promotion

    PersonalAdvertisement Hoardings Media Publicity

    Internet selling

    35. Promotion---Types of PromotionAdvertising - Non-

    personal promotional messages paid for by an identified

    sponsor.Personal Selling - Communication between a

    salesperson and a customer intended to influence the

    customers buying decision.Publicity - Information about

    a business or its products distributed through the media

    at no cost to the business.

    36. PEOPLEAll the people directly or indirectly involved

    inthe consumption of service are an important partof an

    extended marketing mix. Knowledgeworker, employees,

    management and otherconsumer often add significant

    value to the totalproduct or service offering

  • 7/28/2019 7ps macdonarld

    14/28

    37. HigherPeople Include... managers Middle managers

    Lower managersOthers like: Technicians Dealers Other

    Employees (BPO Employees)

    38. PeoplePeople are important because: Providing a

    service, rather than selling a product. Quality of

    personal relationships between company and clients

    becomes vital. New staff needs thorough training and

    constant monitoring. Staffing costs the highest cost

    Recruiting specialist staff time consuming and

    expensive. Strategies and tactics for recruiting, training

    and safeguarding relationships.

    39. PEOPLEEg:-People - The employees in McDonalds

    have a standard uniform and McDonalds specially

    focuses on friendly and prompt service to its customers

    from their employees.

  • 7/28/2019 7ps macdonarld

    15/28

    40. PROCESSProcess is associated with customerservice

    are a number of processesinvolved in making marketing

    effectivein an organisation e.g. processes forhandling

    customer complaints, processesfor identifying customer

    needs andrequirements, processes for handlingorder etc

    41. Process How do people consume services? What

    processes do they have to go through to acquire the

    services? Where do they find the availability of the

    service? Contact Reminders Registration

    Subscription Form filling Degree of technology

    42. PROCESS.Eg:-Process - The food manufacturing

    process at McDonalds is completely transparent (the

    whole process is visible to the customers).

    43. PHYSICAL EVIDENCEPhysical evidence: This

    refers to the way yourproduct, service, and everything

    about yourcompany, appears from the outside.

  • 7/28/2019 7ps macdonarld

    16/28

    Decisionsneed to be made about the size, shape,

    color,material, and label of the packaging. This shouldbe

    customer tested and updated when needed. Itshould fall

    in line with your other product offeringsas well.

    Packaging involves the visual layout,practical setup, and

    when needed for products,clear and precise installation

    instructions.

    44. PHYSICAL EVIDENCEEg:-Physical Evidence -

    McDonalds focuses onclean and hygienic interiors of is

    outlets and atthe same time the interiors are attractive

    and thefast food joint maintains a proper etiquette at

    itsjoints.

    1. 4980467-60515500-36830-1498600020001511302000213360MARKETING

    MIXMade by: Gurjeit Singh6900096000MARKETING MIXMade by: Gurjeit

    Singh730005519420centerProduct, Price, Place, Promotion, People, Process,

    Physical Evidence2420096000Product, Price, Place, Promotion, People, Process,

    Physical Evidence
    The marketing mix principles are used by business as

    tools to assist them in pursuing their objectives. These are controllable variables,

    carefully managed and meet the needs of the defined target group. The

    http://www.slideshare.net/gurjeit/7-ps-of-marketing-service-marketing-mixhttp://www.slideshare.net/gurjeit/7-ps-of-marketing-service-marketing-mix
  • 7/28/2019 7ps macdonarld

    17/28

    marketing mix elements are the basic, tactical components of a marketing plan.

    The marketing mix is the organisations planning process and consists of

    analysing the defined:
    Product strategies: How will you design, package

    and add value to the product?Price strategies: What pricing strategy is

    appropriate to use?Place strategies: Where will the firm locate?Promotion

    strategies: How will the firm promote its product?Traditionally, these

    considerations were known as 4Ps Product, Price, Place, and Promotion. Also,

    known as marketing mix.
    As marketing became a more sophisticated

    discipline, a 5th P was added People. Recently 2 further Ps were added,

    mainly for service industries Process and Physical Evidence. These

    considerations are now known as the 7Ps of marketing, sometimes referred as

    service marketing mix.
    Product
    Product is not simply the tangible,

    physical entity that they may be buying or selling. The nature of a product

    consists of the CORE product, the ACTUAL product, and finally the AUGMENTED

    product. These are known as the 'Three Levels of a Product.'
    The CORE

    product is the BENEFIT of the product that makes it valuable to you. Therefore,

    with the car example, the benefit is convenience i.e. the ease at which you can

    go where you like, when you want to. Another core benefit is speed since you

    can travel around relatively quickly.
    The ACTUAL product is the tangible,

    physical product. You can get some use out of it. Again with the car example, it

    is the vehicle that you test drive, buy and then collect.
    The AUGMENTED

    product consists of lots of added value, for which you may or may not pay a

    premium. Therefore, when you buy a car, part of the augmented product would

    be the warranty, the customer service support offered by the car's manufacture,

    and any after-sales service.
    The Product Life Cycle (PLC)
    The Product

    Life Cycle (PLC) is based upon the biological life cycle. After a period of

    development it is introduced or launched into the market; it gains more and

  • 7/28/2019 7ps macdonarld

    18/28

    more customers as it grows; eventually the market stabilises and the product

    becomes mature; then after a period of time the product is overtaken by

    development and the introduction of superior competitors, it goes into decline

    and is eventually withdrawn. However, most products fail in the introduction

    phase. Others have very cyclical maturity phases where declines see the product

    promoted to regain customers.
    Strategies for the differing stages of the

    Product Life Cycle.
    Introduction: The need for immediate profit is not a

    pressure. The product is promoted to create awareness. If the product has no or

    few competitors, a skimming price strategy is employed. Limited numbers of

    product are available in few channels of distribution.
    Growth: Competitors

    are attracted into the market with very similar offerings. Products become more

    profitable and companies form alliances, joint ventures and take each other over.

    Advertising spend is high and focuses upon building brand. Market share tends

    to stabilise.
    Maturity: Those products that survive the earlier stages tend

    to spend longest in this phase. Sales grow at a decreasing rate and then

    stabilise. Producers attempt to differentiate products and brands are key to this.

    Price wars and intense competition occur. At this point the market reaches

    saturation. Producers begin to leave the market due to poor margins. Promotion

    becomes more widespread and use a greater variety of media.
    Decline: At

    this point there is a downturn in the market. For example more innovative

    products are introduced or consumer tastes have changed. There is intense

    price-cutting and many more products are withdrawn from the market. Profits

    can be improved by reducing marketing spend and cost cutting.Price
    Pricing is difficult and must reflect supply and demand relationship.

    Pricing a product too high or too low could mean a loss of sales for the

    organisation. Pricing should take into account the following factors:
    Fixed

    and variable costs.CompetitionCompany objectivesProposed positioning

  • 7/28/2019 7ps macdonarld

    19/28

    strategies.Target group and willingness to pay.Premium pricing, penetration

    pricing, economy pricing, and price skimming are the four main pricing

    policies/strategies.
    Premium Pricing: Use a high price where there is

    uniqueness about the product or service. This approach is used where a

    substantial competitive advantage exists. Such high prices are charge for

    luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights.Penetration Pricing: The price charged for products and services is set

    artificially low in order to gain market share. Once this is achieved, the price is

    increased. This approach was used by France Telecom and Sky TV.Economy Pricing: This is a no frills low price. The cost of marketing and

    manufacture are kept at a minimum. Supermarkets often have economy brands

    for soups, spaghetti, etc.
    Price Skimming: Charge a high price because you

    have a substantial competitive advantage. However, the advantage is not

    sustainable. The high price tends to attract new competitors into the market, and

    the price inevitably falls due to increased supply. Manufacturers of digital

    watches used a skimming approach in the 1970s. Once other manufacturers

    were tempted into the market and the watches were produced at a lower unit

    cost, other marketing strategies and pricing approaches are implemented.Other important approaches to pricing are:
    Psychological Pricing: This

    approach is used when the marketer wants the consumer to respond on an

    emotional, rather than rational basis. For example 'price point perspective' 99

    cents not one dollar at Dollar Store.
    Product Line Pricing: Where there is a

    range of product or services the pricing reflect the benefits of parts of the

    range.
    Optional Product Pricing: Companies will attempt to increase the

    amount customer spend once they start to buy. Optional 'extras' increase the

    overall price of the product or service. For example airlines will charge for

    optional extras such as guaranteeing a window seat or reserving a row of seats

  • 7/28/2019 7ps macdonarld

    20/28

    next to each other.
    Captive Product Pricing: Where products have

    complements, companies will charge a premium price where the consumer is

    captured. For example a razor manufacturer will charge a low price and recoup

    its margin (and more) from the sale of the only design of blades which fit the

    razor.
    Product Bundle Pricing: Here sellers combine several products in the

    same package. This also serves to move old stock. Videos and CDs are often sold

    using the bundle approach.
    Promotional Pricing: Pricing to promote a

    product is a very common application. There are many examples of promotional

    pricing including approaches such as BOGOF (Buy One Get One Free).Geographical Pricing: Geographical pricing is evident where there are

    variations in price in different parts of the world. For example rarity value, or

    where shipping costs increase price.
    Value Pricing: This approach is used

    where external factors such as recession or increased competition force

    companies to provide 'value' products and services to retain sales e.g. value

    meals at McDonalds.
    Place
    Place is also known as channel,

    distribution, or intermediary. It is the mechanism through which goods and/or

    services are moved from the manufacturer/ service provider to the user or

    consumer.
    Distribution Methods
    Indirect Distribution: It involves

    distributing your product by the use of an intermediary for example a

    manufacturer selling to a wholesaler and then on to the retailer.
    Direct

    Distribution: It involves distributing direct from a manufacturer to the consumer

    For example Dell Computers providing directly to its target customers.
    The

    advantage of direct distribution is that it gives a manufacturer complete control

    over their product.
    Indirect DistributionDirect DistributionDistribution Strategies
    Depending on the type of product being

    distributed there are three common distribution strategies available:Intensive distribution: Used commonly to distribute low priced or impulse

  • 7/28/2019 7ps macdonarld

    21/28

    purchase products e.g. chocolates, soft drinks. Exclusive distribution: Involves

    limiting distribution to a single outlet. The product is usually highly priced, and

    requires the intermediary to place much detail in its sell. An example of would be

    the sale of vehicles through exclusive dealers.Selective Distribution: A small

    number of retail outlets are chosen to distribute the product. Selective

    distribution is common with products such as computers, televisions household

    appliances, where consumers are willing to shop around and where

    manufacturers want a large geographical spread.Types of Channel

    Intermediaries
    There are many types of intermediaries such as

    wholesalers, agents, retailers, the Internet, overseas distributors, direct

    marketing (from manufacturer to user without an intermediary), and many

    others.
    WholesalersThey break down 'bulk' into smaller packages for resale

    by a retailer.They buy from producers and resell to retailers. They take

    ownership or 'title' to goods whereas agents do not (see below).They provide

    storage facilities. For example, cheese manufacturers seldom wait for their

    product to mature. They sell on to a wholesaler that will store it and eventually

    resell to a retailer.Wholesalers offer reduce the physical contact cost between

    the producer and consumer e.g. customer service costs, or sales force costs.A

    wholesaler will often take on the some of the marketing responsibilities. Many

    produce their own brochures and use their own telesales

    operations.AgentsAgents are mainly used in international markets.An agent will

    typically secure an order for a producer and will take a commission. They do not

    tend to take title to the goods. This means that capital is not tied up in goods.

    However, a 'stockist agent' will hold consignment stock (i.e. will store the stock,

    but the title will remain with the producer. This approach is used where goods

    need to get into a market soon after the order is placed e.g. foodstuffs).Agents

    can be very expensive to train. They are difficult to keep control of due to the

  • 7/28/2019 7ps macdonarld

    22/28

    physical distances involved. They are difficult to motivate.RetailersRetailers will

    have a much stronger personal relationship with the consumer.The retailer will

    hold several other brands and products. A consumer will expect to be exposed to

    many products.Retailers will often offer credit to the customer e.g. electrical

    wholesalers, or travel agents.Products and services are promoted and

    merchandised by the retailer.The retailer will give the final selling price to the

    product.Retailers often have a strong 'brand' themselves e.g. Wall-Mart in the

    USA.InternetThe Internet has a geographically disperse market.The main benefit

    of the Internet is that niche products reach a wider audience e.g. Scottish

    Salmon direct from an Inverness fishery.There are low barriers low barriers to

    entry as set up costs are low.Use e-commerce technology (for payment,

    shopping software, etc)There is a paradigm shift in commerce and consumption

    which benefits distribution via the InternetPromotion
    Promotion mix is the

    communication mix, which deals with the personal and impersonal persuasive

    communication about the product or service of the manufacturer. Personal

    communication is the face to face meeting between the sales force of the

    company and the clientele. Impersonal communications include advertising,

    sales promotion and public relations.
    The elements of the promotions mix

    are:
    Personal Selling: Personal Selling is an effective way to manage

    personal customer relationships. The sales person acts on behalf of the

    organization. They tend to be well trained in the approaches and techniques of

    personal selling. However, sales people are very expensive and should only be

    used where there is a genuine return on investment. For example, salesmen are

    often used to sell cars or home improvements where the margin is high.Sales

    Promotion: Sales promotion tend to be thought of as being all promotions apart

    from advertising, personal selling, and public relations. For example the BOGOF

    promotion, or Buy One Get One Free. Others include couponing, money-off

  • 7/28/2019 7ps macdonarld

    23/28

    promotions, competitions, free accessories (such as free blades with a new

    razor), introductory offers (such as buy digital TV and get free installation), and

    so on. Each sales promotion should be carefully costed and compared with the

    next best alternative.Public Relations: Public Relations is defined as 'the

    deliberate, planned and sustained effort to establish and maintain mutual

    understanding between an organization and its publics' (Institute of Public

    Relations). It is relatively cheap, but certainly not cheap. Successful strategies

    tend to be long-term and plan for all eventualities. All airlines exploit PR; just

    watch what happens when there is a disaster. The pre-planned PR machine clicks

    in very quickly with a very effective rehearsed plan.Direct Mail: Direct mail is

    very highly focussed upon targeting consumers based upon a database. As with

    all marketing, the potential consumer is 'defined' based upon a series of

    attributes and similarities. Creative agencies work with marketers to design a

    highly focussed communication in the form of a mailing. The mail is sent out to

    the potential consumers and responses are carefully monitored. For example, if

    you were marketing medical text books, you would use a database of doctors'

    surgeries as the basis of your mail shot.Trade Fairs and Exhibitions: Such

    approaches are very good for making new contacts and renewing old ones.

    Companies will seldom sell much at such events. The purpose is to increase

    awareness and to encourage trial. They offer the opportunity for companies to

    meet with both the trade and the consumer. Expo has recently finished on

    Diwali, despite a recent decline in interest in such events.Advertising:

    Advertising is a 'paid for' communication. It is used to develop attitudes, create

    awareness, and transmit information in order to gain a response from the target

    market. There are many advertising 'media' such as newspapers (local, national,

    free, trade), magazines and journals, television (local, national, terrestrial,

    satellite) cinema, outdoor advertising (such as posters, bus sides).Sponsorship:

  • 7/28/2019 7ps macdonarld

    24/28

    Sponsorship is where an organization pays to be associated with a particular

    event, cause or image. Companies will sponsor sports events such as the

    Olympics or Formula One. The attributes of the event are then associated with

    the sponsoring organization.Communication Model
    The message from the

    marketer follows the 'communications process'. The message is decoded and the

    target consumer interprets the message (Receiver). He or she might visit a

    dealership or seek further information from a web site (Response). The consumer

    might buy, express an interest, or dislike (Feedback). This information will inform

    future elements of an integrated promotional campaign. Perhaps a direct mail

    campaign would push the consumer to the point of purchase. Noise represents

    the thousands of marketing communications that a consumer is exposed to

    everyday, all competing for attention.
    Message and Media StrategyMessage: An effective communication campaign should comprise of a well

    thought out message strategy. What message are you trying to put across to

    your target audience? How will you deliver that message? Will it be through the

    appropriate use of branding? Logos or slogan design? The message should

    reinforce the benefit of the product and should help the company in developing

    the positioning strategy of the product.
    Media Strategy: It refers to how the

    organisation is going to deliver their message. What aspects of the promotional

    mix will the company use to deliver their message strategy. Where will they

    promote? Clearly the company must take into account the readership and

    general behaviour of their target audience before they select their media

    strategy. What newspapers do their target market read? What TV programmes

    do they watch? Effective targeting of their media campaign could save the

    company on valuable financial resources.
    Push and Pull StrategyPush Strategy: Where the manufacturer concentrates some of their marketing

    effort on promoting their product to retailers to convince them to stock the

  • 7/28/2019 7ps macdonarld

    25/28

    product. A combination of promotional mix strategies are used at this stage

    aimed at the retailer including personal selling, and direct mail. The product is

    pushed onto the retailer, hence the name.
    Pull Strategy: Based around the

    manufacturer promoting their product amongst the target market to create

    demand. Consumers pull the product through the distribution channel forcing the

    wholesaler and retailer to stock it, hence the name pull strategy. Organisations

    tend to use both push and pull strategies to create demand from retailers and

    consumers.
    Promotion through Product Life Cycle (PLC)
    Stages and

    promotion strategies employed.
    Introduction: When a product is new the

    organisations objective will be to inform the target audience of its entry.

    Television, radio, magazine, coupons etc. may be used to push the product

    through the introduction stage of the lifecycle. Push and Pull Strategies will be

    used at this crucial stage.
    Growth: As the product becomes accepted by

    the target market the organisation at this stage of the lifecycle the organisation

    works on the strategy of further increasing brand awareness to encourage

    loyalty.
    Maturity: At this stage with increased competition the organisation,

    take persuasive tactics to encourage the consumers to purchase their product

    over their rivals. Any differential advantage will be clearly communicated to the

    target audience to inform of their benefit over their competitors.
    Decline:

    As the product reaches the decline stage, the organisation will use the strategy

    of reminding people of the product to slow the inevitable.
    PeoplePeople 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 think of a situation where the personal service offered

    by individuals has made or tainted a tour, vacation or restaurant meal.

    Remember, people buy from people that they like, so the attitude, skills and

  • 7/28/2019 7ps macdonarld

    26/28

    appearance of all staff need to be first class. Here are some ways in which

    people add value to an experience, as part of the marketing mix - training,

    personal selling and customer service.
    Training: All customer-facing

    personnel need to be trained and developed to maintain a high quality of

    personal service. Training should begin as soon as the individual starts working

    for an organization during an induction. The induction will involve the person in

    the organization's culture for the first time, as well as briefing him or her on day-

    to-day policies and procedures. At this very early stage, the training needs of the

    individual are identified. A training and development plan is constructed for the

    individual, which sets out personal goals that can be linked into future

    appraisals. In practice most training is either 'on-the-job' or 'off-the-job.' On-the-

    job training involves training whilst the job is being performed e.g. training of bar

    staff. Off-the-job training sees learning taking place at a college, training centre

    or conference facility. Attention needs to be paid to Continuing Professional

    Development (CPD) where employees see their professional learning as a lifelong

    process of training and development.
    Personal Selling: There are different

    kinds of salesperson. There is the product delivery salesperson. His or her main

    task is to deliver the product, and selling is of less importance e.g. fast food, or

    mail. The second type is the order taker, and these may be either 'internal' or

    'external.' The internal sales person would take an order by telephone, e-mail or

    over a counter. The external sales person would be working in the field. In both

    cases little selling is done. The next sort of sales person is the missionary. Here,

    as with those missionaries that promote faith, the salesperson builds goodwill

    with customers with the longer-term aim of generating orders. Again, actually

    closing the sale is not of great importance at this early stage. The forth type is

    the technical salesperson, e.g. a technical sales engineer. Their in-depth

    knowledge supports them as they advise customers on the best purchase for

  • 7/28/2019 7ps macdonarld

    27/28

    their needs. Finally, there are creative sellers. Creative sellers work to persuade

    buyers to give them an order. This is tough selling, and tends to o ffer the

    biggest incentives. The skill is identifying the needs of a customer and

    persuading them that they need to satisfy their previously unidentified need by

    giving an order.
    Customer Service: Customer services teams support many

    products, services and experiences. Customer services provided expertise (e.g.

    on the selection of financial services), technical support (e.g. offering advice on

    IT and software) and coordinate the customer interface (e.g. controlling service

    engineers, or communicating with a salesman). The disposition and attitude of

    such people is vitally important to a company. The way in which a complaint is

    handled can mean the difference between retaining or losing a customer, or

    improving or ruining a company's reputation. Today, customer service can be

    face-to-face, over the telephone or using the Internet. People tend to buy from

    people that they like, and so effective customer service is vital. Customer

    services can add value by offering customers technical support and expertise

    and advice.
    Process
    Process is an element of service that sees the

    customer experiencing an organisation's offering. Its best viewed as something

    that your customer participates in at different points in time. Here are some

    examples to help your build a picture of marketing process, from the customer's

    point of view.
    Going on a cruise - from the moment that you arrive at the

    dockside, you are greeted; your baggage is taken to your room. You have two

    weeks of services from restaurants and evening entertainment, to casinos and

    shopping. Finally, you arrive at your destination, and your baggage is delivered

    to you. This is a highly focused marketing process.
    Booking a flight on the

    Internet - the process begins with you visiting an airline's website. You enter

    details of your flights and book them. Your ticket/booking reference arrive by e-

    mail or post. You catch your flight on time, and arrive refreshed at your

  • 7/28/2019 7ps macdonarld

    28/28

    destination. This is all part of the marketing process.
    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 serves or products

    are extended and marked 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, throughputs and outputs (or outcomes).

    Marketing adds value to each of the stages.
    Physical EvidencePhysical evidence is the material part of a service. There are no physical

    attributes to a service, so a consumer tends to rely on material cues. There are

    many examples of physical evidence, including some of the following:PackagingInternet/web pagesPaperwork (such as invoices, tickets and

    despatch notes)BrochuresFurnishingsSignage (such as those on aircraft and

    vehicles)UniformsBusiness cardsThe building itself (such as prestigious offices or

    scenic headquarters)Mailboxes and many othersA sporting event is packed full of

    physical evidence. Your tickets have your team's logos printed on them, and

    players are wearing uniforms. The stadium itself could be impressive and have

    an electrifying atmosphere. You travelled there and parked quickly nearby, and

    your seats are comfortable and close to restrooms and store. All you need now is

    for your team to win!
    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. State Bank of

    India).