Marketing Mix and Sale

promotionBehshad Mehrabi

Agenda

Marketing management basic concepts

How to build Marketing Plan

Simple Business System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information

What is Marketing…??Selling?Advertising?Promotions?Making products available in stores?Maintaining inventories?

All of the above, plus much more!

Marketing = ?

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals

American Marketing Association

Who is a Customer ??

Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption

that satisfies a want or a need

CUSTOMER IS . . . . .

Customer –

CUSTOMER has needs, wants, demands and desires

Understanding these needs is starting point of the entire marketing

Market Segmentation

nations, states, countries, or even neighborhoodsGeographic

Demographic

Psychographic

behaviorist

age, sex, family size, education,income, social and race

personality and/or lifestyle like activities, interests, and opinions

degree of use (heavy versus light), and/or brand loyalty

Scope – What do we market Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts

Anything that is offered to the market for attention, acquisition, use or consumption that

satisfies a want or a need

Product is . . . . .

Types of Products

ConsumerProducts

IndustrialProducts

PRODUCTS

Services

Push vs. pull strategy

Producer Wholesaler Retailer Consumer

Producer Wholesaler Retailer Consumer

PUSH STRATEGY

PULL STRATEGY

Product flow Promotion effort

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Product flow

Product lifecycleThe product lifecycle looks at the

sales of a product over timeLaunch – high expenditure on

promotion and product development, low sales.

Growth – sales increase and product should break-even

Maturity – sales stabilise, less expenditure on promotion needed, revenue & profit should be high

Decline – sales decline, extension strategies can be adopted or the product withdrawn

The BCG Matrix

The 4 Ps & 4Cs

MarketingMix

Product

Price Promotion

Place

CustomerSolution

CustomerCost

Communication

Convenience

Marketing Mix of GM

Product‘Product’ refers to the functions and

features of a good or serviceShould satisfy the needs of the customer‘Product’ also includes a range of factors

such as packaging quality warranties after-sales service branding

Extension strategies

Extension strategies should maintain or increase sales. They include:

Modifying the productReducing the priceAdding a featurePromoting to a

different market sector

Pricing Strategies

Price leaders and takers

Price leader – businesses that dominate the market can often dictate the price charged for a product. Other businesses follow this lead.

Price taker – businesses have to charge the market price. This is often the case where there are many small firms competing against each other.

Place

Products should be conveniently available for customers to buy

‘Places’ include:StoresMail orderTelesalesInternet

The use of e-commerce

(promoting and selling on the internet) has

grown massively over the last few years

Channels of distribution

Manufacturers

Wholesaler

Retailer

Consumer

What is a promotion?

Promotion is the element in an organisation’s marketing mix that serves to inform, persuade and remind the market about the organisation and/or its products.

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Goals and Tasks of Promotion

Informing Reminding

Persuading

TargetAudience

Goals and Tasks of Promotion

Informing Reminding

Persuading

TargetAudience

PLC Stages:Introduction Early Growth

PLC Stages:Growth Maturity

PLC Stages:Maturity

The Promotional Mix

Combination of promotiontools used to reach the target market and fulfill the organization’s overall goals. Advertising Public Relations Sales Promotion Personal Selling

PromotionalMix

The Promotional Mix

Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

Advertising

Advertising MediaTraditional Advertising Media

NewAdvertising

Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Banner ads Viral marketing E- mail Interactive video

AdvertisingAdvantages Disadvantages

Reach large number of people

Can be micro-targeted

Total cost is high

National reach is expensive for small companies

Public Relations

The marketing function thatevaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

Public

Relations

The Function of Public Relations

Maintain a positive image Educate the public about the company’s

objectives Introduce new products Support the sales effort Generate favorable publicity

Sales Promotion

Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.

Sales

Promotion

Sales Promotion

consumer

Trade Customers

sampling

Contests

Premiums

Trade Shows

price deals

Coupons

Personal Selling

Planned presentation to one or more prospective buyers for the purpose of making a sale.

Personal

Selling

Personal Selling

Traditional Selling

Relationship Selling

Agenda

Marketing management basic concepts

How to build Marketing Plan

Strategic Marketing management

Strategic marketing management is concerned with how we will create value for the customer

Asks two main questions What is the organization’s main activity at a

particular time? – Customer Value What are its primary goals and how will these be

achieved? – how will this value be delivered

Marketing Plans

ANALYSISOBJECTIVESSTRATEGIESTACTICSCONTROLS

Factors Influencing Company’s Marketing Strategy

Strategic Planning

Strategic Planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.

Also called Strategic Management Process All organizations have this Can be Formal or Informal

Business Strategic-Planning Process

External environment

(Opportunity &

Threat analysis)

Internal Environment

(Strength/ Weakness analysis)

Goal FormulationBusiness Mission

The Marketing Process

Business Mission Stateme

nt

Objectives

Situation or SWOT Analysis

Implementation Evaluation,

Control

Target Market Strategy

Marketing Strategy

Product

Promotion

Place/Distribution

Price

Marketing Mix

Thank you!