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Advertising i marketing

Jan 20, 2015

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  • 1. ADVANCED ADVERTISINGMarketing

2. WHAT EXACTLY IS MARKETING? 3. MARKETING Marketing consists of the strategies and tactics, used to identify, create and maintain satisfying relationships withcustomers that result in value for both the customer 4. DISSECTING THE DEFINITION Strategies and tacticsStrategies the direction marketing efforts takeover a period of timeTactics actionable steps or decisions made tofollow the strategies 5. Satisfying relationships Provide products andservices that customers want and make thecustomers feel that they are partner in thetransaction, rather than just a source of revenue. Identify, create and maintain Identify thecustomers, create avenues to build relationship withcustomers, and take steps to keep customerssatisfied and happy. 6. Value for both customer and marketer both thecustomer and marketer gain benefit, not necessarilymonetary. 7. ROLE OF MARKETING Developing products that satisfy needs andenhance societys quality of life. Creating a competitive environment that helpslower product prices. Developing product distribution system to provideproduct to a large number of customers and manygeographic locations Building demand for products that requireorganizations to expand labor force 8. MARKETING MIX A planned mix of the controllable elements of theproducts marketing plan. They are adjusted until the right combination of theelements is found to serve the needs of theconsumer and generating income for theorganization 9. ELEMENTS OF THE MARKETING MIXProduct Promotio MarketingPricen mix Place 10. PRODUCT The actual goods or services made for consumersaccording to their needs and requirements. Supporting elements like warranties andguarantees are also included in Product. Every product goes through a cycle called productlife cycle. At each stage different strategies areused. 11. PRODUCT LIFE CYCLE Introduction Growth Maturity Decline Withdrawl 12. PLC - INTRODUCTION The product is introduced in the market. No pressure of immediate profit. Awareness for product is created. Generally no competitors at this stage. 13. PLC - GROWTH Competitors enter the market with similar products. Products become profitable. Advertising spend is high. Companies focus on brand building Market share tends to stabilize. 14. PLC - MATURITY Sales grow at a decreasing rate and then stabilize. Companies attempt to differentiate products usingbranding. Price wars and intense competition occurs. Market becomes saturated. Some producers leave the market due to smallprofit margins. Promotion is widespread and media usage is high. 15. PLC - DECLINE More innovative products have entered the market. Consumers tastes have changed. Intense price cutting Marketing spend is decreased. 16. PLC - WITHDRAWL Products are finally removed from the market,producers move on to other businesses. 17. ELEMENTS OF THE MARKETING MIXProduct Promotio MarketingPricen mix Place 18. PRICEThe process of setting a price for a product, including all kinds of incurred costs like production cost, manufacturing cost, storage cost, discounts tobe offered etc. 19. PRICING STRATEGIES Four basic strategies Premium pricing Penetration Pricing Economy Pricing Price Skimming 20. PREMIUM PRICING Use a higher price where there is a uniquenessabout the product or service. Used when a substantial competitive advantageexists. Such prices are charged for luxuries. 21. PENETRATION PRICING The price charged for products and services is setartificially low in order to gain market share. Once it is achieved , the price is increased. E.g. Habeeb masala used low introductory prices . 22. ECONOMY PRICING A no frills low price. The cost of manufacturing and marketing are keptat a minimum. 23. PRICE SKIMMING Charge a high price because you have asubstantial competitive advantage. This high price tends to attract new competitors intothe market. As a result price of the product falls due toincreased prices E.g telecom services 24. OTHER PRICING STRATEGIES Psychological pricing Product line pricing Optional product pricing Captive product pricing Product bundle pricing Promotional pricing Geographical pricing Value pricing 25. Psychological pricing Used when marketer wants the consumer to respond on anemotional basis rather than a rational basis. E.g. 99 rupees only as compared to Rs.100 Rs. 399 instead of Rs.400 Product line pricing When there is a range of services the pricing reflects thebenefits of parts of the range. E.g hair cut Rs. 300, protein treatment Rs. 400, wholepackage Rs. 700 26. Optional product pricing Companies will start to increase the amount the customerspends once they start to buy, by offering them the optionalbut tempting extras. E.g extra cheese for Rs.50 on a Rs.1100 pizza Captive product pricing The basic product is charged low. The accessories/refills/reusable parts are priced using premium pricing strategy E.g. a different charger for Samsung cellphones. Product bundle pricing Sellers combine several products in the same package. Usually used to move old stock. 27. Promotional pricing Price used to promote a product. E.g. buy one get free Geographical Pricing Price varies in different geographical regions E.g. fast food items Value pricing When external factors like recession or increased competitionforce companies to provide value products and services toretain sales. e.g. value meals at McDonalds 28. ELEMENTS OF THE MARKETING MIXProduct Promotio MarketingPricen mix Place 29. PLACE Also called channel, distribution or intermediary. The mechanism through which goods or servicesare moved from the manufacturer/ service providerto the user or consumer. 30. 6 BASIC CHANNEL DECISIONS 1. Do we use direct or indirect channels? (direct toconsumerr or indirect through a wholesaler) Single or multiple channels Cumulative length of the multiple channels Types of intermediary No of intermediary at each level Which companies as intermediaries to avoidintrachannel conflicts (e.g. fighting between localdistributors) 31. SELECTION CONSIDERATIONHow to select a distributor: Market Segment Distributor must be familiar with your target consumerand segment Changes at different PLC stages In introductory phase, product may be available atspecific locations. In maturity, at many generic locations. 32. CHANNEL INTERMEDIARIES Wholesalers Purchase bulk, break down into packages, resell toretailers and have storage facilities Reduce producer to consumer contact, take some ofmarketing responsibilities. Agents Secure orders for producer and take commission, donot purchase product. Usually used in internationalmarkets. 33. CHANNEL INTERMEDIARIES Retailers Have a stronger personal relationship with theconsumer. Holds several brands and products, hence consumer isexposed to several products. Are a strong brand themselves , e.g. Makro, Metro,Imtiaz Internet Geographically dispersed market. Product reaches a wide audience Set up costs are low. Use e-commerce for payment. 34. ELEMENTS OF THE MARKETING MIXProduct Promotio MarketingPricen mix Place 35. PROMOTION Different activities held to promote the product to the target audience 36. PROMOTION MIXPersonal Selling Sponsorship Sales PersonPromotion MixPublicAdvertising RelationsTrade FairsDirect Mail 37. PERSONAL SELLING Effective way to manage personal customerrelationships. The sales person acts on the behalf of theorganization They contact consumers personally and motivatethem to buy a product. 38. SALES PROMOTION All kinds of promotions except advertising, personalselling and public relations. E.g buy one get one free Coupons Money off promotions Introductory offers Free accessories Should be carefully costed and compared with thenext best alternative 39. PUBLIC RELATIONS Deliberate, planned, sustained effort to establishand maintain mutually beneficial relationshipbetween an organization and its publics. Cheaper than other promotional elements. 40. DIRECT MAIL Customers are targeted based upon a database. An email or snail mail is sent directly to customersin the specific target market, with the expectationthat some of them will place an order. E.g. Medical students can be sent a mail regardingmedical textbooks. 41. TRADE FAIRS AND EXHIBITIONS Used to meet companies to meet with both thetrade and the consumer Intention is to create an impression rather than sellthe product. Exhibitions are good for making new contacts andrenewing old ones. 42. ADVERTISING Paid for communication Used to develop attitudes, create awareness, andtransmit information in order to gain response fromthe target market. Advertising media such as newspapers,magazines and journals, televsion, etc. 43. SPONSORSHIP When an organization pays to be associated with aparticular event, cause or image. Companies sponsor sports events like Olympics orFormula One, or TV shows etc. e.g Olpersassociated with morning shows, Kisan pak raha haykia etc. The attributes of the event are then associated withthe sponsoring organization.

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