Top Banner

of 117

Operations on the Marketing Mix

Apr 03, 2018

Download

Documents

Edward Ayine
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
  • 7/28/2019 Operations on the Marketing Mix

    1/117

    OPERATIONS ON THE

    MARKETING MIX

    THE MARKETING MIXA set of controllables, tactical marketing tools that work

    together to achieve companys objectives.

    Controllables because they are tool the business uses

    determine its offering to customers.Often called the four (4Ps)

  • 7/28/2019 Operations on the Marketing Mix

    2/117

    Place- it represents the location where a

    product can be purchased. Often referred to as

    channel of distribution. Eg store, virtual stores

    like ebay on the internet

    Promotion. This involve all tools that the mar-

    keter uses to get its product known to the

    custommer. Eg. Ads, personal selling, salespromotion, PR, and direct marketing

  • 7/28/2019 Operations on the Marketing Mix

    3/117

    FOUR Ps

    A product is anything that can be offered to amarket for attention, acquisition, use orconsumption that might satisfy a want or need. It

    includes physical objects, services, persons,organisations and the like Kotler et al (2002).

    Price is the amount of money charged forproducts or the sum of the values that consumers

    exchange for the benefits of having or using theproduct or service.

  • 7/28/2019 Operations on the Marketing Mix

    4/117

    EXTENDED MARKETING MIX

    People- this includes all who directly or

    indirectly who influence the perceived value

    of the product or service.

    People are important in the management of

    services because of their role asperformers of

    service and customers

    Why are people as performers important to the

    organisation?

  • 7/28/2019 Operations on the Marketing Mix

    5/117

    They are direct contact with customers and

    customers see a company through its employees,

    particularly front line staff.The marketing manager should improve the

    quality and performance of front line staff

    through:Proper selection and training

    Providing rules and regulation to control their

    relationship with customersEnsuring consistent appearance

  • 7/28/2019 Operations on the Marketing Mix

    6/117

    Customers should be well managed because of

    the potency of word of mouth

    WOM could be positive or negative WOM depends on comparison between the

    customers expectation and service performance

    Performance = expectation satisfaction

    Performance < expectation dissatisfied

    Performance > expectation delighted

  • 7/28/2019 Operations on the Marketing Mix

    7/117

    Process.

    The system through which a service is delivered.

    Process can fall into any of these:

    Line operations- eg. Self service restaurants,

    shops.

    Job shop operations- hospitals, educational

    institution

    Intermittent operations- advertising agencies,

    consultancy

  • 7/28/2019 Operations on the Marketing Mix

    8/117

  • 7/28/2019 Operations on the Marketing Mix

    9/117

    PART V: PRODUCT OPERATIONS

  • 7/28/2019 Operations on the Marketing Mix

    10/117

    Product

    What is a product?

    A product is anything that can be offered tomarketing for attention, acquisition, and use

    that may satisfy a need.

    Product are goods and services

    Consumers do not just buy products, they are

    interested in the benefits.

    The product must meet customer expectationby providing the expected benefits.

  • 7/28/2019 Operations on the Marketing Mix

    11/117

    Basic feature and Aspect- Auxilliary

    Dimensions Features- are physical characteristics of a product

    sold and marketed by the company. It includes

    qualities or variables such as shapes, size, colour,

    weight, speed, durability, and maintainability. Auxilliary Dimensions- include product package,

    warranty, repair service, brand name, inset,

    reputation etc.

  • 7/28/2019 Operations on the Marketing Mix

    12/117

    Product Concept

    The product concept holds that consumers

    will favour those products that offer quality or

    performance. Managers in these product-

    oriented organisations focus their energy on

    making good products and improving them

    over time.

  • 7/28/2019 Operations on the Marketing Mix

    13/117

    Task of the Marketing Manager

    The MG has to select and blend the productsprimary characteristics and auxilliary

    dimensions into a basic idea or concept

    emphasising a particular set of consumerbenefits.

    It involves the brands benefits and attributes.

  • 7/28/2019 Operations on the Marketing Mix

    14/117

    Product Strategy

    Planning and Developing a unified mix of

    product attributes is calledproduct strategy.

    For effective strategy marketers use three terms

    to evaluate competitors.

  • 7/28/2019 Operations on the Marketing Mix

    15/117

    Product Class- use to identify groupd of items

    that may differ from each other while perfor-

    ming more or less the same function,egpepsodent, closeup parazone, mr. muscle etc.

    Product category- subsets of product types

    contained with product class. They however,take different form or subdivided, eg. Liquids,

    powder, and spray.

    Product Brand- brands identify and distinguishone product from another. eg. Coca cola, fanta

    ,amstel malt, malta guiness etc

  • 7/28/2019 Operations on the Marketing Mix

    16/117

    Types of products

    Generally products are divided into:

    Consumer products-for immediate

    consumption

    Industrial products-for further processing or

    service rendering

  • 7/28/2019 Operations on the Marketing Mix

    17/117

    Classification of Consumer Goods

    Consumer goods include the following:

    Convenience goods purchased regular

    without any though. Less expensive

    Shopping goods- effort is made to make

    comparison, make few findings,before buying

    Consumer durables- last longer,eg

    refrigerator, TV, etc

    Non-durables

  • 7/28/2019 Operations on the Marketing Mix

    18/117

    Specialty products are goods for which

    consumers are willing to spend more time and

    purchase effort. E.g. Designer perfume

    Unsought products are those of which the

    consumer is unaware or knows but normally

    does not think of buying.

  • 7/28/2019 Operations on the Marketing Mix

    19/117

    The Product Line and the Product Mix

    Product item- refers to a specific product or a

    brand.

    Product Line- a group of products which are

    closely related as satisfying a class of need.

    Product Depth- the number of different productitems offered in a productline.

    Product Width- is used to identify the extent of

    product line associated with one organisation, nomatter how diverse or narrow they may be

    Product Mix- consist of all offerings made

    available by the organisation - related/unrelated

    B di

  • 7/28/2019 Operations on the Marketing Mix

    20/117

    Branding

    a brand is a "name, term, sign, symbol or

    design, or a combination of them intended toidentify the goods and services of one seller or

    group of sellers and to differentiate them from

    those of other sellers.

    Brand Mark- a unique symbol on a brand.

    Trade Mark- a legally protected brand or

    brand mark Manufactured Brand- brand name owned by a

    manufacturer

  • 7/28/2019 Operations on the Marketing Mix

    21/117

    Distributor/private brand- owned by

    intermediate organisations.

    Brand image- the symbolic value associated

    with a brand.

    Brand extension- an existing brand name

    extended to new areas.

    Family branding- using a single brand name

    over an entire line of products

  • 7/28/2019 Operations on the Marketing Mix

    22/117

    Principles for Selecting a Brand Name

    A brand should reflect directly or indirectly

    some aspects of the product, viz. benefit,

    function, etc eg Desprin connotes that the

    product has to do with headache

    A brand should be distinctive, especially if theproduct requires such distinction, e.g., Printex

    A brand name should be easy to pronounce

    and remembered. Example Lux, Tigo etc

    It should be such that it can be legally

    protected, if necessary.

  • 7/28/2019 Operations on the Marketing Mix

    23/117

    Branding: Advantages & Disadvantages

    Buyer.

    1. A brand name denotes uniform quality.

    2. It makes shopping easier.

    3. Competition among brands can, over a period of

    time, lead to quality improvements.

    4. Purchasing socially visible brand can give psycho-

    logical satisfaction to the buyer.

  • 7/28/2019 Operations on the Marketing Mix

    24/117

    Sellers - Advantages

    1. It helps in product identification.

    2. In a highly competitive market, it can carve out a

    niche for itself through product differentiation.

    3. If brand loyalty can be developed through succe-

    ssful promotion, the firm will be able to exert

    quazi-monopoly power.

    PACKAGING

  • 7/28/2019 Operations on the Marketing Mix

    25/117

    PACKAGING

    Kotler defines packaging as all activities of

    designing and producing the container for aproduct.

    It involves making decisions about labels,

    inserts, instructions for product use, graphicdesign, and shipping cartons, as well as

    decisions about the sizes and types of physical

    containers for individual product items within

    the outer package.

  • 7/28/2019 Operations on the Marketing Mix

    26/117

    Basic functions of Packaging

    Protect/Containment product from the

    environment and physical hazards the product

    can be exposed to. Eg., breakages, climatic

    conditions etc

    Appeal/Promotion

    Perform or Usage

    Offer convenience to end-users and

    Be cost effective

  • 7/28/2019 Operations on the Marketing Mix

    27/117

    Labelling

    this has to do with the paper or plastic sticker

    incorporated into the protective aspects of thepackage

  • 7/28/2019 Operations on the Marketing Mix

    28/117

    Warranty

    A written guarantee of a products integrity

    and the manufacturers responsibility for

    repairing or replacing defective parts within

    certain time frame.

  • 7/28/2019 Operations on the Marketing Mix

    29/117

    The Product Life Cycle

    Introduction:The basic premise of the PLC is that products go

    through several stages of life with each stage

    presenting the marketer with differentchallenges that must be met with different

    marketing approaches.

  • 7/28/2019 Operations on the Marketing Mix

    30/117

    Stages of the PLC

    Development

    Introduction

    Growth

    Maturity Decline

    D l t

  • 7/28/2019 Operations on the Marketing Mix

    31/117

    Development

    This occurs before the product is released to

    the market and is principally a time for honingthe product offering and preparing the market

    for product introduction.

    I t d ti

  • 7/28/2019 Operations on the Marketing Mix

    32/117

    Introduction

    Product is released to the market and sale

    begin though often gradually as the marketbecomes aware of the product.

    Characteristics

    1. Slow sales

    2. Non existence of profit

    Marketing Objective

    1. Is to create awareness and trial among

    consumers.

  • 7/28/2019 Operations on the Marketing Mix

    33/117

    Market Strategy

    1. Offer basic product2. Charge cost-plus

    3. Build selective distribution and

    4. Use heavy sales promotion

    Maturity

  • 7/28/2019 Operations on the Marketing Mix

    34/117

    Maturity

    The product has reach its highest peak and may

    stay there longer.Characteristics

    1. Slowdown in sales growth because of

    acceptance by majority of customers2. Profits stabilizes or starts to decline because of

    increased promotion

    Marketing objective:Maximize profit whiles defend market share.

  • 7/28/2019 Operations on the Marketing Mix

    35/117

    Strategies to adopt:

    diversify brands and items models

    Price to beat or match best competitors

    Build more intensive distribution

    Pursue advert that stress on brand unique

    attributes and benefitsIncrease sales promotion to encourage brand

    switching

    D li

  • 7/28/2019 Operations on the Marketing Mix

    36/117

    Decline

    At this stage all products eventually see demand

    decline as customers no longer see value inpurchasing the product.

    Characteristics

    Sales slow downward drift and profit erode

    Cost is low per customer

    Profit declines

    Some competitors withdraw

  • 7/28/2019 Operations on the Marketing Mix

    37/117

    Marketing Objective:

    To reduce expenditure and milk the brand

    Strategy:

    - Phase out weak brands

    - Cut down price- Do selective distribution and phase out

    unprofitable outlets

    - Advertise only to retain hard-core loyalcustomers

    - Reduce sales promotion to cut down

    expenditure.

    h

  • 7/28/2019 Operations on the Marketing Mix

    38/117

    Growth Stage

    Acceptance: if the product is accepted it mayreach a stage of rapid growth in sales and in

    profits.

    Characteristics:

    1. Rapid market acceptance

    2. Rising sales and profit

    3. Growing number of competitors.Marketing Objective:

    To maximize more market share

  • 7/28/2019 Operations on the Marketing Mix

    39/117

    Strategy: marketing strategy at this stage include:

    1. Offer product extensions

    2. Add value services such as warranty

    3. Price to penetrate the market

    4. Build intensive distribution

    5. Embark on aggressive advertisement

    6. Reduce sales promotion to take advantage of

    heavy consumer demand.

  • 7/28/2019 Operations on the Marketing Mix

    40/117

    Market Evolution

    Definition:

    Four stages a market goes through during a

    product's life cycle :

    emergence,

    growth,

    maturity, and decline).

  • 7/28/2019 Operations on the Marketing Mix

    41/117

    Stage 1

    Emergence the market exist as latent market.

    Only one or few products or brands exist in

    the market.

    Sellers enjoy positive economic profit.

    Market may take the form of monopoly

  • 7/28/2019 Operations on the Marketing Mix

    42/117

  • 7/28/2019 Operations on the Marketing Mix

    43/117

  • 7/28/2019 Operations on the Marketing Mix

    44/117

    Decline

    Demand for goods generally begins to fall

    Smaller firms leave the market (industry)

    Only firms with substantial loyal customers may

    stay and probably make negative economic

    profit

  • 7/28/2019 Operations on the Marketing Mix

    45/117

    Diffusion and Innovation The PLC is tied to closely to the concept of

    diffusion of innovation. The concept explains how information and

    acceptance of a new products spread through a

    market. Customers differ in their readiness and

    willingness to adopt a new product.

    Innovative products, ideas normally spread(diffuse) among the people or market.

    The concept is as well associated with adopter

    categories into which customers are likely to fall.

    C t i f Ad t

  • 7/28/2019 Operations on the Marketing Mix

    46/117

    Categories of Adopters

    Innovators:

    Represent a small percentage of the market

    They are enthusiast who will like to try new things

    without regard to price.

    These however, do not remain loyal as they continue

    to seek new products.

    Early Adopters:

    Contain more members than the innovator category.

    They share innovators enthusiasm they are more

    practical in their decisions

  • 7/28/2019 Operations on the Marketing Mix

    47/117

    They communicate their experience with early

    majority.

    They act as opinion leaders.

    Early Majority: this represent the beginning of entry

    into mass market

    They constitute for up to one-third of the overall

    market.

    Their entry is key if a new product is to be profitable

  • 7/28/2019 Operations on the Marketing Mix

    48/117

    Late Majority:

    They exhibit wait- and-see attitude beforetrying something new.

    Marketers are likely to see their highest profies

    once this group start to purchase.

    Laggards: the last group to adopt something

    new.They do so when thy have no other choice.

  • 7/28/2019 Operations on the Marketing Mix

    49/117

    Product Portfolio Planning (Strategy)

    The business portfolio is a collection of businesses

    that make up the company.

    the best business portfolio is one that fits the

    companys strenghts and helps exploit the most

    attractive opportunities.

    M h d f P f li Pl i

  • 7/28/2019 Operations on the Marketing Mix

    50/117

    Methods of Portfolio Planning

    The two best known portfolio methods are

    from Boston Consulting Group and by GeneralElectric.

    Our concern will on the BCG

    The first step in the planning is to identifythevarious Strategic Business Units SBUs in a

    company portfolio.

    SBU

  • 7/28/2019 Operations on the Marketing Mix

    51/117

    SBU

    An SBU is a unit of the company that has a

    separate mission and objectives and that can beplanned independently from the other businesses.

    An SBU can be a company division, a product line,

    or even individual brands.

    Th B t C lti G

  • 7/28/2019 Operations on the Marketing Mix

    52/117

    The Boston Consulting Group The BCG provides a firm an opportunity to assess

    how well its business units work together. Eachbusiness unit is evaluated in terms of two factors;

    market share market growth.

    On the horizontal axis: relative market share- thisserves as a measure of SBU strenght in the

    market.

    On the vertical axis: market growth rate- thisprovides a measure of market attracriveness.

    By dividing the matrix into four areas, four SBU can

    be distinguished:

    Stars- stars are high growth business or products

  • 7/28/2019 Operations on the Marketing Mix

    53/117

    g g pcompeting in markets where they are relativelystrong compared with the competition.

    They need heavy investment to sustain growth.As growth slow and relative market share is

    maintained, they turn to cash cows

    Cash Cows- Cash cows are low-growth business orproducts with relatively high market share.

    These are mature, successful business withrelatively little need for investment.

    They need to be managed for continued profit- sothat they continue to generate the strong cashflows that the company needs for its stars.

  • 7/28/2019 Operations on the Marketing Mix

    54/117

    PRICING OPERATIONS

  • 7/28/2019 Operations on the Marketing Mix

    55/117

    PRICING OPERATIONS

    Introduction:

    Pricing is important for new business ownersbecause it impacts the success or failure of any

    business. How much profit you generate from

    your business, customer satisfaction, marketing,repeat business. (Daphne Mallory).

    Why Pricing Decisions

  • 7/28/2019 Operations on the Marketing Mix

    56/117

    Why Pricing Decisions

    Reasons include:

    - Pricing is the only part of the marketing mix whichbrings in revenue.

    - Once a price has been set, consumers will often

    show a great deal of resistance to any attempts tochange it.

    - Pricing frequently has important implications forthe positioning of a product.

    - Price is the marketing mix variable for which acompetitive response can be most quicklyimplemented

    Conceptualizing Price

  • 7/28/2019 Operations on the Marketing Mix

    57/117

    Conceptualizing Price A logical examination suggests that price should be

    defined as

    Price = resources

    goods received

    That is, we need to consider the quantity you receivedas well as the amount of money you have to fork out.To say that petrol cost GhC4. 29 is meaninglessoutside the context that this cost is per gallon.

    Ways to change Price

  • 7/28/2019 Operations on the Marketing Mix

    58/117

    Ways to change Price

    Increasing or decreasing the sticker price of a

    product. Increasing or decreasing the quantity of received.

    Changing the quality of a product. Firms may cut

    back on services or dilute products more,possibly reducing or cutting out expensive

    ingredients.

    Change the terms of a sale. Firms may begincharging for previously free delivery.

    PRICING STRATEGIES

  • 7/28/2019 Operations on the Marketing Mix

    59/117

    PRICING STRATEGIES Price Skimming- charging price relatively high four

    a short time.- takes place when a product is launched,

    - objective is to skim off customers who are willingto pay more to have the product.

    - success depend on the inelasticity of demand

    Advantages:

    Allow returns on set up cost

    Build a high-quality image for itself. Its able toreduce price to ward off competitors.

    High price brings high returns

    A strategy to segment price

  • 7/28/2019 Operations on the Marketing Mix

    60/117

    A strategy to segment price

    A pricing strategy to sell prestigeous goods

    Price penetration:A strategy of entering a market with low initial price

    in order to capture a large market.

    Works where there exist no elite market anddemand seems elastic over the entire demand

    curve

    Examples of penetration price:-restrained prices applied to maintain price in

    times of inflation.

  • 7/28/2019 Operations on the Marketing Mix

    61/117

    Cost-plus pricing: setting price to cover operational

  • 7/28/2019 Operations on the Marketing Mix

    62/117

    cost including fixed cost plus a certain level of

    profits

    Target return pricing: set to achieve a target return-

    on-investment(ROI).

    Valued-based pricing: based solely on the value

    derived from the product.

    Psychological pricing: setting a price just below a

    large number to make it seem smaller.

    PROMOTION OPERATIONS

  • 7/28/2019 Operations on the Marketing Mix

    63/117

    PROMOTION OPERATIONS

    Promotion or communication marketing represents

    all of the communications that a marketer may usein the market place.

    Elements of Promotion:

    1. Advertising,

    2. Personal selling,

    3. Sales promotion,

    4. Publicity,

    5. Direct marketing,

    6. Sponsorship.

  • 7/28/2019 Operations on the Marketing Mix

    64/117

    Effectiveness such as displays, shows, and exhibitions,

  • 7/28/2019 Operations on the Marketing Mix

    65/117

    demonstrations, coupons, contests, and other non-

    routine selling efforts. These are usually short term

    activities. Publicity (public relations): paid intimate stimula-

    tion of supply for a product, service, or business

    unit by planting significant news about it or afavourable presentation of it in the media. eg.

    newspapers and magazines, articles/reports, TVs

    and radio presentations, charitable contributions,speeches, issue advertising, and seminars.

    Direct marketing: this often listed as the fifth part of

    the marketing mix. Sponsorship.

  • 7/28/2019 Operations on the Marketing Mix

    66/117

    Promotional Mi Cont

  • 7/28/2019 Operations on the Marketing Mix

    67/117

    Promotional Mix Cont Introduction: marketers use one or more methods

    to accomplish promotion and marketing objectives.The use of one or more tools to promote a product

    constitute the promotional mix for the product.

    Determinants of Promotional Mix- Type of product

    - Nature of Market

    - Stage of product in its life-cycle

    - Available budget

    - Company policy

    Promotional or Communicational

  • 7/28/2019 Operations on the Marketing Mix

    68/117

    Mix cont

    Advertising

    Planning the advert message:

    a. Analyse your marketing objective

    b. Determine the target audiencewho are they?

    where are they located?

    what is their level of education?

    what media are they exposed to?

    c. Set advertising objectives - AIDA

  • 7/28/2019 Operations on the Marketing Mix

    69/117

    Using such people to endorse a product will

    influence the target market and likely to trust

    and patronise the product.

    Opinion formers- they are people of expertise inthe area of they have endorse.

    Awareness

  • 7/28/2019 Operations on the Marketing Mix

    70/117

    Interest

    Desire

    Action :

    eg. To create 5% awareness by the end of 2012 or to

    increase 10% awareness by the end of 2013

    NB. Marketing objectives is about creating or increasingmarketing shares, profitability and the amount of customers

    you wish to gain, etc

    d. Design advertise message:

    Credibility- trustworthiness of the message credibility in

    advertising usually achieve by using optimum leader and

    opinion leaders. These are individuals who have influence

    over other people.

  • 7/28/2019 Operations on the Marketing Mix

    71/117

    Using such people to endorse a product will

    influence the target market and likely to trust

    and patronise the product.

    Opinion formers- they are people of expertise inthe area of they have endorse.

    Advertising Strategies and Messages

  • 7/28/2019 Operations on the Marketing Mix

    72/117

    Advertising Strategies and Messages

    Messages Based on Likeability

    Using emotional and rational based message to createlikeability.

    Emotional based message- they are used to capture the

    attention of the target audience.a. humour- this involves creating a funny scene that

    maks the target audiences always want to see or hearbetween it put them in a good mode.

    b. Fear- the message seeks to put fear to the targetmarket audience so that they will feel if they dont usethe product or they apply it wrongly. Somethingnegative will happen to them.

  • 7/28/2019 Operations on the Marketing Mix

    73/117

  • 7/28/2019 Operations on the Marketing Mix

    74/117

    Rational Based messages

    The actual message that the advertiser wants to give tothe target audience.

    a. Factual- where you state the benefits to be derived,features and any other thing about the product that

    you want the target audience to know.b. Demonstration- you demonstrate to the target

    audience how the product is used, how it is preservedand how it works.

    c. Comparison- indirectly comparing your product toyour competitors product to the target audiencetelling them the superiority of your product and thebenefits that the audience will get by purchasing and

    using it.

  • 7/28/2019 Operations on the Marketing Mix

    75/117

    Advertising Media

    Print media- News paper/Magazines

    Electronic- T.V., Radio, Internet, Cinema

    Outdoor- Billboard, Poster, Transit

  • 7/28/2019 Operations on the Marketing Mix

    76/117

    Factors Influencing The Choice of Ad Media

    a. The target audience- the location of the targetaudience and the media to which they are exposed

    is crucial to the success of an ad message. This is

    one of the major things that will guide the advert-

    iser in choosing appropriate media.

    b. Cost- the amount of financial resources to be

    committed into buying the media to place the

    advertisement also determines the kind of media to

    use.

    c. The nature of the message- whether the message isvisual and or sound based will help determine what

  • 7/28/2019 Operations on the Marketing Mix

    77/117

    visual and or sound based will help determine what

    media to use.

    d. The amount of desired exposure- the frequency thatthe advertisement needs to achieve and the urgency

    of the message is a major determinant of what medi

    are to use.e. Resources available in-house- the amount of money

    the organisation is ready to spend on the ad messag

    Client-Agency Relationship in

  • 7/28/2019 Operations on the Marketing Mix

    78/117

    Client Agency Relationship in

    Advertising

    Advertising agencies are companies that specialize in

    carrying out advertising programmes on behalf of

    client organizations who wish to pursue such activi-

    ties. Traditionally, advertising agencies have beenstructured around two main areas of activity,

    creative development in copy writing and art

    direction, and media planning and buying. Accountmanagers or directors have responsibility for client

    liaison which includes research and strategic

    development.

    Types of Agencies

  • 7/28/2019 Operations on the Marketing Mix

    79/117

    Types of Agencies Introduction

    Advertising agencies come in different forms based onwhat kind and level of activities they perform for

    their clients. The typical types include the ff.

    1. Full Service Agencies- an agency that provides a

    complete range of services for their client. It is

    usually referred to as a one-stop-shop for all

    advertising activities; these services include

    creative, strategic planning, production, mediaplanning and buying, and market research.

    Examples of full service agencies in Ghana include

    Origin 8, H.B. Lintas, etc

    There are a number of advantages to a full service provisions:

  • 7/28/2019 Operations on the Marketing Mix

    80/117

    There are a number of advantages to a full service provisions:

    - Working with full service agency will see a huge pool ofskills under one roof that can be drawn on as needed;

    - new and different perspectives on the communication

    problem may be gained, which ultimately will contributetowards the corporate and the marketing objectives of the

    organisation being achieved. Therefore, in a full service

    agency, it is critical to have a relationship built around

    quality, trust and understanding. This is imperative for the

    successful implementation of the marketing strategy

    Limited Service Agencies- these agencies tend to

    i li i ti l l t f th k ti

  • 7/28/2019 Operations on the Marketing Mix

    81/117

    specialize in particular elements of the marketing

    communication process. Eg. An advertising agency

    may specialize in art and creative skill and thereforefocus on the design and development of

    advertisements. They will then rely on significant

    information being provided by their client to enablethem to meet the brief. Another agency may

    specialize in media buying and therefore be able to

    achieve a high level of competitive advantage to

    enable a more effective use of the advertising

    budget.

    The advantage to using limited service agencies is

    th t i ti h d t t th

  • 7/28/2019 Operations on the Marketing Mix

    82/117

    that an organization can shop around to get the

    best skills to suit a range of marketing

    communication needs. A la Carte Agency

    Many organisations now want greater flexibility and

    choice in the way in which communications aremanaged. To do this they need to have a broad

    range of options, which do not necessarily come

    from a full service approach, rather they want toselect a range of services from a range of specialist

    agencies.

    Issuing a Brief to an Agency

  • 7/28/2019 Operations on the Marketing Mix

    83/117

    Issuing a Brief to an Agency Current situation

    Promotional objectives

    Target markets

    Product/Service

    Budget

    Competitors

    Timescale

    Agency Selection Process

  • 7/28/2019 Operations on the Marketing Mix

    84/117

    g y

    Search

    Short listing

    Credentials presentation

    Briefing

    Pitching

    Final Selection

    Criteria for Selecting and Agency

  • 7/28/2019 Operations on the Marketing Mix

    85/117

    Issues to be considered.

    Their track record of what the works they havedone.

    The level of experience they have in communi-

    cations campaigns The expertise (calibre of personnel) they have in-

    house.

    The king of resources and equipments they posses Their ability to translate the brief into a workable

    proposal

    The amount demanded for the campaign

    A R ti

  • 7/28/2019 Operations on the Marketing Mix

    86/117

    Agency Remuneration

    Fee payment

    Commission

    Payment by Results

    combination

    Sales Promotion

  • 7/28/2019 Operations on the Marketing Mix

    87/117

    Roles of sales promotion:

    Move of stock

    Reward customers

    To gain enough shelf space at retail shops

    Sales Promotion Techniques: Buy one get one free

    Quantity discount- percentage off for bulk purchase

    Price discount percentage of the normal and for

    any quantity you buy

    Loyalty bonus- customers are rewarded for

    fre uen urchase.

  • 7/28/2019 Operations on the Marketing Mix

    88/117

    Direct Marketing

  • 7/28/2019 Operations on the Marketing Mix

    89/117

    Directing marketing involves communicating directly

    with customers without necessarily coming into

    face-to-face with the customer.

    Roles of direct marketing:

    - Primary differentiation usually to communicate with

    business (BCB) and service based customers.

    - Communication effectiveness- used to give more

    where advertising and other tools cannot explain

    the issue in detail.

  • 7/28/2019 Operations on the Marketing Mix

    90/117

    E l ti th ff ti f DM

  • 7/28/2019 Operations on the Marketing Mix

    91/117

    Evaluating the effectiveness of DM

    Sales levels

    Number of enquires

    Number of response to mail

    Customer based ( especial service

    organisation)

    Personal Selling

  • 7/28/2019 Operations on the Marketing Mix

    92/117

    When to use personal selling?

    i. For technically complex productsii. Industrial (B2B) selling

    iii. Service marketing

    iv. Channel network supply Evaluating Personal selling

    Sales levels

    Customer base

    Enquires

    Amount of sales ma

    Public Relations

  • 7/28/2019 Operations on the Marketing Mix

    93/117

    It is a planned and sustained effort made to creat a

    good relationship between the organisation andpublic and maintained the organisation and the

    good will of the organisation.

    The role of public relation (PR)Press statement release

    Press conference

    Corporate social responsibilityMedia relation

    Sponsorship- mgt contract between two parties

    that brin benefits to both arties

  • 7/28/2019 Operations on the Marketing Mix

    94/117

    Lobbying

    Companys open days

    Companys durbars

    Crisis management

    Evaluating the Effectiveness of PR

  • 7/28/2019 Operations on the Marketing Mix

    95/117

    valuating the ffectiveness of PR Sales level

    Awareness survey Customer base

    Corporate image

    Corporate personality

    Place Operations

  • 7/28/2019 Operations on the Marketing Mix

    96/117

    Place Operations

    The Importance of distributors (wholesalers/retailer

    1. Breaking bulk ( solve dd/ss discrepancy)

    2. Consolidating and distribution (reduce assortment

    discrepancy)

    3. Carrying inventory (temporal discrepancy)

    4. Financing

    NB various channels of distribution.

  • 7/28/2019 Operations on the Marketing Mix

    97/117

    Manufacturer Distribution Preferences

    Distribution Interest: Retailers Vs. Mfgs

    Parallel distribution structures

    Diversion

  • 7/28/2019 Operations on the Marketing Mix

    98/117

    Service Mix and Experiential Service

  • 7/28/2019 Operations on the Marketing Mix

    99/117

    The extended mix is an integral part of service blue-

    print design. The service marketing mix assumesthe service as a product itself. The characteristics of

    service include the following:

    Intangibility,

    inseparability,

    Perishability

    Heterogeneity,

    Ownership.

    The Service Mix

  • 7/28/2019 Operations on the Marketing Mix

    100/117

    The Service Mix

    This include:

    People,

    Process,

    Physical Evidence

    people

  • 7/28/2019 Operations on the Marketing Mix

    101/117

    p p

    Very crucial to the success of the business.

    The need to recruit the appropriate staff and giving

    them the appropriate training to perform to

    expectation.

    They play frontline role in the delivery of service.

    Customers perception of the service (organisation)

    is based on the behaviour of employees.

    Employees need to exhibit appropriate

    interpersonal skills and aptitude and srvice

    knowledge to provide the service that consumers

    are paying for.

    Process

  • 7/28/2019 Operations on the Marketing Mix

    102/117

    Refers to the systems used to assist the

    organisation in delivering the service.Discuss:

    Hospital

    Bank,

    Polytechnic etc.

    Physical EvidenceThese are the physical tangible and controllable

  • 7/28/2019 Operations on the Marketing Mix

    103/117

    These are the physical, tangible and controllable

    aspect of a service organisation

    It is made up of :

    Peripheral evidencepossessed as part of the

    purchase of a service but by itself is of no value

    Essential evidence-the essential evidence cannot be

    possessed by the customer.

    Physical evidence should be well managed to create

    the ideal environment for your service

    Make the service more tangible and make it easier

    for the customer to understand the service offering.

    Experiential Service Operations

  • 7/28/2019 Operations on the Marketing Mix

    104/117

    p p

    Experiential services are defined as services where

    the focus is on the experience of the customerwhen interacting with the organization, rather than

    just the functional benefits following from the

    products and services delivered (Voss & Zomerdijk,2007.

    This means that the customer experience has

    become the key feature in the delivery of saidservices.

    http://bluehaired.com/corner/wp-content/uploads/2009/05/innovation_in_experiential_services_with_cover.pdfhttp://bluehaired.com/corner/wp-content/uploads/2009/05/innovation_in_experiential_services_with_cover.pdfhttp://bluehaired.com/corner/wp-content/uploads/2009/05/innovation_in_experiential_services_with_cover.pdfhttp://bluehaired.com/corner/wp-content/uploads/2009/05/innovation_in_experiential_services_with_cover.pdf
  • 7/28/2019 Operations on the Marketing Mix

    105/117

    Every service has its beginning and where itends. The service delivery must be design in a

    sequence that will allow all characters in the

    service delivery to know what to do at a time. A flow chart which shows how every needed

    to create and to deliver a service is called

    blueprint.

  • 7/28/2019 Operations on the Marketing Mix

    106/117

    Service blueprint:

    It is a picture or map that portrays the service

    system so that the different people involved in

    providing it can understand and deal with itobjectively regardless of their roles or individual

    points of view.

    It displays the service by simultaneously depicting theprocess of service delivery, the point of customer

    contact, the roles of customers and employees and

    the visible elements of the service

    Components of the Service

  • 7/28/2019 Operations on the Marketing Mix

    107/117

    Experience

    There are five major components namely:

    Physical environment (stage),

    Service employees (actors),

    Service delivery process (script),

    Fellow customers (audience),

    Back office support (back stage).

  • 7/28/2019 Operations on the Marketing Mix

    108/117

    Roles of the environment:

    -accommodating customers and employees,

    Guiding behavioural actions eg. Where to queue

    Managers of services consider the design of the

    physical environment eg restaurants, church,

    mosque, cruise ship, shopping centre aircraft

    interior etc.

    Service Employees

  • 7/28/2019 Operations on the Marketing Mix

    109/117

    Service Employees

    Service employees actions influence customerexperiences.

    Service Quality has link with employee

    behaviour: responsiveness, assurance,inspiring confidence and trust, empathy etc.

    Managers should pay attention to employees

    especially, the front line employees.

  • 7/28/2019 Operations on the Marketing Mix

    110/117

    Fellow Customers

  • 7/28/2019 Operations on the Marketing Mix

    111/117

    Fellow Customers

    Customers experience is not with service pro-viders only, but with fellow customer. These

    are referred to as audience. Some of such

    people can be unruly or can exhibit unantici-pated behaviour thereby destroying service

    performance.

    Back office

  • 7/28/2019 Operations on the Marketing Mix

    112/117

    Back office

    The physical setting, service employees,service delivery process, and fellow customers

    directly influence a customers experience and

    this takes place at the front stage. Those at the back stage are employees who

    do not interact directly with customer. Their

    activities however, are connected to thefrontline employees thus, influencing their

    performance.

    Sales Management

  • 7/28/2019 Operations on the Marketing Mix

    113/117

    Sales Management

    Task of sales force

  • 7/28/2019 Operations on the Marketing Mix

    114/117

    a. Order Takers: the people who take customer

    orders at the point of sales. Shop attendanceticketing officers.

    b. Order Getters: they are the people who usually go

    to the field to meet customers and tries toconvincing them to liaise orders for the

    organisation products or service.

    c. Order collectors: they are basically office basedsales staff who communicate with customers and

    prospective customers through the telephone in

    trying to convince them to place orders.

  • 7/28/2019 Operations on the Marketing Mix

    115/117

    a. Order Supporters: those people whoprocess customer orders and see to it that the

    orders are supplied at the right time.

    Types of SellingI d t i l /B2B lli i d t i l lli

  • 7/28/2019 Operations on the Marketing Mix

    116/117

    a. Industrial /B2B selling: industrial selling means

    selling the products to business entities who need

    your finished product as their raw material or

    office assistance eg. Plant and machinery, office

    accessories.

    b. Individual /B2C selling: selling product to final user

    consumers, e.g. fast moving consumer goods such

    as cars.

    c. Professional selling: it involves negotiating withsome professionals who will need your product as

    part of their work in order to wholly execute their

    work eg Building contractors electricians etc

    Designing Sales Territories

  • 7/28/2019 Operations on the Marketing Mix

    117/117

    It is the grouping of customers and prospects that

    can be called upon conveniently and economicallyby the individual sales persons to serve their needs.

    Evaluating the attractiveness of sales territories

    a. Accessibility- the sales person should be able toreach the market and serve the market and their

    needs without incurring cost more than the

    benefits they gain.b. Substantial- the market should be large enough for

    h i i k fi f i