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Should We Be in and What Opportunities Should We Advantages: Pursue?' This Is Marketing Before We Marketing develops products, prices them, promotes them and then distributes a process of planning and executing the: them in a way that helps a company . Conception, create and sustain demand for their . Pricing, products. Promotion, 4Ps of Marketing . Distribution of ideas, goods, and services to create exchanges that satisfy individual and Product: The Product management and organizational objectives. Product marketing aspects of marketing deal with the specifications of the actual good or service, and how it relates to the end-user's Marketing Activities needs and wants. get attention . motivate & encourage people Pricing: This refers to the process of setting a . facilitate them to act (buy) price for a product, including discounts. get them to buy again Promotion: This includes advertising, sales Define your product/service promotion, publicity, and personal selling, and Promotion / promoting refers to the various methods of promoting the Distribute your product/service product, brand, or company. Maintain a relationship Placement or distribution refers to how the Building and nurturing a relationship product gets to the customer; for example, Create, expand and maintain point of sale placement or retailing. This fourth Understand consumer behavior P has also sometimes been called Place, how people buy, what they buy, when they referring to the channel by which a product or buy and why they buy service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business Customer focus (orientation): people), etc. Customer wants1 are researched, . The information is disseminated throughout the firm and products are developed Advertising . Customer satisfaction is monitored and Advertising is paid communication through a non- adjustments made if necessary. personal medium in which the sponsor is identified and the message is controlled. 3 Assumptions of Transactional Marketing . There is a large number of potential Variations include: customers . publicity & public relations . Customers and their needs are fairly . product placement2 (plug on sitcom) homogenous . sponsorship & underwriting spots 3 (e.g. PBS) . It is rather easy to replace lost customers with . sales promotion new on Viral Marketing 3 Levels of Marketing viral advertising refer to marketing techniques that use pre-existing social networks to produce Corporate increases in brand awareness. 1. 'What busineswww.allonlinefree.coms should we be in and what opportunities should we Advantages: pursue?' This is marketing before we . Ease of executing the marketing campaign, even have a business, idea or product. Relative low-cost (compared to direct mail) Business 2. 'How are we going to compete . Good targeting, against the competition? 'Focused on . High and rapid response rate the competition; deals with long term sustainable advantages and business Mass Market vs. Niche Market models 2 Functional a real commercial product is used in fictional or non-fictional 3. 'How do we create and keep media, and the presence of the product is a result of an economic exchange. When featuring a product is not part of customers?'; '4ps' of the marketing mix. an economic exchange, it is called a product plug. This level of marketing defines and 3 spots usually mention the name of the sponsor, and can resemble traditional advertising in commercial broadcasting, 1 but there are usually legal restrictions, such as a prohibition of determines what its potential customers desire making product claims, announcing prices, or providing an incentive to buy a product or service. Mass marketing is used to sell a product to a large variety of customers in large amounts. Mass marketing is the opposite of niche marketing, where a product is made especially for one person or a group of person Marketing Innovations & Theory: exploit people's herd mentality to increase sales Mass Customization (PERSONALIZATION) . Adaptive customization - firms produce a standardized product, but this product is Positioning Strategies: customizable in the hands of the end-user (the customers alter the product themselves) . Product Attributes: What are the specific product attributes? . Collaborative customization - talk to . Benefits: What are the benefits to the individual customers to determine the precise customers? offering that best serves the customer's . Usage Occasions: When / how can the needs (personalized marketing and personal product be used? marketing orientation). This information is . Users: Identify a class of users. used to specify and manufacture a product . Against a Competitor: Positioned directly that suits that specific customer against a competitor. Away from a Competitor: Positioned away . Cosmetic customization - produce a from competitor. standardized physical product, but market it . Product Classes: Compared to different to different customers in unique ways. classes of products. Product/Service Differentiation Positioning Differences differentiating it from competitors' products as well as one's own product offerings Important: The difference delivers a highly valued benefit to the target buyers Sources: Distinctive: Competitors do not offer the . Differences in quality or design among output difference, or the company can offer it in a (product) more distinctive way . Ignorance of buyers regarding the essential Superior: The difference is superior to other characteristics and qualities of goods they are ways that the customer might obtain the purchasing same benefit . Pervasive sales promotion activities of sellers Communicable: The difference can be and, in particular, advertising explained and communicated to the target . Differentiation in the locations of sellers of the buyers same good; Preemptive: Competitors cannot easily copy the difference Product/Service Positioning Affordable: Buyers can afford to pay the How are you, your product/service perceived in the market difference compared to the competition? Profitable: Company can introduce the www.allonlinefree.comdifference profitably A good position is: 1. What makes you unique 2. This is considered a benefit by your target Segmentation Variables: market Main Segments (subsets) . Geographic Re-positioning involves changing the identity . Demographic (age, gender, income, of a product, relative to the identity of competing occupation, religion) products . Psychographic (personality, value, attitude) . Behavioral (benefit sought, brand loyalty) De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, Who are the Innovators and Early adopters? Environment 1. What is our marketing environment? 2. What is our competitive advantage? . Venturesomeness: the willingness and • Matching: fitting the offer to the buyer's desire to be daring in trying something new needs and different • Negotiation: reaching agreement on . Social integration: frequent and extensive price and terms contact with others in one’s area • Physical distribution: transporting and . Cosmopolitan: point of view extending storing the goods beyond the immediate neighborhood or • Financing: getting and using funds to community cover the costs of channel work . Social mobility: upward movement on the • Risk taking: assuming the risks the social scale channel work. Privilegedness: attitude and possession of money (less risky to try something new) Distribution . Upselling • Retail a marketing technique where the customer is • Online offered a higher-priced version of a product or an • In Person additional product to the original sale. • In House Pricing Strategies . Product Line: Setting price steps between product line items . Optional Product: Pricing optional or accessory products . Captive Product: Pricing products that must Target Market: be used with the main product Each class has different risk tolerances. By-Product: Pricing low value by product to get rid of them • Innovators4 First 5% - 10% that adopt the . Product Bundle: Pricing bundles of products product sold together • Early Adopters Next 10% - 15% New Product Pricing Strategies • Early Majority Next 30% • Late Majority Next 30% Market-Skimming: Initially set high prices to "skim" • Laggards Remaining 20% revenue layer by layer from the market. Works when: Product Adaptability . Quality and image support the higher price . Relative advantage of the product: How . Enough buyers want the product at that price superior is the innovation to the product or . Cost of producing a small volume cannot be high other problem-solving methods it was . Competitors should not be able to enter the market designed to compete against? easily . Compatibility: Does it fit with current Market Penetration: Set a low initial price in order to product usage and customer activity? penetrate the market quickly and deeply to win a large . Complexity: Will difficulty or confusion arise market share. Works when: in understanding the innovation’s basic idea? . Divisibility: How easily can trial portions of . Market is highly price sensitive the product be www.allonlinefree.compurchased? . Production and distribution costs fall as sales . Communicability: How likely is the product volume increases to appear in public places where it is easily . Low price must help keep out the competition seen and studied by potential users? Price Adjustment Distribution Channels Functions . Discount & Allowance: reduced prices to reward What is the purpose of a distribution channel? customer responses such
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