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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?
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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
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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
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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
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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
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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
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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
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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.
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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.
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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.
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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
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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
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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
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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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:
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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
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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
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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
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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
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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).