Fundamentals of Marketing New

Marketing
Buzzwords of confusion
Sales versus Marketing
Market Research &
Marketing Research
Event Marketing
SWOT, PEST, KPIs,
USPs, DINKYs etc

As Event Managers,
why is it important we understand
what Marketing is?
Interactive
Media
Radio
Television
Outdoor
Print
Media
Internet
Below
the line
Events
Important Part of the Marketing Tactics
Example of Events in Marketing
The Pepsi
Challenge has been
an ongoing
marketing promotion
run by PepsiCo for
the last 2 decades

1980s Pepsi
Challenge built
around a premise
that had to be
established live

The challenge takes the form of a taste test. At public
locations, a Pepsi representative sets up a table with two
blank cups, one containing Pepsi and one with Coke.
Shoppers are encouraged to taste both colas, and
correctly identify which is Pepsi and which is Coke. If
they can correctly identify the two, they win a prize.

Example of Events in Marketing
Events within Marketing
Marketing
(A Philosophy)
Events
The Marketing Mix (Tactics)
Product Price Place
Promotion
People
Physical
Evidence
Process
Agenda
Marketing What is it?
The Marketing Mix
The Environment
The Marketing Plan
The Promotion Focus
Events (Face to Face Communication)
What is Marketing ?
The agrarian economy was largely self sufficient
and trade was mostly through barter
The industrial revolution in early 19
th
century
suddenly created surplus putting pressure on
manufacturers to find markets that could absorb
the produce
The need for labeling the produce, brands,
trademarks and patents gradually began to
come in
Mid 19th Century traveling salesman to
organized distribution
Marketing History
The Sales Era lasted till the 2
nd
world war
Post war boom started the consumerist
wave money in the hands of people, and
larger number of enterprises making
similar products
Product proliferation made business very
competitive
It was this that paved the way for
Marketing

Marketing History
Orientation Stages
Production Oriented
Firms tend to manufacture and offer
goods that they are good at producing

Sales Oriented
The Hard Sell, firms now realise that
due to competition the goods have to
be sold. Sales volume becomes the
most important criterion

Marketing Oriented
The firm ascertains the genuine needs
and wants of specifically defined target
markets and then produce goods and
services that satisfy the customer
requirements
Marketing Some Descriptions
Marketing is a human activity directed at
satisfying human needs and wants
through exchange process

The customer is always right

The right product, in the right place, at the
right time, at the right price

Marketing Definitions

Marketing is the management process which
identifies, anticipates and supplies customer
requirements efficiently and profitably
Chartered Institute of Marketing

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

Sales process begins
with the producer
Based on what the
producer can make
Seller defines the price
Focus on finding buyers
and selling them anyhow
The sale is the end of the
transaction
Product attributes static,
as long as it sells

Marketing begins with the
consumer
Based on consumer needs
and wants
Market demand decides
Focus on matching consumer
needs with product attributes
The sale is the beginning of
the transaction relationship
Products must adapt to
changing customer trends
Marketing is involved with the planning of
the presentation of the firms capabilities;
whereas
Sales is the execution of the transfer or
exchange of the product, good or
service.

Marketing is a strategic function and has a
number of tactical activities, of which selling is
one.

The primary function of sales is to find and
close leads, turning prospective customers in
actual ones

Sales definition
Income (at invoice values) received for goods
and services over some given period of time
Presentation Status
The Marketing Mix
The Environment
The Marketing Plan
The Promotion Focus
The Marketing Mix
The Marketing Mix
The 4 Ps
The variables that the marketing manager can control in
order to best satisfy customers in the target market
Target
Market
2. Price
1. Product
4. Promotion
3. Place
The physical product
or service offered to
the consumer.
Channels of distribution
to get the product to the
consumer.
Producer-Wholesaler-
Retailer-Customer
Financial aspects of the
process; price levels,
profit margins etc.
The communication and
selling to potential
customers
The Extended Marketing Mix

5. People
Employees are in direct
contact with customers
and therefore must be
considered the in the
developing the
marketing mix


6. Physical Evidence
Service has an
intangible
characteristic, therefore
importance is placed on
more tangible elements
of the service mix such
as facilities and
equipment.


7. Process
How the service is
provided is important.
Procedures for dealing
with customers at the
point of contact, and the
supply of a consistent
quality service must be
pre-planned and
managed

Presentation Status
The Marketing Mix
The Environment
The Marketing Plan
The Promotion Focus
The Environment
Components of Communication
Encoder Decoder
Channel
Message
Organisational Buying Process
Need recognition
Determine specification (general)
Determine specification (specific)
Search
Evaluation
Selection
Post-purchase evaluation
Comsumer Buying Process
Market Analysis
PEST A framework to scan the external macro-
environment in which a firm operates
Price
Product
Promotion
Place
Company
Economic
Socio-Cultural
Techno-
logical
Political
Target Markets
One of the reasons why marketing arose was
because of the diversity of markets and complex
human needs and wants
As competition increased and more producers
started producing similar goods, the need to
carve out exclusive niches arose
This could be done by changes to the product
DIFFERENTIATION, or to the market definitions
- SEGMENTATION

Segmentation & Targeting
If segmentation is about breaking up a mass
market into more specific subsets, targeting is all
about the decisions to appeal to them
Treating them all as one large group with a
common interest is called UNDIFFERENTIATED
marketing
Selecting one small niche and catering to that
segment is called CONCENTRATED marketing
Identifying several unique subsets and talking to
them individually is called DIFERENTIATED
marketing

Why Segment?
Better matching of customer needs
Enhanced profits, margins for the business
Better opportunities for growth
Retain loyalty of customers
Targeted marketing communications
Gain share in the segment

Some Examples of Profiles
Ultra Conservative - don't rock the boat, whatever they purchase
must be consistent with their current way of doing things.
Conservatives - are willing to change, but only in small increments
and only in a very cost effective manner.
Liberals - regularly looking for new solutions, willing to make
change (even major change) if the benefit can be shown.
Technical Liberals - enamored with the benefits provided by high
tech solutions and any purchase decision will be biased by the
technical content of the offering.
Self Helpers - consistently defines/designs solutions to their
problems, likes to acquire tools that help in the innovation process.
The Road to the Market
To get a product or service to the right
person or company, a marketer would
firstly
1. segment the market,
2. then target a single segment or series of
segments,
3. and finally position within the segment(s)

1. Market Segment
Segmentation is essentially the identification of subsets of
buyers within a market who share similar needs and who
demonstrate similar buyer behavior.

by geography region, climate, population density and
growth
by demographics - such as age, gender, occupation,
income, education and family status
by psychographics - such as values, lifestyle or beliefs
by behaviour such as class, brand loyalty, price
sensitivity

2. Targeting the Market
After the market has been separated into
its segments, the marketer will select a
segment or series of segments and 'target'
it/them

It's like looking at a dart board or a
shooting target. You see that it has areas
with different scores - these are your
segments. Aiming the dart or the bullet at
a specific scoring area is 'targeting'

2. Targeting the Market (cont)
Eg. The Car Industry
Eg. Rolls Royce
Eg. Washing Powder
3. Position in Market
After segmenting a market and then targeting a
consumer, you would proceed to position a
product within that market

Positioning is all about 'perception

Products or services are 'mapped' together on a
'positioning map'. This allows them to be
compared and contrasted in relation to each
other
EG. Automotive
Positioning Map
3. Position in Market (cont)
Presentation Status
The Marketing Mix
The Environment
The Marketing Plan
The Promotion Focus
The Marketing Plan
Marketing Plan
Marketing plans are vital to marketing
success. They help to focus the mind of
companies and marketing teams on the
process of marketing i.e. what is going to
be achieved and how we intend to do it.
The Marketing Plan (cont)

The key stages of the plan are contained
under the acronym AOSTC
1. Analysis
2. Objectives
3. Strategies
4. Tactics
5. Control.
1. Analysis

The environment (PEST)
Internal Audit
Competitors
SWOT
SWOT ANALYSIS
A tool for identifying and analysing the (internal)
strengths and weaknesses of a corporation and the
(external) opportunities and threats.
Strong brand / reputation
Industry expertise
Natural resources
Patents
New product / service
Location
Quality process or procedure

Developing market
Mergers or strategic alliances
Moving into new attractive market segments
New international markets
Loosening of regulations
Removal of international trade barriers
Market is led by weak competitor

STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
Poor quality of goods or service
Damaged reputation
Lack of marketing expertise
Location of business
Competitors have superior resources
Weak HR and personnel

New competitor in home market
Price war
Innovative product/service from competitor
New regulations
Increased trade barriers
Taxation on product / service

2. Objectives (SMART)
Specific
Be precise about what you are going to achieve
Measurable
Quantify you objectives
Achievable
Are you attempting too much?
Realistic
Do you have the resource to make the objective happen (men,
money, machines, materials, minutes)?
Timed
State when you will achieve the objective (within a month? By
February 2010?)
3. Strategies
Describe your target market.
Which segment?
How will we target the segment?
How should we position within the segment?
Define the segment in terms of demographics and lifestyle
Show how you intend to 'position' your product or service
within that segment. Use other tools to assist in strategic
marketing decisions such as Boston Matrix, Ansoffs Matrix
4. Tactics
Convert the strategy into the marketing mix (4 ps)marketing
mix. These are your marketing tactics.

PRICE. Will you cost plus, skim, match the competition or
penetrate the market?
PLACE. Will you market direct, use agents or distributors?
PRODUCT Sold individually, as part of a bundle, in bulk?
PROMOTION Which media will you use? e.g sponsorship,
radio advertising, sales force, point-of-sale, etc? Think of
the mix elements as the ingredients of a 'cake mix
5. Control
Remember that there is no planning without
control. Control is vital.
Start-up costs
Monthly budgets
Sales figure
Market share data
Monitor and Evaluate plan

Marketing Budgets
Gear your marketing efforts to the most cost effective
use
Budgets include everything from equipment investments
to soft company support of community events
Keys areas could be: (mix)
Advertising; public relations
Product packaging
Sales force / commercial incentives
Marketing budget should anticipate results; internally
sell the expenditures for each piece; support most
important objectives
Some marketing organizations have P/L responsibility
You cant make a buck, without spending a buck
Campaign Framework
Marketing
Communication
Objectives &
Strategy
Marketing
Communication
Tactics
Campaign
Implementation
Campaign
Evaluation &
Control
Specific
Measurable
Short Term
Targets
Budgets
Creative
Media selection
Below the line
promotions
Sales force
Public relations
Distribution
channels &
management
National Launch or
smaller scale
campaign
Presentation Status
The Marketing Mix
The Environment
The Marketing Plan
The Promotion Focus
The Promotion Focus
Events within Marketing
Marketing
(A Philosophy)
Events
The Marketing Mix (Tactics)
Product Price Place
Promotion
People
Physical
Evidence
Process
Push & Pull Marketing Strategies
PUSH
Marketing efforts
targeted at the
middlemen and the
salesforce

PULL
Marketing efforts
targeted at consumers
Cash discounts
Dealer competitions
Salesforce cash incentives
Direct Mail shots
Credit facilities
Trade Exhibitions & Events,
Demonstrations
Training schemes
Price reductions,
Coupons
Free samples/demos in
stores
Competitions
Buy one get one free,
Packaging,
Point of Sale displays,
Consumer Advertising
Sponsorship
CHANNELS
OF
DISTRIBUTION
The Promotion Cake
The basic ingredients are always the same. However if you vary the amounts of
one of the ingredients, the final outcome is different. You can 'integrate' different
aspects of the promotions mix to deliver a unique campaign cake.
Personal
Selling
Advertising
PR
Direct
Mail
Sales
Promotion
Events
Sponsorship
Personal
Selling
Advertising
PR Direct
Mail
Sales
Promotion
Events
Sponsorship
Advertising
Advertise make knownTo inform
An advertisement to be successful;
Must be seen
Must be read
Must be believed
Must be remembered
Must be acted upon
Presentation Status
The Marketing Mix
The Environment
The Marketing Plan
The Promotion Focus In progress
Presentation Status
The Marketing Mix
The Environment
The Marketing Plan
The Promotion Focus In progress
Marketing Plan Example
Presentation Status
The Marketing Mix
The Environment
The Marketing Plan
The Promotion Focus
Events
(Face to Face Communication)
An Overview of Events
Events
Award Ceremonies
Carnivals
Concerts
Conferences
Corporate Events
Exhibitions
Festivals
Fashion Shows
Product Launches
Promotions

Road Shows
Seminars
Sporting Events
Trade Fairs
Award Ceremonies
Carnivals
Concerts
Conferences
Car Launch
Exhibitions
Festivals
Fashion Show
Opening Ceremony
Product Launch
Sporting Event
Tourist Events
Weddings
Presentation Status
The Marketing Mix
The Environment
The Marketing Plan
The Promotion Focus
Brand
Building
Events
Product
Displays
Brand
Awareness
Merchandising
Promotions
PR
Driver
Entertainment
Brand
Building
Brand
Positioning
Visibility
Personal
Selling
Tangible
Sales
Research &
Planning
Brand
Communication
Product
Sampling
Event Communication
Advantages

Clean and customer direct
Direct benefit to the user (even enjoyment)
It is suggested that the advertising arena
(while growing in terms of size) is slowing
down and being replaced by the Face-to-face
style medium of communication.
Marketing Dictionary
Above the Line Advertising for which a payment is made and for
which commission is paid to the advertising agency. See also
'below the line' and 'push versus pull promotion

Advertising Promotion of a product, service, or message by an
identified sponsor using paid-for media.

Brand The set of physical attributes of a product or service,
together with the beliefs and expectations surrounding it - a
unique combination which the name or logo of the product or
service should evoke in the mind of the audience.

Brown Goods Electrical goods such as TVs, videos, stereo
systems etc, used for home entertainment. So called because
they were originally cased in bakelite, a brown plastic.
Buzz marketing uses 'word-of-mouth' advertising: potential
customers pass round information about a product. See also 'viral
marketing

Channels The methods used by a company to communicate and
interact with its customers

Copyright The law that protects an author's original material,
usually (in the UK) for 70 years after the author's death. Similar
law covers logos and brand names

Copywriting Creative process by which written content is
prepared for advertisements or marketing material
Customer Relationship Management (CRM) The coherent
management of contacts and interactions with customers. (This
term is often used as if it related purely to the use of IT, but IT
should in fact be regarded as a facilitator of CRM.)

Decision Making Unit (DMU) The team of people in an
organisation who make the final buying decision

Differentiation Ensuring that products and services have a
unique element to allow them to stand out from the rest

DINKY Double Income No Kids Yet - a demographic grouping
Direct Marketing All activities which make it possible to offer
goods or services or to transmit other messages to a segment of
the population by post, telephone, e-mail or other direct means

Electronic Point of Sale (EPOS) System A system whereby
electronic tills are used to process customer transactions in a
retail outlet

Endorsement Affirmation, usually from a celebrity, that a product
is good

FMCG Fast Moving Consumer Goods - such as packaged food,
beverages, toiletries, and tobacco
Focus Groups A tool for market research where small groups of
customers are invited to participate in guided discussions on the
topic being researched

Grey Marketing (also called Parallel Importing) The illicit sale
of imported products contrary to the interests of a holder of a
trademark, patent or copyright in the country of sale

Guerrilla Marketing The strategy of targeting small and
specialised customer groups in such a way that bigger companies
will not find it worthwhile to retaliate

Logo A graphic, usually consisting of a symbol and/or group of
letters, that identifies a company or brand
Macro Environment The external factors which affect a
companys planning and performance, and are beyond its control:
for example, socio-economic, legal and technological change.
Compare 'micro environment

Market Penetration The attempt to grow one's business by
obtaining a larger market share in an existing market - see
'market share' and 'market development

Micro Environment The immediate context of a company's
operations, including such elements as suppliers, customers and
competitors - compare 'macro environment

Personal Selling One-to-one communication between seller and
prospective purchaser
PIMS Profit Impact of Marketing Strategies: a US database
supplying data such as environment, strategy, competition and
internal data with respect to 3000 business. This data can be
used for benchmarking purposes

Point of Sale (POS) (also called Point of Purchase) The
location, usually within a retail outlet, where the customer decides
whether to make a purchase. See also 'EPOS - Electronic Point
of Sale'

Portfolio (and Portfolio Analysis) The set of products or
services which a company decides to develop and market

Product Life Cycle A model describing the progress of a product
from the inception of the idea, via the main period of sales, to its
eventual decline

Promotional Mix The components of an individual promotional
campaign, which are likely to include advertising, personal selling,
public relations, direct marketing, packaging, and sales promotion

Relationship Marketing The strategy of establishing a
relationship with the customer which continues well beyond the
first purchase.

Return on Investment (ROI)/Return on Capital Employed
(ROCE) The value that an organisation derives from investing in
a project

Skimming Setting the original price high in the early stages of the
product life cycle in an attempt to get as much profit as possible
before prices are driven down by increasing competition
Supply Chain The network of suppliers, manufacturers and
distributors involved in the production and delivery of a product

Unique Selling Preposition (USP) The benefit that a product or
service can deliver to customers that is not offered by any
competitor: one of the fundamentals of effective marketing and
business

Value Preposition The set of qualities of a good or service that
allows it to fulfill the customer's needs and desires, as opposed to
simply benefiting the seller

White Goods Large electrical devices for domestic use, such as
fridges, freezers and dishwashers. Used to be cased in white
enamel, hence the name

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