D2531 Marketing-Toolbox en PPT2007-2010

Marketing Toolbox
Subtitle, Autor or Date
Basics
Definitions / Explanations
Marketing Orientation
Orientation in companies which strongly influenced the development of marketing
Technological Orientation
(innovation, perfectionism)
Marketing Orientation
(market share, competitive advantage)
Employee Orientation
(satisfaction, qualification)
Customer Orientation
(customer satisfaction, customer loyalty)
Efficiency Orientation
(optimization, cost reduction)
Financial Orientation
(result, revenue, profitability, liquidity)
Social Orientation
(environment, public, image)
Quality Orientation
(improvement, ISO-certification, quality price)
Marketing Triangle
Company, employees and customer
Company
Marketing Triangle
Employee
interactive marketing
Customer
Marketing - Simple Model

Model of a simplified marketing system and connection between provider and market
Communication to Market / Information
Provider
Provider of the product or service
Delivery of Product / service
Market
Overall market of customers and interested parties
Transaction
Payments
Feedback to provider / information
Marketing - Perspectives
Differentiation of 3 perspectives: The entrepreneurial approach (philosophy), instrumentation (technology) and management concept
Marketing
Philosophy
Orientation of the marketing to the most optimal satisfaction of all customer requirements
Technology
Orientation of the marketing to the most optimal effect of marketing instruments
Management
Orientation of the marketing to the most optimal process development, analysis, planning, steering and controlling of all marketing activities
Development Phases of Marketing

Development phases in the last 100 years
Production orientation Sales and distribution orientation Market and competition orientation Customer / individual orientation
market oriented company management (marketing management) customer relationship management (CRM) marketing implementation
marketing implementation
marketing mix
marketing mix
marketing mix
product policy
product policy
product policy
price policy
price policy
price policy
communication policy
advertisement
distribution policy
sales
sales
distribution policy
distribution policy
mix extension
1900 - 1920
approx. 1920 - 1950
approx. 1950 - 1980
approx. 1980 - 1990
since 1990
Development of Marketing
Steps of development of Marketing
Product orientation
Pure production due to popular demand (eg postwar period)
Market orientation
Specialization on individual needs and market segmentation
Environment orientation
Response to environmental, political, technological or societal changes
Network orientation
Web 2.0, social networks, Word of Mouth
2020
2021
2022
2023
Competition orientation
Emphasis on unique selling points (USP)
2024
2025
2026
Sales orientation
Change from the Production to distribution
Dialog orientation
Interactive design of communication through the internet, e-mails
Marketing Pyramid
Pyramid with (higher-ranked) marketing objectives on the top
Marketing objectives
Marketing strategies
Marketing instruments
Product- and program policy Price and condition policy Communication policy Distribution policy
Marketing - Classical vs. Alternative Marketing

Overview of some marketing tools Classical Marketing
Public relations Guerilla marketing Viral marketing
Alternative Marketing
Outside advertisement / Billboard advertisement
Search engines Mobile marketing
Direct marketing
Radio / TV / Movies
Sales promotion
Print media
Product placement Fairs / Exhibitions
Classical advertisement
Sponsoring
Event marketing
Marketing Objects
Differentiation according to different marketing objects and approaches
Marketing object 1
Consumer goods marketing
marketing of products for private usage
Investment goods marketing

marketing of products for occupational use
Service marketing
marketing for immaterial goods and service performance
Non-Profitmarketing
marketing for organizations without gainful intent
Social marketing
marketing of a social idea (no organization)
Destination marketing
marketing of an explicit region (tourism)
Trade marketing
marketing of a trade and sales company (retail)
Marketing - Sales Markets

Differentiation according to 3 sales markets and the participating partners
Marketing
B - to - B
Business-to-BusinessMarketing
(company customer) Marketing of one company to another company (i.e. production machines)
B - to - C
Business-to-CustomerMarketing
(private customer business) Marketing of a company to a private house old (consumption goods)
C - to - C
Customer-toCustomer-Marketing
Marketing of a private household to another private household (i.e. private sales on ebay)
Characterization of Markets - Types of Goods

Types of assets and their usage situations
Consumer Goods
Consumer goods (e.g. food) and durables (e.g. cars) satisfy immediate needs, and are directly put into use by the buyers (consumers).
Capital Goods
Are used by production companies to produce further goods. Buyers are usually establishments or public companies.
Services
Immaterial benefits, often incurred only at the time of consumption. The customer is part of the performance / service.
Mass-Market (B2C)
Single, clear identifiable customer (B2B)
Services for customer with a high use of resources
Market Segmentation
Scientific level of consideration
Market Capture
Market Segmentation
Market Processing
Explanatory models of purchase pattern
Acquisition of information
Information processing
Selection of segments
SegmentsSpecific use of instruments
Consumer-oriented approach Method-oriented approach Management-oriented approach
Market Segmentation
Objectives, methods, strategies of market segmentation
Lead Structure
Approaches of Market Segmentation

behavior-oriented
Reasons/ Meaning
OBJECTIVES
method-oriented management-oriented
STRATEGIES
Quantitative
Qualitative
Market Definition
Hierarchy representation for the preparation of a market analysis of companies with a broad range of products or services
Strategic management
Definition of markets
Overall Market
Market 1 (Description)
Strategic business units
SBU 1
SBU 2
SBU 3
Marketing
Segment A Sub Market A Sub Market B Sub Market C Segment B Segment C
Market Analysis/ Competition

Situation analysis
Situation Analysis - Search Fields

Search fields for the identification of potential chances and risks
Environment analysis
Frame conditions: political social technological economical ecological
Market analysis
Competitor
Stakeholder: employees investors unions etc.
Supplier
Company analysis
Customer
Substitute products
Market Analysis - Strategic Situation Analysis

Analysis of market participants, political and legal situation and social, technological, geographical and economical aspects
Own organization Relevant competitor Supplier, Sales mediator and potential customers Legal, social and natural environment
Potential analysis
Competition analysis
Market analysis
Environment analysis
Strengths and weaknesses analysis
Opportunities and threats analysis
SWOT Analysis
Interpretation of data of strategic situation analysis are the foundation of the following marketing decisions
Marketing - Situation Analysis

Check list with basic questions to clarify the initial situation
What is the market where the company operates and how can it be defined and narrowed?
Who is involved in the sales process? What determines the behavior of these groups?
1 2 3
4 5
Which competitors are currently operating on the market?

Do public interest groups or any external stakeholders have an impact on your company policy? What is the actual-situation of the company? What are your strengths and weaknesses?
Market Analysis - Company Analysis

Corporate philosophy (1/6)
Corporate policy
Insert description and notes in key words.
Corporate vision
Corporate idea

Corporate philosophy (2/6)
Corporate identity
Corporate culture
Corporate objectives

Corporate potentials (3/6)
Development
-research/ development -know how -patent -development status
Marketing
-marketing concept -standards -brands
Production
-technology -capacity -productivity

Corporate potentials (4/6)
Procurement
- procurement systems - supplier relationship - purchasing power
Financing
-capital requirements - investment intensity
Company
-organization -value chain

Corporate resources (5/6)
Material resources
- installations - interior -equipment
Financial resources
- liquidity -reserves -possibilities to raise capital
Employees
-staff situation - education - staff development
Managers
- quality of leadership
IT-equipment
- sort
Other
- business experience
- age structure
- actuality
- complexity

Company position on the market (6/6)
Markets
-overall and partial - market share -market and sales profile
Advantages
- product and performance advantages - innovations - protection against replicates
Product mix
- revenue - profitability - age profile
Cost- Price
- price per piece- market price relations - value chain
Potential Analysis
Inspection of the position of own company on the market according to the following factors
Image
brand image of company, separate product brands
Market
positioning of company, market share of provider of product brands
Capital
capital resources, creditworthiness
Employees
number of employees, structure, qualification and motivation
Location
location quality, infrastructure, business locations, distribution in target area
Sales
distribution organization
Partner
relation to cooperation and distribution partners
Customer
number of customers, customer potential, customer retention (loyalty vs. fluctuation)
Market Analysis - Strengths and Weakness

Strengths and weaknesses profile
Own company Other Company
Weakness Criteria Product range (quantity) Product range (quality) Price Service (general) Availability by phone Customer satisfaction Supplier satisfaction -3 -2 -1 +1
Strength +2 +3
Competition Analysis
Example
Characteristic
high low
1 Quality Price Performance Usage Image Environment-friendliness Design Additional functions

Your product Competitors product
Marketing - Representation of Market Volume

Representation of market volume and its development as a diagram
Market potential
Number of possible customer or amount if all customers are prepared to buy (at the given price) Sales volume or sales of a provider / company
Market volume
Market share
Market capcity
Total number of possible customer or max. amount of products that can be used consumed / (if price does not matter)
Actual sales or sales for all vendors at the market
Saturation =
Market volume Market potential
x 100%
Characterization of Markets - Sizes

Relationship between market potential, market volume and market share to assess the market attractiveness
Market Volume
Total sales or a turnover of an industry including all competitors Relative Market Share = Company A Market Share A Market Share B
Market Share
Market share of a company and the ratio of sales / turnover of the company to the market volume
Relative Market Share Market Potential

Capacity of the market up to market saturation Ratio of Market share of a company to the market share of the strongest competitor
Market - Description/ Term Definition

Terms to describe markets
Market potential:
equates to the absorption capacity of the market (market capacity) or the volume of the possible deductable amounts of one product at a certain market.
Market volume:
realized / scheduled sales or revenue for a similar product for example for one year. Clearly more specific than the market potential.
Market potential
Marketexhaustion
Sales / Revenue volume of the company
Absolute market share
Relative market share
Market volume
Market exhaustion:
percentage value that indicates to what degree the possible customer of a product would consume it. (Market limit used as a gauge for future market growth)
Absolute market share:

market share, that the company has realized on a certain market (sales or revenue)
Relative market share:

indicator of market position by relating their own sales to the sales of its largest competitor in the industry.
Market Analysis - Environment Analysis

Placeholder for your own Subheadline
Calculation Colleague gen. +/2 Lead Engineer Dep. 1 Construction +/2 +/3 +/2 FTL Dep. 4 +/2 +/3 +/2 o/0.5 Customer gen. DB
Design engineer Dep. 4
Design engineer Dep. 4

o/1 +/3 o/1 Customer gen. /0 +/1
k/0.5 o/1
Intranet
Internet
+/1 Design engineer Dep. 4
Supplier
Attempt
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Feedback Calculation
Customer Reference
Quality of connection + perfect o normal K critical Frequency of connection 3 intensive 2 medium 1 low 0 nonexistent
Opportunities - Threats-Analysis
Analysis about the companys opinion on environmental changes and where adjustments need to be done
Criteria
Marktsituation Market structure Market potential/ market volume Customer structure Competitor Environment / Frame conditions Laws / Taxes Society Ecology Technological Development Strength Product range Prices Organization / Management Cash Flow Weaknesses Locations Marketing performance Innovation ability Financial resources
Opportunities
x x
Threats
x x
x x x x x x x x
x x
x x
Chance-Risk-Analysis
Chances and Risks with possible development outside the company and their influence on marketing strategy and business planning
Opportunities
new product development in own company own innovations new target groups and buyer levels opening new markets in other countries increasing demand recovery of the overall economy loosening or changing of relevant laws currency exchange revenues on foreign markets through positive change of exchange rates
Threats
development of a new product by the competitor innovations of the competitor development of new competitors development of new competitive suppliers in other countries development of over-production weakening of the overall economy limited measures and legislative processes exchange rate losses on foreign markets through negative changes of the exchange rate technological development / change of base technologies
Strength and Weaknesses Analysis

Analysis of internal Company Resources
Relevance Sector Success Factor 1
Range of service Pricing Image Market share
Notes 2 3 4 5
Market growth
Sales development Distribution Sales network Advertising
Marketing and Sales
Complaint management Adherence to schedules Customer structure Order processing Sensitivity to economic situations Customer service Market cultivation Sales representatives Market research Sales planning Customer loyalty
SWOT-Analysis
Enter your subheadline here
Strength
Weaknesses
External Analysis
Opportunities
Threats
Gap Analysis
Revenue targets and their development in the course of time
Target value i.e. revenue
Strategic gap
Development limit New business
Potential core business
Operative gap
Core business
Present
Planning horizon
time
ABC-Analysis
ABC Analysis is methodology that gives a quickly and simple review of assortments of products in retail, wholesale or manufacturing businesses
100%
80%
Turnover / Value in %
60%
40%
20%
Range of Products / Quantity in %

0% 0% 20% 40% 60% 80% 100%
ABC-Analysis
Placeholder fr Ihre eigene Subheadline
No. 1 2 3 4 5 6 Percent Customer Customer 5% Placeholder 10% Placeholder 15% Placeholder 20% Placeholder 50% Placeholder 100% Placeholder Sales 2010 (in Dollar) 100,000 95,000 90,000 85,000 30,000 300 610,400 Commulated Sales 16,4% 31,9% 46,7% 60,6% 82,3% 100%
Quality and Price Positioning

Relative positioning of different product categories
high
Brand article Relative quality
No-names
Trademarks
low low
Relative price
high
Seller / Buyer's Market - Features

Comparison and limits of the characteristics of the seller and buyer's market
Activities of supplier Activities of demander
Features
Economic development stage
Sellers Market
Scaricity economy
Buyers Market
Affluent societies
Ratio of supply and demand

Bottleneck area of company Primary efforts of company
Demand> Supply
(Excess demand) Demand more active than provider
Supply> Demand
(Surplus) Providers more active than buyers
Procurement and / or production
Turn over
Rational extension of procurement and production capacity
Awakening of demand and creation of preferences for their own
Market Attractiveness - Competition Advantage Portfolio 1/3

Analysis of portfolio categories according to the criteria lists
Evaluation of market attractiveness
Criteria Weigh. Coefficients 0 0,1 0,20,8 0,9 1 Index Criteria Weigh. Coefficients 0 0,1 0,20,8 0,9 1 Index
1. Market growth 2. Market quality

- Profitability of the branch
- Tolerance for price policy - Technological level - Protectability of know how - Intensity of investments - Intensity / structure of competition - Number / structure of potential consumer - Entry barriers - Distribution requirements - Variability of competition conditions - Substitution possibilities
3. Energy / Accommodation
- interference of accommodation - influence of profitability through price incensement - existence of alternatives
4. Environment situation
- Economic dependency - Inflation effects - Dependency on legislation - Dependency on public - Risk of public interference - Pollution of nature
TOTAL
1,0

Analysis of portfolio categories according to the criteria lists
Evaluation of market attractiveness
Criteria 1. Rel. market position
- Market share - Size and financial power - Growth rate - Profitability - Risk - Market potential
Weigh.
Coefficients 0 0,1 0,20,8 0,9 1
Index
Criteria
- Pot. increase of productivity - Environmental friendly production -Delivery conditions - Sustain market share with given supply conditions - Cost situation with energy and raw material supply
Weigh.
Coefficients 0 0,1 0,20,8 0,9 1
Index
3. Relative R&D potential

- Status of research - Development compared to market position - Innovation potential
2. Rel. product potential

- Process efficiency
- Cost advantage - Innovation ability - License relations - Adaptability - Sustain market share with capacity - Location advantage
4. Rel. employee qualification

- Professionalism and culture
- Innovation climate
- Quality of management systems
TOTAL
1,0

Display of portfolio graphic according to results of prior criteria lists
low medium high
A
Market attractiveness
high
Investment and growths strategies
Selective strategies
medium
C
Relative competition advantage
low
Absorption and divestment strategies
Market Segmentation
Different types and levels of market segmentation
Segmentation
Undifferentiated marketing Mass marketing
Products, distribution and advertisements are designed the same for all customers. Difference between separate segments are being ignored and the market is served with one offer.
Differentiated marketing Segment marketing

High degree of market coverage serves multiple or many different sub markets. Further sub divisions: 1. Concentration to only one segment 2. Selective specialization 3. Product specification 4. Market specialization 5. Complete segment coverage
Concentrates marketing Nische marketing

High specialization and concentration on special sub markets or clearly defined customer groups. Niche providers are highly specialized and pursuit a secure market position in procurement.
Micro marketing Individual marketing

Its the highest degree of segmentation and external opposite to mass marketing. Segmentation of market down to the individual customer by increasing individualization tendency and technical progress. Customized mass production (Mass customization / One-to-One-marketing)
Product variety marketing

Prices, distribution and advertisement measures are developed for different target groups. Orientation according to target groups creates better approaches for the determination of market chances.
Broad target group approach
Narrow target group approach
Segmenting-Targeting-Positioning (STP-Model)
Three steps to target group oriented marketing
Market segmentation
Target market determination

Development of assesment guidelines for the determination of attractiveness. Finally the selection and concentration on one or more segments.
Positioning
Development of a lasting competition position and determination of tasks and performance program for selected target segments.
Determination of segmentation variables/ segmentation of Market
Development of resulted segment profile
3
Zoning of market in clear defined target groups / Customer groups with own products and marketing-mix.
Estimation of attractiveness of each Segment
Selection of target segments
Development of possible positioning concepts
6
Time
Selection and Communication of positioning concept
Segmenting-Targeting-Positioning (STP-Model)
Three steps in the process of market segmentation
Segmentation
Determination of segment variables Definition and segmentation of the market Development and description of resulting segment profiles
Targeting
Positionierung
Analysis of estimation of attractiveness of each segment

Selection of target segments
Designing of a possible positioning concept

Selection and communication of positioning concept
Customer Segmentation
Differentiation and description of target groups
Customer segment X
Characteristics: Core motive:
Feature A
Customer segment Y
Characteristics : Core motive:
Feature B Individual
Customer segment Z
Characteristics : Core motive:
Market Entry Barriers

Institutional and behavior dependent market entry barriers
Market entry barriers
Institutional market entry barriers
Tariff barriers Tolls Non-tariff barriers Import quotes
Behavior dependent market entry barriers

Market side barriers Demand behavior Company side barriers Information availability Psychological distance of management
Capital flows limitations
Language / culture
Minimum /maximum prices
Distribution systems Administrative constrains
Local content regulations
Norms / standards
Self limitations
Values and Lifestyles (VALS)

System of lifestyle-typology of consumer
VALS Typology
Values and Lifestyles (VALS)
Extroverts
Achievers Emulators Belongers
Notleidende
Sustainers Survivors
Introverts
Socially-Conscious Experimentals I-am-mes
Competitive Advantage
Representation of the thre influencial factors customers, organization and competition
Expectation on the product and benefit
Competitive advantage
Market Research - Process Scheme

Separation of market research process in five phases
Definition Phase
Problem definition and development of survey targets Topic of research
Data Collection Phase
Documentation Phase DokumentationsPresentation of results phase

Research report distributer Prsentation der Ergebnisse Forschungsbericht Verteiler
D1
D2
D3
D4
D5
Designphase
Fixation of target groups Selection of research methods and instruments Organization (time/cost) Sources for data
Data analysis phase

Evaluation of data Interpretation Prognosis
Marketing decision
Recommendations that influence decisions
Sales Orientation vs. Marketing Orientation

Comparison
The sales orientation
Initial point Main focus on Measure Target
existing production
existing products
advertisement, sales promotions
profit through high revenue
The marketing orientation

Initial point Main focus on Measure Target
long term profit expectation through sustainable satisfaction of customers
the markets
actual customer requirements
integrated marketing approach
Competition Strategies
Differentiation between cost leadership, time leadership and quality leadership
Cost leadership
Causing lower costs than competitor i.e. though production of large amounts and low priced procurements. Mostly this doesnt require a large market share.
Time leadership
Choice of time of market entry. Previous development time, handling time and production time are important here.
Quality leadership
Determination and implementation of technical improvements and product improvements with the target to always provide the best quality on the market.
Competitive Advantage - 5 Principles

A competitive advantage over the competition is a superior performance or property
A distinction is made between five principles:

Principle of survival
At least one strategic competition advantage must be present (long term).
Opportunity principle
Creating competitive advantages through important competitive parameters. (the more the greater the chance)
Perceptual principle
Only competitive advantages that the customer subjectively perceives count (not technical advantages).
Concentration principle
At least one strategic competitive advantage must be present (long term).
Consistency principle
Focus on strategic competitive benefits which are most important for the customer.
Competitive Advantage - Advantage Matrix

Representation of the relationship of competitive advantages and quantities
Volume has no /or small advantages Volume has great advantages
Many competitive advantages
Niche business (Restaurants, consultants)
Special business (Journals, instruments)
Only a few competitive advantages possible
Patt-business (Basic materials chemistry, standard paper)
Volume business (PC's, IC's)
Representation of coherences between competitive advantages and amounts
+ Cost leader Benefit leader
Profitability
-
Cost leader and benefit leader require singularity characteristics otherwise they lose their leading positions.
Marketing Models
Established models
Competition - Driving Forces

The five driving forces of sector competition (according to Porter)
Potentially new competitors

Threat of new competitors
Bargaining power of suppliers
Suppliers
Competitors in the industry Rivalry among existing companies

Bargaining power of buyers
Buyer
Threat of substitution products or services
Substitution products
Marketing - 4P-Model
Product, Price, Place, Promotion
PRODUCT
PRICE
PLACE
PROMOTION
Marketing - 4P-Model
Product, Price, Place, Promotion
5P-Model
Expansion of the 4P model with the aspect of Personnel
PRODUCT
PRICE
PLACE
PROMOTION
PERSONNEL
5P- Model
Expansion of the 4P model with the aspect of Personnel
Marketing 4Ps
Enter your subheadline here 4Ps Product
Main usage
Side usage Additional usage Brand Content Quality Packaging
Price
Conditions
Rebate Discount Leasing
Promotion
Advertisement
Sales Sponsoring Sales promotion Event PPR
Place
Strategic distribution/ sales
Physical distribution/logistics Location
Marketing Mix - 7P
Classical and new instruments
Product policy product Process policy process
Classical instruments New instruments
Price policy price
Distribution policy place
Equipment policy physical facilities
Personnel policy personnel
Communication policy promotion
Marketing Mix
Example with individual factors
Slogan
Brand name
Logo Product design / packaging
ad campaign
Sales Training
Brochure / Corporate design
Press conference
Brochures / Product presentation
Reseller discount
Businesspaper
Give-Aways
Website
Marketing Mix (4Ps)

Components of the marketing mix
Product policy
Product innovations Product improvements Product differentiation Marking Naming Service performance Assortment planning Packaging
Price policy
Price Price deductions Rebates and discounts Delivery conditions Payment conditions
Communication policy
Media advertisement Sales promotion Direct marketing Public relations Sponsoring Personal communication Fairs and exhibitions Multi-media communication Employee communication
Distribution policy
Distribution systems Sales organs Logistic systems
Marketing mix
Sub-markets and customer groups
Service marketing (from 4Ps to 7Ps)

Comparison of 4Ps and 7Ps
4 Ps of the classical consumption goods marketing 7 Ps of the service marketing
advertisement product positioning advertisement price
product
employees
positioning
price process management
physical facilities
AIDA- Model
Step model in 4 phases (Phases could variy)
A
Attention
Attract the customers attention
I
Interest
The customer is interested in the product
D
Desire
The desire for the product is awakened
A
Action
The cusomer probably purchases
AIDA - Action Principle

The stage model includes four phases the Customer goes through in order to make the purchase decision
Physical reaction
(economical)
Action
The customer buys the product The desire for the product is awakened (demand)
Desire
Psychological reaction
(pre- economical)
Interest
The customer is interested in the product

Attention of the customer for the product is excited
Attention
Marketing 3Cs Triangle

Customer
Distributors
Clients
Competitors
Suppliers
Diamond-Model - National Competitive Advantages

Thesis to assess the competitive abilities of states in terms of individual industries (according to Porter)
Strategy, structure and competition
Coincidence
Factual conditions
Demand conditions
Related and supporting industries
Government
Porters Five Forces Analysis

New Competitors Threat of new competition
Bargening power of supplier
Competition on relevant market = rivalry among competitors
Bargening prower of customer
Substitution products = threat of substitution
Five Forces
Five (+1) competitive forces according to Porter (supplement through stakeholder)
Potentially new competitors
threat through new competitors
Potential further stakeholder

Potential bargaining power and the ability to intervene in the industry events
Competitors/ rivalry between industry suppliers
Suppliers
bargaining strength of suppliers
Customer
bargaining power of customers
Substitute products
threat through substitute products or services
S-Curve Concept - Life Cycle

Representation of the life cycle of technology in the course of time
Basic technology
Pace setting technology

time
development phase
growth
maturity
age phases
Life cycle of a technology
Marketing Strategy / Concept

Strategic marketing / concepts
Differentiation - Strategic Marketing

Position of the strategic marketing between strategic management and marketing management
Conception Phases of Marketing

Situation Analysis
1
Marketing Control
Marketing Objectives
Implementation / Realization
Customer
Marketing Strategy
Marketing Instruments/ Marketing-Mix
SBU-Planning (Strategic Business Units)
Marketing - Communication Policy

Ten-step model of marketing communication
Measure effect Apply communication measures Pre- test, Control of effect, return result to step 7, to apply improvements Plan separate communication measures Budgeting and media selection (selecting advertising media)
Step 10
Step 9
Return result at 5-9
Step 8
Improvements and corrections
Step 7
Step 6
Develop communication strategy
Step 5 Step 4 Step 3 Step 2 Step 1
Define communication targets and target groups
Derive marketing targets
Agree on company objectives
Situation analysis and prognosis for the company
Four Codes of Brand Communication

Communication model that implies that there are three more codes next to language responsible for concrete meaning Meaning
Language
Style
History
Tell stories
Symbols
Protagonists
Sensorics
Sensorial experience
Rhetoric
Wording
Show episodes
Figures
Places of action
Stimulation of senses
Noises / colors Shapes / haptics
Only the interaction of these four Codes makes the brand communication sustainably successful
Core Competences / Product Pyramid

Core competences as a base of the product pyramid, which are not easily adapted by other companies and therefor improve the benefit of the end product
End product
Core product
BASE
Core competences
valuable rare difficult to immitate not substitutable are strengthened the more they are used
Marketing Strategy - Influencial Factors

Influencial factors
Organizational objectives and resources
Attitude to change and risk
Marketing Strategy
Competitor strategies
Market structure and opportunities
Marketing Strategy
Marketing as market-oriented business management / business strategy
Procurement Strategy
Research and Development Strategy
Business Strategy
Production Strategy Quality Strategy
Human Resources Strategy
Elements of Marketing Concept

Connection between the separate elements and their logical process structure
Wishes, requirements and demands
Offer of products and services
Elements
Markets Customer benefit and customer satisfaction
Exchange, transactions and relations
Market Areal Strategy

Determination of geographic coverage Market areal strategies
Local
Regional
National
International
Multinational
Global
Process of geographic expansion
Market Simulation Strategies - Stuck in the Middle

Placeholder for own Subheadline
Performance IV: Advantage strategy high Outpacing strategy II: Preference strategy
Outpacing strategy Stuck-in-the-Middle low Security distance I: Over reaching strategy high Price
III: Price / Amount strategy

low
Marketing Strategy - Strategic Triangle

Integrated marketing strategies include the strategic triangle of company, customer and competitor
Customer
Competitve advantage Own Company Competition
Marketing Strategy - Strategic Pentagon

According to Ohmae 1992
Customer
Government
Currency
Company
Competitor
Innovation - Demand Pull and Technology Push

Interplay between both strategies
Company
Market
Media Strategy - Dimensions

Analysis and visualization of the six most important parameter of media strategy
Percentage of the reached target group
Range
Design of advertising (for instance: color) and their placement Frequency of addressing the target persons
Impact
Contacts
Size, formats, advertising and spot lengths
Dominance
Intensity
The number of applied media (Media mix)
Repetition
Frequency and timely intervals of the contacts
Marketing Strategies
Strategies according to individualization degree and customer relation
Level of individualization of a product
Customized Marketing
high
Individual Marketing
customer individual market development
individualization of product
Mass-Marketing
low
Relationship Marketing
Individualization of customer relationship
standardized market development
low
high
Individualization degree of customer relationship
Strategic Marketing
Questions and Marketing Where?
In which market is the company active?
How?
What is the central orientation of the marketing strategy?
When?
When will the company become active on the market?
Concentration of company's activities on particularly attractive and promising markets
Conscious selection of markets and definition of future strategies with long-term orientation
Determination of market entry time in compliance of the previous development and production effort
Marketing Orientations
Orientation of the company on the turnover market
Starting Point
Products/ Performance
Medium
Expansion / rationalization of production and procurement
Objectives
Profit on increased volume
Produce as much as you can.
Production orientation (sellers market)

Sales-political instruments Profit on accordant volume
Products/ Performance
Write off what youve produced.
Sales orientation (saturation tendency)

Marketresearch Customer wishes Bundle of marketing measures Profit on long-term satisfaction of customers
Produce what you can write off.
Market orientation (buyers market)
Cost Leadership
The strategy of a company to reach sustainable competitive advantage be low costs is differentiated in 8 methods
Economies of scale
Economies of scope
Experience effects
Economies of learning
Product design
Process design Residual effects the operational effectiveness
Capacity utilization
Input-Costs
Cost leadership
Differentiation Strategy
The strategy of a company to differentiate themselves positively from the competition from the customers point of view is separated in 6 different methods
Price
Image
Support
Design
Quality
Not differentiated
Differentiation Strategy
Market Field Strategies according to Ansoff

Ansoff-matrix with the representation of product-market-strategies
Markets Products/ Performance
Existing
New
Market penetration
Existing Market presence Market suppression
Market development
Internationalisation Market segmentation
Product development
New Product innovation Product differentiation
Diversification
Vertical diversification Horizontal diversification Lateral diversification
Market Area Strategies

Basic principles for market areas / market development
International Strategies
Multinational market International market World market
National Strategies
Local market Regional market Cross regional market National market
Marketing - STP-Strategies
Strategies of market davelopment
S
Segmenting
Market segmetation, segmentation criteria to divide the markets into clearly defined customer groups
T
Targeting
Segment evaluation, target market determination and target group determination. Selection of the most attractive market segments
P
Positioning
Positioning versus Differentiation. Establishment of a competition position in each target segment. Selection and communication of a concept
Matrix for the devision and basic concept of competition strategies
Overall market
Degree of competition
Differentiation strategy performance/quality uniqueness
Cost leadership price/costs standard product
Sub-market
Differentiation focus specific need relatively price-inelastic
Cost focus limited need price elastic
Performance advantage
Cost advantage
Overall market
Degree of competition
Strategy of quality leadership
Strategy of aggressive cost leadership
Strategy of selective Quality leadership

Sub-market
Strategy of selective Cost leadership
Performance advantage
Cost advantage
Strategic advantage Strategic target object
Singularity from customers perspective
Cost advantage
Industry wide
differentiation
Extensive cost leadership
Limitation to one segment
Focusing
Market Field Strategies according to Ansoff

Ansoff-matrix with the representation of product-market-strategies
Product Market Existing New
Existing
Market penetration
Market development
New
Product development
Diversification
Norm Strategies - McKinsey/GE

Marketattractiveness high
Specializing in few strength Overcoming weaknesses Retreat when missing signs for continuous growth
Fight for the market leadership Usage of strength Strengthening of poorly performing areas
Maximum investments Concentration on preservation of existing strength
Invest Develop
medium
Search for low risk expansion possibilities Rationalizing of internal processes
Defending of position
Concentration of investments of attractive and low risk areas
High investments in attractive segment Defense against competitors Increasing productivity
Minimizing of investments
Devest Develop
low
Sales with increasing profits Reduction of fixed costs No investments
Defense of position in most profitable area

Improvement of product line Minimizing investments
Realization of profit
Concentration of most attractive segments Defense of existing strength
Selective action Profit priority
Competitive strength
low
medium
high
Norm Strategies - McKinsey/GE

Matrix of norm strategies (threefold division of axis )
High
Investment or retreat
Investment
Keep market leadership
Market attractiveness
Medium
Absorption and gradual divestment
Transition
Growth
Low
Divestment
Absorption and gradual divestment Medium
Absorption
Low
High
Relative competitive advantages
Market Growth
Representation of market sizes, like market potential, market volume and market growth in the course of time
Amount / Value
6
5 4 3 2 1 0 Period 1
Market Potential
Sales Volume Provider A Sales Volume Provider B Sales Volume Provider C Sales Volume Provider D
Market Volume
Time
Period 2
Period 3
Period 4
Outpacing-Strategie
Increase in profitability by maximizing quality (high customer benefit) and cost reduction
high
Cost reduction Offer differentiation
Target of outpacing
Quality/ Customer benefit Innovator
low expensive
Follower
Price / Costs
cheap
Innovation Strategies - Innovation Pentagram

A tool of innovation management
Motive: Which motive targets the innovation?
Business system: With what kind of business system is the innovation implemented?
Advantage: What kind of advantages does the innovation provide?
Timing: When are we applying these measures?
Revenue model: How is the revenue generated?
Marketing Concepts - Dimensions

Platzhalter fr Ihre eigene Subheadline
Internationalization Strategies
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Integration advantage
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high
3
Global marketing
4
Transnational marketing
low
1
International marketing
low
2
Multinational marketing
high
Differentiation advantage
Marketing Planning / Objectives
Marketing Management - Process

Representation of the ideal type process of marketing management
Analysis phase
Marketing situation analysis
Determination of market segments and marketing targets
Four classic phases
Definition of marketing strategy
Planning phase
Determination of marketing budget
Determination of marketing measures
Implementation phase Control phase
Implementation of marketing measures
Control of marketing results
Marketing-Planning Process
Marketing as a process devided in the five steps of market analysis, marketing objective, strategy, marketing instruments and success control
Market analysis (actual-condition)
Where are you? What is the initial situation? Wher do you want to be?
Marketing targets (establish objectives)

Marketing strategy Marketing instruments Success control
How will you reach your objectives?
Which instruments will be used?
Analysis of the difference between target and result
Marketing Targets
Economic and non-economic objectives of a business
Economic marketing targets
Close connection to general economic company objectives
revenue / profitability profit contribution / Return-on-Investment growth (revenue/sales/profit) rationalizing capacities security (risk distribution)
Non-economic marketing targets

Connecting to mental processes of buyer (purchase behavior)
customer retention
customer satisfaction
name recognition attitude (image / sympathie) repurchase rate level of distribution effects of knowledge strength of purchase intention
market position /market share
Goal criteria SMART

The 5 criteria that define a goal so that it can be used in project management
Specific
Objectives have to be specific and positively described.
Measurable
A goal achievement should be measurable.
Attainable
It should be attractive for the project team to reach the goal.
Realistic
The objective needs to be achievable in a realistic way.
Time-bound
The goal has to set within a time frame.
Marketing Objectives - Target Pyramid

Retention of the economic and legal independency, increasing development of flexibility Increase in sales, improvement of company image
Marketing objectives
Financial target
Price Communication Distribution policy target target target
Preparation of contract conclusions
PR- objectives
Exhibition objectives Advertisement objectives
Managing customer data, raise purchase interest, increasing popularity of brand
Marketing objctives / Hierarchical levels of objectives

Objective system in form of a hierarchy
Object of the company
Company objective
Function targets Marketing targets are function targets Instrumental target Levels of objectives and marketing instruments
CR-Marketing - Target Hierarchy

Operative and strategic main and sub objectives
Company related sub-objectives - Positioning on the market - Employee loyalty - Employee motivation - Innovation Customer related sub-objectives -Customer contribution margin - Customer loyalty - Customer satisfaction - Perceived performance quality
Profit / Yield
Marketing overall targets Costs / Productivity / Revenue / Sales
Conventional Marketing Targets

Targets for successful business
Increasing market shares

Popularity
Increasing revenues
Price segment
Improving contribution margin
Image
Customer reach Customer satisfaction Customer loyalty
Revenue
Distribution
Marketing Plan
Process to create a marketing plan
Objectives and Indicators Strategic and operational objectives Financial objectives Market-and customer-related objectives Strategy Implementation (Marketing Mix) Product and pricing policy Communication and distribution policy
1. Analysis 2. Target
3. Strategy
4. Mix
5. Control
Strategic Analysis Market and environment analysis Customer and competitor analysis
Strategy Selection and Combination Competitive strategies Portfolio strategies Positioning strategies Innovation strategies
Success Control (progress and results) Effectiveness of marketing tools Performance of the people involved Profitability of the chosen products, markets and (customer success estimation)
Marketing Management
Marketing Management Cycle

Display as 4 phases model / marketing cycle
Procurement, evaluation and
interpretation of market data
Determination of
Management Cycle
marketing objectives Development of marketing strategy
Success control of target
achievement (target-actualcomparison)
Planning and
implementation of marketing measures
Marketing Management Cycle

Display as 4 phases model / marketing cycle
Situation analysis
Customer and competitor behavior, environment trends, resources, where do we stand?
Controlling
Reference objects (products, customers, branches, etc.), early detection systems (environment development)
Targets
Competences, orientation, target segments, revenue, market share, DB, image
Organization
Development and process organization, primarily and secondary organization, key processes, qualification
Management cycle
Strategies
Product market innovation, cooperation, acquisition, competition strategy, brand
Mix
Product, communication, distribution, price
Budget
Fundraising, allotment, methods, function and overall budget
Internal Marketing
Preparation of employees about the interaction with customers by internal marketing
Customer
Optimal supplier buyer interaction
Marketing-Mix
Skills Know-How Motivation Setting Competencies
Service Culture
Employees
Internal Marketing Internal training and interactive communication Recruitment advertisement and Internal market research
Company
Integrated Marketing
Integration of marketing oriented views in all economic subdivisions of a company
Public
Public marketing Sales marketing (pull)
Suppliers
Procurement marketing
Employees
Internal marketing
Sales intermediary
Sales marketing (push)
End customer
Process orientation
Competitor
Competitive marketing
Marketing Oriented Management

Design of the organization and its interactions (functional chain)
Market orientation of company structure

Customer related effects Company success
Market orientation of managerial subsystem within the company:

personal management organization system QM system information system control system
Service offer Employee behavior
Customer satisfaction loyalty willingness to pay a certain price
Market success, economic success
Marketing Structure
Enter your subheadline here Fundamentals
Marketing Planning
Marketing Research
Marketing Strategy
Product Policy
Pricing Policy
Communications Policy
Sales Policy
Marketing Organization
Marketing Controlling
Marketing Organization - Function-oriented

Function-oriented marketing organization
Management
Procurement Production Marketing Finance
Marketing-Informations
Marketing-Operations
Marketing Research
Marketing Planning
Communication
Physical Distribution
Sales
Marketing Organization - Product-oriented

Management
Marketing product group A
Marketing product group B
Marketing product group C
Central communication
Central marketing research
Central marketing planning
Central distribution
Product group C sales
Product group C communication
Product group C market research
Product group C marketing planning
Product group C physical distribution
Marketing Organization - Customer-oriented

Management
Marketing-management for the separate customer groups
Marketing customer group 1
Prod. development customer group 2
Advertisement customer group 2
Distribution customer group 2
Market research customer group 2
Matrix Organization in Marketing

Management
Marketing columns
Public relations Marketing planning Physical distribution Market research
Advertisement Product A Product B Product C
Sales
Sales promotion
Matrix Organization in Marketing

Sales Manager
Market Research Manager
Advertising and Promotions Manager
Product Manager Product 1
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Placeholder
Funktional Sales - Marketing-Organization

Managing Director
Sales Director
Marketing Director
Sales Manager 1
Sales Manager 2
Market Research Manager
Advertising and Promotions Manager
Product Development Manager
Marketing Management - Tasks

Differentiation between three important task areas in marketing management
Market related tasks

to control the demand, fulfillment of demand, demand development and activation and reduction of demand.
Company related tasks
Tasks
of marketing management
for the coordination and avoidance of possible interest conflicts through integration of marketing in existing company organization.
Society related tasks

in respect to social responsibilities of marketing management (Economics, humanistic and ethical standards)
Marketing Management
Four central parameter of company management that need to be aligned to market and customer requirements
Which objectives need to be achieved? How should the objective be accomplished?
Strategy
Process
Market Customer
What values and norms are lead by our actions?
Culture
Structure
Which organisatorial structures secure the acomplishment of the objectives?
Marketing Management - Task Areas

Task areas in the company / environment
Participants of the commercial world
Demographiceconomic environment
Product
Technologicenvironmental environment
Distribution
Supplier
Target customer
Price
Interest groups
Sales promotion
Politicallegal environment
Competitors
socio-cultural environment
Marketing in the Company

Representation of marketing as a sub-process (function) in a company
Note: If marketing is the central bottleneck, all processes have to act accordingly (subject heading "MarketOriented Management"). By the way: Each process can be a central bottleneck.
Management processes
Management
Planning Organization Management Control
Business core processes Procurement market Procurement Production Marketing Market
Finance, F&E, personal, controlling, administration
Supporting processes
Note: Commercial companies have mainly just the two core processes Procurement and Marketing (Sales). In service companies no one speaks of production but of service performance; in technology-intensive companies is research and development usually the core process (in terms of contribution to value creation ).
Marketing control - Basic Scheme

Marketing control to varify structures, processes and results
Input / Output
Objectives Observed results
Compare objectives/ result
Consequence 1: Change and adjustments of objectives

Decisions about response
Consequence 2: Change and adjustments of current measures
Company Communication
The sum of all communications measures of a company (corporate communications)
Self image
Performance potential, abilities, benefit, intention, values
Corporate Communication
Public image
Customer, employees, partners, suppliers, public
Multi-Channel-Marketing
Display of different marketing channels
Personal Sales
E-Mail Marketing
Database Marketing
Search Engine Marketing
Multi-Channel Marketing
Direct Mail Marketing
Online Advertising
Telemarketing
Social Media
Innovation Management - Overview

Innovation strategy Innovation organization
Customer
Environment
Innovation ideas
Innovation processes
Product Planning
Value Chain (Supply Chain)

Supply chain that shows the way of all components of a product from commodity to supplier, manufacturer till customer
Supplier
Customer
Procurement
Production
Sales
Cash Flow - Product

Typical curve of the cumulative cash flow of a product
Cumulative Cash Flow
positive Investments Development Costs Market Entry Costs Prototype
Market exit
0 Break-Even-Point Technical feasibility is clarified negative Production technique is ready 1 2 3
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Market entry 4 5
Product Variation - New- and Replacement Demand

Course of the overall demand of a product by product variation
Replacement demand 1
Replacement demand 2
Change of model or variation
Product variation - Product life cycle

Theoretical course of life cycle of a product when revenue is increased by product variation
Revenue
Variant 3 Variant 2 Variant 1
Product Life Cycle

Life cycle with the representation of sales, profit and loss zones in the course of time in separate phases
Development Introduction Growth Maturity Saturation Degeneration Elimination
Sales and Profit
Revenue Profile of an Assortment

Revenue profile analysis with defense of production capacities
Revenue in %
100% 90% 80% 70% 60% 50% 40% 30% 20% I - III = Product programs
III II I
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
10%
0%
Production capacity in %
Revenue and Profit according to products

Contributions of individual product programs to sales and profit
50% 42% Sales Profit
25%
20%
18%
20%
15% 10%
Product 1
Product 2
Product 3
Product 4
Product programm
Price / Cost Management
Composition of Profit
The price is the only component of the marketing mix, which directly affects sales and profits Profit
Sales
Sales
High cost reduction potential reached
Amount
Product development /
Price
Factor with the greatest unexploited profit potential
innovation
Product line expansion product differentiation New customer groups New territories
Price Strategies
Matrix with high-price, low price and value-oriented price strategies
Low price strategies: Traditional approach with the lowest possible price for the product. High price strategies: Target specific customer through high price level.
Value oriented price strategies high
High price strategies
Price level
Value oriented price strategies: Prices of the service correspond exactly to the customer value.
Low price strategies
low low
Service/Performance (Customer value)
high
Marketing - Leaning/Experience Curve

Every doubling of the cumulated Revenue of a product results in a cost lowering potential between 10 and 30%
Unit costs
Market price
20% Decline 30% Decline
Cumulated volume and market share
Break-Even Analysis
Evaluation model to determine the sales volume required to achieve the break-even point
Cost of sales
Revenues
Total cost
Break-even sales Break-even-Point
Variable costs
Fixed costs
Break-even quantity
Quantity
Marketing / Controlling - Experience

Volume related cost reduction (cost reduction effect)
Rationalisation / standardisation
Learning effects
(knowledge collection)
dynamic
Technical development
experiences
Economies of scale
static
Favorable procurement
Degression of fixed costs
Marketing Strategy - Cost Factors

Cost factors that should be considered in a marketing strategy
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Insert your own text here
Marketing Strategy
This is a placeholder text Placeholder for text
Financing
Placeholder for your own text
Price Differentiation and Profit Potential

Exhaustion the profit potential through price differentiation
Sales
Lost profits
Your sales
B
Your profits
A
Unit cost
C
Your price
Price
Types of price differentiation

4 types according to various characteristics of differentiation
Customer-related price differentiation
Demographic characteristics: age sex size of household Socio-economic characteristics: income profession education business Psychological characteristics: lifestyle personality
Regional price differentiation

Different prices in two or more regions or countries -> By partitioning the markets of each other (clients cant obtain market overview)
Temporal price differentiation

Customers pay different prices for the same performance as a function of the day, week or year
Usage-related price differentiation

Price differentiation according to applications such as for example Fuel oil for heating / diesel for motor vehicles -> Difficult to implement because its rarely seen in practice
Distribution / Sales
Marketing - Communication Instruments

Comparisson of the classical (above the line) and the non-classical (below the line) communication instruments
Above The Line (ATL) Classical marketing
Classical advertisement Print media Radio / TV / Movies
Below The Line (BTL) Alternative marketing

Sponsoring Event marketing Exhibitions / Trade fair
Outdoor advertisement / Billboard advertisement

Public relations
Product placement
Promotions
Direct marketing
Mobile marketing Online marketing / Search engines Viral marketing / Guerilla marketing further instruments
Advertising Measures
Advertising types in classic media and online
Classic Media
Direct mail Events
Online-Medien
Affiliate - program Banner campaign
Movies
Posters
E-Mail marketing
Keyword advertising
PR
Print media
PR
Mobile marketing
Sponsoring
Telephone/Fax
Sponsoring
Product serarch engines
Teletext
TV & Radio
Teletext
Marketing - Communication Instruments

Comparisson of the classical (above the line) and the non-classical (below the line) communication instruments
Classical advertisement Print media Radio / TV / Movies Outdoor advertisement / Billboard advertisement Public relations
Above The Line (ATL)

Classical marketingrecognizable for everybody
Below The Line (BTL)

Alternative marketingmainly visible only for targeted groups
Sponsoring Event marketing Exhibitions / Trade fair Product placement Promotions Direct marketing Mobile marketing Online marketing / Search engines Viral marketing / Guerilla marketing
Purchase Decision Process Phases

Graphical representation of the five phases of an extensive buying decision process (real purchasing decision)
Demand or lack recognition (motive) Information search offline / online
Purchase Decision
Evaluation, feedback, service
Acquisition decision, if the necessary purchasing power is available.
Testing of alternatives regarding suitability and satisfaction of the purchase need (requirement / demand)
Diffusion model by Rogers

Distinction of customers for their willingness to adopt a new product
Adopter 2,5% 13,5% 34% 34% 16%
Innovators (Pioneers)
Early adopter
Early majority
Late majority
Straggler
t-2
t-
t+ Adoption time
Pyramid of Needs according to Maslow

Representation of hierarchies of different levels of needs
Selfrealization Need for recognition
Adventure, independence Power, status, recognition
Social needs
Security needs Basic physiological needs
Love, friendship, membership Protect the health, Protection of belongings

Eating, drinking, sleeping, sex
SOR- Model according to Howard & Sheth

Stimulus-response scheme with assumptions about perception and information processing (learning effects) S O (organism) R
(stimulus)
Input variables Information from commercial sources
quality price peculiarity service availability stimulus ambiguity search behavior security
Hypothetical constructs
Perception constructs Learning constructs
(response)
Output variablen purchase
intention to buy
intention to buy attitude brand knowledge
Einstellung
Information from social sources

family friends and
attention
attention motives electoral criteria brand knowledge
acquaintances
colleagues
perceptive distortion
satisfaction
Procurement Center Model

Roles in the purchase decision-making in the corporate sector
Gatekeeper
Secretary
Decision maker
Manager
Buyer
Employee
User
Employee
Influencer
Management consultant
Gatekeeper
Information
Decision maker
purchase decision vendor selection
Buyer
Purchase Price negotiations,
User
suggestions for
Influencer
criteria
collection
comparison of offers decision-making
purchase
assessment after the
discounts, and quantities

delivery conditions
preparation
purchase (qualitatively)
formulation for selection and evaluation of offers
Sales Development - Options

Level 1 Level 2 Level 3
Use of existing distribution
Advantages
No surcharges
Disadvantages
No competence
Own distribution
Construction of new distribution Building up own competence Short-term not possible
Distribution options
Distribution order Faster market access No customer relations
Foreign sales
Use of distribution partners Faster market access Partners optimize first
Customer Relations
Copy Platform / Copy Strategy

Model to develop an advertising argumentation
tone, kind of approach
Promise of usage
Justification of performance of product or company
Win- Win- Situation

Six different options of interpersonal interaction
Customer interest
Win / Lose
(only one partner wins)
Win / Win
(both partners win)
optional
Compromise
which both agree on
Lose / Lose
(both are deprived)
Lose / Win
(only one partner wins)
optional
No business
Supplier interest
Customer Strategies
Offensive or defensive organization of a company's customer strategy
Customer Strategies
offensive
Win new customers
defensive
Commit existing customers
Expand market
Increase market share
Build hurdles against provider switch
Increase customer satisfaction
Market Communication - One step Model

Model of a one-step communication / information transmission
Sender
Intended signal Coded signal
Information transmission Advertising medium

Received signal
Recipient
Decoded signal Behavioral effects
Feedback
The sender has to ensure that the recipient can decode the message correctly.
Market Communication - One step Model

Model of a one-step communication / information transmission
Information transmission
Advertising message
Advertiser
Intended signal Coded signal Received signal
Customer
Decoded signal Behavioral effects
Sender
Advertising medium
Feedback
Recipient
The sender has to ensure that the recipient can decode the message correctly.
Market Communication - Two Step Model

Model of a two-step Communication / Information transmission by mass media
Opinion leaders are influenced by experts
Members of the "followers-group are influenced by the opinion leader
Mass
Mass media
Personal
Opinion leader
communication
communication
"Passive" audience
Opinion leader is the central element. He obtains a mediating role where he passes on information to advertising subjects in his social environment.
Customer Satisfaction - Graphic

Graphic of customer satisfaction as a result between expectation and perceived performance quality (Customer satisfaction = B / A)
Individual (subjective) expectation of Customer Perceived product- / service quality
Process of comparison
Customer Satisfaction
A product leads to customer satisfaction if it is capable to satisfy customers requirements (Expectations-Experience)
On Purchase
Usage
Expectation of the product
Product
Experience with the product
Comparison
Accord with the expectations that a customer has on the purchase of the product Expecrations that are made during the use of the product.
Customer Satisfaction
Purchase Decision and Influencing Variables

Representation of the factors that can influence a buying decision
Bundle of (Product-) functions Price Type of function
Quality
Design
Time relevant availability on market Other factors (i.e. maintenance costs, service, etc.)
Physical features (size, weight, etc.)
Experience of Customer
Instructions
Usage of goods Service visit Invoice Packaging Delivery
Ad
Other communication
Customer
Brochure Fax, E-Mail
Data sheet Vendor contact Product presentation
Phone conversation Offer Price list
Purchase Decision Process - Circle

Interaction cycle and phases of the purchase decision processes
Order handling
Pre- acquisition
Order
Inquiry
Negotiations with customers phase
Purchase Decision Process
Submit tender to customer
Offer preparation with cooperation partner
Bidding phase
Development Stages of Customers

Representation of the different stages of customers with increased customer satisfaction and customer loyalty
Suspected / Promising New customer (prospective) First-time customern Repeated customer Exclusive customer Active intercessory customer Integrated partners
If necessary procurement from suppliers or competitors. Customer loyalty strategies to make him repeated purchases.
Qualified new customer with potentially strong interest in the product or service. Existing financial resources.
Purchase only from a provider / your company and dont accept competitive products. Use of CRM tools e.g. membership in the customer club. Transfer positive aspects about the company / product to other potential customers Active cooperation between customer and company (especially B-to-B)
Development Stages of Customers

Representation of the different stages of customers with increased customer satisfaction and customer loyalty
Suspected / Promising New customer (prospective)
First-time customern
Repeated customer
Exclusive customer
Active intercessory customer
Integrated partners
Increasing customer satisfaction
The Value Chain

Value that the customer is prepared to pay for the services of a company
Infrastructure management
Personal management
Support Activities Technology development
Procurement
Input logistics
Operation
Output logistics
Marketing and Sales
Service
Main Activities
DAGMAR-Formula
Step model of advertising effectiveness and advertising success
Theory based on the assumption that advertisement doesnt only have economic objectives but that it also has to meet particular communication tasks. The advertisement goes through several levels of consciousness with each customer:
Contact
Is the advertising recognized?
Acceptance
Is the promotional information recognized quickly?
Understanding
Is the advertising message instantly understood by the target group?
Storage
Is the core message easily absorbed?
Attitude
Is the advertising message credible, likeable, prestigious?
Action
Purchase due to the positive perception of the consumer.
Core Competences
Visualize core competences as a matrix with evaluations according to increase in value for the company and customer satisfaction
high
R&D Production Logistics Sales
Core competences
Increase in value
medium
Service Procurement
Potential key skills (ressources)
low not satisfied
Customer
satisfied
amazed
Customer Lifetime Circle

Timing and phases of the customer life cycle (customer relationship)
strength / Intensity (Quality) the customers relationship
stability
extension
development
termination
duration of customer relationship initiation
Customer acquisition
- Initiation Phase - Socialization Phase
Customer loyalty
- Growth Phase - Maturity Stage
Customer recovery
- Exposure Period - Resolution Phase - Abstinence Phase
Customer Profile
Customer profile analysis according to sales and number of customers
Sales in %
100% 90% 80%
70%
60% 50% 40% 30% 20% 10% 0% 0 10
10 Customers make 50% of the sales The majority of the customer accounts for less than 10% of sales.
20
30
40
50
60
70
80
90
100 Number of
customers
CRM- Functional Chain

A CRM- busines model should relate to a functional chain
CustomernOrientation
Customernzufriedenheit
Customernwert
QualittsOrientation
Customernbindung
Unternehmenserfolg
CRM - Contact Chain

Company's entire contact chain from initial contact to the re-sales contact
Interested Party
First Contact Pre-Sales-Contact
Customer
Sales-Contact After-Sales- Contact
Regular Customer
Re-Sales- Contact
opinion making
consulting quotation purchase negotiations
order purchase delivery
usage of the product service
repurchase
Customer Lifetime Circle
CR-Marketing - Phases
Customer Relationship Marketing (CRM) is a management approach that focuses on the systematic development and the maintenance of customer relationships
This process runs through the following 5 phases:
Accost
Win
Inform
Handle
Maintain
Brand / Corporate Identity
Corporate Identity vs. Image

Differentiation of two perspectives
Company
Corporate Identity
Image
Image from inside
Image from Outside
Branding policy - Requirements for a Brand

Major tasks of branding policy: development of brand names and trademarks
Criteria and characteristics of a brand
Brand name/ marking

Product design Packaging Trademark
Brand protection
Protectability of brand differentiation from other brands
Distinctiveness
Difference in performance compared with competitive offerings
Standards
Price stability
Availability
Publicity
Standardized Quality Consistently high Quality
No specials, action prices or sales
Availability and widespread distribution
Perception and recognition in the market through advertising
Differentiation of Trademarks
Examples according to trademark types
Word signs
Graphic trademark
Word-Image Trademark
Recognition by selfdeveloped script. Easily represented in all media.
Only work if you about to be published across years (through advertising)
Highest conciseness by logo and illustration of the peculiarity of the offer.
Corporate Identity
The total of all communication political measures, the behavior, appearance and market communication of a company
Corporate Identity
Corporate Identity
Detailed presentation of the three activities of a company, aligned upon a corporate philosophy
Appearance:
logo, fonts, color, layout
Internal and external corporate communication:

press releases, ads, posters, TV spots, staff newspaper, customer magazine, website, banners, Open house, company celebration, trade show appearance, packing design
Behavior from inside to outside:

to employees, customers and suppliers
Graphics
Competition - Graphic
Own Company
C4
C5
C3
C2
C1
Customer
Graphic - Marketing vs. Strategy Signs

Marketing - Buzzword Cubes

Marketing - Buzzword
Graphic - Mouse Cursor Marketing

Graphic - Flowchart Sale Options

Puzzle - Marketing 4Ps

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D2531 Marketing-Toolbox en PPT2007-2010

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D2531 Marketing-Toolbox en PPT2007-2010

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Marketing Toolbox

Subtitle, Autor or Date

Marketing - Simple Model

Delivery of Product / service

Feedback to provider / information

Development Phases of Marketing

approx. 1920 - 1950

approx. 1950 - 1980

approx. 1980 - 1990

Marketing - Classical vs. Alternative Marketing

Outside advertisement / Billboard advertisement

Search engines Mobile marketing

Product placement Fairs / Exhibitions

Investment goods marketing

marketing of a trade and sales company (retail)

Marketing - Sales Markets

Characterization of Markets - Types of Goods

Single, clear identifiable customer (B2B)

Services for customer with a high use of resources

Explanatory models of purchase pattern

SegmentsSpecific use of instruments

Consumer-oriented approach Method-oriented approach Management-oriented approach

Approaches of Market Segmentation

Strategic business units

Market Analysis/ Competition

Situation Analysis - Search Fields

Stakeholder: employees investors unions etc.

Market Analysis - Strategic Situation Analysis

Strengths and weaknesses analysis

Opportunities and threats analysis

Marketing - Situation Analysis

Which competitors are currently operating on the market?

Market Analysis - Company Analysis

Market Analysis - Company Analysis

Market Analysis - Company Analysis

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Insert description and notes in key words.

Market Analysis - Company Analysis

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Insert description and notes in key words.

Insert description and notes in key words.

Market Analysis - Company Analysis

Market Analysis - Company Analysis

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Insert description and notes in key words.

Market Analysis - Strengths and Weakness

1 Quality Price Performance Usage Image Environment-friendliness Design Additional functions

Marketing - Representation of Market Volume

Actual sales or sales for all vendors at the market

Market volume Market potential

Characterization of Markets - Sizes

Relative Market Share Market Potential

Market - Description/ Term Definition

Sales / Revenue volume of the company

Absolute market share

Relative market share

Absolute market share:

Relative market share:

Market Analysis - Environment Analysis

Design engineer Dep. 4