Marketing - Jankkila 2004
Marketing - Jankkila 2004
Marketing - Jankkila 2004
Literature in English:
CONCEPTS
*needs *wants *demands,
*marketing offers = products, services, experiences
*value *satisfaction *exchanges
*transactions *relationships
*markets
SUPPLIER CUSTOMER
PROMOTION
PRODUCT DISTRIBUTION SERVICE PRICING
Ideas Channels Logistics - Strategies
Legis- Ideageneration - Price -
lation Ideascreening defining
Concept development
Compe- Business planning Production Packing
titors and evaluation - procedures -materials
Product development - capacity -procedures
Test market - quality assurance -the needs of
Launch - raw materials customers, retails and
wholesalers,
MARKETING -Jankkila 2004 -
MARKETING ALONGSIDE OTHER
ELEMENTS OF BUSINESS
Production
Marketing
Finance CUSTOMER Recearch and
development
Marketing
Human secource
management
SOCIETAL
MARKETING
CONCEPT
CONSUMERS COMPANY
Want satisfaction Profits
Conflicts between consumer shot term wants
and consumer long-run welfare??
MACRO ENVIRONMENT
-all forces and agencies external to the marketing firm itself
>close to firm = customers, suppliers, agents, distributors, other
íntermediaries, competing firms, public - Lancester-Reynolds 2004-,
>wider external = legal, cultural, economic,demographictechnological
subenvironments, political -(Kotler-Amstrong & lancester-Reynolds -
• COMPANY
>top management, finance, recearc&development,
purchasting, operations, accounting
• SUPPLIERS
>raw material suppliers,
• INTERMEDIARIES
>firms that helps the company to promote, sell, distribute the goods to
final buyers; resellers, phycical distribution firms, marketing service
agencies, financial intermediers
MARKETING –Jankkilaa2004 -
FACTORS INFLUENCING CONSUMER
BEHAVIOUR –Kotler-Amstrong 2004 -
CULTURAL SOCIAL PERSONAL PSYCHOLOGICAL
Culture Reference Age and life- Motivation
Subculture groups cycle stage Perception
Social class Family Occupation Learning
Roles and Economic Beliefs and
status situation attitudes
Lifestyle
Personality and
self-concept
SELF
ACTUALISATION
Creativity fulfillment, Pursue
RESPECT AND SELF-ESTEEM
Achiement qualifications
SOCIAL NEEDS
Recognition and belonging, friends , family
SAFETY NEEDS;
Protection, security, stability, Freedom of fear
PHYSIOLOGICAL NEEDS; Hunger, Thirst, shelder, warmth
INFORMATION SEARCH
EVALUATION OF ALTERNATIVES
PURCHASE DECISION
POSTPURCHASE BEHAVIOUR
1. AWARENESS
2. INTEREST/INFORMATION
3. EVALUATION
4. TRIAL
5. ADOPTION
6. POST-ADOPTION CONFIRMATION
34 % 34 %
Early Late
majority majority
2,5 % 13,5 % 16 %
Innovators Early Laggards
adopters
MARKET SEGMENTATION =
- Dividing the market into distinct groups with distinct
needs, characteristics or behaviour who might require
separate products or markettin mixes
- geographic, demographic, psychographic, behavioral
TARGET MARKETING =
- The process of evaluating each market segment’s
attractiveness and selecting one or more segments
- undifferentiated=massmarketing, ifferentiated=segmented
marketing, concentrated=niche marketing,
micromarketing =local or individual marketing
MARKETING -Jankkila 2004 -
POSITIONING
MARKET POSITIONING
Arranging for a product to occuby a clear, distinctive and
desirable place relative to competing products in the minds of
target consumers
PRODUCT POSITION
The Way the products is defined by consumers on important
attributes - the place the product occupies in consumers’ mind
relative to competing products
CONSUMERS ORGANIZE PRODUCTS INTO CATEGORIES
The consumers do not reevaluate the products every time they make a
buying decision > they organize products, services and companies into
categories and POSITION them in their minds
MARKETING MIX EFFORTS SUPPORT THE
POSITIONING STRATEGY !
MARKETING -Jankkila 2004 -
BUSINESS IDEA
WHAT TO WHO
Products, services, experiences The market
experinces -customers needs/wants
- quality -market opportunities
- price -segmentation
-competition situation
HOW IMAGES/POSITION
- enterprice´s structure PROFILES
- way of doing/actioning, manners - product/service/firm/
-marketing concept and processes managening profile
SEGMENTATION COMPETITORS
-segment determining -present/future
-needs of the segment
-profiling
MARKETING -Jankkila 2004 -
MARKETING MIX -Kotler-Amstrong and Booms-Bitner
• The set of controllable tactical marketing tools
• Everything the firm can do to influence the demand of
its products
PROMOTION PLACE
Advertising Channels, Coverage
Personal selling Assortments, Locations
Sales promotion Inventory, Transportation
Public Relations Logistics
AUGMENTED PRODUCT
Delivery Credit After
sale
ACTUAL PRODUCT service
Brand CORE Features
name BENEFIT
Core product
Quality Design
Packing
Installation Warranty
MARKETING -Jankkila 2004 -
PRODUCT/SERVICE CLASSIFICATIONS
–Kotler-Amstrong 2004 -
• CONSUMER PRODUCT
> bought by final consumer for personal consumption
• CONVENIENCE PRODUCT
> consumer product that the customer usually buys frequently with
a minimum of comparison and buying efforts ( fast food, newspaper )
• SHOPPING PRODUCT
> consumer good that the customer in the selection and comparison
process and purchase buys ( suitable, quality, price, style )
• SPECIALTY PRODUCT
> consumer product with unique characteristics or brand identifications
( specific brands and types of cars, cameras, phones, clothes, wines )
• INDUSTRIAL PRODUCT
> product bought by individual or organizations for further
processing or use in conducting business
1. Materials and parts ( raw materials, manufactured materials )
2. Capital items ( installations and accessory equipments )
3. Supplies and services ( operating supplies, repair items,
business services, business advisory services )
• ACQUISITION
> By buying a whole company, a papent or a licence to
produce someone else’s product
IDEA GENERATION
IDEA SCREENING
CONCEPT DEVELOPMENT AND TESTING
MARKETING STRATEGY
BUSINESS ANALYSIS
PRODUCT DEVELOPMENT
TEST MARKETING
COMMERCIALIZATION
ÍDEA GENERATION
*The systematic search for new-products ideas
*Internal = new-product managers, committees, departments,
venture teams
*External = customers, competitors
IDEA SCREENING
*Go or drop decisions- spot good ideas and drop poor ideas
as soon as possible
NEW-PRODUCT PROCESS …
CONCEPT DEVELOPMENT AND TESTING
*Product concept = A detailed version of the new-product
idea stated in meaningsful consumer terms
*Concept testing = testing a new-product concept wit a group
of tarket consumersto find out if thr concepts have strong
consumer appeal.
MARKETING STRATEGY
*The target market; positioning, sales, market share, profit
goals
*Outlines of the product; price, distribution, marketing
budget
*Long run sales, profit goals, marketing mix strategy
PRODUCT DEVELOPMENT
• Developing the product concept intoa phycical product in
order to ensure that the product idea can be turned into a
workable product
Branding
Packaging
Labeling
PRICE =
• The amount of money charged for a product or service or
the sum of the values the customers exchange for the
benefits of having or using the product or service
• The means whereby an organisation covers costs of all
activities
• The major factor affecting buyer choice – usually
• A flexible element in the marketing mix – can change quickly
DYNAMIC PRICING =
• Charging different prices depending on individual
customers and situations
• ECONOMIST’s approach
The price is the means through which supply and
demand is brought into equilibrium
• ACCOUNTANTS’s approach
The price covers the costs and make profits
• MARKETER’s approach
Effect of price on the organisation’s competitive
market position
INTERNAL EXTERNAL
FACTORS P FACTORS
Marketing objectives R Nature of the market
Marketing mix strategy I and demand
Costs C Competition
Organisational I Other environmental
considerations N factors ( economy,
G resellers, government
FIXED COSTS
• MARKET-SKIMMING PRICING
>Setting high price for a new product to skim maximum
revenues from the segment willing to pay the high price.
-Company makes rewer but more profitable sales
-Product’s quality and image must support the high price
-Enough buyers must want the product at that price
-Competitors should not be able to enter the market and
undercut the price
1. MARKET-PENETRATION PRICING
>Setting a low price for a new product in order to attract a
large number of buyers and a large market share
DISTRIBUTION
Retailers Customer 3
DIRECT MARKETING
• reach few customers,
• direct producer/customer contact,
• not effective?
• is product suitable for direct marketing?
• larger profit marginal?
• have producer time enouhg for producing and marketing?
• small amounts of products can be marketed,
• Important; quality, producers own capasity and knowledge
of marketingco, co-operation with other small producers?
RETAILER
WHOLE SAILERS
• large-scale, concentrated distribution
> producers’s work decrease
• can you produce large amounts?
• is a long chain suitable for your ( fresh? ) goods?
• is the price competitive by the customers?
• packaging for the wholesailing and distribution >costs?
• logistics if the distribution ways are long?
• who does pay the freight?
MARKETING LOGISTICS
The tasks involved in planning, implementing, and
controlling the phycical flow of materials, final goods, and
related information from points of origin to points of
concumption to meet customer requirements at a profit
SUPPLIERS
Inbound logistics
COMPANY Reverse
Outbound logistics
RESELLERS logistics
CUSTOMERS
SENDER RECEIVER
IDEA MESSAGE IMAGE
Encoding to Decoding to an
a message MEDIA image
Disruptions
Disorders
BUDGET DECISIONS
affordable approach, percent of sales, competitive parity,
objective and task
CAMPAINGN EVALUATION
Communication and sales impact
MARKETING -Jankkila 2004
POSSIBLE OBJECTIVES
-Kotler-Amstrong-
• INFORMATIVE ADVERTISING
gives information about a new product, the firm, new uses
of product, price change, explain how the product works ..
• PERSUASIVE ADVERTISING
brand building, changing customer’s perceptions of
product attributes ..
• REMINDER ADVERTISING
remind consumer of the goods and services, remind the
selling palaces..
MARKETING -Jankkila 2004
SALES PROMOTION TOOLS–Kotler-Amstrong-
• SAMPLE
• COUPON
• CASH REFND OFFER ( RABATE )
• PRICE PACK
• PREMIUM
• ADVERTICING SPECIALITY
• PATRONAGE REWARD
• POINT-OF-PURCHASE ( POP )
• PROMOTIONAL EVENTS
MARKETING -Jankkila 2004
BUSINESS PROMOTION TOOLS
• DISCOUNT
a straight reduction in price on purchase during
stated period of time
• ALLOWANCE
promotional money paid by manufactures to
retailers in return for agreement to feature the
manufacture’s products in some way
MANAGING
Marketing Analysis, Planning, Tactics, Implementation,
Actions Control, Review, Monitoring, Contingency
MARKETING ENVIRONMENT
Tarket markets, Marketing channels, Communication, Logistics
Competition, International aspects, Macroénvironment
MARKETING -Jankkila 2004 -
MARKETING INTELLIGENCE SYSTEM
SALES TRANSPORT OTHER
PERSONNEL PERSONNEL PERSONNEL
intelligence gathered from
Competition Telephone calls and
Exhibitions Visiting customers requests
Conferences General chats with Visitors to firm
Training courses other drivers Letters and direct mails
Customers Visiting suppliers Press and journals
Sponsored events General observastion General observation
WHAT TO WHOM
-product, service, experience - market, segmentation, market region
-quality - custome’s needs/wants for the product
-price, pricing strategy - competition situation
-how they have developed the product
HOW IMAGES/POSITION
-organization structure -positioning on the market,
-how they use the parts marketing -profiling; trademark, brand ….
of marketing mix -your own opinion or image of the product
-quality policy and the quality
management
-why the company has choosed this
way of operating?
THANK YOU
MARKETING -Jankkila 2004 -
From an idea to a product
Type of product: Identification number: Date: