Marketing and Communication in Media

Body of knowledge

Introduction Course Importance

"Because the purpose of business is to create a customer, the business enterprise has two--and only two--basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.
Peter Drucker, The Practice of Management

Marketing Communication is critical to any business optimum functioning, being the most efficient instrument in promoting your company, your products and services. It is the key of understanding that integrates the players of a market (organizations, clients, suppliers, etc) from top to bottom, bottom to top, and side to side.

Introduction Course Goals

After this course, students will be able to:

Understand the importance of marketing and communication within the media business process Create a marketing orientation in your group or firm Understand the major marketing techniques and strategies Plan effective marketing programs, advertising campaigns, and sales promotions Develop an explicit marketing plan as integrated part of the companies business strategic plan Understand the importance of marketing communication, as a complex mix between advertising, direct sales, sales promotions, public relations, direct marketing, etc

What is Marketing?
The science ant the art of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals' and companies' goals
Marketing starts with the organization's mission:

How does it define itself

What are its goals Who are its customers How does it intend to fulfill its mission

What is the Mission of Marketing?

1. To sell any and all products of a company, whomever and to everybody 2. To create products/services as a response to well defined needs of well defined markets 3. To improve the life standards all over the world

Marketing Process
Analyze market opportunities

Develop a marketing strategy

Create a marketing plan Put your marketing strategy into action

Evaluate the effectiveness of your marketing strategy

Course Structure
Marketing and Communication

I.

Analyze Market Opportunities

II. Defining Marketing Orientation V. Marketing Plan Implementation

III. Develop Marketing Strategy VI. Controlling Marketing Process

IV. Develop Marketing Plan

Analyze Market Opportunities

Chapter I

Analyze Market Opportunities

CUSROMERS

COMPETITION

MARKET OPPORTUNITIES

Analyze Market Opportunities Customers

WHO are our target customers?
Individual Customers Businesses or Organizations

CUSTOMER Analysis

WHY should they buy our product and not our

competitors'?

Forces Affecting Consumer Buying

Cultural Forces
National values, such as an emphasis on material comfort, youthfulness, or patriotism Friends, neighbors, coworkers, and other groups with whom people interact frequently and informally Age: including stage in the life cycle; for example, adolescence or retirement Motives: conscious and subconscious needs that are pressing enough to drive a person to take action; for example, the need for safety or selfesteem Ethnic or religious messages or priorities

Social Forces

Family members, friends: parents, spouses, partners, children, siblings

Occupation, economic circumstances, and lifestyle (or activities, interests, and opinions) Perceptions (interpretations of a situation), beliefs, and attitudes (a person's enduring evaluation of a thing or idea)

Personal Forces

Psychological Forces

Understand Consumer Buying Process

Example

Recognize a Need Search for more information Weigh the alternatives Decide to buy

Your newsletter doesnt provide financial information, so you need to subscribe to a new one

Surfing the Internet for extra financial information

That newsletter have all the information the old one provided, plus a detailed section on finances
Determining that the price is right, concluding that you've done enough "shopping around," and subscribing the newsletter You may feel satisfied, disappointed, or even delighted with your purchase; you may unsubscribe to the new newsletter or decide to buy it again

Evaluate the purchase

Marketing Major Directions

Marketing Directions

Recruitment of New Customers (acquisition)

Retention and expansion of relationships with existing customers (base management)

Learning about Consumers

Problem: How do your gather and use information about your target market? Answer: By RESEARCHING and EVALUATING

Learning about Consumers

Review your company's internal sales and order information Gather marketing intelligence Perform market research Use secondary data sources

Reading newspapers, and trade publications Talking with customers, suppliers, and distributors Checking Internet sources Meeting with company managers

Internal research Market surveys Product-preference tests Focus groups

Government publication Commercial data SNA-Focus study Business Information

Steps for Market Research

1. Define the marketing opportunity you will focus on

2.
3. 4. 5. 6.

Establish your research objectives in exploring the opportunity you identified

Develop your market-research plan Implement your market-research plan Analyze the information Present your findings

Customer Value Equation Worksheet

Evaluating Consumers

Worksheet for calculating the Lifetime Value of a Customer

Lifetime Value of a Consumers

Organizations Buying Behavior

Pressure to maintain the quality of your product

The straight re-buy

The modified re-buy

The new task

Lengthy and complex decision process between your firm and the company

Pressure to protect the account to keep rivals from encroaching on your business

Influences on Purchasing Decision

Environmental Forces Organizational Forces Interpersonal Forces Individual Forces Cultural Forces
Interest rates, materials shortages, technological and political developments Purchasing policies and procedures, company structures and systems (for example, long-term contracts)

Purchasing staff members' differing interests, authority levels, ways of interacting with one another
An individual buyer's age, income, education, job position, attitudes toward risk

Attitudes and practices influencing the way people like to do business; for example, some people tend to emphasize the collective, not individual, benefits of doing business

Understand Organizations Buying Process

Recognize a Need Ex: Our Bank needs a news flow, offering latest financial news and real time news alerts Ex: Available to all banks terminals Determine characteristics and quantity of needed items

Required technology Search potential suppliers

Solicit bids or proposals from suppliers

Choose a supplier Negotiate the final order Assess the chosen supplier's performance

Understand Competition
Why should customers buy from you and not from competition?

You have to make it clear to customers what the benefits of your products are. That is, you must find, and sustain a competitive advantage that has meaning for your customers.

Perform a Competitive Analysis

1. Determine your competition
Existing competition Potential competition

2. Analyze each competitor

Strategies Objectives Strengths & Weaknesses ways of doing business

Determine your Competition

Competitors are companies that satisfyor that intend to satisfythe same customer needs that your firm satisfies. Other players offering similar products to yours Entirely new players in your industry Companies that make substitutes for your products Customers' power of comparing, set competitors against one another, and easily switch suppliers Your own suppliers' power to raise their prices or reduce the quantity of their offerings Most companies have both existing and potential competitors. But companies are more likely to be hurt by their potential and emerging competitors than by existing rivals.

Analyze Competition
Strategies Objectives

Competition Analysis

Strengths & Weaknesses

Ways of doing Business

Analyze Competition Strengths & Weaknesses

How much of your target market does the company sell to?

Share of market

Share of mind
What percentage of customers name that competitor as the first one to come to mind?

Share of heart
What percentage of customers say they'd prefer to buy from that firm before any other?

Analyze Competition SWOT

Analyze Competition Ways of doing business

Doesn't react quickly or strongly to other players' moves Reacts swiftly and strongly to any assault

Responds to certain kinds of attacks such as price cuts or advertising campaigns

No predictable reactions to marketplace changes

4 Capital Rule of Marketing

1. It is better to be the first than to be the best

2. If you cant be first in a category, create a new category you can be first in 3. It is better to be first in the consumers mind than to be first on the market
4. Marketing is not the battle of the products, but the battle of the consumers perceptions relative to the products

Defining Marketing Orientation

Chapter II

What is Marketing Orientation?

A marketing orientation is a customer focus that is embodied in a company's: Mission: its very reason for existing Strategy: the concrete actions the company must take to achieve its mission
A marketing orientation is vital because it helps your company achieve its mission

When Marketing Orientation begins?

It occurs when everyone in the organization is constantly aware of: Who the company's customers are What the company's customers want or need How the firm can satisfy those customer needs better than its rivals How the firm can satisfy customer needs in a way that generates the kind of profits that the company wants to achieve

Where Marketing Orientation ends?

Keys of Building Marketing Orientation

1. Pay Attention to Your Customers 2. Match company offerings to customer needs

Pay Attention to Your Customer

Marketing is a way of understanding and satisfying the customer
NEEDS WANTS DEMANDS

Customer Needs
Customer needs are the underlying force for making purchasing decisions

Unstated NEEDS

Match Your Offerings to Customer Needs

Information Events Services

Goods

Experiences

Places

Ideas

Properties Organizations

Manage Demand
NO Demand Latent

Negative

Increasing

Forms of DEMAND Unwholesome

Irregular

Declining Overfull

Full demand

Marketing Approaches (1)

The Belief Behind It Production
Consumers prefer products that are widely available and inexpensive.

Product
Consumers favor products that offer the most quality, performance, or innovative features.

Selling
We have to sell our products aggressively, because consumers won't buy enough of them on their own.

Company Focus

High production efficiency, low costs, and mass distribution of products

The design and constant improvement of superior products, with little input from customers

Using a battery of selling and promotional tools to coax consumers into buying

Marketing Approaches (2)

The Belief Behind It Marketing
The key to achieving our goals is our ability to be more effective than our rivals in creating, delivering, and communicating value to our target customers.

Societal marketing
Our task is to determine our target customers' needs, wants, and interests and to satisfy them better than our rivals do, but in ways that preserve or enhance customers' and society's well-being.

Company Focus

Target markets, customer needs, coordination of all company functions from the target customer's point of view

Building social and ethical considerations into marketing practices; balancing profits, consumer satisfaction, and public interest

Building Marketing Orientation

1. Persuade all employees of the need to be customerfocused 2. Design the right rewards 3. Hire strong marketing talent 4. Develop in-house marketing-training programs 5. Support efforts to restructure the company as a market-centered organization

Develop Marketing Strategy

Chapter III

Marketing Strategy Two levels

The 4 Ps of Marketing Model

1. Product: The product aspects of marketing deal with the
specifications of the actual good or service, and how it relates to the end-user's needs and wants.

2. Pricing: This refers to the process of setting a price for a product,

including discounts.

3. Promotion: This includes advertising, sales promotion, PR,

sales force and direct marketing, and refers to the various methods of promoting the product, brand, or company.

4. Placement or distribution refers to how the product gets to the

customer; for example, point of sale placement or retailing.

Develop Marketing Strategy

PRODUCT

Product Aspects
1. The physical product

2. The brand name

3. The company reputation

4. Pre-sale education provided by salespeople

5. Post sale technical support 6. Financing plans 7. Reputation of outlet where purchased, etc

Differentiating, positioning, and branding

Differentiating
The act of distinguishing your company's offering from competitors' offerings in ways that are meaningful to consumers Determining and communicating the central benefit of the product in the minds of target buyers. A product brand is a name, term, sign, symbol, or designor any combination of thesethat identifies the offering and differentiates it from those of competitors.

Positioning

Branding

MARKETING

Differentiation
Products physical distinctions
Form Features Performance quality Conformance quality Durability Reliability Reparability Style

Products service distinctions

Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair

Design

Branding
Implies a strong brand image
Attributes User Benefits

Personality

Values

Culture

Rules for Brand Names and Messages

1. You must reserve a particular word in the mind of potential consumer. 2. Two distinct companies cant reserve the same word in the mind of potential consumer 3. If you admit a defect, the potential consumer will assign you a quality

4. Each attribute has an opposite that can be very effective

Product Lifecycle
Marketing Objectives Market Strategies

Product Introduction

Low sales, high cost per Create product customer, no profits, few awareness and trial competitors Rising sales and profits, more and more competitors Maximize market share

Offer a basic product Use heavy promotions to entice trial Offer product extensions Reduce promotions due to heavy demand Diversify brands Intensify promotion to encourage switching to new brands Phase out weak products Cut price; reduce promotion

Product Growth

Product Maturity

Peaking sales and profits, Maximize profit stable or declining number while defending of competitors market share
Declining sales, profits, and number of competitors Reduce expenditure and "milk" the brand

Product Decline

Why Develop New Products and Services?

Consumers like to have new choices

New products to satisfy consumer new desires and to build sales

Consumers attitudes toward existing products can change rapidly Products have a natural life cycle and eventually become outdated Your competitors are also looking for ways to offer bigger and better deals to customers

Develop New Products and Services

Start generating new product ideas

Test Your Ideas

Test-marketing the new product

Generating New Products Ideas

Sources of BEST new products Ideas:
Customers Competitors

Company's employees
Industry consultants and publications Market-research firms

Testing Your Ideas

1. Determine whether the ideas are compatible with your company's overall strategies and resources 2. For the products compatible with companys strategy and resources, present the concept to target consumers In focus groups Through a mail-in questionnaire 3. Get customers reactions and ideas

Test-Marketing New Product

1. Develop samples of the actual product
2. Test consumer goods and business goods separately 3. If the test-marketing results are positive start to produce and distribute it

Test-Marketing Consumer Goods

Sales wave
Let some consumers try the product at no cost. Then re-offer the product, or a competitor's product, at slightly reduced prices. See how many customers choose your product again, and gauge their satisfaction with it.

Simulated test marketing

Ask a number of qualified buyers to answer questions about their product preferences. Then invite them to look at a series of commercials or print ads that include one for your new product. Finally, give them some money and set them loose in a store. See how many of them buy your product.
Place your product in a number of stores and geographic locations that you're interested in testing. Test different shelf positions, displays, and pricing. Measure sales through electronic inventory control systems. This is test-marketing on a grand scale. Select a few representative cities, get your sales force to give the product thorough exposure in those cities, and unleash a full advertising and promotion campaign. See how well the product sells.

Controlled test marketing

Test-market

Test-Marketing Business Goods

Alpha testing
Build a few units of the new product. Ask your most important and friendliest customers to try the product for free and comment on its functionality, features, and problems.

Beta testing
Similar to alpha testing, but it is done in the product-development processwhen the product is close to be finalized.

Trade show exhibits

Observe how much interest participants show in the product, how they react to various features, and how many express clear intention of buying the product

Develop Marketing Strategy

PRICE

Product Price
The price is the amount a customer pays for a product It depends on: Market share Competition Product identity Customer's perceived value of the product

Product Price
Product

Price

REVENUES

Positioning

Promotion

COSTS

Pricing Variables
1. Prices list 2. Discounts 3. Bundling 4. Payment terms and financing options

Pricing
Customers are more receptive to value, not to price. When they buy judging by price, they do it because they do not see significant differences between high price products with and low price products. Philip Kotler

Price Customization
Developing a product line Example: full color magazine and black and white cheaper version of the same magazine Controlling the availability of lower prices E.g. by making them available only in certain locations

Varying prices based on observable buyer characteristics Example: lower prices for old, loyal clients
Varying prices based on observable characteristics of he transaction E.g. quantity discounts could be offered if the situation were that big-volume buyers valued the product less than smallvolume buyers

What to do when Competition Stakes on Low Prices?

Decrease costs Re-planning Savings Invest in new technologies (that will reduce production costs) Enrich your offer (add new benefits to old products/services, launch new products/services) Simply buy the competitor

Develop Marketing Strategy

PROMOTION

Marketing Communication Plan

Key Steps:
Advertising

Direct Marketing Direct Sales

The marketing objectives must be clearly stated

The message needs to match the target markets' needs or demands Implementation should be carefully planned The results have to be evaluated

Marketing Communication Plan

Public Relations Sales Promotions

Advertising
Advertising forms
Print brochures or flyers Billboards Point-of-purchase ads Television and radio ads Website banners

Advertising Strengths
Inform (give information to the consumer) Persuade (influence the consumer to buy) Remind (maintain consumer awareness)

Tips for Creating an Effective Print Ad

1. Clarify the purpose of the ad (format and content) 2. Get consumers' attention 3. State the product's or service's benefit for consumers 4. Give consumers a reason to act now 5. Use ad copy to your advantage 6. Use design to your advantage 7. Avoid using too many different type sizes and styles.

Sales Promotions
Sales Promotions forms
Coupons for product savings Contests Free trials Cash refunds

Sales Promotions Usage

Introduce a new product Build brand loyalty Gain entry into a new distribution/retail channel

Tips for Designing a Powerful Sales Promotion

1. Use sales promotions with advertising 2. Be clear about your objectives 3. Choose the appropriate promotion tools 4. Use sales promotions in markets of high brand dissimilarity . 5. Distinguish between price promotions and added-value promotions 6. Pretest your sales promotion program

Direct Sales
Sales Promotions forms
The salesperson's persuades the consumer to purchase the product

Salespeoples tasks
Looking for new prospects Communicating face-to-face Selling Servicing Performing market research

Tips for Evaluating Sales Representatives

1. Analyze salespeople's annual territory marketing plans 2. Review other reporting documents from sales reps 3. Compare sales reps' current performance with their past performance and company averages 4. Test sales reps' professionalism 5. Assess negotiation skills 6. Assess ability to build long-term relationships with customers

Direct Marketing
Direct Marketing Supports
Printed, mailed marketing pieces Radio TV Telemarketing Faxes E-mail Web sites Online services

Direct Marketing benefit

Lets firms engage in relationship marketing, or one-to-one marketing Companies build stronger, more profitable bonds with target customers

Why Direct Marketing?

Benefits for companies
Buy mailing lists containing the names and contact information of various targets Customize the messages they deliver to target customers Deliver the message at the right moment Achieve higher readership of printed materials Test messages and media to find the most cost-effective approach Conceal their offerings and strategy from competitors Measure customer responses Integrate direct-marketing strategies with other strategies Less expensively than sales force Build stronger bonds with target customers.

Benefits for customers

Shop more easily and quickly from home or the office Choose from a larger selection of products Compare products, services, and prices easily Order goods 24 hours a day Learn about available products or services without tying up time meeting with salespeople Receive their purchases quickly through next-day delivery services

Direct Marketing and new Technologies

New technologies facilitate the compilation of customer databases, allowing:

Identify prospects Decide which customers should receive a particular offer Deepen customer loyalty "Reactivate" customer purchases

Direct Marketing Channels

Face-to-face selling Direct mail Catalogs Telemarketing Direct-response TV Kiosks

The dark side of Direct Marketing

Customer irritation Unfairness Outright deception and fraud Invasion of privacy Chaos and clutter

Online Marketing
Online Marketing technologies
Internet Electronic Markets Electronic commerce Commercial online services

Online Marketing benefits

New opportunities New challenges New customer categories (especially young)

Online Marketing Advantages

Marketing activities Advertising Traditional Marketing
Limited amount of information; uses traditional channels: TV, radio, press Available 8 hours a day, 5 days a week, as an answer to clients requests; maintenance and training face to face only Direct contact (visit) or by phone with potential clients

Cyber-Marketing
High amount of information available on companys websites and also on other websites Available 24 hour a day, 7 dais a week; offers solutions by phone, fax or e-mail; fixes problems from distance, through automatic diagnose Video-conferences with potential clients; on-line demonstrations/ presentations of the products Online newsgroups for interviews and discussions; online / by e-mail questionnaires

Client service

Sales

Market Research

Individual interviews, focus groups; telephone and mail surveys

Conduct Online Marketing

Establish an electronic presence Advertise online Participate in or sponsor Internet interest groups Forums Newsgroups Bulletin boards Web communities Send e-mails (electronic newsletters, special product offers, reminders of upcoming promotions, and announcements for special events) Consider asking for customers' permission before sending e-mail offers

Other Tips for Online Marketing

1. Follow standards for online ads 2. Use the Web as a direct-response tool 3. Look for ad-space bargains 4. Try to make a sale through a Web ad

5. Make your own Web site attractive and easy to use

Example Google AdWords Advertising Platform

How it works?
Create your ads and choose keywords (words or phrases related to your business)
When people search on Google using one of your keywords, your ad will appear next to the search results Now you're advertising to an audience that's already interested in you

Example Google AdWords Advertising Platform

Costs and Payment
There's no minimum spending requirement. You can, for instance, set a daily budget of five dollars and a maximum cost of ten cents for each click on your ad Google provides keyword traffic and cost estimates so you can make informed decisions about choosing keywords and maximizing your budget You're charged only if someone clicks your ad, not when your ad is displayed

Relationship Marketing
Relationship Marketing
Combination of traditional directmarketing media (mailings, radio spots, kiosks), new media (Internet and e-mail) and recent database technologies

Relationship Marketing benefits

Firms learn more and more about their target customers Build strong, profitable bonds with their target customers

Why Relationship Marketing?

Benefits for companies Build strong, profitable bonds with their target customers Customers buy more and more often from the company, increasing firms profit The costs associated with serving such loyal customers decreases with every purchase Benefits for customers
Build bonds and accumulate a purchasing history with trusted companies Avoid the time-consuming - and often stressful - process of shopping around for the best deal May hear about attractive products, services, or special offers

Relationship Marketing A Problem

Relationship Marketing may imply a serious risk

consumer irritation

How to avoid/correct this problem?

See through consumers' eyes Regain customers' trust Build honest relationships

Customer Perception - Examples

Customer Perception "Too many companies want personal relationships with me!" Result Marketing advances seem trivial, useless, or annoying. Consumers' interest in relationship building evaporates.

"Companies want my friendship, loyalty, and respectbut they're not giving me those same things in return!" "Companies treat their best customers like kings and queensand ignore the rest of their customers!" "Companies offer too many optionsI can't keep them straight in my mind!"

Consumers see marketing as a "oneway street" that benefits companies only

Loyal customers feel devalued.

Customers feel overwhelmed and paralyzed.

Public Relations (PR)

Public Relations tactics
Publicity and Media Relations Speeches Events Newsletters Brochures Websites Annual reports Letters Sponsorships Charitable contributions Fact sheets News Alerts, etc

Relationship Marketing benefits

Strengthen your credibility Enhance your image Influence public opinion

PR vs. Advertising
PR is credible; customers accept the message as helping and impartial Advertising became irritating and has no credibility; the more companies try to sell, the more customers reject the message Advertising is spatial (involves many channels and resources); but after the campaign is over, the return is tot as attractive as expected

PR is a linear (step by step) and long term process, which consolidates the brand value and the customer loyalty.

PR is addressing to somebody in particular

Advertising is addressing to everybody

PR is oriented to others

Advertising is oriented to itself

PR vs. Advertising
PR does not involve high costs PR encourages new brands Advertising is costly Advertising encourages existing product lines extension Advertising is funny Advertising does not need to be creative; it has to work with ideas already present in consumers mind (due to PR) Advertising is visual Advertising dies

PR is serious

PR is creative PR is verbal PR lives

AIDA of the Communication Plan

Get your customers Attention
Keep them Interested Generate a Desire Encourage them to take Action

Tips for Selecting the Right Marketing Communications Mix

1. Gauge consumer readinessand adapt your communications tools accordingly 2. Tie your choice of communications tools to your product's life-cycle stage 3. Tie your choice of tools to your company rank in the market 4. Adapt your communications mix to the product market you're targeting 5. Distinguish between "push" versus "pull" strategies

What You Need to Remember

Tailor your promotional message to meet the needs of each different segment of your audience If your budget is limited, use different ways to make the most of what you have to spend on marketing communication (e.g. consider a two-color brochure rather than a full color one) Use World Wide Web as a tool for communicating with your customers Be prepared to invest time and resources in your website maintenance to make the most of your investment

Form for Drafting Communication Plan (1)

Form for Drafting Communication Plan (2)

Form for Drafting Communication Plan (3)

Develop Marketing Strategy

Placement (Distribution)

Placement/Distribution
Distribution refers to how the product gets to the customer Includes all aspects of distribution: The channel by which a product gets in touch with customer and the firm goes on market Which geographic region or industry To which segment (young adults, families, business people), etc

Distribution Channels Functions

1. Product information 2. Product customization 3. Product Quality Assurance 4. Lot size (e.g. the ability to buy small quantities) 5. Product assortment (breadth, length and width of product lines) 6. Availability 7. Aster-sale service 8. Logistics

A Paradox
A high number of distribution channels ensures coverage of all targeted markets

To many distribution channels might be difficult to control. More, a conflict between channels is imminent.

Channel Management
1. Pay extra attention to proper design of contracts and other explicit understandings that can generate conflicts
2. Good communication
Almost always will me necessary to resolve issues since contracts cannot typically anticipate all the situation that may arise

How to operate direct sales without loosing distributors channel?

1. Operate direct sales to important (high value) clients, and leave the smaller customers to distributors
2. Develop new products that can be sold directly to customers, and that differ from the ones distributors sell 3. Give up distributors and operate direct sales only

Designing marketing strategies for services

Select unique processes to deliver your service

Train and motivate employees to service customers well Develop an attractive physical (or virtual) environment in which to deliver the service
Differentiate the image associated with your service

Holistic Vision of Marketing

Holistic marketing focuses on consumer and implies 4 major processes:

Better understanding consumers needs, behavior and life style

Structuring all the departments in the client oriented spirit Evaluating the impact of companys actions on all people involved financially: clients, employees, distributors, suppliers, not just shareholders Having a broader vision on the industry, its players and evolution

Signals that Your Marketing Strategy is not Working

1. The sales are constant or dropping and the company needs a strategy to increase the volume of sales 2. The sales have ups and downs and need to be brought to a relative constant trajectory 3. The sales are acceptable but the profit margin is too low

4. Profits from different products, consumer segments or distribution channels are too low

Develop Marketing Plan

Chapter IV

Marketing Plan
Marketing Plan details the actions necessary to achieve one or more marketing objectives A comprehensive marketing plan can be a vital component to any business plan

Classes of Marketing Plans (1)

Marketing Plan for Brand
Each brand manager must develop a marketing plans for represented brands.

Marketing Plan for Product Category

After marketing plans for brands are finalized and accepted, product category managers develop more general marketing plans for category of products, plans that include brands marketing plans.

Marketing Plan for New Products

Each new launched product/brand need a detailed plan that includes the new product definition, market-tests, launching campaign, etc.

Classes of Marketing Plans (2)

Marketing Plan for Market Segments
If the product/brand is addressing to different market segments it should be developed a marketing plan for each of these segments.

Marketing Plan for Geographic Area

It is essential to develop marketing plans for each country, region, city, and even neighbourhood.

Marketing Plan for Customers

Account managers will develop separate marketing plans for each high value customer.

Marketing Plan Outline

1. 2. 3. Executive Summary Situation Analysis Market Segmentation

4.
5. 6. 7.

Marketing Strategy
Marketing Action Plan Budget Procedures for Marketing Control Process

Marketing Plan Implementation

Chapter V

From Marketing Plan to Market

Understand how your company manages its marketing efforts Determine how you might best work with supervisors, peers, and direct reports in order implement marketing plan

Marketing Action Plan

Transform scopes and strategies in concrete actions Schedule advertising campaigns, sales promotions, trade show exhibits, new product/services launches, etc Appoint people to monitor and control the process Communicate to action plan to all persons involved in the process

Nowadays Marketing Environment

Changes affecting marketing: Globalization Deregulation Technological advances Market fragmentation

The right response to market changes

Structuring Marketing Department

INTEGRATION

Controlling Marketing Process

Marketing Department Organization

Function
Advantage: simplifies administration Disadvantage: loses effectiveness if products and markets proliferate

Geography
The marketing department is divided into several units by region, markets and often by ethnic and demographic segments

Product or brand
Advantages: develops marketing mix for each product, respond quickly to changes, monitor smaller brands Disadvantages: possible conflicts

Customer Markets
A marketing manager supervises specialists (individuals, businesses) in a particular market segment

Customer Markets
Global operating units report directly to top management, not to an international division head

Skills for Successful Marketing Plan Implementation

Diagnosis
Anticipating what might go wrong and preparing for it

Identification of a problem source

Looking for the source of a problem in the marketing function, the plan itself, the company's policies or culture, or in other areas Budgeting resources wisely, organizing work effectively, motivating others

Implementation

Evaluation

Assessing the results of marketing programs

Latest Trends in Marketing

Transition from:
produce and sale marketing to grasp and react marketing mass marketing to customized marketing operating on one market to cyberspace attracting consumers goal to existing customers satisfaction goal intermediary market to direct marketing advertising oriented marketing to PR single channel to several marketing channels product oriented marketing to customer oriented marketing Marketing activities extension from one specialized department to entire company

Controlling Marketing Process

Chapter VI

Controlling Marketing Process

Type of Control Who's Responsible? Top and middle managers Why This Control Type? To assess whether planned results have been achieved To see where the company is making and losing money To improve the spending and impact of marketing How to Control?

Annual Plan

Analyze sales, market share, marketing expense-to-sales ratio

Measure profitability by product, territory, customer, segment, channel, order size; ROI Measure efficiency of sales force, advertising, sales promotions, distribution Review marketing effectiveness and company's social and ethical responsibilities

Profitability

Marketing controllers

Efficiency

Line and staff managers; marketing controllers

Strategy

Top managers, marketing auditors

To ask whether the company is pursuing the best market, product, and channel opportunities

Marketing for Success