Advertising Advertising

As Marketing ToolAs Marketing Tool

Marketing ProcessMarketing Process

►Four major stages:Four major stages: Marketing environment analysisMarketing environment analysis Target market and positioning processTarget market and positioning process Market mix decisionsMarket mix decisions CustomerCustomer

Marketing environment Marketing environment analysisanalysis

► Opportunity analysisOpportunity analysis► Threat analysisThreat analysis► Competitor analysisCompetitor analysis► Company analysisCompany analysis

► Process begins with analysis of external environment Process begins with analysis of external environment factors like economic, social, political legal and factors like economic, social, political legal and technological providing opportunities and threatstechnological providing opportunities and threats

► Depending on internal strength and weakness profile Depending on internal strength and weakness profile the marketer decides what opportunities to seek and the marketer decides what opportunities to seek and how various relevant threats are to be avoided.how various relevant threats are to be avoided.

STPSTP

► Identifying broad markets Identifying broad markets ( opportunity analysis)( opportunity analysis)

►Market segmentation ( Threat Market segmentation ( Threat analysis)analysis)

►Targeting ( Competitor analysis)Targeting ( Competitor analysis)►Positioning ( Company analysis)Positioning ( Company analysis)

Marketing mix decisionsMarketing mix decisions

►Product decisionsProduct decisions►Pricing decisionsPricing decisions►Channel decisions Channel decisions

Marketer looks at competitors and their Marketer looks at competitors and their offerings to arrive at an appropriate offerings to arrive at an appropriate marketing mix. marketing mix.

Promotions decisionsPromotions decisions

Advertising, direct marketing, sales Advertising, direct marketing, sales promotion, publicity, public relations, promotion, publicity, public relations, personal sellingpersonal selling

Promotion to ultimate customer / final Promotion to ultimate customer / final buyer/feedback ( channels)buyer/feedback ( channels)

Promotion through trade/agents to Promotion through trade/agents to customercustomer After looking at opportunities marketer After looking at opportunities marketer

looks at customer base and occupation of looks at customer base and occupation of space in his mind for the brand.space in his mind for the brand.

Marketing Mix decisionsMarketing Mix decisions

Marketer makes critical decisions based Marketer makes critical decisions based on these to battle with competitors ( 4+2)on these to battle with competitors ( 4+2)

ProductProduct PricePrice Physical distributionPhysical distribution PromotionPromotion PackagingPackaging PeoplePeople ProcessProcess

4 Ps and 4 Cs4 Ps and 4 Cs

► Four Ps were given by McCarthy as broad tools Four Ps were given by McCarthy as broad tools of marketing.of marketing.

► Later Robert Lauterborn gave customer’s point Later Robert Lauterborn gave customer’s point of view as 4 Cs corresponding to sellers’ 4 Ps.of view as 4 Cs corresponding to sellers’ 4 Ps.

► ProductProduct Customer solutionCustomer solution► PricePrice Customer costCustomer cost► PlacePlace ConvenienceConvenience► PromotionPromotion CommunicationCommunication► Emphasis on 4 Cs to design market mix.Emphasis on 4 Cs to design market mix.

Components of market mixComponents of market mix

►Product Product ►IngredientsIngredients ColourColour PackagingPackaging►QualityQuality SizeSize ServicesServices►DesignDesign product varietyproduct variety WarrantiesWarranties►FeaturesFeatures Brand nameBrand name Replacement Replacement

& return& return►InstallationInstallation customer education & trainingcustomer education & training►Customer relationship & managementCustomer relationship & management

PricePrice

►List priceList price►DiscountsDiscounts►Credit termsCredit terms►AllowancesAllowances►Payment modePayment mode

Physical distributionPhysical distribution

►ChannelsChannels►CoverageCoverage► InventoryInventory►WarehousingWarehousing►AssortmentsAssortments►LocationsLocations►TransportationTransportation

PromotionPromotion

►AdvertisingAdvertising►Direct marketingDirect marketing►Sales promotionSales promotion►Personal sellingPersonal selling►PublicityPublicity►Public relationsPublic relations

Marketing toolsMarketing tools

► Product life cycle ( PLC) curve – bell shapedProduct life cycle ( PLC) curve – bell shaped► Introduction-sales slow, no profits, heavy Introduction-sales slow, no profits, heavy

expenditure, buyers innovators, no expenditure, buyers innovators, no competitor a product is newcompetitor a product is new

►Growth-as product accepted, profit high, Growth-as product accepted, profit high, competition high, similar products producedcompetition high, similar products produced

►Maturity- slow down a acceptance level is Maturity- slow down a acceptance level is reached. Profits stabilise or decline, increased reached. Profits stabilise or decline, increased competition. Innovative marketing to be donecompetition. Innovative marketing to be done

►Decline – declining sales and profits erode. Decline – declining sales and profits erode. Very few competitors left. Investment Very few competitors left. Investment stopped.stopped.

SWOT analysisSWOT analysis

►External environment analysis ( O&T)External environment analysis ( O&T) Both macro and micro factors to be monitored.Both macro and micro factors to be monitored. Macro- non controllable. Impacts long term Macro- non controllable. Impacts long term

business plans & units.business plans & units. Eg: social, legal, economic, political, Eg: social, legal, economic, political,

technologytechnology Micro – task factors – non controllable-impacts Micro – task factors – non controllable-impacts

medium run. More direct impactmedium run. More direct impact Eg: customers, employees, competitors, Eg: customers, employees, competitors,

distributors, creditors, suppliers, other distributors, creditors, suppliers, other stakeholdersstakeholders

SWOT analysisSWOT analysis

► Internal environment analysis (S&W)Internal environment analysis (S&W) Identify S&W to tackle O&TIdentify S&W to tackle O&T Components related to functional areas likeComponents related to functional areas like

►MarketingMarketing►FinanceFinance►ManufacturingManufacturing►PurchasePurchase►R&DR&D► ITIT►HRHR

LeadershipLeadership► ImageImage

Marketing PlanMarketing Plan

►To provide assessment of current To provide assessment of current situation & positionsituation & position

►Focus efforts in an identified directionFocus efforts in an identified direction►Give clear cut performance targetsGive clear cut performance targets► Identify ways to achieve targetsIdentify ways to achieve targets►Allocate resourcesAllocate resources►Direct all towards the common Direct all towards the common

objectivesobjectives

Marketing PlanMarketing Plan

►Should be a written documentShould be a written document►Spell out actions to be takenSpell out actions to be taken►When, where, by whom and what When, where, by whom and what

resources are availableresources are available►Should be evaluatedShould be evaluated

Hierarchy of marketing planHierarchy of marketing plan

► Corporate mission Corporate mission ►corporate objectives corporate objectives ► marketing objectives marketing objectives

►marketing plan marketing plan ►marketing strategies marketing strategies

►marketing programmes marketing programmes ►marketing tacticsmarketing tactics

Marketing Plan- content & Marketing Plan- content & structurestructure

►Executive summaryExecutive summary►Current situation analysisCurrent situation analysis►Performance reviewPerformance review►Key issuesKey issues►Marketing objectivesMarketing objectives►Marketing strategyMarketing strategy

Marketing Plan-content & Marketing Plan-content & structurestructure

►Marketing action planMarketing action plan Target marketTarget market Mixing of marketing variables (4Ps)Mixing of marketing variables (4Ps) Who is responsible for each actionWho is responsible for each action When & where action will be?When & where action will be? How much is the budget for each action?How much is the budget for each action?

►Projected profit & loss statementProjected profit & loss statement►ControlsControls►Contingency planContingency plan

Tools to estimate market Tools to estimate market demanddemand

►Qualitative tools – opinion surveys- Qualitative tools – opinion surveys- survey of buying intention, composite survey of buying intention, composite sales force opinion, Delphi technique sales force opinion, Delphi technique

►Quantitative tools – Quantitative tools – ►ExtrapolationExtrapolation►Time series analysisTime series analysis►CorrelationCorrelation►Econometrics modelsEconometrics models

Ansoff’s Product –Market Ansoff’s Product –Market expansionexpansion

► Three ways of achieving growth:Three ways of achieving growth:► IntensificationIntensification► IntegrationIntegration►DiversificationDiversification

Ansoff speaks of market expansion by Ansoff speaks of market expansion by intensification – firm spots & utilises intensification – firm spots & utilises opportunities for opportunities for improving productsimproving products and and market market penetrationpenetration of its existing businesses. and of its existing businesses. and market development market development is by finding new markets is by finding new markets for existing productsfor existing products

►Thank youThank you