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Name:_____________________________ Form:____________ Teacher: _______________________ Edexcel BTEC INTERNATIONAL in BUSINESS Level 2 Business Organisations Business Purposes The Marketing Plan

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Page 1: Booklet Unit 19 - RSB Marketing Plan compressedrsbstudy.com/resources/Business/Booklet-Unit-19... · more than 2 million pixels saving time make you healthier more relaxed make more

Name:_____________________________

Form:____________

Teacher: _______________________

EdexcelBTEC INTERNATIONAL in BUSINESSLevel 2

Business

Organisations

Business

Purposes

TheMarketingPlan

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Edexcel BTEC International in Business Unit 19: Marketing Plan

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Unit 19: Marketing Plan

ckes

Aim:

Develop a marketing andpromotion plan for yourown micro start-upbusiness or socialenterprise

Outcomes:

Understand marketingconcepts used bybusinesses

Be able to plan amarketing and promotion

1 Understand marketing concepts used bybusinessesMarketing concepts:1. Buyer decision-making process(Attention, Information, Decision, Action,Satisfaction)

2. Unique selling proposition (USP), e.g.unique mix/product, quicker, friendlier,cheaper

3. Segmentation and targeting (definingtypical customers, targeting groups ofpotential customers)

4. Benefits versus features from customers’point of view

5. Marketing mix (product or service, placeor distribution, price, promotion)

. importance of designing marketing mix tomeet customers’ needs

. importance of coordinating all aspects ofthe marketing mix

. importance of costing a marketing mix

Types of promotion:. e.g. advertising, newspapers, radio, TV,cinema, magazines, outdoor, flyers, internet

. personal selling

. promotional activities, e.g. competitions,money-off coupons, free gifts with purchase,tasting sessions, demonstrations, fundraising

. direct marketing

. direct mail

. catalogue shopping, internet shopping

. sponsorship

. public relations, e.g. press releases, pressconferences, promotion through networking

. cost-effectiveness of method and plan

Evidence of success or failure in themarketplace:

. business marketing campaigns that haveworked and those that have failed and thereasons why

Assessment:

Micro start-up business

. Assess own businessproposition usingmarketing concepts

. Types of promotion

. Marketing plan

. Cost promotion plan

When we launched a new company, Ireviewed the ads and marketingmaterials and asked those presentingthe campaign to read everything aloudto test the phrasing and concept. If Icould grasp it quickly, then it passedwith muster. We would get ourmessage across only if it wasunderstandable at first glance.Richard Branson

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Marketing concepts usedby businesses

MarketingMatching the product or serviceto meet customers' needs

Communicate benefits of yourproduct or service 1. Buyer decision-making process

Stage 1Need or attention

Stage 2Search forinformation

Stage 3Look at

the options

Stage 4Make a choice

Stage 5Evaluate

the purchase

The start ofdecision making:

understandingyou have a needor a problem thatneeds solving

Search forinformation aboutthe product or

service

Evaluate thedifferent products

or services

Decision to buywhich product orservice and fromwhere to buy it

Evaluate theproduct or service- ongoing as you

use it

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

EXERCISE 1A.You have broken your phone, explain the buyer decision making process

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When a product or service is introduced to the market, it is difficult to stand-out from all theother competitors.

Unique = design, functions, taste/flavour, better performance etc

Part of marketing is to find or create something to use an Unique Selling Proposition, this mightbe psychological - link product with a slogan or famous person

Put yourselfin your

customer'sshoes

What is it that your customers want?Price, friendly staff, customer service,convenience of store or delivery etc.

Try to find the real motivation of thebuyers: taste, colour, feel, look etc

Ask your customers why theybuy: it can be your USP

Know whatmotivates your

customers' behaviourand buyingdecisions

Know whycustomers buyyour products or

services and not yourcompetitors

Product: _______________________________

USP: __________________________________

_______________________________________

Product: _______________________________

USP: __________________________________

_______________________________________

Product: _______________________________

USP: __________________________________

_______________________________________

Product: _______________________________

USP: __________________________________

_______________________________________

EXERCISE 2A. Choose four products or services and add their USP

2. Unique Selling Proposition (USP)

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3. Segmentation and targeting

Segmentation and targeting is identifying different markets within the population

Different products/services appeal to different ages/gender/location/religions etc

Knowing who your customers area helps target marketing resources to reach the right audience

Age: ________________ Product/Service: __________________________________________

Age: ________________ Product/Service: __________________________________________

Age: ________________ Product/Service: __________________________________________

Gender: ________________ Product/Service: _______________________________________

Gender: ________________ Product/Service: _______________________________________

Religion: ________________ Product/Service: _______________________________________

Product: Playstation

___________________________________

____________________

Product: Rolls Royce

___________________________________

____________________

Product: MacDonalds

___________________________________

____________________

Product: Network Cafe

___________________________________

____________________

Product: NIKE

___________________________________

____________________

Product: H & M

___________________________________

____________________

EXERCISE 3A. Give examples of target market and products/services

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4. Benefits v features (from customers point of view)

Features. facts about the product or service

Benefits. give customers a reason to buy becausethey explain how your product or service

improves their lives

So what?Product or service may have many features

BUT

Why do people want that product or service?

Products features. colourful OLED display withmore than 2 million pixels

saving time

make youhealthier

more relaxed

make moremoney

faster

new materials

lighter

cheaper

stronger

so what?

Benefit to customer. best display ever

. Qi wireless charging . no more charging cablesso what?

iphone X

. 12-megapixel wide-angle lensand a second telephoto lens forzooming with 'True Depth'

. best photos ever, great in low light& less shaky videos

so what?

. 3D face recognition so what? . faster more secure phone opening,safer than fingerprints

. Highlight key benefits

. Avoid technical language

. Show empathySo what?

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Mobile phone Integrated emailapplication

PRODUCT FEATURES SO WHAT?

Computer 1 TB hard drive

Car

Automatic safety restraint

system, and both front-

and side-impact airbags.

Grocery store Free delivery

Camera 25x wide-anglelightweight

NIKKOR glass lens

EXERCISE 4A. For each product/service give the benefit to the customer - SO WHAT

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Yoghurt High protein bioGreek youghurt

PRODUCT FEATURES SO WHAT?

Childcare centre Open from07:00 - 20:00

Office chair

Pneumatic seat heightadjustment that has beendesigned by ergonomic

experts.

Slimmingunderwear

Shaping Lycraunderwear

Bicycle Titanium 10kgbike frame

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5. Marketing mix

Products can be tangible or intangible

Tangible is something you can take away with you e.g. shoes

Intangible is something you can't take away with you e.g. a cinemaexperience

Examples of tangible products

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

Examples of intangible products

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

PRODUCT PLACEPRICE PROMOTION

The aim of any business is to meet the needs of the customer, to keep them happy so theybuy the product or service again - repeat business.

PRODUCT

EXERCISE 5A. Give examples of products/services in the different stages of the life cycle

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Product life cycle

sales

Introduction Growth Maturity Saturation Decline

Introduction new product, low sales - persuading people to buy the productperhaps little or no competition

Growth sales start to increase, repeat business, people know about theproduct and are interested - perhaps some competition

Maturity sales good but not increasing - loyal customersstrong competition

Saturation market full of the product, many competitorsperhaps pricing very competitive (lower prices to keep customers)

Decline too much competition, lower prices, perhaps people no longerwant the product

perhaps newer better products on the market

5. Marketing mix: ProductPRODUCT PLACEPRICE PROMOTION

PRODUCT

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Product life cycle

Examples of 'introduction' products

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

Examples of 'growth' products

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

Why is the 'introduction' stage risky?

. ___________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

5. Marketing mix: ProductPRODUCT PLACEPRICE PROMOTION

PRODUCT

EXERCISE 5A. Give examples of products/services in the different stages of the life cycle

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Examples of 'maturity' products

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

Examples of 'saturation' products

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

Examples of 'decline' products

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

5. Marketing mix: ProductPRODUCT PLACEPRICE PROMOTION

How do you know your products are indecline?

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

. ______________________________________

EXERCISE 5a. Give examples of products/services in the different stages of the life cycle

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Why is the product life cycle important?

Marketing. focus on different aspects at different times

e.g. introduction = people knowing about the product

Price. perhaps higher price at introduction (unique selling point)

. price lower with more competition

Example

Promotion. before and at the start of the life cycle

. create customer loyalty

. find new customers

Example

Example

Extension strategy. if product in saturation or decline stage:

. change product to get more interest and sales

. change to include latest trends e.g. eco friendly

. promote more and try different types of promotion

Example

5. Marketing mix: Product

PRODUCT

PRODUCT PLACEPRICE PROMOTION

EXERCISE 5B. Give examples for each of the following

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Factors affecting price. does it have to make a profit . can the price be subsidised

. price of the competitors' products/services . affordability

. image of product/service . political consideration

. time or season can change the price

1. Does the product or service have to make a profit?Example of a non profit service/product:

2. Can the product or service be subsidised?Example of a subsidised product/service:

3. Competition can effect the price of a product/serviceGive an example of how competition can change price:

PRICE

5. Marketing mix: PricePRODUCT PLACEPRICE PROMOTION

EXERCISE 5C

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4. What can the customer afford for a product/service?Give an example:

5. Image of a product/service can effect the priceGive an example of image buying:

6. Political considerations for a product/serviceGive an example:

7. Time or season can change the price of a product/serviceGive an example:

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5. Marketing mix: PricePRODUCT PLACEPRICE PROMOTION

PRICE EXERCISE 5D. Give advantages & disadvantages for eachpricing concept

Price leader Sets the price - often for a new productor service.

Advantages Disadvantages

Prestige leader Set a high price to suggest it ishigh quality

Advantages Disadvantages

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Loss leader pricing Set the price low (make a loss) to attractcustomers who buy other moreexpensive services/products

Advantages Disadvantages

Leader pricing Set a low price to get new customers

Advantages Disadvantages

Variable pricing Different price at different times of theday, or year etc

Advantages Disadvantages

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Business: GUCCI

Location: ________________________________

Advantages

1. ______________________________________

2. ______________________________________

Disadvantages

1. ______________________________________

2. ______________________________________

Business: Wild Wadi

Location: ________________________________

Advantages

1. ______________________________________

2. ______________________________________

Disadvantages

1. ______________________________________

2. ______________________________________

Business: SALT

Location: ________________________________

Advantages

1. ______________________________________

2. ______________________________________

Disadvantages

1. ______________________________________

2. ______________________________________

Business: E Golf Megastore (Al Wasl FC)

Location: ________________________________

Advantages

1. ______________________________________

2. ______________________________________

Disadvantages

1. ______________________________________

2. ______________________________________

5. Marketing mix

PLACE Business locationEXERCISE 5E. For each business give the advantages & disadvantages for it's location

costofrent

road access

parking

traffic

PRODUCT PLACEPRICE PROMOTION

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Business:

Location: ________________________________

Advantages

1. ______________________________________

2. ______________________________________

Disadvantages

1. ______________________________________

2. ______________________________________

Business:

Location: ________________________________

Advantages

1. ______________________________________

2. ______________________________________

Disadvantages

1. ______________________________________

2. ______________________________________

Business:

Location: ________________________________

Advantages

1. ______________________________________

2. ______________________________________

Disadvantages

1. ______________________________________

2. ______________________________________

Business: _______________________________

Location: ________________________________

Advantages

1. ______________________________________

2. ______________________________________

Disadvantages

1. ______________________________________

2. ______________________________________

5. Marketing mix

sizeparking

costofrent

PRODUCT PLACEPRICE PROMOTION

Business locationEXERCISE 5E. For each business give the advantages & disadvantages for it's location

PLACE

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Place: ____________________________

Examples of price (sq. ft. & price)

1.

2.

3.

Place: ____________________________

Examples of price

1.

2.

3.

Place: ____________________________

Examples of price

1.

2.

3.

Place: ____________________________

Examples of price

1.

2.

3.

Place: ____________________________

Examples of price

1.

2.

3.

Place: ____________________________

Examples of price

1.

2.

3.

Research (dubizzle.com) Different places - different prices

EXERCISE 5F. Research 12 different places in Dubai - give examples of prices for those locations

5. Marketing mixPRODUCT PLACEPRICE PROMOTION

PLACE

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Place: ____________________________

Examples of price

1.

2.

3.

Place: ____________________________

Examples of price

1.

2.

3.

Place: ____________________________

Examples of price

1.

2.

3.

Place: ____________________________

Examples of price

1.

2.

3.

Place: ____________________________

Examples of price

1.

2.

3.

Place: ____________________________

Examples of price

1.

2.

3.

ns

5. Marketing mixPRODUCT PLACEPRICE PROMOTION

PLACE Research (dubizzle.com)Different places - different prices More popular the place, the higher the price

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PROMOTIONPROMOTION - let people know about your product/service

People need to know about your store/shop.

Promotion can be in different ways: logo, newspapers, magazines,roadside, internet, in malls, social media etc.

When deciding on how to promote your business there are several things tothink about......

1. What are you trying to achieve?. promote the brand? . tell people where you are? . increase sales?

2. Who are we interested in?. who are your customers?

3. Where should we promote/advertise?. options for promotion .....

4. When should we promote/advertise?. before a business opens? . at certain times during the 'product life cycle'?

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

Research (dubizzle.com) Different places - different prices

EXERCISE 5G. Complete question 1 and 2

�Doing business without advertising is like winking at a girl in the dark.You know what you are doping but nobody else does.Steuart H. Britt

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1. What are you trying to achieve?Before you open

______________________________________________________________________________________________________

______________________________________________________________________________________________________

As you open

______________________________________________________________________________________________________

______________________________________________________________________________________________________

After you have opened

______________________________________________________________________________________________________

______________________________________________________________________________________________________

2. Who are you interested in?

Male Children 15-25 26-40 41-60 60+

Female Children 15-25 26-40 41-60 60+

Nationalities

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PROMOTION Where should we promote/advertise? . options ...

Events Digital

Newspapers / magazines Other

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

EXERCISE 5H. Give examples of where you can promote/advertise

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1. ________________________________

Male/Female ______________________

Ages _____________________________

Nationality ________________________

Other______________________________

Research the various social media platforms

For each one you have chosen, say who uses it:

Male/ Females Ages of people

Nationality (language) Other

2. ________________________________

Male/Female ______________________

Ages _____________________________

Nationality ________________________

Other______________________________

3. ________________________________

Male/Female ______________________

Ages _____________________________

Nationality ________________________

Other______________________________

4. ________________________________

Male/Female ______________________

Ages _____________________________

Nationality ________________________

Other______________________________

5. ________________________________

Male/Female ______________________

Ages _____________________________

Nationality ________________________

Other______________________________

Where should we promote/advertise? Social media

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

EXERCISE 5I. Research 5 different social mediaplatforms & complete the information

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PROMOTION Types of promotion. advertising (newspapers, TV, radio, magazines, internet, flyers etc

. personal selling

. promotional activities (competitions, coupons, free gifts, demonstrations, 2 for 1, pricematching, loyalty programmes etc)

. direct marketing

. direct mail

. digital communications

. sponsorship

. public relations (press release, press conferences, networking)

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

Direct marketingContacting customersthrough different ways

(email, post, telephone) witha 'call to action'

Disadvantages

AdvertisingUsually paid promotionsthrough newspapers,magazines, TV, radio,

billboards etc

Advantages Disadvantages

Promotional activitiesShort term activities to getinterest in product/service &get customers to respond

e.g. coupons, offers,discounts, giveaways etc

Advantages Disadvantages

coup

ons

vehicles magazines

mail shot

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Personal sellingPersonal contact betweencompany and the buyer

Examples: meetings, emails,telephone etc

Advantages Disadvantages

SponsorshipFinancial support for an event,

activity often throughadvertising

Advantages Disadvantages

Public relationsUsually use PR companies,placing information abouta product or company

in the news

Advantages Disadvantages

Direct mailingSending postal mail(ads, leaflets etc)to large groupsof customers

Advantages Disadvantages

Digital communicationPromotions for internet &

phone etc. includingsocial media

Advantages

Starbucks 'sign-language' Virgin Atlantic LGBT flight

Red Bull - run Dubai Duty Free- horse racing

MacDonalds on Facebook Levis on Instagram

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PROMOTION

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

Direct marketingContacting customersthrough different ways

(email, post, telephone) witha 'call to action'

Advantages Disadvantages

AdvertisingUsually paid promotionsthrough newspapers,magazines, TV, radio,

billboards etc

Advantages Disadvantages

Promotional activitiesShort term activities to getinterest in product/service &get customers to respond

e.g. coupons, offers,discounts, giveaways etc

Advantages Disadvantages

Digital communicationPromotions for internet &phone etc. including social

media

Advantages Disadvantages

EXERCISE 5J. Give advantages & disadvantages for each of the different types of promotion

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Personal sellingPersonal contact betweencompany and the buyer

Examples: meetings, emails,telephone etc

Advantages Disadvantages

SponsorshipFinancial support for an event,

activity often throughadvertising

Advantages Disadvantages

Public relationsUsually use PR companies,placing information abouta product or company

in the news

Advantages Disadvantages

Direct mailingSending postal mail(ads, leaflets etc)to large groupsof customers

Advantages Disadvantages

n

EXERCISE 5J. Give advantages & disadvantages for each of the different types of

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PROMOTION

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

Case study: Dove taken from https://econsultancy.com/

Dove’s marketing director Stacie Bright had a moral problem in 2006.After years of marketing Dove’s products using what the mainstream considers ‘beautiful’models Bright realised this was affecting her own daughter’s self-esteem, and thereforeaffecting the self-esteem of everybody’s daughter subjected to this advertising.Bright decided to do something different, she created a mock-up advert using all of thecompany directors’ own daughters. with text alongside each image saying how these girlsbelieved they weren’t beautiful.

Bright and her team showed it to the executives, confident that this was a risky but worthwhilemove.The risk worked. The Dove executives were of course deeply affected, said a big yes throughtheir tears, and completely overhauled Dove’s marketing strategy, which has continued to thisday.Dove doubled profits from £1bn to £2bn and turned the business of selling soap into amoral campaign.

The cynical can take from this what they will, but the campaign genuinely came for a place thatwished for change; using stories to make a culturally positive difference.

Promotional case studies

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Case study: Casper taken from www.socialsprout.com

The direct-to-consumer mattress industry has grown enormously over the past few years. One company that has beenleading the charge, with the help of their social media strategy, is Casper.Casper injects humour into their marketingA haiku from your mattress: What if mattresses had no opposable thumbs? Then they couldn’t tweet.— Casper (@Casper) 11 May 2018

Being humourous on social media is a tough challenge. In fact,only 36% of consumers say they want to make apurchase due to brands being funny on social media.Casper found a way to pull it off though. Instead of making their content all about mattresses, they focus on the valuetheir products bring—sleep.The reason this is so important is because unless you’re currently shopping for one, most people don’t care aboutmattresses. If all Casper’s content was about how to pick a mattress or the benefits of their products, it’d get boringvery quickly. Most people would not be interested. However, everyone sleeps.

Even if you don’t currently want a mattress, you’re likely to follow Casper on social media because they shareentertaining content about sleep.Another thing Casper does well is stay active. While they have different posting frequencies for each social mediaprofile, you’ll be hard pressed to find a day where they don’t post on at least one of their accounts.Casper stay active, across different each social networks as some might follow you on Facebook while others followyou on Instagram or Twitter. Casper publish the same piece of content to each profile.Casper use of social media seems to work well

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PROMOTION

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

Case study for O2 - Be More Dog taken from https://www.smartinsights.com

Originally launch last year O2’s ‘Be More Dog’ campaign, which featured a ginger cat trying to live adog’s life had been a huge success for the brand. Granted - being ‘more dog’ has nothing to do withmobile phones, but the quirkiness of the integrated campaign is what led its success.

To promote its app in May 2014 launched a £7m campaign using England rugby players, Mike Brownand Alex Goode attempting to Be More Dog: in this, we see the cat become a motivational speaker.

Share

</div></div>As well as television and cinema, the campaign also features outside and online adverts, with geo-located mobile advertisements and homepage takeovers on a range of websites, including MSN andYouTube. The O2 priority app in itself is a marketing tool, offering consumers the chance to buytickets and experiences before anyone else.

This integrated marketing campaign from O2 is clever as it creates great interest and offers themsomething extra in the form of priority.

Promotional case studies

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Ex. ad

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Case study for GO PRO taken from https://ahrefs.com/

When I say “content marketing”, your mind probably thinks of written content first, but video has

become a major player in the way online users consume media.

And when I say “major player” I mean MAJOR PLAYER. In 2015,time spent watching online video

so the same as traditional television for consumers age 16–45. Every year, the value of online

video content grows, and GO PRO has been taking advantage of this trend.

GoPro is already in prime position to take advantage of online video, since its products are video

creating cameras. But they’ve distinguished themselves in a crowded market by becoming THE

brand for capturing action sport footage.

GoPro video footage is everywhere, and the company has partnered with some high-end

producers and action proteges to produce a series of truly stunning videos that highlight the fun,

action, and adventure their target audience is looking for.

But more importantly, GoPro is getting tons of free marketing from the customers themselves. By

promoting customer uploads and targeting an audience looking to record their exploits, the

company sees thousands upon thousands of users upload branded content every month. These

uploads are then constantly edited and compiled by other users into “People are Awesome” videos

and non-sponsored “GoPro Compilations” like the one below.

The company has multiple millions of followers across all social media platforms andrecorded $1.6 Billion in revenue in 2015, a 16% growth from 2014 despite a weaker 3rdquarter showing than expected. They are doing something very very right.

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PROMOTION

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

Case study for O2 - Be More Dog

Reasons for success:

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Case study for Go Pro

Reasons for success:

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Promotional case studies: successes

EXERCISE 5K. List the reasons why each of the promotional campaigns was successful

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Ex. ad

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Case study for

Reasons for success:

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Case study for Dove

Reasons for success:

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Case study: American Airlines taken from http://www.cracked.com/

In 1981, American Airlines decided to seduce the rich people of the world by giving them unlimitedfirst-class tickets for a one-time fee (because once you have enough money to buy anything, younever have to buy anything ever again). For a cool $250,000, customers received the AAirpass,consisting of unlimited first-class tickets for the rest of their lives. For an extra $150,000, they couldbring a buddy along.It sounds like a lot of money -- indeed, that's what AA marketing must have thought too. But first-class tickets aren't cheap, and if you can use as many as you want for the rest of your life, you'llquickly make your money back in tickets, and after that every ticket you get is absolutely free.AA thought that their pass would be used by powerful companies to shuttle their top executivesaround; they never anticipated a bunch of run-of-the-mill wealthy people getting their hands on themand going stark-raving mad with power. Which they did. The prospect of "free flights any time, all thetime, forever" was just too much for some people. One guy flew to London 16 times ... in a singlemonth. Why not? If you don't mind the flight -- and it's first class, remember -- then it's like having aStar Trek teleporter. Decide you want to have lunch in London tomorrow, just hop on a plane andgo. One guy has flown over 30 million miles on his lifetime pass -- enough to go around the globemore than a thousand times, or to fly New York to Tokyo 4,500 times.And remember, the buddy pass meant you could always bring somebody along. One guy liked tooffer his buddy ticket to complete strangers, to let them taste the good life for once. Another gaveaway the frequent-flyer miles he accumulated to AIDS patients so they could see their families. Itwas all legal -- the deal didn't specify whom they could bring. Hey, want to impress a date? Howabout a spontaneous trip to Paris ... every weekend. Why not? It's free. In the beginning they didn'teven prohibit pass holders from selling the buddy seat. You could sell it for a few thousand bucksand pay for your hotel and meals. It's no wonder these people practically lived on planes.Some people kept the buddy seat vacant, just to keep AA from making any money.None of this was free to AA, of course. After years of this programme, the company realised thatthere were individual pass holders who were getting $1 million in free flights every year. AA stoppedissuing new tickets in 1994 and hired a fraud investigator to start hassling existing customers,looking for reasons to stop them using their tickets. It's as if one day they woke up and realised,"Wait, this promotion we told customers was a great deal for them actually was. Put a stop to itimmediately!"

PROMOTION Promotional case studies: failures

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

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me

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Case study for American Airline

Reasons for failure:

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What could American Airlines done different with the same idea?

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EXERCISE 5L. List the reasons why the promotional campaign was a failure and suggest want it could have done instead

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PROMOTION Promotional case studies: failures

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

Case study: Nokia phones taken from https://petersandeen.com/

Since Stephen Elop became Nokia’s CEO in September 2010, Nokia’s stock price hadnosedived.Microsoft bought Nokia—presumably to save the biggest Windows Phone manufacturerfrom looming bankruptcy.But what made Nokia fail? After all, their products weren't worse than the competitors’ products.Their marketing strategy, however, was a shining example of mistakes you just can’t afford tomake.Nokia’s marketing people didn’t seem to understand what the best reasons people should buy theirproducts. And when you don’t know what your marketing should focus on, there’s little chance for itto work.You need to know what is your product's proposition - why your products and services are the bestchoice for your target customers.iPhones are often considered the most prestigious, and if you have a Mac, there are severalreasons for choosing the Apple-family member.Samsung’s Android phones are often seen as the most versatile, and they keep up the idea of beingmore user friendly than iPhones.But Nokia’s phones aren’t connected to anything special. They’ve now tried to create an idea ofsuperior phone cameras. But that’s too little too late.It seems there’s hardly anything that would make them better than their competitors.But just like almost every other company on the planet, something is different and better aboutthem. The problem is that they don’t seem to know what it is.So, when you talk about smartphones, it shouldn’t even be difficult to create a compelling valueproposition. Nokia just hasn’t done it.

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Nokia’s marketing strategy

Nokia’s marketing strategy is good, or at least they’re doing all the right things.But Nokia’s marketing messaging is all over the place. The lack of consistency guarantees thatpeople have no idea what makes Nokia products better than others.Their marketing won’t work until they understand what the message should be that the marketingdelivers. Right now, all they’re doing is trying almost random messages to see if something wouldmagically change the company’s future.For example, TV advertising can be a great marketing method (though for small businesses it’susually a waste of money). But when your marketing is as unfocused as Nokia’s, TV ads are onlygood at draining your marketing budget; you need to be consistent with your messaging for it towork.When you’re clear about what your value proposition is, you can focus all your marketing efforts toit. Everything you do then can revolve around just the key ideas that make the biggest difference toyour target customers (and your success).

That’s all an effective marketing strategy does; it makes people understand what are the bestreasons they have for buying from you. Nothing more, nothing less.So, use your value proposition in marketing—always.

EXERCISE 5M. List the reasons why the promotional campaign was a failure and suggest want it could have done instead

Case study for Nokia

Reasons for failure:

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American Express: Small Business Saturday

Promoted online and offline to American Express cardholders and businesses using Amex, the aimwas to get people back into their main street or high street and to support smaller, local stores. Afull pack of resources was created for business owners, providing a consistent brand image, readyto go material and enabling entire communities to participate.

Simple message: The fact that 'Small Business Saturday' is thought about about millions ofAmericans and gaining support in other markets is due in large part to the simplicity of itsmessage, and the fact that the majority of people want small retailers to survive on MainStreet USA, or High Street Great Britain, or la Rue Principale de France.

Consistency: The simplicity of this message enabled American Express to create marketingcollateral for small businesses, print advertising, Facebook apps, You Tube explainer videosand Google Maps listings that said the same thing.

Continuity: Once again, the simple message and the use of social media (You Tube, Twitterand Facebook) as the main promotional campaign meant the message remained consistentand focused on the desired action.

Complimentary. Its use of Facebook as a ‘hub and amplifier’ was integrated with Twitterinteractions that allowed customers to talk about their own favourite businesses and forbusinesses to publicise their participation.

Effectiveness. It won a host of awards. It was made an official ‘day’ by the US Senate.

Even Barack Obama tweeted his support. And it is now rolling out to countries worldwide.

A co-ordinated marketing mix

5. Marketing mixPRODUCT PLACEPRICE PROMOTION

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Case study: Coca-Cola - Coca-Cola Life taken from https://www.smartinsights.com

Recently, Coca-Cola launched a new product to its long standing line of soft drinks, called 'Coca-Cola Life' along with a month long campaign. Coca-Cola Life fits in the same kind of category asCoke Zero and Diet Coke - another one of Coca-Cola’s attempts to release a healthier option to itsmain heavily sugary product.

The campaign is being rolled out across 7,000 outdoor locations nationwide with billboards, busand digital screen ads; these are all being supported by print, digital, experiential and point of saleactivity. Although television is not being used the buzz on social media since the drinks’ launch hasbeen mainly positive.Along with all of the above, Coca-Cola launched a competition - on Saturday 20th September apop-up shop opened on South Molton Street, London offering customers to not just have a taste ofthe new Life drink, but also give them a chance of winning a Coca-Cola Life prize - one of thosebeing a long weekend in New York City. Those who were not able to visit the pop-up shop still hadthe chance to enter the competition by sharing a Coca-Cola Life moment picture online and usingthe hashtags #CocaColaLife and #comp.The product is yet to be proven as a success, but as a campaign it’s fulfilling every specification tobe a great integrated marketing campaign.There’s a few lessons that can be learned from these integrated marketing case studies; one ofthose being that it doesn’t matter if you mix up the media within your campaign, in fact it’s largelypositive, you just have to ensure that there is brand consistency across the entire roll out.The way in which the message is communicated can also alter the effectiveness of the campaign,as can choosing which media should be at the forefront or the driving factor behind your strategy.It can all become a difficult balance to get right but it’s crucial that you do get it right.

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EXERCISE 5N. Explain why the co-ordinated campaigns for American Express and Coca Cola were successful

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When should we promote/advertise?. before a business opens?

. at certain times during the 'product life cycle'?

Before the business opens

sales

Introduction Growth Maturity Saturation Decline

Product Life Cycle

1. Introduction

PROMOTION

PRODUCT PLACEPRICE PROMOTION5. Marketing mix

EXERCISE 5O. Use all the information to give examples of different promotions you can use during the life

cycle of a product

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2. Growth

3. Maturity

4. Saturation

5. Decline

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5. Marketing mix: importance of designing marketing mix to meet customers’ needs

Customers' needs

Does what the customer wants it to do

Has the correct features

Looks good (well designed)

The right price: what the customer will to pay

Higher profit - more expensive, less demandv

lower profit, less expensive, more demand

PRODUCT

PLACE

PRICE

PROMOTION

Products/services are in the right place

Customers can easily get to the place

or

the products are delivered on time

Products/services are promoted to the targetgroup, at the right times

EXERCISE 5Q Apple products are very expensive, its profits are high

Why doesn't Apple reduce the price of its products and sell more of them?

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5. Marketing mix: importance of costing a marketing mix

social media

TV

magazines

couponsdiscounts

sponsorships

public relations

cinema

flyers

free gifts

billboards

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Marketing mix designed to meet customer needsMarketing campaigns focus on bringing value to your consumers/customers.

Create more value for your customers/consumers:

. Know the needs and wants of your customers/consumers

. Link (a) generating income or making money from your business, and (b) delivering

high value to your customers/consumers.

. Be proactive in delivering solutions to your customers/consumers. Become their

partners in writing their own successes.

. Increase the efficiency of the delivery of your services or products.

. Always show your appreciation to your loyal customers/consumers. One way to do this

is to feature them in your social media pages.

. Listen to customer/consumer feedback. Whether the feedback is negative or positive,

you’ll be able to use it to improve your business.

. Apply the standard formula on how to create customer/consumer value, which is

“benefits-cost = customer value”.

. Strengthen your customer service with a goal of leasing your customers. How you

please/satisfy your customers is what matters.

Give more to your customers/consumers. Your three options:

1 Give them the same quantity/quality of product/service but lower the cost.

2 Keep the same cost, but increase the quantity or improve the quality of

your product/service.

3 The ideal is increase/improve the quantity/quality while lowering the cost.

5. Marketing mix: importance of designing marketing mix to meet customers' needs