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Marketing and Promotions Process Model:

➢Promotions must be coordinated with other areas of the marketing mix

➢How promotions fit into an organization's marketing strategy and programs.

4 major components

1. Marketing Strategy & Analysis: Develop marketing strategy & analysis in which company decide the products/service areas and in markets it wants to compete.

2. Target Marketing Process: Coordinate the various marketing mix elements into a cohesive marketing program that can reach the target market efficiently.

3. Marketing Planning Program Development: Develop a marketing plan by integrating all marketing mix elements to provide consistency and maximum communication impact.

4. Target Market: from the understanding of the market, a firm develops its market segments or target markets.

1. Marketing strategy & analysisA. Opportunity analysis: A careful analysis of the marketplace-current or new markets

Market opportunities: where there are favorable demand trends , where company believe customer needs and opportunities are not being satisfied , and where it can compete effectively.

B. Competitive Analysis: Carefully analysis the competition to be faced in the marketplace.

Ex. As a result of shrinking Cola sale, Coke came up with Diet coke, Coke with Lemon

Competitive advantage

C. Target Market Selection/target marketing: after evaluating the opportunities in various market segments, company select one or more target market.

Break the market into segments targeting one or more segments pursue different strategies for the target segments

2. Target Marketing Process:

4 basic steps:-----

A. Identifying Market with unfulfilled need: identify the specific needs of a group of people, select one or more of these segments as a target, develop marketing program directed to each.

B. Market Segmentation: Segment market with similar need and then respond similarly to a market action

Geographic segmentation

• nations, states, countries

Demographic segmentation

• age, sex, family,

Psychographic segmentation

personality or lifestyle

Behavioristic Segmentation:

• usage, loyalty or buying response

Benefit segmentation:

• attributes or benefits

C. Selecting a Target Market Target marketing process

1. Determining how many segments to enter

2. Determining which segments offer the most potential- determine the most attractive segment, examine the sales potential of the segment, the opportunities for growth, the competition, and its own ability to compete.

D. Market Positioning

Positioning- fitting the product or service to one or more segments of the broad market in a way which is different from the competitors.

Differentiating with competitors.

product attributes and benefits

Price/ Quality

use or application

product class

product user

competitor

cultural symbols

Repositioning

Determining the Positioning Strategy

Marketer must decide which strategy is best suited for the firm or product and begin developing the positioning platform.

6 steps process of positioning strategy

Identifying competitors

Assessing consumers’

perceptions of competitors

Determining competitor’s

position

Analyze the consumer’s preferences

Making the positioning decisions

Monitoring the position

3. Marketing Planning Program Development:

Combining the various marketing mix elements(4Ps) into a cohesive, effective marketing program.

A. Product Decisions: quality, branding, packaging,

1. Branding: choosing a brand name for a product as brand name communicate attributes and meaning.

Brand equity: an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation.

2. Packaging: the package provides functional benefits such as economy, protection, storage.

Important way to communicate with the consumers.

B. Price Decisions: what consumers must give up to purchase the product or service.

Keep in mind: cost, demand, competition, perceived value( high cost, high quality)

Relate price to advertising & promotion:

The relationship among price, product quality, and advertising.

From a study, observations recorded:---

Brands with high advertisement budget could charge premium price

Companies with High quality products charge high price

C. Place/Distribution Channel Decisions: decisions regarding to how the company will make its products and services available for purchase.

Direct channel: using direct selling program. Ex, using direct response marketing, telemarketing or internet

Indirect channel: using wholesalers (who sell to other resellers) and retailers (sell to final consumer)

D. Developing Promotional Strategies: Push or Pull?

Advertising and other forms of promotions

Promotional Push Strategy: push the product through the channels of distributions by aggressive selling and promoting to resellers.

Convince resellers to make a profit of the manufacturers

Promotional Pull Strategy: create demand among end-users by spending money on advertising and sales promotion which is directed towards the ultimate end-users.