Terms
Marketing
the sum of activities involved in directing the flow of goods and services from producers to consumers.
Marketing's principal function is to promote and facilitate exchange. Through marketing, individuals and groups obtain what they need and want by exchanging products and services with other parties. Such a process can occur only when there are at least two parties, each of whom has something to offer. In addition, exchange cannot occur unless the parties are able to communicate about and to deliver what they offer. Marketing is not a coercive process: all parties must be free to accept or reject what others are offering. So defined, marketing is distinguished from other modes of obtaining desired goods, such as through self-production, begging, theft, or force.
Marketing is not confined to any particular type of economy, because goods must be exchanged and therefore marketed in all economies and societies except perhaps in the most primitive. Furthermore, marketing is not a function that is limited to profit-oriented business; even such institutions as hospitals, schools, and museums engage in some forms of marketing. Within the broad scope of marketing, merchandising is concerned more specifically with promoting the sale of goods and services to consumers (i.e., retailing) and hence is more characteristic of free-market economies.
Based on these criteria, marketing can take a variety of forms: it can be a set of functions, a department within an organization, a managerial process, a managerial philosophy, and a social process.
Strategic Analysis
Market segments
The aim of marketing in profit-oriented organizations is to meet needs profitably. Companies must therefore first define which needs "and whose needs" they can satisfy. For example, the personal transportation market consists of people who put different values on an automobile's cost, speed, safety, status, and styling. No single automobile can satisfy all these needs in a superior fashion; compromises have to be made. Furthermore, some individuals may wish to meet their personal transportation needs with something other than an automobile, such as a motorcycle, a bicycle, or a bus or other form of public transportation. Because of such variables, an automobile company must identify the different preference groups, or segments, of customers and decide which group(s) they can target profitably.
Market niches
Segments can be divided into even smaller groups, called subsegments or niches. A niche is defined as a small target group that has special requirements. For example, a bank may specialize in serving the investment needs of not only senior citizens but also senior citizens with high incomes and perhaps even those with particular investment preferences. It is more likely that larger organizations will serve the larger market segments (mass marketing) and ignore niches. As a result, smaller companies typically emerge that are intimately familiar with a particular niche and specialize in serving its needs.
Strategic marketing analysis > Marketing to individuals
A growing number of companies are now trying to serve "segments of one." They attempt to adapt their offer and communication to each individual customer. This is understandable, for instance, with large industrial companies that have only a few major customers. For example, The Boeing Company (United States) designs its 747 planes differently for each major customer, such as United Airlines, Inc., or American Airlines, Inc. Serving individual customers is increasingly possible with the advent of database marketing, through which individual customer characteristics and purchase histories are retained in company information systems. Even mass-marketing companies, particularly large retailers and catalog houses, compile comprehensive data on individual customers and are able to customize their offerings and communications.
Today subject is the myrror image!
Positioning
A key step in marketing strategy, known as positioning, involves creating and communicating a message that clearly establishes the company or brand in relation to competitors. Thus, Volvo Aktiebolaget (Sweden) has positioned its automobile as the "safest," and Daimler-Benz AG (Germany), manufacturer of Mercedes-Benz vehicles, has positioned its car as the best "engineered." Some products may be positioned as "outstanding" in two or more ways. However, claiming superiority along several dimensions may hurt a company's credibility because consumers will not believe that any one offering can excel in all dimensions. Furthermore, although the company may communicate a particular position, customers may perceive a different image of the company as a result of their actual experiences with the company's product or through word of mouth.
Marketing-mix planning (Tactics)
Having developed a strategy, a company must then decide which tactics will be most effective in achieving strategy goals. Tactical marketing involves creating a marketing mix of four components"product, price, place, promotion" that fulfills the strategy for the targeted set of customer needs.
Marketing implementation (Coordination as usual)
Companies have typically hired different agencies to help in the development of advertising, sales promotion, and publicity ideas. However, this often results in a lack of coordination between elements of the promotion mix. When components of the mix are not all in harmony, a confusing message may be sent to consumers. For example, a print advertisement for an automobile may emphasize the car's exclusivity and luxury, while a television advertisement may stress rebates and sales, clashing with this image of exclusivity. Alternatively, by integrating the marketing elements, a company can more efficiently utilize its resources. Instead of individually managing four or five different promotion processes, the company manages only one. In addition, promotion expenditures are likely to be better allocated, because differences among promotion tools become more explicit. This reasoning has led to integrated marketing communications, in which all promotional tools are considered to be part of the same effort, and each tool receives full consideration in terms of its cost and effectiveness.
Marketing evaluation and control (now problem!)
No marketing process, even the most carefully developed, is guaranteed to result in maximum benefit for a company. In addition, because every market is changing constantly, a strategy that is effective today may not be effective in the future. It is important to evaluate a marketing program periodically to be sure that it is achieving its objectives.
Services marketing
A service is an act of labour or a performance that does not produce a tangible commodity and does not result in the customer's ownership of anything. Its production may or may not be tied to a physical product. Thus, there are pure services that involve no tangible product (as with psychotherapy), tangible goods with accompanying services (such as a computer software package with free software support), and hybrid product-services that consist of parts of each (for instance, restaurants are usually patronized for both their food and their service).
Services can be distinguished from products because they are intangible, inseparable from the production process, variable, and perishable. Services are intangible because they can often not be seen, tasted, felt, heard, or smelled before they are purchased. A person purchasing plastic surgery cannot see the results before the purchase, and a lawyer's client cannot anticipate the outcome of a case before the lawyer's work is presented in court. To reduce the uncertainty that results from this intangibility, marketers may strive to make their service tangible by emphasizing the place, people, equipment, communications, symbols, or price of the service. For example, consider the insurance slogans "You're in good hands with Allstate" or Prudential's "Get a piece of the Rock."
Services are inseparable from their production because they are typically produced and consumed simultaneously. This is not true of physical products, which are often consumed long after the product has been manufactured, inventoried, distributed, and placed in a retail store. Inseparability is especially evident in entertainment services or professional services. In many cases, inseparability limits the production of services because they are so directly tied to the individuals who perform them. This problem can be alleviated if a service provider learns to work faster or if the service expertise can be standardized and performed by a number of individuals (as H&R Block, Inc., has done with its network of trained tax consultants throughout the United States).
The variability of services comes from their significant human component. Not only do humans differ from one another, but their performance at any given time may differ from their performance at another time. The mechanics at a particular auto service garage, for example, may differ in terms of their knowledge and expertise, and each mechanic will have "good" days and "bad" days. Variability can be reduced by quality-control measures. These measures can include good selection and training of personnel and allowing customers to communicate dissatisfaction (e.g., through customer suggestion and complaint systems) so that poor service can be detected and corrected.
Finally, services are perishable because they cannot be stored. Because of this, it is difficult for service providers to manage anything other than steady demand. When demand increases dramatically, service organizations face the problem of producing enough output to meet customer needs. When a large tour bus unexpectedly arrives at a restaurant, its staff must rush to meet the demand, because the food services (taking orders, making food, taking money, etc.) cannot be "warehoused" for such an occasion. To manage such instances, companies may hire part-time employees, develop efficiency routines for peak demand occasions, or ask consumers to participate in the service-delivery process. On the other hand, when demand drops off precipitously, service organizations are often burdened with a staff of service providers who are not performing. Organizations can maintain steady demand by offering differential pricing during off-peak times, anticipating off-peak hours by requiring reservations, and giving employees more flexible work shifts.
Kent A. Grayson
Jonathan D. Hibbard
Philip Kotler
marketingStrategy
... far back as 400 BC Sun-tzu, a Chinese general, set forth 13 principles. The axioms range from American Civil War General Nathan Bedford Forrest's simple admonition about getting there first with the most men to Napoleon's 115 maxims.
Though there is no complete agreement on the number of principles, most lists include the following: the objective, the offensive, cooperation (unity of command), mass (concentration), economy of force, maneuver, surprise, security, and simplicity. The British have added one called "administration"; the Soviets, another, translated as "annihilation." Despite debate over their precise number and meaning, the principles of war are widely taught, and most military students accept them as basic concepts.
In the theory of warfare, strategy and tactics have generally been put into separate categories. The two fields have traditionally been defined in terms of different dimensions: strategy dealing with wide spaces, long periods of time, and large movements of forces, tactics dealing with the opposite. Strategy is usually understood to be the prelude to the battlefield, and tactics the action on the battlefield itself.
Strategy gives tactics its mission and wherewithal and seeks to reap the results. But tactics has also become an important conditioning factor of strategy, and as it changes, so does strategy.
strategyIntegrated Marketing Communications Definedintegrated marketing communications
Coordination of a variety of promotional vehicles, an integrated marketing communications strategy is implemented at specific times during a marketing campaign to ensure the message is consistently received by its target audience.
A sound integrated marketing communications plan requires a blend of strategic planning, design, and communications ingenuity enabling the marketer to reach through multiple channels in architecting growth for business, brands, and products. Facing the ever-increasing growth of competition in the marketplace for dominance of communication channels, businesses need to concentrate on perfecting their integrated marketing communications plan in an effort to stay on top.
Businesses cannot afford to underestimate the importance of marketing to specific target audiences. In order to drives sales, a complete integrated marketing communications strategy should be explored and implemented to include public relations, advertising, internet, etc.
Strategically integrate all elements of marketing and marketing communications to present and market organizations, products, and services in both B2C and B2B settings.
ObjectiveFocusing on the long-term value of a customer or consumer so that up-selling, cross-selling, and loyalty can be maximized,
Goalstrategically integrate marketing communications to more precisely defined segments of customers and consumers so that resources can be focused effectively and waste eliminated.
TechnologyIntegrated Marketing Communication is more than the coordination of a company's outgoing message between different media and the consistency of the message throughout. It is an aggressive marketing plan that captures and uses an extensive amount of customer information in setting and tracking marketing strategy. Steps in an Integrated Marketing system are:
1. Customer Database
An essential element to implementing Integrated Marketing that helps to segment and analyze customer buying habits.
2. Strategies
Insight from analysis of customer data is used to shape marketing, sales, and communications strategies.
3. Tactics
Once the basic strategy is determined the appropriate marketing tactics can be specified which best targets the specific markets.
4. Evaluate Results
Customer responses and new information about buying habits are collected and analyzed to determine the effectiveness of the strategy and tactics.
5. Complete the loop; start again at #1.
Measurement Gain a better understanding about how to target communications more effectively
Learn to think comprehensively about your brand from the consumer’s or customer’s point of view so that you can develop more communications strategies that deliver results over the short and long terms
View communications more broadly than media-delivered messages by planning what your brand will communicate at each contact point or touch point, and consider how to measure the results.
EXTERNAL RELATIONS
ORGANIZATIONAL CHART
Associate Director
External Relations
Associate Director
External Relations &
Director of Communications
Director
Special Events
Director/Editor
Periodicals
Administrative Coordinator
Assistant Director
Communications
Database Administrator
Assistant Director
Periodicals
POSITIONING ELEMENTS
KEY MESSAGES
Weight of Elements Dependent on Program
# Curriculum (a)
# Linux - Java Aplications (b)
# Community (c)
# Quality Toolkit (d)
# Maintenance Services (d)
# Products (e)
AUDIENCES # PROSPECTIVE AND CURRENT
CURRENT MARKETING CHANNELS
Print Publications Other Media
View books MBA % CD Rohm
Brochures Knight Center % Video
Postcards
Other direct mail Advertising
Print
Periodicals Newspapers
Print Magazines
On-line Other Media
Radio
Web Site Cable TV
Airport Billboards
PUBLICATION
PROCESSES
# Internal
# Partnering with Programs
# Creative Direction and Project Management
# Annual Planning
PUBLICATION PROCESSES
INTERNAL
* Style Guide
* Key messages + unique audience/client value proposition
* Production schedules
* Review and approval process.
(future goal, now done by persuasion)
PUBLICATIONS PROCESSES
PARTNERING WITH PROGRAMS
* Initial conversation with Participants
* ER identifies appropriate resources (see creative direction process), develops production schedule and reviews with department/client
* Information gathering/ theme development/content outline (varies in accordance to scope of project and time constraints)
PUBLICATIONS PROCESSES
CREATIVE DIRECTION & PROJECT MANAGEMENT
# Select appropriate resources based on project scope and importance
# Gather content, develop theme and structure (outline/pagination); varies in scope from postcard to view book. (See Information Gathering in Partnering with Programs)
# Project management - everyone doing his/her job according to schedule (liaison with designers and writers as part of creative process)
PUBLICATIONS PROCESSES
ANNUAL PLANNING
* Initiate budget cycle meetings with program managers (programs own the budget)
* ER drafts project list and projected budget if sufficient information exists
* Follow-up with Program Director to review project list and budget
* Revised draft where needed (multiple iterations where necessary)
* End of year wrap-up and review with Budget & Operations
INTEGRATED MARKETING
CURRENT PROJECTS
* Customer Relationship Management
o On-line call reporting capability
* Web Site Management
o External Relations and Information Systems Partnership
o Departmental Web Coordinators
o Working with programs to create consistency of content and design
Putting the Marketing in
Integrated Marketing Communications
Product Price Place Promotion
The Four "Ps"
The Four "Cs"
Customer Cost Convenience Communications
Advise
Coordinate
Influence
Direct
Catalyst
Communications & External Affairs Resources
4 Full time staff
How We Function
Design & Creative Support Firm
Freelance Personnel
Strategic Plan
Audiences
Key Messages
Strategies
Goals/Objectives
Tactics
Measurement
* Image is Everything
* No Single Audience
* Competition
* Investment
* R & M
* Integrated Communications to Integrated
Marketing Communications
Context
Scope:
Undergraduate and Graduate Programs
* Responsibilities
o Brand
o Market positioning
o Publications
o Web design and content
o Events
o Advertising
o Media relations
o Internal communications
* Team
o Director
o Associate Director
o Administrative Assistant
* Resources
o Creative Services
o Freelancers, design firms
Be Inclusive
Employ processes that include input from relevant stakeholders
* If they are part of the process, they have a stake in the outcome
* Agreed review milestones
Lots of meetings, lots of listening, lots of debate!
* Associate
* Advisory Board
* Faculty
* Administration
* Emplyee
* Recruiters
Position
Define the character of the organization
* All messaging stems from positioning
* Anchors all strategy and tactics
* Don’t get bogged down with "tag lines" or "wordsmithing"
* Stuck on a tag line
* Agree on "character"
Analyze
Identify key audiences, channels and effectiveness
* To whom are we communicating now?
* What are we communicating?
* What channels are we using?
* What is working or not working?
* Only using print
* No media relations
* Events not promoted
* No intentional messaging
* "Cost" vs. "Asset"
Prioritize
* You can’t change or do everything all at once
* Prioritize by audience, channel, project
* Go for high visibility, high impact projects first
* Channels
o Web site
* Stakeholders
o Alumni
o Prospective employee
o Current employee
o Recruiters
Internal Evangelists
Develop internal evangelists
* Provide tools to faculty, staff and students
* Tell them a bazillion times
* Easy access to:
o Logos and guidelines
o Positioning
o Key messages
o Stories that manifest positioning
* Provide downloadable logos, templates and positioning messages
Integrated Marketing Communications
Personal Visits
Demand Creation (& Conversion)
Brand Image
1-1 (Personalized)
Direct Marketing
TV/Radio Advertising
Print Advertising
Web Advertising
Speakers’ Bureau
Trade Shows
Conferences
Sponsorships
& Other Events
Press Releases
Targeted
Direct Mail
White Papers
Research Papers
Mass Direct Mail
Feature Articles
(Reprints & Web)
Media & Analyst
Briefings
Community
Relations
Staff
Communications
Brochures
Web Site
Business Review
* Complete transformation
o Content revamp
o Look, feel, size
o Interactive component
o Circulation expanded from 12,000 to 42,000
Business Review
* Two-way communications
* Post comments to stories
* Read other people’s comments
* Send to a friend
* Vote on issues
* Extra content
Web Site Redesign
Summary
* Approaches will vary depending upon resources and environment
* Be inclusive
* Position first
* Identify key audiences
* Analyze
* Explore new channels
* Prioritize
Integrated Marketing Communications describes the nuts and bolts of what makes an integrated marketing communications firm work: strategy, execution and ...
IMC recognizes the synergistic effect across communication approaches and considers the perspectives of all relevant partners in such a way that brand value is maximized.
LINKING MARKETING AND FINANCIAL DECISIONS
The fundamental challenge of market strategy is to satisfy the priority needs of target customers while simultaneously recognizing how the business makes money. A "good" marketing decision that yields poor financial results is in reality a poor marketing decision. Conversely, financially sound decisions that result in actions that severly compromise customer needs rarely provide attractive returns over the long run. Promote a series of actions that partnership can take to harmonize marketing and financial decisions more closely. This is an min - MAX type problem
MARKETING STRATEGY AND COMMUNICATION
One of the primary drivers of ineffective marketing communications is that there is no overarching strategy to guide their creation. You have a strategic framework for specific marketing decisions that publisher must address prior to developing communications. Use Simlex Method
COMMUNICATION AS A STRATEGIC CORPORATE RESOURCE
Assume the concept of leveraging marketing and communications in your organization to a strategic level. What are basic corporate goals in terms of managing cash flows and generating profit. These goals must then analyzed as to how they relate to the use of marketing and communication and the changing, interactive, customer-driven marketplace. Dinamic optimize
DEVELOPING AN INTEGRATED BRAND COMMUNICATION PROCESS
Focus on the increasing value of the brand to the organization and looks at the close relationships between developing brand values, building customer relationships, and satisfying partnership goals. The process starts with customer identification, moves to customer valuation, and then to the development of communication programs (i.e., brand messages or brand incentives). Goes on to address the financial issues of brand communication: the identification of brand investments, the measurement of short-term and long-term returns, and the necessary approaches for relating communication programs to partnership objectives. Profit Limit is the global criteria
CREATING BRAND ADVOCATES
How to make your customers "raving fans" of your products or services. The bottom line benefits of building strong customer brand advocacy are stressed as well as the fundamental concepts for achieving it: strategic value targeting, customer insight, and whole brand positioning and implementation. Special emphasis is placed on integrating the whole range of "brand communications" as defined by the customer. Concepts are illustrated using examples in both consumer and business-to-business product categories. Feedback factor
ORGANIZATIONAL IMPERATIVES FOR IMC
The concept of building compelling brands by integrating their "total communication." Discussion centers on how a brand communicates from the customer's perspective and how to audit all of the elements of that communications mix. Tools are introduced to help prioritize the importance of each element from the customer's viewpoint and reveal areas of poor integration or alignment. Discussion then covers the implications for the allocation of resources, organizational structures, and processes and metrics that help to bring a brand's communications into alignment.
Integrated Marketing Communications Strategy PRINCIPLES OF MARKETING
The Communications Mix
* Advertising
o any paid form of nonpersonal presentation by a sponsor
* Personal Selling
o personal presentations by a firm’s sales force
* Sales Promotion
o short term incentives to encourage sales
* Public Relations
o building good relations with various publics
* Direct Marketing
o short term incentives to encourage sales
Developing Effective Communication
* Identifying Target Audience
* Determining Communications Objectives
o Buyer Readiness Stages
* Designing Message
o Message Content
o Message Structure
o Message Format
* Media Selection
o personal and nonpersonal communications channels
* Message Source
* Feedback Collection
Promotion Budget
* Affordable
* Percentage of Sales
* Competitive Parity
* Objective and Task
Promotion Mix
* Advertising
o reaches many buyers, expressive
o impersonal
* Personal Selling
o personal interaction, relationship building
o costly
* Sales Promotion
o generates immediate response
o short-lived
* Public Relations
o more believable, economical, underused by firms
* Direct Marketing
o customized, interactive
Promotion Mix
* Push Strategy
o directing communications to channel members
* Pull Strategy
o directing communications to end users
* Factors
o type of product/market
o buyer readiness stage
o product life-cycle stage
Emerging Communications Environment
* Shift from mass marketing to segmented marketing
* Shift from mass media to focused media
Integrated Marketing Communications
* Coordinate and integrate communications channels
o advertising
o personal selling
o sales promotion
o direct marketing
o public relations
o packaging
