Advertising As Marketing Tool

Marketing Process ► Four major stages:  Marketing environment analysis  Target market and positioning process  Market mix decisions  Customer

Marketing environment analysis ► Opportunity analysis ► Threat analysis ► Competitor analysis ► Company analysis ► Process begins with analysis of external environment factors like economic, social, political legal and technological providing opportunities and threats ► Depending on internal strength and weakness profile the marketer decides what opportunities to seek and how various relevant threats are to be avoided.

STP ► Identifying broad markets ( opportunity analysis) ► Market segmentation ( Threat analysis) ► Targeting ( Competitor analysis) ► Positioning ( Company analysis)

Marketing mix decisions ► Product decisions ► Pricing decisions ► Channel decisions  Marketer looks at competitors and their offerings to arrive at an appropriate marketing mix.

Promotions decisions Advertising, direct marketing, sales promotion, publicity, public relations, personal selling Promotion to ultimate customer / final buyer/feedback ( channels) Promotion through trade/agents to customer  After looking at opportunities marketer looks at customer base and occupation of space in his mind for the brand.

Marketing Mix decisions  Marketer makes critical decisions based on these to battle with competitors ( 4+2)  Product  Price  Physical distribution  Promotion  Packaging  People  Process

4 Ps and 4 Cs ► Four Ps were given by McCarthy as broad tools of marketing. ► Later Robert Lauterborn gave customer’s point of view as 4 Cs corresponding to sellers’ 4 Ps. ► ProductCustomer solution ► PriceCustomer cost ► PlaceConvenience ► PromotionCommunication ► Emphasis on 4 Cs to design market mix.

Components of market mix ► Product ► IngredientsColourPackaging ► QualitySizeServices ► Designproduct varietyWarranties ► FeaturesBrand name Replacement & return ► Installationcustomer education & training ► Customer relationship & management

Price ► List price ► Discounts ► Credit terms ► Allowances ► Payment mode

Physical distribution ► Channels ► Coverage ► Inventory ► Warehousing ► Assortments ► Locations ► Transportation

Promotion ► Advertising ► Direct marketing ► Sales promotion ► Personal selling ► Publicity ► Public relations

Marketing tools ► Product life cycle ( PLC) curve – bell shaped ► Introduction-sales slow, no profits, heavy expenditure, buyers innovators, no competitor a product is new ► Growth-as product accepted, profit high, competition high, similar products produced ► Maturity- slow down a acceptance level is reached. Profits stabilise or decline, increased competition. Innovative marketing to be done ► Decline – declining sales and profits erode. Very few competitors left. Investment stopped.

SWOT analysis ► External environment analysis ( O&T)  Both macro and micro factors to be monitored.  Macro- non controllable. Impacts long term business plans & units.  Eg: social, legal, economic, political, technology  Micro – task factors – non controllable-impacts medium run. More direct impact  Eg: customers, employees, competitors, distributors, creditors, suppliers, other stakeholders

SWOT analysis ► Internal environment analysis (S&W)  Identify S&W to tackle O&T  Components related to functional areas like ► Marketing ► Finance ► Manufacturing ► Purchase ► R&D ► IT ► HR Leadership ► Image

Marketing Plan ► To provide assessment of current situation & position ► Focus efforts in an identified direction ► Give clear cut performance targets ► Identify ways to achieve targets ► Allocate resources ► Direct all towards the common objectives

Marketing Plan ► Should be a written document ► Spell out actions to be taken ► When, where, by whom and what resources are available ► Should be evaluated

Hierarchy of marketing plan ► Corporate mission ► corporate objectives ► marketing objectives ► marketing plan ► marketing strategies ► marketing programmes ► marketing tactics

Marketing Plan- content & structure ► Executive summary ► Current situation analysis ► Performance review ► Key issues ► Marketing objectives ► Marketing strategy

Marketing Plan-content & structure ► Marketing action plan  Target market  Mixing of marketing variables (4Ps)  Who is responsible for each action  When & where action will be?  How much is the budget for each action? ► Projected profit & loss statement ► Controls ► Contingency plan

Tools to estimate market demand ► Qualitative tools – opinion surveys- survey of buying intention, composite sales force opinion, Delphi technique ► Quantitative tools – ► Extrapolation ► Time series analysis ► Correlation ► Econometrics models

Ansoff’s Product –Market expansion ► Three ways of achieving growth: ► Intensification ► Integration ► Diversification  Ansoff speaks of market expansion by intensification – firm spots & utilises opportunities for improving products and market penetration of its existing businesses. and market development is by finding new markets for existing products

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