Consumer Costs and benefits Organization Individua

Consumer Costs and benefits Organization Individua
MARKETING PRESENTATION FOR PROFESSIONAL CERTIFICATE IN MARKETING OVERVIEWING THE MARKETING PROCESS: MARKETING AS AN EXCHANGE PROCESS: Consumer Costs and benefits Organization Individua Patient Student Volunteer Voter Reader Source: Principles of marketing by Dr. Frances Brassington & Dr Stephen Pettitt; chp 1 pg 7 Slake thirst Medical treatment Insurance premiums H Private hospital Fees Education University Non-profit Youth group Time Sense of community service Vote Sense of economic/social progress Political party Taxes A good read Public library Jude Asongwe Created by

MARKETING PRESENTATION FOR PROFESSIONAL CERTIFICATE IN MARKETING
Jude Asongwe Created by Consumer buying decision making process and its influencing factors: Situational influences Sociocultural Technological Economic/competitive Political/legal Individual influences Personality Perception Motivation Attitude. Decision-making process Problem recognition Information search Information evaluation/evaluation of alternatives Group influences Social class Culture/subculture Reference groups family Marketing mix Product Price Place promotion Purchase decision Post-purchase evaluation

Wholesaler DISTRIBUTION CHANNEL IN CONSUMER MAREKT Producer Consumer
Summary: PROFESSIONAL CERTIFICATE IN MARKETING IS DIVIDED IN TO FOUR PARTS: Part A: Marketing Fundamentals Part B: Marketing Environment Part C: Marketing in Practice Part D: Customer Communication. DISTRIBUTION CHANNEL IN CONSUMER MAREKT Producer Consumer Producer Retailer Consumer Producer Wholesaler Retailer Consumer Producer Agent Wholesaler Retailer Consumer Producer Business Customer Producer Business distributor Business Customer Producer Sales branch Business customer Producer Sales branch Business distributor Business customer DISTRIBUTION CHANNEL IN ORGANISATIONAL MARKET

CONTENTS of PART A: Marketing Fundamentals
The development of marketing and marketing orientation Marketing planning and budgeting The marketing mix: Product The marketing mix: new product development and portfolio management The marketing mix: price The marketing mix: place The marketing mix: promotion The marketing mix: People (service and customer care). Marketing in context Marketing Fundamentals Jude Asongwe Created by Source: CIM course book

MARKETING FUNDAMENTALS: LEARNING OBJECTIVES
By the end of this module you should be able to: Understand the development of marketing and its changing role within a variety of organizations Understand the various tools of the marketer and evaluate their strengths and weaknesses Recognise the impact achievable through modifying the marketing mix for (re)positioning the product and service offerings Understand the importance of planning in the management of the marketing activity Develop an awareness and understanding of the technological advances in marketing and the impact of information technology on the marketing mix decisions Understand the importance of customers and their behaviour relating to marketing decisions

Marketing Fundamentals- The development of marketing and marketing orientation.
What is marketing? The marketing concept: marketing orientation. Factors contributing to the need to be marketing oriented Marketing as a form of competition: creating customer value Building a marketing culture Difficulties in managing the introduction of a customer-oriented culture Market segmentation The tools of marketing management: the marketing mix Overviewing the marketing process: marketing as an exchange process. The changing role of marketing Marketing Fundamentals Source: CIM course book

Marketing Fundamentals What is Marketing?
Marketing is ‘the management process which identifies, anticipates and satisfies customer requirements efficiently and profitably. (CIM definition) Consists of individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas ( by Dibb, 2000) Marketing Fundamentals. Jude Asongwe Created by Source: CIM course book

Marketing Fundamentals
Marketing means working with markets to bring about exchanges for the purpose of satisfying human needs and wants. It is a process by which individuals and groups obtain what they need and want creating and exchanging products and value with others. (Kotler, 2000). Marketing Fundamentals Jude Asongwe Created by Source: CIM course book

The marketing concept focuses on customers.
Marketing Fundamentals- THE MARKETING CONCEPT ( MARKETING ORIENTATION).1960s-today The marketing concept focuses on customers. A company that adopts the marketing concepts does the following Puts customers at the centre of all business decision-making and planning Marketing research to better satisfy customers. Marketing Fundamentals Source: CIM course book

Marketing Fundamentals : Other forms of orientation.
Production-orientation( s) Product-orientation Sales-orientation(1930s-1960s) Marketing Fundamentals Source: CIM course book

Marketing Fundamentals– The Production Orientation or concept
The production concept concentrates on production and distribution economies. This is based on the notion that customers will choose lower priced products that are readily available. Marketing Fundamentals Source: CIM course book

Marketing Fundamentals- Marketing Orientation- PRODUCT ORIENTATION
Source: CIM course book

Marketing Fundamentals: The sales (selling) concept or orientation.
This is of course based on the notion that customers need to be persuaded to buy through aggressive selling and promotion. Marketing Fundamentals Source: CIM course book

MARKETING HISTORY AND BUSINESS ORIENTATIONS - SUMMARY

Average disposable income General level of education
Marketing fundamentals: Factors underpinning the need to be market oriented. Demand Average disposable income General level of education Mass media/ access to information Supply/industry capacity Competition Broad political, economic, social,technological, ecological and legal factors (PESTEL) factors. Marketing Fundamentals Source: CIM course book

Provision of value to customers is important
Marketing Fundamentals- : Marketing as a form of competition: creating customer value Marketers are recognizing that it is important to be competitor as well as customer oriented. The achievement of organisational and marketing objectives rests on whether the company can beat the competition Provision of value to customers is important Marketing research will help better satisfy customers Good customer service and customer care Market intelligence about competitors. Reliability of service, speedier delivery, low prices, high quality; can create superior customer value. Superior customer value should reflect customers needs. Source: Marketing Fundamentals Source: CIM course book

Marketing fundamentals- Building a marketing culture
‘Thinking about customers’ through how we view and define the business is the first step in developing a marketing culture. Thinking about customers must permeate all functions and levels of the organization and not just the marketing function or even senior management. Communication among managers and employees from different function is important Marketing Research and market intelligence. Co-ordination between functions based on customer needs. Marketing planning Company-wide communication on customer needs. Right attitudes, practices throughout the company. Source: CIM course book

Marketing Fundamentals- ASSESSING THE EXTENT OF THE MARKETING CULTURE:
An Assessment of the following issues are concerned in order to know the extend to which businesses have been successful or unsuccessful in marketing orientation Management Employees Products Services Competitors Prices Distribution of products Market Strategies Marketing Fundamentals Source: CIM course book

Power struggle between departments.
Marketing Fundamentals- DIFFICULTIES IN MANAGING THE INTRODUCTION OF A CUSTOMER-ORIENTED CULTURE: Managers fail to realize or understand the true concept of market orientation. Resistance to change Power struggle between departments. Separation of the responsibility for marketing strategy and implementation. Lack of co-ordination Lack of technology/inability to use latest technology. Poor planning Influence of macro factors (PESTEL Analysis) Influence of micro factors: Employees, management, suppliers, distributors, media and competitors. Inadequate finance No strategic direction Marketing Fundamentals Source: CIM course book

Marketing fundamentals – MARKETING AS A MANAGEMENT FUNCTION:
Marketing is the function of management. Management has to control, co-ordinate, plan, motivate, analyze and organize marketing activities: The marketing manager has to perform the following: Marketing / market research Planning Environmental analysis Market segmentation, targeting and positioning. Marketing mix implementation Marketing is not only the function of the marketing manager. Marketing should be part and parcel of each and every department of the company. The various departments such as Human Resource, Production, Logistics, Finance, Stock and Technical departments have to corporate with the marketing department Marketing Fundamentals Source: CIM course book

Marketing fundamentals – MARKET SEGMENTATION Learning objectives
To understand what is market segmentation To examine the reasons for segmenting the market To examine the bases for segmenting the market. To examine the importance of segmenting the market. Marketing Fundamentals Source: CIM course book

Marketing Fundamentals - MARKET SEGMENTATION Definition
What is market segmentation? Market segmentation is the process of identifying and classifying customers according to their different needs and wants. Marketing Fundamentals Source: CIM course book

Marketing Fundamentals- MARKET SEGMENTATION. Definition continues
It is the division of market in to groups of customers and using the marketing mix to target customers in these groups. It is the splitting up of customers in to segments and using the marketing mix to target customers. Marketing Fundamentals Source: CIM course book

Marital status Life style. Behaviour Inadequate finance. Location
Marketing fundamentals- MARKET SEGMENTATION REASONS FOR SEGMENTING THE MARKET Because of differences that exist among customers with regards to the following: Age Psychology Sex Life cycle Marital status Life style. Behaviour Inadequate finance. Location Income Culture Social status Marketing Fundamentals Source: CIM course book

Identifiable Profitable Recognisable Accessible Actionable
Marketing fundamentals- MARKET SEGMENTATION THE CRITERIA FOR SEGMENTING THE MARKET Identifiable Profitable Recognisable Accessible Actionable Stable (reliable) Substantial Measurable Affordable Marketing Fundamentals Source: CIM course book

Psychographic: social class and perception of customers.
Marketing fundamentals- MARKET SEGMENTATION BASES FOR SEGMENTING THE MARKET IN CONSUMER MARKET Demographic: age,gender,income,occupation, marital status and Life cycle Geographic: regions, counties, nations, cities, town, villages and continents. Geo-demographic: Segmentation according to geography and demography. This is used by ACORN: The post office also uses this. Psychographic: social class and perception of customers. Behaviour: User status, usage rate, usage occasion, loyalty status and purchase rate. Marketing Fundamentals Source: CIM course book

Product specialisation
M1 M2 M3 Targeting M1 M2 M3 P1 Single segment target P1 P2 P2 P3 P3 M1 M2 M3 P1 Product specialisation P2 Multi-segment target M1 M2 M3 P1 P3 P2 M1 M2 M3 P3 P1 Full market coverage Market Specialisation P2 P3 M=Market and P= Product

Targeting Strategy Segment 1 MARKETING MIX Segment 2
Concentrated strategy/marketing Segment 3 Segment 1 MARKETING MIX 1 Segment 2 MARKETING MIX 2 MARKETING MIX 3 Segment 3 Differentiated strategy/marketing Whole market MARKETING MIX Undifferentiated strategy/marketing

POSITIONING Positioning means designing a product to occupy a distinct and valued place in the minds of customers. Companies can position the market in terms of price, product, quality, brands, promotion, and customer service. The essence of positioning is to enable the company to have more competitive advantage over its competitors. When positioning, the company should identity customers needs, produce the product targeted at customers. The product packaging, labelling, styling, branding, designing, pricing, promotion and distribution should seriously be analysed. A good marketing programme such as marketing research, Marketing mix, segmentation, targeting, new product development and market expansion will boost the company’s competitive advantage.

POSITIONING Companies need to find out what position they are
in, in relation to their competitors. Am I a market leader or a market follower? This is a question that should be asked by organisations. Marketing planning, and marketing strategies should be implemented to enable the company to have competitive advantage.

Successful positioning
KEYS TO SUCCESSFUL POSITIONING Source: Principles and practice of marketing- 2nd edition by David Jobber Consistency Clarity Successful positioning Credibility Competitiveness Jude Asongwe Created by

. . . . . . . . POSITIONING POSITIONING MAP OF SUPERMARKETS:
Source: Principles and practice of marketing- 2nd edition by David Jobber . . . High price . A B C D . . . Narrow product range Wide product range . G F X E Low price A PERCEPTUAL MAP OF SUPERMARKETS

BUSINESS TO BUSINESS BUYING BEHAVIOUR:
Otherwise known as industrial or organisational buyer behaviour: Business to business transaction is when one business transact business with another. Certain factors influence business to business buyer behaviour. Marketing mix: price,product, place , promotion Environmental influences Organisational factors Group influences: reference groups e.g decision making unit such as users, influencers, deciders, approvers, gate keepers and buyers.

Business to Business Marketing/Business to business buyer behaviour
Example of a shoe manufacturer Hides and skin producer Leather producer distributor Shoe manufacturer Agent Wholesaler Retailer Consumers Example of cloths manufacturer Cotton producer Distributors Textile Industry/manufac turer Agents Wholesalers Retailers Consumers Example of biscuit manufacturer Sugar/flour Banana p Distributor Producer Agent Wholesaler Retailer Consumers Example of bread manufacturer Flour producer Distributor Retailer Producer Agent Wholesaler Consumer Example of car manufacturer Iron and steel Tyre producers Distributor Consumers Car producer Wholesaler Retailer Example of aircraft manufacturer Accessories producer Aircraft producer e.g Boeing Wholesaler Consumer

STRATEGIC MANAGEMENT Strategic analysis Strategic
Choice Strategy implementation A basic model of strategic management process Source: Exploring Corporate Strategy by Gerry Johnson Kevan Scholes

Culture and stakeholder Organisation structure and design
STRATEGIC MANAGEMENT Culture and stakeholder expectation Resources And strategic capabilities The environment Strategic analysis Planning And allocating resources Identifying Strategic options Strategic choice Strategy implementation Organisation structure and design Evaluating options Managing Strategic change Selecting strategy

CORPORATE SOCIAL RESPONSIBILITY
This is the responsibility that corporate businesses have on the environment. They are supposed to produce goods and services under social and environmentally friendly conditions: CORPORATE SOCIAL RESPONSIBILITY TOUCHES THE FOLLOWING AREAS: Employees Suppliers Retailer Distributors Customers Government Shareholders Competitors Products Services Banks Media Green issues Local community Environmental pollution CORPORATE SOCIAL RESPONSIBILITY CAN BE VIEWED FROM TWO ANGLES: Internal Aspects: This focus on the company’s internal structure E.g Employees, Shareholders, Management, Products, Services, and Resources. External Aspects: This focus on the society : For example Pressure Groups, local community, government, media, suppliers, distributors and Retailers

STRENGTH WEAKNESSES OPPORTUNITIES THREATS SWOT ANALYSIS High profit
Sales Market share High product quality Many product lines High staff morale High staff motivation New technology High managerial ability Technical expertise Machinery Economies of scale Good mission statement Good customer service New product development WEAKNESSES Low profit Low product quality Limited product lines Low staff morale Low staff motivation Lack of technological development No technical expertise Insufficient machinery for production Diseconomies of scale Poor mission Poor customer service OPPORTUNITIES Market expansion Reduction of taxes Deregulation or reduction of legislation New market (emerging markets) Good economic conditions Good social conditions Stable political, social, economic and ecological environment THREATS High competition Inflation Legislation High taxes Natural disasters e.g Hurricanes, Tsunami, Flood, Landslide, Earthquakes and Tornadoes Political instability: wars High unemployment High interest rates

What is the marketing mix The components of the marketing mix.
Marketing fundamentals- THE TOOLS OF MARKETING MANAGEMENT: THE MARKETING MIX What is the marketing mix The components of the marketing mix. Marketing Fundamentals Source: CIM course book

Marketing fundamentals The tools of the marketing management: THE MARKETING MIX - definition
It is the strategic blending of product, price, place, promotion, people, physical evidence and processes in order to achieve marketing objectives It is a combination of 7p’s which marketers use in order to satisfy the market. Marketing Fundamentals Source: CIM course book

Marketing fundamentals The tools of the marketing management: THE MARKETING MIX – definition Continues Marketing mix is the tactical toolkit of the 7’ps ; namely product, price , place, promotion, people, physical evidence and processes. Source: CIM course book

THE MARKETING MIX - PRODUCT
We will examine the following issues under product: Product Definition Product Classification Various levels of a product The Product Mix The Product Life cycle Product Packaging Product Labeling Product quality Product lines Branding The product adoption process New Product Development Process The importance of New Product Development Portfolio Analysis Product Pricing Product Placing Promotion of product.

PRODUCT CLASSIFICATION: Consumer Products Shopping goods: e.g. television, cloths, shoes, watch & cameras Unsought goods: e.g life assurance, grave stones,grave yard, Convenience goods Speciality goods Producer products Materials and parts Machinery Services

THE VARIOUS LEVELS OF A PRODUCT: Potential product Augmented product Expected product Actual/Basic product Core product ssssss

Technology development Human resource management
Firm infrastructure Technology development Human resource management Procurement Inbound Operations Outbound Service Logistics Logistics Marketing and sales 46

McKinsey’s Seven Ss model
The 7-S Framework of McKinsey is a management model that describes 7 factors to organize a company in an holistic and effective way. Together these factors determine the way in which a corporation operates. Managers should take into account all seven of these factors, to be sure of successful implementation of a strategy. Large or small. They're all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as well. On top of that, the relative importance of each factor may vary over time.

Origin of the 7-S Framework. History
The 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascal and Anthony Athos in They had been investigating how Japanese industry had been so Successful. At around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of these four authors in 1978. It appeared also in "In Search of Excellence" by Peters and Waterman,and was taken up as a basic tool by the global management consultancy company McKinsey. Since then it is known as their 7-S model.

Shared Values (also called Superordinate Goals). The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes. Compare: Strategic Intent Strategy Plans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition, customers. Structure The way in which the organization's units relate to each other: centralized, functional divisions (top-down); decentralized; a matrix, a network, a holding, etc.

System The procedures, processes and routines that characterize how the work should be done: financial systems; recruiting, promotion and performance appraisal systems; information systems. Staff Numbers and types of personnel within the organization. Style Cultural style of the organization and how key managers behave in achieving the organization's goals. Compare: Management Styles. Skill Distinctive capabilities of personnel or of the organization as a whole. Compare: Core Competences.

Strengths of the 7-S Model. Benefits Diagnostic tool for understanding organizations that are ineffective. Guides organizational change. Combines rational and hard elements with emotional and soft elements. Managers must act on all Ss in parallel and all Ss are interrelated.

Barriers to Implementation
INTERNAL Management culture Leadership skills Organisational structure Resources Attitude to planning Measurement procedures Communications EXTERNAL Political intervention Competition Distributors Suppliers Customers Economic conditions Change in technology

Implementation Variables
Gilligan and Fifield Implementation Variables Senior management involvement Successful implementation will occur Staff will struggle Implementation will be impeded Staff are likely to resist the plan. Implementation will be impeded Plan resist in all ways Implementation stage unlikely to succeed. Staff involvement

STAKEHOLDERS competitors Local community Management Shareholders
Distributors Media Suppliers Employees Present and prospective The Firm’s Stakeholder

STAKEHOLDER VALUES AND EXPECTATIONS
STAKEHOLDES VALUE STAKEHOLDER EXPECTATION EXPECTATION FROM ORGANISATION Consumers Purchase goods and services thus raising revenue for organisations. Fair prices Safe and healthy products Environmentally friendly products High quality products Good customer service and care. Payment for goods and services Good behaviour from customers Respect purchasing policies. Employees They help produce goods and services. Good working conditions Fair wage for a days job/month Motivation – bonuses, allowances, holidays, promotion, ego and self actualisation needs. Equal opportunity in employment, training and development. Training and development Industrial democracy Empowerment and delegation Freedom of speech/free flow communication Commitment from staff No strike action No absenteeism Total participation Respect company’s policies Good morale Management They help plan, organise, direct, control, motivate and train staff. Suppliers They supply logistics needed for production. Distributors They distribute the products to the market. Media Advertising products. STAKEHOLDER VALUES AND EXPECTATIONS

STAKEHOLDERS STAKEHOLDES VALUE STAKEHOLDER EXPECTATION
EXPECTATION FROM ORGANISATION Financial institutions Provides financial products e.g loans, overdraft and advice. Government Provides public and merit goods. Help investors morally and financially. Local community Purchase organisational products. Pressure group Shareholders Provide shares (business finance) Put pressure on companies to produce products under social and environmentally friendly conditions. Retailers/wholesalers/agents Facilitate the distribution Acts as an important link in business supply chain. Competitors Compete with firms thus making companies to offer even better services and goods.

STAKEHOLDERS Stakeholders can be divided into three categories
Internal Stakeholders: Employees, Management, shareholders and BOD. Market place stakeholders: Customers, banks, media, suppliers, distributors, agents, retailers and wholesalers and competitors. External Stakeholders: Government, pressure groups and the local community

The New Product Development Process
Idea generation Idea screening Concept development and testing Outlining Marketing strategies Business Analysis Product development Test marketing Commercialisation Monitoring Controlling

PRODUCT LIFE CYCLE CHARACTERISTICS
CHARCTERISTICS INTRODUCTION GROWTH MATURITY DECLINE Sales Low Increasing Slowing Declining Profits Loss Peaking Low to Zero Cash flow Negative Moderate High Customers Innovative Mass Market Laggards Strategic focus Expanding market Market penetration Defensive marketing Productivity Marketing expenditure High-declining Falling Product plan Market to innovators, early adopters; high product failure rate; basic- developing Expand for early and late majority; less product distinctiveness; improve models. Widen product lines, rationalize brand; less competition; differentiate. Niche marketing; reinforce brand loyalty; rationalize Competitor reaction No reaction Maximum new entrants - high Marginal competitors exit Competition declines Pricing plan High skimming Differentiated for each segment Lowest - competitive Price cutting rises for niches Distribution plan Unstable pattern – widen channels, seize shelf space. Increasing pattern – competitor activity increasing. Control passing to fewer firms Segmented, fragmented and localized. Promotional plan Push for awareness Create ‘pull’ Withdraw Cease PRODUCT LIFE CYCLE CHARACTERISTICS Source: Association of business executives

Immediate competitors – Technically similar products
COMPETITION LAYERS OF COMPETITION Tertiary competitors Secondary competitors Immediate competitors – Technically similar products Source: Principles and practice of marketing by David Jobber

MICHAEL PORTER’S FIVE FORCE ANALYSIS OF THE COMPETITIVE STRUCTURE
Potential entrants Threat of entrants Competitive Rivalry Bargaining Power Bargaining Suppliers Buyers Power Threat of substitutes Substitutes Source: Exploring Corporate Strategy by Garry Johnson and Kevan Scholes Adapted from M. Porter, Competitive Strategy, Free Press, 1980, p. 4.

THE IMPORTANCE OF THE PRODUCT LIFECYCLE:
The product life cycle is important in planning and control Strategic formulation, implementation and analysis Advertising strategy Product management Targeting and positioning

PORTFOLIO ANALYSIS Business Portfolio: The collection of businesses and products that make up the company. Portfolio analysis: A tool by which management identifies and evaluates the various businesses that make up the company Strategic business unit (SBU): A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses. A SBU can be a company division, a product line within a division, or sometimes a single product or brand.

PORTFOLIO ANALYSIS BOSTON CONSULTING GROUP MATRIX
Framework of the BCG Matrix High 20 10 Market growth Low 1x 10x 0.1x Market share

PORTFOLIO ANALYSIS Stars Cash cows Low-growth
High-share businesses or products Established and successful units that generate cash that the company uses to pay its bills and support other business units that need investment Profit and sales are high but later decline because of competition Question marks Low-share business units in high-growth markets Low profits and sales. Dogs Low growth Low market share Low profit Low sales High –growth High market share (High-share businesses) Products often require heavy investment to finance their rapid growth High profit and high sales

BCG MATRIX : BCG CLASSIFICATION OF PRODUCTS
High 20 Dogs Question marks Stars 10 Market growth Cash cows Low 1x 10x 0.1x Market share

BCG MATRIX- CASH POSITION FOR PRODUCTS
Stars Revenue Investment Question marks Revenue Investment - Cash cows Revenue Investment – + + Dogs Revenue +

PORTFOLIO STRATEGIES Build Hold Harvest Divest

GENERAL ELECTRIC MATRIX

THE GENERAL ELECTRIC MATRIX BY MCKINSEY
The GE matrix / McKinsey matrix is a model to perform a business portfolio analysis on the Strategic Business Units of a corporation. A business portfolio is the collection of Strategic Business Units that make up a corporation. The optimal business portfolio is one that fits perfectly to the company's strengths and helps to exploit the most attractive industries or markets. A Strategic Business Unit (SBU) can either be an entire mid-size company or a division of a large corporation, that formulates its own business level strategy and has separate objectives from the parent company.

The aim of a portfolio analysis is to: 1) Analyze its current business portfolio and decide which SBU's should receive more or less investment, and 2) Develop growth strategies for adding new products and businesses to the portfolio 3) Decide which businesses or products should no longer be retained. The BCG Matrix (Boston Consulting Group Matrix) is the best-known portfolio planning framework. The GE / McKinsey Matrix is a later and more advanced form of the BCG Matrix.

Typical (external) factors that affect Market Attractiveness: - Market size - Market growth rate - Market profitability - Pricing trends - Competitive intensity / rivalry - Overall risk of returns in the industry- Entry barriers - Opportunity to differentiate products and services- Demand variability - Segmentation - Distribution structure- Technology development Typical (internal) factors that affect Competitive Strength of a Strategic Business Unit: - Strength of assets and competencies - Relative brand strength (marketing) - Market share- Market share growth - Customer loyalty - Relative cost position (cost structure compared with competitors)- Relative profit margins (compared to competitors) - Distribution strength and production capacity - Record of technological or other innovation- Quality - Access to financial and other investment resources- Management strength

A six-step approach to implementation of portfolio analysis (using the GE / McKinsey Matrix) could look like this: 1. Specify drivers of each dimension. The corporation must carefully determine those factors that are important to its overall strategy 2. Weight drivers. The corporation must assign relative importance weights to the drivers 3. Score SBU's each driver 4. Multiply weights times scores for each SBU 5. View resulting graph and interpret it 6. Perform a review/sensitivity analysis using adjusted other weights (there may be no consensus) and scores.

Some important limitations of the GE matrix / McKinsey Matrix are:
- Valuation of the realization of the various factors - Aggregation of the indicators is difficult - Core competencies are not represented - Interactions between Strategic Business Units are not considered

CHANGES IN PRODUCT/STRATEGIC BUSINESS POSITION

CONCLUSION

GENERAL ELECTRIC BUSINESS SCREEN (GE)

3 7 6 6 14 PRODUCT LINE Product line width Cars Television Laptops
B C D E Television Laptops Cars Mobile Watches Panasonic Sharp Sony LG Technics Samsung HP Packard bell Microsoft Dell PC world Sony Jaguar Mercedes Rover Vauxhall Corolla Nissan Audi Ferrari Opel BMW Honda Pajero Toyota Camri Nokia Motorola Samsung LG Siemens Sargem Sony E Rolex Seiko Seconda 3 7 6 6 Product Line length Product Line Length 14

NATONAL INCOME STATISTICS

GDP STATISTICS

PRICING STRATEGIES: PRICE Cost-based pricing or cost-oriented pricing:
Full cost pricing Direct cost pricing 2. Competitor-based pricing or competitor orientated pricing Going-rate pricing Competitive bidding 3. Market-oriented pricing 4. Product line pricing 5. Me too pricing 6. Product bundling pricing 7. Seasonal pricing 8. Psychological pricing Source: Principles and practice of marketing 2nd Edition by David Jobber

PRICE MACRO FACTORS MICRO FACTORS
FACTORS THAT DETERMINE THE PRICE OF PRODUCTS: MACRO FACTORS Political Economic Social Technological Ecological Legal MICRO FACTORS Customers (demand & market segment) Competitors Suppliers Distributors Media Company: production costs, objective and mission.

RESEARCH STUDIES

WHAT IS RESEARCH Research is the gathering, recording, analysing and reporting of all facts relating to the transfer and sale of goods and services from producers to consumers. It is usually based on statistical probability theory and always uses scientific methods. Research is the Gathering Analysis Storage Retrieval and Dissemination of information to aid in decision making: Source: Association of business executives

WHY RESEARCH To find out cost involved in advertising
To find out what customers want to buy To determine which distribution methods are more efficient To analyze what competitors are doing To reduce risk To help in planning and forecasting results To aid ‘mix decisions’ To improve decision-making capabilities

INTERNATIONAL MARKETING RESEARCH AND ANALYSIS
THE MARKETING RESEARCH PROCESS Source: Principles of marketing by Philip Kotler

The research process The process of research describes the steps taken
in the research activity: Gathering Analysis Storage Retrieval Dissemination Source: Association of business executives

THE MARKETING RESEARCH PLAN: (WH QUESTIONS) The research plan includes objectives, strategies and programmes and above all it should be logical and structured. What are the research problems? ( outline the research problems) What are the research objectives?( outline the research objectives) Determine the target to be researched : crucial to the research plan. Which research methodology are you using? Determine how the research is to be carried out: Who will be responsible for carrying out the research? In-house or external agency. How will data be collected? When will the research be carried out? Determine How long will the research take. (set time frame or limit)? time scale is important. How much budget have you set aside for the research? Set or agree the budget: Where will the research be carried out? Start carrying out the research : Implement the plan Gather and record the information Monitor and control Reach conclusions: Report the information and take action. Store the information to be retrieved in future.

RESEARCH PROPOSAL The research proposal defines what the marketing research promises to do for its client, and how much it will cost. Like the research brief, the proposal should be written to avoid misunderstandings. A client should expect the following to be included. A statement of objectives: to demonstrate an understanding of the client’s marketing and research problems What will be done: an unambiguous description of the research design including the survey method, the type of sample, the sample size, and how the fieldwork will be controlled. Timetable: if and when a report will be produced. Costs: how much the research will cost and what specifically is/is not being included in those costs. Source: Principles and practice of marketing 2nd Edition by David Jobber

TYPES OF RESEARCH Primary (field) research Secondary (desk) research Exploratory research Conclusive research Market research: This is focused on the size, composition, trends, structure of the market, competitors and the environmental factors affecting the market. Marketing research: Research which is focused on the marketing mix elements: Product, price, place, promotion, people, physical evidence and process. Experimental research: Quantitative research:Quantitative comes from quantity – meaning numbers. Results can be in the form of numbers or percentages. This type of research is used to assess trends, potential and actual growth or decline of a market or product consumption. Qualitative research: Its about ideas and opinions, likes and dislikes: Likert scale or semantic differential scale is normally used in qualitative research, which allows responses to be quantified. Observational research: Survey research: Descriptive research : Survey research may be undertaken to describe customers’ beliefs, attitudes, preferences, behaviour, etc. For example, a survey into advertising effectiveness might measure awareness of the brand, recall of the advertisement, and knowledge about its content. Source: Principles and practice of marketing 2nd Edition by David Jobber

RESEARCH METHODS Interviews and discussions Observations
PRIMARY RESEARCH METHOD Interviews and discussions Observations Questionnaires Test marketing Sampling Survey/(Intelligence gathering)

USING EXTERNAL RESEARCH AGENCIES
In-house or External Finding, selecting and recruiting an agency Briefing Controlling

DATA COLLECTION Primary source Secondary sources
Source: Principles and practice of marketing 2nd Edition by David Jobber Primary source Secondary sources

SAMPLING THE SAMPLING PROCESS: Simple random sampling
Stratified random sampling Quota sampling Sample size Source: Principles and practice of marketing 2nd Edition by David Jobber

SURVEY RESEARCH THE SURVEY METHOD Face-to-face interviews
Telephone interviews Mail surveys Source: Principles and practice of marketing 2nd Edition by David Jobber

QUESTIONNAIRE DESIGN PLANNING STAGE DESIGN STAGE
Ordering of topics : it should have a logical flow Types of questions: Closed end questions and open end questions. Wording and instructions Layout Scaling Probes and prompts Coding Source: Principles and practice of marketing 2nd Edition by David Jobber

QUESTIONNAIRE PILOT STAGE
Source: Principles and practice of marketing 2nd Edition by David Jobber

DATA ANALYSIS AND INTERPRETATION

REPORT WRITING AND PRESENTATION

SOURCES OF INFORMATION There are four main sources of information Internal Sources Government publications Other publications Commercial data

SOURCES OF INFORMATION PRIMARY DATA: Original data . Data from the ‘horses mouth’. It takes time and it is expensive SECONDARY DATA: Existing data Takes less time It is not expensive There is a possibility of getting obsolete data

MARKETING INFORMATION SYSTEM:

BUSINESS AND MARKETING STRATEGIES
BUSINESS STRATEGY Ansoff Matrix Porters generic strategy

Stuck with no clear strategy
MARKETING STRATEGIES PORTERS GENERIC STRATEGY MODEL Differentiation Stuck with no clear strategy Cost leadership Focus

STRATEGIES ANSOFF MATRIX MARKET PENETRATION PRODUCT DEVELOPMENT
Existing New MARKET PENETRATION PRODUCT DEVELOPMENT MARKET DEVELOPMENT DIVERSIFICATION Existing New

MARKETING Strategies Segment 1 MARKETING MIX Segment 2
Concentrated strategy/marketing Segment 3 Segment 1 MARKETING MIX 1 Segment 2 MARKETING MIX 2 MARKETING MIX 3 Segment 3 Differentiated strategy/marketing Whole market MARKETING MIX Undifferentiated strategy/marketing

CORPORATE STRATEGIES ATTACH STRATEGIES
Direct challenge – differential advantage Direct attack – distinctive competence Direct attack – market share Flank attack Encirclement Bypass Guerrilla

DEFENCE STRATEGIES MARKETING STRATEGY Position defence
Pre-emptive defence Counter-offensive Mobile defence Flanking defence Contraction defence By-pass

Source: CIM course book
Marketing fundamentals – OVERVIEWING THE MARKETING PROCESS: MARKETING AS AN EXCHANGE PROCESS Marketing Fundamentals Source: CIM course book

Marketing fundamentals- THE CHANGING ROLE OF MARKETING

Marketing fundamentals - UNIT 2: MARKETING PLANNING AND BUDGETING LEARNING OBJECTIVES:
To understand what is the marketing planning process. To understand the importance of the marketing planning process To examine the structure and components of the marketing plan. The marketing planning process. The concept of marketing audit The value of marketing research and information in developing marketing plans. To understand the importance and approaches to objective setting. To understand the importance and process of segmentation, targeting and positioning Appreciate the range of tools and techniques to satisfy customer requirements and compete The process of setting marketing budgets To understand the various management structures for implementing marketing plans and the importance of monitoring and control of marketing activities. Appreciate the range of tools and techniques available to satisfy customer requirements and compete.

COMPONENTS OF A MARKETING PLAN
EXECUTIVE SUMMARY BUSINESS MISSION MARKTING AUDITING SWOT ANALYSIS MARKETING OBJECTIVES BUSINESS OBJECTIVES MARKETING STRATEGIES BUSINESS STRATEGIES MARKETING MIX IMPLEMENTATION EXPECTED RESULT MONITORING CONTROLLING

Marketing fundamentals - UNIT 2: MARKETING PLANNING Definition
Marketing planning is deciding at present what to do in future. Marketing planning involves the various steps which marketers have to follow before achieving their overall objectives Marketing Fundamentals Source: CIM course book

Source: CIM course book
Marketing fundamentals - UNIT 2: MARKETING PLANNING AND BUDGETING The marketing planning process Business Mission/corporate objectives Marketing audit SWOT analysis Business Objectives Marketing objectives Marketing strategies Marketing tactics / marketing mix decisions Implementation Monitoring and control Marketing Fundamentals Source: CIM course book

MARKETING PLAN Monitoring Environmental scanning Business Mission
Objectives Strategies Marketing Mix Product Price Place Promotion People Physical evidence Processes Implementation Monitoring Control

MARKETING PLANNING STRATEGY AND PLANNING CORPORATE BUSINESS FUNCTIONAL
Initial environmental and business analysis Develop the mission statement Detailed marketing audit Corporate objectives and strategy formulation Marketing objectives and strategy formulation Estimate expected results Identify alternative plans and mixes Implementation Review CORPORATE BUSINESS FUNCTIONAL

STRATEGY AND PLANNING Corporate or visionary planning that provides a mission and structure for evaluating and allocating resources to business Business planning which involves long-range planning for positioning the company and its products to best serve its target markets Functional planning including marketing planning which is generally annual planning involving specific goals and plans over one year.

CORPORATE STRATEGY Strategies are formulated as a response to the various factors in the company’s environment- and these may come from both external and internal sources: External Internal

Organizational Stance and Positioning
Leaders Followers Nichers

What is a Mission Statement.
Marketing fundamentals - UNIT 2: MARKETING PLANNING AND BUDGETING THE BUSINESS MISSION Learning Objectives What is a Mission Statement. What are the components of a mission statement. What is the importance of a mission statemement. What are the characteristics of a Mission Statement Examples of Mission Statements: M&S, Asda, Tesco, Sainsbury, BT & Npower.

What is the marketing audit What are its components
Marketing fundamentals - UNIT 2: MARKETING PLANNING AND BUDGETING The Marketing Audit Learning Objective What is the marketing audit What are its components What is the importance of the marketing audit.

What is the SWOT Analysis
Marketing fundamentals - UNIT 2: MARKETING PLANNING AND BUDGETING THE SWOT ANALYSIS Learning Objectives What is the SWOT Analysis What is the importance of carrying out a SWOT Analysis.

Marketing fundamentals Marketing planning and budgeting.

Content OF PART B: Marketing Environment:
The nature of the organization and the impact of its environment The micro-environment Analysis of the competitive environment The macro-environment The demographic, social and cultural environment The economic and international environment The political and legislative environment The technical/information environments Environmental information systems-coping with the challenge of environmental change. Marketing Environment. Source: CIM course book

Marketing Environment: LEARNING OBJECTIVES
By the end of this module you should be able to: Understand the nature of the marketing environment and its relevance for the organisation and marketing practice. Examine the various types of organisation, their objectives and the interface between marketing, internal functions and external influences. Recognise the importance of building relationships with relevant stakeholders. Identify and interpret the marketing implications of significant changes in an organization's wider environment. Understand the complex, dynamic and uncertain nature of the external environment and how it might be best managed in marketing terms.

Marketing Environment:
Unit 1: The nature of the organization and the impact of its environment The importance of the marketing environment Business classifications The formal and informal economy The legal form of trading organizations Vision and the organization’s mission General organizational objectives How are goals established? What causes the goals to change? The organization as an open system The interface between marketing and other functions. Managing the marketing environment: a contingency approach. Marketing Environment. Source: CIM course book

Unit 1: The nature of the organization and the impact of its environment LEARNING OBJECTIVES To explain the classification of private, public and voluntary organizations, their legal status and operational characteristics. Assess comparative strengths and weaknesses of small/medium and large/global sized organizations. State the meaning and importance of an organization’s mission and explain the nature and significance of the objectives pursued. Identify the internal and external influences on the formation of objectives and specify the likely drivers for organizational change. Explain the nature of open systems responding to changing environmental conditions. Represent the organization as an open system responding to changing environmental conditions Distinguish between the types of organizations with the public, private and voluntary sectors Understand the diversity of organizational objectives and influences upon them Understand the nature of organizations as open systems and the environmental influences that affect them. Source: CIM course book

Unit 1: The nature of the organization and the impact of its environment The formal economy The public sector The private sector. The Informal economy Hidden Voluntary Household Source: CIM course book

The formal economy Marketing Environment: The public sector
Unit 1: The nature of the organization and the impact of its environment The formal economy The public sector State industries Public/private partnership Quangos Municipal/local authority services Source: CIM course book

Marketing Environment: Unit 1: The nature of the organization and the impact of its environment
The formal economy The private sector. Sole traders Partnerships Private limited companies; e.g. small/medium businesses. Cooperatives; e.g agricultural Franchises; e.g McDonald’s Public limited companies; e.g Unilever plc Multinationals: e.g BP, Coca-Cola Inc, Nestle, Cadbury. Source: CIM course book

Marketing Environment: Unit 1: The nature of the organization and the impact of its environment
The Legal form of trading organizations: Sole Trader: Characteristics Oldest type, simplest to form – self-employment Unincorporated – Ownership and control by a single person Individuals assume all rights/duties No separate legal existence: the business= the individual No disclosure of information bar to tax authorities No limit on employees: may employ >100 Farming/personal services/building/retail May originate in the hidden economy. Source: CIM course book

The marketing environment: Unit 1: The nature of the organization and the impact of its environment SOLE TRADER: MERITS DEMERITS Minimum formalities Unlimited liability for any debts ,unincorporated, no legal entity. Complete control/no consultation Raising capital is difficult Favorable tax treatment Specialized and risky Highly motivated/single-minded Jack of all trades Least costly to form May lack continuity Close to customers/employees Self-exploitation Flexible/attend to detail Competition from large/small Niches where limit to market Lack management skills Exemption from certain legislation No one to share burden Personal satisfactions-status Source: CIM course book

Two or more in common with a view to profit
The marketing environment: Unit 1: The nature of the organization and the impact of its environment PARTNERSHIP CHARACTERISTICS Unincorporated Two or more in common with a view to profit No more than a legally specified maximum number (e.g 20), bar certain professions. Form an agreement or bound by legislation Unlimited liability and jointly liable Share management/profits/losses No legal personality. Source: CIM course book

Able to raise more capital
The marketing environment: Unit 1: The nature of the organization and the impact of its environment PARTNERSHIP MERITS DEMERITS Able to raise more capital Unlimited liability unless ‘limited’- still must be at least one partner fully liable. Pool expertise/mutual support funds Lack of legal identity-dissolves if death/disagreement More chance to specialize Potential disagreements No company tax on business Frozen investment Unincorporated No separate legal entity Source: CIM course book

Incorporated, separate legal entity – enter contracts, etc.
The marketing environment: Unit 1: The nature of the organization and the impact of its environment REGISTERED COMPANY: PLC & Private LC CHARACTERISTICS Incorporated, separate legal entity – enter contracts, etc. Formed under relevant legislations, e.g 1985 Companies Act Confers various rights and duties Members contribute capital and own shares. Dominant form Liability limited to amount invested or guaranteed. Source: CIM course book

Public Limited Company (PLC) Private Limited Company (Ltd)
The marketing environment: Unit 1: The nature of the organization and the impact of its environment For example, in Britain: Public Limited Company (PLC) Private Limited Company (Ltd) Two or more members Minimum two/100 authorized capital and two directors One director plus a secretary Offer shares to the public Offence to offer shares to public Requires business certificate before trading/borrowing Trade once incorporation certificate is received Similar legislation elsewhere. Typical family business Raising additional bank funds easier Source: CIM course book

Statutory declaration of compliance with the relevant Act
The marketing environment: Unit 1: The nature of the organization and the impact of its environment For example, in Britain: A registered company has a number of duties and must also submit to the Registrar of Companies: Memorandum of Association: It contains the external rules and regulations Articles of Association: It contains the internal rules and regulations. Statutory declaration of compliance with the relevant Act Independently audited annual accounts and directors report. Source: CIM course book

The marketing environment: Unit 1: The nature of the organization and the impact of its environment
REGISTERED COMPANY: PLC & Private LC MERIT DEMERIT Separate legal entity Special and double taxation Limited liability of owners Complex/costly to form Greater financial capability Disclosure requirements Easy transfer of ownership Government regulations Able to fund innovation/new product development Inflexibility of size Customers feel reassured. Economies of scale:Internal and External. Impersonality. Source: CIM course book

The marketing environment: Unit 1: The nature of the organization and the impact of its environment COOPERATIVE CHARACTERISTICS Pioneered in mid-nineteenth century-most prevalent in agriculture and retailing Governed by relevant legislation Worker ownership/control but falling numbers/mergers Limited liability but one member one vote Self-help not profit maximizing via management committee Equitable distribution of dividend if a surplus is made. Source: CIM course book

Separate entities but interdependence businesses.
The marketing environment: Unit 1: The nature of the organization and the impact of its environment FRANCHISING CHARACTERISTICS Franchisor sells the right to market a product under its name to a franchisee. Separate entities but interdependence businesses. Rapid growth especially retailing McDonald’s the Body shop. Ready-made opportunity for an entrepreneur with capital wishing to minimize risks of a new venture (90 per cent survive beyond three years). Source: CIM course book

Pay an initial sum to franchisor
The marketing environment: Unit 1: The nature of the organization and the impact of its environment AGREEMENT BETWEEN THE FRANCHISOR AND THE FRANCHISEE: Franchisor agrees to Pay an initial sum to franchisor Provide business format/initial training Pay a percentage of profit to franchisor Supply product and quality control Buy supplies of product from franchisor Extend promotional support (e.g.) advertising Maintain standards laid down. Source: CIM course book

THE PUBLIC SECTOR Local Authorities:
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE PUBLIC SECTOR Local Authorities: Services provided by local government Examples include, among others, fire and police, road maintenance, consumer protection, recreation, environmental health, education and airports. They are managed by elected councillors through full time professional officers. Source: CIM course book

STATE INDUSTRIES Source: CIM course book
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE PUBLIC SECTOR STATE INDUSTRIES Source: CIM course book

PUBLIC PRIVATE PARTNERSHIP
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE PUBLIC SECTOR PUBLIC PRIVATE PARTNERSHIP Source: CIM course book

QUANGOS (State Agents)
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE PUBLIC SECTOR QUANGOS (State Agents) Source: CIM course book

PUBLIC SECTOR PRIVATE SECTOR Source: CIM course book
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE PUBLIC SECTOR AND THE PRIVATE SECTOR COMPARED: PUBLIC SECTOR PRIVATE SECTOR Source: CIM course book

NATIONALISATION PRIVATISATION Source: CIM course book
The marketing environment: Unit 1: The nature of the organization and the impact of its environment NATIONALISATION AND DENATIONALISATION OR PRIVATISATION COMPARED: NATIONALISATION PRIVATISATION Management and control of state owned industries by the government Transfer of ownership and control of state owned industries from government to individuals. Source: CIM course book

The marketing environment: Unit 1: The nature of the organization and the impact of its environment
The regulated PLC: The bulk of nationalized industries were privatized in the 1980s and 1990s. They were sold directly to the public: management/employee buyouts or to other companies. Examples of privatized industries in the UK includes : BT, Royal Mail, London Underground) Source: CIM course book

THE ARGUMENTS FOR PRIVATISATION:
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ARGUMENTS FOR PRIVATISATION: POLITICAL ARGUMENTS ECONOMIC ARGUMENTS Reduced role of the state Achieve efficiency improvements Deregulation of the economy Increased competition and choice Encourage shareholding democracy among customers Pressure on management to become marketing oriented Enable worker share-ownership Improve industrial relations Provide freedom to manage Exploit new opportunities Cut borrowing(PSBR)and taxes Supply side rises in productivity. Cut costs Source: CIM course book

Components of a vision statement Characteristics of vision statements
The marketing environment: Unit 1: The nature of the organization and the impact of its environment VISION AND THE ORGANIZATION’S MISSION: VISION Components of a vision statement Characteristics of vision statements The importance of a vision statement From Vision to Mission. Source: CIM course book

Component of a Mission Statement
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ORGANIZATON’S MISSION Component of a Mission Statement Characteristics of a Mission Statement The importance of a Mission Statement Source: CIM course book

Examples of Mission and Vision Statements
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ORGANIZATON’S MISSION Examples of Mission and Vision Statements THE MISSION STATEMENT OF ASDA Superstore.

THE MISSION STATEMENT OF TESCO
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ORGANIZATON’S MISSION THE MISSION STATEMENT OF TESCO

THE MISSION STATEMENT OF Marks & Spencer
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ORGANIZATON’S MISSION THE MISSION STATEMENT OF Marks & Spencer Source: Strategic Marketing Management by R.M.S Wilson

The Mission Statement of NPOWER
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ORGANIZATON’S MISSION The Mission Statement of NPOWER

The Mission Statement of British Gas
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ORGANIZATON’S MISSION The Mission Statement of British Gas

THE MISSION STATEMENT OF DEBENHAMS:
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ORGANIZATON’S MISSION THE MISSION STATEMENT OF DEBENHAMS: We will be the leading countrywide speciality store, the first choice for fashion on card which employees Source: Strategic Marketing Management by R.M.S Wilson

The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ORGANIZATON’S MISSION The Mission Statement of Sainsbury To discharge the responsibility as leaders in our trade by acting with complete integrity, by carrying out our work to the highest standards, and by contributing to the public good and to the quality of life in the community. To provide unrivalled value to our customers in the quality of the goods we sell, in the competitiveness of our prices and in the range of choice we offer. In our stores, to achieve the highest standards of cleanliness and hygiene, efficiency of operation, convenience and customer service, and thereby create as attractive and friendly a shopping environment as possible. To offer our staff outstanding opportunities in terms of personal career development and in remuneration relative to other companies in the same market, practising always a concern for the welfare of every individual. To generate sufficient profit to finance continual improvement and growth of the business whilst providing out shareholders with an excellent return on their investment. Source: Strategic Marketing Management by R.M.S Wilson

Meet the requirements of our customers
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ORGANIZATON’S MISSION THE MISSION STATEMENT OF BT: To provide world class telecommunications and information products and services To develop and exploit our networks at home and overseas so that we can Meet the requirements of our customers Sustain growth in the earnings of the group on behalf of our shareholders Make a fitting contribution to the community in which we conduct our business. BT’S CORE VALUES We put our customers first We are professional We respect each other We work as one team We are committed to continuous improvement. Source: Strategic Marketing Management by R.M.S Wilson

The Mission Statement of Argos
The marketing environment: Unit 1: The nature of the organization and the impact of its environment THE ORGANIZATON’S MISSION The Mission Statement of Argos

Learning objectives – what you should know by the end of the lesson
The nature of the organization and the impact of its environment The micro-environment Analysis of the competitive environment The macro-environment The demographic, social and cultural environment The economic and international environment The political and legislative environment The technical/information environments Environmental information systems-coping with the challenge of environmental change.

THE MARKETING ENVIRONMENT
MACRO ENVIRONMENT Political Government policies Rules and regulations Laws, taxes, political stability/instability,regime in government MICRO ENVIRONMENT Company Management/BOD Shareholders Employees Customers Financial Intermediaries Banks Credit Institutions Building Societies Insurance companies THE COMPANY AND ITS ENVIRONMENT Social Demographic Social Class Reference groups Health Education Communication Culture Economic Inflation, Employment, GDP,GNP,NI, Local community Marketing Intermediaries Suppliers Distributors/transporters Media Retailers Wholesalers Agents/brokers Unemployment, wages, Interest rates, Tax, deflation, trade cycle, exchange rates, Energy prices economic growth Per Capita Income, competitors Pressure groups Think-tank consultancy Ecological Law firm Polusion Climate change Scarcity of oil Natural disasters Recycling Technological Legal Internet, digital, ATM EPSS, mobile, SMS, Polusion law ,Alcohol law,consumer protection law Employment law, product safety law Human rights law, Business law

THE BUSINESS ENVIRONMENT– PEST FACTORS
Political Government policies Rules and regulations Laws, taxes, political stability/instability,regime in government Economic Inflation, Social Demographic Social Class Reference groups Health Education Communication Culture Employment, GDP,GNP,NI, ENVIRONMENTAL FACTORS Unemployment, wages, Interest rates, Tax, deflation, trade cycle, exchange rates, Energy prices economic growth Per Capita Income, competitors Ecological Polusion Climate change Scarcity of oil Natural disasters Technological Legal Recycling Internet, digital, ATM APSS, mobile, SMS, Polusion law ,Alcohol law,consumer protection law Employment law, product safety law Human rights law, Business law

ANALYSIS OF THE MACRO ENVIRONMENT
PESTEL FACTORS POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL ECOLOGICAL LEGAL

POLITICAL The political environment Political uncertainties/instability International political environment

ECONOMIC Employment/unemployment Inflation/deflation Government economic objectives NI,GDP,&GNP The Business Cycle BOP & BOT Trade & exchange rate policy The impact of international trade Interest rate Prices Competition Demand

SOCIAL Demographic: This is the study of the composition of a country’s population in terms of age, gender, sex, occupation. Population Age composition Gender composition Marital status and household structure Income Migration: Immigration & Emigration (Net migration) Birth rate & Death rate Fertility rate. Trends in population The dependency ratio World population Aggregate population Population structure Regional distribution of population Ethnic groups Occupational structure The workforce in employment: some important trends The changing role of women in work and society

Demographic studies and marketing
POPULATION: WORLD POPULATION Source:

Age composition and distribution
Europe and the New Independent States Source

World population: 6000,000,000 The most highly populated countries in the world: Country: Population: Density CHINA ,306,313, INDIA ,103,600, UNITED STATES OF AMERICA ,655, INDONESIA ,973, BRAZIL ,112, PAKISTAN ,419, BANGLADESH ,319, ,002 RUSSIA ,420, NIGERIA ,771, JAPAN ,417, Source:

Gender composition:

MARITAL STATUS AND HOUSEHOLD STRUCTURE

INCOME DISTRIBUTION

BIRTH RATE/ FERTILITY RATE

DEATH RATE

MIGRATION: Immigration/Emigration

TRENDS IN POPULATION

REGIONAL DISTRIBUTION OF POPULATION

OCCUPATIONAL STRUCTURE:

SOCIAL Social class Culture Reference groups The family Lifestyle
Education Health Communication

TECHNOLOGICAL

ECOLOGICAL

LEGAL Legislation imposed by governments The legal framework Role and objective of legislation Fair trading and the consumer Protecting the consumer Implications to the marketer.

INTERNATIONAL MARKETING:
What is international marketing International marketing environment International market entry strategy International marketing mix

INTERNATIONAL MARKETING DIFFERENCES IN CULTURE
What is culture Culture is sum total of belief, rituals, custom, tradition, norms etc; that characterizes a particular group of people, society, or organization. The sum total of learned beliefs, values and custom that serve to direct customer behaviour in a particular country market Components of culture.

Differences in culture:
There exist cultural differences in different continents across the world with respect to the following: Language Aesthetics Norms Values Rituals Custom and tradition

CHAPTER 4: INTERNATIONAL TRADE THEORY
Demand and supply Tariffs Quotas BOP TOT IMPORTS & EXPORTS INTERNATIONAL CURRENCIES TRADE RESTRICTIONS BORDER CONTROL EXCHANGE RATE INTEREST RATE NATIONAL INCOME. BUDGET

ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING
Legal Local domestic laws International law Home domestic law Political Operational restrictions Discriminatory restrictions Physical actions Socio/Cultural Language Religion Aesthetics Values and attributes Social organisation Material culture Health Communication/transport. Technological Satellite Communications ISDN Internet WWW The Electronic Superhighway Environmental Influences on International Marketing Economic Developed economies Emerging economies Less developed economies Currency movements Ecological

INTERNATIONAL MARKET ENTRY STRATEGY

Content of PART C: Marketing in practice
An overview of the marketing system The context of marketing The integrated marketing mix: product The marketing mix: price The marketing mix: place The marketing mix: promotion The integrated marketing mix – service extension (people, physical evidence and process) The management of marketing information Skills for the marketer Bringing it all together: the marketing plan Source: CIM course book

THE LEARNING OBJECTIVES IN Marketing in practice
By the end of this module you should be able to: Collect relevant data from a variety of secondary information sources Analyse and interpret written, visual and graphical data Devise appropriate visual and graphical means to present marketing data Make recommendations based on information obtained from multiple sources Evaluate and select media and promotional activities appropriate to the organisation's objectives and status and to its marketing context Calculate and justify budgets for marketing mix decisions Develop relationships inside and outside the organisation Apply planning techniques to a range of marketing tasks and activities Undertake basic marketing activities and within an agreed plan and monitor and report on progress Gather information for, and evaluate marketing results against, financial and other criteria

Content of PART D Customer Communication
The importance of the Customer Buying behaviour The communication process The communication mix The role of information communication technology in customer communications Effective communications Communicating in meetings, interviews and negotiations Using statistical data and visual information Written communication formats. Source: CIM course book

LEARNING OBJECTIVES OF Customer Communication
By the end of this module you should be able to: Recognise organisations as open systems and explain the importance of relationships between the organisation and its suppliers, intermediaries, customers and other key stakeholders in a changing environment Explain why it is important for marketers to understand consumer and industrial buying behaviour for marketing decisions Explain the elements of the promotional mix and its fit with the marketing planning process Explain the advantages and disadvantages of the range of communications tools available to an organisation Develop internal and external communications using appropriate tools to suit a variety of target audiences and using an understanding of customer behaviour and customer information Select appropriate verbal and non-verbal communications with people inside and outside the organisation Demonstrate the importance of customers and customer service and apply customer care principles to create positive relationships with customers in a variety of contexts

Unit 1: The importance of the Customer Who are customers? Why are customers important? Why do people communicate in business? So who are your customers? Who are an organization’s customers? Internal Customers Internal Marketing Improving customer communications. Source: CIM course book

Why do people communicate in Business: To build relationships internally and externally with individuals and groups To give specific instructions to others on a range of business matters, both procedural and strategic. To disseminate information on a range of corporate matters such as the mission statement, policy issues or, in the case of the external market, on price changes or new promotional initiatives To share ideas and values on work-related issues or procedural tasks To negotiate matters of policy as a joint venture or merger To discuss or negotiate on personal or professional matters such as remuneration and other higher and lower level hygiene factors To motivate, interest and stimulate employees for commitment and loyalty to the firm To create an awareness of the organization, its products or services and persuade the external market, for example, to make a purchase decision or to request further information To receive feedback in order to monitor whether the communication was understood and the reaction of the recipient to the message. Source: CIM course book

UNIT 2: BUYING BEHAVIOUR The purpose of communication Communications and marketing Relating customer behaviour to external communications Communication objectives and buying process How the buying process relates to communications Understanding organizational buying behaviour Bibliography. Source: CIM course book

UNIT 3: THE COMMUNICATION PROCESS: The purpose of communication The communication chain Barriers to successful communication Avoiding barriers to communication Effective communicators Planning the business message How the PASS framework can help in planning messages. Source: CIM course book

UNIT 4: THE COMMUNICATIONS MIX: The communications mix or promotions mix Integrated Marketing Communications Above-the-line promotional activity Below-the-line promotional activity Corporate image Brand image Logos Packaging Point of sale display and Merchandising. Sales promotion Exhibition Sponsorship Public relations Direct Marketing Evaluating the effect pf advertising The role of the brief. Source: CIM course book

UNIT 4: THE COMMUNICATIONS MIX: Above-the-line communication methods: Advertisement Definition: This is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor Advertisement can be done through the following means: Above-the-line advertisement. Radio Television Newspaper: Local, national and international newspapers; E.G The times, financial times, daily mirrow, express and star and the sun. Internet Magazine Outdoor Cinema Sources: Philip Kotler(Principles of Marketing), CIM course book.

UNIT 4: THE COMMUNICATIONS MIX: ADVERTISMENT: This is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor Sources: Philip Kotler(Principles of Marketing-4th European Edition) and CIM course book.

ADVERTISMENT: Main Advertising Decisions Objectives setting
Advertising strategy Objectives setting Media decision Message decision Campaign evaluation Budget decisions Reach, frequency, Impact Main media types Specific media vehicles Media timing Communication Impact Sales impact Affordable approach Message strategy Communication Objectives Sales Percentage of sales Message execution Competitive parity Objective and task

ADVERTISMENT: Important decisions in advertising:
Setting advertising objectives: The first step is to set advertising objectives. Advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time.

ADVERTISMENT: Informative advertising Possible Advertising Objectives:
Telling the market about a new product Describing available services Suggesting new uses for a product Correcting false impressions Informing the market of a price change Reducing customers’ fears Explaining how the product works Building a company image. Persuasive advertising Building brand preference Encouraging switching to your brand Changing customer perceptions of product attributes Persuading customers to purchase now Persuading customer to receive a sales call Reminder advertising Reminding customers that the product may be needed in the near future Reminding customers where to buy the product Keeping the product in customers’ minds during off-seasons Maintaining top-of-mind product awareness.

ADVERTISMENT: Setting the advertising budget
After determining its objectives, the company next sets its advertising budget for each product. Four methods for determining promotion budget

ADVERTISMENT: Specific factors that should be considered when setting the advertising budget: Stage in the product life-cycle: Market share Competition and Clutter Advertising frequency Product differentiation

ADVERTISMENT: Developing Advertising Strategy:
Creating the advertising message: No matter how big the budget, advertising can succeed only if commercials gain attention and communicate well.

ADVERTISMENT: The changing message environment

ADVERTISMENT: Message strategy:

ADVERTISMENT: Message Execution
Any message can be presented in different execution styles such as the following: Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence. Testimonial evidence or endorsement

ADVERTISMENT: Selecting advertising media
Deciding on reach, frequency and impact Choosing among chief media types

Choosing among chief media types
ADVERTISMENT: Choosing among chief media types Medium Advantages Limitations Newspapers Flexibility;timeliness; local market coverage;broad acceptance; high believability Short life; poor reproduction quality; small pass-along audience. Television Good mass-market coverage; low cost per exposure; combines sight, sound and motion; appealing to the senses. High absolute cost; high clutter; fleeting exposure; less audience selectivity. Radio Good local acceptance; high geographic and demographic selectivity; low cost. Audio presentation only; low attention ( the ‘half-heard’ medium); fleeting exposure; fragmented audience Magazines High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership. Long ad purchase lead time; high cost; some waste circulation; no guarantee of position. Direct mail High audience selectivity; flexibility; no ad competition within the same medium; allows personalization. Relatively high cost per exposure; ‘Junk mail’ image. Outdoor Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity. No audience selectivity; creative limitations. Internet High selectivity; low cost; immediacy; interactive capabilities. Small, demographically skewed audience; relatively low impact; audience controls exposure.

Selecting Specific Media Vehicles
ADVERTISMENT: Selecting Specific Media Vehicles Deciding on Media timing

EVALUATING ADVERTISING:
ADVERTISMENT: EVALUATING ADVERTISING:

ADVERTISMENT: Repeat Trial Intention Preference Attitude Aware Unaware

Other advertising considerations:
ADVERTISMENT: Other advertising considerations: Organizing for advertising

International advertising decisions
ADVERTISMENT: International advertising decisions Standardisation or differentiation Centralisation and decentralisation

ADVERTISMENT: Worldwide advertising media:

Media planning, buying and costs
ADVERTISMENT: Media planning, buying and costs International advertising regulations

UNIT 4: THE COMMUNICATIONS MIX Below the line communication:
Corporate image Brand image Logos Packaging Point of sale display and Merchandising. Sales promotion Trade fairs and Exhibition Sponsorship Public relations Direct Marketing Direct Mail Evaluating the effect of advertising Source: Priciples of Marketing by Philip Kotler and CIM course book.

UNIT 4: THE COMMUNICATIONS MIX
Below the line communication: SALES PROMOTION: It is a short-term incentive to encourage purchase or sales of a product or service. It consists of short-term incentives, in addition to the basic benefits offered by the product or service, to encourage the purchase or sale of a product or service. Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons that would achieve immediate sales. Sales promotion seeks to motivate the customer to buy now. Sales promotion includes a wide variety of promotion tools designed to stimulate earlier or stronger market response. These tools are used by many organizations-manufacturers, distributors, retailers, trade associations and non-profit institutions-and may be targeted towards the consumer or final buyer, business customers, the trade or retailer and the company’s sales force. Consumer promotion include money-off, coupons, premiums, contests and others. Trade promotion range from special discounts, free goods and loyalty bonuses to training. Business promotion include many of the same tools used for consumer or trade promotions such as conventions and trade shows, as well as sales contests. Sales force promotions include bonuses, commissions, free gifts and competitions.

SALES PROMOTION: Consumer promotion Trade (or retailer promotion)
Sales promotion designed to stimulate consumer purchasing, including samples, coupons, rebates, price-offs, premiums, patronage rewards, displays, and contests and sweepstakes. Trade (or retailer promotion) Sales promotion designed to gain reseller support and to improve reseller selling efforts, including discounts, allowances, free goods, cooperative advertising, push money, and conventions and trade shows. Business promotion Sales promotion designed to generate business leads, stimulate purchase, reward business customers and motivate the salesforce. Sales force promotion Sales promotion designed to motivate the sales force and make sales force selling efforts more effective, including bonuses, contests and sales rallies.

SALES PROMOTION MAJOR SALES PROMOTION TOOLS: CONSUMER PROMOTION TOOLS:
Samples: Offers to consumers of a trial amount of a product Coupons: Certificates that give buyers a saving when they purchase a product Cash refund offers (rebates): Offers to refund part of the purchase price of a product to consumers who send a ‘proof of purchase’ to the manufacturer Price packs: Reduced prices that are marked by the producer directly on the label or package Premiums: Goods offered either free or at low cost as an incentive to buy a product. Advertising specialities: Useful articles imprinted with an advertiser’s name, given as gifts to consumers. Patronage rewards: Cash or other awards for the regular use of a certain company’s products or services. Point-of-purchase (POP) promotions: Displays and demonstrations that take place at the point of purchase or sale. Competitions, sweepstakes, lotteries and games: promotions that offer customers the chance to win something – cash, goods or trips – by luck or extra effort.

STAKEHOLDERS

MAJOR SALES PROMOTION TOOLS: TRADE PROMOTION TOOLS:
DISCOUNT: A straight reduction in price on purchases during a stated period of time ALLOWANCE: (1)Reduction in price on damaged goods. (2) Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s product in some way.

SALES PROMOTION MAJOR SALES PROMOTION TOOLS:
BUSINESS PROMOTION TOOLS Conventions and trade shows Sales contests

SALES PROMOTION RAPID GROWTH OF SALES PROMOTION

SALES PROMOTION SETTING SALES PROMOTION OBJECTIVES

SALES PROMOTION-consumer market
MAJOR SALES PROMOTION TOOLS Samples Offers to consumers of a trial amount a product Coupons Certificates that give a saving when they purchase a product Cash refund offers (rebates) Offers to refund part of the purchase price of the purchase price of a product to consumers who send a ‘proof of purchase’ to the manufacturer Price packs Reduced prices that are marked by the producer directly on the label or package Premiums Goods offered either free or at low cost as an incentive to buy a product Advertising specialties Useful articles imprinted with an advertiser’s name, given as gifts to consumers. Patronage rewards Cash or other awards for the regular use of a certain company’s products or services. Point-of-purchase (POP) promotions Displays and demonstrations that take place at the point of purchase or sale Competitions, Sweepstakes, lotteries and games Promotions that offer customers the chance to win something – cash, goods or trips – by luck or extra effort.

Below the line communication:
PUBLIC RELATIONS 1.This is a planned, sustained and deliberate effort by an organization to maintain a good relationship with the public. 2.Public relations means building good relations with the company’s various publics by obtaining favorable Publicity, building up a good ‘corporate image’, handling or heading off unfavourable rumours, Stories and events. Major PR tools include press relations, product publicity, corporate communications, lobbying and counselling:

PUBLIC RELATIONS Public relations is another mass-promotion technique. This concerns building good relations with the company’s various publics by obtaining favourable publicity, building up a good ‘corporate image' and handling or heading off unfavourable rumours, stories and events. Public relations (PR) departments Perform any or all of the following functions: Press relations or press agency: Creating and placing newsworthy information in the news media to attract attention to a person, product or service. Product publicity: Publicising specific products Public affairs: Building and maintaining local, national and international relations. Lobbying: Building and maintaining relations with legislators and government officials to influence legislation and regulation. Investor relations: Maintaining relationships with shareholders and others in the financial community. Development: Public relations with donors or members of non-profit organisations to gain financial or volunteer support.

PUBLIC RELATIONS Public relations is used to promote products, people, places, ideas, activities, organisations and even nations. Trade associations have used public relations to rebuild interest in declining commodities. Nations use public relations to attract more tourists, foreign investment and international support. The government uses public relations to sensitize the public about the consumption of dangerous products such as cigarettes and alcohol. The government also uses public relations to make the public to protect them selves from diseases e.g. AIDS. Steal in this light, the government uses PR to educate the public about precautionary measures to take in so far as Bird Flu Virus is concerned. Pressure groups such as the Food Standards Agency also uses the PR to inform customers about those harmful products which can damage their health.

PUBLIC RELATIONS MAJOR PUBLIC RELATIONS TOOLS:
PR professionals use several tools. One essential tool is news . PR professionals find or create favourable news about the company and its products or people. Sometimes news stories occur naturally. At other times, the PR person can suggest events or activities that would create news. Speeches also create product and company publicity. Increasingly, company executives must field questions from the media or give talks at trade associations or sales meetings. These events can either build or hurt the company’s image. Another common PR tool is special news, ranging from news conferences, press tours, grand openings and firework displays to laser shows, hot-air balloon releases, multimedia presentations and star-studded spectaculars, or educational programmes designed to reach and interest target publics. Public relations people also prepare written material to reach and influence their target markets. These materials include annual reports, brochures, articles and company newsletter and magazines. Audiovisual materials such as films, slide-and-sound programmes and video and audio cassettes, are being used increasingly as communication tools. Corporate-identity materials also help create a corporate identity that the public immediately recognises. Logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms and even company cars and trucks make effective marketing tools when they are attractive, distinctive and memorable. Finally, companies might improve goodwill by contributing money and time to public service activities: campaigns to raise funds for worthy causes- for example, to fight illiteracy, AIDS, Bird Flu, Tuberculosis, cancer; support the work of a charity, or assist the aged and handicapped- help to raise public recognition. Sponsorship is any vehicle through which corporations gain public relations exposure. Corporate sponsorships have become an important promotional tool for companies looking to lift their brand image, or introduce new product lines or services. Worldwide spending on sponsorships totalled $24bn in 2002, an annual increase of 3.4 percent according to a Chicago based research company (IEG).

PUBLIC RELATIONS MAIN PUBLIC RELATIONS DECISIONS

PUBLIC RELATIONS SETTING PUBLIC RELATIONS OBJECTIVES

PUBLIC RELATIONS CHOOSING PUBLIC RELATIONS MESSAGES AND VEHICLES

PUBLIC RELATIONS IMPLEMENTING THE PUBLIC RELATIONS PLAN

PUBLIC RELATIONS EVALUATING PUBLIC RELATION RESULTS

Below the line communication:
DIRECT MARKETING It is direct communications with carefully targeted individual customers to obtain an immediate response.

DIRECT MARKETING THE BENEFITS OF DIRECT MARKETING TO THE CONSUMER
Direct marketing benefits buyers in many ways: First it is convenient: from the comfort of their homes or offices, customers can browse mail catalogues or sellers’ websites at any time of the day or night. Buying is easy and private. Customer confront fewer buying hassles and do not have to face salespeople or open themselves up to persuasion and emotional pitches. Business Customers can learn about available products and services without waiting for and tying up time with sales people. 2. Direct Marketing often gives shoppers greater product access and selection: For example, the world’s the limit for web. Cyberstores such as Amazon, CDNow and others can offer an almost unlimited selection compared to the more meagre assortments of counterparts in the bricks- and –mortar world. Beyond a broader selection of sellers and products, online and Internet channels also give buyers access to a wealth of comparative information, information about companies, products and competitors, at home and around the globe. Good websites often provide more information in more useful forms than even the most solicitous salesclerk can. Amazon. COM and CDNow, for example, offer best-seller lists and reviews: 3. Finally, direct marketing- especially online buying – is interactive and immediate. Customers can often interact with the sellers by phone or on the seller’s website to create exactly the configuration of information, products or services they desire, then order them on the spot. Furthermore, the internet and other forms of direct marketing give customers a greater measure and sense of control. For example, a rising proportion of car buyers ‘shop online’, arming themselves with information about car models and dealer costs before showing up at a dealership.

DIRECT MARKETING THE BENEFITS OF DIRECT MARKETING TO THE SELLER:
Direct marketing also yields many benefits to sellers: Direct marketing is a powerful tool for customer relationship building: Direct marketing gives sellers access to buyers that they could not reach through other channels. For example, the internet provides access to global markets that might otherwise be out of reach. Finally, direct marketing can offer sellers a low-cost, fast and efficient alternative for reaching their markets. For example, direct marketing has grown rapidly in B2B marketing, partly in response to the ever-increasing costs of marketing through the sales force.

DIRECT MARKETING FORMS OF DIERCT MARKETING Telephone marketing
Direct-mail marketing Catalogue marketing Direct-response television marketing Integrated direct marketing

UNIT 4: THE COMMUNICATIONS MIX: Sources: Philip Kotler(Priciples of Marketing Below the line advert Advantages Disadvantages Corporate image Brand image Logos Packaging POSDM Sales promotion Exhibitions Sponsorship Public relations Direct marketing

UNIT 4: THE COMMUNICATIONS MIX:
Above the line advert Advantages Disadvantages Television: Terrestrial, satellite, cable and interactive: Local, national and International. Can provide movement/colour/sound and emotion. It is an intrusive medium. Viewers can identify with situations in adverts. Mass, regional or specific coverage available. Short time of adverts restricts information-passing. Can be repetitive which will result in boredom for viewer. Costly/time consuming to produce live adverts Adverts shown when many supply points are closed. Adverts not retained for review(consider home videos) Can be difficult for viewer to respond(consider tele-marketing) Radio: Local, national and international. Airtime is not very expensive. Offers sound effects and emotion. Versatile in location (Portable) It is intrusive. Non-visual Transmit only non complex info Needs repetitive advert to ensure coverage. High risk of listener intolerance due to repetition. Press Advertising: It covers all printed papers; Newspapers, Magazines and directories. It may be national, regional, specialist, trade or general publications. High circulation with good opportunity to see(OTS). Audience can be easily identified Information can be saved and retrieved Advantages can include response coupons. Relatively low costs involved(both preparation and advert space) No sound and Movement If too many adverts, some will be missed. Magazines require long lead time. Printing only as good as the staff involved.

UNIT 4: THE COMMUNICATIONS MIX:
Above the line advert Advantages Disadvantages Cinema Internet Outdoor

UNIT 5: THE ROLE OF INFORMATION COMMUNICATION TECHNOLOGY IN CUSTOMER RELATIONSHIPS: How communications with customers is changing The evolution of e-business Using ICT to improve customer communications. The Internet Websites Electronic Mail Intranet Extranet E-Commerce E-Business E-Marketing Signposts for the future Telecommunications Digital technology Source: CIM course book

UNIT 6: EFFECTIVE COMMUNICATIONS
Content of PART D Customer Communication UNIT 6: EFFECTIVE COMMUNICATIONS Communication skills in marketing. Verbal communication Non-verbal communication Using and interpreting non-verbal communication Listening skills Using the telephone Planning telephone calls Guidelines for making effective telephone calls Guidelines for receiving calls Conference calls Presentation skills. Source: CIM course book

UNIT 7: COMMUNICATING IN MEETINGS, INTERVIEWS AND NEGOTIATIONS: Meetings Reasons for meeting Types of meetings. Managing meetings Constituting a formal meeting Terminology of meetings Meeting documents The role of interview and negotiations Purpose of interview Types of interview Planning the interviews The interview process Types of questions Negotiations Source: CIM course book

UNIT 8 : USING STATISTICAL DATA AND VISUAL INFORMATION: Why is data relevant to marketing? Interpreting, selecting and summarizing information Why use visual information? How to present visual information? Problems with distorting information. Source: CIM course book

UNIT 9: WRITTEN COMMUNICATION FORMATS Why study communication formats? Written communications skills in marketing When to use letters The layout of a business letter Types of letters Memoranda Notices Reports Articles. Source: CIM course book

WRITTEN COMMUNICATION FORMAT
Blocked layout (b) Semi-blocked layout Letter head Letterhead Layouts for business letters: (a) blocked; (b) semi-blocked

LETTERHEAD Letter references Date Inside address of recipient Attention letter Salutation Subject heading Body Complimentary Close Signature Name Position Enclosure reference. A template for a business letter

Midshire Bank Plc High Street Assington Berkshire AS 1 6EL Mr Joe Davies 17 Goldthorpe Way Assbury Berkshire AS2 4WQ 12 April 200X Dear Mr Davies At Midshire Bank we try to provide banking facilities of the highest quality in order to accurately meet our customer’s needs. To do this ti is essential that we listen to what our customers hafe to say. Wwe would like you to help uus by giving us your opiinion of Midshrie Bank’s services. We are asking an independent market research company. TMI Limited to interview a number of customers over the next few weeks. TMI Limited is a reputabnle company and your individual responses will be completely confidential to them, according to the Market Research Society’s Code of conduct. They will be co ducting the interviews by telephone and so an interviewer may telephone you at some point over the next few weeks. Because TMI Limited will choose who to overview, you might not be contacted in this instance. Ift yhour are, we wouold vallue your contribution and hope you wil be able to help use if asked. Yours Sincerely Signature Charles Gowers Branch Manager. A sample customer letter

MAKE-IT BUILDING SUPPLIERS Churchyard Grove Pickwick Lancashire LU1 5TF Tel: Our ref: HBJ/abc October 1st 20XX The Timber Merchants Ltd Station Road Ripon Yorkshire YU8 TR3 For the attention of Deborah Jones Dear Ms Jones, Account Number: Special order under invoice 123 Further to our last order, would you supply the following additional items: 20 metres to extra hard-wearing timber for fencing £5.95 per metre excl.VAT=£119 5 litres of creosote liquid in natural colour £2.75 per litres excl.VAT=£13.75 24 litres of indoor wood varnish in antique pine £1.44 per litres excl VAT= £34.56 Balance £167.31 VAT on items £29.28 Total balance £196.59 The balance should be started on the above invoice and charged to our existing account. I would appreciate delivery by November 15th, latest. Yours sincerely, Sign Harold Jenkins Purchasing Manager. An order letter.

ULTIMATE COMPUTER COMPANY Ltd 3 THE Gateway Hounslow Middlesex TW15 6TU Tel: TRJ/abc October 1st 20XX Mr Andrew Collins Marketing Communications Consultants ‘The Nook’ Twinkle Lane Beaconsfield BUCKS DU18 74R Dear Mr Collins Ref: ‘Computers of the World’ Exhibition, London, 20XX I had the pleasure of using your professional services in helping us to prepare and present at the above last year. We are now in the process of planning to exhibit our new product range again this year and would like to know whether you would offer us your services. I am pleased to enclose our latest catalogue. Please contact me at the end of next week to arrange for a meeting at our offices. I look forward to hearing from you. Yours sincerely, Timothy R. Jones Marketing Manager Enc. Catalogue of product range X. A letter of enquiry.

BEAUTY POTIONS LTD 2-6 Staines Road Windsor Berkshire BK7 9LE Tel: JK/abc October 1st 20XX Variety Fragrances 10 Harrow Road Wembley Middlesex 8TU 65R For the attention of Mr Gardiner Dear Mr Gardiner, On September 5th 20XX, we received your order 1112, together with the invoice, 2224. You will note that the first item on the invoice is listed as 50. Fragance ‘Irresistible’, but unfortunately we received 50. Fragrance ‘Uncontrollable’. A copy of the invoice is attached. Please be kind enough to collect the wrong items and have them replaced by 50. Fragrance ‘Irresistible’ at the same time. I look forward to receiving the correct order by November 1st 20XX. Sincerely, Joanna Kemp Sales and Purchasing Manager Enc. Copy of invoice 2224 A letter of complaint

CATERING WHOLESALERS LTD 35 Redruth Avenue Tunbridge Kent TN15 UCI T el: HB/abc October 1st 20XX Mr R.Anderson The Manager ‘The Restaurant’ 76 Sevenoaks Road Sevenoaks KENT Dear Mr Anderson, Thank you very much for your recent application for credit. I am pleased to inform you that this has been approved. Our terms and conditions are as follows: A credit limit of £2000 is available for your establishment. Invoices must be settled within 15days of the date of issue, after which an interest charge of 5% will be levied on outstanding balances. Yours sincerely, Harry Bains Credit Manager. A letter approving credit

FINANCE and INSURANCE Co The Causeway Newcastle upon Tyne NN4 65T Tel: SB/abc October 1st 20XX The Membership Secretary Chartered Institute of Marketing Moor Hall Cookham Berks Dear Sir/Madam, Re: Caroline Taylor I am pleased to support Ms Taylor’s application for membership of the Chartered Institute of Marketing Ms Taylor has been in our employment for 6 years working in the area of Direct Marketing. I understand that she passed all her CIM examinations and will be pleased to receive further benefit as a member of the CIM Yours faithfully,l Sheila Brown Marketing Director. A letter of recommendation

MEMO Medical Software Ltd To: Carole Francis(Sales and Marketing Director) From: Clare White (Marketing Manager) Copy to: Hannah Craven (secretary) Subject: Software 20XX Exhibition, Amsterdam, December 1st –3rd Date: October 1st 20XX We have 8 weeks before the exhibition takes place and need to finalize the details of the follow-up campaign, particularly the role of our sales force. Further to our meeting last week, we also need to discuss the sales promotion initiatives to push our products following the exhibition. Please confirm that a meeting on October 5th at 3pm in my office will be convenient. A memo

Message Composition Send now Quote Attach Address Stop Subject: Click here to enter the subject: exhibition material Addressing Attachments Mail To: Cc: Click here to enter carbon copy Dear Jane Thanks for the opportunity to quote for the exhibition material job. I have produced some costings and draft timescale based on our requirements. Please see the attachment. Ring me if you have any queries. I amount of the office until Monday but I will ring you then to see if you want me to proceed with the work. Regards Alex Kelly An example of an message.

SAFETY FIRST! A Special First-AID Course designed to give You basic introduction will be available free To all employees on the following dates. October 1st 5-6pm November 1st5-6pm December 1st 5-6pm The number of places is limited to 20 per class so early booking is advisable. Contact: Jane Slater, ext. 123 A notice

REPORT TO: Denise Wood, Marketing Manager FROM: Amy Mills, Marketing Assistant DATE: 6 December 2005 GO EASY- THE CASE FOR A WEBSITE & ON-LINE BOOKING SERVICE 1.Introduction 2.Findings 3. Conclusions An example of a formal report

PRINTMAN PRINTING COMPANY Report on Office Telecommunications Facilities To: Mark Scrivens, Managing Director From: Jo Goodwin, Sales and Marketing Manager Date: December 2005 Introduction Findings Arguments for 1. Arguments against Conclusions. Recommendation An example of an informal report

Consumer Costs and benefits Organization Individua

Similar presentations

Presentation on theme: "Consumer Costs and benefits Organization Individua"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Consumer Costs and benefits Organization Individua

Similar presentations

Presentation on theme: "Consumer Costs and benefits Organization Individua"— Presentation transcript:

Similar presentations

About project

Feedback