Marketing mix of traditional products services
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Marketing Mix of Traditional Products & Services. The marketing mix is the set of controllable, tactical marketing tools that the producer/craft maker blends to produce the response in the marketplace. Marketing Mix. 4 P’s into 7 P's.

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Marketing mix of traditional products services

Marketing Mix of Traditional Products & Services

  • The marketing mix is the set of controllable, tactical marketing tools that the producer/craft maker blends to produce the response in the marketplace.


Marketing mix 4 p s into 7 p s

Marketing Mix. 4 P’s into 7 P's

4Ps serves forselection consumers with their reaction only for product presentation or observation.

7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment -extends to encompass growth of services, and helps to gain the reaction from its target market

9 Ps consists of everything controllable, tactical the craftmakers can influence the interest or demand for TG.


Marketing mix 4 p s into 7 p s1

Marketing Mix. 4 P’s into 7 P's

1. Process of Planning to come with TP to a target market

2.People or a target market

3. Product - TP (goods and services in combination) offered to target market.

  • Variety of product mix, features, designs, packaging, sizes, services, warrantees and return policies.

    4.Price for TP consumers is important shift for communication or interactive behavior.

  • Retail price/wholesale

  • Discounts


Marketing mix 4 p s into 7 p s2

Marketing Mix. 4 P’s into 7 P's

5. Promotion - activities trended to communicate the merits of TP.

  • Personal Selling or Sales Force

  • Advertising

  • Sales Promotion – samples, coupons, premiums, cash refunds, demos, point-of-purchase materials, display allowances, trade shows, sales rep contests

  • Public relations

  • Direct marketing - direct mail, Internet, telemarketing, and direct-response, catalogs.


Marketing mix 4 p s into 7 p s3

Marketing Mix. 4 P’s into 7 P's

6. Place/Distribution - activities that make the TP available to the target market.

Includes distribution channel, geographic coverage, locations, inventory, transportation or logistics.

7. Partners/Alliances - joint relationships involving cooperation and responsibilities for duties including products, distribution and promotion functions.


Integrated marketing concept

Marion Harper:

“To manage a business well is to manage its future; and to manage the future is to manage information.”

Integrated Marketing Concept

When craft maker works so hard to serve the customer’s interests

Two levels of marketing integration:

  • The various marketing functions of marketing research, planning, sales force, advertising, TP/brand management, pricing and promotion are using together.

  • “Think about Customer” - as marketing is well-coordinated by craft maker.


Marketing mix of traditional products services

Most popular myths – Marketing myopia about consumers

  • No guarantee against product obsolescence.

    • Always appears better TP combination.

  • Customers buy “by their eyes and emotions”

    • They buy when they see variety

    • Customers have special experience not to buy a lot of TP from one place

  • Customers can’t evaluate quality.

    • They always evaluate quality for sized TP

    • Demanded TP with style

  • Customers need TP

    • They need it when they are 1st time in target place

    • Higher inspiration from more advertised or famous places


Marketing s role

Marketing’s Role

  • Marketing should try to mobilize resources to develop customer satisfaction.

  • Requests to increase product design, material costs, disrupt production schedules, increase costs and create budget headaches.


Distribution 3p

DISTRIBUTION – 3P

Lecturer R. RukuižienėLithunian University of AgricultureFaculty of Economics and ManagementDEPARTMENT OF BUSINESS MANAGEMENT

2011-05-06


Distribution conception

DISTRIBUTION CONCEPTION

Learning Objectives of Distribution Theory:

  • Understanding of decisions range concerning distribution planning.

  • Alternative distribution channels’ structure and relevant criteria of their choice.

  • Distinctive characteristics of distribution management.

  • Contributions to distribution process and marketing strategy.


Marketing mix of traditional products services

DISTRIBUTION CONCEPTION

  • Distribution is a process of identification and appliance of production distribution shifts.

  • Distribution as supply system applied for customers to find the useful products at determined place and moment.

  • Distribution as communication system of producers, purchasers, customers in concrete area and time period.


Distribution

DISTRIBUTION

Distribution – element of marketing mix, which is oriented to the decisions and acts concerning production movement from producer to consumer.


Marketing mix of traditional products services

Consumers

Flows (Products & Information & Money)

Market of … products

Producer organizations

Distributors

Trade organizations

Wholesalers

Retailers

Managerial market shifts

Marketing mix (4 P’s)

Product

Price

Place (distribution)

Promotion

Distribution - the element of marketing mix, - concerning decisions and activity, - focused upon production movement from producers to consumers.

DISTRIBUTION CONCEPTION


Marketing mix of traditional products services

DISTRIBUTION CONCEPTION

Distribution process

Distribution process is focused on:

  • Order of processing and it’s management.

  • Purchasing and selling of products (raw materials and other resources).

  • Production possession and storing.

  • Transportation and protection.

  • Production delivery and money transfers.

  • Reserve store formation and quality management.


Marketing mix of traditional products services

DISTRIBUTION CONCEPTION

Complexity factors of distribution system :

  • Dispersion of products into territorial units.

  • Frequency of ordering.

  • Products submission methods and dates.

  • Complexity of “route” schema.

  • Products nomenclature and it’s formation complexity.

  • Policy of reserve management.


Characterization of distribution channels

Characterization of Distribution Channels

Criteria and motivation of feasibility as a basement to form distribution channel according producers or purchasers philosophy


Functions of distribution channel

Functions of Distribution Channel

Intermediaries in channel are subordinated to general schema of organization, possession and control.

Subordinated actions of intermediaries upon:

  • Pricing items.

  • Purchase items.

  • Market penetration and/or retention items.

  • Total responsibility and unified service system.


Formation of distribution channel

Formation of Distribution Channel

  • Distributor acceptance

  • Distributor elimination

  • Distributor change to more competitive

    Distributors are available to act in distribution channel

    as long as they have power

    to impact distribution service scope and price

    concerning supplier’s requirements to sale management


Horizontal and vertical distribution marketing systems

HORIZONTAL AND VERTICAL DISTRIBUTION (MARKETING)SYSTEMS


Marketing mix of traditional products services

DISTRIBUTION

System of distribution channels is organizations (intermediaries) which coordinate the products flows and make contracts.

  • Length of distribution channel – amount of members (intermediaries) in distribution chain.

  • With of distribution channel – amount of independent members in each distribution chain.


Vertical marketing systems vms 1

Producer

Wholesaler

Trader

Consumers

1 level

2 level

Producer

Wholesaler

Trader

Consumers

Producer

Wholesaler

Trader

Consumers

Vertical marketing systems (VMS - 1)

The net of intermediaries - territorial trade unit where the strongest member of distribution channel keeps the control in his hands (as current stockholder or franchiser with the higher-stock financial capital) in managing separately all members as unified in corporation.

Moderator of distribution channel - a producer or intermediary of any level


Vertical marketing systems vms 2

VMS

Producer

Distributor

Trader

Consumers

Synergy effect = (1) Economic effect = Product diffusion

(2) Technologic effect

(3) Financial effect

(4) Communicational effect

Vertical marketing systems (VMS - 2)

DISTRIBUTION CONCEPTION

VMS creates managerial net of intermediaries (channel) with financial, technologic and communication matches to prevent conflicts inside the channel of differentiation the goals of corporative activity.


Marketing mix of traditional products services

Vertical marketing systems (VMS - 3)Types of VRS:

  • Corporative systemscover the net of intermediaries as warrant for production circulation from producers to customers.

  • Administered systems cover companies, whichkeep the net of intermediaries (channel) with the provision of their support to accountancy, provision or technological adequacy.

  • Contractual systemscover the independent producers with different specialization, distribution ability, and actively cooperating in creation contracts for higher turnovers.

    • Voluntary trading systems(vertical channels) cover the collaboration contracts between wholesalers and retailers, where wholesalers manage the activity of retailers.

    • Cooperated retailing systems (vertical channels) corporate the amount of retailers in producing addition functions of reproduction, storage, packaging, transporting, delivering.

    • Franchise organizations cover special created channels of distribution for special production delivery and distribution for special customers.


Horizontal marketing systems hms 1

Horizontal marketing systems (HMS - 1)

DISTRIBUTION CONCEPTION

HMS is a corporative formation of independent intermediaries (horizontal channel), which join their resources for effective actions in the market under beneficial or risky circumstances.

HMS help to develop such channel in building financial stability, innovative technologies, marketing strategy of each intermediary under market obstacles.


Marketing mix of traditional products services

DISTRIBUTION CONCEPTION

Horizontal marketing systems (HMS - 1)

HMS coordinate themselves by special managerial departments for trading, information system possession, implementation of integrated marketing tools.

General coordination of HMS (horizontal channel) members

  • Assessment of market obstacles.

  • Planning of production flows.

  • Management of production reserves.

  • Prognostication of turnover.

  • Implementation of differentiated pricing policy.


Multi channel marketing systems mcms 1

Multi-channel marketing systems (McMS – 1)

McMS create the possibilities to producers to get into different market segments by the help of different distribution channels.

McMS - popular distribution formula under market profilation to eliminate conflicts in different distribution channels, and under implementation of general marketing strategy:

  • In covering new market segments.

  • In forming new demand.

  • In creating higher dispersion of production.


Marketing mix of traditional products services

4 support activities

  • Firm’s infrastructure

  • Human resources management

  • Technology development

  • Procurement

Margin

5 primary activities

Inbound logistics * Operations * Outbound logistics * Marketing and sales * Service

Margin

Management of Distribution Channel Channel Choice Decisions

Value chain for creation competitive advantage


Marketing mix of traditional products services

THANK YOU FOR ATTENTION


Marketing mix of traditional products services

Lecturer Rasa RukuižienėLithunian University of AgricultureDEPARTMENT OF BUSINESS MANAGEMENT2011-05-06

MARKETING MIX. PRODUCT PRICE AND PRICING

Formation of product/service pricing under

impact of market globalization

PRICING DECISIONS


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

Price – value in exchanging market of products/services.

Price – products’ value, which in market could be defined as pushing process for presenting products to consumers.

(Ph.Kotler,H.Amstrong, J.Sonders, V. Wong).


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

PRICING IMPACTS THE REQUIREMENTS

OF ACTIVITY:

  • reduce the costs;

  • enhance the profit;

  • correspond with the value of consumers in communication;

  • reflect the TP distribution (other MM) problems;

  • correspond with other marketing mix elements, but is not the single competition providence mode.


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

  • Low price – as a competition providence force possible in situation when enterprises have low costs or their sales are sensitive to lower prices.

  • Effective marketing goal – to create pleasing environment with low sensitiveness to price fluctuations.


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

PRICING APPROACHES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

  • Goals of craft makers

  • Level of PLC

  • Product position in the market

  • Potential competitors

  • Costs (internal and competitors’)

  • Distribution channels and impact of retailers

FACTORS IMPACTING PRICING DECISIONS


Determination of pricing goals 1 3

DETERMINATION OF PRICING GOALS (1-3)

MARKETING MIX. PRODUCT PRICE AND PRICING

1. ORIENTED TO PROFIT

  • Efficiency of invested capital or sales

  • Maximization of profit under perfect demand elasticity, low prices and market enlargement

  • Maximization of profit under imperfect demand, high prices (“cream skimming” strategy) and concentrated market segments


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

2.ORIENTED TO SALES

  • Up-grade products value and sales

  • Sales of new products and advertising of new enterprises

DETERMINATION OF PRICING GOALS


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

3. ORIENTED TO MARKET POSITION PROTECTION

  • Prices reflect the level of competition and competitive prices

  • Competition is concentrated to different elements of marketing mix, ex., quality of products, consumers service and etc.

DETERMINATION OF PRICING GOALS


Pricing under plc concept

PRICING UNDER PLC CONCEPT

MARKETING MIX. PRODUCT PRICE AND PRICING

Strategies in different levels of PLC


Pricing methods

PRICING METHODS

MARKETING MIX. PRODUCT PRICE AND PRICING

  • ORIENTATION TO COSTS

    Orientation to production costs under calculation the direct fixed costs and percentage of fixed profit rate.


Pricing methods1

PRICING METHODS

MARKETING MIX. PRODUCT PRICE AND PRICING

2. AGREGATION METHOD

Orientation to product price under summing prices of separate product’s elements.


Pricing methods2

PRICING METHODS

MARKETING MIX. PRODUCT PRICE AND PRICING

3. PARAMETRIC METHOD

Orientation to product price under analysis of product’s quality parameters, evaluation and comparison of them.


Pricing methods3

PRICING METHODS

MARKETING MIX. PRODUCT PRICE AND PRICING

4. ORIENTATION TO COMPETITION

Orientation to product price under competitors actions, but not to production costs or market demand.


Pricing methods4

PRICING METHODS

MARKETING MIX. PRODUCT PRICE AND PRICING

5. ORIENTATION TO PROFIT SHARE

Orientation to product price under determined profit rate.


Pricing methods 1 2

PRICING METHODS (1-2)

MARKETING MIX. PRODUCT PRICE AND PRICING

5. ORIENTATION TO PROFITABILITY

* Orientation to product price under determined profitability rate.

* The comparison of income and costs lets to evaluate margin sale after deduction fixed and variable costs from income rate.

* Break – Even – Point model shows the situation of activity profitability.


Pricing methods 1 21

PRICING METHODS (1-2)

MARKETING MIX. PRODUCT PRICE AND PRICING

Break – Even – Point model

A - break-even-point, units of products;

Ipast - total fixed costs, Lt;

k- product price, Lt per unit;

Ikint- fixed costs per product unit, Lt


Pricing methods 1 22

PRICING METHODS (1-2)

MARKETING MIX. PRODUCT PRICE AND PRICING

7. ORIENTATION TO DEMAND CURVE TREND

Orientation to product price under

the highest income rate.


Pricing concept plc

Product not

becoming

obsolete

Product

becoming

obsolete

Sales per period

O

Time

(1)

Launch

(4)

Decline

(2)

Growth

(3)

Maturity

Pricing concept - PLC

The nature of product life cycle - 4 stages

  • launch

  • growth

  • maturity

  • decline


Pricing strategies

PRICING STRATEGIES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

PRICING STRATEGIES

“Cream skimming” price strategy is oriented to reach high profitability rate, and helpful:

a) in short terms the changes of competition level are invisible under impact of business licenses, high expenditures to market entrance, new technologies and etc.;

b) unique features of TP make the barriers in pricing under creation imperfect demand elasticity;

c) demand limitation depends on TP quantity for sales;

d) efficiency of TP requires the quick investment return.


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

PRICING STRATEGIES

“Scrolling” price strategy is the modification of “cream skimming” price strategy, and effectively implementing after mentioned strategy.

The amount of consumers is very important under the conditions when in long term period prices are going down, and market share is growing, then the conditions for competitors access to market is limited of limited profit rate.


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

PRICING STRATEGIES

Penetration pricing strategy is effectively implementing with low prices by launching TP to new market segments or trying increasing market share under creation successful position in market.


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

  • To pursuance of new TP producers or new TP come to target market.

  • To get advantage against competitors who not necessary react applying with low prices.

  • To get additional share of market and receive investment as quicker as possible.

PRICING STRATEGIES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

Elasticity pricing strategy is oriented to the needs of consumers after long experimental measures in target market segments concerning the demand elasticity to price.

According to the level of price (high or low), elasticity strategy effectively impacts:

  • Market reaction to lower prices in activating the purchase.

  • Market reaction to higher price in activating purchase in low level.

PRICING STRATEGIES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

Passing the leader pricing strategy is oriented to price definition according the leaders prices in economical sector.

After implementation this strategy the progressive investigation of market parameters has to applied and prognostication of changes in the market concerning the leaders actions.

According to this strategy the adoptions acts in the market have to realized:

  • Small companies have to follow some large scaled companies actions.

  • The leaders have to react to the mostly high or low prices.

  • Products design and quality doesn’t differ according the companies size.

PRICING STRATEGIES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

Pricing strategy only for TP segments is oriented to the application of different products prices in different markets or for different customers.

This strategy is important when customers are very different, and the purchase of TP with small different features in product’s design has to be high.

Differentiated product strategy impacts the differentiated pricing strategy.

Pricing in segments creates special segment as niche of market.

PRICING STRATEGIES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

Pricing strategy of segments is useful when:

  • Product is easily applicable in different market segments.

  • Product is easily changeable – has substitute to be as adequate in different market segments.

  • Different market segments are not competing interdependently.

PRICING STRATEGIES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

“Costs plus” pricing strategy is oriented to costs level contrary as oriented to market and can’t be flexible, and is available when:

  • Product is under state regulation market.

  • Total costs are not predictable.

  • Product is testes as new product.

PRICING STRATEGIES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

Flexible pricing strategy is oriented to determined product price, which depends upon changeable preconditions of market.

This strategy is available when:

  • Exists important competitive challenge.

  • Competitors use penetration pricing.

  • Demand level is flexible.

PRICING STRATEGIES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

“Road gate” pricing strategy is oriented to deter the competitors from entrance to target market.

This strategy help to defend in dominant market:

  • To keep strong position in the market and fight with competitors.

  • To satisfy market needs by creating loyalty.

PRICING STRATEGIES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

Product life cycle (PLC) pricing strategy is oriented to price identification in each PLC period.

Old product is well-known for customers, and amount of purchase can be produced by the help of high price.

This strategy is available when:

  • Product is demanded, but long perspective demand is going down.

  • Substitutes create new demand.

  • Product line is constructed according production level.

PRICING STRATEGIES


Marketing mix of traditional products services

MARKETING MIX. PRODUCT PRICE AND PRICING

Loss leader’s pricing strategy is oriented to attract customers for purchasing other products.

This strategy is available when:

  • Intermediary wants to make “market noise”.

  • Complement product details price is higher, when low price is presenting for whole product.

    (St. L. Montgomery)

PRICING STRATEGIES


Yours exercise price of tp

Yours exercise – Price of TP

Yours products has to find their consumers

  • Whom you expect in trading area? Who is a product’s consumer?

  • How you can manage price of a product?

  • What pricing strategy you can adopt?


Exercise for you create the pricing for yours tp how much it costs for craft maker

Exercise for You: Create the pricing for yours TP. How much it costs for craft maker?

  • What value TP can suggest for customers?

  • Is TP correspond with customers needs?

  • Are customers sensitive to TP price?

  • What customers assess in TP?

  • Does TP need special environment? What kind of?

  • Can TP be substituted?

  • Can TP be obsolescence?


Marketing mix of traditional products services

Thank you for attention …


Promotion mix strategies of promotion

PROMOTION MIXSTRATEGIES OF PROMOTION

2011-05-06

Pasvalys


Marketing mix of traditional products services

Product

Personnel selling

Price

Advertisement

Distribution

Inducement of purchase

Promotion

Public relations

PROMOTION - element of marketing mix, which is oriented to initiate purchase or initiatives of consumers.


Promotion

Promotion

Promotion – the system of information and persuasion acts oriented to consumers and their attraction.

Main promotion methods:

  • advertising;

  • personnel sale.

    Additional promotion methods:

  • popularization;

  • inducement of purchase.


Promotion1

Promotion

  • Advertising – impersonal profitable presentation of products/services/ideas.

  • Sales Force – verbal presentation of product in communicating with customers in case to sell the product.


Promotion2

PROMOTION

  • Popularization – impersonal inducement of products/services/ideas demand concerning the information dispersion in media.

  • Inducement of purchase – short term sale and purchase measures, various non repeatable efforts to sell product/service hardly connected with standard promotion types (advertising, personnel sale and popularization).


Goals of promotion

PROMOTION

Advertising

Popularization

Inducement of purchase

Personnel sale

Main goal:

INDUCEMENT OF DEMAND

Problems:

To sell product

To form image

of company

Inducement

of product

,

Inducement

of demand

GOALS OF PROMOTION


Promotion marketing communication process

Promotion - Marketing Communication Process

Information of customers about product innovations, new products and their additional value (utility).

Interactive dialog among craft makers and their customers in various market swap version.

What promotive information is necessary to present?

Whom promotive information is expendable?

When promotive information has to be presented?


Marketing communication promotion mix

Marketing Communication (Promotion) Mix

  • Information instructions for society

  • Stimulation of supply

  • Popularization (Public Relations)

  • Personal selling

  • Advertising

  • Direct marketing


Marketing communication promotion process

Product features

(price, form, color, package, novelty)

Product positioning place (sale place and interior)

Consumers

Product positioning method

(staff services and consulting)

Product Positioning

Marketing Communication (Promotion) Process

Factors influencing scoring of marketing communication process (1)

Territorial Distribution System

Information


Marketing communication promotion process1

Marketing Communication (Promotion) Process

Factors influencing scoring of marketing communication process (2)

  • Product (features, positioning place and method)

  • Characteristics of Consumers

  • Dimensions of Communication

    IndividualsInterest groups

    Social groupsSociety


Conception of promotion mix

Conception of Promotion Mix

Promotion mix useful for application as demand formation or maintenance process of new product/modification (dimensions of promotion policy)

Promotion policy currently is oriented to the interests of consumers and intermediaries.

Sustainable leverage of promotion policy - the elements of promotion mix.


Objective and problems of promotion mix

Objective and Problems of Promotion Mix

Consumers learning and education

Creation of competitive position

Creation of information media system

ConveyanceAllusion

Persuasion


Promotion mix structure

Promotion Mix Structure

  • Sales stimulation

  • Personal selling

  • Public relations (popularization)

  • Advertising


Promotion mix structure sales stimulation

Promotion Mix StructureSales stimulation

...aggregation of promotion methods applied for stimulation consumer needs to purchase concrete product under implementation of special stimulation means, ex.: testers to home, lotteries, prizes.


Promotion mix structure sales force

Promotion Mix StructureSales Force

... satisfaction of consumers interests concerning communication and personnel selling under suggestion to purchase product repeatedly and actively inform about new products and additional services.


Promotion mix structure public relations

Promotion Mix StructurePublic Relations

... interactive impersonal communication process with consumers expansive generality concerning correct information about incoming origin new products, their features, functionality, utility and value, - image creation philosophy and technology.


Promotion mix structure advertising

Promotion Mix StructureAdvertising

... impersonal communication method for coverage huge target consumers groups.


Promotion mix structure advertising conception

Promotion Mix StructureAdvertising conception

  • Conveyance

  • Propaganda

  • Opinion formation


Promotion mix structure advertising conception1

Promotion Mix StructureAdvertising Conception

Advertising types concerning application objective

  • Informative advertisement

  • Convincing advertisement

  • Allusive advertisement

  • Supportive advertisement

  • Comparative advertisement


Promotion mix structure advertising campaign steering

Promotion Mix StructureAdvertising campaign steering

5 M assessment principles

Mission  Money  Message  Media  Measurement


System of marketing communication

ADVERTISMENT

PERSONNEL

SELLING

PROMOTION

MIX

INDUCEMENT

CONTACT

AUDITORIUM

INTERMEDIARIES

OPINION

ORGANIZATION

CONSUMERS

PURCHASE

Public relations

SYSTEM OF MARKETING COMMUNICATION


Promotion mix structure preconditions of advertising efficiency

Promotion Mix StructurePreconditions of advertising efficiency

  • Supply stimulation

  • Purchase stimulation

  • Stimulation of competitors activity or partners in supply chain


Promotion mix structure advertising mix application

Promotion Mix StructureAdvertising mix application

Impulse means

Communicative activity – Stimulation and invitation to purchase

Advertising

Advertisement campaign Supply stimulation Coupons: competitions, premium, shows and events

Public relations (popularization)

Tremendous trust  Casual “consumer aggression””  Impression reinforcement

Personal selling

PERSONAL CONTACTING  COMMUNICATION CULTURE RECIPROCAL REACTION

Direct marketing

INDIVIDUALITY CUSTOMIZATION EXPEDITION IINTERACTION


Marketing communication promotion process2

Marketing communication (promotion) process

Integrated marketing communication– planning conception of marketing communication (promotion) means (CM) concerning assessment of strategic CM and their optimal derivatives under implementation maximum continuity and impact of CM impact.

INTEGRATED MARKETING (PROMOTION) COMMUNICATION ENVIRONMENT

Mini markets Mega markets


Marketing communication promotion process3

Marketing communication (promotion) process

INTEGRATED MARKETING COMMUNICATION

(PROMOTION) STEERING

  • IDENTIFICATION OF TARGET CONSUMERS GROUPS

    Differences of consumers’ opinion appear under situations when product image or it’s competitive features after testing purchase/consumption creates negative attitude to further purchase or consumption.

  • FORMULATION OF COMMUNICATIVE OBJECTIVES

    Cognition Emotional reaction  Behavioural reaction 

    Creation of new ideas  Atitudes change Action push


Conception of promotion strategy

Conception of Promotion strategy

Promotion strategy – organization and marketing communication (promotion) process under implementation of specific marketing mix elements.

  • Promotion appliance under seeking of economical results is available under necessity to act in national and regional markets.

  • Promotion unification is available under European focus to life style.


Promotion strategies

Promotion strategies

  • PUSHING STRATEGY

    • Aggressive personal selling

    • Delegation of selling functions to distribution channel (wholesalers and retailers).

  • PULLING STRATEGY

    Promotion process directly oriented to consumers.


Promotion strategies1

Promotion strategies

Aspirations about optimal promotion strategy implementation cover implementation of promotion mix elements applied to separate cultural and public market development preconditions and legal restraints concerning defined promotion strategy’s elements applied in different EU countries.


Marketing mix of traditional products services

Promotion strategiesMarketing communication (promotion) systems

Characteristics of European Marketing Communication (Promotion)

Promotion goal – decisions concern appropriate marketing communication (promotion) means upon their options.

TV, Radio, Press, Shows, Events, External Advertisement

INTERNET


Marketing mix of traditional products services

Promotion strategiesMarketing communication (promotion) systems

Important European aspect of promotion choice is definition of role and importance of international communication means in EU state-members territory.

Marketing communication (promotion) means characterization

  • Non European communication systems, ex., “Int. Harald Tribune”,“New York Times”, “CNN”;

  • Non European communication systems, oriented to European consumers, ex., “Wall Street Journal Europe”, “Business Week Europe”, “Time Europe”, “MTV Europe”;

  • European communication systems,orientedto European consumers, ex., “Eurosport”, “Arte”.


Marketing mix of traditional products services

Promotion strategiesMarketing communication (promotion) systems

Goal of promotion – option of promotion mix elements and their appropriate combination according to standardization and differentiation problems.

Promotion mix elements under implementation of Euro-Corporate-Identity strategy:

  • Advertising.

  • Direct communication.

  • Sales stimulation.

  • Product positioning.

  • Sponsoring of consumers.


Marketing mix of traditional products services

Promotion strategiesMarketing communication (promotion) systems

Structure of impersonal communication channel

  • Media –post means, mass information means, electronic means and external advertisement.

  • Atmosphere - “concentrated environment” for information consumers and stimulation purchases.

  • Events and shows – actions to inform consumers.


Marketing mix of traditional products services

Promotion strategiesMarketing communication (promotion) systems (396)

Stimulation means of communication channel:

  • to identify impact entities (customers/consumers and comapnies) and to concentrate efforts upon them;

  • to inform leaders of ideas;

  • to make apply well-known and popular persons of target community;

  • to embrace inner persons;

  • to use attractive advertising as verbal metaphor for current implications;

  • to create verbal communication channels for consumers;

  • to organize e-forum.


Promotion decisions upon the demand formation and cultivation of new products

Promotion decisions upon the demand formation and cultivation of new products

Diffusion,or product convertibility speed by other products, which shows consumers force to react and buy new product, and to warrant product distribution in various public groups.

Product assimilation function important for consumers to understand the advantages of product and the benefit of product innovation concerning its inducement for purchase.


Promotion decisions upon the demand formation and cultivation of new products1

Promotion decisions upon the demand formation and cultivation of new products

Differentiation of consumers and different types of information interpretation (hemophilia, heterophilia) can produce effect of cognitive dissonance.

Diffusion of innovations – desirable phenomenon in the market, is ...


Levels of integrated marketing promotion process

Levels of integrated marketing (promotion) process

Goals of Communication

* Recognition * Emotion reaction *

* Behavioral reaction *

* Creation of idea *

* Change of attitudes *

* Pushing to act *


Exercise for you create a promotional for tp

Exercise for You: Create a promotional for TP.

  • Why TP is needing promotion?

  • What promotion tool is more effective?

  • Compare the promotional tools if TP is in different areas?

  • Is it true, that different promotional tools is useful for TP? Prove yours version.


Marketing mix of traditional products services

Thank you for attention


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