Marketing Instruments & trade promotion AGEXPORT - Thursday 29th April 2010 - Guatemala City, Guatemala

Marketing instruments This session To understand what, why & how of using marketing instruments Agenda Marketing Mix Promotional strategy Instruments of promotion Plan & Follow up Do’s & Dont’s 29 April '10 Marketing instruments

Marketing instruments Marketing Mix: 4 P’s Product The range of services, characteristics, quality, packaging Price Determinants of price, discounts, credit, pricing strategy Promotion Selling, advertising, sales promotion, publicity Place Channels of distribution, warehousing, transport, stock levels 29 April '10 Marketing instruments

The 4 P’s are interrelated If you change one, you must make sure the others are ‘matching’. 29 April '10 Marketing instruments

Marketing instruments Price & price strategy SME must determine the objectives for the pricing Penetrating market Increasing turnover Increasing margin SME must then develop strategies to achieve those objectives 29 April '10 Marketing instruments

Marketing instruments Price setting high Generates no demand P R I C E Value pricing Competitive pricing Cost plus Generates no profit low 29 April '10 Marketing instruments

Marketing instruments Segmentation Splitting market in segments with same characteristics identical inside the segment difference between segments Types of segmentation Demographic man vs women, age Product use high users vs low users Lifestyle Armani vs H&M Buying behaviour loyal vs single user Tip Not too many segments Keep it practical 29 April '10 Marketing instruments

Customer contact pyramid loyal buyer buyer contact prospect market low # people high high € profit low 29 April '10 Marketing instruments

Customer contact pyramid loyal buyer buyer contact prospect market mass personal relationship 29 April '10 Marketing instruments

Customer contact pyramid Instruments loyal buyer buyer contact prospect market Advertising Direct marketing Personal selling Trade show 29 April '10 Marketing instruments

Marketing instruments Promotion Advertising Publicity PR Sponsorships Sales promotion Trade show Direct marketing Personal selling Internet Infomercials Focus for export 29 April '10 Marketing instruments

Developing an promotional strategy Define the purpose of the promotion program Create awareness Company Products Stimulate response Request documentation Direct sales Buy now and get ….. Identify target customers From your Export Marketing Plan Design a marketing message and promotional message Build message around a Unique Selling Proposition. 29 April '10 Marketing instruments

Marketing message = Promise & evidence 29 April '10 Marketing instruments

CBI’s promise & evidence 29 April '10 Marketing instruments

Defining your marketing message Target group Who do you want to reach? Key message What is the most important element you want to communicate? What should be in the heart / mind of the target group AFTER they have seen your communication Basic customer benefit Which benefit is the biggest / most important for your target group? Supporting evidence Which proof do you have for this benefit. Relevant to customer? Different from competitor? Sustainable over time? 29 April '10 Marketing instruments

Marketing instruments Example Target group Key message Basic Customer Benefit Supporting Evidence Music lovers with very active lifestyle 5.000 songs in your pocket Your music Wherever you go Organised how you like it Lightweight Clip Upload & organise with I-tunes Longer batterylife than competitors 29 April '10 Marketing instruments

Define the marketing message for YOUR company Assignment Define the marketing message for YOUR company 29 April '10 Marketing instruments

Defining marketing message Target group Who do you want to reach? Key message What is the most important element you want to communicate? What should be in the heart / mind of the target group AFTER they have seen your communication Basic Customer Benefit Which benefit is the biggest / most important for your target group? Supporting Evidence Which proof do you have for this benefit. 29 April '10 Marketing instruments

Marketing instruments USP Unique It clearly sets you apart from your competition Positioning you as the more/most logical choice. Selling It persuades another to exchange money for a product or service. Proposition It is a proposal or offer suggested for acceptance. Translate into creative message 29 April '10 Marketing instruments

Examples Creative messaging " I have to get this package delivered quickly! " “When it absolutely, positively has to be there overnight " 29 April '10 Marketing instruments

Examples Creative messaging " The kids are starving, but I am too tired to cook! " " Pizza delivered in 30 minutes or it's free " 29 April '10 Marketing instruments

Marketing instruments Promotion Includes... Publicity any commercial news covered by the media that boosts sales but for which the small business does not pay. Trade fair bulletins. Personal selling (trade fairs) the personal contact between sales personnel and potential customers resulting from sales efforts. Advertising any sales presentation that is nonpersonal in nature and is paid for by an identified sponsor. 29 April '10 Marketing instruments

Promotion Instruments Benefit Barriers Effective Control Cost € Cost  Advertising Public Relations Direct Mail Internet Trade fair 29 April '10 Marketing instruments

Promotion Instruments Benefit Barriers Effective Control Cost € Cost  Advertising Mass Competition + +++ Public Relations Impact No control ++ - Direct Mail Focus Limited reputation Internet Cheap Trade fair Image Cost 29 April '10 Marketing instruments

Tips for Stimulating Publicity Write an article Offer to be interviewed on TV and radio stations Publish a newsletter Speak to local organizations Sponsor a seminar Write news releases and fax them to the media Sponsor a community project or support a nonprofit organization 29 April '10 Marketing instruments

Five Fundamentals of a Successful advertising It should attract attention. It should emphasize a key benefit of the product or service to the customer. It should communicate the company’s Unique Selling Proposition (USP). It should prove the USP and benefits to the customer with facts, statistics, or testimonials. It should motivate customers to take action immediately. 29 April '10 Marketing instruments

Marketing instruments Always follow up Promotion is NOT only about YOUR message It is about the CUSTOMERS reaction Follow up Offer information (via website) Send product information (within 48 hours after contact) Call Be specific Answer THEIR questions, NOT repeat your message 29 April '10 Marketing instruments

Marketing instruments Summary Marketing mix = mix of 4 elements quality of interrelation determine succes Communication is more than creativity Promise + evidence Choice of instruments = horses for courses Every promotional activity MUST be followed up with next step 29 April '10 Marketing instruments