Marketing Preview 3. What product can I sell where at what price? 2. How are markets analysed? 1. What is marketing? 4. Have my marketing measures been effective?

Definition MARKETING includes all the activities needed to direct the flow of goods and services from producers to consumers.  at least two parties  each has something to offer  must be able to communicate  must be able to deliver  parties must be free to accept or reject offers

Roles of marketing but also: product development (brand and product managers) packaging (packaging designers) pricing (pricing specialists) distribution (sales personnel) main roles: advertising (advertising and promotion managers) selling (sales representatives/sales force)

Marketing Process three elements: 1. Market analysis (Who will buy?) 2. Marketing-mix planning (What? Where? How much? How?) 3. Marketing control (Have we been successful?)

1. Market analysis (STP) a) Segmentation segment niche individuals b) Targeting: Who are my customers? c) Positioning: What is my main selling point?

= developing a tactics to achieve strategic aims elements: a)ProductProduct b)PricePrice c)PlacePlace d)PromotionPromotion aim: to make customers from the target group buy 2. Marketing mix planning (4 P)

= looking back at the entire process to find out whether or not it was successful Why control? planning is no guarantee for profit markets change constantly strategies not always effective Tools: a)Annual-plan controlAnnual-plan control b)Profitability controlProfitability control c)Efficiency controlEfficiency control d)Strategic controlStrategic control 3. Evaluation and control

1. Market analysis (STP) Segmentation Targeting Positioning 2. Marketing-mix planning (4 P) Product Place Price Promotion 3. Marketing control Annual-plan control Profitability control Efficiency control Strategic control Review

a) Product  nowadays: - products have a life cycle - product range is constantly expanded - find out what target market desires Consequence is adjustment of: Product development  traditional economies: same things produced and consumed - public relations - finance - personnel administration - research & development - production

Packaging create clear message create credibility involve emotionally motivate invite user loyalty back Branding

b) Price Pricing strategies: 1. Market determines the price 2. Price as an expression of quality 3. Price as a method of gaining market share back

c) Place (distribution) Production siteWarehouse Wholesaler Retailer - factory outlet - mail order house - internet - TV shopping - door-to-door selling consumer back

c) Promotion Aims:  communicate with customers  influence customers 4 major tools: 1.Sales forceSales force 2.AdvertisingAdvertising 3.Sales promotionSales promotion 4.Public relationsPublic relations back

1. Sales force  they personalize the promotion process Representatives who advertise for and sell products effective at selling complex goods most expensive promotion back

2. Advertising Presents a reason to buy a product/service Media: back

3. Sales promotion  attracts brand switchers  is a short-term incentive (Anreiz) to buy a product/service Techniques: back 3. two for one 2. loyalty reward points 1 price reduction

4. Public relations Does not aim to increase sales directly but tries to boost the image of the company back - contests - community events - charitable events - ecological projects Techniques: - press conferences - foundations

a) Annual-plan control Tools: 1.Sales analysis (Did we sell as much as we planned?)Sales analysis 2.Market-share analysis (Have we lost or gained market share?)Market-share analysis 3.Marketing expense-to-sales analysis (Did the marketing efforts pay?)Marketing expense-to-sales analysis back

b) Profitability control back many cheap products and many customers Do we have more earnings than expenditures? Strategies: Aim: Which of my products is the most profitable? few expensive products and few customers

c) Efficiency control Example: Avon Lady (sales representative)  how many doors in what time?  how many products sold? back Are my marketing methods profitable?

d) Strategic control back Is my marketing program effective over a long period of time?  marketing philosophy  information policy - enough advertisement? - enough promotion? Positioning USA: “big and powerful” after few years: Is this positioning still OK?

1. Sales analysis Comparison  sales goals (100 units)  actual sales (20 units) _____________ discrepancies??? reasons  better product of the competitors  decline of the economic situation  wrong calculation back

2. Market share analysis analysis of the competition on the market back

3. Marketing expense-to-sales analysis How much did my marketing activities cost? What sales numbers have these activities generated? Example: expenses (costs): € sales revenues: € => We have a problem!!! back