Business / Marketing Minor Marketing Fundamentals M21439 Session 3: Operational Objectives & The Marketing Mix

Key Concepts Difference between strategic and operational marketing Marketing objectives Marketing mix as a tactical toolkit Different theorists marketing mixes

Strategic Marketing Lambin (1997) identified that the role of strategic marketing is to ‘lead the firm towards attractive economic opportunities; that is, opportunities that are adapted to its resources and know-how and offer a potential for growth and profitability”

Marketing Objectives A marketing objective is a statement of what is to be expected from marketing activities. It specifies the results expected from marketing efforts. For example, To increase sales of the product in the UK by 10% per annum in real terms each year for the next 3 years.

Marketing Objectives May relate to any of the following: - Selling existing products into existing markets -Selling existing products into new markets -Selling new products into existing markets -Selling new products into new markets

Ansoff’s Matrix Source: Harding,S. & Long,T. (1998) MBA Management Models UK:Gower Current Products Current Markets New Products New Markets Market PenetrationProduct Development Market DevelopmentDiversification Products Markets

Question: Give examples of organisations pursuing the four strategies defined by Ansoff? For example, Birds Eye are currently relaunching its frozen food range across Europe to try and penetrate the market more successfully and thus increase sales.

Marketing Programmes for Implementation This is the detailed operational information which allows the marketing plan to be carried out in the short to medium term.

Operational Marketing Lambin (1997) identified operational marketing as “an action orientated process which is extended over a short to medium term planning horizon and targets existing markets and segments”.

The Marketing Mix The marketing mix is the tactical toolkit deployed by marketing managers in order to implement a company’s agreed marketing strategy. Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin, p.245

Unique Selling Proposition Baker (2000) states that “in devising this unique selling proposition or bundle of the benefits the marketer has 4 basic ingredients which he/she can combine in an almost infinite number of ways to achieve different end results.” Source: Baker,M.J. (2000) Marketing Strategy & Management, 3 rd ed, London:Macmillan Business

McCarthy’s Marketing Mix Source: Kotler,P. & Armstrong,G.(2001) Principles of Marketing 9 th ed,USA:Prentice Hall Target Customers Intended Positioning PRICE PLACE PROMOTION PRODUCT Variety, Quality, Design, Features, Brand name, Packaging, Services List price, Discounts, Allowances, Payment Period, Credit terms Channels, Coverage, Assortments, Locations, Inventory, Transportation, Logistics Advertising, Personal Selling, Sales promotion, Public relations

Dibb et al (2001) Marketing Mix – 5 Dimensions Source: Dibb,S, Simkin, Pride, Ferrell (2001) Marketing: Concepts & Strategies 4 th ed, USA:Houghton Mifflin, p.245

Boom & Bitner (1981) 7 Dimension Definition Source: Palmer,A. (2000) Principles of Marketing USA:Oxford University Press Focus on satisfying customers’ needs profitably PRODUCT PRICE PROMOTION PEOPLE PHYSICAL EVIDENCE PLACE PROCESSES

Question: Why do different theorists favour different marketing mixes?

Product “Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organisations and ideas.” Source: Kotler,P & Armstrong,G (2001) Principles of Marketing 9 th ed, Prentice Hall, p7

Branding Adcock (2000) suggests that “a brand is not a product that just happens to have high awareness, nor is it a recognisable name or logo, although both these are often present. It is so much more, it is a powerful stimulus that conjures up a complex image and level of expectation about itself and what it can do for a consumer.” Source: Palmer, A. (2000) Principles of Marketing UK:Oxford

Packaging An important part of the product that not only serves a functional purpose, but also acts as a means of communicating product information and brand character. Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2 nd ed, UK:FT/Prentice Hall

Question: Give examples of products that you purchase often & would like to purchase? What is it about them that makes you consumer/desire them?

Definition of Price The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the good or service. Source: Kotler.P & Armstrong.G (2001) Principles of Marketing 9 th ed, USA:Prentice Hall

Question: When is a price too expensive? Give example.

Channel Structure for Consumer Goods CONSUMER PRODUCER Retailer Wholesaler Agent Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2 nd ed, UK:FT/Prentice Hall

Channel Structure for Organisational Markets Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2 nd ed, UK:FT/Prentice Hall Distributor Agent MANUFACTURER USER

Question: Why do supermarkets in the UK have so much power over the channel? Has the introduction of Walmart in the UK changed things?

Elements of the Promotional Mix Source: Brassington,F. & Pettitt,S. (2000) Principles of Marketing 2 nd ed, UK:FT/Prentice Hall PROMOTIONAL MIX Sales Promotion Direct Marketing Public Relations Advertising Personal Selling

Question: Which promotional mediums have you been subjected to today?

Physical Evidence Physical evidence is important to guide buyers of intangible services through the choices available to them. This evidence can take a number of forms. Source: Palmer, A (2000) Principles of Marketing UK:Oxford

Question: Why do some organisations offer ‘flash cars’ or health club memberships as part of a renumeration package?

People “People decisions are particularly important to the marketing of services. In service sectors, people planning can assume great importance where staff have a high level of contact with customers.” Source: Palmer, A (2000) Principles of Marketing UK:Oxford

Question: Do people matter? If so why?

Question: In a marketing orientated organisation who is responsible for the customer?

Process Process decisions are again important to marketers in the service sector. For example, a customer of a restaurant is deeply affected by the manner in which staff serve them. Source: Palmer, A (2000) Principles of Marketing UK:Oxford

Aspects of Process “Friendliness of staff and the flows of information affect the customer’s perception of the service product offer. Appointment or queuing systems become part of the service. Ease or difficulty of payment can enhance or spoil the consumption of the service.” Source: Dibb.S, Simkin.L, Pride.W.M. & Ferrell.O.C. (2001) Marketing – Concepts & Strategies US:Houghton Mifflin

Question: Give examples of organisations who have made the process of purchase more flexible. How?