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

2. 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

3. 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

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

5. 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

6. 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

7. 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

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

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

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

11. 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

12. 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.
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Marketing instruments

13. Marketing message = Promise & evidence
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Marketing instruments

14. CBI’s promise & evidence
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Marketing instruments

15. 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

16. 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

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

18. 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

19. 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

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

21. 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

22. 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

23. Promotion Instruments
Benefit
Barriers
Effective
Control
Cost €
Cost 
Advertising
Public Relations
Direct Mail
Internet
Trade fair
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Marketing instruments

24. 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
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Marketing instruments

25. 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
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Marketing instruments

26. 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

27. 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
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Marketing instruments

28. 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