Marketing-mix
concept Communication as a process Communication tools Advertising, sales promotion, publicity Planning the communication process
15 October 2011, Belgrade By Lidia Varbanova
MARKETING MIX
PRODUCT-WHAT? Programming strategy: - Quantity - Quality PRICE-HOW MUCH DOES IT COST Pricing strategy: -Arts businesses -Non-profit and state organizations PLACE-WHERE? Distribution strategy
INTRODUCTION-slow starting sales, financial losses, absence of competitors, higher selling price, building awareness GROWTH-rapid jump of sales, increase in competition, cultivating new market segments, consider new distribution channels MATURITY-reaching potential customers, stabilization of sales; prolongation of maturity: modification strategies DECLINE-factors, substitution products Designing a new product-R&D
PRICE STRATEGY
PRICE= - The sum a consumer pays to purchase a product + - The efforts a consumer spent to obtain the product
PRICE STRATEGY
Methods: Cost-based Competition-based Consumer-based Advanced Subsidized Price elasticity: relationship between the set price and the quantity of goods bought by consumers.
PLACE/DISTRIBUTION STRATEGY
Distribution channels or networks-those who play a role in the flow of goods from producer to consumer-intermediaries Physical distribution-logistics and transportation involved in bringing a product to market Store location-choice of a physical site where the product can be bought or consumed Commercial location-physical site where the product is bought or consumed
ENCODING MESSAGE
DECODING
Channels of distribution
RECEIVER
External customers
Increasing
Influence
and
sales Enhancing the image Repositioning the brand Influencing habits Creating needs Participation and involvement
7. 8. 9.
Issue definition Briefing brainstorming Marketing objectives Target audience Communication objectives Creative and design process-the unique selling proposition Media selection Media mix Review and feedback
COMMUNICATION TOOLS
Type Tool Examples
TV Radio Press Cinema Print materials Outdoor Internet
Subscription schemes Incentive packages Bonuses Testing samples Press conferences Press releases
Nonpersonalised
Advertising
Sales promotion PR
COMMUNICATION TOOLS
Type Personalised Tool Direct sales Direct mail Examples
Person to person Through telephone
PR
Definition: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Characteristics: Public presentation Pervasiveness-repetition of a message many times Amplified expressiveness-dramatization, use of sound, image, color Impersonality-no obligation to respond
ADVERTISING-AIDA steps
ATTENTION-grab attention using a headline and images INTEREST-explain the headline and develop it DESIRE-follow up the initial interest and persuade the recipient to decide wanting your offer ACTION-enable the recipient to obtain what you are offering. Make responding as easy as possible
Simple words and sentences Short sentences and paragraphs Active verbs Personalized messages Avoid jargon and abbreviations Keep to one major idea per sentence Use design and layout which is easy to read
SALES PROMOTION
Definitions: - Short-term incentives such as coupons and premiums to encourage purchase or sale of a product or service - Variety of tactical promotional tools, mostly short-term, designed to stimulate earlier, or stronger target market response Characteristics: Incentive-leading to trying the product Gaining attention Invitation-now