Marketing

Strategies

Extended marketing mix

People
Processes
Physical evidence
 Strategy

A strategy is a broad statement -the business

must develop detailed tactics that will be used
to enable
• the objectives to be met
• The target market to be reached
 Market segmentation and
differentiation
• Some businesses may have a primary target market (is the
market segment at which most of the marketing resources are
directed) and a secondary target market (is usually a smaller
and less important market segment).
• Marketing approaches:
• Mass marketing approach
• Concentrated or niche markets
• Differentiation of products and services
 Market segmentation and
differentiation
Mass marketing approach:
• Seeks a large range of customers.
• Marketing mix is aimed at a large
range of customers.
• All the customers in the market have
similar needs.
Concentrated markets
• Marketing mix is directed towards
one selected segment of the market.
• Allows for the analysis of the
consumer base , design strategies to
satisfy this select group’s needs and
develop particular products based on
customer feedback.
 Market
segmentation

Marketing segmentation involves dividing the

total market into segments.
 Market segmentation and
different
Segmentation allows a business
to :
• Gain a better understanding
of their consumers.
• Use its resources more
efficiently.
• Refine the marketing
strategies used to influence
customer choice.
 Demographic

• Dividing the total market according to

particular features of a population
• Age and gender the most common variables
 Geographic

• Dividing according to geographic location

• Dividing according to climate
 Psychographic
• Dividing according to personality
characteristics, motives, opinions, socio
economic groups and lifestyles. This focuses
on why people behave as they do.
 Behavioura
l
• Dividing according to the customer’s
relationship to the product. Includes attitude
to , knowledge of, use of, benefits sought.
The aim of market
segmentation is to
• increase sales
• market share
• profits
by better understanding the desires of the
different target customers.
• - see snapshot (P205)
Segmentation of consumer
markets - summary
 Differentiatio
n
• The process of developing and promoting
differences between the bs’s products or
services and those of it competitors.
Points of differentiation
 Points of differentiation

• Packaging
• Labelling
• Value for money
• Customer service – pre sale and after sales
• Environmental concerns – quality of life issues, green
products
• Convenience – ease of preparation
• Healthy
• Ethical issues – ethical consumerism(GM pdts)fair trade
movement
 Product/service positioning
• The technique in which marketers try to create an
image or identity for a product/service compared
with the image of competing products or services.
• Is the development of a product image in relation
to similar products.
• Price, quality, perceived benefits and competition
are key methods of positioning a product.
• Differentiation assists in positioning.
 Developing marketing
Price Place
strategiesMethods to get the product to the customer.
The value placed on what is exchanged.
•Cost price •Intermediaries
•Market price •Channels
•Competition-based price •Intensive coverage
•Price skimming •Selective coverage
•Price penetration •Exclusive Coverage
•Loss leader •Transport
•Price lining and price point •Warehousing
•Price and quality interaction •Inventory

Promotion Product
Activities used to communicate to a target Anything that satisfies a need or want and can
market persuasive, positive information about be offered in exchange.
a business and its products. •Quality
•Personal selling •Style
•Advertising •Positioning
•Below-the-line promotions •Branding
•Public relations and publicity •Packaging
•Opinion leaders •Warranty
•Word of mouth •Differentiation
 Developing marketing
strategies
• The 4 P’s (Marketing mix)
1. Product: anything that
satisfies a need or want and
can be offered in exchange.
2. Price: the value placed on
what is exchanged.
3. Place: method used to get
the product or service to the
customers.
4. Promotion: activities used to
communicate to a target
market.
 Products and
services
•Product and service
•A product is a good, service or idea that can be offered in
an exchange.
•A total product concept is the tangible and intangible
benefits.
•Intangible benefits help to differentiate products.
•Branding – symbols and logos
Products and
services
•A brand is a name, term, symbol, design or any
combination of these that indentifies a specific product and
distinguishes it from its competition.
•This can be broken into the brand name (the part of the
brand that is spoken) and the logo or brand symbol (graphic
representation that identifies a business or product)
•Types of brands:
• Manufacturer’s or national brands (owned by the manufacturer
eg Mambo)
• A private or house brand (Owned by a retailer or wholesaler eg Miss
Shop)
• Generic brands (Products with no brand name eg Home Brand)
• Trademark (Brand name or symbol that is registered and the business has
exclusive right of use)
 Products and
•Packaging services
•Involves the development of a container and the graphic
design for a product.
•Well designed packaging may assist in creating a positive
image of the product and assist sales.
•Packaging preserves the product whilst also promoting it
and informing consumers about the product.
•Environmental concerns are associated with packaging
 Price and pricing
methods
•Price
•Refers to the amount of money a customer is prepared to
offer in exchange for a product.
•Pricing methods
•Pricing methods must match the objectives. The main
pricing methods.
• Cost plus margin: An amount of profit is added to the
total cost of production.
• Market: Prices are determined by supply and demand.
• Competition based: Price is based on competitors.
 Price and pricing
methods
•Pricing strategies
•Price skimming: The highest price possible is charged for
innovative products.
•Price penetration: The lowest price possible is charged for
a product or service to achieve a large market share.
•Loss leader: The sale of a product below its cost price to
attract customers.
•Price lining or price points: a limited number of prices or
price points, are set for selected lines or groups of
merchandise.
 Price and pricing
•Price and quality interactions methods
• Shows the relationship between the quality of the
product and the price that is paid for it.
• This has an impact on the customers perception of the
product.
• Prestige pricing strategy: where a high price is charged to
give the product a sense of quality and status.
• Has more of an impact on high priced and infrequently
purchased items.
 Promotion
•Promotion
• Methods used by a business to inform, persuade and
remind a target market about is products.
• Promotional mix – The various methods used in the
promotional campaign.
• Personal selling
• Advertising
• Below-the-line promotions
• Publicity and public relations
 Promotion
•Personal selling
• The activities of a sales representative directed to a
customer in an attempt to make a sale.
• Advantages:
• Message can be tailored to each individual customer
• Complex products are easy to explain
• Familiarise the customer with the product
• Disadvantages:
• Can be time consuming
• Often expensive
 Promotion
•Advertising
• Paid non personal message communicated through a mass
medium.
• The purpose is to inform, persuade and remind customers
about the product.
• Advertising media: the many forms of communication
used to reach an audience.
• Television
• Radio
• Newspapers
• Magazines
• Online (Internet)
 Promotion
•Below the line promotions
• Promotional activities which are produced without using
an advertising agency.
• Examples include:
• Direct mail catalogues
• Telemarketing
• Point of sale material
 Promotion

•Publicity and public relations

• Publicity: Any free news
story about a business’s
product.
• Public relations: activities
aimed at creating a
maintaining favourable
relations between a business
and its customers.
 Promotion
•The communications process
• Communication with customers must be clear and efficient.
• Several channels can be used to reach their customers (any method
used for carrying a method e.g. print and media)
• Noise is any interference or distraction that affects any or all stages
in the communication process.
• Questionnaires are used by markets to find out the effectiveness of a
campaign.
 Promotion
•Opinion leaders
• Is a person who influences others.
• They are respected and often sought after for advice.

•Word of mouth
• People influence each other during conversations.
• People tend to trust word of mouth more than advertising.
 Place
Channels of distribution or marketing channels are the routes taken to
get the product from the factory to the customer.
• Four common channels of distribution are:
• Producer to consumer
• Producer to retailer to consumer
• Producer to wholesaler to retailer to consumer
• Producer to agent to wholesaler to retailer to consumer
•Channel choice
• Market coverage: the number of outlets a firm chooses for its
products.
• Intensive distribution: The market is saturated with a product.
• Selective distribution: Product is available at a moderate proportion
of all possible outlets.
• Exclusive distribution: Use of only one retail outlet for a product in a
large geographic area.
 Place
Physical distribution issues
Physical distribution: all the those activities
concerned with the efficient movement of the
products from the producer to the customer.
• Transport
• The most common methods of transport
are air, rail, road and sea. The type of
transport will depend on the type of
product and the degree of service the
businesses want to provide.
• Warehouse
• The set of activities involved in receiving,
storing and dispatching goods.
• Inventory
• Inventory control is a system that
maintains quantities and varieties of
products appropriate for the target
market.
 People, processes and physical evidence

These apply particularly to intangible

products(services) such as tourism,
entertainment and hospitality.
 People

• To perform a task it is essential that staff are

appropriately recruited, qualified and trained.
• People refers to the quality of interaction
between the customer and those within the
business who will deliver the service.
• Customers base judgements and
perceptions on how employees treat
them.
 Processes

• This refers to the flow of activities that a

business will follow in its delivery of service.
• This impacts on customer satisfaction –
inefficiency will results in damage to
reputation.
 Physical Evidence

• The environment in which the service will be

delivered. It also includes materials needed to
carry out the service such as signage,
brochures, calling cards, letterheads, business
logo and website.
• Essential to create an image of value and
excellence.
 E-marketing

• Electronic marketing is the practice of using

the internet to perform marketing activities.
• Aust business slow to adopt – product
information only.
• Faster, sometimes cheaper and more
convenient way to shop
• A method of attracting new customers
 E marketing technologies

• Web pages – websites – give detailed

information about directions, product
information, on line ordering facilities,
promotional material
• A powerful marketing tool
 Podcasts

• A podcast is directed to a number of users

who subscribe to that particular service and
receive updates.
• If the podcast is aimed at the same audience
as the target customers podcast advertising
can be very effective in reaching customers.
 SMS

• Text messages can be used to alert customers

of special deals on offer and notify arrival of
goods.