Marketing

Buzzwords of confusion
• Sales versus Marketing
• Market Research &
Marketing Research
• Event Marketing
• SWOT, PEST, KPI’s,
USP’s, DINKY’s etc
 As Event Managers,
why is it important we understand
what Marketing is?
Important Part of the Marketing Tactics

Interactive
Below Media
the line Radio

Events
Internet Television

Print
Outdoor
Media
Example of Events in Marketing
• The Pepsi
Challenge has been
an ongoing
marketing promotion
run by PepsiCo for
the last 2 decades

• 1980’s Pepsi
Challenge – built
around a premise
that had to be
established ‘live’
Example of Events in Marketing
• The challenge takes the form of a taste test. At public
locations, a Pepsi representative sets up a table with two
blank cups, one containing Pepsi and one with Coke.
• Shoppers are encouraged to taste both colas, and
correctly identify which is Pepsi and which is Coke. If
they can correctly identify the two, they win a prize.
 Events within Marketing
Marketing
(A Philosophy)

The Marketing Mix (Tactics)

Product Price Place Promotion People Physical Process
Evidence

Events
 Agenda
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
What is Marketing ?
 Marketing History
• The agrarian economy was largely self sufficient
and trade was mostly through barter
• The industrial revolution in early 19th century
suddenly created ‘surplus’ – putting pressure on
manufacturers to find markets that could absorb
the produce
• The need for labeling the produce, brands,
trademarks and patents gradually began to
come in
• Mid 19th Century – traveling salesman to
organized distribution
 Marketing History
• The Sales Era lasted till the 2nd world war
• Post war boom started the consumerist
wave – money in the hands of people, and
larger number of enterprises making
similar products
• Product proliferation made business very
competitive
• It was this that paved the way for
Marketing
 Orientation Stages
• Production Oriented
Firms tend to manufacture and offer
goods that they are good at producing

• Sales Oriented
The Hard Sell, firms now realise that
due to competition the goods have to
be sold. Sales volume becomes the
most important criterion

• Marketing Oriented
The firm ascertains the genuine needs
and wants of specifically defined target
markets and then produce goods and
services that satisfy the customer
requirements
Marketing – Some Descriptions
• “Marketing is a human activity directed at
satisfying human needs and wants
through exchange process”

• “The customer is always right”

• “The right product, in the right place, at the

right time, at the right price”
 Marketing – Definitions

• “Marketing is the management process which

identifies, anticipates and supplies customer
requirements efficiently and profitably”
Chartered Institute of Marketing

• “Marketing is the process of planning and

executing the conception, pricing, promotion,
and distribution of ideas, goods and services to
create exchanges that satisfy individual and
organizational objectives”
American Marketing Association
 Sales versus Marketing

• Sales process begins • Marketing begins with the

with the producer consumer
• Based on what the • Based on consumer needs
producer can make and wants
• Seller defines the price
• Market demand decides
• Focus on finding buyers
and selling them anyhow • Focus on matching consumer
• The sale is the end of the needs with product attributes
transaction • The sale is the beginning of
• Product attributes static, the transaction – relationship
as long as it sells • Products must adapt to
changing customer trends
 Sales versus Marketing
• Marketing is involved with the planning of
the presentation of the firm’s capabilities;
whereas
• Sales is the execution of the transfer or
“exchange” of the product, good or
service.
 Sales versus Marketing
• Marketing is a strategic function and has a
number of tactical activities, of which selling is
one.

• The primary function of sales is to find and

close leads, turning prospective customers in
actual ones

• Sales definition
Income (at invoice values) received for goods
and services over some given period of time
 Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
The Marketing Mix
 The Marketing Mix
• The 4 P’s
The variables that the marketing manager can control in
order to best satisfy customers in the target market

1. Product 3. Place
The physical product Channels of distribution
or service offered to to ‘get’ the product to the
the consumer. Target consumer.
Market Producer-Wholesaler-
Retailer-Customer

2. Price 4. Promotion
Financial aspects of the The communication and
process; price levels, selling to potential
profit margins etc. customers
 The ‘Extended’ Marketing Mix

5. People
• Employees are in direct
contact with customers
and therefore must be
considered the in the
developing the
marketing mix
 The ‘Extended’ Marketing Mix

6. Physical Evidence
• Service has an
intangible
characteristic, therefore
importance is placed on
more tangible elements
of the service mix such
as facilities and
equipment.
 The ‘Extended’ Marketing Mix

7. Process
• How the service is
provided is important.
Procedures for dealing
with customers at the
point of contact, and the
supply of a consistent
quality service must be
pre-planned and
managed
 Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
The Environment
 Components of Communication

Channel

Encoder Message Decoder

Organisational Buying Process
Need recognition

Determine specification (general)

Determine specification (specific)

Search

Evaluation

Selection

Post-purchase evaluation
Comsumer Buying Process
 Market Analysis
• PEST – A framework to scan the external macro-
environment in which a firm operates

Political

Product Place

Techno- Company Economic

logical
Price Promotion

Socio-Cultural
 Target Markets
• One of the reasons why marketing arose was
because of the diversity of markets and complex
human needs and wants
• As competition increased and more producers
started producing similar goods, the need to
carve out exclusive niches arose
• This could be done by changes to the product –
DIFFERENTIATION, or to the market definitions
- SEGMENTATION
 Segmentation & Targeting
• If segmentation is about breaking up a mass
market into more specific subsets, targeting is all
about the decisions to appeal to them
• Treating them all as one large group with a
common interest is called UNDIFFERENTIATED
marketing
• Selecting one small niche and catering to that
segment is called CONCENTRATED marketing
• Identifying several unique subsets and talking to
them individually is called DIFERENTIATED
marketing
 Why Segment?
• Better matching of customer needs
• Enhanced profits, margins for the business
• Better opportunities for growth
• Retain loyalty of customers
• Targeted marketing communications
• Gain share in the segment
 Some Examples of Profiles
• Ultra Conservative - don't rock the boat, whatever they purchase
must be consistent with their current way of doing things.
• Conservatives - are willing to change, but only in small increments
and only in a very cost effective manner.
• Liberals - regularly looking for new solutions, willing to make
change (even major change) if the benefit can be shown.
• Technical Liberals - enamored with the benefits provided by high
tech solutions and any purchase decision will be biased by the
technical content of the offering.
• Self Helpers - consistently defines/designs solutions to their
problems, likes to acquire tools that help in the innovation process.
 The Road to the Market
To get a product or service to the right
person or company, a marketer would
firstly
1. segment the market,
2. then target a single segment or series of
segments,
3. and finally position within the segment(s)
 1. Market Segment
Segmentation is essentially the identification of subsets of
buyers within a market who share similar needs and who
demonstrate similar buyer behavior.

• by geography – region, climate, population density and

growth
• by demographics - such as age, gender, occupation,
income, education and family status
• by psychographics - such as values, lifestyle or beliefs
• by behaviour – such as class, brand loyalty, price
sensitivity
 2. Targeting the Market
• After the market has been separated into
its segments, the marketer will select a
segment or series of segments and 'target'
it/them

• It's like looking at a dart board or a

shooting target. You see that it has areas
with different scores - these are your
segments. Aiming the dart or the bullet at
a specific scoring area is 'targeting'
 2. Targeting the Market (cont)
• Eg. The Car Industry
 2. Targeting the Market (cont)
• Eg. Rolls Royce
 2. Targeting the Market (cont)
• Eg. Washing Powder
 3. Position in Market
• After segmenting a market and then targeting a
consumer, you would proceed to position a
product within that market

• Positioning is all about 'perception‘

• Products or services are 'mapped' together on a

'positioning map'. This allows them to be
compared and contrasted in relation to each
other
 3. Position in Market (cont)
EG. Automotive
Positioning Map
 Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
The Marketing Plan
 Marketing Plan
• Marketing plans are vital to marketing
success. They help to focus the mind of
companies and marketing teams on the
process of marketing i.e. what is going to
be achieved and how we intend to do it.
 The Marketing Plan (cont)

The key stages of the plan are contained

under the acronym AOSTC
1. Analysis
2. Objectives
3. Strategies
4. Tactics
5. Control.
 The Marketing Plan (cont)
1. Analysis

• The environment (PEST)

• Internal Audit
• Competitors
• SWOT
 SWOT ANALYSIS
• A tool for identifying and analysing the (internal)
strengths and weaknesses of a corporation and the
(external) opportunities and threats.
STRENGTHS WEAKNESSES
Strong brand / reputation Poor quality of goods or service
Industry expertise Damaged reputation
Natural resources Lack of marketing expertise
Patents Location of business
New product / service Competitors have superior resources
Location Weak HR and personnel
Quality process or procedure

OPPORTUNITIES THREATS
Developing market New competitor in home market
Mergers or strategic alliances Price war
Moving into new attractive market segments Innovative product/service from competitor
New international markets New regulations
Loosening of regulations Increased trade barriers
Removal of international trade barriers Taxation on product / service
Market is led by weak competitor
 The Marketing Plan (cont)
2. Objectives (SMART)
• Specific
Be precise about what you are going to achieve
• Measurable
Quantify you objectives
• Achievable
Are you attempting too much?
• Realistic
Do you have the resource to make the objective happen (men,
money, machines, materials, minutes)?
• Timed
State when you will achieve the objective (within a month? By
February 2010?)
 The Marketing Plan (cont)
3. Strategies
•Describe your target market.
•Which segment?
•How will we target the segment?
•How should we position within the segment?
•Define the segment in terms of demographics and lifestyle
•Show how you intend to 'position' your product or service
within that segment. Use other tools to assist in strategic
marketing decisions such as Boston Matrix, Ansoff’s Matrix
 The Marketing Plan (cont)
4. Tactics
Convert the strategy into the marketing mix (4 p’s)marketing
mix. These are your marketing tactics.

PRICE. Will you cost plus, skim, match the competition or

penetrate the market?
PLACE. Will you market direct, use agents or distributors?
PRODUCT Sold individually, as part of a bundle, in bulk?
PROMOTION Which media will you use? e.g sponsorship,
radio advertising, sales force, point-of-sale, etc? Think of
the mix elements as the ingredients of a 'cake mix’
 The Marketing Plan (cont)
5. Control
Remember that there is no planning without
control. Control is vital.
• Start-up costs
• Monthly budgets
• Sales figure
• Market share data
• Monitor and Evaluate plan
 Marketing Budgets
• Gear your marketing efforts to the most cost effective
use
• Budgets include everything from equipment investments
to “soft” company support of community events
• Keys areas could be: (mix)
– Advertising; public relations
– Product packaging
– Sales force / commercial incentives
• Marketing budget should anticipate results; internally
“sell” the expenditures for each piece; support most
important objectives
• Some marketing organizations have P/L responsibility
• “You can’t make a buck, without spending a buck”
 Campaign Framework
Marketing Marketing Campaign Campaign
Communication Communication Implementation Evaluation &
Objectives & Tactics Control
Strategy

•Specific •Budgets •National Launch or

•Measurable smaller scale
•Creative campaign
•Short Term •Media selection
•Targets •Below the line
promotions
•Sales force
•Public relations
•Distribution
channels &
management
 Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
The Promotion Focus
 Events within Marketing
Marketing
(A Philosophy)

The Marketing Mix (Tactics)

Product Price Place Promotion People Physical Process
Evidence

Events
 Push & Pull Marketing Strategies
PUSH PULL
Marketing efforts Marketing efforts
targeted at the targeted at consumers
middlemen and the CHANNELS
salesforce OF
DISTRIBUTION
•Price reductions,
•Coupons
•Cash discounts
•Free samples/demos in
•Dealer competitions
stores
•Salesforce cash incentives
•Competitions
•Direct Mail shots
•Buy one get one free,
•Credit facilities
•Packaging,
•Trade Exhibitions & Events,
•Point of Sale displays,
Demonstrations
•Consumer Advertising
•Training schemes
• Sponsorship
 The Promotion Cake
• The basic ingredients are always the same. However if you vary the amounts of
one of the ingredients, the final outcome is different. You can 'integrate' different
aspects of the promotions mix to deliver a unique campaign cake.

Advertising Sponsorship
Personal Events
Selling
Direct
Mail

Sales
Promotion Advertising Sponsorship
PR
Personal
Selling Events

Sales
Promotion

PR Direct
Mail
 Advertising
‘Advertise’ – ‘make known…To inform’
An advertisement to be successful;
• Must be seen
• Must be read
• Must be believed
• Must be remembered
• Must be acted upon
 Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus In progress
• Events (Face to Face Communication)
 Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus In progress
• Events (Face to Face Communication)
Marketing Plan Example
 Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
 Events
(Face to Face Communication)
 An Overview of Events
• Award Ceremonies
• Carnivals
• Concerts
• Road Shows
• Conferences
• Seminars
• Corporate Events
• Sporting Events
• Exhibitions
• Trade Fairs
• Festivals
• Fashion Shows
Events • Product Launches
• Promotions
Award Ceremonies
Carnivals
Concerts
Conferences
Car Launch
Exhibitions
Festivals
Fashion Show
Opening Ceremony
Product Launch
Sporting Event
Tourist Events
Weddings
 Presentation Status
• Marketing – What is it?
• The Marketing Mix
• The Environment
• The Marketing Plan
• The Promotion Focus
• Events (Face to Face Communication)
 Brand Brand
Brand
Positioning Building
Visibility
Building Product
Displays

Personal Brand
Selling Awareness

Tangible
Sales
Events Merchandising

Research & Promotions

Planning

Brand PR
Communication Product Driver
Entertainment
Sampling
 Event Communication
• Advantages

• Clean and customer direct

• Direct benefit to the user (even enjoyment)
• It is suggested that the advertising arena
(while growing in terms of size) is slowing
down and being replaced by the ‘Face-to-face’
style medium of communication.
 Marketing Dictionary
• Above the Line Advertising for which a payment is made and for
which commission is paid to the advertising agency. See also
'below the line' and 'push versus pull promotion‘

• Advertising Promotion of a product, service, or message by an

identified sponsor using paid-for media.

• Brand The set of physical attributes of a product or service,

together with the beliefs and expectations surrounding it - a
unique combination which the name or logo of the product or
service should evoke in the mind of the audience.

• Brown Goods Electrical goods such as TVs, videos, stereo

systems etc, used for home entertainment. So called because
they were originally cased in bakelite, a brown plastic.
 Marketing Dictionary
• Buzz marketing uses 'word-of-mouth' advertising: potential
customers pass round information about a product. See also 'viral
marketing‘

• Channels The methods used by a company to communicate and

interact with its customers

• Copyright The law that protects an author's original material,

usually (in the UK) for 70 years after the author's death. Similar
law covers logos and brand names

• Copywriting Creative process by which written content is

prepared for advertisements or marketing material
 Marketing Dictionary
• Customer Relationship Management (CRM) The coherent
management of contacts and interactions with customers. (This
term is often used as if it related purely to the use of IT, but IT
should in fact be regarded as a facilitator of CRM.)

• Decision Making Unit (DMU) The team of people in an

organisation who make the final buying decision

• Differentiation Ensuring that products and services have a

unique element to allow them to stand out from the rest

• DINKY Double Income No Kids Yet - a demographic grouping

 Marketing Dictionary
• Direct Marketing All activities which make it possible to offer
goods or services or to transmit other messages to a segment of
the population by post, telephone, e-mail or other direct means

• Electronic Point of Sale (EPOS) System A system whereby

electronic tills are used to process customer transactions in a
retail outlet

• Endorsement Affirmation, usually from a celebrity, that a product

is good

• FMCG Fast Moving Consumer Goods - such as packaged food,

beverages, toiletries, and tobacco
 Marketing Dictionary
• Focus Groups A tool for market research where small groups of
customers are invited to participate in guided discussions on the
topic being researched

• Grey Marketing (also called Parallel Importing) The illicit sale

of imported products contrary to the interests of a holder of a
trademark, patent or copyright in the country of sale

• Guerrilla Marketing The strategy of targeting small and

specialised customer groups in such a way that bigger companies
will not find it worthwhile to retaliate

• Logo A graphic, usually consisting of a symbol and/or group of

letters, that identifies a company or brand
 Marketing Dictionary
• Macro Environment The external factors which affect a
company’s planning and performance, and are beyond its control:
for example, socio-economic, legal and technological change.
Compare 'micro environment‘

• Market Penetration The attempt to grow one's business by

obtaining a larger market share in an existing market - see
'market share' and 'market development‘

• Micro Environment The immediate context of a company's

operations, including such elements as suppliers, customers and
competitors - compare 'macro environment‘

• Personal Selling One-to-one communication between seller and

prospective purchaser
 Marketing Dictionary
• PIMS Profit Impact of Marketing Strategies: a US database
supplying data such as environment, strategy, competition and
internal data with respect to 3000 business. This data can be
used for benchmarking purposes

• Point of Sale (POS) (also called Point of Purchase) The

location, usually within a retail outlet, where the customer decides
whether to make a purchase. See also 'EPOS - Electronic Point
of Sale'

• Portfolio (and Portfolio Analysis) The set of products or

services which a company decides to develop and market

• Product Life Cycle A model describing the progress of a product

from the inception of the idea, via the main period of sales, to its
eventual decline
 Marketing Dictionary
• Promotional Mix The components of an individual promotional
campaign, which are likely to include advertising, personal selling,
public relations, direct marketing, packaging, and sales promotion

• Relationship Marketing The strategy of establishing a

relationship with the customer which continues well beyond the
first purchase.

• Return on Investment (ROI)/Return on Capital Employed

(ROCE) The value that an organisation derives from investing in
a project

• Skimming Setting the original price high in the early stages of the
product life cycle in an attempt to get as much profit as possible
before prices are driven down by increasing competition
 Marketing Dictionary
• Supply Chain The network of suppliers, manufacturers and
distributors involved in the production and delivery of a product

• Unique Selling Preposition (USP) The benefit that a product or

service can deliver to customers that is not offered by any
competitor: one of the fundamentals of effective marketing and
business

• Value Preposition The set of qualities of a good or service that

allows it to fulfill the customer's needs and desires, as opposed to
simply benefiting the seller

• White Goods Large electrical devices for domestic use, such as

fridges, freezers and dishwashers. Used to be cased in white
enamel, hence the name