Marketing Mix of Traditional Products Services The marketing

  • Slides: 102
Download presentation
Marketing Mix of Traditional Products & Services • The marketing mix is the set

Marketing Mix of Traditional Products & Services • The marketing mix is the set of controllable, tactical marketing tools that the producer/craft maker blends to produce the response in the marketplace. •

Marketing Mix. 4 P’s into 7 P's 4 Ps serves for selection consumers with

Marketing Mix. 4 P’s into 7 P's 4 Ps serves for selection consumers with their reaction only for product presentation or observation. 7 Ps – Price, Product, Promotion, Place, People, Process, Physical Environment - extends to encompass growth of services, and helps to gain the reaction from its target market 9 Ps consists of everything controllable, tactical the craftmakers can influence the interest or demand for TG.

Marketing Mix. 4 P’s into 7 P's 1. Process of Planning to come with

Marketing Mix. 4 P’s into 7 P's 1. Process of Planning to come with TP to a target market 2. People or a target market 3. Product - TP (goods and services in combination) offered to target market. • Variety of product mix, features, designs, packaging, sizes, services, warrantees and return policies. 4. Price for TP consumers is important shift for communication or interactive behavior. § § Retail price/wholesale Discounts

Marketing Mix. 4 P’s into 7 P's 5. Promotion - activities trended to communicate

Marketing Mix. 4 P’s into 7 P's 5. Promotion - activities trended to communicate the merits of TP. • Personal Selling or Sales Force • Advertising • Sales Promotion – samples, coupons, premiums, cash refunds, demos, point-of-purchase materials, display allowances, trade shows, sales rep contests • Public relations • Direct marketing - direct mail, Internet, telemarketing, and direct-response, catalogs.

Marketing Mix. 4 P’s into 7 P's 6. Place/Distribution - activities that make the

Marketing Mix. 4 P’s into 7 P's 6. Place/Distribution - activities that make the TP available to the target market. Includes distribution channel, geographic coverage, locations, inventory, transportation or logistics. 7. Partners/Alliances - joint relationships involving cooperation and responsibilities for duties including products, distribution and promotion functions.

Marion Harper: “To manage a business well is to manage its future; and to

Marion Harper: “To manage a business well is to manage its future; and to manage the future is to manage information. ” Integrated Marketing Concept When craft maker works so hard to serve the customer’s interests Two levels of marketing integration: – The various marketing functions of marketing research, planning, sales force, advertising, TP/brand management, pricing and promotion are using together. – “Think about Customer” - as marketing is well-coordinated by craft maker.

Most popular myths – Marketing myopia about consumers • No guarantee against product obsolescence.

Most popular myths – Marketing myopia about consumers • No guarantee against product obsolescence. – Always appears better TP combination. • Customers buy “by their eyes and emotions” – – They buy when they see variety Customers have special experience not to buy a lot of TP from one place • Customers can’t evaluate quality. – They always evaluate quality for sized TP – Demanded TP with style • Customers need TP – – They need it when they are 1 st time in target place Higher inspiration from more advertised or famous places

Marketing’s Role • Marketing should try to mobilize resources to develop customer satisfaction. •

Marketing’s Role • Marketing should try to mobilize resources to develop customer satisfaction. • Requests to increase product design, material costs, disrupt production schedules, increase costs and create budget headaches.

DISTRIBUTION – 3 P Lecturer R. Rukuižienė Lithunian University of Agriculture Faculty of Economics

DISTRIBUTION – 3 P Lecturer R. Rukuižienė Lithunian University of Agriculture Faculty of Economics and Management DEPARTMENT OF BUSINESS MANAGEMENT 2011 -05 -06

DISTRIBUTION CONCEPTION Learning Objectives of Distribution Theory: • Understanding of decisions range concerning distribution

DISTRIBUTION CONCEPTION Learning Objectives of Distribution Theory: • Understanding of decisions range concerning distribution planning. • Alternative distribution channels’ structure and relevant criteria of their choice. • Distinctive characteristics of distribution management. • Contributions to distribution process and marketing strategy.

DISTRIBUTION CONCEPTION • Distribution is a process of identification and appliance of production distribution

DISTRIBUTION CONCEPTION • Distribution is a process of identification and appliance of production distribution shifts. • Distribution as supply system applied for customers to find the useful products at determined place and moment. • Distribution as communication system of producers, purchasers, customers in concrete area and time period.

DISTRIBUTION Distribution – element of marketing mix, which is oriented to the decisions and

DISTRIBUTION Distribution – element of marketing mix, which is oriented to the decisions and acts concerning production movement from producer to consumer.

DISTRIBUTION CONCEPTION Distribution - the element of marketing mix, - concerning decisions and activity,

DISTRIBUTION CONCEPTION Distribution - the element of marketing mix, - concerning decisions and activity, - focused upon production movement from producers to consumers. Consumers Flows (Products & Information & Money) Market of … products Producer organizations Distributors Trade organizations Wholesalers Retailers Managerial market shifts Marketing mix (4 P’s) Product Price Place (distribution) Promotion

DISTRIBUTION CONCEPTION Distribution process is focused on: § Order of processing and it’s management.

DISTRIBUTION CONCEPTION Distribution process is focused on: § Order of processing and it’s management. § Purchasing and selling of products (raw materials and other resources). § Production possession and storing. § Transportation and protection. § Production delivery and money transfers. § Reserve store formation and quality management.

DISTRIBUTION CONCEPTION Complexity factors of distribution system : – Dispersion of products into territorial

DISTRIBUTION CONCEPTION Complexity factors of distribution system : – Dispersion of products into territorial units. – Frequency of ordering. – Products submission methods and dates. – Complexity of “route” schema. – Products nomenclature and it’s formation complexity. – Policy of reserve management.

Characterization of Distribution Channels Criteria and motivation of feasibility as a basement to form

Characterization of Distribution Channels Criteria and motivation of feasibility as a basement to form distribution channel according producers or purchasers philosophy

Functions of Distribution Channel • • Intermediaries in channel are subordinated to general schema

Functions of Distribution Channel • • Intermediaries in channel are subordinated to general schema of organization, possession and control. Subordinated actions of intermediaries upon: Pricing items. Purchase items. Market penetration and/or retention items. Total responsibility and unified service system.

Formation of Distribution Channel • • • Distributor acceptance Distributor elimination Distributor change to

Formation of Distribution Channel • • • Distributor acceptance Distributor elimination Distributor change to more competitive Distributors are available to act in distribution channel as long as they have power to impact distribution service scope and price concerning supplier’s requirements to sale management

HORIZONTAL AND VERTICAL DISTRIBUTION (MARKETING) SYSTEMS

HORIZONTAL AND VERTICAL DISTRIBUTION (MARKETING) SYSTEMS

DISTRIBUTION System of distribution channels is organizations (intermediaries) which coordinate the products flows and

DISTRIBUTION System of distribution channels is organizations (intermediaries) which coordinate the products flows and make contracts. – Length of distribution channel – amount of members (intermediaries) in distribution chain. – With of distribution channel – amount of independent members in each distribution chain.

Vertical marketing systems (VMS - 1) The net of intermediaries - territorial trade unit

Vertical marketing systems (VMS - 1) The net of intermediaries - territorial trade unit where the strongest member of distribution channel keeps the control in his hands (as current stockholder or franchiser with the higher-stock financial capital) in managing separately all members as unified in corporation. Producer Wholesaler Trader Consumers 1 level 2 level Producer Wholesaler Trader Consumers Moderator of distribution channel - a producer or intermediary of any level

DISTRIBUTION CONCEPTION Vertical marketing systems (VMS - 2) VMS creates managerial net of intermediaries

DISTRIBUTION CONCEPTION Vertical marketing systems (VMS - 2) VMS creates managerial net of intermediaries (channel) with financial, technologic and communication matches to prevent conflicts inside the channel of differentiation the goals of corporative activity. VMS Producer Distributor Trader Consumers Synergy effect = (1) Economic effect = Product diffusion (2) Technologic effect (3) Financial effect (4) Communicational effect

Vertical marketing systems (VMS - 3) Types of VRS: • • • Corporative systems

Vertical marketing systems (VMS - 3) Types of VRS: • • • Corporative systems cover the net of intermediaries as warrant for production circulation from producers to customers. Administered systems cover companies, which keep the net of intermediaries (channel) with the provision of their support to accountancy, provision or technological adequacy. Contractual systems cover the independent producers with different specialization, distribution ability, and actively cooperating in creation contracts for higher turnovers. – Voluntary trading systems (vertical channels) cover the collaboration contracts between wholesalers and retailers, where wholesalers manage the activity of retailers. – Cooperated retailing systems (vertical channels) corporate the amount of retailers in producing addition functions of reproduction, storage, packaging, transporting, delivering. – Franchise organizations cover special created channels of distribution for special production delivery and distribution for special customers.

DISTRIBUTION CONCEPTION Horizontal marketing systems (HMS - 1) HMS is a corporative formation of

DISTRIBUTION CONCEPTION Horizontal marketing systems (HMS - 1) HMS is a corporative formation of independent intermediaries (horizontal channel), which join their resources for effective actions in the market under beneficial or risky circumstances. HMS help to develop such channel in building financial stability, innovative technologies, marketing strategy of each intermediary under market obstacles.

DISTRIBUTION CONCEPTION Horizontal marketing systems (HMS - 1) HMS coordinate themselves by special managerial

DISTRIBUTION CONCEPTION Horizontal marketing systems (HMS - 1) HMS coordinate themselves by special managerial departments for trading, information system possession, implementation of integrated marketing tools. General coordination of HMS (horizontal channel) members • Assessment of market obstacles. • Planning of production flows. • Management of production reserves. • Prognostication of turnover. • Implementation of differentiated pricing policy.

Multi-channel marketing systems (Mc. MS – 1) Mc. MS create the possibilities to producers

Multi-channel marketing systems (Mc. MS – 1) Mc. MS create the possibilities to producers to get into different market segments by the help of different distribution channels. Mc. MS - popular distribution formula under market profilation to eliminate conflicts in different distribution channels, and under implementation of general marketing strategy: • In covering new market segments. • In forming new demand. • In creating higher dispersion of production.

Management of Distribution Channel Choice Decisions Value chain for creation competitive advantage 4 support

Management of Distribution Channel Choice Decisions Value chain for creation competitive advantage 4 support activities • Firm’s infrastructure • Procurement Inbound logistics * Operations * Outbound logistics * Marketing and sales * Service M ar g in 5 primary activities gin ar M • Human resources management • Technology development

THANK YOU FOR ATTENTION

THANK YOU FOR ATTENTION

MARKETING MIX. PRODUCT PRICE AND PRICING Formation of product/service pricing under impact of market

MARKETING MIX. PRODUCT PRICE AND PRICING Formation of product/service pricing under impact of market globalization PRICING DECISIONS Lecturer Rasa Rukuižienė Lithunian University of Agriculture DEPARTMENT OF BUSINESS MANAGEMENT 2011 -05 -06

MARKETING MIX. PRODUCT PRICE AND PRICING Price – value in exchanging market of products/services.

MARKETING MIX. PRODUCT PRICE AND PRICING Price – value in exchanging market of products/services. Price – products’ value, which in market could be defined as pushing process for presenting products to consumers. (Ph. Kotler, H. Amstrong, J. Sonders, V. Wong).

MARKETING MIX. PRODUCT PRICE AND PRICING IMPACTS THE REQUIREMENTS OF ACTIVITY: § reduce the

MARKETING MIX. PRODUCT PRICE AND PRICING IMPACTS THE REQUIREMENTS OF ACTIVITY: § reduce the costs; § enhance the profit; § correspond with the value of consumers in communication; § reflect the TP distribution (other MM) problems; § correspond with other marketing mix elements, but is not the single competition providence mode.

MARKETING MIX. PRODUCT PRICE AND PRICING § Low price – as a competition providence

MARKETING MIX. PRODUCT PRICE AND PRICING § Low price – as a competition providence force possible in situation when enterprises have low costs or their sales are sensitive to lower prices. § Effective marketing goal – to create pleasing environment with low sensitiveness to price fluctuations.

MARKETING MIX. PRODUCT PRICE AND PRICING APPROACHES

MARKETING MIX. PRODUCT PRICE AND PRICING APPROACHES

MARKETING MIX. PRODUCT PRICE AND PRICING FACTORS IMPACTING PRICING DECISIONS • • • Goals

MARKETING MIX. PRODUCT PRICE AND PRICING FACTORS IMPACTING PRICING DECISIONS • • • Goals of craft makers Level of PLC Product position in the market Potential competitors Costs (internal and competitors’) Distribution channels and impact of retailers

MARKETING MIX. PRODUCT PRICE AND PRICING DETERMINATION OF PRICING GOALS (1 -3) 1. ORIENTED

MARKETING MIX. PRODUCT PRICE AND PRICING DETERMINATION OF PRICING GOALS (1 -3) 1. ORIENTED TO PROFIT • Efficiency of invested capital or sales • Maximization of profit under perfect demand elasticity, low prices and market enlargement • Maximization of profit under imperfect demand, high prices (“cream skimming” strategy) and concentrated market segments

MARKETING MIX. PRODUCT PRICE AND PRICING DETERMINATION OF PRICING GOALS 2. ORIENTED TO SALES

MARKETING MIX. PRODUCT PRICE AND PRICING DETERMINATION OF PRICING GOALS 2. ORIENTED TO SALES • Up-grade products value and sales • Sales of new products and advertising of new enterprises

MARKETING MIX. PRODUCT PRICE AND PRICING DETERMINATION OF PRICING GOALS 3. ORIENTED PROTECTION TO

MARKETING MIX. PRODUCT PRICE AND PRICING DETERMINATION OF PRICING GOALS 3. ORIENTED PROTECTION TO MARKET POSITION • Prices reflect the level of competition and competitive prices • Competition is concentrated to different elements of marketing mix, ex. , quality of products, consumers service and etc.

MARKETING MIX. PRODUCT PRICE AND PRICING UNDER PLC CONCEPT Strategies in different levels of

MARKETING MIX. PRODUCT PRICE AND PRICING UNDER PLC CONCEPT Strategies in different levels of PLC Period of PLC Pricing strategy Introduction • Low price oriented to experimentation in buying • High price oriented to skimming market share Growth Prices upturn under product’s image formation Maturity Decline Orientation to prices stabilization under protection market share Orientation to prices lowing under sales protection

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS 1. ORIENTATION TO COSTS Orientation to production

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS 1. ORIENTATION TO COSTS Orientation to production costs under calculation the direct fixed costs and percentage of fixed profit rate.

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS 2. AGREGATION METHOD Orientation to product price

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS 2. AGREGATION METHOD Orientation to product price under summing prices of separate product’s elements.

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS 3. PARAMETRIC METHOD Orientation to product price

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS 3. PARAMETRIC METHOD Orientation to product price under analysis of product’s quality parameters, evaluation and comparison of them.

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS 4. ORIENTATION TO COMPETITION Orientation to product

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS 4. ORIENTATION TO COMPETITION Orientation to product price under competitors actions, but not to production costs or market demand.

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS 5. ORIENTATION TO PROFIT SHARE Orientation to

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS 5. ORIENTATION TO PROFIT SHARE Orientation to product price under determined profit rate.

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS (1 -2) 5. ORIENTATION TO PROFITABILITY *

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS (1 -2) 5. ORIENTATION TO PROFITABILITY * Orientation to product price under determined profitability rate. * The comparison of income and costs lets to evaluate margin sale after deduction fixed and variable costs from income rate. * Break – Even – Point model shows the situation of activity profitability.

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS (1 -2) Break – Even – Point

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS (1 -2) Break – Even – Point model A - break-even-point, units of products; Ipast - total fixed costs, Lt; k - product price, Lt per unit; Ikint- fixed costs per product unit, Lt

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS (1 -2) 7. ORIENTATION TO DEMAND CURVE

MARKETING MIX. PRODUCT PRICE AND PRICING METHODS (1 -2) 7. ORIENTATION TO DEMAND CURVE TREND Orientation to product price under the highest income rate.

Pricing concept - PLC The nature of product life cycle - 4 stages •

Pricing concept - PLC The nature of product life cycle - 4 stages • launch • growth • maturity • decline Sales period Product not becoming obsolete Product becoming obsolete O (1) Launch (2) Growth (3) Maturity (4) Decline Time

PRICING STRATEGIES

PRICING STRATEGIES

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES “Cream skimming” price strategy is oriented to

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES “Cream skimming” price strategy is oriented to reach high profitability rate, and helpful: a) in short terms the changes of competition level are invisible under impact of business licenses, high expenditures to market entrance, new technologies and etc. ; b) unique features of TP make the barriers in pricing under creation imperfect demand elasticity; c) demand limitation depends on TP quantity for sales; d) efficiency of TP requires the quick investment return.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES “Scrolling” price strategy is the modification of

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES “Scrolling” price strategy is the modification of “cream skimming” price strategy, and effectively implementing after mentioned strategy. The amount of consumers is very important under the conditions when in long term period prices are going down, and market share is growing, then the conditions for competitors access to market is limited of limited profit rate.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Penetration pricing strategy is effectively implementing with

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Penetration pricing strategy is effectively implementing with low prices by launching TP to new market segments or trying increasing market share under creation successful position in market.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES § To pursuance of new TP producers

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES § To pursuance of new TP producers or new TP come to target market. § To get advantage against competitors who not necessary react applying with low prices. § To get additional share of market and receive investment as quicker as possible.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Elasticity pricing strategy is oriented to the

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Elasticity pricing strategy is oriented to the needs of consumers after long experimental measures in target market segments concerning the demand elasticity to price. According to the level of price (high or low), elasticity strategy effectively impacts: § Market reaction to lower prices in activating the purchase. § Market reaction to higher price in activating purchase in low level.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Passing the leader pricing strategy is oriented

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Passing the leader pricing strategy is oriented to price definition according the leaders prices in economical sector. After implementation this strategy the progressive investigation of market parameters has to applied and prognostication of changes in the market concerning the leaders actions. According to this strategy the adoptions acts in the market have to realized: § Small companies have to follow some large scaled companies actions. § The leaders have to react to the mostly high or low prices. § Products design and quality doesn’t differ according the companies

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Pricing strategy only for TP segments is

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Pricing strategy only for TP segments is oriented to the application of different products prices in different markets or for different customers. This strategy is important when customers are very different, and the purchase of TP with small different features in product’s design has to be high. Differentiated product strategy impacts the differentiated pricing strategy.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Pricing strategy of segments is useful when:

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Pricing strategy of segments is useful when: • Product is easily applicable in different market segments. • Product is easily changeable – has substitute to be as adequate in different market segments. • Different market segments are not competing interdependently.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES • • • “Costs plus” pricing strategy

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES • • • “Costs plus” pricing strategy is oriented to costs level contrary as oriented to market and can’t be flexible, and is available when: Product is under state regulation market. Total costs are not predictable. Product is testes as new product.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES • • • Flexible pricing strategy is

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES • • • Flexible pricing strategy is oriented to determined product price, which depends upon changeable preconditions of market. This strategy is available when: Exists important competitive challenge. Competitors use penetration pricing. Demand level is flexible.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES “Road gate” pricing strategy is oriented to

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES “Road gate” pricing strategy is oriented to deter the competitors from entrance to target market. This strategy help to defend in dominant market: • To keep strong position in the market and fight with competitors. • To satisfy market needs by creating loyalty.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Product life cycle (PLC) pricing strategy is

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Product life cycle (PLC) pricing strategy is oriented to price identification in each PLC period. Old product is well-known for customers, and amount of purchase can be produced by the help of high price. This strategy is available when: • Product is demanded, but long perspective demand is going down. • Substitutes create new demand. • Product line is constructed according production level.

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Loss leader’s pricing strategy is oriented to

MARKETING MIX. PRODUCT PRICE AND PRICING STRATEGIES Loss leader’s pricing strategy is oriented to attract customers for purchasing other products. This strategy is available when: • Intermediary wants to make “market noise”. • Complement product details price is higher, when low price is presenting for whole product. (St. L. Montgomery)

Yours exercise – Price of TP Yours products has to find their consumers •

Yours exercise – Price of TP Yours products has to find their consumers • Whom you expect in trading area? Who is a product’s consumer? • How you can manage price of a product? • What pricing strategy you can adopt?

Exercise for You: Create the pricing for yours TP. How much it costs for

Exercise for You: Create the pricing for yours TP. How much it costs for craft maker? • • What value TP can suggest for customers? Is TP correspond with customers needs? Are customers sensitive to TP price? What customers assess in TP? Does TP need special environment? What kind of? Can TP be substituted? Can TP be obsolescence?

Thank you for attention …

Thank you for attention …

PROMOTION MIX STRATEGIES OF PROMOTION 2011 -05 -06 Pasvalys

PROMOTION MIX STRATEGIES OF PROMOTION 2011 -05 -06 Pasvalys

PROMOTION - element of marketing mix, which is oriented to initiate purchase or initiatives

PROMOTION - element of marketing mix, which is oriented to initiate purchase or initiatives of consumers. Product Price Personnel selling Advertisement Distribution Promotion Inducement of purchase Public relations

Promotion – the system of information and persuasion acts oriented to consumers and their

Promotion – the system of information and persuasion acts oriented to consumers and their attraction. Main promotion methods: • advertising; • personnel sale. Additional promotion methods: • popularization; • inducement of purchase.

Promotion • Advertising – impersonal profitable presentation of products/services/ideas. • Sales Force – verbal

Promotion • Advertising – impersonal profitable presentation of products/services/ideas. • Sales Force – verbal presentation of product in communicating with customers in case to sell the product.

PROMOTION • Popularization – impersonal inducement of products/services/ideas demand concerning the information dispersion in

PROMOTION • Popularization – impersonal inducement of products/services/ideas demand concerning the information dispersion in media. • Inducement of purchase – short term sale and purchase measures, various non repeatable efforts to sell product/service hardly connected with standard promotion types (advertising, personnel sale and popularization).

GOALS OF PROMOTION PROMOTION Advertising Popularization Inducement of purchase Personnel sale Main goal: Problems:

GOALS OF PROMOTION PROMOTION Advertising Popularization Inducement of purchase Personnel sale Main goal: Problems: , INDUCEMENT OF DEMAND To sell product Inducement of product To form image of company Inducement of demand

Promotion - Marketing Communication Process Information of customers about product innovations, new products and

Promotion - Marketing Communication Process Information of customers about product innovations, new products and their additional value (utility). Interactive dialog among craft makers and their customers in various market swap version. What promotive information is necessary to present? Whom promotive information is expendable? When promotive information has to be presented?

Marketing Communication (Promotion) Mix • • • Information instructions for society Stimulation of supply

Marketing Communication (Promotion) Mix • • • Information instructions for society Stimulation of supply Popularization (Public Relations) Personal selling Advertising Direct marketing

Marketing Communication (Promotion) Process Factors influencing scoring of marketing communication process (1) Product features

Marketing Communication (Promotion) Process Factors influencing scoring of marketing communication process (1) Product features (price, form, color, package, novelty) Product positioning place (sale place and interior) Product positioning method (staff services and consulting) staff services and consulting Product Positioning Consumers Information Territorial Distribution System

Marketing Communication (Promotion) Process Factors influencing scoring of marketing communication process (2) • Product

Marketing Communication (Promotion) Process Factors influencing scoring of marketing communication process (2) • Product (features, positioning place and method) • Characteristics of Consumers • Dimensions of Communication Individuals Interest groups Social groups Society

Conception of Promotion Mix Promotion mix useful for application as demand formation or maintenance

Conception of Promotion Mix Promotion mix useful for application as demand formation or maintenance process of new product/modification (dimensions of promotion policy) Promotion policy currently is oriented to the interests of consumers and intermediaries. Sustainable leverage of promotion policy - the elements of promotion mix.

Objective and Problems of Promotion Mix Consumers learning and education Creation of competitive position

Objective and Problems of Promotion Mix Consumers learning and education Creation of competitive position Creation of information media system Conveyance Allusion Persuasion

Promotion Mix Structure § § Sales stimulation Personal selling Public relations (popularization) Advertising

Promotion Mix Structure § § Sales stimulation Personal selling Public relations (popularization) Advertising

Promotion Mix Structure Sales stimulation. . . aggregation of promotion methods applied for stimulation

Promotion Mix Structure Sales stimulation. . . aggregation of promotion methods applied for stimulation consumer needs to purchase concrete product under implementation of special stimulation means, ex. : testers to home, lotteries, prizes.

Promotion Mix Structure Sales Force. . . satisfaction of consumers interests concerning communication and

Promotion Mix Structure Sales Force. . . satisfaction of consumers interests concerning communication and personnel selling under suggestion to purchase product repeatedly and actively inform about new products and additional services.

Promotion Mix Structure Public Relations. . . interactive impersonal communication process with consumers expansive

Promotion Mix Structure Public Relations. . . interactive impersonal communication process with consumers expansive generality concerning correct information about incoming origin new products, their features, functionality, utility and value, - image creation philosophy and technology.

Promotion Mix Structure Advertising. . . impersonal communication method for coverage huge target consumers

Promotion Mix Structure Advertising. . . impersonal communication method for coverage huge target consumers groups.

Promotion Mix Structure Advertising conception • Conveyance • Propaganda • Opinion formation

Promotion Mix Structure Advertising conception • Conveyance • Propaganda • Opinion formation

Promotion Mix Structure Advertising Conception Advertising types concerning application objective • • • Informative

Promotion Mix Structure Advertising Conception Advertising types concerning application objective • • • Informative advertisement Convincing advertisement Allusive advertisement Supportive advertisement Comparative advertisement

Promotion Mix Structure Advertising campaign steering 5 M assessment principles Mission Money Message Media

Promotion Mix Structure Advertising campaign steering 5 M assessment principles Mission Money Message Media Measurement

SYSTEM OF MARKETING COMMUNICATION INDUCEMENT PURCHASE Public relations PROMOTION MIX OPINION CONSUMERS PERSONNEL SELLING

SYSTEM OF MARKETING COMMUNICATION INDUCEMENT PURCHASE Public relations PROMOTION MIX OPINION CONSUMERS PERSONNEL SELLING INTERMEDIARIES ORGANIZATION ADVERTISMENT CONTACT AUDITORIUM

Promotion Mix Structure Preconditions of advertising efficiency • Supply stimulation • Purchase stimulation •

Promotion Mix Structure Preconditions of advertising efficiency • Supply stimulation • Purchase stimulation • Stimulation of competitors activity or partners in supply chain

Promotion Mix Structure Advertising mix application Impulse means Communicative activity – Stimulation and invitation

Promotion Mix Structure Advertising mix application Impulse means Communicative activity – Stimulation and invitation to purchase Advertising Advertisement campaign Supply stimulation Coupons: competitions, premium, shows and events Public relations (popularization) Tremendous trust Casual “consumer aggression”” ” Impression reinforcement Personal selling PERSONAL CONTACTING COMMUNICATION CULTURE RECIPROCAL REACTION Direct marketing INDIVIDUALITY CUSTOMIZATION EXPEDITION IINTERACTION

Marketing communication (promotion) process Integrated marketing communication – planning conception of marketing communication (promotion)

Marketing communication (promotion) process Integrated marketing communication – planning conception of marketing communication (promotion) means (CM) concerning assessment of strategic CM and their optimal derivatives under implementation maximum continuity and impact of CM impact. INTEGRATED MARKETING (PROMOTION) COMMUNICATION ENVIRONMENT Mini markets Mega markets

Marketing communication (promotion) process INTEGRATED MARKETING COMMUNICATION (PROMOTION) STEERING • IDENTIFICATION OF TARGET CONSUMERS

Marketing communication (promotion) process INTEGRATED MARKETING COMMUNICATION (PROMOTION) STEERING • IDENTIFICATION OF TARGET CONSUMERS GROUPS Differences of consumers’ opinion appear under situations when product image or it’s competitive features after testing purchase/consumption creates negative attitude to further purchase or consumption. • FORMULATION OF COMMUNICATIVE OBJECTIVES Cognition Emotional reaction Behavioural reaction Creation of new ideas Atitudes change Action push

Conception of Promotion strategy – organization and marketing communication (promotion) process under implementation of

Conception of Promotion strategy – organization and marketing communication (promotion) process under implementation of specific marketing mix elements. • Promotion appliance under seeking of economical results is available under necessity to act in national and regional markets. • Promotion unification is available under European focus to life style.

Promotion strategies • PUSHING STRATEGY – Aggressive personal selling – Delegation of selling functions

Promotion strategies • PUSHING STRATEGY – Aggressive personal selling – Delegation of selling functions to distribution channel (wholesalers and retailers). • PULLING STRATEGY Promotion process directly oriented to consumers.

Promotion strategies Aspirations about optimal promotion strategy implementation cover implementation of promotion mix elements

Promotion strategies Aspirations about optimal promotion strategy implementation cover implementation of promotion mix elements applied to separate cultural and public market development preconditions and legal restraints concerning defined promotion strategy’s elements applied in different EU countries.

Promotion strategies Marketing communication (promotion) systems Characteristics of European Marketing Communication (Promotion) Promotion goal

Promotion strategies Marketing communication (promotion) systems Characteristics of European Marketing Communication (Promotion) Promotion goal – decisions concern appropriate marketing communication (promotion) means upon their options. TV, Radio, Press, Shows, Events, External Advertisement INTERNET

Promotion strategies Marketing communication (promotion) systems Important European aspect of promotion choice is definition

Promotion strategies Marketing communication (promotion) systems Important European aspect of promotion choice is definition of role and importance of international communication means in EU statemembers territory. Marketing communication (promotion) means characterization • Non European communication systems, ex Non European communication systems. , “Int. Harald Tribune”, “New York Times”, “CNN”; • Non European communication systems, oriented to European consumers, ex. , “Wall Street Journal Europe”, “Business Week Europe”, “Time Europe”, “MTV Europe”; • European communication systems, oriented to European consumers, ex. , “Eurosport”, “Arte”.

Promotion strategies Marketing communication (promotion) systems Goal of promotion – option of promotion mix

Promotion strategies Marketing communication (promotion) systems Goal of promotion – option of promotion mix elements and their appropriate combination according to standardization and differentiation problems. Promotion mix elements under implementation of Euro. Corporate-Identity strategy: • • • Advertising. Direct communication. Sales stimulation. Product positioning. Sponsoring of consumers.

Promotion strategies Marketing communication (promotion) systems Structure of impersonal communication channel • Media –

Promotion strategies Marketing communication (promotion) systems Structure of impersonal communication channel • Media – post means, mass information means, electronic means and external advertisement. • Atmosphere - “concentrated environment” for information consumers and stimulation purchases. • Events and shows – actions to inform consumers.

Promotion strategies Marketing communication (promotion) systems (396) Stimulation means of communication channel: • to

Promotion strategies Marketing communication (promotion) systems (396) Stimulation means of communication channel: • to identify impact entities (customers/consumers and comapnies) and to concentrate efforts upon them; • to inform leaders of ideas; • to make apply well-known and popular persons of target community; • to embrace inner persons; • to use attractive advertising as verbal metaphor for current implications; • to create verbal communication channels for consumers; • to organize e-forum.

Promotion decisions upon the demand formation and cultivation of new products Diffusion, or product

Promotion decisions upon the demand formation and cultivation of new products Diffusion, or product convertibility speed by other products, which shows consumers force to react and buy new product, and to warrant product distribution in various public groups. Product assimilation function important for consumers to understand the advantages of product and the benefit of product innovation concerning its inducement for purchase.

Promotion decisions upon the demand formation and cultivation of new products Differentiation of consumers

Promotion decisions upon the demand formation and cultivation of new products Differentiation of consumers and different types of information interpretation (hemophilia, heterophilia) can produce effect of cognitive dissonance. Diffusion of innovations – desirable phenomenon in the market, is. . .

Levels of integrated marketing (promotion) process Goals of Communication * Recognition * Emotion reaction

Levels of integrated marketing (promotion) process Goals of Communication * Recognition * Emotion reaction * * Behavioral reaction * * Creation of idea * * Change of attitudes * * Pushing to act *

Exercise for You: Create a promotional for TP. • • Why TP is needing

Exercise for You: Create a promotional for TP. • • Why TP is needing promotion? What promotion tool is more effective? Compare the promotional tools if TP is in different areas? Is it true, that different promotional tools is useful for TP? Prove yours version.

Thank you for attention ☺

Thank you for attention ☺