Promotion Mix

Here are some things to keep in mind:

Advertising.

Reaches large, geographically dispersed audiences, often with high frequency; Low cost per exposure, though overall costs are high; Consumers perceive advertised goods as more legitimate; Dramatizes company/brand; Builds brand image; may stimulate short-term sales; Impersonal, one-way communication; Expensive

Personal Selling

Most effective tool for building buyers’ preferences, convictions, and actions; Personal interaction allows for feedback and adjustments; Relationship-oriented; Buyers are more attentive; Sales force represents a long-term commitment; Most expensive of the promotional tools

Sales Promotion.

May be targeted at the trade or ultimate consumer; Makes use of a variety of formats: premiums, coupons, contests, etc.; Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales; Stimulates quick response; Short-lived; Not effective at building long-term brand preferences

Public Relation.

Highly credible; Very believable; Many forms: news stories, news features, events and sponsorships, etc.; Reaches many prospects missed via other forms of promotion; Dramatizes company or product; Often the most under used element in the promotional mix; Relatively inexpensive (certainly not ‘free’ as many people think–there are costs involved)

Direct Marketing.

Many forms: Telephone marketing, direct mail, online marketing, etc.; Four distinctive characteristics: Nonpublic, Immediate, Customized, Interactive; Well-suited to highly-targeted marketing efforts

Source : http://www.davedolak.com/promix.htm

Men were from Mars, Women from Venus…

The gender game is a subtle but powerful one. The fundamental difference between the sexes has been the subject of much debate, research and humour.

The opportunities to capitalise on a real understanding of the psyche of the consumer in all its richness are great – including gender differences. But it is dangerous territory. No one can afford to play the gender game and lose.

Today, I’d like to talk about segmentation.
We all engage in ‘segmentation’ – when we meet someone for the first time, we segment – male or female? Old or young? It helps us orientate ourselves and build expectations until we know more…

If you are told your new boss’s name is Joe. What’s your first question? Is there an ‘e’? Is it a male or female? Of course, once you get to know and work with your new boss, other issues will become much more important – is he/she focused on cost cutting or growth? Is he/she a ‘big picture’ kind of person – or is it all about the detail? Does he/she value your unique contribution or see you as a threat, or part of the old guard? These deeper issues very quickly become much more important than gender.

Of course, how you deal with the issues, and your new boss, will continue to be ‘nuanced’ by gender – yours and his or hers.

However, the real gender debate is more dynamic and more fundamental. It is rooted in society’s needs, wants and expectations. At Roy Morgan Research we’ve been studying these things for years. In the 1940s, Roy Morgan asked questions about equal pay for men and women, whether women should be allowed to wear shorts in the street, and the age at which girls should be allowed to wear lipstick. The questions tell us as much about society at that time as the answers do. Some things change …. So let’s look briefly at some trends.

The last 20 years or so have seen dramatic changes in gender roles – more women in the workforce, in senior decision-making positions, more two-income families, shared household, family and child-rearing responsibilities, more sole parent families both male and female.

The weekly shop is on the decline and more people are shopping every day, and men are enjoying grocery shopping (at least the increasing number of grocery-buying men). So are women. It is not that men are becoming ‘home’ conscious or nesting (their magazine habits tell us that), it is that they are more interested in food.

source :http://www.roymorgan.com/resources/papers/marsvenus/

Marketing Matrix?

A Marketing Matrix is essentially a plot on a two-dimensional plane according to how well they meet customers’ key requirements.

You can do this by drawing two lines in the form of a cross. These two lines represent a continuum of bad to good performance for two benefits or attributes that are the most important in an industry.
For example, take computers. If the two most important things to customers are “performance” and “price” then, put the word “performance” at the top of, say, the vertical line and put the word “price” to the right of the horizontal line.

High performing computers would be plotted at the top of the vertical line, and low performing computers at the bottom of the vertical line.

Now, for each computer in the market you would plot where that computer fits on the performance line (compared to other computers) and on the price line.

One comment: A marketing matrix is essentially a perceptual map. You can read more about snake plots as a better way of doing this since a marketing matrix forces you to do this in 2 dimensions, and often more than two dimensions properly characterize a market.

Source : http://www.marketingprofs.com/

Fokus On Profitable Customers

Advantage of watching what specific customers pay, not just what they say, is that this enables the tracking of lifetime purchases, a critical ingredient in determining the lifetime value of specific customers and customer segments. To be
profitable, investments made to increase satisfaction and value must focus on the customers with the highest potential value. Satisfaction research applied broadly across the entire customer base,while statistically correct, ensures that scores will
be influenced by the responses from unprofitable customers. For example, a bank branch manager might hear many complaints about long teller lines but the most profitable customers may not care.

Source : loyaltyrules.com

Segmentation, Targeting, Positioning (STP)

Before start think about marketing (4P), you must understand what is STP. Terms of STP include : market strategy; target markets; positioning; market segmentation and target markets; market segmentation and demographics
Segmentation
Segmentation : Identifying al segments for the product/service. Many of the resources listed in module 3 will be helpful to you when you develop segments. To be useful, segments should be:

Measurable
Accessible (can you reach them)
Profitable
Distinct from one another

The objective of segmentation is to find attractive markets. Strategies include

Break market into components
Regroup into market segments
Select which segment to target

Positioning.
Positioning is an essential component — and skill – in good marketing. Perceptual maps are used to determine the position of a product, firm, person, service or idea. Positioning maps, or perceptual maps can be simple, yet very effective marketing tools. One definition of Positioning Theory is: the science of perceptual strategy. It is based on a theory that strategy can only be planned in the mind of the consumer, not the marketplace*.

It is important to understand the levels of competition because positioning applies at all levels of competition. For example:

Product Level (e.g., Pepsi vs. Coke)
Category Level (e.g., Cola vs. Root beer)
Corporate Level (e.g., Pepsi Inc. vs. Coca Cola Company)
Industry Level (e.g., Beverage Industry vs. Snack food Industry)

Targeting.
What is target?. This is the real goal/objective in market that marketer want to reach.

As a simple questions are :
What percent of the population uses the product at all?
What percent uses your brand?
How does that compare to competing brands?
What is the demographic profile of the product category?
Which media reach the users of this category?

What is Marketing?

A little bit of marketing theory…
All it takes is a little theory practiced and applied, and soon you will find that marketing comes naturally.

Marketing is more than sales. Marketing is the set of activities used to
1. get your potential customer’s attention
2. motivate them to buy
3. get them to actually buy
4. get them to buy again (and again…)

Marketing is how you define your product, promote your product, distribute your product, and to maintain a relationship with your customers.

Marketing theory is made up of the 5 P’s . Product, Positioning, Place, Price, Promotion. Each “P” contributes to your marketing mix.

Emotional Branding

Emotional Branding is a virtual movement. It began in 2001, when a profoundly different brand design strategy was developed from the creation of Marc Gobé’s bestselling book. The Emotional Branding strategy marked a simple but revolutionary shift in thinking: placing the consumer, not the product, at the forefront of a brand’s strategy. Marketing in the 20th century had deviated from this basic principle, adopting a guerrilla-warfare, “us (the marketers) against them (the consumers)” mentality.

Emotional Branding has opened the pathway to an entirely new kind of thinking, which explores how brands can connect with people in a more sensitive and humanistic way and touch people profoundly at the level of the senses and emotions.

One of the most amazing discoveries of Emotional Branding has been that by empowering consumers, brands are ultimately empowered themselves. Emotional Branding allows a brand to own a unique and compelling strategic, visual, tactical and verbal vocabulary—creating a rich personality that enables the brand to stand out completely from the competition and win people’s hearts.

The Emotional Branding strategy has been successfully implemented by Desgrippes Gobé with some of the world’s most-loved brands, both on a domestic and global level. Companies like Coca-Cola, AOL, Godiva, Victoria’s Secret and Estée Lauder have recognized the concept’s power and used it to revitalize their brands, with enormous success.