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
4Ps serves for selection consumers with their reaction only
for product presentation or observation.
7Ps – 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 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 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 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 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.
– 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 1st 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.
• Requests to increase product design, material costs, disrupt
production schedules, increase costs and create budget
headaches.
DISTRIBUTION – 3P
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 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 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 acts concerning
production movement from producer to
consumer.
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
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 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 distribution channel
according producers or purchasers
philosophy
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 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
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 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
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 (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 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 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
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 (McMS – 1)
McMS create the possibilities to producers to get into
different market segments by the help of different
distribution channels.
McMS - 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
Channel Choice Decisions
Value chain for creation competitive advantage
4 support activities
• Firm’s infrastructure
• Human resources management
• Technology development
• Procurement
5 primary activities
Inbound logistics * Operations * Outbound logistics * Marketing and sales * Service
THANK YOU FOR ATTENTION
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.
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
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 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
PRICING APPROACHES
High price impacts deliberate demand
level
Upper
level Depends on demand:
- What price level is impressive for
price
market?
- How consumers can compare the
good value?
Diapazone
of If the comprehended value is higher,
the price is going up
pricing
Botton
level Depends on costs:
diversification or activity reorientation
price
is possible decision
High price
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 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
• 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
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
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
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
PRICING METHODS
2. AGREGATION METHOD
Orientation to product price under summing
prices of separate product’s elements.
MARKETING MIX. PRODUCT PRICE AND PRICING
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
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
PRICING METHODS
5. ORIENTATION TO PROFIT SHARE
Orientation to product price under determined
profit rate.
MARKETING MIX. PRODUCT PRICE AND PRICING
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
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
I
past
A
k I
k int
,
MARKETING MIX. PRODUCT PRICE AND PRICING
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
• launch
• growth
• maturity
• decline
Sales per period
Product not
becoming
obsolete
Product
becoming
obsolete
O
(1)
Launch
(2)
Growth
(3)
Maturity
(4)
Decline
Time
PRICING STRATEGIES
MARKETING MIX. PRODUCT PRICE AND PRICING
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
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
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
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
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
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
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
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
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
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
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
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
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
• 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 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 …
PROMOTION MIX
STRATEGIES OF PROMOTION
2011-05-06
Pasvalys
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
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 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 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
Personnel sale
Main goal:
Problems:
INDUCEMENT OF DEMAND
To sell product
Inducement
of product
,
Popularization
Inducement of purchase
To form image
of company
Inducement
of demand
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
Popularization (Public Relations)
Personal selling
Advertising
Direct marketing
Marketing Communication (Promotion)
Process
Factors influencing scoring of marketing
communication process (1)
Territorial Distribution System
(price, form, color, package, novelty)
Product positioning place
(sale place and interior)
Product positioning method
(staff services and consulting)
Product Positioning

Consumers
Information
Product features
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 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
Creation of information media system
Conveyance
Allusion
Persuasion
Promotion Mix Structure




Sales stimulation
Personal selling
Public relations (popularization)
Advertising
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 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 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 groups.
Promotion Mix Structure
Advertising conception
• Conveyance
• Propaganda
• Opinion formation
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  Measurement
SYSTEM OF MARKETING COMMUNICATION
PURCHASE
Public relations
MIX
OPINION
INDUCEMENT
PROMOTION
CONSUMERS
PERSONNEL
SELLING
INTERMEDIARIES
ORGANIZATION
ADVERTISMENT
CONTACT
AUDITORIUM
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 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)
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 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
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 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 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 – 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 of role
and importance of international communication means in EU statemembers territory.
Marketing communication (promotion) means characterization
• Non European communication systems, ex., “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 elements and
their appropriate combination according to standardization
and differentiation problems.
Promotion mix elements under implementation of EuroCorporate-Identity strategy:
•
•
•
•
•
Advertising.
Direct communication.
Sales stimulation.
Product positioning.
Sponsoring of consumers.
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 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 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 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 *
* Behavioral reaction *
* Creation of idea *
* Change of attitudes *
* Pushing to act *
Exercise for You: Create a promotional for TP.
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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
☺