1. What is marketing?
2. How are markets analysed?
3. What product can I sell where at what price?
4. Have my marketing measures been effective?

MARKETING includes all the activities needed to direct the flow of goods and services from producers to consumers.
 at least two parties
 each has something to offer
 must be able to communicate
 must be able to deliver
 parties must be free to accept or reject offers

main roles:
• advertising (advertising and promotion managers)
• selling (sales representatives/sales force) but also:
• product development
(brand and product managers)
• packaging
(packaging designers)
• pricing
(pricing specialists)
• distribution
(sales personnel)

three elements:
1. Market analysis
(Who will buy?)
2. Marketing-mix planning
(What? Where? How much? How?)
3. Marketing control
(Have we been successful?)

a) Segmentation niche segment individuals b) Targeting:
Who are my customers?
c) Positioning:
What is my main selling point?

= developing a tactics to achieve strategic aims
aim: to make customers from the target group buy
elements:
a) Product
b) Price
c) Place
d) Promotion

= looking back at the entire process to find out whether or not it was successful
Why control?
• planning is no guarantee for profit
• markets change constantly
• strategies not always effective
Tools:
a) Annual-plan control
b) Profitability control
c) Efficiency control
d) Strategic control

1. Market analysis (STP)
 Segmentation
 Targeting
 Positioning
2. Marketing-mix planning (4 P)




Product
Place
Price
Promotion
3. Marketing control
 Annual-plan control
 Profitability control
 Efficiency control
 Strategic control

a) Product
Product development
 traditional economies: same things produced and consumed
 nowadays:
- products have a life cycle
- product range is constantly expanded
- find out what target market desires
Consequence is adjustment of:
- production
- research & development
- personnel administration
- finance
- public relations

Packaging
Branding
• create clear message
• create credibility
• involve emotionally
• motivate
• invite user loyalty
back

Pricing strategies:
1. Market determines the price
2. Price as an expression of quality
3. Price as a method of gaining market share
back

(distribution)
Production site Warehouse
Wholesaler
- factory outlet
- mail order house
- internet
- TV shopping
- door-to-door selling consumer Retailer
back

Aims:
 communicate with customers
 influence customers
4 major tools:
1.
Sales force
2.
Advertising
3.
Sales promotion
4.
Public relations
back

1. Sales force
Representatives who advertise for and sell products
 they personalize the promotion process effective at selling complex goods most expensive promotion
back

2. Advertising
Presents a reason to buy a product/service
Media:
back

3. Sales promotion
 is a short-term incentive
(Anreiz)
to buy a product/service
Techniques:
1 price reduction
2. loyalty reward points
3. two for one
 attracts brand switchers
back

4. Public relations
Does not aim to increase sales directly but tries to boost the image of the company
Techniques:
- press conferences
- contests
- community events
- charitable events
- ecological projects
- foundations
back

Tools:
1.
Sales analysis
(Did we sell as much as we planned?)
2.
Market-share analysis
(Have we lost or gained market share?)
3.
Marketing expense-to-sales analysis
(Did the marketing efforts pay?)
back

Do we have more earnings than expenditures?
Strategies:
• few expensive products and few customers
• many cheap products and many customers
Aim:
Which of my products is the most profitable?
back

Are my marketing methods profitable?
Avon Lady (sales representative)
 how many doors in what time?
 how many products sold?
back

Is my marketing program effective over a long period of time?
 marketing philosophy
Positioning USA: “big and powerful” after few years: Is this positioning still OK?
 information policy
- enough advertisement?
- enough promotion?
back

Comparison  sales goals (100 units)
 actual sales (20 units)
_____________ discrepancies???
 better product of the competitors
 decline of the economic situation
 wrong calculation reasons
back

analysis of the competition on the market
Rates of selling beauty cases
17%
28%
13%
Gucci
Joop
Dolce & Gabbana
Kuniberg
42%
back

• How much did my marketing activities cost?
• What sales numbers have these activities generated?
Example: expenses (costs): € 200.000
sales revenues: € 200.001
=> We have a problem!!!
back