COMM6026 Lecture 2 - marketing principles
•
1 like•1,089 views
The document summarizes marketing principles and the marketing mix (4Ps and expanded versions) from a lecture on marketing public relations. It discusses expanding the 4Ps to include additional factors like People and Processes in services marketing or Purpose and Packaging in other frameworks. It also contrasts sales vs marketing orientations and provides examples of how companies like Starbucks use customer research and the 4Ps framework to develop their marketing strategy.
Report
Share
COMM6026 Lecture 2 - marketing principles
- 1. DA010 - Professional Diploma in Public Relations - COMM6026EP Marketing Public Relations: Principles and Practice (2012/01) Lecture 2 Marketing Principles Developed and Presented by Roy Ying, Msc., B.Comm. Note: Pictures used in this power point file is for academic Purpose only 1
- 2. Is Marketing just the 4Ps? 2
- 3. Class Discussion • Product – What is the most important factor in deciding what product to sell? • Place – What is the most important factor in deciding where to sell your product? • Price – What is the most important factor in deciding how much you can charge for your product? • Promotion – What is the most important factor in deciding what you need to do in promoting your product? 3
- 4. There is the 5 Ps 4
- 5. This is essentially the 5P Model PEOPLE 5
- 6. There’s the 7Ps in service marketing • 4 Ps plus… • People are crucial in service delivery. The best food may not seem equally palatable if the waitress is in a sour mood. A smile always helps. • Processes are important to deliver a quality service. Services being intangible, processes become all the more crucial to ensure standards are met with. • Physical evidence affects the customer’s satisfaction. Often, services being intangible, customers depend on other cues to judge the offering. This is where physical evidence plays a part. 6
- 7. 7
- 8. What’s 9 P? • Purpose – Know the “why and what.” • People – Engaging with customers and their engagement with you is priceless. You can learn so much. • Processes – It should include a strategic marketing plan which feeds into the business plan for the company, and a marketing budget. • Philosophy – You also often share your philosophies with the world. • Packaging – More and more important as the global market place is now your competitor. 8
- 9. Which marketing mix to choose? • It depends on how much control do you have on your business scope 9
- 10. Class Discussion • Identify one type of company, and name one example, in each of the company orientations – Production – Sales – Innovation – Marketing 10
- 11. A simple marketing system 11
- 12. Sales vs Marketing Orientation Sales: • Heavy reliance on promotion activity to sell products/services the company wanted to make; • Aggressive selling tactics; • Promotion consumes a large share of the company’s overall budget; • Inside-out thinking (If we build it they will come); and • Short-term planning. 12
- 13. Sales vs Marketing Orientation Marketing: • Consumers/Customers less willing to be persuaded; • Consumers/customers are knowledgeable about the market and the products/services available; • Companies identify what customers want and tailor all business towards those wants/needs (in an efficient manner); • Marketing vs. just selling (i.e. management of the 4 Ps, not just promotions); • Product input before selling (Alpha testing, beta testing, trials, etc); and • Medium to long-term planning 13
- 14. Chief Marketing Officers Care About Customers Most… 14
- 15. Customer Focus Marketing Mix • Customer is the main focus point of the marketing mix. • Consumer-oriented activity: Marketing mix’s purpose is to give satisfaction and pleasure to consumers. • Four Ps of sellers correspond to four Cs of customers: Four Ps in the marketing mix represent the sellers' view of the marketing tools available for influencing buyers. 15
- 16. Interview with Coca Cola’s CMO – customer engagement 16
- 17. Consumers remind us every day that Coke is THEIR brand… On Facebook Billion we’ve got: Facebook “2 alone photo -uploads photos - nearly 70 4,600+ a month -million a day…” USA TODAY 8/09 95+ videos - 500,000+ “likes”* - 90,000+ “comments”* (*just in the last 6 months) 17
- 18. General comments about the brand and other Coke products are top topics… Positive Conversation Tones “Coca-Cola is the best drink!!!! I love it...” “ALWAYS COCA-COLA!! funny add from “Biggest General Fan” Comments Coca-Cola with Grant Theft Auto!” Other Coke Advertising Products Ideas/ Suggestions Consumptio “DIET COKE IS WHERE IT'S AT n Habits/ YA'LL!!!! :)” Addicted Low Post High Post Availability Volume Volume “i am the # 1 fan. just ask anyone who knows me.” “I adore cola! I can drink it every day :D” “Anyone know if 'Kosher Coke' is available in Colorado??” “. . . Bring back the glass bottle it makes a difference” Negative Conversation Tones 18
- 19. Our “Fans First” Approach: We will be Everywhere Our Consumers are in an Authentic “Member of the Community – Non BIG Brand Way” Majority of our efforts Enabling Fans to Comment, Upload Strategically targeted messaging in and Consume THEIR own consumer support of our brand objectives generated brand related content Our approach is designed to foster equitable engagement to earn sustainable relationships that are authentic, delightful and reciprocal. Being a Fan, Friend or Follower does not mean that they opted in to have advertising blasted at them. 19 19
- 20. Coca-Cola “official” Social Communities… 20 20
- 21. How to connect customers? 21
- 22. Listen to your customers • Customer surveys 22
- 23. How Starbucks do research? • What consumers think about Starbucks • How consumers feel about Starbucks by asking 4 ‘P’s of marketing • E.g. We ask about affordability of Starbucks to find out consumers perception on pricing of Starbucks products 23
- 24. 4 ‘P’s: Price • Pricing approaches Value-Based Pricing (good service, quality); NOT Cost-Based Pricing (mark-up too high) Competition-based pricing e.g. The Coffee Connoisseur • Comparing with competitors Similar price ranges More benefits to impress consumers • Product mix pricing strategies Product-Line Pricing (Coffees, Teas, Ice-blended drinks) Different prices due to different cost prices • Price adjustment strategy Psychological Pricing (higher-priced products = higher quality) • Consumer responses on Starbucks’ Pricing Affordability of Starbucks Paying for Quality or Quantity Whether Starbucks is value-for-money 24
- 25. 4 ‘P’s: Promotion • Marketing communications (promotion) mix • Advertising Reminder e.g. location of new outlet Informative e.g. new flavors of beverage Persuasive e.g. guaranteed satisfaction for consumers • Sales promotion Advertisement specialties, contests, premiums and coupons • Public Relations Community relationship e.g. Salvation Army donation Invited celebrities • Direct Marketing Facebook • Marketing Communication Objectives • Consumer responses on Starbucks’ Promotion Whether more promotion is needed Type of promotion Type of advertising tool 25
- 26. 4 ‘P’s: Place • Number of Channel levels Uses direct marketing channel: Starbucks outlets Also uses indirect marketing channel: Bottled frappuccino • Channel Intensity Selective distribution: Kraft, Pepsi • Number of outlets, locations, etc. • Consumer responses on Starbucks’ Place Convenience of Starbucks Whether ambience of location of Starbucks affects patronage Starbucks to be intensive or selective distribution 26
- 27. 4 ‘P’s: Product • Levels of Product Core benefit, Actual product, Augmented product • Classification of Consumer Product Shopping products (SQPS) Limited extensive advertising; available in limited number of stores • Brand Positioning Product attribute: Organic coffee Product Benefit: Caffeine • Brand Sponsorship Licensed brand • Brand Development Line extension: Short, Tall, Grande and Venti Brand extension: Merchandises e.g. tumblers, bottles and mugs • Consumer Responses on Starbucks’ Product Starbucks is the preferred brand Quality of Starbucks products: 8/10 27 Packaging of Starbucks products: 6/10
- 28. Conclusions & Recommendations • Starbucks coffee is a premium coffeehouse that focuses on quality in the way that it position itself. • More advertising • Update packaging • Stronger branding needed Create distinctive product benefit Or expand brand extension line / Go into multi-branding 28
- 29. Collecting Feedback • Pre-launch events 29
- 30. Social Media Campaign • 1,000 free breakfasts 30
- 31. Group Project • Due date: Lecture 10 • Group Presentation • All group members earn the same score. • A hard copy as well as a soft copy of PPT • Oral presentation should be 15 – 20 min long. • Team 1 will ask team 2 a couple of questions, who will in turn ask team 3….the last team will ask team 1 questions. 31
- 32. Group Project - Topic • Pick one brand from • Each team must pick a different company. 32 Full report available at: http://www.millwardbrown.com/BrandZ/default.aspx
- 33. Group Project – Content requirements Part I • Conduct a review of the company’s marketing public relations activities – News articles about the brand – Exhibitions that they or their vendors participate in – Popularity of the spokespersons of the company – Special events organized by the company 33
- 34. Group Project – Content requirements Part II • Give recommendations on how you think the company can do a better job in 2012 so that the brand will be worth more, and that consumers are willing to pay a premium to buy their products. 34
- 35. Group Project – Grading criteria 1. Research effort on selected company 2. Demonstration of understanding of MPR concepts 3. Feasibility of recommendation 4. Presentation skills (i.e., content planning, slides preparation, use of visual aids, and delivery techniques) 35
- 36. Dos and Don’ts in presentation • Don't think about "delivering a speech". • Don't try to recite from memory. • Don't read word-for-word from a stack of papers. • Instead, think about "talking to people”. • Use visuals to help you explain, not as substitutes for explanation. • Be aware of the time! • Take questions in the middle, not at the end? 36
- 37. As a presenter, you want to ask: •• What do What do •• What’s your What’s your you want you want point? point? them to them to remember? remember? •• If IIam one If am one of the of the •• What What attendees, action do II attendees, action do will II want will want want them want them to stay? •• Why did Why did to stay? to take? to take? they bother they bother to come to come listen to me? listen to me? 37
- 38. What has Steve Jobs done right? 38
- 39. Why were you able to pay attention? 39
- 40. What was his main objective? 40
- 41. This is what NOT to do! 41