Here is the presentation that I had prepared for Marketing Management classes.
Covers 5 major topics
1) Advertising
2) Ethics in marketing
3) Marketing Strategy and formulation
4) Marketing Plan
5) Creating value proposition
Unraveling the Mystery of The Circleville Letters.pptx
Marketing assignment-Philip Kotler
1. ADVERTISING
SRUTHI KM | 19PGM50
MARKETING MANAGEMENT ASSIGNMENT
POST GRADUATE DIPLOMA IN MANAGEMENT
2. ADVERTISING
Advertising is defined as a form of marketing communication
used by companies to promote or sell products and services.
Advertising is one of the components or subsets of
marketing. In other words, if you think of marketing as a pie,
then advertising will be an important slice of that pie.
2
COGNITIVE AFFECTIVE CONATIVE
3. 5 M’s of ADVERTISING
Marketing managers must always start by identifying the target market
and the buyer’s motives. Then they can make the five major decisions in
developing an advertising program, known as the Five M’s…
Mission
Money
Message
Media
Measurement
3
5. MISSION
Sales Goals
Advertising
Objectives
MONEY
Stage in PLC
Market share and
consumer base
Competition and
clutter
Advertising
frequency
Product
sustainability
MESSAGE
Generation,
evaluation and
selection
Execution
Social
Responsibility
review
MEDIA
Reach, frequency ,
impact
Major media types
Geographical media
allocation
MEASUREMENT
Communication and
sales impact
5 M’s AND THEIR DECISIONS
5
6. MISSION – SETTING THE ADVERTISING
OBJECTIVES
Advertising objective is a specific communication task and
achievement level to be accomplished with a specific
audience in a specific period of time.
Classification of objectives
Informative advertising
Persuasive advertising
Reminder Advertising
Reinforcement advertising
6
7. Informative Advertising
Aims to create brand awareness and knowledge of new
products/features of existing products.
They may also include
Suggesting new uses of the product
Informing how the product works
Corrective false impressions
Reducing buyers fears
Building a company image.
Vicco VajraDanti- Launches a new packaged toothpaste
featuring Alia Bhatt.
7
8. Persuasive Advertising
Aims to create liking , preference, conviction and purchase of the
product or service.
Aims to create BRAND
Comparative advertising works best in this case, when it tries with
cognitive and effective way of convincing customers.
https://www.youtube.com/watch?v=-urr59Y65aY -Dove comparison with
litmus paper.
8
9. Reminder Advertising
Aims to stimulate repeat purchase of the product and services.
Highly effective in the maturity stage of the product. The aim to
keep thinking about the product all time.
Expensive advertisements make us reminded about the product.
9
11. Money- Deciding on Advertising Budget
The company should analyse and
spend the right amount of money
for advertising.
Thorough analysis should be
done , as advertising is an
investment into building a Brand
Equity and Customer Loyalty.
Budgeting can be done based on
11
Departments
Product groups
External advertisement
Calendar, Magazine.
Social Media
Media
Specific Geographic Areas
Focused market
12. 5 Factors affecting Budget Decisions
12
• New products , high budgets build awareness and gain
consumer trail
• Established brands, lower budgets.
Stage in Product lifecycle
• Financial concept , High market share Less advertising
budget
• Building share by increasing market share requires high
budget
Market share and consumer
base
• High advertisements needed for products that have high
competition in market
• Advertisements not directly affecting the market causes
Clutter, need for heavier advertising
Competition and clutter
• Number of repition to create a brand’s message to consumers
• This has an obvious impact on advertising and budget.
Advertising Frequency
• Less- differentiated /commodity like product classes needs
high budget to create brand image
• Beer, Soft Drinks, Airlines, Banks.
Product Sustainability
13. Message - Developing the advertising
design
Using both Art and Science to develop a message
known by message strategy and how it expresses
the brand, claims the creative strategy.
3 steps involved
Message generation and evaluation
Creative Development
Social-Responsibility review.
13
14. Message generation and evaluation
Inductive: This can be done by talking to consumers, dealers, experts and
competitors. Consumers are the major source of good ideas. Their feeling
about the product, its strengths, and weaknesses gives enough information
that could aid the Message generation process…
Deductive: John C. Meloney proposed a framework for generating
Advertising Messages. According to him, a buyer expects four types of
rewards from a product:
Rational
Sensory
Social
Ego Satisfaction.
14
15. Buyers might visualize these rewards from,
▪ Results-of-use Experience
▪ Product-in-use Experience
▪ Incidental-to-use Experience
The Matrix formed by the intersection of these
four types of rewards and the three types of
experiences follows…
15
17. Creative Development and Execution
Ad’s impact depends not only on what it says, but also on how it says.
They can be done through 10 forms of retail marketing.
Display ads
Social media ads
newspapers and magazines
outdoor advertising
radio and podcasts
direct mail and personal sales
video ads
product placement
event marketing
email marketing
17
18. Social Responsibility Review
Marketing and the advertising agencies must make sure that
they do not overstep the social and legal norms or offend the
general public or ethnic, racial or special interest groups.
Advertisements play a more positive broader social role.
18
19. Media –Choosing the right media
Reach , Frequency and Impact
Finding the cost effective media to deliver the
desired number and type of exposures to the
target audience.
Reach-Number of different persons
Frequency- Number of times
Impact-The qualitative value of an
exposure.
19
20. Choosing among major advertising options
Next step every alternative media is evaluated.
20
21. Selecting media timing and allocation
Decisions are taken between the micro scheduling
and the macro scheduling.
Factors to consider are
Continuity
Concentration
Flighting
Pulsing
21
23. Measurement- Evaluating advertising
effectiveness
Communication –Effect
It’s potential impact on awareness, knowledge or preference.
Sales-Effect
How much sales is generated with the expenditure made.
Controllable factors such as price and feature play an important
role.
Sales impact is the easiest and the preferred measure in direct
marketing, but hardest in the image /brand building.
23
24. MARKETING PLAN
SRUTHI KM | 19PGM50POST GRADUATE DIPLOMA IN MANAGEMENT
MARKETING MANAGEMENT ASSIGNMENT
25. “ 70% of the small
businesses are owned
and operated by a
single person,
provided there is a
proper planning
-United States Small Business Advocates
25
26. MARKETING AND CUSTOMER VALUE
Biggest task is to deliver customer value at a
profit.
Which can be done by fine tuning the value
delivery process, choosing, providing and
communicating superior value to customers.
26
27. THE VALUE DELIVERY PROCESS
Successful companies place marketing at the
beginning of the planning.
This comes in 3 phases
Choosing the value
Providing the value
Communicating the value
27
28. THE VALUE CHAIN
A tool for identifying ways to create more
customer value.
9 strategically relevant activities -5 primary
and 4 support activities.
These creates value and cost benefits in
specific business.
28
29. Strategically relevant activities
Primary activities
Inbound logistics
Operational activities
Outbound Logistics
Marketing
Service
Support Activities
Procurement
Technology
development
HRM
Firm Infrastructure
29
30. Co-ordination of the companies core activities
Marketing
sensing
process
New-offering
realization
process
Customer
Acquisition
Process
Customer
Relationship
management
Process
Fulfilment
Management
Process
30
31. CORE COMPETENCIES
Characteristics of competencies
Source of competitive advantage
Applications in wide range of market
It should be difficult for competitors to
duplicate/imitate
31
32. Realignment to maximize core competencies
Redefining the “Big
Idea”
Reshaping the
business scope
Repositioning the
company’s brand
identity
32
34. MARKETING PLAN
It is the central instrument for directing and
coordinating the marketing effort.
Operates at 2 levels
Strategic marketing planning
Tactical marketing planning
34
35. CORPORATE AND DIVISION STRATEGIC
PLANNING
4 planning activities
Defining corporate mission
Establishing strategic business units
Assigning resource to each strategic
business units
Assessing growth opportunities
35
36. DEFINING THE CORPORATE MISSION
What is our business? Who are our customers?
What is the value to the customer? What will
business be? What will our business be?
“Mission should answer all above questions “
36
37. Crafting a mission statement (Good statement )
Focusing limited number of goals
Stress the company’s major policies and values
Define major competitive spheres in which the
company operates.
Long term view
Short, memorable and meaningful as possible
37
38. ESTABLISHING STRATEGIC BUSINESS UNITS
Characteristics of a strategic Business unit
(BSU)
It is a single business , so plans should be made accordingly.
It has its own set of competitors
It has manager responsible for every SBU.
38
42. ORGANIZATION AND ORGANIZATIONAL
CULTURE
Strategic planning happens within the context
of the organization.
Phrases like “Making it right” , The Enterprise
way” and “Fix any Problem” are ways it tell us
the organization culture.
42
43. MARKETING INOVATION
A marketing innovation is the implementation
of a new marketing method involving
significant changes in product design or
packaging, product placement, product
promotion or pricing
43
44. MARKETING INNOVATION
TECHNIQUES
Word of Mouth Marketing
Social Media Marketing
Retain Your Existing
Customers
Explore New Geographies
Brand Repositioning
Show Your Expertise
EXAMPLES
Instagram
Netflix
Hotstar
Youtube
44
45. NATURE AND CONTENTS OF MARKETING PLAN
A marketing plan is a written document that
summarizes what the marketer has learned
about the market place and indicates how the
firm plans to reach its marketing objectives.
45
46. Sections in a marketing plan
Executive summary and table of contents
Situation Analysis
Marketing strategy
Marketing Tactics
Financial Projections
Risk Analysis
Implementation controls 46
47. ROLE OF RESEARCH
Up to date information on
market environment
Identify key issues, threats
and opportunities and feed
back to the original strategy
Satisfying the customers
with providing service of
their expectations
47
48. ROLE OF RELATIONSHIPS
Influencing the market by
training the staffs to
establish good bond
between the customer
and themselves. This way
we can deliver value and
satisfy customers.
48
49. From Marketing plan to Marketing Action
▪ Example of how the plan is converted to action chart
49
52. THE BUSINESS MISSION
Every business needs to define its specific
mission within the broader company mission.
“A business mission describes the
organization's basic function in society, in
terms of the products and services it
produces for its customers””
52
53. SWOT ANALYSIS
Evaluation of a company’s strength,
weakness, opportunities and threats is called
SWOT.
External (Opportunities and threats) and
Internal environment (Strength and
Weakness) plays a major role.
53
54. External Environment
Monitoring micro and macro environment
factors plays an important role in earning
profits.
Marketing opportunity is an area of a buyer
need and interest that the company has a high
probability of profit.
54
55. 3 Main sources of marketing opportunities
Problem
Detection
• Asking customers for suggestion.
• How has the product been?
Ideal Method
• Imagining an ideal version of the product.
• How the product was and has been designed?
Consumption
Chain method
• Ask customers to chart their steps in
acquiring , using and displaying the product.
• This can lead to a totally new product. 55
56. Marketers should be good at spotting
Opportunities.
Opportunities for Apple
Inc.
These say that they are one
step ahead in their
competing market.
Plotted against common
attributes of attractiveness
and success probability.
56
57. It is equally important to identify threats ….
Threats is a challenge
posed by changing
markets that , if in case
we fail to take a
defensive marketing
action will lead to lower
sales or profit.
57
58. Internal Environment
Strength and Weakness analysis
Strengths: characteristics of the business or
project that give it an advantage over others.
Weaknesses: characteristics of the business that
place the business or project at a disadvantage
relative to others.
58
60. GOAL FORMULATION
Means developing specific goals for the
planning period.
Business
units sets
these
objectives
Managers by
objectives
(MBO)
Final Goal
60
61. Units objectives must meet criteria
Arranging hierarchically from the most to
least important.
Objectives should be quantitative whenever
possible
Goals should be realistic
Objectives should be consistent
61
62. STRATEGIC FORMULATION
Designing strategies for
achieving the goal
considering Market
Strategy , Compatible
technology Strategy and
Sourcing Strategy
PORTER GENERIC
STRATEGIES
Overall cost leadership
Differentiation
Focus
62
63. Strategic Alliances
Product or service alliances -Licensing another
company to produce its product.
Promotional Alliances -Agreeing to carry
promotion for other company.
Logistic Alliances -Offering logistic services to
other company
Pricing Collaborations -One or more companies
join in a special pricing 63
64. FINAL STRATEGY
PROGRAM FORMULATION
AND IMPLEMENTATION
Developing supporting
systems
Estimating
implementation cost
Managing details to
implement the
strategy.
FEEDBACK AND
CONTROL
“Do the right thing to be
effective , than to do things
right to be effective”
-Peter Ducker
64
66. WHAT IS MEANT BY ETHICS?
Ethics is the art and science of determining
good and bad or right or wrong moral
behaviour of a single or a group of people.
66
67. “ MARKETING is the
science and art of
exploring , creating and
delivering value to
satisfy the needs of a
target market at a
profit.
-Philip Kotler 67
WHAT IS MARKETING?
68. MARKETING ETHICS
Marketing ethics is an area that deals with the
moral principles behind marketing. Ethics in
marketing applies to different spheres such as
in product, pricing, Placing (Distribution),
promotion & advertising etc
68
69. WHY ETHICS IN MARKETING?
Ethical marketing helps increase retention
because employees feel eager and willing to
help sell the product or service.
A transparent company that promotes
responsible marketing can provide a sense of
purpose to workers and worth to society
69
70. PRINCIPLES OF ETHICAL MARKETING
All marketing communications
share the common standard of
truth.
Marketing professionals abide
by the highest standard of
personal ethics.
Advertising is clearly
distinguished from news and
entertainment content.
Marketers should be
transparent about who they
pay to endorse their products.
Consumers should be treated
fairly based on the nature of
the product and the nature of
the consumer (e.g. marketing
to children).
The privacy of the consumer
should never be compromised.
Marketers must comply with
regulations and standards
established by governmental
and professional organizations.
Ethics should be discussed
openly and honestly during all
marketing decisions.
70
71. Do every organization follow ethics?
It is impossible to claim that a company is completely
ethical or unethical.
Ethics resides in the grey area and resides in fine lines and
boundaries.
71
72. Dove commercials as an example
(Case study)
Dove , ran a couple of ads featuring real models for their
campaign.
The Ad was meant to provide realistic body image and
encourage girls to LOVE THE WAY THEY LOOK.
But seems that they had altered the images of models to
hide imperfections.
Dove marketed ethically in one campaign and unethically in
another. This illustrates how difficult it is to do the right
thing in all circumstances.
72
73. TYPES OF UNETHICAL ADVERTISING
Surrogate advertising- Reminder
advertisement to use products like cigarettes
and alcohols , indirectly. ”Redbull gives you
wings”
Exaggeration –False advertising about the
products quality and popularity. ”Get coverage
everywhere across the globe”
Puffery –Relies on subjective claims rather
than objective claim. “Best tasting coffee”.
73
74. Continued…
Unverified claims –Results without testing scientifically .
“Thick, Long Shiny hair in just 2 use”
Stereotyping women – Women being portrayed as sex
objects or domestic servants.
False Brand Comparisons- misleading comparison with
competitors
Children in advertising – Children believe advertisements
and hence it is ethical to get Ads professional.
74
75. ETHICAL ISSUES IN MARKETING
We discuss Marketing issues by using
4P’S OF MARKETING
Product & packaging
price
placing (distribution)
promotion (advertising & branding)
75
76. ISSUES
PRODUCT
Consumer Safety
Product Liability and
reliability
Designing for special
needs
PACKAGING
Label information
Packaging graphics
Packaging safety
Environmental
implications of
packaging
76
77. PRICE AND PLACING
PRICE
Bid rigging
Supra competitive
pricing
Price Fixing
Price skimming
PLACING
Transportation
charges
Partiality to the
manufactures and its
competitors
Promised shipping
Unsafe vehicles for
shipping
77
78. PROMOTION (ADVERTISING AND BRANDING)
Promotion is the communication link between sellers
and buyers for the purpose of influencing, informing, or
persuading a potential buyer's purchasing decision.
To present information to consumers as well as others
To increase demand
To differentiate a product
78
79. IMPORTANCE OF ETHICS
Customer Loyalty
Long-term Gains
Builds Credibility
Leadership
Displays rich culture
Attracts talent
Attains financial goals
Enhanced brand value
Satisfies basic human
needs and wants
79
81. WHAT IS VALUE PROPOSITION?
A value proposition is a promise of value to be
delivered, communicated, and acknowledged.
It is also a belief from the customer about how
value (benefit) will be delivered, experienced
and acquired.
A value proposition can apply to an entire organization, or parts
thereof, or customer accounts, or products or services.
83. VALUE PROPOSITIONS
Understanding your value proposition is the
key to building a strong business model.
It’s also the hardest part.
Lets’ see some examples
83
84. 84
WHAT DO THESE PICTURE
SELLS US?
Value proposition??????
Will we spend a $10,000 just
for this watch that shows us
the same time as $100 watch?
85. This picture sells us its
heirloom
Want to know how?
States “You merely loom after it
for the next generation”
-this is special; the kind of thing you’ll
pass on to your children. It’s hard to
put a price on something sentimental.
85
86. UNIQUE VALUE
Starbucks- Relaxing space b/w work and home
Google- The information you want fast
Rolex- Doesn’t just tells time, it tells history.
Rolls Royce- Quality perfection, engineered
excellence
86
87. HOW DO WE CREATE VALUE PROPOSITION?
87
What do you
offer?
Make your
offer unique!
What does
your offer
speak?
What does
your offer
promise to do?
88. THE VALUE CYCLE
Value elements can be created in each of the
five stages of the value life cycle.
88
value
creation,
value
appropriation
value
consumption
value
renewal
value
transfer
89. BENEFITS OF VALUE PROPOSITIONS
Provides the foundation for your offering
Is a critical factor in conversion success
Creates a strong differentiation between
you and your competitors
Increases not only the quantity but also the
quality of prospective leads
Helps your organisation internally 89