1. Fast Track to DM
Track 1: Introduction to DM
Part I : What is Marketing ?
Patrick Verstraete

2. First track
• Track 1 = Introduction to DM
• Part 1 : What is marketing
• Part 2 : What is direct marketing
• Part 3 : The practice of direct marketing
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 2

3. What is marketing
• Track 1 = Introduction to DM
• Part 1 : What is marketing? Basics of marketing
–Definition of marketing
–Marketing model
–Strategic marketing : segmentation, targeting, positioning
–Marketing Evolution
–Marketing Mix : the 4 P’s
–Investments in advertising
–Marketing Information System
–Marketing is a business
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 3

4. What is direct marketing
• Track 1 = Introduction to DM
• Part 2 : What is direct marketing
–Definition of direct marketing
–Cornerstones of DM
–Mentality – Mission – Method – Media
–Database
–Why DM
–Integrated marketing
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 4

5. The practice of direct marketing
• Track 1 = Introduction to DM
• Part 3 : The practice of direct marketing
- Value chain and players
- Lists for lead generation
- Data quality
- Marketing services
- Intelligent prospection tools
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 5

6. What is Marketing
Marketing
Market
Bring to the Market
What For Who Why When How
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7. What is marketing ?
What is ‘brought’ to the
market ?
What kind of product is
behind this ad ?
Which trade mark ?
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8. What is marketing ?
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 8

9. What is marketing ?
Needs, wants, Products
and demands and services
Core
Marketing
Concepts
Markets Value,
satisfaction,
and quality
Exchange, transactions,
and relationships
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10. In other words
"Yes, I sell people things they don't need.
I can't, however, sell them something
they don't want.
Even with advertising. ”
John O'Toole
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11. Definition of marketing
Marketing is the social process by which
individuals and groups obtain what they need
and want through creating and exchanging
products and value with others.
P. Kotler
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12. In other words
Marketing is to find out what your
customers want and then give it to
them
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13. Marketing model
Marketing Concept
 Consumer Orientation
Concept  Competitive advantage
 Long term profit
Marketing Environment
 Market research
Marketing  Market Information system
Marketing Application
 Market segmentation
 Target Marketing
 Positioning
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 13

14. Customers are important : case of GM’s failure
Background • General Motors in 1978
& Objective • Top management wanted higher profits, greater shareholder
return
• Raise prices above inflationary levels
Solution • Decrease costs through lowing the quality of products
• Decrease investment in new models
• Concentrate on larger, more profitable models at the expense
of smaller, less profitable models
Short-term • Increased short-term profits
Results • Loss of first-time buyers to Japanese auto industry who
specialized in smaller, high quality, inexpensive cars
Long-term
Results • Market share decrease from 46% in 1978 to 33% in 1996
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15. GM’s failure
How is that possible ?
What are the reasons of GM’s failure ?
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16. In other words
Customers buy for their reasons, not yours.
Orvel Ray Wilson
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17. Strategic Marketing
Corporate and Marketing Objectives
Segmentation
• Consider variables for segmenting market
• Look at profile of emerging segments
• Valildate segments emerging
Targeting
• Decide on targeting strategy
• Decide which and how many segments should be targeted
Positioning
• Understand customer perception
• Position products in the mind of the customer
Marketing Mix
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18. Market segmentation
Grass cutters
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19. Market segmentation
Exemple in Telco sector
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20. Market segmentation
The division of a market
into distinct groups of
buyers who might require
different products or
marketing mix
Targeting strategy
The selection of the
customers you wish to
service
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21. Basic Target Marketing Strategies
Orthopedic White shoes Shoes Sport shoes
Babyshoes
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22. Market positioning
The place the product occupies in the
consumer’s mind relative to competing
products
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23. In other words
You must have mindshare
before you can have marketshare.
Christopher M. Knight
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24. Market positioning
What variables are
relevant in positioning
BMW vs LADA ? ?
LADA
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25. Marketing evolution
Product-Driven Customer-Driven
• Treat customers the same • Treat customers differently
• Customers interchangeable
• Customers are individuals
• Talk at customers • Talk with customers
• Success = getting more customers • Success = keeping & growing customers
• Customer data used indiscriminately • Customer learnings applied with
permission
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26. Marketing evolution
III IV
Ability to interact with customers
individually
database CRM
marketing
Interacting
I II
Customers addressed only in
mass media
mass niche
marketing marketing
Standard Tailored
Products
Tailoring Products
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27. Marketing Environment
Macro
Envirionment Demographic
forces
Cultural Economic
forces Consu-
mers Suppliers forces
Compe-
Public titors
Stakehol- Interme-
Political/legal ders diaires Natural
forces forces
Micro
Envirionment Technological
forces
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28. Marketingmix
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29. Marketing Mix
• Product : deals with the specifications of the actual good or service, and how it
relates to the end-user's needs and wants.
• Price/value : refers to the process of setting a price for a product, including
discounts
• Place/distribution : refers to how the product gets to the customer; for example,
point of sale placement or retailing, e-commerce, direct selling by catalogues
• Promotion : includes advertising, sales promotion,publicity, and personal selling,
and refers to the various methods of promoting the product, brand, or company.
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30. P of product
Installation
Packaging
Brand name Features
Delivery
And Core benefit After
Credit or service Sales
Service
Quality Styling
Warranty
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31. In other words
A product is something made in a factory;
a brand is something that is bought
by the customer.."
Stephen King
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32. P of Product
Product life cycle
Flat GSM Enclyclopedia
Screen Brittanica
TV (printed version)
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33. P of Price
What ‘s the price for a « pint » ?
At home ?
Draft at home ?
In a pub ?
In a restaurant ?
In a bar ?
In a night club ?
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34. P of Price
Savoy Hotel Suite
Telenet connection
Spaghetti
Digital watches
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35. P of Price
.
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36. P of Place
Place (Distribution)
Place (Distribution)
Producer Marketing intermediaries Customer
Merchants
- resellers
- wholesalers
- retailers
- internet
Functional middlemen
- agents
- brokers
- jobbers
Session 8 - Distribution 3
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37. P of Place
Channel members
Channel members
Producers
Producers Distributors
Distributors Retailers
Retailers Customers
Customers
Hotel Guest
Airline Agency Passenger
Brewery Distributor Liquor store Customer
Designer Wholesaler Boutique Patron
channel length
Session 8 - Distribution 13
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38. P of Place
Channel members
Channel members
Producers
Producers Distributors
Distributors Retailers
Retailers Customers
Customers
Hotel Guest
Airline Agency Passenger
Brewery Distributor Liquor store Customer
Designer Wholesaler Boutique Patron
channel length
Session 8 - Distribution 13
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 38

39. P of Place
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40. P of Promotion
Promotional Mix:
• Personal Selling
• Sales Promotion
• Public Relations
• Direct Marketing
• Trade fairs and exhibitions
• Advertising
• Sponsorships
• Merchandising
• Packaging
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41. P of Promotion
Public relation
Do you see the differences ?
Klaus Kleinfeld
CEO Siemens
1350 people lost their job
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42. P of Promotion
Promotional Mix:
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43. What is Marketing ?
Apply the marketing mix to the following products
Product Price
family cars or city car Reduction / take over
Diesel engine or fuel Free options
Extra seats, color, options Offering credit
(customization) Special conditions
cars
selling by dealer network TV ads
direct selling Personal selling
Website : to inform Offering test drives
Open door
Sponsorship
Place Promotion
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44. What is Marketing ?
Apply the marketing mix to the following products
Product Price
gsm
loans
coffee
Place Promotion
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45. Above and Below
Above the line
Below the line
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46. Above and Below
Radio
Newspapers T.V.
Cinema
Magazines Outdoors (affichage)
Above the line Web banners
Below the line Direct marketing
Mailings E-mails
Couponing
DRTV
Telemarketing
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47. Above and Below
Above the line
Through the line ?
Below the line
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48. Marketing Management Process
- seek new ways to offer value to consumers
- develop product or services
Market opportunities - be aware of competitors, environmental forces, ...
- market definition
- classify customers in homogeneous groups
- criteria : who buys what , why, how, where, when, ?
Looking for segments - target segmentation : who do you really want
to reach
- positioning : the place a product has in consumers’
mind relative to competitors
Marketing mix and positioning
- marketing mix : how to influence the demand for
your product
- planning, implementing, organizing
Managing marketing efforts - evaluate, measure, control
- refine, develop, adapt,
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 48

49. Marketing Information System
Marketing Information System
Marketing
Assessing Developing Internal
Information Information Records
Needs
Marketing
Intelligence
Distribution Information Marketing
Information Analysis Research
Environment
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 49

50. Marketing is a business
Partners in a chain Art Work
T.V, Radio,
Cinema,
Press
Events &
Sponsoring
Media
Advertiser Agency
Market
Research
Fulfilment
DM
Agency &
Services
Call Center
Media
Agency
Postal services
Print Distribution
Design &
Packaging
In store
communication
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51. Exercice
Last Question for this
session
Use the following words to
comment this ad and the product:
brand
segment
merchandising
market definition
distribution
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 51

52. Questions ?
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 52

53. Next time : Fast track to DM
Above the line
Below the line
WHAT IS DIRECT MARKETING ?
Fast Track to DM Track 1: Introduction to DM ShortTitle – Page 53