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1、Unit 3 Advertising&Marketing ProcessMarketingvMarketing is the process of planning and executing the conception,pricing,promotion,and distribution of ideas,goods,and services to create exchanges that satisfy the perceived needs,wants and objectives of individuals and organizations.(Arens:2008)vThe p
2、urpose of Marketing is to sell more stuff to more people more often for more money in order to make more profit.(Sergio Zyman)The marketing mixvThe marketing mix approach to marketing is one model of crafting and implementing marketing strategies.It stresses the mixing of various decision factors in
3、 such a way that both organizational and consumer objectives are attained.Generally speaking,it includes four Ps.4P decides the market planWhatWhereWhenWhoHow manyHow muchHow to doDecisionMcDonalds marketing department can determine:v1.What products are well received?v2.What prices consumers are wil
4、ling to pay?v3.What TV programs,newspapers and advertising consumers read or view?v4.What restaurants are visited?Market research Meeting the needs of key audiences v Marketing analysisMarketing plan vA marketing plan is critical for the development of a successful business.v1.Mission:What is the ov
5、erall goal of the company?v2.Objectives:What are you trying to achieve(usually over the next year)must be measurable and specificv3.Strategies:What resources need to be applied to achieve these objectives?v4.Tactics(Plan and Time&Events):Which elements of the marketing mix are most appropriate?Which
6、 weapons in the marketing armory?Set out the detailed plan including the time frame for all elements.ProductAdvertising purpose Set up a brandcompetitionmaintenanceAdvertising strategyinformativepersuasivereminderTarget audience Fashion pursuer Mass consumer Former consumer&newcomerThe phases of a p
7、roduct life cycle Insert ex.6.14,p.193Worlds most valuable brandsPosition=2.9”horizontal,1.5”verticalSize=5.7”WIDEResolution=300 dpiThe Product ElementWorlds most valuable brands 2.Place Available at the right place,at the right time,in the right quantities?Some of the revolutions in business have c
8、ome about by changing Place.Think of the internet and mobile telephones.Place(considerations)PlaceLocations Market Coverage Channel Motivation Channel membersLogistics Service Levels Internet/Mobile3.Price How much are the intended customers willing to pay?Here we decide on a pricing strategy-do not
9、 let it just happen!Even if you decide not to charge for a service(a loss leader),you must realize that this is a conscious decision and forms part of the pricing strategy.Although competing on price is as old as mankind,the consumer is often still sensitive for price discounts and special offers.Pe
10、rmanently competing on price is for many companies not a very sensible approach.Price has also an irrational side:something that is expensive must be good.4.Promotion(How)are the chosen target groups informed or educated about the organization and its products?This includes all the weapons in the ma
11、rketing armory advertising,selling,sales promotions,Public Relations,etc.While the other three Ps have lost much of there meaning in todays markets,Promotion has become the most important P to focus on.Promotion(considerations)PromotionAdvertisingSalesDirect SalesMessagePublic Relations Media Budget
12、4Ps&4CsvFour CsvThe Four Ps is also being replaced by the Four Cs model,consisting of consumer,cost,convenience,and communication.vThe Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing.Product-ConsumervThe product part of the Four Ps model
13、 is replaced by consumer or consumer models,shifting the focus to satisfying the consumer.Place-ConveniencevPlacement is replaced by the convenience function.vWith the rise of internet and hybrid models of purchasing,place is no longer as relevant as before.v Convenience takes into account the ease
14、to buy a product,find a product,find information about a product,and several other considerations.Promotion-CommunicationvFinally,the promotions feature is replaced by communication.vCommunications represents a broader focus than simply promotions.vCommunications can include advertising,public relat
15、ions,personal selling,viral advertising,and any form of communication between the firm and the consumer.Extended Marketing MixvThere have been attempts to develop an extended marketing mix to better accommodate specific aspects of marketing.vFor example,in the 1970s,Nickels and Jolson suggested the
16、inclusion of packaging.vIn the 1980s Kotler proposed public opinion and political power Booms&BithnervBooms and Bitner included three additional Ps to accommodate trends towards a service or knowledge based economy:vPeople all people who directly or indirectly influence the perceived value of the pr
17、oduct or service,including knowledge workers,employees,management and consumers.vProcess procedures,mechanisms and flow of activities which lead to an exchange of value.vPhysical environment the direct sensory experience of a product or service that allows a customer to measure whether he or she has
18、 received value.Examples might include the way a customer is treated by a staff member,or the length of time a customer has to wait,or a cover letter from an insurance company,or the environment in which a product or service is deliveredThe Marketing MixThe Marketing MixvThe tools available to a bus
19、iness to gain the reaction it is seeking from its target market in relation to its marketing objectivesv7Ps Price,Product,Promotion,Place,People,Process,Physical EnvironmentvTraditional 4Ps extended to encompass growth of service industryPricePricevPricing StrategyvImportance of:knowing the marketel
20、asticitykeeping an eye on rivalsImage copyright:ProductProductvMethods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g.Extension strategiesSpecialised versionsNew editionsImprovements real or otherwise!Changed packagin
21、gTechnology,etc.Image copyright:PromotionPromotionvStrategies to make the consumer aware of the existence of a product or servicevNOT just advertisingPlacePlacevThe means by which products and services get from producer to consumer and where they can be accessed by the consumerThe more places to buy
22、 the product and the easier it is made to buy it,the better for the business(and the consumer?)PeoplePeoplevPeople represent the businessThe image they present can be importantFirst contact often human what is the lasting image they provide to the customer?Extent of training and knowledge of the pro
23、duct/service concernedMission statement how relevant?Do staff represent the desired culture of the business?ProcessProcess procedures,mechanisms and flow of activities which lead to an exchange of value.ProcessvHow do people consume services?vWhat processes do they have to go through to acquire the
24、services?vWhere do they find the availability of the service?ContactRemindersRegistrationSubscriptionForm fillingDegree of technologyPhysical EnvironmentPhysical EnvironmentvThe ambience,mood or physical presentation of the environmentSmart/shabby?Trendy/retro/modern/old fashioned?Light/dark/bright/
25、subdued?Romantic/chic/loud?Clean/dirty/unkempt/neat?Music?Smell?The Marketing MixvBlend of the mix depends upon:vMarketing objectivesvType of productvTarget marketvMarket structurevRivals behaviourvGlobal issues culture/religion,etc.vMarketing positionvProduct portfolioProduct lifecycleBoston Matrix
26、Corporate Goal Marketing StrategyMarketing MixProduct Price PlaceCustomerCostConveniencePromotion CommunicationPublic relationpoliticschangechanceCorporate Goal Marketing StrategyMarketing MixProduct Price PlaceCustomerCostConveniencePromotion CommunicationGreasy,salty,junk foodstuffsMcShit,McMurder
27、,McDeath v ExercisesvA.True or Falsev1.The marketing plan determines the role of advertising in the marketing mix.v2.Advertising objectives should be specific as to time and degree so that success can be measured by research studies and tests.v3.Advertising should go after a successful planning,deve
28、lopment and implementation of an overall marketing program.v4.It is very important for the marketer to make the price of a product as low as possible.v3.The marketing plan for an organization _.vA.permits the functional managers within the organization to work together but does not require it.vB.assembles only the facts related to how the organization communicates with its market.vC.sets out goals and objectives for unspecified periods of time.vD.lays out precise strategies and tactics that will be used to achieve objectives.