Marketing and advertising

 

Otázka: Marketing and advertising

Jazyk: Angličtina

Přidal(a): Jan Lapuník

 

 

We can divide marketing into 4 parts:

• 1) marketing
• 2) market research
• 3) marketing mix – tools of marketing
• 4) marketing department in the company

 

What is marketing? Marketing is

• A wide range of activities to sell products, satisfy customer and make a profit
• The sum of activities involved in directing the flow of goods and services from producers to consumers
• In recent years marketing has become a driving force in most companies
• Its principal function is to promote and facilitate Exchange of products and services with other parties
• Marketing is connected with both a profit-oriented business and non-profit institution (hospital, school,..)

 

Marketing concept:

• We put the customer first
• We must produce what people want, not what we want to produce

 

Market research

• We must find out what the customer wants and then we can carry out Market research.
• We must collect, study and use data on the market for our product (or service)
• Focus on population
  • Statistics on the population and their habits
  • Customer’s point of view
  • We can ask or give them questionnaires
• Focus on goods
  • We give questionnaires about quality, price and packing of good
• Focus on competition

 

Marketing mix – tools of marketing

Marketing mix consists of

• PRODUCT
• PRICE
• PLACE
• PROMOTION

 

PRODUCT

• Product is the goods or service
• Product includes design, quality, reliability, packing of goods, after-sales services

 

Product has a life cycle

• Introduction
  • Typical for introduction is expensive advertising and promotional campaign.
  • Companies get large investments to cover the costs of developing the products.

• Growth
  • Competition of product increases
  • Pressure to maintain large promotion and reduce the prices.
• Maturity
  • Slight decline is starting
  • It is the longest phase in the life cycle of product.
  • The key to success is to stimulate consumption of the existing product by making some improvement advertisement
• Decline
  • It is time when sales and profit begin to slip away
  • Companies are continually developing new products to replace products whose sales are declining.

 

PRICE

• Pricing takes account of (bere v úvahu)
  • The value of the products
  • Its quality
  • The ability of the customer to pay
  • The prices charged by the competition
• Too low prices can reduce sales as well as too high prices.
• A low price may increase but not as profitably as fixing a higher, still popular price.
  • Discount pricing = offering a reduction on price
  • Quantity discount = discount offered to buyers of large quantities
• VAT = shopkeepers have to add value added tax on the selling price

 

PLACE

• =distribution
• Distribution is getting the product from the producer to the customer
• We have two channels of distribution
• • First channel is direct – product gets from the producer to the customer or retailer (retail can be hypermarket, supermarket, discount shops) without intermediary
  • Second channel is indirect – product gets through the intermediary (wholesale = velkoobchod)

 

PROMOTION

• Promotion is presenting the product to the customer
• Promotion can be divided to 4 points

• 1. Sales force (prodavači)
  • It’s the most expensive means of promotion, because Sales force require income
  • The less expensive methods are direct mail and telemarketing
• 2. Sales promotion
  • While advertising present a reason to buy a product, sales promotion offers short-term incentive to purchase
    • Sales promotion can be for customers – for example coupon, bonus, brochures, competition, discounts or hire purchase
    • Sales promotion can be for businessmen too – for example price advantages, fairs (trhy), exhibitions or training (kurzy)

• 3. Advertising
  • Advertising can be print (newspaper, magazines, billboard) or can be broadcast (TV, radio).
  • Rules of advertisement
  • Truthful
  • impressive
  • Efficient
  • We can make the advertisement more effective:
    • The longer advertisement is the more effective it is
    • We should be surprised with the story
    • Emotional elements can be humour, love, pain, beauty etc.
    • Early identification of the brand of the goods

• 4. Publicity
  • Publicity is the relationship among an organization and the public.
  • It’s explaining to the public what an organization does.
  • Publicity isn’t paid by the producer (unlike advertisement).
  • Public relation is a part of publicity

 

Marketing department in the company

• Every big company has its Marketing Department. The employees of Marketing Department must have a clear idea of:
• • What the customer need
  • What the customer want
  • What makes them buy the product
• Job description of marketing specialists:
• • Research what the customer want to buy
  • They use the research to design new products and services
  • They set the right price
  • They handle transportation, storage and distribution
  • They are responsible for advertising, promotion, publicity and personal selling