C:\Users\Master\Desktop\image001.jpg Marketing Strategy in Service Business - margrimaldi@unisa.it - ASVSA Associazione per la ricerca sui Sistemi Vitali ASVSA Associazione per la ricerca sui Sistemi Vitali Programme 2 •Marketing and Service Marketing: origins, evolutions & trends •Service Theories: from S-D logic & Service Science to service ecosystems & service systems •Marketing Plan • •Many-to-Many Marketing •Value co-creation •Unconventional marketing • Case studies Examples • Agenda: Lesson 3 3 •The Marketing Plan: v vStrategic marketing Agenda, checklist, tasks, todo icon Quiz - Free education icons Risultati immagini per STRATEGY ICON •Examples: different strategies for different tactics • •Exercise STP 4Ps vOperational marketing The Marketing Plan 3.1 4 Consumers Segments Target s1 s2 s3 st Selection of different «levels» of benefits required by users Can be value translated into products for the selected targets? S E L E C T I O N Value proposition Which kind of marketing mix Value can be spread and take shape? Creating value Which value? GAP GAP GAP 5 Marketing Management GAP GAP RESEARCH Systematic, structured process that involves: Segmenting Targeting Positioning … Marketing mix Control Marketing Planning 6 Implementing, evaluating and controlling marketing activities. Research and analysis of current and future market and business situation Development and Diffusion of firm’s objectives, strategies and programs, A mission statement is a short description of organization’s raison d’être, of its overall goal and of the objectives for the future (VISION). Segmenting Targeting Positioning … Marketing mix Control 7 Examples of mission statements 8 Forward Icon - Free Sound Icons - SoftIcons.com Example: PASTA Market 9 Environmental friendly Healthy Culture and Lifestyle Joy Traditions and Habits To guide business process in the short and in the long run based on users’ expectations and competitor’s actions. MARKETING MIX & the 4 Ps Strategic and Operational Marketing 10 Marketing Managers Strategic marketing Operational marketing Corporate Strategy: A strategy that determines the means for the use of resources in the various functional areas to reach the organization’s goals. Segmenting Targeting Positioning … Marketing mix Control 11 Segmenting Targeting Positioning Development and maintenance of strategic alignment between: … Marketing mix Control 12 •Goals/organization’s capabilites •Market opportunities/competitor’s behaviors. "The marketing strategy lays out target markets and the value proposition that will be offered based on an analysis of the best market opportunities." (Kotler & Keller) Risultati immagini per alignment icon Strategic Marketing 3.1.1 13 Strategic Marketing •Tools and techniques required for the analysis, measurement and selection of dynamic scenario and potential targets forvalue proposition. • 14 Risultati immagini per analisi icona AIMS 1.To decrease errors; 2.To identify the targets interested in the offering (or potentially intereseted); 3.To codify strategic guidelines to create or establish/consolidate the reputation and awareness of the offering S T P 15 1.To identify customer’sexpected needs and benefits 2.To classify segments STP- segmentation, targeting, positioning 3. To measure segments’ attractiveness, profitability, accessibility and differences 4. To select target segments 5. To establish the positioning for each target 6. To develop a marketing mix plan for each target Risultati immagini per position icon Risultati immagini per target icon Marketing, Il Marketing Strategico – Capitolo 4, fpolese@unisa.it Select & study a market Choose bases for segmen-tation Select segmentation variables Profile and analyze segments 1 2 3 4 16 STP: (1) segmentation Segmentation •Definition: Division of the total market into smaller, relatively homogeneous groups • • • • • • • • • S • •Why? •Levels: Mass, Segment, and Niche 17 Example: PASTA Market 18 •Heavy consumers • •Culture of food and meals consumption as «rituals» • •Medium interest in product quality • •High Price sensitivity TRADITIONALISTS •Light users • •Low familiarity with cooking and «processed» food • •Low interest in product quality • •Medium Price sensitivity POST-MODERNISTS •Heavy consumers of organic, lactose-free and gluten-free food • •Specific requirements on organoleptic properties of products • •Low Price sensitivity HEALTHY CONSUMERS The importance of segmentation •Markets have a variety of product needs and preferences. 19 Market Marketers Decision makers •Decision makers can define objectives and allocate resources more accurately. • •Marketers can better define customer needs Segmentation Criteria 20 Mass Market Segmentated Market Niche Market One-to-one Market Geographic Demographic Behavioural Psychographic Situational SEGMENTATION VARIABLES Segmentation Criteria 21 Demographic Behavioural Psychographic Situational 22 Segments: main characteristics QUANTITY QUALITY STRATEGY Risultati immagini per QUANTITY ICON Marketing, Il Marketing Strategico – Capitolo 4, fpolese@unisa.it Select and define the most suitable target(s) Define the market(s) Select the needs for each segment 1 2 3 23 STP: (2) TARGETING (2)Targeting •Selection of one or more segments • 24 Targets to “deliver” : •value propositions •offering design • •strategies and tactics becoming •Process that identifies potential markets by analyzing the marketing opportunities arising from the different segments. This complex decision should balance: At the end of the process, firms can choose a target market, that is the set of customers with homogeneous needs and features that companies aim at «striking»: the target. > GOALS > EFFECTIVENESS > RESOURCES > EFFICIENCY 25 Targeting as a process SEGMENTATIONS: How many and which segments are in the market? TARGETING: Among the different segments, for whom should firms create value? RESEARCH: how does the external environment look like? 26 Targeting: identification of market(s) 27 28 Shopology & Customer Journey •COMPETITOR ANALYIS vMatrix Attractiveness/Competitiveness vSwot Analysis • Image result for competizione 29 Targeting: Main steps •MARKET COVERAGE (1)Targeting: competitor analysis Trade Icon Png #91902 - Free Icons Library 30 •To define how many and which segments should be selected through an assessment of segment(s) attractiveness based on firm’s capabilities to employ resources to satisfy it/them. Two main factors affect the decision: External Contextual factors that surround business’ activities, for instance the time period in which resources should be available. Medium & Long-term goals related to volumes of production and sales, market penentration and (perspective) profits Internal (1) Competitor Analysis 31 Potential Limitations CURRENT FUTURE 32 (1) Competitor Analysis Future Icon - Free Download, PNG and Vector The presence of a large number of competitors, already active in the identified segment (or potentially entering), can limit or damage the entry or permanence of the company in the chosen segment The consolidated bargaining power of customers and suppliers can make the market segment less profitable for the company EXOGENOUS FACTORS 1 4 7 2 5 8 3 6 9 Threats/ Opportuntities Segment Attractiveness Capability to satisfy the segment(s) Low Medium High Matrix Attractiveness-Competitiveness 33 POST-MODERNISTS TRADITIONALISTS HEALTHY CONSUMERS Undifferentiated tastes, no special requirements in terms of quality or brand Required components/ recipes/ organoleptic features Brand awareness, Italian Culture, loyalty Post-modernists Healthy Consumers Traditionalists DEMAND 50 50 50 OFFERING 50 50 50 ATTRACTIVENESS 1 3 4 * * * 100 300 400 Example: Target Attractiveness 34 140 350 370 100 500 TRADITIONALISTS HEALTHY CONSUMERS POST-MODERNISTS Example: Matrix Attractiveness-competitiveness 35 EXOGENOUS FACTORS 1 4 7 2 5 8 3 6 9 Threats/ Opportuntities Segment Attractiveness Capability to satisfy the segment(s) Low Medium High •Heavy consumers of organic, lactose-free and gluten-free food • •Specific requirements on organoleptic properties of products • •Low Price sensitivity •Heavy consumers • •Culture of food and meals consumption as «rituals» • •Medium interest in product quality • •High Price sensitivity Example: PASTA Market 36 Traditional Products Strengthening of Mediterranean Culture New Storytelling Campaign … TRADITIONALISTS •Light user • •Low familiarity with cooking and «processed» food • •Low interest in product quality • •Medium Price sensitivity POST-MODERNISTS Green Lines Broadening of the assortment New packagings …. HEALTHY CONSUMERS Italian Families Green eaters 36 37 Stakeholder Analysis Stakeholder Analysis is the process of understanding who has a vested interest in a change effort and working with them to ensure success 38 SWOT Analysis Underserved markets Few competitors in your area Emerging needs for your product-service Press/media coverage of your company Things your company lacks Things your competitors do better than you Resource limitations Unclear unique selling proposition Qualities that separate your firm from competitors Internal resources (skills, knowledge, staff) Tangible assets: intellectual-capital property, technologies Emerging competitors Changing enviornmental conditions (law, regulation) Changing customer’s attitude toward the company (need) Negative Press/Media coverage 39 SWOT Analysis: Example • •Market “portion” reached through marketing activity or campaign, or, in relation to sales, through employees and salesforce (market share). • •After the step of analysis, firms should assess the possible opportunities deriving from it and identify the possibility to competitive advantage 40 (2) Market Coverage Undifferentiated marketing strategies Differentiated marketing strategies Concentrated marketing strategies Group, groups, mass, network, people-pattern, social, web icon Audience, customer, focus, focused, search, target, user icon • §The kind of product/service offered and the degree of homogeneity or specialization of needs; §The stage of the product in its lifecycle of the product ( in the phase of decisions); §The resources owned. – 41 (2) Market Coverage: Main factors §The current situation in the target market and the potential future evolution (e.g. from homogeneity of needs to the emergence of differences); §The analysis of competition, the level of dynamism and the past strategic decisions of competitors (for comparison, contrast or inspiration). Risultati immagini per internal icon Business External Icon | Windows 8 Iconset | Icons8 42 Market Coverage: Different Targeting, Different Strategies 43 (1) Undifferentiated marketing üTo ignore segmentation opportunities §Possibilities to exploit the advantages economies of scale in production and selling; §Lower costs (e.g. for communication, single marketing mix) §To maintain leadership (1) Undifferentiated marketing PROS §Complexity of markets and evolution of consumers’ needs and degree of satisfaction; §Difficulties in the coverage of small segments with specific needs. CONS Pros And Cons Thumbs Up And Down Icons Stock Vector - Illustration ... Pros And Cons Thumbs Up And Down Icons Stock Vector - Illustration ... 44 • •The brand is too strong to identify the entire market and/or the segment in consumer’s mind. The brand embodies the whole market. • Apple Ipad in Tablet market (2010) Coca-Cola (1) Undifferentiated marketing 45 46 (2) Differentiated (Segmented) marketing Disponibilità coca-cola fanta e sprite in lattina. - Foto di La ... Procter & Gamble, тикер: PG - график цен на акции Проктэр энд Гэмбл üTarget several segments and design separate offers for each Coca- Cola (Coke, Sprite, Coca Zero/ Diet, Fanta, etc) Procter & Gamble (Tide, Cheer, Gain, Dreft, etc.) Toyota (Aygo, Yaris, Corolla, Prius, Camry, etc.) • • • • (2) Differentiated marketing 47 48 §Possibilities to boost the overall selling opportunities; §Possibility to maintain market share. PROS CONS Pros And Cons Thumbs Up And Down Icons Stock Vector - Illustration ... Pros And Cons Thumbs Up And Down Icons Stock Vector - Illustration ... §Higher costs for production, distribution and communication; §Criticalities in the definition of strategic choices of control. (BRAND PORTFOLIO) (2) Differentiated marketing 49 (3) Concentrated and Niche marketing üTarget one or a couple of small segments with very specialized interests Listino Ferrari Portofino prezzo - scheda tecnica - consumi - foto ... Status symbol Specific needs Luxury Goods §Risk of the unexpected inability to survive in the market due to iperspecialization. The success of the firm depends only on a specific segment or product-service. The risk of business is not fragmented. PROS CONS Pros And Cons Thumbs Up And Down Icons Stock Vector - Illustration ... Pros And Cons Thumbs Up And Down Icons Stock Vector - Illustration ... (3) Concentrated and Niche marketing §Possibilities to acquire economies of scale and learning economy through the focus on a specific segment; §Specialization of products (and competencies). 50 •Hypercompetition and the rapid evolution of contemporary customer’s tastes lead businesses to adopt more and more focused programmes and solutions: Satisfaction of the needs of a single consumer (individual or consumer group). - Loyalty and personalize relationships over time (4) Micro-Marketing/Personalized marketing Camicie con iniziali, cifre e monogrammi ricamati online - Apposta 51 Small group of consumers selected based on common features such as localization (single point of sales, restaurants, typical products); Micro- marketing: Personalized/ Taylored Marketing Prague Style Smoked Ham - Schaller & Weber Everyone is much more than a customer 52 Life stage defines a person’s major concern Customer Lifetime value Marketing, Il Marketing Strategico – Capitolo 4, fpolese@unisa.it 1 53 STP: (3) POSITIONING “Position” the offering into the market Define the most relevant features of the offering Estabish how consumers should perceive the offering 2 3 • •Positioning defines the way in which a brand or a firm are perceived by potential consumers as different from competitors • • The definition of Positioning “the building of a product image in order to give a brand, in the evaluation of consumers, a favorable place, differentiated from competitor’s position» (Ries and Trout, 1991)over 54 Positioning Main goals: • •Favorable perception of potential buyers; •Brand Awareness (reputation, notoriety) 55 •Positioning is a tool for the analysis employed by firms to define the optimal strategy to attain competitive advantage Perception - Free arrows icons Positioning Strategies 56 Repositioning in relation to competitor’s offerings, that involves a process of shifting of positioning from an old to a new location in potential consumer’s mind Research and achievement of a new positioning based on new attributes not yet used or promoted as new value for consumers; Stabilization of current positioning of the product, brand or firm in consumer’s mind; Reposition Icons - Download Free Vector Icons | Noun Project The Repositioning 57 •A change of positioning is necessary when market conditions change. Usually, repositioning is performed for two reasons: •To challenge new competitors; •To enhance the capability to address users’ needs and preferences. N.B.= the repositioning should be carried out without creating confusion in the perception of customers, by adopting a coherent and reliable communication strategy consistent with the previous image of the brand. Positioning: Analysis and Strategies •Positioning involves two different moments: • • . 58 Research for a satisfactory place for the offering and for the brand by identifying the tools (marketing policies) to occupy and defend the positioning from competitors' actions Strategic plan focus the attention on the identification of the benefits of the product perceivable by the consumer with respect to the expected benefits and assessment of the ability to satisfy them by the competitor’s offering Analytic plan Risultati immagini per analysis icon Risultati immagini per strategy icon Positioning •The main activity is the identification of required benefits: • 59 Strictly connected with product’s attributes; referred indirectly to the brand Referred to product’s and consumer’s value and to brand’s ability to put users in relations with the others and with their reference group Functional benefits Symbolic benefits Risultati immagini per symbolic icon Risultati immagini per functional icon Example: Pasta Market 60 Functional benefits Symbolic Benefits •Health and physical well-being (weight, fitness) •Helthy way of life •Conviviality •Complete nutrition •Taste •Digestibility Healthy Eating & Nutrition - Basketball Victoria Example: Positioning •Functional benefits of the brand «Nutella»: -Nutritional properties - •Symbolic beneficts of the brand «Nutella»: -Emotional/hedonistic: delight for taste -Sentimental: childhood memories - 61 •Functional benefits of the brands «Bulgari and Cartier»: •- Quality of raw materials (stones, emerald, metals etc.) • • • •Symbolic benefits of the brands «Bulgari and Cartier»: -Exclusivity -Refinement -Status symbol • 62 Example: Positioning Perceptual Positioning Maps 63 Display consumer’s perceptions through a visual picture of how customers perceive their brand versus the competing products or services on relevant buying dimensions Example: atletic footwear Example: Candy sector 64 After lunch/ dinner HARD SOFT Cinema, Party Consolatory Not be able to do without Whim Marketing management steps: a synthesis 1. To identify the bases to segment the market 2. To profile segments 3. To measure segment’s attractiveness 4. To select the segment(s)/ target(s) 6. To define the positioning for each target 7. To define the marketing mix for each target SEGMENTATION TARGETING POSITIONING 65 Risultati immagini per targeting icon Risultati immagini per profiling icon 5. To analyze the current positioning of products and competitors in customer’s mind Brand positioning - Free marketing icons Criteria for Positioning •Main features to differentiate a product (the brand) in the perception of buyers: •Physical attributes of the product •Symbolic attributes of the product •Benefits offered •Price •Contrast to a competitor •Association with a class of products •Identification with a class of users •Identification with an opinion leader •Appropriateness for given occasions of use •Image of the manufacturer or country of origin 66 Positioning 1. Physical attributes: to emphasize the main (inner characteristics) features that affect performance Risultati immagini per limoni costa d'amalfi Food companies can stress the colors, the appearance, the freshness of their goods 67 Intense perfume; tapered shape; juicy pulp; absence of seeds. Rich of vitamin C and essential oils. Delicious, natural, suitable for the preparation of fresh recipes Positioning •2. Symbolic attributes To adopt a given (dynamic, exclusive, sporty, adventurous) lifestyle Risultati immagini per foto auto 68 Positioning - • • • - • 3. Offered benefits Risultati immagini per mentadent Ferrarelle lights up your vitality because it envelops the well-being of 100% effervescence, perfectly balanced, with a unique and full taste. Risultati immagini per ferrarelle acqua 2 vasetti di Yogurt con Fragola in pezzi Vitasnella 69 Creamy, rich in taste and fat-free, many pieces of fruit. Anti bacterial; Anti plaque; It protects caries; Helps and strengthens the enamel; Helps protect the gums; Effective on the tongue; Acts in hard-to-reach areas; It guarantees long lasting freshness. Positioning - •performance • • - • 4. Price Price lower than competitors’ services. Focus on basic features and essential characteristics. 70 Positioning - •performance • • - • 5. Opposition to a competitor Risultati immagini per pepsi cola A drink created to challenge Coca-Cola, the «hystorical» competitor. At the beginning, Pepsi aims at curing stomach pains. 71 Posizionamento - - • 6. Association with a category of products Risultati immagini per caffè decaffeinato immagini … Decaffeinated coffee… Risultati immagini per aspirina immagini … Analgesics… Risultati immagini per scottex immagini … Roll kitchen paper… 72 Posizionamento 7. Identification with a segment of users «Dishes as good as homemade… Ready meals» Users: Singles, mothers Risultati immagini per 4 salti in padella immagini 73 Posizionamento 8. Identification with leaders or celebrities The «personality» of celebrities are associated with brand’s and product’s personality (elegance, exclusivity, refinement) 74 Positioning 9. Suitability for given occasions of use On San Valentines Day one candy one chocolate candy out of three is «Perugina» Risultati immagini per bacio perugina immagini 75 Positioning 10. Image of Producer (brand) and Country of Origin Effect … the focus is not (only) on the features of goods, but on feelings and sense of belonging…promotion of citizenship 76 Visita Praga Positioning Map • •AIMS: •understand the perception of and the existence of correspondence between consumer preferences and offer positioning • •compare the positioning of competing products • •identify any ideal free positions Positioning Maps is a tool that represents graphically the positioning or perception of each group of competing products in respect of two specific product characteristics 77 Risultati immagini per mind the gap icon Positioning Map: Fashion 78 HIGH PRICE LOW PRICE HAUTE COUTURE BASSE COUTURE 79 Positioning Map: Cars LOW PRICE HIGH QUALITY LOW QUALITY HIGH PRICE buitoni - Emme Gel 80 Positioning Map: Pasta Market LOW QUALITY HIGH QUALITY HIGH PRICE LOW PRICE Evoluzione del logo Barilla - Archivio Storico Barilla Risultati immagini per AMATO LOGO Risultati immagini per MOLISANA LOGO Risultati immagini per DI MARTINO PASTA LOGO Risultati immagini per RUMMO LOGO De cecco | SI Hotels - Sistema italiano Hotels Risultati immagini per GAROFALO LOGO GAP IN THE MARKET (OFFERING BLANK) Framework your business: Abell’s Matrix 81 Operational Marketing & The 4 Ps 3.1.2 82 Le 4 “P” del Marketing Mix. – Hello Marketing •Marketing Mix is the set of decisions that concern the kind of product, the kind of packaging, the price, the place, the communication that are the marketing variables controllable by firms, the 4 Ps. • • • • • • • • • • • 83 Marketing Mix N.B.= marketing mix decisions should comply with a «dual coherence» between: •Internal (between the different single «Ps»); •External (coherent with positioning and corporate image). A product is everything that can be offered to consumers to satisfy their needs. It can be a physical object and can invovle people, places, institutions, ideas. Products should comply with firm’s proposal to satisfy the need of buyers. Packaging, visual identity, brand, accessories 84 (1) Product Ingredients, components, raw materials, shape (service: equipment, structures for delivery) Basic attributes Secondary attributes Attention Icon: immagini, foto stock e grafica vettoriale ... It depends on market and product’s vision and strategies Lines, types of products, variations and versions constitute the assortment, measured according to two dimensions: DEPTH: number of variations and of different versions of each product for each line 85 Assortment BREADTH: number of the product lines BREADTH Assortment Icon of Line style - Available in SVG, PNG, EPS, AI ... 86 Example: Pasta Market To be effective, brand should have the following features: - Originality -Ease of pronunciation -Memorability -To be translatable in other languages, coherence with the product 87 The Brand It is a name, a symbol, a picture, a logo or a combination of these elements to identify products and services of one or more suppliers to distinguish them from competitors’ products. Distributors Producers Manufacturer brand Retail brand Allegiance, brand, love, loyalty, tag icon Risultati immagini per retail icon Risultati immagini per manufacturer icon •Protection and rights; 88 The main goals of branding • Identification of producers • Awareness, notoriety and esteem • Association with the level of quality of the product • Differentiation from other products (or from different products of the same company but characterized by a different marketing mix); • Possibility for the customer to make comparisons with other products; • Impact on consumer’s behaviors; • Opportunity to retain customers. Card, hand, id, identification icon Differentiation - Free seo and web icons Consumer Icon of Colored Outline style - Available in SVG, PNG ... Risultati immagini per rights icon Product Lifecycle 89 BCG Matrix General Electric Matrix Three main tools Risultati immagini per one icon Risultati immagini per two icon Risultati immagini per three icon §commodity or convenience goods: mass consumers goods (water, pasta, bread and food sector in general) highly replaceable and low price • §luxury goods (exclusive cars, haute couture fashion): targeted at market niches or at consumers with high spending capacity 90 Different targeting, different products §shopping goods: products devoted to customers with medium spending capacity and that requires careful evaluation (professional services, travels, services not easily replaceable) (1) Product Lifecycle 91 Ciclo di vita del prodotto: definizione e fasi - Inside Marketing Ciclo di vita del prodotto: definizione e fasi - Inside Marketing Ciclo di vita del prodotto: definizione e fasi - Inside Marketing Ciclo di vita del prodotto: definizione e fasi - Inside Marketing TIME Introduction Growth Maturity Decline Revitalization 92 Product Lifecycle High decrease in sales and profits. Slow sales growth and negative economic results due to the huge expenses. Development Introduction Maturity Rapid market acceptance, with improved profits Product acceptance by potential buyers which leads to stabilization of sales and profits. Sales development deriving from changes: •in the offer (new uses of product, quality improvements, expansion of the range, introduction of accessories, etc.; •In the demand (new needs satisfied with the product, new market segments, new channels, new consumer habits, new trends in users’ needs). Revitalization Decline Risultati immagini per revitalization icon Risultati immagini per development icon Ciclo di vita del prodotto: definizione e fasi - Inside Marketing Ciclo di vita del prodotto: definizione e fasi - Inside Marketing Ciclo di vita del prodotto: definizione e fasi - Inside Marketing Ciclo di vita del prodotto: definizione e fasi - Inside Marketing Introduction Growth Maturity Decline 93 Product Lifecycle: Implications TIME Low High Negative Early Adopters Few Rising Rising Medium Innovators Increasing Stable Stable Low Low High Decreasing Majority Laters Descending Reduction Decline Maturity Development Introduction 94 (2) BCG Matrix Question Mark Star Cash cow Dog 95 (1+2) BCG Matrix & Product Lifecycle BCG Matrix: an application 96 Mac Books iMacs HomePods Apple Tv 97 General Electric Matrix Competitiveness Area of Investment Area of Disinvestment HIGH MEDIUM LOW It is the “measure” of the main effort and sacrifice sustained by consumers to satisfy their needs. 98 (2) Price N. B. It is the “P” more influenced by external factors (competition in the sector) and that depends on the company's ability to manage the other three variables. There are no standard procedures to settle prices, but there are three different orientations that price policies: •Profit-oriented goals; •Sales-oriented goals; •Objectives oriented towards risk reduction. Risultati immagini per effort icon Risultati immagini per profit icon Price decisions are based on the long-term, since they refer to the phase of introduction and can influence the price throughout the entire lifecycle. There are two main strategies: 99 Proposal of a price lower than competitor’s products Proposal of a price higher than competitors’ products New product’s Price PENETRATION PRICING SKIMMING PRICING Risultati immagini per penetration icon Filter Icon | Mono General 4 Iconset | Custom Icon Design Price higher than market’s expectations •High unit contribution margin; •Low number of early consumers. Suitable products: innovative The firm can keep on establishing high prices SKIMMING POLICY Price lower than market’s expectations •High volumes of sales; •Reduced contribution margin; •High number of early consumers. • Suitable product: goods not differentiated from technical viewpoint, with higher competition and consumers with high price sensitivity. Over time, price is stable but contribution margin increases, since high volumes can produce economies of scale - Unit costs + profit PENETRATION POLICY The firm can choose to reduce prices when attractive segments lose their potential and can be re-targeted at broader segment 100 New product’s Price 101 BARILLA REGIONALI ORECCHIETTE 500 GR - Supermercato Maddalena 1,19 € BARILLA Le Specialita' Farfalle N. 265 Cottura 12 Minuti 500 ... 0,67 € BARILLA FARFALLE INTEGRALI 500GR 0,95 € Example: Pasta Market 1,80 € The main activities of distribution are: •Deposit at the end of the production process; •Transport; •Collection of to support transactions with customers; •Promotion and information communication with the customer; •Selection, assembly, packaging and adaptation of the product in the final phase of delivery to the customer; •Negotiation of the conditions of sale; •Execution of after-sales services (assistance, guarantee, maintenance); •Acquisition and management of the financial resources necessary to carry out the activities. 102 (3) Place: Distribution Distribution channels are a «set of institutions that perform the complex activities needed to deliver and transfer the product, with the related property right, from producers to consumers» CNDP Booking Distribution Svg Png Icon Free Download (#294020 ... Distribution channels permit firms to reach their market. The decisions related to distribution concern the definition of the activities that organizations carry out directly and indirectly. Direct channel Indirect channel Activities are managed without engaging external actors Producers reach consumers directly. (e.g. selling on catalogue, by phone, through emai) Some activities are entrusted to third parties. Every stakeholder engaged in one of the activities performs a different step of distribution channel. The more individuals are engaged, the more the number of intermediate phases in the channel increases. 103 The composition of Channels Producer Producer Producer Producer Consumer Retailer Consumer Consumer Consumer Retailer Retailer Stockist Stockist Agent DIRECT CHANNEL SHORT INDIRECT CHANNEL LONG INDIRECT CHANNEL 104 Distribution Channels Risultati immagini per supplier icon Agent Icon of Glyph style - Available in SVG, PNG, EPS, AI & Icon ... Business, coffee, retailer, shop, store icon 105 Example: Pasta Market Producer Retailer Consumer SHORT INDIRECT CHANNEL Business, coffee, retailer, shop, store icon Large-scale distribution •Hypermarket: more than 2,5 m² •Supermarket: from 400 m² too 2.500 m² Retailers for commodity goods Traditional point of sales The source/ sender (a firm or an organization) develops an encoded message (e.g. an advertising campaign) and send it through a given means of communication (television, press, front-office employees, sales staff etc. ) to the recipients (target-market). 106 (4) Promotion: Communication http://www.colonese.it/Immagini/ComunicazioneProcesso.jpg Sender Encoding Sender Decoding NOISE Receiver Code Code Channel Message Message Response Context of Sender Context of Receiver •1. Selection of Receiver •2. Selection of communication goals •3. Development of strategic planning • • 107 Communication Strategy 4. Budgeting 9. Definition of the standards for performance monitoring 10. Evaluation of effectiveness •existing consumers •potential consumers •acquired consumers •competitor’s consumers •suppliers •shareholders •employees •Salespersons •intermediaries •public institutions •public opinion • 108 1. Selection of Receivers In the target market Other receivers-stakeholders Public Service Icon: immagini, foto stock e grafica vettoriale ... (with different roles in the buying process) Depending on TARGET: • Encourage the demand • To inform the market • Persuade consumers to buy (to guide users’actions by indicating addresses, phone number, etc.) • Reassure buyers • To create or to strengthen the image of a brand/ product • To boost the institutional image of a brand To enhance the effectiveness of strategies, goals should be: • measurable • based on market research • addressed to a defined target • realistic • coherent with marketing plan • supervised periodically 109 2. Selection of Communication Goals 110 3.Development of Communication Plan (Strategy) • •Main goals related to the total strategy •Integrated set of communication forms for each stakeholders •Selection of the concept (creative idea) that should guide the content of the message •Selection of communication means and vehicles for each target • 111 4. Budgeting Based on: • marketing plan objective; • economic conditions of the market; • product category; • life cycle of the product; • distribution channels; • experience of competitors Budget size is calculated arbitrarily as: •% on sales • in relation to corporate objectives • similarly to the investments of competitors. P.S: Often the size of the budget is a fixed constraint. •• Advertising •• Sales Promotion •• Public Relations •• Sales persons (front-office employees) 112 5.Development of Communication Mix Strategy 6. Development of the Message Content based on: •target and marketing goals (tone of voice) •brand strategies (reputation, image, identity…repositioning) •stage of product’s lifecycle • • •8. Programming of times and modalities •9. Definition of standards for performance monitoring •10. Evaluation of effectiveness Specific measurable vehicles (newspaper, radio channel, television channel, websites) 113 7. Selection of Media Based on: §The kind of product §The features of market §The characteristics of communication Forms (advertising, sales promotion, P.R., salesperson) General means (television or press) •The set of forms (means, instruments) through which businesses can realize communication • ADVERTISING SALES PERSON SALES PROMOTION PUBLIC RELATIONS 114 Communication Mix Icone di pubblicità illustrazione vettoriale. Illustrazione di ... •The nature of product •The analysis of target market (size of market and geographical location) •Phase of the product’s lifecycle – 115 Communication Mix: main criteria push (targeted at retailers, and/or at sales personnel) •Channel strategies: pull (targeted at final consumers) Communication Mix Wheel 116 SALES PROMOTION •Mass communication •Impersonal •Targeted at consumers and retailers •For product revitalization in the phase of maturity or decline or to enhance users’ loyalty •Standard message •Rapid effectiveness •Nonconstant message •Absence of direct feedback Communication Mix Lever Man features of communication Pros Cons ADVERTISING •Mass communication(high size market). •Impersonal •For commodity goods in the phase of introduction •Targeted at consumers. •Standard and measurable message •Absence of direct feedback •High general costs 117 Communication Mix Levers Icone di pubblicità illustrazione vettoriale. Illustrazione di ... Salespersons •Focused one-to-one communication •Personal •Usually for manufacturing goods •Targeted mainly at consumers (retailers, too) • “Taylored” message for consumers •Direct feedback •High costs per contact. Communication Mix Lever Man features of communication Pros Cons Public relations •Mass communication. •Impersonal. •Srengthen brand image. •No direct costs • Reliability of message •No direct feedback •Not controllable/ measurable message 118 Communication Mix Levers FORMS MEANS VEHICLES Timing ADVERTISING •TELEVISION Česká televize: ČT1, ČT2, ČT Sport, ČT Déčko Nova Živé vysílání Prima Video Tv Noe Idnes Prime time, day time •PRESS Cesky Noviny, Hospodarske Noviny, Lidové Noviny, Mlada Fronta Dnes, Prager Zeitung Respekt, Tyden, Reflex Daily newspapers Magazine and specialized magazine (cars, cooking, music) •RADIO HitRadioCity Brno Free Radio 107 Europa 2, Express Radio Prime time, day time •Billboards and posters ------- One month, etc. •WEB (Banner, sponsored ads) Official website Blog One-three months •SOCIAL NETWORKS Facebook Youtube Instagram Linkedin Twitter Pinterest Planned posts (Three times a week/ one time a day) Content: texts, videos, pictures, tweets and hashtag) 119 Communication Mix: example FORMS MEANS VEHICLES Timing SALES PROMOTION •TELEVISION Česká televize Etc. Prime time, day time •PRESS See previous slide Daily newspapers or specialized magazines •RADIO See previous slide Prime time, day time •Telephone advertising •WEB (Banner, sponsored ads) E-mail Google sponsored link One month-three months •SOCIAL NETWORKS Facebook Three times a week, etc 120 Communication Mix: example PUBLIC RELATIONS • MEETINGS, FAIRS, EXHIBITIONS, TRADE SHOWS •WORKSHOPS, PRESS CONFERENCES •WORKSHOPS AND COURSES IN SCHOOLS AND UNIVERSITIES •AWARD AND CONTEST (e.g. innovathon, contest for students) •SPONSORED EVENTS (e.g. football games, marathon, music live shows) -Name of the events and organizers -City/cities in which the event takes place Date and planning of the event Duration of the event FORMS MEANS VEHICLES Content SALESPERSON AND DIRECT SELLING •EMPLOYEES •Monobrand stores •Front-office employees in direct points of sales •Assistance in E-commerce websites •Assistance in Livechat •Customer care & call centers •Stands in trade shows Kind of skills and competencies of the employees 121 Communication Mix: example 122 Age Breakdown (Social media users) •Brand strategic objectives Brand personality • • Real communication and visual signals: Brand Identity • FIT 123 Media Planning Off-lineßàOn-line •To enhance the exposure to brand’s messages; •To raise traffic on official «traditional» media (website, online and offline stores, blogs, social networks, applications, magazines, brochures, etc..); •To encourage and monitor (?) Word-of-mouth. •Receivers/Stakeholders: TARGET WHY? WHAT? TO WHOM? •To check performances: measurement HOW? •Communication mix: FORMS- MEANS- VEHICLES WHERE? WHEN? 124 Media Planning •Goals: DESIRED EFFECTS •Content: Tone of voice •Geographic context •Timing WHICH RESULTS? •Goals •Content •Target OWNED MEDIA EARNED MEDIA •Communication Forms (beyond «classical» ads) •Means: digitals (applications, mobile devices, etc) •Vehicles: links, banners, etc Payed media 125 Media Planning: off-line vs on-line The intensity and the extensiveness can vary based on the kind of platform selected and on the target 126 Social Media Plan 127 Example: Pasta Market press television radio Web Barilla: Etero Vende Meglio | OltreLaNotizia Official website Banners Food blog Banners Food App Banners Streaming TV Sponsored Ads on Social network Social media Specialized Newspapers- Channel https://www.youtube.com/watch?v=848kapapk8I https://www.youtube.com/watch?v=VoDiFxiJf7U https://www.youtube.com/watch?v=lz7pzn2nXQw CHAT SPOT ADOPTION ITALY RESISTS MEANS VEHICLES FORMS: ADVERTISING Mara Grimaldi margrimaldi@unisa.it ASVSA Associazione per la ricerca sui Sistemi Vitali THANK YOU. Questions? Comments? 128