Marketing Tactics Flashcards
Marketing tactics
4PS:
- Product
- Place
- Promotion
- Price
Product
Creating value by satisfying need or solving a problem.
Product levels
- Core benefit: benefit the customer is really buying
- Basic product: elements that deliver the benefit
- Expected product: attributes normally expected from this product
- Augmented product: attributes that exceed expectations
- Potential product: possible upgrades the product might undergo
Types of products
- Nondurable goods
- Durable goods
- Services
Promotion
Communicating with customers to influence their behavior.
Types of promotion
- In-store
- Contextual
- Digital
- Advertising
- Direct
In-store promotion
- Promotions
- Placement (POS)
- Promoters
- Sampling
Contextual promotion
- Events
- Sponsorships
- High-traffic areas
- Sampling
Digital promotion
- Display
- Search
- Social media
Advertising promotion
- TV
- Radio
- Billboard
Direct promotion
- Mailing list
- Catalogue
- Telemarketing
- Personal selling
Consumer communication modes
- Advertising (company-led): low credibility, high cost, high control
- PR (media-led): medium credibility, medium cost, medium control
- Word of mouth (consumer-led): high credibility, low cost, low control
Planning a communications campaign
6Ms:
- Mission: what is the objective?
- Market: to whom is it adressed?
- Message: what are the specific points to be communicated?
- Media: which vehicles will be used?
- Money: how much will be spent?
- Measurement: how will impact be assessed?
Place
Creating a pathway from producers to consumers
Push strategy
Uses producer’s sales force, trade promotion money, or other means to induce intermediaries to carry, promote and sell product to consumers.
Pull strategy
Uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries, thus inducing the intermediaries to order it
Distribution modes
- Exclusive: severely limits number of outlets
- Selective: relies on only some of the willing outlets
- Intensive: places the product in as many outlets as possible
Multichannel marketing
Use of two or more marketing channels to reach customer segments in one market area, targeting either different segments or different need states within one segment.
Integrated marketing channel system
Consistent selling strategies and tactics across multiple channels.
Omnichannel marketing
Multiple channels work seamlessly together and match each target customer’s preferred ways of doing business (e.g. online and offline).
Price
Capturing a part of the value created for customers.
How to capture value?
- Sell goods
- Sell services
- Sell subscriptions
- Charge commission/transaction fees
- License technology/brands
- Leverage advertisement
- Leverage sponsorships/donations
- Hybrids (e.g. freemium)
- …
How to set prices?
- Princing objective
- Customer perspective
- Company perspective
- Competitor perspective
- Feasible price range
- Pricing method
- Price adaptation
Pricing step 1
Pricing objective:
- Maximum current price
- Maximum market share
- Maximum market skimming
- Positioning statement
- Survival
- …
Pricing step 2
Customer perspective:
- Reference prices
- Price endings
- Price-quality
- Demand elasticity
Pricing step 3
Company perspective:
- Fit to marketing strategy and tactics
- Cost structure
Pricing step 4
Competitor perspective:
- Identify competitors and substitutes
- Gather competition’s costs, prices, offers
- Arrange in comparable form
- Predict possible reactions
Pricing step 5
Feasible price range: high price > ceiling price > customer’s assessment of unique features > orienting point > competitors’ substitutes ‘prices > costs > floor price > low price
Pricing step 6
Pricing method:
- Mark-up pricing (cost-based)
- Value-based (perceived or actual)
- Positioning-based (premium, lowest…)
- Going-rate (market-based)
- Auction-type
- …
