Marketing Planning - LBI23: Chapter 11 : Designing and Managing Integrated Mar...

Marketing Planning - LBI23: Chapter 11 : Designing and Managing Integrated Mar...:   MARKETING CHANNEL STRATEGIES When you you own a traditional brick and mortar retail store in an out of town location, with the help of  e-...

Chapter 12: Introduction New Market Offering

LATERAL MARKETING 

Introducing new market offerings involves the process of developing and launching new products or services to meet the needs and preferences of customers.

In most cases, some already existing products may combine to give one offering which comes out as a new package is know as lateral marketing. Lateral marketing is an firm of marketing where two brands with complimentary products or services come together to form a competitive advantage in the market. Most likely ideas are : 

1. Airline company and Airbnb. 

2. Health providers and health insurance

3. Mobile companies and Internet service providers.

4. Car brands and tyre companies 

5. Gas station and mechanic workshop

For the airline companies and Airbnb, when you fly to a new place one will need a place to stay, both complements each other. This increase the visibility of both brands and develop new customer reach.

Benefits of this type of lateral marketing includes :

1. Brand visibility

2. Reduced cost

3. More customer reach

4. Increased sales

5. More sales

6. Enhanced customer loyalty

7. Competitive advantage 

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management, Philip Kotler and Fernando Trias (2003) Lateral Marketing

Chapter 11 : Designing and Managing Integrated Marketing Channels

 MARKETING CHANNEL STRATEGIES

When you you own a traditional brick and mortar retail store in an out of town location, with the help of  e-commerce presence you apply the Pull channel strategy. The Pull strategy involves bringing the customer to where you are or to your product.

The Internet avails to producers a large pool of customers,If you have a new brand or your business is a start-up, pull marketing is your go-to choice to increase brand awareness and build a reputation. You can achieve a higher level of engagement with pull marketing because of its broader approach. 

In the Pull marketing strategy, the producers run marketing campaigns directly to the consumers online through SEO, social media, content marketing and advertising. The consumers compares and make choices online then go  to the retailers in search of the product. The Pull strategy aims to create customer loyalty. You will notice that over time the customers will come to the out of town location to find their product of choice.

HOW DO YOU COMPETE WITH LARGE RETAILERS

With e-commerce, it's possible for small companies to compete with large companies and to take on an altogether different personality if they so choose.

By operating online, being active on social networks and taking steps to raise brand awareness, they can present themselves as bigger. A company may be located out of town but by using the web, they can reach consumers anywhere.

Your blog, social media or web page  should have good user experience (UX) and allow the user to move seamlessly between channels, so they can order online for same-day store pick-up or interact with you via app.

In conclusion, your location or size does not matter when you have an online presence. E commerce has given small businesses a leverage to compete with big firms through the Pull marketing strategy. The retail shop makes the consumers come looking for their products of choice.

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management 

Chapter 10: Managing Retailing, Wholesaling and Logistics

 TRENDS SHAPING THE FUTURE OF SEAMLESS SHOPPING.

• Flexible ordering and pick-ups

With the current busy  and hectic programme of customers, flexible ordering and pick-up is beneficiary to the customers. These services offer convenience, flexibility and made to suit our everyday life. Getting groceries, running errands, ordering and pick-ups offer a hassle free experience. 

There are lots of benefits accrued from flexible ordering and pick-ups. They include:

• It saves time
• Saves money
• It's safer
• Helps people with mobility issues and disabilities
• Saying goodbye to staying in queues 
• Customized service 

Bottom line 

Ordering and pick-ups is actually a trend that has great benefits for the consumers ranging from flexibility, convenience, time saving etc. They are now the table stakes.

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management, James Durkin(2022) Good and Bad Marketing . Soren Kaplan (2018) Future Watch Report 

Chapter 9: Developing Pricing Strategies and Programs

 CONSUMERS PSYCHOLOGY AND PRICING 

Price is what a good or service is sold for. It is one of the marketing mix that produces revenue while the others produces cost. Pricing isn’t always as easy as setting a price the brand hopes to get back. It involves aspects such as demand and supply, cost of the product, its perception and value for the customer etc. 

A consumer will know if a price is too high, too low or on point based on previous experiences, from advertisement, from brochures, information from family and friends. Purchase decisions are made based on customers perception of the product's value.

By employing psychology, a brand may present a perception of discount or value using the "left digit effect". Making prices end in decimals give the consumers the idea that the price is affordable rather than it ending in whole numbers. €4.99 is seen as cheaper than €5

When a price is relatively lower than it's competitors, the good is seen as inferior or less quality. That's why brands should fix the price of a good in reference to other competitors.

Using celebrities and influencers to market a product gives consumers the perception that the product is of great value that's why a famous person is using it.

Another way psychology can influence pricing is by offering free products with purchase. It makes the consumer believe he is saving.

Setting a time frame to sell of products creates a rush for the product. It gives the idea that the availability of the product is limited.

Price-quality interference is when consumers use price as an indicator of quality for ego-sensitive products like clothes and perfume. The may actually worth less but because of the product being a symbol of luxury, more is paid.

Luxury products should not be discounted. These products are often seen as symbols of luxury and of superior quality. Also, by paying a premium price, have the idea that they belong to an elite group. Discounting such products may reduce the perception of value.

In summary, Pricing psychology is important to understand how people make purchases. A brand must understand the psychology of its customers to optimize profits, enhance customer's satisfaction and give consumers the sense of  value and exclusivity.

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management,Pricing Research Lab Sciative(2003) The Psychology of Pricing: How Consumer Behavior Shapes Pricing Strategies

Chapter 8: PRODUCT PACKAGING

 PACKAGING MATERIALS AND WASTE 

Over time, manufacturers has been looking for a more convenient way to deliver goods to consumers in safe condition. Packaging cannot be separated or treated in isolation in the production process. 

The importance of packaging cannot be over emphasized. The attractive nature of the packaging draws customers attention and even goes to the extent of making the buy the product. Packaging gives some the product shapes and forms. It guarantees safety and makes the product handy to me moved about.

Uses of packaging determine the kind of forms it comes in and in what material it's made. Packaging appears in different forms like the card boxes, tin cans, plastic bottles, paper bags, glass containers, foils , jute bags, crates etc. Materials used in making these packages include woods, metal, plastic and glass. 

Some of these materials are environmentally friendly and recyclable while others remain very difficult to be disposed as waste causing menace to the environment.

As consumers become more conscious of the effects their choices have on the environment, there is a growing demand for sustainable packaging solutions. Studies have shown that consumers are willing to pay more for products that are packaged in an environmentally-friendly way. Recyclable packaging, resonates with consumers who want to minimize their ecological footprint. Brands prioritizing eco-friendly packaging can attract environmentally-conscious consumers and position themselves as responsible and appeal to consumers who prioritise sustainable practices.

Brands can incorporate sustainability by going for biodegradable or compostable packaging materials. These materials break down naturally over time, reducing the environmental footprint. Furthermore, brands can explore the use of  recycled or upcycled materials, to further minimise waste. The use of minimalistic packaging can be used ensure reduction of waste. Lastly, consumers should be educated on the proper disposal of packaging materials 

In summary, while choosing the perfect packaging materials for their products, brands should consider environmentally friendly and recyclable materials that are disposable. This reduces waste and at the same time attracts customers. 

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management, Dr. Bartholomew Johnson Sebbeh(2021) The Impact Of FOOD PACKAGING ON THE ENVIRONMENT AND WAYS OF MANAGINGWASTES IN SELECTED GHANAIAN COMMUNITIES

Chapter 7: DEALING WITH COMPETITION

 Competition in business is inevitable. It is the driving force in business. Competition is the contest between two companies who produce similar goods and services and they Rather the same consumers. Each company is trying to stand out with the best goods and services . There are different types of competitions but we'll be focusing on the competition between a company and another company cloning an existing product which may be known as direct competition. Reasons company clone a product includes: lack of innovation and of course it is easier to copy a product than to start from scratch. 

How will you react to a company cloning my product?

For illustration propose, I have a company in the food industry and I make a snack product and I notice another company tries to clone the product.  Same taste, same packaging same logo. How will I approach the situation as a business man? 

• Improve on your product quality

I will analyze the situation and know  the other reasons  for cloning the product which high sales of the pre existing product is one of them. Here I will employ the Product marketing mix. I will improve on the quality of my product adding secret recipes. Design and branding will also be stepped up.

• Set your price

Application of the Price marketing mix might be difficult here because the  company cloning the product might have skipped some money saving steps that might make them have a cheaper product. The price should reflect its value

• Place matters

Knowing the place where you have advantage: (online or offline) is key. Market your product more to your Target audience, it should be more available and accessible. Boost the distribution strategy.

• Plan your promotion

Your promotion is your communication channel to educate your consumers about your brand. You'll inform them of  improved quality and change in design. This is a medium to inform them of the value you offer different and better than that of your competitors.

The bottom line is, the 4ps are the key elements involved in planning and competing in marketing a product or service, and they interact significantly with each other. Considering all of these elements is one way to approach to a comprehensive marketing strategy. it’s essential to understand your competition, stay ahead of trends, and continuously improve your products and services to remain competitive. 

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management, James Durkin(2022) Good and Bad Marketing .

Chapter 6 : MASS MARKETING: DEAD OR STILL VIABLE

 

Mass Marketing is a one-size-fits-all approach adopted by companies to market their product to a large audience. It is a process of appealing to a large market rather than a targeted group. 

Years ago , mass marketing uses medium  like billboards, print media, television and radio advertising to reach out to million of customers worldwide was cost effective and increased brand awareness. It was a good strategy then but with the emergence of social media, high flow of information and technological advancement, we are now moving towards a world where customer's choice is key and marketing is customer oriented. Customer prefer a more personalized approach, it makes them feel important. Hence, mass marketing was great but fail to live up to the demands and the transition of people from conventional to new means of marketing.

Large companies like Coca-Cola and Colgate with products of high consumers necessities still adopt this method of marketing because they are sure of high demand from the consumers end. Small company may not want to risk it because their product may not be fully accepted. On the other hand some companies like Samsung uses both strategies, holding the old while welcoming the new.

In conclusion, the answer to the question is No, mass marketing isn’t dead, but it’s no longer enough, does not support all types of business and does not have a bright future. It’s important to adopt to today’s realities and to keep on evolving ones self to change with the current times.

References: Ilias Avgeropoulos(2004) Marketing Planning power point  , Kotler (2000) Marketing Management, James Durkin(2022) Good and Bad Marketing .

Chapter 5: CONSUMERS BUYING BEHAVIOR

 We make buying decisions nearly everyday of our lives and don't give those decisions thoughts but those decisions are very important to marketers. It helps them know why we buy and how we buy those products, which in turn helps grow brand revenue. 

Two or more consumer make up the Consumers Market while Consumers buying behavior can be referred to as the actions we take while buying a particular product or service.  This can be influenced by certain factors like :

• Cultural factors
• Social factors
• Personal factors
• Physiological factors

Cultural factors is has the most influence on consumer behavior. Cultural factors include the basics values, needs, perceptions  learned by a consumer by important people around them. Within the cultural groups there are sub groups that are broken down to religion, caste and social class this affects consumers behavior. For instance a Muslim cannot purchase alcoholic beverages because of his religious beliefs.

Social factors plays a strong role on consumers behavior. Humans are social beings and the try to imitate those around them. They try to be socially accepted in the society. Social factors like the family is significant in shaping buying behavior, a consumer continues to patronize a product his family has been using right from childhood. Another social factors like role and status affects how senior officer's  buying behaviour as against an other rank soldier in the army.

Psychological factors like feelings, motivation, learning, attitude and beliefs influence buying choices. One of the most widely accepted motivation theory, Maslow's Hierarchy of Needs which states that a buyer's need is arranged from the most basic lower level deficiency needs  to the highest level growth need. Consumers will always start from the psychological needs that include shelter, water, food.

Personal factors like age, occupation, lifestyle and personality also plays a great role in buying behavior. A Gen X may just buy a phone with basic functionality but a Gen Z will surely go for a sophisticated model this is due to their age difference and what they actually expect from a phone. 

In conclusion, we all have different reasons why we buy some products and how we buy them. Marketers must have these in mind so as to make strategic marketing decisions.

References: Ilias Avgeropoulos(2004) Marketing Planning power point  , Kotler (2000) Marketing Management , Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffmang,(2023) Principle of Marketing (

Chapter 4: BRAND LOYALTY IN A DIGITAL ERA

A brand is one of a company’s most valuable assets. It’s how a company is instantly recognized  and often the reason customers patronize again. 

Brand loyalty has evolved from a simple transactional relationship to an emotional connection between consumers and brand. It's an environment where customers feel valued, connected, and engaged.  According to Kotler and Keller, brand loyalty reflects the intention to purchase a particular brand rather than its competitors, as well as provide other positive benefits to the brand, such as brand advocacy (i.e. word of mouth). 

WHY DOES BRAND LOYALTY MATTER

• Increased chances of repeat business: An existing customer is mostly likely to repeat purchases of a particular brand based on the perception of higher quality and better service.
• Enhanced revenue : studies shows that 65% of most companies revenue comes from repeat purchase from existing customers 
• Improved brand awareness : a loyal customer is a brand biggest promoter,the provide word of mouth marketing, recommending brand to family and friends.
• Cost effective:Acquiring new customers is  more expensive than keeping existing ones.

HOW TO IMPROVE BRAND LOYALTY 

Brand loyalty can be improved through the following means:

1. Consistency
2. Improved customer service
3. Loyalty reward programs 
4. Referral programs
5. Personalization and privacy 
6. Utilize customer relationship management tools

In conclusion, Brand loyalty is key to profitability since repeat purchase from existing customers make up a large portion of most companies' revenue. Always pay attention to their needs, personalize communications, maintain quality, use new technologies, and maintain decent customer service. All of these will help you get your brand loyalty to the peak.

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management , Digital School of Marketing

Chapter 3 : MARKETING TRENDS

 Everyday, we notice the world's continuous changes (positive and negative) which directly affects consumers perception of goods and services (how they consume and choose brands).This information is gathered with the help of  Marketing Intelligence System.

A typical consumer may tell you what his current needs are now but cannot predict what he wants five to ten years from now that is as the world changes, technology advances, consumers expectations changes. Consumers values over a particular period is known as trends. 

What are marketing Trends 

In today's fast-paced world, companies must adapt and embrace latest trends to remain relevant, competitive and take up new opportunities.Being up to date with these trends can help create successful marketing strategies.

Artificial Intelligence as a Trend

With the fast pace in advancement of technology, the role of A.I in our daily lives is also on the increase. With the growing needs of consumers seeking personalized experience, By  gathering and analyzing vast amount of data, artificial intelligence enables brands to better understand their target audience to provide tailored solution.AI provides timely interactions with consumers, which ultimately results in increased customer satisfaction and loyalty.

A.I - It's implications in Business and Marketing

Businesses are leveraging AI to deliver tailored solutions. From targeted marketing campaigns to customized product recommendations, round the clock support, personalization enhances customer satisfaction, drives loyalty, and increases conversion rates.

Amazon, a giant  in the e-commerce business and also a pioneer in the  use of AI technology for its marketing strategy. Here are some key points about Amazon's use of AI in marketing:

• Product Recommendations: Amazon's AI-powered recommendation engine suggests products to customers based on their browsing and purchase history. This has significantly increased sales to resulting in customer satisfaction. In fact, it's estimated that 35% of Amazon's sales come from product recommendations.
• Search Engine Optimization (SEO): Amazon's search algorithm uses A.I to understand the context of a search query and display the most relevant products. This has helped Amazon become the go-to destination for online shopping.
• Advertising: Amazon uses AI to target ads to customers based on their purchase and browsing history. 
• Alexa: Amazon's virtual assistant, Alexa, is powered by AI and has become a major player in the smart home market.

In conclusion,As the role of AI technology in marketing continue to grow, marketers will be able to deliver personalized content at unprecedented levels of effectiveness.

References :Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management ,AIContentfy team (2003) The Future of Marketing 

Chapter 2 : Developing market plan

As against the old era where the main focus is on selling what the company produces, the new economy is mainly about Marketing where customer's value is key(value is what customers derive at a cost).

Due to the abundant choices at the consumer's disposal, the goal of a business is to organize all marketing efforts towards providing customers value at a profit which is also known as Marketing Plan.

• MARKETING PLAN 

A market plan involves two key processes: the Strategic (process to identify the goals of the market plan) and the Tactical process ( ways to achieve the objectives of the market plan). 

ANALYZING THE ELEMENTS OF A GOOD MARKETING PLAN : THE CASE OF A PROSTHETIC PRODUCING COMPANY.

1. The prosthetic company plans to aid the people living with disability.
2. The company analyzes it's strength, weakness, opportunity and threats. It's strength and opportunities include the growing demand of prosthetics. While it's weakness and threats can be generalized into high cost, expertise and competition.
3. Customers are those with missing body parts that would want to replace them.
4. Market entry is making prosthetics look and work exactly like a body part with enhanced technology. 
5. The company's expected to have a growth rate of 5.4% in the next four (4) years.
6. The percentage of profit is allocated to marketing campaign. 
7. Feedbacks from customers, medical professionals, insurance company are put together to have an edge above competitors.
8. Online and in-store sales are considered for the sales of prosthetics. Sales through hospitals, healthcare providers are great channels of marketing.
9. Each marketing activity is monitored through various methods such as web traffic , database etc
10. Market efforts are evaluated to see if objectives of the business are fully met.

In summary, A good market plan is based on comprehensive research and proper evaluation to meet company's objectives.

References :Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management 

Chapter 1-Intro to Marketing Planning

•  MARKETING 

 Marketing is the organizational role and a series of procedures aimed at generating, conveying, and providing value to customers, while also overseeing relationships for the interest of the organization and its stakeholders.

• CHARACTERISTICS OF THE NEW ECONOMY

The new economy is the transition from a manufacturing-based economy to a service-based economy, and has been mainly driven by new technology and innovations.This new economy gives the customer plenty of power when purchasing goods and services, variety to choose from and having adequate information of desired products. On the other hand it gives companies information about what the customer really wants, improving quality of service at less cost.

• MARKETING AND SALES

Marketing and sales might look the same but are pretty different. They are targeted at achieving different goals. Marketing is long term and focuses on the interest of the customer. Trying to make the company make what the consumers need. While sales is short term and focuses on the needs of the company. It aims at making the consumers like what the company makes.

Sales convert products into currency, while marketing is the approach to meeting and fulfilling customer requirements.

Does marketing create or satisfy needs?

Marketing seeks for existing consumer needs and finds the best way to satisfy them.

• MARKETING CONCEPT 

In a bid to satisfy preexisting needs, Marketing answers the following questions:

For whom (your target market), for why (for consumers needs), how(through integrated marketing) and why( for profitability)?

If the company fails to answer any of these questions, they leave their customers behind which will bring about less sales, increased customer disatisfaction.

A clear example companies that forgot about their customers is the INTERNET EXPLORER. It led to its retirement in 2022.

References: Ilias Avgeropoulos(2004) Marketing Planning power point  , Kotler (2000) Marketing Management