Advertising
and Promotion (MKT621)
VU
Lesson
6
MARKETING
TOOLS
LECTURE
OVERVIEW
In
this lecture we will continue to
explain the marketing tools,
product life cycle
besides
introducing
the concept of SWOT
analysis. Furthermore we will apprise
regarding the
Marketing
plan, market demand and the
role of marketing and advertising
agencies.
MARKETING
TOOLS
Every
product has a life cycle
i.e.
·
Product
has a limited life.
·
Product
sales passes through
different stages.
·
Profits
rise & fall in different stages of
PLC.
·
Products
require different marketing,
manufacturing, financial & purchase
strategies in
each
life cycle stage.
·
Competitive
environment is different in every
stage.
·
Products
require different marketing,
manufacturing, financial & purchase
strategies in
each
life cycle stage.
·
Competitive
environment is different in every
stage.
STAGES
OF PLC (Product Life
Cycle)
1.
Introduction
2.
Growth
3.
Maturity
4.
Decline
SWOT
Analysis
1.
EXTERNAL
ENVIRONMENT ANALYSIS. (Opportunity
& Threat Analysis)
Macro
Factors Uncontrollable Social-
Legal-Economic-Political-Technology
Micro
(Task) Factors Direct Impact:
Customers- Employees- Competitors-
Distributors-
Creditors-Suppliers-
Other stake holders
2.
INTERNAL
EVIRONMENT ANALYSIS. (Strength -
Weakness Profile)
Basically
related to functional areas:
Marketing Finance
Manufacturing -Purchase -
Research
& Development. Information
Technology, Human resource - Leadership
Image.
MARKETING
PLAN
What
is the need of marketing
plan?
·
Provide
assessment of current situation &
position.
·
Focus
efforts in an identified
direction.
·
Give
clear cut performance
targets.
·
Identify
ways to achieve targets.
·
Allocate
resources.
·
Direct
all towards common
objectives.
Contents
& Structure
·
Executive summary.
·
Current situation.
·
Performance review. (for
existing product or service
only).
12
Advertising
and Promotion (MKT621)
VU
·
Key issues.
·
Marketing objectives.
·
Marketing strategy.
Marketing
Action Plan
1.
Target market
2.
Mixing of market variables (4
`P's).
3.
Responsibility of action.
4.
When & where the
action will be?
5.
How much budget for
each action?
6.
Projected profit & loss
statement.
7.
Controls.
8.
Contingency plan.
Marketing
Demand
Two
Tools for Estimating Market
Demand:
Qualitative
·
Buying intention
survey.
·
Sales force
opinion.
·
Panel of experts. Useful for
estimating demand for a new
product.
Quantitative
·
Sales volume.
·
Sales trend.
·
Economics.
ROLE
& FUNCTION OF ADVERTISING
·
Acquire
enhanced volumes of sales of products
& services.
·
Generate
awareness about
offerings.
·
Induce
trial of a new product &
service.
·
Motivate
& impress trade channels.
·
Change
perception & create
reassurance.
·
Influence
staff.
·
Support
sales promotional sponsorships &
public relations
activity.
·
Make
announcements in public
interest.
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