MARKETING APPROACH
I) INTRODUCTION TO THE CONCEPT OF MARKETING:
History: Industrial Revolution to the birth of marketing.Priority is first given to the production face a chronic shortage of consumer goods (supply-side economics). At the beginning of the century, is mass production (Fordism Taylorism applied). The 1929 crisis (depression) creates a demand economy (Keynes). The evolution of purchasing power will lead to mass consumption. It then moves progressively from a supply-side economics to demand economy. The end of the war boom coincides with the market saturation of the first equipment, increased competition, focus on the sale (a good product always sells). Marketing has evolved from these developments, the consumer becoming the commercial center of reflection.
Notes:- The supply sometimes creates its own demand: the case of products fads: pin, pogs, yo-yos from Bandai, products with the release of a film ... It is also the case of supply of television programs or medical care that can condition the request).Expectations underlying needs and therefore demand. Consumption is the visible part of the request can be satisfied for several reasons: insufficient purchasing power (the concept of effective demand), mismatch (eg from ADSL which helped boost Internet or TNT ). Marketing is to match an offer with a solvent market. So there is a supply and marketing of a marketing application.
II) CONCEPT AND PRINCIPLES OF MARKETING:
Definitions: Ministerial Order 1987, all actions to identify needs and to adapt and continuously the production and marketing. Mercator (Lendrevie & Lindon): all methods and means available to an organization to promote in the public interest to which it, attitudes favorable to his objectives.
Principle to the consumer at the center of business thinking.Marketing is a unifying element of the shares of the company as it mobilizes all. It is also a state of mind: we must reverse the logic of the company and produce that meets a need, an expectation (the concept of corporate mission: relationships between needs, expectations, demands, potential markets and actual example of the Build to order practiced by Dell or Nike), hence the need for an integrated view of business problems. Marketing is finally a scientific approach requiring the use of tools: computers, statistics (surveys) ...
The scope of marketing has widened the sphere of services but also to non-trade areas: local government, political parties, association (humanitarian), see definition Mercator.
Curriculum Vitae and marketing approach.
III) THE MARKETING APPROACH:
It is to study the market and drive the marketing levers to four levels: product, price, communication, distribution (PPCD).The first step is gathering information on market needs and competition.The marketing mix marketing policy embodies the company to four levels of action which he proposes PPCD dosing (concept of marketing mix). The marketing process must be consistent. Examples of inconsistencies: a product launch price sold off; choice of distributor does not comply with the product image.
IV) RESULTS, LIMITATIONS, PROSPECTS:
All companies have a marketing approach. Some continue to favor production problems because leaders often have a technical background. But there is the presence of marketing in many directions and business development services, information management and communication ...
Galbraith denounced what he called the reverse channel that the company may require a product to the consumer, to artificially create the need.Consumerism or consommaction (Ralph Nader in 70 ') developed in response to the risk of handling: consumers respond by organizing themselves, companies are always looking to win back their customers, to shift their marketing approach (creating specialized services: services after purchase from Sony, CRM: customer relationship management or CRM).
Today, the law of supply and demand is contested, the request is not always sensitive to price in the same proportions (elastic demand / price), so a promotion may lose revenue and he must also know how to manage the scarcity of a product.
We are witnessing the emergence of the concept of social marketing (markéthique).
The role of the marketing function is threefold:- Marketing research: upstream (include a market, identify opportunities, identify customer) and downstream of the action.- Strategic marketing: brand, communication, price, product, etc..- Operational marketing: implementation of tools (advertising, direct marketing ...).
Today, the consumer is saturated for Proposals (hyperchoice) and has more and more difficult to express the need, he buys the sense of trust, the difference, security (etymologically, means also consumare believe), scenarios of life (just do it!). Marketing is therefore first the customer relationship (CRM: Customer Relationship Management or CRM). Indeed, it is five times more to win a new customer than to retain an old one (important word of mouth ...).
The consumer becomes part of the marketing of the company and contributes to the creation of value: it can engage in the design of a new product, for example by seeking, through the Internet, to define product features.Satisfy the need to put back in line with what it is to be (we find the principle of reverse supply chain) brand, which allows to formulate the need for it then takes an even more important. We must transform the consumer brand ambassador.
Market research
I) PURPOSE OF MARKET RESEARCH:
This is, of course, know the market, the environment, the consumer. To do this, it should collect static information (ie documentation), but mainly to give an operational sense (the concept of information-action). This is the information system marketing methods and tools are many: economic intelligence, quantitative studies, qualitative, documentary.
II) SOURCES OF INFORMATION:
Internal sources: sales analysis, customer lists, vendor reports, letters from clients ...External documentary sources: organizations (INSEE, trade unions, CREDOC: research and studies center living conditions, Chambers of Commerce, CFCE, trade press: Factory new databases: all information searchable by topic)Primary sources of information should therefore create: quantitative studies, motivation studies, market test.
III) TECHNICAL EDUCATION MARKETING:
1) Quantitative studies:
They answer the question: who are the consumers, how are they, what are the competitors and their market shares.
Is done primarily by survey, the survey is a photograph of the study population, a questionnaire is therefore proposed that a representative sample of population.
The sample can be made: Random: the probability or random sampling:- In drawing lots in a table of numbers, eg 20 clients on 800 randomly selected clients.- Polls cluster: all persons belonging to the same subset (a home, a building, a railway compartment ...).- Multi-stage sampling: draw lots for a university, a faculty, an academic year, a student. Empirically:- Survey by quota: the sample is constituted so that it is a model of the population is kept in the sample the same distribution (by age, gender, income, CSP ...) and in the parent population.- Method of routes: cash out every 10 minutes for example.
The parameters of a survey: the sample size N does not depend on the size of the parent population but on the accuracy and dispersion of the population. It increases with the heterogeneity of the population and with the desired accuracy: N> 4 * (standard deviation) ² / (absolute error) ².Example: we want to know investigate the use of detergent to 0.4 kg by the knowledge that the average is 30 kg / year with a dispersion of 5 kg, or roughly 5 kgs: N sample should include at least 625 people.Note: you can use a chart to measure N.
The sample panel or permanent. There are panels of consumers, distributors, prescribers (doctors, architects ...) regularly interviewed and they can follow the evolution of consumption, consumers' awareness of advertising campaigns, to identify the type of profile consumer, to help market segmentation, and analysis on the quantities purchased by the statistical unit, the number of buyers, the penetration of products. We can also analyze the effectiveness of a grid.
card: It is designed to test hypotheses, to provide information and honest answers. It should be clear, precise, structured and easy to administer. Its length should not exceed from 30 to 40 questions and requires less than half an hour. Questions may be closed (yes / no), multiple choice, open (free).NOTE: Do not ask questions as we posed to the self.The administration of the questionnaire is the subject of sorting flat (number of responses to a given question) or cross (linking of multiple variables).Note: there is software management questionnaires (SPHINX).
2) Qualitative Research:
They aim to understand and analyze consumer behavior, identify their criteria. We proceed by individual interviews that allow greater depth, or group interview more conducive to certain sensitive topics or creativity (RPG). The predictive power of knowing the personality of the consumer is limited, however.
Analysis of consumer behavior:
The behavior is the result of motivations and constraints of the individual. It manifests itself at three levels cognitive (what he thinks), emotional (which he loves) and conative (which it does). The first two are relatively easy to influence, particularly through advertising. The conative stage, which is intended to act, is more difficult to steer and is, for example, direct marketing (example of online shopping on the Internet).The explanatory variables are the behavior of an individual nature or sociological. The purchase is the result of a process through the identification of need by the consumer (hence the role of communication), the search for information (sales force, magazines, advertising, mouth of mouth) and then evaluating the different options available to him. Various factors affect the buying process in different situations such as the risk perceived by the consumer, the variety of the offer or the pressure of time.A selection criterion is said is important in determining when consumer choice, it is discriminatory as it allows differentiation of the product to the consumer.
The choice of a product by the consumer can be done:
- By weighting the different criteria for each product, the product used is that which gets the best weighted score (compensatory or additive model).- Either Product obtaining the highest score in the criterion considered most important (lexicographic model).- Either the product (s) (s) whose rating is above a minimum threshold (conjunctive model).
Consumer perception reflects the filtering of information according to its value system.Note: Industrial buying meets a specific process involving the user, a purchaser of a separate decision maker, but also prescribers and advisers and we talk about industrial marketing.
Consumption, an expression of social differentiation:
The consumer is influenced by certain cultural and social factors:- Culture (critical in international marketing. Example: hygiene in EU).- Social class: the importance of CSP and income (expenses of belonging, standing, ostentatious behavior: the social hierarchy is expressed in purchasing power, there are places to buy and discriminant).- Lifestyles: there are stereotyped behaviors (business, personal values, opinions). These styles reflect the social evolution of societies and ways of thinking, in reference to values (eg, sensuality, asceticism, conservatism, adventurism, rigor ...). Horney proposes a classification of consumer personality: positive, aggressive, detached, for example.- Reference groups: the group is over innovation and behavior and has a normative influence (adolescents) and informative (information dissemination to a professional industry).- Opinion leaders: they set the standards for use by their status, ability, charisma.
Needs and motivations of the consumer:
The gap between the desired state and the state felt was the source of motivation.The motivations may be of hedonistic (enjoy life), Oblates (doing good) or self-expressive (to shine).In developed societies, the needs can be prioritized, for example along the lines of the pyramid of Maslow.Rules of analysis:- Our behavior is governed by unmet needs.- You can access a higher level of need after satisfaction of lower level.Note: Note the iterations between the needs of individual and group type.A need is available in many components. In general, the act of purchasing meets several needs simultaneously. A similar requirement could be met by different products.
Households and consumption:
The collective buying meets a complex process because a household is characterized by a single budget and allocation decisions between different family members need to know to take into account (the role of children).
There is a significant change of the coefficients budget.
Tendency to shift from the 80's: social conformity research + escape ("limited integration").
There is an interclass social mobility (living beyond its means).
IV) study the market:
1) The different markets:
The company's market consists of buyers of the prescribers (originally purchases), competitors and different environments (technological, cultural, economic, demographic, legal ...)We distinguish between upstream markets (markets for factors of production) on which the applicant company (labor demand) and downstream markets on which it is competing with its supplier of goods and services.The market is broken down into current market (business + competitors) ~ market (including Consumers Not Related).
2) The types of contracts:
Markets for consumer goods (FMCG: Food, durable: appliance, automotive, image products: clothing, luxury ...). Industrial markets: buying process specific role of prescribers. (Industrial marketing).Procurement of services: intangibility, lack of storage, distribution and role of the brand.Agricultural markets: large number of suppliers and consumers, price fluctuations.International markets: strategic aspect. International Marketing (4P + PR + lobbying)
3) Catchment area:
This is the area on which markets the company has a direct appeal. this defines isochronous curves, each characterized by an attractive intensity (see also the concept of goodwill).
4) Market share:
It is equal to the ratio of the company's sales to total sales of all competitors in a given market. Note: market share and growth rate.Exercise: calculation of market share, related to market growth.
5) Market structure:
Segmentation of a market:
Segmentation is a marketing division of market segments based on criteria more or less empirical answers to two key questions:- What is the ideal target for our product?- What new products available for a particular target identified?Principle is to divide the total population of a market (potential customers) in that segment can be considered homogeneous and on which we can develop a specific trade policy.I1 are three methods of segmentation:
- On the benefits sought, according to the importance that consumers place on different product attributes. I1 is then positioned competition in different segments and target action.
EXAMPLE: snacks in the U.S.
- Segment Description:
Principle: we seek the relationship between a dependent variable (sales, for example) and the explanatory variables (segmentation criteria).
These criteria are: geographical (country, region, city, type of habitat, climate), demographic (sex, height, weight, age, nationality, religion ...) socioeconomic (income, CSP, education, number of people at home ...), behavioral (purchase frequency, brand loyalty, volume average purchase ...), personality (socio-styles)
- Segmentation Sociocultural:
Based on the study of lifestyle (interests, value systems ...). See above, the study of the consumer.Note: there are European lifestyles.Example: The demand for food French abroad.
- Segmentation Rules: The segments must be measurable, useful (profitable) for the company and accessible (by advertising in particular). The criteria must be relevant, for this we use techniques of discrimination (Belson method):
Note: For industrial products, we can use specific criteria of size, purchasing organization, technology ...
The types of consumers:
It is to establish the typical profile of the consumer to refine its trade policy.Addressed more generally to customers of the company rather than prospects (aggregative approach which involves posterior to group consumers with behaviors).Examples: the election, the French investors.
Note: Today, segmentation is often based on the typology of consumer brands try to follow consumer groups unstable. The segment gives way to the network where the appearance of a marketing "situational" supposed to meet at different times of the consumer's life: ethnic marketing, senior marketing, brand "chameleons" marketing frustration.Problem: trying too hard to segment and differentiate, the offer may become unreadable.
Positioning:
It is to locate the product or brand in its competitive environment to increase its potential for contrast. The consumer, in fact, require clear benchmarks, especially since it spends little time with the purchase (the case of supermarkets). When the product is installed on the market (mature), the position can be differentiated, and for this it is necessary to identify the various competitors of the product and the characteristics of each as perceived by the consumer through semi-structured interviews. These may include various components of the need or the qualifications of the product compared to its target. This is followed by establishment of a perceptual map (mapping technique) with two axes whose characteristics are determined by the target and the qualifications of the product (components of need). On this map include all brands and you can locate the ideal product; the position deviation can be reduced. We can also develop new products on virgin land or introduce new criteria.Note: position is a product strategy (see below). It is expressed mainly through advertising. Repositioning involves a change of image of the product whose cost is often high.
Example of positioning: the brands of whiskey and the automobile market (such as the Renault Logan)
BUSINESS STRATEGIES AND ACTIONS
Reminder: The marketing mix is intended to set the trade policy of the company at four levels: Product, Price, Distribution, Communication.Note: we use the mnemonic formula EMC ² (for Environment, Market, Consumer) to highlight the importance of the consumer in an environment and a market.
I) THE PRODUCT:
Concept of Product: product can be considered, all that can be offered on a market to be noticed, acquired or used to satisfy a need. It is also a promise made by the company to meet the need, so it's a concept as an object or a specific service, hence the importance of intangibles related as the mark or elements such as packaging material.Notion of métaproduit (all product / services or industrial solutions for example).
Product analysis of the company:
Each product has a specific life cycle. It should be positioned on each product's life cycle because the marketing priorities are specific to each phase. The company's priorities are different depending on the place the product in its life cycle. The expected decline of a product implies the need for the company to hold a portfolio of products or activities, finding a balance marketing and finance. This also determines the innovation policy of the company (note the risk of "cannibalization" of these products).Note: there is a tendency to shorten the cycle time (product ephemeral fads ...)
Another analysis tool and strategic marketing: BCG matrix (Boston Consulting Group) is conducting a strategic segmentation in different Strategic Business Units which are then positioned on a matrix growth rate of the sector / market share.A strategic segment consists of a product (or product family or line), a specific clientele, competitors clearly identified and its own organization. This is a unique combination of key factors of success.Synergy should be zero between two different segments.Note: The market segments can be defined within the strategic segments but if the segmentation is too fine, the segment merges with the marketing segment, for against, if it is too general, the segment coincides with a branch or an industry.Comparing segmentation and strategic marketing.Segmentation strategy includes the company's activities into segments or strategic business areas (DAS or SBU), which allow positioning of the offer of the company in three directions: the products (more or less simple or diverse) the market (more or less local or global) and technology (more or less simple or complex).Segmentation can be done:- Based on key factors of success: the strategy must be specific to each segment.- Based on experience curves for each activity.- According to the responsibilities (a manager / segment).- According to the market (same marketing segmentation).- Based on the interactions between different segments: the company must be able to disengage from a segment without affecting other segments.- According to the missions, that is, responses to consumer demands (eg in confectionery products pleasure, well being, health, leisure).- Based on the lines of communication of the company.- According to the distribution channels (eg, deli meats cut or prepackaged)It's about finding the common denominator between the activities that can be grouped within a single DAS, the allocation must be unambiguous, otherwise it is necessary to redefine the contours of the DAS.Example of strategic segmentation in the paint industry.Note: the emergence of a new technology involves a repositioning of the DAS (example of DTT).
Strategic segmentation and organization: It should include the strategic segmentation in the organizational structure by finding the best match between Strategic Business Area and organization. One can also consider a dual organization (organizational structure and strategic).Note: the segment is often a posteriori, hence the paradox of the segmentation, a segment appears, in fact, both as the result of a strategy and a prerequisite for the formulation of the strategy.
The BCG Matrix has both an interest in marketing (positioning) and strategic (identification of strategic directions: exit dead weight, look for the leadership dilemmas ...). One can observe a correlation between phases of the cycle and Strategic Business Area of the matrix.Note: there are other tools for portfolio analysis (ADL, McKinsey, LCAG, PIMS). All together a positioning of the company according to its strengths and weaknesses with the opportunities and threats in the economic environment.Paradox segmentation: the segment is often a posteriori. The segmentation is both the result of a strategy and a preliminary analysis in the formulation of that strategy.
Actions marketing 'product'
To develop a range: a short range allows you to concentrate on a few products (skimming strategy), a long range allows better damping investment, better allocation of risk (market penetration). Examples: luxury goods, automotive ...
Develop new products: there are several degrees of innovation: the creation, enhancement, imitation of solutions and implementation processes.Innovation can be the result of research of the company but access to new technologies can also be done by purchasing license for a patent, by buying corporate partnership.Innovation is a competitive advantage: it is a form of competitive differentiation. Process innovations can also reduce manufacturing costs.The launch of a new product involves the following successive steps:New product idea, selection of ideas, product design, prototype, test, development.Notes: It is rare (one out of ten) whether the leader who innovates (risk of cannibalism among products) Be the first is not a guarantee of sustainable leadership: it is better to come second with a better offer, knowing that the failure rate is about 50%.Paradox: to renew the appeal of the brand through innovation may still pollute the existing one. You should know simplify the offer to make it more visible (eg TV channels, toothpaste, press ...).
To develop a brand: the brand is the set of elements used to identify and differentiate the product. This is the signature of the business it can be a name, term, phrase, an abbreviation, a number ... The mark must be short, evocative, easy to pronounce, to remember (eg Danone, 3M, Toys "R" Us, Chanel, Christofle, Yahoo, ... W9) The trademark is protected by law.Notes: a brand can cover several trades if they are consistent with its mission to the heart of the brand (eg Danone / health, Reebok / balance). He must think not trade missions, which can give meaning to the brand. Warning: can age a brand with its consumers (eg Levis).
To improve the packaging: it is the first product container (vial), the packaging has a role in protecting him (various materials: wood, cardboard, metal, plastic ...).The packaging includes packaging, packaging and design or design function (aesthetics of the product). This is very important when the product should be sold only (supermarkets). It is a component of merchandising: packaging must communicate product features and identity.
Ii) the price:
Definition and issues:
The price of the product embodies the value that is the decision that the consumer is on the product.
The price determines the volume of sales (turnover) and the rate of profit. It expresses the goals of the company:Skimming is a policy characterized by the pursuit of profitability and reputation (high cost, image quality, high-end, importance of advertising (eg Miele, APPLE at the beginning).A policy is characterized by penetration of the goals of volume and market share (low prices, low margins offset by volume (eg LECLERC, Apple today).Prices are subject to regulation: sales, sales losses prohibited price call ...
Methods of pricing:
From Cost: concept of margin and multiplier:A margin is a difference: Margin = PV - PRIt is often expressed as%The sale price may be fixed from the cost by applying a multiplier: PV = PR x Coeff. Mult.Examples.
From the application: concept of elasticity (sensitivity) of demand relative to price. Examples.Notion of psychological price or prices of acceptability.Principle: determining the best price "seller" from two questions (below what price the product for you is it poor quality? Above what price the product is it too much?).Use: it should be left between two competing brands differ psychologically (example: Peugeot / Mercedes).Limitations of the method: the price so determined must not be within the costs. The psychological price is rarely the optimum price for the company.
From the market: the concept of leadership in a competitive market.The leader has or may have the largest share of a market, allowing it to set market prices.The price can also be fixed with respect to the service provided (eg the attachment of oenology to remove the cork taste the great wines (5 €: below, we change the bottle), such as video K7 priced back then there is hardly users.
The target costing: Japanese technique of matching costs to the expectations of the markets is to ensure that the cost of each component, expressed as% of total product cost, corresponds to the importance of the function it performs , expressed in% of the total market value (eg automotive: technical function, aesthetic, emotional). That is to eliminate the costs of no value to the customer (eg companies "low cost"). One can also from a psychological price to then define a maximum level of quality: it is called "target pricing".Notes: This is free has no value. Lower prices may devalue the offer, for example, there may be confusion between the brands, expensive, and private labels that provide a satisfactory level of quality.
III) DISTRIBUTION:
Preliminary remark: the mass production leads to a mass distribution and diversification of services (delivery, after sales service, warranties ...). From the distribution in the total cost of a product is significant in developed countries (up from 60 to 70%).
The functions of the distribution:
The main function of the distribution is to ensure that the product passes the place of production to those of consumption by various intermediaries.
Economic function intermediaries limit the number of transactions (break bulk) and hence the cost of distribution (diagram).
Hardware functions: transport, sorting (quality, size, freshness), Allotment (split according to the needs of consumption), selection (of various products in the same place).
Time functions: the stock is a buffer between production and sales (logistical problem). Funding for operations stimulates consumption (trade credit, consumer credit) and risk-taking (opportunities related to the effects of mode eg pins, pogs, yo-yos in Banda ...).
Business functions: information (demonstration), communication with the packaging and packaging, services (commissioning, maintenance ...). The distributor is the interface between the market and the producer. I1 can also be a specialist in the case of technical products.
Channels and channels of distribution:
The path followed by the product to the consumer is a circuit. Channels refer to the various stakeholders (all intermediate similar). We talk about ultra short circuit (from producer to consumer), short circuit (dealer), circuit length (manufacturer wholesaler retail consumer)
The different forms of commerce:
There are three types of trade: trade independent trade partner (franchise, concessions, etc..) Trading system (central purchasing large areas that include purchases for various distributors of the same group).
Franchising is a form of associated trade between a franchisor (manufacturer or designer services) and the franchisee. The franchise agreement provides for reciprocal obligations of both parties in terms of marketing techniques, management, compensation (fee paid to the franchisor). The franchisee retains the status of an independent trader.
The export distribution:
Changing techniques of international trade to four aspects of national marketing, one must add three very important export: lobbying, public relations and funding of international operations.
The criteria for choosing a distributor:
Strategic criteria: intensive strategy (up to distributors at a given level of distribution: pens, batteries, ... PGC) exclusive or restrictive strategy (concessions, franchises: luxury goods, products ...), image selective strategy (based economic conditions).
Criteria related to market constraints: number and location of customers, nature of the product (value, volume or weight, its technical characteristics, its life cycle: direct sales help raise awareness of the product, the distribution network a product expands as it ages).
Criteria related to conflicts between manufacturers and retailers: the manufacturer continues growth targets, the distributor favors short-term profitability, and the approaches to pricing and storage often diverge, the producer must reduce its dependence on its distributors and must find other ways to sell its products.
Merchandising:
Is to put the right product at the right time, at the right price in the right quantity and at the right place. The product must be actively introduced to make it more attractive. Merchandising for both the producer and the distributor:
producer level: You can refine trade policy and to strengthen collaboration with distributors through rigorous monitoring of its markets (market share, profitability information, management of linear).
At the distributor: the product must be different to be self-¬ seller. I1 must ensure the flow of products through better presentation and an appropriate range (collections). I1 helps consumers by facilitating the purchase conscious. I1 can boost sales, increase product turnover and profitability. I1 requires a good knowledge of the catchment area, an organization of sales area and a management planning results.
Merchandising in supermarkets:- The organization of space is to facilitate traffic between the spokes, optimize and tag the circuit on the shelves, scattered rays with high attendance.- The linear ground is the length of presentation of the products expressed in linear meters. The linear relationship / area of the store must be greater than 0.2. We reason usually sales per sq ft, it is sufficient to calculate the estimated turnover of a radius to find the length of the linear development of this product.- Note: There are varying levels of sellers in the gondolas (eyes> hands> ground).- The front is the number of units exposed vertically.
- Management of the linear one can measure inventory turnover, return (gross margin / line developed for a product), profitability (margin X rotation), attractiveness (customers purchasing / client passing a beam). We determine the sensitivity of the linear revenue and the margin of a product should be developed for linear proportional to the product as% of total available. It should also treat the environment, furniture, play complementary products ...
The sales force:
This is the entire sales staff sedentary or nomadic. The FDV conveys the image of the company. According to the advertising budget is more or less important, the EOL will respectively informative action or based on the argument.The functions of the sales force are:- Sales: it requires the mastery of techniques of argumentation and negotiation (eg transactional analysis).- Prospecting for new customers.- Service: monitoring, consulting (finance), inventory management ...- Knowledge of the market: survey reports, forecasts ...
IV) COMMUNICATION:
Principles:
Communication does not just convey information it requires behavior and is an uninterrupted flow of trade.Lasswell scheme: information leads to reactions of the receiver which in turn influence the issuer, who says (transmitter) what (message) to whom (receiver) by what means (channel coding) with what effects (feedback) .Communication can be controlled, ie managed by the company (advertising, promotion, contracts of confidence, the fact sheets ...) or uncontrollable because of pressure groups (cons-power consumer).Communication can be verbal (message) or nonverbal (atmospheric): sensory elements such as color, odor ... Examples: apartment witness visual event of the sale in supermarkets: the product "meets" the customer, hence the importance of packaging and fashion modeling ... Nonverbal communication is the science of signs in life social (semiotics).We distinguish mass communication of acting on all phases of the purchasing and interpersonal communication that appeals to opinion leaders expected to increase the credibility of the product and the company. The communication also has the role of the imagination to build the brand.
There are several ways for a company to communicate with its customers: advertising (advertising media and non-media which is the direct marketing) promotion, direct marketing, sponsorship, sponsorship, public relations
Advertising:
It is a set of methods and techniques to sublimate reality of the product, to seduce the potential buyer to induce the purchase. Its purpose is to introduce the product to get it permanently by the buyer to create a brand, develop awareness, build customer loyalty.It is now a pillar of our consumer society representing about 1% GDP in France.We can advertise for a product brand, company, institution, ideas.It can be special, collective (NF), Community (Region), ideological (propaganda)
Notes: paradox of advertising: it is found that companies spend more money on advertising during expansions.
Advertising information: Advertising stimulates competition between the media, thus contributing to freedom of expression. By the reaction to it, it allows a discharge of emotions and helps to balance social group.
Advertising and consumer psychology: according to the technique SONCA, the main reasons of security, the Pride (standing), the New, Comfort (hedonism), money, sympathy (the brand). The commercial emphasis, each time, the motivations that are favorable to the product.
Mechanisms of action advertising: advertising should be noted (graphics, color code) must satisfy (understanding of the message => slogan, credibility of content or source of the message) and needs to buy (the act of purchasing responds to the will, the pulse, automation, the usual)
Advertising is done through the media or mass media that are in descending order of importance: the press - TV - Display - radio-film.Each media is composed of different materials with a different audience (newspapers and TV channels for example).
These are the advertising agencies who advise advertisers (companies) and designing the advertisement.
The advertising approach is:- 1) To define the target: the need to adapt the message to the target.- 2) To design the message from advertising an axis (recall the main product) and a theme (scenario).- 3) To choose a medium and support.- 4) To monitor the impact (measures hearings, scores, reputation studies)
The media plan is the optimal combination of different media and materials as well as the budgetary allocation between them.The choice of media and media is on the criteria of impact, cost, nature of the message.
Characteristics of the mainstream media:
The Press:Periodicals: ease of target selection, high-impact but high cost (examples) and inflexible (reservation of spaces). Daily Press (PQN PQR): large regional impact, flexible but very short life and poor quality of the paper.The trade press: more or less specialized (Usine Nouvelle ...). Free Press: high index of awareness but high cost.Note: the problem of duplication of Hearing (all those in contact with the substrate) between different securities. We must take into account the frequency and intensity of reading. We must adapt the advertising style of the magazine.
Television:
Media for high-performance consumer products.It allows you to place the product in situations when the consumer is available. Very high cost but high number of useful contacts.
Radio:
Flexibility of use depending on the time slots of listening greater fidelity to a TV station that: reasonable cost but need to "hype".
Cinema:Well suited to certain products: hygiene, drinks perfume ... The audience is attentive, the commercial can be quite long.Examples of costs. The display:
Posters fixed or mobile. Allows to introduce a product. We must take into account the location, the number of opportunities to see, the probability of meeting with the poster, the campaign period (1 to 2 weeks). Internet is a perfectly focused and interactive. Promotion:Principle: emphasize the advantage of immediate purchase. It is to push the first product to the consumer (Push) There are various techniques: merchandising (see above), reductions, games, bonuses samples, product testing, tasting, demonstrations, reversals of product. The traveling fairs and advertising (Tour de France). Some techniques are directed distributors (franchises) It also helps to educate prescribers (échantillon. ..) and to stimulate the sales force.Note: This is a technique frequently has the reach of SMEs do not always have the means to an advertising campaign.
Direct Marketing:
We talk about non-media advertising. Direct mail (mailing), accounting for more than 15% of the traffic post the mail (mail order) catalogs are staging products. Its cost is relatively high. The sale or marketing by telephone marketing call. Selling a home delivery vehicles, Internet ... The packaging must attract attention (shape, size, material) and push the purchase (contest, discount, special offer, reusability ...)
Sponsorship (sponsorship):
The company finances an event to improve its reputation. It can be a substitute for advertising when it is prohibited.
Sponsorship:
The company finances an event without direct (foundations: Cartier, TOTAL, Vivendi ...).
Public relations:
Purpose: To know the company's mission to develop the brand to create favorable attitudes, educate opinion leaders. They can be internal (with respect to staff, shareholders ...) or external (to the general public, suppliers, lobbyists ...) They use various media (the press, the log company, the story, the film company).
Other means: trade shows, open houses, company visits, seminars, cocktails ...
Note: a public relations campaign must precede other communication activities.
I) INTRODUCTION TO THE CONCEPT OF MARKETING:
History: Industrial Revolution to the birth of marketing.Priority is first given to the production face a chronic shortage of consumer goods (supply-side economics). At the beginning of the century, is mass production (Fordism Taylorism applied). The 1929 crisis (depression) creates a demand economy (Keynes). The evolution of purchasing power will lead to mass consumption. It then moves progressively from a supply-side economics to demand economy. The end of the war boom coincides with the market saturation of the first equipment, increased competition, focus on the sale (a good product always sells). Marketing has evolved from these developments, the consumer becoming the commercial center of reflection.
Notes:- The supply sometimes creates its own demand: the case of products fads: pin, pogs, yo-yos from Bandai, products with the release of a film ... It is also the case of supply of television programs or medical care that can condition the request).Expectations underlying needs and therefore demand. Consumption is the visible part of the request can be satisfied for several reasons: insufficient purchasing power (the concept of effective demand), mismatch (eg from ADSL which helped boost Internet or TNT ). Marketing is to match an offer with a solvent market. So there is a supply and marketing of a marketing application.
II) CONCEPT AND PRINCIPLES OF MARKETING:
Definitions: Ministerial Order 1987, all actions to identify needs and to adapt and continuously the production and marketing. Mercator (Lendrevie & Lindon): all methods and means available to an organization to promote in the public interest to which it, attitudes favorable to his objectives.
Principle to the consumer at the center of business thinking.Marketing is a unifying element of the shares of the company as it mobilizes all. It is also a state of mind: we must reverse the logic of the company and produce that meets a need, an expectation (the concept of corporate mission: relationships between needs, expectations, demands, potential markets and actual example of the Build to order practiced by Dell or Nike), hence the need for an integrated view of business problems. Marketing is finally a scientific approach requiring the use of tools: computers, statistics (surveys) ...
The scope of marketing has widened the sphere of services but also to non-trade areas: local government, political parties, association (humanitarian), see definition Mercator.
Curriculum Vitae and marketing approach.
III) THE MARKETING APPROACH:
It is to study the market and drive the marketing levers to four levels: product, price, communication, distribution (PPCD).The first step is gathering information on market needs and competition.The marketing mix marketing policy embodies the company to four levels of action which he proposes PPCD dosing (concept of marketing mix). The marketing process must be consistent. Examples of inconsistencies: a product launch price sold off; choice of distributor does not comply with the product image.
IV) RESULTS, LIMITATIONS, PROSPECTS:
All companies have a marketing approach. Some continue to favor production problems because leaders often have a technical background. But there is the presence of marketing in many directions and business development services, information management and communication ...
Galbraith denounced what he called the reverse channel that the company may require a product to the consumer, to artificially create the need.Consumerism or consommaction (Ralph Nader in 70 ') developed in response to the risk of handling: consumers respond by organizing themselves, companies are always looking to win back their customers, to shift their marketing approach (creating specialized services: services after purchase from Sony, CRM: customer relationship management or CRM).
Today, the law of supply and demand is contested, the request is not always sensitive to price in the same proportions (elastic demand / price), so a promotion may lose revenue and he must also know how to manage the scarcity of a product.
We are witnessing the emergence of the concept of social marketing (markéthique).
The role of the marketing function is threefold:- Marketing research: upstream (include a market, identify opportunities, identify customer) and downstream of the action.- Strategic marketing: brand, communication, price, product, etc..- Operational marketing: implementation of tools (advertising, direct marketing ...).
Today, the consumer is saturated for Proposals (hyperchoice) and has more and more difficult to express the need, he buys the sense of trust, the difference, security (etymologically, means also consumare believe), scenarios of life (just do it!). Marketing is therefore first the customer relationship (CRM: Customer Relationship Management or CRM). Indeed, it is five times more to win a new customer than to retain an old one (important word of mouth ...).
The consumer becomes part of the marketing of the company and contributes to the creation of value: it can engage in the design of a new product, for example by seeking, through the Internet, to define product features.Satisfy the need to put back in line with what it is to be (we find the principle of reverse supply chain) brand, which allows to formulate the need for it then takes an even more important. We must transform the consumer brand ambassador.
Market research
I) PURPOSE OF MARKET RESEARCH:
This is, of course, know the market, the environment, the consumer. To do this, it should collect static information (ie documentation), but mainly to give an operational sense (the concept of information-action). This is the information system marketing methods and tools are many: economic intelligence, quantitative studies, qualitative, documentary.
II) SOURCES OF INFORMATION:
Internal sources: sales analysis, customer lists, vendor reports, letters from clients ...External documentary sources: organizations (INSEE, trade unions, CREDOC: research and studies center living conditions, Chambers of Commerce, CFCE, trade press: Factory new databases: all information searchable by topic)Primary sources of information should therefore create: quantitative studies, motivation studies, market test.
III) TECHNICAL EDUCATION MARKETING:
1) Quantitative studies:
They answer the question: who are the consumers, how are they, what are the competitors and their market shares.
Is done primarily by survey, the survey is a photograph of the study population, a questionnaire is therefore proposed that a representative sample of population.
The sample can be made: Random: the probability or random sampling:- In drawing lots in a table of numbers, eg 20 clients on 800 randomly selected clients.- Polls cluster: all persons belonging to the same subset (a home, a building, a railway compartment ...).- Multi-stage sampling: draw lots for a university, a faculty, an academic year, a student. Empirically:- Survey by quota: the sample is constituted so that it is a model of the population is kept in the sample the same distribution (by age, gender, income, CSP ...) and in the parent population.- Method of routes: cash out every 10 minutes for example.
The parameters of a survey: the sample size N does not depend on the size of the parent population but on the accuracy and dispersion of the population. It increases with the heterogeneity of the population and with the desired accuracy: N> 4 * (standard deviation) ² / (absolute error) ².Example: we want to know investigate the use of detergent to 0.4 kg by the knowledge that the average is 30 kg / year with a dispersion of 5 kg, or roughly 5 kgs: N sample should include at least 625 people.Note: you can use a chart to measure N.
The sample panel or permanent. There are panels of consumers, distributors, prescribers (doctors, architects ...) regularly interviewed and they can follow the evolution of consumption, consumers' awareness of advertising campaigns, to identify the type of profile consumer, to help market segmentation, and analysis on the quantities purchased by the statistical unit, the number of buyers, the penetration of products. We can also analyze the effectiveness of a grid.
card: It is designed to test hypotheses, to provide information and honest answers. It should be clear, precise, structured and easy to administer. Its length should not exceed from 30 to 40 questions and requires less than half an hour. Questions may be closed (yes / no), multiple choice, open (free).NOTE: Do not ask questions as we posed to the self.The administration of the questionnaire is the subject of sorting flat (number of responses to a given question) or cross (linking of multiple variables).Note: there is software management questionnaires (SPHINX).
2) Qualitative Research:
They aim to understand and analyze consumer behavior, identify their criteria. We proceed by individual interviews that allow greater depth, or group interview more conducive to certain sensitive topics or creativity (RPG). The predictive power of knowing the personality of the consumer is limited, however.
Analysis of consumer behavior:
The behavior is the result of motivations and constraints of the individual. It manifests itself at three levels cognitive (what he thinks), emotional (which he loves) and conative (which it does). The first two are relatively easy to influence, particularly through advertising. The conative stage, which is intended to act, is more difficult to steer and is, for example, direct marketing (example of online shopping on the Internet).The explanatory variables are the behavior of an individual nature or sociological. The purchase is the result of a process through the identification of need by the consumer (hence the role of communication), the search for information (sales force, magazines, advertising, mouth of mouth) and then evaluating the different options available to him. Various factors affect the buying process in different situations such as the risk perceived by the consumer, the variety of the offer or the pressure of time.A selection criterion is said is important in determining when consumer choice, it is discriminatory as it allows differentiation of the product to the consumer.
The choice of a product by the consumer can be done:
- By weighting the different criteria for each product, the product used is that which gets the best weighted score (compensatory or additive model).- Either Product obtaining the highest score in the criterion considered most important (lexicographic model).- Either the product (s) (s) whose rating is above a minimum threshold (conjunctive model).
Consumer perception reflects the filtering of information according to its value system.Note: Industrial buying meets a specific process involving the user, a purchaser of a separate decision maker, but also prescribers and advisers and we talk about industrial marketing.
Consumption, an expression of social differentiation:
The consumer is influenced by certain cultural and social factors:- Culture (critical in international marketing. Example: hygiene in EU).- Social class: the importance of CSP and income (expenses of belonging, standing, ostentatious behavior: the social hierarchy is expressed in purchasing power, there are places to buy and discriminant).- Lifestyles: there are stereotyped behaviors (business, personal values, opinions). These styles reflect the social evolution of societies and ways of thinking, in reference to values (eg, sensuality, asceticism, conservatism, adventurism, rigor ...). Horney proposes a classification of consumer personality: positive, aggressive, detached, for example.- Reference groups: the group is over innovation and behavior and has a normative influence (adolescents) and informative (information dissemination to a professional industry).- Opinion leaders: they set the standards for use by their status, ability, charisma.
Needs and motivations of the consumer:
The gap between the desired state and the state felt was the source of motivation.The motivations may be of hedonistic (enjoy life), Oblates (doing good) or self-expressive (to shine).In developed societies, the needs can be prioritized, for example along the lines of the pyramid of Maslow.Rules of analysis:- Our behavior is governed by unmet needs.- You can access a higher level of need after satisfaction of lower level.Note: Note the iterations between the needs of individual and group type.A need is available in many components. In general, the act of purchasing meets several needs simultaneously. A similar requirement could be met by different products.
Households and consumption:
The collective buying meets a complex process because a household is characterized by a single budget and allocation decisions between different family members need to know to take into account (the role of children).
There is a significant change of the coefficients budget.
Tendency to shift from the 80's: social conformity research + escape ("limited integration").
There is an interclass social mobility (living beyond its means).
IV) study the market:
1) The different markets:
The company's market consists of buyers of the prescribers (originally purchases), competitors and different environments (technological, cultural, economic, demographic, legal ...)We distinguish between upstream markets (markets for factors of production) on which the applicant company (labor demand) and downstream markets on which it is competing with its supplier of goods and services.The market is broken down into current market (business + competitors) ~ market (including Consumers Not Related).
2) The types of contracts:
Markets for consumer goods (FMCG: Food, durable: appliance, automotive, image products: clothing, luxury ...). Industrial markets: buying process specific role of prescribers. (Industrial marketing).Procurement of services: intangibility, lack of storage, distribution and role of the brand.Agricultural markets: large number of suppliers and consumers, price fluctuations.International markets: strategic aspect. International Marketing (4P + PR + lobbying)
3) Catchment area:
This is the area on which markets the company has a direct appeal. this defines isochronous curves, each characterized by an attractive intensity (see also the concept of goodwill).
4) Market share:
It is equal to the ratio of the company's sales to total sales of all competitors in a given market. Note: market share and growth rate.Exercise: calculation of market share, related to market growth.
5) Market structure:
Segmentation of a market:
Segmentation is a marketing division of market segments based on criteria more or less empirical answers to two key questions:- What is the ideal target for our product?- What new products available for a particular target identified?Principle is to divide the total population of a market (potential customers) in that segment can be considered homogeneous and on which we can develop a specific trade policy.I1 are three methods of segmentation:
- On the benefits sought, according to the importance that consumers place on different product attributes. I1 is then positioned competition in different segments and target action.
EXAMPLE: snacks in the U.S.
- Segment Description:
Principle: we seek the relationship between a dependent variable (sales, for example) and the explanatory variables (segmentation criteria).
These criteria are: geographical (country, region, city, type of habitat, climate), demographic (sex, height, weight, age, nationality, religion ...) socioeconomic (income, CSP, education, number of people at home ...), behavioral (purchase frequency, brand loyalty, volume average purchase ...), personality (socio-styles)
- Segmentation Sociocultural:
Based on the study of lifestyle (interests, value systems ...). See above, the study of the consumer.Note: there are European lifestyles.Example: The demand for food French abroad.
- Segmentation Rules: The segments must be measurable, useful (profitable) for the company and accessible (by advertising in particular). The criteria must be relevant, for this we use techniques of discrimination (Belson method):
Note: For industrial products, we can use specific criteria of size, purchasing organization, technology ...
The types of consumers:
It is to establish the typical profile of the consumer to refine its trade policy.Addressed more generally to customers of the company rather than prospects (aggregative approach which involves posterior to group consumers with behaviors).Examples: the election, the French investors.
Note: Today, segmentation is often based on the typology of consumer brands try to follow consumer groups unstable. The segment gives way to the network where the appearance of a marketing "situational" supposed to meet at different times of the consumer's life: ethnic marketing, senior marketing, brand "chameleons" marketing frustration.Problem: trying too hard to segment and differentiate, the offer may become unreadable.
Positioning:
It is to locate the product or brand in its competitive environment to increase its potential for contrast. The consumer, in fact, require clear benchmarks, especially since it spends little time with the purchase (the case of supermarkets). When the product is installed on the market (mature), the position can be differentiated, and for this it is necessary to identify the various competitors of the product and the characteristics of each as perceived by the consumer through semi-structured interviews. These may include various components of the need or the qualifications of the product compared to its target. This is followed by establishment of a perceptual map (mapping technique) with two axes whose characteristics are determined by the target and the qualifications of the product (components of need). On this map include all brands and you can locate the ideal product; the position deviation can be reduced. We can also develop new products on virgin land or introduce new criteria.Note: position is a product strategy (see below). It is expressed mainly through advertising. Repositioning involves a change of image of the product whose cost is often high.
Example of positioning: the brands of whiskey and the automobile market (such as the Renault Logan)
BUSINESS STRATEGIES AND ACTIONS
Reminder: The marketing mix is intended to set the trade policy of the company at four levels: Product, Price, Distribution, Communication.Note: we use the mnemonic formula EMC ² (for Environment, Market, Consumer) to highlight the importance of the consumer in an environment and a market.
I) THE PRODUCT:
Concept of Product: product can be considered, all that can be offered on a market to be noticed, acquired or used to satisfy a need. It is also a promise made by the company to meet the need, so it's a concept as an object or a specific service, hence the importance of intangibles related as the mark or elements such as packaging material.Notion of métaproduit (all product / services or industrial solutions for example).
Product analysis of the company:
Each product has a specific life cycle. It should be positioned on each product's life cycle because the marketing priorities are specific to each phase. The company's priorities are different depending on the place the product in its life cycle. The expected decline of a product implies the need for the company to hold a portfolio of products or activities, finding a balance marketing and finance. This also determines the innovation policy of the company (note the risk of "cannibalization" of these products).Note: there is a tendency to shorten the cycle time (product ephemeral fads ...)
Another analysis tool and strategic marketing: BCG matrix (Boston Consulting Group) is conducting a strategic segmentation in different Strategic Business Units which are then positioned on a matrix growth rate of the sector / market share.A strategic segment consists of a product (or product family or line), a specific clientele, competitors clearly identified and its own organization. This is a unique combination of key factors of success.Synergy should be zero between two different segments.Note: The market segments can be defined within the strategic segments but if the segmentation is too fine, the segment merges with the marketing segment, for against, if it is too general, the segment coincides with a branch or an industry.Comparing segmentation and strategic marketing.Segmentation strategy includes the company's activities into segments or strategic business areas (DAS or SBU), which allow positioning of the offer of the company in three directions: the products (more or less simple or diverse) the market (more or less local or global) and technology (more or less simple or complex).Segmentation can be done:- Based on key factors of success: the strategy must be specific to each segment.- Based on experience curves for each activity.- According to the responsibilities (a manager / segment).- According to the market (same marketing segmentation).- Based on the interactions between different segments: the company must be able to disengage from a segment without affecting other segments.- According to the missions, that is, responses to consumer demands (eg in confectionery products pleasure, well being, health, leisure).- Based on the lines of communication of the company.- According to the distribution channels (eg, deli meats cut or prepackaged)It's about finding the common denominator between the activities that can be grouped within a single DAS, the allocation must be unambiguous, otherwise it is necessary to redefine the contours of the DAS.Example of strategic segmentation in the paint industry.Note: the emergence of a new technology involves a repositioning of the DAS (example of DTT).
Strategic segmentation and organization: It should include the strategic segmentation in the organizational structure by finding the best match between Strategic Business Area and organization. One can also consider a dual organization (organizational structure and strategic).Note: the segment is often a posteriori, hence the paradox of the segmentation, a segment appears, in fact, both as the result of a strategy and a prerequisite for the formulation of the strategy.
The BCG Matrix has both an interest in marketing (positioning) and strategic (identification of strategic directions: exit dead weight, look for the leadership dilemmas ...). One can observe a correlation between phases of the cycle and Strategic Business Area of the matrix.Note: there are other tools for portfolio analysis (ADL, McKinsey, LCAG, PIMS). All together a positioning of the company according to its strengths and weaknesses with the opportunities and threats in the economic environment.Paradox segmentation: the segment is often a posteriori. The segmentation is both the result of a strategy and a preliminary analysis in the formulation of that strategy.
Actions marketing 'product'
To develop a range: a short range allows you to concentrate on a few products (skimming strategy), a long range allows better damping investment, better allocation of risk (market penetration). Examples: luxury goods, automotive ...
Develop new products: there are several degrees of innovation: the creation, enhancement, imitation of solutions and implementation processes.Innovation can be the result of research of the company but access to new technologies can also be done by purchasing license for a patent, by buying corporate partnership.Innovation is a competitive advantage: it is a form of competitive differentiation. Process innovations can also reduce manufacturing costs.The launch of a new product involves the following successive steps:New product idea, selection of ideas, product design, prototype, test, development.Notes: It is rare (one out of ten) whether the leader who innovates (risk of cannibalism among products) Be the first is not a guarantee of sustainable leadership: it is better to come second with a better offer, knowing that the failure rate is about 50%.Paradox: to renew the appeal of the brand through innovation may still pollute the existing one. You should know simplify the offer to make it more visible (eg TV channels, toothpaste, press ...).
To develop a brand: the brand is the set of elements used to identify and differentiate the product. This is the signature of the business it can be a name, term, phrase, an abbreviation, a number ... The mark must be short, evocative, easy to pronounce, to remember (eg Danone, 3M, Toys "R" Us, Chanel, Christofle, Yahoo, ... W9) The trademark is protected by law.Notes: a brand can cover several trades if they are consistent with its mission to the heart of the brand (eg Danone / health, Reebok / balance). He must think not trade missions, which can give meaning to the brand. Warning: can age a brand with its consumers (eg Levis).
To improve the packaging: it is the first product container (vial), the packaging has a role in protecting him (various materials: wood, cardboard, metal, plastic ...).The packaging includes packaging, packaging and design or design function (aesthetics of the product). This is very important when the product should be sold only (supermarkets). It is a component of merchandising: packaging must communicate product features and identity.
Ii) the price:
Definition and issues:
The price of the product embodies the value that is the decision that the consumer is on the product.
The price determines the volume of sales (turnover) and the rate of profit. It expresses the goals of the company:Skimming is a policy characterized by the pursuit of profitability and reputation (high cost, image quality, high-end, importance of advertising (eg Miele, APPLE at the beginning).A policy is characterized by penetration of the goals of volume and market share (low prices, low margins offset by volume (eg LECLERC, Apple today).Prices are subject to regulation: sales, sales losses prohibited price call ...
Methods of pricing:
From Cost: concept of margin and multiplier:A margin is a difference: Margin = PV - PRIt is often expressed as%The sale price may be fixed from the cost by applying a multiplier: PV = PR x Coeff. Mult.Examples.
From the application: concept of elasticity (sensitivity) of demand relative to price. Examples.Notion of psychological price or prices of acceptability.Principle: determining the best price "seller" from two questions (below what price the product for you is it poor quality? Above what price the product is it too much?).Use: it should be left between two competing brands differ psychologically (example: Peugeot / Mercedes).Limitations of the method: the price so determined must not be within the costs. The psychological price is rarely the optimum price for the company.
From the market: the concept of leadership in a competitive market.The leader has or may have the largest share of a market, allowing it to set market prices.The price can also be fixed with respect to the service provided (eg the attachment of oenology to remove the cork taste the great wines (5 €: below, we change the bottle), such as video K7 priced back then there is hardly users.
The target costing: Japanese technique of matching costs to the expectations of the markets is to ensure that the cost of each component, expressed as% of total product cost, corresponds to the importance of the function it performs , expressed in% of the total market value (eg automotive: technical function, aesthetic, emotional). That is to eliminate the costs of no value to the customer (eg companies "low cost"). One can also from a psychological price to then define a maximum level of quality: it is called "target pricing".Notes: This is free has no value. Lower prices may devalue the offer, for example, there may be confusion between the brands, expensive, and private labels that provide a satisfactory level of quality.
III) DISTRIBUTION:
Preliminary remark: the mass production leads to a mass distribution and diversification of services (delivery, after sales service, warranties ...). From the distribution in the total cost of a product is significant in developed countries (up from 60 to 70%).
The functions of the distribution:
The main function of the distribution is to ensure that the product passes the place of production to those of consumption by various intermediaries.
Economic function intermediaries limit the number of transactions (break bulk) and hence the cost of distribution (diagram).
Hardware functions: transport, sorting (quality, size, freshness), Allotment (split according to the needs of consumption), selection (of various products in the same place).
Time functions: the stock is a buffer between production and sales (logistical problem). Funding for operations stimulates consumption (trade credit, consumer credit) and risk-taking (opportunities related to the effects of mode eg pins, pogs, yo-yos in Banda ...).
Business functions: information (demonstration), communication with the packaging and packaging, services (commissioning, maintenance ...). The distributor is the interface between the market and the producer. I1 can also be a specialist in the case of technical products.
Channels and channels of distribution:
The path followed by the product to the consumer is a circuit. Channels refer to the various stakeholders (all intermediate similar). We talk about ultra short circuit (from producer to consumer), short circuit (dealer), circuit length (manufacturer wholesaler retail consumer)
The different forms of commerce:
There are three types of trade: trade independent trade partner (franchise, concessions, etc..) Trading system (central purchasing large areas that include purchases for various distributors of the same group).
Franchising is a form of associated trade between a franchisor (manufacturer or designer services) and the franchisee. The franchise agreement provides for reciprocal obligations of both parties in terms of marketing techniques, management, compensation (fee paid to the franchisor). The franchisee retains the status of an independent trader.
The export distribution:
Changing techniques of international trade to four aspects of national marketing, one must add three very important export: lobbying, public relations and funding of international operations.
The criteria for choosing a distributor:
Strategic criteria: intensive strategy (up to distributors at a given level of distribution: pens, batteries, ... PGC) exclusive or restrictive strategy (concessions, franchises: luxury goods, products ...), image selective strategy (based economic conditions).
Criteria related to market constraints: number and location of customers, nature of the product (value, volume or weight, its technical characteristics, its life cycle: direct sales help raise awareness of the product, the distribution network a product expands as it ages).
Criteria related to conflicts between manufacturers and retailers: the manufacturer continues growth targets, the distributor favors short-term profitability, and the approaches to pricing and storage often diverge, the producer must reduce its dependence on its distributors and must find other ways to sell its products.
Merchandising:
Is to put the right product at the right time, at the right price in the right quantity and at the right place. The product must be actively introduced to make it more attractive. Merchandising for both the producer and the distributor:
producer level: You can refine trade policy and to strengthen collaboration with distributors through rigorous monitoring of its markets (market share, profitability information, management of linear).
At the distributor: the product must be different to be self-¬ seller. I1 must ensure the flow of products through better presentation and an appropriate range (collections). I1 helps consumers by facilitating the purchase conscious. I1 can boost sales, increase product turnover and profitability. I1 requires a good knowledge of the catchment area, an organization of sales area and a management planning results.
Merchandising in supermarkets:- The organization of space is to facilitate traffic between the spokes, optimize and tag the circuit on the shelves, scattered rays with high attendance.- The linear ground is the length of presentation of the products expressed in linear meters. The linear relationship / area of the store must be greater than 0.2. We reason usually sales per sq ft, it is sufficient to calculate the estimated turnover of a radius to find the length of the linear development of this product.- Note: There are varying levels of sellers in the gondolas (eyes> hands> ground).- The front is the number of units exposed vertically.
- Management of the linear one can measure inventory turnover, return (gross margin / line developed for a product), profitability (margin X rotation), attractiveness (customers purchasing / client passing a beam). We determine the sensitivity of the linear revenue and the margin of a product should be developed for linear proportional to the product as% of total available. It should also treat the environment, furniture, play complementary products ...
The sales force:
This is the entire sales staff sedentary or nomadic. The FDV conveys the image of the company. According to the advertising budget is more or less important, the EOL will respectively informative action or based on the argument.The functions of the sales force are:- Sales: it requires the mastery of techniques of argumentation and negotiation (eg transactional analysis).- Prospecting for new customers.- Service: monitoring, consulting (finance), inventory management ...- Knowledge of the market: survey reports, forecasts ...
IV) COMMUNICATION:
Principles:
Communication does not just convey information it requires behavior and is an uninterrupted flow of trade.Lasswell scheme: information leads to reactions of the receiver which in turn influence the issuer, who says (transmitter) what (message) to whom (receiver) by what means (channel coding) with what effects (feedback) .Communication can be controlled, ie managed by the company (advertising, promotion, contracts of confidence, the fact sheets ...) or uncontrollable because of pressure groups (cons-power consumer).Communication can be verbal (message) or nonverbal (atmospheric): sensory elements such as color, odor ... Examples: apartment witness visual event of the sale in supermarkets: the product "meets" the customer, hence the importance of packaging and fashion modeling ... Nonverbal communication is the science of signs in life social (semiotics).We distinguish mass communication of acting on all phases of the purchasing and interpersonal communication that appeals to opinion leaders expected to increase the credibility of the product and the company. The communication also has the role of the imagination to build the brand.
There are several ways for a company to communicate with its customers: advertising (advertising media and non-media which is the direct marketing) promotion, direct marketing, sponsorship, sponsorship, public relations
Advertising:
It is a set of methods and techniques to sublimate reality of the product, to seduce the potential buyer to induce the purchase. Its purpose is to introduce the product to get it permanently by the buyer to create a brand, develop awareness, build customer loyalty.It is now a pillar of our consumer society representing about 1% GDP in France.We can advertise for a product brand, company, institution, ideas.It can be special, collective (NF), Community (Region), ideological (propaganda)
Notes: paradox of advertising: it is found that companies spend more money on advertising during expansions.
Advertising information: Advertising stimulates competition between the media, thus contributing to freedom of expression. By the reaction to it, it allows a discharge of emotions and helps to balance social group.
Advertising and consumer psychology: according to the technique SONCA, the main reasons of security, the Pride (standing), the New, Comfort (hedonism), money, sympathy (the brand). The commercial emphasis, each time, the motivations that are favorable to the product.
Mechanisms of action advertising: advertising should be noted (graphics, color code) must satisfy (understanding of the message => slogan, credibility of content or source of the message) and needs to buy (the act of purchasing responds to the will, the pulse, automation, the usual)
Advertising is done through the media or mass media that are in descending order of importance: the press - TV - Display - radio-film.Each media is composed of different materials with a different audience (newspapers and TV channels for example).
These are the advertising agencies who advise advertisers (companies) and designing the advertisement.
The advertising approach is:- 1) To define the target: the need to adapt the message to the target.- 2) To design the message from advertising an axis (recall the main product) and a theme (scenario).- 3) To choose a medium and support.- 4) To monitor the impact (measures hearings, scores, reputation studies)
The media plan is the optimal combination of different media and materials as well as the budgetary allocation between them.The choice of media and media is on the criteria of impact, cost, nature of the message.
Characteristics of the mainstream media:
The Press:Periodicals: ease of target selection, high-impact but high cost (examples) and inflexible (reservation of spaces). Daily Press (PQN PQR): large regional impact, flexible but very short life and poor quality of the paper.The trade press: more or less specialized (Usine Nouvelle ...). Free Press: high index of awareness but high cost.Note: the problem of duplication of Hearing (all those in contact with the substrate) between different securities. We must take into account the frequency and intensity of reading. We must adapt the advertising style of the magazine.
Television:
Media for high-performance consumer products.It allows you to place the product in situations when the consumer is available. Very high cost but high number of useful contacts.
Radio:
Flexibility of use depending on the time slots of listening greater fidelity to a TV station that: reasonable cost but need to "hype".
Cinema:Well suited to certain products: hygiene, drinks perfume ... The audience is attentive, the commercial can be quite long.Examples of costs. The display:
Posters fixed or mobile. Allows to introduce a product. We must take into account the location, the number of opportunities to see, the probability of meeting with the poster, the campaign period (1 to 2 weeks). Internet is a perfectly focused and interactive. Promotion:Principle: emphasize the advantage of immediate purchase. It is to push the first product to the consumer (Push) There are various techniques: merchandising (see above), reductions, games, bonuses samples, product testing, tasting, demonstrations, reversals of product. The traveling fairs and advertising (Tour de France). Some techniques are directed distributors (franchises) It also helps to educate prescribers (échantillon. ..) and to stimulate the sales force.Note: This is a technique frequently has the reach of SMEs do not always have the means to an advertising campaign.
Direct Marketing:
We talk about non-media advertising. Direct mail (mailing), accounting for more than 15% of the traffic post the mail (mail order) catalogs are staging products. Its cost is relatively high. The sale or marketing by telephone marketing call. Selling a home delivery vehicles, Internet ... The packaging must attract attention (shape, size, material) and push the purchase (contest, discount, special offer, reusability ...)
Sponsorship (sponsorship):
The company finances an event to improve its reputation. It can be a substitute for advertising when it is prohibited.
Sponsorship:
The company finances an event without direct (foundations: Cartier, TOTAL, Vivendi ...).
Public relations:
Purpose: To know the company's mission to develop the brand to create favorable attitudes, educate opinion leaders. They can be internal (with respect to staff, shareholders ...) or external (to the general public, suppliers, lobbyists ...) They use various media (the press, the log company, the story, the film company).
Other means: trade shows, open houses, company visits, seminars, cocktails ...
Note: a public relations campaign must precede other communication activities.
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