+  

Overview Marketing Concept

Marketing Analysis (5Cs)
Customer Company Competitors Collaborators Context

Marketing Strategy
Segmentation Targeting Positioning

Value Creation

Marketing Mixes (4Ps)

Product Place Price Promotion

Value Realization Value Preservation

Acquisition

Retention Profit

concept

Quantitative

Concept Test

GAP Unmet Need

L A U N C H

R&D

Qualitative
Who, What, Where, When, Why, Why not, How, How much etc

Sensory Test

Packaging Test

Product Lockdown

Market test

Post Launch Evaluation

concept

Post Launch Evaluation

Quantitative

Concept Test Concept

Tracking Research Brand Health check

GAP or Unmet Need

Story Board Test R&D

Qualitative
Who, What, Where, When, Why, Why not, How, How much etc

Sensory Test

Packaging Test

Finish film Test -Brand Memorability -Commu. Clarity -Response: persuasion, brand appeal

Product Lockdown

Market test

LAUNCH

Successful marketer is the one who can access to consumer s needs Offer the right product to the right target

 Identify Unmet need

(Lifestyle)

A = I = O =

Activities Interest Opinion

 Example  understanding customer Activity at KBANK

KBANK (

+ ( ATM  / ) LCD SCB ) modern ( )

) 3

) (

( music VDO (

 ) ( ) 15-20 1,000 (  900 100 ) , / ( ) (

(Motivation) Maslow
5 (Self actualization Needs) 4 (Esteem Needs: self-esteem, recognition, status) 3 (Social Needs: sense of belonging, love) 2 (Safety Needs: security, protection) 1 (Physiological Needs: food, water, shelter)

Functional Benefit V.S. Emotional Benefit

Experiment and observation Mysterious Shopper

 Example observation

Like to play with M&Ms colour

Related World
 Fast and Simple  Use the world around to give great new thinking
 Success cases in other place  Traveling  Magazines, Radio, TV,

Lets break the rules  What if ketchup is not red?

concept

Post Launch Evaluation

Quantitative

Concept Test Concept

Tracking Research Brand Health check

GAP or Unmet Need

Story Board Test R&D

Qualitative
Who, What, Where, When, Why, Why not, How, How much etc

Sensory Test

Packaging Test

Finish film Test -Brand Memorability -Commu. Clarity -Response: persuasion, brand appeal

Product Lockdown

Market test

LAUNCH

 product concept development  product concept testing

Concept Board : Key Elements

Consumer Insights Benefit Claim Reasons to Believe Reassurance Statement

Concept Board : Jel-O

Jel-O Jel-O

Jel-O

 Sensory test before product lockdown

 Blind test

Quantitative :
 Market Size , growth and market share  Estimating Market Sales Potential Market sales potential = B x Q x P
 number of prospective buyers (B) who are willing and able to purchase an offering  purchased quantity (Q) by an average buyer in a specific time period, typically one calendar year  price (P) of an average unit

Market sales potential for Cola-flavored Carbonated soft drinks Total estimates prospective buyers times Target market (25% of total buyers) times Distribution/communication coverage (75% of target market) times Annual purchase rate (20 units per year) times Average offering unit price ($10.00) Forecasted sales 1 million x .25 x .75

x20 x$10.00 $ 37.5 million

 Find market value for Senior market on Sukhumvit  Market area:  Target :  60    60 100,000 30,000


1% 2% 23%

2545

4% 10%

60%

   

42% 40% 23% 20%

market value  = 100,000 X 0.04X 0.2 X 30,000 monthly  = 24 MBx12 months  = 288 MB / year

     

41.8% 40% 23% 17.9% 15.1%

Market Area = 50,000 = 50,000 x 40% = = 10,000 = 20,000 x 10,000 =

12%

20,000

Customer Brand Valuation : CBV

%

x

Penetration

X
Y

x
x

CM

= CBV

Buying Rate

Share of Purchase Contribution Margin

BR

SOP

= CBV

Customer Brand Valuation : CBV

(Penetration P)   (Buying Rate BR)   (Share of Purchase)  

  HPSC 100,000  200,000  40,000 HPSC 1  12  40,000 HPSC  share of purchase 65%  HPSC 15.60 (12x2x65%)  8.40 (12x2x35%)

Example : HPSC


100,000

40,000

x 2
$ CBV

x 12 = 24

65%

$6.50

Penetration = P x

BR

SOP x

CM

Buying Rate

Share of Purchase Contribution Margin

Value of a customer HPSC = 40,000 x 24 x 0.65 x $6.50 = 4,056,000 in total OR $101.4 / customer Total market = 100,000X24x $6.50 = 15,600,000 total OR $156 / customer

 Penetration (P)  = 100,000  HPSC = 40,000  Penetration HPSC = 40%  Buying Rate (BR)  1 =2  = 12  1 / (2 x 12) = 24  Share of Purchase (SOP)  HPSC = 65%  HPSC 1 / (24 x 0.65) = 15.6  Contribution Margin (CM)  = $6.50

ANY OPPORTUNITY?

 HPSC

Penetration
60,000




Share of Purchase
HPSC HPSC 65%

Market area km2

No. of household/ km2

Total No of household

penetrati on

Our customers

10

4,000

40,000 12

30% 50%

12,000

15

???


40,000

12,000

x
Penetration P Value of a customer x

12

x
x

50%

15

BR

SOP

x CM

Buying Rate

Share of Purchase Contribution Margin

5stars = 12,000 x 12 x 0.5 x 15 = 1,080,000 in total Total market = 40,000X12x 15 = 7,200,000 total OR

= 90 / customer =180 / customer

BR

SOP x

CM

= CBV

segm ents

penetrate B uying rate

SP O

C M

CV B

heav 5% alty y -loy heav 10% itcher y -sw M edium10% alty -loy M edium50% itcher -sw light 25% itcher -sw total

600 1,200 1,200 6,000 3,000 12,000

48 48 24 24 10

100% 30% 100% 30% 30%

15 10 15 10 10

432,000 172,800 432,000 432,000 90,000 1,558,800

ANY OPPORTUNITY?

BR

SOP x

CM

= CBV

segm ents

penetrat B uying S P C O M e rate

48 100% 48 50% 15 10 15 10 10

CV B

CV Bbefore

D if

heav 10% alty y -loy heav 10% y sw itcher M edium10% loy alty M edium50% sw itcher light 25% itcher -sw total

1,200 1,200 1,200 6,000 3,000 12,600

864,000 288,000 540,000 720,000 150,000

432,000 172,800 432,000 432,000 90,000

432,000 115,200 108,000 288,000 60,000

30 100% 24 10 50% 50%

2,562,000 1,558,800 1,003,200

workshop

worksheet  concept board

Concept Board : Key Elements

Consumer Insights Benefit Claim Reasons to Believe Reassurance Statement

Marketing objective

Determine marketing Objectives

         (Publicize a brand) Brand (Remind a Brand) (Increase demand) (Create an image) (Increase distribution for a product) (Sales Promotion) (Introduce New Product) (Feed Back to Competitors) (Information)

3. ( Marketing Objectives)

15%

12%

8% 2%

70%

50%

Marketing tools

4Ps and 4Cs of marketing

Product Customer needs and wants Cost to the customer Convenience

Price

Place

Promotion

Communication

Price v.s. Customer Cost

Monetary cost Time cost Effort/Energy cost Psychic cost Total customer cost

Other Factors

Price
? Position?

Price based on competition

(Pricing Below Competition Le

(Pricing Above Competition L

(Pricing At Competition L

(Skimming Prici

(Penetration Pr

Low cost airline

(Neutral P

(Discount and Allowances

(Cash Discount) (Forwar (Quantity Di (Promotional Allowances)

(Psychological Pricing)

(Prestige Pricing) (Odd Pricing)

Lose Leader Pricing

Segmented pricing
High-end
Middle-Low-end

Segmented by buyer identification

 Hair cut

Subscription fee for student is only 400 baht annually while 700 baht for others

Segmented by Purchase location  different prices for the same product sold in different location

Segmented by Product design

Segmented by time to purchase

Peak-Load Pricing  Occurs when demand varies at different times and the product is not storable i.e. services  restaurants, theatres,Airlines, hotels, electricity, long-distance call

Segmented by product bundling/Product Set

 Buffet Meal  Fastfoods set meal ex. KFC, McDonald  Holiday package including roundtrip air ticket, transportation and hotel rooms

Segmented by Tie-Ins and Metering

 Two-part Pricing:

/
 Amusement park : entrance fee and ticket charge for each ride  Fitness: entrance fee or annual fee and additional fee for classes such as yoga, tennis court time and light  Car rental: rental fee and mileage charge  UBC: installment and monthly fee  Franchisers: licensing and revenue sharing

 Satellite entertainment company offers a satellite dish and receiver unit for free, if buyer agrees to subscribe to a high priced entertainment package for a minimum of 12 or 24 months

 UBC gives away PCT for free if sign up for its land-line number

Place
(Channel of Distribution) ) (

Channel of Distribution Objectives  Ease of purchases by Consumers  Economical distribution costs  No out of stocks

Distribution Channel
Manufacturers/Suppliers/Distributors

Department Store/ Supermarkets

Wholesalers

Cash& Carry

Discount Store

Convenience Store

G-Store

Traditional Retailers

CONSUMERS

THAILAND RETAIL TRADE

[-Traditional-][------------------------Modern Outlet--------------------------------] Traditional-][------------------------Modern Outlet--------------------------------]
Traditional Retail & Wholesale Department Store Stand-Alone Supermarket Makro Cash & Carry Hypermarket/ DiscountStore Big-C Tesco Carrefour Convenience Personal Store DrugStore G-Store

Retailer Wholesaler

The Mall Tang Hua Seng

Tops Foodland Tesco Express

7-Eleven Family mart

Watsons Boots Siam Drug P&F

Tiger mart Select Lemon Green Jiffy

Tesco Express

Price Relationship

One-stop shopping Wide Selection

Convenience Freshness

Low Margins VolumeDriven House Brands

EDLP ImpulsivePromotion House Brands

Convenience Service Outlets

Convenience Pharmacy/ Cosmetic Look Wide spread Outlets

I:
middleman

(Direct Channel)=> No

Example: Land&House, Hotel, Spa, firmswebsites Yakult, Misteen

II:

(Indirect Channel)

Example: Brokerage firm, Hotel sales agent, consumer products,

automobiles, Sanitary ware, amazon.com

V.S.
Direct Channel Indirect Channel

1. 2. 3.

1. 2.

3. 1. 2. 1. 2.

Place

Normal Pricing Structure

     Consumer Price: Trade Margin: Retailing Price: Wholesaler Margin Wholesaler Price: Suggested Retail Price Gross Margin Listed Trade Price Lowest Trade Price

Margin in each level is a function of tasks performed; i.e. storage, credit risk, stock level, and so on.

Price Structure
120 120 120

Retailer
95 98

Retailer Wholesaler = 11%

88.6 93 90.5 89

Retailer Wholesaler = 3% Agent = 1.5%

Wholesaler = 5.5%
90

distributor = 19%
75.5

Jobbers = 9%

81

Mark-Down Pricing (Gross Profit)

M anufacturer Sellingprice W holesaler R etailer

24.00
100%

30.00
100%

50.00
100%

P rofit

2.40
10%

6.00
20%

20.00
40%

B uyingprice

21.60
90%

24.00
80%

30.00
60%

Mark-Up Pricing
M anufacturer Sellingprice W holesaler R etailer

23.76
110%

28.512
120%

39.9168
140%

P rofit

2.16
10%

4.752
20%

11.4048
40%

B uyingprice

21.60
100%

23.76
100%

28.512
100%

Big C Co de

Product De scriptio n

Pack Size

Pcs.

LTP

Dis count 1 2

Ne Cost t pe cas r e

Cos t/unit Cos t/unit Se lling Ex. Vat In. Vat Price

GP Baht

1 2 3

20m 0 l 20m 0 l 20m 0 l

Special Special Discount Discount 1 2

F inancial P lan G s S (L P ro s ales T )

Jan N al D orm iscount P otional D rom iscount T D otal iscount %D iscount (vsgrosssales) Listingfee 3S U Ks M (or m ondola) ail ail+G G ondola/F loor P (N spaper) ress ew R ebate A ssortm ent S openingdisc tore A nniversaryfee N year support ew S irthday toreB O : ther T AP otal & %A P(vsgrosssales) &

N S et ales

T tal A P+D c u t o & is o n %A P+ D (vsgrosssales) & isc.

Lets do price waterfall analysis

Baht dealer list price price net order size discount price net comparative discount invoice price price net payment term discount price net annual volume bonus price net off-invoice promotion price net co-op ad price net freight pocket price 600 590 578 578 548 511 476 456 447 447

Baht dealer list price price net order size discount price net comparative discount invoice price price net payment term discount price net annual volume bonus price net off-invoice promotion price net co-op ad price net freight pocket price 600 590 578 578 548 511 476 456 447 447

discount 10 12 30 37 35 20 9

dealer list price price net order size discount price net comparative invoice price price net payment term price net annual volume bonus price net off-invoice price net co-op ad price net freight pocket price 0 100

600 10 12 590 30 37 35 20 9 447

200

300

400

500

600

: IMC

Integrated Marketing Communication

Promotion

(Public Relation) (Direct Marketing)

Consistent&Clear message

(Advertising)

(Sales Promotion)

(Event Marketing)

1.

2.

3.

4.

5.

6.

1.

Television

1.

1.

2. 3.

2. 3. 4.

4.

5.
5. 6.

2.
1.

Radio
1. 2.

2. 3. 3. 4. 4.

3.
3.1
1.

(Newspaper)
1.

2.

2. 3.

3. 4.

4. 5.

5.

3.
3.2 (Magazine)
1. 2. 1. 2. 3. 3. 4. 5. 5. 4.

3.
3.3 (Direct Print Media)

1. 2. 3. 4.

Ex Direct mail

catalog
1. 2. 3. 4.

4.
4.1

Outdoor billboard, Trivision, Balloon, Build

1. 1.

2. 3. 4.

2. 3. 4. 5.

4.
4.2
-

(Exterior Trans
1.

1.

2. 3.

2. 3.

4.
4.2
-

(Interior Transit

Advertising)

Taxi
1. 1.

2.

2.

2 3.

5.
1.
1.

(Internet)

2.

3. 4.

2.

(Electronic Board)

(Sales Promotion)

(Sales Promotion)

Promotional pricing

NonNon-price promotions

Sampling

Price reductions Quantity discount Rebates Money off next purchase

Contests Free gifts Multi-brand promotion Guarantees and added services Mileage

Most effective in the early stages of a new product launch Important for food products Very expensive

( Public Relation )

(Publicity)

(Interview)
(Press Relation)

(Public Service Activities (Identity Media)

      

1.
Product/Brand Knowledge and experience

2.
Awareness

Brand

3.
Brand/ company image

1. 2. 3. 4. 5. 6.




Direct Marketing
(Direct Marketing)

1. 3.

2. 4.

Direct Marketing
 Can stimulate personal influences to work on their behave;
 Opinion leader  Testimonial advertising, product endorsement  Word-of-mouth / Buzz

Effective tools in delivering obj.

MC Objective  establish credibility and built trust  make a new announcement  create lifestyle associations  establish awareness &create image  create a sense of involvement  stimulate repeat purchase/trial  stimulate trade participation  reward frequency and loyalty  reach a tightly targeted audience  leverage social responsibility  stimulate referrals Most effective tools  PR  PR  Advertising, event  Advertising  Events  Sales promotion  Trade Promotion  frequency program  addressable media..dear Mr...  Mission Marketing  Club of affinity group

(Local Media)

Case Study: Marketing Promotion

1. . 2 -

Concept

Advertising Concept -

-Campaign -Objective  

Premium Product

1. 2. 3. 1 ( )

Pre Sale

300,000

80%

12 Brand Awareness

Billboard

/ 1 2 3 4 5 6 7 2 12x16 10x16 12x14 12x38 14x38 10x14 11x18 Yes Yes Yes 8,400 8,400 10,000 10,000 10,000 70,000 43,000 130,000 32,000 45,000 700,000 700,000 48,000 40,000 42,000 120,000 120,000 50,000

6 103,000 85,000 150,000 246,000 287,000 76,000 65,000 10,000 6,000

Yes Yes

1.2 * 2.40 1. 2. 3. 4. ( 2 70 ( 150 150 10 900,000 The Best 3 600 30 2) 20 30 ) ( )

/ 1 5 10 2 5 10 3 6 12 4 5 6 7 8 Home Buyer s Guide 30 30 30 30 30 147,000 91,000 130,500 73,000 70,000 40,000 33,000 30,000 61,000 38,000 57,000 735,000 910,800 652,500 738,000 420,000 480,000 990,000 900,000 1,836,000 1,147,000 1,708,000

10,518,300 Production 103,000

23*30 12

Concept

10,000

150

1,500,000

Direct Mail 23*30 ) 100,000 10

(4

500,000 50,000

5 (Direct Mail) 500,000

Billboard Spot 30

Spot 30 60,000

/ 1 97 Spot

30 Sec. 100

2 Min. 3,000 60 3,300 2,000 60 2,300 3,300 60 3,500 2,400 60 2,500 300,000 198,000 200,000 138,000 330,000 210,000 240,000 150,000 1,766,000

99.5

Spot

100

100.5

Spot

100

101

Spot

100

400

240

Brand Image

Web site Product

Web site 20,000 600,000 SPACE CHANNEL

30

1. 2. ( 3. ( 4. ( 4

2 The Mall ) 5

6 6 2

) Money Expor ) 20 ) 3

2 (

(20 . . 3 ) 1 Central 2 60,000 100,000

160,000

800,000

The Mall

50,000

100,000

150,000

750,000

150,000

200,000

350,000

700,000

Money Expo

200,000

200,000

400,000

1,200,000

3,800,000

(Discount)

   

32,000 / 12,800 - 14,000 36,000 / 14,000 15,200

. .

. .

1. 550 2. 3. ( Standard) 30 100,000 Gife Voucher Wallpaper 50,000

283 x 550 Gift Voucher 30 Units x 150,000

155,650 450,000

50,000

x 30

1,500,000

Marketing Promotion Budget & Action

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

1 2 3

11 11 11 11 11 10 10 10 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 283 Units

6.1 ./ 6.2 6.3 6,010,560 1,500,000 1,000,000 2,566,000 600,000 3,450,000 , 300,000 14,146,236 900,000

4 6

7 8 9

Check List

What?  

/ /

What is my competition?  ?  Who? And Why ?   ? How and How much ?  

4P
132