Jeni Ghina Syifa

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Perikanan C

Resume November, 21st 2021 “Marketing Program”

Speaker : Assoc. Prof. Dr. Azizul Yadi Yaakop

Introduction Marketing Program

 Strategic combination of four marketing mix elements
- Aimed at maximizing tangible, intangible, and perceptual attributes of a complete
offering
 Commoditization
- Core product is incapable of differentiating the offering from that of the competition
- Most organization try to enhance the service and symbolic elements of their offerings
by changing price, distributions, or promotion

Product Strategy
 Most critical strategic decision in a marketing plan
- Involves design, development, branding, and positioning decisions
 Real value of offerings
- Ability to deliver benefits that enhance customer’s situation or solves a customer’s
problems
 Products fall into two general categories
- Customer products – For personal use and enjoyment
- Business products – For resale, use in making other products, or use in firm’s
operations
Types of Consumer and Business Products
 Consumer products
- Convenience products – Keropok lekor
- Shopping product – Laptop
- Speciality products – Rolex; Ferrari
- Unsought products – Emergency medicine; Insurance policy
Exhibit 6.3 – Unique Characteristics of Services and Resulting Marketing Challenges
Service Characteristics Marketing Challenges
Intangibility It is difficult for customers to evaluate
 quality, especially before purchase and
consumption. It is difficult to convey service
characteristics and benefits in promotion. As a
result, the firm is forced to sell a promise.
Many services have few standardized units of
measurement. Therefore, service prices are
difficult to set and justify. Customers cannot
take possession of service.
Simultaneous Production and Consumption Customers or their possessions must be
present during service delivery. Other
customers can affect service outcomes
including service quality and customer
satisfaction. Service employees are critical
because they must interact with customers to
deliver service. Converting high-contact
services to low-contact services will lower
costs but may reduce service quality. Service
are often difficult to distribute.
Perishable Services cannot be inventoried for later use.
Therefore, unused service capacity is lost
forever. Service demand is very time-and-
place sensitive. As a result, it is difficult to
balance supply and demand, especially during
periods of peak demand. Service facilities and
equipment sit idle during periods of off-peak
demand.
Heterogeneity Service quality varies across people, time, and
place, making it very difficult to deliver good
service consistently. There are limited
opportunities to standardize service delivery.
Many services are customizable by nature.
However, customization can dramatically
increase the costs of providing the service.
Client-Based Relationships Most services live or die by maintaining a
satisfied clientele over the long term.
Generating repeat business is crucial for the
service firm’s success.

Issues in Product Strategy : Developing New Products

 Crucial to a firm’s effort to sustain growth and profits
 Factors affecting sales potential of new product
- Firm’s ability to create differential advantage
- Market characteristics
- Defined market opportunity
 - Customer perception
New Product Development Process
 Idea generation
 Screening and evaluation
 Development
 Test marketing
 Commercialization
Pricing Strategy
 Relation to revenue equation (revenue = price x quantity sold)
 Easily changeable marketing variable
 Important consideration in competitive intelligence
 Only real means of differentiation in highly commoditized markets
Issues in Pricing Strategy : Using the Firm’s Cost Structure
 Breakeven in units
Total ¿ Costs ¿
Unit Price−Unit Variable Costs

 Selling price
Average Unit Costs
1−Markup Percent (decimal)
Issues in Pricing Strategy : Perceived Value
 Value
- Customer’s subjective evaluation of benefits relative to costs
- Helps determine worth of a firm’s product-offering relative to other product offerings
- Intricately tied to all marketing program elements
- Key factor in customer satisfaction and retention
 Customer benefits
- Everything customers obtain from an offering
 Customer costs
- Everything the customer must give up
Issues in Pricing Strategy : Price/Revenue Relationship
 Myth #1 – When business is good, a price cut will capture greater market share
 Myth #2 – When business is bad, a price cut will stimulate sales
 Price cutting should be offset by increase in sales volume to maintain revenue level
 To stimulate sales and revenue, build value into the product offering at the same, or even
a higher price
Issues in Pricing Strategy : Price Elasticity
 Customer’s sensitivity to changes in price
 Relative impact on the demand for a product
- Specific increases or decreases in the price charged for that product is given
 Situation that increase price elasticity :
- Availability of substitute products
- Higher total expenditure
- Noticeable price differences
- Easy price comparisons
Service Pricing and Yield Management
 Service pricing
- Helps balance supply and demand during peak and off-peak demand times
 Yield management
- Allows firms to simultaneously control capacity and demand
Control capacity by limiting available capacity at certain price points

Place Strategy (Supply chain strategy)

 Marketing channels
- Organized system of marketing institutions
- Facilitate flow of products, resources, information, funds, or product ownership from
point of production to final user
 Physical distribution
- Coordinating flow of information and products among members of the channel
- Helps ensure that products are available in right places, in right quantities, at right
times, and in a cost-efficient manner
 Supply chain
- Connection and integration of all members of the marketing channel
Factors Affecting Supply Chain Integration
 Connectivity
- Informational and technological linkages among firms
 Community
- Compatible goals and objectives among firms
 Collaboration
Recognition of mutual independence among firms
Strategic Supply Chain Issues
 Importance of supply chain is to provide time, place, and possession utility
 Minimize total costs by balancing the needs of the customer and organization
Strategic Supply Chain Issues : Marketing Channel Functions
 Basic benefit is contact efficiency
 Channel functions
- Sorting
- Breaking bulk
- Maintaining inventories
- Maintaining convenient locations
- Provide services
 All functions must be performed regardless of who does them

Promotion Strategy : Integrated marking communications (IMC)

 Strategic, coordinated use of promotion
- Used to create one consistent message across multiple channels
- Ensures maximum persuasive impact on firm’s current and potential customers
 Takes a 360-degress view of the customer
 Importance
- Fosters long-term relationships
- Reduces or eliminates promotional redundancies
- Technology helps target customers directly
Components of IMC Strategy
 Advertising
- Print
- Broadcast
- Online/interactive
- Wireless
- Direct marketing
 Public relations
- Publicity
- Press releases
- Newsletters
 Personal selling
- Account management
- Prospecting
- Retail sales
 Sales promotion
- Consumer promotion
- Trade promotion
Advertising
  One of the most visible elements of IMC program
 Paid and non-personal communication transmitted via media
 Cost efficient when used to reach a mass audience
 Decline in traditional media has caused increases in the use of internet-based advertising
- Mobile advertising is the fastest growing segment
Challenges in Advertising
 High initial expense for advertising, especially for television
 Difficulty in allocating advertising funds
 Difficulty in evaluating effectiveness of advertisements
 Permissibility of advertising content
Public Relations
 Part of firm’s corporate affairs
 Goals
- Track public attitudes
- Identify issues that may elicit public concern
- Develop programs to create and maintain positive relationships
 Uses
- Promote the firm, its people, ideas, and image
- Create an internal shared understanding among employees
- Improve general brand awareness
 Often confused with publicity, which is created to gain media attention
Personal Selling
 Paid personal communication
- Informs customers about offerings and persuades them to buy
 Most precise form of communication, but has very high cost per contact
 Goals vary based on role in the IMC strategy
 Has evolved to take on elements of customer service and marketing research
 Frontline knowledge held by the sales force is one of the most important assets of the
firm
Sales Promotion
 Accounts for the bulk of promotional spending in many firms
 Activities that create buyer incentives to purchase a product
- Add value for buyer or the trade
 Universal goal
- To induce product trial and purchase
 Used to support other promotional activities rather than as a stand-alone promotional
element
Methods of Consumer Sales Promotion
 Coupons
 Rebates
 Samples
 Loyalty programs
 Point-of-purchase promotion
 Premiums
 Contests and sweepstakes
 Direct mail