Consolidation: Marketing

Steps of product design:

- Generate new idea

- Screen/evaluate the idea
- Test and develop concept
- Bus analysis
- Market testing
- Technical implication
- Commercialism
- Product review and pricing adjustments

Marketing communication policy:

- Focus- improve sales, generate higher profitability

- Effective commun of p/s with existing/potential cust
- Strong m comm with customers to maintain interest in the bus/purchasing products
- Directed by info based on market research- speaks to needs and wants of customers

Marketing activities:

Standardization and grading

Financing

Storage: kwwping products safe for preservation after manufacturing

Transport: the movement of products/exportation to other countries

Risk-bearing: provides opp to reduce losses incurred should a venture not succeed, by sharing risk
with another party

Buying and selling- process of exch g/s for money

Factors influencing pricing:

1) Input costs: higher=higher final price

2) Demand for the product= higher volume producd= lower final price
3) Target market: income level affect
4) Type of product: luxuries are priced higher
5) Pricing technique used: promotion could be lower than demand-orientated
6) Compettive/substitute p: a high price may result in loss of sales to the sub. Compleme goods
increase same time
7) Avaliability of certain goods/services

Advterising media:

- Printed media, broadcast media, direct mail and web-based mail

Sales promotion:

- Short-term tactics used by bus to promote products or services and increase demand
- Customer-orientated strategies the bus applies to increase sales of p/s
 - Used to spread information to exisiting customers
- Used to attract new potential customers
- Used to complement exisiting promotion methods

Role of public relations in publicity:

- Aim to present a favourable image of the bus and its p/s

- Strive for external stakeholders to see bus in positive light
- Play a role in developing positive publicity and minimizing effects of negative publicity.
- PR manager develops sound relationships with the press/media
- Interrelated with marketing func to create brand loyalty
-

Sales promotion:

- BOGOF
- Free gifts
- Customer loyalty card
- Competitions
- Free samples
- Discounts
- POS promotion
- Green marketing

Effectivness of P selling:

- Flexible process- sales people can tailor their presentation to meet certain
needs/preferences of customers.
- Resolves any misunderstandings or negative thoughts a consumer may have about a product
through effective demonstration and promotion
- Enhances customer loyalty as it is a powerful source of customer feedback
- Increases immediate sales- as it is directed at potential members of the TM
- Creates/improves brand awareness with exis/new customers

Distribution:

Direct channels Indirect channels

Organised and managed by the bus itself
Channels allow cust to buy directly from
producers
Price of product is reasonable
Relies on intermediaries to perform most
distribution functions
Move products through their distribution
channels to get to consumers
Price is quite high

Diff intemmediaries:

1) Wholesalers: buy in bulk from manufactuers store in warehouses and sell in small quantities
to retailers.
2) Agents: act as representatives for manufacturers and wholesalers. They don’t take
ownerships for products
 3) Retailers: buy in large quantities from manuf and wholesaler. Sell smaller quantities to
consumers
4) Brokers: sales intemeddiaries. Don’t take ownership. Short-term relationship

Marketing communication policy:

To increase sales and generate higher profitability of a bus

Strong marketing communication to maintain cust interest/

AIDA:

Attract: ads should immediately grab the attention of potential customers

Interest: create interest in the product through orgianl, punchy, informational ads

Desire: nuture consumer desire buy using positive arguemenys to build desires

Action: induce by using a call-to-action, rely on other stages.

E-marketing:

- Process of planning and executing the concept, distribution,promotion and pricing of p/s in a
computerized network environ

1 Email-marketing

2) Websites

3) Mobile marketinh

Blogging

Youtube

Social networking

Search engine marketing

Adv of informal sector marketing:

- Don’t need education or expertise to enter the sector.

- Easy and inexp to enter
- Provides job opp for unemployed people
- There is little competition in this sector

Ways in which used indirect distribution:

- Spaza shops purchase stock from wholesalers

- Farmers deliver produce to spaxa shops
- Informal bus rely on agents to distribute info

Allignment of P function to meet global demand:

- Products must be adapted/modify to suit customer needs

- Production methods implemented cab change- some countries have strict quality and safety
requirements
- Diff standards in terms of quality. Export products must meet international standards
- Process should be efficient as possible and appropriate for the type of g/s