Management Consulting/Case study

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Question
hi sir !! this is zahidul haque.



1.Describe what is meant by the marketing mix.
2. Explain the purpose of promotion within the marketing mix.
3. Analyse why organisations might choose below-the-line
promotions in favour of above-the-line promotions.
4. Evaluate how sponsorships differ from other forms of
promotion.


pls solve the qustions

Answer

1.Describe what is meant by the marketing mix.

PRODUCT---Marketing Mix

The Marketing Mix model (also known as the 4 P's) can be used by marketers as a tool to assist in implementing the marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the marketing environment.
Once you've developed your marketing strategy, there is a "Seven P Formula" you should use to continually evaluate and reevaluate your business activities. These seven are: product, price, promotion, place, packaging, positioning and people. As products, markets, customers and needs change rapidly, you must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace.
Product
To begin with, develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not it's in the right business at this time. Ask critical questions such as, "Is your current product or service, or mix of products and services, appropriate and suitable for the market and the customers of today?"
Whenever you're having difficulty selling as much of your products or services as you'd like, you need to develop the habit of assessing your business honestly and asking, "Are these the right products or services for our customers today?"
Is there any product or service you're offering today that, knowing what you now know, you would not bring out again today? Compared to your competitors, is your product or service superior in some significant way to anything else available? If so, what is it? If not, could you develop an area of superiority? Should you be offering this product or service at all in the current marketplace?
Prices
The second P in the formula is price. Develop the habit of continually examining and reexamining the prices of the products and services you sell to make sure they're still appropriate to the realities of the current market. Sometimes you need to lower your prices. At other times, it may be appropriate to raise your prices. Many companies have found that the profitability of certain products or services doesn't justify the amount of effort and resources that go into producing them. By raising their prices, they may lose a percentage of their customers, but the remaining percentage generates a profit on every sale. Could this be appropriate for you?
Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading your price over a series of months or years, you can sell far more than you are today, and the interest you can charge will more than make up for the delay in cash receipts. Sometimes you can combine products and services together with special offers and special promotions. Sometimes you can include free additional items that cost you very little to produce but make your prices appear far more attractive to your customers.
In business, as in nature, whenever you experience resistance or frustration in any part of your sales or marketing activities, be open to revisiting that area. Be open to the possibility that your current pricing structure is not ideal for the current market. Be open to the need to revise your prices, if necessary, to remain competitive, to survive and thrive in a fast-changing marketplace.
Promotion
The third habit in marketing and sales is to think in terms of promotion all the time. Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them.
Small changes in the way you promote and sell your products can lead to dramatic changes in your results. Even small changes in your advertising can lead immediately to higher sales. Experienced copywriters can often increase the response rate from advertising by 500 percent by simply changing the headline on an advertisement.
Large and small companies in every industry continually experiment with different ways of advertising, promoting, and selling their products and services. And here is the rule: Whatever method of marketing and sales you're using today will, sooner or later, stop working. Sometimes it will stop working for reasons you know, and sometimes it will be for reasons you don't know. In either case, your methods of marketing and sales will eventually stop working, and you'll have to develop new sales, marketing and advertising approaches, offerings, and strategies.
Place
The fourth P in the marketing mix is the place where your product or service is actually sold. Develop the habit of reviewing and reflecting upon the exact location where the customer meets the salesperson. Sometimes a change in place can lead to a rapid increase in sales.
You can sell your product in many different places. Some companies use direct selling, sending their salespeople out to personally meet and talk with the prospect. Some sell by telemarketing. Some sell through catalogs or mail order. Some sell at trade shows or in retail establishments. Some sell in joint ventures with other similar products or services. Some companies use manufacturers' representatives or distributors. Many companies use a combination of one or more of these methods.
In each case, the entrepreneur must make the right choice about the very best location or place for the customer to receive essential buying information on the product or service needed to make a buying decision. What is yours? In what way should you change it? Where else could you offer your products or services?
Packaging
The fifth element in the marketing mix is the packaging. Develop the habit of standing back and looking at every visual element in the packaging of your product or service through the eyes of a critical prospect. Remember, people form their first impression about you within the first 30 seconds of seeing you or some element of your company. Small improvements in the packaging or external appearance of your product or service can often lead to completely different reactions from your customers.
With regard to the packaging of your company, your product or service, you should think in terms of everything that the customer sees from the first moment of contact with your company all the way through the purchasing process.
Packaging refers to the way your product or service appears from the outside. Packaging also refers to your people and how they dress and groom. It refers to your offices, your waiting rooms, your brochures, your correspondence and every single visual element about your company. Everything counts. Everything helps or hurts. Everything affects your customer's confidence about dealing with you.
When IBM started under the guidance of Thomas J. Watson, Sr., he very early concluded that fully 99 percent of the visual contact a customer would have with his company, at least initially, would be represented by IBM salespeople. Because IBM was selling relatively sophisticated high-tech equipment, Watson knew customers would have to have a high level of confidence in the credibility of the salesperson. He therefore instituted a dress and grooming code that became an inflexible set of rules and regulations within IBM.
As a result, every salesperson was required to look like a professional in every respect. Every element of their clothing-including dark suits, dark ties, white shirts, conservative hairstyles, shined shoes, clean fingernails-and every other feature gave off the message of professionalism and competence. One of the highest compliments a person could receive was, "You look like someone from IBM."
Positioning
The next P is positioning. You should develop the habit of thinking continually about how you are positioned in the hearts and minds of your customers. How do people think and talk about you when you're not present? How do people think and talk about your company? What positioning do you have in your market, in terms of the specific words people use when they describe you and your offerings to others?
In the famous book by Al Reis and Jack Trout, Positioning, the authors point out that how you are seen and thought about by your customers is the critical determinant of your success in a competitive marketplace. Attribution theory says that most customers think of you in terms of a single attribute, either positive or negative. Sometimes it's "service." Sometimes it's "excellence." Sometimes it's "quality engineering," as with Mercedes Benz. Sometimes it's "the ultimate driving machine," as with BMW. In every case, how deeply entrenched that attribute is in the minds of your customers and prospective customers determines how readily they'll buy your product or service and how much they'll pay.
Develop the habit of thinking about how you could improve your positioning. Begin by determining the position you'd like to have. If you could create the ideal impression in the hearts and minds of your customers, what would it be? What would you have to do in every customer interaction to get your customers to think and talk about in that specific way? What changes do you need to make in the way interact with customers today in order to be seen as the very best choice for your customers of tomorrow?
People
The final P of the marketing mix is people. Develop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities.
It's amazing how many entrepreneurs and businesspeople will work extremely hard to think through every element of the marketing strategy and the marketing mix, and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person, in a specific way.  Your ability to select, recruit, hire and retain the proper people, with the skills and abilities to do the job you need to have done, is more important than everything else put together.
The most important factor applied by the best companies was that they first of all "got the right people on the bus, and the wrong people off the bus." Once these companies had hired the right people, the second step was to "get the right people in the right seats on the bus."
To be successful in business, you must develop the habit of thinking in terms of exactly who is going to carry out each task and responsibility. In many cases, it's not possible to move forward until you can attract and put the right person into the right position. Many of the best business plans ever developed sit on shelves today because the [people who created them] could not find the key people who could execute those plans.

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2. Explain the purpose of promotion within the marketing mix.


THE  PROMOTION   IS   A  MAJOR  ELEMENT  OF  THE  POPULAR
4 Ps  of   the   MARKETING  MIX.
THE  PROMOTION  IS  IMPORTANT  IN  ANY  MARKETING  CAMPAIGN
FOR  ANY  PRODUCT.
BUT  ITS  IMPORTANCE   RISES   AT  THE  POINTS  OF  NEW PRODUCT
-the  introductory  stage.
-the  growth   stage.

AT   THE  INTRODUCTORY / GROWTH   STAGES,
THE  EMPHASIS  IS  ON
-making  entry  presence  felt.
-building  product  awareness  among  the  potential  users.
-increase the  customer  acceptance
-induce  trial  by customers
-increase / maximize  sales  volume.
-increase  market  share
-meet / overcome   competition
etc etc
==================================
MAJOR  OBJECTIVES  OF    PROMOTIONS.
-to support  the  marketing  program.
-to support the  sales team drive
-to  support  the  sales  channels - trade.
-to  accelerate  the  sales
-to drive  the  people  traffic to  the  point  of  sales.
-to stimulate the people  to make  the  buying  decision.
-to influence  the  people  to  choose a  particular brand.
-to  help the  retail to  move  the  merchandise
-to help  to  liquidate  the  stocks.
-to  help to  overcome  the competition.
-to  help  to  gain the  market  share
-to draw the  customers'  attention  towards  the  product on the  shelf.
etc etc
----------------------------------------------------------------------
AS  FOR   THE  ELEMENTS  OF  PROMOTIONS,  YOUR  SELECTION  
WILL  DEPEND   ON  THE  FOLLOWING
-nature  of  the  product
-market  situation
-sales  situation
-marketing /  sales objectives
-budget
etc  etc
=================================
THE PROMOTIONAL  MIX  ARE:
Personal Selling ,
-here the marketing communication is used
*to  inform the customers/ prospects
*to  create awareness
*to  present  the product
*to  influence the  customer
*to  sell  benefits
*to help  the  customer to  make the  buying  decision
*to  seek  commitment
*to  help  to  close the  sale.
--------------------------------------
Sales Promotion
-here the  marketing  communication is  used
*to inform  the  customers
*to  physically present
*to influence  the  customers
*to help  the  customers  to feel the  product
*to help  the  customer to  make the  buying  decision
*to offer  consumer incentives
*to  help  the  final  transactions
--------------------------------------------
Public Relations (and publicity)
-here the  marketing  communication is  used
*to  publicise  the company
*to  publicise  the  product
*to publicise  the  company's  research/ development
*to  publicise the  company  image
*to  create  the  company  brand
*to  inform  public
*to  communicate  with the community.
*to  establish  relations  with government  
*to  establish   community  relations
--------------------------------------------------
Direct Mail
-here the  marketing  communication is  used
*to  inform
*to  talk  to  individuals
*to  focus  on  niche  market
*to inform the  decision  makers  directly
*to   advertise cost efficiently
*to promote selected  market  segments
*to contact individuals  for  one-to-one  marketing
----------------------------------------------------------------------
Trade Fairs and Exhibitions
-here the  marketing  communication is  used
*to  inform  individuals
*to  provide  visibility
*to  talk  to  individuals
*to inform the  decision  makers  directly
*to   advertise cost efficiently
*to promote person to  person
*to contact individuals  for  one-to-one  marketing
--------------------------------------------------------------------
Advertising (above and below the line)
-here the  marketing  communication is  used
ABOVE  THE  LINE
*to  MASS  inform the customers/ prospects
*to  create MASS awareness
*to  present  the product
*to  influence the  customer
*to  sell  benefits
*to help  the  customer to  make the  buying  decision

BELOW  THE  LINE
*to  physically present
*to make it  visible at  the  point  of sale.
*to influence  the  customers
*to help  the  customers  to feel the  product
*to help  the  customer to  make the  buying  decision
*to offer  consumer incentives
*to  help  the  final  transactions
*to  display  and promote
*to  merchandise the product
------------------------------------------------------------------------------
Sponsorship
-here the  marketing  communication is  used
*to  MASS  inform the customers/ prospects
*to  create MASS awareness
*to  present  the product
*to  influence the  customer
*to  sell  benefits
---------------------------------------------------------
Packaging -here the  marketing  communication is  used
-here the  marketing  communication is  used
*to  MASS  inform the customers/ prospects
*to  create MASS awareness
*to  present  the product
*to  influence the  customer
*to  make  it  visible  at  the  point  of  sale
--------------------------------------------------------------
Merchandising (and point-of-sale)  
-here the  marketing  communication is  used
*to create visiblity  at the point of  sale.
*to influence  the  customers
*to help  the  customers  to feel the  product
*to help  the  customer to  make the  buying  decision
*to offer  consumer incentives
*to  help  the  final  transactions
*to  display  and promote
*to  merchandise the product
--------------------------------------------------------------------
EMarketing (and Internet promotions)
-here the  marketing  communication is  used
*to  inform
*to  talk  to  individuals
*to  focus  on  niche  market
*to inform the  decision  makers  directly
*to   advertise cost efficiently
----------------------------------------------------------------
Branding (and corporate identity)
-here the  marketing  communication is  used
*to  create an  unique position  for the company
*to create  an  unique  position  for the product
*to create unique visibility
*to make it  easy to  identify
*to  make it easy to  buy
*to make it  easy  to  sell
-----------------------------------------------------------
ALL  THE  MARKETING  COMMUNICATION EFFORTS  ARE  DIRECTED
-TO  MAKE  IT EASY  FOR  THE  CUSTOMERS  TO  MAKE  THE BUYING  DECISION.
-HENCE  MORE  SALES.


1.   Promotion Issues
Describe the decisions related to how the product will be promoted. In general, promotion consists of four major areas – advertising, sales promotion, public relations and personal selling – though not all may be used. Timetables for promotion are important since certain types of promotions (e.g., magazine ads, trade shows) require long lead times. Most information in this section can be shown in tables and graphs. Each of the four promotion areas is separated out, however, some planners find it easier to combine the areas. For instance, the promotional areas could be combined within special promotion programs, such as Holiday Promotion Program, Summer Promotion Program, etc.

•   Brief summary of current promotional decisions for users and distributors in terms of:
•   General description for four promotional areas:
•   advertising
•   sales promotion
•   personal selling
•   public relations
•   Message/theme
•   Methods used:
•   Summarize methods used
•   Summarize spending for each method
•   Interrelation of four promotional areas
•   e.g., explain how advertising supports sales promotion
•   Identify planned changes:
•   Summarize changes
•   Justify changes:
•   Due to results
•   Due to research
•   Due to competition
•   Others
•   Describe planned changes:
•   Identify changes directed to the targeted user market:
•   General description for four promotional areas:
•   Objectives
•   Advertising - e.g., build general awareness/inquiries/traffic, encourage product trial, shift awareness (e.g., change attitude), response to competitor promotion, increase use or purchase rate, support other market decisions (e.g., support sales force), general corporate/product image building, etc.
•   Sales promotion - e.g., build inquires, increase product trial, encourage repurchase, build traffic, support other promotions
•   Personal selling - e.g., new account development, account support/maintenance, increase product trial, encourage purchase/repurchase, build traffic, support other promotions
•   Public relations - e.g., build general awareness/inquiries/traffic, encourage product trial, shift awareness (e.g., change attitude), respond to negative news/perception, image building, prepare markets for future activity (e.g., new product)
•   Methods and message:
•   type and media used: e.g., ad type (e.g., television spots, Internet banner ads, roadside billboards, direct mail, etc.) , sales promotion type (e.g., coupons, demonstrations, etc.), selling type (e.g., sales force, call center), pr type (e.g., press release, pitch to magazines, etc.)
•   message conveyed
•   Spending and timetables
•   total
•   sub-divided by:
•   type
•   e.g., ad spending, sales force compensation
•   media used
•   targeted users
•   Identify planned changes directed to the distributor network:
•   General description
•   Objectives
•   Advertising - e.g., build general awareness/inquiries, encourage product handling, shift awareness (e.g., change attitude), response to competitor promotion, increase purchase rate, support other market decisions (e.g., support sales force), general corporate/product image building, etc.
•   Sales promotion - e.g., build inquires, encouraging inventory building, support other promotions, encourage handling of new products, obtain distributor assistance
•   Personal Selling - e.g., new account development, account support/maintenance, encourage purchase/repurchase/inventory building
•   Public Relations - e.g., build general awareness/inquiries/traffic, encourage distribution trial, shift awareness (e.g., change attitude), respond to negative news/perception, image building, prepare markets for future activity (e.g., new product)
•   Methods and message
•   type and media
•   message conveyed
•   Spending and timetables
•   total
•   sub-divided by:
•   type
•   media used
•   targeted distributor network
THIS   IS  HOW  THE  MARKETING  MIX / PROMOTION   MIX  IS  FINALIZED.
========================================

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3. Analyse why organisations might choose below-the-line promotions in favour of above-the-line promotions.

Advertising (above and below the line)
-here the  marketing  communication is  used
ABOVE  THE  LINE
*to  MASS  inform the customers/ prospects
*to  create MASS awareness
*to  present  the product
*to  influence the  customer
*to  sell  benefits
*to help  the  customer to  make the  buying  decision

BELOW  THE  LINE
*to  physically present
*to make it  visible at  the  point  of sale.
*to influence  the  customers
*to help  the  customers  to feel the  product
*to help  the  customer to  make the  buying  decision
*to offer  consumer incentives
*to  help  the  final  transactions
*to  display  and promote
*to  merchandise the product
------------------------------------------------------------------------------

Reasons may include:
• xxxxx   has more control over below-the-line methods
• Below-the-line promotion can be used to target specific groups of  Customers
• Below-the-line promotion is often less expensive than mass media advertising
• Below-the-line methods can be used to reinforce or follow up a message
given through advertising e.g. point-of-sale displays used following a TV
advertising campaign
• Below-the-line uses methods other than mass media advertising.
• An organisation has more control over below-the-line promotion.
• This type of promotion can be used to reach a specific target market.
• Below-the-line promotional methods are often less expensive than above-theline
promotion.
• Methods of this type of promotion include: sales promotion, sponsorship,
direct mail, point-of-sale displays, public relations.
• Businesses can utilise social media and technology for below-the-line
promotion, e.g. Facebook, Twitter



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4. Evaluate how sponsorships differ from other forms of promotion.

Sponsorship
-here the  marketing  communication is  used
*to  MASS  inform the customers/ prospects
*to  create MASS awareness
*to  present  the product
*to  influence the  customer
*to  sell  benefits
---------------------------------------------------------
direct and indirect objectives. In the direct objective ‘the sponsor expects a rapid change in behaviour of its existing and potential customers’. While in the indirect objective the authors maintain that it is ‘primarily for increased visibility to both brands and products, contact with a particular segment of its client base and an enhancement of its image; alongside growth in sales are only a long-term goal’.




there are five major principals of sponsorship objective. These objectives include creating promotional opportunities, improving community relations, fostering favourable brand and company associations, creating entertainment opportunities and gaining publicity.

Creating promotional opportunities
Sponsoring events is a great way for companies to promote their brands, logos and products . Items and products such as sweatshirts, pens and bags can have a company’s logo in order to reach a wider audience for easy retention and recognition.

Improving community relations

Social responsibility is a factor of why companies get involved in sponsorship. Sponsorship of schools can help boost the reputation of a company in its given community. This will give a caring and socially responsible image to the consumers . A major factor for Metso and Sonera.


Fostering favourable brand and company associations

This objective is linked to association for a company or brand . The point is meant for a company to associate itself with an event and hopefully, the positivity of the event can be relayed to their products as well.

Creating entertainment opportunities

Jobber also argues that companies sponsor events not only for publicity but also to reach out to customers that are highly placed in various fields. Successful employees also benefit from this as they are highly rewarded when top celebrities participate in an organized event.

Gaining publicity

Sponsorship provides a good platform to reach millions of audience worldwide where some of them are likely to become customers due to the publicity provided by various media coverage internationally which aids in facilitating this process.


Objectives
a sponsorship should produce an outcome that matches well with the image that the sponsor is trying to convey. Any sponsorship should therefore produce an image which is so superior that it clearly differentiates the firm from its competitors .


An example of corporate objectives for sponsorships is when Nike used Michael Jordan to promote their company (Amis et al, 1999). This was done in order to build pride into the company and also to develop the corporate culture . Providing a clear direction of where the company is heading and increasing the corporate morale may itself become a source of competitive advantage for the company .


Increasing public awareness of a brand or company
one of the most common objectives for a company entering into a sponsorship is to increase the public awareness of either the company or of a specific brand.
Changing or enhancing company or brand image and reputation

Image and reputation can be seen as resources which enables a company to secure a competitive advantage . sponsorship has,, been proven to be an effective tool to either change or enhance company or brand image reputation




The following were listed starting with the most important:
1. Improving goodwill
2. Enhancing image
3. Increasing awareness
4. Improving profitability
5. Management interest
6. Staff recruitment

1. Enhancing corporate image
2. Increase brand awareness
3. Stimulate sales
4. Corporate reputation
5. Alter public perceptions
6. Build relationships
7. Create goodwill
8. Enhance employee motivation


1. To increase public awareness of the company, the product, or both
2. To alter or reinforce public perception of the company
3. To identify the company with the particular market segments
4. To involve the company in the community
5. To build goodwill among decision makers
6. To generate media benefits
7. To achieve sales objectives
8. To showcase unique product features, technologies, or advantages
9. To create an advantage over competitors, through association or exclusivity
10. To gain unique opportunities in terms of hospitality and entertainment
11. To secure entitlement or naming

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