Marketing Toolbox

MARKETING TOOLBOX

YOUR LOGO

BASICS

Definitions / Explanations

Marketing Orientation

Orientation in companies which strongly influenced the development of marketing

Technological Orientation Marketing Orientation

(innovation, perfectionism) (market share, competitive advantage)

Employee Orientation Customer Orientation

(satisfaction, qualification) (customer satisfaction, customer loyalty)

Efficiency Orientation Financial Orientation

(optimization, cost reduction) (result, revenue, profitability, liquidity)

Social Orientation Quality Orientation

(environment, public, image) (improvement, ISO-certification, quality price)

Marketing Orientation

Important factors where marketing strategy is relevant

Technological Employee Efficiency Social
orientation orientation orientation orientation

(innovation, (satisfaction, (optimization, (environment,
perfectionism) qualification) cost reduction) public, image)

Marketing Customer Financial Quality
orientation orientation orientation orientation

(market share, (customer satisfaction, (earnings, profits, profitability, (quality improvement,
competitive advantage) customer loyalty) liquidity) ISO- certification,
price of quality)

Marketing Triangle

Company, employees and customer

Company

Employee Marketing Customer
Triangle

interactive marketing

Marketing - Need and Product

Interaction of need, demand, requirement, offer and products on the market

Needs Demand Mar- Offer Product
Require- ket

ment

Marketing

Marketingface (Prof. R. Kühn)

Analysen Your company Ecological Index
environment
1. Your company Marketing Marketing pressure
2. Competitors -Mix Competitors Demand
3. Distributors
4. External influences political Marketing econ.
5. Customers environment -Mix environment
6. Environmental factors
Distribution
natural Intermediate and trade Intermediate technol.
partner
environment trade trade environment
Marketing
-Mix

social Competitors media
environment environment
legal
environment

Marketing - Simple Model

Model of a simplified marketing system and connection between provider and market

Communication to Market / Information

Provider Delivery of Product / service Market

Provider of the Transaction Overall market
product or service of customers and
Payments interested parties

Feedback to provider / information

Definition Marketing

All activities and processes for the creation,
implementation and maintenance of

transactional relationships to exchange products
in terms of satisfaction of needs (or corporate
objectives) to the most favorable conditions.

Definition Marketing

Customer satisfaction is the feeling
resulting from the comparison of actual
benefit of the purchase to the anticipated benefit

prior to the purchase.

Definition Marketing

Marketing research involves the collection,
analysis and interpretation of information about
the marketing situation and the effectiveness of
marketing tools to support marketing decisions.

Definition Marketing

A market consists of all actual and potential
customers with a specific need, which the
company tries to satisfy with their product.

Scharf / Schubert (1995)

Definition Marketing

Every company is an accumulation of tasks,
with which its product is designed, manufactured,

distributed, supplied and supported. All these
tasks can be displayed in a value chain.

Michael E. Porter (1985)

Definition Marketing

Marketing is the activity, set of institutions,
and processes for creating, communicating,delivering,

and exchanging offerings that have value for
customers, clients, partners, and society at large.

The American Marketing Association (Oct 2007)

Definition Marketing

Marketing research is the function that links the
consumer, customer, and public to the marketer
through information - information used to identify
and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve

understanding of marketing as a process.

The American Marketing Association (2004)

Definition Marketing

Marketing research specifies the information
required to address these issues, designs the method
for collecting information, manages and implements
the data collection process, analyzes the results, and

communicates the findings and their implications.

Definition Marketing

Division of an overall market according to its
market reaction into internally homogeneous and
heterogeneous subgroups (market segments) and

the processing of one or more of these market
segments with a specific marketing mix.

Marketing - Perspectives

Differentiation of 3 perspectives: The entrepreneurial approach (philosophy), instrumentation (technology)
and management concept

Marketing

Philosophy Technology Management

Orientation of the marketing Orientation of the marketing to Orientation of the marketing to
to the most optimal the most optimal the most optimal

satisfaction of all customer effect of marketing instruments process development, analysis,
requirements planning, steering and
controlling of all
marketing activities

Development Phases of Marketing

Development phases in the last 100 years

Production Sales and distribution Market and competition Customer / individual
orientation orientation orientation orientation

sales advertisement marketing mix marketing implementation market oriented company management
sales customer relationship
1900 - 1920 product policy marketing mix management (CRM)
approx. 1920 - 1950 price policy
product policy marketing implementation
communication policy price policy
distribution policy marketing mix
communication policy
approx. 1950 - 1980 distribution policy product policy

approx. 1980 - 1990 price policy

communication policy

distribution policy

mix extension

since 1990

Development of Marketing

Development steps of Marketing

Product orientation Market orientation Environment orientation Network orientation

Pure production due to Specialization on individual Response to environmental, Web 2.0, social networks,
popular demand needs and market political, technological or Word of Mouth
(eg postwar period) segmentation societal changes

2020 2021 2022 2023 2024 2025 2026

Sales orientation Competition Dialog orientation

Change from the Production orientation Interactive design of communication
to distribution through the internet, e-mails
Emphasis on unique
selling points (USP’s)

Marketing Pyramid

Pyramid with (higher-ranked) marketing objectives on the top

Marketing
objectives

Marketing
strategies

Marketing instruments

Product- and Price and Communication Distribution

program policy condition policy policy policy

Marketing - Classical vs. Alternative Marketing

Overview of some marketing tools

Classical Marketing Alternative Marketing

Public relations Guerilla marketing Viral marketing

Outside advertisement / Search engines
Billboard advertisement Mobile marketing

Radio / TV / Movies Direct marketing

Print media Sales promotion

Product placement

Classical advertisement Fairs / Exhibitions

Sponsoring Event marketing

Values

Division of values f​ rom the perspective of the suppliers and demanders

 Differentiated perceptions of performance Cost of Total benefits
of a product from the demand side. performance

 Purchase price should be less than the total Net benefits
benefits, so it creates an increase of the net
benefits for the buyer. Usage costs Acquirement
price
 The manufacturer must create the product so Retail price
the usage costs are relatively low, which also Prime costs Purchase price
lead to a high perceived value.
Profit
 Benefits must be higher than the purchase
price (from an economic point of view) Own performance costs Costs

 Objectives for marketing: External service costs
1. Cost benefits by reducing the prime costs.
2. Growth targets by differentiation
(Advantages by increasing the perceived net
benefits)

Marketing Objects

Differentiation according to different marketing objects and approaches

Marketing object

1 Consumer goods - 2 Investment goods - 3 Service
marketing marketing marketing

marketing of products for marketing of products for marketing for immaterial goods
private usage occupational use and service performance

4 Non-profit 5 Social 6 Destination 7 Trade
marketing marketing marketing marketing

marketing for organizations marketing of a social idea marketing of an explicit region marketing of a trade and sales
without gainful intent (no organization) (tourism) company (retail)

Marketing - Sales Markets

Differentiation according to 3 sales markets and the participating partners

B - to - B Marketing C - to - C

Business-to-Business- B - to - C Customer-to-
Marketing Customer-Marketing
Business-to-Customer-
(company customer) Marketing Marketing of a private household to
another private household
Marketing of one (private customer business) (i.e. private sales on ebay)
company to another company
Marketing of a company
(i.e. production machines) to a private house old
(consumption goods)

Characterization of Markets - Types of Goods

Types of assets and their usage situations

Consumer Goods Capital Goods Services

Consumer goods (e.g. food) Are used by production companies Immaterial benefits,
and durables (e.g. cars) satisfy immediate needs, to produce further goods. Buyers often incurred only at the time
of consumption. The customer is
and are directly put into use by the buyers are usually establishments or part of the performance / service.
(consumers). public companies.
Services for customer with
Mass-Market (B2C) Single, clear identifiable a high use of resources
customer (B2B)

Market Segmentation

Scientific level of consideration

Market Capture Market Market Processing
Segmentation

Explanatory Acquisition of Information Selection of Segments-
models information processing segments specific use of
instruments
of purchase 2 3 4
pattern 5

1

Consumer-oriented approach Management-oriented approach
Method-oriented approach

Market Segmentation

Objectives, methods, strategies of market segmentation

Lead Structure Approaches of
Market Segmentation
Reasons/ OBJECTIVES STRATEGIES
Meaning behavior-oriented
method-oriented
management-oriented

Quantitative Qualitative

Market Definition

Hierarchy representation for the preparation of a market analysis of companies with a broad range of
products or services

Strategic Market 1 Overall Market Market 3
management (Description) (Description)
Market 2
Definition SBU 1 (Description) SBU 3
of markets
Segment A SBU 2 Segment C
Strategic
business units Segment B

Marketing

Sub Market A
Sub Market B
Sub Market C

MARKET ANALYSIS/ COMPETITION

Situation analysis

Situation Analysis - Search Fields

Search fields for the identification of potential chances and risks

Environment analysis Market analysis
Competitor
Frame conditions:
 political Supplier Company Customer
 social analysis
 technological
 economical Substitute
 ecological products

Stakeholder:
 employees
 investors
 unions
 etc.

Market Analysis - Strategic Situation Analysis

Analysis of market participants, political and legal situation and social, technological, geographical and
economical aspects

Own Relevant Supplier, Sales mediator Legal, social and natural
organization competitor and potential customers environment

Potential analysis Competition analysis Market analysis Environment analysis

Strengths and weaknesses analysis Opportunities and threats analysis

SWOT Analysis

Interpretation of data from strategic situation analysis are the foundation of the resulting
marketing decisions

Marketing - Situation Analysis

Check list with basic questions to clarify the initial situation

What is the market where the company operates and how can it be defined and narrowed?
Who is involved in the sales process? What determines the behavior of these groups?
Which competitors are currently operating on the market?
Do public interest groups or any external stakeholders have an impact on your company policy?
What is the actual situation of the company? What are your strengths and weaknesses?

Market Analysis - Company Analysis

Corporate philosophy (1/6)

Corporate policy Corporate vision Corporate idea

 Insert description and notes in key  Insert description and notes in key  Insert description and notes in key
words. words. words.

Market Analysis - Company Analysis

Corporate philosophy (2/6)

Corporate identity Corporate culture Corporate objectives

 Insert description and notes in key  Insert description and notes in key  Insert description and notes in key
words. words. words.

Market Analysis - Company Analysis

Corporate potentials (3/6)

Development Marketing Production

 research/ development  marketing concept  technology
 know how  standards  capacity
 patent  brands  productivity
 development status

Insert description and notes in key words. Insert description and notes in key words. Insert description and notes in key words.
Insert description and notes in key words. Insert description and notes in key words. Insert description and notes in key words.

Market Analysis - Company Analysis

Corporate potentials (4/6)

Procurement Financing Company

 procurement systems  capital requirements  organization
 supplier relationship  investment intensity  value chain
 purchasing power

Insert description and notes in key words. Insert description and notes in key words. Insert description and notes in key words.

Market Analysis - Company Analysis

Corporate resources (5/6)

Material resources Financial resources Employees
 staff situation
 installations  liquidity  education
 interior  reserves  staff development
 equipment  possibilities to raise capital
Other
Managers IT-equipment  Insert description and notes in

 quality of leadership  sort key words.
 business experience  actuality
 age structure  complexity

Market Analysis - Company Analysis

Company position on the market (6/6)

Markets Advantages Product mix Cost-Price

 overall and partial  product and performance  revenue  price per piece- market
 market share advantages  profitability price relations
 market and sales profile  age profile
 innovations  value chain
 protection against

replicates

Insert description and notes in key Insert description and notes in key Insert description and notes in key Insert description and notes in key
words. words. words. words.

Potential Analysis

Inspection of the position of own company on the market according to the following factors

Image Market Capital Employees

brand image of positioning of company, capital resources, number of employees,
company, market share of provider of creditworthiness structure,
separate
product brands qualification
product brands and motivation

Location Sales Partner Customer

location quality, distribution relation to number of customers,
infrastructure, organization cooperation customer potential, customer
business locations, and distribution
distribution in target area retention
partners (loyalty vs. fluctuation)

Market Analysis - Strengths and Weakness

Strengths and weaknesses profile

Own company Other Company

Criteria Weakness Strength
-3 -2 -1 +1 +2 +3
Product range (quantity)
Product range (quality)
Price
Service (general)
Availability by phone
Customer satisfaction
Supplier satisfaction
…

Market Analysis - Strengths and Weaknesses

Strengths and weaknesses profile

Critical resources insufficient Evaluation good
(performance potential) moderate

product line X
sales market (market share)
marketing concept
finance situation
research and development
production
accommodation of raw materials and energy
location
cost situation, differentiation
quality of management
leading systems
potential increase of productivity

Own company strongest competitor

Competition Analysis

Example

Characteristic

high low

123456789

Quality
Price
Performance
Usage
Image
Environment-friendliness
Design
Additional functions

Your product Competitor’s product

Internal Marketing

Preparation of employees for the interaction with customers by internal marketing

Customer

Optimal supplier Marketing-Mix
buyer interaction

Culture of
service

Employees Internes Marketing Company

Internal training and interactive
communication

Recruitment advertisement
and internal market research

Market Analysis - Market Definition

Hierarchy representation for the preparation of a market analysis of companies with a broad range of
products or services

Strategic Market 1 Overall Market Market 3
management (Description) (Description)
Market 2
Definition (Description)
of markets

Strategic SBU 1 SBU 2 SBU 3
business units Segment A Segment B Segment C

Marketing

Sub Market A
Sub Market B
Sub Market C

Marketing – Illustration of Market Volume Sales volume or sales of a provider / company

Illustration of market volume and its development as a diagram Market share

Market potential

Number of possible customer
or amount if all customers
are prepared to buy (at the given price)

Market volume

Market capcity Actual sales or sales for
all vendors at the market
Total number of possible customer
or max. amount of products that can be used consumed / (if price Saturation =
does not matter)

Market volume x 100%
Market potential

Characterization of Markets - Sizes

Relationship between market potential, market volume and market share to assess the market attractiveness

Market Volume Relative Market Share A Market Share
Market Share B
Total sales or a turnover Market Share = Market share of a company and the ratio of sales /
of an industry including turnover of the company to the market volume
all competitors Company A

Market Potential Relative

Capacity of the market up to market saturation Market Share

Ratio of Market share of
a company to the market

share of the strongest
competitor

Market - Description/ Term Definition

Terms to describe markets

Market potential: Market volume:

equates to the absorption capacity of the market (market realized / scheduled sales or revenue for a similar product for
capacity) or the volume example for one year. Clearly more specific than the market
potential.
of the possible deductable amounts of one product at a certain
market.

Market potential

Market- Sales / Revenue Absolute Relative
exhaustion volume of the company market share market share

Market volume

Market exhaustion: Absolute market share: Relative market share:

percentage value that indicates to what degree the possible market share, that the company has indicator of market position by relating their own
customer of a product would consume it. (Market limit used realized on a certain market sales to the sales of its largest competitor in the
(sales or revenue) industry.
as a gauge for future market growth)

Market Analysis - Environment Analysis

Placeholder for your own Subheadline

Calculation

Colleague
gen.

+/2 FTL
Dep. 4
Lead +/2 Customer DB
Engineer +/3 +/2 gen. Intranet

Dep. 1 o/0.5 Internet

+/2

Construction

+/2 Design
engineer
Design +/3 Dep. 4 k/0.5
engineer o/1
+/3 o/1 o/1
Dep. 4 Supplier
Customer
+/1 gen.

Design /0 Quality of connection
engineer +/1 + perfect
o normal
Dep. 4 K critical

Attempt Frequency of connection
3 intensive
The text demonstrates how Feedback Customer 2 medium
your own text will look when Reference 1 low
you replace the placeholder 0 nonexistent
with your own text. Calculation

Opportunities - Threats-Analysis

Analysis about the company’s opinion on environmental changes and where adjustments need to be done

Criteria Opportunities Threats

Market Situation x x
Market structure x x
Market potential/ market volume x
Customer structure x x
Competitor x
x
Environment / Frame conditions x x
Laws / Taxes x
Society x
Ecology x
Technological Development x
x
Strength
Product range
Prices
Organization / Management
Cash Flow

Weaknesses
Locations
Marketing performance
Innovation ability
Financial resources