Marketing Toolbox

Internal Marketing

How internal marketing prepares employees for customer interaction

Customer

Optimal supplier Marketing-Mix
buyer interaction
Servicekultur

Employees Internes Marketing Company

Internal training and interactive
communication, personnel recruitment,

advertisement,
and internal market research,

Integrated Marketing

Integration of marketing oriented views in all economic subdivisions of a company

Public Sales marketing (pull)

Suppliers Public Sales intermediary End customer
marketing
Procurement marketing Sales marketing (push)
Employees
Process orientation
Internal
marketing

Competitor

Competitive marketing

Marketing-Oriented Management

Design of the organization and its interactions (functional chain)

Market orientation of Service offer Customer related effects Company
company structure success
Employee Customer satisfaction
Market orientation of managerial subsystem behavior loyalty Market success, economic
within the company: success
willingness to pay a certain
 HR management price
 organization system
 QM system
 information system
 control system

Marketing Structure Fundamentals

Enter your subheadline here Marketing Strategy

Marketing Planning

Marketing Research Product Policy Pricing Policy Communications Policy Sales Policy

Marketing Organization Marketing Controlling

Marketing Organization - Customer-oriented

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Management

Procurement Production Marketing Finance

Marketing product Marketing product Marketing product Central Central Central marketing Central
communication marketing planning distribution
group A group B group C research

Product group C Product group C Product group C market Product group C marketing Product group C physical
sales communication research planning distribution

Marketing Organization - Product-oriented

Enter your subheadline here

Management

Procurement Production Marketing Finance

Marketing-Information Marketing-Operations

Marketing Marketing Communication Physical Sales
Research Planning Distribution

Marketing Organization - Customer-oriented

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Matrix Organization in Marketing

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Management

Procurement Production Marketing Finance

Product A Public relations Marketing columns Market research
Product B
Product C Marketing planning Sales promotion

Advertisement Sales Physical
distribution

Matrix Organization in Marketing

Enter your subheadline here

Sales Market Research Advertising and Promotions
Manager Manager Manager

Product Manager Product 1 Placeholder Placeholder Placeholder

Product Manager Product 2 Placeholder Placeholder Placeholder

Product Manager Product 3 Placeholder Placeholder Placeholder

Funktional Sales - Marketing-Organization

Enter your subheadline here

Managing Director

Sales Marketing
Director Director

Sales Sales Market Advertising and Product
Manager 1 Manager 2 Research Promotions Development Manager
Manager Manager

Marketing Management - Tasks

Differentiation into three important task areas in marketing management

Market- Tasks Company
related tasks of marketing -related tasks

to control the demand, management for the coordination and
fulfilment of demand, demand avoidance of possible
development and activation interest conflicts
and reduction of demand. through integration of
marketing int existing
company organization.

Society related tasks

in respect to social responsibilities of marketing management (Economics,
humanistic and ethical standards)

Marketing Management

Four central parameter of company management that need to be aligned to market and
customer requirements

Which objectives Strategy Process How should the
need to be achieved? objective be

accomplished?

Market

Customer

Culture Structure Which organisatorial
structures secure the
What values and norms
are lead by our actions? acomplishment of
the objectives?

Marketing Management - Task Areas

Task areas in the company / environment

Participants of the commercial world

Demographic- Distribution Product Price Technologic-
economic environmental
Target environment
environment customer
Interest groups
Supplier Sales promotion
socio-cultural
Political- environment
legal

environment

Competitors

Marketing in the Company

Representation of marketing as a sub-process (function) in a company

Management Management Note: If marketing is the central
processes bottleneck, all processes have to act
 Planning accordingly (subject heading "Market-
 Organization Oriented Management"). By the way:
 Management Each process can be a central bottleneck.
 Control

Business core processes

Procurement market Procurement Production Marketing Market

Finance, F&E, personal,
controlling, administration

Supporting processes

Note: Commercial companies have mainly just the two core processes Procurement and Marketing (Sales). In service companies no one speaks of production but of
service performance; in technology-intensive companies is research and development usually the core process (in terms of contribution to value creation ).

Marketing control - Basic Scheme

Marketing control to varify structures, processes and results

Objectives Input / Output Observed
results
Compare
objectives/

result

Consequence 1: Consequence 2:
Change and adjustments of Change and adjustments of
current measures
objectives

Decisions
about

response

Company Communication

The sum of all communications measures of a company (corporate communications)

Self image Performance potential,
Public image abilities, benefit, intention,
values

Corporate
Communication

Customer, employees,
partners, suppliers,
public

Multi-Channel-Marketing Database Marketing

Display of different marketing channels

Personal Sales

E-Mail Marketing

Search Engine Marketing Multi-Channel Direct Mail Marketing
Marketing

Online Advertising Telemarketing
Social Media

Innovation Management - Overview Innovation organization
Innovation processes
Placeholder for own Subheadline

Innovation strategy

Customer
Environment

Innovation ideas

PRODUCT PLANNING

Value Chain (Supply Chain)

Supply chain that shows the way of all components of a product from commodity to supplier,
manufacturer till customer

Supplier Customer

Procurement Production Sales

Cash Flow - Product  This is a placeholder text.

Typical curve of the cumulative cash flow of a product  This text can be replaced
with your own text.
Cumulative Cash Flow
 The text demonstrates
positive Market exit how your own text will
Development Costs look when you replace
the placeholder with your
Prototype own text.
Investments
Market Entry Costs  This text can be replaced
with your own text.
0 Break-Even-Point

Technical
feasibility
is clarified

negative Production Market entry
technique
is ready

1 2 34 5

Product Variation - New- and Replacement Demand

Course of the overall demand of a product by product variation

Replacement demand 1 Replacement demand 2

Change of model or variation

Product variation - Product life cycle

Theoretical course of a product life cycle when revenue is increased by product variation

Revenue

Variation 3

Variation 2

Variation 1

t

Product Life Cycle

Life cycle with the representation of sales, profit and loss zones in the course of time in separate phases

Development Introduction Growth Maturity Saturation Degeneration Elimination

Sales and Profit

Revenue Profile of an Assortment

Revenue profile analysis with defense of production capacities

Revenue in % I - III = Product programs

100%

90%

80%

70%

60%

50%

40% III

30%

20% II

10% I

0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Production capacity in %

Revenue and Profit according to products Sales Profit

Contributions of individual product programs to sales and profit

50%
42%

20% 18% 25%
20%

15%
10%

Product 1 Product 2 Product 3 Product 4

PRICE / COST MANAGEMENT

Composition of Profit

The price is the only component of the marketing mix which directly affects sales and profits

Profit

Sales - Sales

x Price High cost reduction potential reached

Amount Factor with the greatest
unexploited profit potential
 Product development /
 Innovation
 Product line expansion
 Product differentiation
 New customer groups
 New territories

Price Strategies

Matrix with high price, low price and value-oriented price strategies

Price level high High price strategies  Low price strategies:
Traditional approach with
Value-oriented price the lowest possible price
strategies for the product.

low  High price strategies:
Target specific customer
through high price level.

 Value-oriented price
strategies:
Prices of the service
correspond exactly to the
customer value.

low Low price strategies

Service/Performance high
(Customer value)

Marketing - Leaning/Experience Curve

Every doubling of the cumulated revenue of a product results in a cost lowering potential between 10 and 30%

Unit costs Market price

20% Decline
30% Decline

Cumulated volume and market share

Break-Even Analysis

Evaluation model to determine the sales volume required to achieve the break-even point

Cost of sales € Revenues

Break-even sales Total
cost
Break-even-Point
Variable
costs

Fixed
costs

0 Break-even quantity Quantity

Marketing / Controlling - Experience

Volume related cost reduction (cost reduction effect)

Rationalisation / standardisation

Learning effects dynamic Technical
(knowledge collection) development

experiences Degression of
fixed costs
Economies of scale static
Favorable procurement

Marketing Strategy - Cost Factors

Cost factors that should be considered in a marketing strategy

Placeholder for your own text Insert your own text here
This is a placeholder text
Marketing Placeholder for text
Strategy Placeholder for your own text

Financing

Price Differentiation and Profit Potential

Potential profit exploitation through price differentiation

Sales

Your sales B Lost profits

Your profits C Price

A Your price

Unit cost

Types of price differentiation

4 types according to various characteristics of differentiation

Customer-related Regional Temporal Usage-related
price differentiation price differentiation price differentiation price differentiation

Demographic characteristics: Different prices in two or more regions Customers pay different prices for the Price differentiation according to
 age or countries -> same service depending on day, week applications such as for example fuel oil
 gender or year for heating / diesel for motor vehicles ->
 size of household By partitioning the markets of each other
(clients can’t obtain market overview) Difficult to implement because it’s rarely
Socio-economic characteristics: seen in practice
 income
 profession
 education
 business

Psychological characteristics:
 lifestyle
 personality

DISTRIBUTION / SALES

Advertising Measures

Advertising types in classic media and online

Classic Media Online-Medien

Direct mail Events Affiliate - program Banner campaign

Movies Posters E-Mail marketing Keyword advertising

PR Print media PR Mobile marketing

Sponsoring Telephone/Fax Sponsoring Product serarch engines

Teletext TV & radio Teletext

Marketing - Communication Instruments Below The Line (BTL)

Comparison of the classical (above the line) and the “non-classical” Alternative marketing
(below the line) communication instruments
Sponsoring
Above The Line (ATL) Event marketing
Exhibitions / Trade fair
Classical marketing Product placement

Classical advertisement Promotions
Print media Direct marketing
Mobile marketing
Radio / TV / Movies Online marketing / Search engines
Outdoor advertisement / Billboard advertisement Viral marketing / Guerilla marketing
… further instruments
Public relations

Marketing - Communication Instruments

Comparisson of the classical (above the line) and the “non-classical”
(below the line) communication instruments

Above The Line (ATL) Classical advertisement
Print media
Classical marketing- Radio / TV / Movies
recognizable for everybody Outdoor advertisement / Billboard
advertisement
Below The Line (BTL) Public relations

Alternative marketing- Sponsoring
mainly visible only for Event marketing
targeted groups Exhibitions / Trade fair
Product placement
Promotions
Direct marketing
Mobile marketing
Online marketing / Search engines
Viral marketing / Guerilla marketing

Purchase Decision Process Phases

Graphical representation of the five phases of an extensive buying decision process (real purchasing decision)

Demand or lack recognition (motive) Information search
offline / online

Purchase Decision

Evaluation,
feedback,
service

Acquisition decision, if the Testing of alternatives regarding
necessary purchasing power is available. suitability and satisfaction of the
purchase need (requirement / demand)

Diffusion model by Rogers

Distinction of customers according to their willingness to adopt a new product

Adopter 13,5% 34% 34% 16%

2,5%

Innovators Early Early Late Straggler
(Pioneers) adopter majority majority
t+σ
t-2σ t-σ t Adoption time

Pyramid of Needs according to Maslow

Hierachie of different levels of needs

Self- Adventure,
realization independence

Need for Power, status, recognition
recognition

Social needs Love, friendship, membership
Security needs
Basic physiological needs Protect health,
Protection of personal belongings

Eating, drinking, sleeping, sex

SOR- Model according to Howard & Sheth

Stimulus-response scheme with assumptions about perception and information processing (learning effects)

S O (organism) R

(stimulus) Hypothetical constructs (response)
Output variablen
Input variables Perception constructs Learning constructs
purchase
Information from search behavior intention to buy
commercial sources stimulus intention to buy
ambiguity security
 quality attention attitude
 price perceptive settings
 peculiarity distortion brand knowledge
 service
 availability attention

Information from motives electoral Brand
social sources criteria knowledge

 family satisfaction
 friends and acquaintances
 colleagues

Procurement Center Model

Purchase decision-making: Roles in the corporate sector

Gatekeeper Decision maker Buyer User Influencer

Secretary Manager Employee Employee Management consultant

Gatekeeper Decision-maker Buyer User Influencer

 Informationcollection  purchase decision  Purchase  suggestions for purchase  criteria formulation
 comparison of offers  vendor selection  Price negotiations, discounts,  assessment after the purchase for selection and evaluation
 decisionmaking preparation of offers
and quantities (qualitatively)
 delivery conditions

Sales Development - Options

Level 1 Level 2 Level 3 Advantages Disadvantages

Distribution Own Use of existing No surcharges No competence
options distribution distribution
Building up own competence Short-term not possible
Foreign sales Construction of new
distribution Faster No customer
market access relations
Distribution
order Faster Partners
market access optimize first
Use of
distribution partners

CUSTOMER RELATIONS

Copy Platform / Copy Strategy Promise of usage

Model to develop an advertising argumentation

Tone,
kind of approach

Justification of performance
of product or company

Win- Win- Situation

Six different options of interpersonal communication

Customer interest Win / Lose Win / Win optional compromise

(only one partner wins) (both partners win) which both agree on

Lose / Lose Lose / Win optional No business

(both are deprived) (only one partner wins)

Supplier interest

Customer Strategies

Offensive or defensive organization of a company's customer strategy

Customer Strategies

offensive defensive

Win new Commit existing
customers customers

Expand market Increase market share Build hurdles against Increase customer
provider switch satisfaction

Market Communication - One step Model

Model of a one-step communication / information transmission

Sender Coded Information Received Recipient Behavioral
signal transmission signal effects
Intended Advertising Decoded
signal signal
medium

Feedback

The sender has to ensure that the recipient can decode the message correctly.