Plannng a Marketing campaign for a Learning Spanish language DVD

MARKETING MIX

Traditional marketing mix consisted of 4P’s: Product, Price, Place, Promotion. Nowadays it’s extended to 7P’s, the additional 3P’s are useful for services industry which will help the company to provide good services to their consumers.

1.1. Product

In , a product is anything that can be offered to a that might satisfy a want or need.

When an organisation introduces a product into a market they must take into consideration the following: who the product is aimed at, what benefit they expect, how they will position the product within the market and what differential advantage the product will offer over their competitors.

A product should be viewed in five levels:

Core product is the fundamental benefit that the customer is buying.

Basic product is what supplies the core

Expected product: is the attributes a buyer normally expects that product to have.

Augmented products are those that exceed customer expectations.

The ultimate product is that which satisfies customer´s dreams.

Depending on the level at which the product is, there are several elements that are blended to make up the product such as quality, brand, styling, packaging, features, after sales services, guarantees,etc..

In addition, products go through a life cycle which is composed of 5 stages:

Development: No sales
Introduction: Low sales
Growth: rapidly rising sales
Maturity: High sales
Decline: Declining sales

There are several stages in the new product development process...not always followed in order:

Idea Generation: Ideas for new products can be obtained from customers, the company's R&D department, competitors, etc.
Idea Screening: The object is to eliminate unsound concepts prior to devoting resources to them.
Concept Development and Testing: Develop the marketing and engineering details and test the concept by asking a sample of prospective customers what they think of the idea.
Business Analysis: Estimate likely selling price based upon competition and customer feedback,
Beta Testing and Market Testing: Produce a physical prototype or mock-up. Test the product (and its packaging) in typical usage situations
Technical Implementation: Involves managerial planning and focusing on feedback. Make necessary adjustments to ensure product is ready for launch.
Commercialization: Launch the product. Produce and place advertisements and other promotions.

1.2. Price

Price is defined as the amount in money for which something is offered for sale. Before setting prices, an organisation must consider several factors such as:

The price that the competition charges
The cost of providing the product or service
The company’s market position
The type and nature of demand

An organisation can adopt a number of pricing strategies. For instance:

Penetration pricing: setting low price to increase sales and market share.

Skimming pricing: The organisation sets an initial high price and then slowly lowers the price to make the product available to a wider market. The objective is to skim profits of the market layer by layer.

Competition pricing: Setting a price in comparison to competitors.

Premium pricing: The price set is high to reflect the exclusiveness of the product

Economy price: Low cost, economy brand

To sum up, the prices that a company sets for its product and services must strike a balance between gaining an acceptance with the target customer and making a profit for the organisation.

1.3 Place

This refers to how an organisation will distribute the product or service they are offering to the consumer. The organisation must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organisation is to meet its overall marketing objectives.

Two types of distribution channels are available. Indirect distribution involves distributing the product by the use of an intermediary, for example a manufacturer selling to a wholesaler and then on to the retailer. Direct distribution involves distributing direct from a manufacturer to the customer, direct selling (door-to-door; vending machines-Commerce etc.)

1.4 Promotion

Promotion is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision.

The main objectives of promotion in an organisation could be:

To create awareness, customer interest or desire
To boost sales
To launch a new product
To remind and reassure customers
To offset competitor advertising
To build brand loyalty
To build the company or brand image
To change customer attitudes

If a business wants to be more effective and focused, the use of different types of promotion is a must.. Promotion tactics must be balanced in order not to lose target customers. Sometimes, the promotional campaign blend different promotion tools .It is called Promotional Mix. There are several ...

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The main objectives of promotion in an organisation could be:

To create awareness, customer interest or desire
To boost sales
To launch a new product
To remind and reassure customers
To offset competitor advertising
To build brand loyalty
To build the company or brand image
To change customer attitudes

Advertising
Publicity and public relations
Sponsorship
Sale promotions
Personal selling
Direct marketing

1.5 People

All people that are directly or indirectly involved in the consumption of a service such as workers, employees, management and consumers.

Consumers first make a judgment of the service based on the employees they interact with, so it is very important for the company to recruit the right staff and to train them appropriately.

1.6. Process

It is the procedure, mechanisms and flow of activities by which services are consumer. Processes are basically systems used to assist the organization in delivering the service.

An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company.

1.7. Physical evidence

It is the ability and environment in which the service is delivered. It includes tangible goods and intangible experience of existing customers.

Physical Evidence is the element of the service mix which allows consumers to make judgments on the organization.

PLAN MARKETING MIX

Nowadays learning languages is a need for everybody to help them in their daily lives and personal interest. A market research carried out by our company helps us to identify that Spanish language is one of the languages more chosen for British people so our idea is to launch a DVD of Spanish lesson geared to two different target markets; one to cover the needs and preferences for children to motivate their interest in new languages and cultures and one for adults to help them in their professional live.

Target market

1. Product

This product has been made with the idea of making the learning enjoyable and easier for adults as well as for children. Both DVDs are divided in 15 lessons which have different activities, and also every 5 lessons, the DVD offers an exam to confirm that your knowledge is enough to carry on with next level and more difficulty.

In addition, we try to do the learning experience as real as possible as well as making easy the understanding of the Spanish culture by including in the DVD real life scenes.

Depending on the product evolution and adaptation we analyse the option of launching other future DVDs specialised in specific areas; for instance business, sport, travel, economic.

In the following table, we offer a brief description of the sections in each DVD:

ADULTS

The adults DVD include different kinds of teaching and uses different methods, such us:

Teacher talking to you directly
Listening conversation between Spanish speaker in different parts in the city (bank, restaurant, shop, council)
Activities (crossword)
Grammar exercises
Exams (listening, writing, speaking)

CHILDREN

In this DVD the lessons are adapted for children and uses different types of activities to make the children learning more enjoyable:

Songs (karaoke)
Cartoons
Pronunciation games
Grammar exercises
Easy exams by test (listening, speaking, grammar)

2. Price

Price is the only marketing mix variable that can be altered quickly. Price variables such as dealer price, retail price, discounts, etc. influence the development of marketing strategy, as price is a major factor that influences the assessment of value obtained by customers.

Taking into consideration that both the adults DVDSs and Children DVDs have the same cost and will be purchased by adults, the two products will have the same launch price.

The price strategy undertaken should consider the following aspects:

Consumer demand : .As the time passes ,there is a growth tendency of the English people to speak Spanish for several reason such as move to Spain, interest in Spanish culture etc
Costs: the company calculates all the cost related tothe product such as writing, film , edition, making DVDs, packaging distribution and promotion and then the profit margin is.
Competitors: the company sets the price on the basis of what competitors are charging.

After analyzing these aspects, we have decided to use a strategy of pricing penetration .The lunch price of the product will be 12 pounds and once the product is established and the consumer aware of it ,we will raise the price to 15 pounds.

3. Place

The company uses several distribution channels for both products. Through indirect distribution the product will be delivered from the manufacturing to the retailer and then to the customers. There are several retailers where the DVDs will be sold such as Supermarkets, book shops and stationers

Through the internet, in the company´s website, the customers can buy the product directly to the company and then deliver in approximately two days.

In addition, through the website the company has helped its customers to find the nearest
retail shop where they can buy the products.

4. Promotion

Our promotional efforts are the only controllable means to create awareness among publics about itself, the product it offers, their features and influence their attitudes favourably.

Due to that the most of the DVDs ,both for adults and children will be purchased by adults, our promotional campaign is oriented toward this target audience .However; it must have characteristics that make children be interested in the product and ask their parents to buy it.

The major elements of our promotion mix include advertising, sales promotion and public relation.

In addition, we use AIDA model in our promotional campaign. It is a simple framework which usefully suggests the desirable qualities of an effective promotional message.

4.1 Advertising

The main way to advertise our product is our own website.

In addition, after carrying out several search and analysis from various sources, such as BRAD insight, we think that one of the main and best ways to advertise our product would be through three important magazines related to Spain, due to the fact that the reader of these magazines may need to learn Spanish for some reason.

We can put advertisements either in the physical magazines or in their Websites as they offer Banners to hire.

Spain magazine ()

Frequency: Monthly

Price single copy: 3.50 pounds individual

Target Readership .Readers visit Spain regularly and are looking to buy a second home and express an interest in finding more about living there

Spanish Magazine ()

Frequency: Monthly

Price single copy: 3.75 pounds individual

Target Readership: People who live in Spain, holiday in Spain and buy in Spain

The Sunday Time Travel Magazines

Frequency: Monthly

Price single copy: 3.40 pounds individual

Target readership: People who like holiday worldwide .One specific destination per issue (Spain).

4.2 Sales promotion

In our campaign various techniques of promotion will be used. The first 100 people who purchase adults DVDs or children DVDs will receive a Spanish dictionary in CD totally free.

In addition, the first 1000 adult DVDs sold will receive the children DVD totally free.

In the first three months after launching, if the purchase is made online, the delivery will be totally free.

4.3 Public relation

Through our website, the company has its provided contacts for those customers who will be in need of any information from the company. In this way, we can create a mutual relationship with our customers and ensure that it serves the wishes and demands of them.

4.4. Aida

Attention: Getting the attention of the target market.

Adult DVDs: cover design includes a large heading, utilizing colour and whitespace to maximize the space.

Children DVDs: cover design includes different pictures related to sport, games and very happy colours.

Interest: Holding the interest of the target audience.

Adult DVDs: includes a message in the cover “Open the door of the Spanish culture”

Children DVDs: includes a message in the cover “Have fun learning Spanish”

Desire: Arousing desire in the target market audience.

Adult DVDs: Post on the cover saying that if you open the DVD you will get n prize.

Children DVDs: Post on the cover saying that if you open the DVD you will get a surprise.

Action: It must describe how the product can be bought.

In adults and children DVDs, the website address is showed on the cover.

B2B & B2C MARKET DIFFERENCES

The main differences are determined by demand characteristics, market demographics, buyer-seller relationships and decision process.

3.1 Stages in the buying decision process

3.2 B2B marketing mix

In the B2B purchasing world, products and services are technical in nature and are bought on the basis of their specifications as well as having a tendency to be raw or semi-finished.

Key decision factors in B2B purchasing involve reliability of delivery schedules, technical support and post-sales customer support.

Regarding place, direct selling to organization buyers is the typical rule and physical distribution is very important. Therefore, many firms send their promotional material to heads of purchasing departments. Typically, B2B advertising and other promotional material is technical in nature. The B2b Marketing tactics more used are:

In-person events
Direct mail
Newspapers
Online marketing
Custom publications
Industry specific/ trade magazines
General business magazines
Printed directory
Radio/TV

In B2B Pricing is never set in stone. It’s set as part of a protracted negotiation where it’s evaluated as part of a broader situation where the seller and product qualities play a large role in the decision-making process. Bulk discounts are also typically the rule. In addition, price should be treated seriously because, on average, every one percent you increase your prices, leads to a 10% increase in profits.

Relationship marketing is the key B2B, and different levels of the organization participate in the buying/selling process especially if the sale is a big ticket sale

INTERNATIONAL MARKETING

Markets are becoming increasingly global, due to factors such as:

Developments in media and travel which allow people to experience each other’s cultures (and brands)
Developments in ICT enabling communication and transactions between widely separated parties
Ease of trading within the EU

International marketing is further away from the domestic market where expertise exists. Each market will need its own marketing plan as not all countries (markets) are the same. In international markets, we have to take into consideration consumer cultural background, buying habits, levels of personal disposable income, etc. in order to deliver a tailored marketing mix program to suit their needs.

4.1 Promotion

Regarding international product decisions, an organisation can either adapt or standardise their promotional strategy and message. Advertising messages in countries may well have to be adapted because of language barriers or the current message used in the national market may be offensive to overseas residents.
The use of certain colours may also need to be taken into account. In India red is the colour worn by the bride in weddings, white is the colour for mourning in Japan. The level of media development has to also be taken considered.

4.2 Price

Pricing on an international scale is difficult. As well as bearing in mind traditional price, the organisation needs to consider the costs of transport, any tariffs or import duties that may be levied on their product when they are sold on the international scale. Also, what currency you expect to be paid in. Exchange rate fluctuation will also have an impact on profitability and influence pricing decisions.

Other factors to consider include local incomes and PDI levels

4.3 Place

The internet – often the sole channel of distribution
Direct exporting - the organization makes a commitment to market overseas on its own behalf..
Indirect exporting – Organisation employs a home country agency (an exporting company)
Export Management Company (EMC) – handles all aspects of exporting. The EMC already has an established network of sales offices, and extensive international marketing and distribution knowledge.
Franchising - involves the organization (franchiser) providing branding, concepts, expertise etc
Foreign Direct Investment (FDI) - owning an overseas manufacturing

4.4 Product

International product strategy involves the following possible approaches:

Marketing the same product to all countries
Adapting the product to local conditions
Developing a country specific product

So what should an organisation do? Adapt or sell a standardised product

Arguments for product standardisation

To benefit from increased output of a standardised product
To achieve maximum economies of scale
No need to invest in product modification
Increasingly we live in a global market
Difficulties of modifying complex product s

Arguments for product adaptation include

To improve targeting
Modifying the mix to met different customer needs
The need to compete with locally produced products targeted at the market
Cultural and other differences necessitate adaptation of product or the marketing mix
The overseas market consists of different market segments

Bibliography

Riley, Pippa. (2007), Business essentials supporting HND/HNC and foundation degrees / Marqueting,1ts edn, London, BBP Learning Media Ltd
Karen Beamish, Ruth Ashtard (2005) ,The official CIM coursebook /Marketing Planning, 1ts edn
Philip Kotler, Gary Armstrong (2004),Principles of Marketing, Thirteenth Edition, New Jersey, Pearson education
Hill & O´Sullivan, Foundation Marketing, Third edition, Prentice hall
“Marketing Mix,” Learn marketing
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CMI ,Marketing resources ,