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English s4 marketing concept

Euro Crafts 21: Developing competence for sustainable management in European handicraft
Translation of Module S4: Marketing Concept
Vienna, December 2009
Source: Westdeutscher Handwerkskammertag (Ed.): CD-ROM: Sustainable Management in crafts enterprises. A manual for the implementation of a qualification and consulting concept for consultants and teachers in the crafts sector. Results from a pilot project, Düsseldorf (Westdeutscher Handwerkskammertag (Hrsg.): CD-ROM: Nachhaltiges Wirtschaften in Handwerksbetrieben. Eine Handreichung zur Durchführung eines Qualifizierungs- und Beratungskonzeptes für Betriebsberater/- innen und Dozenten/-innen im Handwerk. Ergebnisse aus einem Modellversuch, Düsseldorf). Module S 4
Marketing Concept

Table of Contents:

Module Description . 1
Module A: From current status to target state – Determining Marketing Goals . 2
Module B: Marketing Mix Tools . 4
Module C: Options for monitoring Marketing Efficiency . 10
Literature, Media, Links, Materials . 11
Linkage to other Modules . 11
Publication Data . 11
EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom” Description of Module
Today marketing has become a household word. This term
is widely used without it being given much thought as
marketing is something people do everyday e.g.: • in conversation (job applications, etc) The term ‘marketing’ originated in the English language and means nothing more than »going to a market« or better said, »to sell goods or services«. Marketing, as carried out by and through companies, has changed dramatically since the 1950’s and 60’s. Whereas in the past sellers dominated the market, today customers are increasingly determining the success of a company due to a superabundance of products and services. Marketing is therefore defined as the entrepreneurial • includes the entire company in the form of a company • is applied consciously, systematically and completely customer-orientated [Bruhn 2007] Customer orientation centred in marketing is an important variable for a company’s success, independent of size.
Apart from the advantages resulting from a high degree of
customer satisfaction (regular customers, free positive
publicity, positive image and a distinct difference to
competitors) customer orientation can also provide the
following advantages and options:

• Production processes can be optimally devised,
• market gaps can be recognised and tapped, and finally • your own company’s future can be created actively.

Determination of suitable marketing tools Figure 1: routing questions for drawing up a marketing concept [Source: own figure according to Becker 2006] EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom” Central or routing questions as mentioned in figure 1. serve as an orientation for marketing in a consequential The modules, »Customer Needs« and »Sustainable Business Areas« focus on answering the question »What is our current status? « Together with the initially carried out »Self-Check Crafts«, you can gain a rough picture of the current situation in the particular companies taking part in qualification and consultation on sustainable, economic development. A first approach to choosing a suitable strategy results from the Module, »Mission This module on »Marketing Concepts« deals mainly with the question on how to get from the current status to a set target, in other words with the determination of marketing goals. The next subject handles which tools are available in the frame of the marketing-mix - in particular, tools for communication politics - as well as under which conditions they should be introduced. Finally, there is the question on how to monitor efficiency and how to proceed. Therefore the module »Marketing-Concepts« consists of the following modules: • Module A: From current status to target state – • Module C: Options for monitoring marketing EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom”

Module A: From current status to target state – determining marketing goals
Relevant key words:
Short, medium and long-term marketing goals In this module, you will learn about: * Why you should phrase marketing targets * What phrasing options are available After an assessment (e.g. with the help of the »Self-Check Crafts« – [see module B2]) you will have a good overview of the current status of your company, its strengths as well as its weakness and potential for improvement. You will easily be able to answer what position your company is in. Based on this, you can then determine what direction your company should move towards in the short term (1-3 years), the medium term (4-5 years) and the long term (6- 10years). If a company plans its marketing goals based on this assessment, thus looking at it from a wider perspective than just that of day-to-day business, it will be able to actively determine its own economic future. Objectives are the motor for achieving an economically successful The inclusion of control mechanisms when phrasing objectives is vital but often neglected in small and medium-sized companies. It is necessary and important to formulate objectives so that their success can be seen, i.e. that the reaching or almost reaching of a particular target can be reviewed and measured. Short term and more economically orientated marketing targets may include e.g.: • »We aim to increase sales, turnover, and profits by xy • »We aim to achieve a market share of xy percent by Medium and long-term marketing objectives aimed at customers may include: • »We want our customers to associate us with an environmentally-friendly image by the year 20xx«. • »We aim to increase our company’s brand awareness • »We aim to increase customer satisfaction by xy EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom” Formulating Marketing Goals
When formulating marketing objectives, it is important to make sure they are distinct, specific as well as realistic and data for company harmonising with the needs and possibilities of the company in question. Furthermore, you should make sure that the results can be monitored. We recommend the following precision when formulating targets: • regarding content (what should be achieved?) • to what extent (how much should be achieved?) • time frame (by when should the target be reached?) as • area of application (which areas, business segment/ region etc) should the targets apply to?

Module B: Marketing mix tools
Relevant key words:
Communication and distribution, advertising, public relations, sales promotion, personal sales In this module, you will learn about: * What marketing mix options - in particular communication policies - are available * How marketing tools can be implemented in Marketing is more than just developing a product or a service ready for the market or determining an attractive price. If a handicraft business wants to be more successful than its competitors are, it will have to communicate the advantages of the business, the products and services to potentially new customers. The following options, together with the marketing-mix, as well as possibilities for communication and sales promotions are of special interest to handicraft businesses. Especially communication and promotion are of particular interest for businesses in the crafts sector. Diagram 2 below points out possibilities: EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom” Objectives
Target Group
C ontent Examples
Advertising
jersey-, banner-, poster advertising; radio-(local) and film spots etc Relations
Promotion
events; in-house fairs; trade-in of used goods; two for one / package offers Personal Sales
Figure 2: Tools for communication policies and their objectives, target groups, content and examples EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom” Advertising
Advertising confronts us around the clock. Customers should be so influenced that they want to buy the advertised product. The aim is to change observed Commercial advertising has gone through an enormous development. In Medieval times people were confronted with advertising mainly at markets, fairs and shop windows where »registered« wares were offered by market barkers, street vendors, or displayed on wall posters and announcements whereas today’s customers are exposed to a constant stream of advertising. The customer’s reaction is to perceive the overabundance of information selectively. This influences, in particular, the buyer’s choice. Accordingly, the danger of information relevant to purchasing »not being absorbed«, poses a Therefore, before trying to convey information you have to information to customers, it is gain customers’ attention. The choice of advertising media and the choice of advertisers depend on the objectives that the advertising will be followed up by. That means decisions will have to be made in advance about which target group, which area and time frame, and very importantly, what costs will be most appropriate. For example, using the advertising tool »print media« provides a wide range of spreading information. Newspapers and magazines are available to all target groups, all the time and everywhere. This advertising option offers continuity in advertising. In addition, there is a relatively large range of creative freedom and many variations are available in terms of costs. The choice of advertising media, newspaper or magazine depends on spread and area of circulation, costs, publication frequency, and especially the mix of readers. A simple code for comparing various advertising media is the so-called »thousand-contacts-price«. This connects the cost of the medium to the amount of contacts made. A newspaper or magazine as an advertising medium is calculated at the ‘thousand-contacts-price’ (during one-time allocation this applies to the thousand-reader-price) through the following formula: EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom”
Thousand-contacts-price = Gross– page price*1000
Area Spread
Tipp: Newspapers and magazines which may be suitable for small and medium-size
companies publicise the necessary information in their so-called “media data” in
order to enable calculations of the ‘thousand-contacts-price’.

Public Relations
Public relations (abbrev. PR) literally means a relationship with the public. In German-speaking countries, the term “Öffentlichkeitsarbeit” is used. That means it includes all measures that are implemented to influence the relationship between various groups of people and institutions outside the company. Public Relations relates not only to relationships to customers but also to its competitors, employees, skilled staff in spec, banks and chambers. The aim of public relations is to have an effective image, as well as establishing a specific image, consolidating or improving
The difference to advertising is that it concentrates on a
different perspective. Whereas the product is the central
focus in advertising, in public relations the company is
the centre of attention. Public relations is advertising the
company itself, so to speak, as shown in the following
generally known example:


Aspirin – a little less pain in the world
Bayer does environmentally-friendly research EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom” What measures would be conceivable for cultivating the image of a company, particularly in a small handicraft business? They would mainly be the following: • Press releases/articles: i.e. a mention in the
editor’s note of a newspaper or magazine (e.g. the opening of new company or outlet with a photo.) • Open day, anniversaries or similar events;
• Participation in regional competitive exhibitions and • Factory tours, e.g. for school classes
Sponsoring of events, special charity events;
Making public of received awards that do not
relate to the product but to the company (e.g. prizes for good service, company environmental protection, • Image brochures, pamphlets;
Designing and maintaining of an internet website.
Decisive for target-orientated public relations is the awareness that all actions undertaken by the company are noticed by the market and judged accordingly. The aim is to consciously transport a company’s philosophy and its company’s self-image conduct, accompanied by the above-mentioned measures rather than relying solely on the reputation acquired through day-to-day Any engagement in environmental and energy issues should definitely be used in a company’s PR work. It is a good chance for a company to present itself to the public as innovative, environmentally friendly and responsible. Tipp: A good advertising platform for handicraft businesses and crafts people
engaged in environment and energy issues is the Internet site www.umwelt.org
initiated and supported by the Nordrhein-Westfälische Handwerksorganisation.

A sense of responsibility in terms of sustainability is also proven when handicraft
companies engage in social or cultural events in their area.
EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom”
___________________________________________________________________
Tipp: Practical examples for designing advertising and the formulation of advertising
texts suitable for handicraft businesses can be found in (Geheeb 2005) and (Folten
2005)

Sales Promotion
Sales promotion includes all short-term measures that encourage the sales of certain products and services. In contrast to the tool ‘advertising’, which leads the customer to the product, the opposite occurs; the products and services are brought to the customers. A good example for this are the products placed strategically in a supermarket, namely there where customers have to pass before they leave the shop. Other examples for sales promotion are: • sales such as seasonal sales and jubilee sales;
special offers (offer of the week), combination offers,
(one bread loaf and four rolls for .EUR; oil change, tyre check, car wash and cup of coffee whilst waiting for …EUR.) and special price reductions, (e.g.
seasonal articles such as sunglasses, winter tyres, • customer events, product presentations and trial
purchases which include an offer to return goods if
customers are dissatisfied with their purchases. • bonus goods, discounts or gifts with purchased
lottery games (although they are not allowed to be
connected to directly to purchase or purchase order); • trade-ins, old for new offers and disposal of old
vouchers and bonuses on first purchases, e.g.
»Windfall« gain should not be neglected. Not only product positive effect sales and services can be promoted short term. When customers’ inhibition threshold is overcome, they can be persuaded to be enthusiastic about a company’s various product ranges and services. EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom” Personal Sales
Personal sales are gaining increasing importance in the framework of advertising tools. The employees of a company are in the centre of personal sales as they are in direct contact with customers. Their behaviour and the impression they make on a customer decides the success and failure of a company’s personal sales talk. They are the company’s business card. In order to complete their tasks successfully they have to fulfil the • They have to be motivated and stand fully behind the company, its products and services. Only employees who identify themselves with a company are able to present the company successfully to the public. • They have to understand that communication does not just mean speaking but to realise that it is even more important to listen, in other words they have to possess communication skills. • They should have the skills necessary for their trade i.e. knowledge of the product as well as the market.
Tip: We recommend a CD offered by the Centre for Environment and Energy of the
Düsseldorf Chamber of Commerce (UZH) that gives an extensive overview of important
considerations during a personal sales talk.
S4-B4 Roll-play “Sales Talk”
EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom”

Module C: Options for monitoring Marketing Efficiency
Relevant key words:
turnover monitoring, market share monitoring, time and trade comparisons In this module, you will learn about: * What possibilities there are for measuring marketing efficiency * How to evaluate marketing performance To finalise the planning of a marketing concept it is necessary to think about devising a permanent monitoring system. A continuous current status and set target check should be implemented to help you to evaluate your chosen marketing measures and, if necessary, to adapt them accordingly. In practice, the same procedures as for turnover monitoring and market Turnover monitoring means doing a current status evaluation based on specified marketing goals. The achieved turnover figures are compared with figures from the previous period as well as the expected figures. management”. The marketing target, »turnover increase« has either been achieved or the marketing measures may not have shown any results in this area. In the latter case, the measures taken should be reviewed according to their efficiency and adjusted accordingly. Turnover monitoring is quick and available at a relatively reasonable price and is based on internal sources. However, the accountability of single marketing measures in terms of cause and effect are difficult to analyse. Market share analyses monitor the changes in market share through marketing measures taken. The advantage lies in the presentation of a company’s competiveness in relationship to its competitors. A large disadvantage though is that data needed for such comparisons has to be obtained externally. Taking the above into consideration, time period and trade rate comparisons should be made besides the orientation on operating figures. An increase in turnover during two consecutive periods may not be realistic, as the start-up phase has to be included in the calculations. Marketing measures may also be unsuccessful because the whole industry that a company belongs to is not doing well during that particular time. This kind of information can be acquired through an intercompany EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom” When reviewing marketing evaluation checks you should interpret and not just accept figures at face value, e.g. to question and evaluate any variations.
Marketing efficiency checks can and must lead to a
change in marketing measures based on an
evaluation.
Literature, Media, Links, Material

Literature (sources used):
o Becker, J. (2006): Marketing-Konzeption, 8., überarb. u. aktualis. Aufl., München. o Behrens, G. (1996): Werbung, München. o Bruhn, M. (2007): Marketing. Grundlagen für Studium und Praxis, Wiesbaden. o Folten, B. (2005): Professionelles Texten leicht gemacht. Schreibst Du noch oder textest o Geheeb, O. u.a. (2005): Einfach gut werben. So machen Handwerker auf sich Continuative Literature:
o Ehrmann, H. (2004): Marketing-Controlling. Modernes Marketing für Studium und Praxis, o Management-Center-Handwerk (MCH) (2003, Hg.): Erfolgsstrategien für Marketing im Handwerk. Fallbeispiele aus der MCH- Beratungspraxis, Düsseldorf. o Meffert, H./Kirchgeorg, M. (1998): Marktorientiertes Umweltmanagement, 3. Aufl., o Preißner, A. (2007): Balanced Scorecard anwenden, 2. Aufl., München. o Schwarz, A. (2005): Marketing-Controlling. Grundlagen, Strategien, Perspektiven, o Simonis, U. A. (2002): Mehr Erfolg im Umgang mit Kunden: Der erste »Knigge« für o Thimm, S. (2004): Die Zukunft heißt Dienstleistung - Methoden und Materialien für die o Westdeutscher Handwerkskammertag (WHKT) (o.J.): Marketing für den o Wissmann, V. (2000): Erfolgreiche Kundenbindung im Dienstleistungsbereich, München. EuroCrafts 21 / „Translation of Module S4 of existing CD-Rom” Christiani Verlag (2006, Hg.): Marketing im Handwerk. CD-ROM für Windows NT 4.0. Grundlagen, Konstanz. Zentrum für Umwelt und Energie der Handwerkskammer Düsseldorf (UZH) (o.J.): Das Verkaufsgespräch. Eine CD-ROM, Düsseldorf. Materials
Module A: From current status to target state – Determining Marketing Goals Module C: Options for monitoring Marketing Efficiency S4-C2: Help on marketing efficiency checks

Source: http://www.eurocrafts21.eu/en/special_modules/module4/marketing_concept.pdf

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