Marketing Marketing

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What is marketing?What is marketing?According to the social definition,

marketing is societal process by which individuals or groups obtain what they need and want through creating, offering, exchanging products and services of value freely with others.

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The American Marketing Association offers managerial definition:Marketing (management) is the process of planning and executing the conception,pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

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The Scope of MarketingThe Scope of MarketingMarketing people are involved in marketing 10 types of entities: goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

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Marketing networkMarketing networkA marketing network consists of the company and its supporting stakeholders—customers, employees, suppliers, distributors, retailers, ad agencies, university scientists, and others—with whom it has built mutually profitable business relationships. The operating principle is simple: build an effective network of relationships with key stakeholders, and profits will follow.

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MarketplaceMarketplaceThe marketplace is physical, such

as a store you shop in; marketspace is digital, as when you shop on the Internet.

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MarketMarketMarket is condition permits

buyers and sellers work together.

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Market researchMarket researchSecondary dataPrimary data

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Core Marketing ConceptsCore Marketing Concepts

Needs, Wants, and DemandsMarket SegmentationBrands and TrademarksValue and SatisfactionMarketing Channels

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Needs, Wants, and DemandsNeeds, Wants, and Demands

Needs are the basic human requirements. People need air, food, water, clothing, and shelter to survive. People also have strong needs for recreation, education, and entertainment.

These needs become wants when they are directed to specific objects that might satisfy the need.

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ExampleExampleA consumer in the United States

needs food but may want a hamburger, french fries, and a soft drink. A person in Mauritius needs food but may want a mango, rice, lentils, and beans. Wants are shaped by our society.

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DemandDemandDemands are wants for specific

products backed by an ability to pay. Many people want a Mercedes; only a few are willing and able to buy one. Companies must measure not only how many people want their product, but also how many would actually be willing and ableto buy it.

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Markets SegmentationMarkets Segmentation

Who is the target market for a product?

- Industrial product (B2B)- Consumer product (B2C)- Public goods (B2G)

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4 basic methods for 4 basic methods for segmenting a marketsegmenting a marketProduct –related: comfort, safety,

luxury, good value-for-money, convenience, durability, etc.

Demographic: age, gender, education, family life cycle, income, education, etc.

Psychographic: attitudes, lifestyle, opinions, values, self-image, etc.

Geographical: region, postcode, etc.

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ExampleExampleFor example, Volvo develops its

cars for buyers to whom safety is a major concern. Volvo, therefore, positions its car as the safest a customer can buy. Companies do best when they choose their target market(s) carefully and prepare tailored marketing programs.

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Brands and TrademarkBrands and TrademarkBrand: a name, symbol or design (or

some combination) that identify a product

Trademark: a name or symbol that cannot be used by another producer

Band loyalty passes through three stages:

1.Brand awareness2.Brand reference3.Brand insistence

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Value and SatisfactionValue and SatisfactionValue reflects the sum of the perceived tangible

and intangible benefits and costs to customers. It’s primarily a combination of quality, service, and price (“qsp”), called the “customer value triad.”

Satisfaction reflects a person’s judgments of a product’s perceived performance in relationship to expectations. If the performance falls short of expectations, the customer is dissatisfied and disappointed. If it matches expectations, the customer is satisfied. If it exceeds them, the customer is delighted.

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Marketing ChannelsMarketing ChannelsCommunication channels deliver and receive

messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs

Distribution channels to display, sell, or deliver the physical products or service(s) to the buyer or user. They include distributors, wholesalers, retailers, and agents.

Service channels to carry out transactions with potential buyers. Service channels include warehouses, transportation companies, banks, and insurance companies that facilitate transactions..

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Marketing strategyMarketing strategyAnalysis of the wider business

environment. More specifically: the political/legal, economic, social/cultural, and technological factors operating in the external world. (PEST)

Identification and analysis of target markets for new products.

Sales goals in term of volume and revenue

The marketing budgetElements of the marketing mix and

timing 19

Marketing MixMarketing MixMarketing mix is the set of

marketing toolsthat the firm uses to pursue its marketing objectives in the target market. It is classified these tools into four broad groups that he called the four Ps of marketing: product, price, place, and promotion.

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Marketing MixMarketing MixProduct Price Promotion PlaceProduct varietyQualityDesignFeaturesBrand namePackagingSizesServicesWarrantiesReturns

List priceDiscountsAllowancesPayment periodCredit terms

Sales promotionAdvertisingSales forcePublic relationsDirect marketing

ChannelsCoverageAssortmentsLocationsInventoryTransport

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Four Ps and Four CsFour Ps and Four Cs

Four Ps Four CsProduct Price Place Promotion

Customer solutionCustomer costConvenienceCommunication

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6 Ps6 PsProductPricePlacePromotionPackagingPeople

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Total product offerTotal product offerValue –for-money: relationship

between quality and priceBrand name and imagePackagingConvenience of sales channelStore surroundingsService Speed of deliveryGuarantee

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