Business w09 Understanding Marketing @1

Presented by: Anna Riana Putriya

Understanding

Marketing Process

and Consumer Behavior

Week 09


What is Marketing ?

Marketing is a societal process by which individuals and

groups obtain what they need and want through creating,

offering, and freely exchanging products and services of value with others.

– Philip Kotler (p. 7) –

Process of planning and executing the conception,

pricing, promotion and distribution of ideas, goods and

services to create exchanges that satisfy individual and organizational objectives

– Griffin, 2002 –Marketing =

sales

Marketing =

sales

Marketing =

sales

Marketing =

sales…………

????


Company Orientations towards the Marketplace

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Consumers prefer products that are widely available and inexpensive

Consumers favor products that offer the most quality, performance, or innovative features

Consumers will buy products only ifthe company aggressivelypromotes/sells these products

Focuses on needs/ wants of target markets & delivering value better than competitors


Marketing: Providing Value & Satisfaction

� Value and Benefits

� Value is the relative comparison of a

products benefits versus its costs

� Benefits include the functions of the product

and the emotional satisfactions associated

with owning, experiencing or possessing it

Value = Benefits

Costs


Benefit VS Cost

Alternative 1

Alternative 2


Marketing: Providing Value & Satisfaction

Value and Utility

Utility is the ability of a product to satisfy a human

want or need. Four kinds:

�Time Utility

�Place Utility

�Ownership Utility

�Form Utility


Marketing: Goods, Services and Ideas

• Consumer goods are products purchased by consumers for personal

use

• Industrial goods are products used by

companies to produce other products

• Services are intangible products that

can be purchased


The Marketing Environment

External environment is the outside factors that influence

marketing programs by posing opportunities and threats.


Competitive Environment

a. Substitute products differ from those of competitors but can fill the same need

b. Brand competition occurs between similar products


c. International competition matches domestic

products against foreign products


The Four Ps and The Four Cs

Marketing

Mix

Product

Price Promotion

Place

Customer

Solution

Customer

CostCommunication

Convenience


What is a Product ?

A product is a good, service or idea designed

to fill a consumer need or want.


Barang Jasa

Barang

Jasa

MobilMobilMobilMobilArlojiArlojiArlojiArloji mahalmahalmahalmahalMainframe ComputerMainframe ComputerMainframe ComputerMainframe Computer

MejaMejaMejaMejaSepatuSepatuSepatuSepatuGulaGulaGulaGula

MinyakMinyakMinyakMinyak tanahtanahtanahtanah

AirlineAirlineAirlineAirlineSoftwareSoftwareSoftwareSoftwareTeleponTeleponTeleponTelepon

HotelHotelHotelHotel

KonsultasiKonsultasiKonsultasiKonsultasi

EdukasiEdukasiEdukasiEdukasiBabyBabyBabyBaby----sittingsittingsittingsitting

UTAMAUTAMA

PENDUKUNGPENDUKUNG


Product differentiation is the creation of a product

feature or product image that differs enough from

competing products to attract consumers

How do they differentiate themselves ?


What is Pricing ?

Pricing is selecting the best price at which to sell a

product.

� Prices must support a variety of costs

� Prices must be competitive

- Low- and high-price strategies can be effective in different

situations


What is Promotion ?

Promotion is the techniques for communicating

information about products. Four promotional tools:

a. Advertising

b. Personal Selling

c. Sales Promotions

d. Public Relations


What is Distribution or Place ?

Distribution is part of the marketing mix concerned

with getting products from producers to consumers.

�Decisions about warehousing, inventory control and

transportation options

�Decisions about channels


What is Market Segmentation ?

Market segmentation is the process of dividing a market into categories of customer types


Identifying Market Segments

1. Geographic variables are geographical units

2. Demographic variables are characteristics of populations


Demographic Variables


3. Psychographic variables are consumer characteristics such as lifestyles, opinions, interests and attitudes

4. Behavioral variables are consumer characteristics based on the use of a product, benefits sought from it, reasons for its purchase and brand loyalty

Toothpaste w/

-Whiteners

-Fluoride

-etc.


What is Target Market ?

Target markets are groups of people with similar wants and needs


Market Research & the Marketing Process

Study of consumer needs and wants and the ways in which sellers can best

meet them


What is Consumer Behavior ?

Study of the decision process by which people

buy and consumer products


Brand Loyalty

Pattern of regular consumer purchasing based on

satisfaction with a product


Consumer Buying Behavior


Organizational Markets

a. Industrial market includes businesses that buy goods to be converted into other products or used

during production

b. Reseller market consists of intermediaries that buy

and resell finished goods

c. Government and institutional market consists of

nongovernmental buyers of goods and services


The International Marketing Mix

� International Products Some products can be soldabroad with few changes

� International PricingMarketers must consider the higher costs of transporting and selling products abroad

� International DistributionDelays in starting new distribution networks can be costly

� International PromotionA good ad campaign is a good campaign just about everywhere


Small Business and the Marketing Mix

� Small-Business Products --> Small firms should

understand consumer wants before creating new

products or services

� Small-Business Pricing -- > Small firms should set prices

by assessing costs

� Small-Business Distribution -- > Small firms should

select a facility location aimed at attracting and

retaining customers

� Small-Business Promotion -- > Small firms should plan

promotional expenses as part of start-up costs

Business w09 Understanding Marketing @1

Business

Transcript of Business w09 Understanding Marketing @1