Transcript Introduction to Marketing

Introduction to Marketing
Chapter 5
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What is marketing?
‘Marketing is the management process that
identifies, expects and satisfies customer
requirements profitably’.
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‘The right product, in the right place, at the
right time, and at the right price’
The Goal of Marketing is:
To attract new customer by ensuring superior
value, and to keep current customers by
delivering satisfaction.
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Marketing, more than any other business function,
deals with customers.
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Creating customer value and satisfaction are at the
very heart of modern marketing thinking and
practice.
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Difference Between - Sales & Marketing ?
Sales:
trying to get the customer to want what the
company produces.
Marketing
:
trying to get the company produce what the
customer wants
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Who is a Customer ??
CUSTOMER IS . . . . .
Anyone who is in the market looking at a
product / service for attention, acquisition,
use or consumption that satisfies a want or a
need
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CUSTOMER has needs, wants, demands and
desires
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Understanding these needs is starting point of
the entire marketing
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Marketing Mix (4 P)
a) Product
b) Price
c) Place
d) Promotion
The 4 Ps of Marketing
Marketing
Mix
Place
Product
Price
Promotion
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a. Product is . . . . .
Anything that is offered to the market for
attention, purchase, or use that satisfies a want
or a need
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a) Product
 traditional economies: same things
produced and consumed
 nowadays:
- products have a life cycle
- product range is always expanded
- find out what target market desires
Types of Products
PRODUCTS
Consumer
Products
Services
Industrial
Products
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Some Industries - Service Sector
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Banking,
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Health care
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Restaurants,
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Education
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Insurance
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Wholesaling and
retailing
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News and entertainment
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dry-cleaning
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b) Price
Pricing strategies:
1. Market determines
the price
2. Price as an expression
of quality
3. Price as a method of
gaining market share
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c) Place
Production site
(distribution)
Warehouse
consumer
Wholesaler
Retailer
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d) Promotion
Aims:
 communicate with customers
 influence customers
4 major tools:
1. Sales force
2. Advertising
3. Sales promotion
4. Public relations
1. Advertising
Presents a reason to buy a product/service
Media:
back
2. Sales promotion
 is a short-term motivation
to buy a product/service
Techniques:
1 price reduction
2. loyalty reward points
3. two for one
3. Public relations
Does not aim to increase sales directly but
tries to enhancement the image of the
company
Techniques:
- press conferences
- - community events
- charitable events
The Marketing Plan
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A written document that acts as a
guidebook of marketing activities for the
marketing manager
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CONTENTS of MARKETING PLAN
Business Mission Statement
 Objectives
 Situation Analysis (SWOT)
 Marketing Strategy
 Marketing Mix
 Product
 Promotion
 Price
 Place – Distribution
Implementation, Evaluation and Control
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The Marketing Process
Business
Mission
Statemen
t
Objective
s
Situation
or SWOT
Analysis
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product
Place/Distribution
Promotion
Price
Implementation
Evaluation, Control
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Marketing Environment
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All the forces influencing the company’s
ability to conduct business effectively
with it’s target market.
Market Environment
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Includes:
 Micro-environment - forces close to the
company that affect its ability to serve
its customers.
 Macro-environment - larger societal
forces that affect the whole
microenvironment
Demographic
Company
Economic
Cultural
Public
Political
Company
Competitors
Suppliers
Customers
Intermediaries
Technological
Natural
PEST analysis
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Political factors
Economic factors
Socio-cultural factors
Technological factors
Political/legal
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Environmental protection laws
Taxation policy
Employment laws
Government policy
Legislation
Economic Factors
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Inflation
Employment
Disposable income
Energy availability and cost
Sociocultural factors
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Demographics
Distribution of income
Social mobility
Lifestyle changes
Levels of education
Technological
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New discoveries and innovations
Speed of technology transfer
Internet
Information technology