Transcript The Marketing Concept

The Marketing Concept
April 12th, 2013
Participant’s manual
2013 Level UP - Lebanon
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Seminar objectives
1. What is Marketing?
2. How it developed into today’s
science?
3. Learn the golden pillars in
Marketing
4. How you can build TRUST with
your clients?
5. How Marketing segmentation and
positioning will help your Strategy?
6. How IMC help boosting your
image?
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Marketing Principles
NATURE & SCOPE OF MARKETING:
* Social & human sciences:
sociology, psycho, political
* business sciences:
stat, mgt, eco, fin, acc
Idea
Purpose?
Concept?
Product
ingredients
taste / odor / features
Where? / How to access?
package / label
cost / price
Awareness / promo?
Market
to whom? Which people?
Which stores?
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Marketing Principles
Marketing: is simply to create a
consumer satisfying:
Product - Price it - Promote it - Place it.
Marketing is a customer-oriented process
by which companies create value for
customers and build strong customer
relationships to capture customers’ value in
return through satisfying their needs &
wants
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The Marketing evolution
Marketing Management Orientations
Production
concept
Selling
concept
Marketing
concept
Social
Marketing
concept
“Sales” Vs. “Marketing”
SALES
MARKETING
Seller focuses on his interests
Marketer focuses on client’s
interests
Seller focuses on making more
volume and more money
Marketer focuses on “making”
clients whom will bring more
money
Selling is usually short-range (hit
& run)
Marketing is long-term used to
build trust
Money generated from sales go
back to make more sales,
more volume and more $
Money generated from sales go
to R&D to make a “better
product”.
“To sell what we make”
“To make what we sell”
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Customer Value, Satisfaction, Retention
and Trust
Successful Relationships
1.
Customer
value
2.
High level
of
customer
satisfaction
3.
Strong
sense of
customer
trust
4.
Customer
retention
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The golden pillars in Marketing
1. Customer value: is to provide
customer with added value not
easily available at competitors
(differential advantage)
• Value is the ratio of perceived benefits
acquired versus what has been paid.
2. Customer satisfaction:
Is the individual’s perception of the
performance of the product in
relation
to his expectation
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The golden pillars in Marketing
3.
Customer retention:
The objective of providing
customers with “value” and
“satisfaction” is to “retain”
customers and make them
“loyal”.
We
provide
VALUE
SATISFAC
TION
Retention
LOYALTY
LOYALTY, WHY?
– They buy more products
– They are less price sensitive
– Servicing them is cheaper
– They spread positive word of mouth
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Before and After…
Before:
• Few Doctors (Doctors had
the influencing decisions you had to convince one
decision maker)
• Many patients unaware /
unknowledgeable
• Few companies were
dominating the markets with
products (80/20)
• Few Hospitals &
intermediaries
• Few similar medicines
• Fewer generic drugs
After:
• More Doctors (more demanding
Doctors)
• Final customers (patients) are
becoming more knowledgeable
• More companies with similar
products
• More generic drugs
• More hospitals
• More Pharmacists (even staff
prescribe!)
• Friends, nurses, aid-nurses
(they all prescribe)
• More active Distributors
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Creating Value for Target Customers
THROUGH
I. Market Segmentation
II. Market Targeting
III. Differentiation and Positioning
I. The Marketing segmentation
•
A target market: is a geographical
location composed of
heterogeneous people and whose
the Company aims its efforts at
•
Market segment: Since we want to
address only “some” of these
people, we will subdivide our target
market into “segments.”
•
My Target segment: will be the
above “segment” which will be now
“homogeneous” and treated with
same Marketing-mix strategies
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II. T- S - T
Targeted
geographical
region
Heterogeneous
Groups with
different needs
Chosen segment: Kids –
smokers – Parents – rich
people..
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1. Demographic Segmentation
Marital Status
Family Lifecycle
Income,
Education, and
Occupation
Age
Gender
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2. Psychological (Personality Traits)
• Trait is any distinguishing, relatively
enduring way in which one individual
differs from another
• Major types:
a) Inner Vs. Other-directedness
b) Extrovert Vs. Introvert
c) High Vs. Low Dogmatism
• Personality is linked to both, product
categories and specific brands
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3. Social Class & Lifestyles
• Social class stratification: High –
Middle - Low
• Psychographics include
activities, interests, and
opinions (A.I.O.)
• They explain buyer’s purchase
decisions and choices
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4. Benefits Segmentation
When consumers primarily
seek specific benefits from
their products:
• Uniqueness
• Quality or Value for money
• Emotional / social benefit
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III. Differentiation & Positioning
Positioning:
It is simply how customers
“view / perceive” your
product / brand or how you
want them to perceive it
(when compared to others)
Positioning is affected when
comparing our product Vs.
competitor’s through
consumer’s:
– Perceptions
– Impressions
– Feelings
• Positioning Concept
– “Positioned in” the
consumer’s mind
– “Positioned
against” competing
brands
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III. Differentiation and Positioning
1. Product differentiation:
Attribute – Price – Formula Package
2. Service differentiation:
Fast – reliable - coverage
3. Channel differentiation:
Strong market penetration
4. People differentiation
Knowledge – skills - Proactive
5. Image differentiation:
Class - Country of Origin
The market’s dynamics
End of Seminar
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