Transcript Document

Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to
create exchanges that satisfy individuals' and
companies' goals.
Marketing is a social & managerial
process by which individuals &
groups obtain what they need &
want through creating ,offerings &
exchanging products of value to
others
Best Definition: Satisfying Needs
Profitably
Defining a Marketing Orientation
Exactly what is a marketing orientation? It
occurs when everyone in the organization is
constantly aware of

l who the company's customers are

l what the company's customers want or
need

l how the firm can satisfy those customer
needs better than its rivals
 l how the firm can satisfy customer needs in a
way that generates the kind of profits
 that the company wants to achieve
Marketing orientation begins at the top level of
planning. A marketing orientation is a customer
orientation that is embodied in a company's
 mission—its
very reason for existing; for
example, "Our mission is to provide lowpollution cars at a price that customers consider
affordable and that lets our employees and
shareholders achieve their personal objectives."
 strategy—the concrete actions the company must
take to achieve its mission; for instance, "We must
master the latest vehicle-emissions technology."
Effective marketing is a company-wide enterprise
that hinges on a philosophy shared by everyone
within the organization. And a marketing
orientation is vital because it helps your company
achieve its mission.
Needs
Wants
Value
Products
Demands
Cost &
Exchange &
Transaction
Satisfaction
Relationship
& Networks
Golden Rule:
It’s easier to retain an
existing customer than to
bring a totally new one
Marketers
&
Prospects
Markets
Pay attention to your customers
The process starts with understanding customers.
Marketing is a way of understanding and
satisfying the
customer.
Understand what the customer wants. Once
marketers
understand these basic drives, they set about
satisfying the customers' (or target
market's) needs, wants, and demands.
Needs are fundamental requirements, such as food,
air, water, clothing, and shelter. Beyond the
purely physical level, people also need recreation,
education, entertainment, and a place within a
community or social status.
Wants are needs that are directed at specific
objects that might satisfy those needs. For
instance, you might need food, but for a special
occasion you may want to have a meal at a restaurant
rather than preparing your food at home.
Demands arise when people both want a specific
product and are willing and able to pay for it.
These needs are essential for life or quality of life, and
marketing per se cannot affect the needs themselves.
But marketing can influence how those needs are
fulfilled.

stated needs—

real needs—

unstated needs—

delight needs—

secret needs—
Need: Basic Human Requirements
Want: Specific Object that satisfies the NEED
Demand: Wants for specific products backed up
by ability & willingness to buy them
Match company offerings to customer
needs
Customers' needs can be fulfilled in various
ways—successful companies adapt their
offerings to match their customers' needs.
Companies can offer the following:
Product: Is anything that can be offered to
satisfy a need or want
Product=Offering=Solution

Overall value : The consumer's estimate of the
product overall capacity to satisfy his needs.
Overall Value = Benefits / Costs

Mercedes Vs Chinese products

Satisfaction : Overall Value : Perceived Value
Four Conditions:

Two parties

Each has something of value to the other

Can communicate

Each party is free to accept or reject exchange
• Transfer is ……..

Cost of an avg. sales
call
$
300



Average no. of sales
call to convert a
prospect to customer
*4

Annual customer
revenue
$ 5,000
Avg. no. of loyal
years
*2
Company profit
margin
0.1
*
$ 1,200
$ 1,000

Golden rule : It is easier to retain an existing
customer than to get a new one.

Relation with who?????

Ultimate outcome : Marketing network
 Market
Communication
Industry
(sellers)
Goods and Services
Money
Market
(Buyers)
Information
Where is the error ?

Marketer types :
- Creative Marketer
- Responsive Marketer


Example:
Customer types :
- Potential customer
- Customer
1.The Production Concept:
Holds that consumers will favor those products
that are widely available & low in prices.
They concentrate on:
 High production efficiency
 Low cost
 Mass distribution
Examples: Henry Ford,China
Myopia: Not all people prefer cheap products.
2.The Product Concept:
Holds that consumers will favor those products
offer the most quality,performance or
innovative features.
They concentrate on:
 Making superior products
 Improving them overtime
Examples: Dell,Germany
Myopia: They fall in love with their own
Product.
3.The Selling/Sales Concept:
Holds that consumers if left alone will
ordinarily
not
buy
enough
of
the
organization’s products.
They concentrate on:
 Aggressive selling
 Promotion effort
Examples: The Northern coast
Myopia: They assume that the people will like
the product & they won’t bad-mouth it.
4.The Marketing Concept:
Holds that the key to achieving the goals of the
organization is through identifying &
Satisfying the needs & wants of target
Markets.
No Myopia: Meeting Needs profitably
TheyPoint
concentrate
on:Means
Starting
Focus
Ends
Target
Customer
Integrated
Market
Needs
Marketing
Profits through
Customer’s
Satisfaction
a.
b.
Target Market
Customer Needs
Can be identified by either Marketers :
1. Responsive Marketer
c.
d.
2. Creative Marketer
Integrated Marketing: Teamwork among all
departments of the company to satisfy the
customer.
Profits through Customer’s Satisfaction
5.The Societal Marketing Concept:
Holds that the organization’s task is to
determine the needs,wants & interests of target
Market & deliver the desired satisfactions
more effectively than competitors in a way that
preserves or enhances the consumer’s & the
society’s well being.
They concentrate on: Building Social & Ethical
Considerations into their Marketing practices
Example:
Selling
Starting Point
Factory
Focus
Products
Means
Ends
Selling &
Promoting
Profits through
sales volume
Make-Sell Philosophy
Marketing
Right Customers for your Product
Target
Customer
Market
Needs
Integrated
Marketing
Profits through
Customer’s
Satisfaction
Sense-Respond Philosophy
Right Customers for your Product
Decision Making
Sales
Marketing
Customers
Top
Management
Middle
Management
Front Line People
Customers
Front Line People
Middle Management
Top
Management
Defining Target market
Marketing Mix
4 Ps
Needs, wants& Demands
Market research
Segmentation
Targeting
Positioning
Product
Price
Promotions
Place

Segmentation

Targeting

Positioning
A process of subdividing the market into
distinct subsets of customers that behave in
the same way or have similar needs.
Before Segmentation
After Segmentation
Geographic
Demographic
Psychographic
•Country
•Age
•Lifestyle
•City
•Nationality
•Climate
•Religion
•Density
•Education
•Region
•Occupation
•Gender
•Social Class
•Personality
Behavioral
•Occasions
•Attitude toward
product
•Loyalty status
•Usage rate
•User status
The act of evaluating & Comparing the
identified groups and selecting one or more
of them as the prospects
Before Targeting
After Targeting
1.
2.
3.
4.
5.
Differentiating: The act of designing a set
of meaningful differences to distinguish the
company’s
offerings
from
competitor’s
offerings through differentiating the PRICE or:
Product (McDonald’s,Cadillac)
Service (Pizza’s war)
Personnel (A good Salesman)
Channel (Chipsy’s war)
Image (Azhar,Emirates Airlines)

Segmentation

Targeting

Differentiation & Positioning

Mini MBA course, Knowledge Academy, 2005

Presentation skills, Logic, 2004
A Process of subdividing the market into distinct subsets
of customers that behave in the same way or have similar
need.
•Massive
•Segment
•Niche
Marketing
Marketing
Marketing
•Individual
Marketing
The act of evaluating and comparing the identified
groups and then selecting one or more of them as
prospects.
Single
segment
Concentration
Selective
Specialization
M1M2M3
M1M2M3
P1
P2
P3
Product
Market
Specialization Specialization
M1M2M3
Full Market
Coverage
M1M2M3
M1M2M3
P1
P1
P1
P1
P2
P3
P2
P3
P2
P3
P2
P3
The act of designing a set of meaningful differences to
distinguish the company's offerings from competitor's
offerings.
Product







Features
Performance
Quality
Durability
Reliability
Style
Design
Reparability
Service







Ordering ease
Delivery
Installation
Customer Training
Customer Consulting
Maintenance &
Repair
Miscellaneous
Services
Personnel






Competence
Friendly
Credibility
Reliability
Responsiven
ess
Communicati
on
Channel


Coverage
Image
• Identity Vs
Image
Performance • Symbols
• Written &
audiovisual
Media
• Atmosphere
• Events
The act of designing the company’s offering &
image so that they occupy a meaningful &
distinct competitive position in the target
customer’s mind
Emirates Vs Al-Arabia
The Palm
• Position of :
•Dubai
•Financial centre, The most prestigious
square Km on the face of the earth.
•Largest Park
•Tallest tower
Defining Target market
Needs, wants& Demands
Market research
Marketing Mix
4 Ps
SegmentationTargeting Positioning Product Price Promotions Place
4 Ps
4 Cs

Product
Customer Solution

Price
Customer Cost

Place
Convenience

Promotion
Communication
Is anything that can be afford to
a market to satisfy a want or a
need .
Potential Product
Augmented Product
Expected Product
Basic Product
Core Benefit
The set of all products & items that a seller
offers for sale to buyers
It has a certain Width , Length & Depth



Width:Different product lines
Length:total number of items in the mix
Depth:Varieties & Shapes of each Product
Product Mix Width
Detergents
Toothpaste
Bar soap
Diapers
Tissues
Tide
Crest
Camay
Pampers
Puffs
Arial
Gleem
Lava
Luvs
Summit
Ivory snow
Era
Ivory
Banner

Brand is a name, term, sign, symbol or design or a
combination of all that, intended to identify & differentiating
goods & services of a seller from those of competitors.
Five levels of customer attitude towards their brand :
Customer will
Values the
Satisfied Satisfied & would
change
brand
No reason to
incur
for price
& sees it as
change costs by changing
(no loyalty)
A Friend
Devoted to
The Brand

Includes the activities of designing &
producing the container or the wrapper for
the product.
Cheetos
Product life cycle
Soft drink war
• Coca Slogan vs Pepsi`s
• Coca manager quote :
“ We don`t compete with Pepsi only, We aren`t a
cola company only”
• Al-Ahram company and recognizing a new
segment.
• Fayrouz slogan
Time
Introduction
Sales
Growth
Maturity
Decline
Rising
Peak
Declining
Costs
Consumer
High
Average
Low
Low
Profits
Negative
Rising
High
Declining
Customer Innovators
Early
adopters
Middle
Majority
Laggards
Competitor
Growing
Stable
number
Declining
Max Profit
Reduce
Expenditure
Objectives
Few
Product
awareness
Max Market
share
1- Characteristics & Objectives
Low
Tim
e
Introductio Growt
Maturity
n
h
Offer a
basic
product
Pric
Cost
e
plus
Selective
Plac
Distributi
e
on
Adverti Build
awarenesssing
Sales Early
Heavy
Promoti adopters
on
Prod
uct
Offer
Diversify
extensions &brands &
services
Penetrati models
Matching
Decline
Phase out
weak
items
Cut
ng price
best
price
competitors
Intensive More
Phase out
Distributi intensive
unprofitable
on
distribution outlets
Build
Brand
Reduce
awareness- differences &
Reduce
to benefits
Mass
market
Increase
Reduce to
take adv. of to
minimal
heavy
encoura
level
demand
ge
A distribution channel consists of the group of
individuals & establishments which enter in the process
of transferring the products/service from the original
manufacturer to the end consumer.
One level Channel
Retailer
Two Level Channel
Wholesaler
Retailer
Agents
Agents
Two Level Channel
Wholesaler
Two Level Channel
Retailer
Retailer
Consumer
Manufacturer
Zero Level Channel (direct marketing)
Push Strategy
Pull Strategy
Company
Company
Wholesaler
Wholesaler
Retailer
Retailer
Customer
Customer
It’s time to work !!!!!!

Mini MBA course, Knowledge Academy, 2005

Communication skills:


Logic Handouts , 2004
Zedny, HDP , 2005