Transcript chapt-7
Introduction to Marketing Chapter 7 1 What is marketing? ‘Marketing is the management process that identifies, expects and satisfies customer requirements profitably’. ‘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. 3 Marketing, more than any other business function, deals with customers. Creating customer value and satisfaction are at the very heart of modern marketing thinking and practice. 4 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 5 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 6 CUSTOMER has needs, wants, demands and desires Understanding these needs is starting point of the entire marketing 7 Marketing Mix (4 P) a) Product b) Price c) Place d) Promotion The 4 Ps of Marketing Marketing Mix Place Product Price Promotion 9 a. Product is . . . . . Anything that is offered to the market for attention, purchase, or use that satisfies a want or a need 10 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 12 Some Industries - Service Sector Banking, Health care Restaurants, Education Insurance Wholesaling and retailing News and entertainment dry-cleaning 13 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 back c) Place Production site (distribution) Warehouse consumer Wholesaler Retailer back 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 A written document that acts as a guidebook of marketing activities for the marketing manager 21 CONTENTS of MARKETING PLAN Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy Marketing Mix Product Promotion Price Place – Distribution Implementation, Evaluation and Control 22 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 23 Marketing Environment All the forces influencing the company’s ability to conduct business effectively with it’s target market. Market Environment 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 Political factors Economic factors Socio-cultural factors Technological factors Political/legal Environmental protection laws Taxation policy Employment laws Government policy Legislation Economic Factors Inflation Employment Disposable income Energy availability and cost Sociocultural factors Demographics Distribution of income Social mobility Lifestyle changes Levels of education Technological New discoveries and innovations Speed of technology transfer Internet Information technology