Transcript Class 23 11-15 Overview of Marketing Power Point Presentation

Overview of Marketing
Class 23
Tuesday 11/15/11
Nature of Marketing
• To create value by allowing people and
organizations to obtain what they need
and want
The Exchange Process: Giving Up One
Thing for Another
Marketing Creates Utility
• Utility—the ability of a a product or
service to satisfy human needs and wants
–
–
–
–
Place
Time
Ownership
Form
Evolution of the Marketing Concept
• The production orientation
– During the second half of the 19th century
• The sales orientation
– By the early part of the 20th century
• The marketing orientation
– By the 1950s
Marketing Orientation
• Requires organizations to:
– Gather information about customer needs
– Share that information throughout the entire
firm
– Use that information to help build long-term
relationships with customers
Developing Marketing Strategy
• Marketing strategy:
– A plan of action for developing pricing,
distributing and promoting products that
meet the needs of specific customers
• Two major components:
– Selecting a target market
– Developing the appropriate marketing mix
Selecting a Target Market
• Market
– A group of people who have a need, purchasing
power, and the desire and authority to spend money
on goods, services, and ideas
• Target market
– A more specific group of consumers on whose needs
and wants a company focuses its marketing effort
Target Market Strategies Total-Market
Approach
Further Refinement
• Market Segment
– A collection of individuals, groups, or organizations
who share one or more characteristics and have
similar product needs and desires
• Niche Market
– Narrow market segment focus when efforts are on
one small, well-defined segment that has a unique,
specific set of needs
The Keys to Successful Market
Segmentation
1.
2.
3.
4.
5.
Consumers’ product needs must be heterogeneous
Segments must be identifiable and divisible
The market must be divided so segment sales, cost, and profit can
be compared
One segment must have enough profit potential to justify a special
marketing strategy
The chosen segment must be reached by the firm with a particular
marketing strategy
Marketing Research & Information
Systems
• Marketing research
– A systematic, objective process of getting
customer information to guide marketing
decisions
• Marketing information system
– A framework for assessing information about
customers from internal and external sources
Collecting Data
• Primary data
– Marketing information that is observed, recorded, or
collected directly from respondents
• Secondary data
– Information that is compiled inside or outside an
organization for some purpose other than changing
the current situation
Influences On
Buying Behavior
Psychological
Motivation
Perception
Learning
Attitudes
Personality
Social
Family
Reference
Groups
Economic or
Social Status
Culture
The Marketing Mix and the
Marketing Environment
The 4 P’s
• Product: A good, service, or idea that has tangible and intangible
attributes that provide satisfaction and benefit to consumers
– Products should be sold at a profit
• Price: A value placed on a product or service that is exchanged
between a buyer and seller
• Place (Distribution): Making products available to consumers in the
quantities and locations desired
• Promotion: A persuasive form of communication that attempts to
expedite a marketing exchange by influencing individuals and
organizations to accept goods, services, and ideas
Product - Life Cycle
Introduction Stage
& Marketing Mix
Product Awareness
Limited Competition
Skim-Pricing Approach
Few Channels
Growth Stage & Marketing Mix
Building Sales
Competition = Lowering Prices
Multiple Channels
Profitable
Maturity Stage & Marketing Mix
Sales Grow At Decreasing Rate
Differentiate from Competition
Price Wars
Profits Up With Sales
Changing Consumer Preferences
Decline Stage
& Marketing Mix
Demand Down
Intense Price Competition
Profits Low Or Losses
Revitalize Or Pull Product
Pricing - Product Pricing
•New
$Skimming
$Penetration
•Other
$Cost-Based
$Demand-Based
$Target Costing
$Prestige
$Odd-Even
Place - Distribution
• Intermediary – “…a wholesaler or retailer
who helps move products from their
original source to the end user…”
• Each intermediary in the channel of
distribution requires a profit margin, thus
increasing the cost of the product.
Distribution Channels
The Supply Chain
Value Chain
• “…the entire range of activities
involved in delivering value to
customers…”
Promotion Mix
• “…the means by which
(companies) communicate
with customers…”
Considerations Before
Selecting Promotional Strategy
Purpose of Promotion?
Target Market?
Product Features to Emphasize?
Afford?
Similar to Competitors?
Promotional Tools
Promotion - Branding
• “…word, letter, sound, or symbol that…
differentiate(s)… products on the market.”
R
• Trademark – “…register(ed)
name with
the U. S. Patent and Trademark Office.”
• U.S. Patent & Trademark Website
Branding Strategies
Private Branding
Generic Branding
Manufacturer Branding
Branding Equity & Loyalty
• Equity – Value of a brand generated by a
favorable consumer experience with a
product or service
• Loyalty – Consumer preference for a
particular product or service that develops
over time based on satisfaction with the
company’s products or services
Packaging/Labeling
• Packaging - “…container that
holds…(the) product.”
• Labeling – “…what… (is said) about the
product on… (the) packaging.”