Transcript Basic Marketing Concepts

Basic Marketing
Concepts
Overview
•
•
•
•
Marketing Concepts
Customer Needs
Industry Competition
Target Marketing, Segmentation,
and Marketing Research
• New Product Development and
Sales
Module 1
Basic Marketing
Concepts
The Marketing Concept
Customer
Satisfaction
Total Company
Effort
The
Marketing
Concept
Profit
Utility and Marketing
From Production
Time
Form
Utility
Value that comes
from satisfying
human needs
Place
Task
Possession
From Marketing
Customer Value
Costs
Benefits
• One customer’s views may vary from another
customer’s view, so firm may not be able to satisfy
everybody
• Customer value concept takes the customer’s point
of view, but customers may not explicitly weigh
costs and benefits
The Marketing Management Process
Whole-Company
Strategic
Management
Planning
Adjust Plans
As Needed
Control Marketing
Plan(s) and Program
Marketing
Planning
Implement Marketing
Plan(s) and Program
The Four Ps of the Marketing Mix
Product
Place
C
Price
Promotion
Four P’s Strategy Decision Areas
Product
Place
Promotion
Price
Physical Goods
Service
Features
Quality Level
Accessories
Installation
Instructions
Warranty
Product Lines
Packaging
Branding
Objectives
Channel Type
Market Exposure
Kinds of
Middleman
Kinds and
Locations of
Stores
How to Handle
Transporting
and Storing
Service Levels
Recruiting
Middlemen
Managing
Channels
Objectives
Blend
Salespeople
Kind
Number
Selection
Training
Motivation
Advertising
Targets
Kinds of Ads
Media Type
Copy Thrust
Who Prepares?
Sales Promotion
Publicity
Objectives
Flexibility
Level over PLC
Geographic
Terms
Discounts
Allowances
Marketing Strategy Planning Process
Narrowing down to focused strategy with screening criteria
Customers
Company
S.
W.
O.
T.
Segmentation
& Targeting
Product
Place
Target
Market
Differentiation
& Positioning
Competitors
External Market Environment
Price
Promo
SWOT Analysis
Strengths
Internal
Factors
Weaknesses
Opportunities
Strategy
Planning
External
Factors
Threats
Strategy Planning for Advertising
Target Market
Product
Place
Promotion
Personal
Selling
Mass
Selling
Advertising
Target
audience
Kind of
advertising
Price
Sales
Promotion
Publicity
Media types
Copy thrust
Who will do
the work?
Basic Promotion Methods
Target
Market
Product
Place
Personal
Selling
Promotion
Mass
Selling
Advertising
Sales
Promotion
Publicity
Price
Pricing Objectives
Profit
Oriented
Pricing
Objectives
Sales
Oriented
Status Quo
Oriented
Target
Return
Maximize
Profits
Dollar or Unit
Sales Growth
Growth in
Market Share
Meeting
Competition
Nonprice
Competition
Strategy Planning for Price
Target
Market
Product
Place
Promotion
Price
Pricing
objectives
Price
flexibility
Price levels
over product
life cycle
Discounts and
allowances—
to whom and
when
Geographic
term —
who pays
transportation
and how
Key Factors That Influence Price Setting
Pricing
objectives
Price of other
products in the line
Demand
Price flexibility
Price
settin
g
Cost
Discounts and
allowances
Legal
environment
Geographic
pricing terms
Competition
Markup chain
in channels
Markups
50.00
30.00
Markup = 20.00 = 40%
24.00
Markup = 6.00 = 20%
Markup = 2.40 = 10%
Cost = 30.00 = 60%
Cost = 24.00 = 80%
Cost = 21.60 = 90%
Producer
Wholesaler
Retailer
Overview of Module 2
Customer Needs
A Model of Buyer Behavior
Marketing Mixes
All Other Stimuli
Psychological
Variables
Social
Influence
Purchase
Situation
Motivation
Perception
Learning
Attitude
Personality/Lifestyle
Family
Social Class
Reference Groups
Culture
Purchase Reason
Time
Surroundings
Person
Making
Decision
Problem-Solving Process
Person Does or Does Not Purchase (Response)
The PSSP Hierarchy of Needs
Personal
Needs
Social Needs
Safety Needs
Physiological Needs
The Consumer Problem Solving Process
Marketing mixes
Psychological
Variables
All other stimuli
Social Influences
Purchase
Situation
Person making
decision
Need-want Awareness
Routinized Response
Information Search
Set Criteria
Feedback of
information
as attitudes
Decide on Solution
Postpone
Decision
Purchase Product
Postpurchase
Evaluation
Response
Levels of Problem Solving
High involvement
Infrequently purchased
Expensive
High risk
Much information desired
Low involvement
Frequently purchased
Inexpensive
Little risk
Little information needed
Routinized
Response
Behavior
Limited
Problem
Solving
Low Involvement
Extensive
Problem
Solving
High Involvement
Involvement Continuum
Overview of Module 3
Industry
Competition
The Competitive Environment
Kinds of Markets
Competitor Analysis
Key
Concepts
in the
Competitive
Environment
Competitive Rivals
Competitive Barriers
Information on Competitors
Types of Retailers
Conventional
offerings
Singleand
limitedline
stores
Expanded
assortment
and service
Specialty shops and
department stores
Expanded
assortment
and/or reduced
margins/service
Supermarkets, discount
houses, mass-merchandisers,
supercenters
Added
convenience
higher margins
less assortment
Telephone/mail order,
vending machines,
door-to-door, convenience
stores, electronic shopping
Expanded
assortment
reduced margins
more information
Internet
Types of Wholesalers
Does wholesaler own
the products?
Yes (merchant wholesaler)
No (agent middleman)
How many functions
does the wholesaler
provide?
Some
functions
All the functions
Service
merchant
wholesalers
Limited-function
merchant
Wholesalers
Agent middlemen
Four Examples of Basic Channels of
Distribution for Consumer Products
Manufacturer or producer
Citibank
Del
Monte
Procter &
Gamble
Wholesaler
Wholesaler
Nissan
Wholesaler
Retailer
Consumer
Retailer
Retailer
Overview of Module 4
Target Marketing,
Segmentation &
Marketing
Research
Market Segmentation
B. Product-market showing
six segments
Status dimension
Status dimension
A. Product-market showing
three segments
Dependability dimension
Dependability dimension
Marketing Information Systems
Market
Research
Studies
Internal
Data
Sources
External
Data
Sources
Questions
and Answers
New Information
Informatio
n
Sources
Marketing
Models
Decisio
n
Maker
Result
s
Answers
?
Inputs
Databases
Decision
Support
System
(DSS)
Marketing
Manager
Decisions
Information
Technology
Specialists
Feedback
Outcomes
Marketing Research Process
Early
Identification
of
Solution
Defining
the
Problem
Analyzing
the
Situation
Getting
ProblemSpecific
Data
Feedback to Previous Steps
Interpreting
Data
Solving
the
Problem
Sources of Data
Secondary
Data
Sources
Inside Company
Outside Company
All
Data
Sources
Observation
Primary
Data
Sources
Questioning
Overview of Module 5
Product
Development
The Adoption Curve
Innovators
(3-5%)
Percent Adoption
90
Early
Adopters
(10-15%)
Early
Majority
(34%)
50
20
5
0
Time
Late
Majority
(34%)
Laggards/
Nonadopters
(5-16%)
The Adoption Curve
• Innovators:
• First to Adopt, Eager to Try
• Young, Well-Educated, Mobile
• Seek Info from non-salesperson Sources
• Early Adopters
• Opinion Leaders
• Greater Contact with Salespeople
• Word-of-Mouth
The Adoption Curve
• Early Majority:
• Avoid Risk, Try Only if Others Have
Usually are Not Opinion Leaders
• Late Majority:
• Cautious About New Ideas, Older
and More Set in Their Ways
• More Subject to Peer Pressure
The Adoption Curve
• Laggards:
• Suspicious of New Ideas
• Do Things the Way that They Have
Always Been Done
The Product Life Cycle
Market
Introduction
Market
Growth
Market
Maturity
Sales
Decline
Total Industry
Sales
+
Total Industry
Profit
$0
Time
–
Defining “Product”
Target Market
Product
Place
Promotion
Price
Product
Idea
Brand
Package
Warranty
Physical
good/service
Features
Quality level
Accessories
Installation
Instructions
Product line
Type of Brand:
Individual or
family
Manufacturer or
dealer
Protection,
Promotion,
or both
None, full, or
limited
The Transporting Function
Truck
Rail
Modes
of
Transportation
Air
Pipeline
Water
Push-Pull Strategies
Producer’s Promotion Blend
Wholesaler
Promotion
Push
Promotion to
Channel Members
Wholesaler
Promotion
Push
Retailer
Promotion
Push
Business
Customer
Pull
Final
Consumer
Pull
Promotion to
Final Customers
Promotion to
Business Customers
Personal Selling, Sales Promotion, Advertising, Publicity