Transcript introduction to marketing

Chapter 16 – The Market and
Marketing
Unit 3 - Marketing
You will learn ………
The meaning of “market” & “marketing”
 The objectives marketing
 Product-Orientated & Market-Orientated
business
 Market Segmentation
 The Marketing Mix (4 P’s)

What is a market?
What is a market?
A
market is
where
buyers and
sellers come
together to
exchange
products for
money.
Market - Buyers & Sellers
Question Time???
Name another
product that
has a large
market?
Question Time???

Name a Thai product
that does not have a
large market?

Why is it not sold to
many people?
What is a product?
goods
services
What is a product?
Product-Orientated Businesses
Produce product
then find the
market
 Basic necessities
for required for
living
 Concerns

◦ Price
◦ Quality
Market-Orientated Businesses

Identify wants and
desires of consumers
◦ Now
◦ Future

Aim
◦ Produce the right
goods
◦ Sell
◦ Profit
Market-Orientated Businesses

Advantages
◦ Survival
◦ Successful
◦ Prepared for changes
in customer tastes
◦ New market
opportunities
◦ More confidence in
launching new
products
What is Marketing?
Selling
 Advertising
 Promotion

Product Development
 Consumer Tastes
 Packaging
 Pricing
 Place

Question Time???

Joshua invents a new tool for planting
seeds. It is much easier to use than
existing tools. However, it has high
production costs, twice as much as
existing tools.
Product or Market Orientated?
 What advise would you give to Joshua
before manufacturing the new tool?

… to find current
consumer
requirements
… to predict
future consumer
requirements
The Function of
Marketing
… to help to
make profits to
the business
… to satisfy
consumer needs
The Marketing Department
Marketing
Director
Sales
Regional
Sales
Manager
R&D
Regional
Sales
Manager
Promotion
Advertising
Distribution
Promotion
Which department?
Marketing
Director
Sales
Regional
Sales
Manager
a.
R&D
Regional
Sales
Manager
Promotion
Advertising
Distribution
Promotion
Anya spends most of her time in other
countries showing the product to
people who buy stock for large retail
groups
Which department?
Marketing
Director
Sales
Regional
Sales
Manager
b.
R&D
Regional
Sales
Manager
Promotion
Advertising
Distribution
Promotion
Mohamed spends his time arranging for
adverts of the product to be placed in
newspapers and magazines
Which department?
Marketing
Director
Sales
Regional
Sales
Manager
c.
R&D
Regional
Sales
Manager
Promotion
Advertising
Distribution
Promotion
Paul spends most of his time producing
new products.
Which department?
Marketing
Director
Sales
Regional
Sales
Manager
c.
R&D
Regional
Sales
Manager
Promotion
Advertising
Distribution
Promotion
Paul spends most of his time producing
new products.
Which department?
Marketing
Director
Sales
Regional
Sales
Manager
d.
R&D
Regional
Sales
Manager
Promotion
Advertising
Distribution
Promotion
Mary organises the airline flights for the
products to be sent to their markets
abroad.
To increase
sales revenue
and profit
To increase or
maintain
market share
Objectives of Marketing
To maintain or
improve the image
of products or
business
To target a new
market or market
segment
To develop new
products or
improve existing
products
Sales Revenue v’s Profit
800 baht
Sales Revenue is
money received by a
business
 E.g.

◦ 800 baht
Profit = Sales Revenue – Costs
 E.g.

◦ 400 = 800 - 400
Market Share
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Market Share
Market Share
Firm's Sales / Total Market Sales
http://www.sefanatics.com/Kuvat/other/mar
ket_share.png
Case Study Example
A fizzy drinks
manufacturer has
60% of the market
and wants to expand
its operation and
increase its share in
the market still
further.
Case Study Example
Pepsi has been trying
to increase their
market share against
Coca-Cola. To do this
their advertising has
focused on young
people.
Case Study Example
A chocolate bar
manufacturer, wellknown for its
original
advertisement with
cartoon characters
aimed at children.
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Internal
Strengths
Weaknesses
External
SWOT Analysis
Opportunities
Threats
SWOT Analysis
Helpful
Harmful
Strengths
Weaknesses
Opportunities
Threats
Helpful
Harmful
Internal
Strengths
Weaknesses
External
SWOT Analysis
Opportunities
Threats
Customers…

Knowing your customers is a vital tool in
running a successful business…
Market Segmentation
Segment
B
Segment
C
Segment
E
Segment
D
Segment
A
Segment
F
Market Segmentation
Income
Market Segmentation
Age
Market Segmentation
Region
Market Segmentation
Gender
Market Segmentation
Use of
Product
Market Segmentation
Lifestyle
Market Segmentation
Region
Gender
Lifestyle
Age
Income
Use of
Product
Multiple Segments in the
Market for Soap
So which market segment
customer would buy these?

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

Income
Age
Region
Gender
Use of Product
Lifestyle
Social class
Spanish villa
Market Segmentation in
Social Groups






A
B
Higher managerial, administrative or professional
Intermediate managerial, administrative and
professional
C1 Supervisory, clerical, junior administrative or
professional
C2 Skilled manual workers
D Semi and unskilled manual workers
E Casual labourers, state pensioners & unemployed
Why is it important to understand ALL
your customers?

The benefits they want (service or
extras)

The amount they are able to or willing
to pay

Media (e.g. television, newspapers, and magazines) they see
– to target your advertising at them.

The quantities they buy – and what special offers catch
their interest.

The time and place that they buy
Market Identification by
Segmentation







Segment identified
Price
Quantity
Packaging
Advertisements
Time
Location

Increase Sales to
Increase Profit
Marketing Mix
The Four P’s of Marketing
Place
Where you
place your
product
Product
Price
Promotion
Do people How is your How are you
need or want
product
promoting the
your product?
priced?
product?
Gap in the market

an opportunity in a
market where no
supplier provides a
product or service
that buyers need