3 needs concepts 4p s market+analysis

8/13/2019 3 Needs Concepts 4P s Market+Analysis

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Needs State of felt deprivation:

Physical: food, clothing, warmth, safety

Social:

belonging and affection

Individual:

knowledge and self-expression


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Based on FOUR premises all humans acquire a similar set of motives

through genetic endowment and socialinteraction

Some motives are more basic and criticalthan others

The more basic needs must be satisfied atminimum level before others are activated

As soon as the basic motives are satisfied,

more advanced motives come into play


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Behaviour is directed towards satisfying needs Needs are satisfied in a hierarchical order

Behaviour is influenced by unsatisfied needs Satisfaction results in behaviour being focused

on satisfying new needs Non satisfaction of needs results in frustration


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PHYSIOLOGICAL Products: Predominantly in poorer sections of

society, basic foods such as mielie meal, samp,bread

In a more affluent society, medicines such asspecial drinks and foods for athletes, zerocholesterol margarine for heart conditionsufferers, light drinks for weight conscious, gyms


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SAFETY products

In poorer society, basic housing, shelter

In wealthy societies, home security systems, cars

SOCIAL NEEDS products

Personal grooming, foods, entertainment,alcoholic drinks


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ESTEEM NEEDS products

Clothing, cars, furniture, TV, cell phones

SELF ACTUALISATION products

Education, hobbies, wine, therapy

Hard to buy.but you can try!

Various products will satisfy more than 1need


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Understanding Needs is the key to themarketing concept eg

Encyclopaedia Brittanica: In the past, a detailed 30-volume book, with an

annual update volume

Information about almost everything, using the

best authors, highest quality printing, graphics

BUT

It dated very quickly, it was expensive, marketing

and production costs very high


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Today.. It doesnt exist Replaced by

Encarta, Google, Wikipaedia.. For free on pc, laptop, cell phone, Ipad

And.. Their benefits (besides price)

Up to date

Easy access (very user friendly)

Easy cut and paste.. But be careful.. We have

Turnitin, Mydropbox


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Easy access, friendly, accurate, up to date,information which can be used for

referencing, create a unique project, which ischeap

The lesson

Needs can be satisfied in a number of ways..

People dont need a book, they need information


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Written by Theodore Levitt 1963

Revolutionary, controversial but still relevant today


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Define your business in terms of CUSTOMERS NEEDSnot on the basis of your product: Were not in railroads, were in the efficient transport business

Were not in TV, were in the entertainment business

Imaginative market definition is the basis for success,e.g Revlon Im no selling cosmetics, Im selling hope in a bottle


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CAN YOU THINK OF ANY? Cargo ships to container ships and palletised air freight

Sea travel to air travel

Rail travel to car; to air ; air to rail Post to courier services to email

Handwritten posted cheques to cheque cards to internet

Records to CDs to DVDs to internet downloading toiPods

Landline telephone to cell phone to Skype

Conference attendance to video conferences

Hotels to B&B


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Needs Wants Demands

A state of felt

deprivation

The form that

needs take as theyare shaped byculture andindividualpersonality

Want food?

Curry or Sushi?

Wants backed by

buying power

Want a Car?

Ferrari anyone?


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Market offerings Some combination of products, services,

information or experiences offered to amarket to satisfy a need or want Exchanges

Money

Time

Mutually beneficial


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In designing a strategy to generate profit,what philosophy to follow?

Production concept Product concept Selling concept Marketing concept Societal concept


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Production concept Product concept

The idea that consumers willfavour products that are

available or highly affordableand that the firm shouldtherefore focus on improvingproduction and distribution

efficiency. Manufacturing in China

Beware Marketing Myopia

The idea that consumers willfavour products that offer the

most quality, performance andfeatures for which the firmshould therefore devote itsenergy to making continuous

improvementsCareful not to design a betterencyclopedia!


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Selling concept Marketing concept

The idea that consumers willnot buy enough of the firmsproducts unless it undertakes alarge-scale selling andpromotion effort.

Often with grudge purchases -

insurance

Aggressive sales, highacquisition costs.

Risk: CRM

The philosophy that achievinga firmsgoals depends onknowing the needs and wantsof the target markets anddelivering the desiredsatisfactions better than

competitors do.Not make and sell

Sense and respond

Continuous assessment


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Societal marketing concept

A principle that holds that a firm should make

good marketing decisions by consideringconsumers wants, the firms requirements,

consumers long-term interests and societys

long-run interests

Elizabeth Anne

Society

BusinessConsumers


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INTEGRATED MARKETING PROGRAMME:

WHAT IS IT?

A comprehensive plan that communicates and delivers the

intended value to chosen customers


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Marketing mix The set of tools (four Ps) the firm uses to

implement its marketing strategy.

Extended marketing mix

People

Processes

Physical evidence

Product PromotionPrice Place


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SELLERS VIEW

Product

Price Place Promotion

BUYERS VIEW

Customer solution

Customer cost Convenience Communication


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Managing the marketing effort on anongoing basis requires:

Analysis Planning Implementing Controlling

Analyse

Plan

ImplementMeasure

Adapt


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Executive summary Analysis

Current marketing situation

Threats and opportunities Planning

Objective and issues

Implementation

Action programmes

Budgets

Controls

KPIs


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The process that turns marketing plans intomarketing actions to accomplish strategic

marketing objectives

Successful implementation depends on howwell the firm blends its people, organisationalstructure, decision and reward system, andfirm culture into a cohesive action plan thatsupports its strategies


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Functional

Centralised and specific: Sales, advertising,

research, agency Geographic

Based on territories

Product

Where many products, focus per product

Market or customer management

Based on differing customer needs per marker


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Measuring and evaluating results and taking

corrective action as needed

Audit

Operating control check against plan

Strategic control check the plan!

ROI and KPIs


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FactoryExisting

ProductsSelling andPromoting

Profitsthrough

sales volume

MarketCustomer

NeedsIntegratedMarketing

Profitsthrough

customersatisfaction

The selling

concept

The

marketing

concept

Starting Focus Means Ends

Kotler,24


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Strengths

Internal capabilities,resources and positivesituational factors that

may help to servecustomers and achieve

objectives

Weaknesses

Internal limitations andnegative situational

factors that may

interfere withperformance

Opportunities

Favourable factors ortrends in the external

environment that maybe exploitable

Threats

Unfavourable factorsor trends that may

present challenges toperformance

3 needs concepts 4p s market+analysis

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