1 introduction to marketing chapter 7 what is marketing? ‘ marketing is the management process...

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Introduction to Marketing

Chapter 7

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’

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The Goal of Marketing is:

To attract new customer by ensuring

superior value, and to keep current

customers by delivering satisfaction.

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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.

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Difference Between - Sales & Marketing ?

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

Who is a Customer ??

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Anyone who is in the market looking at a

product / service for attention, acquisition,

use or consumption that satisfies a want or a

need

CUSTOMER IS . . . . .

CUSTOMER has needs, wants, demands and

desires

Understanding these needs is starting point of

the entire marketing

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a) Product

b) Price

c) Place

d) Promotion

Marketing Mix (4 P)

The 4 Ps of Marketing

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MarketingMix

Product

Price Promotion

Place

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Anything that is offered to the market for

attention, purchase, or use that satisfies a want

or a need

a. Product is . . . . . a. Product is . . . . .

a) Product

nowadays:

- products have a life cycle

- product range is always expanded

- find out what target market desires

traditional economies: same things produced and consumed

Types of Products

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ConsumerProducts

IndustrialProducts

PRODUCTS

Services

Some Industries - Service Sector

Banking,

Restaurants,

Insurance

News and entertainment

Health care

Education Wholesaling and

retailing dry-cleaning

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b) Price

Pricing strategies:

1. Market determinesthe price

2. Price as an expression

of quality3. Price as a method of

gaining market share

back

c) Place (distribution)

Production site Warehouse Wholesaler

Retailerconsumerback

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:

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2. Sales promotion

is a short-term motivationto buy a product/service

Techniques:

3. two for one

2. loyalty reward points

1 price reduction

3. Public relations

Does not aim to increase sales directly but tries to enhancement the image of the company

- - community events - charitable events

Techniques:

- press conferences

The Marketing Plan

A written document that acts as a

guidebook of marketing activities for the

marketing manager

A written document that acts as a

guidebook of marketing activities for the

marketing manager

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CONTENTS of MARKETING PLAN CONTENTS of MARKETING PLAN

Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy Marketing Mix

Product Promotion Price Place – Distribution

Implementation, Evaluation and Control

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The Marketing ProcessThe Marketing ProcessBusiness Mission Stateme

nt

Objectives

Situation or SWOT Analysis

Implementation Evaluation,

Control

Target Market Strategy

Marketing Strategy

Product

Promotion

Place/Distribution

Price

Marketing Mix

Marketing Environment All the forces influencing the

company’s ability to conduct business effectively with it’s target market.

Market Environment Includes:

Micro-environmentMicro-environment - forces close to the company that affect its ability to serve its customers.

Macro-environmentMacro-environment - larger societal forces that affect the whole microenvironment

Company

Demographic

Economic

Natural

Technological

Political

Cultural Company

Customers

Intermediaries

Suppliers

Competitors

Public

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