basics of marketing student version 2 (1)

MarketingBasics & Fundamentals

Anne Leinovaara-Matomäki

Turku University of Applied Sciences

© Anne Leinovaara-Matomäki

MIND MAPLearning Diary Task

Create, draw, a mind –map of the course theme / title. What it brings to your mind ??? What do you know about the subject ? What would you like to learn during the course ? What is known…any practical examples of your own ? What is new ? Any connections to other subjects, synonyms, definitions ? Boundaries, pros & cons, advantages & disadvantages ? Why do we study it ? Importance ? Meaning ? Etc…….


Marketing, Definitions


Marketing , DefinitionsWhat is Marketing


Marketing, DefinitionsWhat is Marketing?


Marketing , DefinitionsWhat is Marketing ?

“Marketing is not and event, but a ___________…. It has beginning, a middle, but never an end, for it is a ________. You improve it, perfect it, and even pause it. But you never stop it completely “ - Jay Conrad Levinson


What is not Marketing ?

“Marketing is not the art of finding clever ways to dispose of what you make. ----------------------------------------. It is the art of helping your customer become better off. The marketer’s watchwords are quality, service and value. “ -(Philip Kotler)

Customer does not necessary want to buy what we are selling !


Learning Diary

Task: Find out still some other Marketing definitions.

Try to comment on your own what is typical and common for these definitions, what is interesting for you etc. own viewpoints .


Marketing as a Business Philosophy

1) 2) 3)

– Give examples of the above (learning diary).


Why is Marketing important ?

What do you think? Why to study Marketing ?


The Objectives of Marketing

1) 2) 3) 4) 5) 6) 7)


How Marketers fullfill the Objectives There are many ways and many tools and methods Like 4 P, Marketing mix etc. ,which are learnt during

the course Marketers must success in pricing, delivery,

promotion, product development, finding out the demand and creating it etc., etc.

Nowadays customers are becoming more and more demanding (empowered customers, consumer movement, boycots etc.) – so marketers must be innovative and able to change. ”Change or die”.


Change of Marketing Traditional view

– Marketing is one function of the company

– The goal is to sell– Specialised

professionals– Product features

are important– Campaigns

Current view– Way to think and do

business– The goal is to create a

profitable customer relationships

– The whole organisation participates

– Continuous function– Customer relationship

marketing– Societal marketing


Eras of Marketing

Production (& product) Prior the 1920s

Sales

Marketing

Relationship

Networks….. now


Eras of Marketing, another set of terms


Marketing Mix 4 P’s + 3

________ ________ ________ ________ Processes (between customer and company

and inside the company) People (personnel) Physical environment / evidence (things that

customer will see)


Fields of Marketing Management Leadership and Management

– Internal marketing Competition

– Marketing research Customer

– Consumer behaviour Production Pricing Distribution Promotion


Important tasks and parts of Marketing

Customer analysis , ___________, estimation of demand, __________, area evaluation etc.

Selling (products, _______, _______, _________, ________, ________, ________ etc.) Note B-to-B and B-to-C aspect.

Product and service planning (_____) Pricing (together with the __________) Distribution (_________)


Marketing , Marketing researchCustomer analysis

Customer ________ Consumer _________ Market ________________ Customer __________ Market ________________


Marketing, Selling

________ ________ ________ ________ Sales force management + training Customer relations Dealer + retailer relations


Marketing, R&D, Product and service planning

______ marketing ______ positioning __________ ________ features, and options ________ style etc. (colors, shapes,

symbols) _________


Marketing, Pricing

D C C S M U W R

Learning diary / discussion

Think about some example company (e.g. a company whose customer you are) , and evaluate what prising methods they are using and why ?



Marketing, DistributionChannel

Warehousing Inventories __________ Coverage ____________ Sales territories Transportation (methods, modes, insurances,

agreed terms e.g. Incoterms etc.)


Marketing, Opportunity analysis

Assessing ________ Assessing ________ Evaluating and estimating _______ _____/ _______ / ________ / analysis


Marketing, Competitor Analysis

Who are the actual competitors ? ___________________ ? Who are our most intense competitors? Less

intense, but still relevant? ____________________ ? Can these competitors be grouped into strategic groups on the basis of

their assets, competencies, strategies etc.? Competitors' ___________________? Competitors SWOT ? Who are the potential new competetive entrants ? What are their

barriers to entry? Is there anything that can be done to discourage them (e.g. standards).

Evaluating the competitors What are their objectives and strategies? Their level of commitment?

_____________ ? Do they have cost advantage or disadvantage ? Their ________ and _________ strategy? Most successful /un-successfull competitors over time and why ? What leverage points ( our weaknesses or customer porblems or unmet needs) could they expoloit ?


Marketing Audit(SWOT)

Are markets ________ _________ ? Is the _______ _________ well among

competitors? What is the ____________? (And the trend in

it?) Are present _________ ___________

reliable and cost effective? Does the firm have an effective ________

and _____________ in general?


Marketing Audit

Does the firm conduct ______________? (What type?)

Does the firm have an _______________, ________ and ________ strategy? What about _______in general ? (_____, ______)

Are product _______ and _______ _______ good?Are firm’s products / ________ _________ appropriately?


Marketing Audit

Are marketing_______ and ________ effective?

Do the firm’s managers have _______ _______ and ______ ?

What about the ___________ systems?

Environment analysis FIVE FORCES Five forces Excersise

Task / Learning diary: Try Five Forces analysis tool to another type of industry, e.g. airplane / travelling industry.



Keep in mind

The purpose of a business is to _____ _________ and to profit from it – so there is only one starting point THE CUSTOMER. The customer ultimately defines the business.

The business will start out with the ______, ______ and _______ of a customer.

And it is not necessary to ________ but to _____ _______.

So, find out who is the customer, where is the customer, what does the customer _____ and _____ ?

And remember the market rarely is where the inventor first thinks it will be.


Fundamental aspects / questions

What is our business (_____, ______, concrete _______) systematic analysis of all existing products, processes, ______, _______, distribution channels, value added, ________, _______ etc. (4 P)– can only be answered by looking at business both from _______ and ______.

Should not only be asked when company is in trouble.

What will our business be _______________? What


Fundamental aspects

Take into account fierce competition and ever rapid changes (product life cycles etc. – shorter life span) in many industries and branches (note on the other hand other possibilities, too).

Need for ever increasing ________ (______ ______ solutions).

Marketing

How to deepen the customer relationships more?


Business Plan

All the objectives (and previously said), must be formalized into a Business Plan !

_________ objective ________ + other resources (physical, human etc.) ________ objective ________ objectives _________ _________ (environmental questions,

ethics etc.) Profit requirement (what ever the profit is – e.g.

NPO’s).


Marketers and ProspectsWho Markets ?

A marketer

, a prospect.


Core consepts

Needs, wants and demands (Maslow’s hierarchy of needs).


Different types of needs

1) (customer wants

2) ( car whose

3) (customer expects

4) (customer would like

5) (customer wants to be


Needs


Different types of demand

Marketers try to influence the level, timing and composition of demand to meet the organization’s objectives. Different demand types require different actions and often medias as well.

1) 2) 3) 4)


Different types of demand

5) 6) 7) 8)

IN EACH CASE MARKETERS MUST IDENTIFY THE UNDERLYING CAUSE(S) OF THE DEMAND !! (WHY)


4 P, Product

What is a product and a service ? – Similarities, differences ? Definitions ?

Note: Marketing of goods, services, places, ideas, people, events, ideology, organizations, cities, countries, NPO’s, projects, processes, information etc. ….


4 P, Product

Product: Service: Product- service combination

(maintenance) Produce-service continuum: device that

helps marketers to visualize the differences and similarities between goods and services


Classifying goods and services of consumer and business markets

Consumer products ,products destined for use by ultimate consumer

Business products : those that contribute directly or indirectly to the output of other products for resale. Also called industrial or organizational products.


Types of Consumer Products

Convenience product:

Shopping product:

Unsought product:


Types of Consumer Products

Specialty product:

GIVE EXAMPLES OF ALL THESE TYPES OF PRODUCTS (learning diary)


Examples of different types of consumer products


4 P, Product

When making product decisions company has to decide:

1)2)3)4)5)6)7)8)


4 P, Product

Product is a bundle of tangible and intangible attributes that a seller offers to a potential buyer and that satisfies the buyer’s needs and wants.

Physical product (core product) Additional elements Service + Maintenance (importance all the time growing) Core product (problem solving elements, core benefits

that consumers are really buying when they obtain the product), actual product (parts, quality level, features, design, brand, packaging etc.), Extended product (additional consumer services and benefits)


4 P, Product


4 P, Product

BOSTON MATRIX is a tool to analyze the product portfolio !!!

Product portfolio – managing products through their life cycles (PLC)


4 P, ProductProduct line decisions


4 P, ProductProduct line strategy


Services


4 P, ProductNPD New Product Development

New product development NPD Stages Relation to the R&D function


4 P, Product

BRAND Branding issues


4 P, Place ; Distribution, Channels

Decisions about: Physical and imaginary channels

1)2)3)4)5)6)7)


4 P, Promotion

Blending together various elements of promotion to communicate most effectively with the target market

Promotional elements include: advertising, sales promotion, public relations, personal selling, direct marketing, product placement, sponsorship decisions, trade fairs, test marketing, on-the-spot marketing, business gifts, viral marketing, buzz marketing, guerilla marketing…..lots of methods and modes…..etc., etc.


4 P, Price

Decisions of methods of setting profitable and justifiable price.

Price



Price; Prisoner’s Dilemma

Intense competitive rivalry can evolve into what is known as prisoner’s dilemma. In such situations, downward price moves by one competitor force “follower moves” by other competitors in order to minimize lost profits. Actually all competitors would be better of if none cut prices to begin with.

Learning Diary / Task

Think about some example company (e.g. a company whose customer you are) , and evaluate what prising methods they are using and why ?



Different types of Market situations, competition climates

Monopoly Monopolistic competition Oligopoly Oligopolistic competition


Markets

Traditionally ”market” was a physical place where buyers and sellers gathered to buy and sell goods.(Market place, square). Economist description : collection of buyers and sellers who transact over a particular product or product class. Modern view : Five basic markets and their connecting flows / interactions.


Markets

Manufacturers go to the ___________ markets (tuotannontekijämarkkinat) (___________, ______, _______markets), buy the resources and turn them into _____ and ________, and then sell the finished products to ________________, who sell them to the _____________. Consumers sell their labor and with that money pay their goods. The ________ collect taxes from both the manufacturers and consumers and uses the money to to provide public services. Each nations economy and global economy consits of these complex interactions through exchange processes.


Markets

On the other hand, marketers often use the term Market to cover various groupings of customers. (Target market). In that view sellers are constituting the industry and the buyers are constituting the markets. E.g. Consumer markets, business markets, global markets, nonprofit and governmental markets.


Markets

Today we can also of course distinguish the __________ and __________ (digital, web etc. possibilities to buy).

Sometimes also the term _________ is used to describe a cluster of complementary products and services etc. that are closely related.


Target market

Group of people toward whom the firm decides to direct its marketing efforts.

Important to know this well when doing the segmentation and positioning.

In a Marketing-Mix, company blends the four strategy elements of marketing decision-making Product, Price, Place, Promotion in a way that satisfies the chosen target markets.


Segmentation and Positioning+ Perceptual Maps


How Business and Marketing is Changing 1) 2) 3) 4) 5) 6) 7) 8) 9)


The Holistic Marketing consept

More complete, cohesive approach that goes beyond traditional applications. Based on development, design and implementation of marketing programs, processes and activieties that recognizes that ”everything matters”. Integrated perspective to the complexive issues. Four components: relationship marketing, internal markeing, integrated marketing and social responsinility marketing.


Four P’s and four C’s

Product, price, place, promotion Customer solution, customer cost,

convenience, communication


Relationship Marketing

Relationship Marketing

Erillinen kalvosetti


Marketing, Competitor Analysis

Who are the actual competitors ? ___________________ ? Who are our most intense competitors? Less

intense, but still relevant? _________________? Can these competitors be grouped into strategic groups on the basis of

their assets, competencies, strategies etc.? Competitors ____________ ___________? Competitors SWOT ? Who are the potential new competetive entrants ? What are their

barriers to entry? Is there anything that can be done to discourage them (e.g. standards).

Evaluating the competitors What are their objectives and strategies? Their level of commitment?

Cost structure ? Do they have cost advantage or disadvantage ? Their image and positioning strategy? Most successful /un-successfull competitors over time and why ? What leverage points ( our weaknesses or customer porblems or unmet needs) could they expoloit ?

basics of marketing student version 2 (1)

Documents

set of terms anne leinovaara

marketing definitions

marketing mix

marketers watchwords

companythe goal

product development

businessthe goal

clever ways