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Introduction Problem Solving to marketing concepts Introduction Problem Solving to marketing concepts

Rules of the Game Take notes Keep your time Workshop Rules Stay involved Turn Rules of the Game Take notes Keep your time Workshop Rules Stay involved Turn off your mobile phone

Learning methods Learning methods

Lets’ communicate and get Your Expectations Lets’ communicate and get Your Expectations

What you’ll learn. . . What is marketing? Marketing What does it involve? What What you’ll learn. . . What is marketing? Marketing What does it involve? What is the marketing mix?

Module 1 About Marketing Module 1 About Marketing

Marketing in the 21 century WHY Marketing in the 21 century WHY

What is marketing? • Marketing… – is not ADVERTISING – is not SELLING – What is marketing? • Marketing… – is not ADVERTISING – is not SELLING – is not PROMOTION • “The aim of marketing is to make selling unnecessary. ” Peter Drucker (1973)

What is marketing? • Businesses need to sell products if they are to achieve What is marketing? • Businesses need to sell products if they are to achieve their objectives. • Marketing is about ensuring that businesses can sell as many products as possible in order to make profits.

What does it involve? • Marketing is a very complex concept. • It involves: What does it involve? • Marketing is a very complex concept. • It involves: – Research – Product design – Setting prices – Making sure the customer knows about products – Choosing how and where to sell products

Why is it needed? • Each year millions of new products are launched: Without Why is it needed? • Each year millions of new products are launched: Without careful marketing these products would fail

“Marketing is the science and art of exploring, creating and delivering value to satisfy “Marketing is the science and art of exploring, creating and delivering value to satisfy the needs and wants of a target market maintaining loyalty at a profit. ” Professor Philip Kotler

Needs Eat, Dress, Move Wants Cheeseburger, Tuxedo, Car Marketer Needs Eat, Dress, Move Wants Cheeseburger, Tuxedo, Car Marketer

This Is Demand Wants Buying Power “Demand” This Is Demand Wants Buying Power “Demand”

First Task: Detect Needs First Task: Detect Needs

Marketing’s first task: discovering consumer needs Organization’s marketing department Discover consumer needs Information about Marketing’s first task: discovering consumer needs Organization’s marketing department Discover consumer needs Information about needs Potential consumers: The market

What is a Market? Potential consumers make up a market, which is: 1. People What is a Market? Potential consumers make up a market, which is: 1. People 2. with the Desire and 3. with the Ability to Buy a specific product.

Marketing’s Second Task: Satisfying Consumer Needs Organization’s marketing department Concepts for products Discover consumer Marketing’s Second Task: Satisfying Consumer Needs Organization’s marketing department Concepts for products Discover consumer needs Information about needs Satisfy consumer needs Find the right combination of: • Product • Price • Promotion • Place Goods, services, ideas Potential consumers: The market

The Target Market Because the organization obviously can’t satisfy all consumer needs, it must The Target Market Because the organization obviously can’t satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers. This is the target market -- one or more specific groups of potential consumers toward which an organization directs its marketing program.

Customer Development Suspects First-time Repeat Prospects customers Disqualified prospects Clients Advocates Partners Inactive or Customer Development Suspects First-time Repeat Prospects customers Disqualified prospects Clients Advocates Partners Inactive or ex-customers

Marketing Vs Sales Is there a difference? Marketing Vs Sales Is there a difference?

The Marketing concept Organizations must concentrate on the customer and not the product or The Marketing concept Organizations must concentrate on the customer and not the product or the company. Organizations should revolve round the customer and not the other way around. The purpose of a business is to create and keep a customer

The selling concept Focuses on matching your product or service features and benefits in The selling concept Focuses on matching your product or service features and benefits in a way that suits the prospect. sales process is any thing that you do to close the sale and get signed agreement or contract. It is ant thing that engages you with the prospect or customer on a personal level rather than at a distance.

The major role of marketing and selling People DO NOT buy products people buy The major role of marketing and selling People DO NOT buy products people buy

Module 2 Marketing Management Module 2 Marketing Management

Building Customer Relationships Building Customer Relationships

Relationship Marketing Relationship marketing is linking the organization to its individual customers, employees, suppliers, Relationship Marketing Relationship marketing is linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. Mutual long-term benefits between the organization and its customers require links to other vital stakeholders-- including suppliers, employees, and “partners” such as wholesalers or retailers in a manufacturer’s channel of distribution.

How Marketing became so important? How Marketing became so important?

Four different orientations in the history of North American business Production era Sales era Four different orientations in the history of North American business Production era Sales era Marketing concept era Societal. Marketing era 18601880 190019201940 196019802000

The Marketing Mix • The tools available to a business to gain the • The Marketing Mix • The tools available to a business to gain the • • reaction it is seeking from its target market in relation to its marketing objectives 7 Ps – Price, Product, Promotion, Place, People, Process, Physical Environment Traditional 4 Ps extended to cope with today's changing environment

The Marketing Mix The Marketing Mix

Product Product

Product • The firm must come up with a product or service that people Product • The firm must come up with a product or service that people will want to buy. • It must fulfil some need or want. • It must be (or at least seem) unique.

Product • Methods used to improve/differentiate the product and increase sales or target sales Product • Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e. g. – Extension strategies – Specialised versions – New editions – Improvements – real or otherwise! – Changed packaging – Technology, etc. Image copyright: www. freeimages. co. uk

Activity 1 Product • Methods used to improve/differentiate the product and increase sales or Activity 1 Product • Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e. g. – Extension strategies – Specialised versions – New editions – Improvements – real or otherwise! – Changed packaging – Technology, etc. Image copyright: www. freeimages. co. uk

Product or service or brand BMW Core Product Freedom to travel Actual Product Egypt Product or service or brand BMW Core Product Freedom to travel Actual Product Egypt Air Flight Zamalek Football Club A motor car Rooms Sheraton Room service Excitement and leisure ALICO UNIONAIR Augmented Product An airline journey T-shirts – photos with players Insurance policy Cooling Finance Warranty

Price Price

Price • The price must be one that • • • Pricing Strategy - Price • The price must be one that • • • Pricing Strategy - International – Comparative – Cost plus the customer thinks is good value for money. This is not the same as being cheap! Prices have a great psychological effect on customers.

Price • Pricing Strategy • Importance of: – – – Image copyright: www. freeimages. Price • Pricing Strategy • Importance of: – – – Image copyright: www. freeimages. co. uk knowing the market elasticity keeping an eye on rivals

Promotion Promotion

Promotion • Strategies • to make the consumer aware of the existence of a Promotion • Strategies • to make the consumer aware of the existence of a product or service NOT just advertising

The promotional message should Grab Attention Stimulate Create Interest Desire Promote Action The promotional message should Grab Attention Stimulate Create Interest Desire Promote Action

Place Place

Place • The means by which products and services get from producer to consumer Place • The means by which products and services get from producer to consumer and where they can be accessed by the consumer – The more places to buy the product and the easier it is made to buy it, the better for the business (and the consumer? )

People People

People • People represent the business – The image they present can be important People • People represent the business – The image they present can be important – First contact often human – what is the lasting image they provide to the customer? – Extent of training and knowledge of the product/service concerned – Do staff represent the desired culture of the business?

People • People represent the business – The image they present can be important People • People represent the business – The image they present can be important – First contact often human – what is the lasting image they provide to the customer? – Extent of training and knowledge of the product/service concerned – Mission statement – how relevant? – Do staff represent the desired culture of the business?

People • People represent the business – The image they present can be important People • People represent the business – The image they present can be important – First contact often human – what is the lasting image they provide to the customer? – Extent of training and knowledge of the product/service concerned – Mission statement – how relevant? – Do staff represent the desired culture of the business?

Process Process

Process • How do people consume services? • What processes do they have to Process • How do people consume services? • What processes do they have to go through • to acquire the services? Where do they find the availability of the service? – – – Contact Reminders Registration Subscription Form filling Degree of technology

Physical Environment Physical Environment

Physical Environment • • • The ambience, mood or physical presentation of the environment Physical Environment • • • The ambience, mood or physical presentation of the environment Packaging. Internet/web pages. Paperwork (such as invoices, tickets, …. . ). Brochures. Furnishings. Uniforms. Business cards. The building itself (such as prestigious offices or scenic headquarters). Mailboxes and many others. . .

Physical Environment • The ambience, mood or physical presentation of the environment – – Physical Environment • The ambience, mood or physical presentation of the environment – – – – Smart/shabby? Trendy/retro/modern/old fashioned? Light/dark/bright/subdued? Romantic/chic/loud? Clean/dirty/unkempt/neat? Music? Smell?

Stages in Consumer Decision Word. Process of- Mouth Awareness Advertising Interest Channel Decision Product Stages in Consumer Decision Word. Process of- Mouth Awareness Advertising Interest Channel Decision Product / Service Action Price Satisfaction

The Marketing Mix • • • Blend of the mix depends upon: Marketing objectives The Marketing Mix • • • Blend of the mix depends upon: Marketing objectives Type of product Target market Market structure Rivals’ behaviour Global issues – culture/religion, etc. Marketing position Product portfolio – Product lifecycle – Boston Matrix

Marketing Model Target Market Aware Intention to Purchase Understand Above the Line Want Below Marketing Model Target Market Aware Intention to Purchase Understand Above the Line Want Below the Line Co st Believe Find Point of Purchase Experience Behavior Buy Revenue Use Value Prefe r Loyal

Module 3 Marketing Management Philosophies Production Sales Competing Philosophies Market Societal Marketing Module 3 Marketing Management Philosophies Production Sales Competing Philosophies Market Societal Marketing

Marketing Management Philosophies Philosophy • Production Sales Market Societal Key Ideas Focus on efficiency Marketing Management Philosophies Philosophy • Production Sales Market Societal Key Ideas Focus on efficiency of internal operations Focus on aggressive techniques for overcoming customer resistance Focus on satisfying customer needs and wants while enhancing individual and societal well-being

The Marketing Concept Focus on Customer Wants and Needs Integrate Organization’s Activities to Satisfy The Marketing Concept Focus on Customer Wants and Needs Integrate Organization’s Activities to Satisfy Customer Needs and Wants Achieve Organization’s Long Term Goals by Satisfying Customer Wants and Needs

Comparing Sales and Market Orientations Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Comparing Sales and Market Orientations Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Market Orientation Selling goods Everybody Maximum Primarily promotion and services sales volume Outward Sales Orientation Inward Satisfying wants and needs Specific groups of Customer satisfaction people Coordinated use of all marketing activities

Developing Competitive Advantage Customer Value Customer Satisfaction Customer Relationships Developing Competitive Advantage Customer Value Customer Satisfaction Customer Relationships

Value and Satisfaction Expectation 8 Performance 10 Expectation Performance 10 8 If performance is Value and Satisfaction Expectation 8 Performance 10 Expectation Performance 10 8 If performance is lower than expectations, satisfaction is low. If performance is higher than expectations, satisfaction is high.

Why so many products fail in Egypt? Why so many products fail in Egypt?