Introduction Problem Solving to marketing concepts 1
What you’ll learn. . . What is marketing? Marketing What does it involve? What is the marketing mix? 2
About Marketing 3
Marketing in the 21 century WHY 4
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) 5
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. 6
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 7
Why is it needed? • Each year millions of new products are launched: Without careful marketing these products would fail 8
“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 9
Needs Eat, Dress, Move Wants Cheeseburger, Tuxedo, Car Marketer 10
This Is Demand Wants Buying Power “Demand” 11
First Task: Detect Needs 12
Marketing’s first task: discovering consumer needs Organization’s marketing focus Discover consumer needs Information about needs Potential consumers: The market 13
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. 14
Marketing’s Second Task: Satisfying Consumer Needs Organization’s marketing focus 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 15
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 programme 16
Customer Development Suspects First-time Repeat Prospects customers Disqualified prospects Clients Advocates Partners Inactive or ex-customers 17
Marketing Vs Sales Is there a difference? 18
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 19
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 any thing that engages you with the prospect or customer on a personal level rather than at a distance 20
The Major Role of Marketing and Selling People DO NOT buy products people buy 21
Marketing Management 22
Building Customer Relationships 23
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. 24
How Marketing became so important? 25
Four different orientations in the history of business Production era Sales era Marketing concept era Societal. Marketing era 1860 1880 190019201940 196019802000 26
The Marketing Mix The marketing mix is the combination of variables that a business uses to carry out its marketing strategy and meet customer needs. The marketing mix is often called the 4 Ps: • Product • Price • Place 27 • Promotion
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 28
The Marketing Mix 29
Product 30
Product • Product’ refers to the functions and features • • • of a good or service Should satisfy the needs of the customer May have a Unique Selling Proposition (USP) ‘Product’ also includes a range of factors such as packaging, quality, warranties, after-sales service and branding 31
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. 32
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 33
The Product Life Cycle • The product lifecycle looks at the sales of a product over time 34
Stages in the Product Lifecycle Development – high costs but no sales Launch – high expenditure on promotion and product development, low sales Growth – sales increase and product should break -even Maturity – sales stabilise, less expenditure on promotion needed, revenue & profit should be high Decline – sales decline, extension strategies can be adopted or the product withdrawn 35
Extension Strategies Extension strategies should maintain or increase sales. They include: • Modifying the product • Reducing the price • Adding a feature • Promoting to a different market sector 36
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 37
Price 38
Price The price of a product will depend on: • The cost to make it • The amount of profit desired • Other objectives of the business • The price competitors charge • The price customers are willing to pay – Is there a high demand? – Is demand sensitive to changes in price? 39
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. 40
Price Leader/Taker Price leader – businesses that dominate the market can often dictate the price charged for a product. Other businesses follow this lead Price taker – businesses have to charge the market price. This is often the case where there are many small firms competing against each other 41
Pricing Strategies & Tactics • Skimming • Launching with a high price when there is little competition, then reducing the price later. Often used with technology. • Penetration • Low price charged initially to penetrate the market and build brand loyalty; prrice is then increased e. g. introductory offers on magazines. 42
Pricing Strategies & Tactics • Competitive • A similar price is charged to that of competitors’ products. • Loss leader • Products may be sold at a price lower than the cost to produce it. Often used by supermarkets to encourage people into the store where it is hoped they will buy other products. 43
Pricing Strategies & Tactics • Psychological • A price is set which customers perceive as lower than it is e. g. € 39. 99 instead of € 40 44
Price • Pricing Strategy • Importance of: – – – knowing the market elasticity keeping an eye on rivals Image copyright: www. freeimages. co. uk 45
Promotion 46
Promotion • Strategies • to make the consumer aware of the existence of a product or service NOT just advertising 47
Promotion The aims of promotion are to: • Raise awareness • Encourage sales • Create or change a brand image • Maintain market share • Increase market share 48
49
Promotion Above-the-line promotion This uses advertising media over which a firm has no direct control e. g. television, radio and newspapers Below-the-line promotion This uses promotional media which the firm can control e. g. direct mail, sales promotions and sponsorship 50
The promotional message should Grab Attention Stimulate Create Interest Desire Promote Action 51
Promotional Activities • Advertising e. g. TV, billboards and internet. • Sales promotions e. g. Loyalty cards, BOGOF, discounts & free gifts • Sponsorship – a business pays to be associated with another firm, event or cause 52
Promotional Activities • Direct mailing – promotional material is sent to potential customers by post/email • Public relations – building the relationship between the firm and the public by enhancing its reputation 53
Promotional Mix Most businesses use a combination of different promotional activities. The chosen promotional mix will depend on: • Cost • Target market • Product • Competitors 54
Place 55
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? ) 56
Place • Products should be conveniently available for customers to buy • ‘Places’ include: • Stores • Mail order • Telesales • Internet - The use of e-commerce (promoting and selling on the internet) has grown massively over recent years 57
58
Jobber • One that buys merchandise from manufacturers and sells it to retailers 59
People 60
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? 61
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? 62
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? 63
Process 64
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 65
Physical Environment 66
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. . . 67
68
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? 69
Stages in Consumer Decision Word. Process of- Mouth Awareness Advertising Interest Channel Decision Product / Service Action Price Satisfaction 70
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 71
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 72
Marketing Management Philosophies Production Sales Competing Philosophies Market Societal Marketing 73
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 74
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 75
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 76
Developing Competitive Advantage Customer Value Customer Satisfaction Customer Relationships 77
Evolving Marketing Mix • The marketing mix will evolve over time • The product portfolio may grow as a business becomes more established • More expensive promotional activities may be adopted as a firm’s revenue increases • More outlets may be opened, or products sold via the internet • Price may change as demand changes 78
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. 79
Why Do So Many Products Fail? 80
Скачать презентацию Introduction Problem Solving to marketing concepts 1
07fae32e1c8833725cb537d655d9762f.ppt