MARKETING
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Marketing
Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
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Marketing
Marketing practice tends to be seen as a creative industry, which includes advertising, distribution and selling.
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Marketing
Marketing is influenced by many of the social sciences, particularly psychology, sociology, and economics.
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Marketing is a complete process within the business which includes: -Finding out what the customer wants – this is called market research and involves finding out what types of products are wanted (product policy) and what prices consumers are prepared to pay. -Helping to produce the right product at the right price. -Persuading customers to buy it – by means of advertising and packaging. -Getting the product to the customer in the most convenient and efficient way – distribution.
Market research
Marketing
Marketing Mix contained 4 elements: product, price, place, and promotion.
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Marketing
Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. -It involves decisions about the product’s quality, its style and design, the branding policy (what to call it and how to ensure that customers recognise the ‘brand name’), how to package it, and what guarantees to offer.
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Marketing
Price: This refers to the process of setting a price for a product, including discounts.
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Marketing
Place: This refers to the channel by which a product or service is sold.
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Marketing
Promotion: This includes advertising, sales promotion, publicity, and personal selling. Branding refers to the various methods of promoting the product, brand, or company.
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Marketing
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Marketing- product Product policy in marketing involves:
-Finding out what people want in a particular product and what they use it for. -Deciding what the product should look like: this involves making sure that the design is not only up-to-date but that it is suitable for people to use. -Making sure that the price is right for the people who the company thinks will be likely to buy the product. -Getting the ‘slot’ in the market right with regard to other factors such as status. 13
Marketing- product Product life cycle
Almost all products have a lifetime during which they are used. -Firstly, the product will be very new to the market and only a few people will know about it. -After a while the product will become widely known and, its producers hope, popular. At the end of a product’s life it will become less popular and will be replaced by other newer products. 14
Marketing- product The product variation is a change of the
product properties in timing, i.e. an "old" product is changed and replaced by a new.
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Marketing- product Product differentiation (also known
simply as "differentiation") is the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as ones own product offerings.
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Marketing-product Product innovation involves the
introduction of a good or service that is new or substantially improved. This includes, but is not limited to, improvements in functional characteristics, technical abilities, or ease of use.
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Marketing-product Product elimination: The removal of
products from the PRODUCT PORTFOLIO once they have reached the decline stage of the life cycle. Usually the choice rests between immediate withdrawal and phasing it out slowly.
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Marketing-product Product elimination: The removal of
products from the PRODUCT PORTFOLIO once they have reached the decline stage of the life cycle. Usually the choice rests between immediate withdrawal and phasing it out slowly.
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Marketing-product A durable good or a hard good is a good
which does not quickly wear out, or more specifically, it yields services or utility over time rather than being completely used up when used once.
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Marketing-product Perishable goods: the goods that can not
last for a long time without going to be bad or decay.
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Marketing-product Convenience goods: Widely distributed
and relatively inexpensive goods which are purchased frequently and with minimum of effort, such as gasoline (petrol), newspapers, and most grocery items.
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Marketing-product Specialty good: Item that is extraordinary
or unique enough to motivate people to make an unusual effort to get it.
Examples are designer clothes, exotic
perfumes, limited-edition cars, stunning designs, works of famous painters.
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Marketing-price Cost recovery pricing: setting the price to
cover costs.
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Costs Direct costs are costs to make the product including
such things as raw materials, pay and energy (these can also be called Variable Costs). The direct costs increase as the amount produced increases and decrease as the amount decreases. Indirect costs (or fixed costs or overheads) are costs to provide the firm in which the product is to be made or, simply, for the firm to remain in existence. Indirect costs consist of rent for offices and factories, management salaries, and administrative costs. They are usually the same however many units of the product are made.
Marketing-price Penetration pricing is the pricing
technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. The strategy works on the expectation that customers will switch to the new brand because of the lower price.
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Marketing-price Price skimming is a pricing strategy in
which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.
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Marketing-place Distribution channel: Path or 'pipeline'
through which goods and services flow in one direction (from vendor to the consumer). A distribution channel can be as short as being direct from the vendor to the consumer or may include several inter-connected intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Also called channel of distribution or marketing channel. 28
Marketing-place Direct Sales: a retail channel for the
distribution of goods and services.
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Marketing-place Indirect sales through partners, is a
strategic possibility for growth and incremental sales for vendors. Though invaluable, no direct sales force, can hope to achieve the same coverage and breadth of expertise as an effective channel partner network. For sustainable growth, vendors and distributors are looking beyond their internal resources to extend their sales opportunities with the right partners. 30
Marketing-promotion Promotion involves disseminating information
about a product, product line, brand, or company. Promotion is generally sub-divided into two parts: Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet and Mobile Phones in which the advertiser pays an advertising agency to place the ad Below the line promotion: Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows. 31
Marketing-promotion Promotional mix: 1 Advertising- Any paid presentation and
promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails.
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Marketing-promotion Promotional mix: 2 Personal Selling - A process of helping
and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-toface or via telephone. 33
Marketing-promotion Promotional mix: 3 Promotions- Incentives designed to
stimulate the purchase or sale of a product, usually in the short term. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, selfliquidating premiums, trade shows, trade-ins, and exhibitions.
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Marketing-promotion Promotional mix: 4 Public relations - Paid intimate
stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars. 35
Marketing
AIDA 2. USP 3. DAGMAR 4. Symbolic pricing 5. Benefit claim 6. Pioneering advertising 7. Competitive advertising 8. Retention advertising 1.
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Marketing
9. MIS. 10.Contest 11. Refund 12. Premium 13. Price-off 14. Coupon
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