Marketing
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What is marketing? ď‚—
According to the social definition, marketing is societal process by which individuals or groups obtain what they need and want through creating, offering, exchanging products and services of value freely with others.
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The American Marketing Association offers managerial definition: Marketing (management) is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. 3
The Scope of Marketing Marketing people are involved in marketing 10 types of entities: goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
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Marketing network A marketing network consists of the company and its supporting stakeholders— customers, employees, suppliers, distributors, retailers, ad agencies, university scientists, and others—with whom it has built mutually profitable business relationships. The operating principle is simple: build an effective network of relationships with key stakeholders, and profits will follow. 5
Marketplace ď‚—
The marketplace is physical, such as a store you shop in; marketspace is digital, as when you shop on the Internet.
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Market ď‚—
Market is condition permits buyers and sellers work together.
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Market research Secondary data ď‚— Primary data ď‚—
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Core Marketing Concepts Needs, Wants, and Demands Market Segmentation Brands and Trademarks Value and Satisfaction Marketing Channels
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Needs, Wants, and Demands Needs are the basic human requirements. People need air, food, water, clothing, and shelter to survive. People also have strong needs for recreation, education, and entertainment. ď‚— These needs become wants when they are directed to specific objects that might satisfy the need. ď‚—
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Example ď‚—
A consumer in the United States needs food but may want a hamburger, french fries, and a soft drink. A person in Mauritius needs food but may want a mango, rice, lentils, and beans. Wants are shaped by our society.
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Demand ď‚—
Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are willing and able to buy one. Companies must measure not only how many people want their product, but also how many would actually be willing and able to buy it.
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Markets Segmentation Who is the target market for a product? - Industrial product (B2B) - Consumer product (B2C) - Public goods (B2G) ď‚—
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4 basic methods for segmenting a market
Product –related: comfort, safety, luxury, good value-for-money, convenience, durability, etc. Demographic: age, gender, education, family life cycle, income, education, etc. Psychographic: attitudes, lifestyle, opinions, values, self-image, etc. Geographical: region, postcode, etc.
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Example ď‚—
For example, Volvo develops its cars for buyers to whom safety is a major concern. Volvo, therefore, positions its car as the safest a customer can buy. Companies do best when they choose their target market(s) carefully and prepare tailored marketing programs.
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Brands and Trademark Brand: a name, symbol or design (or some combination) that identify a product Trademark: a name or symbol that cannot be used by another producer Band loyalty passes through three stages: 1. Brand awareness 2. Brand reference 3. Brand insistence
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Value and Satisfaction
Value reflects the sum of the perceived tangible and intangible benefits and costs to customers. It’s primarily a combination of quality, service, and price (“qsp”), called the “customer value triad.” Satisfaction reflects a person’s judgments of a product’s perceived performance in relationship to expectations. If the performance falls short of expectations, the customer is dissatisfied and disappointed. If it matches expectations, the customer is satisfied. If it exceeds them, the customer is delighted. 17
Marketing Channels ď‚—
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Communication channels deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs Distribution channels to display, sell, or deliver the physical products or service(s) to the buyer or user. They include distributors, wholesalers, retailers, and agents. Service channels to carry out transactions with potential buyers. Service channels include warehouses, transportation companies, banks, and insurance companies that facilitate transactions.. 18
Marketing strategy Analysis of the wider business environment. More specifically: the political/legal, economic, social/cultural, and technological factors operating in the external world. (PEST) Identification and analysis of target markets for new products. Sales goals in term of volume and revenue The marketing budget Elements of the marketing mix and timing
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Marketing Mix ď‚—
Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. It is classified these tools into four broad groups that he called the four Ps of marketing: product, price, place, and promotion.
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Marketing Mix Product
Price
Promotion
Place
Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns
List price Discounts Allowances Payment period Credit terms
Sales promotion Advertising Sales force Public relations Direct marketing
Channels Coverage Assortments Locations Inventory Transport
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Four Ps and Four Cs Four Ps Product Price Place Promotion
Four Cs Customer solution Customer cost Convenience Communication
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6 Ps Product Price Place Promotion Packaging People
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Total product offer Value –for-money: relationship between quality and price Brand name and image Packaging Convenience of sales channel Store surroundings Service Speed of delivery Guarantee
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