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					 Marketing your
product or service
      Definitions of marketing
             Adam Smith (1776)

“Consumption is the sole end and purpose of
all production and the interests of the product
ought to be attended to only so far as it may
be necessary for promoting those of the
customer.”
      Definitions of marketing
                Kotler (1991)

“Marketing is a social and managerial process
by which individuals and groups obtain what
they want and need through creating, offering
and exchanging products of value with
others.”
      Definitions of marketing
   British Chartered Institute of Marketing

“Marketing is the management process
responsible for identifying, anticipating and
satisfying customers‟ requirements
profitably.”
                 Marketing
•   Marketing is a management process
•   Marketing is about giving someone what they
    want
•   Marketing is identifying and anticipating
    customer requirements
•   Marketing fulfils customer requirements
    efficiently and profitably
•   Marketing offers and exchanged ideas, goods
    and services
    Marketing is a management process
•    planning                •   appropriate skills
•    analysis                •   physical resources
•    resource allocation     •   implementation
•    control                 •   evaluation
•    investment of finance   •   measurement
     and resources
 Marketing is about giving someone
          what they want

All activities should be directed towards this
aim. It implies a direct customer, or end
consumer, focus. It also implies some
knowledge of customer wants.
  The exchange process

           Something of value
                Goods,
           Services, benefits

Supplier                          Customer

                    Money,
                exchange goods

             Something of value
                   Examples of exchanges

Supplier                 The trade                        Customer
MacDonalds               Cash                             The individual
                         for food
Private Hospital         Insurance premiums               Patient
                         for Medical treatment
University               Fees                             Student
                         for education
Non-profit Youth group   Time                             Volunteer
                         for sense of community service
Political party          Vote                             Voter
                         for sense of progress?
Public library           Taxes                            Reader
                         for books to read
The concept to customer process
           Gather customer, competitor and
          business environment information




         Define the requirement specification




            Develop the product or service




              Manufacture the product




         Advertising               Selling
                Key questions
•   Who is/are your customers?
•   Why will they buy your product/service?
•   What are the key attributes they are buying?
•   How will they make their purchases?
•   When are they likely to make their purchases?
•   Where will they want to make their purchases?
•   What are your USP‟s?
      Market segmentation
“We will market our product to the general
        public” is a bold statement.

 It is a very general statement and may be
             impossible to achieve.
        Market segmentation
Segmentation can be defined as:

“the selection from all possible potential
customers of all possible customers who are
most likely to need and want to buy the
product or service”
Traditional approaches to market
          segmentation
  Price           Sex           Work pattern



Geography   Culture / ethics   Family structure


            Socio-economic
 Income                           Mobility
                 grouping


  Age        Marital status       Lifestyle
Socio-economic grouping system
Designator         Class                         Examples

A            Upper middle         High managerial, admin, professional
                                     workers.       Company directors,
                                     established doctors or solicitors.
B            Middle               Intermediate managers,       admin    or
                                      professional
C1           Lower middle         Supervisory, clerical, junior managerial
C2           Skilled working      Skilled manual
D            Working              Semi-skilled or unskilled
E            Pensioners, casual
                workers and
                others
    Requirements of a usable segment

•   Definable
•   Sizeable
•   Reachable
•   Relevant
            Demographic segmentation
                  Illustration
Age               Under 6, 6-11, 12-19, 20-34, 50-64, 65+
Sex               Male, female
Family size       1-2, 3-4, 5+
Family        life Young & single, young & married with no children, young married
   cycle              with youngest child under 6, and so on
Income            Under minimum wage, minimum wage, under £10,000, £10-15,000,
                     and so on
Occupation        Professional and technical; managers; officials; sales; crafts; farmers;
                     lawyers; and so on
Education         Secondary; GCSE; Graduate; Postgraduate
Religion          Church of England; Catholic; Protestant; Jewish; Hindu; and so on

Race              White; Black; Oriental; and so on
Nationality       British; American; French; German; and so on
 Lifestyle segmentation examples
Activities        Interests      Opinions on or about
Work              Family         Themselves
Hobbies           House          Social issues
Social events     Job            Politics
Vacation          Community      Business
Entertainment     Recreation     Economics
Club membership   Fashion        Education
Community         Food           Products
Shopping          Media          Future
Sports            Achievements   Culture
           Target marketing
1. Select the market segment
2. Identify the key attributes of customers in
   that segment towards the product or
   service
3. Optimise the product or service for these
   attributes
       Using target marketing for
        competitive advantage
There are five steps to gaining competitive advantage:
1. Who are our existing customers?
2. What are their current and future needs?
3. How do they judge value?
4. When and where can these customers be reached?
5. How can we do this better than our competition?
          Key questions – 1
• How can you segment your market?
• How might you market your product/service
  to your chosen customers?
• What advertising channels might you use to
  reach your customers?
• Will you sell direct or via a distributor?
• How will you deal with payments?
          Key questions – 2
• What advertising materials will you need?
• Who will produce the advertising material?
• How much will the advertising materials
  cost?
         Sales forecasting – 1
1. How many companies or householders use the
   product/service you are going to offer?
2. Where do they currently get their
   product/service from?
3. What is the total amount spent on your
   product/service currently provided by the
   competition, per year or per month?
4. What geographic area is currently covered by
   the competition?
            Sales forecasting – 2
5.   Does the product/service have any seasonal variation in
     demand?
6.   If you plan to entice customers away from your
     competition, what will you do to achieve this? What
     response do you expect from your competition to your
     actions?
7.   How do you plan to gain information about your
     competition and customer needs?
8.   What „downtime‟ needs to be factored into your
     calculations, i.e. market research, product development,
     travel, prospecting, etc.? These are all the activities for
     which customers generally do not pay.

				
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posted:10/27/2011
language:English
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