Marketing by IbrahimAhmed9

VIEWS: 62 PAGES: 62

									Marketing Fundamentals
                        Contents

    The importance of marketing
    Marketing research
    The marketing mix-product
    The marketing mix-price
    The marketing mix-promotion
    The marketing mix-place
    Marketing Planning And Strategy

                                   2
YAT Education Centres
 Marketing is the social process by which individuals and
  groups obtain what they need and want through creating
  and exchanging products and value with others. Kotler.

 Marketing is the management process that identifies,
  anticipates and satisfies customer requirements
  profitably. The Chartered Institute of Marketing (CIM).

 The right product, in the right place, at the right time, at
  the right price.



         3
     The Philosophy Marketing and the
            Marketing Concept.

 The marketing concept is a philosophy. It makes the
  customer, and the satisfaction of his or her needs, the
  focal point of all business activities. It is driven by senior
  managers, passionate about delighting their customers.

 This customer focused philosophy is known as the
  'marketing concept'. The marketing concept is a
  philosophy, not a system of marketing or an
  organizational structure. It is founded on the belief that
  profitable sales and satisfactory returns on investment
  can only be achieved by identifying, anticipating and
  satisfying customer needs and desires.

          4
 Remember the important elements
      contained as follows:
 Marketing focuses on the satisfaction of customer needs,
  wants and requirements.
 The philosophy of marketing needs to be owned by
  everyone from within the organization.
 Future needs have to be identified and anticipated.
 There is normally a focus upon profitability, especially in
  the corporate sector. However, as public sector
  organizations and not-for-profit organizations adopt the
  concept of marketing, this need not always be the case.
 More recent definitions recognize the influence of
  marketing upon society.

         5
What is the difference between the main
 marketing responsibilities and the main
 marketing activities???




      6
     Marketing Responsibilities

Marketing is the business function that
 that responsible for business stability and
 business continuity

 Marketing is the business function that
 that responsible for dealing the game with
 the competitors



       7
     Main marketing activities

Marketing research

The marketing mix-product

The marketing mix-price

The marketing mix-promotion

The marketing mix-place
     8
What is the relationship between sales
 and marketing as two different business
 functions??




      9
          Types of products

Goods

Services



What are the differences between goods
 and services???


     10
          Types of markets

Commercial markets (B2B markets)



Consumer markets (B2C markets)




     11
Marketing Research


 12
Introduction to Marketing Research

Market research and marketing
 research are often confused. 'Market'
 research is simply research into a specific
 market. It is a very narrow concept.
 'Marketing' research is much broader. It
 not only includes 'market' research, but
 also areas such as research into new
 products, or modes of distribution such as
 via the Internet

      13
     What is marketing research?

Marketing research is the collection and
 analysis of information about the market
 for a product.




                                      14
  YAT Education Centres
 American Marketing Association
            (AMA)
 "Marketing research is the function that links the
  consumer, customer, and public to the marketer through
  information - information used to identify and define
  marketing opportunities and problems; generate, refine,
  and evaluate marketing actions; monitor marketing
  performance; and improve understanding of marketing
  as a process. Marketing research specifies the
  information required to address these issues, designs
  the methods for collecting information, manages and
  implements the data collection process, analyzes, and
  communicates the findings and their implications."


        15
   Uses of MR undertaken by companies

 To measure market potentials, characteristics of the
  market and market share.
 *To obtain information to make short range and long
  range forecasts.
 *To evaluate new-product opportunities and
  acceptance, and to test existing products relative to
  competitors product.
 *To help companies make better advertising decisions.
    Other applications of MR

*Product optimization or product design
 studies.
*Tracking studies to measure brand
 acceptance or usage.
*Basic marketing strategy studies
*Advertising campaign testing.



                                     17
  Primary Marketing Research

Primary marketing research is collected
 for the first time. It is original and collected
 for a specific purpose, or to solve a
 specific problem. It is expensive, and time
 consuming, but is more focused than
 secondary research.




       18
    Research types (information
            obtained)

Primary research.
 is collection of new information
Include:
 - Interviews

 - questionnaires

 - observation
- - Experiments
- - focus groups

What do we mean by sampling?
What are advantages and disadvantages for
 primary research?
Secondary marketing research

Secondary marketing research, or desk
 research, already exist in one form or
 another. It is relatively cheap, and can be
 conducted quite quickly .




      21
Secondary research – data sources

    Internal Data
1.   Accounting information
2.   Sales information
3.   Backorders
4.   Customer complaints
              External Data
 Created, recorded, or generated by an entity other
  than the researcher’s organization
 Trade associations
 Newspapers and journals
 The Internet
 Vendors
 Government sources
 Media sources
 Commercial sources
     Research the competition


What your resources for this research?
        Planning market research

o   Define the objective of the market research.

o   Select the sources of information and how it will
    be collected.

o   Which group of people will be surveyed.

o The results of market research must be carefully
analyzed and presented clearly

o   Preparing the market research report.
          Research process

 PHASE I: DETERMINATION OF THE INFORMATION
  RESEARCH PROBLEM
 Task Step 1: Determine and Clarify Management’s
  Information Needs
 Task Step 2: Redefine the Decision Problem as a
  Research Problem
 Task Step 3: Establish Research Objectives and
  Determine the Value of the Information
          Research process

 PHASE II: DEVELOPMENT OF THE APPROPRIATE
  RESEARCH DESIGN
 Task Step 4: Determine and Evaluate the Research
  Design and Data Sources
 Task Step 5: Determine the Sample Plan and Sample
  Size
 Task Step 6: Determine the Measurement Issues and
  Scales
PHASE IV: COMMUNICATION OF THE
 RESULTS
Task Step 10: Prepare and Present the
 Final Report to Management




                                  28
  YAT Education Centres
           Marketing Mix

What is the marketing mix?
The marketing mix is probably the most
 famous marketing term. Its elements are
 the basic, tactical components of a
 marketing plan. Also known as the Four
 P's, the marketing mix elements are price,
 place, product, and promotion.



      29
What is product?

What is the difference between product
 features and product benefits?
How is product design ?

- Objective features (specifications-quality)
- Subjective features (taste- color)
Product differentiation

Branding

Packaging




                           31
                  Product Life Cycle




 Time




Development             Introduction   Growth   Maturity   Decline
YAT Education Centres
  The Product Life Cycle (PLC)

Strategies for the differing stages of
 the Product Life Cycle.
Introduction.
The need for immediate profit is not a
 pressure. The product is promoted to
 create awareness. If the product has no or
 few competitors, a skimming price strategy
 is employed. Limited numbers of product
 are available in few channels of
 distribution.
      33
Growth.
Competitors are attracted into the market
 with very similar offerings. Products
 become more profitable and companies
 form alliances, joint ventures and take
 each other over. Advertising spend is high
 and focuses upon building brand. Market
 share tends to stabilise.


      34
Maturity.
Those products that survive the earlier stages
 tend to spend longest in this phase. Sales grow
 at a decreasing rate and then stabilize.
 Producers attempt to differentiate products and
 brands are key to this. Price wars and intense
 competition occur. At this point the market
 reaches saturation. Producers begin to leave the
 market due to poor margins. Promotion
 becomes more widespread and use a greater
 variety of media.
       35
Decline.
At this point there is a downturn in the
 market. For example more innovative
 products are introduced or consumer
 tastes have changed. There is intense
 price-cutting and many more products are
 withdrawn from the market. Profits can be
 improved by reducing marketing spend
 and cost cutting.
      36
 Problems with Product Life Cycle.

In reality very few products follow such a
 prescriptive cycle. The length of each
 stage varies enormously. The decisions of
 marketers can change the stage, for
 example from maturity to decline by price-
 cutting. Not all products go through each
 stage. Some go from introduction to
 decline. It is not easy to tell which stage
 the product is in. Remember that PLC is
 like all other tools. Use it to inform your gut
 feeling.
       37
      Product Portfolio Analysis


The Boston
  Consulting
  Group                      Question
  Approach                   Mark
  “BCG –          Star       “Children”
  Growth-Share
  Matrix”
  Market growth
  against
  Product         Cash Cow   Dogs
  Share
 38
        Marketing mix-price

What is the importance of price?

Factor that determine price

Pricing strategy
What is the importance of price?
What are factors that determine the price?
 - cost.
 - competition
 - demand and supply
 - Financial cost and opportunity cost.
What do we mean by equilibrium point or
 market price?
          Pricing strategies

Competition pricing

Cost-plus pricing

Market penetration pricing
         Pricing strategies

Market skimming

Promotional prices

Loss leaders
      The marketing mix-place

Place
Channels of distribution
      The marketing mix-place

Place involves the actual place and the
 channels of distribution.
 The marketing mix-promotion




What is the promotion?
          Promotional mix

Advertising

Sales promotion

Personal selling

Public relation (PR)

Direct (sales) marketing
            Advertising

Television (TV)

Radio

Newspapers and magazines

Posters
                ADVERTISING
 Advertising is a form of communication whose purpose
  is to inform potential customers about products and
  services and how to obtain and use them


 advertisements often contain both factual information
  and persuasive messages
          Sales promotion

Reductions.

Special offers

Gifts.

Free sample
          Sales promotion

Point of sale

Competition
      Direct (sales) marketing




Brochures and catalogue

Internet
          Personal selling

Face to face or by phone

Products that need to be marketed by
 personal selling.
         Public relation (PR)

Conscious effort to improve and maintain
 organization’s relationships with
 employees, customer, shareholders, and
 trade unions. And also contribute in
 building corporate image.
A Japanese proverb says:



“Vision without action is a daydream. Action
 without vision is a nightmare.”
            Situational analysis

. Here the company examines the macro forces
   (economic, political-legal, social-cultural,
   technological). The company carries out a SWOT
   analysis (strengths, weaknesses, opportunities, and
   threats). But it should really be called a TOWS
   analysis (threats, opportunities, weaknesses, and
   strengths) because
the ordering should be from the outside in rather than the
            Marketing plan

A marketing plan is a statement of the
 actions a business will take in order to
 achieve its marketing objective.


  The Marketing planning process

The process of analyzing marketing
 opportunities, selecting target markets,
 develop appropriate marketing mix and
 putting in measures to control the process
  The Marketing planning process

Questions to be asked before:
1- Where the business now?

2- where does the business want to be ?

3- how will it get there?
  The Marketing planning process

1- define objective
2- analyze external and internal influences
3- set targets
4- plan activities
5- implement plans
6- monitor and review outcomes
       Analyzing the business

External issues

Internal issues
         Internal issues

SWOT analysis



    Strengths         Weaknesses



     Opportunities
                      Threats

								
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