Problem Solving Introduction to marketing concepts

Introduction
ProblemtoSolving
marketing
concepts
Rules of the Game
Take
notes
Keep your time
Workshop Rules
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involve
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Learning methods
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Your Expectations
What you’ll learn...
What is
marketing?
Marketing
What does it
involve?
What is the
marketing mix?
Module 1
About
Marketing
Marketing in the 21
century
WHY
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)
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.
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 products
Why is it needed?
• Each year millions of new products are
launched:
Without careful
marketing these
products would
fail
“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
Needs
Eat, Dress, Move
Wants
Cheeseburger, Tuxedo, Car
Marketer
This Is Demand
Wants
Buying Power
“Demand”
First Task: Detect Needs
Marketing’s first task: discovering consumer needs
Organization’s
marketing department
Discover consumer needs
Information about needs
Potential consumers: The market
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.
Marketing’s Second Task: Satisfying Consumer
Needs
Organization’s marketing department
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
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 program.
Customer Development
Suspects
First-time
Repeat
Prospects customers customers
Disqualified
prospects
Clients Advocates Partners
Inactive or
ex-customers
Marketing Vs Sales
Is there a
difference?
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
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 ant thing that engages you with the prospect or
customer on a personal level rather than at a distance.
The major role of marketing
and selling
People DO NOT buy products
people buy
Module 2
Marketing
Management
Building Customer
Relationships
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.
How Marketing became so
important?
Four different orientations in the history of North American
business
Production era
Sales era
Marketing concept era
SocietalMarketing era
18601880 190019201940 196019802000
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
7Ps – Price, Product, Promotion, Place, People,
Process, Physical Environment
Traditional 4Ps extended to cope with today's
changing environment
The Marketing Mix
Product
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.
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.
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Activity 1
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
Product or service or brand
BMW
Core Product
Freedom to travel
Sheraton
Flight
Zamalek Football Club
Excitement and
leisure
ALICO
Room service
An airline journey
T-shirts – photos
with players
Insurance policy
Cooling
Augmented
Product
A motor car
Rooms
Egypt Air
UNIONAIR
Actual Product
Finance
Warranty
Price
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.
Price
• Pricing Strategy
• Importance of:
– knowing the market
– elasticity
– keeping an eye
on rivals
Image copyright: www.freeimages.co.uk
Promotion
Promotion
• Strategies
•
to make the
consumer aware of
the existence of a
product
or service
NOT just advertising
The promotional message should
Grab
Attention
Stimulate
Create
Interest
Desire
Promote
Action
Place
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?)
People
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?
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?
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?
Process
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
Physical Environment
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 . . . . . .
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?
Stages in Consumer Decision
WordProcess
of- Mouth
Awareness
Advertising
Interest
Channel
Decision
Product /
Service
Action
Price
Satisfaction
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
Marketing Model
Target Market
Aware
Intention to
Purchase
Understand
Believe
Above the
Line
Below the Line
Point of Purchase
Experience
Behavior
Want
Find
Buy
Revenue
Use
Value
Prefe
r
Loyal
Module 3
Marketing Management Philosophies
Production
Sales
Competing
Philosophies
Market
Societal Marketing
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
Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being
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
Comparing Sales and Market
Orientations
Organization’s
Focus
Sales
Orientation
Market
Orientation
Firm’s
Business
For
Whom?
Primary
Profit Goal?
Tools to
Achieve
Inward
Selling goods Everybody Maximum Primarily
promotion
and services
sales
volume
Outward
Satisfying
wants and
needs
Specific
Customer
groups
of people satisfaction
Coordinated
use of all
marketing
activities
Developing Competitive Advantage
Competitive
Advantage
Customer
Value
Customer
Satisfaction
Customer
Relationships
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.
Why so many products fail in Egypt?