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Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals' and companies' goals. Marketing is a social & managerial process by which individuals & groups obtain what they need & want through creating ,offerings & exchanging products of value to others Best Definition: Satisfying Needs Profitably Defining a Marketing Orientation Exactly what is a marketing orientation? It occurs when everyone in the organization is constantly aware of l who the company's customers are l what the company's customers want or need l how the firm can satisfy those customer needs better than its rivals l how the firm can satisfy customer needs in a way that generates the kind of profits that the company wants to achieve Marketing orientation begins at the top level of planning. A marketing orientation is a customer orientation that is embodied in a company's mission—its very reason for existing; for example, "Our mission is to provide lowpollution cars at a price that customers consider affordable and that lets our employees and shareholders achieve their personal objectives." strategy—the concrete actions the company must take to achieve its mission; for instance, "We must master the latest vehicle-emissions technology." Effective marketing is a company-wide enterprise that hinges on a philosophy shared by everyone within the organization. And a marketing orientation is vital because it helps your company achieve its mission. Needs Wants Value Products Demands Cost & Exchange & Transaction Satisfaction Relationship & Networks Golden Rule: It’s easier to retain an existing customer than to bring a totally new one Marketers & Prospects Markets Pay attention to your customers The process starts with understanding customers. Marketing is a way of understanding and satisfying the customer. Understand what the customer wants. Once marketers understand these basic drives, they set about satisfying the customers' (or target market's) needs, wants, and demands. Needs are fundamental requirements, such as food, air, water, clothing, and shelter. Beyond the purely physical level, people also need recreation, education, entertainment, and a place within a community or social status. Wants are needs that are directed at specific objects that might satisfy those needs. For instance, you might need food, but for a special occasion you may want to have a meal at a restaurant rather than preparing your food at home. Demands arise when people both want a specific product and are willing and able to pay for it. These needs are essential for life or quality of life, and marketing per se cannot affect the needs themselves. But marketing can influence how those needs are fulfilled. stated needs— real needs— unstated needs— delight needs— secret needs— Need: Basic Human Requirements Want: Specific Object that satisfies the NEED Demand: Wants for specific products backed up by ability & willingness to buy them Match company offerings to customer needs Customers' needs can be fulfilled in various ways—successful companies adapt their offerings to match their customers' needs. Companies can offer the following: Product: Is anything that can be offered to satisfy a need or want Product=Offering=Solution Overall value : The consumer's estimate of the product overall capacity to satisfy his needs. Overall Value = Benefits / Costs Mercedes Vs Chinese products Satisfaction : Overall Value : Perceived Value Four Conditions: Two parties Each has something of value to the other Can communicate Each party is free to accept or reject exchange • Transfer is …….. Cost of an avg. sales call $ 300 Average no. of sales call to convert a prospect to customer *4 Annual customer revenue $ 5,000 Avg. no. of loyal years *2 Company profit margin 0.1 * $ 1,200 $ 1,000 Golden rule : It is easier to retain an existing customer than to get a new one. Relation with who????? Ultimate outcome : Marketing network Market Communication Industry (sellers) Goods and Services Money Market (Buyers) Information Where is the error ? Marketer types : - Creative Marketer - Responsive Marketer Example: Customer types : - Potential customer - Customer 1.The Production Concept: Holds that consumers will favor those products that are widely available & low in prices. They concentrate on: High production efficiency Low cost Mass distribution Examples: Henry Ford,China Myopia: Not all people prefer cheap products. 2.The Product Concept: Holds that consumers will favor those products offer the most quality,performance or innovative features. They concentrate on: Making superior products Improving them overtime Examples: Dell,Germany Myopia: They fall in love with their own Product. 3.The Selling/Sales Concept: Holds that consumers if left alone will ordinarily not buy enough of the organization’s products. They concentrate on: Aggressive selling Promotion effort Examples: The Northern coast Myopia: They assume that the people will like the product & they won’t bad-mouth it. 4.The Marketing Concept: Holds that the key to achieving the goals of the organization is through identifying & Satisfying the needs & wants of target Markets. No Myopia: Meeting Needs profitably TheyPoint concentrate on:Means Starting Focus Ends Target Customer Integrated Market Needs Marketing Profits through Customer’s Satisfaction a. b. Target Market Customer Needs Can be identified by either Marketers : 1. Responsive Marketer c. d. 2. Creative Marketer Integrated Marketing: Teamwork among all departments of the company to satisfy the customer. Profits through Customer’s Satisfaction 5.The Societal Marketing Concept: Holds that the organization’s task is to determine the needs,wants & interests of target Market & deliver the desired satisfactions more effectively than competitors in a way that preserves or enhances the consumer’s & the society’s well being. They concentrate on: Building Social & Ethical Considerations into their Marketing practices Example: Selling Starting Point Factory Focus Products Means Ends Selling & Promoting Profits through sales volume Make-Sell Philosophy Marketing Right Customers for your Product Target Customer Market Needs Integrated Marketing Profits through Customer’s Satisfaction Sense-Respond Philosophy Right Customers for your Product Decision Making Sales Marketing Customers Top Management Middle Management Front Line People Customers Front Line People Middle Management Top Management Defining Target market Marketing Mix 4 Ps Needs, wants& Demands Market research Segmentation Targeting Positioning Product Price Promotions Place Segmentation Targeting Positioning A process of subdividing the market into distinct subsets of customers that behave in the same way or have similar needs. Before Segmentation After Segmentation Geographic Demographic Psychographic •Country •Age •Lifestyle •City •Nationality •Climate •Religion •Density •Education •Region •Occupation •Gender •Social Class •Personality Behavioral •Occasions •Attitude toward product •Loyalty status •Usage rate •User status The act of evaluating & Comparing the identified groups and selecting one or more of them as the prospects Before Targeting After Targeting 1. 2. 3. 4. 5. Differentiating: The act of designing a set of meaningful differences to distinguish the company’s offerings from competitor’s offerings through differentiating the PRICE or: Product (McDonald’s,Cadillac) Service (Pizza’s war) Personnel (A good Salesman) Channel (Chipsy’s war) Image (Azhar,Emirates Airlines) Segmentation Targeting Differentiation & Positioning Mini MBA course, Knowledge Academy, 2005 Presentation skills, Logic, 2004 A Process of subdividing the market into distinct subsets of customers that behave in the same way or have similar need. •Massive •Segment •Niche Marketing Marketing Marketing •Individual Marketing The act of evaluating and comparing the identified groups and then selecting one or more of them as prospects. Single segment Concentration Selective Specialization M1M2M3 M1M2M3 P1 P2 P3 Product Market Specialization Specialization M1M2M3 Full Market Coverage M1M2M3 M1M2M3 P1 P1 P1 P1 P2 P3 P2 P3 P2 P3 P2 P3 The act of designing a set of meaningful differences to distinguish the company's offerings from competitor's offerings. Product Features Performance Quality Durability Reliability Style Design Reparability Service Ordering ease Delivery Installation Customer Training Customer Consulting Maintenance & Repair Miscellaneous Services Personnel Competence Friendly Credibility Reliability Responsiven ess Communicati on Channel Coverage Image • Identity Vs Image Performance • Symbols • Written & audiovisual Media • Atmosphere • Events The act of designing the company’s offering & image so that they occupy a meaningful & distinct competitive position in the target customer’s mind Emirates Vs Al-Arabia The Palm • Position of : •Dubai •Financial centre, The most prestigious square Km on the face of the earth. •Largest Park •Tallest tower Defining Target market Needs, wants& Demands Market research Marketing Mix 4 Ps SegmentationTargeting Positioning Product Price Promotions Place 4 Ps 4 Cs Product Customer Solution Price Customer Cost Place Convenience Promotion Communication Is anything that can be afford to a market to satisfy a want or a need . Potential Product Augmented Product Expected Product Basic Product Core Benefit The set of all products & items that a seller offers for sale to buyers It has a certain Width , Length & Depth Width:Different product lines Length:total number of items in the mix Depth:Varieties & Shapes of each Product Product Mix Width Detergents Toothpaste Bar soap Diapers Tissues Tide Crest Camay Pampers Puffs Arial Gleem Lava Luvs Summit Ivory snow Era Ivory Banner Brand is a name, term, sign, symbol or design or a combination of all that, intended to identify & differentiating goods & services of a seller from those of competitors. Five levels of customer attitude towards their brand : Customer will Values the Satisfied Satisfied & would change brand No reason to incur for price & sees it as change costs by changing (no loyalty) A Friend Devoted to The Brand Includes the activities of designing & producing the container or the wrapper for the product. Cheetos Product life cycle Soft drink war • Coca Slogan vs Pepsi`s • Coca manager quote : “ We don`t compete with Pepsi only, We aren`t a cola company only” • Al-Ahram company and recognizing a new segment. • Fayrouz slogan Time Introduction Sales Growth Maturity Decline Rising Peak Declining Costs Consumer High Average Low Low Profits Negative Rising High Declining Customer Innovators Early adopters Middle Majority Laggards Competitor Growing Stable number Declining Max Profit Reduce Expenditure Objectives Few Product awareness Max Market share 1- Characteristics & Objectives Low Tim e Introductio Growt Maturity n h Offer a basic product Pric Cost e plus Selective Plac Distributi e on Adverti Build awarenesssing Sales Early Heavy Promoti adopters on Prod uct Offer Diversify extensions &brands & services Penetrati models Matching Decline Phase out weak items Cut ng price best price competitors Intensive More Phase out Distributi intensive unprofitable on distribution outlets Build Brand Reduce awareness- differences & Reduce to benefits Mass market Increase Reduce to take adv. of to minimal heavy encoura level demand ge A distribution channel consists of the group of individuals & establishments which enter in the process of transferring the products/service from the original manufacturer to the end consumer. One level Channel Retailer Two Level Channel Wholesaler Retailer Agents Agents Two Level Channel Wholesaler Two Level Channel Retailer Retailer Consumer Manufacturer Zero Level Channel (direct marketing) Push Strategy Pull Strategy Company Company Wholesaler Wholesaler Retailer Retailer Customer Customer It’s time to work !!!!!! Mini MBA course, Knowledge Academy, 2005 Communication skills: Logic Handouts , 2004 Zedny, HDP , 2005