Download Business in Global Markets

Ass. Prof. Dr. Özgür KÖKALAN
İstanbul Sabahattin Zaim University
Chapter Objectives
1.
2.
3.
4.
5.
Identify the concept of marketing
Explain marketing planning and marketing reserach
Identify the two basic market, sellers market and buyers
market
Identify the two basic buyers; consumers, and business
(B2B) buyers
Explain what marketing mix is
5-2
What Is Marketing?
All activities directed toward identifying and satisfying
customer needs and wants through a process of exchange.
Other definition,
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 objectives
 The selling concept starts with the existing products in
the factory and calls for heavy selling and promotional
efforts to accomplish profitable sales. Inthat sense the
selling concept has an inside-out perspective.
 Marketing concept has outside-in perspectives. It
begins with a clearly-defined market. It focuses on the
customer needs, coordinates all marketing activities
(product and service creation, distribution, pricing,
promotion) to obtain profits by establishing long-term
customer relationships based on theirvalue and
satisfaction.
Marketing Planning
 Marketing
planning involves implementing the
planning activities to achieve the marketing objectives.
Product mixes or lines, distribution channels, pricing
decisions, promotional activities will be formulated
based on marketing planning.
Marketing Research
 Marketing research involves collecting and using
information for making marketing decisions.
 Marketing research can reduce the risks and
uncertainty to increase the possibility of success of
marketing decisions. Therefore, research is very
essential for the marketing managers who make the
final marketing decisions..
Marketing Research Process
1. Defining the research objectives. In this stage, the
marketing manager and the researchers work together to
define the purpose of the study.
2. Developing the research plan. This plan outlines the
sources of information, research approaches, contact
methods and necessary instruments to be used to gather
information.
3. Identifying the information. In this step, researchers
gather secondary and primary data to be utilized in
marketing.
4.
Implementation
stage
of
the
marketing
research process
Markets
 Market is a place where people or organizations with
sufficient purchasing power, authority and willingness
to buy and sell meet.
 There must be a buyer and a seller in the marketplace.
Both of them should be willing to buy and sell a
specific product.
 A market with product shortages is called a seller’s
market. In this type of market products supplied are
less than the demand in the market and that gives the
sellers the ability to set prices that enable them to get
higher incomes.
 In a buyer’s market there is an adequate or excess
number of supplies and products that enable the
customers to choose among the variety of products
with competitive prices.
Buyers
 Markets can be classified as consumer or business
markets.
 Consumer Market: a consumer market is a market
made up by all individuals and households who
purchase goods and services for their personal
consumption.
 Business Market (B2B); Business markets are those
markets for products and services that are purchased
by all types of organizations for use in manufacturing
process, for resale or renting to others at a profit, and
for consumption
Consumer Market Segmentation
 Consumer product markets can be segmented based
on the characteristics of the individuals, groups or
organizations.
 To segment the consumer product markets, managers
use the following characteristics.
 Geographic segmentation refers to segmenting
markets by region of the country or world.
 Demographic segmentation is the division of
consumer markets according to demographic variables
suchas age, gender, ethnic background, income.
 Psychographics segmentation is another method to segment
the consumer markets based on the characteristics such as
personality, motive, lifestyle.
 Geo-demographic
segmentation is a multivariable
segmentation that clusters consumers based on the
neighborhood lifestyle categories. It combines geographic,
demographic and psychographics segmentations.
 Usage rate segmentation divides the consumer markets based
on the frequency and amount of products bought or consumed
such as nonuser, former user, potential user, heavy user.
 Benefit segmentation is the method of dividing the markets
based on the benefits customers seek from the product such as
nutrition, health, good taste, economical, weight loser.
Consumer Behaviour
 Consumer behavior relates to the actions an individual
takes in purchasing and using products and services.
 There are many factors affecting consumer behaviour.
These are:
 Motivation and personality, perception, learning, values,




beliefs, attitudes and lifestyle are very useful for
understanding the buying process. These concepts are some
of the psychological factors that influence the behavior of the
consumer
Socio-cultural factors.
Other people’s opinions and views
Family
Social class
Consumer Purchasing Decision
Process
 Consumers are involved in a step-by-step process to
make their purchasing decisions.
 The length of time and amount of effort they devote in
the purchasing process is dependent on the
importance of the desired goods and services.
 All consumers pass through a similar six-step
purchasing decision process in every purchasing
action.
 But If you buy a product or services frequently, you
can pass most of the steps
Purchasing Decision Process
 The steps are as follows:
 1. Problem or opportunity recognition: In the first step,
a consumer recognizes a problem or need for a product or
service.
 2. Search: The consumer gathers information related to
the attainment of a desired state or product and service
needed.
 3.Evaluating the alternatives: The consumer evaluates
the alternatives based on the findings reached during the
search process. In this stage, the consumer should develop
a set of evaluative criteria to guide selection.
 4.
Purchase decision: After evaluating each
alternative, a consumer makes a decision for the
purchase. The store, brand, facilities will be
determined based on the personal evaluative criteria.
 5. Purchase act: After the eventual purchase decision,
the consumer makes the act of purchasing.
 6. Post-purchase evaluation: In this stage, the buyer
feels satisfaction or dissatisfaction with the purchase
determined by the product or the service meeting his
expectations.
Business (B2B) Markets
 Business markets are those markets for products and
services that are purchased by all types of
organizations for use in manufacturing process, for
resale or renting to others at a profit, and for
consumption.
 They consider and are involved in all non-retail and
non-consumer goods sales.
 Consumer goods are sold to individuals but business
market customers are organizations such as business
firms, governments and institutions.
Business Buyers Behaviour
Recognition of a problem or need and a general solution,
2. Determination of characteristics and quantity of needed
item,
3. Description of characteristics and quantity of needed
item,
4. Search for and qualification of potential sources,
5. Acquisition and analysis of proposals,
6. Evaluation of proposals and selection of supplier,
7. Selection of order routine,
8. Performance feedback and evaluation.
1.
Marketing Mix
 A marketing mix that blends the four important marketing
elements product, pricing, promotion and distribution to
fit the needs and preferences of the target market.
 It is also called as 4p’s
 Product
 Price
 Place (Distribution)
 Promotion
 A particular combination of these elements best fits the
target market needs determines the marketing success of
the organizations.