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Introductionto Marketing Chapter One(1) Inas A.Hamid
Marketing has been a part of our life since we had our first pound to spend.
Organizations should seek to make a profit. So they have many options: • High quality High price • Good quality Good price • Low quality High price • Low quality Low price It depends on the consumer
The marketing concept Marketing: means that an organization should seek to make a profit by serving the needs of customer groups.
Ops!!!!! We have a problem • Customers, needs may change in the future!!! • So, organization should focus on building long-term relationships in which initial sale is viewed as a beginning step in the process, not as end goal.
Take care…… • It cost a great deal more to acquire a new customer than to keep an old one. • Loyal customers buy more from your firm over time, so they become more profitable over time. • Loyal customers can be representatives of the products and provide positive WOM. • Loyal customers are often willing to pay more for the quality and value they desire.
What is marketing? • An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stakeholders.
Major types of marketingService • Marketing designed to create exchanges for intangible products.
Person • Marketing designed to create favorable actions toward persons.
Place • Marketing designed to attract people to places
Cause • Marketing designed to create support for ideas, causes, or issues or to get people to change undesirable behavior.
product Marketing designed to create exchanges for tangible products.
Organization Marketing designed to attract donors, members, participants, or volunteers.
Marketing planning Situation analysis Marketing objectives Target market selection Marketing mix Implementation and control
1- Situation analysis • Analyzing and monitoring the position of the firm in terms of its past and present for predicting the future situation. The situation analysis can be divided into six major areas of concern:
Each of these areas should be analyzed& the resulting information can help in : identifying opportunities, threats to organization's, strengths, and weakness. Serve the target market
The cooperative environment. All firms and individuals who have interests in achieving the objectives of the organization such as; suppliers, resellers, distributers, employees, departments ………..
The competitive environment. What other firms in the industry that rival the organization for both sales and resources.
The Economic Environment: The overall economy, including business cycles, consumer income and spending patterns. Inflation, unemployment levels can limit the size of the market. Rental services less expensive products
The social environment. Marketers describe this environment in terms of who the people are??? General culture, traditions, norms, attitudes of people in the society. Also age, education, marital status
The Political and legal environment. The laws, regulations, and political pressures affecting marketers. Laws and regulations can limit marketing activities or be a source of opportunity for organizations that provide goods and services.
Marketing opportunitiesare often found by systematically analyzing situational environment. Once an opportunity is recognized, the marketing executive must then plan an appropriate strategy for taking advantage of the opportunity.
2- Marketing Objectives • Marketing objectives usually are derived from organizational objectives. • Objectivesdescribe the Intended: • Outcomes of carrying out the mission. • Organization's desired profit level. • Organization's market position. • Organization's reputation. • Organization's social responsibility. • Organization's level of quality. Objectives should be written in order to their importance to force the managers and employees to think and remember them.
Objectives should be SMART S: Specific. The objective should define what to be done and by whom. “ Increase sales by 6 percent annually over the next five years”. M: Measurable. Stating the objectives in terms of certain percentage “profits or market share or sales volume” to help the planners to assess whether the organization is meeting them. For example; “increase consumer awareness” are vague, whereas “increase awareness of the 55-65 year age group from 40% to 80% is more precise and capable of measurement.
A: Achievable. Objectives should be seen as achievable to stimulate employees to do their best . For example; If sales are targeted to increase by 25% over a designated time period then manufacturing capacity will have to be secured to meet this target. R: Realistic. Objectives need to be set with a degree of realism rather than on the basis of imagination. T: Time. Define a time frame for accomplishing the objectives.
Types of objectives: • Each consists of one of two main components- they are either sales or communicationbased.
Salesobjectives • Performance of sales objectives can be determined in terms of sales volume –sales value- profit – market share… • Are sales generated by marketing communications activities alone? • What impact do marketing channel and product availability play in sales performance? • Marketing communication is important but it is not the only contributor to marketing success.
Communication goals • Awareness is an important state to be achieved . • To achieve awareness people need to perceive the product, to understand what it might do for them (benefits), and they need to be convinced that such a purchase would be in their best interest and to do this there is a need to develop suitable attitudes and intentions. • Promotional objectives must include: • Identification of the target audience. • A clear message. • Expected outcomes in terms of trial purchase, awareness, and so on. • Mechanisms for monitoring and control.
3- Select the target market • The success of any marketing plan depends on how well it can identify customers needs and organize its resources to satisfy them profitably. Four important questions must be answered: • What do customers need? • What must be done to satisfy these needs? • What is the size of the market? • What is its growth profile?
The target market process (TMP) consists of segmenting the market, targeting particular segments and then positioning the offer in the selected segment in order to achieve the marketing goals. Targeting particular segments depends on: Profitability. Present and future sales volume. The match between what it takes to appeal successfully to the target and the organization's capability.
4- Developing marketing mix • It is the set of controllable variables that must be managed to satisfy the target market and achieve organizational objectives. • These controllable variables are usually classified according to four major decision areas: product , place , price , promotion.
All 4P,s have a part in the communication process but only marketing communication or promotion has the power to inform , remind, persuade and induce action in consumers. The marketing communications must therefore be interactive and on a two-way communication form.
5- Implementing and Control of Marketing Plan • Implementing the marketing plan involves putting the plan into action and performing marketing tasks according to the predefined schedule. • Marketing executive must closely monitor and coordinate implementation of the plan. • In some cases, adjustments may have to be made in the basic plan because of changes in any of the situational environment. For example; competitors may introduce a new product. In this case , it may be desirable to speed up or delay implementation of the plan.
Controlling the plan involves three basic steps: • Measuring the results of the implemented marketing plan. • Comparing these results with the objectives. • Taking decisions on whether the plan is achieving objectives.
Assignment • Read the case study “ Market opportunity analysis “ , p.p. 243- 249, then answer the questions , p.249.
assignment 1- Imagine that you want to open an Italian restaurant in Egypt that will sell a variety of pasta dishes. Analyze the Egyptian market according to the six dimensions of marketing environment. If you were a marketer with a travel agency that focused on international adventure travel, what demographic trends would you research before introducing new trips or tours?