Introduction to Marketing

1. Introduction to Marketing chapter 1 Harcourt, Inc.

2. First of all … • Let's confirm

3. What is ?

5. What is Marketing? • Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. • More simply: Marketing is the delivery of customer satisfaction at a profit. • More more simply: Marketing is Satisfying needs profitably

6. Why Study Marketing ????

7. Why Study Marketing? • Plays an important role in society • Vital to business • Offers outstanding career opportunities • Affects your life every day

8. Core Marketing Concepts Needs, wants, and demands Products and Services Core Marketing Concepts Markets Value, satisfaction, and quality Exchange, transactions, and relationships

9. What Motivates a Consumerto Take Action ??? • Needs- state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am thirsty • Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola. • Demands- human wants backed by buying power. i.e. I have money to buy a Coca-Cola.

10. What Motivates a Consumerto Take Action ??? • Needsare basic human requirements • Wants are needs directed to specific objects/services that might satisfy the need . • Demands= wants + buying power. • Marketers spends time and money for a market research to understand the customer’s needs, wants, and demands.

11. Introduction to Marketing chapter 2 Harcourt, Inc.

12. Simple Marketing System Communication Product/Service Producer/Seller Consumer Money Feedback

13. The Scope of Marketing • Places • Properties • Organizations • Information • Ideas • Goods • Services • Experiences • Events • Persons

14. Actual Buyers Market - buyers who share a particular need or want that can be satisfied by a company’s products or services. Potential Buyers Who Purchases Products and Services?

15. M arketing is not the same as selling Sales : getting the customer to want what the company produces Marketing: getting the company to produce what the customer wants

16. The Selling Concept Factory Product Sell and Promote it Profits through sales volume The Marketing Concept Market Customer needs Integrated marketing Profits from satisfied customers Marketing Concept versus Selling Concept Starting Point Focus Means Ends

17. Demographic- Economic Environment Technological- Natural Environment Marketing Intermediaries Product Target Consumers Suppliers Place Price Publics Promotion Competitors Political- Legal Environment Social- Cultural Environment The Marketing Process

18. Process of Selecting Target Consumers Market Segmentation: determining distinct groups of buyers (segments) with different needs. Market Targeting: evaluating and selecting which target segments to enter. Market Positioning: products distinctive and desirable place in the minds of target segments compared to competing products. Marketing’s Role in Strategic Planning

19. Marketing Mix- The Four P’s Price Amount of money that consumers have to pay to obtain the product Product “Goods-and-service” combination that a company offers a target market Target Customers Activities that persuade target customers to buy the product Promotion Company activities that make the product available Place

20. The Global Marketing Environment

21. All the actors and forces influencing the company’s ability to transact business effectively with it’s target market. Includes: Microenvironment- forces close to the company that affect its ability to serve its customers. Macroenvironment- larger societal forces that affect the whole microenvironment. Marketing Environment

22. Think with me

23. The Marketing Environment Company Publics Demographic Economic Company Political Suppliers Cultural Natural Competitors Customers Intermediaries Technological

24. The Marketing Environment Demographic Company Economic Cultural Company Publics Suppliers Competitors Customers Natural Political Intermediaries Technological

25. The Microenvironment Company Publics Suppliers Forces Affecting a Company’s Ability to Serve Customers Competitors Intermediaries Customers

26. Company’s Internal Environment- functional areas such as top management, finance, and manufacturing, etc. Suppliers- provide the resources needed to produce goods and services. Marketing Intermediaries- help the company to promote, sell, and distribute its goods to final buyers. The Company’s Microenvironment

27. Customers-those who purchase a company’s goods and services. Competitors - those who serve a target market with similar products and services. Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives. The Company’s Microenvironment

28. The Macroenvironment Demographic Cultural Economic Forces that Shape Opportunities and Pose Threats to a Company Political Natural Technological

29. Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics. Economic- factors that affect consumer buying power and patterns. Natural - natural resources needed as inputs by marketers or that are affected by marketing activities. The Company’s Macroenvironment

30. Technological- forces that create new product and market opportunities. Political- laws, agencies and groups that influence or limit marketing actions. Cultural- forces that affect a society’s basic values, perceptions, preferences, and behaviors. The Company’sMacroenvironment

31. Demographic- Economic Environment Technological- Natural Environment Marketing Intermediaries Product Target Consumers Suppliers Place Price Publics Promotion Competitors Political- Legal Environment Social- Cultural Environment The Marketing Process

32. Market Segmentation, Targeting, and Positioning for Competitive Advantage

33. What customers will we serve ??

34. Steps in Segmentation, Targeting, and Positioning 6. Develop Marketing Mix for Each Target Segment Market Positioning 5. Develop Positioning for Each Target Segment 4. Select Target Segment(s) Market Targeting 3. Evaluate potential and commercial Attractivenessof eachSegment • Determine important • characteristics • of each segment Market Segmentation 1. Identify Bases for Segmenting the Market

35. Step 1. Market Segmentation

36. Step 1. Market SegmentationBases for Segmenting Consumer Markets Geographic Nations, states, regions or cities Demographic Age, gender, family size and life cycle, or income Psychographic Social class, lifestyle, or personality Behavioral Occasions, benefits, uses, or responses

37. Using Multiple SegmentationBases: Geodemographics

38. Measurable Accessible Step 1. Market SegmentationRequirements for Effective Segmentation Substantial • Size, purchasing power, profiles • of segments can be measured. Differential • Segments must be effectively • reached and served. • Segments must be large or profitable enough to serve. Actionable • Segments must respond differently to different marketing mix elements & actions. • Must be able to attract and serve the segments.

39. Step 2. Market Targeting

40. Step 2. Market TargetingEvaluating Market Segments • Segment Size and Growth • Analyze sales, growth rates and expected profitability. • Segment Structural Attractiveness • Consider effects of: Competitors, Availability of Substitute Products and, the Power of Buyers & Suppliers. • Company Objectives and Resources • Company skills & resources relative to the segment(s). • Look for Competitive Advantages.

42. Product’s Position - the place the product occupies in consumers’ minds relative to competing products; i.e. Volvo positions on “safety”. • Marketers must: • Plan positions to give products the greatest advantage • Develop marketing mixes to create planned positions Step 3. Positioning for CompetitiveAdvantage

43. Step 1. Identifying a set of possible competitive advantages: Competitive Differentiation. • Step 2. Selecting the right competitive advantage. • Step 3. Effectively communicating and delivering the chosen position to the market. Steps to Choosing and Implementing a Positioning Strategy

44. Product Service Areas for Competitive Differentiation Personnel Image Developing Competitive Differentiation

45. Chapte 4 Product and Services Strategy

46. Anything that can be offered to a market for acquisition or use. Satisfies a want or a need. Includes: Physical Products Services Persons Places Organizations Ideas Combinations of the above What is a Product?

47. Product Attributes Branding Individual Product Decisions Packaging Labeling Product Support Services

48. Product Attributes Features Quality Design

49. Brands • Brand is the "name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers • Initially, Branding was adopted to differentiate one person's cattle from another's by means of a distinctive symbol burned into the animal's skin with a hot iron stamp, and was subsequently used in business, marketing and advertising. • A brand is the most valuable fixed asset of a Corporation