MARKETING MEANS Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals American Marketing Association
SIMPLE MARKETING SYSTEM COMMUNICATION GOODS/SERVICE CONSUMER PRODUCER/SELLER MONEY INFORMATION / FEEDBAK
To attract new customer by promising superior value, and to keep current customers by delivering satisfaction.
Core Concepts of Marketing Needs, Wants Demands Products Utility, Value & Satisfaction Markets Exchange, Transaction Relation Marketing& Marketers
MACRO ENVIRONMENT The macro-environment consists of those factors that the company has very little control over
Demographic forces refers to the composition of a company's market(s) and includes whether or not this composition is likely to change. For example, the number of Hispanics as a percentage of the U.S. population is increasing and this may impact a company's sales as to whom they should target. Demographics includes: age, race, sex, income, education. Economic forces has to do with the economic conditions of the local, state, national, and international economies that can affect the firm. Natural forces includes the weather (natural disasters, for example). Technological forces include the impact that new technology can have on a firm. Political/legal forces include the political process and/or changing laws/regulations that can impact a firm. Cultural forces has to do with changing values of a culture.
PRODUCT = ? A good, idea, method, information, object or service created as a result of a process and serves a need or satisfies a want. It has a combination of tangible and intangible attributes (benefits, features, functions, uses) that a seller offers a buyer for purchase. For example a seller of a toothbrush not only offers the physical product but also the idea that the consumer will be improving the health of their teeth
Product Item A specific version of a product that can be designated as a distinct offering among an organization’s products. Product Line A group of closely-related product items. Product Mix All products that an organization sells. Product Items, Lines, and Mixes
THE PRODUCT LIFE CYCLEProducts often go through a life cycle. Initially, a product is introduced. Since the product is not well known and is usually expensive (e.g., as microwave ovens were in the late 1970s), sales are usually limited. Eventually, however, many products reach a growth phase—sales increase dramatically. More firms enter with their models of the product. Frequently, unfortunately, the product will reach a maturity stage where little growth will be seen.
PRICING STRATEGY Market-Skimming Pricing Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay the high price. Market-Penetration Pricing Setting a low price for a new product in order to attract a large number of buyers and a large market share.
Pricing Strategies Product Line Pricing Setting price steps between product line items. Price points Optional-Product Pricing Pricing optional or accessory products sold with the main product • Captive-Product Pricing • Pricing products that must be used with the main product • High margins are often set for supplies • Services: two-part pricing strategy • Fixed fee plus a variable usage rate • By-Product Pricing • Pricing low-value by-products to get rid of them • Product Bundle Pricing • Pricing bundles of products sold together
Price Adjustment Strategies Strategies • Types of discounts • Cash discount • Quantity discount • Functional (trade) discount • Seasonal discount • Allowances • Trade-in allowances • Promotional allowances Discount / allowance Segmented Psychological Promotional Geographical International
PLACE Placement (or distribution): refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales.
Marketing - Promotion Strategy • ADVERTISING • SELLING • SALES PROMOTION • PUBLIC RELATIONS
Marketers and Markets Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B. The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers. It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants. Much happens before and after the sale to affect customer satisfaction
MARKETING CHALLENGES AHEAD • MORE ETHICS AND SOCIAL RESPONSIBILITY NEEDED • THE RAPID GROWTH OF INFORMATION AND TECHOLOGY • GROWTH OF NON-PROFIT MARKETING • GLOBALISATION • RAPID GLOBALIZATION • THE CHANGING WORLD ECONOMY