Unit 3 Marketing. Learning Objectives. To define marketing and explain the elements of marketing To understand the functions of marketing and the marketing mix To discuss the way of market segmenting and targeting. Can you recognize which company it is from the following website?.
Learning Objectives • To define marketing and explain the elements of marketing • To understand the functions of marketing and the marketing mix • To discuss the way of market segmenting and targeting
Have you ever thought of why IBM could be so popular all of the world? IBM has undergone a remarkable transformation. All top IBM managers met face-to-face with important customers and report back their problems and priorities.
What are Consumer’s Needs, Wants and Demands? • Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am hungry. • Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a hamburger, French fries, and a soft drink. • Demands - human wants backed by buying power. i.e. I have money to buy this meal.
The scope of marketing In fact, marketing people are involved in marketing 10 types of entities: - Goods商品- Places地点 - Services服务- Properties财产权 - Experiences经历- Organizations组织 - Events事件- Information信息 - Persons个人- Ideas观念
Experiences Persons Places Organizations Information Ideas What Will Satisfy Consumer’s Needs and Wants? Products Anything that can be Offered to a Market to Satisfy a Need or Want Services Activities or Benefits Offered for Sale That Are Essentially Intangible and Don’t Result in the Ownership of Anything
Suppliers Modern Marketing System (Fig. 1-3) Competitors Company (Marketer) Marketing Intermediaries Environment End User Market Environment
Developing the Marketing Mix 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 Intended Positioning Activities that persuade target customers to buy the product Promotion Company activities that make the product available Place
Oral Practice An interview • A: a host of an economic TV program • B: an expert on marketing
A: From June 10th to July 10th, the football has been the focus of the world during these 30 days. The accumulated number of audience to these 64 matches has reached about 320,000,000,000, this is a great festival the World Cup brings to us. However, there has been another world cup in the eyes of business men, and those games are more intensive, more fierce and crueler, of course, they are real matches. This is the war of marketing which revolves around the World Cup.
B: Everyone who watches the World Cup can definitely feel that not only the players are trying to win the game, the team sponsors are fighting outside of the grassland. • A: There are three famous sports brands: Adidas, Nike and Puma, they choose different football teams to support, which one do you think has made a brilliant decision? • B: In my opinion, I agree more on Puma.
A: May I know your reason? • B: In football games, people prefer to focus on Black Horse, I think Puma has acted as a Black Horse. It firstly launched in the African teams, which is a potential market for sports brands, this strategy not only grasp a big emerging market but also very economic.
A: We hope Puma can really grasp this new market and make great achievements. The World Cup for football comes every four years, however, the competition on marketing on football or we can call it as a war because it may be more violent, will never end. It is even a start for most Chinese enterprises, because we will play a real home game in 2008.
Text One An Overview of Marketing
Vocabulary • availability n. 可用性 • E.g.:local availabilities 可从当地获得的东西。 the availability of a candidate 候选人的当选可能性。
solution n.解决方案 • E.g.: He came up with a really elegant solution to our problem. 他给我们的问题想出了一个很棒的解决方案。
categorize vt. 分类, 归类 • E.g.: If you categorize the information you need to remember， you will find it much easier. 如果你把所需记忆的信息分类，你就会觉得记忆起来要容易得多。
priority n. 优先考虑的事 • It’ll take three months to repair the house. Now patience is something should be a priority . • 这个房子装修要三个月，所以耐心是最重要的。
promotion n. 推销商品 • E.g.: • A: What is the next step following the promotion campaign?B: I guess you need to find someone who can bankroll you. A: 推销战之后要做什么？ B: 我想你需要有人来资助你。
conception n. 概念 • E.g.: This concept is at the very core of her theory. • 这个概念是她的理论的核心. • I can not understand the so abstract concept. • 我无法理解如此抽象的观念。
split off 分开 • E.g.:The road splits off from the main street. • 这条路从大街上岔了出来。
tailor-made adj. 定制的, 适合的 • E.g.:He seems tailor-made for the job. • 他好像很适合这项工作。
brochure n. 宣传册 • E.g.: I'll send you the brochure right away. • 我会把公司简介即刻给您寄去。 • The travel brochure lured me into taking a Caribbean vacation. • 这本旅游小册子诱使我去加勒比地区度假。
modify vt. 更改 • E.g.: The policy was agreed by the committee, but only in a modified form. • 那项政策经修改后才获得委员会同意。 • He'll have to modify his views if he wants to be elected. • 他要想当选就得把观点改得缓和些.
Explanation of the text • The American Marketing Association defines marketing as “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 goals.”
The word “create” gives marketing an anticipatory dimension and emphasizes the forward-looking approach necessary to identify future needs and wants. “创造”一词使得市场营销有了一个可以预期的空间，并且强调了发展性的眼光对于确定未来需求的必要性。
IBM’s marketing managers tried to win over the game, they have to understand that the customers’ needs are their goals. Without this concept in mind, they could produce only “white elephants” which they could sell to nobody. The concept of “finding the needs of the consumers and satisfying them” is the essence of marketing, a word literally meaning “finding a market and serving it”.
Keys to Exercises II. Fill in the table below by giving the corresponding Chinese or English equivalents. 市场营销 deliver solutions 合适的产品 marketing mix 个人推销 pricing 促销 demand for consumption
III. Choose one suitable answer from the following four choices to answer the question or to complete the sentence. B A D D A
IV. Practical Writing • The genius XXX Home Appliance Company has come up with a new model Microwave ovens -EB-3190EG. It can cook the food with amazing speed by heating the food. Furthermore its convection facility provides fans and a certain 'airflow' circulation that cooks the food by using much less electricity. It can bake, broil, cook, re-thermalize and warm the food effectively which makes it be the best oven available in the market that provides the users with delicious, tasty and fast cooked foods.
Basic functions of this new model: • 1. Halogen grill • 2. Electronic operation with LED display • 3. 10microwave power levels • 4. 90minutes time setting • 5. Auto menu & auto defrost function • 6. Child lock • 7. Quick start key
Special Features of Microwave Convection Ovens: this new model is a wonderful creation. It provides the couple advantages of microwave methods. There are some other features too that make this oven so special.
Baking features - During baking, a heating element raises the temperature inside the oven. So, it can operate temperatures from 225- 450F. The fan circulates the hot air throughout the oven, over the food and produces brown exteriors and moist interiors.
Following are some of the other advantages of microwave convection oven: • There are heating and cooling switches, which heat and cool the food perfectly. The nutrients are preserved and the actual taste of the food also remains same. The oven operates at much lower temperature and leads to 20% decrease in cooking time compared to other ovens.
If you still don't have an excellent microwave oven like this, then hurry up and get yourself this oven to provide wonderful dishes to your family and friends.
Text Two Market Selection
Text B • To know what the buyer’s behavior is; • To know how to segment the market • To know the methods of targeting a market
Consumer Buying Behavior • Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption. • All these consumers make up the consumer market. • The central question for marketers is: • “How do consumers respond to various marketing efforts the company might use?”
Culture Sub- culture Social class Cultural Factors Influencing Consumer Behavior Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes Buyer
Steps in Market Segmentation, Targeting, and Positioning Market Segmentation 1. Identify bases for segmenting the market 2. Develop segment profiles Market Targeting 3. Develop measure of segment attractiveness 4. Select target segments Market positioning 5. Develop positioning for target segments 6. Develop a marketing mix for each segment
World Region or Country City or Metro Size Density or Climate Step 1. Market SegmentationGeographic Segmentation
Step 1. Market SegmentationDemographic Segmentation • Dividing the market into groups based on variables such as: • Age • Gender • Family size or life cycle • Income • Occupation • Education • Religion • Race • Generation • Nationality
Step 1. Market SegmentationPsychographic Segmentation Divides Buyers Into Different Groups Based on: Social Class Lifestyle Personality
Step 1. Market SegmentationBehavioral Segmentation • Dividing the market into groups based on variables such as: • Occasions • Benefits • User status • Usage rate • Loyalty status • Readiness stage • Attitude toward product
Segmenting International Markets Geographic Location Factors Used to Segment International Markets Economic Factors Cultural Factors Political and Legal Factors
Measurable Accessible Substantial • Size, purchasing power, profiles • of segments can be measured. Differential • Segments can be effectively • reached and served. Actionable • Segments are large or profitable enough to serve. • Segments must respond differently to different marketing mix elements & programs. • Effective programs can be designed to attract and serve the segments. Step 1. Market SegmentationRequirements for Effective Segmentation
Discussion Connections • Using the segmentation bases you’ve just read about, segment the skin cream market in our country. • Describe each of the major segments and sub segments.