Transcript Document

MARKETING
Enterprise Economics
19th of November 2009
What is Marketing?
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Marketing is the social process by which
individuals and groups obtain what they need
and want through creating and exchanging
products and value with others
Kotler
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Marketing is the management process that
identifies, anticipates and satisfies customer
requirements profitably
The Chartered Institute of Marketing (CIM).
What is Marketing
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The right product, in the right place, at the right time, at the
right price.
Adcock
Marketing is essentially about marshalling the resources of an
organization so that they meet the changing needs of the
customer on whom the organization depends.
Palmer
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Marketing is the process whereby society, to supply its
consumption needs, evolves distributive systems composed of
participants, who, interacting under constraints - technical
(economic) and ethical (social) - create the transactions or
flows which resolve market separations and result in
exchange and consumption.
Bartles
Marketing Environment
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The micro-environment
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The macro-environment
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The internal environment.
Consumer Buyer Behaviour
Buyer decision Process
Marketing Mix (MM)
MARKETING MIX
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the marketing mix to the Four P's
PRICE, PLACE, PRODUCT, PROMOTION
the marketing mix to the Five P's
+ PEOPLE
the marketing mix to the seven P's
+PHYSICAL EVIDENCE, PROCESS
PLACE
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Place is also known as channel,
distribution, or intermediary. It is
the mechanism through which goods
and/or services are moved from the
manufacturer/ service provider to the
user or consumer.
PRICE
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Premium Pricing
Penetration Pricing
Economy Pricing
Price Skimming
Psychological Pricing
Product Line Pricing
Optional Product Pricing
Captive Product Pricing
Product Bundle Pricing
Promotional Pricing
Geographical Pricing
Value Pricing
PRODUCT
The Product Life Cycle (PLC) is based upon the
biological life cycle. For example, a seed is planted
(introduction); it begins to sprout (growth); it
shoots out leaves and puts down roots as it
becomes an adult (maturity); after a long period as
an adult the plant begins to shrink and die out
(decline).
 The Customer Life Cycle (CLC) has obvious
similarities with the Product Life Cycle (PLC).
However, CLC focuses upon the creation of and
delivery of lifetime value to the customer i.e. looks
at the products or services that customers NEED
throughout their lives.
The Product Life Cycle (PLC) &
Strategies for the differing
stages
Three Levels of a Product
Segment – Target Position
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SEGMENTATION
the market has
been separated into
its segments
Targeting
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the marketer will select a segment or
series of segments and 'target' it/them
Enter to the segment with the
product(s)
Targeting
Targeting
Positioning
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The term 'positioning' refers to the
consumer's perception of a product or
service in relation to its competitors.
What is the position of the
product in the mind of the
consumer?
Car Market
PROMOTION/ The
Promotion Mix
1. Personal Selling
2. Sales Promotion
3. Public Relations / PR
4. Direct Mail
5. Trade Fairs and Exhibitions
6. Advertising
7. Sponsorship
Physical Evidence & People
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Physical Evidence is the material part of a
service. Strictly speaking there are no
physical attributes to a service, so a
consumer tends to rely on material cues.
People are the most important element of
any service or experience. Services tend to
be produced and consumed at the same
moment, and aspects of the customer
experience are altered to meet the
'individual needs' of the person consuming
it.
Examples of Physical
evidence
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Packaging
Internet/web pages
Paperwork (such as
invoices, tickets and
despatch notes)
Brochures
Signage (such as
those on aircraft
and vehicles)
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Furnishings
Uniforms
Business cards
The building itself
(such as prestigious
offices or scenic
headquarters)
Mailboxes and
many others . . .
Process
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There are a number of perceptions of
the concept of process within the
business and marketing literature.
Some see processes as a means to
achieve an outcome, for example - to
achieve a 30% market share a
company implements a marketing
planning process.
Pricing Strategies
The Boston Matrix
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Dogs / These are products with a low share of a
low growth market. These are the canine version
of 'real turkeys!'. They do not generate cash for the
company, they tend to absorb it. Get rid of these
products.
Cash Cows / These are products with a high
share of a slow growth market. Cash Cows
generate more more than is invested in them. So
keep them in your portfolio of products for the time
being.
Problem Children. / These are products with a
low share of a high growth market. They
consume resources and generate little in return. They
absorb most money as you attempt to increase
market share.
Stars / These are products that are in high
growth markets with a relatively high share of
that market. Stars tend to generate high amounts
of income. Keep and build your stars.
The Boston Matrix
Marketing Plans
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Marketing plans are vital to marketing
success. They help to focus the mind of
companies and marketing teams on the
process of marketing i.e. what is going to be
achieved and how we intend to do it. There
are many approaches to marketing plans.
Marketing Teacher has focussed upon the
key stages of the plan. It is contained under
the popular acronym AOSTC.
Marketing Plans
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ANALYSIS
OBJECTIVES
STRATEGIES
TACTICS
CONTROLS
Stage One - Situation
Analysis
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Marketing Environments
Laws and regulations
Politics
The current state of technology
Economic conditions
Sociocultural aspects
Demand trends
Media availability
Stakeholder interests
Marketing plans and campaigns of competitors
Internal factors such as your own experience and resource
availability
Stage Two - Set marketing
objectives
SMART Objectives
 Specific - Be precise about what you are
going to achieve.
 Measurable - Quantify you objectives.
 Achievable - Are you attempting too
much?
 Realistic - Do you have the resource to
make the objective happen (men, money,
machines, materials, minutes)?
 Timed - State when you will achieve the
objective (within a month? By February
2010?).
Stage Three - Describe your
target market
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Which segment? How will we target the segment?
How should we position within the segment?
Why this segment and not a different one? (This
will focus the mind).
Define the segment in terms of demographics and
lifestyle. Show how you intend to 'position' your
product or service within that segment. Use other
tools to assist in strategic marketing decisions such
as Boston Matrix, Ansoff´s Matrix, Porter´s
Competitive Strategy, etc.
Stage Four – Marketing Tactics
Convert the strategy into the marketing Mix. These
are your marketing tactics.
 PRICE Will you cost plus, skim, match the
competition or penetrate the market?
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PLACE Will you market direct, use agents or
distributors, etc?
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PRODUCT Sold individually, as part of a bundle, in
bulk, etc?
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PROMOTION Which media will you use?
Stage Five – Marketing
Control
Remember that there is no planning
without control. Control is vital.
 Start-up costs.
 Monthly budgets.
 Sales figure.
 Market share data.
 Consider the cycle of control.
Marketing
Communication
Marketing communications is 'promotion' from the
marketing mix
 Personal Selling
 Sales Promotion
 Public Relations and publicity
 Direct Marketing
 Trade Fairs and Exhibitions.
 Advertising
 Sponsorship
 Packaging
 Merchandising (and point-of-sale)
 E - Marketing (and Internet promotions)
 Brands
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Thank you for your attention