Ayesha Khalil

Marketing

Advertising???

Selling???

Making profit only????

Mar

keti

ng

oMarketing is more then selling

and pricingoThe business must identify &

satisfy customers needs wants and

demands in order to make profit,

oMarketing is about gain and retain

customer.oSatisfying customer needs and

build long term relationship with

themoMarketing is about creating for

customer value

Kotler ’s

definition:

“Marketing is a societal process by

which individuals and groups obtain

what they need and want through

creating, offering, and freely

exchanging products and services of

value with others.”

Products

& Services

Services

o Anything that can be

offered to a market

to satisfy a need or

want.

o The concept of

product is not

limited to physical

objects – anything

capable of satisfying

a need can be called

a product.

o Are tangible

Product

o products also

include services,

which are

activities or

benefits offered

for sale that are

essentially

intangible and do

not result in the

ownership of

anything.

o are Intangible

• Human have many complex needs• Physical needs for food, clothing, warmth, and safety• Social needs or belonging and affection • Individual needs for knowledge and self – expression • needs are states of felt deprivation

Needs

• Want are the form taken by human needs as they are shaped by culture and individual personality.

• People have almost unlimited wants but limited resources.• They want to choose products that provide the most value and

satisfaction for their money. Wants

• When backed by buying power, wants become demands.• Consumers view products as bundles of benefits and choose products

that give them the best bundle for their money.• Wants + Buying Power = DemandDemands

Needs Wants & demands

Customers vs. ConsumersCustomers: buy a product.Consumers: use the product.

Example: Parents who buy video games

from retailers are customers. The kids

who play the video games are the consumers.

What is a Market?

A market is all potential

customers who share common

needs and wants and who have the

ability and willingness to buy the

product.

The Marketing MixThe marketing mix comprises

four basic marketing strategies

know Product

PlacePrice

Promotion

4 P,s

Four CsCustomer solutionCustomer costConvenienceCommunication

Professor Takada

The Marketing Mix

CustomerNeeds

Product Price

Promotion Distribution

Pro

duct

oProduct’ refers to the functions and features of a

good or serviceoShould satisfy the needs of

the customeroMay have a Unique Selling

Proposition (USP)o‘Product’ also includes a

range of factors such as packaging, quality,

warranties, after-sales service

and branding

Pro

duct

life

cycl

e

Sta

ges

of p

rod

uct

li

fecy

cle

Development – high costs but no

salesLaunch – high expenditure on

promotion and product development, low sales

Growth – sales increase and

product should break-evenMaturity – sales stabilise, less

expenditure on promotion needed,

revenue & profit should be high

Decline – sales decline, extension

strategies can be adopted or the

product withdrawn

Pri

ce

oThe price of a product will

depend on:oThe cost to make itoThe amount of profit desired

oOther objectives of the businessoThe price competitors charge

oThe price customers are willing

to payoIs there a high demand?oIs demand sensitive to changes

in price?

Pri

cin

g st

rate

gies

PlaceProducts should be conveniently

available for customers to buy

‘Places’ include:o Storeso Mail ordero Telesaleso Internet

The use of e-commerce

(promoting and selling on the

internet) has grown massively over the

last few years

Channels of distribution

Manufacturer

wholesaler

retailer

costumer

consumer

Promotion

The aims of promotion are to:

Raise awareness

Encourage sales

Create or change a brand image

Maintain market share

Pro

mot

iona

l ac

tivi

ties

oAdvertising e.g. TV, billboards &

internet.oSales promotions e.g. Loyalty

cards, BOGOF, discounts & free gifts

oSponsorship – a business pays to

be associated with another firm, event

or causeoDirect mailing – promotional

material is sent to potential customers by

post/emailoPublic relations – building the

relationship between the firm and the

public by enhancing its reputation

Marketing Strategy

Requires careful customer analysis.To be successful, firms must engage in:o Market segmentationo Market targetingo Positioning

SegmentationThe process of dividing a

market into distinct groups of

buyers with different needs,

characteristics, or behaviour

who might require separate

products of marketing programs

Geographic segmentation

Demographic segmentation

Psychographic segmentation

Behavioral segmentation

Key segmenting variables:

Demographic SegmentationoAge and life cycleoLife stageoGendero IncomeoGenerationo Social class

Geographic SegmentationDividing the market into

different geographic unitso Nationso Stateso Regionso Countieso Citieso Neighborhoods

Psychographic SegmentationDividing buyers into different groups based on

social class, lifestyle, and

personality characteristics

Behavioral segmentation divides buyers into groups based

on their knowledge, attitudes,

uses, or responses to a product

o Occasiono Benefits soughto User statuso Usage rateo Loyalty status

Why Segment?:Meet consumer needs more preciselyIncrease profitsSegment leadershipRetain customersFocus marketing communications

Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve

niche

individualsTargeting: Who are my customers?

Positioning: What is my main selling point?

Segmenting : dividing into group of similar needs and desires

Niche marketing o Narrowly defined groupo Fairly small market size

Individual marketing o One-to-one marketing.o Customised to individualso Customised industrial

products

positioningA marketing strategy that emphasizes

serving a specific market segment by

achieving a certain position in buyers’

minds relative to the competition

oAttributesoPrice/qualityoCompetitorsoApplicationoProduct useroProduct class

Any

Que

stio

n???

Tha

nk

You