Introduction to Marketing

Chapter 5

1
 What is marketing?

‘Marketing is the management process that

identifies, expects and satisfies customer
requirements profitably’.

 ‘The right product, in the right place, at the

right time, and at the right price’
 The Goal of Marketing is:
To attract new customer by ensuring superior
value, and to keep current customers by
delivering satisfaction.

3
 Marketing, more than any other business function,
deals with customers.

 Creating customer value and satisfaction are at the

very heart of modern marketing thinking and
practice.

4
 Difference Between - Sales & Marketing ?

Sales:
trying to get the customer to want what the
company produces.

Marketing :
trying to get the company produce what the
customer wants

5
Who is a Customer ??

CUSTOMER IS . . . . .

Anyone who is in the market looking at a

product / service for attention, acquisition,
use or consumption that satisfies a want or a
need

6
 CUSTOMER has needs, wants, demands and
desires

 Understanding these needs is starting point of

the entire marketing

7
 Marketing Mix (4 P)

a) Product
b) Price
c) Place
d) Promotion
 The 4 Ps of Marketing

Marketing
Mix

Place
Product

Price Promotion

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 a. Product is . . . . .

Anything that is offered to the market for

attention, purchase, or use that satisfies a want
or a need

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 a) Product

 traditional economies: same things

produced and consumed
 nowadays:
- products have a life cycle
- product range is always expanded
- find out what target market desires
Types of Products

PRODUCTS

Consumer Industrial
Services
Products Products

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 Some Industries - Service Sector

 Banking,  Health care

 Restaurants,  Education

 Insurance  Wholesaling and

retailing
 News and entertainment  dry-cleaning

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 b) Price
Pricing strategies:
1. Market determines
the price

2. Price as an expression
of quality

3. Price as a method of
gaining market share

back
 c) Place (distribution)
Production site Warehouse Wholesaler

consumer Retailer
back
 d) Promotion
Aims:
 communicate with customers
 influence customers

4 major tools:
1. Sales force
2. Advertising
3. Sales promotion
4. Public relations
 1. Advertising
Presents a reason to buy a product/service

Media:

back
2. Sales promotion
 is a short-term motivation
to buy a product/service

Techniques:

1 price reduction
2. loyalty reward points
3. two for one
 3. Public relations

Does not aim to increase sales directly but

tries to enhancement the image of the
company

Techniques:
- press conferences
- - community events
- charitable events
 The Marketing Plan
 A written document that acts as a
guidebook of marketing activities for the
marketing manager

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CONTENTS of MARKETING PLAN

 Business Mission Statement

 Objectives
 Situation Analysis (SWOT)
 Marketing Strategy
 Marketing Mix
 Product
 Promotion
 Price
 Place – Distribution
Implementation, Evaluation and Control

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The Marketing Process
Business
Mission
Statemen
t

Objective
s

Situation
or SWOT
Analysis

Marketing Strategy
Target Market
Strategy

Marketing Mix
Product Place/Distribution

Promotion Price

Implementation
Evaluation, Control
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Marketing Environment
 All the forces influencing the company’s
ability to conduct business effectively
with it’s target market.
 Market Environment
 Includes:
 Micro-environment - forces close to the
company that affect its ability to serve
its customers.
 Macro-environment - larger societal
forces that affect the whole
microenvironment
 Demographic

Company
Cultural Economic

Public Suppliers
Company
Customers
Competitors Natural
Political
Intermediaries

Technological
 PEST analysis

 Political factors
 Economic factors
 Socio-cultural factors
 Technological factors
 Political/legal
 Environmental protection laws
 Taxation policy
 Employment laws
 Government policy
 Legislation
 Economic Factors

 Inflation
 Employment
 Disposable income
 Energy availability and cost
 Sociocultural factors

 Demographics
 Distribution of income
 Social mobility
 Lifestyle changes
 Levels of education
 Technological

 New discoveries and innovations

 Speed of technology transfer
 Internet
 Information technology