Principles of Marketing

Dina El Tabey
Mariam Abou-Youssef
The Course Objectives
 LEARN PRACTICAL MARKETING
KNOWLEDGE AND PRACTICES
 Module 1 (Day 1)
• Marketing Definition
• STP, Principle of Real World Mktg.
 Module 2 (Day 2 & 3)
• Marketing Tools
• From Online Marketing to Direct Marketing
 Module 3 (Day 4)
• Marketing Program – Workshop
• Learn How To Design a Marketing Program
 Today’s Objectives

 What is marketing?
 STP
 The Marketing Mix
 Principles of real world marketing
 Exercise
 What is Marketing?
 It is not just “selling and advertising”; It is the process
by which companies create value for customers and
build strong customer relationships in order to
capture value from customers in return.

 “The Whole Firm Taken From A Customer

Perspective” Peter Drucker

 EVERYTHING THAT TOUCHES THE CONSUMER

IS MARKETING
 What Marketing Does?
 Reach customers
 Motivate Them To Buy

 Use

 AND REBUY The product

 What Marketers Do?

 Reach customers
 Motivate Them To Buy

 Use

 AND REBUY The product

Marketers Should March To The Drums Of

The Customers
 STP (Segmentation, Targeting
&Positioning)
Market
segmentation
1. Identify bases Target marketing
for segmenting Market positioning
the market. 3. Develop measure
of segment 5. Develop
2. Develop attractiveness positioning
segment profiles (differentiation) for
4. Select target target segments.
segments.
6. Develop a
marketing mix for
each segment.
1. Market segmentation

 Dividing a market into smaller groups

of buyers distinct needs,
characteristics, or behavior who might
require separate products or
marketing mixes
Market segmentation
 Buyers differ in
 Wants
 Resources
 Locations
 Buying attitudes
 Buying practices
 Through market segmentation,
companies divide large, heterogeneous
(different) markets into smaller segments
that can be reached more efficiently and
effectively with products and services that
match their unique needs
Geographic segmentation

 Dividing a market into different

geographical units such as nations,
states, regions, counties, cities or
neighborhoods
 Al-wasset classifieds (maadi)
Demographic segmentation
 Dividing the market into groups based
on demographic variables such as age,
gender, family size, family life cycle,
income, occupation, education, religion,
race and nationality
 Most popular because our needs,
wants and usage rates depend on the
demographics
Age and life cycle
segmentation
 Dividing a market into different age and
life cycle groups
 Kids (corn flakes), adults, magazines
(teen stuff)
Gender segmentation
 Dividing a market into different
groups based on gender
 Clothing, cosmetics, perfumes
 Income segmentation

 Dividing the market into different

income groups
 Cars, financial services
Psychographic
segmentation
 Dividing a market into different groups
based on social class, lifestyle or
personality characteristics
Behavioral segmentation
 Dividing a market into groups
based on consumer knowledge,
attitude, use, or response to a
product
 Occasion segmentation

 Dividing
the market into groups
according to occasions when
buyers get the idea to buy
 Behavioral segmentation
(cont’d)
 Benefit sought segmentation
 Dividingthe market into groups
according to the different benefits
that consumers seek from the
product (detergent)
Using multiple segmentation
bases
 Using multiple segmentation bases in
an effort to identify smaller, better
defined target groups
Requirements for effective
segmentation
 Measurable
 Accessible

 Differentiable (segment is unique)

 Actionable (can perform marketing

mix to reach this segment)
 STP
Market
segmentation
1. Identify bases
for segmenting Target marketing
the market. Market positioning
3. Develop measure
2. Develop of segment 5. Develop
segment profiles attractiveness positioning
(differentiation) for
4. Select target target segments.
segments.
6. Develop a
marketing mix for
each segment.
Target marketing

 The process of evaluating each

market segment’s attractiveness and
selecting one or more segments to
enter
Evaluating market segments
 Segment size
 Growth

 Segment attractiveness

 Company objectives and resources

 Competitors

 Buying power

 Supplier power
 Selecting target market
segments
 Target market
 A set of buyers sharing common needs or
characteristics that the company decides to
serve
 Targeting Strategies

Undifferentiated Strategy Concentrated (niche) Differentiation Strategy

Strategy
One marketing mix for the Two marketing mix and 2
whole market One marketing mix and different segment
one segment

Chipsy BMW
 STP
Market
segmentation
1. Identify bases
for segmenting Target marketing
the market. Market positioning
3. Develop measure
2. Develop of segment 5. Develop
segment profiles attractiveness positioning
(differentiation) for
4. Select target target segments.
segments.
6. Develop a
marketing mix for
each segment.
Product positioning

 The way that product is defined by

consumers on important attributes -
the place the product occupies in
consumer’s minds relative to
competing products
 Perceptual Positioning Map for
Automobiles
Stylish, prestigious, distinctive

Mercedes 400SE
Volvo 850R
• • Porsche 914 •
TM3 TM2
Chrysler LHS • • Lexus LS400
Buick Park Avenue •
Oldsmobile L35 • • Acura
• Jeep Grand Cherokee
Integra
Honda Accord •
Staid, • Ford Saturn
Taurus
SC2 •
Fun,
conservative, sporty,
older fast
Nissan Sentra •
Plymouth Voyager • • Honda Civic TM1
Dodge Caravan •
Dodge Neon•

Geo Metro •
Kia Sephia •
Practical, common, economical
Developing the marketing
mix
 Marketing mix: the set of controllable
tactical marketing tools: product,
price, place and promotion that the
firm blends to produce the response it
wants in the target market
Consumer
Principles of Real
products
World Marketing
Principles of Real World
Marketing
 Your Customers Aren’t Listening To
You
 Everybody Else Is Shouting At Your
Customers
 The Rest Of Your Organization thinks
you are crazy BUT
 You Cant execute your program
without the rest of the company
Principles of Real World
Marketing
 The More You Give; The More You Get
 Being Good Is Never Good Enough;
You Have To Be Better
 Marketing Should Be The Most Creative
and Most Logical Part Of Your Business
 Everything Is Marketing
Integrated Marketing
Communications (IMC)
 The concept under which a company
carefully integrates and coordinates
its many communications channels to
deliver a clear, consistent, and
compelling message about the
organization and its products
IMC
Marketing communications mix
- promotion mix
 The mix of
 Advertising
 Personal selling
 Sales promotion
 Public relations
 Direct Marketing

 That the company uses

a. Advertising
 Any paid form of non-personal
presentation and promotion of ideas,
goods, or services
 Advertising tools
 Print (newspapers, magazines)
 TV
 Radio
 Outdoor
 Online
1. Setting advertising
objectives
 A specific communication task to be
accomplished with a specific target
audience during a specific period of
time
 Objectives
 Informative (new product category)
 Persuading (when competition
increases, comparative advertising,
comparative advertising AUDI ad)
 Reminding (coca cola, Pepsi)
2. Developing advertising strategy
a. Creating advertising messages
 Message execution
 Slice of life: one or more “typical” people
using the product in a normal setting.
Samna and Oil ads)
 Lifestyle: how a product fits in with a
particular lifestyle. Nescafe
 Fantasy: creates fantasy around the
product or its use. Galaxy (girl in the big
chair), 7up tropical
 Musical: one or more people or cartoon
characters singing about the product.
(Sunsilk)
 Message execution
 Technical expertise: shows the
company’s expertise in making the
product. Chipsy
 Scientific evidence: presents surveys
or scientific evidence that the brand is
better or better liked than one or more
other brands. Crest and the egg ad
 Testimonial evidence or endorsement
Highly believable or likeable source
endorsing the product –Celebrity-
Nancy Agram
 2. Developing advertising strategy
b. Selecting advertising media

 Deciding on reach, frequency

 Reach: measure of the percentage of people in
the target market who are exposed to the ad
campaign during a given period of time
 Frequency: measure of how many times the
average person in the target market is
exposed to the message
Choose Your Media Type

 Question
 How to choose the best medium?
 Answer
 Whatever Works for your campaign and
reaches your target market
• Primary Medium
• Secondary Medium
• Spread your budget equally on more than
one medium
 Profiles of major media types
Medium Advantages Limitations
Print - Flexibility; timeliness; good local market Short life; poor production
Newspaper coverage; broad acceptability; believability quality

Television Good mass-market coverage; low cost per
exposure; combines sight, sound, and motion;
appealing to the senses
Radio Good local acceptance; high geographic and
demographic selectivity; low cost
High absolute cost; high clutter;
less audience selectivity
Audio only; low attention (“half
heard”); fragmented audiences

Print - High geographic and demographic selectivity; high cost; no guarantee of

credibility and prestige; quality production; position
Magazine long life; good pass-along
Outdoor Flexibility; high repeat exposure; low cost; low Little audience selectivity;
message competition; good positional creative limitations
selectivity
Online High selectivity; low cost; immediacy; Small, demographically skewed
interactive capabilities audience; low impact; audience
controls exposure
Print Advertising (Newspapers,
Magazines)
 Most Advertisers budget more for print than any other
media
 Works mainly to promote sales promotions
 Anatomy:
 Headline
 Sub headline
 Copy – choose the font that serves the message
 Visual
 Caption
 Trademark
 Signature
 Slogan
Exercise

 Each Team chooses a print ad from the

newspaper or magazine and analyze it
Television

 Used When You Need To Evoke

Emotions – surprise, anxiety,
excitement, happiness, …
Radio
 Rely On Sounds – choose cool sound
effect, interesting voice, catchy
musical phrase, …
 Choose One Strong Idea
 Talk To Your Market Right Away – i.e.
if you want to advertise for salon’s
service; start right away with ex. :”not
another bad hair day”
Outdoor – Billboards,
Banners and Signs
 It must be read in a hurry
 It is geographically specific
 It directs people to your business location
 Placing it in front of competitor location IS
SMART 
 Design should include 2 main sections: 1-
Header to catch attention from far, 2-
essential information
Outdoor – Billboards,
Banners and Signs
 Forms:
 Vinyl
 Hand Painted
 Wood
 Metal
 Light Boxes
 Electronic Display
Online Advertising
 Types:
 Website = company brochure
 Banner Ads = billboard where you use
your logo, one simple message and
max. couple lines of body copy

 N.B
• Refresh Your Content Regularly
• Deliver fascinating and attractive content
Other Forms of Indirect
Advertising
 Point Of Purchase POP
 Flags
 Danglers
 Roll ups & pop ups

 Word Of Mouth
 Virtual WOM
 Face To Face
b. Sales promotion

 Short-term incentives to encourage

the purchase or sale of a product or
service
Major sales promotion tools for
consumers
 Sample: a small amount of a product
offered to customers for trial. (perfumes)
 Coupon: certificate that gives buyers a
saving when they purchase a specified
product
 Price off (cents-off deal): reduced price
that is marked by the producer directly on
the label or package. (10 instead of 12)
 Premiums: prizes, gifts consumers receive
when purchasing products. (shampoo with
shower gel, vodafone)
Major sales promotion tools for
consumers (cont’d)
 Contests and sweepstakes
 Contests: solve questions and you win
something (who would win the million)
 Sweepstakes: depend on luck

 Bonus packs: additional or extra

number of items is placed in a special
product package (3 with price of 2,
20%extra)
Major sales promotion tools for
trade
 Discount: a straight reduction in price
on purchases during a stated period
of time
 Allowances: promotional money paid
by manufacturers to retailers in return
for an agreement to feature the
manufacturer's products in some way
c. Public relations
 Building good relations with the company’s
various publics by obtaining favorable publicity,
building up a good “corporate image”, and
handling or heading off unfavorable rumors,
stories, and events
 It is unpaid advertising
 PR tools
 Press releases
 Sponsorships (Mc Donald’s and the hospital
53753)
 Special events (Vodafone and the charity
complex)
d. Personal selling

 Personal presentation by the firm’s

sales force for the purpose of making
sales and building customer
relationships
 Personal selling tools
 Personal presentation
 Trade shows (exhibitions and fairs.
Le marche)
e. Direct marketing

 Direct communications with carefully

targeted individual consumers-the use
of telephone, mail, fax, e-mail, the
internet, and other tools to
communicate directly with specific
consumers
 Direct marketing
 Sending catalogues
 Telemarketing
Push strategy

 A promotion strategy that calls for

using the sales force and trade
promotion to push the product through
channels.
 The producer promotes the product to
wholesalers, the wholesalers promote
to retailers, and the retailers promote
to consumers
Pull strategy

 A promotion strategy that calls for

spending a lot on advertising and
consumer promotion to build up
consumer demand.
 If the strategy is successful,
consumers will ask their retailers for
the product, the retailers will ask the
wholesalers, and the wholesalers will
ask the producers
Push Vs Pull strategy
1. Affordable method

 Setting the promotion budget at a

level management thinks the
company can afford
2. Percentage of sales
method
 Setting the promotion budget at a
certain percentage of current or
forecasted sales or as a percentage of
unit sales price
3. Competitive-parity method

 Setting the promotion budget to match

competitors’ outlays
 Get Data from reports such as PARC
 Mobinil and Vodafone
 Pepsi and coca cola
4. Objective and task
method
 Developing the promotion budget by
 Defining specific objectives
 Determining the tasks that must be
preformed to achieve these objectives
 Estimating the costs of performing
these tasks
 The sum of these costs is the
proposed promotion budget