Principles of Marketing

Dina El Tabey Mariam Abou-Youssef

The Course Objectives


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 ³selling 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. ³The 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 for segmenting the market. 2. Develop segment profiles Target marketing 3. Develop measure of segment attractiveness 4. Select target segments. Market positioning 5. Develop positioning (differentiation) for target 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

a market into groups based on consumer knowledge, attitude, use, or response to a product Occasion segmentation 

the market into groups according to occasions when buyers get the idea to buy

Behavioral segmentation (cont¶d)

sought segmentation 


the 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)

Market segmentation 1. Identify bases for segmenting the market. 2. Develop segment profiles Target marketing 3. Develop measure of segment attractiveness 4. Select target segments. Market positioning 5. Develop positioning (differentiation) for target 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 One marketing mix for the whole market

Concentrated (niche) Strategy One marketing mix and one segment BMW

Differentiation Strategy Two marketing mix and 2 different segment


Market segmentation 1. Identify bases for segmenting the market. 2. Develop segment profiles Target marketing 3. Develop measure of segment attractiveness 4. Select target segments. Market positioning 5. Develop positioning (differentiation) for target 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
Volvo 850R Chrysler LHS

‡ ‡


Mercedes 400SE Porsche 914


Staid, conservative, older

‡ Lexus LS400 Buick Park Avenue ‡ ‡ Jeep Grand Cherokee Oldsmobile L35 ‡ ‡ Acura Integra Honda Accord ‡ Taurus Fun, ‡ Ford Saturn SC2 ‡
Nissan Sentra


‡ ‡ Honda Civic Dodge Neon‡

sporty, fast

Plymouth Voyager Dodge Caravan

‡ ‡ ‡ ‡

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


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 ³typical´ 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 ±CelebrityNancy 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


How to choose the best medium? 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
Flexibility; timeliness; good local market coverage; broad acceptability; believability Good mass-market coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses Good local acceptance; high geographic and demographic selectivity; low cost High geographic and demographic selectivity; credibility and prestige; quality production; long life; good pass-along Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity High selectivity; low cost; immediacy; interactive capabilities

Short life; poor production quality High absolute cost; high clutter; less audience selectivity Audio only; low attention (³half heard´); fragmented audiences high cost; no guarantee of position Little audience selectivity; creative limitations Small, demographically skewed audience; low impact; audience controls exposure

Print Newspaper Television Radio Print Magazine Outdoor Online

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


Each Team chooses a print ad from the newspaper or magazine and analyze it


Used When You Need To Evoke Emotions ± surprise, anxiety, excitement, happiness, «

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: 1Header to catch attention from far, 2essential information

Outdoor ± Billboards, Banners and Signs

Vinyl  Hand Painted  Wood  Metal  Light Boxes  Electronic Display 

Online Advertising

Website = company brochure  Banner Ads = billboard where you use your logo, one simple message and max. couple lines of body copy 

‡ 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 ³corporate 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

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