Basic Concepts

Market: a group of people

who, either as individuals or
as groups (organizations),
have needs for a product, or
a service and who have the
ability, willingness, and
authority to purchase such a
product or service.
!7oduct
!roduct: a good a service, an idea, or any
combination of these three. t is everything
that one receives in an exchange; it is a
bundle of tangible and intangible features
including functional, social, psychological,
and aesthetic benefits or benefits.
!7oduct-Ma7et St7ategy

Market !enetration !roduct Development

Diversification
!roduct
!resent
New
!resent
New
M
a
r
k
e
t
Market Development
Benefits de7ived by consuming a p7oduct o7 se7vice Benefits de7ived by consuming a p7oduct o7 se7vice
. Functional benefit . Functional benefit
2. Social benefit 2. Social benefit
3. !sychological benefit 3. !sychological benefit
4. Aesthetic benefit 4. Aesthetic benefit
#iss invoIved in consuming o7 using a p7oduct #iss invoIved in consuming o7 using a p7oduct
. Financial Risks
2. Social Risks
3. !sychological Risks
4. !hysical Risks
Custome7 vs. Consume7 Custome7 vs. Consume7
ustomer
Who purchases either for use or for resale.
Trade customers are engaged in whole selling or
retailing.
onsumer
. onsumers can be individuals, or households, or
organizations/institutions.
2. Who consumes or uses a product or service.
3. A customer may become a consumer if s/he
purchases and consumes a product or service.
at is Consume7 Beavio7 at is Consume7 Beavio7
u>vmr h=v+r +> = >fvd,
+ud+v+dv=l>. zrv,> r
rz=u+=f+u> =ud fh ,r>>>
fh, v> f >lf. >vr. v>.
=ud d+>,> ,rdvf>. >rv+>.
x,r+u> r +d=> f >=f+>,
ud> =ud fh +m,=f> fh=f fh>
,r>>> h=v u fh u>vmr =ud
>+f,.
CIassification of !7oducts/se7vices CIassification of !7oducts/se7vices
[Based on Social Dimensions] [Based on Social Dimensions]
Socially exposed products (expressive
products)
Socially neutral products
Socially sensitive products
CIassification of !7oducts/!u7cases CIassification of !7oducts/!u7cases

ow involvement: High involvement:

Frequently purchased Infrequently purchased
Low price-tag High price-tag
Non-durable Durable
Not socially exposed Socially exposed
Low risks High risks
%ypes of p7obIem soIving o7 decision %ypes of p7obIem soIving o7 decision
maing maing
!roblem type
haracteristics
Routine problem imited problem Extended problem
Frequency of
purchase
High Moderate ow
Extent of
search
No or
extremely
limited
imited Extensive
nvolvement ow Medium High
Ma7eting: Steps invoIved
. dentify the needs & requirements
2. Design a product or service
3. ommunicate with the customers
4. Make the service or product available
5. Fix a price
6. !rovide post-sale support service & do
follow-up
%ypes of UtiIity C7eated by Ma7eting
. Form or conversion utility
2. !lace utility
3. Time utility
4. !ossession or ownership utility
B7oad Ma7eting St7ategies
!roduct strategy
!romotion strategy
Distribution strategy
!ricing strategy
%e Decision Maing Unit
W nitiator
W nfluencer
W Decider
W !urchase
W &ser or onsumer
Stages at wic pu7case
decisions a7e taen
!re-purchase
2. !urchase
3. !ost-purchase
4. &se
5. !ost-use
ist of %opics
ncreasing number of restaurants in Dhaka city
2. ncreasing number of non-store retailers of consumer durable
3. &se of FM Radio in by consumers of Rural Bangladesh
4. hanging household structures
5. ncreasing number of hawkers
6. ate marriage among the educated adults
7. ncreasing urbanization
8. Availability of foreign made goods
9. Availability of read-made garments
. Scarcity of household helps (maids)
. ncreasing price levels of essential commodities
2. ustomers' perception of local products
3. ustomers' perception of foreign made goods
4. &se of preservatives/chemicals on perishable food items
5. Growth of large scale retailing in Dhaka city
6. &se of satellite TV on consumer behavior