Ass. Prof. Dr. Özgür KÖKALAN İstanbul Sabahattin Zaim University

Chapter Objectives 1. Identify the concept of marketing 2. Explain marketing planning and marketing reserach 3. Identify the two basic market, sellers market and buyers market 4. Identify the two basic buyers; consumers, and business (B2B) buyers 5. Explain what marketing mix is 5-2

What Is Marketing? All activities directed toward identifying and satisfying customer needs and wants through a process of exchange. Other definition, The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives

The selling concept starts with the existing products in the factory and calls for heavy selling and promotional efforts to accomplish profitable sales. Inthat sense the selling concept has an inside-out perspective. Marketing concept has outside-in perspectives. It begins with a clearly-defined market. It focuses on the customer needs, coordinates all marketing activities (product and service creation, distribution, pricing, promotion) to obtain profits by establishing long-term customer relationships based on theirvalue and satisfaction.

Marketing Planning Marketing planning involves implementing the planning activities to achieve the marketing objectives. Product mixes or lines, distribution channels, pricing decisions, promotional activities will be formulated based on marketing planning.

Marketing Research Marketing research involves collecting and using information for making marketing decisions. Marketing research can reduce the risks and uncertainty to increase the possibility of success of marketing decisions. Therefore, research is very essential for the marketing managers who make the final marketing decisions..

Marketing Research Process 1. Defining the research objectives. In this stage, the marketing manager and the researchers work together to define the purpose of the study. 2. Developing the research plan. This plan outlines the sources of information, research approaches, contact methods and necessary instruments to be used to gather information. 3. Identifying the information. In this step, researchers gather secondary and primary data to be utilized in marketing. 4. Implementation stage of the marketing research process

Markets Market is a place where people or organizations with sufficient purchasing power, authority and willingness to buy and sell meet. There must be a buyer and a seller in the marketplace. Both of them should be willing to buy and sell a specific product.

A market with product shortages is called a seller’s market. In this type of market products supplied are less than the demand in the market and that gives the sellers the ability to set prices that enable them to get higher incomes. In a buyer’s market there is an adequate or excess number of supplies and products that enable the customers to choose among the variety of products with competitive prices.

Buyers Markets can be classified as consumer or business markets. Consumer Market: a consumer market is a market made up by all individuals and households who purchase goods and services for their personal consumption. Business Market (B2B); Business markets are those markets for products and services that are purchased by all types of organizations for use in manufacturing process, for resale or renting to others at a profit, and for consumption

Consumer Market Segmentation Consumer product markets can be segmented based on the characteristics of the individuals, groups or organizations. To segment the consumer product markets, managers use the following characteristics. Geographic segmentation refers to segmenting markets by region of the country or world. Demographic segmentation is the division of consumer markets according to demographic variables suchas age, gender, ethnic background, income.

Psychographics segmentation is another method to segment the consumer markets based on the characteristics such as personality, motive, lifestyle. Geo-demographic segmentation is a multivariable segmentation that clusters consumers based on the neighborhood lifestyle categories. It combines geographic, demographic and psychographics segmentations. Usage rate segmentation divides the consumer markets based on the frequency and amount of products bought or consumed such as nonuser, former user, potential user, heavy user. Benefit segmentation is the method of dividing the markets based on the benefits customers seek from the product such as nutrition, health, good taste, economical, weight loser.

Consumer Behaviour Consumer behavior relates to the actions an individual takes in purchasing and using products and services. There are many factors affecting consumer behaviour. These are: Motivation and personality, perception, learning, values, beliefs, attitudes and lifestyle are very useful for understanding the buying process. These concepts are some of the psychological factors that influence the behavior of the consumer Socio-cultural factors. Other people’s opinions and views Family Social class

Consumer Purchasing Decision Process Consumers are involved in a step-by-step process to make their purchasing decisions. The length of time and amount of effort they devote in the purchasing process is dependent on the importance of the desired goods and services. All consumers pass through a similar six-step purchasing decision process in every purchasing action. But If you buy a product or services frequently, you can pass most of the steps

Purchasing Decision Process The steps are as follows: 1. Problem or opportunity recognition: In the first step, a consumer recognizes a problem or need for a product or service. 2. Search: The consumer gathers information related to the attainment of a desired state or product and service needed. 3.Evaluating the alternatives: The consumer evaluates the alternatives based on the findings reached during the search process. In this stage, the consumer should develop a set of evaluative criteria to guide selection.

4. Purchase decision: After evaluating each alternative, a consumer makes a decision for the purchase. The store, brand, facilities will be determined based on the personal evaluative criteria. 5. Purchase act: After the eventual purchase decision, the consumer makes the act of purchasing. 6. Post-purchase evaluation: In this stage, the buyer feels satisfaction or dissatisfaction with the purchase determined by the product or the service meeting his expectations.

Business (B2B) Markets Business markets are those markets for products and services that are purchased by all types of organizations for use in manufacturing process, for resale or renting to others at a profit, and for consumption. They consider and are involved in all non-retail and non-consumer goods sales. Consumer goods are sold to individuals but business market customers are organizations such as business firms, governments and institutions.

Business Buyers Behaviour 1. Recognition of a problem or need and a general solution, 2. Determination of characteristics and quantity of needed item, 3. Description of characteristics and quantity of needed item, 4. Search for and qualification of potential sources, 5. Acquisition and analysis of proposals, 6. Evaluation of proposals and selection of supplier, 7. Selection of order routine, 8. Performance feedback and evaluation.

Marketing Mix A marketing mix that blends the four important marketing elements product, pricing, promotion and distribution to fit the needs and preferences of the target market. It is also called as 4p’s Product Price Place (Distribution) Promotion A particular combination of these elements best fits the target market needs determines the marketing success of the organizations.