Marketing Anesh Maniraj Singh

The Rookie 5

Homework What Marketing mistakes did you make in this exercise? Describe your target market for the product/service you were selling? What approach did you take towards your market?

Homework What is consumer behaviour? How would you describe your target market in terms of their behaviour characteristics? What did your group do to ensure the success of your product/service?

What is marketing?

Business Functions Marketing Finance Information Production Systems Organisation Finance Production Human Resources Information Systems Marketing

Marketing Activities Marketing Advertising Sales Research Customer Service

Marketing - Definition Marketing is the art of determining the customers wants and needs, and developing satisfaction in the form of products and services, whilst making a profit. Philip Kotler

The Marketing Equation Profit + Need Identification Need Satisfaction =

How do people acquire products?

Markets and Industries A Market refers to Groups of people Willing and able to exchange money Buy goods and services An Industry refers to Groups of businesses Willing and able to sell goods and services In exchange for money

Approaches to the Market Needs of the Seller Production approach Product approach Selling approach Needs of the Buyer Marketing approach Societal marketing Relationship marketing Electronic marketing Social network marketing Holistic Approach

Marketing Consumer Behaviour

Definition Consumer Behavior is the study of Seeks to answer The mental and social processes and actions a consumer takes preceding and following the purchase and use of products and services Seeks to answer Who? Where? When? Why? How much?

Factors that Affect Consumer Behavior Cultural Factors Religious beliefs, values, norms Socio-cultural Factors Relationships with others Psychological Factors Personality, perception, motivation Personal Factors Age, family size, affordability Marketing Mix Factors Product, Price, Place, Promotion

Psychological Factors

Buying Decision Process

Marketing The Marketing Mix

The Marketing Mix Product Price Promotion Place Target Market

Marketing Mix Product

Anatomy of a Product

Product Life Cycle Time Sales

Why do new products fail? Poor quality Poor advertising and support Doesn’t match claims High production costs Poor timing of launch Not meeting the needs of consumers

Marketing Branding

What is a Brand? A name, symbol, term or sign that identifies the products of one manufacturer from another Brands help consumers differentiate between similar products

Barrier to competition Why Brand? Branding Differentiation Familiarity Build trust Build loyalty Barrier to competition Prevents switching Premium price Lower marketing costs Brand Equity

Effective Brand Names Easy to Say Easy to Spell Easily remembered Free of ambiguity/negative connotations Should not be used by another party Communicates the product use/benefit

Beware …

Marketing Mix PRICE

Pricing Objectives Profit Sales Status Quo

Basic Principle Cost Price Volume Main consideration is cost recovery Cost Based – cost plus pricing

Pricing Strategies Price Penetration Price Skimming Status Quo Pricing Intended for products with a long life cycle Introduction price is low Gradual increase in price Price Skimming Intended for products with short life cycle Introduction price is very high Gradual decrease to get rid of stocks Status Quo Pricing

Pricing Tactics One Price Policy Variable Pricing Flexible Pricing Odd/Psychological Pricing Bundle Pricing Freemium Pricing Leader Pricing Bait & Switch Pricing

Marketing Mix PLACE

Importance of Channels Specialisation & Division of Labor Overcoming Discrepancies Contact Efficiency

Distribution Channels M A N U F C T R E C O N S U M E R Retailer Retailer Wholesaler Retailer Wholesaler Agent

Retail Location Location Market Size Suppliers Competitors Visibility Accessibility Parking Costs Crime

Three secrets for success Location Population 5 million

Marketing Mix Promotion

Promotion Personal Selling Direct Marketing Telesales, Catalogue Sales, Television Shopping, Internet Shopping Publicity Sponsorships, Press Conferences, Consumer Endorsements Sales Promotion Coupons, demonstrations, prizes, loyalty rewards among others Advertising TV, radio, billboards, newspapers etc.

Preferred means of communication Objectives of Advertising Mass communication Relatively cheap It is informative Preferred means of communication To inform – new products, price changes To persuade – competitive advertising To remind – keep product in consumers mind Objectives of Advertising

Five M’s of Advertising Mission Money Media Message Measurement

Modern Media E-mail Advertising Website Advertising Mobile Advertising Social Network Advertising

Problems with Advertising It is intrusive Can be false or grossly exaggerated It is one way only Can suffer from non-delivery May not promote immediate action