Marketing Aspects and Principles

Objectives History of marketing Define marketing Discuss the importance of Marketing Marketing process Describe components of a Marketing plan Provide keys marketing concepts

Historical background 19th century : 1 market Limited products 20th century

What is marketing? • “identifying and satisfying consumer needs”

What are Consumers’ Needs, Wants, and Demands?

This Is a Need Needs - state of felt deprivation including physical, social, and individual needs.

Types of Needs Physical: Social: Spiritual Food, clothing, shelter, safety Social: Belonging, affection Spiritual ( ISLAM)

This Is a Want Wants - form that a human need takes, as shaped by culture and individual personality.

This Is Demand Wants Buying Power “Demand”

MARKETING UR LIFE

Game

Why do it? 􀁺 Approximately 80% of new products and businesses fail within three years after they reach the market

Why Businesses Fail (The 3 Ms) 􀁺 Money - sufficient operating capital and cash flow Management - skills and experience Marketing - knowing and accessing your customer

Basic definitions Advertising Promotion Publicity Public Relation (PR) Sales Marketing Circus example

Overlapping concepts The selling concept The marketing concept

• The selling concept:  “Consumers will not buy enough of your product if you leave them alone” Focus nokia

 “Foundation = market = people = needs” • The marketing concept:  “Foundation = market = people = needs” Integrating all the organization’s activities, including promotion, to satisfy these wants. Focus

Marketing conception focuses on needs and goals rather than products Product Market oriented oriented 7up “ A bottle containing “Obey your thirst” a drink “ Danon “ our product is healthy” “ Fat vs Thin “ Carrier “ our AC is durable” A story

What are examples of good [bad] marketing? McDonald's vs Jollibie BAD • Commercials that don’t tell you what the product is • Boring song (Amazon’s commercial) Commercial in the middle of a classic film segment

Capture value from customers in return A Simple Model of the Marketing Process Needs , wants , demands Exchange and transaction Products Value , cost & satisfaction Capture value from customers in return Marketers and prospects Markets

Capture value from customers in return A Simple Model of the Marketing Process Exchange and transaction Needs , wants , demands Products Value , cost & satisfaction Capture value from customers in return Marketers and prospects Markets

Product as an Idea Products do not have to be physical objects. Here the “product” is an idea—protecting animals.

Marketing Myopia Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. They focus on the “wants” and lose sight of the “needs.”

Capture value from customers in return A Simple Model of the Marketing Process Exchange and transaction Needs , wants , demands Products Value , cost & satisfaction Capture value from customers in return Marketers and prospects Markets

Value and Satisfaction Expectation Performance 10 8 Expectation Performance 8 10 Overall value = Benefits / costs

Capture value from customers in return A Simple Model of the Marketing Process Exchange and transaction Needs , wants , demands Products Value , cost & satisfaction Capture value from customers in return Marketers and prospects Markets

Exchange & Transaction Act of obtaining a desired object from someone by offering something in return. A trade of values between two parties. One party gives X to another party and gets Y in return. Can include cash, credit, check, or barter.

Capture value from customers in return A Simple Model of the Marketing Process Exchange and transaction Needs , wants , demands Products Value , cost & satisfaction Capture value from customers in return Marketers and prospects Markets

What is a Market? The set of actual and potential buyers of a product. These people share a need or want that can be satisfied through exchange relationships.

Capture value from customers in return A Simple Model of the Marketing Process Exchange and transaction Needs , wants , demands Products Value , cost & satisfaction Capture value from customers in return Marketers and prospects Markets

Marketers and Customers Marketer types: - Creative marketer Responsive marketer Customer types: Potential customer Actual customer

GAME

Components of a Marketing Plan