Introduction to Marketing Strategies 12(Chapter 11 in the book) Chapter Introduction to Marketing Strategies Course: BUS 101 Lecturer: Emran Mohammad (Emd)

Marketing is “an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Exchange process: activity in which two or more parties give something of value to each other to satisfy perceived needs.

How Marketing Creates Utility Time utility is created by making a good or service available when customers want to purchase it. Place utility is created by making a product available in a location convenient for customers. Ownership utility refers to an orderly transfer of goods and services from the seller to the buyer.

Emergence of the Marketing Concept 2009

Expanding Marketing’s Traditional Boundaries: Not-for-Profit Marketing: Marketing campaign by not-for-profit organizations Not-for-profit organizations conduct major marketing campaigns. The Susan G. Komen Breast Cancer Foundation holds races and walks around the country to raise funds for research for a cure.

Expanding Marketing’s Traditional Boundaries: Nontraditional Marketing

Nontraditional Marketing Person Marketing Efforts designed to attract the attention, interest, and preference of a target market toward a person are called person marketing

Nontraditional Marketing Place Marketing: Marketing campaigns to attract people to a particular area, such as a city, state, or nation. E.g. incredible india campaign to promote India,

Nontraditional Marketing Event Marketing: Marketing or sponsoring short-term events such as athletic competitions and cultural and charitable performances is known as event marketing.

Nontraditional Marketing Cause Marketing: Marketing that promotes a cause or social issue, such as preventing child abuse, antilittering efforts, and antismoking campaigns, is cause marketing. E.g. anti smoking, anti drugs campaign, clean india campaign

Nontraditional Marketing Organization Marketing: Marketing campaign which influences consumers to accept the goals of, receive the services of, or contribute in some way to an organization. E.g. Army, Navy, Airforce, Red-cross

Developing a Marketing Strategy

Types of Products in Market Consumer products or B2C products: goods or services that are purchased by an end user. i.e. Shampoo, DVD, Dental care Business products or B2B products: goods or services purchased to be directly or indirectly used in the production of another goods or services for resale. i.e. buying petroleum to manufacture petroleum jelly

Target Market An organization’s target market is the group of potential customers toward whom it directs its marketing efforts. Customer needs and wants vary considerably, and no single organization has the resources to satisfy everyone. i.e. Forbes is geared toward businesspeople and consumers who are interested in business, while Vogue is aimed at people who are interested in fashion.

Marketing Mix or 4Ps Marketing mix: blending the four elements of marketing strategy—product, distribution, promotion, and pricing—to satisfy chosen customer segments. Product strategy involves more than just designing a good or service with needed attributes. It also includes decisions about package design, brand names, trademarks, warranties, product image, new-product development, and customer service.

Marketing Mix or 4Ps Pricing strategy sets profitable and justifiable prices for the firm’s product offerings Place or Distribution Strategy ensures that customers receive their purchases in the proper quantities at the right times and locations. Promotional strategy effectively blends advertising, personal selling, sales promotion, and public relations to achieve its goals of informing, persuading, and influencing purchase decisions.

Market Research Marketing research: collecting and evaluating information to support marketing decision making. Obtaining Market Research data: Internal Data: gather data from within the organization External Data: gather data from outside sources Primary Data: gathering data from observing or interviewing people and from discussion in a focus group Secondary Data: gathering previously published data

Market Segmentation Market segmentation is the process of dividing a market into several relatively homogeneous groups.

Segmenting Consumer Markets Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation

Segmenting Consumer Markets Geographic segmentation divides the market into different geographical units such as nations, regions, provinces, parishes, cities, or even neighborhoods. Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.

Segmenting Consumer Markets Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics. Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product.

Segmenting Business Markets

Steps in the Consumer Behavior Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision and Purchase Act Post Purchase Evaluation