Problem Solving Introduction to marketing concepts

Rules of the Game Workshop Rules Stay involve d Keep your time Take notes Turn off your mobile phone

Learning methods

Lets’ communicate and get Your Expectations

Marketing What you’ll learn... What is marketing? What is the marketing mix? What does it involve?

Module 1 About Marketing

Marketing in the 21 century WHY

What is marketing? Marketing… Marketing… –is not ADVERTISING –is not SELLING –is not PROMOTION “The aim of marketing is to make selling unnecessary.” Peter Drucker (1973) “The aim of marketing is to make selling unnecessary.” Peter Drucker (1973)

What is marketing? Businesses need to sell products if they are to achieve their objectives. Businesses need to sell products if they are to achieve their objectives. Marketing is about ensuring that businesses can sell as many products as possible in order to make profits. Marketing is about ensuring that businesses can sell as many products as possible in order to make profits.

What does it involve? Marketing is a very complex concept. Marketing is a very complex concept. It involves: It involves: – Research – Product design – Setting prices – Making sure the customer knows about products – Choosing how and where to sell products

Why is it needed? Each year millions of new products are launched: Each year millions of new products are launched: Without careful marketing these products would fail

“Marketing is the science and art of exploring, creating and delivering value to satisfy the needs and wants of a target market maintaining loyalty at a profit.” Professor Philip Kotler

NeedsEat, Dress, Move Wants Cheeseburger, Tuxedo, Car Marketer

This Is Demand “Demand” Wants Buying Power

First Task: Detect Needs

Organization’s marketing department Discover consumer needs Information about needs Potential consumers: The market Marketing’s first task: discovering consumer needs

What is a Market? Potential consumers make up a market, which is: 1.People 2.with the Desire and 3.with the Ability to Buy a specific product.

Organization’s marketing department Concepts for products Discover consumer needs Information about needs Potential consumers: The market Satisfy consumer needs Find the right combination of: Product Price Promotion Place Goods, services, ideas Marketing’s Second Task: Satisfying Consumer Needs Marketing’s Second Task: Satisfying Consumer Needs

The Target Market Because the organization Because the organization obviously can’t satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers. This is the target market -- one or more specific groups of potential consumers toward which an organization directs its marketing program.

Inactive or ex-customers Customer Development PartnersAdvocatesClients Repeat customers First-time customers Suspects Prospects Disqualified prospects

Marketing Vs Sales Is there a difference?

The Marketing concept Organizations must concentrate on the customer and not the product or the company. Organizations should revolve round the customer and not the other way around. The purpose of a business is to create and keep a customer

Focuses on matching your product or service features and benefits in a way that suits the prospect. sales process is any thing that you do to close the sale and get signed agreement or contract. It is ant thing that engages you with the prospect or customer on a personal level rather than at a distance. The selling concept

The major role of marketing and selling People DO NOT buy products people buy

Module 2 Marketing Management

Building Customer Relationships

Relationship Marketing Relationship marketing is linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. Mutual long-term benefits between the organization and its customers require links to other vital stakeholders-- including suppliers, employees, and “partners” such as wholesalers or retailers in a manufacturer’s channel of distribution.

How Marketing became so important?

Production era Sales era Marketing concept era SocietalMarketing era Four different orientations in the history of North American business

The Marketing Mix The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment Traditional 4Ps extended to cope with today's changing environment Traditional 4Ps extended to cope with today's changing environment

The Marketing Mix

Product

Product The firm must come up with a product or service that people will want to buy. The firm must come up with a product or service that people will want to buy. It must fulfil some need It must fulfil some need or want. It must be (or at least seem) unique. It must be (or at least seem) unique.

Product Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g. Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g. –Extension strategies –Specialised versions –New editions –Improvements – real or otherwise! –Changed packaging –Technology, etc. Image copyright:

Product Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g. Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g. –Extension strategies –Specialised versions –New editions –Improvements – real or otherwise! –Changed packaging –Technology, etc. Image copyright: Activity 1

Product or service or brandCore ProductActual Product Augmented Product BMWFreedom to travelA motor car Sheraton RoomsRoom service Egypt Air FlightAn airline journey Zamalek Football Club Excitement and leisure T-shirts – photos with players ALICOInsurance policyFinance UNIONAIR CoolingWarranty

Price

Price Pricing Strategy Pricing Strategy - International - International –Comparative –Cost plus The price must be one that the customer thinks is good value for money. The price must be one that the customer thinks is good value for money. This is not the same as This is not the same as being cheap! Prices have a great psychological effect on customers. Prices have a great psychological effect on customers.

Price Pricing Strategy Pricing Strategy Importance of: Importance of: –knowing the market –elasticity –keeping an eye on rivals Image copyright:

Promotion

Promotion Strategies to make the consumer aware of the existence of a product or service Strategies to make the consumer aware of the existence of a product or service NOT just advertising NOT just advertising

The promotional message should Grab A ttention Stimulate I nterest Create D esire Promote A ction

Place

Place The means by which products and services get from producer to consumer and where they can be accessed by the consumer The means by which products and services get from producer to consumer and where they can be accessed by the consumer –The more places to buy the product and the easier it is made to buy it, the better for the business (and the consumer?)

People

People People represent the business People represent the business –The image they present can be important –First contact often human – what is the lasting image they provide to the customer? –Extent of training and knowledge of the product/service concerned –Do staff represent the desired culture of the business?

People People represent the business People represent the business –The image they present can be important –First contact often human – what is the lasting image they provide to the customer? –Extent of training and knowledge of the product/service concerned –Mission statement – how relevant? –Do staff represent the desired culture of the business?

People People represent the business People represent the business –The image they present can be important –First contact often human – what is the lasting image they provide to the customer? –Extent of training and knowledge of the product/service concerned –Mission statement – how relevant? –Do staff represent the desired culture of the business?

Process

Process How do people consume services? How do people consume services? What processes do they have to go through to acquire the services? What processes do they have to go through to acquire the services? Where do they find the availability of the service? Where do they find the availability of the service? –Contact –Reminders –Registration –Subscription –Form filling –Degree of technology

Physical Environment

The ambience, mood or physical presentation of the environment The ambience, mood or physical presentation of the environment Packaging. Packaging. Internet/web pages. Internet/web pages. Paperwork (such as invoices, tickets,…..). Paperwork (such as invoices, tickets,…..). Brochures. Brochures. Furnishings. Furnishings. Uniforms. Uniforms. Business cards. Business cards. The building itself (such as prestigious offices or scenic headquarters). The building itself (such as prestigious offices or scenic headquarters). Mailboxes and many others Mailboxes and many others......

Physical Environment The ambience, mood or physical presentation of the environment The ambience, mood or physical presentation of the environment –Smart/shabby? –Trendy/retro/modern/old fashioned? –Light/dark/bright/subdued? –Romantic/chic/loud? –Clean/dirty/unkempt/neat? –Music? –Smell?

Stages in Consumer Decision Process Awareness Interest Decision Satisfaction Action Advertising Channel Product / Service Price Word- of- Mouth

The Marketing Mix Blend of the mix depends upon: Blend of the mix depends upon: Marketing objectives Marketing objectives Type of product Type of product Target market Target market Market structure Market structure Rivals’ behaviour Rivals’ behaviour Global issues – culture/religion, etc. Global issues – culture/religion, etc. Marketing position Marketing position Product portfolio Product portfolio –Product lifecycle –Boston Matrix

Marketing Model Target Market AwareUnderstandBelieveWantFindBuy Use Prefe r Cost Revenue Value Experience Point of Purchase Above the Line Loyal Below the Line Intention to Purchase Behavior

Marketing Management Philosophies CompetingPhilosophiesCompetingPhilosophies Production Sales Market Societal Marketing Module 3

Marketing Management Philosophies Philosophy Key Ideas Production Sales Market Societal Focus on efficiency of internal operations Focus on satisfying customer needs and wants Focus on satisfying customer needs and wants while enhancing individual and societal well-being Focus on aggressive techniques for overcoming customer resistance

The Marketing Concept Focus on Customer Wants and Needs Integrate Organization’s Activities to Satisfy Customer Needs and Wants Achieve Organization’s Long Term Goals by Satisfying Customer Wants and Needs

Comparing Sales and Market Orientations Market Orientation Outward Coordinated use of all marketing activities Customer satisfaction Specific groups of people Satisfying wants and needs Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Selling goods and services Everybody Maximum sales volume Primarily promotion Inward Sales Orientation

Developing Competitive Advantage Competitive Advantage Customer Value Customer Relationships Customer Satisfaction

Value and Satisfaction Expectation Performance 810 If performance is lower than expectations, satisfaction is low. If performance is higher than expectations, satisfaction is high. ExpectationPerformance 108

Why so many products fail in Egypt?