Near East University Faculty Of Economics & Administrative Sciences MAN Introduction To Business Week 6 - Marketing Tuğberk KAYA 

Principles of Marketing: Building Relationships with Customers for Competitive Advantage (Chp. 11, 12 13) “Activities, a set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.” “Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably.” (Chartered Institute of Marketing) “Marketing is a social and managerial process buy which individuals and groups obtain what they need and want through creating and exchanging products and value with others” (Kotler et al. 2003)

Sources of customer value  Information  Convenience  Association  Added Value  Value for money

Marketing activities  Marketing research  Market analysis  Setting strategy  Planning  Developing new products  Managing product portfolios  Liaising with Agencies  Recruiting and training staff  Setting promotional objectives  Designing promotional mix

Marketing activities contd.  Managing and protecting brands  Designing marketing channels  Managing marketing channels  Analysing competitor activity  Managing customer service  Ensuring customers are satisfied  Evaluating and reviewing activities and plans

The 7 Ps of marketing  Product - A bundle of benefits.  Price - Total cost of acquiring the product.  Place - The location where the exchange takes place.  Promotion - All the communications activities of marketing. Advertising, Personal Selling, Sales Promotions, PR  People - The individuals involved in facilitating the exchange process.  Process - The set of activities which lead to delivery of the product benefits.  Physical evidence – Helps buyers make judgements

Scope of marketing  Consumer marketing  Industrial marketing  Service marketing  Not-for-profit marketing  Small business marketing  International marketing

Definition of Segmentation The identification of individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy.

The advantages of market segmentation Opportunities and threats Target market selection Market segmentation Tailored marketing mix Differentiation

The process of market segmentation & target marketing c1c1 c5c5 c7c7 c2c2 c6c6 c3c3 c4c4 c8c8 The disaggregated market The segmented market The target market The characteristics of individual customers are understood Customers are grouped into segments on the basis of having similar characteristics Segment 3 is judged to be most attractive and a marketing mix strategy is designed for that target market c1c1 c5c5 c7c7 c2c2 c6c6 c3c3 c4c4 c8c8 123 c1c1 c5c5 c7c7 c2c2 c6c6 c3c3 c4c4 c8c8 123 Marketin g mix targeted at segment 3

Segmenting consumer markets Consumer segmentation Behavioural Benefits sought Purchase occasion Purchase behaviour Usage Perceptions and beliefs Lifestyle PersonalityDemographic Socio-economicGeographic PsychographicProfile

Two-way Dialogue With Consumers Focus on Building Long Term Relationships With Consumers Marketers Use and Coordinate Many Different Forms of Communication With Consumers Two-way Dialogue With Consumers Focus on Building Long Term Relationships With Consumers Marketing communications are part of a changing world Old World New World “Talking At” Consumers Focus on Winning New Customers Marketers Relied Primarily on Advertising and Promotions “Talking At” Consumers Focus on Winning New Customers Marketers Relied Primarily on Advertising and Promotions

Macro versus micro environment

What is a brand?  A product is anything that is capable of satisfying consumer needs.  A brand gives a product a distinctive identity through the creation of a name, design or, more usually, some combination of these.

Categories, brands and variants Category Brand B Brand A Variants A 1 A 2 A 3 Variants B 1 B 2 B 3 Variants B 1 B 2 B 3 Brand C

Why strong brands are important 1. Consumer perceptions and preferences are affected by brand names. 2. Barrier to competition. 3. High market share, brand loyalty and profits. 4. Base for brand extensions. 5. Quality certification. 6. Trust.

Strong brand names affect perceptions and preferences Blind % Prefer Diet Pepsi51 Prefer Diet Coke44 Equal / Can’t say5

Strong brand names affect perceptions & preferences Blind %Open % Prefer Diet Pepsi5123 Prefer Diet Coke4465 Equal / Can’t say512

The rebranding process Implementation Set rebranding objectives Screening Information search Consumer research Choice of new brand name Generation of new names

Global branding decisions  Delivery  Service  Guarantees Brand additions Brand communications  Name  Execution  Packaging Brand form  Quality  Formulation  Design  Variants Global branding

References  Ebert, R. J. and Griffin, R. W. (2015) Business Essentials. 10 th Edn. Harlow: Pearson Education Limited  Kadri Mirze (2002) Introduction to Business. Istanbul: Literatür Publishing.  Slides of Mary Munley had been also kindly used.

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