Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Principles of Marketing Theocharis Katranis Final Revision Spring Semester 2013 Final Revision 1

Principles of MarketingTheocharis KatranisSpring Semester 2013 Marketing is … ? The Marketing Management Philosophy that holds that achieving Organisational goals depends on determining the NEEDS and WANTS of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do! Final Revision 2

Principles of MarketingTheocharis KatranisSpring Semester 2013 Marketing is more important today because … - There are More Products/Services available than before (More Suppliers offering similar products/Services to a specific market). Final Revision 3 - Today, there is Stronger Competition than before - Competition drives Products/Services in Low Pricing Strategies - Products and Services can be found in more places that previous years - Companies spend more in Advertising and Promotion than before.

Principles of MarketingTheocharis KatranisSpring Semester 2013 The Marketing Process STEP 1. Understand the marketplace and customer needs and wants Final Revision 4 STEP 2. Design a customer-driven marketing strategy STEP 3. Construct an integrated marketing program that delivers superior value STEP 4. Build Profitable Relationships and create customer delight STEP 5. Capture Value from customers to create profits and customer equity

Principles of MarketingTheocharis KatranisSpring Semester 2013 Marketing Mix - Product Final Revision 5 - Price - Place - Promotion

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Characteristics Affecting Consumer Behavior Final Revision 6 1. Culture It is the Set of Basic Values, Perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Final Revision Consumer’s Small Groups 2.2 Family 2.3 Social Roles 2.4 Social Status 2. Social Factors Characteristics Affecting Consumer Behavior

Principles of MarketingTheocharis Katranis, MBA,Spring Semester Personal Factors – Characteristics Final Revision 8 Characteristics Affecting Consumer Behavior 3.1 Buyer’s Age and Life-cycle stage 3.2 Occupation 3.3 Economic Situation 3.4 Lifestyle 3.5 Personality 3.6 Self-concept

Principles of MarketingTheocharis Katranis, MBA,Spring Semester Psychological Factors Final Revision Motivation Characteristics Affecting Consumer Behavior 4.2 Perception 4.3 Learning 4.4 Beliefs 4.5 Attitudes

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Gathering Secondary Data Final Revision 10 Secondary Data are information that already exists somewhere, having been collected for another purpose. -Companies can use commercial online databases. -Companies can buy secondary data reports from outside suppliers i.e. Research companies -Companies can use Web Search Engines i.e. Yahoo, Google.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Primary Data Collection Final Revision Observational Research 2. Survey Research 3. Experimental Research

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Final Revision 12 New Product Life Cycles

Principles of MarketingTheocharis Katranis, MBASpring Semester Microenvironment Final Revision Macroenvironment The Marketing Environment

Principles of MarketingTheocharis Katranis, MBA,Spring Semester The Microenvironment The actors close to the company that affect its ability to serve its customers : Final Revision The company 2. The suppliers 3. The Marketing Intermediaries 4. The customer Markets 5. The competitors 6. The publics

Principles of MarketingTheocharis Katranis, MBASpring Semester The Macroenvironment The larger Societal Forces that affect the Microenvironment. Final Revision Demographic Forces 2.2 Economic Forces 2.3 Natural Forces 2.4 Technological Forces 2.5 Political Forces 2.6. Cultural Forces

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Final Revision 16 Internal and External Considerations Affecting Price Decisions 1. Overall Marketing Strategy, Objectives, and Mix 2. Organizational Considerations 3. The Market and Demand 4. Competitors’ Strategies and Prices 5. Other External Factors

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Final Revision 17 Other Internal and External Considerations Affecting Price Decisions 5. Other External Factors 5.1 Economic Conditions (boom/recession/inflation) 5.2 The Government 5.3 Social Concerns

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Factors to Consider When Setting Prices Final Revision Customer Perceptions of Value 2. Company and Product Costs 3. Other Internal and External Considerations affecting Price Decisions

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Business Buyer Behavior and Business Markets 1. Business Buyer Behavior Final Revision 19 It is the buying behavior of the organizations that buy goods and services for use in the production of other products and services or to resell or rent them to others at a profit.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Participants in the Business Buying Process Final Revision Users 2. Influencers 3. Buyers 4. Deciders 5. Gatekeepers

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 The Nature and Importance of Marketing Channels Final Revision 21 Marketing Channel (or distribution channel) is a SET of interdependent organizations that help make a product or service available for use of consumption by the consumer or business user. Marketing Channels – Definition:

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Final Revision 22 Distribution Channels affect the final Price for a Product, because of the additional profit for the distributor. The Nature and Importance of Marketing Channels Distribution Channels decisions often involve long-term commitments to other firms.

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 How Channel Members Add Value Final Revision 23

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Final Revision Producers pass the risk of damages to the distributor. 2. Producers reduce their holding costs How Channel Members Add Value

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Final Revision Analyzing Consumer Needs 2. Setting Channel Objectives 3. Identifying Major Alternatives 4. Evaluating the Major Alternatives 5. Other External Factors Channel Design Decisions

Principles of MarketingTheocharis KatranisSpring Semester 2013 The Boston Consulting Group Approach – (BCG) It is a Portfolio-planning method that evaluates a company’s strategic business units in terms of its market growth rate and relative market share. SBU’s are classified as Stars, Cash Cows, Question Marks, or Dogs. Final Revision 26

Principles of MarketingTheocharis KatranisSpring Semester 2013 Final Revision 27 The Boston Consulting Growth – (BCG)

Principles of MarketingTheocharis KatranisSpring Semester 2013 MARKET SEGMENTATION It is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviours, and who might require separate products or marketing programs. Final Revision 28

Principles of MarketingTheocharis KatranisSpring Semester 2013 MARKET SEGMENTATION Consumers can be grouped and served in various ways based on : Final Revision 29 A. Geographic Factors B. Demographic Factors C. Psychographic Factors D. Behavioral Factors

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Maslow’s Hierarchy of Needs Final Revision 30 Physiological Needs (Hunger, Thirst) Safety Needs (Security, Protection) Social Needs (Sense of Belonging, Love) Esteem Needs (Self-esteem, Recognition, status) Self-actualization Needs (Self-development and Realization)

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Final Revision 31 Promotion Mix Tools The Promotion mix or (Marketing Communications Mix) 1. Advertising 2. Sales Promotion 3. Personal Selling 4. Public Relations 5. Direct Marketing

Principles of MarketingTheocharis KatranisSpring Semester 2013 ANSOFF’S PRODUCT/MARKET EXPANSION MATRIX Final Revision 32

Principles of MarketingTheocharis KatranisSpring Semester 2013 Marketing Research – Three Types of Objectives Final Revision Exploratory Research The marketing research is to gather preliminary information that will help define the problem and suggest hypotheses. 2. The Objective of Descriptive Research The marketing research is to better describe marketing problems, situations or markets, such as the market potential for a product or the demographics and attitudes of consumers. 3. The Objective of Causal Research The marketing research is to test hypotheses about cause-and- effect relationships.

Principles of MarketingTheocharis KatranisSpring Semester 2013 Final Revision 34 END of Final Revision Thank you for your attention