1. Business Copyright 2005 Prentice- Hall, Inc. 10-1

2. 1-2 Session #9 Understanding Principles of Marketing Business Introduction - Teaching Team Business and Management Department Faculty of Economics UNPAD

3. Business Copyright 2005 Prentice- Hall, Inc. 10-3 Value & Satisfaction Benefits- Functions Of Product & Emotional SatisfactionBenefits- Functions Of Product & Emotional Satisfaction Benefits Must Exceed Costs To Be Of Value To The ConsumerBenefits Must Exceed Costs To Be Of Value To The Consumer Value = Benefits Costs Costs

4. Business Copyright 2005 Prentice- Hall, Inc. 10-4 Marketing Environment Political/Legal- Foreign & DomesticPolitical/Legal- Foreign & Domestic Social/Culture- Changing Values In Today’s Dynamic MarketSocial/Culture- Changing Values In Today’s Dynamic Market Technological- ObsolescenceTechnological- Obsolescence Economic- Patterns/Levels Of SpendingEconomic- Patterns/Levels Of Spending

5. Business Copyright 2005 Prentice- Hall, Inc. 10-5 Competitive Environment Substitute ProductsSubstitute Products Brand CompetitionBrand Competition International CompetitionInternational Competition

6. Business Copyright 2005 Prentice- Hall, Inc. 10-6 Marketing Mix (4 P’s) Product Place Price Promotion

7. Business Copyright 2005 Prentice- Hall, Inc. 10-7 Product Good, Service, Idea To Fill Need Or WantGood, Service, Idea To Fill Need Or Want Product DifferentiationProduct Differentiation

8. Business Copyright 2005 Prentice- Hall, Inc. 10-8 Price Price Must Create Profit By:Price Must Create Profit By: –Covering Costs –Attract Customers High-Low StrategyHigh-Low Strategy –Low = Large Sales Volume –High = Greater Profit Per Unit Sold

9. Business Copyright 2005 Prentice- Hall, Inc. 10-9 Place Getting Product From Producer To ConsumerGetting Product From Producer To Consumer Decisions Include:Decisions Include: –Storage –Mode Of Transportation

10. Business Copyright 2005 Prentice- Hall, Inc. 10-10 Channels Of Distribution ProducerProducerProducer Consumer ConsumerConsumer Retailer Wholesaler Retailer

11. Business Copyright 2005 Prentice- Hall, Inc. 10-11 Promotion Communicate InformationCommunicate Information Tools:Tools: –Advertising –Personal Selling –Sales Promotion –Public Relations

12. Business Copyright 2005 Prentice- Hall, Inc. 10-12 Target Market Target Market- Group With Similar Needs/WantsTarget Market- Group With Similar Needs/Wants Product Positioning- According To Consumers’ PerceptionProduct Positioning- According To Consumers’ Perception

13. Business Copyright 2005 Prentice- Hall, Inc. 10-13 Market Segmentation Variables GeographicGeographic DemographicDemographic PsychographicPsychographic BehavioralBehavioral

14. Business Copyright 2005 Prentice- Hall, Inc. 10-14 Geographic Variables Places Consumers ResidePlaces Consumers Reside Countries > NeighborhoodsCountries > Neighborhoods Water = BoatsWater = Boats Mountains/Rural = Four-Wheel Drive VehiclesMountains/Rural = Four-Wheel Drive Vehicles Urban Area = Designer ClothingUrban Area = Designer Clothing

15. Business Copyright 2005 Prentice- Hall, Inc. 10-15 Demographic Variables AgeAge IncomeIncome GenderGender Ethnic BackgroundEthnic Background Marital Status Race Religion Social Class Others?

16. Business Copyright 2005 Prentice- Hall, Inc. 10-16 Psychographic Variables LifestyleLifestyle InterestsInterests AttitudesAttitudes Can Be Changed By Marketing EffortsCan Be Changed By Marketing Efforts

17. Business Copyright 2005 Prentice- Hall, Inc. 10-17 Behavioral Variables Ways In Which Product/Service Is UsedWays In Which Product/Service Is Used Benefits ExpectedBenefits Expected Reasons For PurchaseReasons For Purchase Brand Loyalty vs. SwitcherBrand Loyalty vs. Switcher

18. Business Copyright 2005 Prentice- Hall, Inc. 10-18 Marketing Research Study Consumer Needs/WantsStudy Consumer Needs/Wants Determine Ways Sellers Can Satisfy Needs/WantsDetermine Ways Sellers Can Satisfy Needs/Wants

19. Business Copyright 2005 Prentice- Hall, Inc. 10-19 Marketing Research & Process

20. Business Copyright 2005 Prentice- Hall, Inc. 10-20 Research Process Study Situation Select Method Collect Data Analyze Data Prepare Report

21. Business Copyright 2005 Prentice- Hall, Inc. 10-21 Research Methods Observation Focus Group Experimentation Surveys

22. Business Copyright 2005 Prentice- Hall, Inc. 10-22 Influences On Consumer Behavior PsychologicalPsychological PersonalPersonal SocialSocial CulturalCultural

23. Business Copyright 2005 Prentice- Hall, Inc. 10-23 Buying Process

24. Business Copyright 2005 Prentice- Hall, Inc. 10-24 Data Warehousing- Collecting, Storing, & Retrieving DataWarehousing- Collecting, Storing, & Retrieving Data Mining- Searching, Sifting, & Reorganizing DataMining- Searching, Sifting, & Reorganizing Data

25. Business Copyright 2005 Prentice- Hall, Inc. 10-25 Organizational Markets IndustrialIndustrial ResellerReseller Government/InstitutionalGovernment/Institutional

26. Business Copyright 2005 Prentice- Hall, Inc. 10-26 Buying Behavior- Organizational Buyer DifferencesBuyer Differences –Professional –Specialist –Experts Buyer-Seller RelationshipBuyer-Seller Relationship

27. Business Copyright 2005 Prentice- Hall, Inc. 10-27 Marketing Mix- International Products- Redesign For Foreign BuyerProducts- Redesign For Foreign Buyer Pricing- Cover Increased Cost Of Transport/SellingPricing- Cover Increased Cost Of Transport/Selling Distribution- Delays In Establishing Network For StartupDistribution- Delays In Establishing Network For Startup Promotion- Cultural DifferencesPromotion- Cultural Differences

28. Business Copyright 2005 Prentice- Hall, Inc. 10-28 Marketing Mix- Small Business Products- Limited Buying MarketProducts- Limited Buying Market Pricing- Incorrect Cost EstimationPricing- Incorrect Cost Estimation Distribution- Location Is CriticalDistribution- Location Is Critical Promotion- Local Which Is CheaperPromotion- Local Which Is Cheaper