1. Principles of Marketing
Dina El Tabey
Mariam Abou-Youssef

2. The Course Objectives
LEARN PRACTICAL MARKETING KNOWLEDGE AND PRACTICES
Module 1 (Day 1)
Marketing Definition
STP, Principle of Real World Mktg.
Module 2 (Day 2 & 3)
Marketing Tools
From Online Marketing to Direct Marketing
Module 3 (Day 4)
Marketing Program – Workshop
Learn How To Design a Marketing Program
What Do You Expect To Learn After You Finish This Course (Write Down On Z Board; And Keep Them)
Courses vs. Academic – more interactive, lots of questions and answers, lots of examples, lots of sharing of ideas

3. Today’s Objectives What is marketing? STP The Marketing Mix
Principles of real world marketing
Exercise

4. What is Marketing?
It is not just “selling and advertising”; It is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
“The Whole Firm Taken From A Customer Perspective” Peter Drucker
EVERYTHING THAT TOUCHES THE CONSUMER IS MARKETING
Ask What Touches the consumer and get answers (products, advertising, less obvious –bills, customer appearances) To The Customer It is all about the touch points and their experience with the touch points ex. Call center of operator , cashiers in supermarkets, what other examples
Ask Peter Drucker why is it imp.? What your customer see is completely different from what you can see – ex. El gazzar, what are some other examples, Call Centers … if what u know urself for meets what your customer thinks of you that’s a winner … if you consider urself the cheapest and ur customer does too …
Ask How do you see through your customer eyes? Massive research

5. What Marketing Does? Reach customers Motivate Them To Buy Use
AND REBUY The product

6. Marketers Should March To The Drums Of The Customers
What Marketers Do?
Reach customers
Motivate Them To Buy
Use
AND REBUY The product
Ask What is the role of marketers get answers and write them – and mention that doing all what it takes to achieve this
Ask If this is easy or not? It is difficult bec. Your customers wouldn’t care less about you or your product … they only care about their needs and wants + they are suspicious of your mktg intentions
In Order To Do This One Should Have Tactics coming rest of the day tactics to ease the process to reach the customers
Marketers Should March To The Drums Of The Customers

7. STP (Segmentation, Targeting &Positioning)
Market segmentation
Identify bases for segmenting the market.
Develop segment profiles
Target marketing
3. Develop measure of segment attractiveness
4. Select target segments.
Market positioning
5. Develop positioning (differentiation) for target segments.
6. Develop a marketing mix for each segment.

8. 1. Market segmentation
Dividing a market into smaller groups of buyers distinct needs, characteristics, or behavior who might require separate products or marketing mixes
Examples: Travel agencies, biscuits and flavors, samna we zeit addressing different segments, what else

9. Market segmentation Buyers differ in Wants Resources Locations
Buying attitudes
Buying practices
Through market segmentation, companies divide large, heterogeneous (different) markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs

10. Geographic segmentation
Dividing a market into different geographical units such as nations, states, regions, counties, cities or neighborhoods
Al-wasset classifieds (maadi)

11. Demographic segmentation
Dividing the market into groups based on demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race and nationality
Most popular because our needs, wants and usage rates depend on the demographics
TV Channels, what else

12. Age and life cycle segmentation
Dividing a market into different age and life cycle groups
Kids (corn flakes), adults, magazines (teen stuff)
Gender segmentation
Dividing a market into different groups based on gender
Clothing, cosmetics, perfumes

13. Income segmentation Dividing the market into different income groups
Cars, financial services

14. Psychographic segmentation
Dividing a market into different groups based on social class, lifestyle or personality characteristics

15. Behavioral segmentation
Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product
Occasion segmentation
Dividing the market into groups according to occasions when buyers get the idea to buy

16. Behavioral segmentation (cont’d)
Benefit sought segmentation
Dividing the market into groups according to the different benefits that consumers seek from the product (detergent)

17. Using multiple segmentation bases
Using multiple segmentation bases in an effort to identify smaller, better defined target groups

18. Requirements for effective segmentation
Measurable
Accessible
Differentiable (segment is unique)
Actionable (can perform marketing mix to reach this segment)

19. STP Market segmentation Identify bases for segmenting the market.
Develop segment profiles
Target marketing
3. Develop measure of segment attractiveness
4. Select target segments.
Market positioning
5. Develop positioning (differentiation) for target segments.
6. Develop a marketing mix for each segment.

20. Target marketing
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

21. Evaluating market segments
Segment size
Growth
Segment attractiveness
Company objectives and resources
Competitors
Buying power
Supplier power

22. Selecting target market segments
A set of buyers sharing common needs or characteristics that the company decides to serve

23. Targeting Strategies Undifferentiated Strategy
One marketing mix for the whole market
Concentrated (niche) Strategy
One marketing mix and one segment
Differentiation Strategy
Two marketing mix and 2 different segment
Chipsy
BMW

24. STP Market segmentation Identify bases for segmenting the market.
Develop segment profiles
Target marketing
3. Develop measure of segment attractiveness
4. Select target segments.
Market positioning
5. Develop positioning (differentiation) for target segments.
6. Develop a marketing mix for each segment.

25. Product positioning
The way that product is defined by consumers on important attributes - the place the product occupies in consumer’s minds relative to competing products

26. Perceptual Positioning Map for Automobiles•
Volvo 850R
Chrysler LHS
Buick Park Avenue
Oldsmobile L35
Honda Accord
Nissan Sentra
Plymouth Voyager
Dodge Caravan
Geo Metro
Kia Sephia
Dodge Neon
Saturn SC2
Porsche 914
Mercedes 400SE
Lexus LS400
Jeep Grand Cherokee
Acura Integra
Ford Taurus
Honda Civic
Stylish, prestigious, distinctive
Practical, common, economical
Staid, conservative, older
Fun, sporty, fast
TM3
TM2
TM1

27. Developing the marketing mix
Marketing mix: the set of controllable tactical marketing tools: product, price, place and promotion that the firm blends to produce the response it wants in the target market

29. Principles of Real World Marketing
Consumer products
Principles of Real World Marketing

30. Principles of Real World Marketing
Your Customers Aren’t Listening To You
Everybody Else Is Shouting At Your Customers
The Rest Of Your Organization thinks you are crazy BUT
You Cant execute your program without the rest of the company
What does that mean … how does that affect marketer job

31. Principles of Real World Marketing
The More You Give; The More You Get
Being Good Is Never Good Enough; You Have To Be Better
Marketing Should Be The Most Creative and Most Logical Part Of Your Business
Everything Is Marketing
Like photosynthesis

32. Integrated Marketing Communications (IMC)
The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

33. IMC

34. Marketing communications mix - promotion mix
The mix of
Advertising
Personal selling
Sales promotion
Public relations
Direct Marketing
That the company uses

35. a. Advertising
Any paid form of non-personal presentation and promotion of ideas, goods, or services
Advertising tools
Print (newspapers, magazines) TV
Radio
Outdoor
Online

36. 1. Setting advertising objectives
A specific communication task to be accomplished with a specific target audience during a specific period of time
Objectives
Informative (new product category)
Persuading (when competition increases, comparative advertising, comparative advertising AUDI ad)
Reminding (coca cola, Pepsi)

37. 2. Developing advertising strategy a. Creating advertising messages
Message execution
Slice of life: one or more “typical” people using the product in a normal setting. Samna and Oil ads)
Lifestyle: how a product fits in with a particular lifestyle. Nescafe
Fantasy: creates fantasy around the product or its use. Galaxy (girl in the big chair), 7up tropical
Musical: one or more people or cartoon characters singing about the product. (Sunsilk)

38. Message execution
Technical expertise: shows the company’s expertise in making the product. Chipsy
Scientific evidence: presents surveys or scientific evidence that the brand is better or better liked than one or more other brands. Crest and the egg ad
Testimonial evidence or endorsement Highly believable or likeable source endorsing the product –Celebrity- Nancy Agram

39. 2. Developing advertising strategy b. Selecting advertising media
Deciding on reach, frequency
Reach: measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time
Frequency: measure of how many times the average person in the target market is exposed to the message

40. Choose Your Media Type Question Answer How to choose the best medium?
Whatever Works for your campaign and reaches your target market
Primary Medium
Secondary Medium
Spread your budget equally on more than one medium

41. Profiles of major media types
Medium Advantages Limitations
Print - Newspaper
Flexibility; timeliness; good local market
coverage; broad acceptability; believability
Short life; poor production quality
Television
Good mass-market coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses
High absolute cost; high clutter; less audience selectivity
Radio
Good local acceptance; high geographic and demographic selectivity; low cost
Audio only; low attention (“half heard”); fragmented audiences
Print - Magazine
High geographic and demographic selectivity; credibility and prestige; quality production; long life; good pass-along
high cost; no guarantee of position
Outdoor
Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity
Little audience selectivity; creative limitations
Online
High selectivity; low cost; immediacy; interactive capabilities
Small, demographically skewed audience; low impact; audience controls exposure

42. Print Advertising (Newspapers, Magazines)
Most Advertisers budget more for print than any other media
Works mainly to promote sales promotions
Anatomy:
Headline
Sub headline
Copy – choose the font that serves the message
Visual
Caption
Trademark
Signature
Slogan

43. Exercise
Each Team chooses a print ad from the newspaper or magazine and analyze it

44. Television
Used When You Need To Evoke Emotions – surprise, anxiety, excitement, happiness, …

45. Radio
Rely On Sounds – choose cool sound effect, interesting voice, catchy musical phrase, …
Choose One Strong Idea
Talk To Your Market Right Away – i.e. if you want to advertise for salon’s service; start right away with ex. :”not another bad hair day”

46. Outdoor – Billboards, Banners and Signs
It must be read in a hurry
It is geographically specific
It directs people to your business location
Placing it in front of competitor location IS SMART 
Design should include 2 main sections: 1- Header to catch attention from far, 2- essential information

47. Outdoor – Billboards, Banners and Signs
Forms:
Vinyl
Hand Painted
Wood
Metal
Light Boxes
Electronic Display

48. Online Advertising Types: Website = company brochure
Banner Ads = billboard where you use your logo, one simple message and max. couple lines of body copy
N.B
Refresh Your Content Regularly
Deliver fascinating and attractive content

49. Other Forms of Indirect Advertising
Point Of Purchase POP
Flags
Danglers
Roll ups & pop ups
Word Of Mouth
Virtual WOM
Face To Face

50. b. Sales promotion
Short-term incentives to encourage the purchase or sale of a product or service

51. Major sales promotion tools for consumers
Sample: a small amount of a product offered to customers for trial. (perfumes)
Coupon: certificate that gives buyers a saving when they purchase a specified product
Price off (cents-off deal): reduced price that is marked by the producer directly on the label or package. (10 instead of 12)
Premiums: prizes, gifts consumers receive when purchasing products. (shampoo with shower gel, vodafone)

52. Major sales promotion tools for consumers (cont’d)
Contests and sweepstakes
Contests: solve questions and you win something (who would win the million)
Sweepstakes: depend on luck
Bonus packs: additional or extra number of items is placed in a special product package (3 with price of 2, 20%extra)

53. Major sales promotion tools for trade
Discount: a straight reduction in price on purchases during a stated period of time
Allowances: promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way

54. c. Public relations
Building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image”, and handling or heading off unfavorable rumors, stories, and events
It is unpaid advertising
PR tools
Press releases
Sponsorships (Mc Donald’s and the hospital 53753)
Special events (Vodafone and the charity complex)

55. d. Personal selling
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships
Personal selling tools
Personal presentation
Trade shows (exhibitions and fairs. Le marche)

56. e. Direct marketing
Direct communications with carefully targeted individual consumers-the use of telephone, mail, fax, , the internet, and other tools to communicate directly with specific consumers
Direct marketing
Sending catalogues
Telemarketing

57. Push strategy
A promotion strategy that calls for using the sales force and trade promotion to push the product through channels.
The producer promotes the product to wholesalers, the wholesalers promote to retailers, and the retailers promote to consumers

58. Pull strategy
A promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand.
If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers

59. Push Vs Pull strategy

60. 1. Affordable method
Setting the promotion budget at a level management thinks the company can afford

61. 2. Percentage of sales method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of unit sales price

62. 3. Competitive-parity method
Setting the promotion budget to match competitors’ outlays
Get Data from reports such as PARC
Mobinil and Vodafone
Pepsi and coca cola

63. 4. Objective and task method
Developing the promotion budget by
Defining specific objectives
Determining the tasks that must be preformed to achieve these objectives
Estimating the costs of performing these tasks
The sum of these costs is the proposed promotion budget