2. Marketing Strategy – I: An introduction

3. Learning Objectives Demonstrate an understanding of the marketing concept. Describe the role of marketing. Appreciate the importance of marketing research. Explain the factors affecting buying behaviour. Demonstrate an understanding of the target market.

4. What is marketing? Marketing is the management process responsible for identifying, anticipating and satisfying customer requirement profitably

5. Marketing Concept An organization remains in business by profitably satisfying and servicing customers

6. Marketing Mix – 4Ps Product Price Promotion Place

7. Relationship between marketing Concept and Marketing Mix The Marketing Concept Put the customer first Find out what customers need Supply satisfactions for those needs Means that we = produce what people want to but, NOT sell what we like making So we must = organize and co-ordinate the company so that this happens In order to = carry out market research Which we do by offering the right Marketing Mix = Product – the right article = Price – at the right price = Place – through the right channels = Promotion – in the right way

8. Important information required for marketing activities Market size Consumer profiles Types and nature of the products in the market Number and market share of the competitors Strategies of the competitors Annual sales of the market in the past Growth potential of the market

9. Marketing Research The purpose of marketing research is to reduce the area of uncertainty surrounding business decision

10. Roles of marketing research Markets – what the public wants Marketing strategies and tactics Interaction between markets Marketing methods Product/services

11. Steps in Marketing Research Definition of problem Situation analysis Preparation of research design Determine information design Primary research/ secondary research?? Research methodology Formulate sampling plan Collection of data Tabulation and analysis of data Preparation and presentation of reports

12. Primary VS Secondary Research Primary Research/ Field Research Primary data: information which does not already exist E.g. survey,observation, experiences Secondary Research/ Desk Research Secondary data:Information which already exist Internal and external source

13. Primary DataSecondary Data Characteristics - Data already existing, having been originally collected for some purpose other than project on hand -Internal (from company itself) and external - e.g. data from government (census), commercial publications, or regular MR services Advantages - data collected is specific to the market research - often available at little or no cost - has already been collected (save time) Disadvantages - collected for another purpose  need to be adapted before it can be used -original data collected specifically for the current research project -From (i)Observation (ii)Experiences (iii)Survey -very expensive -Time consuming

14. Research Methodology – Methods of Primary Research (1)Questionnaires / Survey Mailing Telephone Personal Interview o Questionnaire Design

15. Advantages and disadvantages of different survey contact methods Advantages Telephone survey High response rate Quick Reach scattered geographical areas Postal survey Reach scattered geographical areas Respondents have enough time to answer the questions Disadvantages Can ask only simple questions Little control over the respondents Low response rate Little control over the respondents Takes a long time to collect the responses

16. Personal interview Can observe the respondents ’ reactions Can ask more complex questions Highly flexible Bias may exist Time consuming and costly

17. Research Methodology – Methods of Primary Research (2) Observation Often used by retail firms “ watching ” consumers in their stores or meters on the TV sets to monitor viewing (2) Experiments Panels Consumer panels: involves a group of consumers being consulted on their reactions to a product over a period of time

18. Sampling Procedures (1) Select the population- target population for a particular product (2) Select the sampling units (3) Select the sampling frame (4) Select the sample design (5) Select the sample size (6) Select the sampling plan (7) Select the sample

19. Factors evaluating a marketing research program Accuracy Speed Adequacy Communication Cost

20. Factors affecting consumer buying behaviour Personal factors Interpersonal factors Economic factors PerceptionsCultureState of the economy ExperienceEthical standardsPurchasing power NeedsSocial influencesInterest rates ValuesFamily influencesTax rates Personality

21. Rational buying motives The socially approved reasons behind purchases

22. Emotional buying motives The psychological reasons behind purchases.

23. A typical buying process Problem recognition Awareness Initial Interest Making a decision Evaluation Searching For alternatives

24. Market Segmentation Definition: to identify people with similar needs and breaking down a market into sub-groups with similar characteristics

25. Market segmentation factors FactorsIllustrations Demographic: AgeInfant, child, teenager, young adult, mature adult, middle-aged adult, old-aged adult SexMale, female IncomeLow income, middle income, high income OccupationUnskilled worker, skilled worker, clerk, administration, professional, housewife, unemployed EducationIlliterate, primary school graduate, secondary school school graduate, university graduate ReligionChristian, Catholic, Buddist, Taoist, others RaceOriental, White, Black, others

26. Geographic : CountryChina, Japan, United States, United Kingdom, others SettlementUrban, suburban, rural ClimateEquatorial, tropical, subtropical, temperate, polar Psychological : Social classLower class, middle class, upper class Life styleCarefree, working style, materialistic, others Rational economic: BenefitQuality, after-sales services, warranties PriceDiscounts, credit facilities, prices of substitutes

27. Undifferentiated marketing strategy A single set of marketing strategies for the whole heterogeneous market.

28. Differentiated marketing strategy A separate set of marketing strategies for each segment in the market.

29. Concentrated marketing strategy Concentrating the marketing effort on a particular segment in the market.

30. Target market The segment to which marketing efforts are directed.

31. Market Positioning Product Positioning A product may be engineered to be better than the competition in some respect or at least different in some desirable way Promotional Positioning The emphasis is more on product image and how it is to be distinguished from competitors by advertising