1. What is Marketing? 4 Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organizational objectives (AMA) 4 Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably (CIM)

2. Marketing components P Q p0 p1 p2 q1 q0 q2 d d P= price Q= quantity d= demand supply= ?

3. Demand = the Market 4 Different demands on different markets –Can the market be differentiated based on differences in needs? Identifying the market –Industrial Market –Consumer Market

4. Supply = the Competition 4 The same supply on the same market –Can the supply be differentiated based on how it satisfy the needs? Identifying the needs –What needs should be satisfied? –Generalization or specialization?

5. The Product 4 The product: goods and services Satisfaction of needs Quality by standardization –factual quality –expected quality goodsservices 0 100 50

6. The Price Costs Quantity 4 Pricing based on costs

7. Markets and Competition Supply Demand Same demand Same supply Different supply Different demand

8. The Marketing Planning Process

9. 4 A broadly defined, enduring statement of purpose of the business –What business are we in? –What business do we want to be in?

10. Defining the Product 4 Differentiation by satisfaction Augmented product Core product Tangible product Potential product

11. Deciding the Price –Pricing based on demand and supply Pricing methods Costs Competition Market

12. Determining the position (Where are we?) 4 SWOT –internal source strengths weakness –external source opportunities threats 4 Benchmarking –internal –external

13. Identifying the Markets Home customers Business Customers Professional customers Products (customer needs) Markets (customer groups)

14. Identifying the customers »Market segmentation Home customers Business Customers Professional customers Products (customer needs) Markets (customer groups)

15. Identifying the competitors Immediate competitors Technically similar products Secondary competitors Tertiary competitors Different products solving or eliminating the problem in a different way Different products solving the same problem in a similar way

16. 4 What shall we be? 4 How should it be measured?

17. How shall we do? 4 Where and how compete –Positioning, the choice of target market (where) differential advantage (how) Clarity Consistency Credibilitycompetitiveness Successful positioning

18. Connecting to the market 4 Communication –information from the market market research –information to the market promotion and advertising –personal selling 4 Distribution –channels/entries –transport and logistics