Problem Solving

Introduction
to marketing
concepts
Rules of the Game
Workshop Rules
Stay
involve
d
Keep your time
Take
notes
Turn off your mobile phone
Learning methods
Lets communicate and get
Your Expectations
Marketing
What youll learn...
What is
marketing?
What is the
marketing mix?
What does it
involve?
Module 1
About
Marketing
Marketing in the 21
century

WHY
What is marketing?
Marketing
is not ADVERTISING
is not SELLING
is not PROMOTION
The aim of marketing is to make
selling unnecessary. Peter Drucker
(1973)
What is marketing?
Businesses need to sell
products if they are to
achieve their
objectives.

Marketing is about
ensuring that
businesses can sell as
many products as
possible in order to
make profits.
What does it involve?
Marketing is a very complex concept.

It involves:
Research
Product design
Setting prices
Making sure the customer knows about
products
Choosing how and where to sell products
Why is it needed?
Each year millions of new products are
launched:


Without careful
marketing these
products would
fail
Marketing is the science and art of exploring,
creating and delivering value to satisfy the needs
and wants of a target market maintaining loyalty
at a profit.
Professor Philip Kotler
Needs Eat, Dress, Move
Wants
Cheeseburger, Tuxedo, Car
Marketer
This Is Demand
Demand
Wants
Buying Power
First Task: Detect Needs
Organizations
marketing department
Discover consumer needs
Information about needs
Potential consumers: The market
Marketings first task: discovering consumer needs
What is a Market?
Potential consumers make up a
market, which is:
1. People
2. with the Desire and
3. with the Ability to Buy a
specific product.
Organizations marketing department
Concepts
for
products
Discover consumer needs
Information about needs
Potential consumers: The market
Satisfy consumer needs
Find the right combination of:
Product
Price
Promotion
Place
Goods, services, ideas
Marketings Second Task: Satisfying Consumer
Needs
The Target Market
Because the organization
obviously cant satisfy all
consumer needs, it must
concentrate its efforts on
certain needs of a specific
group of potential consumers. This is the
target market -- one or more specific
groups of potential consumers toward
which an organization directs its
marketing program.
Inactive or
ex-customers
Customer Development
Partners Advocates Clients
Repeat
customers
First-time
customers
Suspects
Prospects
Disqualified
prospects
Marketing Vs Sales

Is there a
difference?
The Marketing concept

Organizations must concentrate on the
customer and not the product or the company.



Organizations should revolve round the
customer and not the other way around.



The purpose of a business is to create and keep
a customer
Focuses on matching your product or service features and
benefits in a way that suits the prospect.


sales process is any thing that you do to close the sale
and get signed agreement or contract.


It is ant thing that engages you with the prospect or
customer on a personal level rather than at a distance.
The selling concept

The major role of marketing
and selling
People DO NOT buy products
people buy
Module 2
Marketing
Management
Building Customer
Relationships
Relationship Marketing
Relationship marketing is linking the organization
to its individual customers, employees,
suppliers, and other partners for their mutual
long-term benefits.


Mutual long-term benefits between the
organization and its customers require links to
other vital stakeholders-- including suppliers,
employees, and partners such as wholesalers
or retailers in a manufacturers channel of
distribution.
How Marketing became so
important?
Production era


Sales era


Marketing concept era


SocietalMarketing era
1860 1880 1900 1920 1940 1960 1980 2000

Four different orientations in the history of North American
business
The Marketing Mix
The tools available to a business to gain the
reaction it is seeking from its target market in
relation to its marketing objectives
7Ps Price, Product, Promotion, Place, People,
Process, Physical Environment
Traditional 4Ps extended to cope with today's
changing environment
The Marketing Mix
Product
Product
The firm must come up with a product
or service that people will want to
buy.

It must fulfil some need
or want.


It must be (or at least seem) unique.
Product
Methods used to
improve/differentiate
the product and increase
sales or target sales more
effectively to gain
a competitive advantage e.g.
Extension strategies
Specialised versions
New editions
Improvements real or
otherwise!
Changed packaging
Technology, etc.

Image copyright: www.freeimages.co.uk
Product
Methods used to
improve/differentiate
the product and increase
sales or target sales more
effectively to gain
a competitive advantage e.g.
Extension strategies
Specialised versions
New editions
Improvements real or
otherwise!
Changed packaging
Technology, etc.

Image copyright: www.freeimages.co.uk
Activity 1
Product or service or brand Core Product Actual Product
Augmented
Product
BMW Freedom to travel A motor car
Sheraton Rooms Room service
Egypt Air Flight An airline journey
Zamalek Football Club
Excitement and
leisure
T-shirts photos
with players
ALICO Insurance policy Finance
UNIONAIR Cooling Warranty
Price
Price
Pricing Strategy
- International
Comparative
Cost plus
The price must be one that
the customer thinks is good
value for money.
This is not the same as
being cheap!
Prices have a great
psychological effect on
customers.
Price
Pricing Strategy
Importance of:
knowing the market
elasticity
keeping an eye
on rivals
Image copyright: www.freeimages.co.uk


Promotion
Promotion
Strategies
to make the
consumer aware of
the existence of a
product
or service
NOT just advertising


The promotional message should
Grab Attention


Stimulate Interest


Create Desire

Promote Action

Place
Place
The means by which products and
services get from producer
to consumer and where they can be
accessed by the consumer
The more places to buy the product and the
easier it is made to buy it, the better for the
business (and the consumer?)

People
People
People represent the business
The image they present can be important
First contact often human what is the lasting image
they provide to the customer?
Extent of training and knowledge
of the product/service concerned
Do staff represent the desired culture
of the business?


People
People represent the business
The image they present can be important
First contact often human what is the lasting image
they provide to the customer?
Extent of training and knowledge
of the product/service concerned
Mission statement how relevant?
Do staff represent the desired culture
of the business?


People
People represent the business
The image they present can be important
First contact often human what is the lasting image
they provide to the customer?
Extent of training and knowledge
of the product/service concerned
Mission statement how relevant?
Do staff represent the desired culture
of the business?


Process
Process
How do people consume services?
What processes do they have to go through
to acquire the services?
Where do they find the availability
of the service?
Contact
Reminders
Registration
Subscription
Form filling
Degree of technology


Physical Environment
Physical Environment
The ambience, mood or physical presentation of the environment
Packaging.
Internet/web pages.
Paperwork (such as invoices, tickets,..).
Brochures.
Furnishings.
Uniforms.
Business cards.
The building itself (such as prestigious offices or scenic
headquarters).
Mailboxes and many others . . . . . .

Physical Environment
The ambience, mood or physical presentation of
the environment
Smart/shabby?
Trendy/retro/modern/old fashioned?
Light/dark/bright/subdued?
Romantic/chic/loud?
Clean/dirty/unkempt/neat?
Music?
Smell?


Stages in Consumer Decision
Process
Awareness
Interest
Decision
Satisfaction
Action
Advertising
Channel
Product /
Service
Price
Word-
of- Mouth
The Marketing Mix
Blend of the mix depends upon:
Marketing objectives
Type of product
Target market
Market structure
Rivals behaviour
Global issues culture/religion, etc.
Marketing position
Product portfolio
Product lifecycle
Boston Matrix

Marketing Model
Target Market
Aware
Understand
Believe
Want
Find
Buy
Use
Prefe
r
Revenue
Value
Experience
Point of Purchase
Above the
Line
Loyal
Below the Line
Intention to
Purchase
Behavior
Marketing Management Philosophies
Competing
Philosophies


Production
Sales
Market
Societal Marketing
Module 3
Marketing Management Philosophies

Philosophy
Key Ideas
Production
Sales
Market
Societal
Focus on efficiency of internal operations
Focus on satisfying customer needs and wants
Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being
Focus on aggressive techniques for
overcoming customer resistance
The Marketing Concept
Focus on
Customer Wants
and Needs
Integrate Organizations
Activities to Satisfy
Customer Needs and
Wants
Achieve Organizations
Long Term Goals by
Satisfying Customer
Wants and Needs

Comparing Sales and Market
Orientations
Market
Orientation
Outward

Coordinated
use of all
marketing
activities

Customer
satisfaction

Specific
groups
of people

Satisfying
wants and
needs

Organizations
Focus
Firms
Business


For
Whom?

Primary
Profit Goal?
Tools to
Achieve
Selling goods
and services
Everybody

Maximum
sales
volume

Primarily
promotion

Inward

Sales
Orientation
Developing Competitive Advantage
Competitive
Advantage
Customer
Value
Customer
Relationships
Customer
Satisfaction
Value and Satisfaction
Expectation
Performance
8 10
If performance is lower than expectations, satisfaction is low.
If performance is higher than expectations, satisfaction is high.
Expectation Performance
10 8
Why so many products fail in Egypt?