What is marketing?

Marketing is the management process through which goods and services move form concept to the customer, as well as it is based on thinking about business in terms of customer needs and their satisfaction ,Companies establish their marketing plan for a long term or a short term.

What is marketed??
Goods: cars Services: hotels Events: trade shows Experiences Persons: celebrities Places: cities Properties: real state agents/investment companies and banks organization Information: schools universities magazines ideas

Where dose marketing occur?

Marketplace: physical stores, departments. Market space: digital online. Meta market: both physical and digital.

How can you market ??

Through advertisement on: 1-radio 2-TV 3-social media (facebook, twitter, create a blog) 4-banners on other websites 5-telemarketing

What motivates a consumer to take action??

Note: marketing is managing of profitable relationships and satisfying their needs. A marketers must differentiate between needs wants and demand: 1-need: state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am thirsty

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2-wants: form that a human need takes as shaped by culture and individual personality i.e. I want a coca-cola 3- demands: human wants backed by buying power i.e. I have money to buy a coca-cola

short term vs. long term marketing:

Short term marketing: 1-Short-term marketing efforts tend to cause sudden sales spikes which rarely last. 2-These sharp sales increases are usually the result of a targeted marketing campaign or time limited offer. 3-It must be for less than 5 years.

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Long term marketing: 1-long term of an organization intend to be achieved over a period of 5 years or more also 2- it usually include specific improvement in the organization competitive position ,technology leadership profitability return on investment employee relations productivity and corporate image.

The marketing process:

Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort

What is market analysis:

The goal of a market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm.

David A. Aaker outlined the following dimensions of a market analysis:

Market size (current and future) Market growth rate Market profitability Industry cost structure Distribution channels Market trends Key success factors

Target market
Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. target marketing can be the key to a small businesss success. The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more costeffective. Target marketing provides a focus to all of your marketing activities.

Positioning (marketing)
In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.

Product positioning process

Generally, the product positioning process involves: Defining the market in which the product or brand will compete (who the relevant buyers are) Identifying the attributes (also called dimensions) that define the product 'space' Collecting information from a sample of customers about their perceptions of each product on the relevant attributes

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Determine each product's share of mind. share of mind :is the amount of attention that is required by something and the time that is actually spent thinking about the something. Determine each product's current location in the product space Determine the target market's ideal vector and determine the position of your product in the relation to the ideal vector Examine the fit between: The position of your product The position of the ideal vector position

What is Market segmentation

Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers.

The need for market segmentation:

The marketing concept calls for understanding customers and satisfying their needs better than the competition. But different customers have different needs, and it rarely is possible to satisfy all customers by treating them alike. Target marketing on the other hand recognizes the diversity of customers and does not try to please all of them with the same offering. The first step in target marketing is to identify different market segments and their needs.

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Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers. Mass marketing allows economies of scale to be realized through mass production, mass distribution, and mass communication. The drawback of mass marketing is that customer needs and preferences differ and the same offering is unlikely to be viewed as optimal by all customers. If firms ignored the differing customer needs, another firm likely would enter the market with a product that serves a specific group, and the incumbent firms would lose those customers.

Requirements of Market Segments

 In addition to having different needs, for segments to be practical they should be evaluated against the following criteria: Identifiable: the differentiating attributes of the segments must be measurable so that they can be identified. Accessible: the segments must be reachable through communication and distribution channels.

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Substantial: the segments should be sufficiently large to justify the resources required to target them. Unique needs: to justify separate offerings, the segments must respond differently to the different marketing mixes. Durable: the segments should be relatively stable to minimize the cost of frequent changes. note: a good market segmentation will result in segment members that are internally homogenous and externally heterogeneous; that is, as similar as possible within the segment, and as different as possible between segments.

Bases for Segmentation in Consumer Markets

Consumer markets can be segmented on the following customer characteristics. Geographic Demographic Psychographic Behavioralistic

Geographic Segmentation
The following are some examples of geographic variables often used in segmentation. Region: by continent, country, state, or even neighborhood Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions

Demographic Segmentation
Some demographic segmentation variables include: Age Gender Family size Family lifecycle Generation: baby-boomers, Generation X, etc. Income Occupation Education

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Ethnicity Nationality Religion Social class Many of these variables have standard categories for their values. For example, family lifecycle often is expressed as bachelor, married with no children (DINKS: Double Income, No Kids), full-nest, emptynest, or solitary survivor. Some of these categories have several stages, for example, full-nest I, II, or III depending on the age of the children.

Psychographic Segmentation
Psychographic segmentation groups customers according to their lifestyle. Activities, interests, and opinions (AIO) surveys are one tool for measuring lifestyle. Some psychographic variables include: Activities Interests Opinions Attitudes Values

Behavioralistic Segmentation
Behavioral segmentation is based on actual customer behavior toward products. Some behavioralistic variables include: Benefits sought Usage rate Brand loyalty User status: potential, first-time, regular, etc. Readiness to buy Occasions: holidays and events that stimulate purchases Behavioral segmentation has the advantage of using variables that are closely related to the product itself. It is a fairly direct starting point for market segmentation.

Bases for Segmentation in Industrial Markets

In contrast to consumers, industrial customers tend to be fewer in number and purchase larger quantities. They evaluate offerings in more detail, and the decision process usually involves more than one person. These characteristics apply to organizations such as manufacturers and service providers, as well as resellers, governments, and institutions. Many of the consumer market segmentation variables can be applied to industrial markets. Industrial markets might be segmented on characteristics such as: 1-Location 2-Company type 3-Behavioral characteristics

Location
In industrial markets, customer location may be important in some cases. Shipping costs may be a purchase factor for vendor selection for products having a high bulk to value ratio, so distance from the vendor may be critical. In some industries firms tend to cluster together geographically and therefore may have similar needs within a region.

Company Type
Business customers can be classified according to type as follows: Company size Industry Decision making unit Purchase Criteria

Behavioral Characteristics
In industrial markets, patterns of purchase behavior can be a basis for segmentation. Such behavioral characteristics may include: Usage rate Buying status: potential, first-time, regular, etc. Purchase procedure: sealed bids, negotiations, etc.

The Marketing Mix (The 4 P's of Marketing)

Marketing decisions generally fall into the following four controllable categories: Product Price Place (distribution) Promotion

The marketing mix

These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.

The four Ps vs. Cs

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product Customer solution

price

Customer cost

place

convenience

promotion

communication

Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made: Brand name Styling and design Quality and variety Safety Packaging Repairs and Support Warranty Accessories and services

Price Decisions
Some examples of pricing decisions to be made include: Pricing strategy (skim, penetration, etc.) Income(gross, disposal) Value based pricing and ,loss leader, by product pricing, cost plan. Cash and early payment discounts Seasonal pricing Bundling Going rate(gold) complementary

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution decisions include: Distribution channels Market coverage (inclusive, selective, or exclusive distribution) 1-inclusive distribution: convenience good (yogurt) 2-selective distribution: shopping goods(clothes) 3-exlusive distribution: specialty goods(lexus)

Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include: sponsoring Advertising Branding(national brand, generic brand, private label brand) Sales promotions Public relations & publicity

Managing marketing effort

The company wants to design and put into action the marketing mix that will best achieve its objectives in target markets. This involves four marketing management functions. The four functions are: analysis, planning, implementation, and control

Product life cycle

like human beings, products also have an arc. From birth to death, human beings pass through various stages e.g. birth, growth, maturity, decline and death. A similar lifecycle is seen in the case of products, The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures.

To say that a product has a life cycle is to assert three things:

1-Products have a limited life. 2-Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, 3-Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.

Product life cycle

1. Market introduction stage

1-costs are very high 2-slow sales volumes to start 3-little or no competition 4-demand has to be created 5-customers have to be prompted to try the product 6-makes no money at this stage

2. Growth stage
1-costs reduced due to economies of scale 2-sales volume increases significantly 3-profitability begins to rise 4-public awareness increases 5-competition begins to increase with a few new players in establishing market 6-increased competition leads to price decreases

3. Maturity stage
1-costs are lowered as a result of production volumes increasing and experience curve effects 2-sales volume peaks and market saturation is reached 3-increase in competitors entering the market 4-prices tend to drop due to the proliferation of competing products 5-brand differentiation and feature diversification is emphasized to maintain or increase market share 6-Industrial profits go down

4. Saturation and decline stage

1-costs become counter-optimal 2-sales volume decline 3-prices, profitability diminish 4-profit becomes more a challenge of production/distribution efficiency than increased sales

Assigning growth opportunities:

Market penetration strategy: 1-encourage current customers to buy more. 2-attract competitors customers 3-attract non-users Market development strategy: 1-expand to new markets 2-have additional distribution channels 3-sell in new locations

Product development strategy: By adding new features Diversification strategy: to produce products with new unique features.

The marketing environment

Factors and forces outside of marketing's direct control. Affect management ability to develop and maintain Successful transactions with target customers

microenvironment
Forces close to the company That affect its ability to serve customers 1- the company 2-suppliers 3-marketing intermediaries 4-cusomter 5-competitors 6-publics

Macroenvironmnet
Larger, societal forces that affect the organizations microenvironment 1-demografic forces 2-econimic forces 3-natural forces 4-technological forces 5-political forces 6-cultural forces

Thank you for your listening