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Marketing Fundamentals v004
 

Marketing Fundamentals v004

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To provide the reader or the learner with an overview of the basic principles and practices of marketing.

To provide the reader or the learner with an overview of the basic principles and practices of marketing.

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  • 02/24/13 OxfordCambridge Dot Org
  • 02/24/13 OxfordCambridge.Org
  • 02/24/13 OxfordCambridge.Org.
  • 02/24/13 OxfordCambridge.Org.
  • 02/24/13 OxfordCambridge.Org.
  • 02/24/13 OxfordCambridge.Org.
  • 02/24/13 OxfordCambridge.Org.

Marketing Fundamentals v004 Marketing Fundamentals v004 Presentation Transcript

  • Marketing Contact Email Design Copyright 1994-2013 © OxfordCambridge.Org
  • KeyPoints to develop in your own time! Marketing Fundamentals Introductory concepts in Marketing Fundamentals@ OxfordCambridge.Org all for free and free for all. The information gathered here are under the format of KeyPoints for readers to develop in their own time. Some tips on how to proceed, perhaps: - Identify all the KeyPoints on which you feel a need to expand your knowledge. - Choose a good book or two or info from Internet and then work towards gaining the needed knowledge. Please Enjoy!Marketing Contact Email Design Copyright 1994-2013 © OxfordCambridge.Org
  • Aim of publication To provide the reader or the learner with an overview of the basic principles and practices of marketingMarketing Contact Email Design Copyright 1994-2013 © OxfordCambridge.Org
  • Learning Objectives After developing the KeyPoints outlined in this publication, you should mainly be able: ☺explain what marketing is ☺distinguish between micro- and macro-marketing ☺define consumer behavior ☺discuss the importance of defining personal needs ☺explain how consumers may be influenced ☺explain what marketers mean by "product“ ☺discuss the importance of brand familiarity ☺explain the role of packaging in the marketing process ☺define and explain the purpose of sales prospectingMarketing Contact Email Design Copyright 1994-2013 © OxfordCambridge.Org
  • Marketing Fundamentals – Summary. ☺ Marketers and marketing managers perform a range of activities to deliver goods and services into the hands of customers. ☺ Marketing provides direction for production by helping to make sure the right goods and services are produced and deliver to consumers. ☺ The universal functions of marketing are buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information. ☺ To understand the buying behavior of consumers, marketers turn to the behavioral sciences of psychology, sociology, and economics. ☺ A product is the need-satisfying offering of a firm. ☺ Marketers use packaging to help sell products, reinforce a promotional message.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • Marketing Fundamentals - Sections list ☺ (Section 1) Define Marketing ☺ (Section 2) Individual Consumer Behavior ☺ (Section 3) Product Planning ☺ (Section 4) Personal Selling ProcessMarketing Contact Email Design Copyright 1994-2013 © OxfordCambridge.Org
  • (Section 1) Define Marketing – Summary ☺ define what marketers do ☺ explain the relationship between marketing and production ☺ point out how marketing affects daily life ☺ distinguish between micro-marketing and macro-marketing ☺ explain how planned economic systems and market-directed economic systems work ☺ explain how marketing is related to the economy ☺ identify the stages of economic development ☺ discuss the universal functions of marketingMarketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 1) Define Marketing – HighPoints ☺ What is marketing? ☺ Micro- versus macro-marketing ☺ Marketing and the economy ☺ Stages of economic developmentMarketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 1) HighPoints – What is marketing? ☺ Marketers and marketing managers perform a range of activities that deliver a companys goods and services into the hands of its customers. ☺ Marketing provides direction for production by helping to make sure that the right goods and services are produced and that they find their way to consumers. ☺ Marketing can affect many aspects of daily life, including the radio and TV programs that are broadcast, the cost of goods and services, career options, and an individuals choices about what goods and services to buy and where.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 1) HighPoints – Micro- vs. Macro-marketing ☺ Micro-marketing is the performance of marketing activities that aim to accomplish an organizations objectives. ☺ Macro-marketing is a social process that directs an economys flow of goods and services from producers to consumers.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 1) HighPoints – Marketing and the economy ☺ An economic system organizes how an economy uses its resources to produce goods and services and to distribute them to various people and groups in society. ☺ In a planned economic system, government agencies decide the type and quantity of goods and services produced in the economy. ☺ In a market-directed economic system, the individual decisions of producers and consumers affect the whole economy. ☺ An economy needs an effective macro- marketing system in order to develop. ☺ Less-developed economies need market- oriented intermediaries to move surplus output to markets where there is more demand.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 1) HighPoints – Stages of economic development ☺ The main stages of economic development are: ☺ self-supporting agriculture ☺ pre-industrial ☺ primary manufacturing ☺ nondurable and semi-durable ☺ consumer products manufacturing ☺ capital equipment and consumer ☺ durable products manufacturing ☺ exporting manufactured products ☺ The universal functions of marketing are buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 2) Individual Consumer Behavior – Summary ☺ define consumer behaviour ☺ explain how consumers may be influenced ☺ identify the consumers who make choicesMarketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 2) Individual Consumer Behavior – HighPoints ☺ Defining consumer behavior ☺ Influencing consumers ☺ Making choicesMarketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 2) HighPoints – Defining consumer behaviour ☺ To understand the buying behavior of consumers, marketers turn to the behavioral sciences of psychology, sociology, and economics. ☺ Economic buyers are people who logically compare choices in terms of cost and value received to get the greatest satisfaction from spending their time and money. ☺ Economic needs are concerned with making the best use of consumers time and money. ☺ An individuals buying behavior is affected by psychological variables, such as motivation, perception, learning, attitudes, and lifestyle. ☺ Needs are the basic forces that motivate people. ☺ Wants grow from needs - they are learned needs.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 2) HighPoints – Defining consumer behaviour ☺ Wants grow from needs - they are learned needs. ☺ A drive is a strong stimulus that encourages action to reduce a need. ☺ Maslows hierarchy of needs shows that there are different levels of needs from basic physiological ones to higher level personal ones. ☺ Perception is the way individuals interpret the world; it determines how they will seek to fulfill their needs. ☺ Marketing and promotional efforts do not affect all consumers in the same way because each person has a unique perception of the world. ☺ Learning can be defined as gaining knowledge from experience. ☺ The learning process consists of three main steps: cues, response, and reinforcement.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 2) HighPoints – Defining consumer behaviour ☺ Consumers attitudes affect their selective and learning processes and so affect their buying habits. ☺ Researching and understanding consumer attitudes and beliefs can give marketers a better picture of markets, but attitudes and beliefs are not always good predictors of intentions to buy. ☺ Ethical issues may arise when companies reinforce consumers inaccurate beliefs. ☺ Consumer expectations often focus on the value and benefits expected from a companys marketing mix. ☺ Lifestyle analysis is the analysis of a persons day-to-day pattern of living as expressed in that persons activities, interests, and opinions.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 2) HighPoints – Influencing consumers ☺ Consumer behavior is often influenced by interpersonal relationships in families. ☺ Marketers must direct their promotional efforts not only at the purchaser but also at those who influence the purchaser. ☺ The social class that a consumer belongs to influences his or her purchasing behavior. ☺ Consumers are subject to a myriad of influences, including others opinions, cultural forces, and the purchase situation.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 2) HighPoints – Making choices ☺ Consumers tend to use a problem-solving process when making a purchase. ☺ This process involves the following steps: becoming aware of the problem, gathering information about possible solutions, evaluating possible solutions, deciding on the appropriate solution, and evaluating the decision. ☺ Consumers use three levels of problem solving: extensive problem solving, limited problem solving, and routinized response behavior. ☺ When consumers are faced with a completely new idea, they accept or reject it by using the adoption process.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 2) HighPoints – Making choices ☺ The adoption process is similar to the problem- solving process and includes the following main steps: awareness, interest, evaluation, trial, decision, and confirmation. ☺ When analyzing consumer behavior in international markets, marketers sometimes fail to understand the cultural variables at play and hold inappropriate stereotypes.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 3) Product Planning – Summary ☺ define product planning ☺ describe product life cycles ☺ explain product development ☺ explain what marketing channels areMarketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 3) Product Planning – HighPoints ☺ Definition of a product ☺ Business products ☺ Branding and brand familiarity ☺ PackagingMarketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 3) HighPoints – Definition of a product ☺ A product is the need-satisfying offering of a firm. ☺ From a marketing viewpoint, quality is a products ability to satisfy customer needs. ☺ A companys product may be a tangible good, an intangible service, or a mixture of both. ☺ Goods are usually produced and stored before they are sold. ☺ Services are usually sold before they are produced and cannot be stored or transported, making it difficult to balance supply and demand and apply economies of scale.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 3) HighPoints – Definition of a product ☺ A product assortment is all the products and product lines sold by a firm, whereas a product line is a set of closely related individual products. ☺ Consumer products are meant for a final consumer; business products are used in the process of making other products. ☺ There are four main groups of consumer products: convenience, shopping, specialty, and unsought.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 3) HighPoints – Business products ☺ The demand for business products is classified as derived demand because it is derived from the demand for final consumer products. ☺ An expense item is a business product, the total cost of which is treated as a business expense the year its purchased. ☺ A capital item is a long-lasting business product that can be used and depreciated for many years. ☺ Six different product classes are installations; accessory equipment; raw materials; component parts and materials; maintenance, repair, and operating (MRO) supplies; and professional services.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 3) HighPoints – Branding and brand familiarity ☺ Branding is the use of a name, term, symbol, or design to identify a product. ☺ Conditions that help a brand to become successful include the following: the product is easy to identify by brand or trademark; product quality can be maintained easily; product quality is the best value for the price; dependable and widespread availability is possible; demand is strong; economies of scale exist; and favorable shelf space or display space in stores is available. ☺ Brand familiarity is the level at which consumers recognize and accept a brand. ☺ Five levels of brand familiarity are useful for strategy planning: rejection, nonrecognition, recognition, preference, and insistence. ☺ A family brand is the same brand name for several products.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 3) HighPoints – Branding and brand familiarity ☺ Licensed brands are well-known family brands that producers pay a fee to use. ☺ Individual brands are used when a company produces several different products with separate brand names. ☺ Generic products have no brand at all, other than the identification of their contents and the manufacturer. ☺ Manufacturer brands are created by producers and distributed nationally or globally. ☺ Dealer brands are brands created by middlemen. ☺ Manufacturer brands and dealer brands are currently competing in a "battle of the brands" to determine which brands are more popular.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 3) HighPoints – Packaging ☺ Packaging entails promoting and protecting a product. ☺ Marketers use packaging to help sell products, reinforce a promotional message, and reduce losses due to damage, spoilage, or theft. ☺ In some countries, a label must give accurate information about product contents and allow value comparisons between products. ☺ A warranty is what the seller promises the consumer about a product. ☺ If a company chooses to offer a warranty, it must be clearly written and available for inspection before purchase. ☺ The stronger a warranty is, the more attractive it is to the consumer.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 4) Personal Selling Process – Summary. ☺ explain the purpose of sales prospecting ☺ describe a typical sales presentation ☺ explain the importance of defining personal needsMarketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 4) Personal Selling Process – HighPoints. ☺ Sales prospecting ☺ A sales presentation ☺ Identifying customers’ needs ☺ Making a saleMarketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 4) HighPoints – Sales prospecting ☺ A prospect is a person or organization that has the potential to purchase a companys products or services. ☺ Prospects are not the same as leads, which are people or organizations a salesperson suspects might be prospects. ☺ Qualified prospects should have the money to buy, the ability to buy, and the desire to buy. ☺ In the cold canvas prospecting method, reps approach leads they dont know. With the endless chain referral method of prospecting, salespeople use existing customers as sources of information about prospects. ☺ A referral is a person or organization recommended to a salesperson. ☺ Orphaned customers - people or organizations previously handled by a salesperson who has now changed jobs - are a rich source of prospects.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 4) HighPoints – Sales prospecting ☺ Salespeople can expand their range of prospects by participating in sales lead clubs and trade shows. ☺ Other ways of gathering prospects include the center of influence method, the observation method, networking, direct-mail prospecting, and telemarketing. ☺ Salespeople should follow three guidelines to enhance their prospecting methods: customize the method to suit the particular needs of the firm; focus on high potential customers to start with, leaving prospects with lower potential until later; and always return to prospects who didnt buy. ☺ To ensure a steady flow of potential customers, salespeople try to maintain a prospect pool - a list of names collected from four main sources: leads, referrals, orphans, and customers.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 4) HighPoints – A sales presentation ☺ The type of sales presentation given by a rep is determined by the sales call objective, the firms customer relations policy, and the reps knowledge of the prospect. ☺ The choice of sales presentation affects how much of the interaction will be directed by the rep. ☺ With structured techniques - such as prepared presentations - the salesperson directs the conversation; customers participation is limited to direct responses to planned questions, which include the reps request for an order.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 4) HighPoints – A sales presentation ☺ Prepared presentations (also known as memorized or canned presentations) are not suited to complicated situations because the same presentation is used for all customers. ☺ The selling formula method tries to combine the structure of a planned presentation with the flexibility of a customized presentation. ☺ It usually begins with a planned segment but ends with the customers clarifying their requirements.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 4) HighPoints – Identifying customers’ needs ☺ The consultative selling method aims to identify the customers needs at the beginning of the presentation. ☺ The consultative aspect is giving the customer equal or more participation time in the sales presentation. ☺ The consultative selling approach can be broken down into three phases: need development, need awareness, and need fulfilment. ☺ Salespeople use a combination of open questions and closed questions to discover a prospects needs. ☺ Closed questions are designed to elicit brief yes or no responses. Open questions are intended to encourage more expansive responses from the prospect.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • (Section 4) HighPoints – Identifying customers’ needs ☺ The multiple question approach (SPIN) outlines the sequence of the four questions types a rep asks in a presentation: situation, problem, implication, and need-payoff. ☺ During a presentation, a salesperson must continually assess the customers reactions. ☺ In addition to verbal responses, nonverbal communication through body and facial gestures can signal positive or negative reactions to the salespersons approach.Marketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
  • Marketing Fundamentals – Conclusion ☺ At this point you should be able to be familiar with the following: • define what marketers do • explain the relationship between marketing and production • distinguish between micro-marketing and macro-marketing • explain how marketing is related to the economy • discuss the universal functions of marketing • define consumer behavior • explain how consumers may be influenced • define product planning • describe product life cycles • say what marketing channels are • explain the purpose of sales prospectingMarketing Contact Email Design Copyright 1994-2011 © OxfordCambridge.Org
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  • Marketing Contact Email Design Copyright 1994-2013 © OxfordCambridge.Org