Introduction to Marketing


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Introduction to Marketing

  1. 1. 1 2 0 1 2 – S e p By: Mostafa Gazar
  2. 2.  What is Marketing?  Some theories of communications: o Linear Model. o Two-step Model. o Multi-step Model.  Marketing laws.  Sample Marketing Plan Outline.  References. 2
  3. 3.  Marketing must be understood not in the old sense of making a sale - 'selling' - but in the new sense of satisfying customer needs. Many people think of marketing only as selling and advertising.  Marketing deals with identifying and meeting human and social needs.  Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and managing customer relationships in ways that benefit the organization. 3
  4. 4. Linear Model (Interactive in case we included the feedback) 4
  5. 5. Two-step Model 5
  6. 6. Multi-step Model 6
  7. 7. The Law of Leadership It is better to be first than be better The Law of the Ladder The strategy to use depends on which rung you occupy on the ladder The Law of the Category If you can’t be the first in a category, set up a new category that you can be first in The Law of Duality In the long run, every market becomes a two horse race The Law of the Mind It’s better to be first in the mind than to be first in the marketplace The Law of the Opposite If you’re shooting for second place, your strategy is determined by the leader The Law of Perception Marketing is not a battle of products, it’s a battle of perceptions The Law of Division Over time, a category will divide and become two or more categories The Law of Focus The most powerful concept in marketing is owning a word in the prospect’s mind The Law of Perspective Marketing effects take place over an extended period of time The Law of Exclusivity Two companies cannot own the same word in the prospect’s mind The Law of Line Extension There’s an irresistible pressure to extend the equity of the brand 7
  8. 8. The Law of Sacrifice You have to give up something in order to get something The Law of Success Success often leads to arrogance, and arrogance to failure The Law of Attributes For every attribute there is an opposite, effective attribute The Law of Failure Failure is to be expected and accepted The Law of Candor When you admit a negative, the prospect will give you a positive The Law of Hype The situation is often the opposite of the way it appears in the press The Law of Singularity In each situation, only one move will produce substantial results The Law of Acceleration Successful programs are not built on fads, they are built on trends The Law of Unpredictability Unless you write your competitor’s plans, you can’t predict the future The Law of Resources Without adequate funding an idea won’t get off the ground 8
  9. 9. 9 1. The Law of Leadership o The law of leadership is convincing people that you are the first in a particular market. o It is easier to convince someone that you are first rather than convince them that you have a better product. o The leading brand in a category are usually the first in the mind of consumers o People tend to stick with what they’ve got. 2. The Law of the Category o If you are not the first product in the market, you should try to find a new category and be the first in that category o IBM was the first in computers, but DEC was the first in minicomputers o Dell was not the first computer seller, but they were the first in selling computers over the phone o Everyone is interested in what is new, not necessarily what is better
  10. 10. 10 3. The Law of the Mind o The problem is getting the idea or concept into the person’s mind. o You cannot change a person’s mind – once they perceive a company of being one thing, they forever feel that it is that thing eg: Xerox will always be a photocopier company and never a computer company, no matter how hard they try. o Sometimes a simple and easy way of getting into a prospect’s mind is to have an easy to remember name, such as Apple computers as opposed to the MITS Altair 8800. 4. The Law of the Perception o The product itself is not central to the marketing, it is the perception in the mind of the consumers that is the important thing. o If you tell someone in Japan that you bought a Honda, they would automatically assume that you are talking about a motorcycle – if you told someone in New York that you bought a Honda they would assume that you are talking about a car. Honda is perceived differently in different markets.
  11. 11. 11 I. Mission Statement: A. Purpose of the marketing plan. B. Why are we in business, personal and business goals? C. Business goals and objectives as well as specific strategies to reach them. II. Product/Service: A. Identify product/service in terms of name, trademark, color, shape, and other characteristic, including packaging and labeling. B. Describe product/service weaknesses. C. Describe product lines, and new products/services that will be introduced. D. Give cost of each product/service. E. Give the price you plan to charge for each product/service F. Identify percent of annual sales and total dollar amount each product/service represents.
  12. 12. 12 III. Market: A. Identify your customers - include all demographic and lifestyle information. B. Identify location of customers (local, regional, national or international). C. Identify the size of the total market. D. Identify market trends, including information about market studies and test marketing. E. List factors that affect purchasing such as: seasons, price, availability, service, emotional considerations, etc… F. Will promotional activities be concentrated in specific markets?
  13. 13. 13 IV. Competition (Direct and Indirect): A. Identify competitors by divisions, product lines and markets. B. Identify and compare your company's and your competitors' strengths and weaknesses. C. Compare your marketing techniques with those of your competitors. V. Pricing: A. Product/service costs including all variable and fixed expenses. B. Be sure all products/services carry their share of expenses plus provide for profit. C. Compare prices for your products/services with similar products/services in the industry. 1. If your prices will be higher, they need to provide the necessary "added value" to justify. 2. If your prices are lower, explain why in terms of your marketing strategy.
  14. 14. 14 VI. Distribution: A. Identify the most effective methods for getting products/services to customers in the target market. VII. Promotion Mix: A. Use of ad agency and/or in-house ad department. B. Media choices, how selected and target audience.
  15. 15. 15 VIII. Sales Forecasting: A. Show recent sales trends in industry. B. Project sales and income for next four quarters. IX. Action Plan: A. List all marketing strategies/activities. B. Prioritize all strategies by levels of importance. X. Production: A. Determine level of production/service necessary to meet demand generated by marketing.
  16. 16.  Principles of Marketing  The 22 immutable laws of marketing  University of Missouri Small Business Start-up Kit Materials ( 16