MARKETING <ul><li>What is Marketing? </li></ul><ul><li>Societal process by which individual and groups obtain what they need and want through creating, offering and freely exchanging products & services of value with others. </li></ul><ul><li>What is Marketed? </li></ul><ul><li>Good </li></ul><ul><li>Properties </li></ul><ul><li>Organizations </li></ul><ul><li>Information </li></ul><ul><li>Idea </li></ul><ul><li>Places </li></ul><ul><li>Services </li></ul><ul><li>Events </li></ul><ul><li>Experiences </li></ul><ul><li>Persons </li></ul>
Core Marketing Concept Needs - Basic human requirement. - Each individual must have. - Food, clothing, water, shelter Wants - Directed to buy specific product that might satisfy need. - Usually influenced by culture and individual personality - US : Eat burger, soft drinks Malaysia: Eat Nasi lemak, tea tarik Demands - Wants for specific product backed by ability to pay. (purchasing power)
<ul><li>MARKETING MIX </li></ul><ul><li>A unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. (4Ps – Product, Place, Price, Promotion). </li></ul><ul><li>PRODUCT </li></ul><ul><li>The starting point of marketing mix is the product offering and product strategy. </li></ul><ul><li>Product can be tangible goods (computer, book) and intangible (consultation, car services). </li></ul><ul><li>Includes physical unit, package, warranty, after-sale service, brand name, image and value. </li></ul><ul><li>PLACE (DISTRIBUTION) </li></ul><ul><li>Product availability when and where customer want them. </li></ul><ul><li>Involves all activities from raw materials to finished goods. </li></ul><ul><li>The goal is to make sure products arrive in usable condition at designated places when needed. </li></ul>
<ul><li>PROMOTION </li></ul><ul><li>Role is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading and reminding them of the benefits of an organization or a product. </li></ul><ul><li>Includes: advertising, public relations, sales promotion and personal selling. </li></ul><ul><li>PRICING </li></ul><ul><li>Price is what a buyer must give up to obtain a product. </li></ul><ul><li>Price is the most flexible element of the 4Ps. </li></ul><ul><li>Marketers can raise or lower the prices more frequently. </li></ul><ul><li>Price X Unit Sold = Total Revenue </li></ul><ul><li>SWOT ANALYSIS </li></ul><ul><li>Marketers must understand the current & potential environment that the product or service will be marketed in. </li></ul><ul><li>SWOT Analysis: Identifying internal strength (S) & weaknesses (W) & also examining external opportunities (O) & threats (T). </li></ul>
MARKETING MIX PRODUCT PRICE PROMOTION PLACE Product variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns List price Discounts Allowances Payment Period Credit Terms Sales promotion Advertising Sales force Public Relations Direct Marketing Channels Coverage Assortments Locations Inventory Transport
<ul><li>Five main promotion tools: </li></ul><ul><li>Advertising : Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertising includes print, radio and television, newspaper, magazine and other forms. </li></ul><ul><li>Personal selling : Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Personal selling includes sales presentations, fairs and tradeshow and incentives programmes </li></ul><ul><li>Sales promotion : Short-term incentives to encourage the purchase or sale of a product or service. Sales promotion includes activities such as premiums, discounts, coupons and competitions. </li></ul><ul><li>Public relations : Building good relation with the company’s various public by obtaining favorable publicity, building up a good ‘corporate image’. </li></ul><ul><li>Direct marketing : Direct connections with carefully targeted individual consumers both to obtain an immediate response and to cultivate lasting customer relationships-the use of telephone, mail, fax, email, the internet and other tools to communicate directly with specific consumers. </li></ul>PROMOTION STRATEGY
Negotiating Skills: Sales Strategy <ul><li>Understand your product/service value Before you try to sell anything, it is critical that you know and understand your product line and its inherent value to your customers and prospects. Interview current and previous customers to determine the marketplace viewpoint of your product/service. </li></ul>
<ul><li>Know your competition </li></ul><ul><li>Research and study your competition. Know what they are selling and how it is working for them. Understand their price points and their perceived advantages to your prospect base. Keeping your competition in your hip pocket will help you continue to develop products and services that provide value to your customers, and will keep you strong at the negotiating table. </li></ul><ul><li>Know your sales strategy </li></ul><ul><li>How will you sell your products and services effectively? Know your strategy before you begin negotiating. Make sure you put your strategy to paper and put it into action with each opportunity to negotiate a sale. The better and stronger your strategy for selling your products/services, the better positioned you will be to come out ahead when negotiating with a prospect. </li></ul>
<ul><li>Understand your buyer and their motivation </li></ul><ul><li>Know your niche market so well that you understand a buyer’s motivation before they come to you. Each buyer will be different in what motivates them to buy—but based on past experience in selling your product or service, you will have a general idea of their motivation. </li></ul><ul><li>Don’t talk price—talk value </li></ul><ul><li>The buyer may bring up price right away. You need to talk value. Make sure you point out the value of your services/products without mentioning price, especially if you are a price leader. It is very important that the customer understand the value of your products/services if you intend to negotiate to the point of sale. </li></ul>
<ul><li>Whether you are a buyer or seller, you view the ultimate sales transaction from a different vantage point. Oddly enough, both are trying to achieve the same end result—purchase of a product or service that will fulfill the needs of both the buyer and the seller. Remember that the key to a successful sale is in the negotiation. The better negotiator you are, the better your chances for a good purchase or sale, and both parties will walk away from the transaction feeling good about the outcome. </li></ul>
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