Essential of Technology Entrep. & Innovation-Chapter seven what is marketing

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In chapter seven, we are discussing the essential concepts of marketing.
This course provide the students with a conceptual knowledge regarding the essentials for management practices of a technology-based organization, and the evolution of technology. The topics covered in this course would include: • Introduction to the concept of entrepreneurship. • What entrepreneurs do and their importance to economy • How to seize business opportunity; • Know the process of creativity and difference between invention and innovation • Know how innovation is important as a dimension of entrepreneurship • Critical factors in managing technology; including • The Time Factor (Osborn effect) • Technology Push and Market Pull • The S-Curve of Technology • Technology and Product Life Cycle • The Chain Equation of Technology Innovation • Price Knowledge Gape Relation • Difference between Entrepreneurship and Stewardship Management • Difference between technology leader and followers • Competition and Competitiveness Concepts. • The process of the technological innovation; • Who are the customers; and • How to optimize cost and find finance for your projects • Demonstrate the importance of business plan, including the marketing and financial plans and how to prepare it. • Know the structure and management of a technology organization

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Essential of Technology Entrep. & Innovation-Chapter seven what is marketing

  1. 1. CS443 Course Introduction To Entrepreneurship p p Spring 2009, Modern Science & Arts University Chapter Seven: What is Marketing?Instructor:Al-Motaz Bellah Alaa Al-AgamawiChapter Source, “chapter Three: entrepreneurship starting and operating a small business”book, by Steve Mariotti, 2007, Pearson Education, Inc. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  2. 2. What is Marketing?2 Marketing is satisfying customer at a Profit Profit. A Market is a group of People with a potential of interest of buying a givenproduct or service. Marketing is the business function that identifies the customers and their needs and M f fwants. Through the Marketing, the name of your business comes to mean something clear g g y gand concrete in the customer’s mind. Marketing is the way a business tells its customers that its committed to meetingtheir needs needs. Marketing should constantly reinforce your competitive advantage, which is whatmakes customers choose your business over the competition. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  3. 3. A Business that Markets VS a Market Driven Business3 Marketing is the Engine that drives all the business decisions decisions. Most experts agree that, to be successful, a business must develop its marketingvision first, and then use it as the basis for all subsequence decisions. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  4. 4. How Customers Decide to Buy4 Step One: Ask yourself what need your product serves serves. Step Two: Think about who might actually buy your products. Remember that the people who use a product are not always the buyers. Ex: M Mother buy childrens clothes. So if you are making kids playsuits, S f they should offer a benefit that appeals to mothers. Step Three: Analyze the buying process that leads consumer to your products: p y y gp y p Awareness: The consumer realize a need. Information Search: Consumer seeks information about products that could fulfill their need need. Evaluate Alternative: Decide to Purchase: The first purchase is really a test. Evaluation f P h E l i of Purchase: If your product perform well, the consumer may d f ll h begin to develop loyalty to your brand and tell others about it. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  5. 5. Developing a Marketing Plan5 You must begin with the Consumer Analysis, before you can develop a marketing Analysisvision for your business, you will need to know who your customers are? What they want? W ? Why does a customer go to a hardware store to by a drill? y g y Because she need to make a hole. The hole is what the customer needs, not the drill. If the hole could be bought at the hardware store, the customer would not store bother to buy the drill. If you are marketing drill, therefore, you should explain to the customer what good holes your drills make! dh l d ill k ! What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  6. 6. Features Create Benefits6 The Features are facts facts. The feature of a drill might include its hardness and sharpness. Benefit is the fact that it make an excellent hole. The essence of selling is showing how and why the outstanding f f features of your fproduct and service will benefit customers. Smart marketers always emphasize benefits, not features. y p What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  7. 7. Needs, Wants and Demands7 Needs: States of felt deprivations deprivations. I am Hungry is a need. Wants: The form taken by human needs as they are shaped by culture andindividual personality. Wants are objectives that will satisfy need. I am Hungry: I want a hamburger, a new Yorker might say. gy g g y Demands: Are wants that backed by buying power. People demand the products and services that best satisfy their wants within the limitations of their resources resources. A student might translate hunger into a demand for a Big MAC, while a lawyer might translate into a demand for an expensive steak dinner. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  8. 8. Needs, Wants and Demands8 Successful companies pay close attention for consumer demands demands. They constantly observe their consumers, survey them and analyze their wants,needs and demands. The trained sales-people keep an eye open f customers needs that might be forgoing unfulfilled. This is all part of consumer analysis, the first step in developing a marketing plan. p y p p g gp What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  9. 9. Company Mission is to Satisfy Customers9 The Mission Statement describes a company mission- its reason for existance Statement, mission existance. A concise mission statement not only tells your customers and employees what yourbusiness is about, it will be a guide for every business decision you make. Mission statement does not need to be longer than three sentences. It should express both a business’s strategy and its primary tactics. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  10. 10. Market Research help you Visualize your Customer10 Market research is the process of finding out the following: Who your potential customers are. Where you can reach them What they want and need You will want to get into your current and potential customers brains and find outwhat they really think about: y y Your product and service The name of your business Your location Your logo Your prices Your Y promotional efforts i l ff What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  11. 11. Market Research help you Visualize your Customer11 Market research helps you get a fix on who your customers are: How old are they? What kind of income do they earn? What is the benefit your product or service offers that would best attract W f ff them? The ideal customer should be at the center of your marketing plan. This profile will guide every marketing decision you make. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  12. 12. Market Research12 In the marketing research phase, you will want to find everything you can about phaseyour ideal customer, as What do those people eat, drink, listen to, watch on TV? How much do they sleep?? Where do they shop? What movies do they like? y How much do they spend? You need to know everything and anything about your target customer segment. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  13. 13. Market Research- Where can you find this kind of Info?13 Internet Research: Search online for reports and statistics about the industry youwant to enter. Magazine Articles: Whenever a major magazine does an article about anindustry, the piece often includes statistics about the size of the target market and its f fpreferences. Business Libraries: Most major cities have libraries specializing in business. j p g What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  14. 14. Market Research- Types of Marketing research14 Survey and Focus Group: Surveys ask people directly, in interviews or through questionnaires, what they think about products or services if it were available. Af focus group is composed of approximately a dozen people who do use or f might use a certain product. A group is typically led by a facilitator trained in marketing research who question the group about a product or service. The g q g p p resulting discussion is usually videotaped for later analysis. General Research: Libraries, city agencies, the chamber of commerce, and theInternet are good sources of marketing information information. Statistical Research-Statistics: Are facts collected and presented in a numericalfashion, often as percentages. Industry Research: Thi f I d R h This focus not on i di id l consumers b on the industry as a individual but h i dwhole. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  15. 15. Market Research- Types of Marketing research15 Choose a business name that is easy to remember describes your business, and remember, businesshelps establish "mind share.” Create a logo that symbolizes your business to the customer. Develop a good reputation. Create a brand personality. Is your brands "personality". youthful and casual, like the Gap? Safe and y p y y p serious, like Volvo? Customers will respond to brand personality and develop a relationship with your brand. Personality will reinforce your name and logo. Communicate your brand personality to your target market market. What type of advertising will best reach your target market? Where should you put flyers? Which newspapers or magazines does your target market read? What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  16. 16. Seven Things to Build and Maintain Brand16 Provide a high quality product or service .. high-quality service. Maintain the highest ethical standards. Define your product or service clearly-focus! Treat your employees well. Make all your ads positive and informative-whether they are simple posters andflyers, or television commercials. y Associate your company with a charity. Become actively involved in your community. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  17. 17. Market Survey- An Ongoing Part of Your Business17 Market research is not something you only do once. Make it an on going part of once on­goingyour business. Just as your tastes and desires change as you learn about new ideasand products, so do those of your customers. By continuing to survey your customers as you run your business, you will staycurrent with their needs and how they feel about your product. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  18. 18. Market Segment18 If the best marketing strategies are focused on the consumer, a company clearly consumerhas to choose which consumers to target. After all, you cannot please all of the people all of the time! Chances are, yourproduct will not be needed by every individual in the marketplace. You will need to figure out which segments of the market to target. It is difficult to target simultaneously two very different segments of a market. g y y g What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  19. 19. Market Segmentation Methods19 Geographic Segmentation: Dividing a population by location Demographic Segmentation: Dividing a population based on a variable like age,gender, income, or education Psychographic Segmentation: Dividing a population by psychological P h hi S i ddifferences, such as opinion (conservative vs. liberal) or lifestyle. Behavioral Segmentation: Dividing the market by purchase behaviors that have g ypbeen observed, such as brand loyalty or responsiveness to price. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  20. 20. Product Life Cycle20 Introduction: Consumers are curious about your product but not familiar with it it.Marketing at this stage will require a lot of education and experimentation withprice and presentation. Growth: A G h Attracted by your growth in sales, competitors now start entering yourmarket, so efforts at this stage will have to focus on communicating your competitiveadvantage to consumers. g Maturity: At this stage, consumers have become savvy about both you and yourcompetitors. Advertising needs to focus on promoting brand loyalty. Decline: Even reluctant consumers have bought or are aware of your product bynow. New developments will be necessary to revive the markets interest. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  21. 21. Is Your Market Saturated?21 Figuring out where your product is in the PLC will tell you whether your market isclose to saturation. In other words, have all 3 million people in your market already bought acompetitors product? ? Nokia, for example, has sold 41 million of the 165 million cell phones that havebeen sold. But that market is nowhere near saturation. Meanwhile, Nokia hasintroduced its Short Message Service (SMS), which will allow e-mail messages to besent between mobile phones in Finland. SMS has quickly become Finnish teenagersfavorite way to communicate, and observing how the technology has spread among communicatethem is giving the company invaluable hints about how to market SMS in the 140countries where it sells cell phones. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  22. 22. Market Positioning22 After deciding which market segments to target, an entrepreneur will need to targetdecide what position the company should try to occupy in the market segments. Position is "the place that the product occupies relative to competitors in consumersminds.““ The goal of market positioning, therefore, is to distinguish your product or servicefrom others being offered to the market segments you have targeted. g g y g You can do that by focusing on your competitive advantage. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  23. 23. Chapter Assignment…23 Chapter 3, entrepreneurship starting and operation a small business book Page 82, key concept question, number 5 Week. Assignment Deadline: Next Week What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  24. 24. Business Plan Practice (Project Section)…24 Chapter 3, entrepreneurship starting and operation a small business book Page 81, Question number 2 Page 81, Question number 3 Page 81, Question number 4 Page 82, Key concept questions, number 2 Page 83 Exploring O li P 83, E l i Online Assignment Deadline: Week After Next. What is Marketing? Chapter 7 By: Motaz Al-Agamawi
  25. 25. 25 Q&A… What is Marketing? Chapter 7 By: Motaz Al-Agamawi

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