Introduction to marketing


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Introduction to marketing

  1. 1. Introduction to Marketing Oran Doherty
  2. 2. What is Marketing? <ul><li>Marketing involves a range of processes concerned with finding out what consumers want, and then providing it for them. </li></ul><ul><li>A useful starting point therefore is to carry out market research to find out about customer requirements in relation to the 4Ps (the right Product , right Price , right Promotions and right Place ). </li></ul><ul><li>4Ps also known as Marketing Mix </li></ul>
  3. 3. What is Marketing? <ul><li>The Chartered Institute of Marketing defines marketing as 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably ‘. </li></ul><ul><li>Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process‘. </li></ul>
  4. 4. What is Marketing? <ul><li>• Marketing is about meeting the needs and wants of customers; </li></ul><ul><li>Marketing is a business-wide function – it is not something that operates alone from other business activities. </li></ul>
  5. 5. Marketing Management Philosophies /Concepts <ul><li>The Production Concept </li></ul><ul><li>Early 1900’s. Emphasis on production, make any product it will sell as demand>supply. </li></ul><ul><li>The Product Concept </li></ul><ul><li>Emphasis on producing a good product from organisation ‘s point of view. </li></ul><ul><li>The Selling Concept </li></ul><ul><li>Large scale advertising and promotions, no research or asking customer. </li></ul>
  6. 6. Marketing Management Philosophies /Concepts <ul><li>The Marketing Concept </li></ul><ul><li>The organisation first of all conducts research, then produces a product the consumer want at a suitable price and place and promote it. </li></ul><ul><li>The Societal Marketing Concept </li></ul><ul><li>Show concern for consumer and environment, healthy products. </li></ul>
  7. 7. Marketing Vs Selling <ul><li>The terms ‘marketing’ and ‘selling’ are related but not synonymous. While selling starts after production is over, marketing starts with finding out consumers’ needs, wants and preferences. </li></ul><ul><li>Marketing revolves around the customers, whereas selling revolves around the product. </li></ul>
  8. 8. The traditional marketing Mix <ul><li>The traditional marketing mix is the combination of 4 major tools of marketing: </li></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><li>Place </li></ul></ul><ul><li>The extended marketing mix has 7Ps with the extra 3 Ps: </li></ul><ul><ul><li>People </li></ul></ul><ul><ul><li>Physical evidence </li></ul></ul><ul><ul><li>Process </li></ul></ul>
  9. 9. P1: Product <ul><li>Making the product the customer values is essential to marketing. </li></ul><ul><li>Research should be conducted to determine consumer preferences. </li></ul><ul><li>Identifying a product that “fits” consumer preferences is the first step in marketing. </li></ul><ul><li>Packaging also important here. </li></ul>
  10. 10. P2: Price <ul><li>Once the company have determined which product to produce, marketers must decide the best price for their products. </li></ul><ul><li>Marketers use strategies such as </li></ul><ul><ul><li>Penetration Pricing (entering market with low prices) </li></ul></ul><ul><ul><li>Price Skimming (high prices to begin with, then lower) </li></ul></ul><ul><ul><li>Premium Pricing (constant high prices) </li></ul></ul>
  11. 11. P3: Promotions <ul><li>Promotions is the general term that describes all efforts made by a seller to communicate with the market, apart from price. </li></ul><ul><li>The Promotions Mix is made up of the following elements: </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Personal selling </li></ul></ul><ul><ul><li>Sales promotions </li></ul></ul><ul><ul><li>Direct marketing </li></ul></ul><ul><ul><li>Public Relations. </li></ul></ul>
  12. 12. P4: Place <ul><li>Determining how products reach the customer, how quickly and in what condition involves place, or distribution strategy. </li></ul><ul><li>To satisfy customers, products must be available at the right time and at a convenient place. </li></ul><ul><li>The marketer has to decide on the structure of channels of distribution (direct or indirect). </li></ul>
  13. 13. P5: People <ul><li>The majority of services depend on direct personal interaction between customers and the company’s employees, for example a child minder the provider is the service. </li></ul><ul><li>These interactions with other people in a service situation may influence a customer’s perceptions and expectations of service quality. </li></ul>
  14. 14. P6: Physical evidence <ul><li>The design of an appropriate physical environment is essential for the delivery of a service so as to compensate for its intangible nature. </li></ul><ul><li>Physical evidence includes: uniforms, reception areas, furniture, brochures, equipment and any other visible items. </li></ul>
  15. 15. P7: Process <ul><li>This refers to a particular method of operations or series of actions, usually involving steps that need to occur in a defined sequence. </li></ul><ul><li>Poorly designed processes will result in customer dissatisfaction because of slow and ineffective service delivery. </li></ul><ul><li>Services therefore need to be easily accessible and conveniently presented. </li></ul>
  16. 16. Marketing Services <ul><li>Marketing experts acknowledge that marketing a service is more difficult than marketing a tangible product. They identify the following as being characteristic of services: </li></ul><ul><li>Intangibility the service cannot be touched or viewed, so it is difficult for clients to tell in advance what they will be getting; </li></ul><ul><li>Inseparability of production and consumption the service is being produced at the same time that the client is receiving it </li></ul>
  17. 17. Marketing Services <ul><li>Perishibility unused capacity cannot be stored for future use. </li></ul><ul><li>Heterogeneity (or variability ): services involve people, and people are all different. There is a strong possibility that the same enquiry would be answered slightly differently by different people (or even by the same person at different times). </li></ul>
  18. 18. Criticisms of Marketing <ul><li>Marketing Encourages People to Purchase What They Do Not Need </li></ul><ul><li>Marketers exaggerate Product Claims </li></ul><ul><li>Marketing Contributes to Environmental Waste </li></ul><ul><li>Marketing infringes on Customers’ Right to Privacy </li></ul><ul><li>Manipulate easy targets like kids </li></ul><ul><li>Increases the cost of products? </li></ul>
  19. 19. Interesting Marketing Facts <ul><li>An average person sees 625 messages per day. </li></ul><ul><li>80% of all the household purchases are made or influenced by a woman. </li></ul><ul><li>The amount of money companies spend on social media and blogs has nearly doubled in last 2 years. </li></ul><ul><li>1 out of 8 minutes spent online is spent on Facebook </li></ul>
  20. 20. Interesting Marketing Facts <ul><li>People spend 300% more time on social media than email </li></ul><ul><li>81% internet users give their email address for a giveaway, deal, or upcoming sale. </li></ul><ul><li>Children are influencing family purchases more today than ever. These are the results of more mothers working and children's greater access to media. </li></ul>
  21. 21. Interesting Marketing Facts <ul><li>You can't rely on consumers to provide accurate information on their buying behaviour. They don't always do what they say they will! Therefore, be careful in interpreting consumer surveys. </li></ul><ul><li>It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer satisfied. </li></ul>