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This document discusses key marketing concepts including: 1) The 4 Ps of marketing - product, price, promotion, and place which are elements an organization controls to satisfy customers. 2) Extended marketing concepts including people, physical evidence, and process which represent the human element, tangible experiences, and operational procedures of marketing. 3) Core concepts like segmentation, targeting, positioning, branding, and the supply chain which are fundamental to understanding customer needs and delivering value. The document provides an overview of fundamental marketing principles for developing strategies that satisfy customer wants and communicate an organization's offerings.
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This document defines and explains several core marketing concepts. It discusses needs and wants, demand, target markets, positioning, segmentation, offerings, brands, value, satisfaction, marketing channels, supply chains, competition, and the marketing environment. The key concepts covered are the difference between needs and wants, how demands arise from wants, the purpose and types of target markets, positioning, and segmentation strategies, and how companies address customer needs through value propositions, offerings, and brands.
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- 2. Key Customer Markets Consumer goods and services such as soft drinks and cosmetics, spend a great deal of time trying to establish a superior brand image. Consumer Markets
- 3. Key Customer Markets Companies selling business goods and services often face well- trained and well- informed professional buyers who are skilled in evaluating competitive offerings. Business Markets
- 5. Key Customer Markets Companies face challenges and decisions regarding which countries to enter, how to enter the country, how to adapt their products/services to the country, and how to price their products. Global Markets
- 6. Companies selling to these markets have to price carefully because these organizations have limited purchasing power. Nonprofit/ Government Markets Key Customer Markets
- 8. Core Marketing Concepts • States of felt deprivation • Physical: Food , Clothing, Warmth, Safety • Social: Belonging & Affection • Individual: Knowledge & Self Expression Needs • Form that human needs take as shaped by culture & individual personality. Wants • Human wants backed by buying power.Demand
- 9. • Dividing the markets into segments of customersSegmentation • Which segment to go after Targets Markets • Consumer’s perception of the product.Positioning Core Marketing Concepts
- 10. Core Marketing Concepts • Offering: Intangible Value proposition made physical by an offering. • Brand: Offering from a known source Offerings & Brands • Value: Sum of perceived tangible or intangible benefits and cost to customer. • Satisfaction: Reflects a person’s judgments of products perceived performance in relation to expectations. Value & Satisfaction • Communication Channel: • Distribution Channel • Service Channels Marketing Channels
- 11. Core Marketing Concepts • Channel stretching from raw material to components to final products that are carried to final buyers Supply Chain • Includes all the actual and potential rival offerings and substitute a buyer might consider. Competition • Task Environment • Broad Environment Marketing Environment
- 12. MARKETING MIX
- 13. Marketing MIX Marketing Mix is defined as the elements that an organization controls that can be used to satisfy or communicate with customers.
- 14. 4 Ps of Marketing
- 15. Product •Product Variety •Quality Level •Design •Packaging •Warranties •Product Lines •Branding •Services A product, service or idea is that which satisfies the needs & wants of the customers
- 16. Price 1. List Price 2. Discounts & Allowances 3. Payment period 4. Credit terms Price is the amount a consumer pays in exchange for the product or service.
- 17. Promotion Sales Promotion Advertising Sales Force Public Relations Direct Marketing Promotion activities are meant to communicate & persuade the target market to buy the company’s products.
- 18. Place Channels Coverage Assortments Locations Inventory Transport Place represents the location where a product can be purchased.
- 20. People All people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers.
- 21. Physical Evidence The direct sensory experience of a product or service that allows a customer to measure whether he has received value.
- 22. Physical Evidence Packaging. Internet/web pages. Paperwork (such as invoices, tickets and despatch notes). Brochures Furnishings. Signage (such as those on aircraft and vehicles). Uniforms. Business cards. The building itself (such as prestigious offices or scenic headquarters).
- 23. Process Procedures, Mechanisms and Flow of Activities which lead to an exchange of value
- 24. 7Ps & 7Cs The 7Ps The 7 Cs Organization Facing Customer Facing Product Customer Price Cost Place Convenience Promotion Communication People Caring Process Co-ordinated Physical Evidence Confirmation
- 25. Marketing Debate: Take a Position! Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers?