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

CS443 Course
Introduction To Entrepreneurship
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Spring 2009, Modern Science & Arts University

Chapter Seven: What is Marketing?

Instructor:
Al-Motaz Bellah Alaa Al-Agamawi

Chapter 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

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 given
product or service.
Marketing is the business function that identifies the customers and their needs and
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wants.
Through the Marketing, the name of your business comes to mean something clear
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and concrete in the customer’s mind.
Marketing is the way a business tells its customers that its committed to meeting
their needs
needs.
Marketing should constantly reinforce your competitive advantage, which is what
makes customers choose your business over the competition.


A Business that Markets VS a Market Driven Business
3

Marketing is the Engine that drives all the business decisions
decisions.
Most experts agree that, to be successful, a business must develop its marketing
vision first, and then use it as the basis for all subsequence decisions.


How Customers Decide to Buy
4

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 children's clothes. So if you are making kids playsuits,
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they should offer a benefit that appeals to mothers.
Step Three: Analyze the buying process that leads consumer to your products:
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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
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begin to develop loyalty to your brand and tell others about it.

Developing a Marketing Plan
5

You must begin with the Consumer Analysis, before you can develop a marketing
Analysis
vision for your business, you will need to know
who your customers are?
What they want?
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Why does a customer go to a hardware store to by a drill?
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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!
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Features Create Benefits
6

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
f
product and service will benefit customers.
Smart marketers always emphasize benefits, not features.
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Needs, Wants and Demands
7

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 and
individual personality.
Wants are objectives that will satisfy need.
I am Hungry: I want a hamburger, a new Yorker might say.
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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.


Needs, Wants and Demands
8

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
for
going unfulfilled.
This is all part of consumer analysis, the first step in developing a marketing plan.
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Company Mission is to Satisfy Customers
9

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 your
business 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.


Market Research help you Visualize your Customer
10

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 out
what they really think about:
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Your product and service
The name of your business
Your location
Your logo
Your prices
Your
Y promotional efforts
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Market Research help you Visualize your Customer
11

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
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them?

The ideal customer should be at the center of your marketing plan.
This profile will guide every marketing decision you make.


Market Research
12

In the marketing research phase, you will want to find everything you can about
phase
your 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?
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How much do they spend?
You need to know everything and anything about your target customer segment.


Market Research- Where can you find this kind of Info?
13

Internet Research: Search online for reports and statistics about the industry you
want to enter.
Magazine Articles: Whenever a major magazine does an article about an
industry, the piece often includes statistics about the size of the target market and its
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preferences.
Business Libraries: Most major cities have libraries specializing in business.
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Market Research- Types of Marketing research
14

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
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resulting discussion is usually videotaped for later analysis.
General Research: Libraries, city agencies, the chamber of commerce, and the
Internet are good sources of marketing information
information.
Statistical Research-Statistics: Are facts collected and presented in a numerical
fashion, 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 d
whole.

Market Research- Types of Marketing research
15

Choose a business name that is easy to remember describes your business, and
remember, business
helps establish "mind share.”
Create a logo that symbolizes your business to the customer.
Develop a good reputation.
Create a brand personality.
Is your brand's "personality". youthful and casual, like the Gap? Safe and
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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?


Seven Things to Build and Maintain Brand
16

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 and
flyers, or television commercials.
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Associate your company with a charity.
Become actively involved in your community.


Market Survey- An Ongoing Part of Your Business
17

Market research is not something you only do once. Make it an on going part of
once ongoing
your business. Just as your tastes and desires change as you learn about new ideas
and products, so do those of your customers.
By continuing to survey your customers as you run your business, you will stay
current with their needs and how they feel about your product.


Market Segment
18

If the best marketing strategies are focused on the consumer, a company clearly
consumer
has to choose which consumers to target.
After all, you cannot please all of the people all of the time! Chances are, your
product 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.
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Market Segmentation Methods
19

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 d
differences, such as opinion (conservative vs. liberal) or lifestyle.
Behavioral Segmentation: Dividing the market by purchase behaviors that have
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been observed, such as brand loyalty or responsiveness to price.


Product Life Cycle
20

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 with
price and presentation.
Growth: A
G h Attracted by your growth in sales, competitors now start entering your
market, so efforts at this stage will have to focus on communicating your competitive
advantage to consumers.
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Maturity: At this stage, consumers have become savvy about both you and your
competitors. Advertising needs to focus on promoting brand loyalty.
Decline: Even reluctant consumers have bought or are aware of your product by
now. New developments will be necessary to revive the market's interest.


Is Your Market Saturated?
21

Figuring out where your product is in the PLC will tell you whether your market is
close to saturation.
In other words, have all 3 million people in your market already bought a
competitor's product?
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Nokia, for example, has sold 41 million of the 165 million cell phones that have
been sold. But that market is nowhere near saturation. Meanwhile, Nokia has
introduced its Short Message Service (SMS), which will allow e-mail messages to be
sent between mobile phones in Finland. SMS has quickly become Finnish teenagers'
favorite way to communicate, and observing how the technology has spread among
communicate
them is giving the company invaluable hints about how to market SMS in the 140
countries where it sells cell phones.


Market Positioning
22

After deciding which market segments to target, an entrepreneur will need to
target
decide what position the company should try to occupy in the market segments.
Position is "the place that the product occupies relative to competitors in consumers'
minds.““
The goal of market positioning, therefore, is to distinguish your product or service
from others being offered to the market segments you have targeted.
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You can do that by focusing on your competitive advantage.


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


Business Plan Practice (Project Section)…
24

Chapter 3, entrepreneurship starting and operation a small business book
Page 81, Question number 2
Page 82, Key concept questions, number 2
Page 83 Exploring O li
P 83, E l i Online

Assignment Deadline: Week After Next.


25

Q&A…

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

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