MARKETING

ERA
HAFIZ AMMAR ZAFAR
WHAT IS A MARKET ?
A market consist of all the potential customers sharing a particular need or want who
might be willing and able to engage in exchange to satisfy that need or want”.

All existing and potential customers who might buy an organist ion's product.

▪ Broader environment where buyer & sellers interact.

▪ Market is not a single place where buyers and sellers meet to transact, it can
be a whole region where goods and services are sold by a number of sellers to
a wide variety of buyers through a range of distribution channels.
MARKETS
▪ Consumer Markets.

▪ Industrial/Business to Business Markets.

▪ Reseller (Retailers, Distributors) Markets.

▪ Publics (Government agencies/departments/institutions).

▪ International/global Markets.
WHAT IS A MARKETING ?
SIMPLE DEFINITION
Marketing is the management process responsible for identifying, anticipating,
and satisfying customer requirements profitably.” (CIM,2001)

GOALS
▪ Attract new customers by promising superior value.

▪ Keep and grow current customers by delivering satisfaction.

NEEDS AND WANTS

▪ Needs: basic forces that derive people and businesses to buy things from

each others

▪ Unsatisfied needs: Gap between a person’s actual state and desired state

▪ wants: Person’s or organization’s desire to satisfy a basic need

ROLE OF MARKETING
▪ Identify potential buyers

▪ Offering solution to their needs

▪ Communicating solution to those buyers

▪ Making the exchange

▪ Delivering the offering

GOODS AND SERVICES
▪ Goods and services spectrum

Hard
Hybrid Goods
Category Soft
Services
GOODS AND SERVICES
HYBRID CATEGORY
▪ Some organizations sell combination of hard goods and soft services. As the
result of soft services you become owner of physical goods.
SPECIAL SOFT SERVICES
▪ Training about to use a new product
▪ Help with financing purchases
▪ Delivery
▪ No dispute product guarantee
GOODS
▪ Goods are material or physical things , either natural or man made , which are
used to satisfy human needs and wants.
▪ On the basis of expected length of their lives or on the basis of whether they
are intended for consumer market or industrial market , goods have been
dived into following categories
▪ Fast moving consumer goods
▪ Consumer durables
▪ Industrial goods
FAST MOVING CONSUMER GOODS
▪ House hold consumable

▪ Purchased regularly and frequently

▪ Available at retail outlets and grocery stores

▪ Low or moderately priced/ less expensive

▪ Low involvement goods

CONSUMER DURABLES
▪ These are consumer products that have longer life than fast moving
consumer goods

▪ Bought less frequently

▪ Require greater financial expenditures

▪ High involvement purchase

▪ E.g. electric appliances and cars etc.

INDUSTRIAL GOODS
▪ Used in production of other goods and services e.g. office equipment,
stationary or parts of different machinery

▪ Largely distributed through sales agents

▪ Sub divided into raw material and partly finished goods

▪ Consumables

▪ Capital goods
SERVICES
▪ An activity or benefit that one party offers to an other that is intangible.

▪ Has no physical dimension

▪ Can result in ownership of something tangible

▪ Temporary

▪ No specification/ tailored made

▪ No physical distribution channel

▪ Value is assessed at time of completion

COMPETITION AND FREE MARKET
“A sate of rivalry between sellers”
▪ Each trying to gain a large market share and greater profits.

▪ Free markets allow producers to compete freely for consumer’s business.

▪ Firms operating in a competitive market seek to influence demand by

developing differentiated products and services.

▪ The more competitive is the market , the more is the need for marketing.
FACTORS INFLUENCING COMPETITION
Organizations operating in the market
▪ Organizations producing same product

▪ Size of these organizations

▪ Difficulty for new entrants

▪ Knowledge organizations have about their competitor

FACTORS INFLUENCING COMPETITION
Consumers interest in buying products and services in the
market:
▪ Consumers knowledge about product

▪ No of buyers and their requirements

▪ Ability to pay for goods and services

FACTORS INFLUENCING COMPETITION
External factors
▪ Availability and prices of raw materials

▪ Ease in transporting raw material

▪ Government policy on competition and regulations

FACTORS INFLUENCING COMPETITION
▪ Economists have developed various models to describe market

competitiveness.

▪ At one extreme is Perfect Competition where competition is absolute and at

other end is Monopoly or Monopsony where competition is non existent.

▪ Perfect competition and monopoly are theoretical in nature in their purest

forms. Between the two extremes is a range of real life situations, some are

more competitive than others.

PERFECT COMPETITION
▪ Ideal situation

▪ There is large numbers of buyers and sellers in the market

▪ All products and services offerings are identical

▪ There are no barriers to entry or leaving the market

▪ All buyers and sellers have full knowledge of market conditions

▪ No single buyer is large enough to influence market prices

MONOPOLY AND MONOPSONY

MONOPOLY MONOPSONY
▪ Absence of competition ▪ Rare than monopoly

▪ One seller ▪ Single buyer

▪ E.g. govt. as the only buyer
▪ consumer has no choice
▪ Can be created through Govt.
MONOPOLISTIC COMPETITION
▪ A large no. of sellers competing but each one having some power to charge
certain price for its products and not losing all of the customers.
▪ Product differentiation
▪ Many firms
▪ No entry and exit cost in the long run
▪ Independent decision making
▪ Some degree of market power
▪ Buyers and Sellers do not have perfect information
CARTEL
▪ An agreement between companies

▪ Charge identical prices for goods and services and enjoy

market share together

▪ Eradicate competition
PRODUCT LIFE CYCLE
The life cycle includes following phases:

▪ Development phase

▪ Introduction phase

▪ Growth phase

▪ Maturity phase

▪ Decline phase
PRODUCT LIFE CYCLE
PRODUCT LIFE CYCLE
DEVELOPMENT PHASE

▪ Money is spent on research, development and testing.

▪ All organizations do not make profit at this stage

▪ Expenditures exceed income

INTRODUCTION PHASE

▪ Product or service is introduced in the market

▪ Low sales volume

▪ Customers and distributors becomes aware of the product and decide whether to adopt or
not.
PRODUCT LIFE CYCLE
GROWTH PHASE

▪ Rapid acceptance of product and increase in revenues

▪ Can be sustained by improved distribution, product improvements and price reductions

MATURITY

▪ Success attracts interests from other producers

▪ Copy cats are available and increased competition

▪ Sales and profits are high so as the costs

PRODUCT LIFE CYCLE

DECLINE PHASE

▪ Reduction in sales

▪ Due to new technology, substitutes, competitive pricing and shift in

consumers tastes and demands
SEGMENTATION
MARKET SEGMENT
▪ Consumers who respond to a similar way to a given set of marketing stimuli

SEGMENTATION
▪ Total market is broken down to create distinctive consumer groups or market
segments
▪ The goal of segmentation is to gather a group of people who are similar to one
another but collectively as a segment are different from other segments
particularly in response to marketing activities.
SEGMENTATION
COMMONLY USED SEGMENTATIONS ARE
▪ Demographic feature

▪ Buying behavior

▪ Geographic location

▪ Behavioral features
SEGMENTATION
THE AIM OF SEGMENTATION IS:

▪ To arrive at a defined customer group

▪ It can exploit its strengths and reduce its weaknesses

▪ It can develop products and services that are better targeted at that
segment in a uniform way