MARKETING

MARKETING

A management process that identifies, anticipates and supplies customer needs

efficiently and profitably.
❑ Identifying and anticipating needs – market research.
❑ Supplying customer needs – product design and development.
❑ Efficiency – distribution.
❑ Profitability – pricing decisions and promotion (informing customers about your product so
they buy it).
PRODUCT VS MARKETING ORIENTATION
Product orientation focuses on the function of a product or service, while market
orientation identifies customer needs to satisfy them. Marketers who orient themselves
to their customers are able to anticipate changes in consumer behaviour and develop
products that meet these changes
PRODUCT VS MARKETING ORIENTATION
The Marketing Mix (The 4Ps)

01 Product
Product features, brand name, packaging, after-
sale service, warranties

Price levels,affordability & profitability,

02 Price allowances, payment terms

03 Place
Choice of distribution channels, transportation,
outlets, stocks and warehouses

Informing and pursuading potential customers

04 Promotion Advertising, personal selling, publicity, sales
promotion techniques

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Extended
 PRODUCT ISSUES

Product Definition:
What the product should be?
- Core product
- Actual Product
- Augmented / extended product

What actually fulfills

the need e.g.
Personal
transportation
 PRODUCT ISSUES

Product Definition:
What the product should be?
- Core product
- Actual Product
- Augmented / extended product

The medium for receiving core product e.g.

Range of engines, different shapes etc.
 PRODUCT ISSUES

Product Definition:
What the product should be?
- Core product
- Actual Product
- Augmented / extended product

Help sustained use of actual

product e.g. warranties,
installation, discounted contract
PRODUCT ISSUES

Product Positioning

Our product compared to competitors

If and why is it better than the competition
PRODUCT ISSUES

Product Positioning

Our product compared to competitors

If and why is it better than the competition
 PRICING ISSUES (THE 4CS)

❑ Cost – price must be enough to cover the cost (to make profit)
❑ Customers – what they are willing to pay
❑ Competition – what are the competitors charging?
❑ Corporate objectives – business aims (e.g. to keep price low to gain market share)
 PRICING TACTICS

❑ Cost plus pricing – mark up added to cost

❑ Penetration pricing – low price to gain / enter a market
❑ Perceived quality pricing – high price to create image of high quality
❑ Price discrimination – different prices for same product in different markets
❑ Going rate pricing – set to match competitors
❑ Price skimming – set high for new product to gain maximum profit
❑ Loss leaders – one product sold at loss to make customers buy a profitable product
❑ Captive product pricing – must buy two products, one cheap and other is expensive
❑ Psychological pricing – set at a margin from high value (Rs. 2999/-)
 PROMOTIONAL ISSUES

To encourage customers to buy the products

❑Advertising – using media for advertisement

❑Sales promotion – Buy one get one free
❑Personal selling – door to door salesmen
❑Public relations – sponsoring an event
PLACE (DISTRIBUTION ISSUES)

❑ Direct Selling

❑ Indirect Selling
MARKETING & STRATEGIC PLAN
Desk research
Field research
Test marketing
Strategic Analysis
 analysis of brand strength, product quality, reputation, etc.
 analysis of competition Market Segmentation
 market research to determine market attractiveness Geographic
 detailed analysis of customer expectations and power. Demographic (age, gender, income
etc)
Strategic Choice Psychological
 decisions regarding which products to sell Socio-economic (class-based)
 segmenting potential markets (e.g. by age) and then targeting attractive segments
 developing strategies for each of the marketing mix variables.
Strategy Implementation
 setting budgets for advertising, etc.
 setting targets for sales revenue, market share, brand awareness, etc.
 monitoring and control.
EXAM PRACTICE QUESTION
End of Chapter