Understanding the

Chapter Customer and Creating

Marketing Strategy
Chapter 13
 Learning Goals
In this chapter students will be able to understand:
1. The market and different marketing concept
2. The different trends in understanding the customer
3. The different marketing strategies
4. The role of product, price, place, promotion in
marketing
5. The concept of advertising
6. Different tools used in advertising
7. The different medium of advertising
8. The concept of salesmanship
9. The steps in selling process
10. The qualities of good salesmanship
11. The concept of channel of distribution
12. The different channel members
13. The different channel options for distribution
Chapter 13

14. The technique to select a channel

Management Quality Circle
Superior University Lahore
 Marketing

The process of discovering the

needs and wants of potential buyers
Marketing and customers and then providing
goods and services that meet
or exceed their expectations
Chapter 13

Management Quality Circle

Superior University Lahore
 Marketing—The “Right” Principle
Getting
The “Right’ Goods or Services

to
The “Right’ People

at
The “Right’ Place, Time, and Price

using”
Chapter 13

The “Right’ Promotion Techniques

Management Quality Circle
Superior University Lahore
 1 The Marketing Concept
Customer The ratio of benefits to the sacrifice
necessary to obtain those benefits,
Value as determined by the customer.

Customer The customer’s feeling that a

product has met or exceeded
Satisfaction expectations.

A strategy that focuses on forging

Relationship long-term partnerships with
Marketing customers by offering value and
providing customer satisfaction.
Chapter 13

Management Quality Circle

Superior University Lahore
2 Creating a Marketing Strategy
1. Understanding the External Environment

2. Defining the Target Market

3. Creating a Competitive Advantage

4. Developing a Marketing Mix

Chapter 13

Management Quality Circle

Superior University Lahore
2
The External Environment
Social Forces

Demographic Forces

Economic Forces

Technological Forces
Environmental Political & Legal Forces
Scanning
Competitive Forces
Chapter 13

Management Quality Circle

Superior University Lahore
2 The Target Market
The specific group of consumers
Target Market toward which a firm directs
its marketing efforts.
Chapter 13

Management Quality Circle

Superior University Lahore
 Forms of Market Segmentation
Derived from
Age, education, individual’s
gender, income, position
Demographic
race, social class, household
in an size
organization

Regional location, population density,

Geographic
city/county size, climate

Lifestyle, personality, interests,

Psychographic
values, attitudes

Benefits provided by the

Benefit
good or service

Volume Amount of use (light versus heavy)

Chapter 13

Management Quality Circle

Superior University Lahore
2 Competitive Advantage
Cost A firm’s ability to produce a
Competitive product or service at
Advantage a lower cost than its competitors.

Differential A firm’s ability to provide a unique

product or service that offers
Competitive something of value besides a
Advantage lower price.

Niche A firm’s ability to target and

effectively serve a single segment of
Competitive the market within a limited
Advantage geographic area.
Chapter 13

Management Quality Circle

Superior University Lahore
3 The Marketing Mix
Product

Elements of the
Marketing Mix Price

“The Four Ps”

Promotion

Place
Chapter 13

Management Quality Circle

Superior University Lahore
 Marketing Mix

• Product
• Place (Distribution)
• Promotion
• Price
Chapter 13
3 Elements of the Marketing Mix

Elements of the
Marketing Mix

Product
Chapter 13

Management Quality Circle

Superior University Lahore
 What is a Product?
Any good or service,
along with its perceived
Product
attributes and benefits,
that creates value for
the customer.

“Product” --
The “Heart” of
the
Marketing Mix
Chapter 13

Management Quality Circle

Superior University Lahore
 Product Strategy

• Brand name
• Packaging
• Colors
• Warranty
• Accessories
• Service program
Chapter 13

Management Quality Circle

Superior University Lahore
 Benefits of Branding

Product Identification

Repeat Sales

New-Product Sales
Chapter 13

Management Quality Circle

Superior University Lahore
 The Product Life Cycle
Introduction Growth Maturity Decline
Total
Sales and profits

market
sales

Total
market
+ profits

$0
_
Chapter 13

Management Quality Circle Time

Superior University Lahore
 Elements of the Marketing Mix

Elements of the
Marketing Mix

Price
Chapter 13

Management Quality Circle

Superior University Lahore
 Product Pricing
Introducing a product
Price Skimming with a high initial price
and lowering the price
over time

Selling new products at

Penetration Pricing low prices in the hope
of achieving a large
sales volume
Chapter 13

Management Quality Circle

Superior University Lahore
 Elements of the Marketing Mix

Elements of the
Marketing Mix

Place
Chapter 13

Management Quality Circle

Superior University Lahore
 Distribution Strategy

• Agents and Brokers

• Industrial Distributors
• Wholesalers
• Retailers
Chapter 13

Management Quality Circle

Superior University Lahore
3 Elements of the Marketing Mix

Elements of the
Marketing Mix

Promotion
Chapter 13

Management Quality Circle

Superior University Lahore
 Promotional Goals
1. Creating awareness

2. Getting consumers to try products

3. Providing information

4. Keeping loyal customers

5. Increasing the amount and frequency of use

6. Identifying target customers

Chapter 13

Management Quality Circle

Superior University Lahore
 Elements of the Promotional Mix

Personal
Advertising Selling

Public Sales
Relations Promotion
Chapter 13

Management Quality Circle

Superior University Lahore