Course : MGMT6256 – Introduction to

Management & Business

Marketing: Helping Buyers Buy

Session 23-24
 Learning Outcomes

• LO 2: Explain challenges for the global manager, the decision making

process, setting goals and plans, competitive strategies and
mechanistic and organic structure, production processes, marketing
and financial management
• LO 3: Analyze goals and plans, the strategic management process,
contemporary organizational design, the changing workplace, group
development, leadership, type of control, marketing mix and financial
management
• LO 4: Apply innovation process, workplace diversity, effective teams,
contemporary theories of leadership and tools for measuring
organizational, different markets, financial planning and function of
securities markets
 What is Marketing?

Marketing -- The activity, set of institutions and

processes for creating, communicating, delivering, and
exchanging offerings with value for customers, clients,
partners, and society at large.
The Evolution of Marketing (1)

• Production Era and Selling Era

 The general philosophy was “Produce what you can

because the market is limitless.”
 After mass production, the focus turned from
production to persuasion.
• Marketing Concept Era

 After WWII, a consumer spending boom developed.

 Businesses knew they needed to be responsive to
consumers if they wanted their business.
 The Evolution of Marketing (2)

• Marketing Concept Era

 The Marketing Concept includes three parts:

1.Customer Orientation -- Finding out what
customers want and then providing it.
2.Service Orientation -- Making sure everyone in
an organization is committed to customer
satisfaction.
3.Profit Orientation -- Focusing on the goods
and services that will earn the most profit.
 The Evolution of Marketing(3)

• Customer Relationship Era

 Customer Relationship Management (CRM)

– process of learning as much as possible
about present customers and doing everything
you can over time to satisfy customers or even
to exceed their expectations with goods and
services.
 The idea is to enhance customer satisfaction
and stimulate long-term relationships and
loyalty
 The Marketing Mix

1. Product; designing a want satisfying product

2. Price; setting a price for the product,
3. Place; putting the products in a place where
people will buy it
4. Promotion; promoting the product.
Designing a Product to Meet Customer Needs

 Product -- A good, service, or idea that

satisfies a consumer’s want or need.

 Test Marketing -- Testing product concepts

among potential product users.

 Brand Name -- A word, letter, or a group of

words or letters that differentiates one seller’s
goods from a competitor’s.
 Getting the
Setting an Appropriate Price
product to Right
Place
• Pricing products depends
 Middlemen are
on many factors:
important in
 Competitors’ prices place strategies
 Production costs because getting
a product to
 Distribution consumers is
 High or low price critical.
strategies
 Developing an Effective Promotional Strategy

• Promotion -- All the techniques sellers use to

inform people about their products and motivate
them to purchase those products.
• Promotion includes:
 Advertising
 Personal selling
 Public relations
 Viral marketing
 Sales promotions
 Providing Marketers
with information

 Marketing Research -- Analyzing markets to

determine challenges and opportunities, and
finding the information needed to make good
decisions.

 Research is used to identify products

consumers have used in the past and what they
want in the future.

 Research uncovers market trends and attitudes

held by company insiders and stakeholders
 The Marketing Research
Process

1.Defining the problem or opportunity and

determining the present situation.

2.Collecting research data.

3.Analyzing the data.

4.Choosing the best solution and

implementing it.
 The Marketing Environment

• Environmental Scanning -- The process of

identifying factors that affect marketing success.

• Factors involved in the environmental scan

include:
1. Global factors
2. Technological factors
3. Sociocultural factors
4. Competitive factors
5. Economic factors
Figure 13.5. The Marketing Environment
 The Customer Market
• Consumer Market –

All the individuals or households that want goods and

services for personal use and have the resources to buy
them.

 The size and diversity of the consumer market forces marketers

to decide which groups they want to serve.

 Market Segmentation -- Divides the total market into groups

with similar characteristics.

 Target Marketing -- Selecting which segments an organization

can serve profitably.
 Segmenting The Customer Market

 Geographic Segmentation -- Dividing the market

by cities, counties, states, or regions.

 Demographic Segmentation -- Dividing the

market by age, income, education, and other
demographic variables.

 Psychographic Segmentation -- Dividing the

market by group values, interests, and opinions.

 Benefit Segmentation -- Dividing the market

according to product benefits the customer prefers.

 Volume (Usage) Segmentation -- Dividing the market

by the volume of product use
 Reaching Smaller Market Segments

 Niche Marketing -- Identifies small but

profitable market segments and designs or finds
products for them.

 One-to-One Marketing-- Developing a

unique mix of goods and services for each
individual consumer.
 Building Marketing
Relationships

 Mass Marketing -- Developing products and

promotions to please large groups of people.

 Relationship Marketing-- Rejects the idea of

mass production and focuses toward custom-
made goods and services for customers.
 STEPS in the CONSUMER
DECISION-MAKING PROCESS

1.Problem recognition

2.Search for information

3.Evaluating alternatives

4.Purchase decision

5.Post purchase evaluation

The CONSUMER DECSION MAKING
PROCESS AND OUTSIDE INFLUENCES
KEY FACTORS in CONSUMER DECISION-MAKING

 Learning

 Reference Groups

 Culture

 Subcultures

 Cognitive Dissonance
 Business to Business Market

• Business-to-Business (B2B) -- Individuals and organizations

that buy goods and services to use in production or to sell,
rent, or supply to others.

• B2B marketers include:

 Manufacturers
 Wholesalers and retailers
 Hospitals, schools and charities
 Government

• Products are often sold and resold several times

before reaching final consumers.
Case : Using the 4ps at
Energizer
USING EFFECTIVE
PROMOTIONS
 Promotion and The Promotion Mix

 Marketing Intermediaries -- Organizations that

assist in moving goods and services from
businesses to businesses (B2B) and from
businesses to consumers (B2C).

 They are called intermediaries because they’re

in the middle of a series of firms that distribute
goods.
 Promotion and The Promotion
Mix

Promotion Mix -- The combination of promotional

tools an organization uses; the traditional mix includes:
INTEGRATED MARKETING COMMUNICATION
(IMC)

Integrated Marketing Communication (IMC)

-- Combines the promotional tools into one
comprehensive strategy. IMC is used to:
 Create a positive brand image.
 Meet the needs of consumers.
 Meet the strategic marketing and
promotional goals of the firm.
 STEPS in a
PROMOTIONAL CAMPAIGN

1. Identify a target market

2. Define objectives

3. Determine a promotional budget

4. Develop a unifying message

5. Implement the plan

6. Evaluate the plan

 ADVERTISING : Informing, Persuading,
and Reminding

• Advertising -- Paid, non-personal

communication through various media by
organizations and individuals who are in
some way identified in the message.

• Major goals of advertising:

- Inform
- Persuade
- Remind
 POPULAR ADVERTISING MEDIA

 TV advertising is still the dominant media.

 Digital Video Recorders (DVRs) challenge TV
advertising because viewers can skip them.
 Product Placement -- Advertisers pay to put
their products into TV shows and movies
where the audience will see them.
 INFOMERCIALS and
ONLINE ADVERTISING

 Infomercial -- A full length TV program devoted

exclusively to promote a particular product.

 Online ads are attempts to get potential

customers to a website to learn about a
product.

 Interactive Promotion -- Allows marketers to

open a dialogue between buyers and sellers
and let them work together to create a
beneficial exchange.
 GLOBAL ADVERTISING

 Requires marketers to develop a

single product and promotional
strategy to implement
worldwide.

 Problems can arise in global

markets with using one
advertising campaign in all
countries - especially bad
translations.
 PERSONAL SELLING

 Personal Selling -- The face-to-face

presentation and promotion of a product,
including the salesperson’s search for new
prospects and follow-up service.

 Salespeople need to listen to customer

needs, help reach a solution and do
everything possible to make the
transaction as simple as possible.
STEPS in the B2C
SELLING PROCESS
 USING PUBLIC RELATIONS in PROMOTION

• Public Relations (PR) -- Evaluates public attitudes,

changes policies and procedures in response to the
public, and executes a program of action and
information to earn public understanding and
acceptance.

• 3 steps of a good PR program:

1.Listen to the public
2.Change policies and procedures
3.Inform people you’re responsive to their
needs
 PUBLICITY

• Publicity -- Any information about an

individual, product or organization that’s
distributed to the public through the media
and is not paid for or controlled by the seller.

• Advantages of Publicity:
Free
Reaches people who would not look at an
advertisement
More believable than advertising
 SALES PROMOTIONS

• Sales Promotion -- The promotional tool

that stimulates consumer purchasing and
dealer interest by means of short-term
activities.

• Categories of Sales
Promotions:
1.B2B Sales
Promotions
2.Consumer Sales
Promotions
 USING WORD- of- MOUTH
PROMOTION

• Word-of-Mouth Promotion -- People tell

others about products they have purchased.

• Word-of-Mouth is important for products

like:
 Restaurants
 Daycare and Eldercare
 Car Repair Shops
 Hair Stylists
 Hotels
 EMERGING
PROMOTIONAL TOOLS

 Viral Marketing -- Paying customers to say

positive things on the Internet or setting up
multiple selling schemes whereby consumers get
commissions.
 Blog -- Short for web log; an online diary that
looks like a webpage but is easier to create and
update by posting text, photos, videos, or links.

 Podcasting -- A way to distribute audio and video

programs via the Internet.

 Email promotions increase brand awareness

among commercial suppliers.
Promotional Strategies

 Push Strategy -- Producers use advertising,

personal selling, sales promotion, and other
tools to get their products stocked on shelves.

 Pull Strategy -- Directs heavy advertising and

sales promotions efforts towards consumers
and gets the public to request their products
from retailers.

 Pick Strategy -- Refers to consumers who pick

out their products from online outlets.
 References

• William G. Nickels, James M. McHugh, and Susan M.

McHugh. 2016.Understanding Business, eleventh
Edition. Mc Graw Hill.
ISBN : 978-981-4670-37-1