Marketing Anesh Maniraj Singh Business Game What Marketing - - PowerPoint PPT Presentation

Marketing

Anesh Maniraj Singh

Business Game

• What Marketing mistakes did you make in

this exercise?

• Describe your target market for the

product/service you were selling?

• What approach did you take towards your

market?

Business Game

• How would you describe your target market

in terms of their behavioural characteristics?

• What did your group do to ensure the

success of your product/service?

What is marketing?

Business Functions

Organisation

Finance Production Human Resources Information Systems

Marketing

Marketing Activities

Marketing Advertising Sales Research Customer Service

Marketing - Definition

Marketing is the art of determining the customers wants and needs, and developing satisfaction in the form of products and services, whilst making a profit. Philip Kotler

The Marketing Equation

Profit

+

Need Identification

Need Satisfaction

=

How do people acquire products?

• Subsistence
• Force
• Sympathy
• Exchange

Markets and Industries

• A Market refers to

– Groups of people – Willing and able to exchange money – Buy goods and services

• An Industry refers to

– Groups of businesses – Willing and able to sell goods and services – In exchange for money

Approaches to the Market

Needs of the Seller

• Production approach
• Product approach
• Selling approach

Needs of the Buyer

• Marketing approach
• Societal marketing
• Relationship marketing
• Electronic marketing
• Social network marketing

Holistic Approach

Understanding Your Customer

Homework

• What is market research? Is it different

from marketing research?

• Is Market research necessary? Explain.
• If you had a limited budget, would you be

able to conduct market research for a small entrepreneur? If yes, what would you do? Explain.

Definitions

• Research

– Is a systematic search and analysis of facts with the purpose of solving a problem or to get a clearer understanding of a situation

• Market Research

– Involves research of markets, market segments, competition – Examines potential markets and products

• Marketing Research

– Involves research of marketing activities – Examines existing markets and products

Common Research Mistakes

• Poor definition of what

information is needed

• The wrong technique/approach is

used

• Data is misinterpreted

The Marketing Research Process

Define the Problem Develop the Plan Present the Findings Analyse the Data Collect the Data Decision Implement

Marketing

Consumer Behaviour

Homework

• What is consumer behaviour?
• Why would a business be interested in

understanding its consumers behaviour?

• What does your organisation know about

its consumers?

Definition

• Consumer Behavior is the study of

– The mental and social processes and actions a consumer takes preceding and following the purchase and use of products and services

• Seeks to answer

– Who? – Where? – When? – Why? – How much?

Factors that Affect Consumer Behavior

Cultural Factors

• Religious beliefs, values, norms

Socio-cultural Factors

• Relationships with others

Psychological Factors

• Personality, perception, motivation

Personal Factors

• Age, family size, affordability

Marketing Mix Factors

• Product, Price, Place, Promotion

Psychological Factors

Physiological Needs Safety Needs Social Needs Esteem Needs Self Actualisation Needs

Exercise

• Can the following companies use use the

Maslow’s hierarchy of needs to determine the product/service ranges they sell? Explain.

– Game Stores – Netcare Group – SAA – KFC – Spur – Standard Bank

Buying Decision Process

Need Recognition Information Search Evaluation Of Alternatives Purchase Post Purchase Behavior

Marketing

The Marketing Mix

The Marketing Mix

Product Price Promotion Place

Target Market

Marketing Mix

Product

Anatomy of a Product

Augmented Expected Generic

Core Benefit

Product Life Cycle

Introduction Growth Maturity Decline Time Sales

Why do new products fail?

• Poor quality
• Poor advertising and support
• Doesn’t match claims
• High production costs
• Poor timing of launch
• Not meeting the needs of consumers

Marketing

Branding

What is a Brand?

• A name, symbol, term or sign that identifies

the products

• f
• ne

manufacturer from another

• Brands help consumers differentiate between

similar products

Why Brand?

Branding

Differentiation Familiarity Build trust Build loyalty Barrier to competition Prevents switching Premium price Lower marketing costs Brand Equity

Effective Brand Names

• Easy to Say
• Easy to Spell
• Easily remembered
• Free of ambiguity/negative connotations
• Should not be used by another party
• Communicates the product use/benefit

Service

Tangibility

High tangibility Low tangibility

What is customer value?

• Difference between what a customer gets

from a product or service in relation to what he gives to get it.

Benefit – Cost = Value

• Emotion

Keep promises Service excellence Quality of product Keep promises Information before buying Information before buying Keep promises Courtesy Knowledgeable staff Backup servi Service excel Friendly staf Rectify errors Low price Backup service Quality of product Service excellence Friendly staff Rectify errors Works first time Free bells and whistles

Customer Emotions

Low price Backup service Quality of product Information before buying Service excellence Keep promises Friendly staff Rectify errors Courtesy Works first time Knowledgeable staff Free bells and whistles

Low price Backup service Friendly staff Rectify errors Courtesy Works first time Knowledgeable staff Free bells and whistles Low price Backup service Quality of product Information before buying Service excellence Keep promises Rectify errors Courtesy Works first time tion before buying Courtesy wledgeable staff

Customer Service Value

• Deliver on promises

Reliability

• Deliver on time and provide help

Responsiveness

• Inspire confidence and trust

Assurance

• Attention to customers needs

Empathy

• Appearance, paperwork, facilities

Tangibles

Adapted from Parasuraman, Zeithaml and Berry

Applying ServQual

Reliability Responsivenes s Assuranc e Empathy Tangibles

Tailor Accurate alterations on time Adjustments to customer requirements Years of experience Remembers that

• ne leg is

longer Change room, mirror, packets Fitness Trainer Proper advice Information One client at a time. Answers calls Trusted Qualified Endorsed Adjusts training programme Clean, neat, muscular UKZN

Marketing Mix

PRICE

Pricing

Objectives Profit Maximise Sales Market Share Status Quo Non-Price Competition

• Main consideration is

cost recovery

• Cost Based – cost

plus pricing Cost Price Volume

Basic Principle

Pricing Strategies

• Price Penetration

– Intended for products with a long life cycle – Introduction price is low – Gradual increase in price

• Price Skimming

– Intended for products with short life cycle – Introduction price is very high – Gradual decrease to get rid of stocks

• Status Quo Pricing

Pricing Tactics

• One Price Policy
• Variable Pricing
• Flexible Pricing
• Odd/Psychological Pricing
• Bundle Pricing
• Freemium Pricing
• Leader Pricing
• Bait & Switch Pricing

Marketing Mix

PLACE

Importance of Channels

Specialisation & Division of Labor Overcoming Discrepancies Contact Efficiency

Distribution Channels

M A N U F A C T U R E R C O N S U M E R

Retailer Retailer Wholesaler Retailer Wholesaler Agent

Retail Location

Location

Market Size Suppliers Competitors Visibility Accessibility Parking Costs Crime

Three secrets for success

• Location
• Location
• Location

Population 5 million

Marketing Mix

Promotion

Promotion

Personal Selling Direct Marketing Telesales, Catalogue Sales, Television Shopping, Internet Shopping Publicity Sponsorships, Press Conferences, Consumer Endorsements Sales Promotion Coupons, demonstrations, prizes, loyalty rewards Advertising TV, radio, billboards, newspapers etc.

Advertising

• Mass communication
• Relatively cheap
• It is informative

Preferred means of communication

• To inform – new products, price

changes

• To persuade – competitive advertising
• To remind – keep product in consumers

mind

Objectives of Advertising

Five M’s of Advertising

Mission Money Media Message Measurement

Modern Media

• E-mail Advertising
• Website Advertising
• Mobile Advertising
• Social Network Advertising

Problems with Advertising

• It is intrusive
• Can be false or grossly exaggerated
• It is one way only
• Can suffer from non-delivery
• May not promote immediate action

Be Careful What You Say!