MARKETING in English Language

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MARKETING in English Language

• Lecture No 1
• Overview of Marketing

Jaroslav DADO Janka PETROVICOVÁ 2007/8
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Marketing- literature, - exam, -
organization, - today topic - goal to
understand what marketing isOverview of
MarketingRelation of marketing with other
disciplines. What marketing is? Why Study
Marketing ? Role of marketing in economic system.
Different historical approach to marketing
marketing concepts. Market. Marketing process and
marketing toolsApplication of marketing in
industrial sphere, in service, in non-profit
sphere, international and global marketing...
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What is Marketing?

• Simple Definition Marketing
  is managing profitable customer relationships.
• An integrated set of strategies for selling
  products and services or ideas.
• An exchange process.
• To find a need/want and fill it .by solving a
  customers problem.

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What is Marketing?

• Most people think that Marketing is a tool, but
  for governments and not-for-profit it is a way of
  thinking. It goes beyond selling, advertising. It
  is a mindset which puts the customer first and
  ensures that the organization's philosophy is
  without customers there is no organization.
• The process of creating, distributing, promoting,
  and pricing goods, services, and ideas to
  facilitate satisfying exchange relationships with
  customers in a dynamic environment

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What is Marketing?

• A social and managerial process by which
  individuals and groups obtain what they need and
  want through creating and exchanging products and
  value with others.
• The Customer is Always Right!!!
• Be Better than your Competition
• Who must make marketing in company???

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Needs, Wants, Demands more concret than in
economy

• Need State of felt deprivation including
  physical, social, and individual needs.
• Physical
• Food, clothing, shelter, safety
• Social
• Belonging, affection
• Individual
• Learning, knowledge, self-expression

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Needs, Wants, Demands

• Wants Form that a human need takes, as shaped by
  culture and individual personality.
• Wants Buying Power Demand

Demand
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Need / Want Fulfillment

• Needs and Wants Fulfilled through a Marketing
  Offer
• Some combination of products, services,
  information or experiences offered to a market
  to satisfy a need or want.

Ask, Ask, Ask and then Listen Ask, Listen,
Respond!
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Need / Want Satisfiers

• Products
• Persons
• Places
• Organizations
• Information
• Ideas

• Services
• Activity or benefit offered for sale that is
  essentially intangible and does not result in the
  ownership of anything.

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Marketing Myopia

• Sellers pay more attention to the specific
  products they offer than to the benefits and
  experiences produced by the products.
• They focus on the wants and lose sight of the
  needs
• Knowing what people neednot listening to what
  they want
• Dont sell products (no driller), solve
  problemsfrom the customers perspective

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Value Satisfaction

• If performance is lower than expectations,
  satisfaction is low
• If performance is higher than expectations,
  satisfaction is high

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Exchange vs. Transaction

• Exchange
• Act of obtaining a desired object from someone by
  offering something in return.

• Transaction
• A trade of values between two parties.
• One party gives X to another party and gets Y in
  return. Can include cash, credit or check.

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What is a Market?

• The set of actual and potential buyers of a
  product.
• These people share a need or want that can be
  satisfied through exchange relationships.
• Participants on the market are...
• Problem - it is opportunity...

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Marketing Management

• The art and science of choosing target markets
  and building profitable relationships with them.

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Marketing Management

• Before you start selling anything you must ask
  the questions
• To explain specifically how you will enter the
  market, obtain a niche, maintain a market share,
  and achieve the stated financial projections.
• What customers will we serve?
• What is our target market?
• How can we best serve these customers?
• What is our value proposition?
• How will you attract, main and expand your market
  and when?

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Marketing Management

• ...next questions
• What Are Your Marketing Priorities Among Segments
  and Applications?
• How Will You Identify Prospective Customers? What
  they want and what they need?
• What Level of Selling Effort Will You Implement?
  How many salespeople? Direct mail and brochure
  distribution? Trade shows?
• What is special or unique featrure of your
  produkt?
• How Will Your Packaging and Labeling Enhance Name
  and Foster Brand Loyalty?

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Marketing Management

• ...next questions
• What Kind (and level) of Service, Warranties and
  Guarantees Will You Offer?
• What Advertising/Promotion Media Will You Use?
• What Will Each Customers Average Order Size Be?
• What Are the Quotas and Sales Productivity of
  Each Salesperson?
• How will be the method(s) of sales and retailing,
  direct sales and other methods?
• How these will be attracted, compensated and
  controlled.

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Marketing Management

• ...next questions
• How the companys name or the product/service
  name may contribute to market identity?
• What Geographic Areas Will Be Covered?
• What Will Your Pricing Strategy Be? Discount,
  marging...?
• How to interpret the external environment
• Who is your competition?
• What are the critical supply and demand factors?
• How is your plan of action for being successful
  in the market? ... and so on

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A Simple Model of the Marketing Process
Create value for customers and build customer
relationships
Capture value from customers in return
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Value Proposition

• The set of benefit/utilities or values a company
  promises to deliver to consumers to satisfy their
  needs.

Customer Perceived Value

• Customers evaluation of the difference between
  all the benefits and all the costs of a marketing
  offer relative to those of competing offers.

Customer Satisfaction

• Dependent on the products perceived performance
  relative to a buyers expectations.

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Marketing Management Philosophies

• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Societal Marketing Concept

Old view of marketing Making a sale - Telling
and Selling
New view of marketing Satisfying customer needs
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Marketing Management Philosophies

• Selling Concept vs. Marketing Concept

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Results of being Market-Driven

• Happier marketsconsumers and funders
• Better image
• Retain your market
• More effective and efficient
• New revenue sources
• More financially stable... and better than
  competition

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The Marketing Mix
PRODUCT PRICE
TARGET CUSTOMERS - needs
DISTRIBUTION PROMOTION
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The 4 Ps 4 Cs of the Marketing Mix

• 4 Ps - Sellers View
• Product
• Price
• Place
• Promotion

• 4 Cs - Buyers View
• Customer Solution
• Customer Cost
• Convenience
• Communication

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Customer Relationship Management

• The process of building and maintaining
  profitable customer relationships by delivering
  superior customer value and satisfaction.
• The customer is not always right, but the
  customer is always the customer.

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Customer Driven Marketing
How many of us would have thought to ask for a
wearable PC? Marketers must often understand
customer needs even better than customers
themselves do.
Innovate constantly
Define/Redefine the Market
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Partner Relationship Marketing

• Partners inside the firm
• All employees customer focused
• Teams coordinate efforts toward customers
• Partners outside the firm
• Supply chain management
• Strategic alliances

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The Internet

• The Internet has been hailed as the technology
  behind a New Economy.
• Applications
• Not only in business-to-business (B-2-B) -
  e-commerce

The recent technology boom has had a major impact
on the ways marketers connect with and bring
value to their customers (form of product,
destribution, communication, paying.
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New Marketing Landscape

• Rapid Globalization
• Ethics Social Responsibility
• Not-for-Profit Marketing
• New World of Marketing Relationships
• New approach of customer

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Strategic Planning

• The process of developing and maintaining a
  strategic fit between the organizations goals
  and capabilities and its changing marketing
  opportunities.

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Steps in Strategic Planning

• Defining the company mission
• Setting company objectives and goals
• Designing the business portfolio
• Planning marketing and other functional
  strategies marketing strategies

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The Mission Statement

• A statement of the organizations purpose Why
  we are here?
• What it wants to accomplish in the larger
  environment
• Should be market oriented and defined in terms of
  customer needs.

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Mission Statement Should

• Be realistic
• Be specific
• Fit the market environment
• Be based on distinctive competencies
• Be motivating

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Steps in Strategic Planning
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Questions a Mission Statement Should Answer
What is our Business?
Who is the Customer?
What do Consumers Value?
What Should our Business Be?
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Managing Marketing Strategy and M-mix
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Managing the Marketing Effort
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MARKETING PLANNING PROCESS
Marketing Goal/Objective/Strategy Marketing
Tactics Service Tactics Product People Price
Process Place (Distribution)
Presentation Promotion
Market Analysis ----- Market
Segmentation Customer Behavior Demand
Estimation Forecast
Marketing Implementation Controls Marketing
Calendar Marketing Budget Timed Objectives
Organizational Strategy - Structure ----- Skills/R
esources
Organizational Environment
External Environment
Population/competition ------------- Target
Market(s)
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Marketing Control Process
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What Marketing is and what M does?

• More than selling
• Understand your clients needs
• Keep and grow current customers by delivering
  satisfaction.
• Develop plans that reflect those needs
• Support the Marketing function
• Develop a specialized program
• Determines how the resulting product will be
  packaged, promoted and distributed.
• Find ways to sell/distribute products/services
  more efficiently.
• Determines how the resulting product will be
  packaged, promoted and distributed.
• The process of planning, organizing,
  implementing, and controlling marketing
  activities to facilitate exchanges effectively
  and efficiently

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Any Questions? jaroslav.dado_at_unb.sk
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Topics for seminar discussion

• Define marketing and outline the steps in the
  marketing process.
• Explain the importance of understanding customers
  and the marketplace, and identify the five core
  marketplace concepts.

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Topics for seminar discussion

• Identify the key elements of a customer-driven
  marketing strategy and discuss the marketing
  management orientations that guide marketing
  strategy.
• Discuss customer relationship management and
  strategies for building lasting customer
  relationships.

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Topics for seminar discussion

• Describe the major trends and forces that are
  changing the marketing landscape in this new age
  of relationships.

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Topics for seminar discussion

• Explain companywide strategic planning and its
  four steps.
• Discuss how to design business portfolios and
  growth strategies.
• Explain-access marketings role in strategic
  planning and how marketing works with its
  partners to create and deliver customer value.

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Topics for seminar discussion

• Describe the elements of a customer-driven
  marketing strategy and mix, and the forces that
  influence it.
• List the marketing management functions,
  including the elements of a marketing plan.

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Topics for seminar discussion

• Choose a partner and discuss some of the ways
  Pepsi goes about the process of positioning its
  products.
• What market segments do you think Pepsi is trying
  to reach?