MARKETING

Marketing is the management process that identifies and satisfies customer requirements profitably.
Needs: - The state of felt deficiency or without which it is difficult to survive. Wants: - Wants are the form of human need designed by culture or individuals personality Demands: - Wants become demands when supported by buying power. Customer: - Those persons who buy the Products for resale purposes are called as Business user or customers. Consumer: - Those who consume/use products for personal or family use.

Market Offering
Needs and wants are fulfilled through market offering which includes Products, Services, Information or experiences. Products-Tangible: - Phone, computers, Books Services-Intangible: - Hotels, Banking, Air-travel Information: - News, Research, Experiences: - Movie, safari, Gardens

Customer Value and Satisfaction: - Customer value is the ratio of benefits received by the customer to the cost paid. Exchanging: - Exchange is the act of obtaining a desired object from someone by offering something in return.

Marketing strategy
1. Market Segmentation 2. Target Marketing 3. Positioning

Market Segmentation: - Dividing a market into smaller group with similar needs, characteristics, or behaviors who might require separate products or marketing mixes. Target Marketing: - A set of buyers sharing common needs or characteristics that the company decides to serve. Positioning: - The Company must also decide how it will differentiate and position itself in the marketplace. A company value positioning is a set of benefits or values it promises to deliver to consumers to satisfy their needs.

Marketing Management Orientation

There are five alternative concepts under which organization designs and carry out marketing strategies. (The production concept-the product concept-selling concept- the marketing concept-the social marketing concept)

1-The production concept: - The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.

2-The product concept: - The idea that consumers will favor products that offer the most quality, performance, features and that the organization should therefore devote its energy to making continuous product improvement.

3-The selling concept: - The idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort.

4- Marketing Concept: - The marketing management philosophy that achieving organizational goal depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.

5- The social marketing concept: -The Company should make good marketing decisions by considering consumers long run interests, and society long run interests.

Marketing Mix
The strategy of designing the combination of products where and when it is distributed, how it is promoted and at what price.

4Ps of Marketing 1. 2. 3. 4. Product Price Place Promotion

Capturing value from Customers

This step involves capturing value in return in the form of current and future sales, market share and profits.

Creating Customer Loyalty and Retention Good customer relationship management creates customer delight and delighted customers remain loyal and talk favorably to others about the company and its product.

Building customer equity As customer acquiring is important the same is keeping and growing them as well. The companies want not only to create profitable customers but to own them for life, capture their customer lifetime value, and earn a greater share of their purchases. The companies should classify customers according to their potential profitability and manage its relationships with them accordingly.

Marketing Environment
Definition of Environment: - The surroundings or conditions in which a person, animal, or plant lives or operates.

Environment Factors
The marketing environment consists of factors that have a direct or indirect impact on the organizations operations. It is dynamic in nature and presents both opportunities (chances) and threats (fears).

Types of Environment
Internal Microenvironment: - Consists of factors in the immediate (and to some extent controllable) environment External Macro environments: - Forces which have an impact (affect) on every player in the environment (mainly uncontrollable).

The Market: - Market can be people organisations with needs/wants to satisfy, money to spend and willingness to spend it. Three specific factors need to be considered for the marketing of a product and service People or organisation needs Their purchasing power Their buying behaviour

Suppliers: - The people or firm that supply the goods or services required by a producer to make other products or services is important to marketing organisation.

Marketing Intermediaries (distributors): - Distributors are those business organisations that directly help the flow of goods and services between a marketing organisation and its market.

Distributors are of two kinds Retailers (Business firms who sells in units of products) Wholesalers (Businesses who sells in bulk)

Macro-Environment
Political/Legal: - Every companys conduct is influenced by the political and legal processes in our society. The political and legal forces on marketing can be grouped into four categories Marketing efforts are affected by government spending and tax regulation. Laws affecting the environmental pollution laws Deregulation in public utilities e.g. Gas, Electricity Regulation related to competition and consumer protection

Economical Change in Income: Any increase or decrease in income of people will affect the buying power of consumer, therefore based on change in income; business has to change their strategies. Customers spending: - When the economic condition are good customer spending will be high and if not people with focus on saving money. Prosperity: - The period of economic growth Inflation: - It is actually the decrease in value of money which is caused due to increase demands and less supply. Inflation causes the products in the market to get expensive. Deflation: - The lowering of price due to decrease economic activity Interest Rate: - Increase in interest rates discourages people borrowing therefore decrease in economic activity.

Social and Cultural forces: - The social and cultural pattern such as lifestyle, values and beliefs are changing quite rapidly. For marketers the important changes are as follow:

Concern about natural environment The concern about air and water pollution, holes in ozone layer, acid rain, solid waste disposal and deforestation. This is being seriously felt by business organisations and some of them are responding quickly as well such as Toyota Hybrid Cars

Changing role of Gender Due to certain reasons the Male-Female roles related to families, jobs, recreation, and buying behaviour are changing. Contrary to the past more men are buying house hold products as more women are buying cars, sports equipment houses etc. Women attitude towards shopping will change further in the future

Physical fitness and health People are getting more aware of their physical fitness and health. For this, people are getting more conscious about their daily diets. Interests are increasing the food consumption pattern where buyers are buying products such as Low Salt, Low cholesterol, High vitamins minerals and fibre. Companies are recognising and responding to the general public interests.

Technological Technology has a huge impact on our life style consumption pattern. For example the technological development in Airplane, plastic, television, computers, antibiotics, lasers and videos etc. Technology affects in three ways Starting of entirely new industry Or products bringing huge changes in existing industry Products related indirectly to technology but may change the life-style of people

Demographical: - The study of human population is called Demography Size: - Increase in population means more production Density: - The dense populated areas shall be given more priority than the thin populated area Location: - The location of population whether cities, towns or villages Age: - Change in the size of a particular age group means the needs and wants of that age group is to be targeted.

Gender: - Gender difference would give priority to the need/wants of increasing gender. Race: - Different races have different likes and dislikes therefore change in the composition of population means change in product strategies. Occupation: - Occupation is directly related to the income of people earning therefore more jobs more earning more spending while less jobs less earningless spending.

Market Segmentation
Dividing a market into smaller group with similar needs, characteristics, or behaviors who might require separate products or marketing mixes. Consumer Market Segmentation Business Market Segmentation International Market Segmentation

Consumer Market Segmentation Consumer market can be segmented through the following variables Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation

Geographic Segmentation Dividing a market into different geographical units-such as nations, states, region, countries or cities

Demographic segmentation: - Dividing a market into groups based on variables such as Age Gender Family life cycle Income Occupation Education Religion Nationality

Age and Life cycle stage: - Dividing a market into different age and life cycle groups. Gender Segmentation: - Dividing a market into different groups based on gender (male/female).. Income segmentation: - Dividing a market into different income groups. (high, medium and low income groups)

Psychographic Segmentation: - Dividing a market into different groups based on social class, lifestyle and personality characteristics. Social classes: - are the divisions among people in a society who possess similar behavior. E.g. Upper Class, Middle Class, Working Class, Lower Class. Marketer are interested in social classes because people from same social classes show similar buying behavior Lifestyle: - Is a persons way of living expressed in his/her activities e.g. modern lifestyle, traditional or religious lifestyle. Personality: -Is the unique psychological characteristics that lead to similar and permanent buying behavior.

Behavioral segmentation: - Dividing a market into groups based on consumer knowledge, use or response to a product. Occasion segmentation: - When the buyers get the idea to buy. (occasional buyers) e.g. Haftmewa in Nawroz Benefit segmentation: - Dividing a market into groups according to the different benefits that consumers seek from the product. Usage rate: - Markets can also be segmented into light, medium and heavy usage. Loyalty Status: - A market can also be segmented by consumer loyalty. Consumer can be loyal to brand (surf excel), stores () and companies (Toyota). Business Market Segments Business markets can be segmented (Geographically and Demographically) Almost every company serves at least some business market. E.g. Banks provide more facilities to businesses than to individual customers because of their operating characteristics and amount of services they acquire.

International Market Segments Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries. World market can be segmented by geographic location, grouping countries by region such as Western Europe, Middle East, and South Asia etc. World market can also be segmented on the basis of economic factors. For example-countries might be grouped by population income level or by their overall level of economic development. World market can also be segmented by political and legal factors, such as the type and stability of the Govt.

Market Targeting
Target market: - A set of buyers sharing common needs or characteristics that the company decides to serve. After successfully segmented the market the firm now must evaluate the various segments and decide how many and which segment it can serve best. Evaluating Market Segments In evaluating different market segments, a firm must look at three factors: Segment size and growth: - (sales, growth rate and expected profitability) Segment structural attractiveness: - (a segment is less attractive if it already contain strong and aggressive competitors-substitute products) Companys objectives and resources: - (even if a segment has the right size and growth and is structurally attractive, the company must consider its own objectives and resources)

Selecting target market segments After evaluating different segments, the company must decide which and how many segments it will target. A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. Buyers have unique needs and wants, a seller could potentially view each buyer as a separate target market. Then a seller might design a separate marketing program for each buyer. Companies can target very broadly, very narrowly or some where in between.

Undifferentiated Marketing:- A firm might decide to ignore market segments and target the whole market with one offer. This mass marketing focuses on what is common in the needs of consumers rather than on what is different. Differentiated Marketing: - A firm decides to target several market segments and design separate offers for each. Concentrated market: - A third market coverage strategy is especially appealing when company resources are limited. Instead of going after a small share of a large market, the firm goes after a large share of one or few smaller segments. Micromarketing: - The practice of tailoring products and marketing program to the needs and wants of specific individuals. Micromarketing is also known as Individual marketing or one to one marketing. For example. Dell is doing individual marketing, by taking the order of every individual and prepare the computer accordingly.

Positioning
Positioning refers to how organizations want their consumers to see their product. Positioning:- Is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market. Positioning Strategy A Positioning Strategy results in the image you want to draw in the mind of your customers, the picture you want him/her to visualize of you what you offer, in relation to the market situation, and any competition you may have.

You will be faced with three main options while designing your Positioning strategy. 1. Positioning your product against your competitors, " Our prices are half of that you may find else where for similar products" 2. Emphasizing a distinctive unique benefit 12.1 Mega Pixel Camera in Mobile 3. Affiliating your product with something the customer knows and values Kardan is offering the same course outline offered by Oxford University"

Product, Services and Branding Strategy

Product: - Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. Service: - A form of product that consists of activities, benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

Levels of Product
Core benefit:- What the buyer really buying. For example a woman buying lipstick she buys more than lip color, or a person buying Nokia N97, is buying more than a wireless mobile phone, like email, internet, web browsing, pictures etc. Actual: -The product planner must turn the core benefits into actual product. That is design, quality level, a brand name, and packaging. Augmented product:- When consumer buy the Nokia N97, the company and its dealer also might give buyers a warranty on parts and workmanship, instruction on how to use the device

Classification of product
Consumer product: - Product that are bought by the consumers for personal use. Consumer products include Convenience, Shopping, Specialty and Unsought Products

Industrial Product: - Product bought by individuals and organizations for further processing or for use in conducting a business.

Industrial product: - Three groups of industrial product and services. Material and parts Capital items Supplies and services.

1. Material and parts: - It includes raw material and manufactured material and parts. 2. Capital parts: - Are industrial products that use in the production or operations, including installation and accessory equipment. 3. Supplies and services: -Supplies include operating supplies (lubricants, paper, pencil) and repair and maintenance items (paint) Business services include maintenance and repair services (window cleaning, computer repair)

Product and Service Decisions

Key Decisions Individual Product Product attributes: - (benefits) (Quality, features, style and design) Branding: - (a brand is a name, term, sign, or design or combination of these) that identifies the maker or seller of a product or services and differentiate them from those of competitors. Packaging: - The activities of designing and producing the container or wrapper for a product. Labeling: - Label range from simple tags attached to products to complex graphics, label identifies the product or brand. Label might also describe several things about the product, like who made it, where it was made, when it was made, its contents, and how it is to be used and how to use it safely. Product support services: - include warranty and after sale services and spares.

Product Line: - A group of products that are closely related because they may function in a similar manner be sold to the same customer groups, be marketed through the same types of outlets fall within given price ranges Product Mix: - Consists of all the product lines and items that a particular seller offers for sale.