Needs State of felt deprivation:

Physical: food, clothing, warmth, safety Social: belonging and affection Individual: knowledge and self-expression

Based on FOUR premises all humans acquire a similar set of motives through genetic endowment and social interaction Some motives are more basic and critical than others The more basic needs must be satisfied at minimum level before others are activated As soon as the basic motives are satisfied, more advanced motives come into play

Behaviour is directed towards satisfying needs Needs are satisfied in a hierarchical order Behaviour is influenced by unsatisfied needs Satisfaction results in behaviour being focused on satisfying new needs Non satisfaction of needs results in frustration

SelfActualisation Needs Self development, self realisation Esteem Needs Recognition, status Social Needs Sense of belonging, Love Safety Needs Security, shelter, protection Physiological Needs Hunger, Thirst

Kotler& Armstrong, 2010:159

PHYSIOLOGICAL
Products: Predominantly in poorer sections of

society, basic foods such as mielie meal, samp, bread In a more affluent society, medicines such as special drinks and foods for athletes, zero cholesterol margarine for heart condition sufferers, light drinks for weight conscious, gyms

SAFETY products
In poorer society, basic housing, shelter In wealthy societies, home security systems, cars

SOCIAL NEEDS products

Personal grooming, foods, entertainment,

alcoholic drinks

ESTEEM NEEDS products

Clothing, cars, furniture, TV, cell phones

SELF ACTUALISATION products

Education, hobbies, wine, therapy Hard to buy.but you can try!

Various products will satisfy more than 1 need

Understanding Needs is the key to the marketing concept eg Encyclopaedia Brittanica:

In the past, a detailed 30-volume book, with an

annual update volume Information about almost everything, using the best authors, highest quality printing, graphics

BUT
It dated very quickly, it was expensive, marketing

and production costs very high

Today.. It doesnt exist Replaced by

Encarta, Google, Wikipaedia.. For free on pc, lap

top, cell phone, Ipad

And.. Their benefits (besides price)

Up to date Easy access (very user friendly) Easy cut and paste.. But be careful.. We have

Turnitin, Mydropbox

Easy access, friendly, accurate, up to date, information which can be used for referencing, create a unique project, which is cheap The lesson
Needs can be satisfied in a number of ways..

People dont need a book, they need information

Written by Theodore Levitt 1963 Revolutionary, controversial but still relevant today

Define your business in terms of CUSTOMERS NEEDS not on the basis of your product:
Were not in railroads, were in the efficient transport business

Were not in TV, were in the entertainment business

Imaginative market definition is the basis for success, e.g Revlon

Im no selling cosmetics, Im selling hope in a bottle

CAN YOU THINK OF ANY?

Cargo ships to container ships and palletised air freight Sea travel to air travel Rail travel to car; to air ; air to rail Post to courier services to email Handwritten posted cheques to cheque cards to internet

Records to CDs to DVDs to internet downloading to

iPods Landline telephone to cell phone to Skype Conference attendance to video conferences Hotels to B&B

Needs
A state of felt deprivation

Wants

Demands

The form that Wants backed by needs take as they buying power are shaped by culture and individual personality Want a Car? Ferrari anyone? Want food? Curry or Sushi?

Market offerings Some combination of products, services, information or experiences offered to a market to satisfy a need or want Exchanges
Money Time Mutually beneficial

In designing a strategy to generate profit, what philosophy to follow? Production concept Product concept Selling concept Marketing concept Societal concept

Production concept
The idea that consumers will favour products that are available or highly affordable and that the firm should therefore focus on improving production and distribution efficiency. Manufacturing in China Beware Marketing Myopia

Product concept
The idea that consumers will favour products that offer the most quality, performance and features for which the firm should therefore devote its energy to making continuous improvements Careful not to design a better encyclopedia!

Selling concept
The idea that consumers will not buy enough of the firms products unless it undertakes a large-scale selling and promotion effort. Often with grudge purchases insurance Aggressive sales, high acquisition costs. Risk: CRM

Marketing concept
The philosophy that achieving a firms goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do. Not make and sell Sense and respond Continuous assessment

Societal marketing concept

A principle that holds that a firm should make

good marketing decisions by considering consumers wants, the firms requirements, consumers long-term interests and societys long-run interests Society Elizabeth Anne

Consumers

Business

INTEGRATED MARKETING PROGRAMME: WHAT IS IT?

A comprehensive plan that communicates and delivers the intended value to chosen customers

Marketing mix The set of tools (four Ps) the firm uses to implement its marketing strategy.
Product Price Place Promotion

Extended marketing mix

People Processes Physical evidence

SELLERS VIEW

BUYERS VIEW

Product Price Place Promotion

Customer solution Customer cost Convenience Communication

Managing the marketing effort on an ongoing basis requires: Analysis Planning Implementing Controlling
Analyse

Adapt

Plan

Measure

Implement

The complete analysis of the firms situation in a SWOT analysis that evaluates the firms: Strengths Weaknesses Opportunities Threats

Executive summary Analysis

Current marketing situation

Threats and opportunities

Planning
Objective and issues

Implementation
Action programmes Budgets

Controls
KPIs

The process that turns marketing plans into marketing actions to accomplish strategic marketing objectives Successful implementation depends on how well the firm blends its people, organisational structure, decision and reward system, and firm culture into a cohesive action plan that supports its strategies

Functional
Centralised and specific: Sales, advertising,

research, agency

Geographic
Based on territories

Product
Where many products, focus per product

Market or customer management

Based on differing customer needs per marker

Measuring and evaluating results and taking corrective action as needed Audit
Operating control check against plan Strategic control check the plan!

ROI and KPIs

Starting

Focus

Means

Ends

The selling concept

Factory

Existing Products

Selling and Promoting

Profits through sales volume

The marketing concept

Market

Customer Needs

Integrated Marketing

Profits through customer satisfaction

Kotler,24

Strengths Internal capabilities, resources and positive situational factors that may help to serve customers and achieve objectives

Weaknesses Internal limitations and negative situational factors that may interfere with performance

Opportunities Favourable factors or trends in the external environment that may be exploitable

Threats Unfavourable factors or trends that may present challenges to performance