PRINCIPLE OF MARKETING

Course Modules
Introduction
Marketing Main Concepts

Module I
Customer-Driven Marketing Strategy

Module II
Customer-Driven Marketing Mix

Agenda
Introduction
Marketing Main Concepts
What is Marketing?
Marketing Defined
Needs, wants, and Demands
The Marketing Process
Who/What Needs Marketing?

Marketing Environment
Marketing Microenvironment
Marketing Macro environment

What is the differences between sales and

Marketing ?
Marketer

Sales

Marketing VS Sales
Starting Point Focus
Market

Customer
Needs

Means
Integrated
Marketing

Marketing Concept

Factory

Sales Concept

Existing
Products

Selling and
promoting

Ends
Profits Through
Customer
Satisfaction

Profits
Through
Sales
Volume

What The Difference

Between ...?
Marketer

Graphic Designer

What Do You Think??

Graphic Design Is A Powerful Tool For Marketers To Achieve His Goals

Through Visual Communication

What is Marketing ?
Communicate

Create

And

Target
A

Value

To a

To

Deliver

At

Profit

Market

Marketing definition?
Top 4 Marketing Detentions

American Marketing Association Definition

Social Definition
Peter Drucker Definition
The Shortest Marketing Definition

1-American Marketing Association Definition

Marketing is the activity, set of institutions,
and processes for creating, communicating, delivering, and
exchanging
offerings that have value for customers, clients, partners, and
society at large.

2-Social Definition
Marketing is a social and managerial process by which
individuals and groups obtain what they need and want
through creating, offering, and exchanging products of value
with others.

Kotler, Keller marketing management (14th edition)

Peter Drucker

There will always, one can assume , be need for some selling but
the aim of marketing is to make selling superfluous the aim of
marketing is to know and understand the customer so well that the
product or service fits them and sells itself . Ideally marketing
should result in a customer who is ready to buy

The Shortest Marketing Definition

Meeting needs Profitably

Need

Want

Demand

Who/What needs Marketing?

Products

Service

Events

Persons

Places

Properties

Organizations

Ideas

Market Research
Market Research process
1- Data Collection
2- Data processing
3- Data Analysis
4- Information Evaluation
5- Data Analysis

Why Market Research?

Market research can answer all the questions
Who are my target audience
What do they Need
What are their wants
Which geographic have sales potential
What can be the distribution channel
Why they will need / want my product and services
Who will be our competitor
How is the Market environment
What can I d to make my product and service more attractive
What are the government rules and regulation in my target market
What is the best entry strategy for my market target

Market Research

Market Research

Case

Knowing your customer

Marketing Strategy
Segmentation

Market Segmentation: Dividing a market into distinct groups of buyers

(Market segments) who have distinct needs, characteristics, behavior, or
might require separate products or marketing programs .

Knowing your customer

Marketing Strategy
Segmentation
Segmentation Factors(Variables)
Consumers could be grouped based on :
Geographic Factors
(Place Area Specific Environment )
Demographic Factors
(Age Gender Race- Income Social Class - Education etc. )
Psychographic Factors
(Personality - Opinions- Attitudes Interests Lifestyle- Beliefs- Values)
Behavioral Factors
(Loyalty Usage rate Occasions etc.)

Knowing your customer

Marketing Strategy
Segmentation
Geographic Factors (Place Area Specific Environment )

Case

Case

Case

Knowing your customer

Marketing Strategy
Segmentation
Demographic Segmentation
( Gender)
Market Segment (1) : Men

Case

Market Segment (2) : Women

Case

Knowing your customer

Marketing Strategy
Segmentation
Effective Segmentation Requirements

Market Segments must be

Measurable
Accessible
Substantial
Differentiable
Actionable

Knowing your customer

Marketing Strategy
Segmentation

How Many Market Segments in this Ad ?

Case

Case

Can We Target New Segments With Same product?

Case

Knowing your customer

Marketing Strategy
Segmentation

Should You Serve all the Segments ?

Knowing your customer

Marketing Strategy
Targeting

Market Targeting: The Process of Evaluating each market segments

attractiveness and selecting one or more(Target Segment/Target
Market) segments to enter.

Knowing your customer

Marketing Strategy
Targeting

Demographic Segmentation
( Age)
Market Segment (1) : Young
Market Segment (2) : Old

Target Segment:
Market Segment (1): Old

Case
Case
Case

Knowing your customer

Marketing Strategy
Targeting
Targeting Factors(Five Forces Model)
Entry by Competitors
Rivalry between Competitors
Buyer Bargaining Power
Supplier Bargaining Power
Substitute Products

Knowing your customer

Marketing Strategy
What the first thing comes to your mind ?

Knowing your customer

Marketing Strategy
Positioning
Positioning : Arranging for a product to occupy a clear, distinctive place
relative to competing products in the mind of target consumers.

A product's position is how potential buyers see the product/ it is the

consumers perception of the product.
(Standing/Quality/People/Strengths/Value/Any other unusual or memorable characteristics it may
possess)

Knowing your customer

Marketing Strategy
Positioning

Case

Case

Case

Knowing your customer

Marketing Strategy
Positioning

Case

Case

Case

Knowing your customer

Marketing Strategy
Positioning
Positioning Statement

To busy, mobile professionals who need to always be in the loop,

Blackberry is a wireless connectivity solution that allows you to stay
connected to data, people, and resources while on the go, easily and
reliably more so than competing technologies.

Knowing your customer

Marketing Strategy
Positioning
Positioning Statement
It takes this form
To (Target Segment and need) Our (Brand) is (Concept) that (Point of difference).

To young, active soft-drink consumers who have little time for sleep, Mountain
Dew is the soft drink that gives you more energy than any other brand because
it has the highest level of caffeine. With Mountain Dew, you can stay alert and
keep going even when you havent been able to get a good nights sleep.

Knowing your customer

Marketing Strategy
Positioning
Positioning Statement

(Point of difference).

Point of difference ?

Knowing your customer

Marketing Strategy
Differentiation
Differentiation: Actually differentiating the market offering to create
superior customer value

If two companies go after the same positioning,

then each one must find point(s) of differences/Competitive Advantage .

Knowing your customer

Marketing Strategy
Differentiation

Competitive Advantage
Competitive Advantage An advantage over competitors gained by
offering consumers greater value, either through lower prices or by
providing more benefits that justify higher prices.

Knowing your customer

Marketing Strategy
Differentiation
Types of differentiation
Product differentiation

Knowing your customer

Marketing Strategy
Differentiation
Types of differentiation
Service differentiation

Knowing your customer

Marketing Strategy
Differentiation
Types of differentiation
Chanel differentiation

Knowing your customer

Marketing Strategy
Differentiation
Types of differentiation
People differentiation

People differentiation

Knowing your customer

Marketing Strategy
Differentiation
Types of differentiation
Image differentiation

Knowing your customer

Marketing Strategy

Name?
Inside the bottle?
Size/Material ?
Label/Colors?

Why?
To Whom?
Where?
How?
How much?

Knowing your customer

Marketing Strategy
It takes this form
To (Target Segment and need) Our (Brand) is (Concept) that (Point of difference).

Write a Positioning Statement

for your previously made product.

Marketing Mix
Product

What is a Product ?

Marketing Mix
Product
What is a Product ?
Product
Anything that can be offered to a market for attention,
acquisition use or consumption that might satisfy a want
or need

Marketing Mix
Product

Product Item Product Line Product Mix

Marketing Mix
Product
Product Item

Product line

Product MIX

Marketing Mix
Product

Make a list of product That disappeared from the Market ?

Marketing Mix
Product

Marketing Mix
Product

Why have these products disappeared?

Price
Cost
Quality
Promotion
Time
Competition
Preferences Target market
Other

Marketing Mix
Product

Product life cycle

Marketing Mix
Product

Managing Existing Product

How can you manage Existing Products ?

Line Extension

Case

Marketing Mix
Product

Managing Existing Product

Product Modification

Case

Marketing Mix
Developing new Product

Developing new Product Process

Which Comes first ?

New Idea or Market Need?

Marketing Mix
Developing new Product

Developing new Product Process

Which Comes Next?

Marketing Mix
Developing new Product

Developing new Product Process

Idea Generation
Business Analysis

Idea Screening
Product Development

Concept
Developing and
testing
Test Marketing

Marketing
Strategy
Development
Commercialization

Marketing Mix
Price

The amount of money charged for a product or service, or sum of

the values that customer exchange for the benefits of having or
What Is Price?
using the product or service

Marketing Mix
Price

Pricing is the only element in the marketing mix that produce

Why pricing is important
revenue all other elements represent costs

Marketing Mix
Price
Price Could Be

Fees

Rent

Commission

Tip

Interest

Taxes

Marketing Mix
Price
Revenues

Costs

Profits

Revenues= Price*Quantity

Total Costs= Fixed costs(overheads)+Variable Costs

Profits=Revenues - Price*Quantity

Marketing Mix
Price

What is Customer Perception of Value

Marketing Mix
Price
Factors to Consider when setting prices

Customer
Perception Of
value
Price Ceiling
No Demand Above
this price

Other internal And external

Considerations
Marketing Strategy, Objectives and
Mix, Nature Of Market and
Demand,
Competitors Strategy and pricing

Product
Costs

Price Floor
No profits below
this price

Marketing Mix
Price
Types of pricing
Value Based Pricing

Setting price based on buyers perception of value rather than the

sellers cost

Marketing Mix
Price
Types of pricing
Cost Based Pricing

Setting prices based on the costs for producing, distribution, and selling
the product pulse a fair rate of return for effort and risk

Marketing Mix
Price
Types of pricing
Cost Based Pricing VS Value Based
Cost Based Pricing

Design a good
product

Determine
product costs

Set price Based

on cost

Convince buyers
of Products
Value

Set Target price

to Match
customer
perceived Value

Determine costs
that can be
incurred

Design product
to deliver
desired value at
target price

Value Based Pricing

Assess customer
needs and value
perception

Case

Marketing Mix
Price
Types of pricing
Value Based Pricing
Good Value pricing
Offering just the right combination of quality and good
service at a fair price

Marketing Mix
Price
Types of pricing
Value Based Pricing
Value Added Pricing
Attaching value added features and services to
differentiate a companys offers and charge higher price

Marketing Mix
Price
New Product Pricing Strategy
Market Skimming Pricing
Setting a high price for new product to Skim maximum revenues layer by
layer from the segments willing to pay the high price, the company makes
fewer but more profitable sales

Case

Marketing Mix
Price
New Product Pricing Strategy
Market Penetration Pricing
Setting a low price for new product in order to attract a large number of
buyers and a large market Share

Case

Marketing Mix
Price
Product Mix Pricing Strategy
Product line Pricing
Setting the price steps between various product in a product line based on cost
differences between the products, customer evaluation, of different feature's
and competitor prices

Marketing Mix
Price
Product Mix Pricing Strategy
Optional product Pricing
The pricing with accessory product along with a main product

Marketing Mix
Price
Product Mix Pricing Strategy
Captive product Pricing
Setting a price for products that must be used along with the
main product

Marketing Mix
Price
Product Mix Pricing Strategy
Product bundle Pricing
Combining several products and offering the bundle at a
reduced price

Marketing Mix
Promotion

Promotion Concept

What is Promotion?

Promotion

Communication

Communication that facilitates exchanges by influencing the

audience to accept a product

Marketing Mix
Promotion

Promotion MIX
The Promotion Mix (Marketing Communications Mix)
The Specific blend of advertising, sales promotion,
public relations personal selling and direct marketing
tools that the company uses to persuasively
communicate customer value and build customer
relationships.

Marketing Mix
Promotion

Promotion MIX Elements

Marketing Mix
Promotion

Advertising
Any paid form of no personal presentation and promotion of ideas,
goods, or services by an identified sponsor
Tools
Ads in TV, Radio, Newspaper ,Inside Transit, Outside Transit,
Outdoors

Marketing Mix
Promotion Mix Elements

Advertising
Advantages
Masses of Geographically dispersed buyers
Repeat a message
Dramatize the product

Disadvantages
impersonal
not always persuasive
Costly
One way communication

Marketing Mix
Promotion Mix Elements

Sales Promotion
Short-term
incentives to encourage the purchase or sale of a product or a
service.

Tools
Coupons, contests,

Marketing Mix
Promotion Mix Elements

Sales Promotion
Example

Marketing Mix
Promotion Mix Elements

Sales Promotion
Advantages
Attract Customer attention
Offer strong incentives to purchase
Boost Sales
Quick Response

Disadvantages
Only Short lived
Not effective for Building Long run brand preferences
Not Effective for Building Long run Customer relationships

Case

Marketing Mix
Promotion Mix Elements

Public Relation
What is it?
Building good relations with the companys various
publics by obtaining favorable publicity, building up a
good corporate image and handling or heading off
unfavorable rumors, stories, and events

Tools
News stories, events, sponsorships,

Marketing Mix
Promotion Mix Elements

Public Relation
Advantages
More real and believable than Advertising
Reach Many people
Can Dramatize a Product

Disadvantages
One way communication
Can sometimes send the wrong message

Marketing Mix
Promotion Mix Elements

Personal Selling
Personal presentation by the firms sales force for the
purpose of making sales and building customer
relationships

Tools
Personal Interaction ( Sales force to the customer )

Marketing Mix
Promotion Mix Elements

Personal Selling
Advantages
Build up buyers preferences
Increase the interactions
Build and Enhance customer relationships

Disadvantages
it needs longer term commitment than
Advertising
High Cost

Marketing Mix
Promotion Mix Elements

Direct Marketing
What is it?
Direct connections with carefully targeted individual consumers
to both obtain an immediate response and cultivate lasting
customer relationships. Direct Marketing is nonpublic,
immediate, and customized

Tools
Direct Mail , Direct Catalogue, telephone Marketing.

Marketing Mix
Promotion Mix Elements

Direct Marketing
Advantages
Increase Interaction
Space for customer responses
Reach Many people at low costs

Disadvantages
Non responsiveness of some Customers

Marketing Mix
Promotion Mix Elements
Characteristics Of the Target Market

What do you need to Know about the Target

Market to send your message ?

Marketing Mix
Promotion Mix Elements
Characteristics Of the Target Market

Characteristics of the Target Market

Case

Marketing Mix
Promotion Mix Elements
Characteristics Of the Product

Stages in Product life cycle

Price

Product Use

Case

Marketing Mix
Promotion
Facebook Page

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