Marketing

Remus HIRSCHKORN
Andrei UTA
Andrei STOICA
Liviu CIULINARU
Marin VIRDOL
Mihai CEPOI
Malina RADESCU

Topics
Define marketing
Marketing context
Marketing evolution
Marketing process
Marketing environment
Global marketing

Definition
Management philosophy according to which a firm's goals
can be best achieved through identification and satisfaction
of the customers' stated and unstated needs and wants.
The management process through which goods and
services move from concept to the customer. It includes
the coordination of four elements called the 4 P's of
marketing:
1. identification, selection and development of a product,
2. determination of its price,
3. selection of a distribution
channel to reach the customer's place, and
4. development and implementation of a promotional
strategy.

Context

The Production era

Between the 1860s and 1920s
Creation of a supply of low-cost products
High level of unfulfilled demand
Mass producing goods was a primary driver of sales
1. Can we produce the product?
2. Can we produce enough of it?

The Sales era

Between the 1920s to the 1940s
Mass production had become commonplace
Competition had increased
Little unfulfilled demand
Little attention paid to whether the product
actually was needed
Little regard to customer satisfaction
1. Can we sell the product?
2. Can we charge enough for it?

The Marketing era

After World War II Late 1940s
The variety of products increased
Hard selling no longer could be relied upon to generate
sales.
Customers could afford to be selective and buy only
those products that precisely met their changing needs,
and these needs were not immediately obvious
1. What do customers want?
2. Can we develop it while they still want it?
3. How can we keep our customers satisfied?

Evolution

Marketing Process

Needs, wants & demands

Market offering
Customer satisfaction
Customer delivered value

Marketing Process
Analysis
(customer needs, opportunities, market research, competitors)

Planning
(marketing plan & strategy, objectives)

Implementation
(marketing mix decisions)

Control
(measure performance, evaluate results, take corrective actions)

Needs, wants & demands:

Maslows Hierarchy of Needs

NEEDS
+ personality, taste, knowledge etc.

WANTS
+ ability to pay

DEMANDS
Products & services satisfy either needs, wants or demands

Market offering
Market offering represents the product or service that is sold into the
marketplace.
A product is anything that can be offered to a market for attention,
acquisition, use or consumption and that might satisfy a want or
need.
Ex: physical objects(goods), services, persons, s.o..

A service is 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.
Ex: banking, tourism, home repairs, s.o..

Consumer Products & Business

Products
Consumer
products
Convenience products
Buy frequently & immediately;
Low priced;
Mass advertising;
Many purchase locations.

Speciality Products

Special purchase efforts;

High price;
Brand identifications-special features;
Few purchase locations.

Shopping products

Buy less frequently;

Higher priced;
Require some effort in purchasing
Fewer purchase locations.

Unsought products

Purchased when a sudden need occurs

Needed to quickly solve the problem;
Not normally think of buying;

Business products
Installations

Buildings, warehouses
Major pieces of equipment

Accessory Equipment

Used in production
Used in office activities

Raw materials

Basic natural materials used in making products

Component parts

Finished items that become part of final product

Process materials

Used in production of other products

MRO supplies (maintenance, repair, operating)

Facilitate production and operating but dont become part of finished product

Business services

Intangible products used by organizations in their operations

(ex: lawyers, consultancy, accounting etc)

Customer satisfaction
Customer satisfaction with a purchase depends upon the products
performance relative to the buyers expectations.
In the marketing process, customer satisfaction is part of the control stage.
It is often seen as a KPI (key performance indicator) within a business.

Tracking customer satisfaction

Complaint & suggestion system

Customer satisfaction surveys
Ghost shopping (Mystery shopping)

Customer delivered value

Customer delivered value or customer perceived value represents the difference
between the total obtained benefits (total customer value) according to the
customers perception and the cost that he had to pay for that (total customer cost).

Total Customer
Value
Product value
Services value
Personnel value
Image value

Total Customer
Cost
Monetary cost
Time cost
Energy cost
Psychic cost

Customer
delivered value

Greater customer delivered value influences the customers decision to

purchase a product or influences him deciding between similar products.

Marketing
Environment
Definition
Types of marketing environments
Examples

What is marketing
environment?

Changing
Age
Structure

Population
diversity

Changing
Family
Structure

(Growing Ethnic
and Racial
Diversity)

Demographic
Trends

Increased
Education

Geographic
Shifts

Demographic Environment
Generational marketing
1946 1964

Baby boomers

1965 1976

Generation X

1976 1994

Generation Y

1995
now

Generation Z

Demographic Diversity Based Advertising

Economic Environment
Changes in Income
Income Distribution

Upper class
Middle class
Working class
Underclass

Income Distribution

Technological Environment
Rapid change
Provides new markets and new opportunities

Internet
Medicine
Miniaturization
Weapons
Credit cards
Communication

New forms of comunication

Marketing in a tech world

The social and cultural environment

What is social environment?

What is cultural environment?

How does cultural and social factors
influence the marketing plan?

The legal and political environment

What is legal environment?

What is political environment?

How does legal and political factors

influence the marketing plan?

Global Marketing

What is global marketing?

The process of conceptualizing and then
conveying a final product or service worldwide
with the hopes of reaching the international
marketing community.
Important for products of universal demand:
food, automobiles.

USA vs. China vs. Japan

Global marketing and the automobile

industry

Global competitive marketplace.

Global alliances.
Global emerging environment.

Ways of entering global markets

Direct Export

Indirect Export

Licensing

Franchising

Contracting

Manufacturing
abroad

Joint Venture

Basic strategies in developing a global

marketing mix
Product

People

Price

Positioning

Place

Packaging

Promotion

Basic strategies in developing a global

marketing mix
The most appropriate and suitable product for
customers demands.

Basic strategies in developing a global

marketing mix
The most competitively advantageous price.

Basic strategies in developing a global

marketing mix
Chose a good and accessible place for
targeted customers.

Basic strategies in developing a global

marketing mix
Make sure that the chosen way of promotion
corresponds to the product sold.

Basic strategies in developing a global

marketing mix
Develop a packaging as if you were a the
critical and pretentious consumer.

Basic strategies in developing a global

marketing mix
Think continually about how you are
positioned in the hearts and minds of your
customers stand out in the crowd!

Basic strategies in developing a global

marketing mix
Develop the habit of thinking in terms of the
people inside and outside of your business.

1st Case Study

When was marketing invented ?

King Frederick II of Prusia (the Great, 300y ago)

Wonder plant from South America (the potato)
By force ? No!
The royal vegetable
Worth guarding => worth stealing
The potato flourished and has lived on as a staple of
the local cuisine ever since.

2nd Case Study

5 marketing strategies of success for a $3 billion business
Know your customer
Music, music lovers, hip-hop music lovers.
recreate excitement of being in the studio co Founder
by Dre (aka Dr. Dre)

Differentiate your offering

Not only music but a fashion accesory
Two powerful value propositions for their costumers

Sell benefits, not features

Launched with music videos and celebrity endorsements

Forget price, compete on value

$400 product on a existing market with $20 alternative
Exclusivity using celebrities (similar to VIP club) => proud

Diversification
Sound technology into HP computers; into Chrysler 300s, Dodge Chargers, and
Fiat 500s (all owned by Chrysler)

Time to write down