Basics of

Marketing
By:
Mohammed Morsy

The Market
The market for a product is the total number of sellers &
customers and potential customers for that product.

Types of markets
1- Consumer Market
Goods & services are bought by
individual customers & consumers ,
(mostly from shops)

Types of markets

2- Commercial Market (B2B)

Goods & services are used by

other business to operate &
Produce goods or services
they supply
-.. More examples. ?

Type of markets

Examples for B2B:

Wheat for bakery

Types of markets
3- C2B
-

When someone sells his old item to

company to get a new one

4- C2C
- When existing consumer sells his old item to another
customer

Market share & Market Size

Market share:

-the amount of product or

Service (usually %) that a
Business sells in a given market area

Market size:

- Number of buyers & sellers in a particular market

Large market

competition

Market Segmentation
(What?)
Categorizing or sectioning customers & potential
customers into groups, sharing same characteristics or
same level of interest & requirements

- Dividing a heterogeneous demanding

markets into homogenous groups
based on similar characteristics.

Why to segment a
market?
to allow a market or sales program to focus on the
prospects that are most likely to purchase the
products or services on offer

Through creating customer profiles for each product,

allowing business to focus it`s efforts on certain
segments to achieve certain objective

Effective Segmentation
Criteria
Measurable

Accessible

Substantial

Differential

Size, purchasing power,

profiles
of segments can be
measured.
Segments can be
effectively
reached and served.
Segments are large or
profitable enough to
serve.
Segments must respond
differently to
different marketing mix
elements
& programs.
Effective programs
can

be designed to attract
and serve the segments.

Actionable

How to segment a market?

Geographic

Demographic

psychographi
c

Region
Population density

Climate

Age
Gen
der
Fami
ly
size
Fami
ly
lifec
ycle
Gene
ratio
n
Inco
me
Occu

Activi
ties
Intere
sts
Opini
ons
Attitu
des
Value
s

Benefits
sought
Usage
rate
Brand
loyalty
User
status
Readine
ss to
buy

Behavioral

Guess!
Which comes first
.The Product? Or the Market!?

Evolution of business
Production Era
Prior to 1930, demand exceed supply. Competition was
limited. Manufacturers focused on making products with
little concern to satisfy buyer`s needs

Sales Era
After the stock market crash in 1929, there werent
enough customers to buy all the products manufactured.
Companies depended heavily on sales to push their
products regardless of the buyers needs.

Marketing
social process, by which
individuals and groups obtain
what they need and want through
creating and exchanging
products and value
with others

Marketing
Management process that
identifies, anticipates and satisfies
customer requirements profitably

Marketing
The process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and
services to create exchanges that satisfy individual and
organizational goals.

Marketing
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.

Exchange
Communicatio
n
Goods/services

Industry

(a collection
of sellers)

Market

Money

Information

(a collection
of Buyers)

Exchange

NEEDS

Wants
Needs directed to specific
objects that might satisfy a need
e.g. fast food, bottled water,
Jeans, etc

Demands
Willingness & ability to pay for a product e.g. Mc Donald
burger, Dasani, Levis ,etc
Want
Demand

Buying power

+
=

Value
-

Customer Satisfaction
Dependent on the customers perceived
value which translated into products
performance relative to a buyers
expectations.

Purpose of Marketing

1)

Identify. Anticipate, influence & satisfy customer

needs

2)

Respond to changes in the market

3)

Improve market share

4)

Enter new markets

5)

Increase awareness for products or services

6)

Builds a relationship with stake holders

Marketing activities
1- Market Research
2- Product Research &
development
3- Pricing
4- Promotion
5- Distribution

Questions??

by:

Mohammed Morsy