BTMW 4012

TECHNOPRENEURSHIP

LECTURE 5

MARKETING
INTRODUCTION
Marketing is an exchange activity that
takes place between a business entity and
its customers
The customers include :
Individual
Other business entity (e.g. wholesaler &
retailer)
Support organization (eg. Bank and government
agencies)

Marketing is critical since it forms the

backbone in achieving a profitable
NEEDS AND WANTS
Human needs: Basic physiological
requirements in ones life (eg. Food, drink,
clothing, accommodation and security)
Wants: The different forms of unfulfilled needs
Wants are often influenced by ones culture,
social upbringing, personality and religion
Example : Rice and fish curry might satisfy the
Asian palate, while Europeans would go for
steak and salad
MARKETING CONCEPT

The philosophy : All marketing activities

must satisfy customer needs and wants,
and at the same time achieve the targeted
profits
The focus for long term business: customer
satisfaction first and then profit
Satisfied customers will repeat to buy while
unsatisfied customers will not.
MARKETING DEFINITION

Activities that are carried out

systematically to encourage and
increase sales of products/services as
long as the activities are in line with
religious and ethical practices.
DEFINING THE MARKET

1. A market is a physical place where buyers

and sellers exchange goods and services

2. A market is any entity that has purchasing

power to acquire goods and services to
fulfill its needs and wants
MARKET CATEGORIES

Category Profiles
Human Being Geographic
Demographic
Psychographic
Government Local Government
State Government
Federal Government
NGOs Environment
Social
Cultural
Business Entity Manufacturer
Wholesaler
Agent/Dealer
Retailer
TARGET MARKET

Is the group of customers with needs and

wants that can be satisfied by the business
through the supply of goods and/or services

Marketing efforts should focus on this taget

market to ensure that tey are within the
scope and capabilities of the business
IMPORTANCE OF TARGET
MARKET

1. Its impractical and almost impossible for a

business to offer a product that can satisfy
the needs and wants of the entire
population

2. Businesses have limited resources in term

of time, money and man power.
IDENTIFYING THE TARGET
MARKET

1. Identify the product or service to be

offered
2. Focus the marketing effort :
i. Identify the market area and business location
ii. Collect information and data of customers
iii. Segmenting the market

3. Determine the target market from

identified market segments
SALES FORECAST

Sales forecast is the expected sales

potential from the selected target
market. The sales forecast is quaoted
in units of sales or in RM per period of
time
MARKET SEGMENTATION
Segmentation Variables/Bases
1. Geographic District
Residency
Division
State
Country
Climate

2. Demographic Age
Occupation
Gender
Education
Income
Social Class
Family
Race
Sub culture

3. Psychographic Personal taste

Status
Preferences
Ego
Hobbies
Political attitude
Sensitivity to price
Motives of purchase
Loyalty to product
STEPS IN SALES FORECASTING

1. Determine Market Size

2. Identify the Competitors
3. Estimate Market Share
4. Forecast Sales :
Customer Awareness Of The Existence Of The
Business
Seasonal Factors
Pre-Sales Period
PREPARING A MARKETING PLAN

1. Define the product concept

2. Identify the target market
3. Determine market size
4. Identify competitors
5. Determine market share
6. Develop sale forecast
7. Develop marketing strategies
8. Prepare a marketing budget
DEVELOPING MARKETING
STRATEGIES
Four Ps Strategies:
1. Product
2. Price
3. Place (distribution)
4. Promotion
PRODUCT/SERVICE STRATEGY

Special attention should be given on :

Brand
Choose a brand name that is unique and not already in use or
protected by copyright
Quality:
Can be in terms of performance quality and conformance quality
Design
Packaging :
Consider packaging in term of: Protection, ease of use, product
differentiation, attractive to customer, safety and labelling
After sales service
PRICING STRATEGY
1. Cost Based Pricing
Decision based on :
Average profit margin of the industry
The number and strength of competitors
Formula :
Price = Total cost per unit + Mark Up

2. Value-Based Pricing
3. Competition-Based Pricing
DISTRIBUTION STRATEGY

1. MANUFACTURER CONSUMER

2. MANUFACTURER RETAILER CONSUMER

3. MANUFACTURER WHOLESALER CONSUMER

4. MANUFACTURER WHOLESALER RETAILER

CONSUMER
PROMOTION STRATEGY (1)
1. Advertising:
Printed Media
Broadcast
Internet
Outdoor

2. Sales Promotion

3. Public Relations and Publicity

PROMOTION STRATEGY (2)
Example Advertising
PROMOTION STRATEGY (3)
Example of Promotion
 PROMOTION STRATEGY (4)
Example of Public Relation/Publicity
MANAGING MARKETING
ACTIVITIES
The Gann Chart
No. ACTIVITIES MONTH
1 2 3 4 5 6 7 8 9 10 11 12

1 General briefing to personnel

2 Advertising & promotion launched

3 Departmental coordination

4 Briefing for all distribution channel

5 Sales visits

6 Monitoring & corrective actions

7 Consolidation
MANAGING MARKETING
ACTIVITIES (2)
The Marketing Budget
ITEMS FIXED ASSETS MONTHLY EXPENSES OTHER EXPENSES
EXPENSES (RM) (RM) (RM)
Signboard 300
Marketing Personnel
Salary
Commission 5,000
EPF/SOCSO 5,000
Travelling 1,000
Promotion 2,000
Grand Opening 10,000
5,000
Total 300 13,5000 15,000