Marketing

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Marketing

• Creating and Positioning Goods and Services

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What is Marketing?

• Marketing is a philosophy and an organizational
  function as well as a set of processes for
• creating, communicating and delivery value to
  customers
• managing customer relationships in ways that
  benefit the organization and its shareholders

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What is Marketing?

• Marketing is about informing customers message on
  a product
• such as its quality, features and ability to
  satisfy customer demand
• Marketing is about persuading customers to buy a
  product
• the product can well satisfy their needs
• A primary marketing task is
• to devise a market plan that will capture the
  attention of customers
• to create a place for the companys product a
  product image or identity (Logo) in their
  minds, whether they need it or not

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What is Marketing?

• Marketing identifies a need, develops a product
  to satisfy that need at a profit.
• The need identification suggests an ongoing
  customer relationship (involving CRM) in a very
  competitive global environment

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What is Marketing?

• Marketing is a powerful tool that can help a
  company develop and differentiate its products to
  meet the changing needs of its customers
• Marketing is a major determinant of company
  profitability and the health of a nations
  economy because it stimulates people to purchase
  goods and services

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How marketing, Product development, and Sales
Cooperate to Get product to Customers
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Marketing

• Marketing
• Segmentation
• Branding
• Marketing strategy
• Marketing plan

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Product Life Cycle and Marketing

• A change in product demand over time
• Embryonic
• Growth
• Maturity
• Decline
• Marketers need to understand this cycle as the
  profit life cycle is usually one stage ahead of
  sales over time
• Typically profits peak before sales

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Product Life Cycle
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Marketing plan

• A marketing plan is a detailed and focused
  strategy marketing efforts to meet consumer needs
  and wants
• In planning and implementing strategies,
  marketing managers rely of four basic components
  or variables

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Marketing Mix

• These controllable variables are the four Ps
  of the marketing mix and are
• Product
• Price
• Place
• promotion

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Market Research

• Market research is the study of what buyers need
  and of the best ways to meet those needs
• This process entails studying the firms
  customers, evaluating possible changes in the
  marketing mix, and helping marketing managers
  make better decisions about marketing programs

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Market Research Methods
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Market Research Methods

• Focus groups
• A collection of people brought together to share
  their thoughts and feeling about a particular
  product
• Uncover how and why it satisfies or does not
  satisfy customers need
• Asking these customers
• what they like and dislike about the
  characteristics of the firms products
• and competing products
• By creating focus group to improve current
  product, such as entry level cars

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Market Research Methods

• Customer oriented approach
• Understand the existing product
• why the existing products failed to meet customer
  demand
• How future product should be designed
• Interview customers individually, ask them to
  fill out surveys

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Market Research Methods

• Use leading customers
• No current products can meet their demands
• Staying close to your customers and observing
  what they are doing to making things work
• Discovering unmet needs
• E.g. www.ctrip.com or Home Inn

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Market Research Methods

• Become a leading provider
• Companies believe their products will better
  satisfy customer needs even though they have no
  sure proof of it
• Starbucks Howard Schultz coffee bar culture and
  lifestyle

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Market Research Methods

• Reverse engineering
• Study competitors product to improve own product
• Purchasing the products of competitors and
  carefully examining them to discover the
  qualities or features that make them successful
  or unsuccessful
• E.g. Hampton Inn
• E.g. T-62 and 72 Tank
• E.g. LOGO

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LOGO
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LOGO
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LOGO
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LOGO
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LOGO
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LOGO
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LOGO
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Market Segmentation

• The process of dividing markets into categories
  of customers
• Businesses have learned that marketing is more
  successful when it is aimed toward specific
  target markets
• groups of consumers with similar wants and needs

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Market Segmentation
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Market Segmentation

• Six principal car market segments
• Passenger sedans
• to get a person to work
• Minivans
• carry six-plus people or cargo
• Personal Luxury vehicles
• for personal esteem
• Sports cars
• to thrill their occupants and test their driving
  skills
• Sports utility vehicles (SUVs)
• to be rugged and off the road vehicles
• Pickup trucks
• Cargo carrying

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Market Segmentation Toyotas product Lineup
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Approaches to market segmentation

• Once market segments have been identified, a
  company has to decide whether to make products to
  serve one, several, or all of these segments

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Approaches to market segmentation

• Three main approaches to market segmentation
• No market segmentation
• The product is targeted at the average customer
• Results in mass marketing the selling of a
  mass-produced product to all customers

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No market segmentation
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Approaches to market segmentation

• High market segmentation
• Recognizes different segments and a product is
  offered to each market segment
• Results in multiple-segment marketing different
  models of a products are made and sold to
  different segments

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High Market Segmentation
Dells Main Customer Groups
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Approaches to market segmentation

• Focused market segmentation
• Choose to target just one or two market segments
• one product is offered to one or a few market
  segments
• Focused marketing

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Focused Market Segmentation
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Approaches to Market Segmentation
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Marketing Mix

• Product differentiation
• is the process of creating a competitive
  advantage by designing goods and services to
  satisfy customer needs
• When a company decides to make and sell many
  different types or models of a product, problems
  of designing the marketing mix to differentiate
  between products becomes much more complex

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Marketing Mix

• In practice, product differentiation is the
  result of the design of the marketing mix
• 4 Ps
• Price
• Place
• Promotion
• Product
• Sometimes another P is also added
• People

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Marketing Mix
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Marketing Mix Product

• Product differentiation between a firms products
  and its competitors is from the real or
  perceived difference
• Creating real product differences
• Quality and reliability
• Superior quality is the real difference
• Innovation
• Leads to the development of new or improved
  products
• After sales service and responsiveness to
  customers

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Marketing Mix Product

• Creating perceived product differences
• Psychological needs, such as the needs for
  prestige, self-actualization
• Can be achieved by advertising and promotion
• Packing
• The look or physical appearance of a product
• Send a clear message to customers about quality
  and image

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Marketing Mix Price

• Target price
• The price a typical customer will be willing to
  pay for a product with a particular set of
  qualities and features
• Set the target price, and then develop each
  element of market mix
• Such as entry level car of Rmb 100k
• Customer must find more value in a product than
  the price they pay for it

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Marketing Mix Promotion

• Promotion relates to they way of a company gets
  the attention of its customers
• To inform customers about the physical attributes
  of its products and persuade customers to buy it
• Over 75 of the price of a box of washing powder
  goes to pay for the cost of promoting the product
• 300 to 6,000 of the price of a new car is spent
  to tell customers how excellent it is

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Marketing Mix Promotion

• Advertising
• The paid and non-personal promotion
• Using mass media to influence customers
• Three common techniques for advertising
• Repetition
• Ads are repeated over and over again
• The bandwagon effect
• Implies that the product is widely used by others
• Testimonials
• The superior quality is told by experts, other
  users

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Marketing Mix Promotion

• Sales promotion
• Such as coupons, discounts, rebates, incentive
  items, etc
• Public relations (PR)
• Conveying massagers to the public through the
  media to influence peoples opinions about
  company and its products
• Personal selling
• Direct face to face communication by salespeople
  with existing and potential customers to promote
  a companys products

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Marketing Mix Place

• The distribution channels used to get both
  marketing message and product to customers

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Marketing Mix Place Four main distribution
channels
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Marketing Mix People

• Customer relationship management (CRM)
• An IT based knowledge management system designed
  to track customers changing demand for a product
  
• To maximize responsiveness to customers. CRM
  system consists of a marketing module, a sales
  and selling module, and an after-sales service
  and support module

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CRM
Marketing Mix People
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Product Positioning at Ralph Lauren

• Positioning is the process of customizing a
  product to the characteristics of a specific
  market segment.
• It requires markers to clearly distinguish
  between products to avoid customer confusion
• When a company has many different types of a
  product, differentiating the product to avoid
  customer confusion becomes important
• Chose different marketing mix (4 Ps) for the
  product in its competing segment

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Product Positioning at Ralph Lauren

• Place
• RLs casual and sporting brands department
  store chain
• Designer brands boutiques in top-of-the-line
  department store
• RL outlets overstocked clothing at discount
  prices

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Marketing Mix Branding, Marketing Message and
Customer Loyalty

• When a products marketing mix is well-designed,
  it sends a strong marketing message to customers
  about how and why the product will better satisfy
  their needs
• Product Branding is the process of using a unique
  name, design, symbol, or other elements of the
  marketing mix to distinguish a product from its
  competitors
• A brand name or logo is the specific name, sign,
  or symbol a company uses to do this
• The reward for marketings ability to turn a
  product into a brand is brand loyalty

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Marketing Mix Branding, Marketing Message and
Customer Loyalty

• Some special cases for misleading customers
• Take advantage of the famous brands or their
  customer loyalties

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Marketing Mix

• How each of the four components of the marketing
  mix could be used to position a new car for the
  China S-Generation?

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International Marketing culture and localization

• When a MNC takes internationalization, it must to
  concern local culture so that a appreciate or
  right marketing strategy can be sued.
• The followings are some cases involving culture
  issue in marketing

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International Marketing culture and localization

• Waterloo
• ???
• Ansett
• ????
• CAAC
• Civil Aviation Administration of China??????

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International Marketing culture and localization

• ??????LOGO???
• ?????????2005???,???????????????????,???,?????????
  ?????????
• ??????????,?????????????,?????????????????????????
  ?????????
• ???????????????LOGO,??????????????

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Local Culture

• ??LOGO??????????
• ??LOGO????
• ??LOGO?????
• ??LOGO?????????
• ???LOGO???????
• ???LOGO????????
• ???LOGO?????????????,???

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Local Culture

• ???????????,?????LOGO????????????,?????????????
• ????LOGO????????????????

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Local Culture

• ???????LOGO???,???? ?????????????
• ??????????????????????,????????? ????????
• When a company does its marketing, it must
  concern culture issue and relate to the image or
  quality of its product