What

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Whats Marketing?
Marketing

• Marketing is the process of planning and
  executing the conception, pricing, promotion,
• and distribution of ideas, goods, and services to
  create exchanges that satisfy individuals' and
  companies' goals.

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Marketing isn't somebody's responsibility
It's everyone's responsibility
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• Marketing is a social managerial process by
  which individuals groups obtain what they need
  want through creating ,offerings exchanging
  products of value to others
• Best Definition Satisfying Needs Profitably

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• Defining a Marketing Orientation
• Exactly what is a marketing orientation? It
  occurs when everyone in the organization is
• constantly aware of
• l who the company's customers are
• l what the company's customers want or need
• l how the firm can satisfy those customer needs
  better than its rivals
• l how the firm can satisfy customer needs in a
  way that generates the kind of profits
• that the company wants to achieve

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• Marketing orientation begins at the top level of
  planning. A marketing orientation is a customer
  orientation that is embodied in a company's
• missionits very reason for existing for
  example, "Our mission is to provide low-pollution
  cars at a price that customers consider
  affordable and that lets our employees and
  shareholders achieve their personal objectives."
• strategythe concrete actions the company must
  take to achieve its mission for instance, "We
  must master the latest vehicle-emissions
  technology."
• Effective marketing is a company-wide enterprise
  that hinges on a philosophy shared by everyone
  within the organization. And a marketing
  orientation is vital because it helps your
  company achieve its mission.

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The Marketing Process
Needs Wants Demands
Value Cost Satisfaction
Relationship Networks
Exchange Transaction
Products
Golden Rule Its easier to retain an existing
customer than to bring a totally new one
Marketers Prospects
Markets
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• Pay attention to your customers
• The process starts with understanding customers.
• Marketing is a way of understanding and
  satisfying the
• customer.
• Understand what the customer wants. Once
  marketers
• understand these basic drives, they set about
  satisfying the customers' (or target
• market's) needs, wants, and demands.

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• Needs are fundamental requirements, such as food,
  air, water, clothing, and shelter. Beyond the
  purely physical level, people also need
  recreation, education, entertainment, and a place
  within a community or social status.
• Wants are needs that are directed at specific
  objects that might satisfy those needs. For
  instance, you might need food, but for a special
  occasion you may want to have a meal at a
  restaurant rather than preparing your food at
  home.
• Demands arise when people both want a specific
  product and are willing and able to pay for it.
• These needs are essential for life or quality of
  life, and
• marketing per se cannot affect the needs
  themselves. But marketing can influence how those
  needs are fulfilled.

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• stated needs
• real needs
• unstated needs
• delight needs
• secret needs

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Needs,Wants Demands

• Need Basic Human Requirements
• Want Specific Object that satisfies the NEED
• Demand Wants for specific products backed up
  by ability
  willingness to buy them

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• Match company offerings to customer needs
• Customers' needs can be fulfilled in various
  wayssuccessful companies adapt their
• offerings to match their customers' needs.
  Companies can offer the following

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Products(Goods,Services Ideas)

• Product Is anything that can be offered to
  satisfy a need or want
• ProductOfferingSolution

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Value, Cost Satisfaction

• Overall value The consumer's estimate of the
  product overall capacity to satisfy his needs.
  
• Overall Value Benefits / Costs
• Mercedes Vs Chinese products
• Satisfaction Overall Value Perceived Value

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Exchange Transactions

• Four Conditions
• Two parties
• Each has something of value to the other
• Can communicate
• Each party is free to accept or reject exchange

• Transfer is ..

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CASE

• Cost of an avg. sales call 300
• Average no. of sales call to convert a prospect
  to customer
• 4
• 1,200

• Annual customer revenue 5,000
• Avg. no. of loyal years
• 2
• Company profit margin 0.1
• 1,000

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Relationship Networks

• Golden rule It is easier to retain an existing
  customer than to get a new one.
• Relation with who?????
• Ultimate outcome Marketing network

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• Market

Where is the error ?
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Marketers prospects

• Marketer types
• - Creative Marketer
• - Responsive Marketer
• Example
• Customer types
• Potential customer
• Customer

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Company Orientations toward Marketplace

• 1.The Production Concept
• Holds that consumers will favor those products
  that are widely available low in prices.
• They concentrate on
• High production efficiency
• Low cost
• Mass distribution
• Examples Henry Ford,China
• Myopia Not all people prefer cheap products.

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Company Orientations toward Marketplace

• 2.The Product Concept
• Holds that consumers will favor those products
  offer the most quality,performance or innovative
  features.
• They concentrate on
• Making superior products
• Improving them overtime
• Examples Dell,Germany
• Myopia They fall in love with their own Product.

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Company Orientations toward Marketplace

• 3.The Selling/Sales Concept
• Holds that consumers if left alone will
  ordinarily not buy enough of the organizations
  products.
• They concentrate on
• Aggressive selling
• Promotion effort
• Examples The Northern coast
• Myopia They assume that the people will like the
  product they wont bad-mouth it.

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Company Orientations toward Marketplace

• 4.The Marketing Concept
• Holds that the key to achieving the goals of
  the organization is through identifying
  Satisfying the needs wants of target Markets.
• No Myopia Meeting Needs profitably
• They concentrate on

Starting Point
Focus
Means
Ends
Profits through Customers Satisfaction
Target Market
Customer Needs
Integrated Marketing
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4.The Marketing Concept

• Target Market
• Customer Needs
• Can be identified by either Marketers
• 1. Responsive Marketer 2. Creative
  Marketer
• Integrated Marketing Teamwork among all
  departments of the company to satisfy the
  customer.
• Profits through Customers Satisfaction

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Company Orientations toward Marketplace

• 5.The Societal Marketing Concept
• Holds that the organizations task is to
  determine the needs,wants interests of target
  Market deliver the desired satisfactions more
  effectively than competitors in a way that
  preserves or enhances the consumers the
  societys well being.
• They concentrate on Building Social Ethical
  Considerations into their Marketing practices
• Example

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Difference between Marketing Sales
Selling
Starting Point
Focus
Means
Ends
Selling Promoting
Profits through sales volume
Factory
Products
Make-Sell Philosophy Right Customers for your
Product
Marketing
Profits through Customers Satisfaction
Target Market
Customer Needs
Integrated Marketing
Sense-Respond Philosophy Right Customers for your
Product
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Difference between Marketing Sales
Decision Making
Sales
Marketing
Customers Front Line People Middle
Management Top Management
Top Management Middle Management Front Line
People Customers
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Marketing Plan Process
Defining Target market Needs, wants Demands
Marketing Mix 4 Ps
Market research
Segmentation
Targeting
Positioning
Product
Price
Promotions
Place
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Strategic Marketing

• Segmentation
• Targeting
• Positioning

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Segmentation

• A process of subdividing the market into
  distinct subsets of customers that behave in the
  same way or have similar needs.

Before Segmentation
After Segmentation



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Segmentation
Geographic
Demographic
Psychographic
Behavioral

• Occasions
• Attitude toward product
• Loyalty status
• Usage rate
• User status

• Country
• City
• Climate
• Density
• Region

• Age
• Nationality
• Religion
• Education
• Occupation
• Gender
• Social Class

• Lifestyle
• Personality

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Targeting

• The act of evaluating Comparing the
  identified groups and selecting one or more of
  them as the prospects

Before Targeting
After Targeting






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Differentiation Positioning

• Differentiating The act of designing a set
  of meaningful differences to distinguish
  the companys offerings from competitors
  offerings through differentiating the PRICE or
• Product (McDonalds,Cadillac)
• Service (Pizzas war)
• Personnel (A good Salesman)
• Channel (Chipsys war)
• Image (Azhar,Emirates Airlines)

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What do you think of the Video?

• Segmentation
• Targeting
• Differentiation Positioning

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References

• Mini MBA course, Knowledge Academy, 2005
• Presentation skills, Logic, 2004

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Segmentation

• A Process of subdividing the market into distinct
  subsets of customers that behave in the same way
  or have similar need.

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Levels of Market Segmentation

• Massive Marketing
• Segment Marketing
• Niche Marketing
• Individual Marketing

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Targeting

• The act of evaluating and comparing the
  identified groups and then selecting one or more
  of them as prospects.

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Selecting the Market Segments
Product Specialization
Market Specialization
Full Market Coverage
Selective Specialization
                    
M3
M2
M1
M3
M2
M1
M3
M2
M1
M3
M2
M1
P1
P1
P1
P1
P2
P2
P2
P2
P3
P3
P3
P3
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Differentiation

• The act of designing a set of meaningful
  differences to distinguish the company's
  offerings from competitor's offerings.

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Tools for competitive differentiation
Product
Service

• Features
• Performance Quality
• Durability
• Reliability
• Style
• Design
• Reparability

• Ordering ease
• Delivery
• Installation
• Customer Training
• Customer Consulting
• Maintenance Repair
• Miscellaneous Services

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Tools for competitive Differentiation
Personnel
Channel
Image

• Competence
• Friendly
• Credibility
• Reliability
• Responsiveness
• Communication

• Coverage
• Performance

• Identity Vs Image
• Symbols
• Written audiovisual Media
• Atmosphere
• Events

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Positioning

• The act of designing the companys offering
  image so that they occupy a meaningful distinct
  competitive position in the target customers
  mind
• Emirates Vs Al-Arabia

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The Palm

• Position of
• Dubai
• Financial centre, The most prestigious square Km
  on the face of the earth.
• Largest Park
• Tallest tower

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Marketing Plan Process
Defining Target market Needs, wants Demands
Marketing Mix 4 Ps
Market research
Segmentation
Targeting
Positioning
Product
Price
Promotions
Place
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Marketing Mix

• 4 Ps 4 Cs
• Product Customer Solution
• Price Customer Cost
• Place Convenience
• Promotion Communication

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Whats a Product?

• Is anything that can be afford to a market to
  satisfy a want or a need .

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Five Product Levels
Potential Product
Augmented Product
Expected Product
Basic Product
Core Benefit
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Product Mix

• The set of all products items that a seller
  offers for sale to buyers
• It has a certain Width , Length Depth
• WidthDifferent product lines
• Lengthtotal number of items in the mix
• DepthVarieties Shapes of each Product

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Product Mix
Product Mix Width
Detergents
Toothpaste
Bar soap
Diapers
Tissues
Pampers Luvs
Puffs Summit Banner
Tide Arial Ivory snow Era
Crest Gleem
Camay Lava Ivory
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Branding

• Brand is a name, term, sign, symbol or design or
  a combination of all that, intended to identify
  differentiating goods services of a seller from
  those of competitors.

Five levels of customer attitude towards their
brand
Customer will change for price (no loyalty)
Satisfied No reason to change
Satisfied would incur costs by changing
Values the brand sees it as A Friend
Devoted to The Brand
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Packaging

• Includes the activities of designing producing
  the container or the wrapper for the product.

Cheetos
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Product life cycle
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Soft drink war

• Coca Slogan vs Pepsis

• Coca manager quote
• We dont compete with Pepsi only, We arent a
  cola company only

• Al-Ahram company and recognizing a new
  segment.

• Fayrouz slogan

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Time
Introduction
Growth
Maturity
Decline
Low
Rising
Peak
Declining
Sales
1- Characteristics Objectives
Costs Consumer
High
Average
Low
Low
Negative
Rising
High
Declining
Profits
Early adopters
Middle Majority
Innovators
Laggards
Customer
Stable number
Few
Growing
Declining
Competitor
Product awareness
Reduce Expenditure
Max Market share
Max Profit
Objectives
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Time
Introduction
Growth
Maturity
Decline
Offer a basic product
Offer extensions services
Product
Phase out weak items
Diversify brands models
Penetrating price
Matching best competitors
Cost plus
Price
Cut price
Selective Distribution
Intensive Distribution
More intensive distribution
Phase out unprofitable outlets
Place
Build awareness-Early adopters
Brand differences benefits
Build awareness-Mass market
Advertising
Reduce
Reduce to take adv. of heavy demand
Increase to encourage
Sales Promotion
Reduce to minimal level
Heavy
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Place Distribution

• A distribution channel consists of the group of
  individuals establishments which enter in the
  process of transferring the products/service from
  the original manufacturer to the end consumer.

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Distribution Channel types levels
Consumer
Zero Level Channel (direct marketing)
One level Channel
Retailer
Two Level Channel
Manufacturer
Retailer
Wholesaler
Two Level Channel
Agents
Wholesaler
Retailer
Two Level Channel
Agents
Retailer
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Push/Pull strategy
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Its time to work !!!!!!
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References

• Mini MBA course, Knowledge Academy, 2005
• Communication skills
• Logic Handouts , 2004
• Zedny, HDP , 2005