Marketing I

1. Marketing I Ass. Prof. Dr. Özgür KÖKALAN İstanbul Sabahattin Zaim University

2. Chapter Objectives • Identifytheconcept of marketing • Explain marketing planningand marketing reserach • Identify the twobasic market, sellers market andbuyers market • Identifythetwobasicbuyers; consumers, andbusiness (B2B) buyers • Explainwhat marketing mix is

3. What Is Marketing? All activities directed toward identifying and satisfying customer needs and wantsthrough a process of exchange. Otherdefinition, The process of planning and executing the conception,pricing,promotion and distribution of ideas, goods and services to create exchangesthat satisfy individual and organizational objectives

4. The selling concept starts with the existing products in the factory andcalls for heavy selling and promotional efforts to accomplish profitable sales. Inthatsense the selling concept has an inside-out perspective. • Marketingconcept has outside-in perspectives. It begins with aclearly-defined market. It focuses on the customer needs, coordinates all marketing activities (product and service creation, distribution, pricing, promotion)to obtain profits by establishing long-term customer relationships based on theirvalueand satisfaction.

5. Marketing Planning • Marketing planning involves implementing the planning activities to achieve the marketing objectives. Product mixes or lines, distributionchannels, pricing decisions, promotional activities will be formulated based onmarketing planning.

6. Marketing Research • Marketing research involves collecting and using information for makingmarketing decisions. • Marketingresearch can reduce the risks and uncertainty to increase thepossibility of success of marketing decisions. Therefore, research is very essential for the marketing managers who make the final marketing decisions..

7. Marketing ResearchProcess 1. Definingthe research objectives. In this stage, the marketing manager and the researchers work together to define the purpose of thestudy. 2.Developing the research plan.Thisplan outlines the sources of information, research approaches, contactmethodsand necessary instruments to be used to gather information. 3.Identifying the information. In this step,researchers gather secondary and primary data to be utilized in marketing. 4. Implementationstage of the marketingresearch process

8. Markets • Market is a place where people or organizations with sufficient purchasing power, authority and willingnessto buy and sell meet. • There must be a buyerand a seller in the marketplace. Both of them should bewilling to buy and sella specific product.

9. A market with product shortages is called a seller’s market. In this type of market products supplied are less than the demand in themarket and that gives the sellers theability to setprices that enable them to get higher incomes. • In a buyer’s market there isan adequate or excess number of supplies and products that enable the customers to choose among the variety ofproducts with competitive prices.

10. Buyers • Markets can be classified as consumer or businessmarkets. • Consumer Market: aconsumer market is a market made up by all individuals and householdswho purchase goods and services for their personal consumption. • Business Market (B2B); Business markets are those markets for products and services that arepurchased by all types of organizations for use in manufacturing process, forresale or renting to others at a profit, and for consumption

11. Consumer Market Segmentation • Consumer product markets can be segmented based on the characteristics of the individuals, groups or organizations. • To segment the consumer product markets, managers use thefollowing characteristics. • Geographic segmentation refers to segmenting markets by region of the country or world. • Demographic segmentation is the division of consumer markets according to demographic variables suchasage, gender, ethnic background, income.

12. Psychographics segmentation is another method tosegment the consumer markets based on the characteristics such as personality, motive, lifestyle. • Geo-demographic segmentation is a multivariablesegmentation that clusters consumers based on the neighborhood lifestyle categories. It combines geographic,demographic and psychographics segmentations. • Usage rate segmentation divides the consumer markets based on the frequency and amount of products bought or consumed such as nonuser, formeruser, potential user, heavy user. • Benefit segmentation is the method of dividing the markets based on thebenefits customers seek from the product such as nutrition, health, good taste,economical, weight loser.

13. Consumer Behaviour • Consumer behavior relates to the actions an individual takes in purchasing and using products and services. • Therearemanyfactorsaffectingconsumerbehaviour. Theseare: • Motivationand personality, perception, learning,values, beliefs, attitudes and lifestyle are very useful forunderstanding the buying process. These concepts are some of the psychological factors that influence the behavior of the consumer • Socio-culturalfactors. • Other people’s opinions and views • Family • Socialclass

14. Consumer PurchasingDecisionProcess • Consumers are involved in a step-by-step process to make their purchasing decisions. • The length of time and amount of effort they devote in the purchasing process is dependent on theimportanceof the desired goods andservices. • Allconsumerspass through asimilar six-step purchasing decision process in every purchasing action. • But Ifyou buy a productorservicesfrequently, you can passmost of thesteps

15. PurchasingDecisionProcess • Thesteps are as follows: • 1.Problem or opportunity recognition: In the first step, a consumer recognizes a problem or need for a product or service. • 2.Search: The consumer gathers information related to the attainment of adesired state or product and service needed. • 3.Evaluating the alternatives: The consumer evaluates the alternativesbased on the findings reached during the search process. In this stage, the consumershould develop a set of evaluative criteria to guide selection.

16. 4. Purchase decision: After evaluating each alternative, a consumer makesa decision for the purchase. The store, brand, facilities will be determined basedon the personal evaluative criteria. • 5.Purchase act: After the eventual purchase decision, the consumermakes the act of purchasing. • 6.Post-purchase evaluation: In this stage, the buyer feels satisfaction ordissatisfaction with the purchase determined by the product or the servicemeeting his expectations.

17. Business (B2B) Markets • Business markets are those markets for products and services that arepurchased by all types oforganizations for use in manufacturing process, forresale or renting to others at a profit, and forconsumption. • They consider andare involved in all non-retail and non-consumer goods sales. • Consumer goodsare sold to individuals but business market customers are organizations such asbusiness firms, governments and institutions.

18. Business BuyersBehaviour • Recognitionof a problem or need and a general solution, 2.Determination of characteristics and quantity of needed item, 3.Description of characteristics and quantity of needed item, 4.Search for and qualification of potential sources, 5.Acquisition and analysis of proposals, 6.Evaluation of proposals and selection of supplier, 7.Selection of order routine, 8.Performance feedback and evaluation.

19. Marketing Mix • Amarketing mix that blends thefour important marketing elements product, pricing, promotion and distribution to fit the needs and preferences of thetarget market. • It is alsocalled as 4p’s • Product • Price • Place (Distribution) • Promotion • A particular combination of these elements best fits thetarget market needs determines the marketing success of theorganizations.