Chapter 16 – The Market and Marketing

1. Chapter 16 – The Market and Marketing Unit 3 - Marketing

2. You will learn ……… • The meaning of “market” & “marketing” • The objectives marketing • Product-Orientated & Market-Orientated business • Market Segmentation • The Marketing Mix (4 P’s)

3. What is a market?

4. What is a market? • A market is where buyersand sellers come together to exchangeproductsfor money.

5. Market - Buyers & Sellers

6. Question Time??? Name another product that has a large market?

7. Question Time??? • Name a Thai product that does not have a large market? • Why is it not sold to many people?

8. What is a product? goods services

9. What is a product? good service

10. Product-Orientated Businesses • Produce product then find the market • Basic necessities for required for living • Concerns • Price • Quality

11. Market-Orientated Businesses • Identify wants and desires of consumers • Now • Future • Aim • Produce the right goods • Sell • Profit

12. Market-Orientated Businesses • Advantages • Survival • Successful • Prepared for changes in customer tastes • New market opportunities • More confidence in launching new products

13. What is Marketing? • Selling • Advertising • Promotion • Product Development • Consumer Tastes • Packaging • Pricing • Place

14. Question Time??? • Joshua invents a new tool for planting seeds. It is much easier to use than existing tools. However, it has high production costs, twice as much as existing tools. • Product or Market Orientated? • What advise would you give to Joshua before manufacturing the new tool?

15. … to find current consumer requirements … to predict future consumer requirements The Function of Marketing … to help to make profits to the business … to satisfy consumer needs

16. The Marketing Department

17. Which department? • Anya spends most of her time in other countries showing the product to people who buy stock for large retail groups

18. Which department? • Mohamed spends his time arranging for adverts of the product to be placed in newspapers and magazines

19. Which department? • Paul spends most of his time producing new products.

20. Which department? • Paul spends most of his time producing new products.

21. Which department? • Mary organises the airline flights for the products to be sent to their markets abroad.

22. To increase sales revenue and profit To increase or maintain market share Objectives of Marketing To develop new products or improve existing products To target a new market or market segment To maintain or improve the image of products or business

23. Sales Revenue v’s Profit • Profit = Sales Revenue – Costs • E.g. • 400 = 800 - 400 • Sales Revenue is money received by a business • E.g. • 800 baht 800 baht

24. Market Share http://www.sefanatics.com/Kuvat/other/market_share.png

25. Market Share Market Share     Firm's Sales  /  Total Market Sales http://www.sefanatics.com/Kuvat/other/market_share.png

26. Case Study Example A fizzy drinks manufacturer has 60% of the market and wants to expand its operation and increase its share in the market still further.

27. Case Study Example Pepsi has been trying to increase their market share against Coca-Cola. To do this their advertising has focused on young people.

28. Case Study Example A chocolate bar manufacturer, well-known for its original advertisement with cartoon characters aimed at children.

29. SWOT Analysis Strengths Weaknesses Opportunities Threats

30. SWOT Analysis Strengths Weaknesses Internal Opportunities Threats External

31. SWOT Analysis Helpful Harmful Strengths Weaknesses Opportunities Threats

32. SWOT Analysis Helpful Harmful Strengths Weaknesses Internal Opportunities Threats External

33. Customers… • Knowing your customers is a vital tool in running a successful business…

34. Market Segmentation Segment C Segment B Segment E Segment D Segment F Segment A

35. Market Segmentation Income

36. Market Segmentation Age

37. Market Segmentation Region

38. Market Segmentation Gender

39. Market Segmentation Use of Product

40. Market Segmentation Lifestyle

41. Market Segmentation Region Gender Lifestyle Age Use of Product Income

42. Multiple Segments in the Market for Soap

43. Spanish villa So which market segment customer would buy these? • Income • Age • Region • Gender • Use of Product • Lifestyle • Social class

44. Market Segmentation inSocial Groups • A Higher managerial, administrative or professional • B Intermediate managerial, administrative and professional • C1 Supervisory, clerical, junior administrative or professional • C2 Skilled manual workers • D Semi and unskilled manual workers • E Casual labourers, state pensioners & unemployed

45. Why is it important to understand ALL your customers? • The benefits they want (service or extras) • The amount they are able to or willing to pay • Media (e.g. television, newspapers, and magazines) they see – to target your advertising at them. • The quantities they buy – and what special offers catch their interest. • The time and place that they buy

46. Market Identification by Segmentation • Segment identified • Price • Quantity • Packaging • Advertisements • Time • Location • Increase Sales to Increase Profit

47. Marketing MixThe Four P’s of Marketing

48. Gap in the market • an opportunity in a market where no supplier provides a product or service that buyers need