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Basic Marketing Concepts Overview

Basic Marketing Concepts Overview. Marketing Review Modules. Marketing Concepts Customer Needs Industry Competition Target Marketing, Segmentation, and Marketing Research New Product Development and Sales. 1-5. Basic Marketing Concepts. Customer Satisfaction. Total Company Effort.

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Basic Marketing Concepts Overview

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  1. Basic Marketing Concepts Overview

  2. Marketing Review Modules • Marketing Concepts • Customer Needs • Industry Competition • Target Marketing, Segmentation, and Marketing Research • New Product Development and Sales 1-5

  3. Basic Marketing Concepts

  4. Customer Satisfaction Total Company Effort The Marketing Concept Profit The Marketing Concept

  5. From Production Time Form Utility Value that comes from satisfying human needs Place Task Possession From Marketing Utility and Marketing Exhibit 1-1 1-6

  6. Customer Value Costs Benefits • One customer’s views may vary from another customer’s view, so firm may not be able to satisfy everybody • Customer value concept takes the customer’s point of view, but customers may not explicitly weigh costs and benefits

  7. Whole-Company Strategic Management Planning Marketing Planning Adjust Plans As Needed Control Marketing Plan(s) and Program Implement Marketing Plan(s) and Program The Marketing Management Process

  8. Product Place C Price Promotion The Four Ps of the Marketing Mix

  9. Product Place Promotion Price Physical Goods Service Features Quality Level Accessories Installation Instructions Warranty Product Lines Packaging Branding Objectives Channel Type Market Exposure Kinds of Middleman Kinds and Locations of Stores How to Handle Transporting and Storing Service Levels Recruiting Middlemen Managing Channels Objectives Blend Salespeople Kind Number Selection Training Motivation Advertising Targets Kinds of Ads Media Type Copy Thrust Who Prepares? Sales Promotion Publicity Objectives Flexibility Level over PLC Geographic Terms Discounts Allowances Four P’s Strategy Decision Areas

  10. Narrowing down tofocused strategy with screening criteria Customers S. W. O. T. Segmentation & Targeting Product Place Company TargetMarket Differentiation & Positioning Price Promo Competitors External Market Environment Marketing Strategy Planning Process

  11. Strengths Opportunities Strategy Planning Internal Factors External Factors Threats Weaknesses SWOT Analysis 18-5

  12. Target Market Product Place Promotion Price Personal Selling Mass Selling Sales Promotion Advertising Publicity Who will do the work? Copy thrust Media types Target audience Kind of advertising Strategy Planning for Advertising Exhibit 15-1 15-3

  13. Basic Promotion Methods Target Market Product Place Promotion Price Personal Selling Mass Selling Sales Promotion Advertising Publicity Exhibit 13-1 13-3

  14. Target Return Maximize Profits Profit Oriented Dollar or Unit Sales Growth Growth in Market Share Pricing Objectives Sales Oriented Meeting Competition Nonprice Competition Status Quo Oriented Pricing Objectives Exhibit 16-4 16-4

  15. Target Market Product Place Promotion Price Strategy Planning for Price Pricing objectives Price flexibility Price levels over product life cycle Discounts and allowances— to whom and when Geographic term — who pays transportation and how Exhibit 16-1 16-3

  16. Pricing objectives Price of other products in the line Price flexibility Discounts and allowances Demand Price setting Cost Legal environment Geographic pricing terms Competition Key Factors That Influence Price Setting Markup chain in channels Exhibit 17-1 17-3

  17. 50.00 30.00 Markup = 20.00 = 40% 24.00 Markup = 6.00 = 20% Cost = 30.00 = 60% Markup = 2.40 = 10% Cost = 24.00 = 80% Cost = 21.60 = 90% Producer Wholesaler Retailer Markups Exhibit 17-2 17-4

  18. Customer Needs

  19. Marketing Mixes All Other Stimuli Psychological Variables Social Influence Purchase Situation Motivation Perception Learning Attitude Personality/Lifestyle Family Social Class Reference Groups Culture Purchase Reason Time Surroundings Person Making Decision Problem-Solving Process Person Does or Does Not Purchase (Response) A Model of Buyer Behavior Exhibit 5-2 5-5

  20. Personal Needs Social Needs Safety Needs Physiological Needs The PSSP Hierarchy of Needs Exhibit 5-4 5-6

  21. Marketing mixes All other stimuli Psychological Variables Social Influences Purchase Situation Person making decision Need-want Awareness Routinized Response Information Search Feedback of information as attitudes Set Criteria Decide on Solution Purchase Product Postpone Decision Postpurchase Evaluation Response The Consumer Problem Solving Process Exhibit 5-9 5-13

  22. High involvement Infrequently purchased Expensive High risk Much information desired Low involvement Frequently purchased Inexpensive Little risk Little information needed Routinized Response Behavior Limited Problem Solving Extensive Problem Solving Low Involvement High Involvement Involvement Continuum Levels of Problem Solving Exhibit 5-11 5-14

  23. Industry Competition

  24. The Competitive Environment Kinds of Markets Competitor Analysis Key Concepts in the Competitive Environment Competitive Rivals Competitive Barriers Information on Competitors 4-6

  25. Expanded assortment and service Specialty shops and department stores Expanded assortment and/or reduced margins/service Supermarkets, discount houses, mass-merchandisers, supercenters Conven- tional offerings Single- and limited- line stores Added convenience higher margins less assortment Telephone/mail order, vending machines, door-to-door, convenience stores, electronic shopping Expanded assortment reduced margins more information Internet Types of Retailers Exhibit 12-1 12-4

  26. Does wholesaler own the products? Yes (merchant wholesaler) No (agent middleman) How many functions does the wholesaler provide? Agent middlemen Some functions Limited-function merchant Wholesalers All the functions Service merchant wholesalers Types of Wholesalers Exhibit 12-5 12-9

  27. Manufacturer or producer Citibank Nissan Del Monte Procter & Gamble Wholesaler Wholesaler Wholesaler Retailer Retailer Retailer Consumer Four Examples of Basic Channels of Distribution for Consumer Products Exhibit 10-2 10-5

  28. Target Marketing, Segmentation & Marketing Research

  29. A. Product-market showing three segments B. Product-market showing six segments Status dimension Status dimension Dependability dimension Dependability dimension Market Segmentation

  30. Information Sources Questions and Answers Decision Maker Results Marketing Models Market Research Studies New Information Answers ? Marketing Manager Decisions Decision Support System (DSS) Inputs Outcomes Internal Data Sources Databases External Data Sources Information Technology Specialists Feedback Marketing Information Systems Exhibit 7-1 7-3

  31. Early Identification of Solution Defining the Problem Analyzing the Situation Getting Problem- Specific Data Inter- preting Data Solving the Problem Feedback to Previous Steps Marketing Research Process Exhibit 7-2 7-4

  32. Inside Company Secondary Data Sources Outside Company All Data Sources Observation Primary Data Sources Questioning Sources of Data Exhibit 7-3 7-5

  33. Product Development

  34. Innovators (3-5%) Early Adopters (10-15%) Early Majority (34%) Late Majority (34%) Laggards/ Nonadopters (5-16%) 90 Percent Adoption 50 20 5 0 The Adoption Curve Exhibit 13-7 Time 13-14

  35. The Adoption Curve • Innovators: • First to Adopt, Eager to Try • Young, Well-Educated, Mobile • Seek Info from non-salesperson Sources • Early Adopters • Opinion Leaders • Greater Contact with Salespeople • Word-of-Mouth

  36. The Adoption Curve • Early Majority: • Avoid Risk, Try Only if Others Have Usually are Not Opinion Leaders • Late Majority: • Cautious About New Ideas, Older and More Set in Their Ways • More Subject to Peer Pressure

  37. The Adoption Curve • Laggards: • Suspicious of New Ideas • Do Things the Way that They Have Always Been Done

  38. Market Introduction Market Growth Market Maturity Sales Decline Total Industry Sales + Total Industry Profit $ 0 Time – The Product Life Cycle Exhibit 9-1 9-3

  39. Target Market Product Place Promotion Price Product Idea Brand Package Warranty Physical good/service Features Quality level Accessories Installation Instructions Product line Type of Brand: Individual or family Manufacturer or dealer Protection, Promotion, or both None, full, or limited Defining “Product” Exhibit 8-1 8-3

  40. Modes of Transportation Truck Rail Air Pipeline Water The Transporting Function

  41. Producer’s Promotion Blend Personal Selling, Sales Promotion, Advertising, Publicity Wholesaler Promotion Push Wholesaler Promotion Push Promotion to Channel Members Retailer Promotion Push Promotion to Business Customers Promotion to Final Customers Business Customer Pull Final Consumer Pull Push-Pull Strategies Exhibit 13-6 13-13

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