Marketing Management MNM202-Y MND203-S

1. Marketing Management MNM202-Y MND203-S

2. The nature of marketing Marketing is the process of planning and executing the conception, pricing, marketing communication and distribution of ideas, products, and services to create exchanges that satisfy individual and organisational goals. Marketing is about satisfying needs

3. The concept of exchange People give up something to receive something they would rather have • Conditions that must be met for exchange to take place: • At least two parties • Each party must have something of value to the other • Parties must be able to communicate and deliver • Parties must be free to accept or reject the offer • Each party must want to deal with the other

4. The marketing “gaps” • Gaps that exist between production and consumption that are bridged by marketing: • Space gap • Time gap • Information gap • Ownership gap • Value

5. Important concepts • Needs and wants and demands • Products • Value • Satisfaction • Market • Intermediaries

6. Orientation towards markets • Production orientation • What can we do best? • Sales orientation • Sell - no matter what • Marketing orientation • Satisfy the consumer profitably by working together • Societal orientation • Do what we do without harming society

7. Satisfy the needs of the consumer and society as a whole, profitably, while working together as an organisation The marketing concept - NB 2 Profitability 1 Consumer satisfaction Organisational integration Social responsibility 4 3

8. Relationship marketing • A broader view of the market (long term) • Expansion of the marketing offering (6p’s) • A bigger market

9. The marketing process (Fig 1.3)

10. The marketing environment

11. Marketing research Process of designing, gathering, analysing and reporting information that may be used to solve a specific marketing issue • Questions to answer: • Who is the market? • How do we segment the market? • What are the wants and needs of the market? • How do we measure the market? • Who are our competitors? • Which model of the product will best suit the market? • What is the best price? • How will we communicate with the customers?

12. The marketing information system A system for generating and managing a flow of information for marketing decision making • Components: • Internal reporting sub-system • Marketing intelligence sub-system • Statistical sub-system • Marketing research sub-system

13. The marketing research process

14. Data sources

15. Sampling methods • Probability sampling: • Simple random sampling • Stratified random sampling • Cluster sampling • Non-probability sampling • Convenience sampling • Judgment sampling

16. Market potential vs Sales potential Market potential: The maximum possible sales of a specific product in a specific market over a specific period of time for all sellers in the industry. Sales potential: The upper limit of sales that a firm could possibly reach for a specific product in a specific market over a specific time period.

17. Market potential and sales forecasting • Levels of market measurement: • Consumer level • Product level • Geographic level • Time level • Relevant markets for measurement: • Total market • Available market • Target market • Penetrated market

18. Market potential and sales forecasting • Methods for estimating market and sales potential: • Breakdown methods • Build up methods Market forecast: An estimate of the expected sales of a specific product in a specific market over a specific time for all sellers in the industry Sales forecast: An estimate of the number of units a firm expects to sell of a specific product in a specific market over a specific time

19. Forecasting methods • Sales force surveys • Expert surveys • Time series analysis

20. Consumer behaviour • Types of purchase decisions: • Complex purchase decisions • Dissonance reducing behaviour • Habitual purchasing behaviour • Variety-seeking purchase behaviour • Routine decision making • Impulsive decision making

21. Consumer behaviour

22. Individual Factors Perception Motivation • Things to remember: • Definition • Sensory stimuli • Perceptual defence mechanisms • Things to remember: • Definition • Levels of motives • Maslow’s hierarchy of needs Personality Lifestyle • Things to remember: • Definition • Examples (pg 145) • Things to remember: • Definition • AIO Attitude Learning ability • Things to remember: • Definition • Characteristics of attitudes (pg 144) • Things to remember: • Definition • Motivation, attention, repetition

23. Group Factors Family Culture Reference groups Opinion leaders • Things to remember: • Definition • Refer to diffusion process • Things to remember: • Definition • Sub-cultures • Things to remember: • Definition • Phases of family life-cycle • Role differentiation in families • Things to remember: • Definition • Types of groups • Ways in which groups affect consumers

24. Market segmentation, targeting and positioning Market segmentation: The process of dividing a heterogeneous market in to homogeneous segments Market targeting: The process of deciding which segment to pursue Product positioning: The way customers perceive products relative to the competition

25. Segmentation Why segment? Why not segment? Prerequisites for market segmentation also known as criteria for a segment to be effective: • Measurable • Large enough • Accessible • Actionable • Differentiable

26. Bases for segmentation • Geographic • Demographic • Psychographic • Behavioural

27. Market targeting • Concentrated targeting (one segment) • Differentiated targeting (a few segments) • Undifferentiated targeting (all segments)

28. Product positioning

29. Positioning methods • Attribute positioning • Benefit positioning • Use/application positioning • User positioning • Competitor positioning • Product category positioning • Quality/price positioning

30. Chapter Six – Integrate it all Product Promotion Price Place