Introduction ProblemtoSolving marketing concepts Rules of the Game Take notes Keep your time Workshop Rules Stay involve d Turn off your mobile phone Learning methods Lets’ communicate and get Your Expectations What you’ll learn... What is marketing? Marketing What does it involve? What is the marketing mix? Module 1 About Marketing Marketing in the 21 century WHY What is marketing? • Marketing… – is not ADVERTISING – is not SELLING – is not PROMOTION • “The aim of marketing is to make selling unnecessary.” Peter Drucker (1973) What is marketing? • Businesses need to sell products if they are to achieve their objectives. • Marketing is about ensuring that businesses can sell as many products as possible in order to make profits. What does it involve? • Marketing is a very complex concept. • It involves: – Research – Product design – Setting prices – Making sure the customer knows about products – Choosing how and where to sell products Why is it needed? • Each year millions of new products are launched: Without careful marketing these products would fail “Marketing is the science and art of exploring, creating and delivering value to satisfy the needs and wants of a target market maintaining loyalty at a profit.” Professor Philip Kotler Needs Eat, Dress, Move Wants Cheeseburger, Tuxedo, Car Marketer This Is Demand Wants Buying Power “Demand” First Task: Detect Needs Marketing’s first task: discovering consumer needs Organization’s marketing department Discover consumer needs Information about needs Potential consumers: The market What is a Market? Potential consumers make up a market, which is: 1. People 2. with the Desire and 3. with the Ability to Buy a specific product. Marketing’s Second Task: Satisfying Consumer Needs Organization’s marketing department Concepts for products Discover consumer needs Information about needs Satisfy consumer needs Find the right combination of: • Product • Price • Promotion • Place Goods, services, ideas Potential consumers: The market The Target Market Because the organization obviously can’t satisfy all consumer needs, it must concentrate its efforts on certain needs of a specific group of potential consumers. This is the target market -- one or more specific groups of potential consumers toward which an organization directs its marketing program. Customer Development Suspects First-time Repeat Prospects customers customers Disqualified prospects Clients Advocates Partners Inactive or ex-customers Marketing Vs Sales Is there a difference? The Marketing concept Organizations must concentrate on the customer and not the product or the company. Organizations should revolve round the customer and not the other way around. The purpose of a business is to create and keep a customer The selling concept Focuses on matching your product or service features and benefits in a way that suits the prospect. sales process is any thing that you do to close the sale and get signed agreement or contract. It is ant thing that engages you with the prospect or customer on a personal level rather than at a distance. The major role of marketing and selling People DO NOT buy products people buy Module 2 Marketing Management Building Customer Relationships Relationship Marketing Relationship marketing is linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. Mutual long-term benefits between the organization and its customers require links to other vital stakeholders-- including suppliers, employees, and “partners” such as wholesalers or retailers in a manufacturer’s channel of distribution. How Marketing became so important? Four different orientations in the history of North American business Production era Sales era Marketing concept era SocietalMarketing era 18601880 190019201940 196019802000 The Marketing Mix • The tools available to a business to gain the • • reaction it is seeking from its target market in relation to its marketing objectives 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment Traditional 4Ps extended to cope with today's changing environment The Marketing Mix Product Product • The firm must come up with a product or service that people will want to buy. • It must fulfil some need or want. • It must be (or at least seem) unique. Product • Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g. – Extension strategies – Specialised versions – New editions – Improvements – real or otherwise! – Changed packaging – Technology, etc. Image copyright: www.freeimages.co.uk Activity 1 Product • Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g. – Extension strategies – Specialised versions – New editions – Improvements – real or otherwise! – Changed packaging – Technology, etc. Image copyright: www.freeimages.co.uk Product or service or brand BMW Core Product Freedom to travel Sheraton Flight Zamalek Football Club Excitement and leisure ALICO Room service An airline journey T-shirts – photos with players Insurance policy Cooling Augmented Product A motor car Rooms Egypt Air UNIONAIR Actual Product Finance Warranty Price Price • The price must be one that • Pricing Strategy - International – Comparative – Cost plus the customer thinks is good value for money. • This is not the same as being cheap! • Prices have a great psychological effect on customers. Price • Pricing Strategy • Importance of: – knowing the market – elasticity – keeping an eye on rivals Image copyright: www.freeimages.co.uk Promotion Promotion • Strategies • to make the consumer aware of the existence of a product or service NOT just advertising The promotional message should Grab Attention Stimulate Create Interest Desire Promote Action Place Place • The means by which products and services get from producer to consumer and where they can be accessed by the consumer – The more places to buy the product and the easier it is made to buy it, the better for the business (and the consumer?) People People • People represent the business – The image they present can be important – First contact often human – what is the lasting image they provide to the customer? – Extent of training and knowledge of the product/service concerned – Do staff represent the desired culture of the business? People • People represent the business – The image they present can be important – First contact often human – what is the lasting image they provide to the customer? – Extent of training and knowledge of the product/service concerned – Mission statement – how relevant? – Do staff represent the desired culture of the business? People • People represent the business – The image they present can be important – First contact often human – what is the lasting image they provide to the customer? – Extent of training and knowledge of the product/service concerned – Mission statement – how relevant? – Do staff represent the desired culture of the business? Process Process • How do people consume services? • What processes do they have to go through • to acquire the services? Where do they find the availability of the service? – – – – – – Contact Reminders Registration Subscription Form filling Degree of technology Physical Environment Physical Environment • • • • • • • • • The ambience, mood or physical presentation of the environment Packaging. Internet/web pages. Paperwork (such as invoices, tickets,…..). Brochures. Furnishings. Uniforms. Business cards. The building itself (such as prestigious offices or scenic headquarters). • Mailboxes and many others . . . . . . Physical Environment • The ambience, mood or physical presentation of the environment – – – – – – – Smart/shabby? Trendy/retro/modern/old fashioned? Light/dark/bright/subdued? Romantic/chic/loud? Clean/dirty/unkempt/neat? Music? Smell? Stages in Consumer Decision WordProcess of- Mouth Awareness Advertising Interest Channel Decision Product / Service Action Price Satisfaction The Marketing Mix • • • • • • • • • Blend of the mix depends upon: Marketing objectives Type of product Target market Market structure Rivals’ behaviour Global issues – culture/religion, etc. Marketing position Product portfolio – Product lifecycle – Boston Matrix Marketing Model Target Market Aware Intention to Purchase Understand Believe Above the Line Below the Line Point of Purchase Experience Behavior Want Find Buy Revenue Use Value Prefe r Loyal Module 3 Marketing Management Philosophies Production Sales Competing Philosophies Market Societal Marketing Marketing Management Philosophies Philosophy • Production Sales Market Societal Key Ideas Focus on efficiency of internal operations Focus on aggressive techniques for overcoming customer resistance Focus on satisfying customer needs and wants Focus on satisfying customer needs and wants while enhancing individual and societal well-being The Marketing Concept Focus on Customer Wants and Needs Integrate Organization’s Activities to Satisfy Customer Needs and Wants Achieve Organization’s Long Term Goals by Satisfying Customer Wants and Needs Comparing Sales and Market Orientations Organization’s Focus Sales Orientation Market Orientation Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Inward Selling goods Everybody Maximum Primarily promotion and services sales volume Outward Satisfying wants and needs Specific Customer groups of people satisfaction Coordinated use of all marketing activities Developing Competitive Advantage Competitive Advantage Customer Value Customer Satisfaction Customer Relationships Value and Satisfaction Expectation 8 Performance 10 Expectation Performance 10 8 If performance is lower than expectations, satisfaction is low. If performance is higher than expectations, satisfaction is high. Why so many products fail in Egypt?