Marketing Anesh Maniraj Singh
Business Game • What Marketing mistakes did you make in this exercise? • Describe your target market for the product/service you were selling? • What approach did you take towards your market?
Business Game • How would you describe your target market in terms of their behavioural characteristics? • What did your group do to ensure the success of your product/service?
What is marketing?
Business Functions Finance Marketing Information Production Organisation Systems Human Resources
Marketing Activities Marketing Customer Advertising Sales Research Service
Marketing - Definition Marketing is the art of determining the customers wants and needs, and developing satisfaction in the form of products and services, whilst making a profit. Philip Kotler
The Marketing Equation + = Need Need Profit Identification Satisfaction
How do people acquire products? • Subsistence • Force • Sympathy • Exchange
Markets and Industries • A Market refers to – Groups of people – Willing and able to exchange money – Buy goods and services • An Industry refers to – Groups of businesses – Willing and able to sell goods and services – In exchange for money
Approaches to the Market Needs of the Seller Needs of the Buyer • Production approach • Marketing approach • Product approach • Societal marketing • Selling approach • Relationship marketing • Electronic marketing • Social network marketing Holistic Approach
Understanding Your Customer
Homework • What is market research? Is it different from marketing research? • Is Market research necessary? Explain. • If you had a limited budget, would you be able to conduct market research for a small entrepreneur? If yes, what would you do? Explain.
Definitions • Research – Is a systematic search and analysis of facts with the purpose of solving a problem or to get a clearer understanding of a situation • Market Research – Involves research of markets, market segments, competition – Examines potential markets and products • Marketing Research – Involves research of marketing activities – Examines existing markets and products
Common Research Mistakes • Poor definition of what information is needed • The wrong technique/approach is used • Data is misinterpreted
The Marketing Research Process Develop Collect Analyse Present Define the Decision the the the the Problem Implement Plan Data Data Findings
Marketing Consumer Behaviour
Homework • What is consumer behaviour? • Why would a business be interested in understanding its consumers behaviour? • What does your organisation know about its consumers?
Definition • Consumer Behavior is the study of – The mental and social processes and actions a consumer takes preceding and following the purchase and use of products and services • Seeks to answer – Who? – Where? – When? – Why? – How much?
Factors that Affect Consumer Behavior Cultural Factors • Religious beliefs, values, norms Socio-cultural Factors • Relationships with others Psychological Factors • Personality, perception, motivation Personal Factors • Age, family size, affordability Marketing Mix Factors • Product, Price, Place, Promotion
Psychological Factors Self Actualisation Needs Esteem Needs Social Needs Safety Needs Physiological Needs
Exercise • Can the following companies use use the Maslow’s hierarchy of needs to determine the product/service ranges they sell? Explain. – Game Stores – Netcare Group – SAA – KFC – Spur – Standard Bank
Buying Decision Process Evaluation Post Need Information Of Purchase Purchase Recognition Search Alternatives Behavior
Marketing The Marketing Mix
The Marketing Mix Product Price Target Market Promotion Place
Marketing Mix Product
Anatomy of a Product Augmented Expected Generic Core Benefit
Product Life Cycle Sales Introduction Growth Maturity Decline Time
Why do new products fail? • Poor quality • Poor advertising and support • Doesn’t match claims • High production costs • Poor timing of launch • Not meeting the needs of consumers
Marketing Branding
What is a Brand? • A name, symbol, term or sign that identifies the products of one manufacturer from another • Brands help consumers differentiate between similar products
Why Brand? Differentiation Brand Equity Familiarity Lower marketing Build trust costs Branding Premium price Build loyalty Prevents Barrier to switching competition
Effective Brand Names • Easy to Say • Easy to Spell • Easily remembered • Free of ambiguity/negative connotations • Should not be used by another party • Communicates the product use/benefit
Service
Tangibility Low High tangibility tangibility
What is customer value? • Difference between what a customer gets from a product or service in relation to what he gives to get it. Benefit – Cost = Value • Emotion
Customer Emotions Backup service Low price Information before buying Backup servi Service excellence Quality of product Keep promises Service excel Rectify errors Works first time Courtesy Rectify errors Backup service Low price Information before buying Friendly staff Free bells and whistles Knowledgeable staff Friendly staf Service excellence Quality of product Keep promises Backup service Low price Information before buying tion before buying Rectify errors Works first time Courtesy Service excellence Quality of product Keep promises Keep promises Friendly staff Free bells and whistles Knowledgeable staff Rectify errors Works first time Courtesy Courtesy Friendly staff Free bells and whistles Knowledgeable staff wledgeable staff Backup service Low price Information before buying Service excellence Quality of product Keep promises Rectify errors Works first time Courtesy
Customer Service Value Reliability • Deliver on promises Responsiveness • Deliver on time and provide help Assurance • Inspire confidence and trust Empathy • Attention to customers needs Tangibles • Appearance, paperwork, facilities Adapted from Parasuraman, Zeithaml and Berry
Applying ServQual Reliability Responsivenes Assuranc Empathy Tangibles s e Accurate Adjustments to Years of Remembers that Change room, alterations on customer experience one leg is mirror, packets Tailor time requirements longer Proper advice One client at a time. Trusted Adjusts training Clean, neat, Fitness Information Answers calls Qualified programme muscular Trainer Endorsed UKZN
Marketing Mix PRICE
Pricing Profit Maximise Objectives Sales Market Share Non-Price Status Quo Competition
Basic Principle • Main consideration is Volume Cost cost recovery • Cost Based – cost plus pricing Price
Pricing Strategies • Price Penetration – Intended for products with a long life cycle – Introduction price is low – Gradual increase in price • Price Skimming – Intended for products with short life cycle – Introduction price is very high – Gradual decrease to get rid of stocks • Status Quo Pricing
Pricing Tactics • One Price Policy • Variable Pricing • Flexible Pricing • Odd/Psychological Pricing • Bundle Pricing • Freemium Pricing • Leader Pricing • Bait & Switch Pricing
Marketing Mix PLACE
Importance of Channels Specialisation & Division of Labor Contact Overcoming Efficiency Discrepancies
Distribution Channels M A N C U O Retailer F N A S C U Wholesaler Retailer T M U E R R E Agent Wholesaler Retailer R
Retail Location Market Size Crime Suppliers Location Costs Competitors Parking Visibility Accessibility
Three secrets for success • Location • Location • Location Population 5 million
Marketing Mix Promotion
Promotion Personal Selling Direct Marketing Telesales, Catalogue Sales, Television Shopping, Internet Shopping Publicity Sponsorships, Press Conferences, Consumer Endorsements Sales Promotion Coupons, demonstrations, prizes, loyalty rewards Advertising TV, radio, billboards, newspapers etc.
Advertising • Mass communication Preferred • Relatively cheap means of • It is informative communication • To inform – new products, price changes Objectives of • To persuade – competitive advertising Advertising • To remind – keep product in consumers mind
Five M’s of Advertising Mission Money Media Message Measurement
Modern Media • E-mail Advertising • Website Advertising • Mobile Advertising • Social Network Advertising
Problems with Advertising • It is intrusive • Can be false or grossly exaggerated • It is one way only • Can suffer from non-delivery • May not promote immediate action
Be Careful What You Say!
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