Lecture 07
emad@iqraisb.edu.pk
Marketing.
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Working Definition of the concept >
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The process of determining customer wants and
needs and
then providing customers with goods and services
that meet or
exceed their expectations.
Marketing can be considered to have three parts >
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Customer orientation,
Service orientation,
Profit orientation.
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In other words, market those goods and
services that will earn the firm a profit and
enable it to survive and expand to serve more
customer needs and wants.
Marketing is essential to modern
organisations.
Users of marketing include profit and nonprofit businesses as well as states, charities,
churches, politicians and schools.
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The Marketing Mix consists of the four P's.
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Product,
Price,
Place,
Promote.
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In other words, the main idea is to design a
product that people want,
price it competitively,
place it in a location where consumers can find
it easily and
promote it so that consumers know it exists.
Marketing Research
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This is the analysis of markets to determine
opportunities and challenges and to find the
information needed to make good decisions.
Consists of a number of steps
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1) Define the problem and present the best
situation.
2) Collect data.
3) Analyse the research data.
4) Choose the best solution.
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Environmental scanning is the process of
identifying the factors that can affect
marketing success.
Marketers pay attention to all the
environmental factors that create
opportunities and threats.
Environmental trends.
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The most important global and technological
change is the advent and growth of the
internet.
A purely technological change is the growth of
consumer databases.
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These enable companies to develop services
that closely match the needs of consumers.
Purpose of all this analysis?
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To stay current with certain social trends.
Social trends are dynamic and fluctuating.
Include things like
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population growth,
population distribution,
other demographics (?)
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This is in addition to monitoring the
competitive environment as well as the
general economic environment.
Environmental scanning then provides a
means to stay connected to the latest events
and occurrences in societal changes.
Why is the above necessary?
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(hint....what is the purpose of the latest
technology and what is a side effect of its
usage)?
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How does marketing meet the needs of the
consumer?
Through a variety of techniques. Examples
include >
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Market segmentation,
Relationship marketing and
Consumer behaviour.
Various approaches (orientations) to
marketing.
Market Segmentation.
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Can consist of one or more of the following types of segmentation >
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Geographic segmentation:
• Dividing the market on the basis of location.
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Demographic segmentation,
• Segmentation by age, income and education level
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Psychographic segmentation,
• On the basis of values, attitudes and interests.
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Benefit segmentation,
• Using benefits that consumers prefer to promote a
product.
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Volume segmentation
• Depending on the volume of use.
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The most useful segmentation strategy is to use all the relevant
variables to come up with a consumer profile (a target market)
that is
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sizeable,
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reachable and
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profitable.
Mass Vs Relationship.
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Whats the main difference between mass and
relationship marketing?
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One caters to the needs of the many (the large
groups of people) and the latter
caters to a custom market of mostly individuals.
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Mass marketing means developing products
and promotions to please large groups of
people.
Relationship marketing tends to lead away
from mass production and toward custom
made goods and services.
It goal is to keep individual customers over a
certain amount of time by offering them
products or services that meet their needs.
Consumer decision- making
process.
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Figure 13.7, page 417, Chapter 13, Book I.
Influences
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Psychological influences
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Perceptions, attitudes, learning & motivation
etc.
Marketing mix influences
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Product, Price, Place, Promotion.
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Sociocultural influences
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Reference groups, Family, Social class,
culture, Subculture.
Situational influences
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Type of purchase, Social surroundings,
Physical surroundings, Previous experience.
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The actual process of decision making
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1) Problem recognition,
2) Information search,
3) Alternative evaluation,
4) Purchase or no purchase decision,
5) Post purchase evaluation.
B2B marketing.
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This market consists of
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Manufacturers,
Intermediaries such as retailers, institutions (eg
hospitals, schools and charities) and
The government.
The number of consumers in the B2B market is
relatively small and the size of business customers
is relatively large.
B2B markets tend to be geographically
concentrated with direct sales and an emphasis on
personal selling.
Evolution of marketing
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During the production era, marketing was
largely a distribution function.
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The emphasis was on producing as many goods
as possible and getting them to markets.
By the early 1920's (the selling era).
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The emphasis turned to selling & advertising to
persuade customers to buy the existing goods
made by mass production.
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After WWII
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The demand for goods and services let to the
marketing concept era, when businesses
realised the need to be responsive to consumer
desires.
During the 1990's
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Marketing entered the customer relationship
era.
The main idea here was to enhance customer
satisfaction and stimulate long term loyalty.
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In the 21st century marketers need to readjust
their strategies to meet the ever changing
needs of modern consumers.
This effectively means that each of the
elements of the marketing concept need to be
updated.
With the result that marketing is becoming
more consumer oriented than ever before.
The focus has shifted to anticipating and
exceeding customer needs.
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In addition, companies are using their suppliers
and dealers to provide quality service to their
customers.
Lastly there is an emphasis on long term
loyalty of customers that is on keeping the
customers that a business already has.
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Stockholder marketing.
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Involves establishing and maintaining beneficial
exchange relationships over time with all the
stakeholders of the organisation.
An organisation that carries out stockholder
marketing is aware of the stockholders
opinions and
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is able to take the community's needs into
account when designing and making products.
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Customer relationship management (CRM) is
learning as much as possible about customers
and doing everything you can to satisfy them
with goods and services over time.
Usefulness of the above process
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Ideas?
Intrusive activity?
Databases of private information?