Marketing function
Marketing landscape:
-Anticipating and satisfying consumer needed
-Creating a mutually beneficial exchange process
-Doing so pofitably
-Doing so effectively than competitors by means of efficient managerial process
What is marketing?
Marketing is the process of planning and executing the conception, pricing, marketing communication and distribution of ideas, products and sevices to create exchange that satisfies individual/ organizational goals
Marketing orientations
Product oreintation business:
Focuses on the internal capabilities of the company, rather than on the desires and needs of the market place
Sales orientation:
Business produces more products than a consumer could consume.
-Competition intensified and consumer needs become more complex
-Sale orientation focuses on sale volume produce high sale volume
-Hard-sell approach: tv adverts, radio ads, newspaper, sale reprasentative.
-Goal is reaching maximum Sales
Marketing oriented/ pure marketing business:
Focuses on sales message, price, quantity of product, packing, distribution and information
-consumers become more sophisticated and financially empowered
-many competitors thus have different business objectives
-building long-term relationships between consumers
-the main goal is to satisfy consumer needs
Social marketing orientation:
includes preserving & enhancing individuals and societies long term goals SOCIAL RESPONSIBILITY
The need for Marketing:
(The core marketing aspects:)
Needs and wants
Products
Value satisfaction and quality
Exchange transitions and relationships
The core marketing aspects are linked with each building one before the other
-Consumers will always have needs and wants that could change and develop over time
-Organisations do market research overtime to ensure they develop relevant products
-The product has to satisfy consumer needs at a value that meet standard quality
-An exchange takes place when a consumer sacrifices money to acquire a product to satisfy their needs and wants in turn the business gains a profit
-Exchange and transaction relationship are built between the two
-Seven Gaps exist between the production and consumption of products, Marketing aims to close these Gaps
The seven gaps between production and consumtion of products that marketing aims to close:
-Space/distance gap
-Time gap
-Information gap
-Ownership gap
-Value gap
-Quantity gap
-Assortment gap
Marketing activities:
Primary activities:
This is delivering goods to consumers the fastest and safest way possible through transport
Auxiliary marketing activities
Obtaining and supplying information
Standardisation and grading
Storage
Financing
Risk taking
Exchange activity
Money is one of the dormant forms of exchange
Exchange can be affected by means of trade by barter
Marketing process(memorise the diagram)
4 P's variables the marketers must make decisions on:
Product
Place
Promotion
Price
The 4 combined form an integrated marketing strategy and marketers plan and need to ensure that the 4 P's bring value to their target market, which can specified using STP
S-segmentation
T- targeting
P- positioning
Consumer behavior
Individual factors influencing consumer buying decisions:
- Motivation
- Perception
- Learning ability
- Attitude
- Personality
- Lifestyle
Factors influencing consumer buying decisions:
-Culture
-Family
-Reference group
-Opinion leaders
The phases in decision making:
- The need for recognition
- Search for information
3.Evaluation - Purchase decision
- Post-purchase evaluation
(Study the diagram)
Purchasing decision:
Real complex, conscious planning
Impulse-spur of the moment
Habitual-brand loyalty
Market segmentation: The process of dividing the heterogeneous market into fairly homogeneous subsets of customers
The STP process
Target marketing
Positioning
- Evaluate attractiveness of each segment
- Select the target segments
5.Identify possible positioning concepts for each target segment
- Select develop, and communicate the chosen positioning concepts
Benefits:
Greater degree of consumer satisfaction
New opposites
Separate market offerings and strategies segments
Prerequisites: market segmentation must enhance customer satisfaction and profitability of shareholder, thus the following criteria must be met:
Prerequisites:
Measurable
Large enough
Accessible
Attainable
Differentiable
Bases for segmentation:
Geographic
Demographic
Psycho-graphic
Behavioral
Selecting potential target market:
(5 Things to concider)
-Segment size and growth possibiliteis
-Attractiveness and potential profitability
-The resouces and skills of the orgnisation
-Compatibillity with the orgnisations objectives
- Cost of reaching the target market
Concentrated targeting
Differentiated targeting
Undifferentiated targeting
The marketing mix is used to facilitate positioning
Product positioning
Is the way consumers perceive a product in terms of its characteristics and advantages and it relates to the competition
Positiong map
Before a postioning map is drawn the variables and determinats need to be determined. To position a new product/brand:
Establish what product attribues are important to consumers
Establish how competeing brand are precieved by consumers
Use positioning map to graphically display the location of products in consumers minds
Positioning process:
- Identify all the major competing brands
- Identfiy which variables are the most relevent to consumer
3.Determine the consumers perception of your brand and competing brands - Analyse the strength of the major bands
- Analyse the brands current position
- Develop a positioning strategy that best satisfies the consumers prefer
Marketing mix
Postioning Stategies
-quality of the product
-user application
-user
-competitor
-product catergory
-Attribute
-Benefit
Marketing process diagram (study)
Marketing segmentation:
-homogeneous
-heterogeneous
Steps in market segmentation:
- Identify segmentation variables and segment the market
- Develop profiles of resulting segments
3 Marketing objectives:
Inform
Persuade
Remind
Product life cycle
Introduction
Growth
Maturity
Decline