Introduction To Marketing Chapter 2 PDF

INTRODUCTION TO MARKETING Chapter 2 Mr. Saken TURDIYEV Senior Lecturer, MBA GOAL-SETTING Why are goals important in marketing? Marketing goals are essential for businesses to achieve their desired outcomes through their marketing e...

INTRODUCTION TO MARKETING Chapter 2 Mr. Saken TURDIYEV Senior Lecturer, MBA GOAL-SETTING Why are goals important in marketing? Marketing goals are essential for businesses to achieve their desired outcomes through their marketing efforts. Marketing Goal Examples Increase brand awareness. Attract new customers. Increase website traffic. Establish industry authority. Increase customer value. Boost brand engagement. Increase revenue.  What means Goal-setting? Goal-setting involves the development of an action plan designed in order to motivate and guide a person or group toward a goal.  SMART Goal S – specific M – measurable A – attainable (achievable) R – realistic (relevant) T – time-bound (time-based) SMART Goal Brand Wars Brand Wars MARKETING MIX  Marketing Mix "Marketing mix" is a general phrase used to describe the different kinds of choices, organizations have to make in the whole process of bringing a product or service to market. The 4Ps is one way, probably the best-known way, of defining the marketing mix, and was first expressed in 1960 by EJ McCarthy. Marketing Mix is mainly of 2 types Product Marketing Mix Product Price Place Promotions Service Marketing Mix People Process Physical evidence Marketing Mix: 4P Marketing Mix: 5P Marketing Mix: 7P Marketing Mix: 8P  Marketing Mix’s History That original Marketing Mix, commonly known as the 4Ps, is the set of activities/tools used by enterprises to get you to buy their product. And was introduced by McCarthy in the 1960s becoming a marketing classic. To address this criticism, Boom & Bitner introduced 3 additional Ps to derive the Service Marketing Mix. These new Ps are People, Physical Evidence and Process. This comes from taking a view that service and goods are fundamentally different. Further, Kotler proposed an additional 8th P: Performance. Although this 8th P is sometimes used for Partnership instead.  Marketing Mix: 4C In the 1990, Bob Lauterborn published an article in “Advertising Age” magazine, that proposed a new marketing formula – “4C”. The concepts focus on the wants and needs of the consumer, cost of satisfying those wants, and the convenience of buying the product. Marketing Mix: 4C Marketing Mix: 4E Heineken’s Marketing Fail MARKETING ENVIRONMENT  Marketing Environment A company's marketing environment consists of all the factors and forces outside marketing, that affect management's ability to develop and maintain successful transactions with it’s target customers (Kotler and Armstrong). Marketing Environment involves forces, that directly or indirectly influence an organization's capability to sell it’s product successfully.  Marketing Environment The marketing environment refers to the totality of factors, both internal and external, that affect a company's ability to conduct effective market research. It involves understanding the conditions and forces in the business surroundings, that influence the collection, processing and use of marketing information.  TheInternal Marketing internal environment Environment are the factors, that are within the direct control of the organization. These include organizational structure, resources, company culture, and management practices. Organizational structure refers to how the company is organized, including hierarchies, departments, and reporting relationships. This can influence how information flows within the organization. Resources include financial, human and technological assets. Resources are important to conduct effective market research. Company culture and management practices influence the attitudes and behaviors of employees, which can impact the quality of the collected data. Internal Marketing Environment or Controllable Factors Internal Environment is generally audited by applying 5 Ms: Men Money Machinery Markets Materials  Internal Environment The internal marketing environment consists of all factors, that are internal to the organization like: Company's mission, vision and business objectives Company Culture Company image and Goodwill Marketing Strategy Technical Capacity Managerial Skills and Abilities Structure and Processes  Internal Environment Finance and Sales force Production and Research Internal Processes and Procedures Allocation of responsibilities Resource availability Attitude of stakeholders Organization culture Human Resources - HR department, Operations department, Accounting and Finance departments, Research and Design  External Marketing Environment The external environment include factors, that are beyond the direct control of the organization. These are economic, social, technological, political, and legal factors. Economic factors, such as devaluation, employment levels, and consumer spending, have a direct impact on consumer behavior and market dynamics. Social factors include cultural norms, values, and social trends. Understanding these influences helps in adapting marketing strategies to specific demographic group. Technological progress can create new opportunities or destroy existing markets. Staying updated with technological trends is important for effective marketing research. External Marketing Environment or Uncontrollable Factors The External Environment must be monitored regularly to review the marketing strategy accordingly. It consists of Micro and Macro Environment.  Micro Environment It involves all forces which directly affect the organization. Public - Any group with potential interest in organizational working Financiers - Founders, Stakeholders, Investors, Partners, Banks Market intermediaries - Suppliers and Wholesalers Customers - Individual, industrial, re-seller, retail Suppliers - Government, Non-profit, International Competitors - Number of firms, Size of market, Nature of product, Market entry and exit barriers, Differential advantage  Macro Environment It involves all forces which affect indirectly like: Demographic factors Age, sex, location Income Education Occupation Population Growth rate Birth ratio  Macro Environment Political factors Government procedures and policies Government rules and regulations Monetary and Fiscal policy Import-Export Policies Central and State Regulations Monopoly and Restrictive Trade Practices Quota and Taxes  Macro Environment Economic factors Economic system Economic stability Nature of trade cycles Gross domestic product Growth in real income Income distribution pattern Purchasing power  Macro Environment Culture and Sub-culture Values, beliefs and attitudes Traditions, norms Friends, family, reference group, peers Technological Factors Technical Know-how Availability of technology  Macro Environment Environmental/Natural Factors Climate Availability of raw material Topography of land Natural and ecological resources  Micro Environment Vs Macro Environment BASIS FOR COMPARISON MICRO ENVIRONMENT MACRO ENVIRONMENT Meaning Micro environment is Macro environment refers defined as the nearby to the general environment, under which environment, that can the firm operates. affect the working of all business enterprises. Elements COSMIC, i.e. Competitors, PESTLE, i.e. Political, Organization itself, Economic, Socio-cultural, Suppliers, Market, Technological, Legal and Intermediaries and Environmental. Customers. Nature of elements Specific General Are these factors Yes, but to some extent No controllable? only Influence Directly and Regularly Indirectly and Distantly