CH.1 Marketing PDF

Week “1+2” Introduction to Marketing Course Instructor: Dr. Sherif Taher Associate professor at Sadat Academy for Management Sciences Lecturer at Arab Academy For Science, Technology And Maritime Transport Trainer in Consulting General Administration Center – Cairo University  C...

Week “1+2” Introduction to Marketing Course Instructor: Dr. Sherif Taher Associate professor at Sadat Academy for Management Sciences Lecturer at Arab Academy For Science, Technology And Maritime Transport Trainer in Consulting General Administration Center – Cairo University  Comprehensive introduction to marketing principles  Knowledge acquisition and application of subject matter to real-life situations  Course literature  Use of multimedia visual aids (PowerPoint slides & Acadmic Videos)  Reference to case studies when desirable  Encouragement of questions, comments and constructive criticism from course participants  Analytical and critical thinking, inquisitiveness as well as common sense from course participants also expected  Cases Analysis , Role Playing , Discussions and Papers / Researchs for each Topic The Objective of the Course: To introduce the main concepts , techniques and applications of marketing principles and effective marketing strategies , objectives , concepts, process, and applications  Acquisition and careful application of knowledge  Analytical and critical thinking, innovation, inquisitiveness  Holistic perspective  Attendence Project Work (each course participant is expected to show that he or she is able to apply the marketing principles in this course) Examination (case study in which each course participant is expected to demonstrate his or her indepth understanding of marketing principles and apply the knowledge acquired in the course to a real-life situation) Course’s Evaluation Class Work 20 Marks (presentation ) & 10 Marks (participation/attendance) Mid-term 30 Marks (Cases 15 Marks ) & (Quiz 15 Marks) Final-term Exam 40 Marks  The DO‘s and DONT‘s Catalogue for Course Participants listen attentively be late to session be considerate and amenable use mobile phones or send SMS messages in the class be inquisitive, analytical and critical in your approach to learning research methodology feel afraid to bring up any relevant point for discussion mention if you do not understand something and seek clarification be absent start reading from the beginning of the course and not towards the end!  Attendance Policy  Students attendance will be taken on the lecture & Section  Students must attend every class, for two reasons: (1) because these courses are interactive; and (2) in order to insure that the required contact hours are achieved for recognition of the certificate.  Students who miss more than 25% of classes will be dropped from the course, unless they have had serious health or family problems.  Attendance is mandatory for the entire time period of the class.  Students who miss a class are responsible for making up any work they missed.  If an instructor knows in advance that they won’t be able to be present in a particular class would indicate this in the syllabus and make appropriate arrangements.  Marketing Definitions  Marketing Process  Marketing mix Introduction The success of the marketing department is the organization's success and The failure of marketing department means it’s failure Glen Gilmore  It is critical to understand your Market to know how potential customers will respond to a new product or service and identify opportunities that are not currently met. Richard D’Aveni Definitions of Marketing  Definitions of Marketing  Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements to achieve customers loyalty and profits. (Glen Gilmore )  Marketing is social and managerial process by which individuals and groups obtain what they need and want through creating , offering, and freely exchanging products and services of value with others and build strong relationships. (Kotler)  Marketing is the process of planning and executing the Product conception, pricing, promotion, and distribution of ideas, goods, services , persons , events and places to create exchanges that satisfy individual and organizational objectives. ( American Marketing Association )  Goals  Attract new customers by promising superior value. Of  Keep and grow current customers by delivering satisfaction. Marketing This requires studding the consumer behavior and how to influence this behavior main roles : advertising ( By advertising and promotion managers) selling (Using sales representatives/sales force) but also : product development (brand and product managers) packaging (packaging designers) pricing (pricing specialists) distribution (sales persons) Marketing Roles  Marketing VS. Advertising Marketing Marketing refers to the process of preparing your product and service for the marketplace. It involves understanding who your current and potential customers are and what they want to get from your product or service. Colors, logo and other design elements help to align the image of your product with the interests of your target audience. It is marketing that defines your brand and attracts the market share you want. Advertising Advertising is the process of making your product and service known to the marketplace. It is essentially spreading the word about what your company has to offer. While marketing is the way in which you convince potential buyers that you have the right product for them, advertising is how you communicate to them the existence of that product (goods/ services). Marketing Vs. Sales Difference between product and service Difference between product and service Marketing Process  Understanding the Marketplace and Customer Needs  We examine core customer & marketplace concepts : 1. Customer Needs , Wants and Demands :  The most basic concept underlying marketing is that human needs which are State of felt deprivation (loss/lack).  Needs include physical needs , social needs and individual needs.  Wants are the form human needs take as shaped by culture and individual personality. Ahmed’s need is FOOD but his want is KFC  WANTS CAN DESCRIBE AS objects that will satisfy needs Maslow's hierarchy of needs  Understanding the Marketplace and Customer Needs  We examine five core customer & marketplace concepts : 1. Customer Needs , Wants and Demands :  Demands are human wants that are backed by buying power  Demand = Wants + Buying Power People demand products with benefits that add up to the most value and satisfaction.  Understanding the Marketplace and Customer Needs 2) Marketing Offers products , services & experiences :  Marketing Offer is “ Some combination of products , services , information or experiences offered to a market to satisfy a need or want “.  Products: Persons, places, organizations, information, ideas , services , events and goods.  Services: Activity or benefit offered for sale that is essentially intangible and does not result in ownership.  Experiences: Consumers previous feelings toward product and services.  Understanding the Marketplace and Customer Needs 3) Customer Value and Satisfaction :  Customer value Depends on the product’s perceived performance relative to a buyer’s expectations.  If performance is lower than expectations, satisfaction is low.  If performance is higher than expectations, satisfaction is high  Customer satisfaction often leads to consumer loyalty.  Some firms seek to DELIGHT customers by exceeding expectations. CUSTOMER VALUE PERFORMANCE PRICE OF OF PRODUCT PRODUCT PERFORMANCE PRICE OF OF PRODUCT PRODUCT CUSTOMER CUSTOMER VALUE SATİSFACTİON  Understanding the Marketplace and Customer Needs 4)Exchange and Relationship:  Exchange is the act of obtaining a desired object from some one by offering something in return.  Marketing Relationships are Marketing activities that are aimed at developing and managing trusting and long-term relationships with larger customers. 5) Markets :  The set of actual and potential buyers of a product or services.  DESIGNING ACUSTOMER – DRIVEN MARKETING STRATEGY  Marketing strategy management is “the art and science of choosing target markets and building profitable relationships with them through a combination of strategies.”  The marketing managers to attract and keep customers “ Creating, delivering and communicating superior customer strategy & customer value “.  TO design a winning marketing strategy “ STP”:  Segmenting customers to serve (Marketers select customers that can be served well and profitably).  Selecting target customers ( how they are making their purchasing decisions)  Choosing a value proposition ( how it will differentiate and position itself in the market place ) Preparing a Marketing plan and program Building Customer Relationships  CRM CRM – Customer relationship management... “ is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.”  CRM It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer satisfied. Marketers must be concerned with the lifetime value of the customer. Capturing value from customers conclusion Marketing Mix  Marketing mix  It Refers to a set of actions or tactics , that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix- Price , Place, Product, and Promotion.  One of the major uses of marketing research is to help management make decisions associated with defining the most appropriate marketing mix components such as product, promotion, pricing, and place (4P’s).  4Ps & 4Cs Product : Refers to an item that satisfies the consumer’s needs Consumer: When you study the needs and wants of your consumer and wants. Product may be tangible (goods) or intangible (services, and fill them. It’s much more effective to find a market, & then develop a ideas, or experience) product to fit. Prices : Refers to the amount the customer pays for a product. Price may also refer to the sacrifice consumers to make to acquire a product (time or effort) Cost: It is a part of satisfaction. Place : Refers to providing customer access , this may be retail establishment. Convenience: You have to know how each subset in the market Promotion : Refers to marketing Communications. They may prefers to buy-on the internet, from a catalogue, on the phone, or using comprise elements such as: Advertising, PR, direct marketing & sales credit cards. promotion. Communication: Requires a give and take between the buyer and the seller  Product  ‘Product’ refers to the functions and features of a good or service.  Product Should satisfy the needs of the customer and have a Unique Selling Proposition (USP).  The health care organization must come up with a product or service that people will want to buy.  Three Aspects to Consider:  Selecting Product Features  Color, size, quality, hours of operation, warranties, delivery, and installation  Branding, Packaging, and Labeling  Branding: the name, symbol, or design used to identify the product  Package: the box, container, or wrapper in which the product is placed  Label: information about the product on the package  cost Product Levels  Price  The amount of money charged for a product or service or the sum of the values that consumers exchange for the benefits of having or using the product or service.  The price of a product will depend on: – The cost to make it – The amount of profit desired – The price competitors charge – The price customers are willing to pay Is there a high demand? Is demand sensitive to changes in price?  Price Set Your Price Objectives: – Maximize sales – Increase profits – Discourage competition – Attract customers – Maintain an image The right price set must take into account of production costs, competitors’ prices and consumers’ purchase ability and demand level.  Promotion  promotion is communicating with the public in an attempt to influence them toward buying your products and/or services  The aims of promotion are to:  Raise awareness  increase demand  Encourage sales  Create or change a brand image  Maintain market share  differentiate a product/service  Create competitive retaliations  Promotional Mix include five elements which are personal selling, advertising, sales promotion, direct marketing, and publicity Distribution  Place (Distribution)  The means by which products and services get from producer to consumer and where they can be accessed by the consumer.  Refers to providing the product at a place which is convenient for consumers to access. Places’ include: – Stores – Mail order – Telesales – Internet  Channels of distribution Manufacturers Wholesaler Retailer Consumer people  people the employees of the organization with whom customers come into contact. process  process the processes and systems within the organization that affects its marketing process. Physical Environment Physical Environment  Marketing Challenges Technological advances, rapid globalization, and continuing social and economic shifts are causing marketplace changes and effect consumers decisions and behaviors. Major marketing developments can be grouped under the theme of Connecting with customers  Marketing Challenges Connecting Advances in computers, telecommunications, video- conferencing, etc. are major forces. Via technology  Databases allow for customization of products, messages and analysis With customers of needs. The Internet With marketing  Facilitates anytime, anywhere connections partners  Facilitates CRM  Creates market spaces With the world  Marketing Challenges Connecting Selective relationship management is key.  Customer profitability analysis Via technology separates winners from losers. With customers Growing “share of customer”  Cross-selling and up-selling are With marketing helpful. partners Direct sales to buyers are growing. With the world  Marketing Challenges Connecting Partner (stake holders) relationship management Via technology involves:  Connecting inside the company With customers  Connecting with outside partners With marketing  Supply chain management  Strategic alliances partners  Competitors With the world  Vendors and suppliers  Marketing Challenges Globalization Connecting  Competition  New opportunities Via technology Greater concern for environmental and social With customers responsibility With marketing Increased marketing by nonprofit and public-sector partners entities With the world  Social marketing campaigns  General Contents Of the Course Lecture One : Introduction Lecture Two : The foundation of marketing Lecture Three : Environmental forces and marketing ethics Lecture Four : The consumer market Lecture Five : Market segmentation Lecture Six : Product concepts and strategies (competitive strategies ) Lecture seven: Mid-term Exam  General Contents Of the Course Lecture Eight : Product concepts and strategies (growth strategies ) Lecture Nine : Product concepts and strategies (positioning strategies ) Lecture Teen : Pricing strategies Lecture Eleven : Distribution strategies Lecture Twelve : Class Work Quiz Lecture Thirteen : Promotion strategies (Promotional Mix & IMC) Lecture Fourteen : Revision and Class Work Quiz Presentation (groups projects ) e-mail: [email protected]