Introduction to Marketing

Nigel Douch
 Definitions of marketing
‘Marketing is the management process that
identifies, anticipates and satisfies customer
requirements profitably’

The Chartered Institute of Marketing

 ‘The right product, in the right
place, at the right time, and at the
right price’
Adcock et al
 The Challenge for Marketing
• Who are our existing / potential customers?
• What are their current / future needs?
• How can we satisfy these needs?
• Can we offer a product/ service that the customer
would value?
• Can we communicate with our customers?
• Can we deliver a competitive product of service?
• Why should customers buy from us?
 The Marketing Process
• choosing and targeting appropriate
customers
• positioning your offering
• interacting with those customers
• controlling the marketing effort
• continuity of performance
 Services Marketing Mix:
7 Ps for Services

• Traditional Marketing Mix

• Expanded Mix for Services: 7 Ps
• Building Customer Relationships Through
People, Processes, and Physical Evidence
• Ways to Use the 7 Ps
 Traditional Marketing Mix

• All elements within the control of the firm that

communicate the firm’s capabilities and image to
customers or that influence customer satisfaction
with the firm’s product and services:
 Product
 Price
 Place
 Promotion
 Table 1-3
Expanded Marketing Mix for
Services
PRODUCT PLACE PROMOTION PRICE
Physical good Channel type Promotion Flexibility
features blend

Quality level Exposure Salespeople Price level

Accessories Intermediaries Advertising Terms
Packaging Outlet location Sales Differentiation
promotion
Warranties Transportation Publicity Allowances
Product lines Storage
Branding
 Expanded Mix for Services --
the 7 Ps
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical Evidence
 Ways to Use the 7 Ps

Overall Strategic Specific Service

Assessment Implementation
• Who is the customer?
• How effective is a firm’s
services marketing mix? • What is the service?
• Is the mix well-aligned • How effectively does the
with overall vision and services marketing mix for a
strategy? service communicate its
benefits and quality?
• What are the strengths and
• What changes or
weaknesses in terms of the
7 Ps? improvements are needed?
 Table 1-3 (Continued)
Expanded Marketing Mix for
Services
PEOPLE PHYSICAL PROCESS
EVIDENCE
Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicating Signage Level of customer

culture and values involvement

Employee research Employee dress

Other tangibles
 Promotion

…let me introduce you to Aida!

 Aims
• To understand the importance of AIDA in
promotional materials

• To be able to identify the AIDA in promotional

material

• To be able to apply AIDA concepts to your

own marketing material
AIDA….
Attention

Interest

Desire

Action
 AIDA – How does it address the Customer?

Attention Interest

Desire Action
 Attention
• The most vital part of any advert, email, leaflet, sales letter,
brochure or any other promotional activity.

• Tell your customers IMMEDIATELY precisely 'what's in it

for them'.

• Without answering this question, why should anyone read

any further?

• The headline MUST be compelling, attention grabbing and

totally irresistible to the target market, or the company will
lose them!
 Attention
What section (s) of your ad do you think grabs attention?

How does it tell the customers IMMEDIATELY precisely

“what's in it for them”?
 Interest
• Once you have successfully attracted your customers you
must keep their interest.

• Re-emphasising and expanding on the headline, assuming

that your headline includes the main benefit, can do this.

• If they like the headline customers will want more of the

same, so immediately follow on from the benefit in the
headline.
 Interest

What section (s) of your ad do you

think keeps you interested?
 Desire
• You need to create desire in
a customer, because they
will buy what they "want"
not necessarily what they
need.
• You can do this by
introducing bullet points or
some more punchy info.
• One of the best ways to do
this is to look at the
features and benefits of
your product or service.
Firstly write them all down
and then alongside write
"which means that...".
• What comes next is the rest
of the benefits to the
prospect: why they may
want what you are selling.
 Desire

Look at the use of language & images

to make them WANT the
product/service/place
 Action
• Strange though it may seem the call to action is most definitely
required. Just because you have put your address, phone number or e-
mail address etc on the bottom of your leaflet means nothing.

• You must use words like 'Call Today', 'Call Now to avoid
disappointment!' 'E-mail us today', 'Fill in the reply slip below and
post it free today', and so on.

• Make it as easy as possible for customers to contact you, because most

people are lazy and so the simpler the better. Tell your customers what
they need to do to take action.
 Action

How have they used language/layout to

encourage customers to make contact or act
to buy now?
 AIDA
• These are the four vital components of any
successful advert, in whatever form it appears.

• A well-written, properly designed advert, placed

in the right publication, in the right position, will
without doubt increase response and ultimately
sales.
 Marketing management process
• Analysis/Audit - where are we now?
• Objectives - where do we want to be?
• Strategies - which way is best?
• Tactics - how do we get there?
• (Implementation - Getting there!)
• Control - Ensuring arrival
 Why is marketing planning
necessary?
• Systematic futuristic thinking by
management
• better co-ordination of a company’s efforts
• development of performance standards for
control
• sharpening of objectives and policies
• better prepare for sudden developments
 Marketing Mix (4p’s)
Slide 1

Product Price

Place Promotion

The marketing mix principles are controllable variables

which have to be carefully managed and must meet the
needs of the defined target group. All elements of the mix are
Linked and must support each other.
 Four P,s Four C,s

PRODUCT Customer Solutions

PRICE Customer Cost

PLACE Customer Convenience

PROMOTION Comm with Customer

 Marketing Mix (4p’s)
Slide 2 Product

Product Decisions

Branding Quality Features

Benefits offered

We must remember that Marketing is fundamentally about providing the correct bundle of
benefits to the end user, hence the saying ‘Marketing is not about providing products or
services it is essentially about providing changing benefits to the changing needs and
demands of the customer’ (P.Tailor 7/00)
 Product

Product development

 traditional economies: same things

produced and consumed
 nowadays:
- products have a life cycle
- product range is constantly expanded
- find out what target market desires

Consequence is adjustment of:

- production
- research & development
- personnel administration
- finance
- public relations
There are 10 offerings which can be marketed

Can you name them?

Goods or
Products
Services
Experiences
Events
Properties
Organizations
information
ideas
PERSONS
PLACES
 PERSONS PROPERTIES
GOODS

ORGANISATIONS
SERVICES
MARKETING

INFORMATION
EXPERIENCES

PLACES IDEAS
EVENTS
 Marketing Mix (4p’s)
Slide 4 Promotion
Advertising

Public
Relations

Sales
Promotional Mix Promotion

Personal
Selling

A successful product or service means nothing Direct

unless the benefit of such a service can be Mail
communicated clearly to the target market. An
organisations promotional mix can consist of:
Internet/
E-commerce
 Marketing Mix (4p’s)
Slide 5 Place

Direct Distribution Indirect Distribution

Manufacturer

Manufacturer

Retailer

Consumer
Consumer
Packaging

Branding

• create clear message

• create credibility
• involve emotionally
• motivate
• invite user loyalty

back
 Price
Pricing strategies:
1. Market determines
the price

2. Price as an expression

of quality
3. Price as a method of
gaining market share

back
 Place (distribution)
Production site Warehouse Wholesaler

- factory outlet
- mail order house
- internet
- TV shopping
- door-to-door selling

consumer Retailer
back
 Promotion

Aims:
 communicate with customers
 influence customers

4 major tools:
1. Sales force
2. Advertising
3. Sales promotion
4. Public relations

back
Marketing
Management
Why do we need to learn marketing management?
Can you market these products easily ?
How about these products?
Is there any difference in types of these products?
How about Marketing them?
How about their films ?
How about the products they endorse ?
Why do we need to market…………..?

Singapore Malaysia Sydney

Mumbai Beijing Paris

How about these………?
Learning Process of Marketing Facilitate Marketing of

Products
Persons
Services
Places
……..
……..
Let us know more about marketing Process
In group of 3 write 5 examples of each of these offerings
These can be marketed if there is a
demand for them ?

What is Demand?
NEGATIVE NO DEMAND
LATENT DECLINING
DEMAND DEMAND DEMAND DEMAND
STATES

DEMAND
STATES

IRREGULAR FULL OVERFULL Unwholesome

DEMAND DEMAND DEMAND demand
We need some market to create a demand
 Consumer

Nonprofit/ Types of
Government
Business
Markets

Global
Can we apply the same marketing process to these markets ?
 Marketing Concepts

Target Markets
Competition and
Segmentation

Products or
Marketers & Offering
Prospects
 Marketing Concepts

Marketing
Needs, Wants &
Environment
Demand

Marketing
Supply Chain Mix
 Marketing Concepts

Marketing Exchange &

Channels Transactions

Relationship & Value and

Network Satisfaction
 MARKETING
MIX

PLACE
PRODUCT

Variety PRICE
Quality PROMOTION Channels
Design Coverage
Features Locations
Brand Inventory
Packing List price Sales
Discounts Advertising Transport
Sizes
Services Allowances Sales force
Warranties P. Period P.R,S
Returns Credit terms Direct mktg
What should a manufacturer does to strengthen 4 C’s
for each of 4 P’s in case of
 product

Selling
Competing
Concepts

Production

Marketing Societal
Marketing
Production Concept

Concentrate on achieving high production

efficiency, low cost & mass distribution

Consumers prefers inexpensive items in

Developing countries

Used also in expanding Market

Over Populated Counties-

Inexpensive Toys, electronics

 Product Concept

Consumers Favors quality, performance

HMT Watches
or innovative features

Managers focus on producing superior Products

Little or No Customer Input

Rarely Examine Competitor's Product

Management commit Better-mousetrap

Leads to marketing Myopia

What is Marketing –myopia?

•Ignoring The Demand ,Taste, Liking of Consumers

•Looking Into Mirror than looking out

•Colored and crooked perception of marketing

•Short sightedness about business

•Obsession with the product

•Inadequate understanding of market

Selling Concept

Consumers & businesses if left alone,

will not buy enough

Undertake aggressive Selling &

Promotion

Consumers shows buying inertia until

coaxed

Many use it at the time of over capacity

or Competition

CONSUMER DURABLES
Marketing Concept

More effective than competitors

in creating, Delivering, and
communicating superior
customer Value

Putting People First

Fulfilling Buyers Needs

 Start focus means ends

Profit
Selling & through Selling
Factory Products Concept
Promotion Sales
Volume

Profit
Target Through Selling
Customer Integrated
market Customer Concept
needs marketing
satisfaction

(
 Customer Concept

Starting Focus Means Ends

Point

Growth
One To through
Needs Customer
Individual One
customer
& Mktg
Share/
Loyalty
values Integration Lifetime/
Value
 Traditional CUSTOMERS
TM
Organisational
chart
FRONT LINE
MM PEOPLE

MM
FRONT LINE
PEOPLE Modern
Organisational
chart
TM
CUSTOMERS
Factors leading to Marketing Concept

Sales decline

Slow growth

Changing buying patterns

Increasing competition

Increasing marketing expenditure

Societal Concept

To determine the needs, wants and interest

of the Target Market and deliver the desired
Satisfaction that preserves the society's
well being

•Environment deterioration
•Resource Shortages
•Population Growth
•Unhealthy Food
Marketing
&
Other Functions
A) Marketing as an Equal Function

PRODUCTION FINANCE

MARKETING HUMAN
RESOURCE
B) MARKETING As a most Important Function

PRODUCTION FINANCE

HUMAN RESOURCE
MARKETING
C) MARKETING AS THE MAJOR FUNCTION

PRODUCTION

MARKETING

HR
FINANCE
D)CUSTOMER AS THE CONTROLLING FUNCTION

OD
PR

FI
NC
CUSTOMER
MKG

HR
E) CUSTOMER AS CONTROLLING& MKTG AS A
INTEGRATIVE FUNCTION

P
MKG

MKG
CUSTOMER MKG F

MKG
HR
Marketing

is a process by which individuals and groups obtain what

they need and want through creating, offering and exchanging
products and services of value with others
Marketing
Management

is an art and science of choosing target markets and getting, keeping

and growing customers through creating, delivering and
communicating superior customer value
 Customer
Delivered
Value
Total Total
Customer Customer
value Cost

Product Monetary
value cost

Service Time
Value cost

Personal Energy
value cost
Image Psychic
value cost
? ??
Prepare a summary of the topic on marketing-10 minutes
any one can be asked to make a presentation………..