Marketing Anesh Maniraj Singh The Rookie 5 Homework

Marketing Anesh Maniraj Singh

The Rookie 5

Homework • What Marketing mistakes did you make in this exercise? • Describe your target market for the product/service you were selling? • What approach did you take towards your market?

Homework • What is consumer behaviour? • How would you describe your target market in terms of their behaviour characteristics? • What did your group do to ensure the success of your product/service?

What is marketing?

Business Functions Finance Information Systems Marketing Organisation Human Resources Production

Marketing Activities Marketing Advertising Sales Research Customer Service

Marketing - Definition Marketing is the art of determining the customers wants and needs, and developing satisfaction in the form of products and services, whilst making a profit. Philip Kotler

The Marketing Equation Need Identification + Need Satisfaction = Profit

How do people acquire products?

Markets and Industries • A Market refers to – Groups of people – Willing and able to exchange money – Buy goods and services • An Industry refers to – Groups of businesses – Willing and able to sell goods and services – In exchange for money

Approaches to the Market Needs of the Seller Needs of the Buyer • Production approach • Marketing approach • Product approach • Societal marketing • Selling approach • Relationship marketing • Electronic marketing • Social network marketing Holistic Approach

Marketing Consumer Behaviour

Definition • Consumer Behavior is the study of – The mental and social processes and actions a consumer takes preceding and following the purchase and use of products and services • Seeks to answer – – – Who? Where? When? Why? How much?

Factors that Affect Consumer Behavior Cultural Factors • Religious beliefs, values, norms Socio-cultural Factors • Relationships with others Psychological Factors • Personality, perception, motivation Personal Factors • Age, family size, affordability Marketing Mix Factors • Product, Price, Place, Promotion

Psychological Factors

Buying Decision Process

Marketing The Marketing Mix

The Marketing Mix Product Price Target Market Promotion Place

Marketing Mix Product

Anatomy of a Product

Sales Product Life Cycle Time

Why do new products fail? • Poor quality • Poor advertising and support • Doesn’t match claims • High production costs • Poor timing of launch • Not meeting the needs of consumers

Marketing Branding

What is a Brand? • A name, symbol, term or sign that identifies the products of one manufacturer from another • Brands help consumers differentiate between similar products

Why Brand? Differentiation Brand Equity Lower marketing costs Familiarity Branding Premium price Build trust Build loyalty Prevents switching Barrier to competition

Effective Brand Names • • • Easy to Say Easy to Spell Easily remembered Free of ambiguity/negative connotations Should not be used by another party Communicates the product use/benefit

Beware …

Marketing Mix PRICE

Pricing Profit Objectives Sales Status Quo

Basic Principle • Main consideration is cost recovery • Cost Based – cost plus pricing Volume Cost Price

Pricing Strategies • Price Penetration – Intended for products with a long life cycle – Introduction price is low – Gradual increase in price • Price Skimming – Intended for products with short life cycle – Introduction price is very high – Gradual decrease to get rid of stocks • Status Quo Pricing

Pricing Tactics • • One Price Policy Variable Pricing Flexible Pricing Odd/Psychological Pricing Bundle Pricing Freemium Pricing Leader Pricing Bait & Switch Pricing

Marketing Mix PLACE

Importance of Channels Specialisation & Division of Labor Contact Efficiency Overcoming Discrepancies

Distribution Channels M A N C U O Retailer F N A S C U T Wholesaler Retailer M U E R R E R Agent Wholesaler Retailer

Retail Location Market Size Crime Suppliers Location Costs Parking Competitors Visibility Accessibility

Three secrets for success • Location Population 5 million

Marketing Mix Promotion

Promotion Personal Selling Direct Marketing Telesales, Catalogue Sales, Television Shopping, Internet Shopping Publicity Sponsorships, Press Conferences, Consumer Endorsements Sales Promotion Coupons, demonstrations, prizes, loyalty rewards among others Advertising TV, radio, billboards, newspapers etc.

Advertising Preferred means of communication Objectives of Advertising • Mass communication • Relatively cheap • It is informative • To inform – new products, price changes • To persuade – competitive advertising • To remind – keep product in consumers mind

Five M’s of Advertising Mission Money Media Message Measurement

Modern Media • E-mail Advertising • Website Advertising • Mobile Advertising • Social Network Advertising

Problems with Advertising • It is intrusive • Can be false or grossly exaggerated • It is one way only • Can suffer from non-delivery • May not promote immediate action