What is Marketing 4 Marketing is the process

What is Marketing? 4 Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organizational objectives (AMA) 4 Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably (CIM)

Marketing components P d p 1 p 0 p 2 d Q q 1 q 0 P= price Q= quantity d= demand q 2 supply= ?

Demand = the Market 4 Different demands on different markets – Can the market be differentiated based on differences in needs? • Identifying the market – Industrial Market – Consumer Market

Supply = the Competition 4 The same supply on the same market – Can the supply be differentiated based on how it satisfy the needs? • Identifying the needs – What needs should be satisfied? – Generalization or specialization?

The Product 4 The product: goods and services 100 50 goods services 0 • Satisfaction of needs • Quality by standardization – factual quality – expected quality

The Price 4 Pricing based on costs Costs Quantity

Markets and Competition Supply Demand Same demand Different demand Same supply Different supply

The Marketing Planning Process

4 A broadly defined, enduring statement of purpose of the business – What business are we in? – What business do we want to be in?

Defining the Product 4 Differentiation by satisfaction Potential product Augmented product Tangible product Core product

Deciding the Price – Pricing based on demand supply Costs Pricing methods Competition Market

Determining the position (Where are we? ) 4 SWOT – internal source • strengths • weakness – external source • opportunities • threats 4 Benchmarking – internal – external

Identifying the Markets Products (customer needs) Markets (customer groups) Home customers Business Customers Professional customers

Identifying the customers » Market segmentation Products (customer needs) Markets (customer groups) Home customers Business Customers Professional customers

Identifying the competitors Tertiary competitors Secondary competitors Immediate competitors Technically similar products Different products solving the same problem in a similar way Different products solving or eliminating the problem in a different way

4 What shall we be? 4 How should it be measured?

How shall we do? 4 Where and how compete – Positioning, the choice of • target market (where) • differential advantage (how) Consistency Clarity Successful positioning Credibility competitiveness

Connecting to the market 4 Communication – information from the market • market research – information to the market • promotion and advertising – personal selling 4 Distribution – channels/entries – transport and logistics