2. Seven functions of marketing Four foundations of marketing
Goods and services / wants and needs The Four Ps / Marketing Mix
Customer and consumer Market definitions SWOT Analysis + Internal
and External Analyses. Market segmentation + Target marketing +
Mass marketing Marketing concept and Selling/Henry Ford approach
Demographics + psychographics + DNA + statistics Marketing plans +
code books Branding 101 with real client work Marketing Seminar
Overview
3. What is Marketing?
4. Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, &
society at large. -- American Marketing Association Marketing is
the conversation between a company or brand and a consumer that
ultimately leads to brand recall, preference or a transaction. In
todays socially networked world, that conversation is being
disintermediated by word of mouth referrals. Traditional marketers
will have to work harder to get ahead of and to influence this
trend. -- Josh Glantz Vice President and General Manager, PCH
Online-Publishers Clearing House (disintermediated = remove the
middle man) 72 Definitions of Marketing -
http://heidicohen.com/marketing-definition/ Marketing Seminar
Overview
5. Marketing is the art and science of persuading a potential
buyer of a product/ service to purchase from a company thats
responsible for creating a compelling message and communicating
that message through targeted channels with enough reach and
frequency to guide that potential buyer through the purchase cycle
of attention, interest, desire, action. -- Paul Mosenson President,
NuSpark Marketing Marketing is an integrated, multi-channel (online
and offline), customer-centric process used to define, segment,
reach, and convince potential clients to purchase your product or
service, followed by analyzing the metrics to refine your strategy
and repeat the process as needed to optimize the ROI (return on
investment). -- Sharon Mostyn Assistant Vice President, 1st Mariner
Bankd Marketing Seminar Overview
6. Seven Functions of Marketing Distribution Function Financing
Function Product/Service Management Marketing Information
Management Pricing Function Promotion Function Selling
Function
7. Distribution Function Deciding where products are to be sold
and to whom Moving and storing goods from/to customer
8. Financing Function Getting the money necessary to pay for
the operation of a business. How the customer will pay for the
product. #1 Killer.
9. Product/Service Management Function Obtaining, developing,
maintaining, and improving a good or a service over time. Goods and
services have a life cycle, and the phase of the life cycle is
important in product/service management. A product is introduced,
(hopefully) it is in great demand, it matures and maintains a
steady market, and then it declines. A marketing strategy will
depend on what phase of the life cycle in is in. Is it a new
product or has it been around for years?
10. Product Market Life Cycle Introductory Phase Customers:
Unfamiliar with or unaware of product category. Those who do buy
likely to be more experimentalist by nature. Sales low Competition:
Likely to be low Company priorities: Encourage trial. Work with
customers on product development to improve aspects such as
packaging or documentation, or to eliminate "teething
troubles"
11. Product Market Life Cycle Growth Phase Customers: Growing
in numbers. Segments begin to appear. May be less price sensitive
as category benefits more widely known Competition: Growing as new
entrants appear. Company priorities: Build share by concentrating
on distribution, creating alliances where appropriate to do
this
12. Product Market Life Cycle Early Maturity Customers:
Segmentation is now more distinct and customer loyalty established
as repeat purchases take place Competition: Intense as players
attempt to secure their share Company priorities: Differentiate to
attract and retain customers in specific target segments
13. Product Market Life Cycle Late Maturity Customers:
Knowledgeable, may demand low prices and high service levels
Competition: Intense due to lack of market growth and difficulty of
further differentiation. May be price based Company priorities:
Attempt to lengthen life cycle by innovation, re-inventing product
category before decline stage
14. Product Market Life Cycle Decline Customers: Late adopters,
i.e. first time buyers of DVDs and CDs, catch-up consumers
Competition: May come more from substitute products or services
than direct competition, eg plastic instead of steel components; on
line services instead of libraries or hard copy journals Company
priorities: Re-define market whilst milking profits in early part
of decline stage.
15. GAME OVER.
16. Marketing Information Management Marketing Research Links
the consumer, customer, and public to the marketer through
information Information used to identify and define marketing
opportunities and problems; Generate, refine, and evaluate
marketing actions; Monitor marketing performance; Improve
understanding of marketing as a process. Method for collecting
information, analyze results, and communicate findings and their
implications.
17. Pricing Function Essential to success in marketing!
Satisfying the customer and making a profit. While you can put any
price you want on a product, as a business you need to determine
what price will actually bring the greatest profit. 1. Costs to
produce the product 2. Demand of product 3. Availability of similar
products (competition) 4. What customers will be willing to
pay
18. Promotional Function Promotions, Publicity, PR Persuading
customers to buy Raising awareness Win-back campaigns from past
customers Retention of current customers Promotion ranges from
multimillion- dollar advertising campaigns to communication between
a salesperson and a potential customer. Promotion = showing
corporate socially responsibility
19. Selling Function Matching customer needs and wants with
goods and/or services. MOST of todays CEOs began careers: selling.
Selling provides customers with the goods and services they want.
Retail selling Business-to-business selling Takes place at all
levels of business- manufacturing, wholesale, middle, retail.
20. Marketing Skills flow from these 4 areas Business,
management, entrepreneurship Understanding the basics of business
that can affect business decisions. Communication and interpersonal
skills Understanding how to work efficiently with others. Team
Player. Economics Understanding economic principles that are basic
to marketing. Understand $$$$$$ = everything Professional
Development Understanding concepts needed for career exploration,
development, and growth.
21. Two approaches to selling goods/services The Henry Ford
Approach Henry Ford once said, "You can have any color of car you
wantas long as it is black." Ford did not follow a customer-
oriented approach. The Marketing Concept Approach A company's main
goal is to satisfy the needs and wants of customers while also
making a profit. According to this approach, if you keep the
customer happy and coming back, the profits will follow.
22. Needs vs Wants & Income The basic difference between
the terms is that needs are things necessary for survival, while
wants are things that add comfort and aesthetic pleasures to life.
Marketers want to know how much money people have to spend on
products. Two types of income measurement. - Disposable income is
the money left after taxes are subtracted. - Discretionary income
is the money left after basic living expenses have been met.
23. Added Value and Five Economic Utilities Five economic
utilities and their connections to one another. Utility refers to
add-on value. The functions of marketing add value to a product.
That is, we take something and combine it with other features to
make it more valuable. FORM UTILITY PLACE UTILITY TIME UTILITY
POSSESSION UTILITY INFORMATION UTILITY FIVE UTILITIES
24. Form Utility Form utility represents the manufacturing of a
Better product Changing materials Putting parts together faster
Making products more useful Not directly related to marketing
25. Place Utility Place utility Placing product who need it can
buy it and NEED it. Having a product where customers can buy it.
Most convenient Most efficient Catalogs, retails stores,
internet
26. Time Utility Having a product available at a certain time
of year or a convenient time of day.
27. Possession Utility The exchange of a product for some
monetary value. Cash Credit/Debit Cards Checks Layaway
28. Layaway
29. Information Utility Information utility Involves getting
the information about the product to the consumer in a timely
fashion strategically. Communication with the consumer Salespeople
Displays Packaging and Labeling Advertising
30. Consumer Relations
31. The 4 Ps - Original PRODUCT Goods Services - Features -
Advantages Benefits - Packaging Branding - Installation Warranty
Accessories PRICE Flexibility - Over Life Cycle GeoSocial Discounts
- Allowances PLACE Channel Types - Market Exposure - Locations of
stores Transporting - Managing Channels - Brick N Mortar/Online
PROMOTION Promotion-Sales-Advertising-Publicity
32. Now The 7Ps PRODUCT Focus on solution. Define offerings by
need met. PRICE Focus on value. Price vs. Benefit. PLACE Focus on
access. Purchase touch-points/journey. PROMOTION Focus on
education. Provide relevant 411. PEOPLE PROCES PHYSICAL
ENVIRONMENT
33. Apple Case Study Macro environment Social factors: Social
trends which change over time New versions of products to keep up
with trends and technological changes in opinions iPhone 3G, 3GS,
4, 4S, 5, 5C, 5S, 6, 6 Plus Values, ideas, attitudes and beliefs in
which consumers have in regards to these products Technological
factors: ! New innovations and ideas to create new products ! New
technologies and introductions of products entice the consumer to
buy the product ! Can create negative sides for business " Too hard
to keep up with new technology " New products being released
straight after each other and not making a substantial prot "
MacBook Pro, iPhone, iPod and iPad changed the way the world looked
at technology " Revolutionised how the phone is used " Portable
technology on the go Economic factors: ! Consumer purchasing power
and spending patterns " Income and wealth " Money available to
spend ! Economic factors of Apple revenue in 2008 were less
compared to those in 2009 ! Revenue growth in 2009 increased by 10%
! iPhone and iPod sales increased, however, computer sales
decreased by 8% Political factors: ! Laws and polices that limit
the company to work effectively and produce products that go beyond
technology and laws ! The governments perspective of what can be
sold and bought within a certain country determines the
availability and supply and demand of Apple products Legal factors:
Piracy with music, movies, and app downloads Apple ensures that its
database offers completely legal services in which are paid for by
its users Apple works with BSA and SIIA to combat worldwide
software piracy Must ensure that all products are protected by
copyright laws All Apple Products do not cause copyright
infringements Similar products to other competitors Operating
software is similar Operating environment Customers: Trialling
products and providing feedback on products Customer satisfaction
surveys may be used for feedback Help in determining what products
are being successful and what products are not Enable Apple to see
which direction the company should go in when introducing
new/developed products Suppliers: Crucial when Apple is determining
their pricing and prot margins Ensuring that all parts are working
properly and are not faulty Apple ensures that their workers
undertake full training Suppliers must treat workers fairly and
ethically at all times 349 suppliers in China 139 suppliers in
Japan 60 suppliers in USA Competitors: Competitors inuence the
pricing of products, and the services in which the product, or
Apple as a whole provides Competitive pricing ensures that there is
a market for the product iPhone vs. Samsung Galaxy iPad vs. Samsung
Galaxy Tab iMac/MacBook vs. Microsoft computers OS X
Mavericks/Yosemite v. Windows By having competitors in the market,
this ensures that Apple would be able to continue to strive to do
better and be better Interest groups: Help with new products and
with market research The testing of products before they go on the
market Checking if there are any glitches in the interface Whether
or not the system runs smoothly The product is user friendly for
the specied audience Macro and Operating Environment
34. Apple Case Study iPhone 6 The target market for the iPhone
6 is primarily high income earners, businessmen, and teenagers.
Concentrated segmentation is where Apple produces their products in
limited numbers at higher prices. When the iPhone 6 was released,
consumers were lined up over 24 hours before the phone went on sale
to ensure that they received one. In one store, there were
thousands of people lined up, however, there were only 40 iPhone 6s
available to purchase. This shows how exclusive the product is, and
how Apple aims to produce products that are of high expense, but
good quality. High Income earners (High society): As the phones
base price to purchase outright is $900, the phone is quite
expensive, and those on low income will not be able to afford it
Those rich and who keep up with the trend buy the new iPhone each
time it comes out, just to keep up and to show that they have the
newest technology available Businessmen: Being the newest
technology available, most businessmen and women buy the iPhone due
to it s versatility and new features Health app Tips app Helps rst
time iPhone owners get started Podcast app Passbook Keynote
Synchronizes documents and data from each Apple device iCloud Helps
in organizing meetings and enables the customer to synchr onize
numerous devices together to be able to communicate and update each
device with ease Teenagers Teenagers usually want the most up to
date technology, therefore, they are a huge target audience for the
new iPhone 6 Demographics 31% of iPhone users are aged between 35
and 49 27% are aged between 25 and 34 20% are aged between 18 and
24s 46% of iPod users are aged between 13 and 17 This shows that
more children and teenagers are using iPods as they may not be
allowed to use phones yet 47% of iPhone users have a household
income of over $100k This shows that Apple customers are high
income earners as Apple products are expensive Music enthusiasts
Media and design professionals as the software available on Apple
devices is highly revered by many Stigmas developed in the 90s
about incompatibility with Macs is a huge reason why there used to
be less Mac users as opposed to PC users Apples market share and
success is predict to boom over the next 10 years as those gen X
and Y who have developed those stigmas, establish that those
problems do not exist anymore Apple does not target any specic
gender or family size, however, there are apps within Apples
database in which are gender specic Geographic Apples largest
market is the Chinese In China, many become attached to luxury
goods and worship them in means in which they must have those
products The USA and Malaysia are the cheapest places to purchase
Apple products Apple is a global company, however there are
numerous countries that are targeted as Apple has a high market
share in them: USA UK France Canada Germany Australia Japan Italy
China Behavioural Those who have purchase an Apple product are
almost certain to stick with purchasing Apple products. This is die
to growing familiar with the interface which is similar throughout
all Apple products Apple has come to nd that Apple users do not
just see an iPhone or a Mac as a phone or a computer, but a
representation of their life and a part of them Apple only does
market research on their own existing customers so they can see
what they can improve, not what other non-Apple customers want
Dimensions
35. Apple Case Study Marketing Mix Product Price Place
Promotion
36. Apple Case Study Product ! Apple provides both goods and
services The main products include phones, tablets and computers
Services include: Garage Band Keynote iCloud These services work in
conjunction with all Apple pr oducts Apple also provides support
services in most Apple stores which are called Genius Bars and they
are for help with Apple products and maintenance work ! Apple
provides both consumer and business products ! Most products that
Apple sells are usually direct to the public ! Apple has business
deals with schools and other businesses in which they supply
products and software Product Mix ! Breadth: Mac iPod iPad iPhone
Apple TV Software's ! Line: iMac MacBook/Pro/Air iPad/2/3/Air/Mini
iPod/Classic/Shufe/Nano/Touch iPhone 3G/3GS/4/4S/5/5C/5S/6/6 Plus
iOS OS X iWork ! Depth: ! iOS 2.0/3.0/4/5/6/7/8 ! OS X Leopard/Snow
Leopard/Lion/Mountain Lion/ Mavericks/Yosemite ! iPhone
8gb/16gb/32gb/64gb/128gb ! iPod 8gb/16gb/32gb/64gb ! iPad
8gb/16gb/32gb ! MacBook with Retina Display Product Life Cycle With
the introduction of the new iPhone, all other iPhones will be on
the decline, perhaps not the most recent on prior to the iPhone 6,
which is the 5C and the 5S The iPhone 5C and 5S may be nearing
maturity as they both have only bee out for a year, and the iPhone
5S is still similar to the iPhone 6, so may be still in the gr owth
stage of its life cycle As for other products, as new versions of
the same product are released, the older versions either reach
maturity or decline
37. Apple Case Study
38. Apple Case Study Place Apples products go from the
manufacturer, to the wholesaler and then nally to the retailer
which is either an Apple Store, a certied retailer such as JB Hi,
Harvey Norman, Dick Smiths etc. and online retailers such as Ebay,
Kogan and Amazon. Apples products are sold direct to the customer
at retail price. Apple headquarters is located in California (1
Innite Loop, Cupertino, CA), and there are hundreds of stores
located globally. There are over 349 Apple retailers located in
China, as the Chinese are Apples largest market. More Apple stores
are located in those cities and countries that show a larger market
with more and more expensive purchases. Apple stores and certied
retailers are usually located in shopping centers near more
upmarket retailers. Apple shops themselves are usually located in a
city's central business district as there is more foot trafc
heading in that direction and most people work closer to the city
or in the city. Being aimed to target those with higher income,
apart from being located in the CBDs of cities, Apple retailers are
located in upmarket areas of cities and built-up areas. Apple
products are marketed using selective distribution, as more
products are distributed to retailers where there is a higher
demand for Apple products, whereas a lesser amount is distributed
to retailers where there is lesser or no demand for those products
At Highpoint shopping center, Apple is located near other
electronic retailers such as Samsung which is one of their main
competitors with the Samsung galaxy. Being placed near or next to
their competitors enables there to be constant foot trafc owing
from all competitors, which may lead to new customers. Apple is a
retailer and an online retailer as they sell their products from
their stores and sell products online.
39. Apple Case Study Promotion Apple promotes their products
primarily through television advertisements, online ads, and on
billboards Most Apple products are advertised through numerous
different ads. They aim to make an ad that appeals to most segments
of the market. Their ads promote different aspects of their
products, just like these iPhone ads. They pick out certain parts
of the iPhone that can really help sell the phone, and then make a
fun ad on it. iPod packaging stays consistent as the iPods mature
and develop. Apple releases the iPods in clear packaging which
shows the consumer what the iPod looks like and what they are
purchasing. Apple packaging is very sleek and modern, and promotes
their products well because Apple products are very upmarket and
expensive. The packaging shows off the product and promotes a
higher level of technology Apple also have their products set up in
their stores for customers to trial and see how their products work
before they make up their minds in buy the product. Although Apple
do not have sales they have some offers throughout the year, or
when it comes to the end of the nancial year
40. Marketing, Business & Strategic Plan
41. SWOT Analysis To succeed in business, one must plan. A well
thought-out marketing plan is at the base of a successful business,
and it begins with a self-analysis. SWOT Analysis is key. Strengths
Weaknesses Opportunities Threats March 1, 1998
42. SWOT Analysis Internal analysis - company, customers, and
competition. Company - mission, history, finances, production,
marketing strategies (market mix), employees/staff, equipment, and
facilities. Customer analysis includes research on the buying
habits, interests, satisfaction, wants, and needs of the target
market. Demographics, geographics, psychographics, behavioral,
socio-cultural influences, market segmentation, or target
marketing. Competitive analysis = determine how the company
compares / market share. External analysis factors that can/do
impact business. Strengths and weaknesses of both direct and
indirect competition. Market share, company positioning,
reputation, products, and distribution.
43. Competitive Analysis
44. Environmental Scan Methodological look at the world that
typically includes four areas: Political, Economic, Socio-cultural,
and Technological.
45. The Marketing Plan A marketing plan is a formal document
that outlines the goals, objectives, and strategies of a company. A
marketing plan considers three questions: Is there a need for the
product? Can we market and distribute the product? What outside
influences are going to affect marketing and distribution of the
product?
54. Marketing Segmentation Separate customers and/or consumers
into smaller buying groups. Customer = purchases a good or a
service, Consumer = uses a good or service Sometimes may be same
person Four Ways to do market segmentation: 1. Demographics - race,
ethnic background, age, gender, marital status, income 2.
Geographics - where people live. 3. Psychographics - people's
lifestyles and shared attitudes, values, and opinions. 4.
Behavioral - product-related behaviors, consumer shopping patterns
(as consumers often identify themselves by the brands and products
they purchase) and usage rates.
55. What is Marketing?
56. Marketing Research Separate customers and/or consumers into
smaller buying groups. Customer = purchases a good or a service,
Consumer = uses a good or service Sometimes may be same person Four
Ways to do market segmentation: 1. Demographics - race, ethnic
background, age, gender, marital status, income 2. Geographics -
where people live. 3. Psychographics - people's lifestyles and
shared attitudes, values, and opinions. 4. Behavioral -
product-related behaviors, consumer shopping patterns (as consumers
often identify themselves by the brands and products they purchase)
and usage rates.
57. OBJECTIVE: Form own company in groups of three (3)
Teamwork/collaboration project DELIVERABLES: 1. Company Logo and
advertising tagline 2. Mission Statement 3. 1-page SWOT Analysis of
your product / brand 4. 1-Page Marketing Plan for launching company
Class Assignment: Form own company