Class 2

KEY CONSUMER MARKETS

Key Customer Markets

Consumer goods and

services such as soft

drinks and cosmetics,

spend a great deal

of time trying to

establish a superior

brand image.

Consumer Markets


Companies selling

business goods and

services often face well-

trained and well-

informed professional

buyers who are skilled in

evaluating competitive

offerings.

Business Markets

Business markets


Companies face

challenges and

decisions regarding

which countries to

enter, how to enter the

country, how to adapt

their products/services

to the country, and how

to price their products.

Global Markets

Companies selling to

these markets have to

price carefully because

these organizations

have limited purchasing

power.

Nonprofit/ Government Markets


CORE MARKETING

CONCEPTS

Core Marketing Concepts

• States of felt deprivation

• Physical: Food , Clothing, Warmth, Safety

• Social: Belonging & Affection

• Individual: Knowledge & Self Expression

Needs

• Form that human needs take as shaped by culture & individual personality.

Wants

• Human wants backed by buying power.Demand

• Dividing the markets into segments of customersSegmentation

• Which segment to go afterTargets Markets

• Consumer’s perception of the product.Positioning



• Offering: Intangible Value proposition made physical by an offering.

• Brand: Offering from a known source

Offerings & Brands

• Value: Sum of perceived tangible or intangible benefits and cost to customer.

• Satisfaction: Reflects a person’s judgments of products perceived performance in relation to expectations.

Value & Satisfaction

• Communication Channel:

• Distribution Channel

• Service Channels

Marketing Channels


• Channel stretching from raw material to components to final products that are carried to final buyers

Supply Chain

• Includes all the actual and potential rival offerings and substitute a buyer might consider.

Competition

• Task Environment

• Broad Environment

Marketing Environment

MARKETING MIX

Marketing MIX

Marketing Mix is defined as the elements that an

organization controls that can be used to satisfy or

communicate with customers.

4 Ps of Marketing

Product

•Product Variety

•Quality Level

•Design

•Packaging

•Warranties

•Product Lines

•Branding

•Services

A product, service or idea is that which

satisfies the needs & wants of the customers

Price

1. List Price

2. Discounts &

Allowances

3. Payment period

4. Credit terms

Price is the amount a consumer pays in exchange for the product or

service.

Promotion

Sales Promotion

Advertising

Sales Force

Public Relations

Direct Marketing

Promotion activities are meant to communicate &

persuade the target market to buy the company’s

products.

Place

Channels

Coverage

Assortments

Locations

Inventory

Transport

Place represents the location where a

product can be purchased.

People

Physical Evidence

Process

Extended 3 Ps

People

All people who

directly or indirectly

influence the

perceived value of the

product or service,

including knowledge

workers, employees,

management and

consumers.

Physical Evidence

The direct sensory

experience of a

product or service

that allows a

customer to

measure whether

he has received

value.

Physical Evidence

Packaging.

Internet/web pages.

Paperwork (such as invoices, tickets and despatchnotes).

Brochures

Furnishings.

Signage (such as those on aircraft and vehicles).

Uniforms.

Business cards.

The building itself (such as prestigious offices or scenic headquarters).

Process

Procedures, Mechanisms and Flow of Activities which lead to

an exchange of value

7Ps & 7Cs

The 7Ps The 7 Cs

Organization Facing Customer Facing

Product Customer

Price Cost

Place Convenience

Promotion Communication

People Caring

Process Co-ordinated

Physical Evidence Confirmation

Marketing Debate:

Take a Position!

Does marketing shape consumer needs?

or

Does marketing merely reflect the needs and wants

of consumers?