Marketing

• Marketing


  How an organization or an individual sells its product or services
• American Marketing Association definition

  The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
• UK Chartered Institute of Marketing definition


  The management process responsible for identifying, anticipating and satisfying customer requirements profitably
• Simplest term for marketing

  The delivery of customer satisfaction at a profit
• Chief Sales Executive


  • Point person or head of the marketing department
  • Formulates policies
  • Interprets sales policies
  • Administers sales activities
• Different types of sales organizations

  • Line organization
  • Divided by regions
  • Divided by products
  • Customer type organization
• Marketing functions


  • Market research
  • Planning for sales
  • Advertising and promotion
  • Selling
  • Inquiries and orders
  • Servicing/aftersales
• Customers essentially do not purchase products, but rather they purchase the certain benefits they can obtain from these products
• The business planning process

  • Concept development
  • Research
  • Strategy formulation
  • Strategy preparation
  • Strategy review and implementation
• Mission


  Provides a long-term vision for the business but has to be translated into operational terms for effective management
• Objectives


  Activities that are essential in implementation of the company's aim
• Aims


  The purpose or goals of a company that usually do not change over a long period of time
• Mission statement


  A written declaration of an organization that defines its purpose that normally remains unchanged over time
• Characteristics of a good mission statement

  • Long time scale
  • Definition of the business scope
  • Customer-oriented perspective
  • Must inspire and motivate
  • Realistic
• Internal environment


  • Factors present WITHIN a business that can be controlled by the business itself
• External environment


  • Factors that are present OUTSIDE a business that are harder or cannot be controlled
• Environmental analysis tools


  • Porter's value chain
  • McKinsey's 7S framework
  • PEST analysis
  • Porter's five forces of competition
  • SWOT analysis
• Steps in performing market segmentation

  • Define the target market
  • Evaluate target area of preference to focus on
  • Establish dimension and select a segment
  • Assess if the selected segment meets the condition of a useful segmentation
  • Record customers' expected purchasing behavior
• Characteristics of marketing organizations (C's of marketing)

  • Consumer content
  • Company capabilities
  • Competitive context
  • Collaborating channels
  • Communicating campaigns
  • Controlling costs
• Measurable


  • Is it possible to accurately estimate the size of the market?
• Compatible or Appropriate


  • Is the value offered in the product compatible with the selected segment?
• Accessible


  • Are the customers to be targeted obtainable or can easily be reached?
• Unique


  • Does the market segmentation possess distinct characteristics?
• Substantial


  • Will it allow the business to generate reasonable profit?
• Steady and predictable


  • Does the segment have the ability to be stable and predictable?
• Record customers' expected purchasing behavior


  1. Predictive techniques must be used to estimate the lifetime customer value

  2. Product purchase frequency

  3. Expected purchase cycles

  4. Collective spending levels

  5. Customer loyalty and support
• Characteristics of Marketing Organizations (C's of Marketing)

  • Consumer Content
  • Company Capabilities
  • Communication
  • Competition
  • Cross-Functional Contact
  • Community Contact
  • Competitive Intelligence
• New Product


  To expand its target market by offering a wider range of product choices for customers
• Existing Product


  It is more practical to enhance an existing product than to create a new one
• Marketing Matrix/Mix (7)


  • Product
  • Place
  • Price
  • Promotion
  • People
  • Process
  • Physical Evidence
• Consumer Behaviour


  The study of individuals, groups, or organizations and the process they use to select, secure, use and dispose of products, services, experiences on the consumer and society
• Factors that influence consumer behavior

  • Cultural
  • Social
  • Personal
  • Psychological
• Classification of a product

  • Industrial Product
  • Consumer Product
• Industrial Product


  • Materials and Parts
  • Capital Items
  • Supplies and Services
• Consumer Product


  • Convenience products
  • Shopping products
  • Specialty products
• Product Mix


  • Product Positioning
  • Branding
  • Packaging
  • Labeling
• Levels of packaging


  • Primary packaging
  • Secondary packaging
• Implications of product mix in different PLC stages

  • Product
  • Pricing
  • Distribution
  • Promotion
• Product Portfolio Analysis


  • Boston Matrix
  • GE Multifactor Matrix
  • Ansoff's Matrix
• On top of all the strategies, tools and techniques mentioned earlier, there is one more essential factor in marketing which involves the customers known as Relationship Marketing