Introduction to Marketing

What is Marketing? Marketing is a management process responsible f or identifying, anticipating and satisfying customer requirements profitably What is a market A market is a number of potential customers, e.g. The middle east market The teenage market

Introduction to Marketing
Marketing concept and its alternatives? There are poss ible approaches to selling a product 1. Sales orientation The major task is to use persuasive communication and aggressive promotional policies to entice a customer The sales team and sal es manager is the focal point of the business The belief is good sales teams can sell anything to anybody The organization invests heavily is the sales techniques such as personal selling, advertising and sales promotion in order to emphasize product differentiation Drawbacks of sales orientation There is no attempt to identi fy customer needs or create products that satisfy them Organization relies heavily on sales techniques

Introduction to Marketing
2. Production orientation The business focuses on making as many units as possible High volume production results in economies of scale and profitability is improved The approach is used when the market is growing rapidly Major task of management is to peruse improved production and distribution techniques Drawbacks of production orientation If production exceeds demand too much may be produced and remain un sold The approach does not take into account of the customer preferences

Introduction to Marketing
3. Product orientation The business centers its activities on continually improving and refining its products assuming that customers simply wants quality products Drawbacks of product orientation The business concentrates on its product and as a result the product may not fulfill the customer requirements 4. Marketing orientation The organization will first understand the needs of the customer and will then adopt a strategy producing a product with the benefits and features to fulfill these needs Benefits of marketing orientation When the organization is able to meet the needs of customers effectively and efficiently it gains the competitive advantage over its competitors

Introduction to Marketing
Understanding the marketing environment One popular technique f or analyzing the general environment is the PESTEL analysis Political Political factors can have a direct effect on the way the business operates. Decisions made by politicians affect our every day l ives Economical All businesses are affected by the economical factors nationally and globall y. E.g. economy wi ll dictate how consumers wi ll behave within society in relation to the business cycle.

Introduction to Marketing
Business cycle
Peak or boomUnemploymen t is low and demand is high

Slump or TroughUnemployment is high and consumer demand is low

Introduction to Marketing
Social These are forces within society such as family, friends and religion that affect our attitude interests and opinion in turn influencing our purchases. In Japan the fall of birth rates has affected the sale of toys. Social influences that should be monitored Population demographic- composition of the population Income distribution Social mobility of people Lifestyle changes Consumerism- purchasing of commodities in greater quantities Levels of education

Introduction to Marketing
Technical Technological change can influence the following; Production of new products, e.g hybrid cars Production of goods cheaply new methods of distributing goods and services Methods of communicating Ecological This has become increasingly important in recent years and effects the a marketing oriented company in the following ways; Public is more aware of ecological issues and influence the choice of their products Pressure on natural resources has influenced the products offered by some industries. E.g. fishing industry or mining

Introduction to Marketing
Legal Regulations governing businesses are widespread. They include those on health and safety, information disclosure, dismissal of employees, vehicle emissions and use of pesticides. E.g. The UK smoking ban in public places has resulted in the UK tobacco companies exploring new products such as the legal electronic cigarette

Introduction to Marketing
Consumer behavior and stages in the buying process Research has shown that consumers go through a five stage- decision making process in any purchase Stages in the bu ying process Need recognition and problem awareness Information search Evaluation of alternatives Decision to Purchase Post purchase evaluation/ cognitive dissonance

Introduction to Marketing
1. How society influence the consumer behaviour and recognition for need
Ways society influences individuals

family

Reference groups

Social class

culture

A family influences Child. E.g a child Buys A car like the father drove

Peer group Peer groups dress in a similar

Individuals that identify themselves With a certain class

Cultutal norm such as dress code. Nigerians

Introduction to Marketing
How Maslows Hierarchy of needs inf luence the consumer behaviour and recognition for need
Need fulfilled Achieve for oneself Prestige, respect from others Love from friends
Self actualization

Meat consumed Try other types or go vegetarian The best steak Sunday roas t for family Meat from s afe source Meat from any source

Esteem

Love

Danger avoidance Food, heat, li ght

Safety

Physiological

Introduction to Marketing
2. Information search Sources of customer information Personal sou rces- family, friends, neighbours Commerci al sources- adverts, sales people Public sou rces- newspaper, radio, consumer organisations Experimental sou rces- handling, examining, using the product 3. Evaluation alternatives The total number of products will be filtered down to a manageable number. The alternatives will be evaluated against the decision criteria e.g. when buying a new car the individual may gather information on cars available on the market. They may then visit the show room and have a test drive on limited cars.

Introduction to Marketing
4. Decision to purchase The outcome of the eval uation may be; Buy the produc t now Not buy the produc t at all Defer the purc hase of the produc t Start the buying process again The decision to purchase may involve the following people Initiator- wife identifies need for second family car Gatekeeper- husband starts process by collecting brochures about cars Influencers family friend- they have a nic e 320 ML Mercedes Benz Deciders- husband make final decision regarding which product Approvers- the children approve and authori se final decision Buyer- husband carri es out final price negotiation and buys

Introduction to Marketing
4. Post purchase evaluation The buyer evaluates the success of the purchase and add the positive and negative elements to a store of information which will assist future purchase decisions 5. Evaluation of 5 stage process The model implies that customers pass through all stages in every purchase. However in more routine purchases customers often skip or reverse some of the stages

Introduction to Marketing
Factors affecting the buying decisions Social/cultural- reference groups, role modelling, family and culture Personal influences- age, family status, occupation, economic circumstances and lifestyle Psychological influences- motivation, perception, learning, beliefs and attitudes Buyer behaviour This is influenced by the type of consumer good Fast moving consumer g ood- cheap and purchased regularly e.g bread- these are habitual purchases and require little decision making Durable goo ds- expensive and not regularly purchased, e.g TV and car. Influencing factors include fashion, new technical features or old product wearing out.