basics of marketing student version 2 (1)
DESCRIPTION
MarketingTRANSCRIPT
MarketingBasics & Fundamentals
Anne Leinovaara-Matomäki
Turku University of Applied Sciences
© Anne Leinovaara-Matomäki
MIND MAPLearning Diary Task
Create, draw, a mind –map of the course theme / title. What it brings to your mind ??? What do you know about the subject ? What would you like to learn during the course ? What is known…any practical examples of your own ? What is new ? Any connections to other subjects, synonyms, definitions ? Boundaries, pros & cons, advantages & disadvantages ? Why do we study it ? Importance ? Meaning ? Etc…….
© Anne Leinovaara-Matomäki
Marketing, Definitions
© Anne Leinovaara-Matomäki
Marketing , DefinitionsWhat is Marketing
© Anne Leinovaara-Matomäki
Marketing, DefinitionsWhat is Marketing?
© Anne Leinovaara-Matomäki
Marketing , DefinitionsWhat is Marketing ?
“Marketing is not and event, but a ___________…. It has beginning, a middle, but never an end, for it is a ________. You improve it, perfect it, and even pause it. But you never stop it completely “ - Jay Conrad Levinson
© Anne Leinovaara-Matomäki
What is not Marketing ?
“Marketing is not the art of finding clever ways to dispose of what you make. ----------------------------------------. It is the art of helping your customer become better off. The marketer’s watchwords are quality, service and value. “ -(Philip Kotler)
Customer does not necessary want to buy what we are selling !
© Anne Leinovaara-Matomäki
Learning Diary
Task: Find out still some other Marketing definitions.
Try to comment on your own what is typical and common for these definitions, what is interesting for you etc. own viewpoints .
© Anne Leinovaara-Matomäki
Marketing as a Business Philosophy
1) 2) 3)
– Give examples of the above (learning diary).
© Anne Leinovaara-Matomäki
Why is Marketing important ?
What do you think? Why to study Marketing ?
© Anne Leinovaara-Matomäki
The Objectives of Marketing
1) 2) 3) 4) 5) 6) 7)
© Anne Leinovaara-Matomäki
How Marketers fullfill the Objectives There are many ways and many tools and methods Like 4 P, Marketing mix etc. ,which are learnt during
the course Marketers must success in pricing, delivery,
promotion, product development, finding out the demand and creating it etc., etc.
Nowadays customers are becoming more and more demanding (empowered customers, consumer movement, boycots etc.) – so marketers must be innovative and able to change. ”Change or die”.
© Anne Leinovaara-Matomäki
Change of Marketing Traditional view
– Marketing is one function of the company
– The goal is to sell– Specialised
professionals– Product features
are important– Campaigns
Current view– Way to think and do
business– The goal is to create a
profitable customer relationships
– The whole organisation participates
– Continuous function– Customer relationship
marketing– Societal marketing
© Anne Leinovaara-Matomäki
Eras of Marketing
Production (& product) Prior the 1920s
Sales
Marketing
Relationship
Networks….. now
© Anne Leinovaara-Matomäki
Eras of Marketing, another set of terms
© Anne Leinovaara-Matomäki
Marketing Mix 4 P’s + 3
________ ________ ________ ________ Processes (between customer and company
and inside the company) People (personnel) Physical environment / evidence (things that
customer will see)
© Anne Leinovaara-Matomäki
Fields of Marketing Management Leadership and Management
– Internal marketing Competition
– Marketing research Customer
– Consumer behaviour Production Pricing Distribution Promotion
© Anne Leinovaara-Matomäki
Important tasks and parts of Marketing
Customer analysis , ___________, estimation of demand, __________, area evaluation etc.
Selling (products, _______, _______, _________, ________, ________, ________ etc.) Note B-to-B and B-to-C aspect.
Product and service planning (_____) Pricing (together with the __________) Distribution (_________)
© Anne Leinovaara-Matomäki
Marketing , Marketing researchCustomer analysis
Customer ________ Consumer _________ Market ________________ Customer __________ Market ________________
© Anne Leinovaara-Matomäki
Marketing, Selling
________ ________ ________ ________ Sales force management + training Customer relations Dealer + retailer relations
© Anne Leinovaara-Matomäki
Marketing, R&D, Product and service planning
______ marketing ______ positioning __________ ________ features, and options ________ style etc. (colors, shapes,
symbols) _________
© Anne Leinovaara-Matomäki
Marketing, Pricing
D C C S M U W R
Learning diary / discussion
Think about some example company (e.g. a company whose customer you are) , and evaluate what prising methods they are using and why ?
© Anne Leinovaara-Matomäki
© Anne Leinovaara-Matomäki
Marketing, DistributionChannel
Warehousing Inventories __________ Coverage ____________ Sales territories Transportation (methods, modes, insurances,
agreed terms e.g. Incoterms etc.)
© Anne Leinovaara-Matomäki
Marketing, Opportunity analysis
Assessing ________ Assessing ________ Evaluating and estimating _______ _____/ _______ / ________ / analysis
© Anne Leinovaara-Matomäki
Marketing, Competitor Analysis
Who are the actual competitors ? ___________________ ? Who are our most intense competitors? Less
intense, but still relevant? ____________________ ? Can these competitors be grouped into strategic groups on the basis of
their assets, competencies, strategies etc.? Competitors' ___________________? Competitors SWOT ? Who are the potential new competetive entrants ? What are their
barriers to entry? Is there anything that can be done to discourage them (e.g. standards).
Evaluating the competitors What are their objectives and strategies? Their level of commitment?
_____________ ? Do they have cost advantage or disadvantage ? Their ________ and _________ strategy? Most successful /un-successfull competitors over time and why ? What leverage points ( our weaknesses or customer porblems or unmet needs) could they expoloit ?
© Anne Leinovaara-Matomäki
Marketing Audit(SWOT)
Are markets ________ _________ ? Is the _______ _________ well among
competitors? What is the ____________? (And the trend in
it?) Are present _________ ___________
reliable and cost effective? Does the firm have an effective ________
and _____________ in general?
© Anne Leinovaara-Matomäki
Marketing Audit
Does the firm conduct ______________? (What type?)
Does the firm have an _______________, ________ and ________ strategy? What about _______in general ? (_____, ______)
Are product _______ and _______ _______ good?Are firm’s products / ________ _________ appropriately?
© Anne Leinovaara-Matomäki
Marketing Audit
Are marketing_______ and ________ effective?
Do the firm’s managers have _______ _______ and ______ ?
What about the ___________ systems?
Environment analysis FIVE FORCES Five forces Excersise
Task / Learning diary: Try Five Forces analysis tool to another type of industry, e.g. airplane / travelling industry.
© Anne Leinovaara-Matomäki
© Anne Leinovaara-Matomäki
Keep in mind
The purpose of a business is to _____ _________ and to profit from it – so there is only one starting point THE CUSTOMER. The customer ultimately defines the business.
The business will start out with the ______, ______ and _______ of a customer.
And it is not necessary to ________ but to _____ _______.
So, find out who is the customer, where is the customer, what does the customer _____ and _____ ?
And remember the market rarely is where the inventor first thinks it will be.
© Anne Leinovaara-Matomäki
Fundamental aspects / questions
What is our business (_____, ______, concrete _______) systematic analysis of all existing products, processes, ______, _______, distribution channels, value added, ________, _______ etc. (4 P)– can only be answered by looking at business both from _______ and ______.
Should not only be asked when company is in trouble.
What will our business be _______________? What
© Anne Leinovaara-Matomäki
Fundamental aspects
Take into account fierce competition and ever rapid changes (product life cycles etc. – shorter life span) in many industries and branches (note on the other hand other possibilities, too).
Need for ever increasing ________ (______ ______ solutions).
Marketing
How to deepen the customer relationships more?
© Anne Leinovaara-Matomäki
Business Plan
All the objectives (and previously said), must be formalized into a Business Plan !
_________ objective ________ + other resources (physical, human etc.) ________ objective ________ objectives _________ _________ (environmental questions,
ethics etc.) Profit requirement (what ever the profit is – e.g.
NPO’s).
© Anne Leinovaara-Matomäki
Marketers and ProspectsWho Markets ?
A marketer
, a prospect.
© Anne Leinovaara-Matomäki
Core consepts
Needs, wants and demands (Maslow’s hierarchy of needs).
© Anne Leinovaara-Matomäki
Different types of needs
1) (customer wants
2) ( car whose
3) (customer expects
4) (customer would like
5) (customer wants to be
© Anne Leinovaara-Matomäki
Needs
© Anne Leinovaara-Matomäki
Different types of demand
Marketers try to influence the level, timing and composition of demand to meet the organization’s objectives. Different demand types require different actions and often medias as well.
1) 2) 3) 4)
© Anne Leinovaara-Matomäki
Different types of demand
5) 6) 7) 8)
IN EACH CASE MARKETERS MUST IDENTIFY THE UNDERLYING CAUSE(S) OF THE DEMAND !! (WHY)
© Anne Leinovaara-Matomäki
4 P, Product
What is a product and a service ? – Similarities, differences ? Definitions ?
Note: Marketing of goods, services, places, ideas, people, events, ideology, organizations, cities, countries, NPO’s, projects, processes, information etc. ….
© Anne Leinovaara-Matomäki
4 P, Product
Product: Service: Product- service combination
(maintenance) Produce-service continuum: device that
helps marketers to visualize the differences and similarities between goods and services
© Anne Leinovaara-Matomäki
Classifying goods and services of consumer and business markets
Consumer products ,products destined for use by ultimate consumer
Business products : those that contribute directly or indirectly to the output of other products for resale. Also called industrial or organizational products.
© Anne Leinovaara-Matomäki
Types of Consumer Products
Convenience product:
Shopping product:
Unsought product:
© Anne Leinovaara-Matomäki
Types of Consumer Products
Specialty product:
GIVE EXAMPLES OF ALL THESE TYPES OF PRODUCTS (learning diary)
© Anne Leinovaara-Matomäki
Examples of different types of consumer products
© Anne Leinovaara-Matomäki
4 P, Product
When making product decisions company has to decide:
1)2)3)4)5)6)7)8)
© Anne Leinovaara-Matomäki
4 P, Product
Product is a bundle of tangible and intangible attributes that a seller offers to a potential buyer and that satisfies the buyer’s needs and wants.
Physical product (core product) Additional elements Service + Maintenance (importance all the time growing) Core product (problem solving elements, core benefits
that consumers are really buying when they obtain the product), actual product (parts, quality level, features, design, brand, packaging etc.), Extended product (additional consumer services and benefits)
© Anne Leinovaara-Matomäki
4 P, Product
© Anne Leinovaara-Matomäki
4 P, Product
BOSTON MATRIX is a tool to analyze the product portfolio !!!
Product portfolio – managing products through their life cycles (PLC)
© Anne Leinovaara-Matomäki
4 P, ProductProduct line decisions
© Anne Leinovaara-Matomäki
4 P, ProductProduct line strategy
© Anne Leinovaara-Matomäki
Services
© Anne Leinovaara-Matomäki
4 P, ProductNPD New Product Development
New product development NPD Stages Relation to the R&D function
© Anne Leinovaara-Matomäki
4 P, Product
BRAND Branding issues
© Anne Leinovaara-Matomäki
4 P, Place ; Distribution, Channels
Decisions about: Physical and imaginary channels
1)2)3)4)5)6)7)
© Anne Leinovaara-Matomäki
4 P, Promotion
Blending together various elements of promotion to communicate most effectively with the target market
Promotional elements include: advertising, sales promotion, public relations, personal selling, direct marketing, product placement, sponsorship decisions, trade fairs, test marketing, on-the-spot marketing, business gifts, viral marketing, buzz marketing, guerilla marketing…..lots of methods and modes…..etc., etc.
© Anne Leinovaara-Matomäki
4 P, Price
Decisions of methods of setting profitable and justifiable price.
Price
© Anne Leinovaara-Matomäki
Price
© Anne Leinovaara-Matomäki
© Anne Leinovaara-Matomäki
Price; Prisoner’s Dilemma
Intense competitive rivalry can evolve into what is known as prisoner’s dilemma. In such situations, downward price moves by one competitor force “follower moves” by other competitors in order to minimize lost profits. Actually all competitors would be better of if none cut prices to begin with.
Learning Diary / Task
Think about some example company (e.g. a company whose customer you are) , and evaluate what prising methods they are using and why ?
© Anne Leinovaara-Matomäki
© Anne Leinovaara-Matomäki
Different types of Market situations, competition climates
Monopoly Monopolistic competition Oligopoly Oligopolistic competition
© Anne Leinovaara-Matomäki
Markets
Traditionally ”market” was a physical place where buyers and sellers gathered to buy and sell goods.(Market place, square). Economist description : collection of buyers and sellers who transact over a particular product or product class. Modern view : Five basic markets and their connecting flows / interactions.
© Anne Leinovaara-Matomäki
Markets
Manufacturers go to the ___________ markets (tuotannontekijämarkkinat) (___________, ______, _______markets), buy the resources and turn them into _____ and ________, and then sell the finished products to ________________, who sell them to the _____________. Consumers sell their labor and with that money pay their goods. The ________ collect taxes from both the manufacturers and consumers and uses the money to to provide public services. Each nations economy and global economy consits of these complex interactions through exchange processes.
© Anne Leinovaara-Matomäki
Markets
On the other hand, marketers often use the term Market to cover various groupings of customers. (Target market). In that view sellers are constituting the industry and the buyers are constituting the markets. E.g. Consumer markets, business markets, global markets, nonprofit and governmental markets.
© Anne Leinovaara-Matomäki
Markets
Today we can also of course distinguish the __________ and __________ (digital, web etc. possibilities to buy).
Sometimes also the term _________ is used to describe a cluster of complementary products and services etc. that are closely related.
© Anne Leinovaara-Matomäki
Target market
Group of people toward whom the firm decides to direct its marketing efforts.
Important to know this well when doing the segmentation and positioning.
In a Marketing-Mix, company blends the four strategy elements of marketing decision-making Product, Price, Place, Promotion in a way that satisfies the chosen target markets.
© Anne Leinovaara-Matomäki
Segmentation and Positioning+ Perceptual Maps
© Anne Leinovaara-Matomäki
How Business and Marketing is Changing 1) 2) 3) 4) 5) 6) 7) 8) 9)
© Anne Leinovaara-Matomäki
The Holistic Marketing consept
More complete, cohesive approach that goes beyond traditional applications. Based on development, design and implementation of marketing programs, processes and activieties that recognizes that ”everything matters”. Integrated perspective to the complexive issues. Four components: relationship marketing, internal markeing, integrated marketing and social responsinility marketing.
© Anne Leinovaara-Matomäki
Four P’s and four C’s
Product, price, place, promotion Customer solution, customer cost,
convenience, communication
© Anne Leinovaara-Matomäki
Relationship Marketing
Relationship Marketing
Erillinen kalvosetti
© Anne Leinovaara-Matomäki
Marketing, Competitor Analysis
Who are the actual competitors ? ___________________ ? Who are our most intense competitors? Less
intense, but still relevant? _________________? Can these competitors be grouped into strategic groups on the basis of
their assets, competencies, strategies etc.? Competitors ____________ ___________? Competitors SWOT ? Who are the potential new competetive entrants ? What are their
barriers to entry? Is there anything that can be done to discourage them (e.g. standards).
Evaluating the competitors What are their objectives and strategies? Their level of commitment?
Cost structure ? Do they have cost advantage or disadvantage ? Their image and positioning strategy? Most successful /un-successfull competitors over time and why ? What leverage points ( our weaknesses or customer porblems or unmet needs) could they expoloit ?