marketing - basics: products, customers

8/10/2019 Marketing - Basics: Products, Customers

1/49

MarketingRemus HIRSCHKORN

Andrei UTAAndrei STOICA

Liviu CIULINARUMarin VIRDOL

Mihai CEPOIMalina RADESCU


2/49

Topics

Define marketing Marketing context

Marketing evolution Marketing process Marketing environment Global marketing


3/49


4/49

Definition

Management philosophy according to which a firm's goalscan be best achieved through identification and satisfactionof the customers' stated and unstated needs and wants.

The management process through which goods and

services move from concept to the customer. It includesthe coordination of four elements called the 4 P's ofmarketing:

1. identification, selection and development of a product ,2. determination of its price ,

3. selection of a distributionchannel to reach the customer's place , and4. development and implementation of a promotional

strategy .


5/49

Context


6/49

The Production era

Between the 1860s and 1920s Creation of a supply of low-cost products

High level of unfulfilled demand Mass producing goods was a primary driver of sales

1. Can we produce the product?2. Can we produce enough of it?


7/49

The Sales era

Between the 1920s to the 1940s Mass production had become commonplace Competition had increased Little unfulfilled demand Little attention paid to whether the product

actually was needed

Little regard to customer satisfaction1. Can we sell the product?2. Can we charge enough for it?


8/49

The Marketing era

After World War II Late 1940s The variety of products increased Hard selling no longer could be relied upon to generate

sales. Customers could afford to be selective and buy onlythose products that precisely met their changing needs,and these needs were not immediately obvious

1. What do customers want?2. Can we develop it while they still want it?3. How can we keep our customers satisfied?


9/49

Evolution


10/49

Marketing Process Needs, wants & demands Market offering Customer satisfaction Customer delivered value


11/49

Marketing Process

Control(measure performance, evaluate results, take corrective actions)

Implementation(marketing mix decisions)

Planning(marketing plan & strategy, objectives)

Analysis(customer needs, opportunities, market research, competitors)


12/49

Needs, wants & demands:Maslows Hierarchy of Needs


13/49

NEEDS

+ personality, taste, knowledge etc.

WANTS

+ ability to pay

DEMANDS

Products & services satisfy either needs , wants or demands


14/49

Market offeringMarket offering represents the product or service that is sold into the

marketplace. A product is anything that can be offered to a market for attention,acquisition, use or consumption and that might satisfy a want orneed.Ex: physical objects(goods), services, persons, s.o..

A service is a form of product that consists of activities, benefits orsatisfactions offered for sale that are essentially intangible and donot result in the ownership of anything.Ex: banking, tourism, home repairs, s.o..


15/49

Consumer Products & BusinessProductsConsumer products

Convenience products

Buy frequently & immediately;Low priced;Mass advertising;Many purchase locations.

Shopping products

Buy less frequently;Higher priced;Require some effort in purchasingFewer purchase locations.

Speciality ProductsSpecial purchase efforts;High price;Brand identifications-special features;Few purchase locations.

Unsought productsPurchased when a sudden need occur Needed to quickly solve the problem;Not normally think of buying;


16/49

InstallationsBuildings, warehouses

Major pieces of equipment

Business products

Accessory EquipmentUsed in productionUsed in office activities

Raw materialsBasic natural materials used in making products

Component partsFinished items that become part of final product

Process materials

Used in production of other products

MRO supplies (maintenance, repair, operating)Facilitate production and operating but dont become part of finished product

Business servicesIntangible products used by organizations in their operations

(ex: lawyers, consultancy, accounting etc)


17/49

Customer satisfaction

Customer satisfaction with a purchase depends upon the products

performance relative to the buyers expectations.

In the marketing process, customer satisfaction is part of the control stage.It is often seen as a KPI (key performance indicator) within a business.

Tracking customer satisfactionComplaint & suggestion systemCustomer satisfaction surveysGhost shopping (Mystery s hopping)


18/49

Customer delivered valueCustomer delivered value or customer perceived value represents the differencebetween the total obtained benefits ( total customer value ) according to thecustomers perception and the cost that he had to pay for that ( total customer cost ).

Total CustomerValue

Product value Services value Personnel value Image value

Total CustomerCost

Monetary cost Time cost Energy cost Psychic cost

Customerdelivered value

Greater customer delivered value influences the customers decision topurchase a product or influences him deciding between similar products.


19/49

MarketingEnvironment Definition Types of marketing environments Examples


20/49

What is marketingenvironment?


21/49

DemographicTrends

ChangingAge

Structure

ChangingFamily

Structure

GeographicShifts

IncreasedEducation

Populationdiversity

(Growing Ethnicand RacialDiversity)


22/49

Demographic EnvironmentGenerational marketing

1946 -1964 Baby boomers

1965 -1976 Generation X

1976 -1994 Generation Y

1995 now Generation Z


23/49

Demographic Diversity -Based Advertising


24/49

Economic Environment

Changes in Income

Income Distribution Upper class Middle class Working class Underclass


25/49

Income Distribution


26/49

Technological Environment

Rapid change

Provides new markets and new opportunities

Internet Medicine Miniaturization Weapons Credit cards Communication

New forms of comunication


27/49

Marketing in a tech world


28/49

The social and cultural environment

What is social environment?

What is cultural environment?

How does cultural and social factorsinfluence the marketing plan?


29/49


30/49

The legal and political environment

What is legal environment?

What is political environment?

How does legal and political factorsinfluence the marketing plan?


31/49


32/49

Global Marketing


33/49

What is global marketing?

The process of conceptualizing and thenconveying a final product or service worldwide

with the hopes of reaching the internationalmarketing community.

Important for products of universal demand:

food, automobiles.


34/49

USA vs. China vs. Japan


35/49

Global marketing and the automobileindustry

Global competitive marketplace. Global alliances. Global emerging environment.


36/49

Ways of entering global markets

Direct Export Indirect Export Licensing

Franchising Contracting Manufacturingabroad

Joint Venture


37/49


38/49

Basic strategies in developing a globalmarketing mix

Product

Price

Place

PromotionPackaging

Positioning

People


39/49


The most appropriate and suitable product forcustomers demands.


40/49


The most competitively advantageous price .


41/49


Chose a good and accessible place fortargeted customers.


42/49


Make sure that the chosen way of promotioncorresponds to the product sold.


43/49


Develop a packaging as if you were a thecritical and pretentious consumer.


44/49


Think continually about how you arepositioned in the hearts and minds of yourcustomers stand out in the crowd!


45/49


Develop the habit of thinking in terms of thepeople inside and outside of your business.


46/49

1st Case Study

When was marketing invented ? King Frederick II of Prusia (the Great, 300y ago) Wonder plant from South America (the potato) By force ? No! The royal vegetable Worth guarding => worth stealing The potato flourished and has lived on as a staple of

the local cuisine ever since.


47/49

2nd Case Study

5 marketing strategies of success for a $3 billion business Know your customer

Music, music lovers, hip-hop music lovers. recreate excitement of being in the studio co Founder by Dre (aka Dr. Dre)

Differentiate your offering Not only music but a fashion accesory Two powerful value propositions for their costumers

Sell benefits, not features Launched with music videos and celebrity endorsements

Forget price, compete on value

$400 product on a existing market with $20 alternative Exclusivity using celebrities (similar to VIP club) => proud Diversification

Sound technology into HP computers; into Chrysler 300s, Dodge Chargers, andFiat 500s (all owned by Chrysler)


48/49

Time to write down


49/49

marketing - basics: products, customers

Documents