The Marketing ConceptApril 12th, 2013

Participant’s manual

12013 Level UP - Lebanon

Seminar objectives

1. What is Marketing?

2. How it developed into today’s science?

3. Learn the golden pillars in Marketing

4. How you can build TRUST with your clients?

5. How Marketing segmentation and positioning will help your Strategy?

6. How IMC help boosting your image?

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Marketing Principles

NATURE & SCOPE OF MARKETING:

* Social & human sciences:sociology, psycho, political* business sciences:stat, mgt, eco, fin, acc

Purpose? ingredients to whom? Which people?Concept? taste / odor / features

Where? / How to access? package / label Which stores?

cost / priceAwareness / promo?

Idea Product Market

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Marketing: is simply to create a consumer satisfying: Product - Price it - Promote it - Place it.

Marketing is a customer-oriented process by which companies create value for customers and build strong customer relationships to capture customers’ value in return through satisfying their needs & wants

Marketing Principles

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Production concept

Selling concept

Marketing concept

Social Marketing concept

Marketing Management Orientations

The Marketing evolution

“Sales” Vs. “Marketing”

SALES MARKETING

Seller focuses on his interestsMarketer focuses on client’s

interests

Seller focuses on making more volume and more money

Marketer focuses on “making” clients whom will bring more money

Selling is usually short-range (hit & run)

Marketing is long-term used to build trust

Money generated from sales go back to make more sales, more volume and more $

Money generated from sales go to R&D to make a “better product”.

“To sell what we make” “To make what we sell”

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Successful Relationships

1. Customer

value

2.

High level of

customer satisfaction

3.

Strong sense of customer

trust

4.

Customer retention

Customer Value, Satisfaction, Retention and Trust

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The golden pillars in Marketing

1. Customer value: is to provide customer with added value not easily available at competitors (differential advantage)

• Value is the ratio of perceived benefits acquired versus what has been paid.

2. Customer satisfaction: Is the individual’s perception of the performance of the product in relation to his expectation

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3. Customer retention:

The objective of providing customers with “value” and “satisfaction” is to “retain” customers and make them “loyal”.

LOYALTY, WHY?– They buy more products– They are less price sensitive– Servicing them is cheaper– They spread positive word of mouth

The golden pillars in Marketing

We provide VALUE

SATISFACTION

Retention LOYALTY

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Before:• Few Doctors (Doctors had

the influencing decisions - you had to convince one decision maker)

• Many patients unaware / unknowledgeable

• Few companies were dominating the markets with products (80/20)

• Few Hospitals & intermediaries

• Few similar medicines• Fewer generic drugs

Before and After…

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After:• More Doctors (more demanding

Doctors)• Final customers (patients) are

becoming more knowledgeable• More companies with similar

products• More generic drugs• More hospitals• More Pharmacists (even staff

prescribe!)• Friends, nurses, aid-nurses

(they all prescribe)• More active Distributors

Creating Value for Target Customers

I. Market SegmentationII. Market TargetingIII. Differentiation and Positioning

THROUGH

I. The Marketing segmentation

• A target market: is a geographical location composed of heterogeneous people and whose the Company aims its efforts at

• Market segment: Since we want to address only “some” of these people, we will subdivide our target market into “segments.”

• My Target segment: will be the above “segment” which will be now “homogeneous” and treated with same Marketing-mix strategies

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II. T- S - T

Targeted geographical region

HeterogeneousGroups with different needs

Chosen segment: Kids – smokers – Parents – rich people.. 13

1. Demographic Segmentation

Marital Status

Family Life-cycle

Income, Education, and

Occupation Age

Gender

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2. Psychological (Personality Traits)• Trait is any distinguishing, relatively

enduring way in which one individual differs from another

• Major types:

a) Inner Vs. Other-directedness

b) Extrovert Vs. Introvert

c) High Vs. Low Dogmatism

• Personality is linked to both, product categories and specific brands

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3. Social Class & Lifestyles

• Social class stratification: High – Middle - Low

• Psychographics include activities, interests, and opinions (A.I.O.)

• They explain buyer’s purchase decisions and choices

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4. Benefits Segmentation

When consumers primarily seek specific benefits from their products:

• Uniqueness• Quality or Value for money• Emotional / social benefit

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III. Differentiation & Positioning

Positioning: It is simply how customers “view / perceive” your product / brand or how you want them to perceive it (when compared to others)

Positioning is affected when comparing our product Vs. competitor’s through consumer’s:

– Perceptions– Impressions– Feelings

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• Positioning Concept– “Positioned in” the

consumer’s mind– “Positioned

against” competing brands

III. Differentiation and Positioning

1. Product differentiation:Attribute – Price – Formula - Package

2. Service differentiation:Fast – reliable - coverage

3. Channel differentiation:Strong market penetration

4. People differentiationKnowledge – skills - Proactive

5. Image differentiation:Class - Country of Origin

The market’s dynamics

End of Seminar

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