Understanding Marketing and the Marketing Process 41. What is Marketing When forced to define marketing, most people say that marketing means "seling’ or “advertising”, dstrbuton", PROmOL lon The goal of marketing is to | - Rtt@A CT new customers (by promising superior value) Qi ondio Keep curentcustomers (by delivering satisfaction). Definition, Marketing is an organizational function and a set of process for ereating ‘Communicating. and delivering value to customers and for ‘managing customer relationships in ways that benef the organization and its stakeholders Coca-Cola wore success Coke's the best-known, stongeat brand inthe word Goke isthe words leading sot en the Coca-Cola Company's sft rink products are astbuted in mero tan 105 counites. Look Brand Awarenass — Jook. -exAmples ooo Coke and other highly successful companies know that they tae care of ter 4B. Ststomers, matte! share sn po wi lew. 18 A comPANy's prcducT sAles AS a peRcenTage OF Tata! sales, = Auber of oter companies hae successtly pursued globl market by cea Pye yt ‘strong glcbal/ntemational brands fod the indus ees Philip Morris, has made Marlboro the number-one cigarette In the world 7 MeDonale's has designed a restaurant system that can be set up virtually anyuhere in the werid Harley-Davidson's motorcycles are perceived around the world as the the all ‘American bike + Cisco Systems and BROABCOM. which makes local area network routers, that allow computers to communicate wth eachother, designs new products that can be programmed to operate under vieually any conditions in the worl, - Mating mh man cling nl svtng aang aa Lenexee prge ies2. What is Marketing Strategy : A marketing strategy specifies a target market (the customer) and a related marketing 1+ A target market -is a group of customer to whom a company wishes to appeal 2 AMARKETIg TX the controllable varables the company pu's together to Sas tis age! Group Examele/annex C (iia Four P3)Controtablo Marketing Mix Factors: o Having selected the target market, the firm must take steps to satisty their needs, ‘Someone in the organization's marketing department must take action and develop a ‘complete marketing program to reach consumers by using a combination of four tools, Siete ware - FredveT. good, service, or idea to satisfy the consumer needs. - FRYCE.. whats exchanged forthe product. - Frome TeN, A means of communication between the seller and buyer. + Pl®c®. Ameans of getting the product into the consumer's hands, “These are the marketing manager contolabl factors the fourPs that can be used to solve a marketng problom. The Tatketng mix siononie a6 Cala contolable facors Because they ae under the con ole Marketing ceparimentin an ergarlzaon ‘The four Ps represent the sellers, view of the marketing tools available for influencing ‘buyers. From a buyer's point of view, each marketing tool is designed to delver 3 customer benefit Te seller’ four Ps cortespond io the customers Tears Four Ps Four Cs: Product Cusbomer solution Price Costemen cost Place Convenrewee fara CommunrcA bre ypWha mages an envitys goods i OR SeRVICeS SopeRIOR te al Cae CUSTOMER'S ctNee choices, 2. ompattive Advantage —> LY P Compa aang, ten siete va ester, “iat owe go best ese abu our egenzto's capbites or competencies COMPETENCIES are an organzatio’s special capabilies, including sis, technologies and resources. That distinguish irom other owanizatons Exploiting these competencies cam lead to success. Competencies shouldbe cistnctve enough to provide a COMPETITIVE ADVANTAGE aunque strength Re /4Tive. To comperiteAs, often based on quality. time, cost or innovation, Example: Dell computor quickly obtained a position in the personal computer market by {argeting selected organizational buyers, Founded in 1984, Del's sales in 1997 exceed $10 bilion. Del's targeting strategy is to ‘ell PCs by mail at competitive prices ‘The company offers a 30-day money back guarantee, a one_year warranty, and guaranteed 24-hour on-site serves. ‘These sence features give Dell medium-size business buyers, 19 important competitive advantage with small and 4. Defining the Company Mission ‘A mission statement is a statement of the organization's purpose ~ ‘accomplish, at it want to ‘Traditionaly, companies have defined their businesses in product terms (« We manufacture furniture») or in technological terms («We are a chemical-processing firm ») ‘A clear, thoughtful mission statement provides employees with a shared sense of purpose, direction and opportunity and also help to develop the best TAR Ket ing mix Mission statements are at their best when they are guided by 2 vision, an almost “impossible dream’ that provides a direction forthe companiy for the next 10 to 20 years: ‘Sony's former president, Akio Morita, wanted everyone Io have access to “personal portable sound,” so his company ereated the Walkman and portable CD player. Fred Smith wanted to deliver mail anywhere in the United States before 10:30 ‘AM. the next day, so he created FedEx \wBuisson statoment|should be market-oriented, A market-oriented mission statement defines tne BUSTIESS terms of satsiying basic customer needs, Ex: Market-Oriented Business Definitions Product-Oriented definition Market-Oriented definition Disney: We run theme parks and make fims We provide fantasies and entertainment Xerox We make copying equipment We help improve office productivity Imperial OL: We sell gasoline We supply energy Columbia Pictures: We make movies We market entertainment Encyclopaedia Britannica: We sell encyclopaadias We distribute information Communicating the mission statement is an important corporate-level_ marketing finction Some companies print their mission statement on cards or placards, Annex D_ 5. Sotting Company objectives and goals ‘The company’s mission needs to be tured inl delalled supporting objectives for each level of management. Each manager should have objectives and be responsible for reach them. Marketing strategies must be developed to support marketing objectives: § AMEX E 39 strates ln pe 9 object x EO Ex: To increase its market share, the company may increase its product's availabilty and promotion, ‘Also, goals should be realistic. They should arse from an analysis of the business unit's ‘opportunites and strengths, not from wishful thinking 6. What is Marketed a Goods Physical goods constitute the bulk of most countries” prod véCfon And MARE ING LF FoRT. 4& SERV IC0d ‘As economies advance, a growing proportion of their actives is focused on the Production of services. As of 2005, countries ike Canada, USA, France, Germany...he service sector accounted for 70 percent of the GDP, wile goods-producing industies ‘accounted for 30%, & Byents Marketers promote time-based events, such as major trade shows, artistic performance labal sporting events such as the Olympics or World Cup are promated aggressively to ‘both camipanies and Tans. O Ey pe Riewceg By orchestrating several services and goods, a fim can create, stage, and market eeparenear. Watt Disney Work’s Mag Kingdom Tepresents panera makeing ‘castomers visit 2 fay Kingdom, a pale ship, ora haunted house, © RRFONS CCeleby marketing Is @ major ausiness. Today, every major fim star has an agent @ personal manager, and tes to a pubic relations agency. Ars, musicians, CEOs, Bhysicians,high-pofe lawyers ond fanciers, and other professionals ae also geting hel trom celebrity marketers. y= Fe Pricr AL F pLaceo (ies provinces tenons and whole nations compete acively to_alact touts, factories, company headquarters, and new residents, — s IDEAS Every marke offering includes a basic idea, Charles Revlon of Revlon observed: “in the factory, we make cosmetic, inthe store we sell hope.” Products and services are platforms for delivering some idea or benefit. Social marketers are busy promoting such ideas “Friends Dont Let Friends Drive DrunkThe information Technology Boom The Inleret: intemet usage surged in the 1990s with the development of the user- friendly World Wide Web. More than 50 milion people suf the Internet each month, Up from just one milion 1 milion people in late 1984 The advent of the World Wide Web has given companies access to milions of new customers at a fraction of the cost of Pint and television advertising, Rapid Globalization : the importance of international markets One of the major developments in the business world during the decade of the 90s was the globalization of markets. The emergence of a largely borderless word has created ‘new reality forall types of companies. Today world rade is driven by global competition ‘among global_companies for global_consumers. With the development of faster communication, transportaion and financial transactions, time and distance are no longer barriers to global marketing. Products and services developed in one country ‘quickly find thei way to other countries where they are finding enthusiastic aoceptanca. Consumers around the world wear Nike shoes and Calvin Klein jeans, eat at MeDonald's, shave with Gilette razors, use Dell computers, drink Coca-Cola and Pepsi Cola soft drinks, talk on cellular phones made by Nokia and Motorola, and dive ears made by global automakers such as Ford, Honda, and Nissan. Why many companies are focusing on international markets ‘A: Many companies in U.S., Canada and Westem Europe recognize that their domestic ‘markets offers them limited opportunities for expansion because of slow population (growth, saturated markets, intense competion, and/or unfavorable marketing ‘environment. Ex: U.S. tobacoo compagnies face declining domestic consumption as a result of restrictions on their marketing and advertising efforis and the growing antismoking sentiment in Norin-Ameria. 'B- Many companies must focus on foreign markets to survive. Most European nations ae relatively smal in size and without foreign markets would not have the economies of scale to complete against larger U.S. companies Ex: Nokia is based in Finland and Ericsson is located in Sweden, are two of the world's ‘major cies of cellular phones because they have learned how to market their products to consumers in counities around the world, C- Compagnies are also pursuing intemational markets because of the opportunities they offer for growth and profits. The economic and political changes around the world in recent years have opened markets in Russia, Eastern Europe and China, \n