Marketing: According to the social definition, marketing is societal process by which individuals or groups obtain what they need and want through creating, offering, exchanging products and services of value freely with others. Marketplace: The marketplace is physical, such as a store you shop in; marketspace is digital, as when you shop on the Internet. Market: Market is condition permits buyers and sellers work together. Market research: Collecting, analysing and reporting data relevant to a specific market situation (such as a proposed new product) or use a questionnaire to carry out a survey. Needs, Wants, and Demands: Needs are the basic human requirements. People need air, food, water, clothing, and shelter to survive. People also have strong needs for recreation, education, and entertainment. These needs become wants when they are directed to specific objects that might satisfy the need. Demands are wants for specific products backed by an ability to pay. Market Segmentation: Dividing a market into instinct group of buyers who have different requirements or buying habit Brand: a name, symbol or design (or some combination) that identify a product Trademark: a name or symbol that cannot be used by another producer Value reflects the sum of the perceived tangible and intangible benefits and costs to customers. It’s primarily a combination of quality, service, and price (“qsp”), called the “customer value triad”, 56Satisfaction reflects a person’s judgments of a product’s perceived performance in relationship to expectations. If the performance falls short of expectations, the customer is dissatisfied and disappointed. If it matches expectations, the customer is satisfied. If it exceeds them, the customer is delighted. Marketing Channels: Communication channels deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs Distribution channels to display, sell, or deliver the physical products or service(s) to the buyer or user. They include distributors, wholesalers, retailers, and agents. Service channels to carry out transactions with potential buyers. Service channels include warchouses, transportation companies, banks, and insurance companies that facilitate transactions. Match the terms with their definition: 1. Distribution channel | A. All the companies or individuals involved in 2. To launch a product moving a particular good or service from the producer to the consumer 3. Market opportunities B. An idea for a new product, which is tested with 4. Market research target consumers before the actual product is 5. Market segmentation developed 6. Packaging C. Attributes or characteristics of a product: 7. Points of sale quality, price, reliability, etc. 8. Product concept D. Dividing a market into instinct group of buyers who have different requirements or buying habit 9. Product feature E. Places where goods are sold to the public- 10. Sales representative shops, stores, kioshks, market, stalls, ete. F. Possibilities of filling unsatisfied needs in 57sectors in which a company can profitably produce goods or services G. Someone who contacts existing and potential customers and tries to persuade them to buy goods or services H. Collecting, analysing and reporting data relevant to a specific market situation ( such as a proposed new product) I. To intro duce a new product onto the market J. Wrappers and containers in which product are sold Write your answer here: 1. 2. 3. 4. 5. 6. 7. 8. 9 10. RoE THE CENTRALITY OF MARKETING Most management and marketing writers now distinguish between selling and marketing. The ‘selling concept’ assumes that resisting consumers have to be persuaded by vigorous hard-selling techniques to buy non-essential goods or services. Products are sold rather than bought. The ‘marketing concept’, on the contrary, assumes that the producer’s task is to find wants and fill them, In other words, you don’t sell what you make, you make what will be bought. As well as satisfying existing needs, marketers can also anticipate and create new ones. The markets for the Walkman, video recorders, video game consoles, CD players, personal computers, the internet, mobile phones, mountain bikes, snowboard, and genetic engineering, to choose some recent examples, were largely created rather than identified. Marketers are consequently always looking for market opportunities- profitable possibilities of filling unsatisfied needs or creating new ones in areas in which the company is likely to enjoy: differential advantage due to its 58distinctive competencies (the things it does . particularly well). Market opportunities are generally isolated by market segmentation. Once a target market has been identified, a company has to decide what goods or service to offer. This means that much of the work of marketing has been done before the final product or service comes into existence. It also means that the marketing concept has to be understood throughout the company as much as. in the marketing department itself. The company must also take account of the existence of competitors who always have to be. identified, monitored and defeated in the research for loyal customers. Rather than risk launching a product or service solely on the basis of intuition or guesswork, most companies undertake market research (GB) or marketing research (US). They collect and analyse information about the size of potential market, about consumers’ reactions to particular products or service features, and so on. Sale representatives, who also talk to customers, are another source of information. Once the basic offer, e.g. a product concept, has been established, the company has to think about the marketing mix, i.e. all the various elements of a marketing program, their integration, and the amount of effort that a company can expend on them in order to influence the target market. The best-known classification of these elements is the ‘Four ps’: product, place, promotion and price. Aspects to be considered in marketing products include quality, features (standard and optional), style, brand name, size, packaging, services and guarantee. Place in a marketing mix includes such factors as distribution channels, locations of point of sale, transport, inventory size, etc. Promotion groups together advertising, publicity, sales promotion, and personal selling, while price includes the basic list price, discounts, the length of the payment period, possible credit terms, and so on. It is the job of product manager to look for ways to increase sales by changing the marketing mix. It must be remembered that quite apart from consumer markets (in which people buy products for direct consumption) there exists an enormous producer or industrial or business market, consisting of all the individuals and organizations that acquire goods and services that are used in the production of ‘other goods, or in the supply of services to others. Few consumers realize that the producer market is actually larger than consumer market, since it contains all the raw materials, manufactured parts and components that go into consumer goods, 59plus capital equipment such as buildings and machines, supplies such as energy and pens and paper, and services ranging from cleaning to management consulting, all of which have to be marketed. There is consequently more industrial than consumer marketing, even though ordinary consumers are seldom exposed to it. 1, Which of the following three paragraphs most accurately summarizes the text and why? First summary: Marketing means that you don’t have to worry about selling your product, because you know it satisfies a need. Companies have identified market opportunities by market segmentation: doing market research, finding a target market, and introducing the right product. Once a product concept has been established, marketers regularly have to change the marketing mix - the product's features, its distribution, the way it is promoted, and its price - in order to increase sales. Industrial goods - components and equipment for producers of other goods - have to be marketed as well as consumer goods. Second summary: ‘The marketing concept has now completely replaced the old-fashioned selling concept. Companies have to identify and satisfy the needs of particular market segments. A product’s features are often changed, as are its price, the places in which it is sold, and the way in which it is promoted. More important than the marketing of consumer goods is the marketing of industrial or producer goods. Third summary: The marketing concept is that a company’s choice of what goods and services to offer should be based on the goal of satisfying consumer’s needs. Many companies limit themselves to attempting to satisfy the needs of particular market segments. Their choice of action is often the result of market research. A product’s features, the methods of distributing and promoting it, and its price, can all be changed during the course of its life, if necessary. Quite apart from the marketing of consumer products, with which everybody is familiar, there is a great deal of marketing of industrial goods. 602. Look at the following diagrams from Marketing Management by Philip Kotler. According to text, which of these diagrams best illustrates a company that has adopted the marketing concept? ; [Production] Marketing| Finance Exercise 1: Categorize the following aspects of marketing according to the well-known “4P’s” classification of the marketing mix — product, price, promotion and place. Adverising After-sale service | Brand name Cash discount Commercials _| Credit terms Characteristics Distribution Franchising Free sample going-rate channels Inventory Line-filling List price Guarantee Market coverage | Market Market skimming | Mailings Optional features | Penetration Payment period —_| Media plan Point of sales | Packaging Prestige pricing _| Personal selling Public relations | Poster Quality Production costs retailing Publicity Sponsorship Quantity discounts transportation _| Sizes Warehousing Style Vending machines Wholesaling 61Write your answer here: Product: Price: Promotion: Place: 62Exercise 2: Complete the eight sentences below, by adding an example from the second box: 1. Conversional marketing is the difficult task of reversing negative demand, 2. Stimulational marketing is necessary where there’s no demand, 3. Developmental marketing involves developing a product or service for which there is clearly a talent demand, 4. Remarketing involves revitalizing falling demand, 5. Synchromarketing involves altering the times pattern of irregular demand, 6. Maintenance marketing is a matter of retaining a current (may be full) level of demand 7. Demarketing is the attempt (by governments rather than private businesses) to reduce overfull demand, permanently or temporarily. 8. Countermarkeing is the attempt to destroy unwholesome demand for s Pp ao rm mo products that are considered undesirable, . eg. anon-polluting and fuel-efficient car. . eg. cigarettes, drugs, handguns, or extremist political parties. . eg. for churches, inner city areas, or ageing film stars. . eg. for some roads and bridges during rush hours. .. eg. for public transport between rush hours, ot for ski resorts in the summer. eg, for dental work, or hiring disable people. . in the face of competition or changing tastes. .. which often happens with new products and services. Write your answer here: 1. 2. 3. 4, 5. 6. 7 8. 63Exercise 3: Match up these marketing actions with the eight tasks described above: i, Alter the pattern of demand through flexible pricing, promotion, and other incentives. j. Connect the benefits of the product with people’s needs and interests. k. Find new target markets, change product features, develop more effective communication. 1. Find out why people dislike the product, and redesign it, lower prices, and use more positive promotion. m, Increase prices, reduce availability, make people scared. n. Keep up or improve quality and continually measure consumer satisfaction, o. Measure the size of the potential market and develop the goods and services that will satisfy it. p. Raise prices, reduce promotion and the level of service. Write your answer here: i, ie k. L m. nh o. P. Exercise 4: Complete the text with the words in the box: Advertising budgets consumer tastes differentiate products Early adopters making a loss reaches saturation Similar offerings withdrawn from the market The classic product life cycle is Introduction, Growth, Maturity and Decline. In the introduction stage the product is promoted to create awareness. It has low sales and will still be (1). .. If the product has few competitors, a skimming price strategy can be used (a high price for 2). which is then gradually lowered). In the Growth phase sales are rising rapidly and profits are high. However, competitors are attracted to the market with (3). The market is 64characterized by alliances, joint ventures and takeovers. (4)... large and focus on building the brand. In the Maturity phase sales growth slows and then stabilizes. Producers attempt to (5)... .. and brands are key to this. Price wars and competition occur as the market (6). .._In the Decline phase there is a downturn in the market. The product is starting to look old- fashioned or (7) have changed. There is intense price- cutting and many products are (8) Boston Matrix - How useful do you think the Boston Matrix is? - Can you think of a potential star product or service that your company doesn’t make or offer? 65