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MarketingMarketing

Szabó RozáliaSzabó Rozália

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Marketing - OutlineMarketing - Outline

What is marketing?What is marketing? The process of marketingThe process of marketing Market researchMarket research The marketing-mixThe marketing-mix

Products and brandsProducts and brands PricePrice PlacePlace PromotionPromotion

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What is marketing?What is marketing?

Definition 1:Definition 1:

It is all the different activities It is all the different activities intended to satisfy customer intended to satisfy customer needs, so as to make profit.needs, so as to make profit.

Definition 2:Definition 2:

It is all the different activities It is all the different activities intended to make and attract a intended to make and attract a profitable demand for a product.profitable demand for a product.

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The process of marketingThe process of marketing

Market researchMarket research Product developmentProduct development ProductionProduction PricingPricing Distribution channelDistribution channel PromotionPromotion

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Market researchMarket research

Primary data collectionPrimary data collection interviewsinterviews questionnairesquestionnaires surveys, etc.surveys, etc.

Secondary data collectionSecondary data collection sales recordssales records reports, etc.reports, etc.

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The marketing-mix (4 P’s)The marketing-mix (4 P’s)

It provides the customer with the It provides the customer with the right right productproduct at the right at the right priceprice, , presented in the most attractive presented in the most attractive way (way (promotionpromotion), and available ), and available in the easiest way (place).in the easiest way (place).

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ProductProduct

Not only an assembled set of Not only an assembled set of componentscomponents

Also refers to Also refers to features (colour, size, material, features (colour, size, material,

etc.) etc.) and benefits (what we gain by and benefits (what we gain by

using it) – USP (Unique Selling using it) – USP (Unique Selling Proposition).Proposition).

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Product (cont.)Product (cont.)

Product life cycle (PLC) - a Product life cycle (PLC) - a typical sales pattern consisting typical sales pattern consisting of 4 stages:of 4 stages: launchlaunch growthgrowth maturitymaturity declinedecline

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Product (cont.)Product (cont.)

Brands and brandingBrands and branding Brand:Brand: a name given to its a name given to its

product by a company so that it product by a company so that it can be easily recognized.can be easily recognized.

Branding:Branding: creating a brand and creating a brand and keeping it in customers’ minds keeping it in customers’ minds through advertising, packaging through advertising, packaging etc.etc.

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Product (cont.)Product (cont.)

Brand awareness / brand Brand awareness / brand recognition:recognition:

how much people how much people recognize recognize a brand.a brand.

Brand image:Brand image:

the idea people have about the idea people have about a a brand.brand.

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Price Price

Products must be priced so that they Products must be priced so that they can compete effectively with rival can compete effectively with rival products in the same market.products in the same market.

Factors taken into consideration:Factors taken into consideration: valuevalue qualityquality volume of salesvolume of sales level of market saturationlevel of market saturation prices of the competition.prices of the competition.

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PlacePlace

The product must be available The product must be available to customers through the most to customers through the most cost-effective cost-effective channels of channels of distributiondistribution..

ProducerProducer→wholesaler→retailer→customer→wholesaler→retailer→customer

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Place (cont.)Place (cont.)

Direct sales: Direct sales: producerproducer→end-user→end-user

Sales through distributors: Sales through distributors: producer→wholesaler→end-userproducer→wholesaler→end-user

producer→wholesaler→retailer→end-userproducer→wholesaler→retailer→end-user

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Place (cont.)Place (cont.)

Retail outlets:Retail outlets: Chain storesChain stores (standardized (standardized

selection)selection) Supermarkets Supermarkets (mainly food, (mainly food,

under 30,000 square metres)under 30,000 square metres) Hypermarkets Hypermarkets (wide variety of (wide variety of

goods, usu. outside a town, over goods, usu. outside a town, over 30,000 square metres)30,000 square metres)

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Place (cont.)Place (cont.)

Retail outlets (cont.)Retail outlets (cont.) Department storesDepartment stores (wide variety (wide variety

of goods, usu. in a town centre, of goods, usu. in a town centre, departments)departments)

Deep discountersDeep discounters (supermarkets (supermarkets with very low prices)with very low prices)

Convenience storesConvenience stores (small, in a (small, in a residential area, open long hours)residential area, open long hours)

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PromotionPromotion

The activity aimed at attracting The activity aimed at attracting people’s attention to a product.people’s attention to a product.

Tools:Tools: Personal sellingPersonal selling AdvertisingAdvertising Sales promotionSales promotion Public Relations (PR)Public Relations (PR)

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Promotion (cont.)Promotion (cont.)

Personal selling:Personal selling:

members of a company’s sales members of a company’s sales force (salesmen) visit customers force (salesmen) visit customers and persuade them to buy its and persuade them to buy its products.products.

(Sales manager - head of the (Sales manager - head of the sales force)sales force)

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Promotion (cont.)Promotion (cont.)

Advertising:Advertising:

a means of stimulating a means of stimulating demand for a product, and demand for a product, and establishing strong brand-establishing strong brand-loyalty.loyalty.

Tools:Tools: TraditionalTraditional Non-traditionalNon-traditional

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Promotion (cont.)Promotion (cont.)

Traditional advertising:Traditional advertising: TV commercialsTV commercials open-air hoardingsopen-air hoardings neon signsneon signs newspaper advertisementsnewspaper advertisements brochures, cataloguesbrochures, catalogues direct marketing (direct mail, direct marketing (direct mail,

telemarketing)telemarketing)

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Promotion (cont.)Promotion (cont.)

Non-traditional advertising:Non-traditional advertising: road-showsroad-shows product placement (eg. at eye-level)product placement (eg. at eye-level) sponsorships (sports events, sponsorships (sports events,

concerts)concerts) text messaging (sms’s)text messaging (sms’s) Internet banners,spamsInternet banners,spams

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Promotion (cont.)Promotion (cont.)

Advertising is successful if Advertising is successful if customers take a prompt action:customers take a prompt action:AIDA:AIDA:

AttentionAttention

InterestInterest

DesireDesire

ActionAction

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Promotion (cont.)Promotion (cont.)

Sales promotion:Sales promotion:All the methods encouraging sales All the methods encouraging sales of a product by offering extra of a product by offering extra value for a short time.value for a short time.

Tools: Tools: free gifts (sg given with the product)free gifts (sg given with the product) special offers (eg. discounts, reduced special offers (eg. discounts, reduced

prices)prices) free samples, etc.free samples, etc.

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Promotion (cont.)Promotion (cont.)

Public Relations (PR):Public Relations (PR):all the activities aimed at all the activities aimed at informing people inside and informing people inside and outside a company in order to outside a company in order to establish goodwill.establish goodwill.

Tools: similar to those of Tools: similar to those of advertising.advertising.But: more emphasis on personal But: more emphasis on personal communication.communication.

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Thank you for your attention.Thank you for your attention.