Problem SolvingProblem SolvingIntroduction to marketing concepts

Rules of the Game

Workshop Rules

Stay

involved

Keep your time

Take notes

Turn off your mobile phone

Learning Learning methodsmethods

Lets’ communicate and getLets’ communicate and get Your Your

ExpectationsExpectations

MarketingMarketing

What you’ll learn...What you’ll learn...

What is marketing?

What is the marketing mix?

What does it involve?

Module 1Module 1

About Marketing

Marketing in the 21 century

WHY

What What isis marketing? marketing?

• Marketing…Marketing…– is not ADVERTISINGis not ADVERTISING– is not SELLINGis not SELLING– is not PROMOTIONis not PROMOTION

• ““The aim of marketing is to make The aim of marketing is to make selling unnecessary.” Peter selling unnecessary.” Peter Drucker (1973)Drucker (1973)

What is marketing?What is marketing?

• Businesses need to sell Businesses need to sell products if they are to products if they are to achieve their objectives.achieve their objectives.

• Marketing is about Marketing is about ensuring that businesses ensuring that businesses can sell as many products can sell as many products as possible in order to as possible in order to make profits.make profits.

What does it involve?What does it involve?

• Marketing is a very complex concept.Marketing is a very complex concept.

• It involves:It involves:– ResearchResearch– Product designProduct design– Setting pricesSetting prices– Making sure the customer knows about Making sure the customer knows about

productsproducts– Choosing how and where to sell productsChoosing how and where to sell products

Why is it needed?Why is it needed?

• Each year millions of new products Each year millions of new products are launched:are launched:

Without careful marketing

these products would fail

“Marketing is the science and art of exploring, creating and delivering value to satisfy the needs and wants of a target market maintaining loyalty at a profit.”

Professor Philip Kotler

Needs Eat, Dress, Move

Wants Cheeseburger, Tuxedo, Car

Marketer

This Is This Is DemandDemand

“Demand”

Wants Buying Power

First Task: Detect NeedsFirst Task: Detect Needs

Organization’smarketing department

Discover consumer needs

Information about needs

Potential consumers: The market

Marketing’s first task: discovering consumer Marketing’s first task: discovering consumer needsneeds

What is a Market?What is a Market?

Potential consumers make up a Potential consumers make up a market, which is:market, which is:

1.1. PeoplePeople

2.2. with the Desire andwith the Desire and

3.3. with the Ability to Buy a with the Ability to Buy a

specific product.specific product.

Organization’s marketing departmentConcepts

forproducts

Discover consumer needs

Information about needs

Potential consumers: The market

Satisfy consumer needsFind the right combination of:

• Product• Price• Promotion• Place

Goods, services, ideas

Marketing’s Second Task: Satisfying Consumer Marketing’s Second Task: Satisfying Consumer NeedsNeeds

The Target MarketThe Target Market Because the organization Because the organization

obviously can’t satisfy obviously can’t satisfy all all

consumer needs, it must consumer needs, it must

concentrate its efforts on concentrate its efforts on

certain needs of a certain needs of a specificspecific

group of potential consumersgroup of potential consumers. This is . This is the the target markettarget market -- -- one or more one or more specific groups of potential consumers specific groups of potential consumers toward which an organization directs toward which an organization directs its marketing program.its marketing program.

Inactive orex-customers

Customer DevelopmentCustomer Development

PartnersAdvocatesClientsRepeat

customersFirst-timecustomers

Suspects

Prospects

Disqualifiedprospects

Marketing Vs SalesMarketing Vs Sales

Is there a difference?

The Marketing conceptThe Marketing concept

Organizations must concentrate on the customer and not the product or the company.

Organizations should revolve round the customer and not the other way around.

The purpose of a business is to create and keep a customer

Focuses on matching your product or service Focuses on matching your product or service features and benefits in a way that suits the features and benefits in a way that suits the

prospect.prospect.

sales process is any thing that you do to close the sales process is any thing that you do to close the sale and get signed agreement or contract.sale and get signed agreement or contract.

It is ant thing that engages you with the prospect It is ant thing that engages you with the prospect or customer on a personal level rather than at a or customer on a personal level rather than at a

distance.distance.

The selling conceptThe selling concept

The major role of The major role of marketing and sellingmarketing and selling

People DO NOT buy products people buy

Module 2Module 2

Marketing Management

Building Customer Building Customer RelationshipsRelationships

Relationship MarketingRelationship MarketingRelationship marketing isRelationship marketing is linking the linking the

organization to its individual customers, organization to its individual customers,

employees, suppliers, and other partners employees, suppliers, and other partners

for their mutual for their mutual long-termlong-term benefits.benefits.

Mutual long-term benefitsMutual long-term benefits between the between the

organization and its customers require organization and its customers require

links to other vital stakeholders-- including links to other vital stakeholders-- including

suppliers, employees, and “partners” such suppliers, employees, and “partners” such

as wholesalers or retailers in a as wholesalers or retailers in a

manufacturer’s channel of distribution.manufacturer’s channel of distribution.

How Marketing became so How Marketing became so important?important?

Production era

Sales era

Marketing concept era

SocietalMarketing era

18601880190019201940196019802000

Four different orientations in the history of North Four different orientations in the history of North American businessAmerican business

The Marketing MixThe Marketing Mix

• The tools available to a business to gain The tools available to a business to gain the reaction it is seeking from its target the reaction it is seeking from its target market in relation to its marketing market in relation to its marketing objectivesobjectives

• 7Ps – Price, Product, Promotion, Place, 7Ps – Price, Product, Promotion, Place, People, Process, Physical EnvironmentPeople, Process, Physical Environment

• Traditional 4Ps extended to cope with Traditional 4Ps extended to cope with today's changing environmenttoday's changing environment

The Marketing MixThe Marketing Mix

ProductProduct

ProductProduct• The firm must come up with a product The firm must come up with a product

or service that people will or service that people will want to buywant to buy..

• It must fulfil some It must fulfil some needneed

or or wantwant..

• It must be (or at least seem) It must be (or at least seem) uniqueunique..

ProductProduct• Methods used to Methods used to

improve/differentiate improve/differentiate the product and increase the product and increase sales or target sales more sales or target sales more effectively to gain effectively to gain a competitive advantage a competitive advantage e.g.e.g.– Extension strategiesExtension strategies– Specialised versionsSpecialised versions– New editionsNew editions– Improvements – real or Improvements – real or

otherwise!otherwise!– Changed packagingChanged packaging– Technology, etc.Technology, etc.

Image copyright: www.freeimages.co.uk

ProductProduct• Methods used to Methods used to

improve/differentiate improve/differentiate the product and increase the product and increase sales or target sales more sales or target sales more effectively to gain effectively to gain a competitive advantage a competitive advantage e.g.e.g.– Extension strategiesExtension strategies– Specialised versionsSpecialised versions– New editionsNew editions– Improvements – real or Improvements – real or

otherwise!otherwise!– Changed packagingChanged packaging– Technology, etc.Technology, etc.

Image copyright: www.freeimages.co.uk

Activity 1

Product or service or brand Core Product Actual Product Augmented

Product

BMW Freedom to travel A motor car  

Sheraton  Rooms Room service

Egypt Air  Flight An airline journey

Zamalek Football ClubExcitement and

leisure T-shirts – photos

with players

ALICO Insurance policy Finance

UNIONAIR  Cooling Warranty

PricePrice

PricePrice

• Pricing StrategyPricing Strategy

- International- International– ComparativeComparative– Cost plusCost plus

• The price must be one The price must be one that the customer thinks that the customer thinks is good is good value for moneyvalue for money..

• This is not the same as This is not the same as

being being cheap!cheap!

• Prices have a great Prices have a great psychological effect on psychological effect on customers.customers.

PricePrice

• Pricing StrategyPricing Strategy

• Importance of:Importance of:– knowing the marketknowing the market– elasticityelasticity– keeping an eye keeping an eye

on rivalson rivals

Image copyright: www.freeimages.co.uk

PromotionPromotion

PromotionPromotion

• Strategies Strategies to make the to make the consumer aware consumer aware of the existence of the existence of a product of a product or serviceor service

• NOT just NOT just advertisingadvertising

The promotional message should

Grab Attention

Stimulate Interest

Create Desire

Promote Action

PlacePlace

PlacePlace

• The means by which products and The means by which products and services get from producer services get from producer to consumer and where they can be to consumer and where they can be accessed by the consumeraccessed by the consumer– The more places to buy the product and The more places to buy the product and

the easier it is made to buy it, the better the easier it is made to buy it, the better for the business (and the consumer?)for the business (and the consumer?)

PeoplePeople

PeoplePeople

• People represent the businessPeople represent the business– The image they present can be importantThe image they present can be important– First contact often human – what is the lasting First contact often human – what is the lasting

image they provide to the customer?image they provide to the customer?– Extent of training and knowledge Extent of training and knowledge

of the product/service concernedof the product/service concerned– Do staff represent the desired culture Do staff represent the desired culture

of the business?of the business?

PeoplePeople

• People represent the businessPeople represent the business– The image they present can be importantThe image they present can be important– First contact often human – what is the lasting First contact often human – what is the lasting

image they provide to the customer?image they provide to the customer?– Extent of training and knowledge Extent of training and knowledge

of the product/service concernedof the product/service concerned– Mission statement – how relevant?Mission statement – how relevant?– Do staff represent the desired culture Do staff represent the desired culture

of the business?of the business?

PeoplePeople

• People represent the businessPeople represent the business– The image they present can be importantThe image they present can be important– First contact often human – what is the lasting First contact often human – what is the lasting

image they provide to the customer?image they provide to the customer?– Extent of training and knowledge Extent of training and knowledge

of the product/service concernedof the product/service concerned– Mission statement – how relevant?Mission statement – how relevant?– Do staff represent the desired culture Do staff represent the desired culture

of the business?of the business?

ProcessProcess

ProcessProcess• How do people consume services?How do people consume services?• What processes do they have to go What processes do they have to go

through to acquire the services?through to acquire the services?• Where do they find the availability Where do they find the availability

of the service?of the service?– ContactContact– RemindersReminders– RegistrationRegistration– SubscriptionSubscription– Form fillingForm filling– Degree of technologyDegree of technology

Physical EnvironmentPhysical Environment

Physical EnvironmentPhysical Environment

• The ambience, mood or physical presentation of the The ambience, mood or physical presentation of the environmentenvironment

• Packaging. Packaging. • Internet/web pages. Internet/web pages. • Paperwork (such as invoices, tickets,…..). Paperwork (such as invoices, tickets,…..). • Brochures. Brochures. • Furnishings. Furnishings. • Uniforms. Uniforms. • Business cards. Business cards. • The building itself (such as prestigious offices or scenic The building itself (such as prestigious offices or scenic

headquarters). headquarters). • Mailboxes and many others . . . . . . Mailboxes and many others . . . . . .

Physical EnvironmentPhysical Environment

• The ambience, mood or physical The ambience, mood or physical presentation of the environmentpresentation of the environment– Smart/shabby?Smart/shabby?– Trendy/retro/modern/old fashioned?Trendy/retro/modern/old fashioned?– Light/dark/bright/subdued?Light/dark/bright/subdued?– Romantic/chic/loud?Romantic/chic/loud?– Clean/dirty/unkempt/neat?Clean/dirty/unkempt/neat?– Music?Music?– Smell?Smell?

Stages in Consumer Stages in Consumer Decision ProcessDecision Process

Awareness

Interest

Decision

Satisfaction

Action

Advertising

Channel

Product /Service

Price

Word-of- Mouth

The Marketing MixThe Marketing Mix

• Blend of the mix depends upon:Blend of the mix depends upon:• Marketing objectivesMarketing objectives• Type of productType of product• Target marketTarget market• Market structureMarket structure• Rivals’ behaviourRivals’ behaviour• Global issues – culture/religion, etc.Global issues – culture/religion, etc.• Marketing positionMarketing position• Product portfolioProduct portfolio

– Product lifecycleProduct lifecycle– Boston MatrixBoston Matrix

MarketingMarketing ModelModelTarget Market

Aware

Understand

Believe

Want

Find

Buy

Use

Prefer

Cost

Revenue

Value

Experience

Point of Purchase

Above the Line

Loyal

Below the Line

Intention to Purchase

Behavior

Marketing Management Marketing Management PhilosophiesPhilosophiesMarketing Management Marketing Management PhilosophiesPhilosophies

CompetingCompetingPhilosophiesPhilosophiesCompetingCompeting

PhilosophiesPhilosophies

ProductionProduction

SalesSales

MarketMarket

Societal MarketingSocietal Marketing

Module 3

Marketing Management Marketing Management PhilosophiesPhilosophiesMarketing Management Marketing Management PhilosophiesPhilosophies

•

PhilosophyPhilosophy Key Ideas

ProductionProduction

SalesSales

MarketMarket

SocietalSocietal

Focus on efficiency of internal operations

Focus on satisfying customer needs and wants

Focus on satisfying customer needs and wants while enhancing individual and societal well-being

Focus on aggressive techniques for overcoming customer resistance

The Marketing ConceptThe Marketing ConceptThe Marketing ConceptThe Marketing ConceptFocus on Focus on

Customer Wants Customer Wants and Needsand Needs

Integrate Organization’s Integrate Organization’s Activities to Satisfy Activities to Satisfy Customer Needs and Customer Needs and

WantsWants

Achieve Organization’s Achieve Organization’s Long Term Goals by Long Term Goals by Satisfying Customer Satisfying Customer

Wants and NeedsWants and Needs

Comparing Sales and Market Comparing Sales and Market OrientationsOrientations

Market Orientation

Outward Coordinated use of all marketing activities

Customer satisfaction

Specific groups

of people

Satisfying wants and

needs

Organization’sFocus

Firm’sBusiness

ForWhom?

Primary Profit Goal?

Tools to Achieve

Selling goods and services

Everybody Maximum sales

volume

Primarily promotion

InwardSales Orientation

Developing Competitive Developing Competitive AdvantageAdvantage

Competitive Advantage

Customer Value

Customer Relationships

Customer Satisfaction

Value and SatisfactionValue and Satisfaction

Expectation

Performance810

If performance is lower than expectations, satisfaction is low.

If performance is higher than expectations, satisfaction is high.

Expectation

Performance

108

Why so many products fail in Egypt?