Simona Agoston

To explain what marketing is To differentiate between needs and wants To understand the fundamental marketing concepts To explain why and how companies learn about their customers To describe the main tools of marketing research To identify and comment on the four elements of a companys marketing mix

Marketing is more than a fancy image, a clever commercial, a special contest or a discount

Name some examples of marketing questions! Marketing involves a lot of planning and execution in order to develop a new product, set its price, market-entry date, distribute it, promote it and convince people to buy it Marketing involves also understanding customers needs, their buying behavior, creating consumer awareness, providing customer service and maintaining long term relationships

 Product marketing Service marketing Place marketing Cause related marketing

Needs/ Wants
Need= a difference between your actual state and your ideal state Wants= based on needs, but more specific Marketers channel the customers needs for various products and services into wants ( the desire to purchase a specific brand) by exposing you to alternatives E.g. need= thirst, want= Coca-Cola or Pepsi

Rely on products quality, performance and innovative Devote their marketing resources to make continuous improvements features;

Product concept
Better products # better sales Also innovative products need marketing

Selling concept
Consumers will buy whatever they sale Focus on distribution and promotion Inside-out perspective which works in a sellers market; in a buyers market companies need to become more customer-centered

Marketing concept
Determine the needs and wants of target markets and shape and deliver accordingly products and services Outside-in perspective

Relationship concept
Building and maintaining a long term relationship with key parties; The relationship with the customer = ongoing process , it doesnt end with the sale transaction CRM = customer relationship management

= 5 * cost of keeping an old client

Cost to acquire a new client

 Todays customers are less loyal (more informed, more sophisticated, a greater variety, time pressure) Why satisfying customers is important?

-Cost to acquire a new client = 5 * cost of retaining an old client

-Long term customers buy more, are less price sensitive, take less of a companys time -Satisfied customers = best advertisement for a product

-Dissatisfied customers may tell 20 other persons about their bad experience ( retention specialist) Periodical analysis of the customer database (e.g. Vodafone, Generali, BCR) - indicators Some companies promote customer loyalty Not every customer is worth keeping

 Organizational markets (larger quantities) industrial markets = companies that buy goods and services to produce their own goods and services reseller markets= wholesalers and retailers government market Consumer market s= individuals and households that purchase goods and services for personal use Detailed marketing research studies - in order to understand buyers decision process and factors that influence the buying decision, to gather information about markets etc. Tools: Focused interviews with 6-10 persons = focus groups Surveys and questionnaires Experiments Blind tests Telephone or personal interviews When used inappropriate, research can be misleading Mystery shoppers Testing lab boutiques observe and analyze customers reactions Database marketing- companies specialized in data collection can provide direct marketers with customized mailing lists that target groups with the desired characteristics Treating customer individually- one-to-one marketing - individualizing offers, different website display, birthday letters and presents etc.

Buyers decision making process

Need recognition Information search Evaluation of alternatives Purchase Post-purchase evaluation (eventually cognitive dissonance)

Cognitive dissonance (buyers remorse)= anxiety following a purchase (when the buyer reconsiders all the alternatives rejected) that prompts buyers to seek reassurance about the purchase Calls for a prompt reaction of marketers to reinforce the sales with guarantees, phone calls to check customers satisfaction, follow-up letters etc.

Examine current market situation: Reviewing performance Evaluating competition Examining internal strengths and weaknesses Analyzing external environment

Assessing opportunities and setting objectives: Market penetration, new product development, geographic expansion, diversification Reaching a certain market share (a companys portion of the total sales within a market)

Developing the marketing strategy: Market segmentation- grouping of customers with similar characteristics, behavior and needs (using demographics, geographics, physiographics) Defining your target market Positioning your product Developing the Marketing Mix

Marketing Mix (4Ps)

Product policy Brand Design Packaging Services Warranty

Price policy A critical decision because in a companys marketing mix is the only element that produces revenue Discount and sales policy (quantity, time, loyalty, special offer) Price bundling Payment conditions

Place (Distribution) Policy Distribution channels Logistics

Promotion Policy Advertising Public Relation (PR) Sponsoring Product placement Event marketing Personal selling Direct marketing Sampling Online communication

Source: http://brandirectory.com/league_tables/table/global-500-2012, 2012

THANK YOU!