Khun Kyaw Oo

Principles Of Marketing

SQ 1: Understand the role of marketing and marketing management

functions.

Development satisfying relationships with customers that benefit both the

customer and the organization. these efforts lead marketing to serve an
important role As we have seen the key object of an organization's
marketing efforts is to within most organizations and within society . at
the organizational level ,marketing is a vital business function that is
necessary in nearly all industries whether the organization operates as a
for profit or as a not for profit. For the for profit organizations ,marketing
is responsible for most tasks that bring revenue and ,hopefully ,profits to
an organizations .for the not for profit organization, marketing is
responsible for attracting customers needed to support the not for profits
mission such as raising donations or supporting a cause . for both types of
organizations ,it is unlikely they can survive without a strong marketing
effort. marketing is also the organizational business area that interacts
most frequently with the public and, consequently ,what the public knows
about an organization is determined by their interactions with marketing.

We need to understand the major functions of marketing management in

order understand and groom our organization .the following are some of
the major functions of marketing .selling ,buying and assembling,
transportation , storage, standardization and grading ,financing , risk
taking ,market information.
SQ.1 Understand the value of customers and their consumer behavior.

Yes, we uses customer service as a tool to rectify the customer

complaints, they overlook the things which are essential to make
customers happy. In today’s marketing world where customer is the
reason any business survives, it is really very critical to satisfy customers’
needs.

Customers today want the very most and the best for the every cent
spent, and on the best conditions. Only the individuals and companies
that provide extremely exceptional products and services at reasonable
prices last. This article explains the practices which can be exercised to
please the customer. Also the article explains the difference of types of
customers

. The different between what a customer gets from a product, and what
he or she has to give in order to get it. the customer value was something
to take in account, especially for us, because the customer was number
one in our book. you need to make sure that you are giving out great
customer value so that they are happy to come back for more. you should
try to strive to have the best customer value you can so that people will
give out good word of mouth adverting.

Consumer behavior is the study of individuals, groups, or

organizations and the processes they use to select, secure, use, and
dispose of products, services, experiences, or ideas to satisfy their needs
and wants. It is also concerned with the social and economic impacts that
purchasing and consumption behavior has on both the individual
consumer and on broader society. Consumer behavior blends elements
from psychology, sociology,social anthropology, marketing and economics
, especially behavioral economics. It examines how emotions, attitudes
and preferences affect buying behavior. Characteristics of individual
consumers such as demographics, personality lifestyles and behavioral
variables such as usage rates, usage occasion, loyalty, brand advocacy,
willingness to provide referrals, in an attempt to understand people's
wants and consumption are all investigated in formal studies of consumer
behavior. The study of consumer behavior also investigates the
influences, on the consumer, from groups such as family, friends, sports,
reference groups, and society in general.

The study of consumer behavior is concerned with all aspects of

purchasing behavior - from pre-purchase activities through to post-
purchase consumption and evaluation activities. It is also concerned with
all persons involved, either directly or indirectly, in purchasing decisions
and consumption activities including brand-influencers and opinion
leaders. Research has shown that consumer behavior is difficult to
predict, even for experts in the field. However, new research methods
such as ethnography and consumer neuroscience are shedding new light
on how consumers make decisions. example A market refers to a set
up where two or more parties are involved in transaction of goods
and services in exchange of money. The two parties here are
known as sellers and buyers.

SQ1: understand the market segmentation, targeting and position.

It is the responsibility of the marketers to create awareness of their

products amongst the consumers. It is essential for the individuals to be
aware of the brand’s existence. The USPs of the brands must be
communicated well to the end-users.

An organization can’t afford to have similar strategies for product

promotion amongst all individuals. Not every individual has the same
requirement and demand.

The marketers thus came with the concept of STP.

STP stands for:

S - Segmentation
T - Targeting
P - Positioning

The first step in the process of product promotion is Segmentation

The division of a broad market into small segments comprising of

individuals who think on the same lines and show inclination towards
similar products and brands is called Market Segmentation.

Market Segmentation refers to the process of creation of small groups

(segments) within a large market to bring together consumers who have
similar requirements, needs and interests.

The individuals in a particular segment respond to similar market

fluctuations and require identical products.

In simpler words market segmentation can also be called as Grouping.

Kids form one segment; males can be part of a similar segment while
females form another segment. Students belong to a particular segment
whereas professionals and office goers can be kept in one segment.

Targeting

Once the marketer creates different segments within the market,

he then devises various marketing strategies and promotional
schemes according to the tastes of the individuals of particular
segment. This process is called targeting. Once market segments are
created, organization then targets them.

Targeting is the second stage and is done once the markets have been
segmented.
Organizations with the help of various marketing plans and schemes
target their products amongst the various segments.

Nokia offers handsets for almost all the segments. They understand their
target audience well and each of their handsets fulfils the needs and
expectations of the target market.

Tata Motors launched Tata Nano especially for the lower income group.

Positioning

Positioning is the last stage in the Segmentation Targeting

Positioning Cycle.

Once the organization decides on its target market, it strives hard to

create an image of its product in the minds of the consumers. The
marketers create a first impression of the product in the minds of
consumers through positioning.

Positioning helps organizations to create a perception of the products in

the minds of target audience.

Ray Ban and Police Sunglasses cater to the premium segment while
Vintage or Fastrack sunglasses target the middle income group. Ray Ban
sunglasses have no takers amongst the lower income group.

Garnier offers wide range of merchandise for both men and women.

Each of their brands has been targeted well amongst the specific market
segments. (Men, women, teenagers as well as older generation)

Men - Sunscreen lotions, Deodorant

Women - Daily skin care products, hair care products
Teenagers - Hair colour products, Garnier Light (Fairness cream)
Older Generation - Cream to fight signs of ageing, wrinkles
A female would never purchase a sunscreen lotion meant for men and
vice a versa. That’s brand positioning.

LQ 1: understand how to create the marketing plan

If we create the marketing plan ,we need understand the marketing

strategies .They are executive summary, situational analysis, marketing
analysis, marketing objectives ,marketing operations, financial analysis,
marketing strategy.

Start with an Executive Summary. This section will include basic

information about your product or service, and will provide a general
summary of the entire document in a paragraph or two. Writing this first
can help you broadly overview the more detailed sections you are about
to write. This is helpful to give your employees, advisors, and colleagues
and overview of your plan.

A situational analysis often is called the foundation of a marketing

plan. A situational analysis includes a thorough examination of internal
and external factors affecting a business. It creates an overview of the
organization that will lead to a better understanding of the factors that
will influence its future.

The group of goals set by a business when promoting its products or

services to potential consumers that should be achieved within a given
time frame. A company's marketing objectives for a particular product
might include increasing product awareness among targeted consumers,
providing information about product features, and reducing consumer
resistance to buying the product

Marketing strategy has the fundamental goal of increasing sales and

achieving a sustainable competitive advantage. Marketing strategy
includes all basic, short-term, and long-term activities in the field of
marketing that deal with the analysis of the strategic initial situation of a
company and the formulation, evaluation and selection of market-oriented
strategies that contribute to the goals of the company and its marketing
objectives. Marketing strategies cover everything from Pay per click,
search engine marketing, public relations (PR), Engineering with
Marketing & the much more.

The marketing operations (MO) function has emerged due to the

need for a more transparent, efficient, and accountable view of
marketing. Its growth was initially driven by the proliferation of marketing
technology and increased pressure from the C-suite to prove the value of
marketing and contribute to the revenue. The purpose of marketing
operations is to increase marketing efficiency and organizational agility.
Agile Marketing organizations are able to adapt their marketing efforts,
quickly and successfully, in response to changing customer behavior,
market conditions and business direction to the benefit of improved
market share or customer value.

Financial analysis (also referred to as financial statement analysis or

accounting analysis or Analysis of finance) refers to an assessment of
the viability, stability and profitability of a business, sub-business or
project.

It is performed by professionals who prepare reports using ratios that

make use of information taken from financial statements and other
reports. These reports are usually presented to top management as one
of their bases in making business decisions. Financial analysis may
determine if a business will.

Distribution our channel strategy is to use selective distribution marketing

sonic smart phones through well know stores and online retailers .during
the first years ,we will add channel partners until we have coverage in all
major U,S market and the product is included in the major electronics
catalogs and Wed sites. We will also investigate distribution through cell
phone outlets maintained by major carries such as verizon wireless , in
support of channel partners . we will provide demonstration products,
detailed specification handouts, and full color photos and display featuring
the product .Finally ,we plan to arrange special payment terms for
retailers that place volume orders.

SQ1:understaand the marketing mix in marketing strategy.

The marketing mix is the set of controllable, tactical marketing tools

that a company uses to produce a desired response from its target
market. It consists of everything that a company can do to influence
demand for its product. It is also a tool to help marketing planning and
execution.

The four Ps of marketing: product, price, place and promotion

The marketing mix can be divided into four groups of variables commonly
known as the four Ps:

1. Product: The goods and/or services offered by a company to

its customers.
2. Price: The amount of money paid by customers to purchase
the product.
3. Place (or distribution): The activities that make the product
available to consumers.
4. Promotion: The activities that communicate the product’s
features and benefits and persuade customers to purchase the
product.

Marketing tools

Each of the four Ps has its own tools to contribute to the marketing mix:
· Product: variety, quality, design, features, brand name,
packaging, services
· Price: list price, discounts, allowance, payment period, credit
terms
· Place: channels, coverage, assortments, locations, inventory,
transportation, logistics
· Promotion: advertising, personal selling, sales promotion,
public relations

Marketing strategy

An effective marketing strategy combines the 4 Ps of the marketing mix.

It is designed to meet the company’s marketing objectives by providing
its customers with value. The 4 Ps of the marketing mix are related, and
combine to establish the product’s position within its target markets.

Weaknesses of the marketing mix

The four Ps of the marketing mix have a number of weaknesses in that

they omit or underemphasize some important marketing activities. For
example, services are not explicitly mentioned, although they can be
categorized as products (that is, service products). As well, other
important marketing activities (such as packaging) are not specifically
addressed but are placed within one of the four P groups.

Another key problem is that the four Ps focus on the seller’s view of the
market. The buyer’s view should be marketing’s main concern.

The four Ps as the four Cs

The four Ps of the marketing mix can be reinterpreted as the four Cs.
They put the customer’s interests (the buyer) ahead of the marketer’s
interests (the seller).
· Customer solutions, not products: Customers want to buy
value or a solution to their problems.
· Customer cost, not price: Customers want to know the total
cost of acquiring, using and disposing of a product.
· Convenience, not place: Customers want products and
services to be as convenient to purchase as possible.
· Communication, not promotion: Customers want two-way
communication with the companies that make the product.