Professional Documents
Culture Documents
customer first.
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marketplace.
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Market
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2.
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3.
It is about Exchange.
Marketing is not successful unless two parties exchange
something of value. The buyer may exchange time,
money, or services, while the seller must exchange
something of value to the buyer.
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4.
It
is
intended
to
Organizational Needs.
Satisfy
Individual
and
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at the right price, in the right place using right promotion tool at
the right time
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Aspect
of superior
management
delivery of value
value
is
important
in
marketing
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Production
Marketing
Finance
Recearch &
CUSTOMER
development
Marketing
Human secource
management
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possession utilities.
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Communication
Goods/services
Industry
Market
(a collection
of sellers)
(a collection
of Buyers)
Money
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Information
1.
2.
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3.
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4.
5.
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by an ability to pay.
Marketing offer- Combination of products, services,
information or experiences that satisfy a need or want. Offer
may include services, activities, people, places, information
or ideas
Exchange-The act of obtaining a desired object from
someone by offering something in return
Benefits are outcomes sought by a customer that motivates
buying behavior.
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Company
Produce
Consumers
Sell
Practically sells itself
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Produce
Quality
Products
Sell
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Produce
Sell it
Consumers
companys products.
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Consumers
Market it
Sell what they want(Satisfy
needs of customers)
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Produce it
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marketing policies :
-Customers want satisfaction
-Societys well being
-Companys profits
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SOCIETY
Human welfare
SOCIETAL
MARKETING
CONCEPT
CONSUMERS
COMPANY
Want satisfaction
Profits
INTRODUCTION
Marketing for goods and marketing for services are the
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Tourism
Lodging
Health care
Education
Insurance
Laundries, dry-cleaning
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Pure
Tangible
Good
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Tangible
Good
w/
Services
Major
Pure
Hybrid Service Service
w/ Goods
3- Hybrid:
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5- Pure Services:
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1.
Intangibility
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ticket and the promise that they and their luggage will arrive
safely and on time. Will they? Not sure
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2. Inseparability
The service provider and his/her service may be inseparable,
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3. Heterogeneity (variability)
Quality of services depends on who provides them as well as
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4.Perishability;
Services cannot be stored for later sale or use. Once a
This
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Company
Company
External
Marketing
Internal
marketing
Employee
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Interactive
marketing
Customer
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Interactive Marketing
technical quality from the doctors, but the way the doctors
show their concerns and giving confidence to the patients is
the interactive marketing
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1.
2.
3.
4.
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expectation
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a.
b.
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c.
d.
e.
Reliability
Responsiveness
Assurance
Empathy
Tangibles
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Factors
Influencing
Companys
Marketing
Strategy
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INTERNAL FACTOR
MICROENVIRO
NMENT
These
are factors which are within
organization capability, These
include
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics
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MICROENVIRONMENT
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics
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MICROENVIRONMENT
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics
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MICROENVIRONMENT
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics
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Business
Reseller
Government
International
MICROENVIRONMENT
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics
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Conducting competitor
analysis is critical for
success of the firm
A marketer must monitor
its competitors offerings to
create strategic advantage
MICROENVIRONMENT
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics
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Financial
Media
Government
Citizen-action
Local
General
Internal
Social cultural
Economic
Natural
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Technological
Political
society
Increased emphasis on socially responsible actions
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Economic Factors.
Marketers need to consider the state of a trading economy in the
short and long-terms.
This is especially true when planning for international marketing.
You need to look at:
1. Interest rates.
2. The level of inflation and employment level. E.g.: In the last ten
years we had created more than 5 million of new employies
3. Long-term prospects for the economy Gross Domestic Product
(GDP) per capita, and so on.
4. factors that affect consumer buying power and spending
patterns = income changes, income distribution, classes,
changing consumer spending patterns
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Sociocultural Factors.
The social and cultural influences on
business vary from country to country. It is
very important that such factors are
considered. Factors include:
1. What is the dominant religion?
2. What are attitudes to foreign products and
services?
In many sectors, some customer prefers
foreing products; but in bank, insurance,
tourism, food or health services, prefers
national products.
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6.
7.
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Technological Factors.
Technology is vital for competitive
advantage, and is a major driver of
globalization. Consider the following
points:
1.
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2.
3.
4.
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Natural Environment:
Involves the natural resources that are needed as inputs
Trends
Shortages of raw materials
Increased pollution
Increased government intervention
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Consumer Buying
Behavior
Learning Objectives
behavior
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Culture
Social
Personal
Psychological
Buyer
Buyer
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i. Culture
Basically, culture is the part of every society and is the
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ii. Subculture
Each culture contains different subcultures such as religions,
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tend to exhibit
similar buying behavior. E.g Occupation,
Income, Education
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attitude or behavior.
brands.
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ii. Family
Buyer behavior is strongly influenced by the member of a
wife then the marketers will try to target the women in their
advertisement.
consumer lifestyles.
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i. Age
Age and life-cycle have potential impact on the consumer
buying behavior.
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ii. Occupation
The occupation of a person has significant impact on his
buying behavior.
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buying behavior.
On the other hand, a person with low income and savings will
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iv. Lifestyle
Lifestyle of customers is another import factor affecting the
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v. Personality
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i. Motivation
The level of motivation also affects the buying behavior of
customers.
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Self
Actualization
(Self-development)
Esteem Needs
(self-esteem, status)
Social Needs
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
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ii. Perception
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various products.
Beliefs
Descriptive thoughts that a person holds about something
Attitudes
Enduring favorable or unfavorable cognitive evaluations emotional
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Need Recognition.
Information Search.
Evaluation of Alternatives.
Purchase Decision.
Postpurchase Behavior.
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition
Need
Need Recognition
Recognition
Difference
Difference between
between an
an actual
actual state
state and
and aa desired
desired state
state
Basically,
Basically, this
this is
is the
the point
point when
when aa buyer
buyer realizes
realizes what
what she
she
wants
wants is
is not
not what
what she
she has.
has.
This
This is
is the
the motive
motive that
that drives
drives people
people to
to seek
seek out
out products
products
and
and services.
services.
Internal
Internal Stimuli
Stimuli
External
External Stimuli
Stimuli
Hunger
Hunger
TV
TV advertising
advertising
Thirst
Thirst
Magazine
Magazine ad
ad
A
A persons
persons normal
normal
needs
needs
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Radio
Radio slogan
slogan
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Personal
Personal Sources
Sources
Commercial
Commercial Sources
Sources
Advertising, salespeople
Receives most information
from these sources
Public
Public Sources
Sources
Mass Media
Consumer-rating groups
Experiential
Experiential Sources
Sources
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Product
ProductAttributes
Attributes
Evaluation
Evaluation of
of Quality,
Quality, Price,
Price, &
& Features
Features
Degree
Degreeof
ofImportance
Importance
Which
Which attributes
attributes matter
matter most
most to
to me?
me?
Brand
BrandBeliefs
Beliefs
What
What do
do II believe
believe about
about each
each available
available brand?
brand?
Total
TotalProduct
ProductSatisfaction
Satisfaction
Based
Based on
on what
what Im
Im looking
looking for,
for, how
how satisfied
satisfied
would
would II be
be with
with each
each product?
product?
Evaluation
EvaluationProcedures
Procedures
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Choosing
Choosing aa product
product (and
(and brand)
brand) based
based on
on one
one
or
or more
more attributes.
attributes.
Purchase
Purchase Intention
Intention
Desire
Desire to
to buy
buy the
the most
most preferred
preferred brand
brand
ItIt is
is not
not until
until the
the fourth
fourth step
step that
that the
the
ctual
ctual purchase
purchase decision
decision is
is made.
made. And,
And, there
there is
is no
no guarantee
guarantee
that
that the
the purchase
purchase will
will actually
actually take
take place
place at
at this
this time.
time.
ItIt may
may be
be postponed
postponed for
for aa variety
variety of
of reasons.
reasons.
..
Attitude
s of
others
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Unexpected
situational
factors
Purchase
Purchase Decision
Decision
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 5.
5. Post
Post purchase
purchase Behavior
Behavior
Consumers
Consumers Expectations
Expectations of
of
Products
Products Performance
Performance
Satisfied
Satisfied
Customer!
Customer!
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Dissatisfied
Dissatisfied
Customer
Customer
Cognitive dissonance
is a method of dividing a
market (Large) into smaller groupings of
consumers or organizations in which each
segment has a common characteristic such
as needs or behavior.
Market Segmentation
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2. Demographic segmentation
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Occasion
Benefits sought
User status
Usage rate
Loyalty status
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Measurable
Size, purchasing power, and profile of segment
Accessible
Can be reached and served
Substantial
Large and profitable enough to serve
Differentiable
Respond differently
Actionable
Effective programs can be developed
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Target Market
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product offering
in
competitors brands.
comparison
to
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Objectives
Understand how strategic planning is carried out at the
marketing process.
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Definitions
A planning can be thought of as a set of decisions about what a
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MARKETINGPLANNING:THEBASISFOR
STRATEGYANDTACTICS
PlanningProcessofanticipatingfutureevents
andconditionsandofdeterminingthebestway
toachieveorganizationalobjectives.
MarketingplanningImplementingplanning
activitiesdevotedtoachievingmarketing
objectives.
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STRATEGICPLANNINGVERSUSTACTICAL
PLANNING
StrategicplanningProcessofdeterminingan
organizationsprimaryobjectivesandadoptingcourses
ofactionthatwillachievetheseobjectives.
Provideslongtermdirectionfordecisionmakers.
TacticalplanningPlanningthatguidesthe
implementationofactivitiesspecifiedinthestrategic
plan.
Addressesshortertermactionsandcurrentnearterm
activities.
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the strategy and tactics set out how the goal will be achieved
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(SBUs),
Assigning Resources to SBUs
Planning New Businesses,
Downsizing Older Businesses
( assessing growth opportunities)
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scope
Competence scope
Market-segment scope
Geographical scope
organizational effectiveness
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ii.
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Stars
Cash Cows
Question Marks
Dogs
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BCG
BCG GROWTH-SHARE
GROWTH-SHARE MATRIX
MATRIX
Relative Market Share
Low
High
High
Stars
Cash
Cash Cows
Cows
Low
Question
Question Marks
Marks
High
Highgrowth,
growth,low
lowshare
share
Build
into
Stars/
phase
Build into Stars/ phaseout
out
Requires
cash
to
hold
Requires cash to hold
market
marketshare
share
Dogs
Dogs
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iv.
Intensive growth
Integrative growth
Diversification growth
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Business Mission
Strategy Formulation
Program Formulation
Implementation
Goal Formulation
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offers
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E.g of mission statement To offer the highest standard of service to customers at all
time
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SWOT Analysis
Opportunities and
threats stemming
from the external
environment
Internal strengths
and weaknesses
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Monitoring key
SWOT Analysis
Opportunities and
threats stemming
from the external
environment
Internal strengths
and weaknesses
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Brand awareness,
image, reputation
Distribution,
pricing, customer
loyalty, product
benefits
Finance, R&D,
manufacturing
company mission
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PRODUCT-MARKET
PRODUCT-MARKET EXPANSION
EXPANSION
GRID
GRID
Current
Markets
Current
Products
1. Market
Penetration
New
Markets
2. Market
Development
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New
Products
3. Product
Development
4. Diversification
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marketing plans
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line
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different companies
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1.
2.
3.
4.
5.
6.
7.
8.
Title page
Executive summary and table of contents
Situation analysis / SWOT Analysis
Objectives
Marketing strategy
Implementation (action) programs
Financial projections
Control systems
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marketing plan
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profitability?
and profitability?
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i.
Competitive force
Economic force
legal /government
Technology force
Socio cultural
Natural force
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ii.
market definition
market size
market segmentation
industry structure and strategic
groupings
Porter 5 forces analysis
competition and market share
competitors' strengths and
weaknesses
market trends
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iii.
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iv.
company resources
financial
people
time
skills
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objectives
mission statement and vision
statement
corporate objectives
financial objective
marketing objectives
long term objectives
description of the basic business
philosophy
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outlined
options include:
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i.
product mix
product strengths and weaknesses
product life cycle management and new product development
Brand name, brand image, and brand equity
the augmented product
product portfolio analysis
ii.
iii.
by
by
by
by
product,
customer segment,
geographical market,
distribution channel.
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iv.
pricing objectives
pricing method (eg.: cost plus, demand based, or competitor
indexing)
pricing strategy (eg.: skimming, or penetration)
discounts and allowances
price elasticity and customer sensitivity
break even analysis at various prices
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iv.
promotional goals
promotional mix
advertising reach, frequency, flights, theme, and media
sales force requirements, techniques, and management
sales promotion
publicity and public relations
electronic promotion (eg.: Web, or telephone)
word of mouth marketing (buzz)
viral marketing
v.
geographical coverage
distribution channels
physical distribution and logistics
electronic distribution
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Consist of 7ps
Product/service offer
Place/location
Price
Promotion
People,
Process, and
Physical environment. Marketing plan consists of four
These are
These strategies must be integrated/ combine to reach
PRODUCT
Product
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products;
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They include;
Accommodation units- hotels villas, campsite
Restaurants, bars and cafes
Transport at the destination-tax, coaches, car rental etc
Sports/adventure (interest) activity
Other facilities (e.g. language schools)-language school, health
clubs
Retail outlets-shops, travel agents, souvenirs
Other services (e.g. information services)
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They include;
Infrastructure (roads, airports, car parking etc)
Equipment (size, speed of transport etc)
Operational factors (routes operated, frequency of service, price
charged etc)
Government regulations-regulations
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the add-ons that are extrinsic to the product itself but which
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1.
Introduction
2.
Growth
3.
Maturity
4.
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Sales
Profits
Introduction
+
0
-
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Growth
Maturity
Decline
Product
Product Item
Item
A
A specific
specific version
version of
of aa product
product
that
that can
can be
be designated
designated as
as aa
distinct
distinct offering
offering among
among an
an organizations
organizations
products.
products.
Product
Product Line
Line
A
A group
group of
of closely-related
closely-related
product
product items.
items.
Product
Product Mix
Mix
All
All products
products that
that an
an
organization
organization sells.
sells.
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2.
3.
Consumer perception
4.
Competition
5.
Government regulation
6.
Technological trends
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Factors affecting
price
Costs and expenses -to stay in business you have to make
profit. That means price must exceed costs and expenses used
in running of business
and supply is low, you can command a high price. On the other
hand, if the reserve is true-low demand and high supply you will
have to set lower prices
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1.
2.
4.
5.
Establishing an image
6.
survival
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Competitive
Loss leader
Psychological
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1.
2.
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This point will let you know how many unit you will have to
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1.
2.
3.
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5000
500-300
=25
PLACE
Products should be conveniently available for customers to
buy
Places include:
Stores
Mail order
Telesales
Internet
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The use of
e-commerce
(promoting and selling
on the internet) has
grown massively over
the last few years
CHANNELS OF DISTRIBUTION
Manufacturers
Wholesaler
Retailer
Consumer
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INFORMING
Product Launch
phase
Explanations of
Products
features & benefits
TARGET
AUDIENCE
REMINDING
Product
Sales Growth phase
Competitive
positioning
PURSUADING
Product Maturity phase
Applies to consumers memory
(brand specific)
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Advertising
Advertising
Personal
Personalselling
selling
Marketing
Marketing
Communications
Communications
mix
mix
(Promotion
(Promotionmix)
mix)
Sale
Salepromotion
promotion
Public
Publicrelations
relations
Direct
Directmarketing
marketing
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Customer
Customer
Broadcast
Internet
Outdoor
Catalog
Telemarketing
Kiosks
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the services?
of the service?
Contact
Reminders
Registration
Degree of technology
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information and
a decision support system (DSS) to
retrieve data, transform it into usable
information, and disseminate it to
users
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of the business
This information might come from scientific
meetings, trade organizations, or perhaps
from government reports
It also might include information from
salespersons or dealers about new-product
tests being conducted by competitive firms
In summary, a system information intelligence
is everyday information about developments
in the marketing environment.
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Details later.
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P r e lim in a r y
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R e s e a rc h B a s e d o n
S o u rc e o f D a ta
R e s e a rc h B a s e d o n
D a t a C o lle c t io n M e t h o d
B a s ic R e s e a r c h
P r im a r y R e s e a r c h
Q u a lit a t iv e R e s e a r c h
A p p lie d R e s e a r c h
S e c o n d a ry R e s e a rc h
Q u a n t it a t iv e R e s e a r c h
C o n c lu s iv e
P e r fo r m a n c e
M A R K E T IN G R E S E A R C H
Q U A L IT A T IV E R E S E A R C H
EXPLO RATO RY
F o c u s G ro u p ;
O b s e rv a tio n ;
O th e rs .
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Q U A N T IT A T IV E R E S E A R C H
D E S C R IP T IV E
S u r v e y re s e a rc h
CAUSAL
L a b o ra to ry E x p e rim e n t
F ie ld E x p e rim e n t
(1)
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Marketing Research
Product
Research
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Customer
Research
Pricing
Research
Sales
Research
Promotion
Research
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