Unit 7 :
Marketing
What is marketing?
• According to the social definition,
marketing is societal process by which
individuals or groups obtain what they
need and want through creating,
offering, exchanging products and
services of value freely with others.
What is marketed?
Marketing people are involved in
marketing 10 types of entities: goods,
services, experiences, events, persons,
places, properties, organizations,
information, and ideas.
Marketplace
• The marketplace is physical, such as a
store you shop in;
Market
• Market is condition that permits buyers
and sellers work together.
• Marketspace is digital, as when you
shop on the Internet.
Market research
• Secondary data
• Primary data
Core Marketing Concepts
• Needs, Wants, and Demands
• Market Segmentation
• Brands and Trademarks
• Value and Satisfaction
• Marketing Channels
Needs, Wants, and
Demands
• Needs are the basic human
requirements. People need air, food,
water, clothing, and shelter to survive.
People also have strong needs for
recreation, education, and
entertainment.
• These needs become wants when they
are directed to specific objects that
might satisfy the need.
Example
• A consumer in the United States needs
food but may want a hamburger, french
fries, and a soft drink. A person in
Mauritius needs food but may want a
mango, rice, lentils, and beans. Wants
are shaped by our society.
Demand
• Demands are wants for specific
products backed by an ability to pay.
Many people want a Mercedes; only a
few are willing and able to buy one.
Companies must measure not only how
many people want their product, but
also how many would actually be willing
and able to buy it.
Markets Segmentation
• Who is the target market for a product?
- Industrial product (B2B)
- Consumer product (B2C)
- Public goods (B2G)
4 basic methods for
segmenting a market
• Product –related: comfort, safety, luxury,
good value-for-money, convenience,
durability, etc.
• Demographic: age, gender, education,
family life cycle, income, etc.
• Psychographic: attitudes, lifestyle,
opinions, values, self-image, etc.
• Geographical: region, postcode, etc.
Example
• For example, Volvo develops its cars for
buyers to whom safety is a major
concern. Volvo, therefore, positions its
car as the safest a customer can buy.
Companies do best when they choose
their target market(s) carefully and
prepare tailored marketing programs.
Brand and Trademark
Brand: a name, symbol or design
(or some combination) that
identify a product
Trademark: a name or symbol that
cannot be used by another
producer
Value and Satisfaction
Value reflects the sum of the perceived tangible
and intangible benefits and costs to customers.
It’s primarily a combination of quality, service,
and price (“qsp”), called the “customer value
triad.”
Satisfaction reflects a person’s judgments of a
product’s perceived performance in relationship
to expectations. If the performance falls short
of expectations, the customer is dissatisfied and
disappointed. If it matches expectations, the
customer is satisfied. If it exceeds them, the
customer is delighted.
Marketing Channels
Communication channels deliver and receive
messages from target buyers and include
newspapers, magazines, radio, television, mail,
telephone, billboards, posters, fliers, CDs
Distribution channels to display, sell, or deliver the
physical products or service(s) to the buyer or user.
They include distributors, wholesalers, retailers,
and agents.
Service channels to carry out transactions with
potential buyers. Service channels include
warehouses, transportation companies, banks, and
insurance companies that facilitate transactions..
Marketing strategy
• Analysis of the wider business environment. More
specifically: the political/legal, economic,
social/cultural, and technological factors operating
in the external world. (PEST)
• SWOT/ 5 forces - Poster
• Identification and analysis of target markets for new
products.
• Sales goals in term of volume and revenue: pricing
strategy
• The marketing budget
• Elements of the marketing mix and timing
Marketing Mix
• Marketing mix is the set of marketing
tools
that the firm uses to pursue its
marketing objectives in the target
market. It is classified these tools into
four broad groups that he called the
four Ps of marketing: product, price,
place, and promotion.
Marketing Mix
Product Price Promotio Place
n
Product List price Sales Channels
variety Discounts promotion Coverage
Quality Allowances Advertisin Assortment
Design Payment g s
Features period Sales Locations
Brand Credit force Inventory
name terms Public Transport
Packaging relations
Sizes Direct
Services marketing
Four Ps and Four Cs
Four Ps Four Cs
Product Customer
Price solution
Place Customer cost
Promotion Convenience
Communication
7 Ps
• Product
• Price
• Place
• Promotion
• Process
• People
• Physical evidence
Digital Marketing
• It is a domain that involves scaling brands and
products online to bring about value addition
by making use of a plethora of concepts, such
as SEO, and channels such as email, social
media, and more.
• In Inbound Marketing, the main focus is
customer-centric, and the content is created
around that, e.g., blogs, social media channels,
and more.
• Outbound marketing deals with the direct
need of the product and is usually distributed
to a wideband audience, through billboards,
televised advertisements, magazines, etc.
Benefits of Digital
Marketing
• • It provides you with various platforms
to target different types of people. You
can use them to post different types of
content and engage your audience.
• • You might not be able to reach all your
target audience through one of these
types. By using different ones, you can at
least ensure that your campaign has
reached the most number of people.
Top 5 Cs of Digital
Marketing
• - Content
•- Creativity
•- Consistency
•- Communication
•- Customization
Can Digital Marketing
completely replace traditional
marketing in the future?
• As the general train of thought goes,
Digital Marketing has a very strong
footing in today’s world, and companies
and customers are trying to bring about
the best by making full use of this. It
can be said that instead of overpowering
each other, Traditional Marketing and
Digital Marketing are going hand in
hand adding value to each other.
The life cycle of a shopper
on a website
• As soon as users land on the website, they
become prospects when looking around
the site to see if something interests them.
If there is something that they’re
interested in and if they interact with the
website by providing details or adding the
item to the cart, they become leads. Leads
get converted into customers/sales when
they successfully complete the transaction.
• Introduction Stage – This stage of the cycle
could be the most expensive for a company
launching a new product. The size of the
market for the product is small, which
means sales are low, although they will be
increasing. On the other hand, the cost of
things like research and development,
consumer testing, and the marketing
needed to launch the product can be very
high, especially if it’s a competitive sector.
Growth Stage – The growth stage is typically characterized by a
strong growth in sales and profits, and because the company can
start to benefit from economies of scale in production, the profit
margins, as well as the overall amount of profit, will increase. This
makes it possible for businesses to invest more money in the
promotional activity to maximize the potential of this growth stage.
• Maturity Stage – During the maturity stage,
the product is established and the aim for
the manufacturer is now to maintain the
market share they have built up. This is
probably the most competitive time for
most products and businesses need to
invest wisely in any marketing they
undertake. They also need to consider any
product modifications or improvements to
the production process which might give
them a competitive advantage.
Decline Stage – Eventually, the market for a product will
start to shrink, and this is what’s known as the decline
stage. This shrinkage could be due to the market
becoming saturated (i.e. all the customers who will buy
the product have already purchased it), or because the
consumers are switching to a different type of product.
While this decline may be inevitable, it may still be
possible for companies to make some profit by switching
to less-expensive production methods and cheaper
markets.
Boston Matrix
Terms Vietnamese equivalents
Market penetration Chiến lược định giá
pricing thâm nhâm thị trường
market skimming Chíến lược định giá hớt
váng
Current - revenue Chiến lượng định giá
pricing nhằm tối đa doanh thu
trong ngắn hạn.
Loss-leader Chính sách bán hạ giá
pricing trước
mark-up/ Chính sách định giá
cost-plus pricing dựa trên tổng chi phí
Mark-up: mức biên Định giá theo kiểu
lãi cộng thêm vào phí tổn
going-rate pricing Chiến lược định giá
theo mức hiện hành
Định giá theo thời giá
demand- deferential Chính sách định giá
pricing phân biệt
price discrimination
perceived-value Định giá dựa trên giá
pricing trị
value-based pricing
