Click to edit Master title style,,Click to edit Master text styles,,Second level,,Third level,,Fourth level,,Fifth level,,,,*,Core marketing concept,markets,Exchange,transactions and relationships,Needs wants,,demands,Products,Value satisfaction quality,Marketing,1,,Relationship marketing,?,The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.,2,,Customer,A customer is the most important person ever in this company--in person or by mail. A customer is not dependent on us, we are dependent on him. A customer is not an interruption of our work, he is the purpose of it. We are not doing a favor by serving him, he is doing us a favor by giving us the opportunity to do so.,3,,Customer,,A customer is not someone to argue or match wits with---nobody ever won an argument with a customer. A customer is a person who brings us his wants--it is our job to handle them profitably to him and to ourselves.,4,,Defining,,the company,,mission,Setting company,,objectives,,and goals,Designing,,the business,,portfolio,Planning, marketing,,and other functional,,strategies,Business unit,product,,,and market level,Corporate level,--Steps in strategic planning,Source: Marketing,5,,??,???,Relative market share,High,Low,,High,Low,Market growth rate,Star,Question mark,Cash cow,Dog,6,,Stars,Stars are high-growth, high-shared business or products. They often need heavy investment to finance their rapid growth. Eventually, their growth will slow down, and they will turn into cash cows.,Marketing,7,,Cash cows,Cash cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of cash that the company uses to pay its bills and to support other SBUs that need investment.,8,,Question marks,Question marks are low share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.,9,,Dogs,Dogs are low-growth, low-shared business and products. They may generate enough cash to maintain themselves, but do not promise to be large sources of cash.,10,,Competitors,Publics,Marketing,,channels,suppliers,Target consumers,Place,Price,Product,Promotion,Marketing analysis,Marketing planning,Marketing implementation,Marketing control,Demographic- economic environment,Technological natural environment,Social cultural environment,Political-legal environment,Factors influencing company marketing strategy,Marketing,11,,Marketing segmentation,Dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes.,marketing,12,,Product,,Product variety,,Quality,,Design,,Features,,Brand name,,Packaging,,Sizes,,Services,,Warranties,,Returns,Price,,List price,,Discounts,,Allowances,,Payment period,,Credit terms,Place,,Channels,,Assortments,,Locations,,Inventory,,Transportation,,Logistics,Promotion,,Advertising,,Personal selling,,Sales promotion,,Public relations,TARGET,,CUSTOMERS,,,INTENDED,,POSITIONING,The four Ps of the marketing mix,Marketing,13,,ANALYSIS,Planning,,Develop strategic,,plans,,,,,,Developing,,marketing,,plans,,Implementation,,Carry out the,,plans,,,,,,,,Control,,Measure result,,,,Evaluate result,,,,Take corrective,,action,The relationship between analysis, planing, implementation,and control,Marketing,14,,Contents of a marketing plan,15,1. Executive summary,Presents a brief overview of the proposed plan for quick management review,16,2.Current marketing situation,,Presents relevant background data,,on the market, product competition,,and distribution.,17,,3. Threats and opportunity analysis,,Identifies the main threats and opportunities that might impact the product.,18,,4. Objectives and issues,Defines the company’s objectives for the product in the areas of sales, market share, and profit, and the issues that will affect these objectives.,19,,5. Marketing strategy,Presents the broad marketing approach that will be used to achieve the plan’s objectives.,20,,6. Action programs,Specifies what will be done, who will do it, when it will be done, and how much it will cost.,21,,7. Budgets,A projected profit and loss statement that forecasts the expected financial outcomes from the plan.,22,,8. Controls,Indicates how the progress of the,,,plan will be monitored.,23,,,,Set goals,,What do we want,,to achieve,Measure,,performance,,what is,,happening,Evaluate,,performance,,Why is it,,happening,Take corrective,,action,,What should we,,do about it,Marketing control process,Marketing,24,,Marketing intermediaries,Firms that help the company to promote, sell, and distribute its goods to final buyers; they include resellers, physical distribution firms, marketing services agencies, and financial intermediaries.,25,,Demography,The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.,Marketing,26,,Marketing,,managers,,,Analysis,,,Planning,,,Implementation,,,Organization,,,Control,,Marketing,,environment,,,Target,,markets,,,Marketing,,channels,,,Competitors,,,Publics,,,Macro-,,environment,,forces,Internal,,records,Assessing,,information,,needs,,Marketing information system,,Developing information,Marketing,,intelligence,Distributing,,information,Information,,analysis,Marketing,,research,Marketing decisions and communications,Marketing,27,,Cultural,,,,culture,,,,subculture,,,,social class,Social,,,,reference,,,,family,,,,roles and status,Personal,,,age and life,,cycle stage,,,occupation,,economic situation,,,lifestyle,,,personality and,,self-concept,Psychological,,,motivation,,,perception,,,learning,,,beliefs and,,attitudes,Buyer,Factors influencing consumer behavior,Marketing,28,,Characteristics of Seven Major American Social Classes,29,Upper uppers,Upper uppers are the social elite who live on inherited wealth and have well-known family backgrounds. They give large sums to charity, run debutante balls, own more than one home,and send their children to the finest schools. They are a market for jewelry, antiques, home, and vacations. They often buy and dress conservatively rather than showing off their wealth. While small in number, upper uppers serves as a reference group for others.,Less than 1 percent,30,,Lower uppers,Lower uppers have earned high income and wealth through exceptional ability in the profession or business. They usually begin in the middle class. They tend to be active in social and civic affairs and buy for themselves and their children the symbols of status,such as expensive homes, education's,swimming pools, and automobiles. They include the new rich who consume conspicuously to impress those below them. They want to be accepted in the upper-upper stratum, a status more likely to be achieved by their children than themselves.,About 2 percent,31,,Upper middles,Upper middles possess neither family status nor unusual wealth. They are primarily concerned with “career.” they have attained positions as professionals, independent businesspersons, and corporate managers. They believe in education and want their children to develop professional or administrative skills. They are joiners and highly civic-minded. They are the quality market for good homes, clothes, furniture, and appliances.,,12 percent,32,,Middle classes,The middle class is made up of average-pay white-and blue-collar workers who live on the better side of town and try to do the proper things. To keep up with the trends, they often buy products that are popular. Most are concerned with fashion, seeking the better brand names. Better living means owning a nice home in a nice neighborhood with good school.They believe in spending more money on worthwhile experiences for their children and aiming them toward a college education.,32 percent,33,,Working classes,The working class consists of those who lead a “working class lifestyle,” whatever their income, school background, or job. They depend heavily on relatives for economic and emotional support, for advice on purchases, and for assistance in times of trouble. The working class maintains sharper sex role divisions and stereotyping.,38 percent,34,,Upper lowers,Upper lowers are working(are not on welfare), although their living standard is just above poverty. They perform unskilled work for very poor pay although they strive toward a higher class. Often, upper lowers lack education. Although they fall near the poverty line financially, they manage to “present a picture of self-discipline” and “maintain some effort at cleanliness”.,9 percent,35,,Lower lowers,Lower lowers are on welfare, visibly poverty stricken, and usually out of work or have “the dirtiest job”. Often, they are not interested in finding a job and are permanently dependent in public aid or charity for income. Their homes, clothes, and possessions are “dirty”, “raggedy,” and “broken-down”.,7 percent,36,,Self-,,actualization,,needs,,,self-development,,and realization,Esteem needs,,,self-esteem,recognition,status,Social needs,,sense of belongings, love,Safety needs,,security, protection,Physiological needs,,,hunger, thirst,Maslow’s hierarchy needs,Marketing,37,,Perception,The process by which people select, organize and interpret information to form a meaningful picture of the world.,Marketing,38,,Stages in the Adoption Process,39,Awareness,The consumer becomes aware of the new product, but lacks information about it.,40,,Interest,The consumer seeks information about the new product.,41,,Evaluation,The consumer considers whether trying the new product makes sense.,42,,Trial,The consumer tries the new product on a small scale to improve his or her estimate of its value.,43,,Adoption,The consumer decides to make full, regular use of the new product.,44,,13,1/2,%,,Early,,adopters,34%,,Early,,majority,,34%,,Late,,majority,,16%,,laggards,,21/2%,,Innovators,,Time of adoption of innovations,,Source: Marketing,45,,Environmental,,,level of primary,,demand,,economic outlook,,cost of money,,supply conditions,,rate of technological,,change,,political and,,regulatory,,developments,,competitive,,developments,Organizational,,,objectives,,,policies,,,procedures,,,organizational,,structure,,,systems,,Interpersonal,,,authority,,,status,,,empathy,,,persuasiveness,,,Individual,,age,,,education,,,job position,,,personality,,,risk attitudes,Buyers,Major influences on business buyer behavior,Marketing,46,,Procter & Gamble’s segments,47,Tide:,Is “so powerful, it cleans down to the fiber.” It’s the all-purpose family detergent for extra-tough laundry jobs. “tide’s in, dirt’s out.”,Tide with bleach,is “so powerful, it whitens down to the fiber.”,48,,Cheer with Color Guard:,,Gives “outstanding cleaning and color protection. So your family’s clothes look clean, bright, and more like new.” cheer is also specially formulated for use in hot, warm, or cold water---it’s “all tempera-cheer.”,Cheer free,is “dermatologist tested…..contains no irritating perfume or dye.”,49,,Bold:,Is the detergent with fabric softener. It “cleans, softens, and controls static.” bold liquid adds “the fresh fabric softener scent.”,50,,Gain:,Originally P&G’s “enzyme” detergent, was repositioned as the detergent that gives you clean, fresh-smelling clothes---it “freshens like sunshine.”,51,,Era:,Has “built-in stain removers.” it “gets tough stains out and does a great job on your whole wash too.”,52,,Oxydol:,Contains bleach. It “makes your white clothes really white and your colored clothes really bright. So don’t reach for the bleach---grab a box of OX!”,53,,Solo:,Contains detergent and fabric softener in liquid form. It’s targeted heavily toward the Northeast, a strong liquid detergent market.,54,,Dreft:,Is also formulated for baby’s diapers and clothes. It contains borax, “nature’s natural sweetener” for “a clean you can trust.”,55,,Ivory snow:,Is “Ninety-nine and forty-four one hundredths percent ” it’s the “mild, gentle soap for diapers and baby clothes.”,56,,Ariel:,Is a tough cleaner targeted to the,,Hispanic market. It’s also the number one brand in Mexico and P&G’s major brand in Europe.,57,,1. Identify bases for,,segmenting the market.,,2. Develop profiles of,,resulting segments,3. Develop measures of,,segment attractiveness,4. Select the target,,segment(s),5. Develop positioning for,,each target segment,6. Develop marketing,,mix for each target segment,Market segmentation,Market positioning,Source: Marketing,58,,Major Segmentation Variables for Consumer Market,59,Geographic,60,World region or country,North America, Western Europe, Middle East, Pacific Rim ,China, India, Canada, Mexico.,61,,Country region,Pacific, Mountain, West North Central, West South Central, East North Central, East South Central, South Atlantic, Middle Atlantic, New England.,62,,City or metro size,Under 5,000; 5,000--20,000; 20,000--50,000; 50,000--100,000; 100,000--250,000; 250,000--500,000; 500,000--1,000,000; 1,000,000--4,000,000; 4,000,000 or over,63,,Density,Urban, suburban, rural,64,Climate,Northern, southern,65,Demographic,66,Age,Under 6, 6-11, 12-19, 20-34, 35-49, 50-64, 65+,67,,Gender,Male, Female,68,,Family size,1-2, 3-4, 5+,69,,Family lifestyle,Young, single, young,married, no children, young, married with children; older, married with children; older, married, no children under 18; older, single; other,70,,Income,Under $10,000; $10,000--$20,000; $20,000--$30,000; $30,000--$50,000; $50,000--$100,000; $100,000 and over,71,,Occupation,Professional and technical; managers, officials, and proprietors; clerical, sales; craftspeople; foremen; operatives; farmers; retired; students; homemakers; unemployed,72,,Education,Grade school or less; some high school; high school graduate; some college; college graduate,73,,Religion,Catholic, Protestant, Jewish, Muslim, Hindu, other,74,,Race,White, African American, Asian, Hispanic,75,,Nationality,North American, south American, British, French,German,Italian, Japanese,76,,Psychographic,77,Social class,Lower lowers, upper lower, working class, middle class, upper middles, lower uppers, upper uppers,78,,Lifestyle,Achievers, strivers,,,strugglers,79,,Personality,Compulsive,,,gregarious,,,authoritarian,,,ambitious,80,,Behavioral,81,Occasions,Regular occasion,,,special occasion,82,,Benefits,Quality, service,,,economy, convenience, speed,83,,Users status,Nonusers, ex-user, potential users, first-time users, regular users,84,,Usage rate,Light users, medium users, heavy users,85,,Loyalty status,None, medium, strong,,,absolute,86,,Readiness stage,Unawareness, aware, informed, interested, desirous, intending to buy,87,,Attitude toward product,Enthusiastic, positive, indifferent, negative, hostile,88,,Product differentiation,,,Services differentiation,,,Personnel differentiation,,,Image differentiation,,Identify Possible Competitive Advantages,Marketing,89,,Core,,benefit,,or,,service,After-,,sale,,service,Warranty,Delivery,,and,,credit,Installation,packaging,Features,Design,Quality,,level,Brand,,name,Augmented product,Actual product,Core product,Three levels of products,Source: Marketing,90,,Sales and,,profits($),Losses/,,investment($),Introduction,Product,,develop-,,ment,,stage,Growth,Maturity,Decline,Time,Profits,0,Sales,Source: Marketing,91,,Sales Low sales Rapidly rising Peak sales Declining,,sales sales,,,,Cost High cost per Average cost Low cost Low cost,,customer per customer per customer per customer,,Profits Negative Rising profits High profits Declining,,profits,,Characteristics,92,,Customers Innovators Early adopters Middle majority Laggards,,Competitors Few Growing number Stable number Declining,,beginning to number,,decline,,Characteristics,93,,Marketing,Objectives,Create product Maximize Maximize reduce,,and trial market share profit while expenditure,,defending and milk,,market share the brand,,Strategies,Product Offer a basic Offer product Diversify Phase,,product extensions, brand and out,,service, warranty models weak,,items,,94,,Strategies,Product offer a basic Offer product Diversify Phase out,,product extensions, brand weak items,,service, warranty and model,,Price Use cost-plus Price to penetrate Price to cut price,,formula market match or,,best competitors,,Distribution,,Build Build intensive Build more go selective:,,selective distribution intensive phase out,,distribution distribution unprofitable,,outlet,,95,,Strategies,Advertising Build product Build awareness Stress brand Reduce,,awareness and interest in differences to level,,among early mass market and benefits needed,,adopters and to retain,,dealers hard-core,,loyal,,,,,Sales Use heavy sales Reduce to take Increase to Reduce,,promotion promotion to advantage of encourage to,,entice trial heavy consumer brand minimal,,demand switching level,,96,,