Introduction to Business

Chapter # 13

MARKETING STRATEGYMARKETING STRATEGY

Shafayet Ullah

SECTION: A3 and A4

MarketingMarketing

Marketing is the process of determining customer needs and wants and then providing customers with goods and services that meet or exceed their expectations.

MarketMarket

Market is a place where Actual Buyers and Actual Sellers interact with each other in order to exchange something of value.

People Who Show NeedS

Resources to Exchange

Willingness to Exchange

Market – Buyers who share a particular need or want that can be satisfied through exchange

Actual Buyers

Actual Sellers

Who Purchases Products and Who Purchases Products and Services?Services?

ExchangeExchange

The process by which parties provide something of value to one another to satisfy the needs of each.

People with the authority, financial ability and willingness to purchase a product or service.

The Exchange ProcessThe Exchange Process

Seller

Buyer

Goods Services Ideas

Provides a needed product

Offers something in return

Consumer MarketConsumer Market

People who purchase products for personal use.

Industrial MarketIndustrial MarketThose who purchase products to use in the production of other products or to resell.

Selecting a Target Selecting a Target Market Market Market Segment

A group of individuals with one or more similar product needs

Target MarketA group to which a firm directs its marketing activities

Marketing MixThe marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market.

Marketing MixMarketing MixThere are four tools which are used by the firms Product Price Place / Distribution Promotion

These four factors are also called four P’s.

The FOUR P’s are used to satisfy the needs of the target market.

Marketing Marketing MixMix

Marketing MixMarketing MixProduct

A product can be a good, a service or an idea. Manufacturing a product is a production function. But marketing managers have the responsibility to inform the production people about products consumers would find appealing and about existing products that need to be changed or that are no longer needed.

Marketing MixMarketing Mix

PriceOnce a firm develops a product, it must set a price. Pricing requires crucial decision making because price is very visible to the consumer and is closely tied a company profit.

Marketing MixMarketing Mix

Place / DistributionEven a terrific product, priced right, can fail if it is not available where and when the consumer wants it. Distribution of products, a complex process, involves decisions about transportation, storage and store selection.

Marketing MixMarketing Mix

PromotionBefore consumer can purchase a product, consumers must know about its availability, its characteristics or benefits and where it can be purchases. Promotion, consisting of advertising, personal selling, sales promotion and publicity informs or reminds the target market about a product and tries to persuade consumers to buy or adopt it.

Product Life CycleProduct Life Cycle

The theoretical life of a product, consisting of four stages: introduction, growth, maturity and decline.

Product Life CycleProduct Life CycleIntroduction

A period of slow sales growth as product is introduced in the market. Profits are nonexistent because of heavy expenses incurred with product introduction.

GrowthA period of rapid market acceptance and substantial profit improvement.

Product Life CycleProduct Life CycleMaturity

A period of a slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased competition.

DeclineThe period when sales slow a downward drift and loss occurs.

Product PromotionProduct PromotionThe communication of favorable, persuasive information about a firm or product in order to influence potential buyers

Promotion MixThe combination of advertising, personal selling, sales promotion and publicity used to promote a specific product.

Product PromotionProduct PromotionAdvertising

A paid form of non-personal communication to a target audience through a mass medium such as television, newspaper or magazines

Personal SellingPerson-to-person communication with one of more prospective customers in order to make a sale

Product PromotionProduct PromotionSales Promotion

An activities that offers customers or marketing intermediaries direct incentives for purchasing a product

PublicityA non-personal form of communication transmitted on news story form and not paid for directly by a sponsor.

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