intro to marketing
TRANSCRIPT
Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. - Philip Kotler
Simple Marketing System
Industry(a collection
of sellers)
Market(a collection
of Buyers)
Goods/services
Money
Communication
Information
Company orientation towards the Marketplace
Production ConceptProduction Concept
Product ConceptProduct Concept
Selling ConceptSelling Concept
Marketing ConceptMarketing Concept
Consumers prefer products that are widely available and inexpensive
Consumers favor products that offer the most quality,
performance, or innovative features
Consumers will buy products only if
the company aggressivelypromotes/sells these products
Focuses on needs/ wants of target
markets & delivering value better than competitors
• Need to Focus on Marketing Concept
• Focuses on wants of target markets & delivering value better than competitors.
• Focusing on customer needs before developing the project.• Aligning all functions of the company to focus on needs.• Realizing a profit by successfully satisfying needs over the long-term.• The marketing concept relies upon marketing research to define
market segments, their size, and their needs.
Marketing Concept
Evolving Views of Marketing’s Role
a. Marketing as anequal function
FinanceProduction
Marketing Humanresources
b. Marketing as a moreimportant function
Finance
Humanresources
Marketing
Production
Evolving Views of Marketing’s Role
e. The customer as the controllingfunction and marketing as the
integrative function
Customer
Marketing
Production
Hum
an
resources Finance
► This is a document that puts together the process that the organisation will undergo in order to achieve its marketing objectives
► It spells out the following activities that marketing managers need to do: Set marketing objectives Evaluate opportunities Create marketing strategies Prepare marketing programmes Specify expected results
Marketing Plan
The Marketing Plan – Possible Outline
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
►To select reality-based desired accomplishments (e.g., goals & objectives)
►To effectively develop or alter business strategies
►To set priorities for operational change
►To improve the organisation’s performance
The Goal of Strategic Marketing Management
►Based on Porter’s and Aaker’s work: Price advantage (cost leadership) Quality/features advantage (broad
differentiation) Marker focused advantage (focused low
cost & focused differentiation) TQM advantage (value-driven strategy
based on continual innovation in price, product & process)
Hence: Strategies
► After organisation has decided on primary competitive strategy, it must position itself by choosing a competitive role strategy: Leader: largest market share/initiator (e.g.,
McDonalds) Follower: adopter of successful strategies (A&W
Restaurant) Challenger: An innovator who challenges the norm Loner: Feels in the gap in the market place (“mom &
pop” stores)
► Don’t try all!
Competitor Role Strategy
•Thinking Like Customers
•Customer Perspective
TLC
•Critical Marketing Strategy Question
•Why should customers prefer us?
CMSQ
•Segment, Target, and Position
STP
THREE CRITICAL MARKETING CONCEPTS
► STP strategies should complement organisation’s overall generic strategy, competitive role strategy, strategic initiative & vertical coordination strategy: Market segmentation – every market made up of
distinguishable segments with different needs, buying styles, responses
Target market selection – selecting market segments which you want to serve
Positioning – choosing the 4 Ps for that segment(s)
4 P’s : Product, Price, Place, Promotion
Segment, Target & Position
Microsoft vs Apple
Microsoft:
● Is essentially a software company;
● Has been on market since 1975;
● Is designed for business;● Operating system.
Apple:
● More focused on both hardware and the consumer (rather than enterprise) side of tech;
● Has been on market since 1999;
● Is designed for young people;
● Design and style.
Microsoft vs Apple Disparities
Branding
Brand Positioning
Brand Promise
Psychology
Change
Market Dominance
Wow starts now
Touch the future
Life without wall
Windows. Where do you want to go today
The Power to Be Your Best
Think different
Byte into an Apple
Get a Mac
APPLE VS MICROSOFT : BRANDING STRATEGY
1976 1977 1985 1995 1998 2007 20130
1
2
3
4
5
6
AppleMicrosoft
1976 Apple I
1977 GUI , Apple II
1985 Steve Jobs was fired
1995 MsDOS
1998 Steve in , iMac
2007 iPhone
2013 Apple is Dominant
TIMELINE OF APPLE’S REVOLUTION
MICROSOFT VS APPLE TIMELINE
Microsoft vs Apple
In one high-growth area, smartphones, several influential analysts believe Microsoft will eventually come out on top. In another, tablets, it's getting crushed. However, Microsoft has maintained its enormous lead on the desktop.