2. Marketing Defined
• Marketing is a
process by which
companies
• 1-create value for
customers and
• 2-build strong
customer
relationships
• To capture value
from customers in
return
8. • Taste
• Size
• Color
• Effect
• Enjoyment
Benefits
Sacrifices
• Cost
• Time
• Effort
Customer
Perceived
Value
9. Market Research
• The systematic & objective identification, collection, analysis, dissemination,
and use of information that is undertaken to improve decision making related
to identifying & solving problems/opportunities in marketing.
Qualitative Research
Focus Groups
In-depth-
Interviews
Quantitative
research
Surveys
10. Competitors are
increasing
Multinationals in
the same category
Threats
Strong Demand
Low # of
competitors
High growth
Opportunities
Low awareness
Lack of cash
Weaknesses
SWOT Analysis
Strong Brand
Large Cash
Innovation
Strengths
14. 1-Market Segmentation
• Market segmentation
• Dividing a market into
smaller segments
• with distinct needs,
characteristics, or
• behavior that might require
separate
• marketing strategies or
mixes.
15. 2-MARKET TARGETING
• Market targeting is the
process of evaluating each
market segment’s
attractiveness and selecting
one or more segments to
enter
17. Positioning Statement
To ______( Target group and need)__________
____( Brand) _____ is the brand of ___________( Competitive
framework)_______
That____________( Benefit)________________
The reason is ______( Reason why)___________
The brand character ___( Brand
Character)_______________________________
18. Tide Example
To ( Target group and needs) Moms with active children and husbands
who need 1) consistent outstanding cleaning and2) total care for their
families’ s clothes ( as in keeping them looking new..etc)
Tide is a brand of(competitive framework) Laundry Care detergent that
( Benefits) is the best choice for consistent, outstanding cleaning and
total care for the family’s clothes.
19. Tide Example
Because ( Reasons why)
1. Heavy-duty cleaners and stain remover ( powerful enzymes)
2. Special fabric protectors ( Protective fiber complex)
3. Value-added branded ingredients ( Dawn, Febreeze, downy)
4. Only fabric care product to receive a good housekeeping VIP award
The brand character a perfectionist ( with traditional family values
whom you can count on to always do the job right, and go beyond
what’s expected to do even more for you.
21. Choosing the
target Segment
Most Likely
Prospects
Most important
constituency
Who within this
constituency
Similar Sets of needs and
concerns
Our Brand can Satisfy
22. Most Important Constituency
• Is it the purchaser or gatekeeper?
• Is it the ultimate user or purchaser?
• Is it the key influencer or one who would recommend the
brand.
• Influencer: Dental Professional
• Retail : Responsible for pushing the product
• Consumer : Purchaser or ultimate user
23. Who within the constituency
• Within these constituencies one has to choose
further
• Mom : is a user and a gatekeeper because she
chose and bought for the family
24. Similar set of needs and concerns
For Prospects it is very important to capture
• Values
• Attitudes
• Needs
Not all moms share the same attitudes, values
and needs.
In pealing back the onion within moms we will
identify a segment that we can target.
25. Our Brand Can Satisfy
• Our brand must satisfy the needs of the segment we have found in
step 2.
27. • We need to understand our target so well to predict their behavior to
stimuli
• We need to feed them with stimuli that will motivate them to behave
in the predicted manner.
• We need hence to move with a concrete and real definition of our
customer.
28. Bull’s Eye target
customer
• A Bull’s eye target customer
• It’s ONE living and breathing human being
• You should clearly see him/her in your mind,
you define him/her using seven essential
components
29.
30. Questions to design a target customer
profile
Demographics
• Gender
• Age
• Marital status
• Children
• Occupation
• Personal car type
• Favorite leisure activity
• Vacation destination
• Favorite shopping place
• My friends say about me
• My personal hero
Psychographics –Values
Attitudes
Current Usage and
dissatisfaction
Telling Behavior
Needs
31. Competitive framework
• More and more brands with parity performing products are aiming to
go beyond obvious competitive set of boundaries
• We need to explore and develop a “PERCEPTUAL COMPETITIVE
FRAMEWORK”
• Literal ( LCF)
• Perceptual ( PCF)
36. What Is a Product?
What is a Product? is anything that
can be offered in a market for
attention, acquisition, use, or
consumption that might satisfy a
need or want
Service is a product that consists of
activities, benefits or satisfaction
that is essentially intangible and
does not result in the ownership
of anything
Products, Services, and Experiences
38. What Is a Product?
• Product is a key element of the overall Market
Offering
• Experiences represent what buying the product or
service will do for the customer
Products, Services, and Experiences
Market Offering
Pure
Tangible
Pure Services
39. What Is a Product?
Levels of Product and Services
Core benefits represent what the buyer is really
buying.
Actual product represents the design, brand name,
and packaging that delivers the core benefit to the
customer.
Augmented product represents additional services or
benefits of the actual product.
40. What Is a Product?
Consumer
products
Industrial
products
Product and Service Classifications
41. What Is a Product?
1-Convenience products
consumer products and
services that the customer
usually buys frequently,
immediately, and with a
minimum comparison and
buying effort
• Newspapers
• Candy
• Fast food
Product and Service Classifications
42. What Is a Product?
2-Shopping products
consumer products and services that
the customer compares carefully on
suitability, quality, price, and style
• Furniture
• Cars
• Appliances
Product and Service Classifications
43. What Is a Product?
3-Specialty products
Consumer products and services with unique
characteristics or brand identification for which a
significant group of buyers is willing to make a
special purchase effort
• Medical services
• Designer clothes
• High-end electronics
Product and Service Classifications
44. What Is a Product?
4-Unsought products
Consumer products that the consumer does not
know about or knows about but does not
normally think of buying
• Life insurance
• Funeral services
• Blood donations
Product and Service Classifications
46. Product and Service Decisions
• is the level of quality that supports
the product’s positioning
Product Quality
Level
• is the product’s freedom from defects
and consistency in delivering a
targeted level of performance
Product
Conformance
Quality
Individual Product and Service Decisions
47. Product and Service Decisions
Style describes the
appearance of the product
Design contributes to a
product’s usefulness as
well as to its looks
Individual Product and Service Decisions
48. Product and Service Decisions
Packaging involves
designing and
producing the
container or wrapper
for a product
Labels identify the
product or brand,
describe attributes,
and provide
promotion
Individual Product and Service Decisions
50. Ten of the most irritating packages
Source: P. Trott (2006) Packaging and new product opportunities, University of Portsmouth Business School, Student Survey.
51.
52.
53.
54.
55. Services Marketing
In addition to traditional
marketing strategies, service
firms often require
additional strategies
• Service-profit chain
• Internal marketing
• Interactive marketing
Marketing Strategies for Service Firms
56. Services Marketing
Service-profit chain links service firm profits
with employee and customer satisfaction
Marketing Strategies for Service Firms
Internal
service
quality
Satisfied
and
productive
service
employees
Greater
service
value
Satisfied
and loyal
customers
Healthy
service
profits and
growth
57. Services Marketing
Internal marketing means that the service firm must
orient and motivate its customer contact
employees and supporting service people to
work as a team to provide customer satisfaction
Internal marketing must precede external marketing
Marketing Strategies for Service Firms
58. Services Marketing
Interactive marketing means that service quality
depends heavily on the quality of the buyer-
seller interaction during the service
encounter
• Service differentiation
• Service quality
• Service productivity
Marketing Strategies for Service Firms
59. Services Marketing
Managing service differentiation
creates a competitive advantage
from the offer, delivery, and image
of the service
• Offer can include distinctive
features
• Delivery can include more able and
reliable customer contact people,
environment, or process
• Image can include symbols and
branding
Marketing Strategies for Service Firms
61. What is a Brand?
A brand is a name, term, sign, symbol, or
design which is intended to identify the
goods or services of one seller or group of
sellers and to differentiate them from those
of competitors.
‘Words have the power to inspire, to
motivate and trigger a call to action.’
Rebecca Robins
62. A Slight Historical Overview
• The word "brand" is derived from the Old Norse
brandr, meaning "to burn." It refers to the practice of
producers burning their mark (or brand) onto their
products.
• Original motivation for branding was craftsmen
motivation to identify the fruits of their labors.
• Brands in the field of mass-marketing originated in
the 19th century with the advent of packaged goods
63. Customer-Based Brand Equity
• What is Customer-Based Brand Equity
• The deferential effect that brand Knowledge has on consumer response to
marketing of a brand. ( Keller)
• It is the set of assets and liabilities linked to a brand , its name and symbol ,
that add or subtract from the value provided by a product or service to a firm
and/or to that firm's customers (Aaker, 1991).
64. Associative Network Memory Model
• Memory as a network consisting
of :
• Nodes : Information or concepts
(Brand)
• Links: Strength of association
between nodes (Brand
Associations) Brand
Ass. 1
Ass.3
Ass.4
Ass. 5
Ass. 6
Ass.2
67. Sources of Brand Equity
•Brand Equity occurs when
•High Level of Brand awareness
•Positive Brand Image Strong, Favorable and
Unique Associations in Memory
68. Brand Awareness
• Brand Recognition
• Consumer’s ability to confirm prior exposure to the brand when given the
brand as a cue
• Brand Recall
• Consumer’s ability to retrieve the brand from memory when given the
product category as a cue. ( Mercedes for cars, Boss for fashion)
Which one is easier ?
69. Brand Image
• Controlled
• Uncontrolled (Direct Experience,
Consumer Reports, Word of Mouth
Other links)
Created through
associations
linked to the
brand.
• Strength of Associations
• Favorability of Associations
• Uniqueness of Associations
Associations
71. Brand Associations
• Strength
• Personal Relevance
• Consistency of information over time
• Favorability
• Convince Consumers that attributes and Benefits Satisfy their needs and
wants
• Uniqueness
• Unique Selling Proposition (USP)
72. Types of Brand Elements
Brand Names URLs
Logos and
Symbols
Characters Slogans Jingles
Packaging
74. Characters
• Brand Characters are special types of brand symbol ( A human real-
life characteristics
• Animated
• Live-action figures
• Benefits
• Attention getting→ Awareness
• Communicate product benefits
• Enhancement of image ( Brand Personality)
• Easily transferred across product categories
Can Dominate other brand elements and
dampen brand awareness
75.
76. Slogans
• Slogans: are short phrases that communicate
descriptive of persuasive information about
the brand
• They are powerful branding devices because
they help consumers grasp brand meaning.
• Build brand awareness
• Link brand to product category
83. What Is a Price?
Price is the amount of money charged for a product or
service. It is the sum of all the values that
consumers give up in order to gain the benefits of
having or using a product or service.
84. What Is a Price?
Price is the only element in
the marketing mix that
produces revenue; all other
elements represent costs
Price can be changed quickly
88. New Product
Pricing
Strategies
• Market Skimming : Setting a high
price for a new product to skim
maximum revenues layer by layer
• It can only be done in
• High product quality and company
image
• Small volumes production costs
are not high
• Competitors cannot easily enter
the market
91. New Product
Pricing Strategies
• Market Penetration: Setting a low
price for a new product in order
to attract a large number of
buyers and a large market share
• It can only be done in
• High price-sensitive market
• Production an distribution
costs fall as volumes increase
• Low pricing position could be
maintained
92.
93. Don’t Make 50 %
Gross Margin if
you want to
penetrate
97. The promotion mix is the specific blend of advertising,
public relations, personal selling, and direct-marketing
tools that the company uses to persuasively
communicate customer value and build customer
relationships
The Promotion Mix
98. The Promotion
Mix
• Advertising is any paid form of
non-personal presentation and
promotion of ideas, goods, or
services by an identified
sponsor
• Broadcast
• Print
• Internet
• Outdoor
99. The Promotion
Mix
• Sales promotion is the short-
term incentive to encourage
the purchase or sale of a
product or service
• Discounts
• Coupons
• Displays
• Demonstrations
100. The Promotion
Mix
• Public relations involves building
good relations with the
company’s various publics by
obtaining favorable publicity,
building up a good corporate
image, and handling or heading
off unfavorable rumors, stories,
and events
• Press releases
• Sponsorships
• Special events
• Web pages
101. The Promotion
Mix
• Personal selling is the personal
presentation by the firm’s
sales force for the purpose of
making sales and building
customer relationships
• Sales presentations
• Trade shows
• Incentive programs
102. The Promotion
Mix
• Direct marketing involves making direct
connections with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships—through the use of
direct mail, telephone, direct-response
television, e-mail, and the Internet to
communicate directly with specific
consumers
• Catalog
• Telemarketing
• Kiosks
106. • “make and sell” view includes the firm’s raw
materials, productive inputs, and factory
capacity
Supply
chain
• “sense and respond” view suggests that
planning starts with the needs of the target
customer, and the firm responds to these needs
by organizing a chain of resources and activities
with the goal of creating customer value
Demand
chain
Supply Chains and the Value Delivery Network
107. Setting Channel Objectives
Channel Design Decisions
• What segments to serve
• Best channels to use
• Minimize the cost of meeting customer service
requirements
108. Channel Design Decisions
Number of Intermediaries
Selective
distribution
Television and home appliance
Exclusive
distribution
Luxury automobiles and prestige clothing
Intensive
distribution
Candy and toothpaste
