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Week 09

        Understanding
    Marketing Process
and Consumer Behavior


        Presented by: Anna Riana Putriya
What is Marketing ?


                                         ?
 Marketing is a societal process by which individuals and


                                      s…
groups obtain what they need and want through creating,


                                    le
offering, and freely exchanging products and services of


                                 sa
                     value with others.


                =
                   – Philip Kotler (p. 7) –



           ting
   Process of planning and executing the conception,


         ke
 pricing, promotion and distribution of ideas, goods and

      ar
 services to create exchanges that satisfy individual and

    M           organizational objectives
                      – Griffin, 2002 –


                                  Presented by: Anna Riana Putriya
Company Orientations towards the Marketplace

                       Consumers prefer products that are
 Production Concept
  Production Concept   widely available and inexpensive


                       Consumers favor products that
 Product Concept
  Product Concept      offer the most quality, performance,
                       or innovative features

                       Consumers will buy products only if
 Selling Concept
  Selling Concept      the company aggressively
                       promotes/sells these products

                       Focuses on needs/ wants of target
 Marketing Concept
 Marketing Concept     markets & delivering value
                       better than competitors


                                    Presented by: Anna Riana Putriya
Marketing: Providing Value & Satisfaction

 Value and Benefits

  Value is the relative comparison of a
  products benefits versus its costs

  Benefits include the functions of the product
  and the emotional satisfactions associated
  with owning, experiencing or possessing it


               Value = Benefits
                        Costs



                                  Presented by: Anna Riana Putriya
Benefit VS Cost


Alternative 1




                                  Alternative 2




                  Presented by: Anna Riana Putriya
Marketing: Providing Value & Satisfaction

Value and Utility
  Utility is the ability of a product to satisfy a human
   want or need. Four kinds:
       Time Utility
       Place Utility
       Ownership Utility
       Form Utility




                                 Presented by: Anna Riana Putriya
Marketing: Goods, Services and Ideas
• Consumer goods are products
 purchased by consumers for personal
 use


• Industrial goods are products used by
 companies to produce other products



• Services are intangible products that
 can be purchased



                                Presented by: Anna Riana Putriya
The Marketing Environment

External environment is the outside factors that influence
marketing programs by posing opportunities and threats.




                                    Presented by: Anna Riana Putriya
Competitive Environment

a. Substitute products differ from those of competitors
  but can fill the same need




b. Brand competition occurs between similar
  products




                                Presented by: Anna Riana Putriya
c. International competition matches domestic
  products against foreign products




                            Presented by: Anna Riana Putriya
The Four Ps and The Four Cs


                     Marketing
                       Mix


                                                    Place
 Product


                                                Convenience
Customer
 Solution    Price               Promotion



            Customer
                            Communication
              Cost
                                 Presented by: Anna Riana Putriya
What is a Product ?

 A product is a good, service or idea designed
       to fill a consumer need or want.




                           Presented by: Anna Riana Putriya
PENDUKUNG
               Barang                    Jasa

            Meja                 Mobil
            Sepatu               Arloji mahal
   Barang   Gula                 Mainframe Computer
            Minyak tanah
UTAMA
            Airline               Konsultasi
     Jasa   Software              Edukasi
            Telepon               Baby-
                                  Baby-sitting
            Hotel


                           Presented by: Anna Riana Putriya
Product differentiation is the creation of a product
feature or product image that differs enough from
    competing products to attract consumers




  How do they differentiate themselves ?

                              Presented by: Anna Riana Putriya
What is Pricing ?
Pricing is selecting the best price at which to sell a
product.
     Prices must support a variety of costs
     Prices must be competitive
      - Low- and high-price strategies can be effective in different
        situations




                                        Presented by: Anna Riana Putriya
What is Promotion ?


Promotion is the techniques for communicating
information about products. Four promotional tools:
   a. Advertising
   b. Personal Selling
   c. Sales Promotions
   d. Public Relations




                               Presented by: Anna Riana Putriya
What is Distribution or Place ?

Distribution is part of the marketing mix concerned
with getting products from producers to consumers.
     Decisions about warehousing, inventory control and
     transportation options
     Decisions about channels




                                Presented by: Anna Riana Putriya
What is Market Segmentation ?


Market segmentation is the process of dividing a
market into categories of customer types




                              Presented by: Anna Riana Putriya
Identifying Market Segments

1. Geographic variables are geographical units




2. Demographic variables are characteristics of
   populations




                            Presented by: Anna Riana Putriya
Demographic Variables




                        Presented by: Anna Riana Putriya
3. Psychographic variables are consumer
  characteristics such as lifestyles, opinions,
  interests and attitudes

4. Behavioral variables are consumer
  characteristics based on the use of a
  product, benefits sought from it, reasons
  for its purchase and brand loyalty

                                           Toothpaste w/
                                           -Whiteners
                                           -Fluoride
                                           -etc.

                                Presented by: Anna Riana Putriya
What is Target Market ?

 Target markets are groups of people with similar
                wants and needs




                              Presented by: Anna Riana Putriya
Market Research & the Marketing Process




                             Study of consumer needs
                             and wants and the ways
                             in which sellers can best
                                    meet them


                       Presented by: Anna Riana Putriya
What is Consumer Behavior ?

Study of the decision process by which people
          buy and consumer products




                           Presented by: Anna Riana Putriya
Brand Loyalty




           Pattern of regular consumer
              purchasing based on
           satisfaction with a product




                                Presented by: Anna Riana Putriya
Consumer Buying Behavior




                   Presented by: Anna Riana Putriya
Organizational Markets

a. Industrial market includes businesses that buy
  goods to be converted into other products or used
  during production
b. Reseller market consists of intermediaries that buy
  and resell finished goods
c. Government and institutional market consists of
  nongovernmental buyers of goods and services




                                Presented by: Anna Riana Putriya
The International Marketing Mix
 International Products
 Some products can be sold
 abroad with few changes
 International Pricing
 Marketers must consider the higher costs of
 transporting and selling products abroad
 International Distribution
 Delays in starting new distribution networks can be
 costly
 International Promotion
 A good ad campaign is a good campaign just
 about everywhere



                               Presented by: Anna Riana Putriya
Small Business and the Marketing Mix
 Small-Business Products --> Small firms should
 understand consumer wants before creating new
 products or services

 Small-Business Pricing -- > Small firms should set prices
 by assessing costs

 Small-Business Distribution -- > Small firms should
 select a facility location aimed at attracting and
 retaining customers

 Small-Business Promotion -- > Small firms should plan
 promotional expenses as part of start-up costs


                                  Presented by: Anna Riana Putriya

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Business w09 Understanding Marketing @1

  • 1. Week 09 Understanding Marketing Process and Consumer Behavior Presented by: Anna Riana Putriya
  • 2. What is Marketing ? ? Marketing is a societal process by which individuals and s… groups obtain what they need and want through creating, le offering, and freely exchanging products and services of sa value with others. = – Philip Kotler (p. 7) – ting Process of planning and executing the conception, ke pricing, promotion and distribution of ideas, goods and ar services to create exchanges that satisfy individual and M organizational objectives – Griffin, 2002 – Presented by: Anna Riana Putriya
  • 3. Company Orientations towards the Marketplace Consumers prefer products that are Production Concept Production Concept widely available and inexpensive Consumers favor products that Product Concept Product Concept offer the most quality, performance, or innovative features Consumers will buy products only if Selling Concept Selling Concept the company aggressively promotes/sells these products Focuses on needs/ wants of target Marketing Concept Marketing Concept markets & delivering value better than competitors Presented by: Anna Riana Putriya
  • 4. Marketing: Providing Value & Satisfaction Value and Benefits Value is the relative comparison of a products benefits versus its costs Benefits include the functions of the product and the emotional satisfactions associated with owning, experiencing or possessing it Value = Benefits Costs Presented by: Anna Riana Putriya
  • 5. Benefit VS Cost Alternative 1 Alternative 2 Presented by: Anna Riana Putriya
  • 6. Marketing: Providing Value & Satisfaction Value and Utility Utility is the ability of a product to satisfy a human want or need. Four kinds: Time Utility Place Utility Ownership Utility Form Utility Presented by: Anna Riana Putriya
  • 7. Marketing: Goods, Services and Ideas • Consumer goods are products purchased by consumers for personal use • Industrial goods are products used by companies to produce other products • Services are intangible products that can be purchased Presented by: Anna Riana Putriya
  • 8. The Marketing Environment External environment is the outside factors that influence marketing programs by posing opportunities and threats. Presented by: Anna Riana Putriya
  • 9. Competitive Environment a. Substitute products differ from those of competitors but can fill the same need b. Brand competition occurs between similar products Presented by: Anna Riana Putriya
  • 10. c. International competition matches domestic products against foreign products Presented by: Anna Riana Putriya
  • 11. The Four Ps and The Four Cs Marketing Mix Place Product Convenience Customer Solution Price Promotion Customer Communication Cost Presented by: Anna Riana Putriya
  • 12. What is a Product ? A product is a good, service or idea designed to fill a consumer need or want. Presented by: Anna Riana Putriya
  • 13. PENDUKUNG Barang Jasa Meja Mobil Sepatu Arloji mahal Barang Gula Mainframe Computer Minyak tanah UTAMA Airline Konsultasi Jasa Software Edukasi Telepon Baby- Baby-sitting Hotel Presented by: Anna Riana Putriya
  • 14. Product differentiation is the creation of a product feature or product image that differs enough from competing products to attract consumers How do they differentiate themselves ? Presented by: Anna Riana Putriya
  • 15. What is Pricing ? Pricing is selecting the best price at which to sell a product. Prices must support a variety of costs Prices must be competitive - Low- and high-price strategies can be effective in different situations Presented by: Anna Riana Putriya
  • 16. What is Promotion ? Promotion is the techniques for communicating information about products. Four promotional tools: a. Advertising b. Personal Selling c. Sales Promotions d. Public Relations Presented by: Anna Riana Putriya
  • 17. What is Distribution or Place ? Distribution is part of the marketing mix concerned with getting products from producers to consumers. Decisions about warehousing, inventory control and transportation options Decisions about channels Presented by: Anna Riana Putriya
  • 18. What is Market Segmentation ? Market segmentation is the process of dividing a market into categories of customer types Presented by: Anna Riana Putriya
  • 19. Identifying Market Segments 1. Geographic variables are geographical units 2. Demographic variables are characteristics of populations Presented by: Anna Riana Putriya
  • 20. Demographic Variables Presented by: Anna Riana Putriya
  • 21. 3. Psychographic variables are consumer characteristics such as lifestyles, opinions, interests and attitudes 4. Behavioral variables are consumer characteristics based on the use of a product, benefits sought from it, reasons for its purchase and brand loyalty Toothpaste w/ -Whiteners -Fluoride -etc. Presented by: Anna Riana Putriya
  • 22. What is Target Market ? Target markets are groups of people with similar wants and needs Presented by: Anna Riana Putriya
  • 23. Market Research & the Marketing Process Study of consumer needs and wants and the ways in which sellers can best meet them Presented by: Anna Riana Putriya
  • 24. What is Consumer Behavior ? Study of the decision process by which people buy and consumer products Presented by: Anna Riana Putriya
  • 25. Brand Loyalty Pattern of regular consumer purchasing based on satisfaction with a product Presented by: Anna Riana Putriya
  • 26. Consumer Buying Behavior Presented by: Anna Riana Putriya
  • 27. Organizational Markets a. Industrial market includes businesses that buy goods to be converted into other products or used during production b. Reseller market consists of intermediaries that buy and resell finished goods c. Government and institutional market consists of nongovernmental buyers of goods and services Presented by: Anna Riana Putriya
  • 28. The International Marketing Mix International Products Some products can be sold abroad with few changes International Pricing Marketers must consider the higher costs of transporting and selling products abroad International Distribution Delays in starting new distribution networks can be costly International Promotion A good ad campaign is a good campaign just about everywhere Presented by: Anna Riana Putriya
  • 29. Small Business and the Marketing Mix Small-Business Products --> Small firms should understand consumer wants before creating new products or services Small-Business Pricing -- > Small firms should set prices by assessing costs Small-Business Distribution -- > Small firms should select a facility location aimed at attracting and retaining customers Small-Business Promotion -- > Small firms should plan promotional expenses as part of start-up costs Presented by: Anna Riana Putriya