Introduction + chapter 1 the basics
- 2. Introduction Chapter1: the basics
- 3. Introduction
- 4. Petra Vijncke First, second andthirdyearMarketing Advertising agency Petra.vijncke@arteveldehs.be Check Chamilobeforemailing !!
- 5. Startingfromlevel 0 Markets change fast Sodo media channels Communication? Constant change Consumer do too Survive= beaware
- 9. Deadlines? Assignments? Exam? Check Chamilo 2 sessionseveryweek (Wednesdaymorning: 8.30-11.30 am)
- 10. Me = powerpoints You= take notes! Thereis NO hand bookor course book!
- 11. Marketing basics andjargon Marketing insightandproblemsolving AndtoconvinceyoutostudyMarketing next year
- 13. Marketing is the process of communicatingthe value of a product or service to customers, for the purpose of sellingthat product or service. Creating, delivering and communicating valueto customers Customer relationship management that also benefits the organization. Science of choosing target markets through market analysis and market segmentation, as well as understanding consumer behavior
- 18. 1. Introduction 2. Definition 3. Basic conceptsandvoc 4. Marketing management concepts 5. Marketing approaches
- 19. In the factory, we make cosmetics. In the store, sellhope (CharlesRevlon) Marketing = the full picture ›Digital, viral, socialnetworks, outdoor, guerilla, massmedia, retail, sales, PR, reputationmanagement, crisis communication, product placement, events, …
- 21. It’s allabout“branding” Ketchup = yourbrand ?
- 22. Brands createvalue Value = perceivedquality Perceivedquality= certainpricesetting
- 24. Textmessageparking Solar panels Kai Mook Twitter Zumba
- 28. Bettercustomer deal: valueformoney ›Deliveringsuperior customer value ›Sustainablecompetitiveadvantage
- 29. Example: ›In 1997, M&M’s was almostbankrupt ›By2014, theyare the best sellingcandy in the USA ›Whathappened?
- 30. But marketing is somuchmore: ›Market research: thinkbeforeyouact Whois mytarget audience? Whatdoes mytarget audiencewant? Needs, desires, … ›Is mytarget market attractiveandbigenough? ›Andwhatis mycompetitiondoing?
- 33. Analyse consumerbehaviour ›How do myconsumersbuy? ›Steps in the decisionprocess Research product development ›Product features? ›Importanceof quality, packaging, service, warrants, design, branding, …
- 35. Price setting needstobe‘right’ ›‘acceptable’ price Distribution channels ›Availability? ›Power of channels? Marketing communication ›= advertising
- 36. So, ifI askedyoutodefine‘marketing’, whatwouldyouranswerbe?
- 37. Process of planning and executing the ›conception, ›pricing, ›promotion and ›distribution of ›ideas, services and goods ›to create exchanges ›that have value and ›satisfy goals ›for customers, clients, partners, and society at large. 4 P’s
- 38. Example GOOD + SERVICE EXCHANGE AND CREATE VALUE SATISFY GOALS FOR …
- 39. Is marketing important/necessary? ›Rootsof allbusiness = productsandservices ›Needtobemarketedandsold ›No turnover? No business andno employment Yes !
- 40. Marketing: a ‘must’ or a ‘gift’? ›Depends on the product/service andthe branche ›Constant innovationnecessary ›Competitionis lurkingaroundthe corner ›Investin strong brands ›Focus on qualityandservice ›Buildrelationshipwithconsumersandotherstakeholders
- 41. Must ›Localhospital ›Youneedtobethere‘anyway’ ›For routine check- ups andappointments Gift ›Big, universityhospital ›Best doctors ›Buildon reputation ›Scientistsandexperts withinternationalexperience ›Advanced research
- 42. Watch out: marketing is notanexact science ›Thereare oftenno right/wrong answers ›Business instinct aloneis notenough ›Needtoanalyzethe 4 P’s
- 43. Product Price Place Promotion Needsandwishesof consumer Whatthe consumerneedstopay Wherethe consumercanbuythe product How topromotethe product
- 44. Example‘Place’
- 45. Example4 P’s:
- 46. CreatingANDkeepingcustomers How ? ›CRM = customer relationshipmanagement ›Examples?
- 47. Different target markets Different needs Different processes
- 48. Needsare universal+ general+ motivational Demand Productsare offered: advantages, satisfaction, valueis communicated Exchange –transaction Aimforthe right target market Needsare satisfied
- 49. Examples? ›Useof wifi, internet ›Computer ›Milk ›Toilet paper ›Bank account ›…
- 51. But whatabout:
- 52. Desireis limitedandindividual Demand Productsare offered: advantages, satisfaction, valueis communicated Exchange –transaction Aimforthe right target market Needsare satisfied
- 53. Example:
- 56. Thereis a desirebut the means are limited Demand Productsare offered: advantages, satisfaction, valueis communicated Exchange –transaction Aimforthe right target market Needsare satisfied
- 57. Example?
- 58. Beware of the power of the different markets: ›Sellers’ market: demand> offer Shortage: power forthe sellers ›Buyers’ market: demand< offer Surplus: power forthe consumers Example: ›tablet in 2010 vs2014 ›PlayStationandpriceevolutionduetocompetition(Wii andSony Xbox)
- 60. Transaction marketing ›Aimtoenlargetarget market ›Oftenshort term profitthinking only ›Eg. “6 monthsforfree” Relationshipmarketing ›Sustainablecustomer relationship ›Long-term thinking
- 61. De-marketing ›Efforts aimed at discouraging (not destroying) the demand for a product ›Reasons: a firm cannot supply in large-enough quantities does not want to supply in a certain region because profit margin is too small Common demarketingstrategies: higher prices, scaled-down advertising, and product redesign.
- 62. FOCUS ON THE CUSTOMER FOCUS ON PRODUCT MARKETING ORIENTATION PRODUCT ORIENTATION PRODUCTION ORIENTATION SELLING ORIENTATION
- 63. PRODUCT CONCEPT ›Consumer wants productswiththe best quality, presentationandfeatures ›Organizationconstantlytriestoimprovethe product ›Danger: “a goodproduct sellsanyway” ›Example:
- 64. Otherexample:
- 65. PRODUCTION CONCEPT ›Customerswant productswhichare widelyavailableandcheap ›Organizationsaimforhigh productionefficiency andmaximaldistribution ›Conditions: Consumer has limitedmeans Organizationneedstolowerproductioncosts
- 66. Example:
- 68. SELLING CONCEPT ›Customer does notbuythe product (enough), sohe/shemust beconvincedby“hard selling” ›Verydirect andoftenaggressive ›Dangers: Unsoughtproducts Overcapacity ‘We sellwhatwe make’, insteadof ‘we make whatwe cansell’
- 69. Example:
- 70. MARKETING CONCEPT ›Analyzeneedsof consumers, satisfythese needsanddo thatbetterthanthe competition ›Features Focus on customer satisfaction Market research Analyzecompetition
- 71. Example
- 73. AND IN 2014: the new trends in marketing are… ›Green marketing: Ecover ›Ethnicmarketing ›Gay marketing ›Focus on sustainabledevelopment: people+planet+ profit Eg. Ben & Jerry’s
- 76. Golden advice: Be REAL andAUTHENTIC ›Avoidscandals ›Crisis management ›Eg. Nike, Shell, McDonald’s, IKEA, HEMA
- 77. B2C marketing Marketing aimedat the finalconsumer Eg. on a billboard
- 78. B2B marketing ›= trademarketing ›Marketing aimedat the retailers or distributorsor otherchannelsin betweeen ›Eg. DouweEgberts negotiationswithDelhaize ›Eg. IT compayofferingbusiness solutions
- 79. Retail marketing: ›Marketing fromthe retailer andaimedat the finalconsumer
- 80. Services marketing: ›Market a service (police, electricity, school, hospital, lawyer, mobile phoneoperator, citymarketing, …)
- 81. Non-profit marketing: ›Money earnedis usedforinvestmentsin the organisation, notforpersonal gain/profit ›Artevelde, localsport club, charityorg, …
- 82. But remember: marketing is notanexact science ›Duvel Brewerycreatesnew beer flavour ›Guidedtours in brewery ›Drink sthin the shop/bar afterwards ›Take home gadget + mini bottleof new flavour ›B2B, B2C, retail, services marketing, …? ›Whatdo youthink?
- 83. Extended definitionof marketing 4 P’s Marketing jargon andvocabulary 4 marketing concepts Trends of the year2014 Different marketing approaches Marketing is notanexact science