BAEB501 : ENTREPRENEURSHIPCHAPTER 7:Marketing

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Chapter 7: Marketing

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Topic Outlines

7.1 Marketing7.2 Consumer Needs and Wants7.3 Marketing Concept7.4 Management Functions7.5 What is Market?7.6 Target Market7.7 Sales Forecast7.8 Preparing A Marketing Plan7.9 Developing Marketing Strategies7.10 Product/Service Strategy7.11 Pricing Strategy7.12 Distribution Strategy7.13 Promotion Strategy7.14 Managing Marketing Activities

© 2010 Cosmopoint

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Chapter 7: Marketing

© 2010 Cosmopoint

Learning Outcomes

After completing this chapter, student should be able to:Explain the important of 4P’sUnderstand the marketing conceptsRelate the concepts with things around

Topics© 2010 Cosmopoint

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Chapter 7: Marketing

© 2010 Cosmopoint

7.1 Marketing

Topics

Marketing is basically an exchange activity that takes place between a business entity and its customers.

Marketing is a critical activity in any business because it forms the backbones to the total business effort in achieving a profitable outcome.

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Chapter 7: Marketing

© 2010 Cosmopoint

7.2 Consumer Needs and Wants

Topics

Human Needs are defined as basic physiological requirements in one’s life. E.g food, drink, clothing,

accomodation)

Human Wants can be the different forms of unfulfilled needs. E.g house, car, handphones

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Chapter 7: Marketing

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7.3 Marketing Concept

Topics

The marketing concept rests on the philosophy that all marketing activities must satisfy customer needs and wants, and at the same time achieve the targeted profits.

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Chapter 7: Marketing

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7.4 Management Functions

Topics

Management functions refer to the activities of planning , organizing, leading and controlling of business input

What is business input? Business input refers to the resources required to operate a

business activity. These include capital, manpower, technology, and raw materials.

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Chapter 7: Marketing

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7.5 What is Market?

Topics

• Market is a physical place where buyers and sellers exchange goods and services.

• There are 4 main categories of market:– Human Being– Governments– NGOs– Business Entities

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Chapter 7: Marketing

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7.6 Target Market

Topics

Target market is therefore defined as the group of customers with needs and wants that can be satisfied by the business through the supply of

goods and services.

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Chapter 7: Marketing

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7.7 Sales Forecast

Topics

The sales forecast is the expected sales potential from the selected target market.

There are 4 main steps in preparing a sales forecast.Determine Market Size Identify the CompetitorsEstimate Market ShareForecast Sales

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Chapter 7: Marketing

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7.8 Preparing A Marketing Plan

Topics

There are 8 suggested steps in preparing marketing plan: Define the product concept Identify the target market Determine market size Identify competitors Determine market share Develop sales forecast Develop marketing strategies Prepare a marketing budget

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Chapter 7: Marketing

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7.9 Developing Marketing Strategies

Topics

The marketing strategy consists of four key variables, also known as the 4P’s of marketing. There are:

ProductPricePlacePromotion

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Chapter 7: Marketing

© 2010 Cosmopoint

7.10 Product/Service Strategy

Topics

The outlining product/service strategy, special attention needs to be given to the following aspects:

Brand, Quality, Design, Packaging, Protection, Ease of Use, Product Differentiation, Attractive to customers, Product safety, Labelling, After sales service

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Chapter 7: Marketing

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7.11 Pricing Strategy

Topics

There are several pricing strategies. The most commonly used are: Cost based pricing

Value based pricing

Competition based pricing

Factors affecting pricing

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Chapter 7: Marketing

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7.12 Distribution Strategy

Topics

Distribution strategy is aimed at establishing a structured and controlled distribution system to ensure the product offered reaches the target customer.

Most common form of distribution channels are: Direct to Consumer Selling through retailers Selling through wholesalers Selling through wholesalers and retailers or

agent

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Chapter 7: Marketing

© 2010 Cosmopoint

7.13 Promotion Strategy

Topics

There are 3 main promotion tools such as: Advertising

Printed media Newspapers, Magazines, Yellow

Pages, Signs Broadcast media

Television, Radio, Cable TV, Infomercials

Internet World Wide Web, Online forums

Outdoor Advertisements Billboard/Electronic Billboard,

Banner Sales Promotion Public Relations and Publicity

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Chapter 7: Marketing

© 2010 Cosmopoint

7.14 Managing Marketing Activities

Topics

Managing marketing activities by objective is an excellent way to monitor sales performance and can be linked to staff remuneration and promotion.

The Gantt Chart – The company must prepare a schedule to facilitate the process of control and monitoring. One excellent tools to plan and monitor marketing activities is the Gantt Chart.

The Marketing Budget – Marketing costs money. Marketing budget summaries all marketing expenses planned and is useful for financial planning.

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Chapter 7: Marketing

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Individual Assignment

Differentiate between Gantt Chart and Marketing Budget

Provide information aboutGantt ChartMarketing Budget

2 pages only, Fullname, ID, Classcode

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Chapter 7: Marketing

© 2010 Cosmopoint

Pop Quiz

Identify the factors that influence immigrant entrepreneurs survive in a country

Name:

Student ID:

Class code: