Chapter_6ppt.pdf

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2011 Pearson Education, Inc. 1


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1. What are the benefits of marketing to customers, sellers, investors,employees, and society at large, and what are the criticisms ofmarketing?

2. What kind of market structure is my company?3. What are the two basic elements of a marketing strategy and the 4

Ps of the marketing mix?4. How do firms implement a marketing strategy by applying the

marketing process?

5. How do the various factors in the marketing environmentinfluencea firms ability to manipulate its marketing mix?

6. What is the marketing researchprocess and what are the elementsof a good marketing plan?

2012 Pearson Education, Inc.

Publishing as Prentice Hall

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Customer Perceived Benefit B

Price

Cost Airline Profit P-C) Consumer surplusConsumer valueB-PValue created


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! The number of buyers and sellers, and theirrespective power.

! Ease of market entry, mobility and exit

! The extent of product differentiation ordistinctiveness

! The availability and cost of information




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! Perfect competition

! Non perfect competition:! Monopoly! Monopolistic competition! Oligopoly




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! 1.Large number of small producers andconsumers, none of whom is able to influencethe market price.! Producers are price-takers! None has market powerIn the short run there is possible profit: companies varying

output in an effort to maximize profitability. Output isset where the marginal cost of producing the next unit is

equal to the price being imposed by the market.In fact, very few air transport markets have large number

of producers




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! 2. Products are commodities: perfect substitutes foreach other giving rise to an absence of consumerpreference as between suppliers. There is not singleindustry cost curve, and no single market-clearingequilibrium price for air transport services.

! 3. Information is perfect in the sense that it iscostless and freely available to all marketparticipants.

! 4. Innovation is entirely exogenous making firm. Theair transport industry has a long history ofendogenous (internally generated) technical andcommercial innovation.

!5. Consumers face no switching costs.

! 6. Barriers to entry and exit are absent, allowingperfect mobility between markets, for both factorinputs and the product being produces.




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! 1. Just one seller! 2. High barriers to market entry! 3. Unavailability of close substitutes! 4. Poor flow of information to consumers! 5. A monopolists curve and the market

demand are identical.




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! The idea the firms compete for differentialadvantage in markets where products are notnecessarily homogeneous and which can besegmented.

! Differential advantage is the identification ofunserved or poorly served market segments and the

development of service-price offers.! Large number of sellers! Differentiated products! Easy entry and exit! Advertising! In the short run: Profit or loss; in the long run: Only

normal profit.




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! Characterized by a few sellers .! Products can be commoditised or

differentiated (heavy advertising)

! High barriers of entry and exit! Limited consumer access to price! Product quality! Cost information! Oligopolistic structures arise by internal

growth or as a result of mergers and alliances




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! MarketingoAn organizational functionoA set of processes for creating,

communicating, and delivering value tocustomers

oManagement of customer relationships inways that benefit the organization and itsstakeholders

! ProductoAny tangible good, service, or idea available

for purchase in a marketoPlus any intangible benefits derived from itsconsumption



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1. Identify customer needs before product isdesigned

2. Align all functions of the organization tomeeting or exceeding customer needs

3. Realize a profit by satisfying customers longterm



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!CustomersoValue = benefits/costs

oUtility! Form! Ownership! Time! Place

!Sellers! Investors!Employees!Society



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Product differentiation BrandProduct

Cover costs Competitively pricedPrice Inform and persuade customers to buy Build positive customer relationshipsPromotion

Distribution channel Distributors and wholesalersPlace



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1. Define the marketing information need,problem, or objective.

2. Collect the relevant data.3. Analyze the data.4. Interpret analytical results and reach

conclusions.

5. Act on research conclusions.



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Primary Sources of DataSecondary Sources ofData

Observation Questionnaires Surveys Focus groups Interviews Customer feedback Sampling Controlled experiments

Governmentpublications

Commercialpublications

Organizationalpublications

Magazines Newspapers Internal sources



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A written document with:! A clearly written marketing objective! Performance of situational SWOT analysis! Selection of a target market! Implementation, evaluation, and control of the

marketing mix (the 4 Ps)



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! The ways individuals or organizations search for,evaluate, purchase, use, and dispose of goods andservices.

!Consumer behavior is different in the consumermarket vs. the B2B market

! Knowledge of consumer behavior helps marketers:o Select the most profitable target marketso Implement the marketing mix (4 Ps)



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1. Need recognition2. Information search3. Evaluation of alternatives4. Purchase or no purchase decision5. Post-purchase evaluation



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! Steps are similar to the five steps in the consumerdecision-making process

! 4 Ps of the marketing mix remain relevant for abusiness purchase

! Business purchases are generally more rational,reasoned, and objective, based on influences suchas:oThe state of the economyoTechnological factorsoThe degree of competition facing the companyoPolitical and regulatory concernsoOrganizational objectives, policies, and

procedures



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1. What are the benefits of marketing to customers, sellers,investors, employees, and society at large, and what are thecriticisms of marketing?

2. What are the two basic elements of a marketing strategy andthe 4 Ps of the marketing mix?

3. How do firms implement a marketing strategy by applying thefive steps of the marketing process?

4. How do the various factors in the marketing environmentinfluence a firms ability to manipulate its marketing mix?

5. What are the five steps of the marketing researchprocess andthe four elements of a good marketing plan?

6. How do the buying decisions and marketing processes inbusiness-to-business marketscompare to those in theconsumer market?



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! http://m.youtube.com/watch?v=7gNbtNcio-Q

! http://www.youtube.com/watch?v=-8GXltFYfX8

! http://www.youtube.com/watch?v=zotCSvW2Ol0&feature=related



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Chapter_6ppt.pdf