Marketing Basics

What is Marketing?

Process of meeting needs/demands Needs – Essentials – Generally not taxed Demands – Wants, Luxuries, usually taxed

Market – All that do or could buy a product – customer must have - Ability Authority Willingness

Marketing Process

Mission Statement Why are we in business? Sets the tone.

Organizational Objectives What do we want to achieve?

Marketing Objectives What can marketing achieve to help Org. goal?

Mission Statement

Marketing Plan

Situation Analysis BCG matrix SWOT analysis Balanced Scorecard Business Canvas

Develop Goals for each SBUStrategies

Segmentation – Demographics, Usage Targeting – Undifferentiated, Differentiated Positioning – Manage perception – Toyota, Lexus

BCG Matrix

Marketing Mix (4 Ps)

CRM – Customer Relationship Management CLV – Customer Lifetime Value

Product Types

Convenience Product Little or no shopping around, inexpensive – eg. Soap

Shopping Product Lot of shopping for deals, expensive – eg. house, car

Specialty Product Loyalty, not easily found – eg. South Indian Restaurant

Product Life Cycle

Introduction Growth Maturity Decline

Price

Skim Innovator can charge high price, skim

profits Penetration

Low price to penetrate market dominated by others

Competitive Match competition in a mature, highly

competitive market Cost-based /Target-profit Based on cost plus a percentage

Others – geographical, segmented

(eg. Airline prices)

Price Elasticity Elastic products – non-essential, cheap –

demand sensitive to price Inelastic products – essential – water,

gas, etc. – demand relatively stable

Place (distribution)

Physical Distribution (Ops. Mgt.) Channels

Direct – producer sells to customers Indirect – producer to wholesalers to retailers to customers

Promotion

Goals Increase demand Stabilize Sales

Provide Information Differentiate

Promotion Strategies

Advertising Trade Sales Public Relations Direct Marketing Sponsorship

Source: http://www.teleread.com/publishing/book-promotion-what-works-what-doesnt/