Business Concept

Chapter 6: Marketing
Prepared by: Lecturer, Ouch Phanhavisoth

PowerPoint slides by Susan A. Peterson, Scottsdale Community College

What is Marketing?
-

Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably.
Is the process of communicating the value of a product or service to customers. Marketing might sometimes be interpreted as the art of selling products, but sales is only one part of marketing. As the term "Marketing" may replace "Advertising" it is the overall strategy and function of promoting a product or service to the customer.

2008 Prentice-Hall Business Publishing

Why Marketing is needed in the business?

-

All businesses rely on customers to keep them afloat, with no customers there is really not much reason to be in business.
Attracting customers will be one of the biggest challenges that you will face as a business which is why you need to have an effective marketing plan. Strengthening their loyalty to your products as well as continuously satisfying them.

2008 Prentice-Hall Business Publishing

(cont)
-

Brand loyalty Without implementing any marketing endeavors, your business will gain less exposure in the market and thus, will not become popular among your customers.

2008 Prentice-Hall Business Publishing

Marketing concept / Market Orientation

-

A company philosophy focused on discovering and meeting the needs and desires of its customers through its products and services. Market orientation can be thought of as a coordinated marketing campaign between a company and its customers. There are three main points of marker orientation: 1. Organization orientation 2. Customer orientation 3. Competitor orientation
2008 Prentice-Hall Business Publishing

Organization orientation
-

There are four competing concepts under which organizations can choose to operate their business: 1. The production concept 2. The product concept 3. The selling concept 4. The marketing concept

2008 Prentice-Hall Business Publishing

1. Production Concept

A firm focusing on a production orientation specializes in producing as much as possible of a given product or service. A production orientation may be deployed when a high demand for a product or service exists.

2008 Prentice-Hall Business Publishing

2. Product Concept

A firm employing a product orientation is chiefly concerned with the quality of its own product. A firm would also assume that as long as its product was of a high standard, people would buy and consume the product.

2008 Prentice-Hall Business Publishing

3. Selling concept

A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such. Consequently, this entails simply selling an already existing product, and using promotion techniques to attain the highest sales possible.

2008 Prentice-Hall Business Publishing

4. Marketing concept
The 'marketing orientation' is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes. As an example, a firm would employ market research to gauge consumer desires, use R&D (research and development) to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure persons know the product exists.

2008 Prentice-Hall Business Publishing

10

Customer orientation
-

Consumer Orientation is the focus on meeting the needs of one's customers, internal or external. This service establishes specific customer satisfaction standards and actively monitors client satisfaction, taking steps to clarify and meet customer needs and expectations. Customer Orientation is where the firm spends its resources on gathering information about customer needs and behavior.

2008 Prentice-Hall Business Publishing

11

(cont)
Customer orientation is of ultimate importance to deliver value added products. There are 4 basic stages for customer orientation:
1. Develop - Development has to be done keeping customer needs into mind. - Products should be customer oriented. - The development cycle time should be minimal. 2. Manufacture - As per the product, the manufacturing should be such that it gives the best products to the customer. - Quality should not be compromised. - Manufacturing cycle time should be reduced
2008 Prentice-Hall Business Publishing

12

(cont)
3) Market - Identifying and targeting the right customer. - Customization of the products for the market. - Processing the demand as early as possible. 4) Deliver - Deliver to the target customer - Reduce delivery time - Value for money products

Customer is a king
2008 Prentice-Hall Business Publishing

13

Competitor orientation
-

Competitor orientation is where the firm directs its resources to gathering information about competitor behavior and activities. When a business is competitively oriented, it constant reassesses its strengths and weaknesses relative to its competitors. A performance evaluation may include production efficiency, pricing, delivery times, customer satisfaction, innovation, employee retention and market share.

2008 Prentice-Hall Business Publishing

14

Marketing mix (4Ps Analysis)

-

Marketing Mix is one of the major concept in modern marketing. In order to be survived and gained comparative advantages, marketing mix play a very crucial role to guide and develop the organization. The marketing mix is often crucial when determining a product or brand's offering, and is often synonymous with the four Ps: price, product, promotion, and place.

2008 Prentice-Hall Business Publishing

15

Price
-

The price is the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Pricing Strategy/ Technique should be made with a very careful decision and need to be consulted before every prices are setting up on each products.

2008 Prentice-Hall Business Publishing

16

Product
-

A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. Product is concerned with the quality and has to be matched through consumer satisfaction. Not only products but services should be the same. The products and services attributes can be operated depending on the demand of target market.
Example: Sony Products 1. Sony VAIO VPC-EB1Z0E/B 2. Sony VAIO VPC-EC2SOE/ WI 3. Sony VAIO VPCF12M0E/B 4. Sony VAIO VPC-Z12V9E/X 5. Sony VAIO VPCZ11Z9E/B
2008 Prentice-Hall Business Publishing

17

Place (Distribution)
-

One main way to run the business successfully is finding the right location. Making decision to the distribution channel focus on storing or keeping the product in the adequate and appropriate places which is available for the customers are normally expected to shop and satisfy their needs. Refers to providing the product at a place which is convenient for consumers to access. Place is synonymous with distribution.

2008 Prentice-Hall Business Publishing

18

(Cont)

2008 Prentice-Hall Business Publishing

19

Promotion
-

Promotion is one of the main functions in marketing management which help the product of the organization to be recognized and being famous. In general, it is a set of tools that a business able to interact or communicate effectively about the benefits of its products and services to its customers. Represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion.
2008 Prentice-Hall Business Publishing

20