MAN - 101 Introduction To Business Near East University Faculty Of Economics & Administrative Sciences

Near East University

Faculty Of Economics &

Administrative Sciences

MAN - 101 Introduction To Business

Week 6 - Marketing

Tuğberk KAYA

tugberk.kaya@neu.edu.tr

Principles of Marketing: Building Relationships with Customers for Competitive Advantage (Chp. 11, 12 13)

“Activities, a set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.”

“Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably.” (Chartered Institute of Marketing)

“Marketing is a social and managerial process buy which individuals and groups obtain what they need and want through creating and exchanging products and value with others” (Kotler et al. 2003)

Sources of customer value

 Information

 Convenience

 Association

 Added Value

 Value for money

Marketing activities

 Marketing research

 Market analysis

 Setting strategy

 Planning

 Developing new products

 Managing product portfolios

 Liaising with Agencies

 Recruiting and training staff

 Setting promotional objectives

 Designing promotional mix

Marketing activities contd.

Managing and protecting brands

Designing marketing channels

Managing marketing channels

Analysing competitor activity

Managing customer service

Ensuring customers are satisfied

Evaluating and

reviewing activities and plans

The 7 Ps of marketing

 Product - A bundle of benefits.

 Price - Total cost of acquiring the product.

 Place - The location where the exchange takes place.

 Promotion - All the communications activities of marketing.

Advertising, Personal Selling, Sales Promotions, PR

 People - The individuals involved in facilitating the exchange process.

 Process - The set of activities which lead to delivery of the product benefits.

 Physical evidence – Helps buyers make judgements

Scope of marketing

Consumer marketing

Industrial marketing

Service marketing

Not-for-profit marketing

Small business marketing

International marketing

Definition of Segmentation

The identification of individuals or organisations with similar

characteristics that have significant implications for the determination of marketing strategy.

The advantages of market segmentation

Opportunities and threats

Target market selection

Market segmentation

Tailored marketing

mix Differentiation

The process of market segmentation &

target marketing

c₁

c₅ c₇

c₂

c₆ c₃ c₄

c₈

The disaggregated market

The segmented market

The target market

The characteristics of individual customers are understood

Customers are

grouped into segments on the basis of having similar characteristics

Segment 3 is judged to be most attractive and a marketing mix strategy is designed for that target market c₁

c₅ c₇

c₂ c₆

c₃ c₄ c₈

1 2 3

c₁ c₅ c₇

c₂ c₆

c₃ c₄ c₈

1 2 3

Marketin g mix targeted

at segment

3

Segmenting consumer markets

Consumer segmentation

Behavioural

Benefits sought Purchase occasion Purchase behaviour Usage

Perceptions and beliefs

Lifestyle Personality

Demographic Socio-economic Geographic

Psychographic Profile

Two-way Dialogue With Consumers

Two-way Dialogue With Consumers

Focus on Building Long Term Relationships With

Consumers

Focus on Building Long Term Relationships With

Consumers

Marketers Use and

Coordinate Many Different Forms of Communication

With Consumers Marketers Use and

Coordinate Many Different Forms of Communication

With Consumers

Two-way Dialogue With Consumers

Two-way Dialogue With Consumers

Focus on Building Long Term Relationships With

Consumers

Focus on Building Long Term Relationships With

Consumers

Marketing communications are part of a changing world

Old World New World

“Talking At” Consumers

“Talking At” Consumers

Focus on Winning New Customers

Focus on Winning New Customers

Marketers Relied Primarily on Advertising and

Promotions

Marketers Relied Primarily on Advertising and

Promotions

“Talking At” Consumers

“Talking At” Consumers

Focus on Winning New Customers

Focus on Winning New Customers

Marketers Relied Primarily on Advertising and

Promotions

Marketers Relied Primarily on Advertising and

Promotions

Macro versus micro environment

What is a brand?

A product is anything that is capable of satisfying consumer needs.

A brand gives a product a distinctive identity through the creation of a name, design or, more usually, some combination of these.

Categories, brands and variants

Category

Brand B Brand A

Variants A₁ A₂ A₃

Variants B₁ B₂ B₃

Variants B₁ B₂ B₃

Brand C

Why strong brands are important

1. Consumer perceptions and preferences are affected by brand names.

2. Barrier to competition.

3. High market share, brand loyalty and profits.

4. Base for brand extensions.

5. Quality certification.

6. Trust.

Strong brand names affect perceptions and preferences

Blind %

Prefer Diet Pepsi 51

Prefer Diet Coke 44

Equal / Can’t say 5

Strong brand names affect perceptions & preferences

Blind % Open %

Prefer Diet Pepsi 51 23

Prefer Diet Coke 44 65

Equal / Can’t say 5 12

The rebranding process

Implementation

Set rebranding objectives

Screening Information search

Consumer research

Choice of new brand name Generation of new names

Global branding decisions

 Delivery

 Service

 Guarantees Brand

additions Brand

communications

 Name

 Execution

 Packaging

Brand form

 Quality

 Formulation

 Design

 Variants

Global branding

References

 Ebert, R. J. and Griffin, R. W. (2015) Business

Essentials. 10^th Edn. Harlow: Pearson Education Limited

 Kadri Mirze (2002) Introduction to Business. Istanbul:

Literatür Publishing.

 Slides of Mary Munley had been also kindly used.

Any Questions?

tugberk.kaya@neu.edu.tr