GAZANTEP ZRVE UNIVERSITY

Entrepreneurship Education MODULE 2 Who are the Customers Market Analysis

MARKETING PLAN

Includes a precise definition of goods or services Current situation of the Market and External environment, The process, Potential response of market to the goods and services provided, Potential effects of goods and services to the market, Seting up 4P (price, place, promotion, product) for the goods and services to determine the marketability of that goods and services by collecting and processing data and information These processes form the details of the marketting plan.

WHAT IS MARKETING?

Marketing is the management function that directly affects the success of the operating activities of the firm.

WHAT IS MARKETING?

Marketing is the whole process starting from supplying raw materials to production, putting on market, Selling, ensuring customer satisfaction, and attracting the interest of customer to the firm again and again.

MARKETING
Firm Needs/ Demand Production Putting on Market Customer Feedback

C o ns u m pt io n

The whole activities and process of delivering goods and services from the production unit to customers by ensuring complete customer satisfaction and delivering customer feedback to the central unit.

Stages of Marketing Process

Analyze the Environment Test your business idea by research After the research edit your business idea Set up marketing mix (4P: price, place, promotion, product) Build your Marketing Plan Execute the Plan Review the Plan

Characteristics of Marketing Marketing is Customer Oriented Marketing requires knowledge Marketing is against trial and error Marketing requires concentration of efforts Marketing relies on mutual advantages of counter parties. Marketing cares about forecasting Marketing must play a central role in the firm.

Who are the Customers?

Who are them? How old are they? Age, Gender, Income? How much they need? What they need? How they are going to pay for it? Their life style, social classes, Their characteristics? What are their shopping habits? benefits, opportunities Where are they? Cities, Regions, Countries

Marketing Segmentation

A firm cannot meet the needs or demands of all different customers. A trial of this results in ineffcient use of valuable resources. Marketing segmentation means dividing customers who are showing same characteristics into small groups. What can be the same characteristics?

Marketing Segmentation

Demographical Segmentation: Dividing customers regarding their age, gender income and family life style. Age and life cycle Segmentation : Same Customers have different needs at their different ages. Gender Segmentation : It is feasible to do mostly in cosmetics and clothing sectors.

Marketing Segmentation

Income Segmentation: Many firms use this division in when they position their products. Geographic Segmentation: Division considering different geographical regions. Psychological Segmentation Beside demographical division, it is possible to make division regarding life styles, social class and characteristics of humans.

Marketing Segmentation

Life Style Segmentation It is possible to make divison considering thoughts, beliefs, daily life styles and interests of humans. Segmentation Considering Characteristics For instance, consumption habits of extrovert and introvert humans differ.

Marketing Segmentation

Social Class Segmentation 6 Divisions regarding the business status , A.Upper Middle B.Middle C1. Lower Middle (Officiers) C2.Skilled Workers D.Workers (Semi Skilled/Unskilled Workers E.Unemployed Behavioral Segmentation What are the psychological factors that results in customers to buy ? Is it because of a necessity? Is it for a benefit? or Is it just to feel better?

What is your the Target Market? Customers

Available Group The ones who are willing to buy

The ones who have purchasing power

Population

Nazl Women Clothing, a firm that intends to produce clothes for short women in Tekirda, searched for the average height of the women

Below 1.65 Above 1.65

Nazl Women Clothing, a firm that intends to produce clothes for short women in Tekirda, searched for the average height of the women

Tailors Internet

Stores Selling Expensive Products

Nazl Women Clothing, a firm that intends to produce clothes for short women in Tekirda, searched for the average height of women

Yes No

What is the Market?

The place where products and services are exchanged in other words, where supply meets demand.

A Store, Shopping Mall, Internet or even on the street or may be in a house.

Where should I sell my products?

Understanding the features of the market

Features of potential customers The size of the market Purchasing Power Rivals (Products and Firms) After defining these, you should set goals and start marketing and production activities.

Who will sell my products?

You should know about the market very well to create a unique product.

Understanding the features of the market

Understanding the features of the market and identifying the needs of that market are very crucial for the entrepreneur. To establish a profitable business, you should know everything about the market and set up your road map. These steps will lower your risk.

How to make market research?

Studies to understand the features of the market are defined as marketing research. Observations, surveys and analysis of existing studies.

I should ask more Talk more Read more and learn more!!!

Marketing Research The most important factor linking the outside and market with firm. To have a power on market and to be able to start in the right place at the right time; 1.How the needs of the customers change? Can you satisfy these changing needs? 2.What do customers think about your product and services? 3. How the rivals act? Are they stay one step ahead or Are they following your strategies? What should you do? 4.How changes in general economic conditions and changes in regional factors affect your firm? How are you going to respond to these changes?

An Exercise for a Marketing Research

Group Work

Where is my Market? Who are my Customers?

Define your market and your potential customers. Characteristics of Costomers, Estimated Price, Features of the Market and etc..

Arguments, Questions and Answers

For a Detailed Market Research

Information Sources Main Resources (Customer Suppliers Rivals) Seconday Reseources (Union of chambers, Tradesmen, Banks, Organizations, Advisors, Universities, Newspaper, Internet..) 5P What - Product To whom - Purchaser How much - Price Where - Place How - Promotion

1. Who are your rivals?

2.

Do you know your Rivals?

What they do, what are their goals? and weakness of your rivals? them indefensible?

3. What are the strenghts

4. Which weakness make

5. What are the possibe
changes they can do in the future?

Competitive Analysis

Strengths : what can we do better than our rivals? Weakness: what the others can do better than us? Opportunities: What are the favorable factors in the market? Threats: What are the unfavorable factors in the market?

MARKETING MIX
A method used by firms to reach their marketing goals.

Marketing Mix
Price

Place

Product

Promotion

Marketing Mix 4P
Product What are my products? Features of the product and its benefits to the customers Brand, Quality, History of the products, Current state of the market Unique Selling Points Ideas of customers? What is your difference?

About the Product;

Marketing Mix 4P
Price Designing, Production, delivery and promotion activites are the costs and price should be set up such that it covers all of these costs. Setting price is a hard task and market demand and supply should be considered in this stage.

Price

Settled by Demand; It considers the response of market. Do not take costs into account. The value of the product in the market set the price.
Settled by Costs; A fixed amount of profit is added to the costs.

Price Strategies

The factors that should be taken into account when pricing: Fixed and Variable Costs. Competition Goals of the Firm Positinioning Strategies. Target Group and demand for payment.

Price Strategies
The pricing stratgies can differ regarding the goals of the firms: Market share Pricing: Low price to gain a market share. Skimming Price Strategy: Higher price at the beginning and then start to decrease the price to increase the market share. Competetive Pricing: Setting Price considering your rivals. Product Group Pricing: The products that have different features but in the same product group are priced similarly. Bundle Pricing: Combining different products to have lower price. Psychological Pricing : Perception of customers are considered. For instance, rather than TL 1000, TL 999 is preffered. Premium Pricing : Royalty of the product is considered in pricing and prices are set at higher levels Ferrari,Channel etc.

Marketing Mix 4P
Promotion Advertisement/Sales Promotion/Selling/ e-business/public relations,etc.. It does not make sense if you dont promote the products even that product is highly attractive and succesful.

Promotion
How can you sell If nobody knows about your product?
Promotion Sale: To increase sales in the short run. Personal Sale: Selling directly to the customer. Advertisement: Selling using TV, newspaper, journals Public Relations: positive relations with public.

Benefits of Promotion
Show people that you are in the game Ensure that your offers are recognized by others Cause an increase in sales Help to find out niches in the market Make you more competetive Create firm value and brand name Support customers loyalty Help to protect your market share Create positive public oppinion about your firm

Ideas for Promotion

Word of mouth marketing (bush telegraph), Network, Public relations Companys name, Logo, Letterhead, Business Cards Packing Materials Brochures, Banners, Handouts Face to Face Selling Direct marketing with mail and telephone Fiscal Incentives, Discounts, Competitions, awards, sponsorships Common Promotions Conservations, Demonstrations, Exhibitions, Advertisements Customer Relations Services

Role of Promotion
Draw Attention Attract Interest Create a desire to buy Action

Promotion Campaign
Set up the main goal of the firm Define promotion goals Research expenditures, efficiency and time plan Design Promotion Campaign Test it, and Edit Execute the Promotion Campaign

ANNUAL PROMOTION PLAN

ANNUAL PROMOTION PLAN
1M No Yaplacak ler 2M 3M 4M 5M 6M 7M 8M 9M 10 M 11 M 12 M

1
2 3 4 5 6

Catologs Exhibitions Newpaper Adv. Local TV Adv. National TV. Adv. Promotion Corporate Identification Establisment

Marketing Mix 4P
Place
Selling Points that the customers/consumers can find something to buy.

Place

Customer should meet products and services at the right place at the right time. Which distribution channel are you going to use to deliver your product and services to your customers?

PAZARLAMA PLANI HAZIRLAMA

Place.. = Distribution (Delivering product to the customer)

What is distrubution? How and where to distribute? Where you should deliver your product?

Distribution (Delivering products to the customer)

How can we introduce our products that are distributed ?
Producer Producer Producer Producer Agency wholesale wholesale Retailer Retailer Retailer Consumer Consumer Consumer Consumer

Now You can set up your marketing strategy

Promotion Place

Group work; Create a marketing mix.

Price
Product

Selling/Sale
It is to help consumers to satisfy their needs by offering a product

Selling activities should in line with operating and marketing strategies of the firm.

Steps of Selling
Attention: Attract attention of your customer using different methods. Interest: Draw the interest of your customers by addressing their needs. Desire: Create a desire to buy. Action: Ensure that your customer is going to buy.

The Value of your product through the eyes of the customers

What are the values you are offering? Focus on the benefits and values that your product offers. Do not focus on sale, focus on satisfying the need of your customers. If you are not offering any benefit or value, you will have to decrease the price (and profit).

Comparison of Price-Value

Price Value

The reason that the customer choose a product is not about the product itself but about the benefit and uniqueness of that product.

Network for Sale

Get in contact with the ones who can help your business, You will have a larger network You can meet new customers Your sales increase

Who knows you is more important than Whom you know.

A Sample Network

A Sample Network
Family Relations Suppliers Teachers of Your children HAIR DRESSER Customers

Stores Around

Fitness Center

Friends

Mechanics

Women working in supermarkets

Criticize product/service through the eyes of the customers

Is there any possibility that your products and services cannot satisfy your customers? How can you reduce this possibility?

Compare the risks that you cannot eliminate with benefits that your product offers.
Make sure that your customers evaluate this risk with the benefits of your product.

Which one sells best: Your Product or Your Customer?

The feedback from your customers is more important than everything you tell about your product. Advertisement promotes your business whereas feedback from your customers promotes your product.

Your best salesman is a happy customer.

Customers Come First.

Find the motivating factors that attract your customers to your firm.
Focus on the needs of your customers . Use the language of your customers.

Pay attention to the priorities of your customers.

To have a Loyal Customer

Focus on goals of customers.
Sell the benefits of your product. Be aware of your product and the environment. Keep up your promises Customer satisfaction comes first! Create Solutions. Be positive.

Selling Plan
These Questions should be answered When making a Selling Plan: 1. What is the product? 2. How many can be sold in a day/month/year? 3. What raw materials and services do I need? 4. Where should I sell? (Target Market) 5. Who are the target customers? 6. How many customers are there in my target market? 7. What should be the Price? 8. How much money do I need, How much profit should I make?

Marketing/Selling Goals

SATI PLANI
5M 6M 7M

Product/ Service

1M

2M

3M

4M

8M

9M

10 M

11 M

12 M

Total

Total

Selling; Last Point

You can earn money by selling, But can build a fortune by making friends.

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