Marketing basics for Entrepreneurs

Copyright Atomic Dog Publishing, 2002

Marketing Basics

What is Marketing???
Think about organizations/companies (Google, Apple, Samsung, Facebook, Pepsi, Revlon, Carrefour, Atlas, Toyota, Oman Chamber of Commerce, World Wildlife Fund, ) as well as individuals (politicians, professional athletes, ) They all do marketing! How and why?
Copyright Atomic Dog Publishing, 2002

Write down what comes to your mind when you think of marketing a product or service.
Copyright Atomic Dog Publishing, 2002

Marketing Basics

Marketing
Marketing consists of activities designed to generate and facilitate exchanges intended to satisfy human or organizational needs or wants.
Going to the market to learn what prospects will buy, then creating & delivering that product... when, where and how they want it

Copyright Atomic Dog Publishing, 2002

The Marketing Concept

Customer Satisfaction Total Company Effort

The Marketing Concept

Profit
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Learning outcomes

Aspects of Marketing that an entrepreneur needs to get started Formulating the marketing strategy Identifying the target customers Designing the marketing mix Creating Competitive advantage Difference between services and consumer marketing Building customer relationship
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Marketing Strategy

A Marketing Strategy plans the way in which the marketing mix is used to attract and satisfy the target markets and achieve an organizations goals. It helps firms to make the best use of its resources to increase sales and achieve a sustainable competitive advantage
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Elements of the Marketing Program

Target Market

+
Marketing Mix

Marketing Strategy

+
Time-Related Details

Marketing Plan

+
Other Marketing Plans

A Firms Marketing Program

Market Research

Market research is the starting point for marketing It involves gathering and analyzing information about customers. It recognize and understand their customers needs, wants and preferences and how best to reach them.

Copyright Atomic Dog Publishing, 2002

Case Study

A shoe company is seeking to export shoes sends two sales people to a country called Naboo to investigate the market. When they arrive they notice that most people dont wear shoes. Back in the US the first salesperson tells the company owner, "Forget it, there is no market; no one there wears shoes. Whereas, the second owner says "Theres a huge market; no one wear shoes!. Discuss in a group about the different perceptions of the two sales people about the market. If you are the owner ,what will be your approach?
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Bottom Line of the story

Perceptions or assumptionswhat you think your customer wants or needs are not always right and must be tested .

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A Market consists of all possible consumers for a good or service.

A target market strategy consists of analyzing consumer demand, targeting the market, and developing an appropriate marketing strategy. Market segmentation divides the market into distinct subsets of customers.

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Target Market is like a multilayered Cake

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Example: Day-care business

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Example: Day-care business

Total market (Bottom layer)-the people who live in your town Total prospects( next layer) : All the working parents in your town. Possible prospects(next layer): All the working parents in your town with pre-school aged children. My prospects( next layer) :All the working parents in your neighborhood with pre-school aged children who require day-care My buyers( the topmost layer with a flower): The working parents in your neighborhood who use your day-care to solve their day-care needs.
Copyright Atomic Dog Publishing, 2002

Marketing Strategy
Case Study of Pepsi & Mountain Dew

The Marketing Mix

These are the tools of marketing where managers need to make decisions about the product/service or package of benefits that they offer to customers. The tools are commonly known as the 4Ps

The Four Ps of the Marketing Mix

Product

Place

C
Price Promotion

Product
Quality Features Options Style Brand name Packaging Sizes Services Warranties Returns

Price
The value that is put on the exchange process List price Discount Allowances Payment period Credit terms

Promotion (Communication)
Advertising Personal selling Sales promotion

Public relations
Direct Marketing

Examples of types of PromotionVideo-Creative Ads

Place (Distribution)
Channels
Coverage

Locations
Inventory

Transport

Four Examples of Basic Channels of Distribution for Consumer Products

Manufacturer or producer
Citibank Nissan

Del Monte

Procter & Gamble

Wholesaler

Wholesaler

Wholesaler

Retailer

Retailer

Retailer

Consumer

Combining the Mix

The marketing manager has to identify the needs of his or her target market through marketing research and other investigative techniques. The manager must understand customers characteristics and buying habits He/she then has to blend the components of the mix to formulate strategies and tactics by which those needs can be met.

Competitive Advantage
A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

Nokia-Stylish design mobile phones Toyota-Reliable,stylish cars,low running costs, high bulid quality Google-Most relevant top-listed search engines

 Think about any business idea and write down the definition of your target market and marketing mix and your unique selling proposition.

Service Marketing

Examples of Service Industries

Health Care hospital, medical practice, dentistry, eye care Professional Services accounting, legal, architectural Financial Services banking, investment advising, insurance Hospitality restaurant, hotel/motel, bed & breakfast, ski resort, rafting Travel airlines, travel agencies, theme park Others: hair styling, pest control, plumbing, lawn maintenance, counseling services, health club

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Defining Services

Services include all economic activities that provides added value in forms (such as convenience, amusement, timeliness, comfort, or health) that are essentially intangible.

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The Seven Ps
Extended mix:

People Process Physical evidence

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People

The attitudes of staff Training of staff Internal relations The observable behaviour of staff The level of servicemindedness in the organisation The consistency of appearance of staff The accessibility of people Customer-customer contacts
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Process
The manner in which the service is delivered

Degree of customer contact Quality control standards Quality assurance Payment methods (degree of convenience) Queuing systems for customers Waiting times

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Physical Evidence - ambience

The environment or atmosphere in which the service is delivered Buildings Furnishings/dcor Layout Goods associated with the service e.g. carrier bags, tickets, brochures All the above can help shape customers perceptions of the service
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Customer Expectation & perception of Services

Customers hold Different types of expectations for services Customer expectations are beliefs about a business that function as standards or reference point against which performance is judged.
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Exceeding customer expectations

When the customer gets a little more than what he/she expected, Good Service becomes Excellent Service

Customer Expectation

What Customer receives

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Customer Delight

Exceeding customers expectation is delighting customers

The customer reacts with a wow in return for the product/service Every interaction with the customer has an opportunity to create delight The challenge is to consistently maintain the delight factor
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Video

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Building Customer Relationship

Steps Enhancing

Retaining

Satisfying

Example A banking checking account becomes a better customer when she sets up a savings account , takes out a loan and or uses the financial advising services of the bank.

Getting
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Building Customer Relationship

The first step in managing a loyalty based business system is finding and acquiring the right customers. After acquisition of the desirable customers the next step is to build relationships and turn them into loyal customers who will generate a growing revenue stream for the company. A loyal customer is a consistent source of revenue for the organisation. This loyalty has to be sustained by continuously providing superior quality and value.
Copyright Atomic Dog Publishing, 2002

Remember. Retaining customer is important and costs less than attracting a new one.

Copyright Atomic Dog Publishing, 2002

Any Questions