MARKETING
Ing. Karolina Macháčková
What is marketing?
Marketing is the process of developing, promoting, and distributing products to satisfy customers’ needs and wants.
Definition of Marketing
„Marketing is an activity, a set of institutions and processes for creating, communicating, delivering and exchanging offers that are of value to
customers, clients, partners and the general public. ” (American Marketing Association / AMA / 2007)„
Marketing is a social process through which individuals and groups get what they need and want, through the creation, offering and free exchange of products and services with others." (Kotler, Keller, 2013)
Marketing is the art of seeing the world through the
eyes of customers - because the customer is the one who feeds "us" (companies, organizations, etc.).
Marketing context
In recent years, marketing activities have penetrated into the activities of all organizations, institutions and the entire company. Marketing is an integral part of business. For the general public, marketing merges with sales, advertising or market research. However, this is a much more complex concept.
Comprehensive system of measures that leads to a controlled supply of the right product, at the right time, to the right markets and at the right price.
The management process, the result of which is knowledge, anticipation and influencing, and in the final stage of satisfying the needs and wishes of customers in an effective and appropriate way ensuring the fulfillment of the organization's goals.
Summary
MKT - deals with relationships between sellers and customers (buyers) to gain mutual satisfaction
MKT - the central interest is the customer
Implementing MKT means creating and implementing profound and strategic changes in the organization, it is not enough just to create and fill the position of director of the MKT department or just pay more attention to advertising or make a short-term tactical maneuver.
Marketing is not:
• not a sale (its goal is to make the sale redundant)
• it is not an effort to make a profit from every transaction, but to purposefully provide value to the customer
• there is no pricing based on cost calculations
• there is not only communication or advertising
Marketing prerequisites:
the existence of two or more parties with unmet needs
the subjects are able to meet these needs
there is communication between the parties
there must be an exchange object
The essence of business
The basic motive of business is the effort to make a profit.
Profit is achieved by satisfying customer needs
The focus of the entrepreneur should therefore be the customer with his interests, needs. The entrepreneur satisfies the needs of customers with his products, services, through the market, so he has to face the risk. The entrepreneur strives to follow a strategy and policy that would reduce the risk to an acceptable level and increase the value of invested capital.
Marketers work with 10 basic types of objects
Goods
Services
Events
enjoyment
Persons
Places
Property rights
Organisations
Informations
Thoughts, ideas
The basis of marketing is transaction
(Kotler 2000)
Communication
Goods, services Money
Information
market
(clients, customers) industry
(companies)
Quality marketing of companies is characterized by the
following attributes:
• continuity - even before the company is founded (part of the business plan) and throughout its life cycle
• vision - a close connection with the strategic intention of the company
• planning
• balanced use of all parts of the marketing mix
• continuous marketing research with the implementation of feedback
• marketing is understood as the activity of the whole company
In marketing, answers to the following questions are most often sought:
• How to identify the most suitable market segment?
• How to distinguish the company's offer from the competitive offer?
• How to react about customer pressure to reduce prices?
• How to defend domestic and foreign competition, which is encouraged by low prices?
• How far can a company go in meeting customer requirements for product modifications?
• What are the potential possibilities for the strategic development of the company?
In marketing, answers to the following questions are most often sought:
• How to improve the position of brands in the market?
• How to reduce the costs associated with acquiring new customers?
• How to ensure long-term customer loyalty?
• How to measure the effectiveness of promotion?
• How to increase sales productivity?
• How to achieve greater diversification of distribution channels?
• How to better involve all departments of the company in marketing activities?
History of MKT concepts
History of MKT concepts
• Production business concept (cheap and affordable products)
• Product concept (emphasis on the highest quality)
• Sales concept (focus on sales techniques)
• Marketing concept (customer orientation, wishes, needs)
• Social concept (matching the needs and interests of customers and the long-term social and ethical interests of society.)
Differencies
Sales concept
• Emphasis on the product
• Non-differentiation of customers
• The company produces first
• Turnover orientation
• Short-term plans
MKT concept
• Emphasis on the customer
• Target product
• First he finds out the wishes of
customers, only then production
• Strategic plans
Basic concepts
Needs express a subjectively felt deficiency (physiological, social, individual)
Desire expresses a specific form of satisfaction of need.
Demand represents the realization of satisfying needs through a shift in the market. It creates a
certain "filter" by which I realize on the market only those wishes for which we want and can pay the
required price on the market.
Market is a place where buyers and sellers meet.
Marketing tools
The Marketing Mix
The Marketing Mix
The marketing mix consists of four basic marketing strategies known as the 4 P’s.
Product
Promotion
Place
Price
The 4 P’s of Marketing explained
Product Promotion Place Price
1. Is there a demand for the product or service?
2. How to make the product appeal to consumer 3. Packaging—
includes the design,
color, size, and brand names
1. Making customers aware of a product 2. Advertising 3. Coupons 4. Rebates 5. Sales
6. Free give aways 7. Publicity
1. Distribution is getting the right product to the right place at the right time in the right amount and in the right condition 2. Storage
3. Warehousing 4. Transporting
1. How much are
customers willing to pay?
2. Is the price competitive with other products?
3. Can the company make a profit?
•
The concept is generally extended to 7P (People, Presentation,
Process)for tourism,
4P or 4C?
Current Concepts in Marketing
Social Marketing
Philip Kotler has defined his social marketing concept as a management orientation aimed at generating customer satisfaction and long-run consumer and public welfare and as the key to satisfying organisational goals and responsibilities.
Social marketing is the application of marketing theories and techniques to social situations.
Marketing can encourage people to adopt behaviors that improve their lives.
Over marketing
When you cross the thin line between
promoting and pretending, when you go you to help people, and not only to make money.
Meta Marketing
A Meta market brings all buyers and sellers in one place for one purpose only. Meta market brings together
different customers who need not necessarily differentiate between closely related products.
Meta market is a place, where everything connected with a certain market can be found. Let's say a car
selling in a Meta market would be a website, that sells cars but you will also find car parts there, add-ons for cars, colours for cars, mechanic's reviews, etc. So Meta market of a certain market is a market, where you can find everything about that market and everything about markets that are strongly connected to that market.
De-marketing
Demarketing is the opposite of marketing. These are activities that temporarily or permanently dampen (reduce) excessive demand for products or services. A selective demarketing strategy can be used, for example, if a company does not have enough capacity to deliver a large amount of product or service.
Remarketing
Remarketing is repeated addressing of a website that visitor previously visited.
Ads of the MKT company are targeted only to a specific group of people who have already visited the website of the company.
Relationship Marketing
… a type of marketing that focuses on creating good and long-term relationships with customers, their satisfaction and staying. Includes a personal approach and building relationships with future customers. Relationship marketing does not only mean gaining a customer, but also reaches the stage when the customer is already acquired. Its goal is to achieve maximum value throughout its life cycle, especially through excellent support and good experience.
Relationship Marketing
It is the process of building long-term trusting win-win relationship with customers, distributors, dealers and suppliers. It also promises and delivers high quality efficient services and fair prices to the other party over time. It requires building mutual trust and rapport between the business and its customers.
Controversial Marketing
This term refers to using controversy as a marketing tool.
This could entail things such as using images, messaging, that may not be considered
politically correct.
Controversial marketing also includes
expressing a darker sense of humor to get a reaction from the public.
Stimulational Marketing
Stimulational marketing is that type of marketing which transforms a no demand situation into one of positive demand by connecting a product to some existing need through change of environment or spread of knowledge about it.
marketing activity intended to stimulate demand for a product among those who are neither aware of it nor interested in it.
Developmental Marketing
Developmental marketing relates to innovation.
The marketing has to bring out altogether new useful products or improving existing products so as to have new uses.
Growth strategy that identifies and develops new market segments for current products.
Developmental marketing is used in a situation where people “wish” that a product existed and want to buy it, but the product doesn’t exist.
Marketing offers significant benefits to society:
Successful marketing strategies help in these ways:
Summary of lesson
Modern marketing is a new concept that represents the needs and values of costumers and society, not just corporate and benefits. Companies seek their advantages and they do not care about basic principal that what kind of goals and values individuals and society have.Therefore, companies should be familiar with this modern and strategic principal and we must draw their attention to the aims and interests of the people and not just company’s. It is possible by expansion of modern marketing concept and encouraging companies to replace it rather than the traditional way.
Company Name
Creating a winning company name takes some thought but is one of the most important
things you’ll do during the process of starting a company.
So how do you create a winning company name? Get together for a company name
brainstorming session. Many company names are incorporated into the logo. Work through these five rules for choosing a company name:
5 rules for choosing a company name.
A winning company name has to be memorable – but easy to spell.
A winning company name needs a visual element.
A winning company name should have a positive connotation.
A winning company name may include information about what your company does.
A winning company name has to be fairly short.
Logos
The word logo means: a
name, symbol or trademark designed for easy
recognition. A logo is a
graphical representation of the company. It consists of symbols, illustrations and / or graphic print design. The logo should attract
attention. It produces a first impression of your product.
How many logos are you familiar with on this slide?
Logos
Create your company name and logo now Keep in mind the 5 Principles of effective Logo Design. (Worksheet #3)
Target Market
A specific group of consumers at which a company aims its products and services is called a target market. Your target
customers are those who are most likely to buy from you.
Advertising
Now the target market survey is complete you are ready to create an advertisement.
Why do companies advertise?
To promote their products and services.
There are many forms of advertisements including newspapers, magazines, TV, radio, bill boards, flyers, web, etc.
After analyzing your target market survey, create an
advertisement aimed at your customers.
Creating Advertisements
Catchy slogans are great forms of advertisement.
Your logos can also be used as advertisement.
Advertisements need to catch the
interest of the target market and create a desire for consumers to buy your
product!
