Marketing

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Marketing

• Getting started

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Todays objectives

• To understand the concept of marketing.
• To understand marketing objectives.
• To understand market segmentation and targeting.

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What is marketing?

• Marketing is the management process involved in
  identifying, anticipating and satisfying consumer
  requirements profitably
• Why this definition?
• Consumers are very important a product needs to
  satisfy consumer needs/wants. Marketing must find
  out what these are.
• Marketing is a PROCESS it is ongoingno start /
  no end. because markets are constantly changing.
• Marketing is a business philosophy. It is a way
  of thinking about how to satisfy consumers
  needs (it is not just a series of activities)
• Marketing affects ALL aspects of a business.

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Marketings importance

• Since the 1950s, marketing has become
  increasingly more important to businesses. But
  WHY?

• Economic growth increase in real disposable
  income of consumers, so growth in demand for
  products and services
• Fashion ever-changing fashion, tastes and
  lifestyles
• Technology rapid technological advancement has
  occurred, especially in electronics. New products
  appearing all the time.
• Competition more firms and products competing.
  Increased competition form global markets.

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What is Marketing?

• Nike spends 978m pa
• Coca Cola spends 2bn
• Why bother?

So what do you think Marketing involves?
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Marketing involves 3Cs 4Ps

• Customer
• Company
• Competitor

• Product
• Price
• Place
• Promotion

Now try to apply these to some companies
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Apply the 3Cs 4Ps
Use your whiteboard to note down the 3 Cs 4Ps

• McDonalds
• Nike
• Vodaphone
• Sky Sport
• Nickelodeon
• X-Box
• HSBC
• Mercedes

• Hummers
• Pepsi
• Levi
• Burberry
• I-Pod
• Matalan
• Chelsea FC
• Barbie

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So Marketing is a lot more than advertising!
BoD Marketing manager Financial manager MD

• So who decides on the marketing budget and what
  direction the marketing plan goes?

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Marketing Objectives
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SMART Targets
No its not an Ashcombe invention! Its a
business tool.
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Marketing objectives involve
Some examples
But none of these are SMART!
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Examples of SMART targets
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Now you try it!

• The following companies have had a few problems
  this year what would you advise them to have as
  their new marketing objectives for next year.
• Cadburys (Salmonella cost 20m)
• McDonalds (Supersize me etc)
• Channel tunnel (6.4 bn debt Tunnel Fire)
• Dell/Sony (product recalls battery exploding!)
• Microsoft (fined 280m euros (again) for bundling
  not following EU laws)

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Marketing objectives depend upon

• What focus the company has.
• Market orientated focus on what customers want
  develop 4Ps to suit
• Asset orientated focus on what the company is
  good at develop 4Ps to suit
• Sales orientated what makes the most profit
  develop 4Ps to suit!
• Note A business can also be Product orientated
  (but this means they dont focus on the customer
  at all!)

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So which Co is market, asset or sales orientated?

• McDonalds
• Nike
• Vodaphone
• Sky Sport
• Nikelodeon
• X-Box
• HSBC
• Mercedes

• Hummers
• Pepsi
• Levi
• Burberry
• I-Pod
• Matalan
• Chelsea FC
• Barbie

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Answers
Mrs Gs ideas!
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Market Segmentation

• This is where the market is broken down into
  smaller sub groups that share similar
  characteristics

• Age
• Gender
• Income
• Religion
• Ethnic group
• Level of education
• Geographical
• Social class

Examples
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Market segmentation

• A Higher managerial, administrative or
  professional
• B Intermediate managerial, administrative and
  professional
• C1 Supervisory, clerical, junior administrative
  or professional
• C2 Skilled manual workers
• D Semi and unskilled manual workers
• E State pensioners, widows, lowest grade workers.

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So which market segment customer would buy these?

• Age
• Gender
• Income
• Religion
• Ethnic group
• Level of education
• Geographical
• Social class

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Why is it important to know your customers?
Mass market
Range of customers
Niche
Whether your product appeals to the masses, a
small niche or a range of different customers.
Every business needs to MARKET its goods..
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Homework

• Choose ONE product or service and write a
  detailed explanation of the 3Cs 4Ps.
• Take each category and research (Internet) as
  much detail as possible.
• Could be in a written A4 page, a poster or a
  slideshow printout.