Pdf - Week 09 Understanding Marketing

What is Marketing ? Chapter 09

Understanding Marketing Process and Consumer Behavior

? … s e l = sa

Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. – Philip Kotler (p. 7) –

g n i t ke r a M

Process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives – Griffin, 2002 –

Presented by: Anna Riana Putriya

Company Orientations towards the Marketplace

Production ProductionConcept Concept

Consumers prefer products that are widely available and inexpensive

Product ProductConcept Concept

Consumers favor products that offer the most quality, performance, or innovative features

Selling SellingConcept Concept

Consumers will buy products only if the company aggressively promotes/sells these products

Marketing MarketingConcept Concept

Focuses on needs/ wants of target markets & delivering value better than competitors

Presented by: Anna Riana Putriya

Marketing: Providing Value & Satisfaction
Value and Benefits  Value is the relative comparison of a

products benefits versus its costs  Benefits include the functions of the product

and the emotional satisfactions associated with owning, experiencing or possessing it Value = Benefits Costs

Presented by: Anna Riana Putriya

Benefit VS Cost

Presented by: Anna Riana Putriya

Marketing: Providing Value & Satisfaction Value and Utility Utility is the ability of a product to satisfy a human want or need. Four kinds:

Alternative 1

 Time Utility  Place Utility  Ownership Utility  Form Utility

Alternative 2

Presented by: Anna Riana Putriya

Presented by: Anna Riana Putriya

1

Marketing: Goods, Services and Ideas • Consumer goods are products

The Marketing Environment External environment is the outside factors that influence marketing programs by posing opportunities and threats.

purchased by consumers for personal use • Industrial goods are products used by

companies to produce other products

• Services are intangible products that

can be purchased

Presented by: Anna Riana Putriya

Presented by: Anna Riana Putriya

Competitive Environment a. Substitute products differ from those of competitors

but can fill the same need

c. International competition matches domestic

products against foreign products

b. Brand competition occurs between similar

products

Presented by: Anna Riana Putriya

What is a Product ?

The Four Ps and The Four Cs

A product is a good, service or idea designed to fill a consumer need or want.

Marketing Mix Place

Product

Customer Solution

Presented by: Anna Riana Putriya

Convenience Price

Customer Cost

Promotion

Communication Presented by: Anna Riana Putriya

Presented by: Anna Riana Putriya

2

PENDUKUNG Jasa

Barang

Barang

Product differentiation is the creation of a product

Meja Sepatu Gula Minyak tanah

Mobil Arloji mahal Mainframe Computer

Airline Software Telepon Hotel

Konsultasi Edukasi BabyBaby-sitting

feature or product image that differs enough from competing products to attract consumers

UTAMA Jasa

How do they differentiate themselves ? Presented by: Anna Riana Putriya

What is Pricing ?

Presented by: Anna Riana Putriya

What is Promotion ?

Pricing is selecting the best price at which to sell a product.

Promotion is the techniques for communicating


Prices must support a variety of costs
Prices must be competitive - Low- and high-price strategies can be effective in different situations

information about products. Four promotional tools: a. Advertising b. Personal Selling c. Sales Promotions d. Public Relations

Presented by: Anna Riana Putriya

What is Distribution or Place ?

Presented by: Anna Riana Putriya

What is Market Segmentation ?

Distribution is part of the marketing mix concerned with getting products from producers to consumers. Decisions about warehousing, inventory control and

Market segmentation is the process of dividing a market into categories of customer types

transportation options Decisions about channels

Presented by: Anna Riana Putriya

Presented by: Anna Riana Putriya

3

Identifying Market Segments

Demographic Variables

1. Geographic variables are geographical units

2. Demographic variables are characteristics of populations

Presented by: Anna Riana Putriya

Presented by: Anna Riana Putriya

What is Target Market ? 3. Psychographic variables are consumer characteristics such as lifestyles, opinions, interests and attitudes

Target markets are groups of people with similar wants and needs

4. Behavioral variables are consumer characteristics based on the use of a product, benefits sought from it, reasons for its purchase and brand loyalty Toothpaste w/ -Whiteners -Fluoride -etc. Presented by: Anna Riana Putriya

Market Research & the Marketing Process

Presented by: Anna Riana Putriya

What is Consumer Behavior ? Study of the decision process by which people buy and consumer products

Study of consumer needs and wants and the ways in which sellers can best meet them

Presented by: Anna Riana Putriya

Presented by: Anna Riana Putriya

4

Brand Loyalty

Consumer Buying Behavior

Pattern of regular consumer purchasing based on satisfaction with a product

Presented by: Anna Riana Putriya

Organizational Markets

Presented by: Anna Riana Putriya

The International Marketing Mix
International Products

a. Industrial market includes businesses that buy

goods to be converted into other products or used during production b. Reseller market consists of intermediaries that buy

and resell finished goods c. Government and institutional market consists of

nongovernmental buyers of goods and services

Presented by: Anna Riana Putriya

Some products can be sold abroad with few changes
International Pricing Marketers must consider the higher costs of transporting and selling products abroad
International Distribution Delays in starting new distribution networks can be costly
International Promotion A good ad campaign is a good campaign just about everywhere

Presented by: Anna Riana Putriya

Small Business and the Marketing Mix
Small-Business Products --> Small firms should

understand consumer wants before creating new products or services
Small-Business Pricing -- > Small firms should set prices

by assessing costs
Small-Business Distribution -- > Small firms should

select a facility location aimed at attracting and retaining customers
Small-Business Promotion -- > Small firms should plan

promotional expenses as part of start-up costs

Presented by: Anna Riana Putriya

5