IMS 554 Info. Marketing for Information System Department Information Marketing Principles of Marketing.

IMS 554Info. Marketing for Information System Department

Information MarketingPrinciples of Marketing

Marketing Functions All companies start out with five simple

functions: Finance Personnel Operations Sales Accounting

As the company expands to serve new types of customer and new types of areas, the company needs to strengthen certain marketing functions other than the above.

Marketing Functions – cont. The continued growth of the company

increases the productive potential of investment in other marketing functions• Marketing research• New product development• Advertising and sales promotion• Customer service

Marketing functions become one of the major division of a modern company and eventually become a modern marketing company

Marketing

Definition: Refer to the process of planning and

executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organization goals.

The Marketing Concept

Marketing is a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Needs, Wants. And Demands Products and Services Value, satisfaction, and quality Exchange, transaction, and relationships

Marketing Mix

Definition: Refer to a blend of product, distribution

(place), promotion and pricing strategies designed to produce mutually satisfying exchanges with a target market.

Product Definition:

o “A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.”

Three level of product:o Fundamental level is the core producto Intermediate level ia the tangible

product.o Final level is the augmented product

Product Strategies Refer to product offering and product

strategy Design a distribution strategy Decide on promotion campaign Set a price ( depend on where it is to be

marketed) Includes physical unit, and other

elements such as package, warranty, after-sale service, brand name, company image

Product Strategies-cont.

Product can be tangible goods Computers Ideas ( offered by consultant) Services ( offered by medical care,

computer centre)

Place Place or distribution intermediaries

makes up a marketing channel Also known as trade channel or

distribution channel Marketing Channels can be viewed as

sets of interdependent organizations involved in the process of making a product or service available for use or consumption

Distribution (Place) Strategies

Concerned with making products available where and when customers want them.

Include physical distribution- storing and transporting raw materials or finished products.

The goal of distribution ~ ensure products arrive in usable condition at designated places when needed.

Promotion

Consist of four major tools: personal selling, advertising, sales promotion, public relations.

Promotion strategy

Provide mutually satisfying exchanges with target markets via informing, educating, persuading and reminding them of the benefits of an organization or a product.

A good promotion strategies can increase sales.

Pricing

Price is what a buyer must give up to obtain a product

Refer to the amount of money customers have to pay for the products and services.

Pricing Strategies The most flexible and the quickest element

to change compared to the other three marketing mix elements.

Marketers can raise and lower prices more frequently and easily than they can change other marketing mix variables.

The pricing strategies is largely determined by the prior decision on market positioning and target market.

Managing Marketing

The key to building lasting customer relationships is the creation of superior cuatomer value and satisfaction

Customer Value: Customers buy from the firm that they

believe offers the highest customer delivered value

Managing Marketing – cont. Customer Satisfaction:

Refer to the extent to which a product’s perceived performance matches a buyer’s expectations.

Customer Loyalty and Retention Satisfied customer are less price

sensitive, talk favorably to others about the

company and its product Remain loyal for a longer period.

Target Market

Refer to a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting a mutually satisfying exchanges

Market & Market segment

Market People or organizations with needs or

wants and the ability and willingness to buy

Market segment A subgroup of people or organizations

sharing one or more characteristics that cause them to have similar product needs

Market Segmentation

Refer to the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

Position

Position is the place a product, brand, or group of products occupies in consumers’ minds relative to competing offering.

Positioning

Refer to a process of developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general.