Marketing

Marketing Diploma

By : Moustafa EL-hadidi, MBM

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Content

1. What is Marketing.

2. Conducting Market research.

3. Analyzing the market environment.

4. Selecting your target markets.

5. Market positioning.

6. Creating a marketing plan.

7. Facebook marketing.

8. Twitter marketing.

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• Most people mistakenly identify marketing with selling and promotion.

• While selling and promotion are a part of marketing, they are not most important part.

• Marketing can be defined as an activity directed at satisfying needs and wants through exchange processes.

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Selling

Marketing

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Marketing

identifying consumer

needs

developing products

pricing distributing promoting

Marketing Objectives

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Goods, Services, & Ideas

Marketing deals with goods, services, and ideas.

A good is something someone can touch.

A service is providing an intangible benefit to customers.

An idea can include concepts or images.

For this training, we will use the word productto refer to goods, services, and ideas.

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Needs, Wants, & Demands

• One of the underlying concepts of marketing is trying to satisfy a customer’s needs, wants and demands.

Basic human needs

food clothing warmth safety belonging

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Needs, Wants, & Demands

Wants are simply needs shaped by culture and the individual.

Demands are simply the wants of a consumer when backed by the ability to pay for that want

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Exchange Processes…

Marketing usually occurs to help facilitate an exchange between a buyer and seller.

Seller

Something of Value

Goods, services, ideas

BuyerSomething of Value

Money, credit, labor

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Dynamic marketing environment…

There are many forces that affect the marketing environment, including:

Competition

Laws and Regulations

Economic and Social Conditions

Cultural Factors

These forces can be dramatic and difficult to predict.

Be aware of these forces because they can create threats and generate opportunities for your business.

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The marketing mix…

• The marketing mix is a business tool used in marketing and by marketers.

• is crucial when determining a product or brand's offer.

• 4P’s.

• 7P’s.

• Lauterborn's 4C’s.

• Shimizu's 7C’s

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4 P’s

Target Market

Product

Price

Promotion

Place

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Product

What does the customer want from the product.

What features does it have to meet these needs.

How and where will the customer use it.

What does it look like.

What size color should it be.

What is it to be called.

How is it branded.

How does it differentiae from your competitors.

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Price

• What is the value of the product or service to the buyer.

• Are there established price points for products or services in the area.

• Is the customer price sensitive.

• What discounts should be offered to trade customers.

• How will your price compare with competitors.

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Promotion

• Where and when can you get across your marketing messages to your target market.

• Will you reach your audience by advertising in the press, TV, radio, billboards, e-mail, social media.

• When is the best time to promote.

• How do your competitors do their promotion? And how does that influence your choice of promotion?

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Place

• Where do your buyers look for your product or services.

• If they look in stores, what kind?

• How can you access the right distribution channels?

• Do you need to use sales force?

• What do your competitors do and how can you learn from that.

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7 P’s

Target Market

Price

Promotion

Physical Environment

PeopleProduct

Process

Place

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Price

• Skimming.

• Penetration.

• Psychological.

• Cost-Plus.

• Loss.

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Promotion

• Special Offers.

• Advertising.

• Endorsements.

• User trials.

• Direct mailing.

• Leaflets/Posters.

• Free gifts.

• Joint Ventures.

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Physical Environment

• Exterior / Interior.

• Design Cleanliness.

• Style.

• Decoration.

• Acoustic Smell.

• Employee Appearance.

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People

• Business Culture.

• Recruitment.

• Training.

• Assessment.

• Control.

• Support.

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Product

• Design.

• Quality.

• Technology.

• Branding.

• Services.

• Availability.

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Process

• Flow of activates standardization.

• Number of steps ( Simple, Complex )

• Level of customer involvement.

• Policies.

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Place

• Retail.

• Wholesale.

• Mail Order.

• Internet.

• Direct Sales.

• Peer to Peer.

• Multi-Channel

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Lauterborn 4 C’sniche market

• Communication channels.

• Brand ambassador

• Location to deliver services or sell products.

• How to deliver place utility

• Paid by customer.

• Value vs Price

• Product capability

• Capability Match

• Consumer orientation

Consumer Cost

CommunicationConvenience

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Shimizu's 7C’s Compass

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Example of 4 P’s

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PRODUCT

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PRODUCT

Big Mac29

PRODUCT

Happy Meal30

PRODUCT

McCafe31

PRODUCT

French Fries32

PRICE

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PRICE

Dollar Menu34

PRICE

Low Prices35

PROMOTION

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Logos37

Billboards38

Mascot Figure39

Packaging40

For a Limited Time 41

Updated Branding42

PLACE

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PLACE

Around the World44

PLACE

All over the US45

PLACE

Right of the Highway46

Practical

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There are two main types of data that will help you in researching your market

Data

Primary Secondary48

Secondary Data

Researchers will usually start by collecting secondary data.

Secondary data can be obtained quicker and at lower costs.

When collecting secondary data evaluate it carefully to make sure that it is:

Relevant

Accurate

Current

Impartial

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Primary Data

Consists of information collected for the specific purpose at hand.

To design a plan for primary data collection the following must be taken into consideration:

Research Approaches.

Contact Method.

Sampling Plan.

Research Instrument's.

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Research Approaches

Surveys Focus Groups

Interviews

Experiments Observation

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Focus Groups

• Involve getting a group of people together in a room.

• These people fit a target demographic (e.g. “mothers under 40 with an income over $50k”, “college males who play 8 or more hours of video games a week”.

• Participants are almost always compensated in some way.

• Focus groups can also be beneficial after a survey

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Surveys

widely known and utilized method.

come in a wide variety of shapes and sizes (feedback card) or long list.

Conditions to include in the survey:

You want to measure something objectively.

You have something specific to measure.

You have a relatively large sample to query.

You have the resources (time and money) to conduct a survey

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Interviews

individual interviews are a qualitative market research method.

Interviews can be free flowing conversations that are loosely constrained to a general topic of interest.

might be highly structured, with very specific questions and/or activities (e.g. projective techniques such as word association, fill in the blank, etc.) for the subject.

Use this market research method when you are interested in digging into a specific issue very deeply, searching for customer problems, understanding psychological motivations and underlying perceptions, etc

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Experiments

• Experiments and field trials involve scientific testing, where specific variables and hypotheses can be tested.

• These tests can be conducted in controlled environments or out in the field.

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Obama used “A/B testing• Some website visitors would see one image

and others (at random) would see a different image.

• The webpage team was able to measure which image was resulting in more donations, and they could quickly decide to use the more favourable image for all users

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Observation

• Observational research can come in a different shapes and sizes.

• strict observation with no interaction with the subject at all.

• observation with some level of intervention/interaction between the researcher and subject.

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• Eye Tracking – Let’s say you have come up with a website. You might ask people to navigate your website, and you will use eye tracking technology to create a “heat map” of where their eyes go on the website. This information can be used to re-design and optimize the page elements.

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• Usability testing – Watching a subject use a prototype device is one form of observational research. Again, this can be done with or without intervention.

• In-Store Observation – Simply watching shoppers in action is another form of observational research. What do shoppers notice? How do they go through a store? etc.

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• Mystery Shoppers – This involves hiring a regular person to go into a store and pretend to be an everyday shopper. They will then report on aspects of their experience, such as store cleanliness, politeness of staff, etc. In the case, the mystery shopper is the researcher and the store is the subject being observed

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Contact Method

Mail Telephone

Group Interviewing

Individual interviewing

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Contact Method

• With mail questionnaires: you can collect a fairly large amount of information at a low cost.

• Telephone interviewing: costs more than mail questionnaires but can provide more information quickly.

• Individual interviewing : is another way of gathering information. This type of interviewing may require an incentive to get people to participate.

• Group Interviewing : gathering a group of people together to discuss certain topics with a trained interviewer is known as group interviewing.

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Market segmentation

Geographic

Demographic

Behavioural

Psychographic

Dimensions

Market size

Market trends

Growth rate

Profitability

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Market segmentation

• Geographic: nations, states, regions, countries, cities, neighbourhoods.

• Demographic: age, gender, occupation and education level.

• Behavioural: divides consumers into groups according to their knowledge of, attitude towards, usage rate, response to a product.

• Psychographic: studying the activities, interests, and opinions (AIOs) of customers. It considers how people spend their leisure

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Dimensions

• Market size: The market size is defined through the market volume and the market potential.

• Market trends: Market trends are the upward or downward movement of a market, during a period of time.

• Growth rate: Simple means of forecasting the market growth rate is to extrapolate historical data into the future.

• Profitability: Different organizations in a market will have different levels of profitability, they are all similar to different market conditions, leads to Porter five forces analysis

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Porter five forces analysis

Industry Rivalry

Bargaining power of suppliers

Substitute products

Bargaining power of

buyers

New entrants

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Threat of new entrants

The existence of barriers to entry (patents, rights, etc.)

Government policy.

Access to distribution.

Cost disadvantages independent of size.

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Threat of substitute products or services

• Relative price performance of substitute.

• Number of substitute products available in the market.

• Quality depreciation.

• Ease of substitution.

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Bargaining power of customers (buyers)

• Buyer information availability.

• Buyer price sensitivity.

• Differential advantage (uniqueness) of industry products.

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• Supplier switching costs relative to firm switching costs.

• Degree of differentiation of inputs.

• Presence of substitute inputs.

• Strength of distribution channel.

• Employee solidarity.

• Supplier competition: the ability to forward vertically integrate and cut out the buyer.

Bargaining power of suppliers

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SEPTE analysis

A SEPTE analysis is a process that helps in analyzing the macro-environment.

SEPTE stands for:

– Social environment

– Economic environment

– Political and legal environment

– Technological environment

– Environmental issues

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Social environment

Social environmental factors include demographics and cultural aspects.

These factors affect customer needs and the size of potential markets.

Some social factors include:– population growth rates

– population shifts

– age structure (youths, young adults, retirees, etc.)

– the changing in family structure

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Economic environment

Economic trends can affect the marketing environment in several ways.

Fluctuations in real income determine how much consumers will have to spend on discretionary goods and services.

Also take into account the income distribution and the average income of your target market.

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Technological environment

Technological factors can lower barriers to entry and influence outsourcing decisions.

Some examples of technological factors include R&D activity, automation and rate of technological change.

Another factor that may affect the technological environment is if a company concentrates only on minor improvements or major innovations.

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Political and legal environment

Developments in the political and legal environment can have serious consequences on your marketing efforts.

Be aware of:– Legislation regulating business

– The affects of government agencies such as the FDA, FCC, or EPA on your company.

– Growth of public interest groups that positively or negatively affect your business.

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Environmental issues

In our ever changing world, marketers should pay close attention to certain environmental factors that could create tremendous impacts on the marketplace.

Impending shortages on raw materials, increased cost of energy, increased levels of pollution, and government regulations and intervention all play a role in the environmental marketplace.

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Consumer vs. Business…

• The first step in selecting your target market is to determine whether your customers are consumers or businesses and industries.

• Keep in mind that you can have more than one target market. However, if you find the description of your market too broad or general, then ask yourself:

• Is there really more than one target market here?

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Geographic location…

• Next consider the geographic level you will target.

• Will your customers be mostly at the local, state, national or international level?

• You also need to decide what the geographic makeup of your target market will be.

• You can classify your target market as either rural, suburban, urban, or a mix of any of these.

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Demographic variables…

• What characteristics will your target market share that will differentiate them from others?

• These variables should be measurable and can include any of the following:- Age - Education

- Gender - Occupation

- Race - Family Size

- Ethnicity - Marital Status

- Income - Social Class

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Psychographics of your market…

• Psychographics help define characteristics of a group based on their lifestyle, personality, and social class.

• One of the most popular surveys of psychographics is known as the VALS.

• Value, Attitude, Lifestyle Surveys

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Vals Segment

• Innovator: These consumers are on the leading edge of change, have the highest incomes.

• Thinkers: These consumers are the high-resource group of those who are motivated by ideals.

• Believers: These consumers are the low-resource group of those who are motivated by ideals. They are conservative and predictable consumers who favour local products and established brands

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• Achievers: These consumers are the high-resource group of those who are motivated by achievement. They are successful work-oriented people who get their satisfaction from their jobs and families.

• Strivers : These consumers are the low-resource group of those who are motivated by achievements. They have values very similar to achievers but have fewer economic, social, and psychological resources.

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• Experiencers: These consumers are the high-resource group of those who are motivated by self-expression. They are the youngest of all the segments, with a median age of 25.

• Makers: These consumers are the low-resource group of those who are motivated by self-expression. They are practical people who value self-sufficiency. They are focused on the familiar-family.

• Survivors: These consumers have the lowest incomes. They have too few resources to be included in any consumer self-orientation and are thus located below the rectangle

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Zip code psychographics…

• People with similar lifestyles tend to live in the vicinity of one another.

• Zip code psychographics can help you define characteristics of a region by just knowing its zip code

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• Activity and process of identifying a market problem or opportunity, and developing a solution based on market research, segmentation and supporting data.

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Brand positioning

Product positioning

Brand positioning process

1. Identifying the business's direct competition (could include players that offer your product/service amongst a larger portfolio of solutions).

2. Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest, largest, the #1 provider, etc.)

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3. Compare your positioning to your Competitors to identify your uniqueness.

4. Craft a brand positioning statement :

Target Customer: What is a concise summary of the attitudinal and demographic description of the target group of customers your brand is attempting to appeal to and attract?

Market Definition: What category is your brand competing in and in what context does your brand have relevance to your customers?

Brand Promise: What is the most compelling (emotional/rational) benefit to your target customers that your brand can own relative to your competition?

Reason to Believe: What is the most compelling evidence that your brand delivers on its brand promise? 88

Brand positioning statement example

• Amazon : For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection.

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Evaluating Your Brand Positioning Strategy

1. Does it differentiate your brand?

2. Does it match customer perceptions of your brand?

3. Does it identify your brand’s unique value to your customers?

4. Does it produce a clear picture in your mind that’s different from your competitors?

5. Is it focused on your core customers?

6. Is it memorable and motivating?

7. Is it easy to understand?90

Product positioning

Know your target

audience well

Identify the product features

Unique selling Propositions

Know your competitors

Ways to promote brands

Maintain the position of the brand

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• Know your target audience well:- Identify the target audience.- Understand their needs.- Know what your customers expect out of you.- Products must fulfil the demands of the individuals.

• Identify the product features:- features and benefits of the products

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• Unique selling Propositions:- Put yourself in your customer's shoes.- Know what motivates your customers' behaviour and buying decisions.- Uncover the real reasons customers buy your product instead of a competitor's.

• Know your competitors:- Never underestimate your competitors.- Let the target audience know how your product is better than others.

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• Ways to promote brands:- Choose the right theme for the advertisement.- Use catchy taglines. - The advertisement must not confuse people.( watch video )- The marketer must highlight the benefits of the products.

• Maintain the position of the brand:- Never compromise on quality. - Don’t drastically reduce the price of your products

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• A marketing plan is a comprehensive blueprint which outlines an organization's overall marketing efforts.

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Marketing plan content14 items

1. Title Page

2. Executive Summary

3. Current Situation :

legal

government

technology

supply chain

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4. Current Situation :

market size

market segmentation

industry structure and strategic groupings

Porter 5 forces analysis

competition and market share

competitors' strengths and weaknesses

market trends

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5. Current Situation Consumer Analysis :

participants

demographics

psychographics

buyer motivation and expectations

loyalty segments

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6- Current Situation - Internal - Company resources

o financialo peopleo timeo Skills

• Objectives: o mission statement and vision statemento corporate objectiveso financial objectiveo marketing objectiveso long term objectiveso description of the basic business philosophy

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7 - Summary of Situation Analysis external threats:

external opportunities

internal strengths

internal weaknesses

Critical success factors in the industry

our sustainable competitive advantage

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8- Marketing Research

information requirements

research methodology

research results.

9-Marketing Strategy - Product

Unique selling proposition (USP)

product mix

product strengths and weaknesses

Brand name, brand image.

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10 - Marketing Strategy – segmented: by product by customer segment by geographical market by distribution channel

11 - Marketing Strategy – Price: pricing objectives pricing method (e.g.: cost plus, demand based, or

competitor indexing) pricing strategy (e.g.: skimming, or penetration) discounts and allowances price elasticity and customer sensitivity price zoning

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12 - Marketing Strategy - Promotion

promotional goals

promotional mix

advertising reach, frequency, flights, theme, and media

sales force requirements, techniques, and management

sales promotion

publicity and public relations

electronic promotion (e.g.: web, or telephone)

word of mouth marketing

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13 - Marketing Strategy - Distribution

geographical coverage

distribution channels

physical distribution and logistics

electronic distribution

14 – Implementation :

financial requirements.

month-by-month agenda.

monitoring results and benchmarks

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• Why do social media ?

Build brand awareness through extended reach.

Expand your network to acquire new business & customers.

Interact with your loyal customers.

Gain customer insight.

Become more influential

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Creating a facebook advert.

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Facebook Data

• The following date was obtained after analyzing 1.5 Million Facebook posts from nearly 6,000 brand Pages.

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Monday 16.14% Tuesday 16.47% Wednesday 16.62% Thursday 16.82%Friday 16.18% Saturday 9.04% Sunday 8.73%

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Twitter Data

• The following date was obtained after analyzing :

1,423 Twitter Accounts.

1.7 Million Tweets.

Limited accounts with over 1K followers.

Normalized Retweets per 1K followers

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