Post on 25-Dec-2015
Learning ObjectivesDemonstrate an understanding of the marketing concept.Describe the role of marketing.Appreciate the importance of marketing research.Explain the factors affecting buying behaviour.Demonstrate an understanding of the target market.
What is marketing? Marketing is the management process responsible for identifying, anticipating and satisfying customer requirement profitably
Marketing ConceptAn organization remains in business by profitably satisfying and servicing customers
Relationship between marketing Concept and Marketing Mix
The Marketing Concept
Put the customer first
Find out what customers need
Supply satisfactions for those needs
Means that we= produce what people want to but, NOT sell what we like making
So we must = organize and co-ordinate the company so that this happens
In order to = carry out market research
Which we do by offering the right
Marketing Mix
= Product – the right article= Price – at the right price= Place – through the right channels= Promotion – in the right way
Important information required for marketing
activitiesMarket size Consumer profilesTypes and nature of the products in the marketNumber and market share of the competitorsStrategies of the competitorsAnnual sales of the market in the pastGrowth potential of the market
Marketing ResearchThe purpose of marketing research is to reduce the area of uncertainty surrounding business decision
Roles of marketing research
Markets – what the public wantsMarketing strategies and tacticsInteraction between marketsMarketing methodsProduct/services
Steps in Marketing Research
Definition of problemSituation analysisPreparation of research design
Determine information designPrimary research/ secondary research??Research methodologyFormulate sampling plan
Collection of dataTabulation and analysis of dataPreparation and presentation of reports
Primary VS Secondary Research
Primary Research/ Field ResearchPrimary data: information which does not already existE.g. survey,observation, experiences
Secondary Research/ Desk ResearchSecondary data:Information which already existInternal and external source
Primary Data Secondary Data
Characteristics •- Data already existing, having been originally collected for some purpose other than project on hand•-Internal (from company itself) and external•- e.g. data from government (census), commercial publications, or regular MR services
Advantages - data collected is specific to the market research
•- often available at little or no cost - has already been collected (save time)
Disadvantages - collected for another purpose need to be adapted before it can be used
- original data collected specifically for the current research project
- From(i) Observation(ii) Experiences(iii) Survey
-very expensive-Time consuming
Research Methodology – Methods of Primary
Research (1) Questionnaires / Survey
MailingTelephonePersonal Interview
o Questionnaire Design
Advantages and disadvantages of different survey contact
methodsAdvantages
Telephone surveyHigh response rateQuickReach scattered geographical areas
Postal surveyReach scattered geographical areasRespondents have enough time to answer the questions
Disadvantages
Can ask only simple questionsLittle control over the respondents
Low response rateLittle control over the respondentsTakes a long time to collect the responses
Personal interviewCan observe the respondents’ reactionsCan ask more complex questionsHighly flexible
Bias may existTime consuming and costly
Research Methodology – Methods of Primary
Research (2) Observation
Often used by retail firms “watching” consumers in their stores or meters on the TV sets to monitor viewing
(2) Experiments PanelsConsumer panels: involves a group of consumers being consulted on their reactions to a product over a period of time
Sampling Procedures (1) Select the population- target
population for a particular product(2) Select the sampling units(3) Select the sampling frame(4) Select the sample design(5) Select the sample size(6) Select the sampling plan(7) Select the sample
Factors affecting consumer buying behaviour
Personal factors
Interpersonal factors
Economic factors
Perceptions Culture State of the economy
Experience Ethical standards
Purchasing power
Needs Social influences
Interest rates
Values Family influences
Tax rates
Personality
A typical buying processProblem
recognitionAwareness
Initial Interest
Making adecision
Evaluation
SearchingFor
alternatives
Market SegmentationDefinition: to identify people with similar needs and breaking down a market into sub-groups with similar characteristics
Market segmentation factorsFactors Illustrations
Demographic:Age Infant, child, teenager, young adult, mature adult,
middle-aged adult, old-aged adult
Sex Male, female
Income Low income, middle income, high income
Occupation Unskilled worker, skilled worker, clerk, administration, professional, housewife, unemployed
Education Illiterate, primary school graduate, secondary school school graduate, university graduate
Religion Christian, Catholic, Buddist, Taoist, othersRace Oriental, White, Black, others
Geographic:
Country China, Japan, United States, United Kingdom, others
Settlement Urban, suburban, rural
Climate Equatorial, tropical, subtropical, temperate, polar
Psychological:
Social class Lower class, middle class, upper class
Life style Carefree, working style, materialistic, others
Rational economic:Benefit Quality, after-sales services, warranties
Price Discounts, credit facilities, prices of substitutes
Undifferentiated marketing strategy
A single set of marketing
strategies for the whole
heterogeneous market.
Differentiated marketing strategy
A separate set of marketing
strategies for each segment in the
market.
Concentrated marketing strategy
Concentrating the marketing effort
on a particular segment in the
market.