MARKETING
1.What is Marketing?
A process of identifying & satisfying customer needs & wants at a profit.
2.The 4Ps – actions:
Product:
Steps:
• Research & examine recent trends & opportunities:
_who are the prospective /aimed consumers? ( students, women, men, rich people,
poor people…)
_what do they need & want? What could become a new trend?...
_when is the right time to replace an old trend with a new one?
_how would consumer react? How strong would demand be? How fast would it grow?
• Design and development of product ideas.
• Selection of and sifting through product ideas
• Testing
Pricing:
This refers to the process of setting a price for a product/service, including discounts.
_how high should the cost of the product be? ( Firms must measure not only how many people want the product but more importanly, how many people would be willing & able to buy it ).
_how would demand depend on the price?
To answer : estimate demand & evaluate competitors' reactions .
Promotion:
Involves disseminating information about a product/service:
• advertising : introduce, describe & persuade people to buy , in the media (e.g. TV, radio, newspapers, Internet and Mobile Phones)
chart
• product placement :where would the product be placed at a supermarket, mall…(for ex. near the exit where everybody can see…)
• public relations : create good relationship with consumers & media, provide info & create consumer’s awearness & sympathy(events, contests, meetings with the media, conferences, trade shows - an exhibition organised so that companies in a specific industry can showcase and demonstrate their latest products, service)
Placement (or distribution):
Refers to how the product gets to the customer
Ex : the channel by which a product or services is sold (e.g. online vs. retail), which geographic region or industry, how the environment in which the product is sold in can affect sales.
Ex : In 1920, American kids didn't like soap as they thought soap caused buring pain on their skin. P&G wanted to sell their new product Ivory to new customer - children. They held a contest - making statues from Ivory soap.The winners would recieve prizes and their statue would be exhibited in New York. In the contest, kids found out that Ivory was cute, had good smell & didn't burn their skin. FROM THAT ON, American kids STARTED using soap.