By

Obaidullah Bashir Gul-e-Faris Zaman Muhammad Ejaz Fasial Farooq Jibral Ahmed

D efi n i t i on of Ma r k et i n g
Ma r k et in g is t h e pr ocess of d e v e lo pi n g , p ro m o ti n g , a n d d i s tri bu ti n g pr odu ct s in or der t o sa t isfy cu st om er s n eeds a n d wa n t s.

Dev elop Prom ote Distribute

P ro d u c ts
Slide 18-2 6/29/2012

Go o d s

Car Food Home Clothes

Id e a s

Internet Training Computers Printed Materials

Se r v i c e s

Hospital TV Repair Auto Mechanics Carpet Cleaning

Short Definition of Marketing: The promotion of goods, services, and ideas.

3

Wh at d o w e learn in M ark etin g?

The Four Ps
Of Marketing 1. Product 2. Place 3. Price 4. Promotion
4

Product
Any goods, services, or ideas that we wish to sell. Goods, Services, or Ideas Defining Target Markets Product Design or Content Quantities Quality: Standard/Deluxe Guarantees or Warranties

Place
Distribution is getting the right product to the right place at the right time in the right amount and in the right condition. Distribution Storage & Warehousing Transporting

Price
Determining a dollar amount at which we can sell the product. Costs: Production Wholesale / Retail Compare to Competition Profit Margin Value

Promotion
Making potential customers aware of a product in a positive way so they will want to buy it. Packaging Advertising Personal Selling Sales Promotion: Coupons, Discounts

A PRODUCT is anything that can be offered to a market usually to satisfy a want or need

Every PRODUCT has a life cycle and asserts four things about a PRODUCT:

PRODUCTS have a limited life PRODUCT sales pass through different stages each posing different challenges, opportunities n problems to the seller Profits rise n fall at different stages PRODUCTS require different marketing, financial, purchasing strategies at each stage

Product Life Cycle....

No of sales Saturation Maturity

Decline

Growth Launch / Introduction

Research & Development (R&D)

Time line

Research n Development Phase:

Begins when the company develops a new-product idea Sales are zero Investment costs are high Profits are negative

Introduction Phase:

Low sales Prices tend to be high becoz costs r high Negative profits Innovators are targeted Little competition

Growth:

Sales rapidly rise Prices remain where they r , or fall slightly Rising profits Promotional expenditure may increase or decrease depends upon competition New customers also start buying Growing competition

Maturity Phase :

Usually lasts longer than previous stages Divided into three phases:

1.

2.
3.

Growth-sales growth rate starts to decline Stable-sales flatten becoz of market saturation Decaying maturity-the absolute level of sales begin to decline and customers start switching to other products

Decline Phase :
Sales and profits decline Some companies withdraw their products from market Those remaining reduce number of products High prices on spare parts Focuses on cost reduction

1.

2. 3.

4.

Rapid-skimming strategy (high price/high promotion). Slow-skimming strategy (high price/low promotion). Rapid-penetration strategy (low price/high promotion). Slow-penetration strategy (low price/low promotion).

Sales
Costs Profits
Marketing Objectives

Low sales High cost per customer Negative Create product awareness and trial Offer a basic product Use cost-plus Build selective distribution Build product awareness among early adopters and dealers

Product Price Distribution Advertising

1.

2. 3.

4.

5.

Improve service quality and add new service features and elements Enter new market segments Use new channels of distribution Lower prices to attract more price-sensitive customers Shift from product awareness advertising to product-preference advertising

Growth Stage of the PLC

Sales Costs Profits

Marketing Objectives

Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty

Product Price Distribution Advertising

Price to penetrate market

Build intensive distribution Build awareness and interest in the mass market

1.

Market-modification strategy

Increase frequency use by current consumers Look for new target market

2.

Product-modification strategy

Quality improvement Feature improvement

Maturity Stage of the PLC

Sales Costs Profits

Marketing Objectives

Peak sales Low cost per customer High profits Maximize profit while defending market share Diversify brand and models

Product Price Distribution Advertising

Price to match or best competitors

Build more intensive distribution Stress brand differences and benefits

1.
2. 3. 4.

Reduce cost Reduce price Phase out weak items Include special offers

Decline Stage of the PLC

Sales Costs Profits

Marketing Objectives

Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items

Product Price Distribution Advertising

Cut price
Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers

Product Strategies
Product Market Growth Strategies

Old
Markets

Market Penetration Product Development

(increase usage)

(new uses)

New

Market Development

Diversification

(new users)

(new users, new uses)

Old
Products

New

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6/29/2012