Presentation on theme: "M. Wispandono - FE Unijoyo 2010/11 What is a market? A market is a group of potential customers with the authority and the ability to purchase a particular."— Presentation transcript:
M. Wispandono - FE Unijoyo 2010/11 What is a market? A market is a group of potential customers with the authority and the ability to purchase a particular product or service that satisfies their collective demand. The important part of this definition is that people alone do not make a market. The people in the market, whether individual consumers or individuals buying for a business, must have the authority to make the purchase decision and have the money to be able to buy. Markets are subdivided into two major markets – consumer and industrial.
M. Wispandono - FE Unijoyo 2010/11 MARKETING Definition MMMMarketing is a group of interrelated activities designed to identify consumer needs and to develop, distribute, promote, and price goods and services to satisfy these needs at a profit. BBBBased on that definition, so there are 4 element of marketing. They are: 1.P roduct 2.P rice 3.P lace 4.P romotion Additional, The new concept of marketing are included Power, and Public Relation. CCCConcept & Orientation of Marketing The marketing concept is a belief that the company should adopt a companywide consumer orientation directed at long-range profitability. It includes the belief that all efforts of the organization should be directed at identifying and satisfying the needs of the consumer at a profit. They are 3 orientation of marketing : 1.Production orientation 2.Sales Orientation 3.Marketing Orientation
M. Wispandono - FE Unijoyo 2010/11 MARKETING FUNCTION Selling Transporting Storing Financing Risk-Bearing Obtaining Market Information Standardizing And Grading Buying
M. Wispandono - FE Unijoyo 2010/11 The Process of Marketing a Product Identify Potential Target market Analyze Needs of Target market Research potential Sales, profit, demand, Buying power Create a Product to Satisfy needs Price product To reach Target Market Distribute Product Promote Product to Target Market Provide After- Sales service Collect feedback
M. Wispandono - FE Unijoyo 2010/11 MARKET SEGMENTATION The process of dividing a total market into subgroups with similar characteristics is market segmentation. Two steps which is necessary in market segmentation: Step 1: Identify the characteristics and needs of the market. Information on consumer characteristics and needs to segment the markets, such as: 1. Data on family income, geographic location 2. Behavior patterns 3. Physical characteristics 4. Psychologic traits 5. Opinions of goods on the market 6. Degree of competition
M. Wispandono - FE Unijoyo 2010/11 From this market can be analyzed and subdivided in four ways: a. Geographic segmentation b. Demographic segmentation c. Psychographic segmentation d. Benefit segmentation Step 2 : Analyze the potential of the market. A second activity undertaken in segmenting the market after its characteristics and needs are identified is to analyze its 1. Sales potential 2. Demand potential 3. Buying power 4. Profit potential
M. Wispandono - FE Unijoyo 2010/11 MARKETING MIX The tools or variables a marketer works with to reach the target market are product strategy, price strategy, distribution strategy, and promotion strategy. The effective meshing of product, price, distribution, and promotion strategies to achieve success is known as Marketing Mix. Product Place Price Promotion Target Market Segment
M. Wispandono - FE Unijoyo 2010/11 Product strategy extends beyond the physical item itself to include decisions about brands, labels, trademark, packaging, guarantees, new product development, and the PLC. Pricing strategy is concerned with establishing prices for products that will return a profit. Pricing decisions are influenced by how responsive a target market is to a high or low price, the psychological images created by prices (cheap versus quality).
M. Wispandono - FE Unijoyo 2010/11 Distribution strategy involves the distribution systems and channels used to place the product in the customer’s hands. Decisions are made concerning what shipping methods to use, how and where to store the product until it is sold, what intermediaries to use. Promotional strategy involves developing the correct blend of the promotional mix elements – advertising, personal selling, sales promotion, and publicity. Promotional strategy is the communication element of the marketing mix.