IMS 554 INFORMATION MARKETING for INFORMATION SYSTEMS DEPARTMENT CHAPTER 2 PRINCIPLES of MARKETING Pn Hasnah Hashim Lecturer Faculty of Information Management Universiti Teknologi MARA Puncak Perdana Campus

2 PRINCIPLES of MARKETING 1. The Marketing Concept 2. Strategic Planning 3. The Marketing Process 4. The Marketing Opportunities & Strategies 5. The Marketing Mix 6. The Managing Marketing

MARKETING FUNCTIONS Marketing Function  All companies start out with five simple functions like finance, personnel, operations, sales, and accounting.  As the company expands to serve new types of customers or new geographical areas, it needs to strengthen certain marketing functions other than sales. 3 PRINCIPLES of MARKETING

MARKETING FUNCTIONS Marketing Function  The continued growth of the company increases the productive potential of investments in other marketing functions - like marketing research, new product development, advertising and sales promotion, customer service - relative to sales force activity.  Marketing functions become one of the major division of a modern company and eventually become a modern marketing company. 4 PRINCIPLES of MARKETING

WHAT IS MARKETING? 5 A philosophy plus An attitude plus A perspective plus A management orientation A set of activities, such as: products & services, pricing, promotion, and distribution + Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. = PRINCIPLES of MARKETING What Is Marketing?

6 PRINCIPLES of MARKETING 1.The Marketing Concept Marketing is a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others. Needs, Wants, and Demands Products and Services Value, satisfaction, and quality Exchange, transactions, and relationships

Ratio of values/benefits to necessary sacrifices A core business strategy Determination of consumer’s definition and measurement of value? Sacrifices may be financial, psychological, sociological, level of perceived risk, time, etc. Cont….7 PRINCIPLES of MARKETING 1.1The Organization Focus Customer Value

Offer products that perform Give consumers more than they expect Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and after-sales support 8 PRINCIPLES of MARKETING

1.2Differences between Sales and Marketing Orientation 9

1.3Differences between Sale and Marketing Orientation 10

STRATEGIC PLANNING 2.Strategic Planning  The Strategic Planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.  It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies.  Within each business unit, marketing plays a role in helping to accomplish the overall strategic objectives. 11 PRINCIPLES of MARKETING

3.The Marketing Process  The strategic plan defines the company’s overall mission and objectives  The Marketing Process involves  analysing marketing opportunities,  selecting target markets,  developing the marketing mix, and  managing the marketing effort.  The goal is to build strong and profitable connections with these consumers. 12 PRINCIPLES of MARKETING

The Marketing Process  A mission statement consistent with the organization’s mission statement  Set measurable marketing objectives  Environmental Scan (Internal and External)  Marketing strategy (Target Marketing & Marketing Mix)  Implementation  Measure performance against objectives  Review and feedback 13 PRINCIPLES of MARKETING

14 MARKETING STRATEGY Target Market and Marketing Mix (Product, Price,Promotion, Distribution) IMPLEMENTATION EVALUATION FEEDBACK MISSION STATEMENT SETTING MARKENTIG OBJECTIVES ENVIRONMENTAL SCAN ( S. W. O. T. ) PRINCIPLES of MARKETING The Marketing Process

 Developing marketing opportunities and strategies by using marketing research and information systems.  Marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. 15 PRINCIPLES of MARKETING 4.The Marketing Opportunities & Strategies

4.1Marketing information system Assessing information needs through the interaction of the marketing managers, developing needed information from internal company data, marketing intelligence activities, marketing research, and information analysis, Distributing information in the right form at the right time to help marketing managers make better marketing decisions. 16 PRINCIPLES of MARKETING The Marketing Opportunities & Strategies

5.The Marketing Mix  Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market.  McCarthy popularized a four-factor classification of these tools called the 4Ps: Product Price Place Promotion 17 PRINCIPLES of MARKETING

Product Definition: “A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.” Three levels of product:  Fundamental level is the core product.  Intermediate level is the tangible product.  Final level is the augmented product. 18 PRINCIPLES of MARKETING

Price  Price is the amount of money those customers have to pay for the product and services.  The pricing strategy is largely determined by the prior decision on market positioning and target market.  There are six major business objectives that a company can pursue through its pricing. Survival Maximum sales growth Maximum current profit Maximum market skimming Maximum current revenue Product-Quality leadership 19 PRINCIPLES of MARKETING

Place  Place or Marketing intermediaries makes up a marketing channel also called trade channel or distribution channel.  Marketing Channels can be viewed as sets of interdependent organizations involved in the process of making a product or service available for use or consumption. 20 PRINCIPLES of MARKETING

Promotion Promotion mix consists of four major tools:  Advertising  Sales promotion  Publicity  Personal selling 21 PRINCIPLES of MARKETING

6.The Managing Marketing  The key to building lasting customer relationships is the creation of superior customer value and satisfaction.  Customer Value:  Consumers buy from the firm that they believe offers the highest customer delivered value.  Customer Satisfaction:  The extent to which a product’s perceived performance matches a buyer’s expectations. 22 PRINCIPLES of MARKETING

The Managing Marketing  Customer Loyalty and Retention:  Satisfied customer are less price sensitive, talk favourably to others about the company and its products, and remain loyal for a longer period.  Growing Share of Customer:  Constantly increase their share of customer. 23 PRINCIPLES of MARKETING

Thank You 24