1. The Marketing Concept April 12 th, 2013 Participants manual 1 2013 Level UP - Lebanon

2. Seminar objectives 1.What is Marketing? 2.How it developed into todays science? 3.Learn the golden pillars in Marketing 4.How you can build TRUST with your clients? 5.How Marketing segmentation and positioning will help your Strategy? 6.How IMC help boosting your image? 2

3. Marketing Principles NATURE & SCOPE OF MARKETING: * Social & human sciences: sociology, psycho, political * business sciences: stat, mgt, eco, fin, acc Purpose? ingredientsto whom? Which people? Concept? taste / odor / features Where? / How to access? package / labelWhich stores? cost / price Awareness / promo? IdeaProductMarket 3

4. Marketing: is simply to create a consumer satisfying: Product - Price it - Promote it - Place it. Marketing is a customer-oriented process by which companies create value for customers and build strong customer relationships to capture customers value in return through satisfying their needs & wants Marketing Principles 4

5. Production concept Selling concept Marketing concept Social Marketing concept Marketing Management Orientations The Marketing evolution

6. Sales Vs. Marketing SALESMARKETING Seller focuses on his interests Marketer focuses on clients interests Seller focuses on making more volume and more money Marketer focuses on making clients whom will bring more money Selling is usually short-range (hit & run) Marketing is long-term used to build trust Money generated from sales go back to make more sales, more volume and more $ Money generated from sales go to R&D to make a better product. To sell what we makeTo make what we sell 6

7. Successful Relationships 1. Customer value 2. High level of customer satisfaction 3. Strong sense of customer trust 4. Customer retention Customer Value, Satisfaction, Retention and Trust 7

8. The golden pillars in Marketing 1.Customer value: is to provide customer with added value not easily available at competitors (differential advantage) Value is the ratio of perceived benefits acquired versus what has been paid. 2.Customer satisfaction: Is the individuals perception of the performance of the product in relation to his expectation 8

9. 3.Customer retention: The objective of providing customers with value and satisfaction is to retain customers and make them loyal. LOYALTY, WHY? –They buy more products –They are less price sensitive –Servicing them is cheaper –They spread positive word of mouth The golden pillars in Marketing We provide VALUE SATISFAC TION Retention LOYALTY 9

10. Before: Few Doctors (Doctors had the influencing decisions - you had to convince one decision maker) Many patients unaware / unknowledgeable Few companies were dominating the markets with products (80/20) Few Hospitals & intermediaries Few similar medicines Fewer generic drugs Before and After… 10 After: More Doctors (more demanding Doctors) Final customers (patients) are becoming more knowledgeable More companies with similar products More generic drugs More hospitals More Pharmacists (even staff prescribe!) Friends, nurses, aid-nurses (they all prescribe) More active Distributors

11. Creating Value for Target Customers I.Market Segmentation II.Market Targeting III.Differentiation and Positioning THROUGH

12. I. The Marketing segmentation A target market: is a geographical location composed of heterogeneous people and whose the Company aims its efforts at Market segment: Since we want to address only some of these people, we will subdivide our target market into segments. My Target segment: will be the above segment which will be now homogeneous and treated with same Marketing-mix strategies 12

13. II. T- S - T Targeted geographical region Heterogeneous Groups with different needs Chosen segment: Kids – smokers – Parents – rich people.. 13

14. 1. Demographic Segmentation Marital Status Family Life- cycle Income, Education, and Occupation Age Gender 14

15. 2. Psychological (Personality Traits) Trait is any distinguishing, relatively enduring way in which one individual differs from another Major types: a) Inner Vs. Other-directedness b) Extrovert Vs. Introvert c) High Vs. Low Dogmatism Personality is linked to both, product categories and specific brands 15

16. 3. Social Class & Lifestyles Social class stratification: High – Middle - Low Psychographics include activities, interests, and opinions (A.I.O.) They explain buyers purchase decisions and choices 16

17. 4. Benefits Segmentation When consumers primarily seek specific benefits from their products: Uniqueness Quality or Value for money Emotional / social benefit 17

18. III. Differentiation & Positioning Positioning: It is simply how customers view / perceive your product / brand or how you want them to perceive it (when compared to others) Positioning is affected when comparing our product Vs. competitors through consumers: –Perceptions –Impressions –Feelings 18 Positioning Concept –Positioned in the consumers mind –Positioned against competing brands

19. III. Differentiation and Positioning 1. Product differentiation: Attribute – Price – Formula - Package 2. Service differentiation: Fast – reliable - coverage 3. Channel differentiation: Strong market penetration 4. People differentiation Knowledge – skills - Proactive 5. Image differentiation: Class - Country of Origin

20. The markets dynamics

21. End of Seminar 21