2. Marketing process & consumer behaviour

3. Key Topics Definition of marketing The external marketing environment Segmentation and target marketing The consumer buying process Organizational markets and buying behavior Consumer and industrial products Branding and packaging

4. What Is Marketing? “Planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives” Finding a need and filling it! OR

5. Nature of Marketing To create value by allowing people and organizations to obtain what they need and want

6. The Marketing Concept The idea that an organization should try to satisfy customer’s needs through coordinated activities that allow it to achieve its own goals (profit) Did You Know? Trying to determine a customer’s true needs is difficult because no one fully understands what motivates people to buy. Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

7. Marketing Creates Utility Utility--a product’s ability to satisfy human needs and wants Place Time Ownership Form Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

8. Functions of Marketing Buying Selling Transporting Storing Grading Financing Marketing research Risk taking Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

9. Total-Market Approach The marketer tries to appeal to everyone and assumes that all buyers have the same needs Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

10. Target Market Strategies Total- Market Approach Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

11. The Exchange Relationship Exchange: The act of giving up something (money, credit, labor, goods) in return for something else (goods, services, or ideas) Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

12. The Exchange Process: Giving Up One Thing in Return for Another Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

13. The Influence of Marketing Permeates Everyday Life Goods Consumer Industrial Services Ideas Relationship marketing emphasizes lasting relationships with customers and suppliers

14. Evolution of the Marketing Concept The production orientation During the second half of the 19th century The sales orientation By the early part of the 20th century The marketing orientation By the 1950s Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

15. Marketing Orientation Requires organizations to: Gather information about customer needs Share that information throughout the entire firm Use that information to help build long- term relationships with customers Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

16. The Marketing Environment External forces that directly or indirectly influence the development of marketing strategies Political Legal Regulatory Social Competitive Economic, and technological Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

17. Developing Marketing Strategy Marketing strategy: A plan of action for developing pricing, distributing and promoting products that meet the needs of specific customers Two major components: Selecting a target market Developing the appropriate marketing mix Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

18. The Competitive Environment Drives Marketing Decisions Substitute product competition Brand competition International competition

19. Marketing Research & Information Systems Marketing research A systematic, objective process of getting customer information to guide marketing decisions Marketing information system A framework for assessing information about customers from internal and external sources Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

20. Collecting Data Primary data Marketing information that is observed, recorded, or collected directly from respondents Secondary data Information that is compiled inside or outside an organization for some purpose other than changing the current situation Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

21. Marketing Mix: The “Four P’s” (Distribution) roductroduct ricingricing romotionromotion lacelace

22. Product A good, service, or idea that has tangible and intangible attributes that provide satisfaction and benefit to consumers Products should be sold at a profit Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

23. Price A value placed on a product or service that is exchanged between a buyer and seller Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

24. Distribution (Place) Making products available to consumers in the quantities and locations desired Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

25. Promotion A persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals and organizations to accept goods, services, and ideas Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

26. The Promotional Mix Advertising Personal Selling Sales Promotions Public Relations

27. Market Segmentation Market Segmentation: A strategy to divide the total market into groups of people who have relatively similar product needs Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

28. Bases for Segmenting Markets Demographic Geographic Psychographic Behavioristic Did You Know? During its first year of operation, sales of Coca-Cola averaged just nine drinks per day for total first-year sales of $50. Today, Coca-Cola products are consumed at the rate of one billion drinks per day. Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

29. Identifying Market Segments Psychographic Variables Geographic Variables Demographic Variables Berdasarkan Wilayah Berdasarkan Karakter Populasi (Usia, pendidikan,keluarga, pendapatan dsb Berdasarkan Karakter Konsumen (Gaya hidup, Hobi, Sikap)

30. The Keys to Successful Market Segmentation 1.Consumers’ product needs must be heterogeneous 2.Segments must be identifiable and divisible 3.The market must be divided so segment sales, cost, and profit can be compared 4.One segment must have enough profit potential to justify a special marketing strategy 5.The chosen segment must be reached by the firm with a particular marketing strategy Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

31. Market Segment A collection of individuals, groups, or organizations who share one or more characteristics and have similar product needs and desires Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

32. Niche Market Narrow market segment focus when efforts are on one small, well-defined segment that has a unique, specific set of needs Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

33. Market Segmentation and Target Marketing Market Segmentation Dividing a market into customer categories Target Marketing Selecting a category of customers with similar wants and needs who are likely to respond to the same products

34. Selecting a Target Market Market A group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas Target market A more specific group of consumers on whose needs and wants a company focuses its marketing effort Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

35. Consumer Behavior Psychological Influences (motivasi, persepsi, sikap) Personal Influences (gaya hidup, status ekonomi) Social Influences (keluarga, rekans) Cultural Influences (budaya, etnis, kelas sosial) Why do consumers purchase and consume products?

36. Buying Behavior The decision processes and actions of people who purchase and use products Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

37. Psychological Variables of Buying Behavior Perception Motivation Learning Attitude Personality Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

38. Social Variables of Buying Behavior Social roles Reference groups Social classes Culture Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

39. Organizational Markets Industrial Market Government and Institutional Market Reseller Market

40. Organizational Buying Behavior Differences in buyers Professionals Specialists Experts Differences in buyer/seller relationships

41. Classifying Products Consumer Convenience Goods Shopping Goods Specialty Goods Industrial Expense Items Capital Items

42. Product Offerings Product Line A group of similar products, intended for similar buyers, who will use them in similar ways. (mis. Sabun) Product Mix The total group of products that a company offers for sale. (mis. Alat pembersih)

43. Developing New Products The New Product Development Process Product Mortality Rates Strategy of introducing new products to respond quickly to customer or market changes

44. Creating Product Brands Branding Using symbols to communicate the qualities of a given product to create loyal consumers Types of Brands: National Brands Licensed Brands Private Brands

45. Product Packaging Attracts consumers Displays brand name Protects contents Supplies information Communicates features and benefits Provides features and benefits (e.g. easy pour spout)

46. Satu