1. IMS 554 Info. Marketing for Information System Department Information Marketing Principles of Marketing

2. Marketing Functions  All companies start out with five simple functions:  Finance  Personnel  Operations  Sales  Accounting  As the company expands to serve new types of customer and new types of areas, the company needs to strengthen certain marketing functions other than the above.

3. Marketing Functions – cont.  The continued growth of the company increases the productive potential of investment in other marketing functions Marketing research New product development Advertising and sales promotion Customer service  Marketing functions become one of the major division of a modern company and eventually become a modern marketing company

4. Marketing  Definition:  Refer to the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organization goals.

5. 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, transaction, and relationships

6. Marketing Mix  Definition: Refer to a blend of product, distribution (place), promotion and pricing strategies designed to produce mutually satisfying exchanges with a target market.

7. Product  Definition: o“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 level of product: oFundamental level is the core product oIntermediate level ia the tangible product. oFinal level is the augmented product

8. Product Strategies  Refer to product offering and product strategy Design a distribution strategy Decide on promotion campaign Set a price ( depend on where it is to be marketed)  Includes physical unit, and other elements such as package, warranty, after-sale service, brand name, company image

9. Product Strategies-cont.  Product can be tangible goods Computers Ideas ( offered by consultant) Services ( offered by medical care, computer centre)

10. Place  Place or distribution intermediaries makes up a marketing channel  Also known as 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

11. Distribution (Place) Strategies  Concerned with making products available where and when customers want them.  Include physical distribution- storing and transporting raw materials or finished products.  The goal of distribution ~ ensure products arrive in usable condition at designated places when needed.

12. Promotion  Consist of four major tools: personal selling, advertising, sales promotion, public relations.

13. Promotion strategy  Provide mutually satisfying exchanges with target markets via informing, educating, persuading and reminding them of the benefits of an organization or a product.  A good promotion strategies can increase sales.

14. Pricing  Price is what a buyer must give up to obtain a product  Refer to the amount of money customers have to pay for the products and services.

15. Pricing Strategies  The most flexible and the quickest element to change compared to the other three marketing mix elements.  Marketers can raise and lower prices more frequently and easily than they can change other marketing mix variables.  The pricing strategies is largely determined by the prior decision on market positioning and target market.

16. Managing Marketing  The key to building lasting customer relationships is the creation of superior cuatomer value and satisfaction  Customer Value:  Customers buy from the firm that they believe offers the highest customer delivered value

17. Managing Marketing – cont.  Customer Satisfaction: Refer to the extent to which a product’s perceived performance matches a buyer’s expectations.  Customer Loyalty and Retention Satisfied customer are less price sensitive, talk favorably to others about the company and its product Remain loyal for a longer period.

18. Target Market  Refer to a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting a mutually satisfying exchanges

19. Market & Market segment  Market People or organizations with needs or wants and the ability and willingness to buy  Market segment A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

20. Market Segmentation  Refer to the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

21. Position  Position is the place a product, brand, or group of products occupies in consumers’ minds relative to competing offering.

22. Positioning  Refer to a process of developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general.