PB 201 ENTREPRENEURSHIP

CHAPTER 5:
OVERVIEW OF
MARKETING
PB 201 ENTREPRENEURSHIP
CHAPTER 5:
OVERVIEW OF
MARKETING
CLO 1
1. Explain clearly the concept of
entrepreneurship, business ownership
and procedures in setting up a business in
case study given (C2)
CLO 1
1. Explain clearly the concept of
entrepreneurship, business ownership
and procedures in setting up a business in
case study given (C2)
Definition of marketing?
The management process responsible for identifying,
anticipating and satisfying customer requirement
profitably (CIM, 2007)
Activity, set of institutions and processes for creating
communication, delivering and exchanging offerings
that have value for customers, clients, partners and
society at large (AMA, 2007)
The process by which companies create value for
customers and build strong customer relationship in
order to capture value from customers in return (Kotler
and Armstrong)
The management process responsible for identifying,
anticipating and satisfying customer requirement
profitably (CIM, 2007)
Activity, set of institutions and processes for creating
communication, delivering and exchanging offerings
that have value for customers, clients, partners and
society at large (AMA, 2007)
The process by which companies create value for
customers and build strong customer relationship in
order to capture value from customers in return (Kotler
and Armstrong)
PRODUCT PLACE
PROMOTION PRICE
Marketing MIX
Product
Anything that can be offered to a marker for attention,
acquisition, use or consumption that might satisfy a
need or want (Kotler, 2007)
Tangible and intangible product.
physical object, goods, services, people, place and
ideas.
Services are a form of product that consist of activities,
benefits or satisfactions offered for sale and do not
result in the ownership of anything.
Anything that can be offered to a marker for attention,
acquisition, use or consumption that might satisfy a
need or want (Kotler, 2007)
Tangible and intangible product.
physical object, goods, services, people, place and
ideas.
Services are a form of product that consist of activities,
benefits or satisfactions offered for sale and do not
result in the ownership of anything.
Price
The amount of money charged for a product or service,
or the sum of all the values that customers give in
order to gain benefits of having or using a product or
service (Armstong and Kotler, 2007).
Price the only marketing mix that brings revenue to a
firm.
Will influence whether consumers will make
purchase.
Set to be right to determine the profit.
Profit = (Selling Price X Unit Sold) Total Costs
= Total revenues - Total Cost.
The amount of money charged for a product or service,
or the sum of all the values that customers give in
order to gain benefits of having or using a product or
service (Armstong and Kotler, 2007).
Price the only marketing mix that brings revenue to a
firm.
Will influence whether consumers will make
purchase.
Set to be right to determine the profit.
Profit = (Selling Price X Unit Sold) Total Costs
= Total revenues - Total Cost.
Place
Place or distribution decisions will focus on how products are
made available to the targets customers through channels or
marketing logistics.
Intermediaries in an distribution channel
Manufacturer
Wholesaler
Wholesaler
Retailer
Consumer
Place or distribution decisions will focus on how products are
made available to the targets customers through channels or
marketing logistics.
Intermediaries in an distribution channel
Manufacturer
Wholesaler
Wholesaler
Retailer
Consumer
Promotion
Advertising
Public Relation
Personal Selling
Sales Promotion
MARKETING ENVIRONMENT
Microenvironment
? 2
? 1
? 3
Macroenvironment
? 1
? 2
? 3
? 4
Microenvironment
? 6
? 5
? 4
? 3
? 4
? 5
? 6
Marketing Environment
Microenvironment
The forces closest to the
company that play an
important role on the
companys ability to fulfill the
customers need.
Company itself
Suppliers
Marketing intermediaries
Customers
Competitors
Publics.
Macroenvironment
Bigger societal forces that
affect the microenvironment
of a company.
Demographic
Economic
Natural
Technological
Political
Cultural.
Microenvironment
The forces closest to the
company that play an
important role on the
companys ability to fulfill the
customers need.
Company itself
Suppliers
Marketing intermediaries
Customers
Competitors
Publics.
Macroenvironment
Bigger societal forces that
affect the microenvironment
of a company.
Demographic
Economic
Natural
Technological
Political
Cultural.
The Companys Macroenvironment
1. Demographic:
The study of human populations in
terms of size, density, location, age,
gender, race, occupation, and other
statistics.
Marketers track changing age and family
structures, geographic population shifts,
educational characteristics, and
population diversity.
1. Demographic:
The study of human populations in
terms of size, density, location, age,
gender, race, occupation, and other
statistics.
Marketers track changing age and family
structures, geographic population shifts,
educational characteristics, and
population diversity.
The Companys Macroenvironment
Demographic Environment
Changing Age Structure of the Population
Baby boomers include people born between 1946 and
1964
Most affluent Americans
3-24
The Companys Macroenvironment
Demographic Environment
Changing Age Structure of the Population
Generation X includes people born between 1965 and 1976
High divorce rates
Concerned about the environment
Respond to socially responsible companies
Less materialistic
Quality of life
Consumer organizations, environment groups, and minority groups
Demographic Environment
Changing Age Structure of the Population
Generation X includes people born between 1965 and 1976
High divorce rates
Concerned about the environment
Respond to socially responsible companies
Less materialistic
Quality of life
Consumer organizations, environment groups, and minority groups
3-25
The Companys Macroenvironment
Demographic Environment
Changing Age Structure of the Population
Generation Y includes people born between 1977
and 2000
Internet generation
3-26
2. Economic Environment
Changes in Income
1980s consumption frenzy
1990s squeezed consumer
2000s value marketing
Income Distribution
Upper class
Middle class
Working class
Underclass
Consists of factors that affect consumer
purchasing power and spending patterns.
Changes in Income
1980s consumption frenzy
1990s squeezed consumer
2000s value marketing
Income Distribution
Upper class
Middle class
Working class
Underclass
3. Natural Environment
Factors Impacting the Natural Environment:
Shortages of raw materials
Increased pollution
Increased government intervention
Environmentally sustainable strategies
Factors Impacting the Natural Environment:
Shortages of raw materials
Increased pollution
Increased government intervention
Environmentally sustainable strategies
The Companys Macroenvironment
Natural Environment
Natural environment involves the natural resources that are needed as
inputs by marketers or that are affected by marketing activities
Trends
Shortages of raw materials
Increased pollution
Increased government intervention
Environmentally sustainable strategies
Green marketing
Natural Environment
Natural environment involves the natural resources that are needed as
inputs by marketers or that are affected by marketing activities
Trends
Shortages of raw materials
Increased pollution
Increased government intervention
Environmentally sustainable strategies
Green marketing
3-35
4. Political Environment
Includes Laws, Government Agencies, and
Pressure Groups that Influence or Limit
Various Organizations and Individuals In a
Given Society.
Areas of concern:
Increasing legislation
Changing government agency enforcement
Increased emphasis on ethics and socially
responsible behavior
Includes Laws, Government Agencies, and
Pressure Groups that Influence or Limit
Various Organizations and Individuals In a
Given Society.
Areas of concern:
Increasing legislation
Changing government agency enforcement
Increased emphasis on ethics and socially
responsible behavior
The Companys Macroenvironment
Political Environment
Legislation regulating business
Public policy to guide commercesets
of laws and regulations that limit
business for the good of society at large
Increasing legislation
Protect companies
Protect consumers
Protect the interests of society
Political Environment
Legislation regulating business
Public policy to guide commercesets
of laws and regulations that limit
business for the good of society at large
Increasing legislation
Protect companies
Protect consumers
Protect the interests of society
3-39
Changes rapidly.
Creates new markets and opportunities.
Challenge is to make practical,
affordable products.
Safety regulations result in higher
research costs & longer time between
conceptualization and introduction of
product.
5. Technological Environment
Changes rapidly.
Creates new markets and opportunities.
Challenge is to make practical,
affordable products.
Safety regulations result in higher
research costs & longer time between
conceptualization and introduction of
product.
6. Cultural Environment
The institutions and other forces that affect a
societys basic values, perceptions,
preference, and behaviors.
Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and
government.
Secondary beliefs and values are more open
to change.
The institutions and other forces that affect a
societys basic values, perceptions,
preference, and behaviors.
Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and
government.
Secondary beliefs and values are more open
to change.
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