Introduction to marketing

Agenda
Definition Marketing vs. selling Terminology Brand Segmentation Positioning Targeting

Market and Industry

Communication

Product / services INDUSTRY (collection of sellers) Money MARKET ( collection of buyers)

Information

Definitions..
Getting the right goods, to the right people , in the right place , at the right time, at a right price, with a right level of communication profitability Chartered Institute of Marketing "Marketing is the management process responsible for identifying, satisfying and anticipating customer requirements profitably." - The Chartered Institute of Marketing (CIM), UK

 New Definition of Marketing (est. in 2007) Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Previous Definition (est. in 2004) Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. The new definition takes into account input from a broad cross-section of the Association membership. Marketing is regarded as an 'activity' instead of a 'function' and positions marketing as a broader activity in a company/organization, and not just a department. The new definition also positions marketing as providing long term value rather than narrowly as an exchange of money (short-term) for the benefit of the shareholder/organization.

The aim of marketing is to make selling Unnecessary Peter Drucker. "Marketing is the set of human activities directed at facilitating and consummating exchanges." - Philip Kotler ("Marketing Management")

Marketing vs. Selling

Marketing Costumer focused Long-term Relationships Selling Product focused Short-term Transactions

MARKETING AND SALES

Terminology
Product: a tangible item Car, shirt, bag of rice Service: something intangible Financial advice, live flight, live match Brand: The name given to product or services Pepsi , Sony, Nokia

Brand

The Market Mix

Product Place Price Promotion

STP

Segmentation

 Geographic Region of the country Urban or rural Demographic Age, sex, family size Income, occupation, education Religion, race, nationality Psychographic Social class Lifestyle type Personality type Behavioural Product usage - e.g. light, medium ,heavy users Brand loyalty: none, medium, high Type of user (e.g. with meals, special occasions)

Targeting

Positioning
 "Positioning - The Battle for Your Mind  Positioning is defined as the way by which the marketers creates impression in the customers mind.  Positioning is something (perception) that happens in the minds of the target market.

It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category

 Positioning is important because it is the means by which goods and services can be differentiated from one another and so give consumers a reason to buy.  The first concerns the physical attributes, the functionality and capability that a brand offers. For example, a car s engine specification, its design, and carbon emissions.  The second positioning element concerns the way in which a brand is communicated and how consumers perceive the brand relative to other competing brands in the marketplace.

Positioning is the act of designing the company s offering and image so that they occupy a meaningful and distinct competitive position in the target customers minds.

-Kotler

 Positioning is about a product s attributes and design, how the product is communicated, and the way these elements are fused together in the minds of customers Positioning about how customers judge a product s value relative to competitors and its ability to deliver against the promises made.

Positioning is not what you do to a product; it is what you do to the mind of a prospect.
Ries and Trout (1972)

 As a marketer, you are undoubtedly familiar with the concept of market segmentation, where you divide your market into identifiable customer groups to improve your targeting. A key concept for proper market segmentation is that customers should be grouped by values (needs and wants) and the behaviorsthese values drive. Additionally, well-executed segmentation assures that the priorities of these values for each customer in the group are similar. While this concept was originally developed in the consumer marketing arena (and has been far more thoroughly researched there), it is a key tool for building growth strategies in industrial markets as well.

 Segmentation helps you develop more effective product development and marketing programs by differentiating your offerings and message to meet key segment needs. It also helps you define where your capabilities best align with customer needs to better focus your limited resources and achieve greater returns on your efforts. Showing that you understand a segments needs also helps to engender customer loyalty; think of Apple and the love they have long received from the graphic design community, for example. Unfortunately, too many marketers confuse segmentation with classification. If you are defining your segments by the characteristics of the customer, instead of their values, you are guilty of this mistake

Problem
Our client faced a crowded and static market. Their drug, a triptan, was widely perceived as a me-too migraine product, and they didn t have the sales force or budget to compete toe-to-toe with the bigger pharma companies in their therapy area. Sales were in decline.

Solution
First, we conducted research with patients and primary care physicians to define their key needs, drivers and behaviours. Then we used these insights to develop new product positioning and new target patient and physician profiles for the groups defined as most likely to use the product.

Solution
Triptans are a family of tryptamine-based drugs used as abortive medication in the treatment of migraines and cluster headaches. They were first introduced in the 1990s. While effective at treating individual headaches, they do not provide preventative treatment and are not considered a cure. Triptans include sumatriptan (Imitrex, Imigran, Cinie, Illument, Migriptan), rizatriptan (Maxalt), naratriptan (Amerge, Naramig), zolmitriptan (Zomig), eletriptan (Relpax), alm otriptan (Axert, Almogran), frovatriptan (Frova, Migard, Frovamig), and avitriptan (BMS-180,048).

 Their action is attributed to their binding to serotonin 5-HT1B and 5-HT1D receptors in cranial blood vessels (causing their constriction) and subsequent inhibition of pro-inflammatoryneuropeptide release