إعداد الطالب: عبد الرحمن أبو عوض
Ch. (1) Defining marketing for the 21st century
- Manage profitable customer relationship.
- Is an organization function, and a set of process for creating, communicating, and delivering value to customer and for managing customer relationships in way that benefit the organization and its stakeholders.
- Meeting human and social need profitably.
- Societal marketing concept التسويق المجتمعي (نفس تعريف التسويق مع إضافة)
In a way that incentives and improve costumers and the Social welfare.
- marketing management:
The art and science of choosing target markets and getting, keeping, growing customers through creating, delivering, and communicating superior customer value more than your competitor.
- Markets traditionally: was a physical place where buyer and sellers gathered to buy and sell.
- Markets: my current and potential buyers.
- Marketer: someone who seeks a response, attention, a purchase, a vote, a donation from another party called the prospect.
What to be marketed? (Exchanged in marketing)
- Goods (laptop).
- Services (internet).
- Event (Mather day).
- Experiences (trainers).
- Persons (Ronaldo).
- Places (pyramids).
- Ideas (scientists).
- Organizations (image).
- Information (Google).
- Properties (building).
Key customer markets (type):
- Consumer Markets: those who buy product for the final consume potion.
- Business Markets: that one who buy for further process.
- Reselling markets: that one who buy product and reselling it.
- Nonprofit and Governmental Markets: selling product to the government with large quantity.
- Global Markets: selling my product abroad (exported) outside.
- Core concepts in marketing:
– Needs, wants, and demands. (Type of needs: stated, real, unstated, delight, secret).
– Target markets, positioning segmentation.
– Offerings and brands.
– Value and satisfaction.
– Marketing channels. (Communication, distribution, service).
– Supply chain.
– Marketing environment.
– Marketing planning.
- Needs: are the basic human requirements such as for air, food, water, and clothing.
- Wants: some option relating to satisfying the type of need.
- Demand: An economic principle that describes a consumer's desire and ability to pay a price for a specific good or service
Demand States: (eight demand states) حالات الطلب
- Negative Demand: Product is disliked in general. The product might be beneficial but the customer does not want it. (For Example: for dental care).
Nonexistent demand: Target consumers may be unaware or uninterested about the product.
For examples: Farmers may be not interested in new farming method.
Latent demand: Consumers may share a strong need that cannot be satisfied by any existing product. الطلب الكامن
For examples: Harmless cigarette، more fuel efficient car.
- Declining demand: Consumers begin to buy the product less frequently or not at all.
- Irregular demand: Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.
- Full demand: Consumers are adequately buying all products put into the marketplace.
- Overfull demand: More consumers would like to buy the product than can be satisfied
- Unwholesome demand: Consumers may be attracted to products that have undesirable social consequences.
Types of needs:
- Stated needs: what the customer asks for (an inexpensive car).
- Real needs: what the stated need really means (The customer wants a car whose operating cost, not initial price, is low.)
- Unstated needs: (The customer expects good service from the dealer.)
- Delight needs: (The customer would like the dealer to include an onboard GPS system.)
- Secret needs: (The customer wants friends to see him or her as a savvy consumer.)
- Target markets, positioning and segmentation: (Ch. 9)
Offerings and Brands:
Offering: a set of benefits that satisfy a customer needs (combination af product, services, information and experience )
- Brand: an offering from known source.
- Offering: a set of benefits that satisfy a customer needs (combination af product, services, information and experience )
Value and satisfaction:
- Value: It is the ratio between what the customer gets and what he gives. The customer gets benefits and gives costs.
- Satisfaction: It is the customer has perceived performance from a product in relation to the expectations.
- Marketing Channels: (Ch. …)
- Supply chain: is a channel stretching from raw materials to components to finished products carried to final buyers.
- Competition: includes all the actual and potential rival offerings and substitutes a buyer might consider
- Marketing Environment: (Ch. 3)
- The New Marketing Realities: Three transformative forces: (Technology, Globalization, Social responsibility)
What new capabilities have these forces given consumers and companies?
NEW CONSUMER CAPABILITIES:
- Can use the Internet as a powerful information and purchasing aid.
- Can search, communicate, and purchase on the move.
- Can tap into social media to share opinions and express loyalty.
- Can actively interact with companies.
- Can reject marketing they find inappropriate
- NEW CONSUMER CAPABILITIES:
NEW COMPANY CAPABILITIES:
- Can use the Internet as a powerful information and sales channel, including for individually differentiated goods.
- Can collect fuller and richer information about markets, customers, prospects, and competitors.
- Can reach customers quickly and efficiently via social media and mobile marketing.
- Can improve purchasing,
- recruiting, training, and internal
- External communications.
Can improve cost efficiency.
- Company Orientation toward the Marketplace (Marketing management orientates or concepts or philosophies):
- Production concept: مفهوم الانتاجية
- It holds that consumers prefer products that are widely available and inexpensive.
Focus on (production process, distribution channels).
- We use this philosophy when the (demand higher than supply, when there is no completion).
- Product concept مفهوم الإنتاج :
- It holds that consumers favor products offering the most quality, performance, or innovative features.
- Competition is exist.
- Selling concept مفهوم البيع
- It holds that consumers and businesses, if left alone, will not buy enough of the organization’s products.
- When firms with over capacity aim to sell what they make, rather than make what the market wants.
- Marketing concept:
- The marketing concept holds that the key to achieving organizational goals is being more effective than competitors in creating, delivering, and communicating superior customer value to your target markets
The job is to find not the right customers for your products, but the right products for your customers.
The holistic marketing concept based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.
- Four components characterizing holistic marketing: (relationship marketing, integrated marketing, internal marketing, and performance marketing). (تشرح في شباتر لاحقة)
- The holistic marketing concept based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.
- The Marketing Mix: A set of marketing tools that the firm uses to pursue its marketing objectives in the target market. (product, price, promotion, place) (تشرح في شباتر لاحقة
- Updating the Four Ps: (people, processes, programs, and performance).
Marketing Management Tasks:
- Develop market strategies and plans
- Capture marketing insights
- Connect with customers
- Build strong brands
- Create value
- Deliver value
- Communicate value
- Conduct marketing responsibility for long-term success
- CRM (customer relationship management): Process of building and maintaining profitable customer relationship by delivery superior customer value and satisfaction.
Why we need CRM?
- Because it cost 5 to 10 times more to attract a new customer than it does to keep a current customer satisfied.
- Benefits the organization form managing long relation with customer (lifetime value).
(أسئلة واضافات من التلخيص)
- Differences between selling and marketing:
- Selling: focuses on exiting product and uses heavy promotion and selling efforts.
- Marketing: focuses on customer needs, values, and satisfaction
Who are profitable customer? (traits/characteristics)
- They have needs.
- Ability to pay.
- Willingness/desire to buy.
- Organization must identify customer needs not organizations need, so customer needs is starting point of marketing.
- Main objectives of marketing:
- Getting customer. Attracting
- Keeping customer.
- Growing customer and that lead to customer satisfaction. (by add value)
- Getting may be easy, but keeping them is difficult.
- Classifying needs into ( 3 ) categories:
- Basic Need (Physical needs): basic human needs in which people cannot survive without satisfying it. (Food, cloth, warmth, safety).
- Inelastic demand
- Social Needs: belonging altercation.
- Individual need for knowledge and self-expression.
- What make up the market?من يشكل السوق
- Human needs (safety basic human needs).
- Consumer buying brand set of benefit … value.
- We drive wants from needs.
- Demarcating: is reduce demand temporarily or permanently, why?
- Preparation of new product, new copy. إعداد منتج جديد، نسخة جديدة.
- Higher demand and no enough supply. ارتفاع الطلب وليس ما يكفي من الإمدادات.
- Forcing from associations and authorities. إجبار من الجمعيات والسلطات
- Why is marketing important? What is the importance of marketing? Why we need it?
We use marketing to achieve our goals (profit maximization). Marketing is important in building customer relationships as well as creating product awareness. Without an effective marketing strategy, you stand to not gain customers or lose customers, which equates to revenue loss and no growth. For a company to grow, marketing is the vehicle
And in the same time we are using marketing in our daily life, for promoting ourselves, if you don’t how to market yourself you won't able to get a job.
The political people, the politicians using marketing in their daily life to convince people to elect them.
So marketing is the most important function in the organization, marketing is more important than financing , production, more than any else , if you have a high quality products, or a high quality service and you don’t know how to market, what you are going to achieve? Nothing, big zero. In contradiction, in contrast, if you have a product with seventy percent of quality and you know how to market it, you will achieve your objective.
- marketing is managing profitable customer relationships would you explain
Attracting new customers through:
1. Identify Your Ideal Client.
2. Discover Where Your Customer Lives.
3. Know Your Business Inside and Out.
4. Position Yourself as the Answer.
5. Try Direct Response Marketing.
6. Build Partnerships.
7. Follow Up.
– Retaining and growing current customers
1. Be Relentless About Superior Support.
2. Meet Customer Expectations with a Skilled Workforce.
3. Scalability: Maintain a Customer Focus Over Time.
4. Break Out! Take Customer Service to Your Whole Team.
5. Keep Current (With What Matters to Your Customers).
6. Bonus: Consider Complaints a Gift.
- What are some fundamental marketing concepts?
There are many fundamentals of marketing. These include knowing the needs, demands, and wants of the customer, segmenting the customer out to reach the right group, and showing value of your product
- How has marketing management changed?
Marketing is always in a state of evolution as the needs and wants of consumers change. In recent years, there has been a movement from focusing on how to get consumers to buy our product to how can we create a product that will satisfy the needs of our targeted consumers.
The importance of creating products that satisfy needs of a target market is best visualized with the example of the Segway scooter. This product was mass marketing and failed because it failed to meet a market's need. In this case, Segway's target market was everybody and it was marketed as a replacement for cars. There was no evident consumer need or desire to find an alternative to automobiles and therefore, the product failed.
Marketing management today is ensuring that your product conforms to the consumer, instead of trying to conform the consumer to your product
- What are the tasks necessary for successful marketing management?
- Define marketing management?
- What are the Principles of marketing management?
Some basic principles are – Attract new Customers – Providing Superior Value – Keep and Grow customer by Delivering Satisfaction.
- Significance of marketing management?
Marketing Promotes Product Awareness to the Public · Marketing Helps Boost Product Sales
- How has the internet changed the marketing function?
Marketing has made to commerce is destroying barriers to market entry. Never before in the history
- What is the Importance of marketing management?
Marketing is a very important aspect in business since it contributes greatly to the success
CH (3) Collection information and forecasting demand
Source of collecting information:
- Customers: Collecting customer data helps you know each customer more individually and treat them that way.
- Competitors: Collecting information about your competitors makes business success. However, you must do so in an ethical and reasonable way.
- External Factors
- Marketing information system (MKIS): a management information system (MIS) designed to support marketing decision-making.
- A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute information that is needed, timely and accurate.
It relies on internal records, marketing intelligence, marketing research and Dss.
- Internal Records: The first component of MIS, Marketing managers get lots of information from the internal-records of the company. These records provide current information about sales, costs, inventories, cash flows and account receivable and payable. Many companies maintain their computerized internal records. It help marketing managers to gain faster access to reliable information.
- Order-to-payment cycle
- Databases – data mining.
- Sales information systems.
- Marketing Intelligence: The second component of MIS, It asset of procedures and sources that manager use to collects everyday information about developments in the marketing-environment.
- This information can come from reading books and trade journals; talking to customers, distributors, suppliers; monitoring social media; and talking to other managers in the company.
Improving marketing intelligence: Through:
- Sales force قوة البائعين
- Establish industry network كل ما له علاقة بالصناعة مع بعضها البعض
- External experts يمكن الاستعانة بالخبراء الخارجيين
- Customer advisory panel (فريق استشاري عن العملاء)
Analyzing the marketing environment
- What we analyze? Internal and external environment.
- Why we analyze? To make a plan and to avoid threats and to g opportunities.
- Marketing environment: All the factors and forces outside marketing that affect marketing management ability to develop and maintain successful relationships with its target customer.
Microenvironment: forces close (direct relationship effect) to the company that affect its ability to serve its customers.
- (company, customer, suppliers, marketing intermediaries, publics and competitor)
- (Have direct relation with org. (direct effect)
Macro environment: larger societal forces that effect the whole microenvironment.
- (Demographic, technological, economic, natural, political, cultural)
- (Have indirect relation with org, but direct with micro so it affect org).
- The Business world is like an orange: you have to get to peel away a few layers to get to the good stuff.
(Company, customer, suppliers, marketing intermediaries, publics and competitor)
Company: those who serve a target market with similar products and services against whom a company must gain strategic advantage.
- Better coordination between company departments have positive effect in marketing Objectives.
- Functional areas such as top management finance, and manufacturing.
- Customer: Five types of markets that purchase a company goods and services (consumer market, business markets, reseller market, government markets, international markets).
Suppliers: Provide the resources (row material) to produce goods and services.
- Good relation with supplier have positive affect on org.
Marketing Intermediaries: Help the company to promote, sell and distribute its goods to find buyers.
Include (resellers, physical distribution, marketing service agencies, financial intermediaries)
- Resellers: distribution channel firms that help company to find customers or make sales to them.
- Physical distribution channel: firms help the company to move goods from point of origin to their destinations.
- Marketing service agencies: media firms, advertising agencies, marketing research firms, consulate firms. That help the company to promote its product to the right markets.
- Financial intermediaries: include (banks, credit companies, insurance company and other business help finance transaction, or insurance against rise.
- Include (resellers, physical distribution, marketing service agencies, financial intermediaries)
Publics: Any group that perceives itself having an interest in a company ability to achieve its objectives.
- Financial: (Bank, credit companies, insurance companies).
- Media: (TV, newspaper, magazines, journalists).
- Government: (Regulations) develop public policy to guide commerce with sets of laws and regulations.
- Citizen – action: (consumer groups) – minority – environmental group.
- Local: (neighborhood residents) – and community organizations.
- General public: the community that you live in you need to care of community (social responsibility).
- Internal: (employees) worker, managers, volunteers, board of directors.
- Competitors: Those who serve target market with similar products and services, against whom company must gain strategic advantage.
- Macro environment:
(Demographic, economic, technological, natural, political, cultural)
Demographic: studies populations in terms of age, genders, race, occupation, location, and other statistics.
- Company can use demographic statistics to product demand and what to produce, and what service's needs.
- Each category of this classification (need specific demand). (Goods and services).
- Generational marketing: is important in segmenting people by lifestyle of life state instead of age.
- Economic: factors that affect consumer purchasing power and spending patterns.
Factors: (Income, employment, unemployment, saving, inflation, recession, debt, credit and availability)
- Income levels: (lower, middle, upper, upper upper, lower upper)
- Inflation : (prices rise with no wage increase, and purchasing power decreased react of consumers)
Recession: the main goal is to survive and protect market share
Recession Marketing Strategies:
- Improve existing products. تحسين المنتجات الحالية
- Maintain customer services. المحافظة على خدمات العملاء
- Introduce new product. إدخال منتج جديد
- Recession Marketing Strategies:
Technological: Forces that create new technologies, creating new product and market opportunities.
- Is sues in technological environment:
- Rapid pace of change سرعة التغيير
- Unlimited opportunities. فرص غير محدودة
- Increased regulation. زيادة التنظيم
- Practical, affordable products. العملية والمنتجات بأسعار معقولة
Natural: natural resources needed as inputs by marketers or that are affected by marketing activities.
- Trend in natural environment:
- Shortages of raw naturals. هل تتوفر الموارد الطبيعية للمنتجات
- Increased pollution.هل يؤثر على البيئة والتلوث
- Governmental intervention.هل يوجد قوانين حكومية تؤثر على المنتج
- Political: consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
Trend in Political environment:
- Increasing legislation designed to protect groups. زيادة تشريعات تهدف إلى حماية الفئات.
- Changing government agency enforcement. تغيير إنفاذ كالة حكومية.
- Increasing emphasis on ethics and socially responsible action.
Why to legislate groups and business
- To protect companies from each other
- To protect consumers from unfair business practices such as telling lies in the advertisement
Cultural: consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors.
- Sociocultural: The influence that both society and culture have on the views of individuals.
- A subculture: is a group that shares a distinct culture different from the larger culture that
Culture: most determent of human basic needs. تنقسم إلى قسمين
- Core beliefs and values: culture is very hard to change (you as a marketer you do not have to change), like religion and some behaviors).
Secondary values: values that open to change, because it is point of views, include people’s views of themselves, other, org’s, society, nature, and the universe.
- Society: some people defined it, others and to change it, others want to leave it.
- Nature: some ruled by it, some harmony with it, some seek to master it.
- Universe: focus on spirituality.
- Responding to the marketing environment (Views on Responding)
- Uncontrollable: react and adapt to forces in the environment.
- Proactive: aggressive actions to affect forces in the environment.
- Reactive: watching and reacting to forces in the environment.
أسئلة اختبارات الفصل الثالث
Analyzing the marketing environment
- Describe the environmental forces that affect the company’s ability to serve its customers.
- Explain how changes in the demographic and economic environments affect marketing decisions.
- Identify the major trends in the firm’s natural and technological environments.
- Explain the key changes in the political and cultural environments.
- Discuss how companies can react to the marketing environment.
- Q. :
1. What are the components of a modern marketing information system?
2. What are useful internal records for such a system?
3. What makes up a marketing intelligence system?
Building customer satisfaction, value, and retention and loyalty
- Creating Long-Term Loyalty Relationships :
- Building Customer Value, Satisfaction, and Loyalty
- Maximizing Customer Lifetime Value
- Cultivating Customer Relationships
- Building Customer Value, Satisfaction, and Loyalty
- Traditional Organization vs. Customer-Oriented Organization
Managers who believe the customer is the company’s only true “profit center” consider the traditional organization a pyramid with the president at the top, management in the middle, and frontline people and customers at the bottom.
Successful marketing companies invert the pyramid. At the top are customers; next in importance are frontline people who meet, serve, and satisfy customers; under them are the middle managers, whose job is to support the frontline people so they can serve customers well; and at the base is top management, whose job is to hire and support good middle managers. We have added customers along the sides of pyramid indicate that managers at every level must be personally involved in knowing, meeting, and serving customers.
- Tools to improving the marketing impact (mean how to retain your customer):
By adding values.
- Adding values: (إضافة من التلخيص)
- Financial values (discounted, installment) let other win (B 2 B).
- Social (social responsibility- green marketing) product
- Individualization (special and close relation with customer) presents
- Limitation for value maximize: (إضافة من التلخيص)
- Education (knowledge)
- Culture. (Religion, traditions, behaviors).
- Mobility. (energy costs) تكاليف الحركة والبحث
- Search costs.
- What is needed by the customer? (إضافة من التلخيص)
- Retention. (Attracting and retaining customers).
- Why retain customers? لماذا الاحتفاظ بالعملاء؟ (إضافة من التلخيص)
- Acquiring new customer costs 5 times retaining old customers
- The average company loss 1080 at its customer annually.
- The current customer will come back again and buy your product, but you don’t know if the new one will come back or not.
- Customer rate increase with time.
- Customer-perceived value (CPV): is the difference between the prospective customer’s evaluation of all the benefits and costs of an offering and the perceived alternatives.
القيمة المدركة عند الزبون: هي الفرق بين تقييم الزبون المتوقع لكل الفوائد وتكلفة المعروض والبدائل الملموسة.
- Customer delivered value: equal total customer value minus total customer cost.
- Three answer at the equation (customer delivered value) :
- Value = cost………….satisfied …….. zero.
- Value > cost ……….. Delighted …. Positive.
- Value < cost ……. Disappointed or dissatisfaction …….. negative
- Total customer benefit (value): is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the product, service, people, and image.
- Product value: looking at the product itself (size, color, shape, content, packaging, equality, performance design, maintenance…) looking at the performance at product.
- Service value: customers look for core benefits, and core benefits may be product, or services (internet), or combination between product and services.( المطعم منتج + خدمة)
- Personal value: Customers need a comprehensive employees that have enough knowledge about product and services that they provide (line tellers in bank)
. قيمة الشخصية: يحتاج العملاء إلى الموظف الشامل الذي لديه ما يكفي من المعرفة حول المنتجات والخدمات التي توفرها
- Image value: customer look for image and prestige (like going to expensive and famous hotel.
- تختلف توجهات الزبائن في القيمة التي يحتاج أن يعظمها البعض (يبحث عن product أو service أو الجمع بين الإثنين وهكذا…)
- تحتوي على خمس نجوم عن القيمة للعملاء Five stars hotel contain all (customer value)
- Total customer cost: is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering, including monetary, time, energy, and psychological costs.
- Money cost: the cost of buying product or services.
- Time cost: the cost of buying product or services at specific time (time that the customer want), example (the first one to buy new not 7).
- Energy cost: the cost of search and looking for product and service. (Time that customer take to pay the product). تكلفة الطاقة: تكلفة البحث وتبحث عن المنتجات والخدمات.
- Psychic cost: the cost that the customer afford how not getting the image that he/she aspiring it التكلفة النفسية: تكلفة أن العميل يتحمل كيف لا تحصل على الصورة التي هو / هي تطمح إليها .
Customer Value Analysis :
- Identify the major attributes and benefits that customers value.
- Assess the quantitative importance of the different attributes and benefits.
- Assess the companies and competitors performances on the different customer values against their rated importance.
- Examine how customers in a specific segment rate company's performance against a specific major competitor on an individual attribute or benefits basis
- Monitor customer values over time.
Satisfaction: is a person’s feelings of pleasure or disappointment that result from comparing a product or service’s perceived performance (or outcome) to expectations.
- If the performance or experience falls short of expectations, the customer is dissatisfied.
- If it matches expectations, the customer is satisfied.
- If it exceeds expectations, the customer is highly satisfied or delighted
- How do buyers form their expectations?
Expectations result from past buying experience, friends’ and associates’ advice, public information and discourse, and marketers’ and competitors’ information and promises.
Benefits at highly satisfied customer: الفوائد على رضى العملاء للغاية؟(إضافة من التلخيص)
- Stays loyal longer. تمتد موالاتهم لفترة أطول.
- Buys more (maximize profit market share…). يشترون أكثر
- Talks favorably (in good way) about the companyالحديث بطريقة جيدة عن الشركة
- After products and services ideas to the company. بعد المنتجات والخدمات أفكار للشركة.
- Become your lawyer (for organization) . يصبح المحامي الخاص بك.
- May be partner with org. (buy stocks at org.) . قد يكون شريكا مع المؤسسة
- Costs less to serve than new customer.
- Customer Loyalty: A deep commitment to re-buy a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.
- The value proposition consists of the whole cluster of benefits the company promises to deliver; it is more than the core positioning of the offering. For example, Volvo’s core positioning has been “safety,” but the buyer is promised more than just a safe car; other benefits include good performance, design, and safety for the environment. The value proposition is thus a promise about the experience customers can expect from the company’s market offering and their relationship with the supplier. Whether the promise is kept depends on the company’s ability to manage its value delivery system. The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering. At the heart of a good value delivery system is a set of core business processes that help deliver distinctive consumer value.
Tools for tracking and measuring customer satisfaction:
- Complaint and suggestion system. (Electronic systems). نظام الشكاوى والاقتراحات
- Customer satisfaction surveys استطلاعات رضاء العملاء
- Customer Loss Rate (Lost customers analysis): the number at customers that the company lose in specific period. معدل فقد الزبائن: عدد العملاء الذي تخسره الشركة في فترة محددة من الأوقات
- Ghost shopping: send unknown employee by the administration of firm to employee, to act as custom, and to see how they doing their job evaluate their behavior and performance. التسوق الشبح: إرسال موظف غير معروف من قبل إدارة الشركة إلى الموظف، ليكون بمثابة زبون، ونرى كيف يقومون بعملهم تقييم سلوكهم وأدائهم
- Customer Lifetime Value (CLV): describes the net present value of the future profits expected over the customer’s lifetime purchases. The company must subtract from its expected revenues the expected costs of attracting, selling, and servicing the account of that customer.
- A profitable customer: is a person, household, or company that over time yields a revenue stream exceeding by an acceptable amount the company’s cost stream for attracting, selling, and serving that customer.
- Customer profitability analysis (CPA): is best conducted with the tools of an accounting technique called activity-based costing (ABC). ABC accounting tries to identify the real costs associated with serving each customer—the costs of products and services based on the resources they consume. The company estimates all revenue coming from the customer, less all costs. With ABC, the costs should include the cost not only of making and distributing the products and services, but also of taking phone calls from the customer, traveling to visit the customer, paying for entertainment and gifts—all the company’s resources that go into serving that customer. ABC also allocates indirect costs like clerical costs, office expenses, supplies, and so on, to the activities that use them, rather than in some proportion to direct costs. Both variable and overhead costs are tagged back to each customer.
Cultivating Customer Relationships: Companies are using information about customers to enact precision marketing designed to build strong long-term relationships. Information is easy to differentiate, customize, personalize, and dispatch over networks at incredible speed.
Customer Relationship Management (CRM): is the process of carefully managing detailed information about individual customers and all customer “touch points” to maximize loyalty.
- A customer touch point: is any occasion on which a customer encounters the brand and product— from actual experience to personal or mass communications to casual observation.
- For a hotel, the touch points include reservations, check-in and checkout, frequent-stay programs, room service, business services, exercise facilities, laundry service, restaurants, and bars.
- Customer Relationship Management (CRM): is the process of carefully managing detailed information about individual customers and all customer “touch points” to maximize loyalty.
- Customer Value Management (CVM): describes the company’s optimization of the value of its customer base.
Personalizing Marketing: is about making sure the brand and its marketing are as personally relevant as possible to as many customers as possible—a challenge, given that no two customers are identical.
- Companies are using e-mail, Web sites, call centers, databases, and database software to foster continuous contact between company and customer.
- Employees can create strong bonds with customers by individualizing and personalizing relationships.
Ch. (6) Analyzing consumer Markets
- The most important thing (for marketer) is:
- Forecast where customers are moving. توقعات حيث تتحرك العملاء.
- In addition, be in front of them. وتكون أمامهم.
- Marketer cannot forecast until understand who are my consumers.
- Marketers must:
- Have a thorough understanding of how consumers think, feel, and act.
- Offer clear value to every target consumer.
- Consumer we talk about human being, and that never been simple because everyone has his own (traits, personality, culture, social class, gender, location, age….)
- نحن نتحدث عن إنسان، وهذا ليس سهل لأن كل واحد لديه (الصفات والشخصية، والثقافة، والطبقة الاجتماعية، ونوع الجنس، والعمر) الخاص به
- In this chapter, we try to analyze traits of consumer, so org. will be able to affect the way in which consumer make decisions.
سنحاول تحليل الصفات المستهلك، لذلك المنظمة سوف تكون قادرة على أن تؤثر على الطريقة التي يتخذ المستهلك فيها القرارات
- Analyzing the traits of consumer does not guarantee that we will understand the consumer's behavior . تحليل سمات المستهلك لا نضمن أننا سوف فهم سلوك المستهلكين
- Black Box: consists of many traits (philosophy, social, personal, cultural).
الصندوق الأسود: يتكون من العديد من الصفات (فلسفة والاجتماعية والشخصية والثقافية)
- Learning the whys at the consumer buying behavior is not easy the answer is locked deep within the consumer's mind (black box).
تعلم طرق في السلوك الاستهلاكي ليس من السهل مقفل الجواب في أعماق العقل (الصندوق الأسود) للمستهلك
Adopting a holistic marketing orientation: Requires fully understanding customers gaining a 360-degree view of both their daily lives and the changes that occur during their lifetimes.
- Right products are always marketed to the right customers in the right way.
Consumer behavior: Study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
- Marketers must fully understand both the theory and the reality of consumer behavior.
- Factors influencing consumer behavior (Buyer) :
- Cultural Factors :
- Exert the broadest and deepest influence on consumer behavior.
- Culture, subculture, and social class are particularly important influencers on consumer buying behavior
Culture: Way of life of a group of people, the behaviors, beliefs, values, and symbols that they accept, generally without thinking about them, and that are passed along by communication and imitation from one generation to the next.
- Culture is the basic cause of a person’s wants and behaviors, acquired through socialization processes with family and other key institutions.
- Every group or society has a culture, and culture influences differ from one country to another.
- Marketer spot cultural shift to imagine new products may be wanted.
- Marketers must closely attend to cultural values in every country to understand how to best market their existing products and find opportunities for new products
Subculture: are groups at people within a culture with shared value systems based on common life experiences and situations.
- Each culture consists of smaller Subcultures.
- Provide more specific identification and socialization for their members.
- Racial groups
- Geographic regions
- When subcultures grow large and affluent enough, companies often design specialized marketing programs to serve them
Example of important subculture groups: (Hispanic, African American, Asian American, mature consumers):
- Hispanic consumers: 1/3 of us population, Buy more branded and higher quality.
- African American consumers: Has large purchasing power, Brand name, quality, and loyalty.
- Asian American consumers: Fates growing in us demographic segment, Language and culture (barrier) 90% go online (example bank).
- Mature consumers: Very attractive market.
Social classes: relatively homogeneous and enduring divisions in a society. Or hierarchically ordered with members who share similar values, interests, and behavior.
- Social class: not determined by a single factor such as income but is measured as combination of occupation, income, education, wealth and other variables
- Example: actors, famous football players may live in specific area class tend to exhibit similar buying behavior.
Seven social classes (levels of income 7 (:
- Upper uppers (less than1%).
- Lower uppers (about 2%).
- Upper middles (12%).
- Middle class (32%).
- Working class (38%).
- Upper lowers (9%).
- Lower lowers (7%).
Social factors: The facts and experiences that influence individuals' personality, attitudes and lifestyle.
- Consumer’s behavior is influenced by social factors.
- These include (Family, Reference groups, roles and status).
Reference groups: People whose attitudes, behavior, beliefs, opinions, preferences, and values are used by an individual as the basis for his judgment
- Groups that have a direct (face-to-face) or indirect influence on their attitudes or behavior.
Person does not have to be (or even aspire to be) a member of a reference group to be negatively or positively influenced by its characteristics.
Type of Reference groups:
Membership groups: Groups having a direct influence, include (primary, secondary groups). مجموعة العضوية: التي لها تأثير مباشر، وتشمل (مجموعات الابتدائية والثانوية)
- Primary groups: Person interacts fairly continuously and informally (family, friends, neighbors, and coworkers)
- Secondary groups: Tend to be more formal and require less continuous interaction (religious, professional, and trade-union groups)
- Membership groups: Groups having a direct influence, include (primary, secondary groups). مجموعة العضوية: التي لها تأثير مباشر، وتشمل (مجموعات الابتدائية والثانوية)
- Type of Reference groups:
- Aspirational groups: group to which an individual wishes to belong. الجماعات المنشودة
- Dissociative groups: group to which an individual reject to join الجماعات التي أرفض الانضمام
Reference influence member in 3 ways:
- They expose an individual to a new behavior and life style. توجه الأفراد لسلوك ونمط حياة جديد
- They influence attitudes and self-concept. تؤثر على المواقف والمفاهيم الذاتية
- Affect product and brand choice. تؤثر على اختيار المنتج والعلامة التجارية
Opinion leaders: Person who offers informal advice or information about a specific product or product category, such as which of several brands is best or how a particular product may be used.
- Opinion leaders are often highly confident, socially active, and frequent users of the category.
- Marketers identify them to use as brand ambassadors. المسوقين يحددون قادة الراي لاستخدامهم كسفراء للعلامة التجارية
Family : (purchases influenced by family members)
- The influence can be very strong because the family is the most important consumer buying organization in society.
- Family members constitute the most influential primary reference group
There are two kinds at families in the buyers life:
- Family of orientation: consists of parents and elders.
- 40% of families have insurance with same company as husband parents.
- Family of procreation: consists of husband, wife, and children.
Family – Affecting Buying Decisions :
- Marketers interested in roles and influence of (husband, wife, children)
- The wife has acted as the main purchasing agent for the family.
- They buying influence according the types at product.
Children may also have strong influence on family buying decisions.
- Studies found kids influence family decisions about where they take vocations, what cars or cell phones they buy.
- So also will placed on children oriented TV networks.
Five roles of purchasing process: : (إضافة من التلخيص) خمسة أدوار في عملية الشراء
- Initiator: the one who initiate the idea of buying (daughter). المبادر: واحد من بدأ فكرة شراء (ابنة)
- Decider: the one who decide whether to buy or not (father). الحاسم: الذي يقرر الشراء أو لا (الأب)
- Influencer: the one who influence decision making process (mother).( المؤثر: الذي تؤثر على صنع القرار (الأم
- User: the one who is going to use the product or the service (gout to fried). المستخدم: واحد وهو ذاهب الى استخدام المنتج أو الخدمة
- Buyer: the one who is going to pay the cost of product (driver). المشتري: الذي هو ذاهب لدفع تكلفة المنتج
roles and status: a person’s position in each group in terms
- A role consists of the activities a person is expected to perform.
- Each role in turn connotes a status.
- People choose products that reflect and communicate their role and their actual or desired status in society.
- Marketers must be aware of the status-symbol potential of products and brands.
- Personal factors: buying decisions influenced by personal characteristic such:
- Life cycle stage.
- Occupation. الوظيفة
- Economic circumstances. الظروف الاقتصادية
- Life style.
1. Age and life-cycle stage: always connected together.
- People change the goods and services they buy over their lifetimes.
- Our taste in food, clothes, furniture, and recreation is often related to our age.
- The family life cycle and the number, age, and gender of people in the household at any point also shape consumption in time.
- Example: (young and single differ from young and married, differ from married have children, differ from married live with parents.)
- Marketers should also consider critical life events or transitions as giving rise to new needs. (marriage, childbirth, illness, relocation, divorce, first job, career change, retirement, death of a spouse)
Example: Age classification (RBC Royal Bank stages) :
- Youth (less 15).
- Getting started: who are going through first experience, first credit card, first car, and first child.
- Builder: their peak earning years, they build careers and family, they tend to borrow more than they invest.
- Accumulators: worry about saving for retirement income to maintain
- Preservers: want to maximize their retirement income to maintain a desired lifestyle.
3. Occupation: also influences consumption patterns.
- Marketers try to identify the occupational groups that have above average interest in their products and services even tailor products for certain occupational groups.
- (E.g. Computer software companies, design different products for managers, engineers, accountant, lawyers, and doctors).
Both product and brand choice are greatly affected by economic circumstances:
- Spendable income (level, stability, and time pattern),
- Savings and assets (including the percentage that is liquid)
- Borrowing power
- Attitudes toward spending and saving.
- Both product and brand choice are greatly affected by economic circumstances:
Personality: A set of unique human psychological traits that lead to consistent and lasting responses to the consumer's environment. (Including buying behavior).
- Each person has personality characteristics that influence his or her buying behavior.
- Personality can be a useful variable in analyzing consumer brand choices.
- We often describe personality in terms of such traits: (self-confidence, autonomy, deference, sociability, defensiveness, and adaptability).
- Personal factors. العوامل الشخصية.
- Dominance. الهيمنة.
- Autonomy. الحكم الذاتي.
- Defensiveness: when consumers have lack of knowledge. الدفاعي
- Adaptability: consumer adapt them with their situation (exam economic situation). القدرة على التكيف: المستهلك يتكيف مع الوضع الاقتصادي الخاص به.
- Aggressiveness: aggrieve behavior on purchasing process. العدوانية
- People from the same subculture, social class, and occupation may lead quite different lifestyles.
6. The self-concept: describes the self-image.
– The basic idea is that people possessions contribute to and reflect their entities. (How one views oneself).
– Each persons (personality and self-concept) will influence their laying behavior brand or product choices.
Lifestyle: Is a person’s pattern of living in the world as expressed in activities, interests, and opinions.
- It portrays the “whole person” interacting with his or her environment.
- Marketers search for relationships between their products and lifestyle groups.
- Activities (work, hobbies, shopping).
- Interests (food, fashion, recreation).
- Opinions (about themselves, social issues, business…).
- The most used lifestyle classification is values and lifestyles (VALS), classifies people according to their consumption tendencies by how they spend their time and money.
8. Values: what are the things that they believe in and are important to them?
- Brand personality: The specific mix of human traits that we can attribute to a particular brand.
Research on brand personalities identified the following traits:
- Sincerity (down-to-earth, honest, wholesome, cheerful)
- Excitement (daring, spirited, imaginative, and up-to-date)
- Competence (reliable, intelligent, and successful)
- Sophistication (upper-class and charming)
- Ruggedness (outdoorsy and tough)
Key psychological Processes:
- Motivation: drive to act. الدافع: المحرك للعمل.
- Perception: interpretation at information. الإدراك: التفسير في المعلومات.
- Learning: change in behavior due to experience. التعلم: تغير في السلوك يرجع إلى الخبرة.
- Memory: retention of experience and Idea. الذاكرة: الاحتفاظ بالتجارب والأفكار .
Most popular theories of psychologist (frued-maslow-herzberg):
- Freud theory: behavior is guided by subconscious motivations.
Herzberg's two-factor theory: behavior is guided by motivating and hygiene factors.
- Frederick Herzberg developed a two-factor theory that distinguishes dissatisfies (factors that cause dissatisfaction) from satisfiers (factors that cause satisfaction).
- The absence of dissatisfies is not enough to motivate a purchase; satisfiers must be present.
Maslow's hierarchy of needs: behavior is driven by lowest, unmet need.
- The theory suggests that people will try to satisfy their most important need first and then try to satisfy the next most important.
According to Maslow arrange human need in order of importance :
- Physiological needs: (food, water, shelter).
- Safety needs: (security, protection).
- Social needs: (sense of belonging, love).
- Esteem needs (self-esteem, recognition, status).
- Self-actualization needs: (self-development and realization).
- The role of marketer is to add value in each level, provide different product and services (diversification).
- Most popular theories of psychologist (frued-maslow-herzberg):
- Perception: is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world.
- A motivated person is ready to act how is influenced by his or her perception of the situation.
- Selective attention: walking in the market looking at computer centers to bay laptop.
- It means that marketers must work hard to attract consumers’ notice.
- Selective retention we are likely to remember good points about a product we like, and forget good points about competing products.
- It also explains why marketers need to use repetition to make sure their message is not overlooked.
- Selective distortion: It is the tendency to interpret information in a way that fits our preconceptions. التشويه الانتقائي: هو الميل لترجمة المعلومات بطريقة خاطئة لملائمة تصوراتنا
- Selective distortion can work to the advantage of marketers with strong brands when consumers distort neutral or ambiguous brand information to make it more positive.
- Learning: induces changes in our behavior arising from experience.
- Memory: All the information and experiences we encounter as we go through life can end up in our long-term memory
- Example: if you enter restaurant and find not clean food, you will never come back.
- Emotions: Consumer response is not all cognitive and rational; much may be emotional and invoke different kinds of feelings
- A brand or product may make a consumer feel proud, excited, or confident
Consumer Decision Buying Process: The Five-Stage Model if the Consumer Buying Process:
- Problem recognition: consumer able to understand your need.
- Information search: search for more information about the nee from diff. source.
- Evaluate of alternative: analyze alternative in a way that satisfy consumer need.
- Purchase decisions: choose from different alternatives.
- Post purchase behavior: compere between expected and actual vale.
Example for previous process:
- Need for mobility (need car).
- Ask special persons about car with space criteria to minimize effort of searching (price, economical, model,).
- Evaluate each car, what car more appropriate for buyer.
Buy a car (but before buying there are two factors may affect buying decision):
- Attitude at others (from friend). موقف في الآخرين (من صديق)
- Unexpected circumstances (lose job). ظروف غير متوقعة (يفقد وظيفته).
- Compare perceived value with expectation and that will lead to 3 answers
- Types of buying decision behaviorأنواع السلوك في قرار الشراء :
- Complex buying behavior. سلوك الشراء المعقد
- Dissonance reducing buying behavior. سلوك الشراء الأقل تعقيدا
- Habitual buying behavior.سلوك الشراء المعتاد
- Variety seeking buying behavior. سلوك الشراء المتقلب
Be list and attitudes: (إضافة من التلخيص)
- Be list: descriptive thought that a person holds about something.
- Attitude: person is enduring favorable or unfavorable evaluation, emotional feeling, and action tendencies toward some object or idea.
The consumer may make up to five-sub decision in executing a purchase: (إضافة من التلخيص)
- Brand. العلامة التجارية.
- Dealer. موزع.
- Quantity. الكمية.
- Timing. توقيت.
- Payment-method. الدفع-الأسلوب.
- Why sometimes hesitate to make decisions? (إضافة من التلخيص)
Because at the perceived risk, if consumer feel that the perceived risk is existed, consumer win avoid making decisions.
- Example: consumer will not enter to restaurant if he think it is expensive.
Types of perceived risk: (إضافة من التلخيص)
- Functional. الوظيفي.
- Physical. المادية.
- Financial. المالية.
- Social. الاجتماعي.
- Psychological. النفسية.
- Time. الوقت.
- The role at marketing is to delete all types of risks by diving him guarantee.
The buyer decision process for new products:
- Adoption process: is the mental process an individual goes through from first learning about an innovation to final regular use. عملية التبني: هو عملية عقلية حيث يمر الفرد من العلم لأول مرة عن الابتكار إلى الاستخدام المنتظم النهائي
Stages in the process include:
- Awareness.من خلال الإعلانات (وعي)
- Interest.تجذب الزبائن (تترك رقم مجاني) (اهتمام)
- Evaluation.تقييم ما بين الشركات المحتملة (تقييم)
- Trial.(تجربة) مثل خدمات الانترنت
- Adoption.(تبني) اختيار شركة معينة وتبنيها
- The buyer decision process for new products influence of product characteristics on rate of adoption.
Types of characteristics of new product supposed to be existed:
- Relative advantage: what differ product (new) from other products and the product of competitors?
- Compatibility: is relative advantage compatible to consumer need or not. التوافق
- Complexity: is relative advantage complex or not, example: Hassel (simple) and beach (complex) accounting program.
- Divisibility: is the advantage available for trial. متاحة للتجربة
- Communicability: is the advantage communicable, the advantage is known and liked by other or any one saw it. (Beautiful car – nice suite). الميزة بتحكي عن حالها لحالها
Ch. (9) Identifying market segments and selecting Target Markets
- "Do not buy market share, figure out how to earn it".
- It’s mean that it easy for any marketer to build a market share but the problem is the
- You need strategic marketing plan to retain your customer. (add value)
Customer-driven marketing strategy vs Customer-Driving philosophy :
- Customer-driven marketing strategy: Consumer understand and they are aware of what they buying. (We deal with rational customer) so I should focus in creating value.
- Customer-Driving philosophy: Consumer don’t understand and they don’t have knowledge about product so I should drive those.
- Consumer if they aware: they will driven me (org.) to satisfy their needs.
- Consumer IF they not aware: they will drive them to satisfy their needs
Targeting marketing steps (customer-driven marketing strategy steps):
- Segmentation: divide total market into smaller segments.
- Targeting: select the segment or segments to enter.
- Positioning: position your brand in the minds of target customers.
- Differentiation: differentiate the market offering to create superior customer value
- Market Segmentation: dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products and/or marketing mixes.
- If all consumers respond the same way, then there should be no need to segment a market.
- We use segmentation in heterogeneous markets, not in homogeneous preferences.
Why do we segment? (Benefits from segmenting the marketing):
- Focus of the Company.
- Increase in competitiveness.
- Market expansion.
- Customer retention.
- Have better communication.
- Increase profitability.
Main Strategic Approaches to Segmentation:
- Zero of segments > Undifferentiated strategy > Mass marketing: no segmentation
- One of segments > focus strategy > Niche marketing: focus efforts on a small, tightly defined target market
- Two or more of segments > differentiated strategy > multiple niches: focus efforts on two or more, tightly defined targets.
- Thousands of segments > Hyper segmentation > One-to-one marketing: customize the offer for each individual customer.
A number of factors are likely to affect a company's segmentation strategy:
- Company resources
- Product variability
- Product life cycle
- Market characteristics
- Competitive activity
Levels of market segmentation:
Mass marketing: same product to all consumers (no segmentation). التسويق الشامل
- No segmentation.
- Dealing with large-scale companies, economy of scale.
- Cost is low, same advertising campaign.
- Mass Marketers have trouble competing with more focused firms.
- It is only work if all consumer have the same needs, wants, desires, and the same background, education and experience.
- Ex. Coca-Cola, Microsoft
- Mass marketing: same product to all consumers (no segmentation). التسويق الشامل
Segment marketing: different products to one or more segments (some segmentation). التسويق المجزأ
- Differentiation so we start segmenting.
- More expensive.
- Companies hope for higher sales.
- Ex. G.M when it tries to produce a car for every purpose and personality.
Niche marketing: different products to subgroups within segments (more segmentation). التسويق المتخصص
- Large share of one or a few smaller segments or niches.
- Highly profitable but at the same time involves higher than normal risks.
- Ex. Pepsi (Twist, Mountain Dew), sport channels (Fox sport).
Micromarketing: products to suit the tastes of individuals and locations (complete segmentation) التسويق المدقق
- Rather than seeing a customer in every individual, micro marketers see the individual in every customer.
- Local marketing: brands and promotions to local customers groups. (Wall-mart).
- Some of the drawbacks:
- Drive up manufacturing and marketing costs by reducing economies of scale.
- Brand overall image.
Individual marketing: product are programs to individual customers.
- Human interactions and relationships with customers.
- Ex. Dell, Nike
Patterns for market segmentation (Preference segment)
- Homogenous preferences: all customer have the same preferences.
- Diffused preferences: customers very greatly in their preferences.
- Clustered preference: group of the same or similar element gathered or occurring closely to gather.
Steps in segmentation process:
- Needs based segmentation. التجزئة على أساس الحاجات
- Segment identification. تحديد القطاعات
- Segment attractiveness.
- Segment profitability.
- Segment positioning.
- Segment acid test (after that marketing-mix strategy).
- Segmenting Consumer Markets:
Geographic segmentation: divides the market into different geographical units such as (nations, regions, states, counties, cities or even neighbor hoods).
- Many companies today are localizing their products, advertising, promotion and sales effort to fit the needs of individual regions, cities, and even neighborhoods.
- Examples: McDonalds globally, sell burgers aimed at local markets, for example, burgers are made from lamb in India rather than beef because of religious issues.
- Climate: product for hot and cold weather, (wars or cars)
Demographic segmentation (age, family life cycle, gender, family size , income, ethnic, Occupation, Education, Religion, Race, Nationality)
the most popular because:
- Customer needs, wants, and usage rates often vary closely with demographics variables.
- Easier to measure than most other types.
- the most popular because:
- The process of offering different products or using different marketing approaches for different age and life cycle groups.
- Example: Toothpaste brands such as crest offer three main lines of products to target Kids, adults, and older customers.
- Example: pampers
- life-cycle stage segmentation:
- The process of family formation and dissolution.
Segmenting by gender:
- Men and women have different attitudes and behave differently.
- Gender segmentation has been long used in clothing, cosmetics and magazines.
- Many women’s cosmetics makers have begun marketing men’s lines.
- Example: Nivea markets
- Segmenting by household type, Family size:
- The “traditional family” has declined over the years
- Segmentation based on Income: Dividing a market into different income groups. (affluent or middle or low-income consumers)
- Many companies target affluent consumers with luxury goods and convenience services.
- However, not all the companies that use income segmentation target the affluent.
- For example: when experts scout locations for new pound and dollar stores, they look for lower-middle class neighborhoods where people wear less expensive shoes and drive old cars that drip a lot of oil.
- Income does not always predict the best customers for a given product.
For example: (Blue-collar workers -color television).
- Segmentation based on Race and Culture (Ethnic Group)
- Census Bureau projects that by 2050; nearly half of the population of the US will belong to nonwhite minority groups.
- Psychographic segmentation: divide population into group that have similar psychological characteristics, values and life styles.
- Psychographics is the science of using psychology and demographic to better understand consumer.
- Behavioral segmentation: divides buyers into groups based on their knowledge, attitude, sues, responses to product.
- Many Marketers believe that behavioral variables are the best starting points for constructing market segments.
Behavior is more tied into how consumers use the product.
Types of behavioral segmentation:
- Benefits and needs Sought: فوائد واحتياجات يسعى اليها
- Types of behavioral segmentation:
Needs-based or benefit-based segmentation is a widely used approach because it identifies distinct market segments with clear marketing implications.
هذا الأسلوب يستخدم على نطاق واسع لأنه يحدد قطاعات السوق المميزة وتطبيقات التسويق الواضحة.
- Benefit segmentation requires finding the major benefits people look for in the product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.
Examples: free bag with a laptop, discount on software or free delivery.
- Shampoo, which serves broadly the same purpose (i.e. to wash hair), but is marketed differently. Towards customers who have dry hair, greasy hair, colored or damaged hair.
- This addresses time-sensitive demand for products, be it seasonal, or related to specific dates in the calendar, such as Christmas, Ramadan, and the back-to-school period.
- Occasion segmentation can help firms build up product usage (most consumers drink orange juice in the morning).
- Some are entering the market in just specific occasions and with specific offers and Advertising campaigns.
- Examples: Eid al-Fitr and Eid al-Adha.
Decision roles: الأدوار القرار
- Initiator. البادئ
- Influencer. المؤثر
- Decider. الحاسمة
- Buyer. المشتري
- User. العضو
- Example: a wife requesting a new treadmill
User Status: حالة المستخدم
- Every product has its non-users, ex-users, potential users, first-time users, and regular users.
- Marketers want to:
- Reinforce and retain (regular users).
- Attract (non- users).
- Reinvigorate relation with (ex-users).
Each with different marketing strategy.
- Examples: Blood banks, Bride to be, mothers to be
- Usage Rates: معدلات الاستخدام
– Markets often divided into heavy-user, moderate-user, and light-user segments.
– Heavy users are often a small percentage of the market but account for a high percentage of total consumption.
– Example: burger king targets what it calls “super fans”; they eat at burger king an average of 16 times a month.
Loyalty status: حالة الولاء
- Hard-core loyal (strength): Consumers who buy only one brand all the time .
- Split loyal: Consumers who are loyal to two or three brands
- Shifting loyal: Consumers who shift loyalty from one brand to another.
- Switcher: Consumers who show no loyalty to any brand.
Multiple Bases: Combining different behavioral bases can provide a more comprehensive and cohesive view of a market and its segments.
What is hybrid (multivariate) segmentation?
Hybrid segmentation (which is also sometimes referred to as multivariate segmentation) refers to using multiple segmentation variables in the construction of market segments.
- For example: Bank: may not only identify a group of wealthy retired adults but also, distinguish several segments base on their current income, assets, savings, housing and lifestyles.
- Geodemographic segmentation: is an example of multivariable segmentation that divides groups into consumer lifestyle patterns.
- What is hybrid (multivariate) segmentation?
- Segmenting Business Markets :
1. Demographics. التركيبة السكانية.
2. Operating variable. متغير التشغيل.
3. Purchasing approaches. نهج الشرائية.
4. Situational factors. العوامل الظرفية.
5. Personal characteristics. الخصائص الشخصية
اضافة من التلخيص))
- Industry: which industries should we serve?
- Company: what size companies should we serve?
- Location: what geographical areas should we serve?
- Technology: what customer technologies should we focus on?
- User or non-user status: should we serve heavy users, medium, light, non-user?
- Customer capabilities: should we serve customers needing many or few service?
- Purchasing function organization: serve centralized or decentralized purchasing organization.
- Power structure: serve (engineering dominated, or financially dominated.
- Nature of existing relationships: strong relation, simply relation).
- General purchase policies: serve companies prefer leasing? Service contracts?
- Purchasing criteria: (serve companies seeking quality? service? Price?
- Urgency: serve quick and sudden delivery or services?
- Specific application: (focus on certain application rather than all application?)
- Size of order: (large or small orders).
- Buyer-seller similarity: deal with business with similar values?
- Attitude toward risk: serve (risk taking or risk avoiding)?
- Loyalty: serve companies that show high loyalty to their supplies?
Evaluating market segments:
- Segment size and growth: (analyze sales, growth rates, profitability).
- Segment structural: attractiveness, effect of (competitor, substitute, suppliers, buyers).
- Company objectives and resources: (skills and resources, superior value).
- Segmenting International Markets:
Divides consumers into groups with similar needs and buying behaviors even though they are located in different countries. (Example: Coca cola)
Segmenting International Markets:
- Geographic location. الموقع الجغرافي.
- Economic factors. العوامل الاقتصادية.
- Political-legal factors. العوامل السياسية-القانونية.
- Cultural factors. العوامل الثقافية.
- Market Targeting:
- Target market: consists of buyers who share common needs or characteristics that the company decides to serve.
Effective Segmentation Criteria:
- Not all segmentation schemes are useful.
- To be useful, market segments must rate favorably on five key criteria:
- Measurable: The size, purchasing power, and characteristics of the segments can be measured.
- Substantial: The segments are large and profitable enough to serve. A segment should be the largest possible homogeneous group worth going after with a tailored marketing program. It would not pay, for example, for an automobile manufacturer to develop cars for people who are under four feet tall.
- Accessible: The segments can be effectively reached and served.
- Differentiable: The segments are conceptually distinguishable and respond differently to different marketing-mix elements and programs. If married and single women respond similarly to a sale on perfume, they do not constitute separate segments.
- Actionable: Effective programs can be formulated for attracting and serving the segments.
Evaluating and selecting market segments:
- A segment is less attractive if, it already contains many strong and aggressive competitors or if it is easy for new entrants to come into the segment.
- The company must first collect and analyze data on current segment sales, growth rates and expected profitability for various segments; the firm will be interested in segments that have the right size and growth characteristics.
In evaluating different market segments, a firm must look at three factors:
- Segment size and growth
- The largest, fastest growing segments are not always the most attractive ones for every company.
- Smaller companies may lack the skills and resources needed to serve the larger segments, or they may find these segments too competitive.
- Such companies may target segments that are smaller and less attractive, in an absolute sense, but that are more profitable for them.
Segment structural attractiveness
- The company also needs to examine major structural factors that affect long run segment attractiveness.
- Michael Porter has identified five forces that determine the intrinsic long-run attractiveness of a market or market segment: industry competitors, potential threat of entrants, threat of substitutes, power of buyers, and power of suppliers. The threats these forces pose are as follows.
- For example, the segment is less attractive if it already contains many strong and aggressive competitors.
- The existence of many actual or potential substitute products may limit prices and the profit that can be earned in a segment.
- The power of buyers affects segment attractiveness, buyers with strong bargaining power relative to sellers will try to force prices down, demand more services and set competitors against one another
- A segment may be less attractive if it contains powerful suppliers who can control prices or reduce the quality/quantity of ordered goods and services.
- A segment may be less attractive if the new competitors enter the market easily.
Company objectives and resources
- Some attractive segments can be dismissed quickly because they don’t mesh with the company’s long run objectives, or the company may lack the resources and skills needed to succeed in an attractive segment.
- A company should enter only segments in which it can create superior customer value.
Target Marketing Strategies:
- Using an undifferentiated marketing (or mass marketing) strategy, a firm might decide to ignore market segment differences and target the whole market with one offer.( Coca Cola, Microsoft)
- Such a strategy focuses on what is common in the needs of consumers rather than on what is different.
- The company designs a product and a marketing program that will appeal to the largest numbers of buyers.
- Undifferentiated Marketing:
- Provides cost effectiveness because of its low production, inventory, transportation, advertising, marketing research costs.
- Most modern marketers have strong doubts about this strategy
Have difficulties in
- developing a product or brand that satisfies all consumers
- keeping a strong place in the market and making profit, when several firms follow this strategy heavy competition develops
- satisfying smaller segments
- offering more differentiated products and services to market sub segments by competitors
- Using a differentiated marketing (or segmented marketing) strategy, a firm decides to target several market segments and designs separate offers for each.
- E.g., Nike offers athletic shoes for different sports such as running, aerobics, cycling, baseball, basketball, tennis…
- Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.
These companies hope for:
- higher sales
- a strong place within each market segment
- Customers that are more loyal because the firm’s offerings match each segment’s desires better.
- This will lead to increases the costs – developing separate marketing plans for the separate segments requires extra marketing research, sales analysis, promotional planning, channel management, product modification cost, manufacturing cost, administrative cost, inventory cost, promotion cost.
- When using a concentrated marketing (or niche marketing) strategy, instead of going after a small share of a large market, a firm goes after a large share of one or a few smaller segments or niches.
- Niche marketing narrows the market concentration approach even more and focuses all marketing efforts on one small, well-defined market segment that has a unique, specific set of needs.
- Suitable for smaller companies to achieve a strong market place in the segments (or niches) that it serves because of its greater knowledge of the segment’s needs. A firm with limited resources can compete with larger organizations; also, it can market more effectively and efficiently.
- Involves higher-than-normal risks because the target may not respond or larger competitors may decide to enter the same market but offers operating economies because of specialization in production, distribution, and promotion.
Micromarketing: is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. (Local marketing, Individual marketing).
Local marketing: involves tailoring brands and promotion to the needs and wants of local customer groups. (Cities, Neighborhoods, Stores)
- Local marketing helps a company to market more effectively in the face of pronounced regional and local differences in demographics and lifestyles.
Drawbacks for local marketing:
- It can drive up manufacturing and marketing costs by reducing the economies of scale.
- It also create logistics problems as companies try to meet the varied requirements of different regional and local markets.
- A brand’s overall image might be diluted if the product and message vary too much in different localities.
Individual marketing: involves tailoring products and marketing programs to the needs and preferences of individual customers.
- Also known as: (One-to-one marketing, Mass customization, Markets-of-one marketing)
- Local marketing: involves tailoring brands and promotion to the needs and wants of local customer groups. (Cities, Neighborhoods, Stores)
Multiple Segment Specialization:
- Selective specialization: a firm select a subset of all the possible segments, each objectively attractive and appropriate. (Procter @ Gamble).
- Product specialization: the firm sell a certain product to several different market segments. ( A microscope producer)
- Market specialization: the firm concentrates on serving many needs of a particular customer groups. (Selling an assortment of product only to university laboratories).
Choosing a Target Market:
Factors needed to be considered when choosing a market-coverage strategy are;
- Company resources: when the firm’s resources are limited, concentrated marketing is the better.
- Product variability: for uniform products e.g. grapefruit or steel, undifferentiated marketing is more suitable. But for products that vary in design e.g. cameras or automobiles, differentiated or concentrated is more suitable.
- Product’s stage in the life cycle: when the product is new, it is better to produce only one version of the product – undifferentiated or concentrated marketing. For mature products, differentiated marketing makes more sense.
- Market variability: when buyers have the same tastes and react the same way to marketing efforts, undifferentiated marketing is suitable.
- Competitors marketing strategies: when competitors use segmentation, undifferentiated marketing can be suicidal. On the contrary, when competitors use undifferentiated marketing, a firm can gain an advantage by using differentiated or concentrated marketing.
- Factors needed to be considered when choosing a market-coverage strategy are;
- Mass marketers do not often practice mass marketing today. They practice differentiated marketing. Often they do not change the product to appeal to different segments. They change price, place, and promotion.
- Socially responsible targeting: Organization should be socially responsible when choose segments.
Differentiation and positioning: (Differentiation before positioning)
Product position: the place the product occupies in consumer's minds relative to competing products.
- Differences come from (perceptions, impressions, and feelings).
- Product position: the place the product occupies in consumer's minds relative to competing products.
Choosing a differentiation and positioning strategy: (four steps)
- Identifying a set of differentiating competitive advantages on which to build apposition.
- Choosing the right competitive advantages.
- Selecting an overall positioning strategy.
- Developing a positioning statement.
Identifying Possible Value Differences and Competitive Advantage:
- Competitive advantage: is an advantage over competitor gained by offering consumers greater value. (Lower price-quality).
Differentiation come from:
- Product differentiation
- Service differentiation
- Channel differentiation
- People differentiation
- Image differentiation
Choosing right competitive advantage:
Difference to promote should be:
- Important: The difference delivers a highly valued benefit to target buyers.
- Distinctive: Competitors do not offer the difference, or the company can offer it in a more distinctive way.
- Superior: The difference is superior to other ways that customers might obtain the same benefit.
- Communicable: The difference is communicable and visible to buyers. (clear company advantage)
- Preemptive: Competitors cannot easily copy the difference.
- Affordable: Buyers can afford to pay for the difference.
- Profitable: The Company can introduce the difference profitably (for both customer and organization).
- Difference to promote should be:
- Selecting an overall positioning strategy. (تفاصيلها غير مطلوبة)
Developing a positioning statement: is a statement that summarize company or brand positioning using the following form.
After building desired position:
- Must take care to maintain position, through consistent performance and communication (product development).
- Adapt the position over time to match changes in needs and competitors strategies
- Choosing the positioning strategies is often easier than implementer the position.
- After building desired position:
User status: ( إضافة من التلخيص) حالات المستخدم
- Non-user (attract).
- Regular user (retain).
- Potential user.
- Ex-users (rebuilding relation).
- First time user (need more attentions).
Ch. (12) setting product strategy
Two ways to obtain new products:
- Acquisition: refers to the buying of a whole company, a patent, or a license to produce someone else’s product.
- New product development: refers to original products, product improvements, product modifications, and new brands developed from the firm’s own research and development efforts.
Reasons for new product failure:
- Over estimation of market size.
- Poor design
- Incorrect positioning
- Wrong timing
- Priced too high
- Ineffective promotion
- Management influence
- High development costs
- Major Stages in New-Product Development:
- Is a key element in the market offering.
- Is the first and the most important element in the marketing mix.
- Why? Because If we don’t have a product we don’t needs for other activates (Product, promotion, Pricing, marketing channel….cost) (marketing mix).
Product: is anything that can be offered to market for attention, acquisition, use or consumption to satisfy a want or a need.
- Something may be consider as a product for you, put for other it value less.
- What is a Product? (Type of product)
Product can be (Goods- information- places- organizations- services- events- persons- Ideas – experiences- properties).
- Experiences represent what buying the product or service will do for the customer.
- Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization.
- Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people.
- Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places.
- Social marketing is the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society.
The product levels:
(5 levels) according to Kotler:
Core benefit: the service or benefit the customer is rely buying (customer rest).
- Example: (healthy feed).
Basic product: the marketer has to turn the core benefit into basic product.
- Example: (fruits, and vegetables).
- Expected product: set of attributes and conditions buyer normally expect when they purchase the product
- Core benefit: the service or benefit the customer is rely buying (customer rest).
- (5 levels) according to Kotler:
Example: (fresh fruits, and veg., juices)
- Augmented product: the product exceeds customer expectation.
Example: vegetables prepared with DIPS, fruits in baskets.
- Potential product: all possible augmentations and transformations the product offering might undergo in the future. (new ways to satisfy customers)
(3 Levels) of product:
- Core benefit
- Actual product (features, design, packaging, quality level, brand name)
- Augmented product (after sale service, warranty, product support, delivery and credit).
- Product and Service Decisions:
Product attributes: are the benefits of the product or service: (Quality – Features – Style and design)
Quality: “freedom from defects”: has a direct impact on product or service performance, thus, it's closely linked to customer value and satisfaction.
- Quality level: is the level of quality that supports the product’s positioning
- Conformance quality: is the product’s freedom from defects and consistency in delivering a targeted level of performance.
- Product features: are a competitive tool for differentiating a product from competitors’ products.
- Style describes the appearance of the product.
- Design contributes to a product’s usefulness as well as to its looks. It goes to the very he service art of a product.
- Quality: “freedom from defects”: has a direct impact on product or service performance, thus, it's closely linked to customer value and satisfaction.
- Customer service: is another element of the product strategy. A company’s offer usually includes some support services, which can be a minor or a major part of the total offering.
- Types of Service Industries:
- Government – Private not-for-profit organizations -Business services)
Nature and Characteristics of a Service:
- Intangibility: services cannot be seen, tasted, felt, heard, or smelled before they are purchased.
- Inseparability: services cannot be separated from their providers.
- Variability: service quality depends on who provides the services as well as when, where, and how they are provided.
- Perishability: services cannot be stored for later sale or use.
Marketing Strategies for Service Firms:
- Service-profit chain: links service firm profits with employee and customer satisfaction.
- Internal marketing: means that the service firm must orient and motivate its customer contact employees and supporting service people to work as a team to provide customer satisfaction.
- Interactive marketing: means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter (Service differentiation – Service quality – Service productivity).
- Durability and tangibility.
- Consumer goods.
- Industrial goods.
- Durability and tangibility:
- Nondurable goods (tangible): rapidly consumed in one or a few uses (milk, soap).
- Durable goods (tangible): lasts long time (clothes, oven, electronics, and refrigerator).
- Services (Intangible): (appliance repairs, transportation services).
Consumer goods classification:
- Consumer product: are products and services for personal consumption.
Classified by shopping habits
- Convenience goods
- Shopping goods
- Specialty goods
- Unsought goods
Convenience goods: consumer products and services that customer usually buys frequently, immediately, and with a minimum comparison and buying effort.
- Staples goods: goods consumers purchase on regular basis (toothpaste)
- Impulse goods: purchased without any planning or search effort (magazines).
- Emergency goods: are purchased when a need is argent. (Umbrellas during a rainstorm).
- Shopping goods: consumer product and services that customer compares carefully on suitability, quality, price, and style.
- Homogenous shopping goods: Here similar quality but different enough in price to justify shipping comparisons. (Laptop, dell, Hp, Toshiba).
- Heterogeneous shopping goods: offer in product features and services that may be more important price.
High life cycle
Low life cycle
Purchased without planning or search efforts
Need planning or search efforts
Investing distribution policy
Selective distribution policy
Specialty products: consumer products and services with unique characteristic or brand identification for which significant group of buyers is willing to make special purchase effort. (Medical services, designer clothes).
Buyers normally don’t compare specialty product, they spent time to reach dealers carrying the wanted products.
Unsought products: consumer products that the consumer does not know about or knows about but does not normally think of buying. (life insurance, funeral services)
Require a lot of advertising, personal selling, and other marketing efforts.
Industrial goods classifications:
Goods that enter the manufactures product completely.
- Materials and parts
- Capital items
- Supplies and business services
- Farm products (wheat, cotton).
- Natural products (fish, crud, petroleum)
- Component materials (Iran, cement, wires).
- Component parts (small motors, tires).
- Installations (factories, offices).
- Equipment (drill presses, personal computer, elevators).
- Goods that enter the manufactures product completely.
Supplies and business services:
- Maintenance and repair (paint, window cleaning, copier repair).
- Advisory services (legal, adverting, management consulting).
Product differentiation: is the process at distinguishing a product or service from others, to make it more attractive to a particular target market.
- Form: Many products can be differentiated in form (Size, shape, physical structure of a product).
- Feature: (how many people want each feature) (car option)
- Performance and quality: Most products are established at one of four performance levels: Low, average, high or superior.
- Durability: (product operating life ‘long time-small time)
- Reliability: Measure of the probability that a product will not fail within a specified time.
- Style: products look and feel to the buyer.
- Conformance quality: all produced units are identical and meet the promised specifications.
- Repair ability: measure the ease of fixing a product when fails.
- Ordering ease: how easy it is for the customer to place an order with the company. Example: loan application in different bank.
- Delivery: now well the product or service is delivered to the customer.
- Installation: the work done to make a product operational in its planned location.
Example: (laptops and program)
- Customer training: training the customer’s employees to use the render’s equipment properly and efficiently. (Example: Bank program).
- Customer consulting: refer to data, information systems, and advice services that the seller offers to buyers.
- Maintenance and repair: service program for helping customers keep purchased products in good working order.
Product mix: consists at the products and items that a particular seller offers for sale.
- Product mix consists at various product lines
Product mix dimensions:
- The width: number of product lines. العرض
- The depth: how many variants are attired of each product in the line. العمق
- The length: total number of items in mix. الطول
- Consistency: degree to which product lines are rated. (Production requirement, distribution channels). الاتساق
- Definition of a brand: A name, term, sign, symbol, design, or a combination at these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competition.
- Brand should be simple: that mean easy to pronounce, memorable, and it can be translatable to other languages.
- Why we need brand: to protect our product from competitors
- Brand can convey six levels of meaning (attributes, benefits, values, culture, personality, users).
Packaging: all the activities of designing and producing the container for a product.
- Is the container of the product, anything to protect the ingrediance of the product.
- The goal: is to receiver the product as it was produced.
- Packaging has become as marketing tool, well-designed packages can create convenience & promotional value.
- Three types of packaging:
- Primary package: example (cover of the laptop).
- Secondary package: example (carton box at the laptop).
- Shipping package: example (container at groups of laptop).
The factors that help in increasing using packaging as a marketing tool:
- Self-service: The package must perform many of the sales tasks: attract attention, describe the product features, create consumer confidence and make a favorable impression.
- Consumer affluence: Consumers are willing to pay a little more per the convenience appearance, dependability and prestige of better packages.
- Company and brand Image: Packages contribute to instant recognition of the company or brand.
- Innovation opportunity: Innovative packaging can bring large benefits to consumers and profits to producers. (Easy to carry, easy to open, easy to pour and close).
Labeling: may be a simple tag attached to the product or an elaborately designed graphic that is part of the package.
Labeling functions (objectives):
- Identifies the product or brand.
- May identify product grade.
- May describe the product.
- May promote the product تشجيع المنتج
- Legal restrictions affect packaging for many product
- Labeling functions (objectives):
- Warranties: are formal statements of expected product performance by the manufacturer. (Comes from original producers to dealers or consumers).
Guarantees: come from the dealers to the end users. they are most effective in two situation:
- Company or product is not well known.
- The product’s quality is superior to the competition.
Main goal at guarantee:
- Reduce the buyer perceived risk. (for buyer)
- Suggest than product is high quality. (For producer).
- Company and its service performance are dependable.
- Enable the company to charge a higher price than competitor
- Product life cycle (PLS): We analyze the product life cycle and study the stages the product passed by in order to: set a specific strategy for each phase.
Claims of product life cycles (four premises):
- Product have a limited life.
- Product sales pass through destines stages each with different challenges and opportunities.
- Profits rise and fall at doddering stages.
- Products require different strategies in each life cycle stage.
Product life cycle stage:
- Introduction: a period of slow sales growth as the product is introduced in the market, profit nonexistent because of the heavy expenses of product introduction.
- Growth: a period of rapid market acceptance and substantial profit improvement.
- Maturity: slowdown in sales growth because the product has achieved acceptance by most potential buyers, profit stabilizer or decline because of increased competition.
- Decline: sales show a down ward drift and profit erode.
Rapidly rising sales
High cost per customer
Average cost per customer
Lower cost per customer
Low cost per customer
Marketing objectives (strategy)
Create product awareness and trial
Maximize market share
Maximize profit while defending market share
Reduce expenditure and milk the brand)
Offer a basic product
Offer product extensions, service, warranty
Diversify brand and models
Phase out weak items
Price to penetrate market (decrease prices)
Price to match or best competitors
Build selective distribution
Build intensive distribution
Build more intensive distribution
Go selective phase out unprofitable outlets
Build product awareness among early adopters and dealers
Build awareness and interest in the mass market
Stress brand differences and benefits
Reduce to level needed to retain hardcore loyal customers.
Strategies for sustaining rapid market growth:
- Improve product quality, add new features, and improve styling.
- Add new models and flanker products.
- Enter new market segments.
- Increased distribution coverage.
- Shift from product-awareness advertising to product preference advertising.
- Lower prices to attract next lager at price sensitive buyers.
Strategies for Maturity stage: strategies: Marketers can extend the life of the brand by the following methods:
- Market modification: converting nonusers and entering new market segments.
- Product modification: quality and features improvements.
- Marketing mix modification: price, distribution, advertising, sales promotion, devices.
Ways to increase sales volume:
- Convert non users.
- Enter new market segments.
- Attract competitors customers.
- Have consumers use the product on more occasions.
- Have consumers used more at the product on each occasion.
- Have consumers use the product in new ways.
Strategies for Decline stage:
- Increasing the firm’s investment (to strengthen competitive position)
- Maintaining the firms investment level unit the uncertainties about the industry are resolved.
- Decreasing the firm’s investment level selectivity, by dropping unprofitable customer, while strengthening firms investment in profitable niches.
- Harvesting the firm’s investment to recover cash quickly.
- Diversifying the business quickly.
Ch. (14) Pricing “strategies and programs”
- Price: the amount of money charged for a product or service, or the sum at the values that consumers exchange for the benefits at having or using the product or services.
- Price has many name: (rent, salary, fee, wage, rate, interest, commission sales people, tax, assessment, fare (park car in specific place).
The Importance of Price:
- To the seller: Price is revenue and profit source
- To the consumer: Price is the cost of something
- Revenue: The price charged to customers multiplied by the number of units sold.
- Profit: Revenue minus expenses.
- Internal factor marketing objectives-marketing mix strategy-cost-organization for pricing) and external factor (nature of market and demand-competition) affect the pricing process.
Trends Influencing Price Setting:
- High rate of new product introduction
- Increased availability of bargain-priced dealer and generic brands
- Price cutting as a strategy to maintain or regain market share.
- More efficient and better informed buyers.
Common Pricing Mistakes:
- Determining costs and taking traditional industry margins
- Failure to revise price to capitalize on market changes
- Setting price independently of the rest of the marketing mix.
- Failure to vary price by product item, market segment, distribution channels, and purchase occasion.
- Higher price + Lower perceived value = Company misses potential profits
- Lower price + Lower perceived value = Company fails to harvest potential profits
What must I consider before setting price?
- Know how much it costs to make and deliver product or service. Direct and Indirect costs. Fixed and Variable costs.
- Know your breakeven point.
- Research current prices in the market.
- Consider your market positioning and competitive advantage as this is likely to impact directly on your choice of pricing strategy.
Steps in setting pricing (arranged steps):
- Selecting the pricing objective. اختيار الهدف التسعير.
- Determining demand. تحديد الطلب.
- Estimating cost. تقدير التكلفة.
- Analyzing competitors cost prices and offers.
- Selecting a pricing method. اختيار طريقة التسعير.
- Selecting the final price. اختيار السعر النهائي
- Selecting the Pricing objective:
اختيار هدف التسعير هل هو البقاء أو تعظيم الربح أو تعظيم القيمة السوقية أو كشط السوق أو الجودة الأفضل
- Maximize current profit
- Maximize market share
- Maximize market skimming
- Product – quality leadership
Survival: Companies pursue survival as their major objective if they are plagued with overcapacity, intense competition, or changing consumer wants.
- As long as prices cover variable costs and some fixed costs, the company stays in business.
- Maximize current profits: Companies, who try to maximize their current profit, estimate the demand and costs associated with alternative prices and choose the price that produces maximum current profit, cash flow, or rate of return on investment. This strategy assumes the firm knows its demand and cost functions, but in reality, these are difficult to estimate.
Maximize market share (Penetration strategy): Companies that want to maximize their market share believe that a higher sales volume will lead to lower unit costs and higher long-run profit.
- They set the lowest price, assuming the market is price sensitive.
- This is a market-penetration pricing strategy.
- Maximize market share (org.) should lower its prices to maximize it’s market share.
- Increasing profits and market share cannot be in the same time.
- Market skimming (Skimming strategy): is a strategy for setting a high price for a new product to skim maximum revenues layer, the company make fewer but more profitable sales.
- Product quality and image must support the price
- Buyers must want the product at the price
- Costs of producing the product in small volume should not cancel the advantage of higher prices
- Competitors should not be able to enter the market easily.
- If company introduce new product and this product easy to be imitated, organization should use skimming strategy in order to recover organization don’t need to increase product.
- Product quality leaders : Companies that aim to be product quality leaders strive to be affordable luxuries, i.e., they want their products and services to be characterized by high levels of perceived quality, taste, and status with a price just high enough not to be out of the consumer's reach
- Demand: The quantity of a product that will be sold in the market at various prices for a specified period.
- Demand and price are inversely related i.e. Higher the price, lower the demand.
Company needs to consider:
- Price sensitivity
Price elasticity of demand:
- Elastic Demand: Consumers buy more or less of a product when the price changes. ( price sensitive – changes in demand)
- Inelastic Demand: An increase or decrease in price will not significantly affect demand. (not price sensitive – no real change in demand)
Factors That Affect Elasticity of Demand:
- Availability of Substitutes
- Price relative to Purchasing Power
- Product Durability
- Product’s Other Uses
Demand is less elastic under these conditions:
- There are few or no substitutes/competitors
- Buyers do not readily notice the higher price
- Buyers are slow to change their buying habits and search for lower prices
- Buyers think higher prices are justified
Factor that reduce price sensitivity:
- Product is more distinctive
- Buyers are less aware of substitutes
- Buyers cannot easily compare quality of substitutes
- The expenditure is a lower part of buyer’s total income
- The expenditure is small compared to the total cost
- Part of the cost is borne by another party
- The product is used with assets previously bought
- The product is assumed to have more quality, prestige, or exclusiveness
- Buyers cannot store the product.
- Estimating cost: (F.C + V.C = T.C total cost):
Company can take advantage from fixed cost (f.c.) by using economy of scale producing large quantity to decrease (f.c.) and the (t.c), and then can set prices patter than competitors.
Key Pricing Terms:
- Fixed costs/overhead: costs that don’t vary with production or sales revenue.
- Variable costs: vary with the level of production
- Total costs: sum of fixed and variable costs at a given level of production.
- Average cost: cost per unit at a given level of production = total cost/quantity of production.
Analyzing competitor’s cost, prices, and offers:
- By using marketing intelligence (information from supplier and customer) to know and be aware of competitors cost, price and offers.
- Firms must analyze the competition with respect to (Costs – Prices – Possible price reactions)
- Pricing decisions are also influenced by quality of offering relative to competition.
Selecting a pricing method:
- The Three C’s Model for Price Setting: Price-setting begins with the three “Cs”
- Markup pricing
- Target-return pricing
- Perceived-value pricing
- Value pricing
- Going-rate pricing
- Auction-type pricing
- Group pricing
- Markup pricing: The most elementary pricing method is to add a standard markup to the product’s cost.
هذه الطريقة يتم حساب تكلفة الوحدة ومن ثم إضافة نسبة ربح محددة على تكلفتها
- Target on return: pricing used to achieve a planned or target rate of return on investment.
Perceived value pricing: Companies base their price on the customer’s perceived value. (Example Mercedes car).
- There are three groups of buyers :
- Price buyers
- Value buyers
- Loyal buyers
- Value pricing: (for loyal customers, by giving them some privileges. (example lower price for them), and that require reengineering at the operation at company to decrease cost).
- Going pricing: company sets its prices according to prices of competitor, does not require large effort
Auction-type pricing: One major purpose of auctions is to dispose of excess inventories or used goods.
Three major types of auctions: ثلاثة أنواع رئيسية من المزادات:
- English auctions (ascending bids). المزادات الإنجليزية (العروض تصاعدي)
- Dutch auctions (descending bids). المزادات الهولندية (العروض تنازلي)
- Sealed-bid auctions نظام المكتوب .
- Three major types of auctions: ثلاثة أنواع رئيسية من المزادات:
- Group pricing: Consumers and business buyers join groups to buy at a lower price.
- Selecting final price: take in consideration other factors that could affect the price
before setting the final price.
- Psychological pricing
- Influence of other marketing mix variables
- Company pricing policies
- Gain-and-risk-sharing pricing
- Impact of price on other parties
- Adapting the Price:
Price adjustment strategies: استراتيجيات تعديل الأسعار:
- Geographic pricing. التسعير الجغرافي.
- Discount and allowance pricing. الخصم والتسعير بدل.
- Promotional pricing. التسعير الترويجي.
- Discriminatory Pricing. التسعير التمييزي
- Segmented pricing. التسعير مجزأة.
- Psychological pricing. التسعير النفسي.
- Dynamic pricing. التسعير الديناميكي.
- International pricing. الأسعار الدولية.
1. Geographical Pricing:
§ Barter: the direct exchange of goods with no money and no third party involved.
§ Compensation deal: the seller receives some percentage of the payment in cash and the rest in products.
- Buyback arrangement: the seller sell a plant equipment or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment.
- Offset: the seller receives full payment in cash but agrees to spend a substantial amount of the money in that country within a stated time period.
البائع يتلقى المبلغ كاملا نقدا ولكن يوافق على إنفاق مبلغ كبير من المال في هذا البلد في غضون فترة زمنية المعلنة
Discount and allowance pricing: reduces prices to reward customer responses such as paying early or promoting the product.
- Quantity discount: discount for buying large quantity.
- Cash discount: discount for buying in cash within specific period at time
- Trade or functional discount: discount offered by a manufacturer to trade-channel members if they will before certain functions. (by promotion-storage).
- Seasonal discount: price reduction to those who buy out of season.
Allowance: an extra payment designed to gain reseller participation in special programs.
Promotional Pricing: I use the pricing as a tool of promotion.
- Loss-leader pricing: supermarkets and department stores often drop the price on well known brands to stimulate additional store traffic.
- Special-event pricing: sellers well establish special pricing in certain seasons to draw in more customers. تسعير للمناسبات: وضع أسعار جيدة في مواسم معينة لجذب المزيد من الزبائن
- Cash rebates: companies offer cash rebates to encourage purchase of the manufacturers products within a specified time period
- Low-interest financing: the company can offer customers low-interest financing.
- Longer payment terms: sellers especially mortgage banks and auto companies stretch loans over longer periods and thus lower the monthly payment.
- Warranties and service contracts: companies can promote sales by adding a free or low cost warranty or service contract.
- Psychological discounting: this strategy involves setting an artificially high price and then offering the product at substantial savings.
- Discriminatory Pricing: التسعير التمييزي
Price discrimination works when:
- Market segments show different intensities of demand.
- Consumers in lower-price segments cannot resell to higher-price segments.
- Competitors cannot undersell the firm in higher-price segments.
- Cost of segmenting and policing the market does not exceed extra revenue
Discriminatory Pricing Tactics:
- Customer segment pricing. تسعير حسب شريحة من العملاء
- Product-form pricing. تسعير حسب شكل المنتج
- Image pricingالتسعير حسب الصورة.
- Channel pricing. التسعير حسب القناة
- Location pricing. تسعير حسب الموقع
- Time pricing. التسعير حسب الوقت
product mix pricing strategies:
- Product line pricing. التسعير خط الانتاج.
- Optional – product pricing. اختياري -تسعير المنتجات.
- Captive – product pricing. أسيرة – تسعير المنتجات.
- By – product pricing. و- المنتج التسعير.
- Product bindle pricing. تسعير حزمة المنتج.
- Product line pricing: Companies normally develop product lines rather than single products and introduce price steps.
تسعير خط المنتج: الشركات عادة تطوير خطوط الإنتاج بدلا من منتج وحيد ويقدم خطوات السعر
- Optional feature pricing: Many companies offer optional products, features and service along with their main product.
تسعير المزايا الاختياري: العديد من الشركات تقدم منتجات وخدمات وميزات اختيارية جنبا إلى جنب مع المنتج الرئيسي.
- Captive product pricing: Some products require the use of ancillary or captive products.
تسعير المنتجات الأسيرة: تتطلب بعض المنتجات استخدام منتجات ثانوية
- Two part pricing product: Service firms often engage in two-part pricing consisting of affixed fee plus variable usage fee.
تسعير المنتج على جزئيين: غالبا ما تشارك شركات الخدمات في التسعير على جزئيين يتمثل في دفع رسم ثابت بالإضافة إلى رسوم استخدام متغير.
- By-product pricing: extract many products from the main product. Petroleum (extract many product with different prices).
- Product bundling: Sellers often bundle products and features.
Example (fast food and soft drink)
Initiating and Responding to Price Changes: Key Considerations:
- Initiating price cuts. الشروع في خفض الأسعار.
- Initiating price increases. بدء ارتفاع الأسعار.
- Reactions to price changes. ردود الفعل على تسعير التغييرات.
- Responding to competitor’s price changes. الاستجابة للتغيرات في أسعار المنافسين.
Initiating price cuts:
- Circumstances leading to price cuts: الظروف التي أدت إلى خفض الأسعار
- Excess plant capacity. طاقة المصنع الزائدة
- Declining market share. تراجع حصتها في السوق
- Attempt to dominate the market via lower costs. محاولة للسيطرة على السوق من خلال خفض التكاليف
- Price cutting traps: الفخاخ الأسعار القطع:
- Price/quality perceptions. السعر / التصورات جودة
- Low prices don’t create market loyalty. أسعار منخفضة لا تخلق الولاء السوق
- Competition may match or beat price cuts. المنافسة قد تتطابق أو ضرب خفض الأسعار
Initiating price increases: بدء ارتفاع الأسعار
- Circumstances leading to price increases: الظروف التي أدت إلى ارتفاع الأسعار
- Cost inflation. تضخم التكاليف
- Over demand. طلب عالي
- Methods of dealing with over demand:
- Delayed quotation pricing.
- Escalator clauses.
- Reduction of discounts.
Reactions to price changes:
- Firms must monitor both customer and competitor reactions
- Competitor reactions are common when: ردود فعل المنافس شائعة في الحالات التالية:
- Few firms offer the product. عدد قليل من الشركات توفر المنتج.
- The product is homogeneous.
- Buyers are highly informed.
Responding to competitor’s price changes. الاستجابة للتغيرات في أسعار المنافسين.
- The degree of product homogeneity affects how firms respond to price cuts initiated by the competition. درجة تجانس المنتج يؤثر على كيفية استجابة الشركات لخفض الأسعار التي بدأتها المنافسة
- Market leaders can respond to aggressive price cutting by smaller competitors in several ways. يمكن للقادة السوق تستجيب لقطع سعر العدوانية من قبل المنافسين أصغر في عدة طرق
- Market Leader can respond to competitor initiated price cuts in several ways: زعيم السوق يمكن الرد على منافس الشروع في خفض الأسعار في عدة طرق:
- Maintain price and profit margin (vulnerable). الحفاظ على السعر وهامش الربح (الضعيفة).
- Maintain price and add value. الحفاظ على سعر وقيمة مضافة.
- Reduce price (and cost). تخفيض السعر (والتكلفة).
- Increase price and improve quality (add new brand). زيادة الأسعار وتحسين الجودة (إضافة جديدة).
- Launch a low-price fighter line. إطلاق خط مقاتلة منخفضة السعر.
- Buyer reaction to pricing changes: المشتري رد فعل للتغيرات التسعير:
- Price increases (product is hot ‘new and high quality” and better made) (company is greedy.
- Price cuts (new models will be available) (models are not selling well) (quality issues).
Competitors reaction to price changes: المنافسين رد فعل لتغيرات الأسعار:
- Has competitor cut price? (Hold current prices and continue monitor compitor prices (No cut price, No affect in the market share). لديه منافس خفض الأسعار؟ (واعتصموا الأسعار الحالية ومواصلة أسعار رصد منافس (لا خفض الأسعار، لا يؤثر في حصة السوق).
- Reduce price, raise perceived value, improve quality and increase price (If competitor cut price and affect market share of company). خفض الأسعار، ورفع القيمة المتصورة، وتحسين الجودة وزيادة الأسعار (من منافس خفض الأسعار وتؤثر على حصتها في السوق من الشركة).
Ch. (10) Promotional MIX
- Marketing communication: the means by which firms attempted to inform, persuade, and remind consumers – directly (personal selling) or indirectly – about the products and brands that they sell.
الاتصالات التسويقية: تعني كيف تحاول أي شركة إعلام وإقناع وتذكير المستهلكين –بشكل مباشر (البيع الشخصي) أو بشكل غير مباشر -عن المنتجات والعلامات التجارية التي يبيعونها.
- Marketing communication is the same meaning of promotion
- Promotion Mix: is the specific blend at advertising, sales promotion, public relations, personal selling, and direct marketing tools that company uses to persuasively communicate customer value and build customer relationships.
Advertising: any paid form at non-personal presentation and promotion at idea, goods or services by an identified sponsor. (one way communication)
- الإعلان: أي عرض غير شخصي مدفوع وترويج لفكرة أو السلع أو الخدمات من قبل راعي محدد
Promotion: involves immediate incentive form a buyer (distributor or consumers) and involve disseminating information about the product.
- الترويج: ويشمل شكل حافزا فوريا المشتري (الموزع أو المستهلكين) وتشمل نشر المعلومات عن هذا المنتج
Sales promotion: short-term incentives to encourage trial or purchase.
- ترويج المبيعات: الحوافز على المدى القصير لتشجيع محاكمة أو الشراء
Public relations: protect and or promote company’s image products.
- العلاقات العامة: حماية أو الترويج لصورة منتجات الشركة.
- Personal selling: face to face communication, personal presentation, most of (B2B) used the tool.
- Advertising: any paid form at non-personal presentation and promotion at idea, goods or services by an identified sponsor. (one way communication)
الإعلان: أي عرض غير شخصي مدفوع وترويج لفكرة أو السلع أو الخدمات من قبل راعي محدد
- Any paid form that mean: sponsor is controlling everything of the message that he is going to send. (What type of message, what I am going to say, and how I am going to say it, and the time when I am going to say it).
أي شكل مدفوع يعني أن: الراعي هو المسيطر على كل شيء من الرسالة التي يريد ارسالها (ما نوع الرسالة، ما انا ذاهب الى القول، وكيف أنا ذاهب لأقول ذلك، والوقت. أنا عندما أريد أن أقول ذلك)
Ways to Handle advertising:
- Sales departments (in small companies).
- Advertising departments (in larger companies) e.g. (coca cola…).
- Advertising agency (firm that assists companies in planning, preparing, implementing and evaluating their advertising programs).
Five M’s of advertising campaign:
- Mission: what are the advertising objective? المهمة: ما هي الهدف الإعلان؟
- Money: how much can be spend? المال: كم يمكن أن تدفع؟
- Message: what message should send? رسالة: ما هي الرسالة التي يجب إرسالها؟
- Media: what media should be used? وسائل الاعلام: ما وسائل الإعلام التي يجب استخدامها؟
- Measurement: how should the results be evaluated? القياس: كيف ينبغي أن يتم تقييم النتائج؟
Major decisions in advertising: (four important decisions):
- Objectives setting (inform, persuade, remind).
- Budget decisions.
- Developing advertising strategy.
- Campaign evaluation.
Advertising objective: is a specific communication task and achievement level to be accomplished with a specific audience in specific period of time.
- Informative advertising: is used when introducing a new product category: the objective is to build primary demand. (introduction phase).or used when introducing exiting product with new uses and development
- Persuasive advertising: is important with increased competition to build selective demand. (growth phase).
- Reminder advertising: is important with mature products to help maintain customer relationships and keep customers thinning about the product (mature phase)
- Reinforcement advertising: aims to convince current purchases that they made the right choice.
Informative advertising: (when we use it) (why we use it (
- Building a company image. بناء صورة الشركة.
- Suggesting new uses for product. اقتراح استخدامات جديدة للمنتج.
- Describe available services. وصف الخدمات المتاحة.
- Correcting false impression. تصحيح الانطباع الخاطئ.
- Explaining how the product is work. شرح كيف أن المنتج هو العمل.
- Telling about new product. محدد حول المنتج الجديد.
- Reducing consumer fears. الحد من مخاوف المستهلكين.
- Informing at a price change. إعلام في تغير الأسعار.
Persuasive objective: when to use (or why we use it):
- Persuading customer to receive a sales call إقناع العملاء لتلقي مكالمة مبيعات
- Persuading customer to purchase now. إقناع العملاء للشراء الآن.
- Encouraging switching to your brand تشجيع التحول إلى العلامة التجارية الخاصة بك
- Building a brand preference. بناء تفضيل العلامة التجارية.
Reminding objective: when and why to use:
- Maintaining its top-of-mind awareness (positioning).
- Keeping it in customer’s mind during off-seasons. أخذ ذلك في الاعتبار العملاء خلال خارج المواسم.
- Reminding consumer that the product may be needed in the near future
- Remaining consumer where to buy it.
Deciding on Budget:
- How much to advertise?
- How much to invest in advertisements?
- What should be the size at advertising budget?
Invest in advertising to:
- Make product popular
- Increase sales.
- Advertising budget: an estimated amount an organization decides to invest in it’s promotional expenditures over a period of time.
Advertising budget method:
- Affordable approach. أسلوب الأسعار المعقولة
- Percentage at sales. نسبة مئوية من المبيعات
- Competitive parity. التكافؤ مع المنافسين
- Objective and task. الهدف والمهمة
The approach consists of three steps
- Defining the communications objectives that are to be accomplished
- Determining the specific strategies and tasks needed to attain them.
- Estimating the costs associated with performance of these strategies and tasks. The total budget is based on the accumulation of these costs.
Advertising budget factors:
- Stage in the product life cycle. (Introduction, huge, decline, low phase).
New products need large advertising budgets to build awareness; Established brands usually are supported with lower advertising budgets.
- Market share and consumer base. (large market share – less budget)
- Competitor and clutter. (In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard Advertising).
- Frequency (Number at repetitions to put brand message of advertising budget.)التكرار
- Product substitutability. (More substitute – more advertise – more budget). إمكانية الاستبدال
Developing advertising strategy:
advertising strategy: strategy by which the company achieve its advertising objectives and consists of:
- Creating advertising message.
- Selecting advertising media.
- advertising strategy: strategy by which the company achieve its advertising objectives and consists of:
creating advertising message:
- Message strategy: (The general message that will be communicated to consumers which Identifies consumer benefits)
Creative concept: "Message Evaluation and selection“
- Is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign.
Characteristics of the appeals include:
- Meaningfulلها معنى
- Believableقابلة للتصديق
- Distinctiveمنافسة (مميزة)
Typical message execution styles: أنماط تنفيذ رسالة نموذجية
- Fantasy. خيال.
- Mood or image. المزاج أو صورة.
- Slice at life. شريحة في الحياة.
- Personality symbol. رمز الشخصية.
- Life style. أسلوب الحياة.
- Testimonial evidence. دليل التزكية.
- Musical. الموسيقية.
- Technical expertise.
- Typical message execution styles: أنماط تنفيذ رسالة نموذجية
Selecting advertising media (steps 5):
- Decide on reach, frequency, and impact.
- Choosing among major media types.
- Selecting specific media vehicles.
- Deciding of media timing.
- Deciding on geographical media allocation.
Step (1): Decide on reach, frequency, and impact:
- Reach (R): the number of different persons or households exposed to a particular media schedule at least once during a specified time period
الوصول: عدد الأشخاص أو الأسر التي ستتعرض لوسيلة إعلامية معينة على الأقل مرة واحدة في دورة زمنية محددة
Richness: important when:
- New product. منتج جديد.
- Trend extensions frequently. ملحقات اتجاه كثير من الأحيان.
- Purchased brand. تم شراء العلامة التجارية.
- Frequency (F): number at times within the specified time period that an average person or how hold is exposed to the message.
التكرار: عدد أحيانا ضمن فترة زمنية محددة على أن الشخص العادي أو كيف تتعرض عقد على الرسالة
Frequency: important when:
- High competition. ارتفاع المنافسة.
- Consumer resistance. مقاومة المستهلك.
- Complex story to tell.
- Impact ( I ): the qualitative value at an exposure through a given medium.
التأثير: قيمة نوعية في التعرض من خلال وسيط معين
Step (2): Choosing among major media:
- Newspapers. الصحف.
- Television. التلفزيون.
- Magazine. مجلة.
- Fellow pages. صفحات زميل.
- Direct mail. البريد المباشر.
- Telephone. هاتف.
يجب على الشركة أن تحلل جميع هذه الأدوات (مزايا وعيوب) ومن ثم اختيار أفضل أداة
- Place Advertising: is a broad category including many creative and unexpected forms to grab consumer's attention.
: هي مجموعة واسعة بما في ذلك العديد من الأشكال الإبداعية وغير متوقعة للاستيلاء على المستهلكين الاهتمام
• Billboards: Digitally produced graphics , backlighting, sounds , movement , and unusual—even 3D—images.
• Public spaces : Advertisers have been increasingly placing ads in unconventional places such as on movie screens, on airplanes, and in fitness clubs.
• Product placement : An advertising technique used by companies to promote their products through a non-traditional advertising technique, usually through appearances in film, television, or other media.
• Point-of-purchase : Marketing materials or advertising placed next to the merchandise it is promoting. These items are generally located at the checkout area or other location where the purchase decision is made.
- Step (3): Selecting Specific Media Vehicles: تحديد قنوات الإعلام الخاصة
(عند الاختيار للوسيلة المناسبة للإعلان تأخذ بعين الاعتبار سمات الزبون وخصائص المنتج وطبيعة الرسالة)
- Step (4): Deciding on Media Timing:
- Step (5): Deciding on geographical Media allocation
- Advertising Evaluation: two objective at adv. Company
يمكن القيام بحملات دعائية أكلف بها ولكن لا تجدي نفعاً بسبب:
- Bad quality.
- Bad services.
- High pricing.
- Public relations: building good relations with company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling unfavorable rumors, stories and events.
العلاقات العامة: بناء علاقات جيدة مع مختلف فئات جمهور الشركة من خلال الحصول على دعاية مواتية، وبناء صورة جيدة للشركة، والتعامل مع الشائعات والقصص والأحداث غير المواتية.
- Public relations: protect and or promote company’s image products.
Many factor in manager public relation:هناك عدة عوامل يجب أن تتوفر في مدير العلاقات العامة
- Writing skills. مهارات الكتابة
- Gives speech.ألقاء الخطاب
- Media relation.علاقته مع وسائل الاعلام
- PR major functions:
1. Press relations or press agency involves the creation and placing of newsworthy information to attract attention to a person, product, or service. علاقات مع الصحافة أو وكالة الصحافة ينطوي على خلق ووضع المعلومات خبرية لجذب الانتباه إلى شخص أو منتج أو خدمة.
2. Product publicity involves publicizing specific products. الدعاية المنتج ينطوي يروج لمنتجات معينة.
3. Public affairs involves building and maintaining national or local community relations. الشؤون العامة ينطوي على بناء والحفاظ على العلاقات الوطنية أو المحلية المجتمع.
4. Lobbying involves building and maintaining relations with legislators and government officials to influence legislation and regulation. ويشمل الضغط بناء والحفاظ على العلاقات مع المشرعين والمسؤولين الحكوميين للتأثير على التشريعات واللوائح.
5. Investor relations involves maintaining relationships with shareholders and others in the financial community. علاقات المستثمرين ينطوي على الحفاظ على العلاقات مع المساهمين وغيرهم في المجتمع المالي.
6. Development involves public relations with donors or members of nonprofit organizations to gain financial or volunteer support. تطوير ينطوي العلاقات العامة مع الجهات المانحة أو أعضاء في منظمات غير ربحية لكسب الدعم المالي أو التطوع.
PR Major decisions:
- Setting PR objectives. أهداف إعداد العلاقات العامة.
- Choosing the PR messages. اختيار رسائل العلاقات العامة.
- Implementing PR plan. خطة التنفيذية للعلاقات العامة.
- Evaluating PR results. تقييم النتائج العلاقات العامة.
- Publications. المنشورات.
- Sponsorships. الرعايات.
- Speeches. خطب.
- Identification media. تحديد وسائل الاعلام.
- Public service activities. أنشطة الخدمة العامة.