What is markeitng Essay

This essay has a total of 6763 words and 49 pages.

what is markeitng



1-identifing the wants and needs of the consumer and coordinately create products to
satisfy these needs profitably and efficiently.

2- process of planning and executing the conception, pricing, promotion, place
(distribution), ideas, goals and services to create exchanges that satisfy objectives.


PHASE 1: This was the production-oriented period. There were few products and many
customers (demand * supply). As a result the focus of the companies was on the
transportation and distribution.

PHASE 2: This was the sales oriented period (50 years ago). The principle of this period
was “produce then sell” or we can say, “sell no matter what. So in this environment the
ads were lying.

PHASE 3: This was the marketing oriented period. As the ideology of this period was ask
the main question first which is “WHAT DO THE PEOPLE WANT?” This way is chartered by being
easy and cheaper. This was started by “GENERAL ELECTRIC COMPANY”.

1. To discover, locate, measure. This means that the marketing dept. has to discover what
the people want and how they want it and how much they want it (demand)

2. To interpret this information for management, so they can produce products. This
means mixing the information gathered in task 1 and give a result, either produces or not.

3. Develop and implement a plan to make these products available. I think that this is the
most important this about marketing as a good marketing plan means that tasks 1&2 are made


The big question here is “WHAT IS Competition?” Well I think that whenever there is more
than one person wants the same thing there is competition. Completion is two types PRODUCT
completion and CATECORY competition. Product competition is the competition that occurs
between substituted products. Category competition is the competition that occurs between
different products but targets the same people.

Segmentation is the process that divides the market in to smaller units that the company
can survey effectively or we can say that it is grouping the market in to TARGET ADUIENCE
with similar characters and needs. This part is important because it makes focusing on the
people that the company rely benefit from or target on.

This were the 80%-20% rule jumps in to the subject as the company’s profit come from 20%
of the target audience, so it is more correct to focus on these people and not loosing
them, this is easy with the right segmentation.

An advantage is the difference between to things. So the competitive advantage is the
difference between to competitive products. I think that this advantage is the source of
the commerce as trade is based on advantages. So to make a position to your product you
must have an advantage. Competitive advantage is two types price & quality. Price
advantage is delivering the same quality at a lower cost. Quality advantage is delivering
a better quality at the same cost. The quality advantage is also called the marketing

Positioning is not a thing you do with your product it is a thing you do with you consumer
mind. Positioning is the space or the image your product occupies in the prospect’s mind.
It can also be defined as “how does the consumer see our product”. The positioning gives
the product its personality and its image.

A feature is a character while the benefit is the added value that is obtained on using a
product. So it is not correct to try to deliver a massage that is feature oriented, as you
rely sell the benefit not the feature. As an example when you sell a lady an eye shadow,
you are not selling the chemical components, but you are selling the hope of being
beautiful to this lady.

The meaning of the word is when you feed you must have a feedback. This is the same as
when you feed the market with product do not forget to have your feedback because it is a
tool of indication of corrections. As many mangers forget this feedback, it is called THE
FORGOTTEN ART. It also means the response or reaction from the target audience, which is
made by research.

Some call the mix “THE 4 P’S” and some call it “THE 6 P’S”. This happened due to the
difference of looking to importance between marketers.

v PEOPLE: who? It means to whom we are talking.
v PRODUCT: what? It means what are we going to give.
v PLACE: where? It means where are we going to give. (Distribution)
v PACKAGE: what?
v PRICE: How much does our product should cost?
v PROMOTION: Is the element that involves policies and procedures related to personal
selling, advertising, publicity, and budget and trade promotion.}?


1. CUSTMER: find their needs – listen to them – get their input early.
2. COMMUNICATION: thru promotion you can make the consumer know your product.
3. CINVENIENCE: available – package
4. COST: price – time – usage
5. COMMUNITY: impact on the community (public relation)
The 5 c’s are what we can say, the equation of marketing success. You will be marketing
successful if you: find your consumers, detect their needs, closed the loop and listen to
them, communicated with them, made your product convenient to them, at a suitable cost and
effects the community with the correct way.

COST=PRICE, TIME, USAGE, ………………………….

It means the different types of markets:

We can say that this is the end-user market. People in this market purchase final products to use.

The people in this market are companies that buy the final products of another company to
make process on it to produce another product. Example for that is a company that produces
car tiers buys rubber from another company that produces rubber. In this type of markets
the retail selling is not effective as the personal selling and it is almost the only way.
This market is also called the bissnsee-to-bissness market.

This market consists of stores that buy to sell, to consumer or other stores. This chain
varies from one product to another.

This market resembles the industrial market, but it has it’s own rules and it is very
sensitive market. Buyers in this market are governments so the products are used in a
governmental usage.

Products here are invisible, example: airlines – hotels – accountants. The most, hard part
here is measuring the quality level. This market is increasing in competition.

This market consists of companies that do not aim to making profit. Example: hospitals – educational institute.

This market consists of all the above kinds of markets, but out side your home country or over seas.

Market segmentation


In that way it allows you to focus on your target audience (80%-20%).

1. The company conducts a situation analysis.
2. The company identifies marketing opportunities (niche).
3. The company estimates the market potential.
4. The company makes a marketing research and evaluate competition.
5. The company segments the market A-Identifying the segment. B-Target the segment.
6. The company develops a marketing mix (the p’s).
7. Evaluate results and implementation.

Identifying the segment:
1. GEOGRAPHICAL SEGMENTATION: This is the simplest way to identify segments. People are
segmented thru their geographical position. Example: people in Alex. – In Cairo.

2. DEMOGRAPHIC SEGMENTATION: The study of numerical characteristics of population.
Example: sex-age-religion-education-occupation-income-…… It means any character that can
be measured.

3. BEHAVIORESTIC SEGMENTATION: It is dividing people according to their use of the product.
a. Purchase occasion: Buyers are distinguished by when do they use the product. Example:
traveling-making party –every day.

b. BENEFITS: Sought what kind of benefits people are looking for. Example: rebox(comfort)-nesscafe(pleasure)
c. USER STATUS: People are gathered according to their type as users. Example: old users-new users-potential users.
d. USAGE RATE: Defines consumers according to their rate of usage. Example: heavy
user-moderate users-light users. This type of segmentation is also called the volume

e. BRAND’S PURCHASEST: People are divided according to what brand do they use or buy. Example: the lipton’s-the rebox’s.

4-PSYCHOGRAPHIC SEGMENTATIOM: In that way we segments the market on the basis of the
psychological make up of the consumer, such as personality, life style, attitude.

1. INNOVATORS: Ready to try new ideas and willing to risk a bad experience.
2. EARLY ADOPTERS: They are people that other people refer to. They are careful and successful innovators.
3. EARLY MAJORITY: They are people that think then buy.
4. LATE MAJORITY: They are people that buy after all people had bought.
5. LAGGARDS: They are people that are past oriented, very late adaptation. Example: people
that did not buy video player till now.


1. SIMILARTY OF NEEDS: No matter what you use to segment the market, people in the segment need to have similar needs.
2. UNMET NEEDS: You must target a particular segment who’s needs are not met by a competitor.(MARKETING NICH)
3. THE SAIZE OF THE SEGMENT: The size of the segment does link to profitability but not
all the time. A small segment can be highly profitable as long as they can establish a
very unique competitive advantage. Example the JAGWAR segment. (this kind of segment must
be sustainable)

4. GROWTH POTENIAL: We must ask our selves here does this segment likely to attract more customers in the future or not.
5. ACCESSIBILITY: Does the segment accessible. Can I reach my target audience thru media
or some other means. If a segment does not have distinctive demographic characteristics
then accessibility would be difficult.



v CONSENTRATED SEGMENTATION: Smaller companies with limited resources can only serve one segment with one product.
v MARKET SEGMENT EXPANSION: As well as the segment have a well defined need for the same
product then company can expend the segment. Example: the Kellogg serial (from children to
adults), j&j shampoo (no more tiers), secret deodorant (from women to men)

v PRODUCT-LINE SEGMENTATION: In this case you serve one segment with many products.
Example: el shamadan (many products are delivered to children)

v DIFFERNTIATED SEGMENTATION: In this case you deliver many products to several segments.
This is mostly done with big companies as the marketing cost (ads, promotion,…) are so
high. Example: P&G shampoo (h&d for dandruff-ponten for female-pert plus for youth)

DEFINETION: A bundle of benefits and attributes designed to satisfy customer’s needs.
Any product consists of 3 dimensions:
1. Core product: The benefits.
2. Tangible product: The futures.
3. Augmented product: Delivery, credit, service, added value.

PRODUCT DEFFERENTIATION: It means how is one product different from another product.
1. Perceptible difference: This kind of difference is very clear and obvious.
2. In perceptible difference: This kind of difference is not clear or not ready apparent.
Example: cigarettes-car engines.

3. Induced difference: This kind of difference is created by advertising, between similar
products. Example: mobile oil and shell oil both are gasoline, siwa water and barka
water both are mineral water.

PRODUCT CLASSIFICATION: There are two ways to classify products.
1. Degree of tangibility: Products are classified by their degree of tangibility.
Starting from the most tangible, passing by moderate tangibility, ending by the least
tangible. Most and moderate tangibility are sub-classified in to durable and non durable
as shown in the diagram.

air conditioning foods service

Durable goods: Products that are used along a long interval of time. Consumer needs a lot
of thinking and comparison on purchase, so personal selling is effective in this case.
Example: air conditioning devices.

Non- durable goods Products that are used or consumed on a short interval of time. This
kind does not need a lot of thinking and comparison from the consumer on purchase, so
advertising is effective in this case. Non- durable goods are sub divided in to packaged
goods like food and sun dry paste and non- packaged goods like bread and gasoline.

2. Buyer: This classification is made by the one who buys the product. Example: personal
products which are bought by consumers- industrial products which are bought factories.

WHAT IS A NEW PRODUCT?: a new product is

Invention: Creating a product from no where. Example: sony invented the cd rom.
Innovation: Development of an existing idea and it is done by two ways.
v New product duplication: A product that is known to the market but new to the company.
Example: Panasonic producing cd roms.

v Product extant ion: A product that is known to the company but new to the market. Example: coca cola 2 liter.

v Starting to produce a product. (new product duplication)
v Research and develop a new product. (invention)
v Same product and different segment. (product expansion)
v Revise or add a product ( product expansion).
v Repositioning (change image).


BRAND: A name or a symbol that represents a product.

PRODUCT CATEGOTY: The category of a product is the generic class to which the brand
belongs. Example: shampoo-asprin-trencolizers.

PRODUCT LINE; In the books it refers to a line of offerings with in a product category.
But in the practical life it refers to al the products the company produce.

1. The consumers ’s satisfaction degree. It means to what degree the product matches the consumers needs.
2. The existence of expertise in the company or what is called the know-how.
3. The product has established competitive advantage.
4. An organizational environment that encourages entrepreneur ship.
5. The established new product development process.

1. The poor marketing research and analysis, or the misreading of the consumers needs.
2. The poor product positioning.
3. The poor product performance or quality.
4. The poor competition analysis.

1. PRODUCT SAFTY: Control and expenses for safety. Example: food, children toys.
2. PRODUCT PREFOMANCE: Measuring the product performance, to be sure that the products are
up to standard through quality control. We can say that there is a direct link between
performance and profitability.

3. PRODUCT INFORMATION: Example: writing the product’s ingredients on the package.

1. CONTAINTMENT AND PROTECTION: This gives the product its safety and makes it possible to take the product home.
2. CONSUMER APPEAL: Example: shape-size-color-reusable containers (sales promotion ex.la
vach ceree cup). This appeal could be your competitive advantage in some cases. Example:
milk-mineral water.

3. IDENTIFICATION: This gives the product its personality. Example: trade mark-company
name-brand name. The examples give the product its visibility and belonging in the out

4. CONVENIANCE: The product packaging must survive the storage and shipping. Exemple : milk cartons.
5. COMMUNICATE INFORMATION: This gives the consumer the way or directions using the product. Example: macaroni and rice.


The life cycle of a product consists of four phases or stages. Introduction, growth,
maturity and decline. The marketing strategy to be implemented depends on the phase the
product is in. this life cycle helps to understand the position of products more clearly.

1-INTRODUCTION PHASE: I n this phase the new product is introduced in to the market for
the first time. The company aims to create awareness and simulating the primary demand.
Losses occur in this phase.

Phase strategy:
v Advertising role is to stress on information about the product and what does it do.
v Promotion is directed to trade to increase distributors and retailers to carry the product to the market.
The goal of the phase: Creating awareness or BRAND ESTABLISHMENT and building a
distributing network to make the product available to the consumer.

2-GROWTH PHASE: In this phase the sales volume increase rapidly and the product becomes
profitable. The demand consists of first purchase consumers and repurchase consumer. The
repurchase consumers make up the sustainability of the product. Also they are the link to
the maturity phase. The competition emerges in this phase.

The goal of the phase: The goal in the growth phase is the BRAND REINFORCEMENT
(repurchase). The company aims to reinforce the brand’s position by getting the consumer
who had tried the product to repurchase it and continue to attract new users.

3-MATURUTY PHASE: In this phase the industrial sales reaches a plateau market saturated.
The brand here attracts few new consumers and relives on repurchases. The competition
increases and wars between different products starts. Profits diminish and increasing the
company sales is on the expense of the competitive sales. In this phase the product
differentiation and competitive advantage are very important.

The goal of the phase: Brand revitalization, which is the constant try to counter a decreasing product or market share.

Strategies to be implemented in the maturity phase
1. Market expansion: It means finding new users and new uses. Example for new users for
the product: J&J [from children to adults]-COMPAG [from bissness to bissness computers to
home computers]-secret deo. [From women to men]. Example for new uses for the product: ARM
& HAMMER BAKING SODA [cooking-refrigerator-polish silver-cleaning carpets-litter

2. Product modification: Is an attempt to revitalize a product by changing it some way to
increase demand (new and improved). Example for that: GOHAINA and its plastic cover.

3. Brand repositioning: It means replacing or re segmenting. Example for that: JCPENNY AND OMAR AFENDY.

4-THE DECLINE PHASE: The product enters this phase by the cause of a change in the
consumer tastes or the change of technology. Example: typewriters-camera-vcrs&cassets (are
on the way). The sales and profits decreases, that might happen because the hard
competition. The company must to choose between two ways.

1. Deleting the brand
2. A- BRAND HARVESTING: It means decreasing the costs to almost zero, and allowing the
brand to count surviving on its own. Example the drugs companies.

B- BRAND REVIVAL: Brings a brand back to life depending on the brand’s name strength. Example for that is BARBIE.

It is the next p of the 6 p’s that makes the marketing mix. Simply it answers the question
how does a producer or a manufacturer get his product to the consumer?}.

There are two main ways to distribute your product, direct marketing and indirect
marketing. When distributing a product through direct marketing, the producer sell
directly to the consumer, while distributing a product through indirect marketing, the
producer uses intermediates to deliver the product.

Definition of a distribution channel
A distribution channel is composed of all firms or individuals that take title or assist
on taking title of a product, as it moves from the producer to the consumer.

Types of intermediates

1. RETAILERS: they sell to final consumer, used mostly by producers of fast consumer goods.
2. WHOLESALERS: they buy (take title) and resell products to other wholesaler or a
retailer. They are also called distributors.

3. AGENTS: they represent the producer, they do not take title, they get a commission, and
they sell on behalf of the producer in a specific geographic area.

4. BROKER: they are the link between the buyer and the seller, with out representing any
of them. They do not take title, they do not have a continuing relationship with the sell,
and they get a commission.

Why we use a middle man?
1. Transactional function: on making a buy and a sell, the middleman takes risks of
stoking the products in an inventory (administration function).

2. Logistical function: the requiring of assembly, storage to go to retail shelf.
Continues for 25 more pages >>

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