E-MAJALAH ETIKA

TOPIC 3
MARKETING CONCEPTS AND
TRENDS

PN FARIHAN ELYANA BINTI ZAHARI

SUB TOPIC

3.1 Understand marketing concept
3.2 Determine marketing environment
3.3 Understand internet marketing
3.4 Explain channels of distribution

Understand marketing concept

Basic Concepts of Marketing

Customer need, wants Products, services and Customer value and Exchanges and Markets
and demands experiences satisfaction relationship
• Managing markets to
• Needs: human needs • Needs and wans are • Customer value: • Two parties gain bring about profitable
• Wants: desired and fulfilled through difference between something. Must customer
not essential for marketing offer. value that customers fulfill conditions: relationship.
living. gain from owning and must participate, must
• Demands: exists using product and have something value
when there is buying cost to obtain the to the other, must
power. Who can product. want to deal, must be
afford to purchase • Customer free to accept or
satisfaction: reject, must be able to
expectation matches communicate and
with the deliver.
performances of
product or services
provided.

Explain the marketing functions.

Marketing function is a role which helps a company to identify and source potentially successful products
for the marketplace they operate on and then promote them by differentiating them from similar products.
It is a vital part of any company



List the technologies that support the marketing function

Analytic
Marketing is at an inflection point where the performance of channels, technologies, ads, offers –
everything — are trackable like never before.
Tools; Google Analytics, Adobe Analytics

Analytic

Conversion optimization is the practice of getting people who come to your website (or wherever you are
engaging with them) to do what you want them to do as much as possible, and usually that involves filling
out a form so that at the very least you have their email address. Tools; Landing Page Grader, Optimzely ,
Unbounce , ion interactive

List the technologies that support the marketing function

Search Engine Marketing
Search Engine Marketing includes both paid search ads, like Google AdWords, and search engine
optimization (SEO) to try to get high organic search listings for your website content. Tools; Google
AdWords, Bing and Yahoo

Email
Email marketing is the 800-pound gorilla of digital marketing. Tools; MailChimp, Constant Contact

List the technologies that support the marketing function

Remarketing
You’ve experienced remarketing: it’s when you go to a website and then, when you leave that site, their
ads appear on other sites that you visit. Tools; Google AdWords remarketing, AdRoll, Perfect
Audience (from Marin Software)

Mobile

Half of emails are now opened on smartphones, and soon half of search will be done on smartphones, so all
websites need to be mobile friendly.
The most common technique for making a mobile-ready website is to use responsive design, which
automatically resizes the website to fit the device on which it’s being viewed.

List the technologies that support the marketing function

Marketing Automation
Marketing automation brings it all together. It is a terrific technology that includes analytics, online forms,
tracking what people do when they come to your website, personalizing website content, managing email
campaigns, facilitating the alignment of sales and marketing through lead scoring and automated alerts to
sales people, informing these activities with data from your CRM and third party sources, and more

Explain the marketing mix: product, price, promotion and
place.

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or
product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place.
However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning,
People and even Politics as vital mix elements.
the way in which you take a new product or service to market. It helps you to define your marketing
options in terms of price, product, promotion, and place so that your offering meets a specific customer
need or demand
All the elements of the marketing mix influence each other. They make up the business plan for a company
and handled right, can give it great success. But handled wrong and the business could take years to
recover. The marketing mix needs a lot of understanding, market research and consultation with several
people, from users to trade to manufacturing and several others

MARKETING MIX : PRODUCT

refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise
even the best work on the other elements of the marketing mix won't do any good.

Not only physical but also package, warranty, after-sales services, brand name etc.

Customer buy not only for benefits but also about status, quality and reputation.

Brand • Use symbols to communicate the qualities of product: name,
term, sign, symbol or design
Quality
• Consistency and freedom from defects
Packaging
• Attractive, displays the brand name and identifies features and
Ease of use benefits.
Differentiation
• Good packaging for customer to use
Safety
Labelling • Creation existing attract consumer

• Do not pose an unreasonable risk for injury

• For identifying, grading, describing or promote

MARKETING MIX : PLACE

refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to
buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right
location. In fact, the mantra of a successful retail business is 'location, location, location'.

Strategy concerned with making products available when and where customers want.

All business activities concerned with storing and transporting raw materials or finished product.

Manufacturer -----> Customer

• Direct marketing channel.
• Example: tailors, restaurants

Manufacturer -----> Retailer ---> Customer

• Retailer depend on coverage area.
• Example: furniture, hand phone

Manufacturer -----> Wholesaler ---> Customer

• Scale of operation, contacts, experiences and specialization.
• Example: Mydin, Tesco

Manufacturer -----> Wholesaler ---> Retailer(agents) ---> Customer

• Two intermediary level. Manufacturer sell in large quantities.
• Example : selling certain product.

MARKETING MIX : PROMOTION

this refers to all the activities undertaken to make the product or service known to the user and trade. This
can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It
can also include consumer schemes, direct marketing, contests and prizes.

To educate, inform, persuade and remind the customers of benefits that the organization is offering.

Advertising • paid to persuade or inform potential buyer.
• Printed media or broadcast media
Sales promotion
Personal selling • One time direct . Offer short-term incentive
Public relation
• Order processing and creative selling
• All communication effort direct.
• Example: flyers, pamphlets and business card

PRICING

What a buyer must have to give to obtain product.

Cost based

• Total cost of product plus mark up.

Value based

• Customer’s perception of the value. Willing to pay

Competition based

• Benchmark competitor

External factors

• Based on economic conditions, government regulations, social concern and social groups.

Determine marketing environment

Marketing Environment

The Marketing Environment includes the Internal factors (employees, customers, shareholders, retailers
& distributors, etc.) and the External factors( political, legal, social, technological, economic) that surround
the business and influence its marketing operations
the combination of external and internal factors and forces which affect the company's ability to establish a
relationship and serve its customers. The marketing environment of a business consists of an internal and
an external environment

Internal Environment

The Internal Marketing Environment includes all the factors that are within the organization and affects the
overall business operations. These factors include labor, inventory, company policy, logistics, budget,
capital assets, etc. which are a part of the organization and affects the marketing decision and its
relationship with the customers. These factors can be controlled by the firm.

MARKETING ENVIRONMENT

MICROENVIRONMENT MACROENVIRONMENT

company Economic

Suppliers Demographic

Intermediaries Natural

Customers Technological

Competitors Political

The public Cultural

microenvironment : the company,
suppliers, marketing intermediaries, customers,
competitors and publics.

The Micro Marketing Environment includes all those factors that are closely associated with the operations
of the business and influences its functioning. The microenvironment factors include customers,
employees, suppliers, retailers & distributors, shareholders, Competitors, Government and General Public.
These factors are controllable to some extent.

MICROENVIRONMENT - COMPANY

Marketers work with all levels of managements
Must work closely with other company
Work harmoniously

MICROENVIRONMENT - SUPPLIERS

Make sure suppliers provide the raw materials according to schedule.
Supply shortage or delay can affect sales

MICROENVIRONMENT -
INTERMEDIARIES

Helps the company to promote, sell and distribute goods to final buyers:

Resellers: help to find customer or make sales.
Physical distribution firms: help company to stock and move good from origin to destinations.
Marketing services agencies: help company to target and promote product to right market. Creating
quality services and price.
Financial intermediaries: bank and credit companies.

MICROENVIRONMENT - CUSTOMERS

Consumer market : individual household who buy goods and services for their own personal
consumption.
Business market: firm that buy goods/services for further processing or use in their process.
Reseller market: buy to resell them
Government market : to render public services that really needs by community
International market : consist buyer in other countries.

MICROENVIRONMENT - COMPETITORS

Offering strongly against dominant companies.

MICROENVIRONMENT – THE PUBLIC

Actual / potentials:

Financial public – groups that influence the company ability to obtain fund such as bank.
Media public – who carry news features and editorial opinion such as newspapers and television stations.
Government public – organizations must take into account the government development.
Citizen action public – public relation department to keep in touch with customer
Local public – neighbourhood residents and community. Such as Rukun Tetangga
General public – concern with general public attitude toward product and activities.to build good image
Internal public – include workers, managers and boards of directors.

macro environment : demographic,
economic, natural, technological, political and
cultural

MACROENVIRONMENT - DEMOGRAPHIC

Set of demographic to segment their target market.
Example:

Age
Gender
Income level
Location

MACROENVIRONMENT - ECONOMIC

Factors that affect consumer purchasing power and spending pattern.
Income rises, consumers will continue to demand quality products and better services.

MACROENVIRONMENT - NATURAL

Natural resources which use as input in marketing activities.
Shortage of natural resources as raw material can affect production activities.
Protection of natural environment can create large market for pollution products.

MACROENVIRONMENT - TECHNOLOGY

New technologies can create new markets and opportunities.

MACROENVIRONMENT - POLITICAL

Government develops public policy to guide business.
In Malaysia, Department of Domestic Trade and Consumer Affair fixes price of basic essential.

MACROENVIRONMENT - CULTURAL

Society basic values, perceptions and behaviour.
Core belief and values passed from parents to children and reinforced in school.

Importance of Marketing Environment

Essential for planning

• An understanding of the external and internal environment is essential for planning for the future. A marketer needs to be fully aware of
the current scenario, dynamism, and future predictions of the marketing environment if he wants his plans to succeed

Understanding Customers

• Thorough knowledge of the marketing environment helps marketers acknowledge and predict what the customer actually wants.
In-depth analysis of the marketing environment reduces (and even removes) the noise between the marketer and customers and helps the
marketer to understand consumer behaviour better

Tapping Trends

• Breaking into new markets and capitalizing on new trends requires a lot of insight about the marketing environment. The marketer needs
to research about every aspect of the environment to create a foolproof plan.

Threats and Opportunities

• Sound knowledge of the market environment often gives a first-mover advantage to the marketer as he makes sure that his business is
safe from future threats and taps the future opportunities.

Understanding the Competitors

• Every niche has different players fighting for the same spot. A better understanding of the marketing environment allows the marketer to
understand more about the competitions and about what advantages do the competitors have over his business and vice versa

Understand internet marketing

Internet Marketing

Internet Marketing (also known as emarketing, web marketing, or digital marketing) is an all-inclusive
term for marketing products and/or services online – and like many all-inclusive terms, internet marketing
means different things to different people.
While the obvious purpose of internet marketing is to sell goods, services or advertising over the internet,
it's not the only purpose a business using internet marketing may have; a company may be marketing
online to communicate a message about itself (building its brand) or to conduct research. Online marketing
can be a very effective way to identify a target market or discover a marketing segment's wants and needs.
(Learn more about conducting market research).

Example internet marketing

1. Website design strategies
2. Search engine optimization and search engine submission
3. Online promotions
4. Reciprocal linking
5. Email marketing
6. Social media
7. Blogging
8. Digital advertising
9. Article marketing
10. Affiliate programs
11. Video/Podcasting

Identify the opportunities and
challenges in e-marketing and

social media

Explain channels of distribution

distribution channels

A channel of distribution comprises a set of institutions which perform all of the activities utilized to move
a product and its title from production to consumption



Discuss the effect of
the balance of power

in distribution
channels through Internet.