What is Marketing…?? Making products available in stores?
All of the above, plus much more!
Marketing = ? Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals
American Marketing Association
Marketing = ?
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
Simple Marketing System Goods/services Money Information Industry (a collection of sellers) Market (a collection of Buyers) Communication
Marketing = ? Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about push.
Marketing is all about managing the four P’s –
The 4 Ps & 4Cs Marketing Mix Customer Solution Customer Cost Communication Convenience Product Price Promotion Place
Difference Between - Sales & Marketing ? Sales trying to get the customer to want what the company produces Marketing trying to get the company produce what the customer wants
Scope – What do we market
Core Concepts of Marketing Needs, Wants, Desires / demand Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
Core Concepts of Marketing Needs, wants demands Markets Marketing & Marketers Utility, Value & Satisfaction Xchange, Transaction Relationships Products
In order to understand Marketing let us begin with the Marketing Triangle Customers Competition Company
Who is a Customer ?? Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need CUSTOMER IS . . . . .
Customer – CUSTOMER has needs, wants, demands and desires Understanding these needs is starting point of the entire marketing These needs, wants …… arise within a framework or an ecosystem
Understanding both the needs and the ecosystem is the starting point of a long term relationship
How Do Consumers Choose Among Products & Services? Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product. Satisfaction - Based on a comparison of performance and expectations. Performance > Expectations => Satisfaction
Performance < Expectations => Dissatisfaction
Customers - Problem Solution As a priority , we must bring to our customers “ WHAT THEY NEED ” We must be in a position to UNDERSTAND their problems
Or in a new situation to give them a chance to AVOID the problems
Customer looks for Value Benefit = Functional Benefit + Emotional Benefit
Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost
The Marketing Plan
A written document that acts as a guidebook of marketing activities for the marketing manager
CONTENTS of MARKETING PLAN Business Mission Statement Situation Analysis (SWOT)
Implementation, Evaluation and Control
The Marketing Process Target Market Strategy Marketing Strategy Product Promotion Place/Distribution Price Marketing Mix Business Mission Statement Objectives Situation or SWOT Analysis Implementation Evaluation, Control
Factors Influencing Company’s Marketing Strategy
External Marketing Environment Physical / Natural Demographics Social Change Economic Conditions Political & Legal Factors Technology Competition Environmental Scanning Target Market Product Distribution Promotion Price External Environment is not controllable Ever-Changing Marketplace
The macro-environment is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities
P r o d u c t
Anything that is offered to the market for attention, acquisition, use or consumption that satisfies a want or a need Product is . . . . .
Types of Products Consumer Products Industrial Products PRODUCTS Services
Product Items, Lines, and Mixes Product Item Product Line Product Mix A specific version of a product that can be designated as a distinct offering among an organization’s products. A group of closely-related product items. All products that an organization sells.
Product Mix Width – how many product lines a company has Length – how many products are there in a product line Depth – how many variants of each product exist within a product line
Consistency – how closely related the product lines are in end use
The Marketing Mix The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion . Generally acknowledged that this is too narrow today; now includes , P rocesses , P roductivity [technology ] P eople [employees], P hysical evidence
Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.
The “8Ps” of Integrated Service Management vs. the Traditional “4Ps” Place, cyberspace, and time
Price and other user outlays
The Give and Get of Marketing
Great Words on Marketing “ The purpose of a company is ‘to create a customer…The only profit center is the customer.’” “ A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.” “ The aim of marketing is to make selling unnecessary.” “ While great devices are invented in the Laboratory, great products are invented in the Marketing department.”
“ Marketing is too important to be left to the marketing department.”
Drivers of Customer Satisfaction Many aspects of the firm’s value proposition contribute to customer satisfaction: The core product or service offered Support services and systems The technical performance of the firm Interaction with the firm and it employees The emotional connection with customers
Ability to add value and to differentiate as a firm focuses more on the top levels
Marketers and Markets Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B. The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers. It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants .
Much happens before and after the sale to affect customer satisfaction
Stages of Customer Interaction
What Changed in Marketing… Organize by product units Focus on profitable transactions Look primarily at financial scorecard Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Over-promise, under-deliver Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Everyone does the marketing Build brands through performance Focus on customer retention Measure customer satisfaction and retention rate Old Economy New Economy