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  • This has come about, in part, due to the business paradigm shift experienced in many markets. In New Markets, we tend to talk about sellers markets- the seller has the power- demand outstrips demand.
  • Burberry- an example when over-riding social factors impacted on customer perceived value of the Burberry brand- often seen as highly exclusive and expensive brand and instantly recognisable. When it was ‘adopted’ by the football hooligan fraternity, and knock-offs became more common than the original brand, it started to affect perceived value- people don’t want to be associated with a cheapened brand, and began to associate the brand with the undesirable behaviours of the people wearing it.
  • No single way to segment is best. Often combine more than one variable to better define segments. Geographic- simply where people live Demographic- the easiest and most popular segmenting variable. Psychographic segmentation: Dividing a market into different groups based on social class, lifestyle, or personality characteristics. Behavioral segmentation: Dividing buyers into groups based on consumer knowledge, attitudes, uses, or responses to a product. MTV- different ages favour different channels. MTV pay attention to geographical differences also.
  • Amba talk

    1. 1. Introduction to Marketing Miss Mary Lynn Mundell
    2. 2. What Is Marketing? <ul><li>Simple definition: Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably.” (CIM,2001) </li></ul><ul><li>Goals: </li></ul><ul><li>Attract new customers by promising superior value. </li></ul><ul><li>Keep and grow current customers by delivering satisfaction. </li></ul>
    3. 3. Marketing Defined <ul><li>Marketing is the activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. </li></ul>OLD view of marketing: Making a sale — “telling and selling” NEW view of marketing: Satisfying customer needs
    4. 4. Why is Marketing Important? <ul><li>Shifting Business Paradigms </li></ul>Sellers’ markets Buyers’ markets
    5. 5. The Marketing Process <ul><li>A simple model of the marketing process: </li></ul><ul><li>Understand the marketplace and customer needs and wants. </li></ul><ul><li>Design a customer-driven marketing strategy. </li></ul><ul><li>Construct an integrated marketing program that delivers superior value. </li></ul><ul><li>Build profitable relationships and create customer delight. </li></ul><ul><li>Capture value from customers to create profits and customer quality. </li></ul>
    6. 6. Needs, Wants, and Demands <ul><li>Need: S tate of felt deprivation including physical, social, and individual needs. </li></ul><ul><li>Physical needs: Food, clothing, shelter, safety </li></ul><ul><li>Social needs: Belonging, affection </li></ul><ul><li>Individual needs: Learning, knowledge, self-expression </li></ul><ul><li>Want: Form that a human need takes, as shaped by culture and individual personality. </li></ul><ul><li>Wants + Buying Power = Demand </li></ul>
    7. 7. Need/ Want Fulfillment <ul><li>Needs & wants are fulfilled through a Marketing Offering: </li></ul><ul><li>Products: </li></ul><ul><ul><li>Persons, places, organizations, information, ideas. </li></ul></ul><ul><li>Services: </li></ul><ul><ul><li>Activity or benefit offered for sale that is essentially intangible and does not result in ownership. </li></ul></ul><ul><li>Experiences: </li></ul><ul><ul><li>Consumers live the offering. </li></ul></ul>
    8. 8. Customer Value and Satisfaction <ul><li>Dependent on the product’s perceived performance relative to a buyer’s expectations. </li></ul><ul><li>Care must be taken when setting expectations: </li></ul><ul><li>If performance is lower than expectations, satisfaction is low. </li></ul><ul><li>If performance is higher than expectations, satisfaction is high. </li></ul><ul><li>Customer satisfaction often leads to consumer loyalty. </li></ul><ul><li>Some firms seek to DELIGHT customers by exceeding expectations. </li></ul>
    9. 9. Marketing Management <ul><li>The art and science of choosing target markets and building profitable relationships with them. </li></ul><ul><li>Requires that consumers and the marketplace be fully understood. </li></ul><ul><li>Aim is to find, attract, keep, and grow customers by creating, delivering, and communicating superior value. </li></ul>
    10. 10. Marketing Management <ul><li>Marketing managers must consider the following, to ensure a successful marketing strategy : </li></ul><ul><li>What customers will we serve? </li></ul><ul><ul><li>— What is our target market ? </li></ul></ul><ul><li>How can we best serve these customers? </li></ul><ul><ul><li> — What is our value proposition ? </li></ul></ul>
    11. 11. Choosing a Value Proposition <ul><li>The set of benefits or values a company promises to deliver to consumers to satisfy their needs. </li></ul><ul><li>Value propositions dictate how firms will differentiate and position their brands in the marketplace. </li></ul>
    12. 12. The Marketing Concept <ul><li>The marketing concept: </li></ul><ul><li>A marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors. </li></ul>
    13. 13. Customer Perceived Value <ul><li>Customer perceived value: </li></ul><ul><ul><li>“ Customer’s evaluation of the difference between all of the benefits and all of the costs of a marketing offer relative to those of competing offers.” (Armstrong & Kotler) </li></ul></ul><ul><ul><li>Perceptions may be subjective </li></ul></ul><ul><ul><li>Consumers often do not objectively judge values and costs. </li></ul></ul><ul><li>Customer value = perceived benefits – perceived sacrifice. </li></ul>
    14. 14. <ul><li>The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. </li></ul><ul><li>Product: Variety, features, brand name, quality, design, packaging, and services. </li></ul><ul><li>Price: List price, discounts, allowances, payment period, and credit terms. </li></ul><ul><li>Place: Distribution channels, coverage, logistics, locations, transportation, assortments, and inventory. </li></ul><ul><li>Promotion: Advertising, sales promotion, public relations, and personal selling. </li></ul>The Marketing Mix
    15. 16. Introduction to Marketing Marketing Strategy
    16. 17. Customer-Driven Marketing Strategy <ul><li>Requires careful customer analysis. </li></ul><ul><li>To be successful, firms must engage in: </li></ul><ul><li>Market segmentation </li></ul><ul><li>Market targeting </li></ul><ul><li>Differentiation </li></ul><ul><li>Positioning </li></ul>
    17. 18. <ul><li>Segmentation: </li></ul><ul><li>The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products of marketing programs. </li></ul><ul><li>Targeting: </li></ul><ul><li>Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. </li></ul>Market Segmentation and Targeting
    18. 19. Differentiation and Positioning <ul><li>Differentiation: </li></ul><ul><li>Creating superior customer value by actually differentiating the market offering. </li></ul><ul><li>Positioning: </li></ul><ul><li>Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. </li></ul>
    19. 20. Market Segmentation <ul><li>Key segmenting variables: </li></ul><ul><li>Geographic </li></ul><ul><li>Demographic </li></ul><ul><li>Psychographic </li></ul><ul><li>Behavioral </li></ul><ul><li>Different segments desire different benefits from products. </li></ul><ul><li>Best to use multivariable segmentation bases in order to identify smaller, better-defined target groups. </li></ul>
    20. 21. Market Segmentation <ul><li>Why Segment?: </li></ul><ul><li>Meet consumer needs more precisely </li></ul><ul><li>Increase profits </li></ul><ul><li>Segment leadership </li></ul><ul><li>Retain customers </li></ul><ul><li>Focus marketing </li></ul><ul><li>communications </li></ul>
    21. 22. Evaluating Market Segments <ul><li>Segment size and growth: </li></ul><ul><li>Analyze current segment sales, growth rates, and expected profitability. </li></ul><ul><li>Segment structural attractiveness: </li></ul><ul><li>Consider competition, existence of substitute products, and the power of buyers and suppliers. </li></ul><ul><li>Company objectives and resources: </li></ul><ul><li>Examine company skills and resources needed to succeed in that segment. </li></ul><ul><li>Offer superior value and gain advantages over competitors. </li></ul>
    22. 23. Market Targeting <ul><li>Market targeting involves: </li></ul><ul><li>Evaluating marketing segments. </li></ul><ul><ul><li>Segment size, segment structural attractiveness, and company objectives and resources are considered. </li></ul></ul><ul><li>Selecting target market segments. </li></ul><ul><ul><li>Alternatives range from undifferentiated marketing to micromarketing. </li></ul></ul><ul><li>Being socially responsible. </li></ul>
    23. 24. Differentiation and Positioning <ul><li>A product’s position is: </li></ul><ul><li>The way the product is defined by consumers on important attributes — the place the product occupies in consumers’ minds relative to competing products. </li></ul><ul><li>Perceptual positioning maps can help define a brand’s position relative to competitors. </li></ul>
    24. 25. Differentiation and Positioning <ul><li>Identifying possible value differences and competitive advantages: </li></ul><ul><li>Key to winning target customers is to understand their needs better than competitors do and to deliver more value. </li></ul><ul><li>Competitive advantage: </li></ul><ul><li>Extent to which a company can position itself as providing superior value. </li></ul><ul><ul><li>Achieved via differentiation. </li></ul></ul>
    25. 26. Thank you.