Marketing involves changing customer behavior. For start-ups, the focus is on lead generation, while established companies focus on engagement and support. Marketing brands is more effective than products. The marketing process includes research, planning, and understanding how customers behave through choice sets, hierarchy of needs, advertising effects, and lifetime value. Research shows search data may reflect true customer wants better than surveys. For example, a camera company found most searches were for waterproof cameras, so they built a waterproof housing and targeted those searchers.

1. Marketing Models- Kyle McGrath

2. What it’s all about…Marketing is all about changing customer behavior

3. Taking on Different PersonasStart-up companyFocus is on lead generationEstablished companyFocus is on customer engagement and product supportMarketing brands is more successful than marketing products

4. The Marketing Planning Process

5. Market Research Process

6. How the Internet has Changed Market ResearchSearch data may even be more honest than survey data, since people are searching for what they actually want, not telling a surveyor what they think they should wantSearch acquisition strategy is customer acquisition strategy and at its core, its product strategy BetterCamera example

7. BetterCamera41 million searches for digital camera in July ’09AdWords features: SLR, lenses, pixels, underwater, waterproofTop waterproof brands: Olympus, Canon, Fuji, NixonTop locations: Florida, Hawaii, AlaskaFurther research: people looking for disposable, waterproof housing & inexpensiveTeam builds waterproof housing and markets to both waterproof housing (40,000 searchers) and waterproof digital camera (600,000 searchers)

8. The Goal of Research

9. Now What?Marketers need to further understand how their customers behaveChoice setsHierarchy of NeedsAdvertise effectivelyHierarchy of EffectsCustomer Lifetime Value

10. Choice SetsIdentifies the attributes customers value

11. Hierarchy of NeedsDefined by Abraham Maslow in 1943Theory taught as a basis for understanding consumers’ motive for action If marketers can understand consumer needs, then they can define products to fulfill those needs

12. Hierarchy of Needs

13. The Buying ProcessConsumers go through some version of this process for every brand choiceSteps can be skippedGoal is to identify where marketing can increase choice in brand’s favor

14. Advertising SpendingMagazines - $11 billionNewspapers - $35.5 billionRadio - $15.8 billion“Search Intercepts Demand”

15. Hierarchy of EffectsThe long-term goal of advertising is to move a consumer up the steps in order to purchase a product or service.

16. Customer Lifetime ValueDescribes the net present value of the stream of profits expected over the customer’s lifetime purchasesCLV calculations provide a formal quantitative framework for planning customer investment and help marketers adopt a long-term perspective

17. Questions?