Marketing Process; 5 Core Marketplace Concepts; Marketing Management Orientations What is Marketing? Simple Definition of Marketing Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. Marketing Defined The process by which companies create value for customers and build strong customer relationships to capture value from customers in return.

Objective 1 – What is Marketing? Goal of marketing is to attract new customers by promising superior value and keep/grow current customers by delivering satisfaction. Marketing Defined Marketing – The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. The Marketing Process Steps Understand the marketplace and customer needs/wants. Design a customer-driven marketing strategy. Construct a marketing p

Objective 1 – Companywide Strategic Planning - Defining Marketing’s Role Strategic Planning – Process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. Follows these steps Defining a Market-Oriented Mission Mission Statement – A statement of the organization’s purpose – what it wishes to accomplish in the larger environment. Answers what the business is, who the customer is, what they value, and what shoul

Objective 1 – Companywide Strategic Planning - Defining Marketing’s Role Strategic Planning – Process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. Follows these steps Defining a Market-Oriented Mission Mission Statement – A statement of the organization’s purpose – what it wishes to accomplish in the larger environment. Answers what the business is, who the customer is, what they value, and what shoul

Marketing Environment – Consists of the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. Consists of Microenvironment – The actors close the company that affect its ability to serve its customers – the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. Macroenvironment – Larger societal forces that affect the microenvironment – Demographic, economic, natural,

Objective 1 – Marketing Information and Customer Insights Companies use customer insights to develop competitive advantages, stemming from good marketing info. Difficult to obtain, requiring a wide range of sources. Information is generated through information technologies. Customer Insights – Fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships. Marketers require better information rather th

Consumer Buyer Behaviour – Buying behaviour of final consumers - Individuals and households that buy goods and services for personal consumption. Consumer Market – Individuals and households that buy or acquire goods/services for personal consumption. Objective 1 – What is Consumer Behaviour? Given characteristics affecting consumer behaviour, design marketing efforts to reach consumers. Ongoing process that starts before the purchase and continues after consumption. Markets must be aware of iss

Segmentation; Targeting; Differentiation; Positioning; Consumer/Business Markets 4 Steps in Designing a Customer-Driven Marketing Strategy Segmentation: Dividing a market into distinct groups with distinct needs, characteristics, or behaviours that might require separate marketing strategies or mixes. Targeting: The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Differentiation: Actually differentiating the market offering to create super

Objective 1 – Outline - Market Segmentation, Targeting, Differentiation, and Positioning Because buyers are too numerous and companies vary widely in abilities, a company must identify the parts of the market to serve. Target Marketing – Identify market segments, select one or more of them, and develop products and marketing programs tailored to each. Four Steps to Designing a Customer-Driven Marketing Strategy Market Segmentation – Dividing a market into smaller segments of buyers with distinc

Note: LO4 is not part of these notes! What is a Product? What is a Product? Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Broadly defined, “products” also include services, events, persons, places, organizations, ideas, or mixes of these. What is a Service? An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. Products, Services, and Expe

Objective 1 – What is a Product? Product – Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Includes tangible objects as well as services, events, persons, places, organizations, ideas, or a mix. Services – An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. Products, Services, and Experiences Market Offering – Products are key to the bas

Note: LO4 & LO5 are not included! What is a Brand? Definition The basic definition of a brand is a name, symbol, icon, design, or a combination of these, that identifies the maker or marketer of a product. If used for the firm, the preferred term is trade name—but a brand is much more than just a trade name. Brands are powerful. Brands have status and value. Brands have personality, and so they involve our emotions as consumers, and as human beings. How does Branding help buyers? In today’s info

Objective 1 – New Product Development Strategies New-Product Development – Development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts. New products are important - Customers – Bring new solutions and variety to their lives. Companies – New products are a key source of growth and innovation. Failure of New Products - Overestimated Market size, poor design, incorrect positioning, too-high price, poor advertising.

Note: LO1, LO2, LO6, and LO7 are not included! What is a Price? In the narrowest sense, price is the amount of money charged for a product or a service. More broadly, price is the sum of all the values that customers give up to gain the benefits of having or using a product or service. Historically, price has been the major factor affecting buyer choice. Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexibl

Note: LO2, LO3 and LO6 are not included! Distribution Channels- The Value Delivery Network Value Delivery Network Marketing requires building relationships not just with customers, but also with key suppliers “upstream” in the company’s supply chain, and distributors and resellers that act as intermediaries to help move the product “downstream.” Upstream from the company is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a

Objective 1 – What is a Price? Price - The amount of money charged for a product or service; the sum of all values that customers exchange for the benefits of having or using the product or service. Major factor affecting buyer choice – And only element in the marketing mix that produces revenues and is flexible. Plays a key role in creating customer value and building customer relationships. Objective 2 – Major Pricing Strategies Price falls between too high to produce demand and too low to pro

Objective 1 – The Promotion Mix The Promotion Mix (Marketing Communications Mix) – Specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. Five Major Promotion Tools: Advertising – Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. i.e. Broadcast, Print, Internet, Outdoor, other forms. Sales Promotion – Short-Term incentives to encourage the purchase or sale

Note: LO3 and LO5 are ignored! Direct & Digital Marketing What is Direct & Digital Marketing? Direct and digital marketing involve engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships. Companies use direct marketing to tailor their offers and content to the needs and interests of narrowly defined segments or individual buyers. In this way, they build customer engagement, brand communi

Objective 1 – Advertising Advertising – any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. There are 4 important decisions in developing an advertising program: Setting Advertising Objectives Setting the Advertising Budget Developing Advertising Strategy (message decisions and media decisions) Evaluating Advertising Campaigns Objective 2 – Advertising Program Development Setting Advertising Objectives Advertising Objectives – Speci

Objective 1 – Personal Selling The Nature of Personal Selling Personal Selling – Personal presentations by the firm’s sales force for the purpose of making sales and building customer relationships. Salesperson – An individual representing a company to customers by performing one or more of these activities: prospecting, communicating, selling, servicing, information gathering, and relationships building. Salespeople are well-educated and well-trained professionals that add value for customers a

Direct Marketing – Connecting directly with carefully targeted segments or individual consumers, often on a one-to-one, interactive basis. Objective 1 – The New Direct Marketing Model Direct marketing is a supplementary channel or medium for several firms, but it may also constitute a complete model for doing business. Growth and Benefits of Direct Marketing Benefits to Buyers Direct Marketing is convenient, easy, and private due to ease of using the Internet. Gives buyers ready access to a wea