9. Marketing essentials and marketing in media companies

Defining Marketing

• Value Creation: Marketing is about creating value for customers. It's about understanding their needs and offering solutions.

• Relationship Building: Strong customer relationships are essential. These relationships foster loyalty and drive repeat business.

• Value Capture: In return, companies capture value from customers. This translates to profits and customer equity.

Profitable customer relationship management

Defining Marketing

Marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Profitable customer relationship management

Key Elements of Marketing

Customers: Customer-centric decisions are paramount. Understand their needs and cater to them effectively.

Profitability: Decisions must contribute to profitability. Marketing efforts should yield a positive return on investment.

The Five-Step Marketing Process Understand the marketplace and customer needs

1.  Needs, wants, demand.

2.  Offers

3.  Customer value

4.  Satisfaction

5.  Markets

Design a customer value-driven marketing strategy

1.  Customer selection, 

2. segmentation

3.  Select a value proposal

4.  Marketing concept

Construct an integrated marketing program that delivers superior value

1.  Transform the strategy in action

2.  Company Marketing mix

3.  The 4 Ps

Engage customers, build profitable relationships, and create customer delight

1.  Customer relationship management

2.  Adding value and superior satisfaction.

3.  Customer management tools

4.  Programs

Capture value from customers to create profits and customer equity

1. Customer lifetime value

2.  Loyalty and customer maintenance

3.  Share of customer

4.  Customer equity

Understanding Customer Needs, Wants, and Demands

Needs: Needs are states of deprivation. These include physical, social, and individual needs.

Wants:They are how people express their needs. Wants are shaped by culture and personality.

Demands: Demands are human wants supported by purchasing power. It's the willingness to purchase a product.

Managing Customer Value and Satisfaction

1 Customer Value: Offer superior value compared to competitors. Understand what customers perceive as valuable.

2 Expectation Management: Manage customer expectations effectively. Balance promises with deliverable results.
Satisfaction = results - expectations

3 Brand Promise: Create an attractive (for many people) and achievable (not disappointing) brand promise.

Markets, Exchange, and Building Relationships

The Market: A market consists of actual and potential buyers. Understand their needs and behaviors.

Exchange: Exchange involves obtaining a desired object. Offer something of value in return.

Marketing actions: Marketing aims to create, maintain and growth exchange relationships. Focus on creating mutually beneficial connections.

Designing a Customer Value-Driven Marketing Strategy

Target Audience:Determine which customers to serve. This requires segmentation and targeting efforts. It is equally important to choose than to give up It is equally important to choose than to give up

Brand Value Proposition: Choose a compelling brand value proposition.
• Easy to understand
• It solve specific needs
• Different to the others
The reason for customers to choose one brand over the others

Markets, Exchange, and Building Relationships

• The Market: A market consists of actual and potential buyers. Understand their needs and behaviors.

• Exchange: Exchange involves obtaining a desired object. Offer something of value in return.

• Marketing actions: Marketing aims to create, maintain and growth exchange relationships. Focus on creating mutually beneficial connections.

Designing a Customer Value-Driven Marketing Strategy

Target Audience: Determine which customers to serve. This requires segmentation and targeting efforts.

Brand Value Proposition

Choose a compelling brand value proposition.
• Easy to understand
• It solve specific needs
• Different to the others
 The reason for customers to choose one brand over the others It is equally important to choose than to give up

Customer Relationships and Brand Role

• Customer Relations

• Interactions

•  Tribes

Try to maximize the role of your brand in your consumer´s life

Customer Relationships Management: CRM

• CRM involves building and maintaining profitable customer relationships.
• It focuses on value and satisfaction.
• These drive loyalty and retention.

The Digital Environment and Customer Engagement

Social Media:

• Use platforms for conversations.

•  Offer experiences and build community.

Brand ambassadors:

•  Incentive by the brand 

• Spontaneous by customer lovers

 High level of demand

•  Higher consumer power over brands.

•  More demanding with campaigns

 A very demanding big opportunity → need to be planned

Capturing Customer Value

•  The adequate customer management provoke:

  •  Loyalty → customer retention

  • Recommendation → potential new customers

• Customer lifetime value

  • It is the value of the entire stream of purchases that the customer would make over a lifetime.

  •  It is five times cheaper to maintain a customer than recruit a new one

Capturing Customer Value

Customer equity is the total combined customer lifetime values of all of the company’s customers.

• The more loyal and younger the customers, the higher customer equity

Why Growth is Key

1. Competitive Advantage: Growth allows companies to compete effectively in a dynamic market.

2. Shareholder Value: Satisfying shareholders is vital for attracting investments and achieving growth goals.

3. Talent Attraction: Growth is crucial for attracting and retaining top talent, fostering innovation and competitiveness.

Marketing main responsibility

To identify, evaluate and choose market opportunities, and define the right strategy to approach them. Just growth is not a company goal → it must be “profitable” growth

Growth Strategy Ansoff Matrix

Marketing Strategy and the Marketing Mix

Marketing Mix: is the set of controllable, tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market

Managing marketing investments 

Managing the Marketing process

The Marketing Plan

1.  CURRENT SITUATION

   1. Market, segments, trends

   2. Brand performances

   3. Competitors

2. OBJECTIVES

   1. To define quantitative business and marketing targets.

3.  ACTION PLAN

   1. What, where, when, who will be done and how much it will cost

4.  CONTROLS

   1. KPI´s definition

   2. Corrective measures

Marketing plan content 

1.  OPPORTUNITIES AND THREAT ANALYSIS

   1. SWOT

2.  MARKETING STRATEGY

   1. Marketing rationale to achieve the objectives.

   2. Marketing mix strategy to add higher value.

3.  BUDGET Y P&L

   1. Resources needed

   2. Total impact in the P&L

The Product: Tangible vs. Intangible

Consumer Goods: Focuses on physical products: things you can touch, use, and replace. Examples include food, clothing, and electronics.

Media: Promotes intangible products: content, experiences, and information. Examples include news, entertainment, and digital platforms.

Consumer Purchase Cycle

Consumer Goods: FMCG marketing focuses on driving repeat purchases and building brand loyalty through consistent messaging and promotions.

Media Companies: Media companies aim to attract and retain audiences over time through consistent engagement, such as daily tuning in or subscribing to a service.

Engagement

Consumer Goods: FMCG brands engage consumers through loyalty programs, social media interactions, and customer feedback.

Media Companies: Media companies engage audiences through interactive content like live shows and polls, and community-building efforts.

Metrics of Success

Consumer Goods: FMCG marketing success is measured by sales volume, market share, brand awareness, and customer retention.

Media Companies: Media company success is measured by audience ratings, viewership numbers, engagement metrics, and subscription growth.

Competitive Landscape

Consumer Goods: FMCG brands compete with other brands in the same product category in a highly saturated market.

Media Companies: Media companies compete for attention with other media outlets, streaming services, and entertainment options.

The Audience: Consumers vs. Dual-Sided Market

Consumer Goods:Targets individual customers who directly purchase the product. The goal is to build brand loyalty and drive sales.

Media: Operates in a dual-sided market. It must attract and retain audiences by offering compelling content and appeal to advertisers who fund the content.

Revenue Model: Direct Sales vs. Multiple Streams

Consumer Goods: Relies on direct sales: a customer purchases a product in exchange for money. Pricing strategies, discounts, and product positioning are key.

Media: Works with multiple revenue streams, including advertising, subscriptions, sponsorships, and content licensing. The audience is both a consumer and a product.

Marketing Strategies: Product Promotion vs. Content Distribution

Consumer Goods: Relies on traditional advertising, retail distribution, influencer marketing, and digital campaigns.

Media: Focuses on content distribution, platform optimization, audience analytics, and virality. It must adapt to rapid technological changes and shifting user behaviors.

Seasonality and Trends

Consumer Goods: FMCG marketing often aligns with seasonal demand and trends, such as health-conscious products.

Media Companies: Media companies align with cultural trends, timetables, events and seasonal programming.

Brand development

Consumer Goods: Marketing is key for bring them to live and develop its personality

Media Companies: Develop their own voice and personality through their contents; marketing play a minimum role on it.

Audience Research and Segmentation

1. What It Is: Collecting data to understand who the audience is, what they want, and how they consume media.

2. Why It Matters: Media companies live or die by their audience. Knowing demographics, psychographics, and behavior shapes everything else.

 Example: Netflix analyzes viewing data to segment audiences into "binge-watchers" or "casual viewers" and tailors recommendations accordingly.

Content Promotion

• What It Is:  Creating and executing campaigns to advertise specific content (e.g., a new show, article series, or podcast).

• Why It Matters: Even great content needs visibility to attract viewers, listeners, or readers in a crowded market.

• Example
  HBO's trailers and social media teasers for House of the Dragon to build hype before the premiere.

Brand Management

• What It Is: Shaping and maintaining the company's overall identity and reputation.

• Why It Matters: A strong brand builds trust and loyalty, setting the company apart.

• Example
  CNN emphasizing "breaking news" to reinforce its position as a go-to news source.

Customer Acquisition and Retention

1. What It Is: Attracting new subscribers/viewers and keeping them engaged over time.

2. Why It Matters:Media companies often rely on subscriptions or ad revenue tied to audience size.

3. Example
   Hulu offering a free trial to hook new users, then sending personalized emails to keep them subscribed.

Advertising Sales and Partnerships

• What It Is: Selling ad space or sponsorships to brands wanting to reach the company's audience.

• Why It Matters: For ad-supported media, this is a core revenue stream, and marketing makes it happen.

• Example: A TV serie like Money Heist (La casa de papel) signing an sponsorship with a spanish beer (Estrella Galicia)

Digital and Social Media Marketing

1.  What It Is: Leveraging online platforms to engage audiences and drive traffic.

2. Why It Matters: Most media consumption happens digitally now, and social media amplifies reach and interaction.

3. Example
   La Revuelta posting viral post on X to promote the program beyond its live broadcasting.

Performance analysis and optimization

Measuring the performance of marketing efforts and adjusting them for better results ensures that the company is not wasting resources on ineffective strategies.