Marketers playbook

Aim of Marketing (Peter Drucker)

To make selling unnecessary.

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 Value Equation

Create value FOR customers (understand needs, design strategy, build relationships) and capture value FROM customers (reap rewards in sales, profits, and long-term equity).

5-Step Marketing Blueprint

1. Understand marketplace and customer needs/wants; 2. Design customer-driven marketing strategy; 3. Construct an integrated marketing programme (4 Ps); 4. Build profitable relationships and create customer delight; 5. Capture value from customers to create profits and customer equity.

Needs

States of felt deprivation (basic physical, social, individual); marketers do not create these.

Wants

The specific form human needs take when shaped by culture and individual personality.

Demands

Human wants backed by buying power/resources.

Marketing Myopia

The mistake of paying more attention to the specific products offered than to the underlying benefits and experiences produced.

Market Segmentation

Dividing the market into segments of customers.

Target Marketing

Selecting which customer segments to pursue.

Differentiation

Actually differentiating the market offering to create superior customer value.

Positioning

The value proposition: the set of benefits promised to answer "Why should I buy your brand?".

Production Concept

Management orientation focusing on availability and affordability; carries the risk of marketing myopia.

Product Concept

Management orientation focusing on quality, performance, and features; carries the risk of focusing only on the "better mousetrap" while missing alternative solutions.

Selling Concept

Management orientation focusing on large-scale selling and promotion with an inside-out view; carries the risk of focusing on existing products rather than market needs.

Marketing Concept

Management orientation with an outside-in view focusing on knowing needs and delivering satisfaction better than competitors; yields profits through customer satisfaction.

Societal Marketing Concept

Management orientation balancing consumer wants, company requirements, and society's long-run interests to deliver sustainable marketing.

Inside-Out Perspective

Starts at the factory, focuses on existing products, uses selling and promoting as means, and ends with profits through sales volume.

Outside-In Perspective

Starts in the market, focuses on customer needs, uses integrated marketing as means, and ends with profits through customer satisfaction.

Customer Relationship Management (CRM)

The overall process of building and maintaining profitable relationships by delivering superior value and satisfaction.

Customer-Perceived Value

The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to competitors.

Customer Satisfaction

The extent to which a product's perceived performance matches a buyer's expectations.

Customer Loyalty & Retention

Delighted customers who remain loyal and advocate; it is 5 times cheaper to keep an old customer than acquire a new one, avoiding the loss of their entire Customer Lifetime Value.

Share of Customer

The portion of the customer's purchasing that a company gets in its product categories, achieved by cross-selling and up-selling.

Customer Equity

The total combined customer lifetime values of all current and potential customers; a measure of the future value of the company's customer base.

The New Economic Realities

Post-recession consumer frugality forcing marketers to heavily emphasize "value-for-the-money" in value propositions.

The Digital Age & Online Marketing

The shift toward consumer-generated marketing, social networks, and C-to-B interactions where customers co-create value.

Sustainable Marketing

The demand for social responsibility and ethics where companies are expected to deliver value in a socially and environmentally responsible way