Marketing Chapter 1,2, & 5

Marketing

the activity, set of institutions, and processes for creating,

capturing, communicating, delivering, and exchanging offerings that have

value for customers, clients, partners, and society at large.

Core Aspect of Marketing

Marketing is about satisfying customer needs and wants.

Core Aspect of Marketing

Marketing entails an exchange.

Core Aspect of Marketing

Marketing creates value through product, price, place, and promotion

decisions.

Core Aspect of Marketing

Marketing can be performed by individuals and organizations.

Core Aspect of Marketing

Marketing affects various stakeholders.

Promotion

Communicating value

Product

Creating value

Price

Capturing value

Place

Delivering Value

Marketing Mix

Price, Place, Product, Promotion

Value-Based Marketing Era

Value reflects the relationship of benefits to costs, or what you get for

what you give. Marketers use a relational orientation and customer

relationship management (CRM) to build value.

JanSport builds long-term relationships

with its customers by offering free lifetime

warranties for all its bags and backpacks.

Value-Based Marketing Era

Technology-Augmented Era

Today’s firms leverage technology to augment value.

Technology enables value cocreation – where customers act as collaborators to

create a product or service that appeals mostly to them.

Betabrand engages in _ _ by allowing

customers to vote on the style

and fabric of the items of

clothing it will produce and sell.

Value Cocreation

Marketing Strategy

identifies:

• A firm’s target market.

• A related marketing mix.

• The bases on which the firm plans

to build a sustainable competitive

advantage

Competitive advantage

long-term edge a company has that competitors can’t easily copy, allowing it to consistently attract and keep customers.

Macro Strategies for Developing Customer Value

Customer, Operational, Product, and Locational Excellence

Customer Excellence

Retaining loyal customers.

• Having a strong brand.

• Having unique merchandise.

• Superior customer service.

Operational Excellence

1. Efficient operations.

2. Excellent supply chain management.

3. Strong relationships with suppliers.

Product Excellence

Provide products with high

perceived value and effective

branding and positioning.

Locational Excellence

Especially important for retailers and service providers.

3 Phases of the Marketing Plan

Planning, Implementation, and Control

Step 1 in the Marketing Plan

Define Mission and Objectives

Step 2 in the Marketing Plan

Conduct a situation analysis

Step 3 in the Marketing Plan

Identify and Evaluate Opportunities using STP

Segmentation

Divide the market into groups with similar needs/traits

Targeting

Choose which segments to target

Positioning

Design the product and message to occupy a clear, distinctive place in the customers mind

Step 4 of Marketing Plan

Implement Marketing Mix and Allocate Resources

Step 5 of Marketing Plan

Evaluate performance using marketing metrics

SWOT Analysis

Internal Strengths and Weaknesses, External Opportunities and Threats. Used to find and choose the right market opportunities

BCG Matrix-Stars, Questions, Cash Cows, Dogs (Portfolio Analysis)

helps a company analyze its product portfolio by categorizing products or business units based on market growth rate and relative market share, in order to guide decisions on investment, growth, or divestment.

Stars

High Market growth rate, High Relative market share. Strong products in fast-growing markets. They may need investment to keep growing, but have high potential.

Questions

High market growth rate, low relative market share. Weak products in fast-growing markets. They need investment to grow or may fail.

Cash Cows

Low Market growth rate, High relative market share. Strong products in slow-growing markets. They generate more cash than they need — “money makers.”

Dogs

Low market growth rate, low relative market share. Weak products in slow-growing markets. Often considered for discontinuation.

4 Major Growth Strategies

Market Penetration, Product Development, Market Development, Diversification

Market Penetration

Grow sales of current products in current markets. Increase market share, encourage current customers to buy more, and attract competitors’ customers.

Product development

Introduce new products in current markets. Innovate or improve products for current customers to increase sales.

Market Development

sell current products to new markets. Expand geographically, target new customer segments, or enter a new distribution channel

Diversification

Launch new products in new markets. Enter entirely new markets with new offerings—high risk, potentially high reward

Production Era of Marketing

Focus on efficient production and distribution. “If we make it, customers will buy it.”

Sales Era of Marketing

Focus on aggressive selling and promotion to convince customers to buy.

Marketing Era of Marketing

Focus on understanding customer needs and satisfying them better than competitors.

Value-Based Marketing Era

Focus on creating value and building long-term customer relationships. Companies aim to exceed customer expectations.

Technology-Augmented Era of Marketing

Focus on leveraging technology, social media, and data analytics to reach, engage, and personalize experiences for customers.