Marketing PBL 1:

What do successful marketing do?

Successful marketing builds demand for products and services which in turn creates jobs

Marketing Definition

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Marketing Management

choosing target markets and growing/keeping customers through creating, delivering and communicating superior customer value

Social Definition of Marketing

a societal process by which individuals and groups obtain what they need and want through exchanging products and services of value with others

Aim of Marketing (Managerial Perspective):

to know and understand the customer so well that the product or service fits him and sells itself.

What kinds of things are marketed?

goods, services, experiences, events, people, places, organisations, properties, information (schools) and ideas

What is a Marketer?

Someone who seeks a response (attention, purchase, vote, donation) from another party (aka prospect) 

What are the 8 demand states and what is the point of them ?

Negative, Non-existent, Latent, Declining, Irregular, Full, Overfull and Unwholesome demand

• marketers must identify the underlying cause(s) of the demand state and determine a plan of action to shift demand to a more desired state.

  
  

Explain what each demand state is (Negative, Non-existent, Latent, Declining, Irregular, Full, Overfull and Unwholesome demand)

• 1. Negative demand—Consumers dislike the product and may even pay to avoid it.

• 2. Nonexistent demand—Consumers may be unaware of or uninterested in the product.

• 3. Latent demand—Consumers may share a strong need that cannot be satisfied by an existing product.

• 4. Declining demand—Consumers begin to buy the product less frequently or not at all.

• 5. Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.

• 6. Full demand—Consumers are adequately buying all products put into the marketplace.

• 7. Overfull demand—More consumers would like to buy the product than can be satisfied.

• 8. Unwholesome demand—Consumers may be attracted to products that have undesirable social consequences.

What are Markets?

a collection of buyers and sellers who transact over a particular product or product class (Consumer, Business, Global and Non Profit/Governmental Markets)

What are Business, Global, Consumer and Non-Profit/Governmental Markets?

Consumer: Companies sell goods directly to a consumers

Business: Companies sell to other organisations

Global: Companies operate across countries and must consider cultural, linguistic, political and legal differences

Non Profit/Governmental: Companies sell to charities, universities, churches and government bodies which have limited budgets

Wants, Needs and Demands

a want is a specific desire for a particular product, a need is a basic human requirement for survival, and a demand is a want backed by the ability to pay for it

What are the 5 different types of needs?

Stated, Unstated, Secret, Delight and Real

• To gain an edge companies must help consumers learn what they want

• Secret: Hidden or subconscious desires that the customer is reluctant or uncomfortable to admit.

What do the 5 states of needs entail? (Stated, Unstated, Secret, Delight and Real )

Stated: What the customer explicitly says they want

Unstated: Implicit expectations that the customer assumes will be met without asking (expecting product warranty with product)

Secret: Hidden or subconscious desires that the customer is reluctant or uncomfortable to admit.

Delight: Unexpected extras that create a "wow" factor and make a brand stand out.

Real: The actual, specific function or value behind the stated request.

What are Marketing Channels (three kinds)

Used to reach target markets

• Communication Channels: how a company send promotional messages and brand awareness (ads/social media)

• Distribution Channels: display, sell or deliver the product or service to consumers

• Service Channels: finalise transactions, process payments and provide continued customer service

What are new ways digital media gives marketers a new way to communicate with consumers

Paid Media, Owned Media and Earned Media

Marketing Environment:

everything that surrounds a company and affects how it markets and sells a product

• Task Environment: includes actors engaged in producing, distributing and promoting the product

• Broad Environment: larger outside forces that indirectly affect the whole market

  • demographic, economic, socio-cultural, natural, technological, political-legal environment

How does Broad Environment Affect Marketing?

Because these factors influence trends meaning companies must adapt their marketing strategies when these factors change

What three factors have dramatically affected the market place

Technology: internet has powerful information and is a purchasing aid (consumers can compare prices, share opinions, interact with companies)

Globalisation: companies can take ideas from one country and apply them in another through new transportation, shipping and communication technologies

Social Responsibility: organisations should determine NWD and satisfy them while preserving consumers and societies long-term well being

Changing Channels

Channels of Distribution have changed so consumers have more choices:

• Retail Transformation: stores are faed with competition of online shopping transforming their stores to have more entertainment

• Disintermination: traditional retailers fought back by also going online

Companies have grown because of globalisation and 4 major developments:

Private Labels: retailers sell their own store brand

Mega-Brand: Successful brands expand into several related product categories (Apple)

Deregulation: Governments remove legal restrictions, allowing more companis to enter industries to compete

Privatisation: Governments transfer public companies to private organisations to create more competition

Production Concept:

proposes that consumers prefer products are widely available and inexpensive, it is easy for countries with a large labour pool

Product Concept:

proposes that consumers prefer products offering the most quality, performance or innovative features

Selling Concept

proposes consumers will not buy enough of a product unless it has aggressive promotion efforts or large scale selling (usually fails especially when the company aims to sell what they want, and not the customer)

Marketing Concept:

job is not to find the right customers for your products, but the right products for your customers

Holistic Marketing Concept:

views its business and its marketing efforts as one interconnected entity rather than isolated departments

Four Dimensions Under Holistic Marketing:

Relationship M: develop a deep relationship with people that affect the success of the firms marketing activities (customers, employees, marketing partners (channels, suppliers etc) and members of financial community)

Integrated: marketing activities work together and form one consistent customer experience

Internal: Hiring, training and motivating able employees, who want to serve the customers well

Performance M: evaluating the overall results of marketing

What are the aspects related to Performance Marketing?

Financial Results: sales and profit

Non-Financial Results: customer satisfaction, customer retention, product quality and brand reputation

Wider Results: the companies legal, ethical, social and environmental impact

Old and New Four Ps and Why?

• strategic framework to help bring products to market

Old: Price, Product, Place and Performance

New: People, Processes, Programs and Performance

• Old ones were focused more on profitability, whereas the new ones focus more on customer value and the social outcomes

The New 4Ps:

People: Internal marketing and understand consumers lives more broadly

Processes: structured methods marketers use to plan and carry out marketing activities (research customer needs, design, test, price, promote and evaluate the result)

Programs: All the marketing activities a company uses to influence consumers (consistent message)

Performance: Same as before, measuring results of marketing activities not just profit

The Four As

Most Important Customer Values

• Acceptability: extent to which product exceeds customer expectations

• Affordability: willing to pay the price

• Accessibility: ability to acquire the product

• Awareness: customers are informed of the products characteristics, persuaded to try it and reminded to repurchase

Value Delivery Process:

Value Creation and Delivery Sequences have three phases:

1. Choosing the Value: segment the market and select and appropriate target audience and develop the offerings value position (STP)

2. Providing the Value: Identify specific product features, prices and distributions

3. Communicating the Value: promote the product (internet, ads, sales force)

Value Chain:

All the activities a company performs to create and deliver value to customers. Each activity creates values but also costs

• Nine Activities: 4 are primary and 5 are support

Benchmarking

Comparing the companies costs, performance and working methods with those of the best performing companies

• The goal here is for companies to examine its costs and performance in each value-creating activity and benchmarking against its competitors, trying to find a way to improve

Core Buisness Processes

the firms success depends on how well a company coordinates departmental activities to conduct core business processes

• marketing sensing process, new offering realisation process, customer acquisition process, customer relationship management process and fulfilment management process

Definitions of The Core Business Processes:

Market Sensing Process: gathering and acting upon information about the market

New Offering Realisation: researching and developing offerings quickly and within budget

Customer Acquisition: defining target markets and looking for new customers

Customer Relationship Management: building deeper relationships and offering to individual customers

Fulfilment Management: receiving and approving offers, shipping goods on time and collecting payment

Core Competinecy

a special skill, knowledge base, or capability that lies at the heart of a company and helps it outperform its competitors

A Core Competency is Good When?

• It creates a competitive advantage: contributes significantly to the value customers receive

• Can be used in different markets

• Is difficult to imitate

Distinct Capabilities (Market Sensing, Customer Linking and Channel Bonding):

Business processes that a company performs exceptionally well

• Market Sensing: Detecting and responding to changes in the market

• Customer Linking: Developing Close Relationships with Customers and understanding their needs

• Channel Bonding: Build Strong Relationships with distributors and retailers

Realignment

Changing the company so it can use its core competency more efficiently and respond to new circumstances

What sterps are needed for Realignment?

Redefining the business concept, reshaping the business scope, and repositioning the brand

Central Role of Strategic Marketing:

Marketers must make decisions in three main areas:

• Managing Businesses as an investment portfolio, Assessing Market attractiveness and compony position (how quickly the market is growing and where they stand compared with competitors), establishing a strategy (long term game plan to remain profitable and achieve objectives)

Marketing Plan

a document that directs and coordinates the companies marketings activities

• It has two levels: Strategic and Tactical marketing plan

What are strategic and Tactical Marketing Plans

• Strategic: establishes broad direction: which customers to target, which market opportunities to purse and what value the company will offer

• Tactical: The specific actions used to implement the strategic plan (product features, pricing, ads etc)

1. Marketing begins with knowing your customer segment

marketing messages must be personally relevant and relate to individuals situation and values

• 5 different cohorts of individuals: affordability, health, planet, society (honest and transparent), and experience (new products) first

2. You are competing with the last best experience your customer had

consumer expectations rose in covid, now companies have personal data and can create personalised experiences

3. Consumers expect you to have exactly what they want

• Data enables us to create relevant experiences across content, commerce, community and convenience (coupons)

4. Courting Customers is just like Online Dating

• shows how marketing has changed towards data driven targeting and personalised interaction

• Its about using data to determine who you should meet and how you should approach them and build a relationship after

5. Customers must sit at the heart of your consumer journey

must deliver a connected customer experience through different departments working together using shared data, connected tech and common customer-focused goals

6. Relationship are Everything

Hard to gain the trust of new clients, it will be built by those who listen to consumer needs

7. Agility is Modern Marketing Approach

continuously monitoring what is happening in the market and listen, learn, decide and adapt to it

8. Your brand should stand behind great values

• this is increasingly important to consumers

9. you need the right balance of factors (including tech) to drive modern marketing success

Human Enablement: marketing employees understand how to interpret AI recommendation, create appropriate campaigns and measure whether those campaigns actually increase sales

10. marketing is at the center of the growth agende for the full C-Suite

The pandemic created a culture of rapid cross-functional collaboration, marketing should have a permanent seat at strategic planning because understanding customers/marketplace is fundamental to the organisations overall growth agenda