W1 - Intro & What is Marketing?

Week 1 (37.50 Lec1) INCOMPLETE

Marketing

The process of maximising returns to stakeholders by developing exchanges with valued customers and creating an advantage for them

American Marketing Association

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.

4 P’s in marketing

product, place, price, promotion

Marketing defined further

the process where organizations engage customers, build strong customer relationships and create customer value in order to capture value from customers in return

what is a modern example of value

money

what is the first step of the marketing process?

understand the marketplace and customers needs and wants

what is the second step of the marketing process

design a customer value-driven marketing strategy

what is the third step of the marketing process?

construct an integrated marketing program that delivers superior value

what is the fourth step of the marketing process?

engage customers, build profitable relationships and create customer delight

What is the outcome of the marketing process?

capture value from customers to create profits and customer equity

needs

states of felt deprivation

wants

the form human needs take, as shaped by culture and individual personality

demands

human wants that are backed by buying power

What is market offering

some combination of goods, services, information or experiences - offered to a market to satisfy a need or want

exchange

the act of obtaining a desire object from someone by offering something in return

a transaction

a trade between two parties that involves at least 2 things of value, agreed-upon conditions and a time and place of agreement

a market

a set of actual and potential buyers of a product

what do buyers share in a market

a need or want

what are the main elements of a marketing system

suppliers, company, competitors, marketing intermediaries, consumers

CBD

central business district

marketing management

the art and science of choosing target markets and building profitable relationships with them

what questions must a winning marketing strategy answer

what customers will we serve, how can we serve these customers best?

What is de-marketng

the task to temporarily or permanently reduce demand

where does a marketing organisations demand come from?

new customers, repeat customers

negative demand

happens when the market dislikes the product and may pay a price to avoid it - examples include health insurance and dental work

no demand

target consumers may be unaware of or uninterested in the product. the marketing task is to find ways to connect the benefits of the product with the persons natural needs and interests

latent demand

many consumers may share a strong need that cannot be satisfied by any existing product. - e.g. safer communities

what is the marketing task for latent demand

measure the size of the potential market and develop effective products and services that would satisfy the demand

declining demand

less demand for products

what is the marketing task for declining demand?

reverse demand through creative remarketing of the product

irregular demand

many organizations face demand that varies on seasonal, daily, or even hourly basis, causing problems of idle or overworked capacity

what is the marketing task for irregular demand?

find ways to alter the same pattern of demand through flexible pricing (e.g. early-bird specials), promotion, and other incentives

full demand

organizations face this when they are satisfied with the volume of business.

what is the marketing task for full demand

maintain the current level of demand in the face of changing preferences and increasing competition

overfull demand

organizations face a demand level that is higher than they can or want to handle. e.g. a park that is carrying more tourists than facilities can handle

what is the marketing task for overfull demand

demarketing! i.e. ways to reduce the demand temporarily or permanently. not destroy demand, but reduce its level

unwholesome demand

products such as cigarettes and illicit substances, will attract organized efforts to discourage their consumption.

What is the marketing task for unwholesome demand?

get people who like using it to give it up, using tools such as fear messages, price hikes and reduced availability.

UVP

unique value proposition - the core benefit or solution that differentiates your product/service from the competition and positions it as the best possible option on the market.

marketing myopia

the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

production concept

the idea that consumers will favour products that are available and highly affordable, and that the organization should therefore focus on improving production and distribution efficiency

product concept

the idea that consumers will favour products that offer the most quality, performance and features, and that the organization should therefore devote its energy to making continuous product improvements

selling concept

the idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.

marketing concept

the marketing management philosophy which holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

what is the sequence of the marketing concept?

market → customer needs → integrated marketing → profits through customer satisfaction

what is the sequence of the selling concept?

factory → existing products → selling and promoting → profits through sales volume

societal marketing concept

the idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests and society’s long-run interests.

what are the three main aspects of the societal marketing concept

society (human welfare), company (profits), consumers (want satisfaction.

what is the extended marketing mix

product, price, people, placement logistics, promotion, process, physical evidence

CRM

customer relationship management

what does CRM really mean?

managing detailed info about individual customers and carefully managing customer touch points in order to maximise customer loyalty

customer perceived value

the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers

customer satisfaction

the extent to which a product’s perceived performance matches of exceeds a buyer’s expectations

consumer generated marketing

brand exchanges are created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own bran experiences and those of other consumers.

partner relationship management

working closely with partners in other company departments and outside the company to jointly bring greater value to customers

customer lifetime value

the amount by which revenues from a customer over time exceed the company’s cost of attracting, selling and servicing that customer. the value of the entire stream of purchases that the customer would make over a lifetime of patronage.

share of customer

the portion of the customer’s purchasing that a company gets in its product categories.

customer equity

the total combined customer lifetime values of all the company’s customers

what is the ultimate aim of customer relationship management

to produce high customer equity

digital and social media marketing

the use of digital marketing tools (websites, social media, email etc) to engage consumers anywhere/anytime through digital devices

not-for-profit marketing

marketing as practised by a variety of organisations whose aim is to make surpluses so as to continue their operations but that do not seek to make profits for shareholders.