9 - MARKETING AND ADVERTISING Flashcards
(28 cards)
- Process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
- Process of engaging customers and managing profitable customer relationships
- Both a social and managerial process
Marketing
Two-fold goal of marketing:
- Attract new customers
- Keep and grow current customers
Should not focus on “telling and selling” but ?
“satisfying customer needs”
Marketing Process
- Understand the marketplace and customer needs and wants
- Design a customer value-driven marketing strategy
- Prepare an integrated marketing plan and program
- Build and manage profitable customer relationships
- Capture value from customers
Includes the five core customer and marketplace concepts
Understand the marketplace and customer needs and wants
Five core customer and marketplace concepts
- Needs, wants, and demands
- Market offerings (products, services, and expenses)
- Value and satisfaction
- Exchanges and relationships
- Markets
Answers 2 questions:
1. What customers will we serve (what’s our target market)?
* Market segmentation
* Target marketing
2. How can we serve these customers best (what’s our value proposition)?
* Value proposition – set of benefits or values it promises to deliver to consumers to satisfy their needs
Design a customer value-driven marketing strategy
set of benefits or values it promises to deliver to consumers to satisfy their needs
Value proposition
- Transforms the organization’s marketing strategy into action
- Marketing mix
Prepare an integrated marketing plan and program
marketing tools used to implement the marketing strategy (also called 4Ps)
Marketing mix
what are the 4Ps?
Product
Price
Place
Promotion
- Destination point of the first 3 steps of the marketing process
- Most important step
- Customer relationship management
- Deals with the aspects of acquiring, engaging, and growing customers
Build and manage profitable customer relationships
Deals with the aspects of acquiring, engaging, and growing customers
Customer relationship management
- Focuses on outcomes of building customer relationship such as sales, market share, and profits
Capture value from customers
Possible outcomes of capturing value from customers
- Customer loyalty and retention
* Customer lifetime value – the value of the entire stream of purchases a customer makes over a lifetime of patronage - Share of market and customer
- Customer equity
* Total combined lifetime values of a company’s current and potential customers
- Key building blocks for developing and managing customer relationships
- Influenced by customer expectation
- If you meet their expectations = high satisfaction
- Expectations may also be set by marketers
Value and satisfaction
- Exchange – the act of obtaining a desired object from someone by offering something in return
- May be:
1. Buying the product
2. Acquiring the service
3. Signing up for membership
4. Donating to an organization, etc.
Exchanges and relationships
- Set of actual and potential buyers of a product or service
- Buyers have a common need or want that is satisfied through exchange relationships
- Marketing – making sure that the organization has a profitable relationship with the “market”
Markets
- Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
- Used to engage, inform, and persuade the public to achieve its objective
Advertising
Possible Advertising Objectives
- Informative Advertising
- Persuasive Advertising
- Reminder Advertising
- Communicating customer value
- Building a brand and company image
- Telling the market about a new product
- Explaining how a product work
- Suggesting new uses for a product
- Informing the market of a price change
- Describing available services and support
- Correcting false impressions
Informative Advertising
- Building brand preference
- Encouraging switching to a brand
- Changing customer perceptions of product value
- Persuading customers to purchase now
- Creating customer engagement
- Building brand community
Persuasive Advertising
- Maintaining customer relationships
- Reminding consumers that the product may be needed in the near future
- Reminding consumers where to buy the product
- Keeping the brand in a customer’s mind during off-seasons
Reminder Advertising
Differences between Marketing and Advertising
Marketing
* Systematic planning, implementation, and control of a mix of activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products or services
* Step-by-step process that begins with a unique selling proposition—a short compelling sentence that describes your business
* All marketing elements must work independently but they also must work together toward the bigger goal of one unified marketing campaign with a common message
Advertising
* Only one component of the overall marketing process
* Includes the placement of an ad in such mediums as newspapers, magazines, direct mail, billboards, TV, radio, and online
* Most expensive part of all marketing plans
