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Flashcards in Week 1 Deck (54):
1

What is marketing

Marketing is engaging customers and
managing profitable customer relationships.

2

The twofold goal of marketing is to:

1. attract new customers by promising superior value; and
2. keep and grow current customers by delivering satisfaction.

3

Steps in the marketing process

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4

Marketing definiton today

Today marketing must be understood in the sense of satisfying customer needs. The process by which marketing organisations engage customers, build strong customer relationships and create customer value in order to capture value from customers in return.

5

5 Core marketing concepts

1. Needs wants demands
2. Market offerings
3. Value satisfaction quality
4. Exchange transactions relationships
5. Markets

6

Needs wants demands

As a first step, marketers need to
understand customer needs,
wants and demands, and the
marketplace within which they
operate.

7

Needs

States of felt deprivation
• Physical needs for food,
clothing, warmth and safety.
• Social needs for belonging and
affection
• Individual needs for knowledge
and self-expression

8

Wants

The form of human needs
take as shaped by culture
and individual personality

9

Demands

Human wants that are backed
by buying power

10

Market offering

A market offering is a product that is some combination of
goods, services and experiences that can be offered to a market to
satisfy a need or want.
• In the broadest sense, market offerings include…
• Goods
• Experiences
• Places
• Information
• Services
• Personas
• Organisations
• Ideas

11

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.
• Marketers/businesses see
themselves as selling a
product, rather than providing
a solution to a need.

12

Customer value and satisfaction

Customers form expectations about the value and satisfaction that various market offerings will deliver, and buy accordingly.
• Satisfied customers buy again and tell others about their good
experiences.
• Dissatisfied customers often switch to competitors and
disparage the original product to others.

13

Exchange

Exchange is the act of obtaining a desired object from someone by
offering something in return. Exchange doesn’t always need to be based on money
Adapted

14

Transaction

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

15

Relationship

Relationship looks at how to not only attract, but retain customers

16

What is a market

Buyers who share a particular
need or want that can be
satisfied through exchange
relationships.
It contains both actual buyers
and potential buyers

17

Elements of a modern marketing system

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18

Designing a customer-driven marketing strategy
Marketing management

Marketing management is theart and science of choosing target markets and building profitable relationshipswith them.

The marketing manager’s aim is to attract, engage, keep and grow target customers by creating, delivering and communicating superior customer value.

19

Designing a customer-driven marketing strategy
Two critical questions:

1.
What customers will we serve? (i.e. Who is our target market?)
2.
How can we serve these customers best? (i.e. What is our value proposition?)

20

Selecting customers to serve

Decide who the organisation will serve by examining the various segments available.

Marketers know they cannot serve all customers in every way with a single market offering.

They know it is necessary to select customers they can serve well and profitably.

21

Selecting customers to serve: Demand


Demand can be generated from

new customers (potential); and

repeat customers (existing)

22

Selecting customers to serve: Marketing strategies

Marketing strategies may involve:

Finding, increasing and retaining demand; or

Changing or reducing demand
Adapted from

23

8 types of demand

Negative
No
Latent
Declining
Irregular
Full
Overfull
Unwholesome

24

Negative

A market is in a state of negative demand if a major part of the market dislikes the product and may even pay a price to avoid it.

25

No

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 person’s natural needs.

26

LAtent

Many consumers may share a strong need that cannot be satisfied by any existing product. The marketing task is to measure the size of the potential market and develop effective products and services that would satisfy the demand.

27

Declining

Every organisation, sooner or later, faces declining demand for one or more of its products. The marketing task is to reverse the declining demand through creative remarketing of the product.

28

Irregular

Many organisations face demand that varies on a seasonal, daily or even hourly basis, causing problems of idle or overworked capacity. The marketing task is to find ways to alter the same pattern of demand through flexible pricing, promotion and other incentives.

29

Full

Organisations face full demand when they are satisfied with their volume of business. The marketing task is to maintain the current level of demand in the face of changing consumer preferences and increasing competition.

30

Overfull

Some organisations face a demand level that is higher than they can, or want to, handle. The marketing task, called demarketing, requires finding ways to reduce the demand temporarily or permanently. Demarketing aims not to destroy demand but only to reduce its level, temporarily or permanently.

31

Unwholesome

Unwholesome products will attract organised efforts to discourage their consumption. The marketing task is to get people who like something to give it up, using such tools as fear messages, price hikes and reduced availability.

32

The value proposition

The marketing organisations value proposition is the set of benefits or values that it promises to deliver to customers to satisfy their needs. It should differentiate brands and position them in the marketplace. The proposition answers the customer’s question “Why should I buy your brand rather than a competitors?”

33

Five concepts or philosophies guide marketing efforts:

Production Concept
Product concept
Selling concept
Marketing Concept
Societal marketing concept

34

Production Concept

focus on production & distribution efficiency

35

Product concept

focus on continuous product improvements

36

Selling concept

focus on large-scale selling and promotion (used extensively with unsought goods). Profits through sales volume

37

Marketing Concept

focus on understanding customer needs and wants, and delivering satisfaction efficiently. Profits thorough customer satisfaction

38

Societal marketing concept

Marketing strategy should deliver value to customer in a way that maintains or improves both the consumer’s and society’s well being.
Also sometimes referred to as sustainable marketing

39

Marketing concept

A marketing management philosophy which holds that achieving organisational goals depends on knowing the needs and wants of a target market and delivering the desired satisfaction better than competitors do

40

The marketing program

It builds customer relationships by transformingthe marketing strategy into action. It consists of the firm’s marketing mix –that is, the set of marketing tools the firm uses to implement its marketing strategy.

41

The extended marketing mix

Product- Goods, services, experiences

Price

People - Relationships

Placement logistics - Demand chain management

Promotion

Process

Physical evidence

42

Building customer relationships

Customer relationship management (CRM) is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

43

Customer engagement and today’s digital and social media

The digital age has spawned a dazzling set of new customer relationship-building tools, from websites, online ads and videos, mobile ads and apps, and blogs to online communities and the major social media, such as Twitter, Facebook, YouTube, Instagram and Pinterest.

Customer-engagement marketing goes beyond just selling a brand to consumers. Its goal is to make the brand a meaningful part of consumers’ conversations and lives.

44

Consumer generated marketing
Brand exchanges
Consumer empowerment


Brand exchanges created by consumers can be both invited and uninvited.

Consumers are playing an increasing role in shaping their own brand experiences and those of other consumers.

Brands must embrace this new consumer empowerment and master the new digital and social media relationship tools –or risk being left behind.

45

Partner relationship management

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

46

Partner relationship management

Partners inside the organisation

Marketers have been charged with understanding customers and representing customer needs to different company departments. All departments are responsible for delivering value to customers.

47

Partner relationship management

Partners outside the organisation

Marketing channels consist of distributors, retailers and others who connect the company to its buyers.

48

Relationship marketing: Customer lifetime value

Customer lifetime value (CLV) refers to the value of an entire stream of purchases that the customer would make over a lifetimeof patronage

49

Capturing value from customers

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50

Building the right relationship with the right customers

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51

Changing marketing landscape

1.
The digital age (online, mobile and social media marketing)
2.
The challenging world economy
3.
Measuring marketing’s contribution to organisational performance
4.
Growth of not-for-profit (NFP) marketing
5.
Rapid globalisation
6.
Sustainable marketing

52

The digital age


Information revolution is creating a new environment

Convergence of telecommunications, media and technology (TMT) –computer systems, information services and electronics

Transformation of alliance networks

Accelerating change and the emergence of new global competitors

53

Measuring marketing’s contribution to organisational performance

Businesses exist to create wealth for their owners, while not-for-profit organisations seek to survive in order to continue satisfying those who depend on them.

Marketers are challenged to show an impact in sales, profit and the ongoing success of the organisation.

NFPand commercial organisations

54

Sustainable marketing: The call for more environmental and social responsibility

A further factor in today’s marketing environment is the increased call for companies to take responsibility for the social and environmental impact of their actions.

Ethics and environmental movements are placing even stricter demands on companies as time passes.