BUSINESS

MARKETING
 MARKETING
•Is a process by which companies
create value for customers and
build strong customer
relationships in order to capture
value from customer in return.
•Marketing is satisfying the
wants and needs of
customers, at a profit.
 The Exchange Process
The act of obtaining a desired object from
someone by offering something of value in
return
• Customer (or buyer)
• Product
• Provider (or seller)
• Transaction
 Marketing vs. Advertising
•Advertising uses paid notices in different
forms of media to draw public attention
to a company, product, or message,
usually for the purpose of selling
products or services. Advertising is one
of many tools marketers use
 Marketing vs. Branding
•Branding is the process of “creating a
unique name and image for a
product in the consumer’s mind”
•Marketing builds brands, and
branding is an important strategic
consideration in marketing, but
marketing is broader than branding
 Marketing vs. Sales
Sales is the process of actually selling
products or services

Effective marketing aligns well with the

sales process and leads to increased
sales, but there is more to marketing
than just supporting sales
Company Orientations
What is Customer Lifetime Value?
•Customer lifetime value
predicts how much profit
the company will make
from the customer
during his or her lifetime
relationship with the
company
 How Do Strong Customer Relationships
Help a Business?
Happy customers
• Return to buy more goods and
services
• Help market the business with
positive reviews or word of
mouth
• Engage with the brand
 GOALS OF MARKETING
Not for profit
organizations: For profit
Promote the mission companies:
by attracting donors Increase profits by
or participants or by selling products or
raising awareness of services to customers
an issue or cause
Difference Between Customers and Consumers

Customers are the Consumers are the

individuals who individuals who actually
buy the product use the product

• The customer and the consumer are not always the same

• Example: A food distributor’s customer is the restaurant, not

the diner who is the consumer
 B2B vs. B2C
•B2B or Business to Business companies
sell products or services to other
businesses
•B2C or Business to Consumer companies
sell directly to consumers
•OLD VIEW OF MARKETING:

“Making a sale-telling and selling”

•NEW VIEW OF MARKETING:

Satisfying customer needs

THE MARKETING PROCESS
CORE CONCEPTS
NEEDS, WANTS and DEMANDS
•Need -state of felt deprivation including physical,
social and individual needs. (physical, social and
individual needs)

•Wants -form that a human need takes, as

shaped by culture and individual personality.

•Wants + Buying Power = Demand

Marketing Offerings
•Needs and wants are fulfilled
through a Marketing Offer:
•Some combination of
products, services,
information or experiences
offered to a market to satisfy
a need or want.
MARKET OFFERINGS
•PRODUCT –
persons, places,
organizations,
information, and
ideas.
•SERVICES –
activity or benefit
offered for sale
that is essentially
intangible and
does not result in
ownership.
•BRAND EXPERIENCE
–should immerse
the consumer in the
brand experience
and may be
intensely personal.
 MARKETING MYOPIA
•Occurs when sellers pay more
attention to specific products
they offer than to the
benefits and experiences
produced by the products.
•They focus on the “wants”
and lose sight of the “needs.”
 Customer Value and Satisfaction
• Care must be taken when
setting expectations for market
offerings:
-if performance is lower than
expectations, satisfaction is low.
- if the performance is higher
than expectations, satisfaction is
high.
 Exchange and Relationships
•Exchange –act of obtaining a
desired object from someone by
offering something in return.
•Relationships –marketing build
and maintain relationships with
target audiences involving an
idea, product, services, or other
object. Value builds relationship.
 MARKET
•Is the set of actual and
potential buyers of a
product.
•These people share a
need or want that can
be satisfied through
exchange relationships.
MODERN MARKETING SYSTEMS
•Suppliers
•Company (marketer)
•Competitors
•Marketing intermediaries
•Consumers

Major environmental forces affects each element.

 Marketing Management
•The art and science of
choosing target markets and
building profitable
relationships with them.
•Aim is to find, attract, keep
and grow customers by
creating, delivering and
communicating superior
value.
•Designing a winning marketing strategy requires
answers to the following questions:

1. What customers will we serve?

-what is our target market?

2. How can we best serve these customers?

-what is our value proposition?
 Selecting Customer to Serve
•Market Segmentation:
Dividing the market into segment of
customers.

•Target Marketing:
Selecting one or more segments to
cultivate.
 Choosing a Value Proposition
•The set of benefits or value a
company promises to deliver to
consumers to satisfy their
needs.
•Value propositions dictate how
firm will differentiate and
position their brands in the
marketplace.
Marketing Management Orientations
• Organizations design and carry out their marketing
strategies under five alternate concepts:

1. Production Concepts
2. Product Concepts
3. Selling Concepts
4. Marketing Concepts
5. Societal Marketing Concept
 MARKETING CONCEPT
•A marketing management
philosophy that holds that
achieving organizational goals
depends on knowing the
needs and wants of target
markets and delivering the
desired satisfaction better
than competitors.
 SOCIETAL MARKETING CONCEPT
•The idea that a company’s
marketing decisions
should consider
consumers wants, the
company’s desires,
consumers’ long-run
interests, and society’s
long-run interests.
The Integrated Marketing Plan
•Transforms the marketing strategy into action.
•Includes the Marketing Mix and 4Ps of
marketing:
Product
price
Place (Distribution)
Promotion
 Building Customer Relationships
•Customer relationship management:
•- the overall process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction.
•CRM deals with aspects of acquiring,
keeping, and growing customers.
•Customer value and satisfaction.
 Customer Perceived Value
•Customer’s evaluation of the difference
between all of the benefits and all of the
cost of a marketing offer relative to those of
competing offers.
•Perception may be subjective
•To some customers “value” might mean
paying more to get more.
 CUSTOMER SATISFACTION
•Extent to which the product’s perceived
performance matches a buyers expectation
•High level of customer satisfaction often
leads to consumer loyalty.
•Some firms seek to delight customers by
exceeding expectations.
•Profitability must be considered.
 Customer Relationship
•Firms may choose to build
relationships at different levels.
•Loyalty and retention programs
build relationship and may include:
Frequency marketing programs (loyalty)

Club marketing programs (Membership)

Changing Nature of Relationships
• Customer profitability analysis eliminates losing
customers and selects profitable ones with whom
relationship should be developed.
• Firms related more deeply and interactively via blogs,
social network Web sites, e-mail, and video sharing.
• Embracing customer-managed relationships requires
marketing via attraction rather than intrusion.
• Customer-generated marketing has become a
significant marketing force.
Partner Relationship Marketing
•Marketing partners help create customer
value and assist in building customer
relationships.
•Partners inside the firm:
cross-functional customer teams
•Partners outside the firm:
supply chain management
 Customers Equity
•The total combined customer lifetime values of
all the company’s current and potential
customers.

•Manage equity by:

-Classifying customers by projected loyalty
and potential profitability.
-manage each group accordingly
Capturing Value From Customers
• Customers lifetime value
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 customers purchasing that a
company gets in their product categories.
Changing Marketing Landscape
•The uncertain economic environment
•The digital age
•Rapid globalization
•Sustainable Marketing – call for more
social Responsibility
•Growth of not-for-profit marketing
MODULE 2
MARKETING FUNCTION
 Marketing Orientation
•Companies with a marketing
orientation focus on identifying and
understanding the customer’s
needs and wants and addressing
them more effectively or efficiently
than one’s competitors
 Why Do Customers Matter in Marketing?

•Marketing exists to help

organizations understand, reach,
and deliver value to their customers
•The customer is considered the
cornerstone of marketing
Segmentation and Targeting
Segmentation is the Targeting is determining
process of dividing which segments are
potential customers most likely to become
customers and directing
into groups to better
marketing efforts to best
understand them to satisfy them
 Defining a Target Market
1. Identify the business
need you address
2. Segment your
total market
3. Profile your target
customer segment(s)
4. Research and validate
your market opportunity
 Value for the Customer
• Value = benefit – cost
• Price is only part of cost
• Customers will consider competitors and substitutes
• Differentiation is how marketers optimize the
elements of a product that provide unique value to
customers
• When a company can create greater value for
customers than its competitors, it has a competitive
advantage
 Value Proposition
A value proposition provides a
very simple answer to the
question: Why should
someone buy what you are
offering?

The value proposition should

be clear, compelling, and
differentiating
Evolving Definitions of the Marketing Mix
 Marketing Plan
•The marketing plan describes how
the company will use the marketing
mix—product, promotion, place,
and price—to achieve its marketing
objectives effectively within the
competitive market environment
THANK YOU!!! :D
 CHAPTER 3
SEGMENTATION
AND TARGETING
SEGMENTATION
•Is the process of dividing potential
customers into groups to better
understand them
TARGETING
•Is determining which segments are
most likely to become customers
and directing marketing efforts to
best satisfy them.
 FIVE CRITERIA FOR A MARKET
1. There must be a true need and/or want for the product, service,
or idea; this need may be recognized, unrecognized, or latent
2. The person/organization must have the ability to pay for the
product via means acceptable to the marketer
3. The person/ organization must be willing to buy the product
4. The person/organization must have the authority to buy the
product
5. The total number of people/organizations meeting the previous
criteria must be large enough to be profitable for the marketer.
 OBJECTIVES OF SEGMENTATION
•To improve an organization’s understanding of who
their prospective customer are and how to serve
them.
•To reduce risk in deciding where, when, how and to
whom a product, service, or brand will be marketed
•To increase marketing efficiency by directing effort
toward designated segment(s) in ways that are
consistent with that segment’s characteristics
PRACTICE QUESTION
What
products or
companies
would find
this market
segmentatio
n by family
life stage
useful?
Choosing a Target Market
The target market should include only those segments of a
market that are both:
• Profitable to serve
• Likely to be receptive to the products a company provides
Common Market Segmentation Approaches
Common Business Segmentation Approaches
• Organization size: by revenue, number of employees, geographic
reach, etc.
• Geography
• Industry
• User status: usage frequency, volume used, loyalty, longevity,
products already in use, readiness to buy, etc.
• Benefits sought
• End use
• Purchasing approaches
Combining Bases for Segmentation
• Geo-cluster approach demographic + geographic data
• Geographic + behavioral data
• Can point companies toward locations where customers are clustered
• Demographic + lifestyle or behavioral segments
Ideal Market Segment
1. Can be measured
2. Is profitable
3. Is stable
4. Is reachable
5. Is internally homogeneous
6. Is externally heterogeneous
7. Is responsive
8. Is cost-effective
9. Helps determine the marketing mix
 Questions to Consider in Selecting a Target
Segment
• Whose needs can you best satisfy?
• Who will be the most profitable customers?
• Can you reach and serve each target segment effectively?
• Are the segments large and profitable enough to support
your business?
• Do you have the resources available to effectively reach
and serve each target segment?
 Targeting Strategy
Concentration
• Only one marketing mix is developed
• Advantage: focus
• Disadvantage if demand in segment declines, company will suffer

Multi-segment
• Marketing mix for each segment
• Advantage: may reach more customers
• Disadvantage: Costs of multiple campaigns and distribution channels
Targeting Strategies
Shaping Marketing Mix for Target Markets
THANK YOU! ☺
 CHPTER 4
MARKETING
STRATEGY
Why is a
Market
Strategy
Important?
 Strategy Identifies Where We Will Compete
• The strategy determines which
markets we will pursue, where
we will sell our goods and
services
• Focuses efforts on a specific
target market
• Tactics indicate specific actions
that we will take in those
markets.
 Strategy Describes the Unique Value for
Customers
• When developing a strategy, the
aim is to identify unique benefits
in the products or services that
customers value and that
differ from what competitors offer
• A strategy should define and
clarify the unique value.
• Tactics include the tasks of
creating, delivering, and
expanding the value
 Strategy Explains How the Company’s
Assets Will Create Unique Value
• How do the company’s activities interact and reinforce one
another?
• For an organization to define a strategy that creates a unique and
valuable position, it must bring together and align the various
capabilities and resources of the business
• Tactics are planned to reinforce this unique value
• Effective tactics, or specific actions, must support the strategy in
order for the customer to have a consistent experience with the
product or service that aligns with the unique value that the
company is seeking to deliver
 Strategy Determines How the Company Will
Sustain Unique Value
• Over time, competitors will try to eliminate the
company’s advantage or copy the areas where it is
successful
• How will the company continue to provide unique
value and protect or expand the areas in which it has
an advantage?
• As the company refines its strategy retain or expand
its advantage, the tactics must also be adjusted to
execute the strategy effectively
Mission Statement

The mission
statement
explains why an
organization
exists
Effective Objectives are:
1.Specific
2.Measurable
3.Have a time
frame
Aligning Annual Company and Marketing
Objectives
Marketing Planning
Process
 Implementation and Budget
• Implementation involves the
tactics used to execute the
strategy
• The implementation process
emphasizes the timely completion
of tasks
• The marketing budget represents
a plan to allocate expenditures to
each of the components of the
marketing mix
 Return on Marketing Investment
•What were the goals of the
campaign?
•How did the target customer
influence the campaign and the
goals?
•Was it successful?
•What metrics were used to
determine the success of the
campaign?
 SWOT
Example
For
College
BCG
Matrix
Strategic
Opportunity
Matrix
Growth Strategies
•Market penetration
•Market development
•Product development
•Diversification
Each strategy entails a different level of
risk
Buyer Personas
What is a Buyer Persona?
•Fictional, generalized representations of
an ideal customer that help a marketer
understand current and potential
customers better
Customer Relationships Management
•A discipline in marketing combining database
and computer technology with customer service
and marketing communications
•Customer relationship management seeks to
create more meaningful one-on-one
communications with the customer by applying
customer data (demographic, industry, buying
history, etc.) to every communications vehicle
THANK YOU! ☺