Mark 2120: Marketing Management Lecture 2: Marketing Process PDF

MARK 2120: Marketing Management Lecture 2: Marketing Process MARK 2120, L1, L2 & L3 Fall 2024 Prof. Sophie Fan 1 Course Roadmap Part I. Defining Marketing and the Marketing Process Introduction and the marketing process Part...

MARK 2120: Marketing Management Lecture 2: Marketing Process MARK 2120, L1, L2 & L3 Fall 2024 Prof. Sophie Fan 1 Course Roadmap Part I. Defining Marketing and the Marketing Process Introduction and the marketing process Part II. Understanding the Environments (3Cs) Company and marketing strategy (Company) Assessing (global) marketing environment (Competition) Understanding customer behaviors (Consumer) Managing marketing information (Marketing Research) Part III. Setting the Customer-Driven Marketing Strategy (STP) Segmentation, targeting, and positioning Part IV. Designing Integrated Marketing Mix (4Ps) Product Pricing and Place Promotion 2  Marketing Structure What is my Business? Understanding the CUSTOMER COMPANY COMPETITION Environment Where do I want to go? SEGMENTATION TARGETING POSITIONING Setting the Strategy How do I get there? Designing the PRODUCT PRICE PLACE PROMOTION Marketing Mix 3 What is Marketing? interact 4 What is Marketing? 5 Topic 1: Needs, Wants, and Demands 6 Topic 1: Needs, Wants, and Demands Question: Why are you in this class meeting? To take MARK2120 7 Topic 1: Needs, Wants, and Demands Needs States of felt deprivation Our decisions are guided by some needs. The needs can be on different levels a hierarchy of abstractness. Human needs include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. Which one is the most abstract needs? Happiness Survival (food, safety, belongingness) 8 Topic 1: Needs, Wants, and Demands Needs States of felt deprivation Cultural and individual decoration Wants The form human needs take as they are shaped by culture and individual personality If you feel hungry and need food, what would you want to eat? If you feel inadequate and need an enhanced self-esteem, what would you want to do? 9 Topic 1: Needs, Wants, and Demands Needs States of felt deprivation Cultural and individual decoration Wants The form human needs take as they are shaped by culture and individual personality $$$ Demands Human wants backed up by buying power When backed by buying power, wants become demands. You want to satisfied your wants via buying the targeted product 10 Topic 1: Needs, Wants, and Demands What can be marketed to satisfy needs, wants and demands? (i.e., what can be marketing offerings?) 11  What Can Be Marketed? Goods (Physical Products) 12 What Can Be Marketed? Services 13  What Can Be Marketed? Events Experiences 14 What Can Be Marketed? People/Characters 15 Topic 1: Needs, Wants, and Demands Marketing myopia: The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products 16 Marketing Myopia Let’s return to the concepts of needs and wants… Here are some examples of Marketing Myopia Company Consumers’ wants Consumers’ needs SONY Video games Entertainment Nokia Cell phones Communication Facebook Social network sites Belongingness Lord & Taylor Department store Convenience If the marketer is myopic, there is essentially no way out, But if she “sees through” the superficial want…, they can find some new opportunities. 17 Topic 1: Needs, Wants, and Demands Needs States of felt deprivation Cultural and individual decoration Wants The form human needs take as they are shaped by culture and individual personality $$$ Demands Human wants backed up by buying power 18 Some More Examples Need: Survival Need: Safety Need: Love To have money after To lower risk in air travel Feel valued by your accidents or retirement partner Insurance Preference for large (vs. Diamond small) planes 19 Topic 1 (Needs, Wants, and Demands) Review Needs  Wants  Demands Marketing offerings (Physical Products, Services, Events, Experiences, People/Characters) Marketing myopia 20 21 Topic 2: Designing Customer Driven Marketing Strategies 22 Topic 2: Designing Customer Driven Marketing Strategies Marketing Management Orientations 23 Marketing Management Orientations 1) Production concept The idea that consumers will favor products that are available and highly affordable, and that management should therefore focus on improving production and distribution efficiency. 2) Product concept The idea that consumers will favor products that offer the most quality, performance and innovative features, and that an organization should thus devote energy to making continuous product improvements. 3) Selling concept The idea that consumers will not buy enough of the These three orientations organization's productsare kind of obsolete unless it undertakes a large-scale 24  Marketing Management Orientations 4) Marketing concept Achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. 5) Societal marketing concept The organization should determine the needs, wants and interests of target markets. It asks if the firm that senses, serves and satisfies individual wants is always doing what's best for consumers and society in the long run. These two orientations are more modern 25 Topic 2: Designing Customer Driven Marketing Strategies 26 Selling Concept vs. Marketing Concept Starting point Focus Means Ends Factory Existing Selling Profits product and through s promoti sales volume ng The selling concept Product-oriented The selling concept takes an inside-out perspective. 1) It starts with the factory, 2) focuses on the company's existing products, and 3) calls for heavy selling and promotion to obtain profitable sales. 4) It focuses on customer conquest - getting short-term sales with little concern about who buys or why 27 Selling Concept vs. Marketing Concept Starting point Focus Means Ends Market Custom Integrat Profits through er ed customer needs marketi satisfaction The marketing concept  ng Customer-oriented The marketing concept takes an outside-in perspective. 1) It starts with a well-defined market, 2) focuses on customer needs, co-ordinates all the marketing activities affecting customers, and 3) makes profits by creating long-term customer relationships based on customer value and satisfaction. 4) companies produce what consumers want, thereby satisfying consumers and making profits 28 Societal Concept Societal marketing: The company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests. 29 Societal Marketing https://www.youtube.com/watch?v=vgEGXicDgAg 30 Topic 2 (Designing Customer Driven Marketing Strategies) Review Five marketing management orientations  What are they?  Which are more obsolete and which are more modern?  Differences between selling and marketing orientations  Societal Marketing 31 Topic 3: Preparing an Integrated Marketing Program 32  Marketing Mix Product Price Features List price Quality Discounts Brand name Allowances Packaging Payment method Warranties Payment period etc. etc. Target Customers Place Promotion Locations Advertising Intermediaries Personal selling Inventory Sales promotion Transportation Publicity etc. etc. 33 Marketing mix: The set of tools the firm uses to implement its marketing strategy (4 Ps) Topic 3 (Preparing an Integrated Marketing Program) Review Core elements of marketing mix Marketing orientation is an orchestrated integration of 4 P’s. 34 Topic 4: Building Customer Relationships 35 Building Customer Relationship Customer Relationship Management The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Customer Perceived Value—HOW? 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. 36 Building Customer Relationship Customer- Customer perceived value satisfaction The difference The extent to which between total perceived customer perceived performance benefits and matches a buyer’s customer cost expectations relative to those of competing offers. Why satisfied customers are so valuable ? What will happen if marketers set the level of expectations too high or 37 too low? Building Customer Relationship Frequency marketing programs reward customers who buy frequently or in large amounts.  Frequent flyer programs  Hotels’ room upgrades  Supermarkets 38 Building Customer Relationship Club marketing programs offer members special benefits and create member communities. Apple  Monthly meetings  Training classes  Product discounts  Swapping ideas Weber grills  Access to online grilling classes  Interactive recipe box 39 Building Customer Relationship New Marketing Old Marketing (Customer-Engagement Marketing) Fostering direct and continuous customer Marketing brands to involvement in shaping customers brand conversations, experiences, and community 40 Building Customer Relationship Consumer generated marketing: Consumers playing a bigger role in shaping products and brand content (e.g., creating commercials for a brand). LULULEMON 41 Topic 4 (Building Customer Relationships) Review What is customer relationship management? What is customer perceived value? Frequency marketing programs Club marketing programs Old marketing  New marketing (customer-engagement marketing) Consumer generated marketing 42 Topic 5: Capturing Value from Customers 43  The Changing Nature of Customer Relationships Relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers. Relating for the long term uses customer relationship management to retain current customers and build profitable, long-term relationships. Relating directly uses direct marketing tools (telephone, mail order, kiosks, Internet) to make direct connections with customers. 44  Marketing Structure What is my Business? Understanding the CUSTOMER COMPANY COMPETITION Environment Where do I want to go? SEGMENTATION TARGETING POSITIONING Setting the Strategy How do I get there? Designing the PRODUCT PRICE PLACE PROMOTION Marketing Mix 45 Session Review 46 Next class Company and marketing strategy : Read Chapter 2 before the class Read the lecture 3_slides & lecture 3_worksheet on Canvas before the class Photo-cards! Name-Tag (please bring it with you) 47