Principles Of Marketing Lesson 1-7 PDF

PRINCIPLES OF MARKETING Lesson 1: A Framework for Marketing Marketing - According to the American Marketing Association, it is an activity set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, p...

PRINCIPLES OF MARKETING Lesson 1: A Framework for Marketing Marketing - According to the American Marketing Association, it is an activity set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. - Key Takeaways from the definition 1. Is an organizational function because it is a core task that is expected of a modern organization, whether or not it operates for profit. 2. A set of processes because there are essential tasks that have to be engaged to produce a viable marketing strategy. 3. Has the delivering of value to customers. 4. Has at its heart a give-and-take relationship, Study Marketing 1. Enables profitable transactions to occur. 2. Delivers value 3. Benefits society 4. Costs money 5. Offers people career opportunities Goals of Marketing 1. Acquiring Customers 2. Retaining Customers 3. Turning customers into brand ambassadors The Marketing System The Marketing Process Components Strategic Marketing - Customer Segmentation - Target Market Selection - Value Positioning Tactical Marketing: Value Deployment - Product design and development - Product portfolio management - Service development - Pricing - Distribution and Logistics Tactical Marketing: Value Communication - Salesforce strategies - Sales promotion strategies - Advertising Lesson 2: Needs, Wants, and Demands Needs - A state of feeling deprivation about something that is deemed to be necessary. Wants - Specific manifestations of needs Demands - Wants that are backed by purchasing power Maslow’s Hierarchy of Needs Theory - The most basic needs represented as the lower levels of the pyramid models must first be met before the individual can feel a strong desire for the higher level needs. Lesson 3: Marketing Origins, Exchange and Value The Marketing Process Components Stage 1. Supply < Demand Seller’s Market - The manufacturers generally have no problems selling whatever they produce. Production Orientation - Taking advantage of the demand for a particular product by producing as much of the product as possible to meet the demand. Stage 2. Supply < Demand, Competition Growing Product Orientation - Mindset that drives innovation; improvement in a product, such as quality, features, comfort, and design, is undertaken in the hope that the product will speak for itself and that consumers will choose the product based on its merits. Colloquially referred to as “building a better mousetrap” Stage 3. Supply > Demand Sales Orientation - Using sales organizations to push a product directly to the customers. When a sales orientation works, it can work for the benefit of all parties. Insurance. On the other hand, when it does not work, it can quickly turn into hard selling. Stage 4. Supply > Demand, Customer-centric Strategies Emerge Marketing Orientation - Firms prioritize customer needs more than their own. Marketing orientation begins with identifying and understanding a particular target market; then products are designed according to what could best fit the needs of the target market, priced according to their typical budgets, sold where it is most convenient for them, and promoted in a way that best catches their attention. The Concept of Exchange - Marketing is all about fostering positive exchanges. - Customers feel better off after a transaction because otherwise, they may feel that they should have spent their money elsewhere–a feeling that will prevent them from becoming loyal customers. - Marketing-oriented exchanges to be successful, it is essential that companies know what the market needs. Value Mean The Concept of “Value” - Value is a very personal thing, which means it can be very subjective or a function of the customer’s condition (such as hunger), experiences, personal history, social interactions, perceptions, education, and so much more. Five Kinds of Economic Utility That Can Be Offered by Products and Services 1. Form Utility - A product, by its very form, saves the consumer from the effort of having to make the product himself. 2. Place Utility - The convenience offered by making a product available around the proximity. 3. Time Utility - If a firm can offer a product or service far quicker than alternative providers, the customer will also value this speed of service. 4. Possession Utility - For some products, mere ownership is already valued by the customer. 5. Information Utility - Knowing certain things about the product can already imbue it with value. Lesson 4: Traditional and Contemporary Approaches to Marketing Traditional Approaches in Marketing - Focus on production, product, selling methods, and the market - Non-interactive approach or one-way communication - The goal is to pull customers whatever the cost Contemporary Approaches in Marketing - Focus on relationships, social awareness, and content. - Interactive approach - Stress the importance of customer satisfaction and offering great support to the customers or clients. Lesson 4: Relationship Marketing Relationship Marketing - Strategy of Customer Relationship Management (CRM) that emphasizes customer retention, satisfaction, and lifetime customer value. - Process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction thus ensuring brand loyalty. Levels of Relationship Marketing a. Basic Marketing - Also called direct sales, and the most basic level of interaction between the company and the customer. - This level is where sales talk happens wherein salespeople introduce and give information on the quality and benefits that can be derived from the product he/she is selling. b. Reactive Marketing - The sales agent already persuaded the buyer to buy the product, there is where the sales agent gives a contact number to the customer in case of concerns or questions about the product. c. Accountable Marketing - Sales agents voluntarily contact the new customer to get feedback and suggestions for the product. d. Proactive Marketing - Salespersons contact regular customers to get feedback. e. Partnership Marketing - The company already built a loyal group of customers. - Their loyal customers are helping in promoting the products or business by word of mouth. Lesson 5: Customers Value Customers Value - Perception of what a product or service is worth a customer versus the possible alternatives. - Worth means whether the customer feels s/he got benefits and services over what s/he paid. - Equation: Benefits-cost (CV = B - C). Importance of Customer Value - Designing and providing superior customer value are the keys to successful business strategy in the 21st century. - Value reigns supreme in today’s marketplace and marketspace. - Customers will not pay more than a product is worth and will reward excellence. - A customer-centric culture provides focus and direction for the organization, ensuring that exceptional value will be offered to customers. - Designing and delivering superior customer value propels organizations to market leadership positions in today's highly competitive global market. - Providing outstanding customer value has become a mandate for management. Lesson 6: Relationship Marketing Strategies and Tools 1. Networking 2. Cherish each customer 3. Listen to your customers 4. Build a brand identity 5. Give free information 6. Loyalty rewards 7. Communicate often 8. Special events 9. Face to Facetime Lesson 7: Customer Service Customer Service - Act of taking care of the customer's needs, by providing and delivering professional, helpful, high-quality service and assistance before, during, and after the customer's requirements are met. Characteristics of Good Customer Service Promptness Politeness Professionalism Personalization 8 Benefits of Good Customer Service 1. Retain your customers 2. Encourage customers loyalty 3. Build a strong culture and reputation 4. Get Referrals 5. Boost Sales 6. Upsell a products 7. Improve employees happiness 8. Remain competitive in the marketplace