Marketing Concepts PDF

Marketing - Marketing is engaging customers and managing profitable customer relationships. - Finding out what your target customers need/desire and problems then producing a product that satisfy these needs/desire or solve their problems - Goals of Marketing - Attract ne...

Marketing - Marketing is engaging customers and managing profitable customer relationships. - Finding out what your target customers need/desire and problems then producing a product that satisfy these needs/desire or solve their problems - Goals of Marketing - Attract new customers by promising superior value - Keep and grow current customers by delivering - Satisfaction Outside in and inside out approach - Outside in is starting with the customers while inside out is creating a product that the company likes - Inside out does not work now as there is so many competitions and information What is marketed - Goods - Services - Events and experiences - Persons - Place and properties - Organizations - Information - Ideas Importance of marketing - Creates, communicates and delivers value relevant to customers - Build and maintain relationships with customers and partners - Create demand and business which financial success depends on Forms of marketing Traditional marketing - Making a sale - Abundance of products in nearby stores - TV, magazine, direct mail Contemporary marketing - Satisfying customer needs - Imaginative Web sites and apps, blogs, online video and social media - Reach customers directly, personally and interactively (Personalise) Reasons why the marketing landscape is changing - Digital Age: - Can learn more about customers - Change the way distribution is done - Customised dialogue with customers and more engagement - Changing Economic Environment - Marketers are focusing on value, practicality and durability in their product offerings - Customers are getting more Affluent hence more demands - Growth of Not-for-profit marketing - Charities - Rapid globalisation and sustainable marketing - Glocalization: go global but think local - Taking a global view of the industry, competitors and customers - Socially Responsible Marketing - Marketers are being called on to take greater responsibility for social and environmental impacts of their actions - Eg. No shark fins, recycle, reduce carbon footprints Core marketing concepts: 1\. Needs, wants, and demands Need - Basic human requirements. A state of felt deprivation including physical, social and individual needs. - Needs can be physical, social and individual - Physical needs: Hunger, thirst, convenience, shelter - Social needs: Sense of belonging, communication, affection - Individuals needs: Ego, self-expression, learning and knowledge Wants - A form that a human need takes as shaped by culture and individual personality. - Wants are things that can satisfy needs - For example the need of thirst, to quench it one buys a bottle water Demand - Demands are wants for a specific product backed by buying power to pay - For example, a working young adult is thirsty, they are of working class and young thus they may be willing to pay for a cup of bubble tea to quench their thirst when they can drink tap water 2\. Marketing offerings - A combination of product, services, information or experiences offered to a market to satisfy a need or want - For example, Ikea sells an experience by walking through a homely environment, selling physical products as well as delivery service 3\. Marketing Myopia - Marketing myopia occurs when sellers pay more attention to the specific products they offer (Eg how they can improve and make it better & better) rather than to the benefits and experiences produced by the products (what the customers Original Needs or Wants are). - Eg Nokia vs apple 4\. Value & Satisfaction - Customers form expectations about the value and satisfaction of market offerings - Customer-perceived value: Customer's evaluation of a marketing offer's value relative to those of competing offers - Value proposition: The set of benefits or values a company promises to deliver to consumers to satisfy their needs. What differentiates products from others - Customer satisfaction: Extent to which a product's perceived performance matches a buyer's expectations. If exceed expectation customer will have a greater change for loyalty 5\. Exchange, Transaction & Relationship Exchange - Act of obtaining a desired object from someone by offering something in return. Money not involved. Transaction - A trade of values between 2 willing parties mainly include cash, credit etc Relationships - Consist of actions to build and maintain desirable relationships 6\. Target Market - The set of actual and potential buyers of a product - These people share a need or want that can be satisfied through exchange relationships - Eg. Families, young parents, babies 7\. Marketing Mix Impact of digital media on 4 Ps 4Ps to 4Cs Product: What is the product being sold- Co-create: Getting user wants and inputs so that they get a say in the product they want. This will result in a product customer wants Price: Cost of product -- Currency: Constant change in demands cause a constant change in prices. E.g. hotel at specific time cost different Promotion: How customers are convinced to buy the product -- Conversation: 2-way engagement between customers and sellers. How to get buyers to make a purchase Place: Where do you sell the product -- Communal Activation: How the product is being distributed. Things can now be delivered to the doorstep rather than just stores