Marketing Function Chapter 2 PDF

Marketing Function Principles of Marketing Specific Learning Outcomes At the end of this chapter, you will be able to Describe the significance of a clear value proposition Explain the role marketing plays in creating and communicating value  Marketing Orientation Companies with...

Marketing Function Principles of Marketing Specific Learning Outcomes At the end of this chapter, you will be able to Describe the significance of a clear value proposition Explain the role marketing plays in creating and communicating value  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 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 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 Value Proposition The Marketing Mix Evolving Definitions of the Marketing Mix 4 P’s 4 C’s Product Consumer soluti Price on Promotion Cost Place Communication Convenience Product Promotion Place Price  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. The Marketing Planning Process Activity: Match the Marketing Mix Below to a Market Segment 1. Exceptionally Soft Cashmere blankets $89.99 2. Buy in store or order online for two day free delivery. Free returns. Excellent customer service. 3. Samples sent to lifestyle bloggers, ads in home magazines Parents of newborns Women aged 40-55 Boys 14-17  Quick Review Why is the customer the cornerstone of marketing? What are segmentation and targeting? What is the marketing mix? How do organizations use the marketing mix (often called the four Ps) to market to their target customers? What is the role of a marketing plan in guiding marketing activities? References Fauteux, J., Best, D., Evans, D., MacMaster, R., Powers, B., Swaniker, G., Brooks-Joiner, H., and Ghasemi, K. (Eds.). (2021). Introduction to Marketing I (2nd ed.). NSCC & Lumen Learning. https://pressbooks.nscc.ca/nsccprincip lesofmarketing2e/ Learn with whiteboard entrepreneur. (n.d.). What is value proposition statement- value proposition explained (with examples) [video]. YouTube. https://youtu.be/aWB5O8oZmqs? si=qFM86NGeer5GFYRO