SEM01 2024 Marketing Seminar 1 PDF

Marketing Seminar 1 Mária Magyar, PhD  Seminar 1 MARKETING INTRODUCTION, MARKETING PROCESS Mária Magyar, PhD  DEPARTMENT OF MARKETING AND ARGUMENTATION Dr. Mária Magyar assistant professor Ema...

Marketing Seminar 1 Mária Magyar, PhD  Seminar 1 MARKETING INTRODUCTION, MARKETING PROCESS Mária Magyar, PhD  DEPARTMENT OF MARKETING AND ARGUMENTATION Dr. Mária Magyar assistant professor Email: [email protected] LECTURERS (and Dr. Krisztina Bence-Kiss SEMINARS) assistant professor Email: [email protected] Lecturers of Seminars: Dr. Mária Magyar, Dr. Krisztina Bence-Kiss, Ottília Táskai, Tünde Szász  In this class you will have the opportunity to learn: COURSE DESCRIPTION marketing theory and practice to analyse to develop to understand the marketplace integrated marketing strategy and customer needs marketing programs  12 in-class + 3 video lectures 8 seminars Lecture and seminar materials, the scores, Course additional tasks, all communication on information Moodle (https://moodle.elte.hu/) Video recordings (GTK Faculty Video Library) Detailed timetable  THE OFFERED GRADE IS BASED ON: Course work (100 points) MID-term Tests 90 points: Mid-term Test 1 30 points Mid-term Test 2 30 points Mid-term Test 3 30 points Assessments* I. Other course work 10 points (offered grade) A student is eligible for the examination above 30 points or at least 50% (15 points) in Midterm2 Midterm 2 can be retaken in the time of Midterm3 (retake midterm option) *INTERNATIONAL STUDENTS: gtk.elte.hu / about us/ exam centre „The An offered grade can be obtained above 60 points principles and ground rules of assessment” OFFERED GRADES/EVALUATION: * HUNGARIAN STUDENTS: 60,00 – 69,99 % satisfactory (3) gtk.elte.hu / Tanulmányi Hivatal / Alapképzés / 70,00 – 84,99 % good (4) Számonkérések  „Számonkérések és értékelések általános követelményrendszere a 85,00 – 100% excellent (5) GTK alapszakjain”  MIDTERM TEST DATE TIMETABLE OF MID-term test 1 7th of October THE MIDTERMS MID-term test 2 13th of November MID-term test 3 11th of December 7  A student is eligible for the examination above 30 points or at least 50% (15 points) in Midterm2 If the student does not receive or does not accept their offered grade but fulfils the requirements of exam eligibility, they can fulfil the course with an exam. EXTRA POINTS (10%) obtained during the teaching Assessments II. period only count towards the offered grades but (exam evaluation) are not added to the exam points. EXAM is based on the textbooks, lecture contents and seminars GRADE LIMITS on the exams: 50,00 – 54,99 % sufficient (2) 55,00 – 69,99 % satisfactory (3) 70,00 – 84,99 % good (4) 85,00 – 100 % excellent (5)  Course book: Kotler - Armstrong: Principles of Marketing, Pearson, 2017 Lecture slides, video recordings (Moodle, Learning Video Library) Resources Additional material Hungarian textbook: Kotler-Keller (2012): Marketingmenedzsment, Akadémiai Kiadó (MERSZ)  What is Marketing Marketing process Learning Understanding the Marketplace and Objectives Customer Needs Designing a Customer Value-Driven Marketing Strategy Constructing an Integrated Marketing Program Managing Customer Relationship Capturing Customer Value  Corporate purpose „The purpose of a business is to get and keep a customer. Without customers, no amount of engineering wizardry, clever Theodore Levitt financing, or operations expertise can keep a company going.” Theodore Levitt Theodore Levitt (1986). “Marketing Imagination: New, Expanded Edition”, p.135  Peter Drucker: „Because the purpose of business is to create and keep customers, it has only two central functions – marketing and What is innovation. The basic function of marketing is to attract and retain Marketing? customers at a profit.” "There will always, one can assume, be a need for some selling. The aim of marketing is to make selling unnecessary”. (Drucker, 1999)  OLD SENSE: „telling & selling” What is Marketing? NEW SENSE: „satisfying customer needs”  Marketing is engaging customers and managing profitable customer relationships. What is (Kotler - Armstrong, 2017) Marketing? Marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. (Kotler - Armstrong, 2017)  The Marketing Process EXCHANGE (Kotler - Armstrong, 2017)  Learning Objectives STEP 1. Understanding the Marketplace and Customer Needs  (1) marketplace, market (2) needs, wants, and demands Understanding the Marketplace and (3) market offerings (products, services, Customer Needs and experiences) (Kotler - Armstrong, 2017)  A market is set of actual and potential buyers. Consumers market when they: search for products interact with companies to obtain information make purchases E.g.: consumer market, business market,.. Market (Kotler - Armstrong, 2017)  Needs* - basic human requirements (what you must have for a satisfactory life): (physical, social, individual needs) „I am hungry, I need food” Needs Wants are the form of human needs based on culture and one’s personality. Wants „I want to eat pizza” Demands are human wants that are based on Demands buying power. „Shall I go to Pizza Hut, Pizza King or Vapiano?” *Definition: Needs are states of felt deprivation. (Kotler – Arrmstrong, 2017)  Consumers’ needs and wants are fulfilled through market offerings. Market offerings are some combination of products, services, information, or Marketing experiences offered to a market to satisfy offerings a need or want. (Kotler - Armstrong, 2017)  Understanding the Marketplace and Customer Needs Marketing myopia is focusing only on existing wants and ignores changes in underlying consumer needs. *Marketing myopia –short-sightedness (Kotler - Armstrong, 2017) Understanding the Marketplace and Customer Needs Outstanding marketing companies make a lot of efforts to learn about the marketplace they operate in, they try to understand their customers’ needs, wants, and demands, and design their marketing offerings based on that information.  Learning Objectives STEP 2. Designing a Customer Value-Driven Marketing Strategy STEP 2. Designing a Customer Value-Driven Marketing Strategy Marketing management is the art and science of choosing target markets and building profitable relationships with them. What customers will we serve (target market – segmenting, targeting)? How can we best serve these customers (value proposition, marketing orientation)? (STP – segmenting, targeting, positioning) (Kotler - Armstrong, 2017) STEP 2. Designing a Customer Value-Driven Marketing Strategy A brand’s VALUE PROPOSITION is the set of benefits and advantages designed to meet customers’ needs. Value propositions differentiate one brand from another. (Kotler - Armstrong, 2017) STEP 2. Designing a Customer Value-Driven Marketing Strategy Marketing Management Orientation Societal Production Product Selling Marketing Marketing concept concept concept concept concept (Kotler - Armstrong, 2017) STEP 2. Designing a Customer Value-Driven Marketing Strategy PRODUCTION concept Societal Production Product Selling Marketing Marketing concept concept concept concept concept Production concept: Consumers will favor products that are available and highly affordable. It leads to companies focusing too narrowly on their own operations (high production efficiency). Risk: marketing myopia (Kotler - Armstrong, 2017)  STEP 2. Designing a Customer Value-Driven Marketing Strategy PRODUCT concept make-and-sell Societal Production Product Selling Marketing Marketing concept concept concept concept concept Product concept: Consumers favor products that offer the most quality, performance, and features. The focus is on continuous product improvements. Risk: marketing myopia (Kotler - Armstrong, 2017) STEP 2. Designing a Customer Value-Driven Marketing Strategy SELLING concept Societal Production Product Selling Marketing Marketing concept concept concept concept concept Selling concept: Consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort. e.g. unsought goods - life insurance Risk: short term efficiency with creating sales transaction STEP 2. Designing a Customer Value-Driven Marketing Strategy MARKETING concept Societal Production Product Selling Marketing Marketing concept concept concept concept concept Marketing concept: Know the needs and wants of the target markets and deliver the desired satisfaction better than competitors. The marketing concept is a customer-centered sense-and-respond philosophy (Kotler - Armstrong, 2017) STEP 2. Designing a Customer Value-Driven Marketing Strategy an inside-out outside-in perspective (Kotler - Armstrong, 2017) STEP 2. Designing a Customer Value-Driven Marketing Strategy SOCIETAL MARKETING concept Societal Production Product Selling Marketing Marketing concept concept concept concept concept Societal marketing concept: The company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-term interests. e.g. sustainable marketing, shared value (both societal needs, (Kotler - Armstrong, 2017) not only economic needs) STEP 2. Designing a Customer Value- Driven Marketing Strategy To design a successful marketing strategy, the marketing manager must answer two important questions: What customers will we serve (what’s our target market –segmenting, targeting)? How can we serve these customers best (value proposition – differentiation and positioning, marketing management orientation)?  Learning Objectives STEP 3. Constructing an integrated marketing program STEP 3. Constructing an integrated marketing program Marketing mix, the set of marketing tools the firm uses to implement its marketing strategy. The marketing mix is a set of tools known as ‚the four Ps’: Product Price Place Promotion Integrated marketing program—a comprehensive plan that communicates and delivers intended value (Kotler - Armstrong, 2017) STEP 3. Constructing an integrated marketing program The marketing program consists of the firm’s marketing mix, the set of marketing tools the firm uses to implement its marketing strategy. Marketing mix tools: 4P: product, price, place, promotion  Learning Objectives STEP 4. Managing Customer Relationships  STEP 4. Managing Customer Relationships Customers form expectations about the value and satisfaction of various market offerings and Customer then buy a product accordingly. Value and Customer value and customer satisfaction are Satisfaction key building blocks for developing and managing customer relationships. 39 (Kotler - Armstrong, 2017) STEP 4. Managing Customer Relationships Relationship Building Blocks Customer- Customer perceived value satisfaction the difference how well the between total perceived customer performance perceived meets the benefits and customer's customer cost expectations (Kotler - Armstrong, 2017) STEP 4. Managing Customer Relationships Customer relationship management—the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. (Kotler - Armstrong, 2017) STEP 4. Managing Customer Relationships The first three steps in the marketing process all lead up to the fourth and most important step - building and managing profitable customer relationships. Customer value and customer satisfaction are key building blocks for developing and managing customer relationships. Learning Objectives STEP 5. Capturing Customer Value  STEP 5. Capturing Customer Value Exchange is the act of obtaining a desired object from someone by offering something Exchange in return. Relationship Marketing actions try to create and maintain desirable exchange relationships. EXCHANGE (Kotler - Armstrong, 2017) STEP 5. Capturing Customer Value Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage. Example: $100/ week 50 weeks/ year $50 000 10 years (Kotler - Armstrong, 2017)  To increase customer equity, Cadillac is making the STEP 5. Capturing Customer Value classic car cool again among younger buyers, encouraging consumers to “Dare Greatly”with the car performance, power and design. Customer equity is the total combined customer lifetime values of all of the company’s customers. STEP 5. Capturing Customer Value The aim of customer relationship management is to produce high customer equity. Customer equity is the total combined customer lifetime values of all of the company’s customers.  What is MARKETING? „telling and selling”? GOAL of marketing: SATISFYING CUSTOMER LONG TERM NEEDS SATISFACTION SUMMARY MARKETING BUILDING STRONG PROCESS CUSTOMER RELATIONSHIPS COMPANIES CREATE VALUE FOR CUSTOMERS [email protected]