What is Marketing PDF

Tutorials: attend 5/9 for compulsory 10% What is Marketing: The process of maximising returns to stakeholders by developing exchanges with valued consumers ad creating an advantage for them Is a process, we the consumers are the end product We are stakeholders of the process, our likes dislikes etc...

Tutorials: attend 5/9 for compulsory 10% What is Marketing: The process of maximising returns to stakeholders by developing exchanges with valued consumers ad creating an advantage for them Is a process, we the consumers are the end product We are stakeholders of the process, our likes dislikes etc Value, we will not buy unless we see value, sellers will not sell if there is not value in it American marketing association: The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers clients partners and society at large Creating: products services Communicating: Delivering: how you access the products (distribution) Exchanging: price Marketing is the process by which marketing organisations engage customers, build strong customer relationships and create customer value in order to capture value from customers in return Behind marketing is massive network of people, technologies, and activities competing for consumers attention and purchases A social and managerial process, by which individuals and organisations obtain what they need and want, through creating and exchanging value with others Understanding the marketplace and customer needs: Customer needs, wants and demands Marketer needs to consider: What is: Need - state of felt deprivation Wants - the form human needs take, as shaped by culture and individual personality Demands - human wants that are backed by buying power Market offerings: Goods, services and experiences Some combination of goods, services, information or experiences Offered to market to satisfy a need or want Goods, services/experiences, persons, places, organisations, information, ideas Exchanges, transactions and relationships: Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly Exchange: the act of obtaining a desired object from someone by offering something in return Transaction: trade between two parties that involves at least 2 things of value agreed upon conditions and a time and place of agreement Relationships: Marketing consists of actions taken to build and maintain desirable relationships with target audiences involving a product, service, idea or other object Q: Why is it important for marketers to set the right level of expectations for customers? Understanding the marketplace and customer needs: set of actual and potential buyers of a product Share a particular need or want That can be satisfied through exchange relationships Main elements: Suppliers Company Competitions Marketing intermediaries Consumers Designing a customer driven marketing strategy: Marketing management: The art and science of choosing target markets and building profitable relationships (reason why they sell) with them - has to be profitable, even social enterprise, there must always be a profit To design a winning marketing strategy, the marketing manager must answer two important questions What customers will we serve (who is the target market)? How can we serve these customers best (value proposition)? Selecting customers to serve: Marketing organisations demand comes from two groups: New customers, repeat customers Marketing management seeks to affect the level, timing and nature of demand in a way that helps the organisation achieve its objectives In de-marketing the task is to temporarily or permanently reduce demand Q: why is it important for a marketer to decide which customers it will serve? Companies have finite resources, can't market to the whole world so demographics and segments of market must be target because of limited resources Q: give some reasons why a marketer might choose to de-market? Seasonal demand, change customers expectations - premium product or cheaper alternative, image must change, obsolescence - reduce demand for old products to encourage buying of new product, create scarcity Customer driven marketing strategy Choosing value proposition - attributes, makes you attractive, makes you unique Marketing organisations value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs Such value propositions differentiate one brand form another Unique Value Proposition (UVP) is the core benefit or solution that differentiates your product or service from the competition and positions it as the best possible option on the market Important - will be in test below First three concepts are more outdates, marketing concept and societal marketing concept are more relevant and important nowadays - sustainability Preparing an integrated marketing plan: The marketing program Builds customer relationships by transforming the marketing strategy into action Consists of the firm’s marketing mix (product, price, place, promotion) Extended marketing mix: Engaging customers and managing customer relationships: Customer relationship management: Overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction CRM us process of managing detailed information about individual customers and managing touchpoints to maximise loyalty Relationship building blocks: customer value and satisfaction Perceived value is customer's evaluation between benefit and cost of market offering relative to others Customers satisfaction is the extent to which a product's perceived performance matches or exceeds a buyers expectation Levels and tools: You can build relationships depending on the nature of the target market Low margin customers - seek basic relationships Markets with few customers and high margins - sellers want to create full partnerships Marketers use specific marketing tools to develop stronger bonds with consumers Frequency marketing products reward customers who buy frequently Club marketing programs offer member special benefits to create member communities Ley customers Q. Why might a marketing organisation choose to target low-margin customers rather than high margin customers? Q. Do I belong to any frequency marketing programs and/or club marketing programs? Are they worth it? Engaging customers Profound changes continue to occur in the ways in which companies are relating to their customers Yesterday's marketing organisations focused on mass marketing to all customers at arm's length whereas today's companies focus is to build deeper, more direct and lasting relationships with more carefully selected customers Q. Why has this shift occurred? Q. Greater consumer empowerment means companies can no longer rely on marketing by intrusion. Instead they must practise marketing by attraction. What does this mean in practice? Consumer generated marketing: Consumers play an increasing role in shaping their own brand experiences and those of other consumers through - consumer-generated videos, blogs, websites Fostering direct and continuous customer involvement in shaping brand conversation, brand experiences and brand community Partner relationship marketing Involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers Engaging customers and managing customer relationships, customer engagement and today's digital and social media In customer managed relationships, customers connect with companies and with each other to help forge their own brand experiences and hopefully go beyond to become brand advocates Most marketers now combine their mass-media marketing efforts with a mix of; online marketing, mobile marketing and social media marketing Capturing value from customers: Creating loyalty and retention Good customer relationship management creates customer satisfaction - satisfied customers remain loyal and talk favourably to others about the company and its products Customer lifetime value Amount by which revenues from a customer over time exceed the company's cost of attracting, selling and servicing that customer Value of the entire stream of purchases that the customer would make over a lifetime of patronage Growing share of customer Portion of the customers purchasing that a company gets in its products categories Building customer equity Total combined customer lifetime values of all of the companies customers Companies should: Manage customer equity carefully View customers as assets that need to be managed and maximised Not all customers, not even all loyal customers are good investments: The company can classify customers according to their potential profitability and manage its relationships with them accordingly, customers are categorised according to their profitability and projected loyalty. Strangers - low potential profitability and little projected loyalty Butterflies - potentially profitable but not loyal True friends - both profitable and loyal Barnacles - are highly loyal but not very profitable Changing Marketing Landscape: The digital age: online, mobile and social media marketing - fertile ground for trying to engage customers Digital and social media marketing: Involves tools such as websites, social media, mobile ads, apps, online video, email, blogs etc. Engage customers anywhere anytime Most brand websites etc. have links to brands social medias Online social media is ideal for marketing real-time where marketers can engage consumers in the moment by linking to - important trending topics, real-world events, causes, personal occasions etc. Mobile marketing fastest growing digital marketing platform Smartphones are ever present, used for everything and always on, finely targeted and highly personal Big data and AI: Access to more data than ever before - companies use this to gain deeper consumer insights, personalise marketing offers and improve communication, engagement and service. To use big data marketers are having to use more-advanced marketing analytics AI is machine thinking and learning with much greater analytic capacity than human marketers use AU to analyse data fast and apply marketing insights in real time Not-for-profit marketing: Practised by a variety of organisations who aim to make surpluses to continue their operations but not profits for shareholders Rapid Globalisation: Geographical and cultural distances are shrunk as a result of technological advances, flight/phones etc. these advances have allowed companies to expand their geographical market, purchasing and manufacturing resulting in a more complex marketing environment for both companies and consumers. Q. Rapid globalisation brings with it both marketing opportunities and marketing challenges, give examples? Sustainable marketing: Call for more environmental and social responsibility - for companies to take responsibility for their impact and actions Corporate ethics: Have become important and relevant in almost every business arena Q. Global companies sometimes move operations from one country to another in search of lower labour costs. Should they be responsible for problems that arise as a result?