What is marketing?

What is marketing?

1. Delivering value to customers

   • Consumers have needs caused by a state of deprivation
     • Maslow's hierachy of needs
     • Needs become demands when backed by buyer power
     • Need is a want when shaped by society

2. Marketing management is concerned with the implementation of marketing

   • Analysis, implementation, controls
   • Market analysis - customer selection and positioning- brand positioning - develop marketing plan- customer management

3. Marketing myopia- Levitt

   • Service marketing
   • Occurs when you focus on selling a particular product and not on a need

4. Marketing evolution

   • Production concept- affordable, mass produced products, people are cost sensitve
     • Quality focused- improving products over time e.g. iphone evolution
       • Selling concept- great emphasis put on promotion, tends to come from overproduction
         • Marketing concept- achievement of corporate goals through meeting and exceeding customer expectations

5. ·

   • Marketing environment
     • Micro
       • The actors close to the company that affect its ability to serve its customers
         • Company- management, finance, operations...
         • Suppliers
         • Marketing intermediaries-- resellers, agencies
         • Customers
         • Competitors
     • Macro
       • Larger societal forces that influence the various parts of the microenvironment
       • Resources are running out
     • Greenwashing- seeming greener than you are
     • • Segmentation, targeting and positioning
         • Market targeting- evaluating the various targets and deciding which segments to serve
           • Market segment attractiveness
             • Market factors- size, power of buyers, price elasticity, growth rate...
             • Economic and tech factors- barriers to entry and exit, investment required, margins...
             • Competitive factors- intensity, quality, threat of substituion
             • Business environment factors- political and legal, social...
           • Do not compete
           • Ignore segments
           • Concentrated or niche
           • Differentiated
         • Market segmentation
           • Subdividing of a market into homogenous groups of customers
           • Segment market and the choose segments to target
             • Differentiate offer to create value
           • Tech allows more 1 to 1 interactions, there are growing differences between consumers
             • Micromarketing
           • Customers must differ to one another, isolated and easily identified
         • Positioning- designing company's offering so that they occupy a meaningful position in the target customer's minds
           • What position do you want to occupy within a segment
         • • Customer experience
             • Relationship marketing- creating and maintaining strong relationships with customers
               • CRM- used to improve business relations with customers, manage customer interactions
             • 4P's to 4C's
               • Price- cost to consumer
               • Place- convenience
               • Product- customer wants
               • Promotion- communication
             • Piercy's strategic pathway to market
               • Market sensing and learning- listen to customers, learn
                 • Strategic choices- define segments and position
                   • Customer value strategy- define and express the brand value
                     • Strategy relationships- how and what you communicate
             • Types of customers
               • Happy wanderers
               • Hostages- tied with loyalty schemes or high switching costs
               • Dealers- price led, difficult to form relationship with
             • Customer journey mapping
               • Map the journey
                 • How are you doing at each point?
                   • Redesign and engage
                     • Implement
             • • Marketing mix
                 • Promotion
                   • AIDA- attention, interest, desire, action
                   • Promotion mix: sales promotion, personal selling, direct marketing, direct marketing. personal selling PR
                   • Should be getting a consistent message
                 • Price
                   • Market skimming- high margins, low volume
                     • Sufficient number of buyers have high demand
                     • Competitors won't be attracted by high price
                   • Market penetration- low price initially, heavy advertising, low margins
                     • Market price is sensitive
                 • Place
                   • Refers to distribution activity
                     • Where consumers buy products
                     • Indirect e.g. supermarkets
                     • Direct e.g. factory gift shops, bakery, apple
                   • How we deliver value e.g. selling online vs retail stores
                   • Intermediaries
                     • Improves efficiency, economies of scale, time gap, location gap, specialist customer services producers may not be able to do themselves e.g. installation
                     • Agents
                       • Sales arms to producers, commission based, insurance, theatrical
                       • Wholesalers
                       • Retailers
                 • Product
                   • Products and services are more interchangeable these days
                     • Progressed to 7 P's of service mix
                       • Evolved to 7 C's
                         • Product to customer
                         • Price to cost
                         • Place to convenience
                         • Promotion to communication
                         • Physical evidence to credibility
                         • Process to connection
                         • People to customer service
                   • Product lifecycle
                     • Introduction- growth- maturity- decline
                     • Allows to look beyond current marketing situation
                     • Difficult to know which stage the product is in
                     • A lot of companies fall in the chasm where early adopters don't warm to the product
                   • Innovation
                     • Continuous e.g. iphone
                     • Functional- using existing things to innovate e.g. hybrid cars
                     • Hedonic/symbolic e.g. james dean making jeans fashionable
                     • Discontinuous innovation e.g. Uber big shift
                 • • Marketing innovations
                     • Innovations don't have to be tech related
                       • The process which generates value from the creation and development and implementation of ideas new to an organisation
                     • Types
                       • Incremental e.g. apple
                         • Radical e.g. uber
                           • Disruptive e.g. air travel
                             • Architectural- the way in which things are put together, not components
                     • Closed innovation
                       • Control whole process, stay within your field, protect IP
                     • Open innovation
                       • Work with smart people, collaboration
                       • Company resources are limited, shouldn't rely on them
                     • • Market research
                         • Mailed surveys, interviews, on and offline, experiments, observation, focus groups
                         • Doesn't always get it right
                           • Want the right result
                           • Is the world rational
                         • Anchoring effect
                           • Putting most expensive first to make the rest feel cheaper
                         • Revealed preffered- we act in a different way to how we say
                           • Say we want privacy but use Facebook
                         • Constructed preference
                           • Influenced by situational cues e.g. organ opt in
                         • Framing effect
                           • Responses are affected by the way we frame a question
                         • Establish info needs, get info, analyses swot, develop strategic responses, monitor
                       • Social marketing
                         • Shoddy products e.g. Wonga
                         • Marketing to children
                         • High pressure selling e.g. cold calls
                         • Is it ethical? Pfizer overprice.
                         • Deceptive packaging, pricing and promotion
                         • Materialistic
                         • Sustainable marketing- matching consumer and business needs
                         • Behaviour change
                           • Accept new behaviour (breastfeeding)
                           • Reject undesirable behaviour (smoking)
                           • Modify (increase exercise)
                           • Abandon (drinking and driving(
                         • Approaches
                           • Upstream- alter policies and laws
                           • Midstream- reach individuals who could influence others
                           • Downstream-individual

6. The marketing concept

   • Customer focus- all activities based on this
   • Goal achievement through customer satisfaction
   • Integrated effort- all staff are responsible for customer satisfaction