Marketing is the management process for identifying, anticipating and satisfying customer requirements profitability

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1 Marketing Marketing: - the process by which companies create value for customers - and build strong customer relationships - to capture value for customers in return Marketing is the management process for identifying, anticipating and satisfying customer requirements profitability - The goal of marketing - to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction The 3 basic functions of marketing: Creating value - Product management - Understanding the customer s needs, wants and behaviour and developing products and services to meet these needs Communicating value- Brand management - Properly positioning the product of service in the minds, hearts and soul of the customers Delivering value - Customer management - Building lasting relationships that would create a long term interaction between customer and organisation Concept of customer is king - the only way to sell or increase sales was to give the customers what they wanted

2 The marketing process: Understand the marketplace and customer wants and needs - Needs: states of physical, social or individual deprivation - Wants: the form that needs take as they are shaped by culture and individual personality - Demands: wants backed by buying power - Marketing myopia: focusing only on existing wants and losing sight of underlying consumer needs - Satisfaction: derived from comparing performance with expectations - Marketing consists of actions to build and maintain desirable exchange relationships Design a customer-driven marketing strategy - Marketing management: the art and science of choosing target markets and building profitable relationships with them - Market segmentation: dividing the markets into segments of customers - De-marketing: marketing to reduce demand temporarily/permanently - Marketing management: customer + demand management - Value proposition: a set of benefits or values a company promises to deliver to customers to satisfy their needs Construct a marketing plan that delivers superior value - Refer to the marketing mix - An integrated marketing program: a comprehensive plan that communicates and delivers the intended value to chosen customers Build profitable relationships and create customer satisfaction - CVM (Customer value management) - CRM (Customer Relationship management) - the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction - Customer value: the initial expectation the customer had of the product - Customer satisfaction: the extent to which a product s perceived performance matches a buyers expectations

3 - Partner relationship management: refers to working closely with partners in other company departments and outside the company to jointly bring greater value to customers Capture value from customers to create profit and customers equity - Customer equity: the total combined customer lifetime values of all the company s customers - Building the right relationships with the right customers involves treating customers as assets that need to be manages and maximised - Build the right relationships with the right customers A company must know itself inside out in order to study to be able to study customer needs. A company must have a: - Mission Statement Used to establish a direction It is a concise statement of the company s purpose and the reason for existence Defines what business the company is in and gives direction and vision to the business Should be based on a distinctive competence - Value Proposition The set of benefits or values that a brand promises to deliver to consumers to satisfy their needs - SWOT Analysis A basic, straightforward model that provides direction and serves as a basis for the development of marketing plans Asses the organisation s strengths, weakness, opportunities and threes Determines if the information indicates something that will assist the firm in accomplishing its objectives, or if it indicates an obstacle that must be overcome or minimised to achieve desired results Applying SWOT analysis is essential to work towards minimising weaknesses

4 The Role of a Marketing Manager - Monitoring and analysing market trends - Studying competitors products and services - Exploring ways of improving existing products and services, and increasing profitability - Identifying target markets and developing strategies to communicate with them - Preparing and managing marketing plans and budgets - Managing the production of promotional material - Producing reports to monitor results - Travelling to trade shows, conferences and sales meetings - Supporting and managing a marketing team Customer needs, wants and demands - Needs: Human needs are the basic requirements such as food and shelter, without these humans cannot survive The products that fall under the needs category of products do not require a push Instead customers buy it themselves But nowadays so many brands have come up with the same offering satisfying the needs of the customer that even a needs category product has to be pushed in the customers mind - Wants: A step ahead of needs Largely dependent on the needs of humans themselves Not mandatory - Demands A step ahead of wants When an individual wants something which is premium, but also has the ability to buy it, these wants are converted to demands Basic difference between wants and demand - desire A customer may desire something but not be able to fulfil his desire

5 Market Offerings - Goods, services, experience - Goods, services, events, experiences, persons and places are all examples of things that are offered to the marketplace - Companies cannot simply focus on the product that they are offering - They need to also focus on the benefit and experience that such a product will give to a customer - Marketing myopia - when a company views marketing strictly from the standpoint of selling a specific product rather than from the standpoint of fulfilling customer needs Exchanges and Relationships - Exchange - something that is offered with the intention of getting something in return - Marketing is much more than the simple idea trading things - Marketers want to exchange relationships - They will try and build a relationship with the customer and in return the customer will trust the company and buy again Markets - Market - a place where buyers and sellers meet - A place where goods are offered for sale and were transfer of ownership takes place - For a marketer, a market can also be a place where he can find his customers and also potential customers - To have a healthy position in this market, the marketer needs to create the right products to the right people, communicate with these people, deliver to them and provide them with the right prices

6 The Marketing Mix (7 P s) - bundle of variables which are offered to the customer - Product Design Quality Features Branding - Place Refers to how an organisation will distribute the product or service they are offering to the end user Indirect distribution: involves the manufacturer selling to a wholesaler and then to a retailer Direct distribution: involves distributing direct from a manufacturer to the - Price consumer The element which generates revenue for the company Cost based pricing - concern covering costs Customer based pricing - concern on value being delivered Competitor based pricing - concern for position in the market with respect to competitors - Promotion Identifies ways in which the firm will be communicating with its customers Mass media Social media Personal marketing Public realtions - Process - The process through which the customer receives the product - Bureaucracy - identifies responsibilities of employees in relating to client - Waiting/ queuing time issues

7 - People An essential ingredient to any service provision is the use of appropriate staff and people Human resource development - getting the best people in touch with the clients Characteristics of the sales person - committed to customer satisfaction rather than just concluding a sale Consumers make judgements and deliver perceptions of the service based on the employees with whom they interact - Physical evidence The element which allows the consumer to make judgements on the organisation Refers to the place where the exchange takes place Packaging Web pages Paperwork Uniforms Furnishings Business cards

8 Marketing Management Orientations - alternative concepts under which marketing managers carry out their marketing strategies 1. Production concept Philosophy - Quality products with affordable prices Objective - Minimise costs by taking advantage of economies of scale Strategy - Focus on Product and Distribution Consumer will favour products that are available and affordable Management should focus on improving production and distribution efficiency Ex. Lidl May cause marketing myopia as a times companies are short sighted to the actual needs of consumers May lead to loss of customers 2. Product concept Consumers will favour a product that offers quality, performance and features, this companies should focus these aspects Organisation should focus on making continuous product improvements Belief that an ideal product can be produced The cost is increased as complex products are produced May also lead to marketing myopia 3. Selling concept Philosophy - Consumers need convincing to buy a product Objective - Maximise sales volumes/revenues Strategy - Aggressive promotion Customers will not buy enough of the organisations products unless the organisation undertakes a large scale selling and promotion effort Quantity supplied to the market is greater than demand - resulting in surplus Ex. Easylife Finding customers for the product Belief that anything could be sold as long as the person knows how to sell Long term relationship I not important