Social Media

Marketing Affiliate Marketing

Marketing Modern Marketing Model (M3)
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Marketing Defining the Terms
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• MARKETING: The total of activities involved in the transfer of goods or

services from the producer or seller to the consumer or buyer, including
advertising, shipping, storing, and selling. (Your Tool Box)

• ADVERTISING: To announce or praise (a product, service, etc.) in some public

medium of communication in order to induce people to buy or use it: to
advertise a new brand of toothpaste. (A Tool)

• BRANDING: A trademark or distinctive name identifying a product or a

manufacturer. A product line so identified: a popular brand of soap. A
distinctive category; a particular kind: a brand of comedy that I do not care for.
(A Tool)
Marketing Modern Marketing Model (M3)
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Marketing What is Marketing?
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Marketing is everyone’s business. Every person working for an

organisation should understand the importance of marketing.

▪ Definitions:
“ Marketing is the management process responsible for identifying,
anticipating and satisfying consumer requirements profitably”

– CIM

“Marketing is the process of planning and executing the conception,

pricing, promotion and distribution of ideas, goods and services
to create exchange and satisfy individual and organisational needs.”

− AMA
Marketing Marketing as a Business Concept
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The Exchange Process

Something of value

Goods, services, benefits

Supplier Customer

Money, exchange of goods

Something of value
Marketing Exchange Transactions
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Consumers Costs & Benefits Organisations

Cash
Quench
thirst
Customer Pepsi

Insurance
premiums
Medical
treatment
Patient Private Hospital

Fees

Education
Student Universit
y
Marketing Exchange Transactions
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Consumers Costs & Benefits Organisations

Time
Sense of
communit
Volunteer y service Non-profit youth group

Vote

Sense of economic/social
progress continued
Voter employment etc Politic Party

Taxes
Reader
Lone parent Public Library, Benefit
agency
Marketing Core Concepts of Marketing
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Needs Products/ Value

Wants Services &
Demand Satisfaction

Exchange
Process
Markets Marketing

Exchange
TransactionsRel
ationships
Marketing Push Vs Pull
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Demand Demand

Push Strategy Manufacturer Intermediary End

User

e.g Lever Brothers

Demand Demand

Pull Strategy Manufacturer Intermediary

End User

e.g. P & G
Marketing The Marketing “Mix”
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Marketing The Marketing “Mix”
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Marketing Market Chain Commodities
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Custome
r

Retailer

Wholesaler
In a Market Chain
Processor commodities flow
from producers to
Farmer consumers
Marketing Market Chain & Business Support Services
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Consumption

Retailing

Trading Research

Transportation
Processing
Govt. policy regulation

Communications
Trading
Production input supply
- - Post-harvest
Tech. & business training & assistance
handling
Financial services
Production
Market information and intelligence
Marketing Companywide Strategic Planning
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Marketing The Ansoff Matrix
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Developing Strategies for Growth and Downsizing

Product/Market Expansion Grid Strategies

Market Market
penetrati develop
on ment

Product
Diversificat
develop
ion
ment
Marketing The Ansoff Matrix
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Companywide Strategic Planning

Developing Strategies for Growth and Downsizing

Product/market expansion grid strategies
Marketing Developing Strategies for Growth and Downsizing
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Market penetration is a
growth strategy
increasing sales to
current market
segments without
changing the product
Market development is a
growth strategy that
identifies and develops
new market segments
for current products
Marketing Developing Strategies for Growth and Downsizing
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Product development is a growth strategy that offers

new or modified products to existing market
segments
Diversification is a growth strategy through starting
up or acquiring businesses outside the company’s
current products and markets
Marketing Marketing Strategy and the Marketing Mix
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Marketing Developing an Integrated Marketing Mix
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Marketing Managing the Marketing Effort
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Marketing Market Planning – Parts of a Marketing Plan
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Executiv Marketi Threats

e ng
and
summar situation opportuni
y ties
Objectiv Marketi Action
e and ng program
issues strategy s

Budgets Controls
Marketing Return on Marketing Investment
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Marketing
1.0, 2.0, 3.0, 4.0 The Marketing Concept

• The key to achieving its organizational goals

consists of the company being more effective than
competitors in creating, delivering, and
communicating superior customer value to its
chosen target markets.
• Slogans: 麥當勞都是為您, 以客為尊, 顧客永遠是對
的, We do it all for you (Toyota).
• Four pillars: target market, customer needs,
integrated marketing and profitability.
Marketing Operational Functions of Marketing
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The diagram below shows the many functions that can be carried out in organisations
which, dependant on the organisation, can be classified as operational functions
of marketing.

CRM Sales Promotion Advertising PR

Selling
Display

Financing
Stockholding
The operational
functions of marketing Buying
Servicing
Forecasting

Risk Taking
Pricing

Transporting Market Merchandising Publicity

Research
Marketing
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Needs, Wants and Demands

• Needs (需要): the basic human requirements.

• Physical: food, clothing, shelter, safety
• Social: belonging, affection
• Individual: learning, knowledge, self-expression
• Wants (慾望): when needs are directed to
specific objects that might satisfy the need.
• Demands (需求): wants for specific products
backed by an ability to pay.
Marketing
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Customer Perceived Value

• The difference between total customer value and

total customer cost.
• Value chain, e.g. Wal-Mart.
• Value-delivery network, e.g. Honda.
Marketing Customer Relationship Groups
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Butterflies True Friends

Good fit between Good fit between
High company’s offerings and company’s offerings and
customer’s needs; high customer’s needs; highest
profit potential profit potential
Profitability
Strangers Barnacles
Little fit between company’s Limited fit between
Low offerings and customer’s company’s offerings and
needs; lowest profit customer’s needs; low
potential profit potential

Short-term Long-term
customers customers
Projected loyalty
Marketing Market Segmentation
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Marketing Market Segmentation
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Marketing Societal Marketing Concept
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Three Considerations Underlying The Societal

Marketing

Society
(Human welfare)

Societal
marketing
concept

Consumers Company
(Want satisfaction) (Profits)
Marketing Service Marketing
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• Definition: Activity or benefit that one party can offer to another

that is essentially intangible and does not result in the ownership
of anything. Its production may or may not be tied to a physical
product

• Examples: Defense, Postal, Education, health, Religious

Services, Hospitals, Airlines, Hotels, Law Firms, Entertainment,
etc
Marketing Marketing Campaigns
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The main
beneficiaries of
campaign The target audience

The organisation
running the
campaign

Marketing campaign
of product/service The main
purpose of the
campaign
Marketing Types of Business Campaigns
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Private sector businesses; eg

cinema, bank, retailers (shops)
An official body; local authority
organisations eg library
Government organisations
eg Army, Police, Fire
Non government
organisations; Charities
such as Oxfam, Save the
Children
Marketing Target Audience
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Mass market: This is for everyone to see,

to inform them, entertain the audience to
ensure that they react to the advertising
campaign and buy the product or service

Niche market: This is

aimed at a certain
audience who are
specific and highly
targeted in terms of the
product or service
Marketing Tactics of Campaigns
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Most organisations try to aim for a good reaction

towards the campaign so that they gain excellent
sales
Some organisations create a
campaign that is difficult to
understand or disliked by the
mass market but can get
people talking about it!
Marketing Purpose of Campaigns
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Inform about the launch of a

new or existing product

Raise awareness of
new product/service

Alert an audience to an event

To remind customers a company

is already well established
Marketing Benefits of Campaign
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Retail organisations that stock the

products/services and the manufacturers who make
the products/services
Retailer: profile of the business
rises, profits rise because of
increased sales
Manufacturers: Raise
awareness of portfolio of
products/services
Stakeholders (people involved
in the business) with association
to products/services
Marketing What is Marketing?
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Simple definition:
Marketing is the management process responsible for
identifying, anticipating, and satisfying customer
requirements profitably.”
Chartered Institute of Marketing (CIM), 2001

Goals:
1. Attract new customers by promising superior value.
2. Keep and grow current customers by delivering
satisfaction.
Marketing Marketing Defined
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● Marketing is the activity, set of instructions, and

processes for creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large.

OLD view of NEW view of

marketing: marketing:
Making a sale— Satisfying
“telling and selling” customer needs
Marketing Why is Marketing Important?
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Shifting Business Paradigms

Buyers’ markets

Sellers’ markets
Marketing Marketing Process
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A simple model of the marketing process:

● Understand the marketplace and customer needs and
wants.
● Design a customer-driven marketing strategy.
● Construct an integrated marketing program that
delivers superior value.
● Build profitable relationships and create customer
delight.
● Capture value from customers to create profits and
customer quality.
Marketing Needs, Wants & Demands
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Need: State of felt deprivation including physical, social,

and individual needs.
● Physical needs: Food, clothing, shelter, safety
● Social needs: Belonging, affection
● Individual needs: Learning, knowledge, self-
expression
Want: Form that a human need takes, as shaped by
culture and individual personality.
● Wants + Buying Power = Demand
Marketing Customer Perceived Value
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Customer perceived value:

○ “Customer’s evaluation of the difference between all of the

benefits and all of the costs of a marketing offer relative to those
of competing offers.” (Armstrong & Kotler)

– Perceptions may be subjective

– Consumers often do not objectively judge values and costs.

Customer value = perceived benefits – perceived
sacrifice.
Marketing Market Segmentation
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Why Segment?:
● Meet consumer needs more precisely
● Increase profits
● Segment leadership
● Retain customers
● Focus marketing
communications
Marketing Taglines – Developed to Reinforce a Firm’s
1.0, 2.0, 3.0, 4.0 Positioning Strategy

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Marketing Branding
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Marketing Steps Involved in Putting Together an
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Marketing Public Relations Techniques
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Traditional media
Press release
coverage

Social media Articles in industry

coverage press and periodicals

Blogging Monthly newsletter

Civic, social, and community

involvement

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Marketing Other Promotions Techniques
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Viral Marketing Guerrilla Marketing

Facilitates and A low-budget approach

encourages people to to marketing that relies
pass along a marketing on ingenuity,
message about a cleverness, and
particular product or surprise rather than
service. traditional techniques.

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Marketing Selling Direct Vs Selling Through an
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Marketing Sales Process
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Marketing Difference Between – Sales & Marketing
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Sales
trying to get the customer to want what the
company produces

Marketing
trying to get the company produce what the
customer wants
Marketing Core Concepts of Marketing
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Needs, wants, Utility, Value &

Products
demands Satisfaction

Marketing & Xchange, Transaction

Markets
Marketers Relationships
56
Marketing Core Concept of Marketing
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➔ Need – food ( is a must )

➔ Want – Pizza, Burger, French fry's ( translation of a need
as per our experience )
➔ Demand – Burger ( translation of a want as per our
willingness and ability to buy )
➔ Desire – Have a Burger in a five star hotel
Marketing Marketing Triangle
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In order to understand Marketing let us begin with the

Marketing Triangle

Customers

Company Competition
58
Marketing Who is a Customer?
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CUSTOMER IS . . . . .

Anyone who is in the market looking at a product /

service for attention, acquisition, use or consumption
that satisfies a want or a need
59
Marketing How do Consumers Choose Among Products &
1.0, 2.0, 3.0, 4.0 Services?

● Value - the value or benefits the customers gain

from using the product versus the cost of obtaining
the product.
● Satisfaction - Based on a comparison of
performance and expectations.
○ Performance > Expectations => Satisfaction
○ Performance < Expectations => Dissatisfaction
Marketing
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Customer Looks for Value

•Value = Benefit / Cost

•Benefit = Functional Benefit + Emotional Benefit

•Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost

Marketing Strategic Marketing
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Strategic marketing management is concerned with

how we will create value for the customer
Asks two main questions
➢ What is the organization’s main activity at a
particular time? – Customer Value
➢ What are its primary goals and how will these
be achieved? – how will this value be delivered
62
Marketing Strategic Planning
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● Strategic Planning is the managerial process of

creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.

➔ Also called Strategic Management Process

➔ All organizations have this
➔ Can be Formal or Informal
Marketing The Marketing Process
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Business
Mission
Statemen
t

Objectives

Situation
or SWOT
Analysis

Marketing Strategy
Target Market
Strategy

Marketing Mix
Product Place/Distribution

Promotion Price

Implementation
Evaluation, Control
Marketing Factors Influencing Company’s Marketing
1.0, 2.0, 3.0, 4.0 Strategy
Marketing Modern Marketing Model (M3)
1.0, 2.0, 3.0, 4.0
External Marketing Environment
External Environment
Social Ever-Changing
is not controllable Change Marketplace

Demographics

Physical / Natural Economic

Product Conditions
Distribution
Promotion
Price

Competition
Target Market
Political &
Legal Factors
Technology
Environmental
Scanning
Marketing The Macro-environment
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is the assessment of the external forces that act upon the

firm and its customers, that create threats & opportunities
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Marketing Product is ….
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Anything that is offered to the market for

attention, acquisition, use or consumption that
satisfies a want or a need
Marketing Types of Products
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PRODUCTS

Consumer Industrial
Services
Products Products
Marketing Product Items, Lines, and Mixes
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A specific version of a product

Product Item that can be designated as a
distinct offering among an organization’s products.

A group of closely-related
Product Line
product items.

All products that an

Product Mix
organization sells.
70
Marketing Product Mix
1.0, 2.0, 3.0, 4.0

●Width – how many product lines a company has

●Length – how many products are there in a product line
●Depth – how many variants of each product exist within a product line
●Consistency – how closely related the product lines are in end use
71
Marketing What is a Service? Defining the Essence
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●An act or performance offered by one party to another (performances are

intangible, but may involve use of physical products)

●An economic activity that does not result in ownership

●A process that creates benefits by facilitating a desired change in customers

themselves, or their physical possessions, or intangible assets
72
Marketing Some Industries – Service Sector
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● Banking, stock broking ● Health care

● Lodging ● Education
● Restaurants, bars, ● Wholesaling and retailing
catering ● Laundries, dry-cleaning
● Insurance ● Repair and maintenance
● Professional (e.g., law,
● News and architecture, consulting)
entertainment
● Transportation (freight
and passenger)
73
Marketing Classification of Services
1.0, 2.0, 3.0, 4.0

Pure Intangible
Banking
Service

Good Transportation

Major Service with

Minor Product
Business Hotels

Product = Service

Computers

Major Product with

Minor Services
Materials / Components

Pure Tangible Product

74
Marketing Major Characteristic of Services
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➔ Intangibility – Services are intangibility cannot be seen,

tasted, felt, heard or smelled before purchase.
➔ Inseparability - Services are produced and consumed
simultaneously.
➔ Variability or Heterogeneity – Services are highly variable
➔ Perishability – Services cannot be stored.
➔ Non Ownership - Services are rendered but there is no
transfer of title
Marketing Gillette’s Product Lines & Mix
1.0, 2.0, 3.0, 4.0

Width of the product mix

Depth of the product lines Blades and Writing
razors Toiletries instruments
Lighters
Fusion – 5 blade
Mach 3 Turbo
Mach 3 Series Paper Mate
Cricket
Sensor Adorn Flair
S.T. Dupont
Trac II Toni S.T. Dupont
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
Marketing The Give and Get of Marketing
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Marketing Stages of Customer Interaction
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