Marketing

What Is Marketing?
What is Marketing?

Marketing is a set of activities related to

creating, communicating, delivering,
and exchanging offerings that have
value for others
What is the function of marketing?

Marketing brings value to customers,

whom the business seeks to identify,
satisfy, and retain.
The Exchange Process

The act of obtaining a desired object

from someone by offering something of
value in return
• Customer (or buyer)
• Product
• Provider (or seller)
• Transaction
The Role of Marketing
Marketing vs. Advertising

• Advertising uses paid notices in

different forms of media to draw public
attention to a company, product, or
message, usually for the purpose of
selling products or services
• Advertising is one of many tools
marketers use
Marketing vs. Branding

• Branding is the process of “creating a

unique name and image for a product
in the consumer’s mind”
• Marketing builds brands, and branding
is an important strategic consideration
in marketing, but marketing is broader
than branding
Marketing vs. Sales

• Sales is the process of actually selling

products or services
• Effective marketing aligns well with
the sales process and leads to
increased sales, but there is more to
marketing than just supporting sales
Company Orientations
• The Marketing Concept
• Success depends on doing better than competitors at
understanding, creating, delivering, and communicating value
to their target customers
• The Product Concept
• Success depends on creating the best, most innovative
product for the lowest price
• The Sales Concept
• Success depends on a good sales team with the right tools
and incentives.
• The Production Concept
• Success depends on low production costs, highly efficient
processes, and mass distribution.
Relationship Stages

• Meeting and Getting Acquainted

• Providing a Satisfying Experience
• Sustaining a Committed Relationship
Stage 1: Meeting and Getting
Acquainted
• Find desirable target customers,
including those likely to deliver a high
customer lifetime value
• Understand what these customers
want
• Build awareness and demand for what
you offer
• Capture new business
Stage 2: Providing a Satisfying
Experience
• Measure and improve customer satisfaction
• Track how customers’ needs and wants
evolve
• Develop customer confidence, trust, and
goodwill
• Demonstrate and communicate
competitive advantage
• Monitor and counter competitive forces
Stage 3: Sustaining a Committed
Relationship
• Convert contacts into loyal repeat
customers, rather than one-time
customers
• Anticipate and respond to evolving
needs
• Deepen relationships, expand reach of
and reliance on what you offer
What is Customer Lifetime Value?

Customer lifetime value predicts how

much profit the company will make from
the customer during his or her lifetime
relationship with the company
How Do Strong Customer Relationships
Help a Business?
Happy customers . . .
• Return to buy more goods and
services
• Help market the business with
positive reviews or word of mouth
• Engage with the brand
Goals of Marketing
Not for profit
For profit companies organizations
Increase profits by selling Promote the mission by
products or services to attracting donors or
customers participants or by raising
awareness of an issue or
cause
Difference Between Customers and
Consumers
• Customers are The customer and
the individuals the consumer are not
who buy the always the same
product • Example: A food
distributor’s
• Consumers are customer is the
the individuals restaurant, not the
who actually use diner who is the
the product consumer
B2B vs. B2C

• B2B or Business to Business

companies sell products or services to
other businesses
• B2C or Business to Consumer
companies sell directly to consumers
Marketing Orientation

Companies with a marketing orientation

focus on identifying and understanding
the customer’s needs and wants and
addressing them more effectively or
efficiently than one’s competitors
Why Do Customers Matter in Marketing?

• Marketing exists to help organizations

understand, reach, and deliver value
to their customers
• The customer is considered the
cornerstone of marketing
Segmentation and Targeting

• Segmentation is the process of

dividing potential customers into
groups to better understand them
• Targeting is determining which
segments are most likely to become
customers and directing marketing
efforts to best to satisfy them
Defining a Target Market

1.Identify the business

need you address
2.Segment your
total market
3.Profile your target
customer segment(s)
4.Research and validate
your market
opportunity
Value for the Customer
• Value = benefit – cost
• Price is only part of cost
• Customers will consider competitors and
substitutes
• Differentiation is how marketers optimize the
elements of a product that provide unique value
to customers
• When a company can create greater value for
customers than its competitors, it has a
competitive advantage
Value Proposition

• A value proposition
provides a very simple
answer to the question:
Why should someone
buy what you are
offering?
• The value proposition
should be clear,
compelling, and
differentiating
The Marketing Mix
Evolving Definitions of the Marketing
Mix

4 Ps 4 Cs
• Product • Consumer solutio
• Price n
• Promotion • Cost
• Place • Communication
• Convenience
Product vs Customer Solution

A company will only sell what the

consumer specifically wants to buy. So,
marketers should study consumer
wants and needs to attract them.
Price vs Cost

Price is only a part of the total cost to satisfy a

want or a need. For example, the total cost might
be the cost of time in acquiring a good or a
service, along with the cost of conscience in
consuming it. It reflects the total cost of
ownership. Many factors affect cost, including but
not limited to the customer’s cost to change or
implement the new product or service and the
customer’s cost for not selecting a competitor’s
product or service.
Promotion vs Communication

Communications can include

advertising, public relations, personal
selling, viral advertising, and any form
of communication between the
organization and the consumer.
Place vs Convenience

Marketers should know how the target

market prefers to buy, how to be there and
be ubiquitous, in order to
provide convenience of buying. With the rise
of Internet and hybrid models of purchasing,
“place” is becoming less relevant.
Convenience takes into account the ease of
buying the product, finding the product, and
finding information about the product.
Product
Promotion
Place
Price
Marketing Plan

The marketing plan describes how the

company will use the marketing mix—
product, promotion, place, and price—to
achieve its marketing objectives
effectively within the competitive
market environment
The Marketing Planning
Process