Customers &

Competition
What is Marketing?

• Marketing is a set of activities related to creating, communicating,

delivering, and exchanging offerings that have value for others.
• In business, the function of marketing is to bring value to customers
that the business chooses to target, satisfy and keep.
• In marketing, the act of obtaining a desired object from someone by
offering something of value in return is called the exchange process.
Exchange Process

• The exchange involves:

• the customer (or buyer): a person or organization
with a want or need who is willing to give money or
some other personal resource to address this need
• the product: a physical good, service, experience or
idea designed to fill the customer’s want or need
• the provider (or seller): the company or organization
offering a need/want satisfying product
• the transaction: the terms around which both parties
agree to trade value-for-value (most often, money for
product)
 Marketing identifies customers, their needs, and
how much effort it takes to meet those needs.

Marketing creates products or services to ensure it

meets customers needs and wants and that it is
priced correctly.

Marketing Marketing is about communication with costumers

and their products or services and to keep them
Review interested.
Marketing is also responsible for listening to
customers and communicating back to the business
about improvements they can make to keep
customers satisfied.
Marketing is about delivering the product or service
to the consumer and keeping their experience
enjoyable even after the transaction.
 According to the influential
economist and Harvard Business
School professor Theodore Levitt,
the purpose of all business is to
“find and keep customers.”

Marketing
Creates Marketing is much more than
advertising and selling products, it
is also about helping businesses
Value for achieve their goals and keeping
customers happy.

Consumers
Marketing generates value by
creating the connections between
people and products, customers
and companies.
The Role of Marketing
Customers & Marketing

• Marketing exists to help organizations

understand, reach, and deliver value to their
customers.
• Customers are the cornerstone of marketing.
• Consumers have an unlimited amount of
product and services they can choose from
today, especially with the internet.
• They spend a decent amount of time
comparing products and services to see what
is the best option and quality for the price.
• https://youtu.be/BmQs8g9ytRA
 Before you can create anything of value, first
you must identify a want or need that you
can address, as well as the prospective
customers who possess this want or need.

Identify
Customer Meeting customer needs is the main reason
why businesses are successful.

Needs
Think about a product or
company you support, why
do you support them? Is it They meet your
because you get the best needs in your
specific way.
product for the best price
or because you enjoy their
business?
Understanding the
Customer

• To understand your
customer you have to
understand their wants
or needs.
• What are their financial
needs?
• What are their
perceptions of your
products or services?
• What are their quality
needs?
 Some businesses believe it is essential to
know customers needs to have your
products successful. Other businesses
believe customers don’t know they need
your product until you convince them.
Understand
Customer Needs If you believe your business thrives off of
understanding customer needs, you will
vs. Convincing spend lots of time researching your
customer needs and creating marketing
them they need strategies based on that.
your product
If you believe your business needs to
convince people of your product, you will
spend a lot of time coming up with
marketing strategies to explain your
product.
 Satisfying Customer Needs
• Businesses that believe in the
consumers needs believe in the
marketing concept.
• The first step is focusing on the
customers.
• Next step is researching and
analyzing.
• Then it categorizes consumers to
characteristics, needs, purchasing
behaviors.
• Finally they identify specific areas
of opportunity for success in the
business.
 These types of A target market
groups that help is a clearly
businesses focus defined segment
on their decisions of the market to
are known as which a business
target markets. wants to appeal.

Target
Market Market
Opportunity
Analysis-
Market Segment- Studying and
A group of similar prioritizing
consumers within market segments
a larger market to locate the best
potential based
on demand and
competition
Consumer Decisions

• Decisions are a choice among alternatives, consumers make

these daily.
• Once a consumer need is decided, it then becomes a want.
• Figuring out consumers needs and wants help businesses
satisfy customers which help them be successful.
• As a business you work to satisfy these customers by
delivering a product or service that addresses these needs at
the time customers want it.
• Key to customer satisfaction is making sure everyone feels they
benefit from the exchange. Your customer is happy with the
value they get for what they pay. And you are happy with the
payment you receive in exchange for your products or services.
 There are 5 stages to consumer decision
making:

Stage 1-Recognize

• The purchase process starts when a consumer

recognizes that a need exists.

Stage 2- Identify

Decision • Once a need exists then a consumer wants to identify

the solution of that need.

Stages Stage 3- Evaluate

• When the consumer has multiple options identified

then they evaluate their options. Is the product more
available, affordable, or better quality etc.

Stage 4- Decide

• Once the consumer evaluated all their options then a

decision is made on which product or service to
choose.
Decision Stages

• Stage 5- Assess
• This is done after the purchase and the consumer has decided if it was the right
choice for them. This is when reviews happen and customer satisfaction comes
into play.
Keeping Life Long Consumers

• Effective marketing doesn’t stop there. It also

needs to keep customers by creating new opportunities to win
customer loyalty.
• The long term goal is to turn one time buyers into lifelong consumers.
• To create lifetime customers, the business has to keep customers
mindset with marketing activities and initial customers through the
various stages of relationships.
Various Stages of Keeping Customers
 Being successful in marketing entails a
lot of creativity, but Marketing is
actually turning to research and the
scientific process.

Why Knowledge and information is gathered

to help study and determine best
Information solutions for companies.

Plays an
Important Role Businesses need to clearly identify their
customers’ interests, characteristics,
in Marketing needs, etc. in order to make the best
decision.

Research can also assess competition in

the market to help make business
decisions.
 Along with the
When a company
time, you have to
decides to add a
consider all the
new product or
competition in the
service it is very
area of the
expensive and
product or
time consuming.
service.
Competition
& Marketing Marketing meets
together with all
Companies do not the other parts of
want their product the business to
to fail so this is ensure all the
when Marketing areas help make
becomes key in the business and
business. products or
services
successful.
What is
Competition?
• Competition is the rivalry between
companies selling similar products
and services with the goal of
achieving revenue, profit, and
market share growth.
• Market competition motivates
companies to increase their sales
by utilizing the four Ps of the
marketing mix (Product, Place,
Promotion and Price).
• Knowing and understanding your
competition is an essential step in
designing a successful marketing
strategy.
Competitive Advantage

You need to know their

It is essential to know prices, the quality of
who your competitors the products or If your business doesn’t
are and have services, benefits they do this, then it can
knowledge about their offer, etc. This will help affect your survival in
strengths and keep you remaining the business world.
weaknesses. competitive in the
market.
Marketing Competition

• Businesses don’t only need to worry about

customer needs, but they also have to
consider competition.
• Customers have more choice options than
ever today thanks to the internet.
• If a customer doesn’t feel satisfied with a
product or service it won’t take long for them
to find a competing business instead.
• Customers expect real value for their
products.
 Intense Competition

• The most difficult type of competition is one

where you compete with similar products.
• This is where they offer the same type of
products.
• Can you name 3 companies that offer similar
products?
Types of Limited Competition

Competition • This is where a business is offering a product

or service with little to no competition.
• Can you list 3 companies in this area?

Monopolistic Competition

• Companies offer similar products but they are

clearly different for consumers.
• Can you list 3 companies in this area?