Introduction to Marketing Miss Mary Lynn Mundell.
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Transcript of Introduction to Marketing Miss Mary Lynn Mundell.
Introduction to Marketing
Introduction to Marketing
Miss Mary Lynn Mundell
Introduction to Marketing
What Is Marketing?Simple definition:
Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably.” (CIM,2001)
Goals: 1. Attract new customers by promising superior value.
2. Keep and grow current customers by delivering satisfaction.
Introduction to Marketing
Marketing Defined• 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 marketing:
Making a sale—“telling and
selling”
NEW view of marketing:
Satisfying customer needs
Introduction to Marketing
Why is Marketing Important?Shifting Business Paradigms
Sellers’ markets
Buyers’ markets
Introduction to Marketing
The Marketing ProcessA 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.
Introduction to Marketing
Needs, Wants, and Demands
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
Introduction to Marketing
Need/ Want FulfillmentNeeds & wants are fulfilled through a Marketing
Offering:• Products:
Persons, places, organizations, information, ideas.
• Services:Activity or benefit offered for sale that is essentially
intangible and does not result in ownership.
• Experiences:Consumers live the offering.
Introduction to Marketing
Customer Value and Satisfaction
Dependent on the product’s perceived performance relative to a buyer’s expectations.
Care must be taken when setting expectations:• If performance is lower than expectations, satisfaction is
low.• If performance is higher than expectations, satisfaction
is high.
Customer satisfaction often leads to consumer loyalty.
Some firms seek to DELIGHT customers by exceeding expectations.
Introduction to Marketing
Marketing Management
The art and science of choosing target markets and building profitable relationships with them.
• Requires that consumers and the marketplace be fully understood.
• Aim is to find, attract, keep, and grow customers by creating, delivering, and communicating superior value.
Introduction to Marketing
Marketing ManagementMarketing managers must consider the following,
to ensure a successful marketing strategy:
1. What customers will we serve?— What is our target market?
2. How can we best serve these customers?
— What is our value proposition?
Introduction to Marketing
Choosing a Value PropositionThe set of benefits or values a company promises
to deliver to consumers to satisfy their needs.• Value propositions dictate how firms will
differentiate and position their brands in the marketplace.
Introduction to Marketing
The Marketing ConceptThe marketing concept:• A marketing management philosophy that holds
that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors.
Introduction to Marketing
Customer Perceived ValueCustomer 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.
Introduction to Marketing
The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
• Product: Variety, features, brand name, quality, design, packaging, and services.
• Price: List price, discounts, allowances, payment period, and credit terms.
• Place: Distribution channels, coverage, logistics, locations, transportation, assortments, and inventory.
• Promotion: Advertising, sales promotion, public relations, and personal selling.
The Marketing Mix
Introduction to Marketing
Introduction to Marketing
Introduction to Marketing
Marketing Strategy
Introduction to Marketing
Customer-Driven Marketing Strategy
Requires careful customer analysis.To be successful, firms must engage in:• Market segmentation• Market targeting• Differentiation• Positioning
Introduction to Marketing
Segmentation:• The process of dividing a market into distinct
groups of buyers with different needs, characteristics, or behavior who might require separate products of marketing programs.
Targeting:• Involves evaluating each market segment’s
attractiveness and selecting one or more segments to enter.
Market Segmentation and Targeting
Introduction to Marketing
Differentiation and Positioning
Differentiation:• Creating superior customer value by actually
differentiating the market offering.
Positioning:• Arranging for a product to occupy a clear,
distinctive, and desirable place relative to competing products in the minds of target consumers.
Introduction to Marketing
Market SegmentationKey segmenting variables:• Geographic• Demographic• Psychographic• Behavioral
Different segments desire different benefits from products.
Best to use multivariable segmentation bases in order to identify smaller, better-defined target groups.
Introduction to Marketing
Market SegmentationWhy Segment?:• Meet consumer needs more precisely• Increase profits• Segment leadership• Retain customers• Focus marketing
communications
Introduction to Marketing
Evaluating Market SegmentsSegment size and growth:• Analyze current segment sales, growth rates, and
expected profitability.Segment structural attractiveness:• Consider competition, existence of substitute products,
and the power of buyers and suppliers.Company objectives and resources:• Examine company skills and resources needed to
succeed in that segment.• Offer superior value and gain advantages over
competitors.
Introduction to Marketing
Market TargetingMarket targeting involves:• Evaluating marketing segments.
Segment size, segment structural attractiveness, and company objectives and resources are considered.
• Selecting target market segments.Alternatives range from undifferentiated marketing to
micromarketing.
• Being socially responsible.
Introduction to Marketing
Differentiation and PositioningA product’s position is:• The way the product is defined by consumers on
important attributes—the place the product occupies in consumers’ minds relative to competing products.
• Perceptual positioning maps can help define a brand’s position relative to competitors.
Introduction to Marketing
Differentiation and PositioningIdentifying possible value differences and
competitive advantages:• Key to winning target customers is to understand
their needs better than competitors do and to deliver more value.
Competitive advantage:• Extent to which a company can position itself as
providing superior value.Achieved via differentiation.
Introduction to Marketing
Thank you.