1. Soft ware marketing Chapter 1 Defining Marketing and the marketing process

2. Designing a customer driven marketing strategy Marketing Management: The art and science of choosing target markets and building profitable relationships with them. Simply put it is customer management and demand management. To design a winning marketing strategy the marketing manager must answer two important questions: 1. What customers will we serve (target market) 2. How can we serve these customers best? (what is the value proposition)

3. Selecting customers to serve Divide the market into segments of customers (market segmentation) Then decide which segment will you target If you try to serve all customers you will end up not serving anyone in particular which will lead to dissatisfaction among consumers. Some marketers may even seek fewer customers and a reduced demand for their product/service.

4. Selecting customers to serve E.g. Many power companies have trouble meeting demand during peak usage periods. In such cases of excess demand companies may practice demarketing to reduce the number of customers or shift the demand temporarily. E.g. To reduce the demand for space on congested expressways in Washington D.C., the metropolitan council of government has set up a website encouraging commuters to carpool.

5. Choosing a value proposition Company must also decide on how it will serve its targeted consumers- how it will differentiate and position itself in the market place. A companys value proposition is the set of benefits or values it promises to deliver to satisfy consumers. Such value proposition differentiates one brand from another e.g. Red bull energy drink helps you fight mental and physical fatigue. It captures 70% of the energy drink market by promising it gives you wings!

6. Marketing management orientations What philosophy should drive successful marketing strategies? What weight should be given to the interests of customers, the organization, and the society. Often these interests conflict. There are 5 alternative concepts under which organizations design and carry out their marketing strategies 1. The production 2. Product 3. Selling 4. Marketing 5. Social marketing

7. The production concept The idea that consumers will favour products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency. E.g. Computer maker Lenovo dominates the highly competitive price sensitive Chinese PC market through low labour costs, high production efficiency and mass distribution. Although useful in some situations the production concept can lead to marketing myopia. Good or bad?

8. The product concept The idea that consumers will favour products that offer the most quality, performance and features and that the organization should therefore devote its energy to making continuous product improvements. Some producers however think that if they can build a better mousetrap consumers will come to their door themselves. This can lead to marketing myopia. Companies need to design, package and price the product attractively.

9. The selling concept The idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort. This concept is typically practices with unsought goods--------Those that buyers usually do not think of buying such as insurance or blood donations. Such aggressive selling however carries high risks. It focuses on sales transactions rather than on building trustworthy long term profitable relationships

10. The selling concept Poor assumptions: This concept assumes that customers who are coaxed into buying the product will also like it. Or the consumers who do not like the product will forget their negative experience and return to purchase the product once again. Consumers will not spread negative word of mouth regarding your product to other potential customers.