3.Marketing PP 1st Class

7/28/2019 3.Marketing PP 1st Class

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Marketing 571

What Is Marketing?Marketing deals with identifying and meeting human andsocial needs. One of the shortest definitions of marketingis "meeting needs profitably."

When eBay recognized that people were unable to locatesome of the items they desired most and created anonline auction clearing house or when IKEA noticed thatpeople wanted good furniture at a substantially lower

price and created knock-down furniture, theydemonstrated marketing savvy and turned a private orsocial need into a profitable business opportunity.


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The Marketing Concept

The marketing concept emerged in the mid-1950s. Instead of a

product-centered, "make and-sell" philosophy, business

shifted to a customer-centered, "sense-and-respond"

philosophy. Instead of "hunting," marketing is "gardening."

The job is not to find the right customers for your products,

but the right products for your customers.


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Do marketers create needs or wants? Or what came first, the

chicken or the egg?

Today with the advent of the global economy and the internet, the conceptof marketing has taken on a whole new meaning and offers a myriad of

ways to advertise your presence to your target market. Interestingly

enough, customers dont always know they have a need or want for a

service or product until educated by the marketer.


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Do marketers create needs or wants continued

again.

Can you think of a product, service or technology

that you cannot live without but never would have thought you

needed it until it was presented to you? I can think of my cell

phone, car washes, microwave ovens, air conditioners, anddishwashers to name a few.


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The Marketing Rat Race

The global economy now has a plethora of marketers who

compete with each other to capture the same customers.

This challenge for marketers then is to create a marketing mixso outstanding as to leave other marketers in the dust.

It requires much more creativity, intelligence, technology, and

capital on the part of the marketer to be able to compete,survive and surpass its competition in the marketplace to gain

the ultimate prize, that being the customer.


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Relationship Marketing

A key goal of marketing is to develop deep, enduring relationships with all

people or organizations that could affect the success of the firm'smarketing activities.

Relationship marketing has the aim of building mutually satisfying long-

term relationships with key parties-customers, suppliers, distributors, and

other marketing partners-in order to earn and retain their business.


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The Marketing Network

Marketing must not only do customer relationship

management (CRM), but also partner relationship

management (PRM) as well.

Key constituents for marketing are customers, employees,

marketing partners (channels, suppliers, distributors, dealers,

agencies), and members of the financial community

(shareholders, investors, analysts).


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The Marketing Network continued.

The ultimate outcome of relationship marketing is the

building of a unique company asset called a marketing

network.

A marketing network consists of the company and its

supporting stakeholders (customers, employees, suppliers,

distributors, retailers, ad agencies, university scientists, and

others) with whom it has built mutually profitable business

relationships.


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The Marketing Network and friends

I have found in my years of experience as a business owner,

it is sometimes beneficial to make friends of your

enemies (i.e. your competitors) especially if you are newto the industry. They can often be a sounding board for

new ideas you want to launch and give you sage advice

about what works best in the industry and what will not

work. As a business owner, I have saved myself manyheadaches, money, and time by following their advice.


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Marketing Networks again.

Increasingly, competition is not between companies but between marketingnetworks, with the prize going to the company that has built the better

network.

The operating principle is simple: Build an effective network of relationships

with key stakeholders, and profits will follow.


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What is the broad purpose of the marketing concept?

a) Customer/market orientation

b) Sales orientation

c) Product orientation

d) Production orientation


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Marketing Concept

The marketing concept holds that the key to achieving

organizational goals consists of the company being more

effective than competitors in creating, delivering, and

communicating superior customer value to its chosen target

markets.


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Consumer Orientation

This is the most customer-centric approach among all ofthem.

A customer orientation strategy is the way that a businessfocuses its product or service to consumers.

There are many specific ways of doing this, but in generalthere are three ways that you can orient a product to

consumers: aiming at price sensitive customers, aiming atquality sensitive customers and aiming at niche customers.


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Consumer Orientation is the focus on meeting the needs ofone's customers, internal or external.

This service establishes specific customer satisfaction

standards and actively monitors client satisfaction, takingsteps to clarify and meet customer needs and expectations.

At lower levels the service involves courteous and timelyresponsiveness to the requests of customers, while at the

higher levels, it involves developing the relationship ofpartner and trusted advisor.


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These companies respond to marketing research and tailor their

products in accordance with what they perceive to be the

demands of the market.


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A business with this type of orientation is essentially led by the

needs of its customers. Marketing research outcomes

determine how much of a product is produced--old products

may be discontinued and new products invented based on the

needs or desires of consumers.


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4 Basic Stages for Customer Orientation

Development has to be done keeping customer needs into

mind.

Manufacture the best products to the customer. Do not

compromise quality.

Market by identifying and targeting the right customer.

Processing the demand as early as possible. Customization

of the products for the market.

Deliver to the target customer. Reduce delivery time.


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Price Sensitive Strategy

To be successful with this strategy, you need to be anefficient company with the lowest possible overhead.

This will allow you to have low costs which means that you

can afford to sell your products or offer your services at adiscount compared to competitors in the marketplace.

This strategy casts a very wide net for consumers and canbe effective in gaining a large market share in price

sensitive industries (such as commodities).


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Quality Sensitive Strategy

It aims for the company to become recognized as the market leaderby being perceived as the best company on a non-price basis.

This means that the product or service must have an added value,

and the company can demand a higher price where quality is

considered more important than price.


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Niche Strategy

The niche strategy has a very narrow customer orientation.

The strategy involves finding a small audience and aiming a particular

product at that audience.

This means that the product is not necessarily the best, or thecheapest, but it is the one that best fits the needs of a particularconsumer.

Can you think of a niche marketer with a familiar name around town?


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Sales Orientation

This concept is the most practiced and follows the path of selling an offering thatthe public generally knows nothing about nor has asked for it.

Therefore, management undergoes large-scale selling and promotion on it to get

the message out.

In some respects, this concept is like a shot in the dark. You are showering a giant

market with your message and hoping that in the fallout, some will stick as your

customers.

Can you think of any products that have been promoted this way? From your

perspective, do you think it was the best way for the company to advertise?


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Sales Orientation

Sales-oriented companies can generate positive short-termsales since customers initially feel good that they are getting

more for less. As customers realize they are paying less but

getting less, they eventually realize they are not making a

good purchase. Discounting your product may eventually

cheapen its reputation in the marketplace.


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Sales Orientation

A sales-oriented company focuses on strategies and tactics

that push people toward buying products, while a product

orientation tries to pull people into buying.

Offering discounts is an example of a sales tactic, while adding

a new feature to a product to increase demand is an example

of a product-oriented strategy.


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Sales Orientation

A sales orientation often attempts to get people to buy things

they dont really need or want, while a product orientation

focuses on getting people to buy things they are looking for.


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Product-Oriented Organizations

Product-oriented companies keep in mind the adage, Build a

better mousetrap and world will beat a path to your door.

This strategy assumes that if you offer a superior product or

service, customers will buy from you without your having to

resort to discounts or other gimmicks.

Product-oriented companies work with marketing

departments to learn what the marketplace wants,

developing or modifying products to meet these needs.


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A product-oriented approach to sales might take too long to help

a company struggling financially, while a sales orientation

might result in fewer long-term customers and eventual

financial instability


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Product Orientation

Product orientation does have challenges and is often

downplayed by marketing professionals. Management

that is overly focused on technology development and

endless pursuit of an optimized product may lose touch

with the marketplace.

Consumer-oriented companies research and stay

connected with changing consumer tastes. This puts

product-oriented companies at a special disadvantage in

rapidly changing marketplaces where customer needs

and product offerings are constantly evolving.


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Product-oriented companies may take longer to generate sales,but their sales may be more stable long-term because buyers

come to believe they are getting the value they need from a

product or service.


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Product Orientation

Whereas production orientation exists whenmanagement is more concerned with productionefficiency, a product orientation is when management

is more concerned with product quality. Managers areoften obsessed with their products.

Managers typically believe their products are uniqueand offer distinct benefits. They focus on consistent

improvement of the product with the belief that anideal product will effectively sell itself.


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Production Orientation

With production orientation, the focus is more on theprocesses of production than what is actually produced.

Narrow product lines, pricing based on production costs,

technical product research, packaging focused on productprotection, and minimal marketing are all common traits

associated with a production orientation.

These traits are all opposite a marketing orientation, wherethe company attempts to drive demand through marketing

efforts.


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Production Orientation

I am going to use food in this example because it is one of my favoritetopics.

What product can you think of in this example? I am thinking icecream. Take a look in the freezer section the next time you are in agrocery store, WalMart or Target.

There are companies out there that only mass produce ice cream anddistribute it to the above-mentioned types of stores. It may comein a carton or in popsicle form but it is always the same product. Itis always ready to buy off the shelves and it is cheap.

It does not require much educating on the part of marketers to remindconsumers of its existence.


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Consumer Societal Experiences

Can you think of other examples in which consumers of different cultures digress

from basic needs and want something more specifically related to their

comfort or familiarity level?
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The 4 Ps of Marketing

Know your market. What types of people or consumers are out there and

what is it they need and want?

Create your plan to figure out which consumers you want to target. It

wont include everyone so select the very best markets that will give you

the most profit.

Next, design your strategy or program that will enable you to deliver your

market offering to your target market. This strategy is your action plan

and includes your marketing mix; that is the tools you use to get the plan

off the ground.

These tools consist of the 4 Ps which are product, price, placement, and

promotion.


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The 4 Ps

Product - satisfy the need of your market

Price - how much will you charge your market?

Placement - where will the offering be located to be

purchased?

promotion - letting the market know of the productsavailability. Where can it be found to buy?


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Choosing a Value Proposition

How will a company differentiate itself in the market?

What makes it special and unique? Why should target

markets lend importance to this offering over that of other

offerings?

Think big when you seek out your unique value proposition.

Being the best in price, selection or shipping time is often not

enough to separate you from your competition.

What can you do with your idea and knowledge of your

market to really improve their lives, health, financial situation,

status, prestige, etc...?


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Examples of Value Propositions

Burger Kings Have it your way to indicate that the target

market will get exactly what they want on their terms unlike

their competition that does not offer that value proposition.

Instead, you just get what it says on their menu.

Your customers will often tell you what they want today or

yesterday, but trends and patterns will tell you what they will

want next year and the year after that.

Mix short-term market research with longer term research.


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Target Marketing

Target marketing is being facilitated by the rapid spread ofspecial-interest magazines, TV channels, and Internet

newsgroups. Information systems assemble information about

individual customers' purchases, preferences, demographics,

and profitability.


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TARGET MARKET STRATEGIES

Single-segment strategy- One market segment (not the entire market) is served with one marketing mix.

A single-segment approach often is the strategy of choice for smaller companies with limited resources.

Selective specialization- Different marketing mixes are offered to different segments. The product itself

may or may not be different in many cases only the promotional message or distribution channels vary.

Product specialization- The firm specializes in a particular product andtailors it to different market

segments. An example of this marketing is when State Tourism Boards advertise the various things to do

and see in their State and encourage tourists from different market segments to visit their State.

Market specialization- The firm specializes in serving a particular market segment and offers that segment

an array of different products. As simple as it sounds, when Pep Boys or AutoZone advertise, they are

serving car owners and are advertising or offering an array of automobile products for a consumer to buy to

care for their cars.

Full market coverage- The firm attempts to serve the entire market. This coverage can be achieved by

means of either a mass market strategy in which a single undifferentiated marketing mix is offered to the

entire market, or by a differentiated strategy in which a separate marketing mix is offered to each segment.3


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Marketing trends taking place.


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The Societal Marketing Concept

This path questions whether the immediate wants and desires

of the consumer are harming the future of the consumer and

the planet. It calls for sustainable marketing, which is the

creation of products that are socially responsible, serve the

current needs of the consumer but at the same time, preserve

the ability of future generations to get their needs met.


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The Societal Marketing Concept

Should all companies that make and sell products to

consumers be required to follow certain protocols in keepingthe planet clean?

Should there be a system for proper disposal of their product

once it is done being useful?

What is your opinion of companies that are fined for social

and ecological recklessness and polluting the environment?

Should more be done about it?


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A broader brand presence across channels

With the range of available marketing channels growing all

the time, businesses will start to recognize the value of

connecting up their marketing approach across the web,

social media and other channels.

Instead of relying on one or two channel marketing

approaches, more and more companies will link up their

activities to create a truly coherent brand across multiple

channels.


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The rise and rise of user-generated content

Whether it is a YouTube video showing a customer

using a product or customers sharing their

experiences within a selective online community,

content that comes direct from the potential orexisting customer is likely to grow in value. The key

test of this trend will be how successfully companies

inspire and facilitate user-generated content.


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Mobile marketing reaches critical mass

Mobile is going centre stage. A third of smartphone owners

have used their device to buy a product online and this

number is growing.

This demands targeted, mobile-ready content and a

willingness to adapt internal marketing processes.

With 59% of UK consumers now in possession of a

smartphone and 18% owning a tablet device, mobile

marketing is a trend that businesses cant afford to ignore.


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The gap closes between business brands and

social media

Companies will start taking social media more seriously as aprofessional marketing tool.

But it wont just be the big companies using social media to

actively connect with customers. Many more companies willstart to interact, meaning customer service and customerinteraction via social media will evolve even further.

The user or the customer will take centre stage with the riseof the brand advocate in recommending, recruiting customersand connecting with companies.


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A clearer vision on the value of analytics

With increased channels and brand presence, businesses will

look to clarify and streamline their marketing data.

Companies will recognize the value of analytics that allow

them to maximize on the flexibility of social media marketing

by adapting their content according to live viewer response.

Add to this an increasing focus on cost management and

online marketing analytics look set to become the vital flipside

of business marketing.


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Marketing becomes more personalized

Tailored content that is customized to the needs and interests

of a specific market or audience will grow in value and

popularity due to the growing presence of online, niche

communities, for example.

As people become more and more accustomed to selecting

which brands and businesses can join them within their own

online community, the value of personalized marketing

approaches and content will continue to grow.


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The voice of the customer will get louder

Social media word of mouth will keep growing, with people

increasingly relying on their own online social circles to advise

and comment on their choice of services or products.

The companies that actively embrace this shift will be the

ones that boost their profile and credibility .


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Geotargeting and localized marketing

Local discount websites like Groupon and local review sites

like Yelp make it easy for consumers to find deals and reviews

about businesses in their neighborhoods and beyond.

Creating targeted, local marketing campaigns using these

popular tools will become the norm.
http://www.groupon.com/http://www.yelp.com/http://www.yelp.com/http://www.groupon.com/


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Co-marketing

The economy is still struggling, which means small businesses

can benefit from economies of scale by partnering with

complementary businesses to develop co-marketing

programs.

Promotional partnerships not only lead to reduced costs but

also can lead to increased exposure to new audiences.
http://www.entrepreneur.com/marketing/article203712.htmlhttp://www.entrepreneur.com/marketing/article203712.htmlhttp://www.entrepreneur.com/marketing/article203712.htmlhttp://www.entrepreneur.com/marketing/article203712.htmlhttp://www.entrepreneur.com/marketing/article203712.htmlhttp://www.entrepreneur.com/marketing/article203712.html


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Centralization and Decentralization

Both global and local firms are adopting a combination of

centralization and decentralization to better balance local

adaptation and global standardization.

The goal is to encourage more initiative and

"entrepreneurship" at the local level, while preserving the

necessary global guidelines and standards.

3.Marketing PP 1st Class

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