Marketing midterm

Brand/Company Hits and Misses

Hits: Newman's own -100% of profits go to charity "lets give it all away" Tom's Miss: donated to shoes to those in poor countries, while simultaneously taking income from small business Hit: 1/3 of profits for grassroots good Pepsi Misses:

Perspective shift - outside - in

"When you start with what's at stake for the buyer, you earn the right to their attention" From Inside out To Outside in View Everything From Consumer Perspective Usage & Reach of Marketing Who Markets? -Businesses -Government units -Non-profit and cause related organizations -YOU Who is Marketed? -"offerings" come in many forms *Goods *Services *Ideas & Ideals Who uses & buys? -ultimately consumers -organizational buyers Consumer benefit? -Utility > Emotional rewards Customer benefits? -utility > emotional reward

The Wheel of Social Media Engagement ("big picture")

-information effect -connected effect -network effect -dynamic effect * back-and-forth exchanges between participants (customers) *People joining new online communities as their interests change over time time -Timeliness Effect NOW SOCIAL COMMERCE: Engagement = information, connected, network, dynamic, timeliness, and information

Reality of online economics and competition

-In most markets, online merchants often have HIGHER costs than do conventional retailers -Intermediaries usually add value through specialization of labor and consolidation of tasks. Eliminating intermediaries often results in higher costs -Customers do a lot of work when they select aggregate, bring for check-out, and carry away their products. Employees of e-commerce companies and their transportation services have to be paid to do this work -When going online, competition usually becomes at least national - and possibly international - in scope. Normal - Industry Norm Profits -Expected profit levels for a given level of investment and risk. Competition creates " normal" profit equilibrium Walmart online and in-store pricing: The higher online prices are part of Walmart's efforts to nudge more customers into as well as raise its e-commerce margins by offsetting the cost to ship orders to homes. Often the online prices match Amazons. It simply costs less to sell some items in store. Customers can access those store prices online when they. choose to pick up the. item in store Amazon: because amazon's cost are about the same whether it is shipping a $10 book or a $1,000 skirt, gross profit dollars per unit will be much higher on a fashion item Convenience to the customer: Willingness to pay. Sensitivity to delayed delivery. Hybrid formats - ordering online for pickup in store Amazon Prime Now - delivery within 1 or 2 hours (extra $) NOW! Amazon two-hour grocery delivery Amazon Pantry L'Oreal: Makeup Genius app allow the user to scan face, which identifies around 60 characteristics. Individual recommendations are made. Valuable data on consumers is obtained on 20 million users. Allows the customer to imagine herself with various styles and products. Collaboration with Google to identify specific search terms Extent of customization needed: Highly customized items -- e.g., insurance plane tickets, personalization -- customers do much of the work (i.e., data entry Assortment of variations needed: e.g. clothing colors and sizes Considerations in Evaluating E-Commerce Potential -Value to Bulk Ratio : High value, low weight/volume items can be more readily handled and shipped -Absolute Margins: Absolute or Percentage -Ability to evaluate quality/fit online -Consumer convince/cost value equation -Customer sensitivity to delayed delivery -Extent of customization needed. -Geographic dispersal of customers -Inventory value decline over time -Assortment of variations needed

Pandemic Effect on Consumer Behavior

-Stay connected to friends and family -Access to entertainment MOTIVES: MASLOW'S HIERARCHY OF NEEDS -self-actualization: achieving one's full potential including creative activities -esteem needs; prestige and feeling of accomplishment -belongingness and love needs: intimate relationships, friends -Safety needs: security, safety -Physiological needs: food, water, warmth and rest Coronavirus: panic buying, herd mentality, consumer discretionary spending via Maslow's hierarchy of needs, influence of the media on consumer sentiment -hoarding, improvisation, embracing digital tech, pent up demand, new "store" mindset, blurring work-life boundaries remote work, family & friend reunions, new talents & skills. -Changes: lower income consumer stress point deepen, massive increase in online shopping grocery - omni-channel staying power, lasting surge in health & wellness priorities, shift & melding of in-home & out-of-home "living" & experiences. Hybrid human capital management & motivation. Sustainability continued high priority - clarity & price value/ benefit ratios The pandemic has accelerated digital transformation factors already in play by 3-5 years across business sectors *Facebook Reels, Instagram Collabs, Youtube Shorts, Facebook Live Audio Rooms, Bye-bye cookies, LinkedIn Creator Mode, three-minute TikTok's, Twitter Spaces, IOS blocking, ad tracking, NFTs, the Metaverse, Web 3.0 at CES *Digital Creates On-going change Pandemic Dramatically Accelerating the Pace Exciting & Challenging Tradigital marketing: Need for a more balanced investment across online and offline channels

"Bricks-and-clicks" potential

-business model by which a company integrates both offline (bricks) and online (clicks) presences -Brand equity -Volume purchasing power -inventory assortment warranted by combined store and online sales Traditional retail chains and online presence tend to have synergy -Online access to store information - hours, locations, directions -Checking on "in stock" status on local stores -Online orders with store pickup -Online orders with delivery; store return option Brand equity Volume purchasing power Inventory assortment warranted by combined store and online sales Impact like an iceberg: online purchases on top and under the water is digitally influenced store sales. 1 in 4 store purchases are digitally influenced

Consumer journeys & moments

1. track and measure your customers' entire buying journey, no matter how complex 2. Deign cross-channel marketing programs using capable marketing automation software 3. Use marketing automation to nurture leads, building relationships that drive sales 4. Personalize and target content so your customers get what they need without a. lot of irrelevant information 5. track your marketing's effectiveness. Measuring performance delivers results 6. Listen 24/7. Respond and renovate as needed

Steps for segmenting consumer markets

1.identify benefits/attributes most important to the customer: one-on-one discussions. focus groups. mini-surveys. managerial judgment 2. Determine value customers place on attributes: conjoint analysis. manual rankings/ ratings 3. Group people according to which product attributes are important to them: cluster analysis 4. determine other identifying variables that distinguish the same group: discriminant analysis 5. Assess segment attractiveness: market analysis. managerial judgment Consumer segmentation - evolved & enabled by digital -"there is no more everyone in marketing. Instead, there many pockets of some ones" -Creating a "segment of one" is no longer an unsustainable ideal. Through the explosive growth of data tech, new marketing techniques and content delivery customization we are closer than ever Beyond the segment -beliefs -who do they trust -friends -fears -aspirations -what do they talk about

Internent Roles

29% of daily time. 80% keep within 5 feet extended the digital day. We do everything on Mobile 35% of E-commerce. Shopping, social, gaming, music, watch video, content, bank, pay, transact, essential research tool. Personal. Always with you. A heartbeat away. "Remote control for our lives -Mobile coupons: dominoes -Sephora: inshore guides & helpers through application 1. Audiences are spending their mobile time on apps (more than ever before) 2. Mobile-first categories are becoming entrenched 3 Mobile commerce is booming 4. The app marketplace may have reached a saturation point Reasons for Mobile app usage -Me time -self expression -discovery -preparation -accomplishing -shopping -socializing

Business-to-Business (B2B) segmentation

B2B Buyer types -manufactures.service providers -resellers -institutions -government Purchase types -straight rebuy (same brand, same vendor as last time) -limited decision making -extended decision making b2b Markets: resellers, institutions, government, manufactures/service providers Characteristics: great involvement (more important decisions). Bureaucracy (more people involved). Long term relationships - investing in providing value to the customer over time; anticipating customer needs. Price is important but may not be the most important

Internet of Things

An increasing number of internet connected devices & appliances. Wifi, cellular connections, Bluetooth and other "patch-ins" Examples -Printers: automatic ordering of consumables -Doors: remote unlocking for deliveries, service call, and approved hotel room entry -TVs & electronics: downloading upgrades -Lights and appliances: controlled remotely -Commercial aircraft: Maintenance info automatically sent in advance of arrival -Livestock Management: milking schedule arrive Mobility always expanding: 4 screens, + the car, the wrist, the table, on the eyes, in the "mind" (oculus), IOT (internet of things) A mobile first mindset

Approaches to alternative identification - internal vs. external search

Approaches to search for Solutions/Options Internal: memory thinking -Use what is inside the customer's mind -typically used more fore relatively low involvement decisions External: word of mouth, media, store visits, trial -Use of information inside the consumer's mind - talking to others, reading, listing stores -typically used more for relatively high involvement decisions

B2B is now B2P

B2B Buyer types -manufactures.service providers -resellers -institutions -government Purchase types -straight rebuy (same brand, same vendor as last time) -limited decision making -extended decision making b2b Markets: resellers, institutions, government, manufactures/service providers Characteristics: great involvement (more important decisions). Bureaucracy (more people involved). Long term relationships - investing in providing value to the customer over time; anticipating customer needs. Price is important but may not be the most important Behind every purchase order and sales call is a person They transfer their user experiences as consumers to their jobs. Expectations are high. Requires the same personalization as B2C B2B is now B2P

Types of organizations that use marketing

B2B, B2C, B2P Ex.Walmart, DMV, American Red Cross -Traditional CPG company (P&G) selling its products through retail outlets like supermarkets, mass merchandisers and online merchants -Online retailers, direct service providers, media companies, SAS -"freemium" products: Some customers get the basic product for free as a means of developing awareness and preference; money is made directly only on those customers who buy a more advanced version -ride sharing (Uber and Lyft): a commission is earned as the firm creates value by connecting customers and service providers -Apple: stylish design of electronics -Amazon: economies of scale and broad assortment of online and supermarket merchandise

Facebook as a targeting/segmentation tool

Based On -what you do. how you behave. how you act. how you react. On Facebook and online ration & emotional intelligence face book filters location: country, state, city, zip code interests - behaviors (travel, mobile device users, digital activities) -demographic (age, gender, language) -connections: include opal connected to your page, app, or event. exclude people ready connect to your page app or event. Include people whose friends are connected to your page, app, or event

Segmentation labels (bases or variables used)

Bases -demographic: age gender, income, ethnicity, family lifecycle stage -geographic: regional differences, migro-segmentation -psychographic: a combination of demographics and lifestyles. motives. values. lifestyles -behavioral -social class -lifestyles -commitment levels -usage patterns -affiation or occupation -profitability -benefits sought

Key strategic drivers of purpose driven marketing

Brand values are the organic roots from which purpose-driven marketing grows. Brand purpose must strengthen and "appreciate" brand equity assets Principles: 1. Recognition of marketing's greater purpose 2. consideration of stakeholders and their independence 3. The presence of conscious leadership, creating a corporate culture 4. The understanding that decisions are ethically based Ex: When Walmart issued new standards for livestock products that were raised on foo without antibiotics or artificial growth hormones, it considered multiple stakeholder groups including that ranchers that supply the food, its customers, and animal welfare groups. The Stakeholders of purpose driven marketing -Employees: employees, their family -Marketplace: Partners, competitors -Customers: Current customers, potential customers -Society: community, environment Ethos: increase, awareness, leads to better brand equity, increase sales MUST MONITOR AND CONFORM TO SHIFTS AND TRENDS WHILE REMAINING TRUE TO BRAND MISSION AND PURPOSE Toms: post pictures of bare feet and for every photo the company would donate a pair of shoes. Gives one pair of shoes to someone in need in poor countries for each pair it sells -buy one give one model React and iterate: 1/3 of profits for grassroots good = we believe in a future where all people have the chance to thrive. That's why we invest 1/2 of our profits in grassroots efforts, like organizations creating changes at the local level, and driving progress from the ground up. LINEAR PATH TO PURPOSE: company ideals values, sincere mission statement, brand value propositions, brand values articulation, purpose platform(s) identified, proof content delivery, actions impact, sustain & evolve BRAND ETHOS/VALUES MADE ACCESSIBLE THROUGH AND/OR SUPPORTED CAUSES HELPING CONSUMERS BOND AND CONNECT MORE FULLY WITH THE "TOTAL" BRAND Do vs. Say Strategic Drivers: Sincerity, Respectful and responsive to consumer needs & desires harness positive emotions energize hopeful change & initiatives, always be true to the brand reflective of company culture - Live it inside. Top to bottom. Actions speak louder than words sustained commitment - not cause of the moment Plan *To achieve desire objective (e.g., profit, market share) *Based on available resources (e.g., financial, patents, trademarks, people, brand name/image, distribution channels) *Subject to choices made (e.g., willingness to take risk, short run vs, long run goals Strategy: Resources, experimentation/experience, environment, priorities/opportunity cost Strategic Goals of Marketing Communications (Reaching, Cultivating, Converting & Nurturing Customers for "Life" -Financial Goal: Revenue/Share/Profit -Identify Prospects: Who are they, what do they know about you, what do you want them to do? -Reach Prospects: Determine how and when to reach them with tools that move commuters form awareness to brand message to purchase to repeat -Create Motivating Ads: Determine how to create impactful communications that sell -Build Channel Relationships; Determine how to aid middlemen in their efforts to sell your product Strategic objectives: desired outcomes to be achieved within a given time period -Will vary between firms based on differences I mission and readiness to tackle particular challenges (e.g., awareness of a brand is needed before an improvement in image can be pursued) ------Strategic Planning------- NIKE Mission: "to bring inspiration and innovation to every athlete* in the world." *"If you have a body you are an athlete." Objective(2017): $36 Billion Revenue Organizational Strategies: Increase Direct to Consumer penetration to achieve $8 billion in sales by 2017. Focus on international sales, specifically from BRIC countries Portfolio Plan:

Omni-Channel Marketing

CMO = "Experience Architects" ONE CONSUMER. ONE COMPANY. ONE CONSISTENT EXPERIENCE the omni-channel consumer expects everything to be readily available at his or her fingertips and expects the overall brand experience to be similar accessible creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping Customers may start in one channel and move to another as they progress to a resolution. These channel 'hand-offs' must be fluid for the customer. Message + Tools + Channels + Devices = One seamless one channel experience Purchase < Real time > Communicate Track. Evaluate. Eliminate Friction. Enhance

Shift in Definition of Marketing

CUSTOMER EXPERIENCES THAT BUILD MUTUALLY REWARDING RELATIONSHIPS AND CREATE ENDURING RECIPROCAL VALUE Art vs Science = science enables art Data is not the enemy of the creative art; It can be it's most powerful ally Creativity is the power tool of Marketing. The Differentiator Data may provide knowledge and new insights, but it cannot create an emotional bond with the consumer Creativity is one of the last remaining legal ways of gaining an unfair advantage over the competition -Ed McCabe Practice: The art and science of creating "profitable" demand by developing lasting value & "values" based consumer relationships by cultivating, creating and curating meaningful brand experience and sincerely sharing your brand story. "Relational," Dialogue & Conversations Personal Emotional 24/7

Evolving Role of the CMO

Chief... Digital officer, innovation officer, customer experience officer, growth officer... MARKETING OFFICER chief experience officer Understand Global Consumer Segments, Understand Multichannel Marketing, Has High Job Turnover chief marketing officer • Senior level executive, responsible for firm's marketing activities • Today CMO must understand changing global segment needs • Market to multichannel shoppers • "voice of consumer", most dangerous job (avg 23 months)

Compensatory vs. non-compensatory decision strategies

Compensatory: weigh alternatives all the time Non-compensatory: non-negotiator. You must meet a criteria (organic/vegan)

Consumer decision stages

Consumer Decision Making Matrix: Consumer decision process Psychological factors -motives -attitudes -perceptions -learning and memory -lifestyle Marketing mix -product -price -people -place -promotion Social factors -family -reference groups -culture Situational factors -purchase situation -sensory situation -temporal state MOTIVATIONS AND DECISIONS -identify consumer motivations for purchase choices -differentiate compensatory and non-compensatory decision strategies -identify *The components of attitudes and their respective significance *attitude change strategies and their respective advantages and disadvantages MOTIVES: MASLOW'S HIERARCHY OF NEEDS -self-actualization: achieving one's full potential including creative activities -esteem needs; prestige and feeling of accomplishment -belongingness and love needs: intimate relationships, friends -Safety needs: security, safety -Physiological needs: food, water, warmth and rest APPLE AND NIKE Follow this format -nike: just do it. How to make a better performance running shoe. How you should be motivated and not give up (running commercial) keep going forward

Consumer benefits and delivering value

Consumer benefits: Utility > Emotional Rewards BUILDING BRAND EQUITY: separates elevates brands from products. The value a company gains from its name recognition and associations when compared to other brand or a generic equivalent The pyramid Ideals Marketing building blocks, positioning purpose & soul Reduce Cost (Value Engineering): Increasing offering value by -decreasing cost -improving *durability *performance *reliability *convenience *aesthetics Speed Stick: No box-> lower cost, less waste, less bulk, less hassle Consumer Value: Ziploc Bags -all different types of ziploc bags created for different consumers to hold different produce Nordstrom: -variety -service (relationship and experience) -don't care about the price mainly art the service Walmart: -influential to everyone around -price -> thrive on price -mass consumption -a lot of variety - convince - super centers - if you do not meet their supply you are loosing 20% of your business already IDEALS: everyday low price, always -price match, must be competitive on price -business pay to be on the shelf Starbucks: -first place home, second place work, third place Starbucks as a resting place/ to hangout do work -around people not isolated -pioneered loyalty (earn Starbucks card, birthday, 20 to 30% are in that club) -made mobile as part of what they do -drive threes -keep connection/remember customers CREATING THE DIGITAL THIRD PLACE: looking at the meta verse Apple: -part of a family -many customers are willing to pay a premium on the iPhone relative to Android based brands offering similar features -online tutorial makers and info produced by others -integration with iPad and Apple computers -Elegance -App developers 1/3 -> depends on the brand. Brand names make the brand stand out

Mass Marketing > marketing to clusters > personalization/Personas

Consumer profiling evolution 1.Mass Marketing: One to all 2.Segmentation: one to clusters. Demographics, Psychographics, lifestyle, life-cycle 3. Plus. Now: Real Time Behavior. Transactions, web behavior, social activity, mobile behavior, E-mail activity, real time, location based activities

Customer experience centered

Creating, commenting and capturing customer value Creating Customer Lifetime Value (CLV): cost of acquisition, retention rate, discount factor, per period profit-revenues and cost, time horizon, who are our customers Customer value to brand & brand value to the customer Customer Equity Value (CEV): customer lifetime value (purchase), customer social value, customer insight value, customer support value CORE ASSETS (what we do/what do we do best) -Hard: physical, functional, products/services, brand equity IP's. etc -Soft: people, culture, relationships, reputation, etc.

Beyond Segmentation - Consumer/Customer Personas

Customer Personas -buyers personas are research-based archetypal (modeled_ representations of who buyers are, what they are tying to accomplish, what goals drive their behavior, how they think, how they buy, where they buy, when buyers decide to buy and why the make buying decisions Deeper insights that drive marketing messages that reach potential customers are on a more personal level. Most companies identify multiple personas that represent target sectors Omni Channel Mapped By Persona -personas guide every consumer touch point: product/service design, website, social pages, MARCOM & CRM Personalized Marketing -when consumers are exposed to your content they should think "wow they totally get me!" Aligned teams (value reaches beyond the marketing department) -when everyone creates experience targeted to the same persona(s) the end result is more cohesive and powerful -Personas are the common touchstones for all departments

Communicating value to customers

Customer experiences that build mutually rewarding relationships and create enduring reciprocal value Customer Value - In the eye of the beholder Exchange: Mutually beneficial relationship -Goods/services producers (sellers) -Communications and delivery -Money and information -customer. consumers (buyers) CLV: Creating Customer Lifetime Value Customer Value to Brand & Brand Value to Customer -cost of acquisition -retention rate -discount factor -per period profit - revenues and cost -time horizon -who are our customers Customer Total Value (Customer Equity Value (CEV)) -Customer Lifetime value (purchases) -Customer Social Value -Customer Insight Value -Customer Support Value Creating, Communicating, and capturing customer value -Delivery: distribution exception of services -Offering: Products, service, and ideas *Value: customer benefits -Utility -Convenience (availability, ease of use) -communication (exchange, capture by seller, money: behavior from buyer) -Effectiveness -Pleasure -Security -Creation: research, design, manufacturing -What does the brand contribute in the customers brand -how do you create economic value VALUE CREATION: 5P's PEOPLE, place, product, price promotion Strategic Goals of Marketing Communications: Reaching, Cultivating, Converting & Nurturing Customers For "Life" -Financial Goal: Revenue/ Share/ Profit, etc -Identify Prospects: Who are they, what do they know about you, what do you want them to do? -Reach Prospects: Determine how and when to reach them with tools that move consumers from awareness to brand message to purchase to repeat -Create Motivating Ads: Determine how to create impactful communications that sell -Build Channel relationships: Determine how to aid middlemen in their efforts to sell your products BUILD CONSUMER RELATIONSHIPS: Always-On Listening, Engaging & Servicing Customer Wants & desires Marketing Environment: Consumers Controls Mkt'g Consumption, Businesses Live In Glass Houses, Business Culture is Currency Customers are no longe passive recipients of Marketing Messages Permission Based Marketing Mindset. Brands have to "earn It" "Culture is your brand. Be real and sincere and you have nothing to fear." Tony Hsieh, CEO Zappos CULTURE IS THE COMPANY DREAM AND VALUES LIVED EVERYDAY

Consumer problems, recognition & solutions

Discrepancy between ideal and actual state -not always recognized immediately Need > Problem/ Opportunity recognition -functional needs: practical, substantive -psychological needs: driven by internal forces RELIEVING PAIN POINTS OR OVERCOMING OPPORTUNITY OBSTACLES Problem/opportunity recognition and decision making -need recognition -information search -alternative evaluation -purchase and consumption -post-purchase Intrinsic informed by extrinsic Extrinsic informing intrinsic More than "problem" mindset needed Solutions/Options Internal: memory thinking -Use what is inside the customer's mind -typically used more fore relatively low involvement decisions External: word of mouth, media, store visits, trial -Use of information inside the consumer's mind - talking to others, reading, listing stores -typically used more for relatively high involvement decisions

Persona best practices

Disney Movies Anywhere Personas -connects to every sort of individual Aruba (customer personas travel/tourism) -customer interviews -secondary research -syndicated services -analyze actions across touch points -find insights -build personas -map to customer goals & P2P build Omni-channel visions -create brand story for each -measure performance & adapt Island destination Six personas -middle "burbs" -super affluent -empty nester -premium travelers -single parent -blue collar elite Goal to see the world through their eyes Century 21 department stores -fashion chasers -continuals -sensibles disengaged -reluctants

Company culture is marketing

Employees Basic Responsibility: -ensure a safe working environment free of threats to their physical safety, health, or well being Fair & Equitable compensation: although closing its stores on Black Friday mean REI lots some sales, the conscious culture in the firm emphasized that employees should be enjoying time outdoors with their families too Doing Good: Good for employee engagement -When an employee connects on a deeper level with an organization, the higher probability they will be engaged -No longer confined to a place based environment...company culture is an asset that permits and enhances all aspects of a brand's marketing mix CULTURE AS BUSINESS CURRENCY ex: -NY Times Journalists Spotlights -Nissan: employee family video series -Charlie D'amelio/Tiktok: interviewing Dunkin employees about life behind the counter at dunkin Environment -sustainability is special category that combines considerations of all stakeholders -outside stockholders -supply chain management -employee champions 91% of people want brands to demonstrate they are making positive choices about the planet and environment more explicit in everything they do. 81% of respondents in North America say they would stop using or buying products if they found out they hurt the environment Essential CRS (corporate social responsibility) today "I think if people who work for a business are proud of. the business they work for, they'll work that much harder, and therefore, I think turning your business into a real force for good is good business sense as well

General ethical concerns: Misleading communication, potentially harmful products, purpose driven brand marketing

Ethical behavior filters: consumer "Will this action contribute to creating a customer for life - a most valued customer (MVC)? -At best: Yes! -At worst: Neutral -Never: maybe/risky YOU SHOULD HAVE A CLEAR EXPLANATION TO THE ACTION THAT I WANT THE BRAND TO BE - profit -marginal benefit -trade off my name -look myself in the mirror -are you proud of this -would I like to be on the receiving end end -bring your band on the shoulders of your strengths not not the back of their weakness Ex: McDonalds: Balance breakfast? -deceptive, builds unhealthy eating habits Vitamin water: unethical and deceptive -"flue shots are so last year" - enabling people to not considerate of others POM: unethical w/ design and wording based on its "antioxidant" powers a the noose Sales: 50% OFF ENTIRE STORE (some exceptions apply) -deceptive because not all items are on sale Photoshop ads: deceptive photoshop to make it appealing to the eye Toy R US: breaking bad toy unethical does don't follow the so on so "morals" that target has since forth followed Coke: tries to tackle obesity for first time in 'damage control' TV ad campaign touting drink's 140 happy calories SIMPLE SAGE SAFE SENSE ADVICE -Don't lie -Don't cheat -don't steal -Don't hurt -keep your promises -be nice -help others -don't do illegal stuff

Marketing's evolving role (letting go of marketing legacy)

Goal: get money -marketing is to deliver mission than money will come b to b -> business to business b to c --> business to consumer b to p --> business to people. I f you are not give to them they can get it somewhere else. Must Mae emotional connections to have lasting connections. Empathetic connections. Put yourself into the shows of the customer Legacy still lingers: Marking ideas: Facebook, Twitter, app? Endorsement viral video? contest " I miss the old days when we could just tout things." 5 stages of digital transformation Denial: We don't need change Anger: Why is everything changing Bargaining: what's the minimum we have to change Depression: We'll never be able to change Acceptance: Maybe if we just change our CMO CMO: Chief marking officer CMO Tenure: Shortest of C-suite exes 41 months From Procrastination to urgency: Digital transformation is years away. I don't see our company having to change any time soon.. COVID-19. The pandemic has accelerated digital transformation factors already in play by 3-5 years across business sectors Marketing = great customer experiences marketers struggling to catch up to customers. 360 24/7. Everywhere. End to End & Never Ending.

Digital ecosystem planning

Journey road map -conversation -story telling -across platforms -over tme DEFINE Platform roles -twitter: cultural connector/newsroom -facebook: always on uniting community. Social's central Hub - deep targeting, messaging & engagement Discover-Explore/consider-buy-recommend -tiktok: young adult music, entertainment, culture playground. UGC -Youtube: Long form video brand story telling (Now shorts) -Pinterest: Visual showcase- purchase influencer skews female -Instagram: Visual & video - #hashtags, powerful sharing, UGC -Snapchat: younger. "instant" visual & video. Higher engagement -Linked In: Facebook of business & professionals -Clubhouse: Drop-in audio chat -- community of interests, information & engagement TAILOR CONTENT TO EACH PLATFORM Brick & Mortar O to O Transformation Blending Online & Offline Stores are becoming digitally-powered ecosystems to serve each stage of the omni-channel shopping process -Virtual measurement -Smart packaging -click-and-collect -BOPIS -Shopper profile -Selling/cross-selling -Virtual try-on -Curbside pickup -Automated checkout

Tippability

Likelihood that a consumer will buy a good or service after being introduced to it. The potential of a small factor to change a low stakes decision from one alternative to another one (possibly the one usually chosen) to another one offering this benefit - e.g., -Interesting image on packaging -Premium (free gift) - Celebrity/ influencer endorsement

Target CMO video

Live up to the omni channel experience (COE) Target stores -every moment is a shopping moment thanks to their device MOBILE IS THE FRONT DOOR TO TARGET -cartwheel app -all products are mobile -frictionless customer experience - First % Always -020 - Critical omni-channel experience =Mobil first organization - internally & externally - Every moment A "shopping moment" 1. Mobile first 2. Customer valuement -> everything is by the digital team --> North Star listen to the customer: driving what is best for them -CMOL "experience architects" Pay off -linked Omni-channel customers 8x more valuable

Characteristics of strong marketing segments

Market segment: a relatively homogenous customer group that will react similarly to a particular marketing mix

Multi-roles of the internet

Marketers Delight Attractive & Widely accepted Fast & Cost Effective Economical Communications Everything Is Measurable Continuous Data Stream Real Time Results & Action Always "Open For Business" Highly Targeted Personalization att Scale Continuous Touch Points Sharable Instantly People Love using it Sales Engine - E-commerce A Robust Research Engine On Call 24/7, Fast, Economical, Dynamic Information, Insight, Intelligence Relationship Builder Customer Service Culture Hub Essential Marcom Channel Retail commerce sales reaching $5.5 trillion Retail commerce by region: APAC leads by a large margin = e-commerce spending in Asia-Pacific is three times that in North America (China Dominates 52%) Strong double-digit growth in e-commerce: mobile sales continue to grow faster than retail e=commerce sales overall 2021, $3.2 Trillion. 12.8 % global retail sales. 65% E-commerce Sales China leads the world in social commerce: almost half of China's internet users will buy goods & services via social media platforms in 2021 The US will rank second in social buyer penetration 35.9% in 2021 Of the Western European countries none will register penetration above 24% 25% TikTok users say that they purchase or research a product after watching TikTok --- Growing, Shifting, Innovating TikTok is moving into e-commerce. The company announced this morning an expanded partnership with e-commerce platform Shopify, as well as a pilot test of TikTok Shopping among select Shopify merchants across the U.S., U.K. and Canada in the weeks to come ----------------------- Digitally Transformed -Rapid & constantly changing business environment -Mass Media losing audiences and views *ability to access & provide info is going to expand rapidly -Mobile ubiquity -Now in 5G - Pow & Wow! -Digital media spending dominates VIDEO rules *Digital media spending dominates VIDEO Rules -Micro Targeting & Al Powered Personalization vs Privacy -Consumers control "communications" - not passive/ad blockers *Can control whether to block ads. The ones who still don't block ads are older generations and will be more assertive to share -Information & influence from a myriad sources -Convergence & Confluence of Messaging *Have to be a master of storytelling. One story/Be GREAT AT STORY TELLING. Story telling choir: create, collaborate, cultivate, cox, curate -C-Suite Functions Converging -Data Deluge: Opportunity & Challenge *Facebook Reels, Instagram Collabs, Youtube Shorts, Facebook Live Audio Rooms, Bye-bye cookies, LinkedIn Creator Mode, three-minute TikTok's, Twitter Spaces, IOS blocking, ad tracking, NFTs, the Metaverse, Web 3.0 at CES *Digital Creates On-going change Pandemic Dramatically Accelerating the Pace Exciting & Challenging *Front end: rich, more immersive and personalized customer experience. Back-end: transmits more data than marketers are prepared to analyze and execute against -CHANGE!!! - Fast, Fluid, Dynamic The third place Customer value: Starbucks -"locations that exclusively offer mobile order and pay." -"drive-thru and delivery, as well as new technology"

Relationship marketing - vs selling

Marketing = Relationships "serving more than selling" -Selling (selling existing products with whatever methods are necessary) vs. marketing orientation (serving customer needs whether in current or new forms) -Maintaining a relationship with the customer over time rather than just focusing on immediate sales *Anticipating customer needs *Providing solutions *Investing in products and services optimized for the customer

Fundamental Systemic Changes Brought about by Digital Internet roles

Marketing Mix: + People = 5P's: Consumer Target (conventional experiences): Price(Value & "EDLP" everyday low pricing Rule), Product (purpose embedded into the ground), place (on demand economy), promotion (Now! On-demand, 24/7 Real time personal, A + Ideas *attention interest desire engagement (emotion&empathy) action share!! CRUCIAL. hav etc think with a mindset of feel what I want to share*) and people -Beyond target audience people as customers, curators, co-creators of your brand story Traditional Target Market Definitions & segmentations are not enough. Consumer profiling tools of the past are "starting points" guideposts must catch-up with the customer empowered customers have disrupted every industry. In this age of the customers the only sustainable competitive advantage is knowledge of and engagement with customers + uncontrollable factors includes: economy (people), technology (place), Mother Nature (product), competition (price), and government (promotion) = Fluidity & change A mosaic always in motion Fundamental Systemic Change -Marketing Mix -Metrics of Success: -Messaging Hierarchy: -Delivery Systems:

Considerations in determining suitability for products and services for sale online

Marketplace Influence: one firm in an industry can lead the way toward conscious marketing. Partners and competitors often have no choice but to follower CRS (corporate social responsibility): type of business self-regulation with the aim of being socially accountable -Corporate social responsibility as an element of conscious marketing -ethical performance -social performance -environmental performance "social businesses implement social technologies, strategies and processes that span across their entire enterprise, creating and optimizing collaborative ecosystems of employees, customers, partners, suppliers, communities, and stakeholders in a safe and consistent way LINEAR PATH TO PURPOSE: company ideals values, sincere mission statement, brand value propositions, brand values articulation, purpose platform(s) identified, proof content delivery, actions impact, sustain & evolve BRAND ETHOS/VALUES MADE ACCESSIBLE THROUGH AND/OR SUPPORTED CAUSES HELPING CONSUMERS BOND AND CONNECT MORE FULLY WITH THE "TOTAL" BRAND H&M= promise to be sustainable: let's make fashion sustainable and sustainability fashionable. Let's write a new promise when these boxes are ticked. Let's change fashion Dawn: superior grease cutter (clean dishes) yet gentle on your skin. Rescuing wildlife effected by oil contamination and restoring them to their habitat Lego: sustainable materials. Inspire the builders of tomorrow Uber and Madd (mothers against drunk driving: target a a cause that has meaning to your customer and connects with your brand in a relevant way Coke: Hilltop commercial that promoted inclusion

Heuristics

Mental shortcuts or "rules of thumb" that often lead to a solution (but not always). Low effort decisions rules for low stake decisions that should be made quickly - e.g., -if either Coke or Pepsi is on sale, buy that brand; otherwise, buy Coke -The larger thee navels, the better the orange -Foods with "natural" ingredients are "better" -If something is on sale, it is a good deal (not always the case in reality) -The larger package is likely to offer a lower unit price (not true in reality) Intended for a quick decision rather than the best one that could be made with more effort and time

Beyond company mission - Values & Ideals

Mission statement is the reason for its existence. It defines the direction in which the organization is heading and how it will succeed in reaching its desired goal. Ideal Mission -focus on broad class of needs to be satisfied -define your business..and who your customer is..with a long term view -are market focused not product focused -leverages core competency -Are achievable -Are motivational internally and externally -Are specific -Are short -Are competitive/unique MUST BE MEANINGFUL Papa John's: will create superior brands loyalty ("raving fans") through authentic, superior-quality products, legendary customer service and exceptional community service Little Caesars: To be an innovative global leader by focusing on convince, exceeding customer expectations with extraordinary value and great tasting products, provided by outstanding people resulting in strong returns to our stakeholders. Pizza Hut: Take pride in making the perfect pizza, provide courteous and helpful service at all times and strive to have every customer say that they plan to be back. Domino's: world leader in pizza delivery operating a network of company-owned and franchise-owed stores in the United States and international markets. Domino's is a company of exceptional people on a mission to have the best pizza delivery company in the world Vision: -1. in people -1. In pizza Mission: sell more pizza, have more fun Values: -treat people as you'd like to be treated ex: Domino's : We are a technology company that makes & delivers great pizza

Role of personas

Must tell a "story" Who I am and who I aspire to become Expression - what I say Profession - Where I work Audience - who I know Hobbies - My playful passions Trends _ Where & how I am looking ahead Behind every screen, every expression, click and impression, is a human being ... not a consumer Personalization: brand loyalty, engagement and conversation, customer retention PERSONAS INFORM AND ENABLE EFFECTIVE PERSONALIZED CONTACT & CONTENT -72% of customers only engage with marketing messages customized to their interest -90% of customers categorize irrelevant messaging as annoying -2 in 3 customers would rather buy from brands that know their purchase history Personas - should foster empathy -see their world -appreciate them as human beings -understand their feelings -communicate your understanding Customer Personas = Aligned Teams -value reaches beyond the marketing department -when everyone creates experiences targeted to the same persona (S) the end result is more cohesive and powerful they are the common touchstones for all departments Empathy Map: What a person(a) is saying, doing, think and feeling in a typical situation

Mapping the Customer Experience

Organize for CX - brain solis -customer experience team: roles & responsibilities, performance metrics, -customer centric process: customer data, customer interface practices, meet & hopefully surpass all expectations -enable & empower technology: organic & cross functional, integrate CRM -perpetual quality control: data, delivery, evolving customer needs Assemble the team: align your organization & build synergistic strategies Master the journey: understand consumer behavior to help inform the media mix Elevate insights: create an analytical blueprint for our connected world Unleash impact: measure marketing performance and inform strategies ex: GOOGLE -non-linear path -narrowing & broadening -consideration set -unpredictable -device enabled -immediate answer -intent breadcrumbs Action -beyond clicks & conversations -align MARCOM to business & revenue -stop marketing to the average make it personal -automat whenever possible how databases of affinity & intent are reshaping the path to purchase ex: Apple -mobile app/e-commerce (apple.com) -peers -apple store (journey experience -packaging -product deign -customer support -product experience -make a dent MESSY MIDDLE: a space of abundant information and unlimited choose that shoppers have learned to manage using a range of cognitive shortcuts 4 E's: exposure. exploration. evaluation. experience

The path to powerful purpose

Purpose: Profit + emotional rewards = greater good purpose = the reason of being -grow the business and positively impact the world. Become the filter for all decision processes Contributes to brand equity & part of the brand story Purpose: the big picture -Purpose is the reason for being. It defines an organization's unique role and value in society that allows it to both grow the business and positively impact the world. A clear purpose becomes the filter for decision making, how to behave and the issues to advance THE NOW MARKETING "P" WORD - PURPOSE Not New: consumers have always adopted brands based on their value (price/benefit ratios) and values (shared emotional connections). Corporate philanthropy But New Context: Today a more specific and sincere linkage (Brand values/consumer values) is essential to success And New Imperatives: Growing majority of consumers prefer brands that sincerely embrace a rather good ethos as part of their DNA DRIVEN BY CUSTOMERS

Consumer behavior & profiling

Segmentation+++ -transactions, web behaviors. mobile activity, email behavior, preferences, demographics, social behaviors -what I've bought -what I've browsed -what device I use -when I am online -where I've visited online -my current status -what I like and dislike -who my friends are The study of activities related to the purchase, use, and disposal of goods and services Applying behavioral learning to marketing in the digital era -routine purchases -impulse buying -costly purchases Steps in the consumer buying process. Functional and psychological needs. Factors that affect information search & decision making. Addressing problems and opportunities BSB Basics Application: consumer profiling - beyond segmentation. Customer personas. The transformed path to purchase relationship & experience driven B2B advancements Some disciplines useful in understanding consumer behavior -psychology -sociology -economics -anthropology -linguistics -geography/environmental -cognitive science (COMMON SENSE & OBSERVATION)

Model for identifying ethical concerns

Step 1: Identify Issues Step 2: Gather info and identify stakeholders Step 3: Brainstorm and evaluate alternatives Step 4: Choose a course of action Ethics: Moral principles that govern a person's/ organization's behavior or the conducting of an activity. Line between ethical and not ethical is not always clear. Marketing Ethics: integral component of conscious/ purpose driven marketing initiatives One approach to evaluating ethics of marketing activities: 1. Is the act deceptive, manipulative, or misleading -Yes: Is there a sufficiently redeeming purpose *Yes: Does this act prey on personal insecurities *Yes: More likely to be ethically problematic -No: Does the act prey on personal insecurities * No: Is a harmful or dangerous product involved -Yes: Does benefit appear to outweigh risk to the user? -Yes: Less likely to be ethically problematic (if the answer is no than it is more likely to be ethically problematic *No Less likely to be ethically problematic

What is marketing today?

Textbook: The activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offering that have value for customers, clients, partners, and society at large Practice: The art and science of creating "profitable" demand by developing lasting value & "values" based consumer relationships by cultivating, creating and curating meaningful brand and sincerely sharing your band story "Relational," dialogue & conversations personal emotional 24/7 Seth Godin: Make things better by making better things -Marketing is the center of everything -Goal of marketing is profit *drives salary *employment *service -You + Consumer = has to be connected purpose driven marketing: Every band must have a set of values that they can follow (need morals). Can't be authentic (You are who you are). Need to be sincere. Share brand story MARKETING NEVER SLEEPS

New digital era marketing mix - The Five P's

The 5P's: (extra P is the Hank P) Customer Target: Promotion, Place, Price, Production, PEOPLE

Unilever - Best Practice Company

The Unilever Sustainable Living Plan sets out to decouple our growth from our environmental footprint, while increasing our positive social impact. -Improve heath and well-being for more than 1 billion -reduce environmental impact by half -enhancing livelihoods for millions Their sustainable brands grew 46% faster than the rest of the business and delivered 70% if its turnover growth Brands without a purpose will have no long-term future with Unilever BALANCE: PROFIT & PURPOSE PERFORMANCE Purpose: People don't want to go end their lives and look back at what they've done and say, 'Well, I built market share of Dove 4.5%' No, they want to say I helped so many millions of women get self-esteem, I helped so many people improve their nutritional situations, and by doing so, I've actually strengthened the institution I represent.' And that is really purpose in action The ethos is fundamental to the success of their business. Purpose is in action due vs say. Advocacy vs activism. Awake vs awokening. What drives the company to do better

Digital path to Purchase Moments

The consumer decision my change at the purchase point -Stockouts -Point-of-purchase (POP) advertising -Salesperson influence -exposure to new alternatives As the internet has grown, it has transformed form a tool for comparing prices to a tool for comparing everything Post-purchase: customer satisfaction, customer loyalty, postpurchase cognitive dissonance Monitor & Engage Customer feelings an behaviors -feelings/stats *customer satisfaction * post-purchase cognitive dissonance *customer loyalty -behaviors *world of mouth/mouse (WOM) 1. Positive 2. Negative *product returns

Customer/Consumer - Marketing's North Star

The customer is the NORTH STAR (the center of the marketing Universe) Mindset: Human connection & personal experience -keeping the relationship with your customer at the center of your focus, to ensure the you're always delivering positive experience that earn loyalty and motivate them to tell others about you Make digital customer engagement the top business priority starting at the C-suite/executive level. Define a north star focused solely on the end customer and ensure that the entire organization...from top to bottom...buys into this singular mission...HBR VIEW EVERYTHINg FROM THE CONSUMERS PRERSPECTIVE

Associative network of knowledge

The linking of one concept to another in a web-like format (ex: Lululemon- leggings, yoga, lemons, health, kombucha)

Pivotal role of mobile & search

Think Mobile first: integrate Mobile upfront into campaign strategy development map mobile's role in customer experience & P2P (end 2 end) define & target the appropriate audiences for all p2p touch-points leverage power of context, proximity & personal connection mobile is more about helping than selling mindset develop creative content that enhances "screen" experience must have digital assets optimized for mobile - Omni-experience apps usb be integrate easily, seamlessly & deliver value set clear goals & metrics - evaluate, refine & optimize often

Social media planning & best practices

Two core pillars 1. Care: customer care center 2. Marketing: organic presence. -brand awareness customer service relationship building -is posted for freee. Potentially show up on follower feeds. Paid - pay to pay -is shared with spend behind it to reach whichever audience brand targets -more content exposure. targeted to the right people. Amplify owned/organic efforts state-of-the art tools. Scale & ROI. More reach & fans -research a larger audience, target ideal customers, drive leads and conversations Together they both: gain new customers and followers, promote quality content, research your target audience. ENGAGEMENT = Collaboration connectivity best when both are unified and "owed" by one central point of responsibility "Stickier" Website Traffic: of customers visit social media pages before website. 58% Bounce less & stay longer Social Metrics evolved: Yesterday: Top Line -Maximize Likes and Flowers Build Organic Reach Today: Depth -Cultivate Engagement -involvement & sharing -amplification -ROI/ROE of paid campaigns 10 ESSENTIAL SOCIAL METRICS TO TRACK -Brand awareness -Reach -Share of Voice -Audience Growth Rate -Average Engagement Rates -Virality Rate -Amplification Rate -Click Through Rate (CTR) -Conversion Rate -Bounce Rate Social MEDIA TRUTHS - listen & learn before you leap "brands must listen & monitor constantly & consistently someone must "own it" Tops: BUILDING SUCCESSFUL SOCIAL MEDIA ENGAGEMENT - start with overall brand goals & strategy -think mobile first -define clear roles & content strategy by platform -create ecosystem map -fluid & responsive content calendar -encourage & empower internal organization to participate LISTEN: IDENITIFY & LISTEN CONSUMER CONVERSATIONS Execute smartly -define your voice and stick with it -be authentic/sincere & transparent -be a helper & motivator -cultivate conversation on your customer's turf - not yours intent participants to create & share great content integrate live-streaming -leverage the power of video & visuals -automate whenever possible -strategic use of # hashtags on platforms -track competitors regularly -take risks & be ready to react -when appropriate respond quickly and honestly - never censor -measure success and adjust -have a crisis management plane in pace -paise and breathe before hitting post

Relative costs in selling online, in retail settings, and combined mode

Walmart online and in-store pricing: The higher online prices are part of Walmart's efforts to nudge more customers into as well as raise its e-commerce margins by offsetting the cost to ship orders to homes. Often the online prices match Amazons. It simply costs less to sell some items in store. Customers can access those store prices online when they. choose to pick up the. item in store TikTok: items can be bought from the app Gaming: imbedded in our way of life. big part of marketing. the Segway to the meta verse. Ex: j-Cole played basketball/rapper. NBA sponsored the African League. J-Cole was apart of an African basketball league. Think about it you can do it need more dreamers Dove: be yourself Amazon: because amazon's cost are about the same whether it is shipping a $10 book or a $1,000 skirt, gross profit dollars per unit will be much higher on a fashion item -Prime day -client create a brand on/sell items to amazon's customers -Amazon basics: look at what's selling/that's cool/rip it off and sell it for less VALUE EXCHANGE Convenience to the customer: Willingness to pay. Sensitivity to delayed delivery. Hybrid formats - ordering online for pickup in store Amazon Prime Now - delivery within 1 or 2 hours (extra $) NOW! Amazon two-hour grocery delivery Amazon Pantry L'Oreal: Makeup Genius app allow the user to scan face, which identifies around 60 characteristics. Individual recommendations are made. Valuable data on consumers is obtained on 20 million users. Allows the customer to imagine herself with various styles and products. Collaboration with Google to identify specific search terms Extent of customization needed: Highly customized items -- e.g., insurance plane tickets, personalization -- customers do much of the work (i.e., data entry

Digital disruption factors

What the internet killed -The 9-to-5 Workday -Civility -The CD -The video store -the telephone book -letter writing -concentration -vacations -facts -fake news -film -reference books -privacy Digital Marketing (O2O Online 2 Offline): "All online marketing activities, including all digital assets, channels, and media, including social media and mobile marketing." -include technology & platforms used in off-line interactions & commerce -People don't go on-line. They LIVE on-line" In 2021 avg. US HH has 25 connected divers +14 yoy "Commercial Internet" = 34 years old High penetration among all age groups. 29% of our time is spent online. The internet changed everything. Mobile changed the internet. Real-time data transformed marketing. Marketing digital transformed mass media losing audiences and views. Ability to access and provide info is going to expand rapidly. MOBILE HAS ENABLED PERSONAL "CONVERSATIONS" AT SCALE AT ANY TIME." Real-time data transformed marketing "The internet is finally making good on the promise of digital -- which was always a two-way dialogue and emotional connection with customers. Mobile has enabled personal "conversations" at scale at any time." All Maketing... B2C, B2B, C2C...is driven by digital

Omni-Channel behaviors & creating customer experience

X- Experience is creating memorable moments for your customers through every encounter they have with your brand all day, every day CX = Customer experience is the sum of all engagements a customer has with you during the customer lifecycle UX + CX + BX - Experience Use a mobile first mindset filter. 75% of purchase interactions are digital One experience served up by different channels which produce one sole experience -before I create content..What will my mobile customer think, feel, say & do. Integrate yourself into the customers ideas. Marketers must "guide" people through the consumer lifestyle E6 Framework for digital market -excite -educate -experience -engage -EMPATHY -EMPOWER

collaborative filtering

a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases

Organizational buyers

manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale

Criteria for selecting target markets

market size, expected growth, competitive position, cost of reaching the segment, organizational compatibility Target: Selecting segments(s) and specializing -"You can't be all things to all people" --> choose one or more groups -Focus narrows scope of competition, but demands are greater Some Criteria in evaluating segment attractiveness -Identifiability (and distinctiveness from other segments -reachability -substantiality (segment size) -note that a large segment may attract heavy competition however. -Profitability -Responsiveness Segment attractiveness: substantial, identifiable, reachable, responsive, profitable Approaches to targeting -undifferentiated: offering sold as a commodity by everyone to call customers -differentiated: Firm makes different offerings to each of several different segments (e.g. auto manufactures make different cars and trucks aimed at different customer groups) -concentrated: firm focuses on serving one segment (or offering one benefit) - e.g, Tesla (electric cars) -Micro-makerting (one-to-oneL unique offerings to each customer

Scope of marketing

people marketing place marketing event marketing idea marketing Ex: Big (lighter company) -> 1. Modernizing: changing product 2. Repurpose: new generation 3. Selling: using celebrities.. Snoop dog, known for smoking, Martha Stewart, cook show, cook book, also know for smoking), 4. Advertising: if celebrities using this product so should I The idea is the celebrity -they are the icing on the cake even though they do not add much -shareholders -based on favorability/rank with certain demographic -is it worth x amount of money with celeb or better without it Marketing: Marketing affects various stake holder -Individuals & Organizations: Marketing can be performed by individuals and organizations -Value Creation: Marketing creates value through product, price, place, and promotion decisions -Stakeholders (customer): Marketing is about satisfying customer needs and wants -Exchange: marketing entails an exchange Activity- Institutions Process = Marketing Marketing = Creation, Communication, Delivery, Exchange ->> Offerings Offerings = Value = Customers, clients, partners and society

Reason to engage segmentation

segmentation: "aggregating prospective buyers into groups that (1) have common needs and (2) will respond similar to a marketing action." "the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups." Although not all these consumers are completely alike, they share relatively similar needs and wants

SWOT

strengths, weaknesses, opportunities, threats

Value co-creation

the realization that a consumer is necessary and must play a part in order to produce value Marketing creates value through product price, place, and promotion decisions The 4P's (Conversational Experiences Consumer Target): Promotion, Price, Product, and Place The 5P's:(Conversational Experiences Consumer Target): Promotion, Price, Product, Place, PEOPLE

Information search

the stage of the buyer decision process in which the consumer is motivated to search for more information Benefits vs cost -how much is at stake? -how much alternatives (brand) differ? Locus of control: how confident is the consumer that her or his efforts will bring about a better decision? Perceived risk -performance -financial -social -physiological -psychological

Marketing as an exchange

the trade of things of value between the buyer and the seller so that each is better off as a result Marketing entails an exchange Mutually beneficial relationship (On-going relationships customer lifetime value) -Goods/Services producers (sellers), Communications & delivery, Customers/consumers (buyers), Money and information

Framing

the way an issue is posed; how an issue is framed can significantly affect decisions and judgments. Equivalent outcomes can be stated different ways -$35 per month vs. "about a dollar a day" -Airfare of "$350 each way" even though return ticket purchase is required for that price -"regular garbage" vs. "landfill destination" -Beef that is "80% lean" vs. "20% fat" Don't hide behind the fine print customer alienation ex: $10.00 item with $2.00 shipping Individuals would rather buy $12.00 item with free shipping

Value exchange

what a particular good is worth in exchange for some other good To what they put into it more value than what you give up -mutual benefit -not just money that gets exchanged -pick your passion and go for it Each side receives something more valuable than what it gave up -> "win-win" deal and customer value Part of the value may be assurance of continued quality over time (value of the brand The principle, money does not have to be exchanged For goods and services, this is usually the most convenient way of trade. For ideas, there may be no monetary exchange as such. E.g., Voting for a candidate, Engaging in recycling, Helping the Homeless Value is the ratio of the benefits received (usually goods or services) to what is given up (usually $$) Value = Benefits Received/ Sacrifices Made For a transaction to take place, the benefits received must usually be greater than the sacrifice for both parties - usually -The customer values the goods and services received more than the money spent -Organization: Revenue & profits. Measurements specific to entity A low-priced product may not represent value to a customer if the benefits received are perceived to be low. -E.g., bargain garbage bag that does not last Different customer segments will have different value perceptions and desires -E.g., "tough truck" vs "sporty car A product which is adapted to the needs of a particular segment can be very valuable to that segment even if the overall "quality" is not seen as superior by most other consumers -E.g., some people like a "clumsy" Hummer Cost may be in terms of money or other sacrifice (e.g., travel time, delay) 20% of your customers do 80% of your business