Marketing class
Trends in the natural environment
- Growing shortages of raw materials - Increased pollution - Increased government intervention - Developing strategies that support environmental sustainability
Consumer-Generated Marketing
Brand exchanges created by consumers themselves—both invited and uninvited—by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers. For example, at its My Starbucks Idea site, Starbucks collects ideas from customers on new products, store changes, and just about anything else that might make their Starbucks experience better.
marketing process step 4
Build profitable relationships and create customer delight
marketing process step 5
Capture value from customers to create profits and customer equity
customer value and satisfaction:
Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly satisfied = buy again; tell others Marketers must be careful to set the right level of expectations. too low = fail to attract others too high = buyers will be disappointed if not met correctly *key building blocks for developing and managing customer relationships.
Marketing are becoming more
Diverse both internationally and nationally - includes ethnicity , gay and lesbian , and disabled etc.
Increased emphasis on
Ethics ; socially responsible behavior ; cause related marketing
Competitors
Firms must gain strategic advantage by positioning their offerings against competitors' offerings in the minds of the consumers
Geographic shifts in population
Growth in U.S. West and South and decline in Midwest and Northeast Change in where people work -Telecommuting -Home office
Demography
Is the study of human populations - size density location age gender race occupation
Technological environment
Most dramatic force in changing the marketplace New products, opportunities Concern for the safety of new products
Developing economies also offer
Outstanding marketing opportunities
core beliefs and values are persistent and passed on from
Parents to children and are reinforced by schools, churches, businesses, and government
Uncontrollable reaction
React and adapt to forces In the environment
Selling Concept vs Marketing Concept
S.C. - inside-out perspective - factory w existing products, profits thru sales volume M.C. - outside-in perspective- well defined market, profits thru customer satisfaction
Proactive responding
Take aggressive actions to affect forces in the environment
Value Chain
The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.
Responding to the marketing environment :
Uncontrollable, proactive, reactive
Marketing Process Step 1
Understand the marketplace and customer needs and wants
changes in consumer spending:
Value marketing
Reactive response
Watch and react to forces in the environment
market segment
a group of consumers who respond in a similar way to a given set of marketing efforts
Growth-share matrix
a portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and relative market share
Marketing-
a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Publics
any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives: Financial publics Media publics Government publics Local publics General publics Internal publics
Market offerings
are some combination of products, services, information, or experiences offered to a market to satisfy a need or want. include other entities, such as persons, places, organizations, information, and ideas.
Smart marketers orchestrate several services and products, thereby creating
brand experiences for consumers.
The first three steps in the marketing process—understanding the marketplace and customer needs, designing a customer value-driven marketing strategy, and constructing a marketing program—all lead up to the fourth and most important step:
building and managing profitable customer relationships. customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, engaging, and growing customers.
Legislation regulating business is intended to protect
companies from each other, consumers from unfair business practices, the interests of society against unrestrained business behavior
Integrated marketing program
comprehensive plan that communicates and delivers the intended value to chosen customers
Micro environment
consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Macro environment
consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.
Production concept
consumers will favor products that are available and highly affordable Cheaper price, more available Focus on continuous product improvements & distribution efficiency
Marketing is all about
creating value for customers. So, as the first step in the marketing process, the company must fully understand consumers and the marketplace in which it operates.
The marketing manager's aim is to find, attract, keep, and grow target customers by
creating, delivering, and communicating superior customer value.
Relationship building blocks
customer perceived value and customer satisfaction
Buyers also carry out marketing, thus, in addition to customer relationship management, today's marketers must also deal effectively with
customer-managed relationships.
Marketing management wants to __________________ that will build ______________________.
design strategies that will build profitable relationships with target consumers
Marketing occurs when people decide to satisfy their needs and wants through
exchange relationships. In the broadest sense, the marketer tries to bring about a response to some market offering.
marketing intermediaries
firms that help the company to promote, sell, and distribute its goods to final buyers
Customer insight
fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships -important but difficult to obtain Bc needs and buying motives aren't obvious -customers usually can't tell you what & why -better info and more effective use of existing info
As they are redefining their customer relationships, marketers are also taking a fresh look at the ways in which they relate with the broader world around them. Today, almost every company, large or small, is touched in some way by
global competition
full partnerships
high margin customers In markets with few customers and high margins, sellers want to create full partnerships with key customers.
Generation marketing
important in segmenting people by lifestyle of life state instead of age
demographic trends
include changing age and family structures, geographic population shifts, educational characteristics, and population diversity
environmental sustainability
involves developing strategies and practices that create a world economy that the planet can support indefinitely
Demographic Environment
involves people, and people make up markets
Digital and social media marketing
involves using digital marketing tools such as web sites, social media, mobile ads and apps, online videos, e-mail, and blogs that engage consumers anywhere, at any time, via their digital devices. Mobile marketing is perhaps the fastest-growing digital marketing platform.
Partner relationship management
involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Marketing myopia
is focusing only on existing wants and losing sight of underlying consumer needs. Many sellers suffer from marketing myopia, the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products.
Exchange Marketing actions try to create, maintain, and grow desirable
is the act of obtaining a desired object from someone by offering something in return. exchange relationships.
Marketing management
is the art and science of choosing target markets and building profitable relationships with them. What customers will we serve? How can we best serve these customers?
Share of customer
is the portion of the customer's purchasing that a company gets in its product categories
A brand's value proposition
is the set of benefits or values it promises to deliver to customers to satisfy their needs.
Customer equity
is the total combined customer lifetime values of all of the company's customers.
Customer lifetime value
is the value of the entire stream of purchases that the customer would make over a lifetime of patronage.
Product/market expansion grid
looks at new products, existing products, new markets, and existing markets for company growth opportunities
Basic relationships
low margin customers a company with many low-margin customers may seek to develop basic relationships with them
value delivery network
made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system
Customer-engagement marketing
making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community
Secondary beliefs and values
more open to change and include people's views of themselves, others, organizations, society, nature, and the universe
value marketing
offering financially cautious buyers greater value - the right combination of quality and service at a fair price
Market segmentation
refers to dividing the markets into segments of customers.
Target marketing
refers to which segments to go after.
Examples of marketing intermediaries
resellers, physical distribution firms, marketing services agencies, financial intermediaries
frequency marketing programs
reward customers who buy frequently or in large amounts
needs- wants- demands-
states of deprivation form that needs take wants backed by buying power
not-for-profit organizations
such as colleges, hospitals, museums, zoos, symphony orchestras, foundations, and even churches. The nation's not-for-profits face stiff competition for support and membership.
Marketers are reexamining their relationships with social values and responsibilities and with the very Earth that sustains us. As the worldwide consumerism and environmentalism movements mature, today's marketers are being called on to develop
sustainable marketing practices
Marketing Environment
the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers
Microenvironment
the actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Customer-preceived value
the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
customer satisfaction
the extent to which a product's perceived performance matches a buyer's expectations
societal marketing concept
the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests Value that benefits all parties, it's about convenience marketing strategy should deliver value to customers in a way that maintains or improves both the consumer's and society's well-being. It calls for sustainable marketing, socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.
Customer relationship management
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
The natural environment
the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities
share of customer
the portion of the customer's purchasing that a company gets in its product categories
There are five alternative concepts under which organizations design and carry out their marketing strategies:
the production, product, selling, marketing, and societal marketing concepts.
Marketing Mix
the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market
Vine gives you "the best way to see and share life in motion" through "short, beautiful, looping videos in a simple and fun way for your friends and family to see." This is an example of :
value proposition The company must decide how it will serve targeted customers—how it will differentiate and position itself in the marketplace.
Downsizing
when a company must prune, harvest, or divest businesses that are unprofitable or that no longer fit the strategy
Now that the company fully understands its consumers and the marketplace, it must decide
which customers it will serve and how it will bring them value.
The customer-driven marketing strategy outlines which customers the company will serve, _______________________, and how it will serve them,___________________________.
(the target market) (the value proposition)
Marketing means managing markets to bring about profitable customer relationships. core marketing activities include:
Activities such as consumer research, product development, communication, distribution, pricing, and service
Selling concept
Consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort Financial products like life insurance Focus is on active selling, people are throwing this info at you Bc you will need it at some point & their trying to sell it
Macro environment
Consists of the broader forces that affect the actors in the microenvironment
marketing process step 3
Construct an integrated marketing program that delivers superior value
Customers
Consumer markets-individual Business markets Resellers markets Government markets International markets
The economic environment consists of factors that affect
Consumer purchasing powers and spending patterns
marketing process step 2
Design a customer value-driven marketing strategy
Market Segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
The cultural environment consists of
Institutions and other forces that affect a society's basic values, perceptions, and behaviors
Marketing concept
Know the needs and wants of the target markets and deliver the desired satisfactions better than competitors. the marketing concept is a customer-centered sense-and-respond philosophy. The job is not to find the right customers for your product but to find the right products for your customers Ex: fashion , food
To design a winning marketing strategy, the marketing manager must answer two important questions:
What customers will we serve (what's our target market)? How can we serve these customers best (what's our value proposition)?
Suppliers
Provide the resources to provide goods and services Treat as partners to provide customer value
Industrial economies are
Richer markets
The company
Top management Finance R&D Purchasing Operations Accounting
Subsistence economies consume most of
Their own agriculture and industrial output
shifts in secondary cultural values of peoples views
Themselves Others Organizations Society Nature Universe
