Lecture 2 Defining Marketing and Marketing process 2
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The document discusses the marketing process and various marketing concepts. It describes a 5-phase marketing process: 1) understand customer needs, 2) design a customer-driven strategy, 3) construct an integrated marketing program, 4) build profitable customer relationships, and 5) capture value from customers. It also explains key concepts like the marketing mix, customer relationship marketing, partner relationship marketing, different orientations like production, product, selling, and societal marketing concepts. For societal marketing, an example would be a company that considers social and environmental impacts of its products in addition to profits and customer satisfaction. For frenemies, an example is when competitors cooperate on standardization or research
Lecture 2 Defining Marketing and Marketing process 2
- 1. Defining Marketing and the Marketing Process -2 October, 2020
- 2. The Marketing Process (simple 5-phased model) ted A) B) C) D) E) Understandthe Marketplace & Customer needs andwants Designa Customer- driven Marketing Strategy Construct an Integrated Marketing program that delivers superior value Buildprofitable relationships and createcustomer satisfaction Capturevaluefrom customers in formof sales,profit and long-term relationship Understand customers, create value & build relationship Reap rewards of created superior value
- 3. Marketing process (Second phase) Designa Customer- Driven Marketing strategy B) Selecting customers to serve! Choosing a Value Proposition! MARKETING MANAGEMENT is the art and science of choosing target marketsand building profitablerelationships with them! Find– Attract – Keep– Growcustomers!
- 4. Marketing process (Second phase) 1) Selecting customers to serve! Market Segmentation Targeting Companies select only customers that they can serve well & profitably!
- 5. Marketing process (Second phase) 1) Selecting customers to serve! Swarovski stores profitably target rich customers! AB Jewerly stores profitably target customers with modest means!
- 6. Marketing process (Second phase) 2) Choosing a Value Proposition! A COMPANY’S VALUEPROPOSITION is the set of benefits, values that companies promise to deliver to customers to satisfy their needs! - Differentiation-
- 7. Marketing process (Second phase) Five Marketing Management Orientations (Concepts) PRODUCTIONconcept Marketing myopia
- 8. Marketing process (Second phase) PRODUCT concept Marketing myopia Five Marketing Management Orientations (Concepts)
- 9. Marketing process (Second phase) SELLINGconcept Five Marketing Management Orientations (Concepts) Marketing myopia
- 10. Marketing process (Second phase) MARKETING concept CONSUMER’S NEEDS & WANTS ARE IMPORTANT! Five Marketing Management Orientations (Concepts)
- 11. Marketing process (Second phase) SELLINGconcept MARKETING concept Startingpoint Focus Means Ends factory existing products selling and promotion profit from sales volume market customer needs integrated marketing profit from customer satisfaction Startingpoint Focus Means Ends inside-out outside-in Five Marketing Management Orientations (Concepts)
- 12. Marketing process (Second phase) MARKETING concept In many cases, customers don’t know what they want! Five Marketing Management Orientations (Concepts) 3M Manager: “Our goal is to lead customers where they want to go, before they know where they want to go”
- 13. Marketing process (Second phase) SOCIETALMARKETING concept Five Marketing Management Orientations (Concepts) CONSUMERS AND SOCIETY’S WELFARE ARE IMPORTANT!
- 14. Marketing process (Second phase) SOCIETALMARKETING concept SOCIETY (Human welfare) CONSUMERS (Want satisfaction) COMPANY (profits) Five Marketing Management Orientations (Concepts)
- 15. The Marketing Process (simple 5-phased model) ted A) B) C) D) E) Understandthe Marketplace & Customer needs andwants Designa Customer- driven Marketing Strategy Construct an Integrated Marketing program that delivers superior value Buildprofitable relationships and createcustomer satisfaction Capturevaluefrom customers in formof sales,profit and long-term relationship Understand customers, create value & build relationship Reap rewards of created superior value
- 16. Marketing process (Third phase) Construct an Integrated Marketing program that delivers superior value C) Мarketing Mix Product Price Place Promotion
- 17. The Marketing Process (simple 5-phased model) ted A) B) C) D) E) Understandthe Marketplace & Customer needs andwants Designa Customer- driven Marketing Strategy Construct an Integrated Marketing program that delivers superior value Buildprofitable relationships and createcustomer satisfaction Capturevaluefrom customers in formof sales,profit and long-term relationship Understand customers, create value & build relationship Reap rewards of created superior value
- 18. Marketing process (Fourth phase) Buildprofitable relationships and createcustomer satisfaction D) CRM – Customer Relationship Marketing Past Now Overall Process of Building and Maintaining Profitable Customer relationships by Delivering Superior Customer Value and Satisfaction ACQUIRE KEEP GROW
- 19. Marketing process (Fourth phase) Buildprofitable relationships and createcustomer satisfaction D ) PRM– Partner Relationship Marketing Partners inside the company Partners outside the company Marketing Department Sales Department Customer Support Finance, production….. All employees! Supply chainparticipants Strategicpartners Competitors
- 20. Marketing process (Fourth phase) Buildprofitable relationships and createcustomer satisfaction D) PRM– Partner Relationship Marketing “Frenemies” / “Coopetition”
- 21. Exercise: Link the letters with adequate numbers! A Marketing myopia 7 An orientation when in focus is aggressive promotion B A company's value proposition 15 Act of obtaining a desired object from someone by offering something in return C Marketing offerings 3 Goods, services, ideas, people, events, places that can be sell on the market D Demands 6 Dividing a market into groups to serve them better E Wants 13 Art and science of choosing target markets and building profitable relations with them F Segmentation 12 a) Partner relationship marketing or b) Partnership relation management G Selling concept 11 a) Customer relationship marketing or b) Consumers related management I Marketing mix 10 Competitors that cooperate for some mutual interest J Societal marketing concept 14 Set of actual and potential buyers of a product/ service K Frenemies 1 Companies focus more on their products than to customer needs L CRM stands for: 9 An orientation when besides consumer needs, long-run welfare is important M PRM stands for: 8 Product, price, promotion, place N Marketing management 2 Set of benefits, values that is promised to be delivered to the customers O Market 5 Feeling that you miss something and want to buy it to feel comfortable P Exchange 4 Wants backed by buying power (money)
- 22. Exercise Solution: A Marketing myopia 1 Companies focus more on their products than to customer needs B A company's value proposition 2 Set of benefits, values that is promised to be delivered to the customers C Marketing offerings 3 Goods, services, ideas, people, events, places that can be sell on the market D Demands 4 Wants backed by buying power (money) E Wants 5 Feeling that you miss something and want to buy it to feel comfortable F Segmentation 6 Dividing a market into groups to serve them better G Selling concept 7 An orientation when in focus is aggressive promotion I Marketing mix 8 Product, price, promotion, place J Societal marketing concept 9 An orientation when besides consumer needs, long-run welfare is important K Frenemies 10 Competitors that cooperate for some mutual interest L CRM stands for: 11 a) Customer relationship marketing M PRM stands for: 12 a) Partner relationship marketing N Marketing management 13 Art and science of choosing target markets and building profitable relations with them O Market 14 Set of actual and potential buyers of a product/ service P Exchange 15 Act of obtaining a desired object from someone by offering something in return
- 23. Homework Explain an example of societal marketing! Give an example for frenemies!