Introduction to Marketing Miss Mary Lynn Mundell

Introduction to Marketing
Introduction to Marketing
Miss Mary Lynn Mundell
Introduction to Marketing
What Is Marketing?
Simple definition:
Marketing is the management process responsible for
identifying, anticipating, and satisfying customer
requirements profitably.” (CIM,2001)
Goals:
1. Attract new customers by promising superior value.
2. Keep and grow current customers by delivering
satisfaction.
Introduction to Marketing
Marketing Defined
• Marketing is the activity, set of instructions, and
processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and
society at large.
OLD view of
marketing:
NEW view of
marketing:
Making a sale—
“telling and selling”
Satisfying
customer needs
Introduction to Marketing
Why is Marketing Important?
Shifting Business Paradigms
Buyers’ markets
Sellers’ markets
Introduction to Marketing
The Marketing Process
A simple model of the marketing process:
• Understand the marketplace and customer
needs and wants.
• Design a customer-driven marketing strategy.
• Construct an integrated marketing program that
delivers superior value.
• Build profitable relationships and create
customer delight.
• Capture value from customers to create profits
and customer quality.
Introduction to Marketing
Needs, Wants, and Demands
Need: State of felt deprivation including physical, social,
and individual needs.
• Physical needs: Food, clothing, shelter, safety
• Social needs: Belonging, affection
• Individual needs: Learning, knowledge, self-expression
Want: Form that a human need takes, as shaped
by culture and individual personality.
• Wants + Buying Power = Demand
Introduction to Marketing
Need/ Want Fulfillment
Needs & wants are fulfilled through a Marketing
Offering:
• Products:
Persons, places, organizations, information, ideas.
• Services:
Activity or benefit offered for sale that is essentially
intangible and does not result in ownership.
• Experiences:
Consumers live the offering.
Introduction to Marketing
Customer Value and Satisfaction
Dependent on the product’s perceived
performance relative to a buyer’s expectations.
Care must be taken when setting expectations:
• If performance is lower than expectations, satisfaction is
low.
• If performance is higher than expectations, satisfaction
is high.
Customer satisfaction often leads to consumer loyalty.
Some firms seek to DELIGHT customers by exceeding
expectations.
Introduction to Marketing
Marketing Management
The art and science of choosing target markets
and building profitable relationships with them.
• Requires that consumers and the marketplace
be fully understood.
• Aim is to find, attract, keep, and grow customers
by creating, delivering, and communicating
superior value.
Introduction to Marketing
Marketing Management
Marketing managers must consider the following,
to ensure a successful marketing strategy:
1. What customers will we serve?
— What is our target market?
2. How can we best serve these
customers?
— What is our value proposition?
Introduction to Marketing
Choosing a Value Proposition
The set of benefits or values a company promises
to deliver to consumers to satisfy their needs.
• Value propositions dictate how firms will
differentiate and position their brands in the
marketplace.
Introduction to Marketing
The Marketing Concept
The marketing concept:
• A marketing management philosophy that holds
that achieving organizational goals depends on
knowing the needs and wants of target markets
and delivering the desired satisfaction better
than competitors.
Introduction to Marketing
Customer Perceived Value
Customer perceived value:
“Customer’s evaluation of the difference
between all of the benefits and all of the costs
of a marketing offer relative to those of
competing offers.” (Armstrong & Kotler)
– Perceptions may be subjective
– Consumers often do not objectively judge
values and costs.
Customer value = perceived benefits – perceived sacrifice.
Introduction to Marketing
The Marketing Mix
The set of controllable, tactical marketing tools that the firm
blends to produce the response it wants in the target
market.
• Product: Variety, features, brand name, quality, design,
packaging, and services.
• Price: List price, discounts, allowances, payment period,
and credit terms.
• Place: Distribution channels, coverage, logistics,
locations, transportation, assortments, and inventory.
• Promotion: Advertising, sales promotion, public relations,
and personal selling.
Introduction to Marketing
Introduction to Marketing
Introduction to Marketing
Marketing Strategy
Introduction to Marketing
Customer-Driven Marketing Strategy
Requires careful customer analysis.
To be successful, firms must engage in:
• Market segmentation
• Market targeting
• Differentiation
• Positioning
Introduction to Marketing
Market Segmentation and Targeting
Segmentation:
• The process of dividing a market into distinct
groups of buyers with different needs,
characteristics, or behavior who might require
separate products of marketing programs.
Targeting:
• Involves evaluating each market segment’s
attractiveness and selecting one or more
segments to enter.
Introduction to Marketing
Differentiation and Positioning
Differentiation:
• Creating superior customer value by actually
differentiating the market offering.
Positioning:
• Arranging for a product to occupy a clear,
distinctive, and desirable place relative to
competing products in the minds of target
consumers.
Introduction to Marketing
Market Segmentation
Key segmenting variables:
• Geographic
• Demographic
• Psychographic
• Behavioral
Different segments desire different benefits from products.
Best to use multivariable segmentation bases in order to
identify smaller, better-defined target groups.
Introduction to Marketing
Market Segmentation
Why Segment?:
• Meet consumer needs more precisely
• Increase profits
• Segment leadership
• Retain customers
• Focus marketing
communications
Introduction to Marketing
Evaluating Market Segments
Segment size and growth:
• Analyze current segment sales, growth rates, and
expected profitability.
Segment structural attractiveness:
• Consider competition, existence of substitute products,
and the power of buyers and suppliers.
Company objectives and resources:
• Examine company skills and resources needed to
succeed in that segment.
• Offer superior value and gain advantages over
competitors.
Introduction to Marketing
Market Targeting
Market targeting involves:
• Evaluating marketing segments.
Segment size, segment structural attractiveness, and
company objectives
and resources are considered.
• Selecting target market segments.
Alternatives range from undifferentiated marketing to
micromarketing.
• Being socially responsible.
Introduction to Marketing
Differentiation and Positioning
A product’s position is:
• The way the product is defined by consumers on
important attributes—the place the product
occupies in consumers’ minds relative to
competing products.
• Perceptual positioning maps can help define a
brand’s position relative to competitors.
Introduction to Marketing
Differentiation and Positioning
Identifying possible value differences and
competitive advantages:
• Key to winning target customers is to understand
their needs better than competitors do and to
deliver more value.
Competitive advantage:
• Extent to which a company can position itself as
providing superior value.
Achieved via differentiation.
Introduction to Marketing
Thank you.