Mkt 2014 Topic 1_v1.pdf

8/12/2019 Mkt 2014 Topic 1_v1.pdf

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BUSI 1004 Marketing

Baniel Cheung

Jan 2014

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My Details

• Baniel Cheung張

• Office

1320, KKL Building

• Email Contact

[email protected]

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Marketing: Managing

Profitable Customer

Relationships

Topic1

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Have a quick look at thebelow items and brands….

• Uniqlo, Bandai, Coca-Cola, OceanPark, Vitasoy, etc…

• Product, Price, Place, Promotion,Segmentation, Positioning, etc….

• Outdoor Ad, Radio, Internet, FreeNewspaper, Escalator Ad, etc…

• Anything you can think of??

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Environmental

Analysis

DistributionPlanning

Consumer Analysis

PricePlanning

Segmentation

PromotionPlanning

ProductPlanning

TotalMarketing

Efforts

MarketingResearch

Components of Marketing

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Which of the aboveelement(s) you consider

being the most importantwhen developing

Marketing Strategies ?

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Objectives

• Be able to define marketingand discuss its core concepts.

• Be able to define marketingmanagement and compare the

five marketing managementorientations.

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Objectives

• Understand customerrelationship management and

strategies.• Realize the major challenges

facing marketers in the new“connected” millennium.

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• Strong sales, noprofits

• Customer-driven toits core

• Each customer’sexperience is unique

• Provides greatselection, goodvalue, discovery

and convenience

• A true onlinecommunity

Amazon.com

Discussion: When comparing eBay and

Amazon, which one do you think is more

successful? What are your reasons behind?

Case Study

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• Highly competitive

R&D and quality

• Customer focus• Strong brand image

and reputation

• Provides variety of

product category

• Very innovatedcompany

SONY

Discussion: What problems Sony is facing

nowadays? When comparing between Apple and

Sony, which one is a better “ Marketing” company?

Case Study

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What is Marketing?

• Marketing is managing profitablecustomer relationships

Attracting new customers

Retaining and growing current

customers

• “Marketing” is NOT synonymouswith “sales” or “advertising”

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What is Marketing?

• Kotler’s social definition:“ Marketing is a social andmanagerial process by whichindividuals and groups obtainwhat they need and want

through creating andexchanging products andvalue with others.”

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Name one local or

international

brand/company which you

find having excellentmarketing efforts and

explain why

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• Goods

• Services

• Experiences

• Events

• Persons

• Places

• Properties

• Organizations

• Information

• Ideas

Many Things Can Be Marketed!

What is Marketing?

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Marketing beyond Tangibles

• Refers to more than just a tangibleproduct Ideas (Academic)

People (Celebrity, Politician) Services (Hotel, Airline)

Non-profit organisations (Red Cross, HKUSPACE)

Events (Olympics, World Cup)

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Non-Profit & Social Marketing

Non-Profit

organizations

use marketingprinciples!

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Core Marketing Concepts

ProductsandService

Needs, wants,and demands

Exchange, transactions,and relationships

Markets CoreMarketingConcepts

Value andsatisfaction

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Needs, Wants and Demands

• Needs - eating, drinking, safety,belonging, love (family & friends),harmony/acceptance (society)

• Wants - leisure and excitement (onsen,travelling), good food (ramen, sushi),status and power (money, position)

• Demands - require having theresource to acquire

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How do Companiesunderstanding Needs

• Sony sends manager to retail outlet totalk to channels and customers

• Disney sends employee to host traveltour to understand market more

• Wharf T&T’s marketing team goes toroadbooth and roadshow to talk tocustomers directly

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Marketing Offers

• Products and services Apartment, digital camera, Internet

banking, education, restaurant

• Selling experience/solution(customer perspective) vs. sellingproduct (company perspective) Bandai, Starbucks, Adidas, Wii,

Osaka Instant Noodle museum

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Exchange, Transactions,Relationships and Markets

• Exchange and transaction• Customer relationship

• Markets - business, consumer,home user, etc…

• 4Ps + Macro/Micro factors

• The above topics will be discussedlater throughout the course!

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Marketing Management

• Marketing management is “theart and science of choosing targetmarkets and building profitable

relationships with them.”

Creating, delivering and

communicating superiorcustomer value is key.

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• Customer Management: Marketers select customers that

can be served well and profitably.

• Demand Management:

Marketers must deal with different

demand states ranging from nodemand to too much demand.

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•Production

Concept

• Product Concept

•Selling Concept

• Marketing

Concept

• Societal Marketing Concept

Management Orientations


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Evolution of MarketingPhilosophies

KeyMarketing

Concepts

2. Product

Concept

3. SellingConcept

4. MarketingConcept

5. SocietalMarketing Concept

1. ProductionConcept

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Marketing ManagementOrientation

• Production Concept China shoe and cloth industries

before 1978 100 Yen and $10 dollar shops

• Product Concept

Wireless Router

Laser Printer

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• Selling Concept (inside out) I-Cable, Broadway

Dissatisfaction customers may notbuy again

• Marketing Concept (outside in)

Customer and experience focus Internet Banking, CX, Samsung, I-

Pad, I-Phone, PS Vita

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FactoryExisting

Products

Selling/

Promoting

Profits via

Volume

Market Customer

Needs

Integrated

Marketing

Profits via

Satisfaction

The Selling Concept

The Marketing Concept

Starting

PointFocus Means Ends

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• Social Marketing Concept Environmental protection and concern

Pollution and toxic material Nutrition and heath consciousness

“Return” to community

McDonald, Starbucks, Park’n Shop

HK vs. Chinese vs. Japanese companies

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CRM• CRM – Customer relationship

management . . .

Is not our traditional Asian/Chinese type

of Guanxi relationship management!! “Is the overall process of building and

maintaining profitable customer

relationships by delivering superiorcustomer value and satisfaction.”

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CRM

• It costs 5 to 10 times MORE toattract a new customer than it doesto keep a current customer satisfied.

• Marketers must be concerned withthe lifetime value (LTV) of thecustomer.

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23Total number of customers11Total number ofcustomers

$3,500Total cost$3,500Total cost

$2,000Retain 20 current customers($100 each)

$ 500Retain 5 currentcustomers($100 each)

$1,500Gain 3 new customers($500 each)

$3,000Gain 6 new customers($500 each)

Retention Emphasis Acquisition Emphasis

Maximizing Number of CustomersSource: Adapted from Peppers and Rogers (1996)

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Changes from the Traditional MarketingThinking to the New Marketing Thinking

Customer

differentiationProduct differentiation

Wallet shareMarket share

Retention focus Acquisition focus

Two-ways

communication

and collaboration

One-way

communication

Long-term emphasisShort-term emphasis

Continuing

transactionsDiscrete transactions

New Marketing

Thinking

Old Marketing

Thinking

Documents

Mkt 2014 Topic 1_v1.pdf