What is Marketing?

Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing

customer relationships in ways that benefit the organization and its

stakeholders.

Core Concepts• Needs, wants, and

demands• Target markets,

positioning, segmentation

• Offerings and brands• Value and satisfaction

• Marketing channels• Competition• Marketing

environment• Marketing planning

The Marketing Concept

• The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition.

• The marketing concept relies on marketing research to define market segments, their size and their needs.

Marketing Mix

• "Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market.

The Four P’s of the Marketing Mix

• Product • Price• Place• Promotion

The Marketing MixPackagingID the brandConvey informationFacilitate logisticsAid consumptions

The Four C’s of the Marketing Mix

• Customer• Cost • Convenience • Communication

The New Four Ps

Processes

People

Programs

Performance

What is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

Holistic Marketing

• The marketing concept holds that the key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets.

- Kotler

The Marketing Mix & The Pasta Sauce

• Ingredients working in unison to produce the desired result.

What is Holistic Marketing?Holistic marketing sees itself as integrating the

value exploration, value creation, and value delivery activities with the purpose of building

long-term, mutually satisfying relationships and co-prosperity among key stakeholders.

Holistic Marketing

Table 2.1 Master Marketers

The Value Proposition

• A well-defined and persuasive marketing statement related to a specific product or service that details the reasons why a consumer would benefit from purchasing it. A business will typically use a customer value proposition as part of its marketing strategy to consumers, rather than using it internally among staff, suppliers or distributors.

The Value Proposition

• The formal expression of the value of a product/service is: V = B – C. – The Value is equal to the Benefits of the

product/service minus the cost associated with purchase.

Market Segmentation

• A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action.

• Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.

Market Segmentation

• Generally three criteria can be used to identify different market segments:– Homogeneity (common needs within segment)– Distinction (unique from other groups)– Reaction (similar response to market)

Market Segmentation

• Geographic Segmentation is based on regional variables such as religion, climate, population density and population growth rate.

• Demographic Segmentation is based on variables such as age, gender, ethnicity, education, occupation, income and family status.

Market Segmentation

• Psychographic Segmentation is based on variables such as values, attitudes and lifestyles.

• Behavioral Segmentation is based on variables such as usage rate, patterns, price sensitivity, brand loyalty and benefits sought.

Market Research

• Market research is the process of gathering and analyzing consumer and economic data to help you understand which products and services your customers want, and how to differentiate your business from your competitors.

Market Research

• Market research can also provide valuable insight to help you to:– Reduce business risks – Spot current and upcoming problems in the

current market – Identify sales opportunities – Develop plans of action

Differentiation Strategy

• A differentiation strategy seeks to achieve competitive advantage by offering unique product and service propositions to the market or by presenting a picture which leads customers to perceive that the company is different from its competitors.

E-Marketing

• E-Marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms eMarketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous.

E-Marketing

• eMarketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers.

E-MarketingWhy is it Important?

• When implemented correctly, the return on investment (ROI) from eMarketing can far exceed that of traditional marketing strategies.

E-MarketingWhy is it Important?

• Whether you're a "bricks and mortar" business or a concern operating purely online, the Internet is a force that cannot be ignored. It can be a means to reach literally millions of people every year.

• It's at the forefront of a redefinition of way businesses interact with their customers.

E-MarketingFollow the Money Internet Spending

Overdrive Interactive

E-MarketingFollow the Money

Overdrive Interactive

E-MarketingFollow the Money

Google Top U.S. Spenders

Source: Mashable

The Power of GoogleAdWords

• 2011 Revenues = $37.9B– 96% of Revenues Came From Advertising

• http://www.wordstream.com/articles/google-earnings

Google – National Economic Driver

• In 2011, Google’s search and advertising tools brought in $80 billion for 1.8 million advertisers, website publishers, and nonprofits in the U.S.

“Start Spreading the News”

http://socialtimes.com/google-contributed-80-billion-to-u-s-economy-in-2011_b100096

E-Mail MarketingLearning Objectives

• Understand how e-mail developed into an important eMarketing tool

• Understand the different types of e-mail and how they are used

• Understand what the nine steps to an e-mail campaign are

• Learn how to prepare for an e-mail campaign • Learn best practices for executing an e-mail

campaign • Learn what steps to take after the completion of the

campaign

Introduction

• E-mail marketing - Tool for customer relationship management– It is a form of direct marketing that utilizes

electronic means to deliver commercial messages to an audience

• Advantages of e-mail marketing:– Extremely cost effective due to a low cost per

contact– Highly targeted– Customizable on a mass scale– Completely measurable

How it Works

• E-mails can be categorized into:– Transactional e-mails– Newsletters– Commercial e-mails

• Two types of commercial e-mails:– Promotional e-mails – Retention-based e-mail

Nine Steps to Executing an E-mail Campaign

• Strategic planning• Definition of list• Creative execution• Integration of

campaign with other channels

• Personalization of the message

Deployment Interaction handling Generation of

reports Analysis of results

Nine Steps to Executing an E-mail Campaign

• Precampaign– Step 1: Strategic planning

• Planning around the goals you want to achieve – Step 2: Definition of list

• List of subscribers who have agreed to allow a company to send them e-mails with marketing messages

Nine Steps to Executing an E-mail Campaign

– Step 3: Creative execution• E-mails can be created and viewed as HTML or as

text e-mails– Step 4: Integration of campaign with other

channels• Integrating e-mail marketing can serve to

reinforce a brand’s message and increase responses

Parts of an E-mail

• Header • Subject line• Personalized greeting• Body • Footer• Unsubscribe link

Execution

• Step 5: Personalization of the message – Allows for mass customization on a macro

scale• Step 6: Deployment

– An e-mail marketer ensures an excellent delivery rate by:• Creating valuable content• Establishing the correct frequency• Testing an e-mail for display and deliverability

Execution

• Step 7: Interaction handling– Every interaction via e-mail should be

considered as part of a company’s e-mail marketing practice and treated as opportunities to engage with customers

Post Campaign

• Step 8: Generate reports– E-mail tracking systems produce statistics in

a user-friendly manner • Step 9: Analysis of results

– Once the reports have been generated, analyze what the numbers are revealing and use this information to improve the next e-mail sent out