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What is Marketing?

Andrew

A summary from:

Principle of Marketing 14th ed

PublishingAgate Studio

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What is Marketing?

It is not about telling and selling anymore

Marketing is:

managing profitable customer relationship

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Marketing Process

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UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS, WANTS, AND DEMANDS

Step I

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Understanding:

• Needs, wants and demands– Needs?

– Wants?

– Demands?

• Market offerings– Market offerings?

– Marketing myopia

• Customer-perceived Value & Satisfaction

• Exchanges and Relationships

• Markets

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DESIGN A CUSTOMER DRIVEN MARKETING STRATEGY

Step II

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Marketing Strategy

• What customer will we serve?

– Segmenting & Targeting

• How can we serve these customer best?

– Differentiate & Positioning

“Some people think of marketing management as finding as many customers as possible and increasing demand. But marketing managers know that they cannot serve all customers in every way. By trying to serve all customers, they may not serve any customers well”. Kotler, Phillip.

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INTEGRATED MARKETING PLAN & PROGRAM

Step III

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Marketing Mix

• Product– What is the need-satisfying market offering?

• Price– How much to charge for the offering?

• Place– How it will make the offering available to target

customers?

• Promotion– How to communicate the offering and persuade the

customers of its merits?

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BUILDING PROFITABLE CUSTOMER RELATIONSHIP

Step IV

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Customer Value and Satisfaction

Ritz – Carlton

Without ever asking, they seem to know that you’re allergic to peanuts and want a king-size bed, a non-allergenic pillow, the blinds open when you arrive, and breakfast with decaffeinated coffee in your room.

Each day, hotel staffers—from those at the front desk to those in maintenance and housekeeping—discreetly observe and record even the smallest guest preferences.

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Profitable Customer Relationship

Progressive InsuranceIt asks prospective customers a series of screening questions to determine if they are right for the firm. If they’re not, Progressive will likely tell them, “You might want to go to Allstate.” A marketing consultant explains: “They’d rather send business to a competitor than take on unprofitable customers.”

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CAPTURE VALUE FROM CUSTOMER TO CREATE PROFIT & CUST. EQUITY

Part V

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Capturing Value

• Creating Customer Loyalty and Retention

– Customer Lifetime Value?

• Growing Share of Customer

– Share of Customer?

• Building Customer Equity

– Customer Equity?

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Pulling it All Together