Marketing

- Managing profitable customer relationships.

- Social and managerial process by which individuals and groups obtain what they need and want
through creating and exchanging products and value.

Marketing Process

- Understand the marketplace and customer needs and wants -> design a customer driven
marketing strategy -> construct a marketing program that delivers superior value -> build
customer relationships and create customer delight -> capture value from customers to create
profits and customer equity.

Core Marketing Concepts

Markets -> needs, wants, and demands -> marketing offers -> value and satisfaction -> exchange
transactions and relationships.

Needs – state of felt deprivation

Want – form that a human need takes, as shaped by culture and individual personality. (needs + culture)

Demand – want + buying power = demand

Marketing Offer – some combination of products, services, information or experiences offered to a

market to satisfy need or want.

Marketing Myopia – occurs when sellers pay more attention to the specific products they offer than the
benefits and experiences produced by the products. (focus more on the wants, lose sight of the needs)

Exchange – act of obtaining something, by offering something in return.

Relationship – consists of actions taken to build and maintain desirable exchange relationships with
target audiences.

Value Proposition – set of benefits or values a company promises to deliver to consumers to satisfy their
needs.

Market

- Set of actual and potential buyers for a product/ service.

- These people share a need or want that can be satisfied through exchange relationships.

Marketing Management - Art and science of choosing target markets and building profitable
relationships.

Marketing Plan – transforms the marketing strategy into action. (includes 4Ps)

Production Concept – consumers will favor products that are available and highly affordable; companies
focus on improving production and distribution efficiency.

Product Concept – consumers favor products that offer the best quality, performance, and innovative
features; companies focus on making continuous product improvements.
Selling Concept - Consumers will not buy enough unless there is a promotion. Creating sales rather than
building relationships.

Marketing Concept – companies must focus on knowing the needs and wants of target markets, and
delivering desired satisfaction better than competitors.

Societal Marketing / Social Marketing – company should consider society’s long-run interests, and
considering consumers’ wants and its own objectives.

Customer Relationship Management - Overall process of building and maintaining profitable customer
relationships by delivering value and satisfaction.

Value – ratio of benefits to the sacrifice necessary to obtain those benefits.

Satisfaction – extent to which a product’s actual performance matches expectations.

Selling Concept:

1. Financial – loyalty programs and discount.

2. Social – club marketing programs and creating a community.
3. Structural Ties – supply customer with special equipment, provide wats for customer to use the
services.

Buyer’s Journey

- Active research process someone goes through leading up to a purchase.

- Powerful tool you can use to personalize your prospects’ experience with your business.
- Used to segment and nurture your leads.
- Salespeople can use the buyer’s journey to better understand how to sell you’re your prospects
and guide them through the buyer’s journey.
- Is not just about the content you produce, but the experience you provide.

Every Potential Buyer is focused on:

1. Identifying their problem

2. Understanding what options alleviate their problem.
3. Comparing their top choices when they’re ready to make a purchase.

Awareness Stage

- When your prospect is experiencing and expressing symptoms of a problem or opportunity.

Consideration Stage

- When your prospect has clearly defined and given a name to their problem or opportunity.
- Engagement is the key.

Decision Stage

- When your prospect has decided on their solution, strategy, method, or approach.
 ➢ By meeting your prospects where they are, you can reduce the friction leading up to making a
purchase.
➢ To keep your businesses spinning smoothly, you want to reduce friction as much as possible.
➢ Your marketing, sales, and service teams need to be aligned on the different stages of your
buyer’s journey.
➢ Knowing the buyer’s journey for your personas will be key to creating the best marketing, sales,
and service experiences possible.

Develop Buyer’s Journey:

1. Understand your buyer persona.

2. Develop each buyer’s journey stage around your businesses’ specific needs and persona’s intent.
➢ By understanding their unique process of becoming aware of their problem, considering
solutions, and deciding on the right solution, you’ll be able to create an effective inbound
strategy.

Buyer’s Persona

- A semi-fictional representation of your ideal buyer based on data, interviews, and some
educated guesses.
1. Aggregate information about a particular kind of person in your target market
2. Find an avatar to represent that kind of person.
3. Give them a name.
➢ Your personas should have just as much value for your sales and services teams as they do for
your marketers.
➢ Your customers will enjoy a seamless end-to-end experience, and your internal teams will enjoy
the benefits of being well aligned with each other.

Who should create buyer’s persona?

- The creation of your buyer personas should include input from as many different perspectives
within your company as possible.
- The more viewpoints you can include in the persona creation process, the better the final
personas will be.

How to create?

- Define the information that should be included.

- Identify the best sources for that information.
- If you have a concrete understanding of the problem of your company is meant to solve, that will
form the foundation of your buyer persona.
- Identify any commonalities.

Sources for buyer persona information: historical data, customer reviews, educated guesses.

Ways your Persona can be Used by all of your Teams

- Your personas should inform everything your customer-facing teams do.

 - Make sure there are ways for marketing, sales, and service to all give feedback so your personas
can be improved over time.
- Personas don’t replace the need to find out information about individual people.
- The work of creating personas is never done.

Market Segmentation

- Dividing a market into distinct groups with distinct needs, or behaviors who might require
separate products or marketing mixes.

Target Segmenting

- Process of evaluating each market segment’s attractiveness and selecting one or more segments
to enter.

Market Positioning

- Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing
products in the minds of target consumers.

Steps in Market Segmentation, Targeting, and Positioning

1. Identify bases for segmenting the market.

2. Develop segment profile.
3. Develop measure of segment attractiveness.
4. Select target segments.
5. Develop positioning for target segments.
6. Develop a marketing mix for each segment.

I. Geographic Segmentation
- Categorizing customers based on location, country region, climatic conditions.
II. Demographic Segmentation
- Divide market based on age, gender, income, occupation, ethnicity, family size.
III. Psychographic Segmentation
- According to their way of life, personalities, opinions, life style, personality, social class, and
interests.
IV. Behavioral Segmentation
- Depending on their behavioral patterns and their attitude towards a product or service.
- Occasion, benefits sought, loyalty status, usage rate

Effective Segmentation

1. Measurable
 2. Accessible
3. Substantial
4. Differentiable
5. Actionable

PORTER’s Five Forces

1. Supplier Power
- Assessment of how easy for suppliers to drive up prices.
- Switching from one supplier to another.

2. Buyer Power
- Assessment of how easy it is for buyers to drive prices down.
- If a business has just a few powerful buyers, they are often able to dictate terms.

3. Competitive Rivalry
- Main driver is the number and capability of competitors in the market.
- Many competitors, offering undifferentiated products and services, will reduce market
attractiveness.

4. Threat of Substitution
- Where close substitution products exist in a market, increases the chance of customers switching
alternatives in response to price increases.

5. Threat of New Entry

- Profitable markets attracts new entrants, which erodes profitability.

External Factor Evaluation (EFE Matrix)

- Strategic tool used to evaluate firm existing strategies, EFE matrix can be defined as the strategic
tool to evaluate external environment/ macroenvironment.

Internal Factor Evaluation (IFE Matrix)

- Strategy tool used to evaluate a firm’s internal environment, and reveal its strengths and
weaknesses.
Direct Competitor
- A person or company providing same type of service you provide.
Indirect Competitor
- Any business that provides potential customer with an outcome similar to what you provide.
- Different types of products, satisfy same needs.

Competitive Profile Matrix (CPM)

- Tool that compares the firm and its rivals, and reveals their relative strengths and weaknesses.
Critical Success Factors (CSF)
- Key areas, which performed at the highest possible level of excellence if organizations want to
succeed in the same industry.