MMC Marketing

simple definition
the management process responsible for identifying, anticipating, and satisfying customer requirements profitably
goals of marketing
1. keep and grow current customers by delivering satisfaction
2. attract new customers by promising superior value
marketing is the activity, set of instructions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
old view of marketing
telling and selling
new view of marketing
satisfying customer needs
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 crease customer delight
-capture value from customers to create profits and customer quality
needs
-state of deprivation including physical, social, and individual needs
-physical needs: food, clothing, shelter, safety
-social needs: belonging, affection
-individual needs: learning, knowledge, self-expression
wants
-form that a human need takes, as shaped by culture and individual personality
customer value and satisfaction
-dependent on the product’s perceived performance relative to a buyer’s expectations
-care must be taken when setting expectations
-customer satisfaction often leads to consumer loyalty
-some firms seek to delight customers by exceeding expectations
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
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
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
the marketing concept
a marketing management philosophy that holds that achieving organizational goals depending on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors
customers perceived value
“customers evaluation of the difference between all of the benefits and all of the costs of a marketing offer relative to those of competing offers”
-perceptions may be subjective
-consumers often do not objectively judge values and costs
the marketing mix
-the set of controllable, tactical marketing tools that the firm blends the 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
customer-driven marketing strategy
-requires careful customer analysis
-the be successful, firms must engage in:
-marketing segmentation
-marketing targeting
-differentiation
-positioning
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 segments attractiveness and selecting one or more segments to enter
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
market segmentation
key segmenting variables:
-geographic
-demographic
-psychographic
-behavioral
why segment
-meet consumers needs more precisely
-increase profits
-segment leadership
-retain customers
-focus marketing communications
evaluating market segments
-segment size and growth
–analyze current segment sales, growth rates, and expected profitability
-segment structural attractiveness
–consider competition, the 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
market targeting
-evaluating market segments
–segment size, attractiveness, and company objectives
-selected target market segments
–alternatives range from undifferentiated marketing to micromarketing
-being socially responsible
a products 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
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