MARKETING STRATEGY THE PURPOSE OF MARKETING textbook definition

MARKETING STRATEGY

THE PURPOSE OF MARKETING textbook definition: What is Marketing? q. CREATE q. CAPTURE q. SUSTAIN VALUE Øin order to make $$$ (profits)

AMERICAN MARKETING ASSOCIATION DEFINITION of MARKETING Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have VALUE for customers, clients, partners, and society at large. “Marketing is no longer a function—it is an educational process. ” (Pres. of AMA) http: //www. marketingpower. com/Pages/default. aspx

DEFINITION OF MARKETING from “How to Become a Marketing Superstar” • Identify---pre-sale • Attract---pre sale • Get---pre-sale • Keep---post sale CUSTOMERS!!!!

PRE-SALE IDENTIFICATION Market Research ATTRACTION Advertising Online media Packaging Clean stores Public relations GETTING Personal selling Distribution Pricing Product Service from salespeople

POST SALES KEEPING Delivery Billing Bill Collection Customer Service Warranty Feedback from customers

EVERYBODY IN THE COMPANYSHOULD BE THINKING ABOUT MARKETING Greeters Truck loaders Phone answerers Designers Engineers Presidents Quality control Inventory Accounting Collections

HOW DOES A COMPANY DEFINE ITSELF? • NOT BY THE PRODUCT(S) or SERVICES it SELLS, but by the CUSTOMER BENEFITS PROVIDED

WHAT NEEDS ARE SATISFIED? Product/Features Market/Benefits satisfies hunger, thirst, convenience needs

Feature These boots have rubber outsole with traction ribbing. Sealed seams renders them waterproof. Benefit Your feet won’t get wet if you were these boots. You won’t trip easily

• Feature This accounting software has an online reporting feature. • Benefit Managers have instant, real-time, mission-critical information at a click of a button. • Feature This car has 6 side-impact bags. • Benefit You and your family will be protected from side impact accidents. http: //biznik. com/articles/sales-101 -features-vs-benefits

SALES VS. MARKETING • MARKETING MAKES THE PHONE RING • SALES ANSWERS IT

DIFFERENCES BETWEEN SALES & MARKETING PEOPLE • Marketing “Culture” analytical data-oriented critical inside the company • Sales “Culture” customer-oriented relationship builders make the sale today

SEGMENTATION TARGETING MARKETING

MARKETING STRATEGY TWO MAJOR ACTIVITIES: Selecting a TARGET MARKET Specifying the plan to achieve POSITIONING DEFINITION OF POSITIONING: UNIQUE SELLING PROPOSITION

5 C’S OF MARKETING: ANALYSIS • CUSTOMER • COMPANY • COMPETITION • COLLABORATORS • CONTEXT

TARGET MARKET Move from to large mass markets specification of smaller segments “Market of one” → MASS CUSTOMIZATION • EXAMPLES: • BURGER KING • RAYBAN • Burger King Have it Your Way • Ray-Ban Website • Starbucks

SEGMENTATION • HOW TO DIFFERENTIATE • (DESCRIBE POTENTIAL CUSTOMERS—over 25, college education, west coast) • DEMOGRAPHIC -- age, income gender, occupation • GEOGRAPHIC -- nation, region of country, urban vs. rural • LIFESTYLE – value-oriented, hedonistic

ISSUES FOR SELECTING TARGET MARKET The target market sets the “rules of the game” q. Strengths and weaknesses compared to competition q. Corporate goals q. Resources q. Collaborators q. Financial Returns

POSITIONING The positioning statement specifies the position the firm wants to occupy in the target customers’ eyes. http: //www. youtube. com/watch? v=n. Xa 02 t. B 8 DLo http: //adland. tv/commercials/coke-cocacola-happiness-machine-2010 -200 -usa

STP SEGMENTATION – identifying meaningfully different groups of customers TARGET – selecting which segments to serve POSITIONING - implementing chosen image and appeal to chosen segment DISCUSS: What does it mean that “You can’t be all things to all people. ” How might that relate to profit?

EXAMPLES OF HOW TO SEGMENT Most relevant variables to separate consumers to help decide whom to target and how to target them. Example : Coca Cola must distinguish preferences of soft drink consumers Taste vs. low calories Cola vs. non-cola taste Price sensitivity—brand Heavy vs. light consumers

CAMPBELL’S SOUP What demographic variables would they need to consider? Region – Western U. S. consumer prefer spicier soups Age --Little girls

GUN SALES Flat sales? (no growth) What can they do? Create a new segment! What did they do? Lady Remington