Marketing to Create Value Enterprise and its Business

Marketing to Create Value Enterprise and its Business Environment © Goodfellow

Today’s Aims At the end of the lecture you should • Be able to define marketing • Understand that marketing is a way of thinking and acting • Understand the importance of segmentation • Be able to describe and explain the basic marketing mix • Know what an outline marketing plan looks like Enterprise and its Business Environment © Goodfellow

What is Marketing? The management process responsible for identifying, anticipating and satisfying customer requirements profitably. Profit Enterprise and its Business Environment © Goodfellow Customers

But now…. ? Marketing is an organisational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders. • Relationship- not transactional • Not just about profit • Multiple stakeholders • All Types of organisations Enterprise and its Business Environment © Goodfellow Customers

Product Orientation vs. Market Orientation adapted from Kotler et al Company Product Market Scotrail We run trains We are a peopleand-goods mover BP We sell petrol We supply energy Apple We make computers We entertain people Enterprise and its Business Environment © Goodfellow

What do YOU value? • Choose something you have purchased personally and at work and draw up a list of the benefits you get from it. • What were the costs? • What should a competitor have done to get the business Enterprise and its Business Environment © Goodfellow

Marketing relevance? Enterprise and its Business Environment © Goodfellow

Segmentation, Targeting & Positioning If not thinking segments …not thinking. Levitt, 1960 Segmentation recognises that not all customers are the same but some customers share characteristics and have similar needs and wants. Targeting is choosing a segment(s) who share similar needs & wants, that you can serve most ably Positioning requires that the marketing mix is tailored to suit the chosen target Enterprise and its Business Environment © Goodfellow • 8

Approaches to segmentation Mass? Niche? • Market A • Product A • Market B Differentiated? • Market C Customised? Enterprise and its Business Environment © Goodfellow

Approaches to segmentation • Market A • Product A • Market B • Product B • Market C • Product C Enterprise and its Business Environment © Goodfellow

Approaches to segmentation • Mass? • Market B • Niche? • Product A • Differentiated? • Customised? Enterprise and its Business Environment © Goodfellow • Market A • Market C

Segmentation criteria • Demographic • Geographic • Psychographiclifestyle • Behavioural What type of products are segmented using each of these methods ? Value and benefits; users Enterprise and its Business Environment © Goodfellow

Target…. Enterprise and its Business Environment © Goodfellow

Positioning Expensive X Marks and Spencer X Mango X Zara X Miss Selfridge For younger customers Shop X boohoo. com X Primark X Top Potential gap? Inexpensive Enterprise and its Business Environment © Goodfellow For older customers

The marketing mix Enterprise and its Business Environment © Goodfellow

Product The offering to the market to satisfy a want or need. • WHAT IS YOUR PRODUCT/SERVICE? • WHAT WANTS/NEEEDS DOES YOUR IDEA SATISFY? Enterprise and its Business Environment © Goodfellow

Marketing Mix and the Customertaken from Kotler Four P’s Four C’s • Product • Customer solution • Price • Customer cost • Place • Convenience • Promotion • Communication • 1 -17 Enterprise and its Business Environment © Goodfellow

Three Product Levels • Augmented product • Installation • Warranty • Actual Product • Quality • After sale • Core benefit • Delivery • Credit • Brand name • Packaging • Features • Design Enterprise and its Business Environment © Goodfellow

Price is……… The only revenue generator! • A value placed on what is exchanged • Symbolic • Synonyms for price - Rent, Tuition, Fee, Fare, Rate, Toll, Premium, Bribe, Dues, Salary, Commission, Wage, Tax • Consumer’s perspective – functional, quality, operational, financial, personal • Seller’s perspective • costs, revenue, profit. • MAJORITY OF SMALL BUSINESSES PRICE THEIR PRODUCTS/SERVICES TOO LOW- WHY IS THIS? Enterprise and its Business Environment © Goodfellow

Promotion is about communicating with your target audiences. About a dialogue, not just advertising messages. • 17 -20 Enterprise and its Business Environment © Goodfellow

Influences on communication mix choice. Adapted from Phillips and Clews, 2013 • stage in product lifecycle • type of product • objectives or service • choice of communications mix • target market • type of buying decision • resources avaiable Enterprise and its Business Environment © Goodfellow

The Move to Digital Source: The Marketer Enterprise and its Business Environment © Goodfellow

Promotional Mix • advertising • events and experiences • sales promotion • target audience • direct marketing and personal selling • public relations, sponsorship • social media and digital Enterprise and its Business Environment © Goodfellow

Pricing focuses on High Price- no customers Low Priceno profit Enterprise and its Business Environment © Goodfellow

Place ( Distribution) • Intensive • Wide coverage • Selective • Selected outlets. Shopping goodsdurables • Exclusive • Selected outlets • exclusive rights • Luxury specialist goods Impulse goods- fmcg • overlooked part of the mix. Why should someone want to distribute your product? Enterprise and its Business Environment © Goodfellow

Channel length Short chain Manufacturer End Customer Manufacturer Retailer End Customer Manufacturer Wholesaler Retailer End Customer Manufacturer Agent Wholesaler Retailer Long Chain Enterprise and its Business Environment © Goodfellow End Customer

Outline marketing Plan Situation/ Context analysis Marketing Objectives: Target Markets: The marketing mix Budget Internal strengths and weaknesses, external opportunities and threats, including market trends, competitors. Quantified and timescales made clear Clear description of target markets using relevant segmentation criteria Product Price Promotion Place How much to be spent, allocated to each part of the mix Linked to the objectives Measurement Responsibility for each activity. Enterprise and its Business Timescales and People Environment © Goodfellow internal or using external specialists

Mixing it up The Marketing Plan • An integrated approach • A working document • Systematic approach Fail to plan, pan to fail Enterprise and its Business Environment © Goodfellow

Setting the Marketing Budget Method Based on pros/cons Objectives and task Spend what’s required to achieve our marketing goals Regards promotion as an investment not a cost/The link between spend and outcome is not clear cut. Matching Competitors Assumes that the amount spent =customer impact and value. Difficult to estimate how much competitors spend. Your objectives may require different budget. Percentage of sales Marketing is seen as a cost Suggests that more success more we should spend. The reverse may be sensible Affordability We can only spend what we Is this the right amount? have Enterprise and its Business Environment © Goodfellow

Today we have looked at • What marketing is- a thought and action • S-T-P • The marketing mix • Pulling it all together in a plan Enterprise and its Business Environment © Goodfellow

References The marketer(2013) Digital Set to Surpass TV in Time Spent with US Media - See more at: http: //www. emarketer. com/Article/Digital-Set-Surpass-TVTime-Spent-with-USMedia/1010096#sthash. TMan. Xk. EF. dpuf Kotler and Keller (2011) Marketing Management Global edition, Pearson Phillips and Clews (2013). Marketing Communications in Gbadamosi, Bathgate and Nwankwo, Eds. (2013). Principles of Marketing: A Value-Based Approach. Palgrave Mc. Millan. Enterprise and its Business Environment © Goodfellow