9 - MARKETING AND ADVERTISING Flashcards
- Process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
- Process of engaging customers and managing profitable customer relationships
- Both a social and managerial process
Marketing
Two-fold goal of marketing:
- Attract new customers
- Keep and grow current customers
Should not focus on “telling and selling” but ?
“satisfying customer needs”
Marketing Process
- Understand the marketplace and customer needs and wants
- Design a customer value-driven marketing strategy
- Prepare an integrated marketing plan and program
- Build and manage profitable customer relationships
- Capture value from customers
Includes the five core customer and marketplace concepts
Understand the marketplace and customer needs and wants
Five core customer and marketplace concepts
- Needs, wants, and demands
- Market offerings (products, services, and expenses)
- Value and satisfaction
- Exchanges and relationships
- Markets
Answers 2 questions:
1. What customers will we serve (what’s our target market)?
* Market segmentation
* Target marketing
2. How can we serve these customers best (what’s our value proposition)?
* Value proposition – set of benefits or values it promises to deliver to consumers to satisfy their needs
Design a customer value-driven marketing strategy
set of benefits or values it promises to deliver to consumers to satisfy their needs
Value proposition
- Transforms the organization’s marketing strategy into action
- Marketing mix
Prepare an integrated marketing plan and program
marketing tools used to implement the marketing strategy (also called 4Ps)
Marketing mix
what are the 4Ps?
Product
Price
Place
Promotion
- Destination point of the first 3 steps of the marketing process
- Most important step
- Customer relationship management
- Deals with the aspects of acquiring, engaging, and growing customers
Build and manage profitable customer relationships
Deals with the aspects of acquiring, engaging, and growing customers
Customer relationship management
- Focuses on outcomes of building customer relationship such as sales, market share, and profits
Capture value from customers
Possible outcomes of capturing value from customers
- Customer loyalty and retention
* Customer lifetime value – the value of the entire stream of purchases a customer makes over a lifetime of patronage - Share of market and customer
- Customer equity
* Total combined lifetime values of a company’s current and potential customers
- Key building blocks for developing and managing customer relationships
- Influenced by customer expectation
- If you meet their expectations = high satisfaction
- Expectations may also be set by marketers
Value and satisfaction
- Exchange – the act of obtaining a desired object from someone by offering something in return
- May be:
1. Buying the product
2. Acquiring the service
3. Signing up for membership
4. Donating to an organization, etc.
Exchanges and relationships
- Set of actual and potential buyers of a product or service
- Buyers have a common need or want that is satisfied through exchange relationships
- Marketing – making sure that the organization has a profitable relationship with the “market”
Markets
- Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
- Used to engage, inform, and persuade the public to achieve its objective
Advertising
Possible Advertising Objectives
- Informative Advertising
- Persuasive Advertising
- Reminder Advertising
- Communicating customer value
- Building a brand and company image
- Telling the market about a new product
- Explaining how a product work
- Suggesting new uses for a product
- Informing the market of a price change
- Describing available services and support
- Correcting false impressions
Informative Advertising
- Building brand preference
- Encouraging switching to a brand
- Changing customer perceptions of product value
- Persuading customers to purchase now
- Creating customer engagement
- Building brand community
Persuasive Advertising
- Maintaining customer relationships
- Reminding consumers that the product may be needed in the near future
- Reminding consumers where to buy the product
- Keeping the brand in a customer’s mind during off-seasons
Reminder Advertising
Differences between Marketing and Advertising
Marketing
* Systematic planning, implementation, and control of a mix of activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products or services
* Step-by-step process that begins with a unique selling proposition—a short compelling sentence that describes your business
* All marketing elements must work independently but they also must work together toward the bigger goal of one unified marketing campaign with a common message
Advertising
* Only one component of the overall marketing process
* Includes the placement of an ad in such mediums as newspapers, magazines, direct mail, billboards, TV, radio, and online
* Most expensive part of all marketing plans
Consists of creating different groups of customers based on geographic boundaries.
Geographic Segmentation
Consists of dividing the market through different varlables such as age, gender, income, etc.
Demographic Segmentation
Consists of grouping the target audience based on their behavior, lifestyle, attitudes and interests.
Psychographic Segmentation
Focuses on specific reactions and the way customers go through their purchasing processes.
Behavioral Segmentation
