Marketing 17.09.24 Flashcards
What is 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 meeting needs profitably.
4 steps to meet needs of customer
Identifying customer’s needs
–> Understanding a company’s (potential) customer (to do: market research)
Anticipating customer’s needs
–> Analysing the data and drawing conclusions / adjustments
Satisfying customer’s needs
–> Offering a product / services that meets the customer’s needs and expectations
Archiving profitability
–> Adding value to a product, creating
“willingness to buy” (leads to profit)
THE 5-STEP MARKETING PROCESS
- Understand the marketplace and your customers (target group and its preferences, customers interests)
- Development of a marketing strategy that is focused on customer needs
and wants
–> here: “customer centricity “. In this step, a value proposition is defined/implemented. - “High value”: This is what customers get for their money.
- Four different value types: 1) Functional value
II) Monetary value
III) Social value
IV) Psychological value - The overall goal is to develop, establish and maintain strong relationships with the customers.
Long term relationships > one-and- done sales
–> Why? Loyal customers make continued purchases, recommend the products/services and are relevant multipliers
- Capture value from customers
–> The final step of the marketing process is that companies earn the rewards of
creating superior customer values à companies capture value from costumers in return in the form of sales, profits, and long-term customer equity
Value proposition
Value proposition = “whole cluster of benefits that the company promises to deliver” and it can be a differentiator to competitors that boosts motivation to buy something from the seller
–> answers WHY a customer should choose a company’s products/services and HOW a customer is benefitting from these
–> It is a statement on the problem a product/service solves, the advantages it provides and the reason why it is better than competitor’s offerings
Example: The smartest way to get around (Uber)
Omni-channel marketing
Seamless cross-channel shopping experience that involves all available shopping channels; in-store, online and mobile in an integrated way (messaging is consistent)
Multichannel marketing
Two or more channels are used to reach target audiences, often include a mix of traditional and digital media; channels are often used independently (message/objectives on the channels are not the same)
4 Ps or Marketing mix
The Marketing-Mix provides a framework (or “tool box”) that companies can use to successfully market a product or service to consumers.
It is often described as the 4 Ps of Marketing (McCarthy, 1960):
* Product
* Price
* Place
* Promotion
PRODUCT – the good or service that is provided by a company; its packaging and labelling.
PRICE – the amount that must be paid for a product or service. PLACE – the location where a product / service is purchased.
PROMOTION – the different approaches a company uses to promote its product / service to a potential buyer.
FROM 4PS TO 7PS:
THE EXTENDED MARKETING MIX
For a long time, the marketing mix was limited to its 4 Ps and mainly focused on products. As more components were needed to describe services in a better way, the extended marketing mix expands the original toolkit by adding three other pillars.
- Physical services (tangible components of service with strategical relevance (e.g. companies headquarter, smell, touch and other senses, service evidence)
- Processes (the processes involved in delivering a product or service to customers (e.g. delivery partners, logistic processes, payment systems / processes, self-service, online / app / mobile services))
- People (importance of in-person customer service (e. g. staff, training))
INFLUENCING FORCES & TRENDS IN MARKETING
Technology, globalization, social responsibility, non-profit approaches
The marketing environment is comprised of both the external and internal factors…
Some of these factors—internal factors— are
within the control of the organization. Other factors—external factors—are outside the control of the
organization.
The 5Ms of marketing
A marketing/management model that
defines the elements of a marketing strategy that must be addressed in order to be successful. The five
elements include minds, minutes, machinery, materials, and money.
- Minds (Staffing): This “M” might well be considered the most important factor because it’s people who
make sure the rest of the 5Ms are utilized in a productive manner to achieve the goals of the
organization. - Minutes (Time): Time is another valuable asset. We’ve all heard the saying that time is money, and this is true within the marketing arena. For example, in formulating and implementing a new strategy, marketing needs to assess factors such as whether existing production processes are as efficient and effective as they can be, the length of time it takes the organization to introduce a new product to the market, and how responsive the organization is to competitive pressures
- Machinery (Equipment): Machinery consists of the equipment and/or physical assets used to process
materials into finished or semifinished products. - Materials (Production): Materials consist of the inputs needed to produce goods and services.
- Money (Finance): Perhaps second only to staffing, money is a very critical resource because it’s used to
acquire and/or hire other resources.
EXTERNAL: Microenvironment
There are two elements within the external marketing environment: the microenvironment and the
macroenvironment. Although the factors within these environments are not directly within the marketer’s
control, they still influence the decisions made by marketers. We’ll first examine the factors in the
microenvironment
Suppliers. Suppliers (sometimes also called vendors) are those partners from whom we receive the parts
and products necessary for our business. Let’s assume that your company produces microwave ovens. Some of your suppliers may be providers of transformers, the turntable, control panels, magnetrons, etc.
As long as you have options in terms of the component suppliers, the bargaining power of each supplier is relatively weak. However, if two suppliers merge and decide to raise the price of the component the new entity supplies, that vendor now wields increased power.
- Market Intermediaries. Often, products are distributed by third-party sellers such as retailers,
wholesalers, and others in the distribution channel. The reputation of these market intermediaries plays
an important role in the marketing of the product or service, both positive and negative, so companies
need to select and monitor market intermediaries on an ongoing basis. - Customers. Understanding who your customers are will enable you to effectively reach them, whether
online, locally in retail stores, or internationally. - Competitors. Successful marketing strategies must be implemented after consideration of your
competition. Knowing who your competition is and what they are and are not offering allows you to find
the gap in the market. You want to be where the competition is not, at least in the sense of offering
something unique to a targeted market. - General Public. Because companies provide their offerings in communities that support them, they have
an obligation to satisfy those communities.
EXTERNAL: Macroenvironment - PESTLE analysis
PESTLE is an acronym
for political, economic, social, technological, legal, and environmental factors that provide marketers with a
comprehensive view of the whole environment from multiple angles.
These macroenvironment factors can
be used to understand current external influences so that marketers can more easily identify what might
change in the future, mitigate the identified risks, and take advantage of competitive opportunities
Marketing management
Marketing management includes (1) analysis, (II) planning, (III) implementation, (IV) organization and (V) control / evaluation –> relevant tool for analysis: SWOT
This process needs a strategy = a plan of action designed to achieve a long-term or overall aim.
Marketing strategy is derived from the corporate strategy and the business strategy.
Vision statement
–> What is the desired future state?
–> Future-oriented statement (longer term) about the organization
–> Solid understanding of what the organization is trying to create
–> Serves as a guide or a mantra for employees and teams
–> What does the company want to become in the future / next couple of years?
–> Inspirational and aspirational
Mission statement
–> What is our mission?
–> What do we do? Whom do we serve? What do we want to accomplish?
–> An action-based statement that gives orientation and guidance à Should be market-oriented
–> Clear, precise, not too broad, not too narrow
–> Review of the mission statement at regular intervals (3-5 years) – strongly recommended in order to adapt it regularly to new circumstances
