Marketing Management
Week 1
What is Marketing?
Chapter 1
What does Marketing mean to you?
Turn to a partner; Discuss for 10-minutes;
One-person, report out; and
Discuss perceptions.
Marketing is knowing what is value for your customers, Peter Drucker.
Marketing and Exchange
Marketing is an exchange between a firm and customer
The customer seeks benefits from the company, and expects to pay.
Customer
The company offers benefits to its customers, and seeks profits.
Company
What are some types of benefits that customers seek and are willing to pay for? Under what conditions should businesses offer them?
Evolution of the Marketing Concept
Product/Production Centered - Early
Build a better mousetrap and they will come! Make it better, cheaper, etc.
Selling Orientation
Sell it and forget it! Aggressively push product using sales and advertising
Out of necessity Lets make a Deal
Customer Focus - Modern
Building long-term (loyalty) relationships with the customer Peter Drucker: Goal of Marketing is to make selling irrelevant!
Whats wrong with relying solely on the first two? Businesses can make selling irrelevant by building customer loyalty!
What are some of the ways that businesses do this?
Product Concept
Marketing Orientation:
Permeates the entire organization: not just another business function, but a way of doing business. Sales may own the customer, but everyone in the business has a customer(s). Customers are a valuable asset! Costs more to obtain a new customer than to retain an existing one!
Marketing IS the Business!
Marketing Management: Framework
The 5Cs;
STP; and
The 4Ps.
Marketing Framework: 5Cs
Customers
Who are they? What are they like? Do we want to draw different customers?
Company
What are our strengths and weaknesses? What customer benefits can we provide?
Marketing Framework: 5Cs (Cont.)
Context
What is happening in our industry that might reshape our future business?
Collaborators
Can we address our customers needs while strengthening our B2B partnerships?
Marketing Framework: 5Cs (Cont.)
Competitors
Who are the competitors we must consider? What are their likely actions and reactions?
Marketing Management Framework: the 5Cs Summary
Who are they? Why do they buy?
Customers
What are our strengths & weaknesses? What benefits do we provide? Who are they? What is their strategy? How might they react?
Company 5Cs
Context
What is happening that could reshape our future business?
Competitors
Collaborators
Can we better address customers needs through partnerships?
Marketing Management Framework: STP
Segmentation
Customers arent all the same; they vary in their preferences, needs, and resources.
Targeting
Attracting some of those customers makes better sense than going after others
Positioning
Communicate your benefits clearly to your intended customers most important needs.
Marketing Framework: 4Ps
Product
Will customers want what your company is prepared to produce?
Price
Will customers pay what youd like to charge?
Marketing Framework: 4Ps (Cont.)
Place
Where and how will customers purchase your market offering?
Promotion
What can you tell your customers or do for them to entice them to purchase?
Marketing Management Framework: the 4Ps (Marketing Mix) Summary
What do customers need to know before they purchase?
Promotion
Product
What is the offering?
Where do customers expect to purchase?
Place
Price
Will customers buy it? Can you earn a profit?
Framework Considerations
5 Cs, STP and 4 Ps are interdependent
Do we need to fine-tune our offering? How might one decision impact other decisions?
The 5 Cs are in flux
Consistently monitor and adjust strategy accordingly Customers needs change Competitors react
Marketing Strategy
Target Market Marketing Mix
Class Discussion
How has marketing changed over the past 10-years? How has the global economic crisis impacted the way products & services are marketed? How can Customers influence the products & services offered by companies?
How can Companies make marketing everyones job?
How can Customers needs & wants impact marketing?
BP Connect: Discussion
What was BPs revenue stream comprised of before the introduction of BP Connect? After? What are the needs that BP Connect meets for its Customers? Why did BP change its Product offering? How does BP Connect location increase or decrease the likelihood of an exchange? True for all Customers?
Less is More!
