What is Marketing

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What is Marketing?

• Denise Banks
• Young Enterprise Advisor

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How do people decide to buy?
Customer decision making process
Problem recognition
Information Search
Information evaluation
Decision
Post purchase evaluation

• Marketing influences every aspect of the decision
  making process

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Definition of marketing

• Marketing is the management process for
  identifying, anticipating and satisfying customer
  requirements profitably. - CIM
• Marketing is to establish, maintain and enhance
  relationships with customers This is achieved by
  mutual exchange and fulfilment of promises. -
  Gronroos

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What is marketing orientation?
The marketing department is responsible for the
strategy and tactics to meet customer needs, but
being oriented towards delighting the customer
is the job of the entire organization
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What impacts marketing decisions?
Suppliers
Our organisation
Competitors
Intermediaries
Customers
Source Bassington Petitt
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What is the job of marketing?
Goals

• Identify customer needs

• Satisfy customer needs

Marketing Strategy and Plan
Tactics

• Market research
• Quantitative
• Qualitative

• Marketing mix
• Product
• Promotion
• Place
• Price

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STP is the starting point

• Segmentation
• Consider variables for segmenting market
• Profile each segment and understand potential

• Targeting
• Decide on targeting strategy
• Decide which and how many segments should be
  targeted

• Positioning
• Understand consumer perceptions
• Position products through communication
• Design appropriate marketing mix

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Step 1 Segment your customers

• Segments are distinct groups of customers that
  share particular characteristics
• Segmentation Methods
• Demographic
• Lifestyle/Needs
• Behavioural

Segment 1
Segment 2
Segment 3
Segment 4
Segment 5
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Example mobile segmentation
Consumer
Teens
Young Adults
Adults
Mature
Business
SoHo
Small Medium
Large
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Market research is used to discover customer
characteristics and needs

• Qualitative data
• Concerned with things and facts
• Search for objective data

• Quantitative data
• Concerns meaning and experiences
• Search for subjective data

• Data collection methods
• Questionnaires
• Structured interviews
• Open-ended interviews
• Focus groups

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Step 2 target customers

• The targeting strategy determines how you want to
  approach the market
• Treat everyone the same
• Develop specific approach for a specific group
  niche strategy
• Different approaches for different groups

Segment 1
Segment 2
Select target segments based on size, growth
potential, fit with organisations product and
capabilities, and the competitive landscape
Segment 3
Segment 4
Segment 5
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Step 3 Position your product

• Which customer needs will you fulfil?
• What do you want your product to be known for?
• How do you want to be viewed versus competitors?

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The marketing mix is how you decide to meet
customer needs
Product
Promotion
Place
Price
4 Ps
7 Ps
Process
People
Physical evidence
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What is a product comprised of?
Actual product
Core benefit or service
Core product
Augmented product
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Promotion is how you tell the market about your
product

• Advertising builds awareness
• PR subtle and cost effective
• Direct marketing lower cost targeting
• Direct Sales personal/expensive
• Sales promotion immediate impact

Brand identity sets the tone for your promotional
activities
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Place involves how you take your products to
market

• Distribution - the where, when and how products
  and services are made available to customers

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Price is the most sensitive of the 4Ps

• Clear signal to the market of the relative
  quality and positioning of your product
• Impacted by customer demand, competitor pricing,
  cost to bring the product to market
• Can have a huge impact on success
• Undercharging lost margin
• Overcharging lost sales

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• REMEMBER
• The ultimate job of marketing is to ensure that
  the organization focuses on the customer and
  meets their needs in a profitable way