“Practical Advice about Finance and Technology”

Creating customer relationships and value through marketing

 

Marketing- is the organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that will benefit the company and its stakeholders.

 

 To serve both buyers and sellers “marketing” (1) seeks to discover the needs and wants of prospective customers (2) satisfy them

 Key to the 2 objects is EXCHANGE – the trade of things of value between buyer and seller so that t each is better off after the trade.

 

Requirements for Marketing to occur-

1. two or more parties with un stratified needs
2. a desire and ability on there part to be satisfied
3. away for the parties  to communicate
4. something to exchange

 

Meeting customer needs-

(1) Focus on what the customer benefit is and (2) learn from the past.

 

CONSUMER NEEDS AND WANTS

 Need occurs when a person feels deprived of basic necessities such as food, clothing and shelter.

Want is a need that is shaped by a person’s knowledge culture and personality.

 

WHAT IS A MARKET?

Potential consumers make up a market, which are people with the desire and the ability to buy a specific product.

Target Market- one or more specific groups of potential consumers toward which a an organization directs its marketing program

 

The Four P’s: controllable marketing mix factors

Product-A good service or idea to satisfy the needs of a consumer.

Price-What is the exchange for the product

Promotion- A means of communication between the seller and the buyer

Place- a means of getting the product in to consumer hands.

 

The Uncontrollable Environmental Factors-

Social economic technological competitive and regulatory

 

Marketing program- a plan that integrates the marketing mix to provide a good or service or idea to prospective buyers

 

 

Marketing Concept -the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organizations goals.

 

Marketing Orientation focus effort on (1) continuously collecting in and about customer needs (2) sharing this information across department and (3) using it to create customer value 

 

Developing successful marketing corporate strategies

 

Boston consulting group- BCG

Vertical market growth rate horizontal market share.

 Cash cow-generate large amounts of cash, far more then they can invest profitably in there own product like dominate share slow growth

 

Stars- high share and growth markets that may need extra cash to finance further growth when growth slows they are likely to become cash cows.

 

Question marks- low share high growth they require large cash injections to maintain market share much less increase it. Management problem more cash or cash out

 

Dogs- low share and growth they will not become winners but substance them selves

 

 

4 market product strategies

Market penetration- more promotion or higher price no change in product line

Market development- selling existing product to new markets

Product development- sells new products in existing markets not always a good idea (ice cream and clothings0

 Diversification- new product in new market

 

**Strategic marketing process

 3 phases planning, implementation, controlling

 

Planning phase

(1) Situation analysis (2) marketing product focus and goal setting (3) marketing prom

 

Step 1: situation (swot) analysis

 Taking stock in where the firm has been recently where it is now and where it is heading in term of the organizational plan and out side factors

 

Step 2: Market Product focus and goal setting

Determine which product will be directed towards which customer. Market segmentation

Set marketing and product goals

Select target market

Find point of difference – characteristic the make it superior to the competitive substitute 

Position the product

 Step 3:  Marketing program

The how of getting to the  who and the from step 2 involves developing the marketing mix and its budget.

 

Implementation phase-

Obtaining recourses get the $$$

Designing the marketing organization-get the people

Developing schedules –set a time line

Exacting – follow time line

 

Marketing strategy- is the means by which a marketing goal is achieved

Marketing tactics- the day to day design conserving the operation in aspect of the strategy

 

Scanning the marketing Environment

 

Demographics-age gender ethnicity income occupation

 

Disposable income-money left over after taxes for food and other expense (Ness)

Discretionary income- money left over after ness to buy luxury items

 

Ch5 Consumer behavior

Consumer purchase decision process

1. problem recognition-perceiving a need

2.   Information search-seeking a value

3. alternative evaluation- seeing what brands effect have

4.   Purchase decision- Buying value <best for the person>

5.   Post purchase behavior-

 

Cognitive dissonance-post purchase anxiety

 

3        problem solving

Extended- each of the 5 steps is used

Limited- general purchase limited input

Routine –low involvement

 

Organizational markets and buyer behavior

 

Buying center-individuals in a organization that are reasonable for buying

 Users-

Influencers- help define spec of what is needed

Buyers-formal authority to buy nag and contact suppliers

Deciders- final say    know whist is needed and get that

Gatekeepers- paper pushers that control supply line

 

 

 

 

Buying situations

Straight rebuy- reorder an existing produced

Modified rebuy- change specs but product is largely the same

New buy- new buy

 

 

 7 major ch that differ from consumer buying

Size of order

Number of potential buyers

Buying objective

Buying criterion

Buyer-seller relationship

Supply partners

 

 

 

 

5 steps of marketing Research approach to making a better decision

 

Step 1: define the problem

Set research objectives, identify possible marketing actions

Step 2: Develop the research plan

Specify constraints identify data needed for marketing action, determine how to collect data

Step 3: collect relevant information by specifying

            Secondary and primary data

Step 4: Develop Findings

            Analyze and present data

Step 5: take action

            Make recommendation implement and evaluate results

 

 

5 steps of segmenting and targeting markets

1. Group potential buyers in to segments

2. Put related products in to groups

3. Oragize product grid with estimated size of markets in of the select market segments

4. Select target market where organization should focus

5. Take and form marketing mix

 

 

product line- group of products that is closely related

product mix-number of product line a company has