OF What is Marketing? Marketing is about

Transcript:OF What is Marketing? Marketing is about:
OF What is Marketing? Marketing is about understanding: who your customers are what they need what they value Identifying your customers’ needs and working out how your business can fulfil those needs “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.” DEFINITION Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives." Marketing is about knowing who your customers are, understanding what they need and telling them how you can fulfil those needs in a way that encourages them to buy from your business. More definitions Satisfying needs and wants through an exchange process A social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others Philip Kotler “The management process responsible for identifying, anticipating and satisfying customer requirements profitably". Chartered Institute of Marketing What can be marketed? Goods Services Experiences Events Persons Places Organisations Ideas Marketing concepts Market Physical place for buyers and sellers Product/ service class Need market Demographic Geographic Job Basic markets Marketplace Marketspace Meta market Target markets Segmentation Marketer Prospect Needs Wants Demands Need – basic requirements Want- Need directed to specific objects Demand – Want backed by the ability to pay and the willingness to buy Types of needs Stated needs – The need as stated by the customer. E.g. I want a Mercedes Real needs – The customer wants something that is exclusive, not easily available. Unstated needs – The customer expects the dealer to give him preferred treatment Delight needs – The customer wants the dealer to give him a registration number of his choice Secret needs – The customer wants others to appreciate his exclusive possession and speak about it. Value proposition Product Offering Brand Value = Benefits = 2 3 2 6 5 Costs 2 2 1 4 2 Benefits = Functional benefit+ Emotional benefit Costs = Time + Money +Energy+ Psychological cost Value is 1 – Customer satisfaction Value > 1 – Customer delight Value < 1-Customer dissatisfaction Value = QSP (customer value triad) = Quality, Service, Price How to increase value? Increase benefits Decrease the cost Increase benefits more than increase in cost Decrease cost more than decrease in benefits Increase the benefits and reduce the cost Exchange 2 parties minimum Both