The Marketing Process

The Marketing Process

An Overview of the 5-Step Process of Marketing.

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Jerry Richardson

February 05, 2013
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Transcript

  1. The Marketing Process M201 Marketing for the Small Business @jerry

    Wednesday, February 6, 13
  2. Marketing is the process by which companies create value for

    customers and build strong customer relationships in order to capture value from customers in return. Wednesday, February 6, 13
  3. The Marketing Process 1. Understand the marketplace and customer needs

    and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity Wednesday, February 6, 13
  4. 1. Understand the marketplace and customer needs and wants Needs

    - States of felt deprivation. Wants - The form human needs take as they are shaped by culture and individual personality. Demands - Human wants that are backed by buying power. Wednesday, February 6, 13 Understanding can be improved by research. Customer data, surveys, focus groups, social media.
  5. 1. Understand the marketplace and customer needs and wants Market

    offerings - Some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Exchange - The act of obtaining a desired object from someone by offering something in return. Markets - The set of all actual and potential buyers of a product or service. Wednesday, February 6, 13 Consumers’ needs and wants are fulfilled through market offerings. Some combination of products, services, information, or experiences. Services are not tangible - air travel, banking, tax preparation, home repair. Can’t pay more attention to products than customers. An exchange occurs when our market offerings intersect with customer demands.
  6. 2. Design a customer-driven marketing strategy What customers will we

    serve (what’s our target market)? Use segmentation and targeting to find customers we can serve well and profitably. How can we serve these customers best (what’s our value proposition)? Use differentiation and positioning to create our value proposition, the set of benefits or values we promise to deliver to consumers to satisfy their needs. Wednesday, February 6, 13 Marketing management is: The art and science of choosing target markets and building profitable relationships with them. More vital in small business.
  7. 3. Construct an integrated marketing program to deliver superior value

    The firm must first create a need-satisfying market offering (product) It must decide how much it will charge for the offering (price) It must determine how it will make the offering available to target consumers (place). It must communicate with target customers about the offering and persuade them of its merits (promotion) Wednesday, February 6, 13
  8. 4. Build profitable relationships and create customer delight Customer-perceived value:

    the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. Customer satisfaction: the extent to which a product’s perceived performance matches a buyer’s expectations. Wednesday, February 6, 13 Customer perceived value is not necessarily objective or accurate. Relationships can be measured and managed. Targeted offers, firing customers. Direct interaction over social media.
  9. 5. Capture value from customers to create profits and customer

    equity Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage. Customer equity is the total combined customer lifetime values of all of the company’s customers. Wednesday, February 6, 13 Increasing our share of customer is often more efficient than acquiring new customers. We need to be focused on the right customers.
  10. 5. Capture value from customers to create profits and customer

    equity Strangers (low potential profitability and little projected loyalty) Butterflies (potentially profitable but not yet loyal) True Friends (loyal and profitable) Barnacles (loyal but unprofitable) Wednesday, February 6, 13 We need to be focused on the right customers.