1. 5 Concept Marketing Management Orientations
1.1. The Production Concept
1.1.1. Consumers will favor products that are available and highly affordable.
1.1.1.1. EX : Viivo , the Chinese smartphone brand. Their phones are available in almost every corner of the Asian market.
1.2. The product Concept
1.2.1. Consumers will favor products that offer the most in quality, performance, and innovative features.
1.2.1.1. Ex : Apple is one company which works highly on product concept to get the best products to their consumers.
1.3. The selling concept
1.3.1. Consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.
1.4. The marketing concept
1.4.1. Achieving organizational goals depends on knowing the needs and wants of target markets and delivering satisfaction better than competitors do.
1.5. The societal marketing concept
1.5.1. Societal marketing concept questions whether the pure marketing concept overlooks conflicts between consumer short term wants and long term welfare. Here, the marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and the society’s well being.
1.5.1.1. Ex Samsung is always of applying the societal marketing concept. Samsung Technical School is a project that empowers girls to follow their dreams.
2. WHAT IS MARKETING ?
2.1. Identifying customer needs, satisfying these needs and anticipating them in the future’
2.2. Goals of Marketing
2.3. 1.To attract new customers by promising superior value 2.To keep and grow current customers by delivering satisfaction
3. Preparing An Integrated Marketing Plan And Program
3.1. The company marketing strategy outlines which customers the company will serve and how it will create value for these customers. Marketer develops an integrated marketing program that will actually deliver the intended value to target customers. The marketing program consists of the firm’s marketing mix, which are classified into the four Ps of marketing: product, price, place, and promotion.
4. Building Customer Relationship
4.1. Customer Value & Satisfaction
4.1.1. The key to building lasting customer relationships is to create superior customer value and satisfaction
4.1.2. Customer (perceived) value
4.1.2.1. This is the customer’s evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers.
4.1.2.1.1. Ex: a customer doesn’t buy a drill to have a drill. He buys a drill to have the capacity to make holes.
4.1.3. Customer Satisfaction
4.1.3.1. Depends on the extent to which a product’s perceived performance matches a buyer’s expectations.
5. Customer Relationship Levels & Tools
5.1. Company with many low-margin customers may seek to develop basic relationships with them.
5.2. In markets with few customers and high margins, sellers want to create full partnerships with customers.
6. Growing Share Of Customer
6.1. The share the company gets of customers purchasing in their product categories
6.1.1. e.g. Coca Cola wants to have the biggest share of customers’ soft drinks purchase.
7. Customer Relationship Groups
7.1. Strangers
7.1.1. Low potential profitability and little projected loyalty. The relationship management strategy for these customers is simple: Don’t invest anything in them.
7.2. Butterflies
7.2.1. Potentially profitable but not loyal. The company should use promotional blitzes to attract them, create satisfying and profitable transactions with them, and then cease investing in them until the next time around
7.3. True Friends
7.3.1. Profitable and loyal. There is a strong fit between their needs and the company’s offerings. The firm wants to make continuous relationship investments to delight these customers, keep (retain) and grow them.
7.4. Barnacles
7.4.1. Highly loyal but not very profitable. There is a limited fit between their needs and the company’s offerings
8. 5 STEPS MARKETING PROCESS
8.1. Needs, Wants & Demand
8.1.1. Human needs are states of felt deprivation (including food, clothes, shelter, security and water). These are physical, social, and individual needs. These needs were not created by marketers; they are basic needs of all humans.
8.1.2. Wants are the form human needs take when they are shaped by culture, society and individual personality.
8.1.2.1. E.g. an Malaysian needs food but wants a Rice. A American person needs food but wants Big Mac.
8.1.3. When there is buying power, wants become demands. Customers demand products with benefits that provide the most value and satisfaction for them.
8.2. Marketing offers ( Products, Services & Experience.)
8.2.1. When there is buying power, wants become demands. Customers demand products with benefits that provide the most value and satisfaction for them.
8.2.2. Customer needs and wants are fulfilled through market offerings. Market offerings are a combination of products, services, information, or experiences offered to a market to satisfy a need or want.
8.2.3. Marketing myopia occurs when a company becomes so involved with their products that they forget customer needs. This is where there is excessive focus on the product.
8.2.3.1. Example: Kodak’s cameras were at the peak of the market, they kept on producing the same types of cameras over the years. When Sony introduced its digital cameras in the market, Sony’s cameras were a huge success. Kodak’s cameras were kicked out from the market.
8.3. Value & Satisfaction
8.3.1. Satisfied customers buy again and tell others about their good experiences.
8.3.2. Dissatisfied customers switch to competitors and spread negative messages about the product or service to others
8.4. Exchange & Relationship
8.4.1. Exchange process is simply when an individual or an organisation decides to satisfy a need or want by offering some money or goods or services in exchange
8.4.1.1. Example : You go into a restaurant and order your favorite meal. You eat the food and then you pay for it with your credit card
8.5. Markets
8.5.1. The firms should analyse the need of their customer and then make decision to satisfy those need, better than the competitors.
9. Value Proposition
9.1. Value a company promises to deliver to customers should they choose to buy their product
9.1.1. Example : Apple, a firm renowned as much for its commitment to sleek, elegant product design as its actual products, Apple firmly reiterates its value proposition in the copy about its iPhone range of products. The experience IS the product.
10. Customer Engagement Marketing
10.1. Relating More Deeply and Interactively
10.1.1. Marketers are using interactive approaches that help build targeted, two-way customer relationships.
10.2. Relating More Deeply and Interactively
10.2.1. The firm creates highly satisfied customers who remain loyal and buy more.
10.2.2. Marketers are using interactive approaches that help build targeted, two-way customer relationships.
11. Creating Customer Loyalty & Retention.
11.1. Customer Lifetime Value.
11.2. Create not just customer satisfaction, but customer delight. This means that companies must aim high in building customer relationships
12. Building Customer Equity
12.1. Total combined customer lifetime values of all of the company’s current and potential customers.
12.1.1. Ex ; a buyer may like both McDonald’s and Burger King, but would more often buy from McDonald's. Customer equity is quantitative (number driven) whereas brand equity bends more towards the qualitative aspect (connections customers make with the brand).
13. The Changing Marketing Landscape
13.1. Digital Age
13.1.1. Online, Mobile and Social Media Marketing use in our era to people connect and share important information.Marketing use this platform to make engagement with their customer.
13.1.2. Provided marketers with exciting new ways to learn about and track customer needs.
13.2. Changing Economic Environment
13.3. Growth of Not for Profit Marketing
13.3.1. Nonprofit organizations (e.g. al-Nahda) face stiff competition for support and membership. Good marketing can help them attract membership and support
13.4. Rapid Globalization
13.5. Sustainable Marketing
13.5.1. Focusing more on social values and responsibilities alongside the very earth that sustains.