What is Marketing? :What is Marketing? Denise Banks Young Enterprise Advisor


How do people decide to buy? :Young Enterprise How do people decide to buy? Marketing influences every aspect of the decision making process Problem recognition Information Search Information evaluation Decision Post purchase evaluation Customer decision making process


Definition of marketing :Young Enterprise “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 Definition of marketing


What is marketing orientation? :Young Enterprise 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


What impacts marketing decisions? :Young Enterprise What impacts marketing decisions? Customers Our organisation Suppliers Competitors Intermediaries Source: Bassington & Petitt


What is the job of marketing? :Young Enterprise Goals Tactics What is the job of marketing? Identify customer needs Satisfy customer needs Market research Quantitative Qualitative Marketing mix Product Promotion Place Price Marketing Strategy and Plan


STP is the starting point :Young Enterprise 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 STP is the starting point


Step 1: Segment your customers :Young Enterprise Step 1: Segment your customers Segments are distinct groups of customers that share particular characteristics Segmentation Methods Demographic Lifestyle/Needs Behavioural Segment 4 Segment 2 Segment 1 Segment 3 Segment 5


Example – mobile segmentation :Young Enterprise Consumer Business Example – mobile segmentation SoHo Small & Medium Large Teens Young Adults Adults Mature


Market research is used to discover customer characteristics and needs :Young Enterprise Qualitative data Concerned with ‘things’ and ‘facts’ Search for ‘objective’ data Quantitative data Concerns ‘meaning’ and ‘experiences’ Search for ‘subjective’ data Market research is used to discover customer characteristics and needs Data collection methods Questionnaires Structured interviews Open-ended interviews Focus groups


Step 2: target customers :Young Enterprise 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 4 Segment 2 Segment 1 Segment 3 Segment 5 Select target segments based on size, growth potential, fit with organisation’s product and capabilities, and the competitive landscape


Step 3: Position your product :Young Enterprise 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?


The marketing mix is how you decide to meet customer needs :Young Enterprise The marketing mix is how you decide to meet customer needs Product Promotion Place Price Process People Physical evidence 4 P’s 7 P’s


What is a product comprised of? :Young Enterprise What is a product comprised of? Core benefit or service Core product Augmented product Actual product


Promotion is how you tell the market about your product :Young Enterprise 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


Place involves how you take your products to market :Young Enterprise Place involves how you take your products to market Distribution - the where, when and how products and services are made available to customers


Price is the most sensitive of the 4P’s :Young Enterprise Price is the most sensitive of the 4P’s 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


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