The Marketing Process: A Five-Step Process:

Step 1:Understanding the Marketplace & customer needs & wants:

*Consumers needs and wants are fulfilled through market offerings

“Some combination of products, services, information or experiences offered to the market to satisfy a need or want”

Product: Tangible / physical goods

Services: Intangible & do not result in the ownership of anything but experiences. E.g. banking, hotel stays, air travel etc.

Experience: Tourism, the marketing offering is an entire travel experience

The Marketing Process: A Five-Step Process:

Step 1:Understanding the Marketplace & customer needs & wants:

*Consumers needs and wants are fulfilled through market offerings

“Some combination of products, services, information or experiences offered to the market to satisfy a need or want”

Product: Tangible / physical goods

Services: Intangible & do not result in the ownership of anything but experiences. E.g. banking, hotel stays, air travel etc.

Experience: Tourism, the marketing offering is an entire travel experience

The Marketing Process: A Five-Step Process:

Step 1:Understanding the Marketplace & customer needs & wants:

“Set of all actual and potential buyers of a product or service”

The Marketing Process: A Five-Step Process:

Step 1:Understanding the Marketplace & customer needs & wants:

“The act of obtaining a desired object from someone by offering something in return”

The Marketing Process: A Five-Step Process:

Step 1:Understanding the Marketplace & customer needs & wants:

“Amount of benefit a customer will get from a service or a product relative to its cost”

“The mistake of paying more attention to the specific products a company offers than to the benefits and the experiences produced by these products”

“Some combination of products, services, information or experiences offered to the market to satisfy a need or want”

The Marketing Process: A Five-Step Process:

Step 2: Designing a Customer Driven Marketing Strategy:

The company must decide who it will serve by dividing the entire market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing).

The Marketing Process: A Five-Step Process:

Step 2: Designing a Customer Driven Marketing Strategy:

•The company must decide how it will serve its targeted customers – how it will differentiate and position itself in the marketplace.

•The company must decide who it will serve by dividing the entire market into segments of customers is ______1_____ and selecting which segments it will go after ______2______.

1 is:

•The company must decide who it will serve by dividing the entire market into segments of customers is ______1_____ and selecting which segments it will go after ______2______.

2 is:

Marketing Management Orientations:

“This concept holds that the consumers will favor products that are available and highly affordable”

Marketing Management Orientations:

This concept holds that consumer will favor products that offer the most in quality, performance, and features.

Marketing Management Orientations:

This concept holds that the consumer will not buy enough of the firm’s products unless it undertake a large scale selling and promotion effort .

Marketing Management Orientations:

This concept is about understanding customer needs and providing right products for customers.

Marketing Management Orientations:

This concept holds that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long run interests, and society’s long run interest s.

The Marketing Process: A Five-Step Process:

Step 3: Preparing an Integrated Marketing Plan and Program:

•It consist of the firm’s marketing mix, the set of marketing tools the firm uses to implement its marketing strategy

•These marketing tools are classified into 4 broad groups, called the 4 Ps of marketing: product, price, place and promotion.

To deliver on its value proposition, the firm must first create need satisfying market offering (product)

The Marketing Process: A Five-Step Process:

Step 3: Preparing an Integrated Marketing Plan and Program:

•It consist of the firm’s marketing mix, the set of marketing tools the firm uses to implement its marketing strategy

•These marketing tools are classified into 4 broad groups, called the 4 Ps of marketing: product, price, place and promotion.

It must decide how much it must charge for the offering

The Marketing Process: A Five-Step Process:

Step 3: Preparing an Integrated Marketing Plan and Program:

•It consist of the firm’s marketing mix, the set of marketing tools the firm uses to implement its marketing strategy

•These marketing tools are classified into 4 broad groups, called the 4 Ps of marketing: product, price, place and promotion.

How it will make the offering available to target consumers

The Marketing Process: A Five-Step Process:

Step 3: Preparing an Integrated Marketing Plan and Program:

•It consist of the firm’s marketing mix, the set of marketing tools the firm uses to implement its marketing strategy

•These marketing tools are classified into 4 broad groups, called the 4 Ps of marketing: product, price, place and promotion.

It must communicate with target customers about the offering and persuade them of its merits

Step 5: Capturing Value from Customers:

The company can classify customers according to their profitability and manage its relationships with them accordingly.

Low profitability & loyalty.

Little fit between company’s offering and customer’s needs.

lowest profit potential.

•The relationship management strategy for these customers is “Don’t invest anything in them”

Step 5: Capturing Value from Customers:

The company can classify customers according to their profitability and manage its relationships with them accordingly.

Potentially profitable but not loyal. Good fit between company’s offering and customer’s needs; enjoy them for a while only.

•Only invest in them when they are around

Step 5: Capturing Value from Customers:

The company can classify customers according to their profitability and manage its relationships with them accordingly.

Both profitable and loyal & has a strong fit

•Companies want to make continuous investments.

Step 5: Capturing Value from Customers:

The company can classify customers according to their profitability and manage its relationships with them accordingly.

• Loyal but not profitable and has a limited fit

Example: smaller bank customers who bank regularly but do not generate enough returns to cover the costs of maintaining their accounts