the process through which organizations design, develop, and communicate the value of their products and/or services
marketing
fundamental principles of customer behaviour
- Customers don’t buy products or services - they buy solutions to problems or needs
- Customers will not pay more for a product if they can get a similar product for less
6R’s of marketing
- Right need to pursue
- Right solution to offer
- Right value proposition for positioning
- Right methodology for delivery
- Right price to charge
- Right communication message
6 challenges of marketing
- message development and delivery
- need identification
- assessment of our ability to respond
- value proposition creation and positioning
- distribution capabilities
- price point validation
marketing formula
Effective and Well-Defined market position + superior marketing effort = profitability and growth
refers to determining the best way to divide the market in a manner that will result in a better understanding of potential customer needs, interests, preferences, attitudes, and behaviours
segmentation
those that an organization develops or utilizes to generate information specific to the organization and the products services it offers
• i.e. customer surveys, tweets, input via Facebook
primary sources of information
are those that exist and are available at no cost or on a fee basis; managers use these information sources to conduct research and draw conclusions
i.e. Statistics Canada website for demographical information
secondary sources of information
is the process whereby organizations determine which market segments represent the strongest clustering of potential customers who are most likely to purchase the product and who have the capacity to do so
target marketing
marketing process
marketing research
- segmentation
- -target market
- –value proposition and profiling
- —marketing mix development
- —-message rifling and concentration
when assessing market opportunities, look at four key areas:
- Market penetration opportunities
- Product/service development opportunities
- Market development opportunities
- Diversification opportunities
refers to expanding the focus of a product/service to similar and related market segment that share a positive affinity for the product/service offering
segmentation stretch
the reduction in sales of an existing product/service due to the launch of a new, similarly targeted product/service offering
cannibalism
occurs when customers move to a competitive offering due to a change in brand or product communication message focus
customer desertion
In making a decision to buy, potential customers will fundamentally go through a four-phase process
- initial consideration of options
- active consideration and evaluation of options
- decisions disruption opportunity
- post purchase influence
true or false: Marketing does ends at the point of purchase
false - considerable emphasis needs to be placed on the post-purchase period, which is where true customer loyalty and commitment is developed
a statement that summarizes whom a product/service is geared toward and the benefits the purchases will realize as a result of using the product
= service benefits + product benefits + brand benefits + cost benefits + emotional benefits
value proposition
