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Marketing to Create Value
•Enterprise and its Business
Environment © Goodfellow
Today’s Aims
At the end of the lecture you should
• Be able to define marketing
• Understand that marketing is a way of thinking
and acting
• Understand the importance of segmentation
• Be able to describe and explain the basic
marketing mix
• Know what an outline marketing plan looks like
•Enterprise and its Business
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What is Marketing?
The management process responsible
for identifying, anticipating and
satisfying customer requirements
profitably.
Profit
•Enterprise and its Business
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Customers
But now….?
Marketing is an organisational function and a set of
processes for creating, communicating, and delivering
value to customers and for managing customer
relationships in ways that benefit the organisation and its
stakeholders.
• Relationship- not transactional
• Not just about profit
• Multiple stakeholders
• All Types of organisations
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Customers
Product Orientation vs. Market
Orientation
adapted from Kotler et al
Company
Product
Market
Scotrail
We run trains
We are a peopleand-goods mover
BP
We sell petrol
We supply energy
Apple
We make
computers
We entertain
people
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What do YOU value?
• Choose something you have purchased
personally and at work and draw up a list
of the benefits you get from it.
• What were the costs?
• What should a competitor have done to
get the business
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Marketing relevance?
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Segmentation, Targeting &
Positioning
If not thinking
segments
…not thinking.
Levitt, 1960
Segmentation recognises that not all
customers are the same but some
customers share characteristics and have
similar needs and wants.
Targeting is choosing a segment(s) who
share similar needs & wants, that you can
serve most ably
Positioning requires that the marketing mix
is tailored to suit the chosen target
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•8
Approaches to segmentation
Mass?
Niche?
•Market A
•Product A
•Market B
Differentiated?
•Market C
Customised?
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Approaches to segmentation
•Market A
•Product A
•Market B
•Product B
•Market C
•Product C
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Approaches to segmentation
• Mass?
•Market B
• Niche?
•Product A
•Market A
• Differentiated?
•Market C
• Customised?
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Segmentation criteria
• Demographic
• Geographic
• Psychographiclifestyle
• Behavioural
What type of
products are
segmented
using each of
these methods
?
Value and benefits; users
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Target….
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Positioning
Expensive
X Marks and Spencer
X Mango
X Zara
X Miss Selfridge
For younger customers
Shop
X boohoo.com
X Primark
X Top
Potential gap?
Inexpensive
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For older customers
The marketing mix
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Product
The offering to the market to
satisfy a want or need.
•WHAT IS YOUR PRODUCT/SERVICE?
•WHAT WANTS/NEEEDS DOES YOUR IDEA SATISFY?
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Marketing Mix and the Customertaken from Kotler
Four P’s
Four C’s
• Product
• Customer solution
• Price
• Customer cost
• Place
• Convenience
• Promotion
• Communication
•1-17
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Three Product Levels
•Augmented
product
•Installation
•Warranty
•Actual
Product
•Quality
•After sale
•Core benefit
•Delivery
•Credit
•Brand name
•Packaging
•Features
•Design
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Price is………
The only revenue generator!
• A value placed on what is exchanged
• Symbolic
• Synonyms for price - Rent, Tuition, Fee, Fare, Rate, Toll,
Premium, Bribe, Dues, Salary, Commission, Wage, Tax
• Consumer’s perspective
– functional, quality, operational, financial, personal
• Seller’s perspective
• costs, revenue, profit.
•MAJORITY OF SMALL
BUSINESSES PRICE THEIR
PRODUCTS/SERVICES TOO
LOW- WHY IS THIS?
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Promotion
Promotion is about communicating with your
target audiences.
About a dialogue, not just advertising messages.
•17-20
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Influences on communication
mix choice. Adapted from Phillips and Clews, 2013
stage in product
lifecycle
type of product
or service
objectives
choice of
communications
mix
target market
type of buying
decision
resources
avaiable
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The Move to Digital Source: The
Marketer
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Promotional Mix
advertising
events and
experiences
sales
promotion
target audience
direct
marketing
and personal
selling
public
relations,
sponsorship
social media
and digital
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Pricing focuses on
High Price- no
customers
Low Priceno profit
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Place ( Distribution)
Intensive
• Wide coverage
Selective
• Selected
outlets.
Exclusive
• Selected outlets
• exclusive rights
Impulse goods- fmcg
Shopping goodsdurables
•Luxury specialist
goods
•overlooked part of the mixWhy should someone want to
distribute your product?
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Channel length
Short chain
Manufacturer
End Customer
Manufacturer
Retailer
End Customer
Manufacturer
Wholesaler
Retailer
End Customer
Manufacturer
Agent
Wholesaler
Retailer
Long Chain
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End Customer
Outline marketing Plan
Situation/
Context
analysis
Marketing Objectives:
Target Markets:
The marketing mix
Budget
Internal strengths and weaknesses,
external opportunities and threats,
including market trends, competitors.
Quantified and timescales made clear
Clear description of target markets
using relevant segmentation criteria
Product
Price
Promotion
Place
How much to be spent, allocated to
each part of the mix
Linked to the objectives
Measurement
Responsibility
•Enterprise and
its Business
Timescales and People
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for each activityinternal or using external specialists
Mixing it up
The Marketing Plan
• An integrated approach
• A working document
• Systematic approach
Fail to plan, pan to fail
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Setting the Marketing Budget
Method
Based on
pros/cons
Objectives and task
Spend what’s required to Regards promotion as an
achieve our marketing goals
investment not a cost/The link
between spend and outcome is
not clear cut.
Matching Competitors
Assumes that the amount Difficult to estimate how much
spent =customer impact and competitors
spend.
Your
value.
objectives
may
require
different budget.
Percentage of sales
Marketing is seen as a cost
Affordability
We can only spend what we Is this the right amount?
have
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Suggests that more success
more we should spend. The
reverse may be sensible
Today we have looked at
• What marketing is- a thought and action
• S-T-P
• The marketing mix
• Pulling it all together in a plan
•Enterprise and its Business
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References
The marketer(2013) Digital Set to Surpass TV in Time
Spent with US Media - See more at:
http://www.emarketer.com/Article/Digital-Set-Surpass-TVTime-Spent-with-USMedia/1010096#sthash.TManXkEF.dpuf
Kotler and Keller (2011) Marketing Management Global
edition, Pearson
Phillips and Clews (2013). Marketing Communications in
Gbadamosi, Bathgate and Nwankwo, Eds. (2013).
Principles of Marketing: A Value-Based Approach.
Palgrave McMillan.
•Enterprise and its Business
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