marketing management-ppt

MARKETING MANAGEMENT

Unit - 1

Introduction

Definition of marketing

Marketing is defined by the American Marketing Association [AMA] as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."

Definition of marketing

Marketing (or advertising) is the process by which companies advertise products or services to potential customers. ."[1] It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return.[1]

Definition of marketing

Marketing is used to create the customer, to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. The evolution of marketing was caused due to mature markets and overcapacities in the last decades. Companies then shifted the focus from production to the customer in order to stay profitable.

Evolution of marketing

Barter Production orientation Sales orientation Marketing orientation Consumer orientation Management orientation

Meaning of market

Market includes both place and region in which buyers and sellers are in free competition with one another.

Classification of market

On the basis of area Goods Economics Transaction Regulation Time Volume Importance

What is marketed

Goods Services Experiences Events Persons Places Properties Organisations Information Ideas

Marketing environment

The term marketing environment relates to all of the factors (whether internal, external, direct or indirect) that affect a firm's marketing decision-making or planning and is subject of the marketing research. A firm's marketing environment consists of two main areas, which are:

Macro micro

Marketing environment

Macro environment On the macro environment a firm holds only little control. It

consists of a variety of external factors that manifest on a large (or macro) scale. These are typically economic, social, political or technological phenomena. A common method of assessing a firm's macro-environment is via a PESTLE (Political, Economic, Social, Technological, Legal, Ecological) analysis. Within a PESTLE analysis, a firm would analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology's impact on its society and the business processes within the society.

Marketing environment

Micro environment A firm holds a greater amount (though not necessarily total)

control of the micro environment. It comprises factors pertinent to the firm itself, or stakeholders closely connected with the firm or company. A firm's micro environment typically spans: Customers/consumers Employees Suppliers The Media

By contrast to the macro environment, an organization holds a greater degree of control over these factors.

Selling vs marketing

Marketing is much wider than selling and much more dynamic. The fundamental differance between the two is that selling

revolves around the needs and interest of the seller. Where as Marketing revolves around the needs and the interest

of the buyers. Selling is an inside-out perspective. Its starts from factory,

focuses on the company's existing products, and calls for heavy selling and promotion to obtain profitable sales.

Marketing takes an outside-in perspective It starts with a well defined markert, focuses on customer needs, co-ordinates all the marketing activities affecting customers, and makes profits by creating customer satisfaction

Selling vs marketing

Marketing is the planning, pricing, promotion, packaging, advertising selling of any product or service.

selling is only a sliver of the over all marketing of any product or service. But as Zig Ziglar says "nothing happens until someone sells something" and what he means is that sales is not a four letter word but a five letter word.

Many marketing consultants talk about marketing as the "message to the consumer" or potential client or prospect. there is always a message in; Promoting, packaging, signage, advertising,

Selling is also about delivering the message to the customer or prospect as well and it is a much closer message, person to person and selling can take the form of a telephone call, personal visit, demo, presentation or even an ad hoc or chance meeting with a conversation and later follow up.

Selling vs marketing

Most sales Managers Consider selling to be about report and relationship building; getting to know the potential customer or prospect their desires and needs and solving a problem by offering your product or service to them

Marketing is in fact the act of 'bringing the product to market'. Selling is about closing a sale and turning a potential buyer into a customer. Closing a sale is also called a conversion.

Selling vs marketing

Broadly, Marketing creates the atmosphere to make it easy for sales to happen. Marketing consists things like:

Marketing Strategy,target market etc. Sales" obviously is getting out and writing the

orders ... tough disciplined work. This involves skills like "closing" the sale - very different skills to Marketing

Good sales people do not make good marketers and vice versa ...

Global marketing

The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.”

Evolution to global marketing Domestic marketing International marketing Multinational marketing Global marketing

GLOBAL MARKETING

When a company becomes a global marketer, it views the world as one market and creates products that will only require weeks to fit into any regional marketplace. Marketing decisions are made by consulting with marketers in all the countries that will be affected. The goal is to sell the same thing the same way everywhere.

Global marketing Advantages and Disadvantages ADVANTAGES Economies of scale in production and distribution Lower marketing costs Power and scope Consistency in brand image Ability to leverage good ideas quickly and efficiently Uniformity of marketing practices Helps to establish relationships outside of the

"political arena" Helps to encourage ancillary industries to be set up

to cater for the needs of the global player

Disadvantages Differences in consumer needs, wants, and usage

patterns for products Differences in consumer response to marketing mix

elements Differences in brand and product development and

the competitive environment Differences in the legal environment, some of which

may conflict with those of the home market Differences in the institutions available, some of

which may call for the creation of entirely new ones (e.g. infrastructure) Differences in administrative procedures Differences in product placement.

Elements of the global marketing mix Product Price Placement Promotion

Marketing interface with other functional areas Production Finance Human relations management Information system

UNIT - 2

Marketing strategy

Marketing strategy

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal.

Marketing strategy

Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe

Types of strategies

A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers

Types of strategies

Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies.

Types of strategies

Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:

Leader Challenger Follower Nicher

Types of strategies

Market dominance Porter generic strategies Innovation strategies Growth strategies

Industrial marketing

Industrial marketing is the marketing of goods and services from one business to another. Industrial goods are those which are used in Industry for producing a Different end product from one or more rawmaterials. The word "industrial" means machinery run by power to produce goods and services. But "industrial marketing" is not confined to these types of business activities. Broadly, marketing could be split into consumer marketing (B2C "Business to Consumer") and industrial marketing (B2B "Business to Business").

B2B Marketing Strategies

B2B BRANDING

PRODUCT

PRICING

PROMOTION

PLACE

Who is customer in a B2B Sale? The first category includes original equipment manufacturers,

such as automakers, who buy gauges to put in their cars, and users, which are companies that purchase products for their own consumption. The second category, government agencies, is the biggest. In fact, the government is the biggest single purchaser of products and services in the country, spending more than $300 billion annually. But this category also includes state and local governments. The third category, institutions, includes schools, hospitals and nursing homes, churches and charities. Finally, resellers consist of wholesalers, brokers and industrial distributors.

CONSUMER MARKETING B2C Business to Consumer (or "Consumer") Examples of the B2C selling/buying process are... A family are at home on a Sunday night and are watching

television. An advertisement appears that advertises home delivered pizza. The family decides to order a pizza.

Walking down a supermarket aisle, a single man aged in his early 30's sees a hair care product that claims to reduce dandruff. He pick's the product and adds it to his shopping cart.

A pensioner visits her local shopping mall. She purchases a number of items including her favourite brand of tea. She has bought the same brand of tea for the last 18 years.

Consumer marketing The main features of the B2C selling process

are... Marketing is one-to-many in nature. It is not practical

for sellers to individually identify the prospective customers nor meet them face-to-face.

Lower value of purchase. Decision making is quite often impulsive (spur of the

moment) in nature. Greater reliance on distribution (getting into retail

outlets). More effort put into mass marketing (One to many). More reliance on branding. Higher use of (television, radio, print media)

advertising to build the brand and to achieve top of mind awareness.

Services marketing

Services marketing is marketing based on relationship and value. It may be used to market a service or a product.

There are several major differences, including: The buyer purchases are intangible The service may be based on the reputation of a

single person It's more difficult to compare the quality of similar

services The buyer cannot return the service

Competitor analysis

Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors.

Competitor array Competitor profiling Media scanning

Marketing mix

4 Ps of marketing PRODUCT PRICE PLACE PROMOTION

Why 7 ps

Process Physical evidence people

Unit – 3

Marketing mix decisions

product

Product Planning is the ongoing process of identifying and articulating that define a product’s feature set.

Chapter GoalsTo gain an understanding of: The meaning of total “product” and “new” product Classification of business and consumer products and its

relevance to marketing planning Product innovation The product-development process When to add new products to a product line The adoption and diffusion process for products Organizational structures for product planning and

development

What is a Product?

it is more than physical products; includes services, places, persons, and ideas

it is easy to visualize the products of Esso, but more difficult to describe those of the Toronto Symphony, UNICEF, or the Salvation Army

some products are sold only to consumers, while others are sold to organizations

whether a product is a consumer product or a business product depends on how it is used

Classifying Business Products raw materialsraw materials: unprocessed, become part of

other manufactured products manufactured parts and materials:manufactured parts and materials: processed

products that become part of other products installations:installations: major buildings and equipment accessory equipment:accessory equipment: used in operations,

include computers, desks, tools operating suppliesoperating supplies: low value, used by most

firms, convenience products for businesses

Product life cycle

Product life cycle management is the succession of strategies used by management and as a product goes through its product life cycle. The conditions in which a product is sold changes over time and must be managed as it moves through its succession of stages.

Product life cycle

Market introduction stage Growth stage Mature stage Saturation and decline stage

Market introduction stage

costs are high slow sales volumes to start little or no competition - competitive

manufacturers watch for acceptance/segment growth losses

demand has to be created customers have to be prompted to try the

product makes no money at this stage

Growth stage

costs reduced due to economies of scale sales volume increases significantly profitability begins to rise public awareness increases competition begins to increase with a few

new players in establishing market increased competition leads to price

decreases

Mature stage

costs are lowered as a result of production volumes increasing and experience curve effects

sales volume peaks and market saturation is reached

increase in competitors entering the market prices tend to drop due to the proliferation of

competing products brand differentiation and feature diversification is

emphasized to maintain or increase market share Industrial profits go down

Decline stage

costs become counter-optimal sales volume decline or stabilize prices, profitability diminish profit becomes more a challenge of

production/distribution efficiency than increased sales

The New Product Development Process

1.Idea

generation

1.Idea

generation

2.Screeningof ideas

2.Screeningof ideas

3.Businessanalysis

3.Businessanalysis

4. Prototype

development

4. Prototype

development

5.MarketTests

5.MarketTests

6.Commer-cialization

6.Commer-cialization

Idea Generation

is often called the "fuzzy front end" of the NPD process Ideas for new products can be obtained from basic research

using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends, company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features.

Idea Generation or Brainstorming of new product, service, or store concepts - idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next development step).

Idea Screening

The object is to eliminate unsound concepts prior to devoting resources to them.

The screeners must ask at least three questions: Will the customer in the target market benefit from the

product? What is the size and growth forecasts of the market

segment/target market? What is the current or expected competitive pressure for

the product idea? What are the industry sales and market trends the product

idea is based on? Is it technically feasible to manufacture the product? Will the product be profitable when manufactured and

delivered to the customer at the target price?

Concept development and testing

Develop the marketing and engineering details Who is the target market and who is the decision maker

in the purchasing process? What product features must the product incorporate? What benefits will the product provide? How will consumers react to the product? How will the product be produced most cost effectively? Prove feasibility through virtual computer aided

rendering, and rapid prototyping What will it cost to produce it?

Testing the Concept by asking a sample of prospective customers what they think of the idea. Usually via Choice Modelling.

Business Analysis

Estimate likely selling price based upon competition and customer feedback

Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equation

Estimate profitability and breakeven point

Beta Testing and Market Testing

Produce a physical prototype or mock-up Test the product (and its packaging) in typical

usage situations Conduct focus group customer interviews or

introduce at trade show Make adjustments where necessary Produce an initial run of the product and sell it in a

test market area to determine customer acceptance

Technical Implementation

New program initiation Resource estimation Requirement publication Engineering operations planning Department scheduling Supplier collaboration Logistics plan Resource plan publication Program review and monitoring Contingencies - what-if planning

Commercialization (often considered post-NPD)

Launch the product Produce and place advertisements and other

promotions Fill the distribution pipeline with product Critical path analysis is most useful at this stage

New Product Pricing

Impact of new product on the entire product portfolio

Value Analysis (internal & external) Competition and alternative competitive

technologies Differing value segments (price, value, and need) Product Costs (fixed & variable) Forecast of unit volumes, revenue, and profit

Market segmentation A market segment is a group of people or

organizations sharing one or more characteristics that cause them to have similar product and/or service needs.

Market segmentation

A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention.

Market segmentation

The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups

Patterns for market segmentation Homogeneous preferences Diffused preferences Clustered prefences

Market segmentation procedure Survey stage Analysis stage Profiling stage

Segmenting consumer and business markets Segmenting consumer markets Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation Multi – attribute segmentation (geoclustering)

Basis for segmenting business markets First time prospects Novices Sophisticates

Programmed buyers Relationship buyers Transaction buyers Bargain hunters

Effective segmentation

Measurable Substantial Accessible Actionable

Market targeting

A 'target market or target Audience is the market segment which a particular product is marketed to. It is often defined by age, gender and/or socio-economic grouping. Market Targeting is the process in which intended actual markets are defined, analyzed and evaluated just before the final decision to enter is made.

Market positioning

Once a market segment has been identified (via segmentation), and targeted (in which the viability of servicing the market intended), the segment is then subject to positioning. Positioning involves ascertaining how a product or a company is perceived in the minds of consumers.

This part of the segmentation process consists of drawing up a perceptual map, which highlights rival goods within one's industry according to perceived quality and price. After the perceptual map has been devised, a firm would consider the marketing communications mix best suited to the product in question.

Market channel Market channel are sets of of interdependent

organizations involved in the process of making a product or service use or consumption.

A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process. A marketing channel is a useful tool for management.[1]

Roles of marketing channel in marketing strategy: Links producers to buyers. Performs sales, advertising and promotion. Influences the firm's pricing strategy. Affecting product strategy through branding,

policies, willingness to stock and customizes profits, install, maintain, offer credit, etc.

An example of this is Apple orchard: Apple orchard >Transport > Processing factory > Packaging > > Final product to be sold > Apple pie eaten

Distribution channel

An alternative term is distribution channel. It is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer.

Advertising

Defn: Any paid form of non personal presentations and promotion of ideas goods and services by an identified sponsor.

Advertisement objective

Informative advertising Persuasive advertising Reminder advertising

Types of advertising

Television Infomercials Radio ad Print ad Online ad Billboard ad celebrities

Sales promotion

Sales promotion consists of a diverse collection of intensive tools,mostly short term, mostly designed to stimulate quicker or greater purchase of particular products or service by consumers or the trade

Sales promotion techniques

Samples Coupons Cash refund offers Price packs Premiums Prizes Patronage awards Free trials

Pricing

Price is the amount that we pay for goods, services or ideas.

Price is the exchange value between buyers and sellers.

Objectives of pricing

Survival pricing Current profit max pricing Market share pricing Product quality leadership

Approaches to pricing

Cost based Competition based Demand based

Unit - 4

Buyer behaviour

Buyer behaviour

Introduction An important part of the marketing process is to

understand why a customer or buyer makes a purchase.

Without such an understanding, businesses find it hard to respond to the customer’s needs and wants.

Marketing theory traditionally splits analysis of buyer or customer behaviour into two broad groups for analysis – Consumer Buyers and Industrial Buyers

Consumer buyers are those who purchase items for their personal consumption

Industrial buyers

Industrial buyers are those who purchase items on behalf of their business or organisation

Businesses now spend considerable sums trying to learn about what makes “customers tick”. The questions they try to understand are:

• Who buys?• How do they buy?• When do they buy?• Where do they buy?• Why do they buy?

For a marketing manager, the challenge is to understand how customers might respond to the different elements of the marketing mix that are presented to them.

If management can understand these customer responses better than the competition, then it is a potentially significant source of competitive advantage.

Consumer Buying Behaviour 1. Problem/Need Recognition 2. Information search

3. Evaluation of different purchase options. 4. Purchase decision Post purchase behaviour. Culture has an impact on the company.

Marketers should take into account Maslows hierarchy of needs.

Online buyer behaviour

Consumer Behavior Online

Consumer types Individual consumers

Commands most of the media’s attention Organizational buyers

Governments and public organizations Private corporations Resellers

Purchasing types and experiences 2 dimensions of shopping experiences

Utilitarian—to achieve a goal Hedonic—because it’s fun

3 categories of consumers Impulsive buyers—purchase quickly Patient buyers—make some comparisons first Analytical buyers—do substantial research before buying

Demographics of Internet Surfers Environmental variables

Social variables – influenced by peers Cultural variables Psychological variables Other environmental variables - e.g. government restrictions

Personal characteristics / demographics Consumer resources and lifestyle Age; gender; marital status Knowledge and educational level Attitudes and values Motivation Personality Ethnicity

More experience on Web more to buy online Two major reasons people do not buy online

Security Difficulty judging the quality of the product

Major Roles in Purchasing

5 major roles Initiator

Suggests/thinks of buying a particular product or service Influencer

Advice/views carry weight in making a final buying decision Decider

Makes a buying decision or any part of it Buyer

Makes the actual purchase User

Consumes or uses a product or service

Purchasing decision-making model 5 major phases

Need identification marketer must get customer to recognise need Banner and URL advertising, community discussions

Information search Web directories, search engines

Alternatives evaluation Newsgroup discussions, cross-site comparisons

Purchase and delivery Electronic cash, virtual banking

After-purchase evaluation—customer service Discussions in newsgroups

Consumer Satisfaction

CRM Customer relationship management is a broadly

recognized, widely-implemented strategy for managing and nurturing a company’s interactions with customers and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales related activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new customers, nurture and retain those the company already has, entice former customers back into the fold, and reduce the costs of marketing and customer service.

CRM

CRM stands for Customer Relationship Management. It is a process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends.

CRM

CRM helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers.

CUSTOMER ACQUISITION

Customer acquisition management is a term used to describe the methodologies and systems to manage customer prospects and inquiries, generally generated by a variety of marketing techniques. It can be considered the connectivity between advertising and customer relationship management. This critical connectivity facilitates the acquisition of targeted customers, in the most effective fashion.

Customer Retention

Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. A company’s ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace.

Customer retention

Customer retention is more than giving the customer what they expect, it’s about exceeding their expectations so that they become loyal advocates for your brand. Creating customer loyalty puts ‘customer value rather than maximizing profits and shareholder value at the center of business strategy’[1]. The key differentiator in a competitive environment is more often than not the delivery of a consistently high standard of customer service.

Customer defection(attrition)

When companies are measuring their customer turnover, they typically make the distinction between gross attrition and net attrition. Gross attrition is the loss of existing customers and their associated recurring revenue for contracted goods or services during a particular period.

Unit – 5

Market research and trends in marketing

Marketing Information System A Marketing Information System can be

defined as 'a system in which marketing information is formally gathered, stored, analysed and distributed to managers in accord with their informational needs on a regular basis'

Marketing Information Systems Marketing Research

What is Marketing Research? Process Terminology Techniques

MKIS - Marketing Information Systems What is MKIS Components of an electronic MKIS

Marketing Research

the systematic gathering, recording and analysing of data about problems relating to

the marketing of goods and services’

American Marketing Association

The Marketing Research Process

Define research ProblemAssess the value of the researchConstruct a research proposalSpecify data collection method

Specify techniques of measurementSelect the sample

Data collectionAnalysis of results

Present in a final report

Terminology of Marketing Research Primary data - collected firsthand Secondary data - already exists, desk

research Quantitative research - statistical basis Qualitative research - subjective and

personal sampling - studying part of a ‘population’ to

learn about the whole

Marketing Research Techniques Interviews

face-to-face telephone postal questionnaire

Attitude measurement cognitive component (know/believe about an act/object) affective component (feel about an act/object) conative component (behave towards an object or act)

Likert scale strongly agree agree neither agree nor disagree disagree strongly disagree

Semantic differential scales - differences between words e.g. practical v impractical

Projective techniques sentence completion psychodrama (yourself as a product) friendly martian (what someone else might do)

Group discussion and focus group Postal research questionnaires Diary panels - sources of continuous data In-home scanning - hand-held light pen to

scan barcodes Telephone research Observation

home audit direct observation

In-store testing

Product advertising

Advertising research is a specialized form of research that works to improve the effectiveness and efficiency of advertising. It entails numerous forms of research which employ different methodologies.

Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns—pre-testing is done before an ad airs to gauge how well it will perform and post-testing is done after an ad airs to determine the in-market impact of the ad or campaign on the consumer.

Continuous ad tracking and the Communicus System are competing examples of post-testing advertising research types.

promotion

Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. (The other three elements are product marketing, pricing, place.)

Promotion is generally sub-divided into two parts: Above the line promotion: Promotion in the media

(e.g. TV, radio, newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in which the advertiser pays an advertising agency to place the ad

Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows

promotional mix

There are four main aspects of a promotional mix.

Advertising Personal selling Sales promotion Public relation Direct marketing

The Customer Driven Organization

Learning Objectives

When you have completed this module you will be able to define the key concepts associated with the Customer Driven Organization and you will be able to: Understand the vital importance of the customer to any

organization

See the value in having excellent service for both internal and excellent customers

Identify the factors that can prevent an organization from maximizing customer value

Learning Objectives

Understand how to critically look at the customer service levels and to establish if the organization is truly customer driven

Identify different customer types and interact appropriately with them

What is a Customer Driven Organization?

A customer driven organization is one that:

Listens to its customers

Integrates customers into its business and vice versa

Provides customer focused solutions

Has a culture which positively embraces the customer

Benefits of Being Customer Driven

The organization gains the following benefits:Loyalty of Customers

Higher profits

Focus on value add

Service as a differentiator

Market information

Benefits of Being Customer Driven Loyalty of customers

Customers will stay where they feel they are being valued

Customers will receive what they require

Customers will trust the organization

Business will be protected from the competitors

Benefits of Being Customer Driven Focus on value add

The organization will focus its resources on the activities which add value for the customer

Customer driven operations focus on what the customer wants

Core competencies can be identified and developed so as to deliver what the customer values

Benefits of Being Customer Driven Service as a differentiator

Quality of product or service is taken as a prerequisite for doing business - service is what differentiates customer driven organizations

Service will increase loyalty

Service becomes a cultural aspect aswell as a functional aspect of the organization

Benefits of Being Customer Driven Market information

Having excellent links with customers provides an organization with access to information on the market Market growth rate Competitor activity Customer buying trends Requirements for new products and services

Cause marketing or cause-related marketing Cause marketing or cause-related

marketing refers to a type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit.

Cause related marketing

The term is sometimes used more broadly and generally to refer to any type of marketing effort for social and other charitable causes, including in-house marketing efforts by non-profit organizations. Cause marketing differs from corporate giving (philanthropy) as the latter generally involves a specific donation that is tax deductible, while cause marketing is a marketing relationship generally not based on a donation.

Types

Cause marketing can take on many forms, including:

Product, service, or transaction specific Promotion of a common message Product licensing, endorsements, and

certifications Local partnerships Employee service programs

Marketing ethics

Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. Some areas of marketing ethics (ethics of advertising and promotion) overlap with media ethics.

Frameworks of analysis for marketing ethics Possible frameworks: Value-oriented framework, analyzing ethical problems on the

basis of the values which they infringe (e.g. honesty, autonomy, privacy, transparency). An example of such an approach is the AMA Statement of Ethics.[1]

Stakeholder-oriented framework, analysing ethical problems on the basis of whom they affect (e.g. consumers, competitors, society as a whole).

Process-oriented framework, analysing ethical problems in terms of the categories used by marketing specialists (e.g. research, price, promotion, placement).

None of these frameworks allows, by itself, a convenient and complete categorization of the great variety of issues in marketing ethics

Specific issues in marketing ethics Market research Market audience Pricing ethics List of unethical pricing practices. price fixing price skimming price discrimination variable pricing predatory pricing supra competitive pricing price war bid rigging dumping (pricing policy)

Ethics in advertising and promotion Ethical pitfalls in advertising and promotional

content include: Issues over truth and honesty. In the 1940s and

1950's, tobacco used to be advertised as promoting health.[15] Today an advertiser who fails to tell the truth not only offends against morality but also against the law. However the law permits "puffery" (a legal term).[16] The difference between mere puffery and fraud is a slippery slope: "The problem... is the slippery slope by which variations on puffery can descend fairly quickly to lies."[17] See main article: false advertising.

Online marketing trends

A market trend is a putative prevailing course or tendency of a financial market to move in a particular direction over time.[1] These trends are classified as secular trends for long-term time frames, primary trends for mid-term periods, and secondary trends lasting short times.[2] Traders identify market trends using technical analysis, a framework which characterizes market trends as a predictable price response of the market at levels of price support and price resistance, varying over time.

Online marketing trends

Definition: A form of marketing that combines traditional marketing principles with the unique interactive qualities of the Internet. The purpose is to deliver products and services that satisfy customers. Online marketers devise plans and campaigns to attract customers to a Web site and to encourage them to register their names or purchase products.

Online Marketing

It’s all about the key words

Keywords to the Kingdom

keyword (n.) A word that serves as a key to a code or cipher.

keyword (n.) A significant or descriptive word.

keyword (n.) A word used as a reference point for finding other words or information.

•Definitions of 'keyword' •- 3 definitions - American Heritage Dictionary

What is PPC?

What is CPM?

Other ideas…

Opt-in newsletters Permission-based Email Imbedded advertising in music

downloads & videos Digital downloads of everything from

tests for citizenship to movie trailers will have advertisements geared to a very targeted audience

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