1. COMP113 Web 2.0 and Online Communities introduction to marketing for web 2.0 projects Phil Osborne summer school 2008

2. 3. 4. 5. one size fits no one 6. 7. 8. 9. what is marketing?

as old as business itself

misunderstood

• marketers reputation as bad as politicians, lawyers, used car salesman

marketing as selling

• most people perceive marketing as promotion

• • advertisements, sales promotions

• • convincing people to consume / purchase things they dont need

10. beyond selling things

marketer as agent for the firm

marketer as agent for the customer

good marketing decreases the need for promotion

• customers as advocates

• word of mouth and word of mouse

ultimate aim is to understand the market (particularly customers) and align the companies efforts

the right product, at the right place, at the right time, at the right price

11. the four Ps framework

a resource allocation model for organisations

• what products?

• • what is the organisation offering / taking to market

• • what are your customers buying / what needs are being satisfied

• what price?

• • chief determinant of value, total cost of ownership

• what places?

• • where and when can the market access your offering

• what promotion?

• • how does the market become aware of your offering

need to fit these with overall strategy / purpose of the organisation

12. integration is the key

each element of the marketing mix is interrelated

marketing does not take place in a vacuum

• customers are not dumb

• competitive response

• external factors

managing expectations

• what are customers buying

• • what needs is your application satisfying

• dont sell what you cant deliver

• • easy to sell someone something once

13. first principle

selling concept

• belief that consumers wont buy enough unless a large scale selling and promotion program undertaken

• • focus on transactions

• • example _ as seen on TV products

• • • but wait theres more

marketing concept

• belief that the most successful approach is to determine the needs of the customer and satisfy them more effectively (and efficiently) than competitors

• • focus on creating value for (with) customers

• • example _ Google

14. marketing as philosophy 15. real marketing attempts to

know and understand the customer so well that that market offering fits him/her/them and sells itself

• though the marketer will have to let the customer know it is available

create enough value so both the customer and organisation are satisfied

it should result in a customer who is ready to interact (again and again)

16. value

generally represented by money in exchange

• can be non economic in both benefit and cost calculation

• • • customer benefits can include emotional, status

• • • costs can include time, convenience

subjective

determined by the user

17. implications

you (producer) cannot produce value

• only value propositions

requires users!

• co-creation

you wont know what they value!

• flexible, adaptable, customisable

18. the marketing management framework

the addition of the word management suggests concern with control and efficient allocation of resources

analysis

• research, understanding the environment, what is happening now and likely to happen in the future

planning

• where do we want to be

implementing

• getting things done

control

• measuring progress, taking corrective action

19. Plan HQ 20. marketing can help the STP process 21. segments

there are a number of different ways to identify the composition of a market using geographic, demographic, psychographic and behaviouristic variables

in practice, a marketer will use as many segmentation variables as possible to get a clear description of the segment

describing segments of a market lets us profile who the typical customer in that segment will be

this picture is used to determine which segments within the market we will target

22. targeting

evaluate the attractiveness of segments

AND

make a choice which segments to serve

target markets are those segments of a market at which we will direct marketing activity

developing a marketing mix that will appeal to that segment

23. positioning

positioning aims to shape the way consumers perceive the offer by creating a distinct image of the product in the consumers mind

positioning works to determine a products positionin relation to competing productsand has the effect of influencing peoples opinions as it recognises that consumers set a products position based on their understanding of it

24. choosing a positioning strategy

products position - the way the product isdefined by consumerson important attributes

• the place the product occupies in consumers minds relative to competing products

marketers must:

• plan positions to give their offerings the greatest advantage in selected target markets

• design marketing mixes to create these planned positions

25. so

you will be expected to understand the market and justify your decisions

• by investors (venture capitalists, bankers etc)

• by employers

• KNOWING THIS STUFF GIVES YOU A COMPETITIVE ADVANTAGE

market information makes it easier to make decisions

marketing cant be considered an afterthought

• retro-fitting anything makes it harder

26. inspiration? 27. books