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Introduction to marketing - Coggle Diagram
Introduction to marketing
Goods vs Services
Services
:
-Intangible activities or benefits that organisation provides to consumers in exchange for money/something else of value
Goods:
-Physical objects that satisfy customer needs
4 'I'S (4 service characteristics)
Intangibility:
-services cannot be seen, tasted, felt, heard or smelt before they are purchased
Issue?
Difficult for customers to evaluate the service against competing services
How to manage?
Tangible evidences to signal quality of the service
Inseparability:
-service are inseparable
-difficulty in separating deliverer(service employer)
of the service from the service itself.
Issue?
Both employee-customer and customer-customer interactions can affect customer satisfaction
How to manage?
-select right customer
-educate customer in service delivery system
-facilitate positive customer-customer interactions
Inconsistency:
-service are variable/inconsistent
-depend on who provides, when and where they are provided
Issue?
service inconsistency leads to
customer disappointment
How to manage?
-standard operating procedures (SOP)
-training
Perishability:
-Services cannot be stored for later use or sale
Issue?
unsold inventory for any point of time results in loss of revenue
How to manage?
-capacity management
-no show charges
-non-refundable bookings
What is marketing
Factors needed for marketing to occur
Two or more parties with unsatisfied needs: Market
Desire and ability to satisfy these needs:
Organization, Suppliers, Stakeholders
A way for the Parties to communicate: Marketing
Program, Intermediaries
Something to exchange: Marketing Program
Marketing is a process
Need:
-state of felt deprivation
-includes physical, social and
individual needs (refer to Maslow’s Hierarchy of Needs)
Want:
-form that a human need takes and is shaped by culture & personality
Demand:
-exists when you have the purchasing power to satisfy your wants.
Customer value
-difference between the benefits customer receives from owning / using a product and the costs of obtaining the product
customer value= benefits - costs
Marketing management philosophies/strategies
1. Production concept
-consumers prefer highly affordable products that are easily available
-company should improve production and distribution systems
Problem: not customer-focused
E.G. henry ford and the mass production of motor cars
2. Product concept
-prefer existing products and products forms. Buy products that offer the most in quality, performance and innovative features
-company should focus on developing better versions of these products.
Problem: focus on products than customer and may neglect wider market trends
E.G. Apple iPhones
3. Sales concept
-consumers will not buy enough products unless company undertakes large selling and promotion efforts
-company's aim to maximise sales without worrying about customer satisfaction
Problem: create some customer value
but not customer satisfaction
E.G. insurance
4. Marketing concept
-achieving company goals depends on determining the needs and wants of target markets and delivering desired satisfaction than competitors
-company's focus to create long term customer relationships and make profit by creating and maintaining customer satisfaction
E.G. ritz- carlton hotel
5. Marketing 3.0
-extends concept of customer value beyond the customer to include society's well-being. calls for sustainable marketing
-marketing 3.0 organisations are values-driven, not value driven
E.G. the body shop
Who and How company build relationships with:
Customer relationship management
-overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
-covers acquiring, engaging, and growing/retaining customers
Example: Frequent Flyer Programs, Social
Media Channels
Partner relationship management:
-working with those inside and outside the company to bring more value to customers.
Example: supplier, distributors
Customer equity:
-total combined lifetime value(LTV) of all the company's current and potential customers.
-compared to market share, customer equity is a better measure of a company's future performance.
higher customer equity= more loyal profitable customers
The impact of digital marketing
What is digital marketing:
-achieving marketing objectives through digital technologies/channels
Examples: online marketing, mobile marketing, social media marketing
Understanding digital marketing:
-some marketers believe that digital marketing is an entirely new form of marketing although instead of just channel.
-while it requires different skills due to its more real-time and data-driven nature, it still needs to be part of an integrated marketing program to be effective.
Impacts of digital marketing
Speed of interaction:
-social media channels have changed the expectations that customers have to business response times.
-This means that business needs to carefully structure customer service team to monitor and proactive deliver 'instant' communication via such channels
Content overload:
-digital marketing has resulted
in so much content.
-business needs to be even more creative in how to stand out from the crowd and engage customer mindfully.
Data overload:
-data available from digital marketing
is a blessing and curse.
-vital in making data-driven decisions but being able to sense and interpret the data requires businesses to set up good data infrastructure and hire talents to generate insights