1.Marketing and Customer Care

INF 3101MARKETING AND CUSTOMER

CARE

Course facilitator:

Ibrahim A. Ibrahim: MBA -ITM, ADIT MBA -ITM, ADIT [email protected]

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INTRODUCTIONCoverage expected at the end of this session: Communicate value through effective

marketing strategy Send an effective message to a variety of

client audience Influence customer to the purchase Develop effective marketing strategies fit

for different products

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INTRODUCTION Establish and maintain effective bond

with customers Develop skills to communicate with

variety of audiences worldwide Assess market opportunity and

increasing competitive advantage to the organization.

Increase new customer base and retain the existing customers

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“…everybody exists in the business environment because s/he sales something.” – (Buskirk and Buskirk, 1992)

To organisations/businesses, the above implies that their success is very much dependent on its marketing activities.

Why be concerned about marketing?

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What a market is:

“… is a set of all actual and potential buyers of a product (tangible goods or services).”

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What a market is:

“… consists of all potential customers sharing a particular need or want who might be willing and able to engage in exchange in order to satisfy that need or want.”- (Kotler, 1996)

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Defining marketing (1)

There are many definitions. Including:

1. “The all-embracing function that links the business with customer needs and wants in order to get the right product to the right place at the right time.”

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2. “The achievement of corporate goals through meeting and exceeding customer needs, better than the competition.”

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3. “The management process that identifies, anticipates and meets customer requirements efficiently and profitably.”

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4. “as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. ”

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5. “A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products/services and value with others"

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Which definition is right?

In short, they all are. They all try to explain the essence of marketing:

Marketing is about meeting the needs and wants of customers

Is a business-wide function – it is not something that operates alone, away from other business activities

is about understanding customers and finding ways to provide products (goods or services) which meet customers’ demand

Attract new customers by promising superior value Keep and grow current customers by delivering

satisfaction.

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What is Marketed?

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What is Marketed?

Goods Places Properties Organizations Persons

Services Events Experiences Information Ideas

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Marketing: Goods, Services and Ideas

Consumer goods are products purchased by consumers for personal use

Industrial goods are products used by companies to produce other products

Services are intangible products that can be purchased

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Marketing conceptscore concepts

A NEED is a basic underlying concept of marketing, and can be defined as a "state of felt deprivation“ of basic satisfaction ( Food, Clothing, Shelter, Belonging etc.

An unsatisfied need becomes a WANT when a person looks for objects that will satisfy the need.

Wants are desires for specific satisfiers of the deeper needs.

Needs are few and wants are many 16

The estimated ability of a product to satisfy a set of felt needs is referred to as VALUE (or utility)

Value is the ratio between what the customer gets and what he gives

While, the act of obtaining a desired product from someone by offering something in return after negotiations and agreement is EXCHANGE.

Marketing conceptscore concepts …..cont.

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DEMAND is a want for a specific product supported by an ability and willingness to pay for it.

PRODUCT: “An offering that can satisfy a need or want.”

Goods; Services; Experiences; Events; Persons; Places; Properties; Organizations; Information; Ideas.


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SATISFACTION: “Person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectations. ”

MARKET: “The group of Buyers & Sellers interested in negotiating the terms of purchase / sale of goods or services.


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Holds that customers will favor products that are available and highly affordable

Here marketers focus on improving production and distribution efficiency

Marketing conceptsThe Production Concept

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Seems appropriate when:

1. Demand for a product exceeds supply; or

2. When product cost is very high, and improved productivity is needed to bring costs down.

Marketing conceptsThe Production Concept…cont.

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Marketing concepts The Product Concept

Holds that customers will favor the highest quality products with the greatest performance and features

Here marketers focus on continuously seeking out new product improvements

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Marketing concepts The Selling Concept

Has the view that if left alone, customers may not buy more of the company’s products or services

Aggressive selling tactics are therefore sought as the means to making more sales

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Marketing concepts The Marketing Concept

The organization concentrates on finding out the needs and wants of its target customers, and then delivers the desired satisfactions more effectively and efficiently than competitors

The focus of management is on the

customers’ ultimate satisfaction

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Marketing concepts The Societal Marketing Concept

Is similar to the marketing concept, except that it also takes into account the society's well-being

The organization should deliver the desired satisfactions in a way that maintains or improves the customers’ and the society's well-being

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Note that the first 3 philosophies - production, product and selling – are more inclined on the firm’s side.

The last 2 concepts - marketing and societal marketing – are more inclined on the customers’ side.

The commonality is that they all have the same goal: organizational profit.

The choice on which philosophy to adopt depends on the firm’s situation.

Conclusion

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Marketing EnvironmentMarketing Environment: The actors and forces outside marketing that

affect marketing management’s ability to build and maintain successful relationships with target customers

Environment offers both opportunities and threats.

Marketing intelligence and research used to collect information about the environment

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Marketing EnvironmentMicroenvironment Includes the actors close to the company that

affect its ability to serve its customers.Macroenvironment

Involves larger societal forces that affect the microenvironment. Considered to be beyond the control of

the organization.

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Marketing Environment The Company’s Microenvironment Company’s Internal Environment:

Areas inside a company. Affects the marketing department’s

planning strategies. All departments must “think consumer” and

work together to provide superior customer value and satisfaction.

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Marketing Environment Actors in the Microenvironment

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Marketing must consider other parts of the organization including finance, R&D, purchasing, operations and accounting

Marketing decisions must relate to broader company goals and strategies

Marketing Environment MicroenvironmentActors Actors

1. The company2. Suppliers3. Marketing

intermediaries4. Customers5. Competitors6. Publics

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Provide resources needed to produce goods and services.

Marketers must watch supply availability and pricing

Effective partnership relationship management with suppliers is essential

Most marketers treat suppliers like partners.

Marketing Environment Microenvironment



ActorsActors

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Help to promote, sell and distribute goods to final buyers

Include resellers, physical distribution firms, marketing services agencies and financial intermediaries

Effective partner relationship management is essential




ActorsActors

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The five types of customer markets Consumer Business Reseller Government International




ActorsActors

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Conducting competitor analysis is critical for success of the firm

A marketer must monitor its competitors’ offerings to create strategic advantage




ActorsActors

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porter's five forces framework




ActorsActors

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A group that has an actual or potential interest in or impact on an organization

Seven publics include: Financial Media Government Citizen-action Local General Internal




ActorsActors

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Marketing Environment The Company’s Macroenvironment The company and all of the other

actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company.

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Marketing Environment The Company’s Macroenvironment

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Marketing Environment The Company’s Microenvironment Demographic:

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

Marketers track changing age and family structures, geographic population shifts, educational characteristics, and population diversity.

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Pair with another student to discuss the following questions: In what ways does the buying behavior of

you and your parents differ? In what ways does the buying behavior of

you and your grandparents differ? What selling strategies would work best for:

You Your parents Your grandparents

Interactive Student Assignment

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Marketing Environment The Company’s Microenvironment Demographic:

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

Marketers track changing age and family structures, geographic population shifts, educational characteristics, and population diversity.

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Marketing Environment The Company’s Microenvironment Economic Environment: Consists of factors that affect consumer purchasing

power and spending patterns. Changes in Income 1980’s – consumption frenzy

1990’s–“squeezed consumer” 2000’s – value marketing

Income Distribution Upper class Middle class Working class Underclass

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Marketing Environment The Company’s Microenvironment Natural Environment:

Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities

Trends Shortages of raw materials Increased pollution Increased government intervention

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Marketing Environment The Company’s Microenvironment Technological Environment Changes rapidly. Creates new markets and opportunities but also

turns many existing products extinct. Challenge is to make practical, affordable

products. Safety regulations result in higher research

costs and longer time between conceptualization and introduction of product.

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Marketing Environment The Company’s Microenvironment Political Environment Consists of laws, government agencies and

pressure groups that influence or limit various organizations and individuals in a given society Legislation affecting businesses worldwide

has increased Laws protect companies, consumers and the

interests of society Increased emphasis on socially responsible

actions

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actions

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Includes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society.

Increasing Legislation

Changing GovernmentAgency Enforcement

Increased Emphasis on Ethics& Socially Responsible Actions

Marketing Environment The Company’s MicroenvironmentPolitical Environment

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actions

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Marketing Environment The Company’s Microenvironment Cultural Environment Made up of institutions and other forces that

affect a society’s basic values, perceptions, preferences and behaviors.

Core beliefs and values are passed on from parents to children and are reinforced by schools, business, and government.

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Marketing Environment The Company’s Microenvironment

Themselves Identify with brands

for self-expressionOthers

Recent shift from “me” to “we” society

Organizations Trend of decline in

trust and loyalty to companies

Society Patriotism on the rise

Nature “lifestyles of health

and sustainability” (LOHAS) consumer segment

Universe Includes religion and

spirituality

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1.Marketing and Customer Care

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