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Applied Marketing Notes 1

The document discusses key marketing concepts including: 1) Marketing orientation focuses on customer needs and wants to build long-term relationships, producing what is demanded rather than what the organization is good at producing. 2) Marketing is an exchange process that should benefit both parties. 3) A key role of marketing is to create and maintain customer, brand and stakeholder value by monitoring markets and the business environment. 4) Ansoff's Growth Strategy Matrix outlines the risks and opportunities of market penetration, market development, product development, and diversification strategies.

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176 views

Applied Marketing Notes 1

The document discusses key marketing concepts including: 1) Marketing orientation focuses on customer needs and wants to build long-term relationships, producing what is demanded rather than what the organization is good at producing. 2) Marketing is an exchange process that should benefit both parties. 3) A key role of marketing is to create and maintain customer, brand and stakeholder value by monitoring markets and the business environment. 4) Ansoff's Growth Strategy Matrix outlines the risks and opportunities of market penetration, market development, product development, and diversification strategies.

Uploaded by

Mobeen Khan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Applied

Marketing
Session 1
Final Notes
Marketing = the management process responsible for anticipating, identifying and
satisfying customers profitably.

Production orientation = where the emphasis is on making products as efficiently


and cost-effectively as possible making them more affordable regardless of whether
this is what the customer wants.

Product orientation = where organisations concentrate on the product itself and not
on customers’ needs.

Sales orientation = where the selling function is the most important in the business.
They sell what they have rather than what the customer needs.

Marketing orientation = where the business focusses on customer needs and


wants in order to build long term relationships and loyal customers. Producing and
marketing products that are demanded rather than what the organisation is good at
producing.

Exchange Process = Marketing is often referred to as an exchange process. The


management of this exchange is a key process in marketing and should lead to each
party involved in the exchange being better off than they were before.

Satisfying Customer Needs = Marketing is said to be about satisfying customer


needs and wants ’supplying the right product at the right time in the right place at the
right price with the right support services’.

Catalyst for Change = Marketers need to respond to these changes in a proactive


not reactive way to ensure they continue to satisfy their customers.
Explain Marketing’s Role in Business = The key role of marketing within business
is to create and maintain customer, brand and stakeholder value.

It is marketing’s responsibility to monitor and track market and customer behaviour


through the collection of market intelligence.

Monitoring of the internal and external business environment is fundamental to


organisations remaining competitive and staying ahead of the market. In this way
they become proactive in their response to change rather than reactive.

Customer Value

Customer value = Perceived benefits – perceived costs


Identifying Opportunities for Growth

Ansoff’s Growth Strategy Matrix

The lowest risk strategy is for a company to sell its existing products into existing
markets – it knows its customers, has established channels and so on. This strategy
he termed Market Penetration.

The second strategic option is Market Development, which means finding new
markets for existing products.

The third strategic option is Product Development and this means developing new
products for existing markets or customer groups.

Finally, the riskiest strategy of all is diversification – developing new products for new
markets which Ansoff gave a risk factor of 16.
What Marketers Do?

Who does the Marketing Department have to work with?

Finance

• Set budgets for marketing activities and marketers need to often justify expenditure
to demonstrate how planned activities are contributing to the ‘bottom line’.

• Marketing need more flexibility to react to changes and take a more long-term view
(short-term financial loss possible).

• Marketing also might require flexible credit terms to build customer or distributor
relationships (finance want stricter terms)

Production

• Production would prefer standardised orders, while marketing want customised


orders or creation of varied models

• Promises made in marketing communications need to be realised by production –


so quality of goods is important.

R&D
• Marketing needs to communicate customer wants and requirements to R&D so that
new products and services are developed in line with these.

• R&D might focus on functionality, but marketing will want to focus on benefits and
selling points.

• Marketing will want to be first to the market, while R&D will want longer lead times

Sales

• Sales want to sell as much as possible, but marketing want to build customer
relationships (loyalty and repeat orders) through satisfaction

• Provide the manpower

• Marketing be prepared to justify staff costs

Test Your Knowledge

Marketing can be best defined as:

1. Satisfying customers profitably

2. Improving the quality of life for consumers

3. Producing the right product and selling it

4. Keeping the organisation competitive


The Marketing Planning Process

A systematic process of assessing marketing opportunities and resources,


determining marketing objectives and developing a thorough plan for implementation
and control

Staged and Cyclical Process


What is Branding?

What does Brand Really Mean?


A brand creates an expectation in the minds of customers or users about what they
are going to get from that brand. These promises can be seen in three levels; what
the brand does for the customer (its benefits), what it says about them (luxury and
and what the organisation and customer have in common (a desire for low-cost, for
example, or status).

Brand Positioning

Brand Positioning is a managerial process of deliberately designing a marketing mix


that will lead consumers to perceive a brand as having a distinctive image in
comparison to brands offered by competitors.

Test Your Knowledge

Which of the following is the first step in the marketing planning process: (SOSTAC)

a. Objectives
b. Strategy
c. Situational analysis
d. Tactics

The primary function of a marketing department is to:

1. Act as a bridge between the customer and organisation, understanding and


championing customers

2. Improve organisation performance by increasing sales, profits and market


share

3. Effectively segment and target the market, increasing competitiveness

4. React to factors in the environment, ensuring the maintenance of sales and


profits

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