Understanding Marketing

Cheatsheet Content

### What is Marketing? - **Kotler's Definition:** Creating customer value & relationships to capture value in return. - **Goal:** Understand needs, solve problems with products/services, build lasting relationships. - **Example:** Apple sells an ecosystem, not just a phone, fostering lifelong users. ### Core Concepts | Concept | Explanation | Example | | :----------- | :------------------------------------------------ | :------------------------------------------ | | **Needs** | Basic requirements (e.g., food, shelter). | Hunger. | | **Wants** | Needs shaped by culture/personality. | Hunger for pizza. | | **Demands** | Wants backed by buying power. | Can afford pizza. | | **Offerings**| Products, services, experiences. | Uber's transportation service. | | **Value** | Perceived benefits minus cost. | Smartwatch working like a premium one. | | **Satisfaction** | Meeting or exceeding expectations. | Hotel delivers on sea view promise. | | **Exchange** | Obtaining something by giving something in return. | Buying groceries. | | **Relationships** | Building long-term engagement. | Starbucks rewards program. | ### The Marketing Process (5 Steps) 1. **Understand Marketplace & Needs:** Market research, customer pain points. - **Example:** Netflix studying local content preferences. 2. **Design Customer-Driven Strategy:** Target market, value proposition. - **Example:** Nike targets athletes with "Just Do It". 3. **Construct Integrated Program (4 Ps):** Product, Price, Place, Promotion. - **Example (Domino's):** Hot pizza, affordable, online + store, "30 mins or free." 4. **Build Profitable Relationships:** CRM, customer service, emotional branding. - **Example:** Amazon's personalized recommendations. 5. **Capture Value from Customers:** Repeat business, word-of-mouth, brand loyalty. - **Example:** Apple users buying multiple Apple devices. ### Marketing Orientations | Orientation | Focus | Explanation | Example (Bangladesh) | | :----------------------- | :--------------- | :------------------------------------------------------ | :----------------------------------------------------------- | | **1. Production** | Efficiency & Low Cost | Mass production, affordability. | Walton (affordable electronics). | | **2. Product** | Quality & Innovation | High-quality features, innovation. | Bata (durability in premium shoes). | | **3. Selling** | Aggressive Promotion | Pushing existing products, sales. | Insurance agents (door-to-door). | | **4. Marketing** | Needs First | Customer needs, customized offerings. | Daraz (personalized suggestions). | | **5. Societal Marketing**| Profits + Society | Balance company goals with social/environmental welfare. | PRAN-RFL (rural employment), Grameen Shakti (solar energy). | ### Selling vs. Marketing Concept | Basis | Selling Concept | Marketing Concept | | :------------- | :-------------------------------------------- | :------------------------------------------------ | | **Start** | Factory / Product | Market / Customer Needs | | **Focus** | Existing products | Customer needs | | **Means** | Selling & promotion | Integrated marketing (4 Ps) | | **Goal** | Profit via sales volume | Profit via customer satisfaction | | **Orientation**| Inside-out (company-centric) | Outside-in (customer-centric) | | **Time Frame** | Short-term | Long-term | | **Risk** | Dissatisfaction | Builds trust | ### Societal Marketing Considerations - Balances: **Consumer wants**, **Company needs**, **Society's long-term interests**. - Aims for ethical, sustainable, and community-focused decisions. ### Creating Value & Relationships - **Customer Value:** Perceived Benefits - Total Cost. (e.g., IKEA's affordable style). - **Customer Satisfaction:** Performance vs. Expectations. - Performance > Expectation = Delight (e.g., Zappos' excellent service). - Performance ### Capturing Value from Customers - **Grow Share of Customer:** Percentage of a customer's purchases a company captures. - **Example:** Meena Bazar getting all a customer's grocery needs. - **Strategies:** Cross-selling, loyalty programs, personalization. - **Build Customer Equity:** Total combined Customer Lifetime Values (CLV). - **Example:** Apple's ecosystem creates high CLV. - **Drivers:** Value, Brand, Relationship Equity.