MARKETING

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MARKETING

• Week 6Dr. Thomas Webb

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Marketing - The Meaning Of Life

• Marketing is so basic that it cannot be
  considered a separate function. It is the whole
  business seen from the point of view of the final
  result, that is, from the customers point of
  view!Business success is not determined by the
  producer but by the consumer. Peter Drucker
• BUSINESS IS A CONSUMER SATIFYING PROCESS, NOT A
  GOOD PRODUCING PROCESS. IF YOU REALLY BELIEVE
  THIS AND LIVE THIS, THEN YOU WILL BE SUCCESSFUL!
  Theodore Levitt

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The Marketing Concept!

• WHAT IS MARKETING NOT?
• NOT advertising
• NOT sales
• NOT marketing research
• NOT planning
• NOT cute ads, a hustling salesman, a sex ad, a
  2.99 price, a survey.
• ALL OF THEM AND MORE
• Marketing is not exploitive by nature only by
  those that want to exploit.
• WHAT IS THE MARKETING CONCEPT?
• It is a way of thinking
• Everything starts with the consumer, user or
  client.
• A way of defining the objectives of your business
• At the heart of all organizational strategies
• It is a way of thinking about YOU and your life
• It is the business of every entity and every
  person in an organization, profit/non profit,
  political, education.

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WEBBS 10 CORE PREMISES OF MARKETINGThe
marketing concept is a way to view the world and
live your life!
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Always start your thinking on the outside with
the consumers, the competition and the
environment.

• Most problems arise because you forgetting this
  simple thought!It is a way to think!
• Corollary 1.1 - Listen to the market. If you are
  hard of hearing you make big mistakes!
• Corollary 1.2 - Consumer satisfaction is the
  defining premise.
• Corollary 1.3 - The golden rule is wrong! Do
  unto others as they want to be done unto. Look
  outside, look at consumer needs and define your
  business around that!
• Corollary 1.4 Dont underestimate the consumer.
  They search for value with competence.

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Corollary 1.4 Dont underestimate the consumer.
They search for value with competence

• Buyers are value maximizers.
• This concept has a lot going for it. It assumes
  reasoned decision-making. In most purchases
  people buy TOTAL VALUE. Choice based on
  information, problem solving, experimentation,
  etc.
• The product must create perceived value to the
  buyer
• Look at ALL THE INFLUENCES ON BENEFITS AND COSTS
  When you measure benefits and costs you MUST look
  at the ENTIRE transaction, look broadly at the
  benefits and costs to assess value benefits and
  value can be in use, in perception, and
  acceptance.
• TOTAL VALUE Total Benefits Total Costs
• Benefits Product Service
  Situation Image reactions
• Costs Money time energy
  psychic image reactions

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The Buying Center Roles There are many
participants who have an impact on the buying
decision
User
Buyer
DecisionMaker
ACTION
Gatekeeper
Approver
Influencer
Initiator
KIBDKey Influencer
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Define the real product based on the consumer
needs being fulfilled and the benefits received,
not the physical object.

• This is the single most misunderstood and
  important concept in marketing.
• As long as you define the product as the physical
  object you are selling you are at a significant
  competitive disadvantage.
• Corollary 2.1 The product is what is does NOT
  what it is!
• Corollary 2.2 The product is everything that
  goes into creating it!
• Corollary 2.3 - In the end whether it is a
  physical product, a service, a consumer good or a
  business product, they are the same from a
  marketing perspective.

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3. You are in the business you say you are in,
so define it very carefully. Look broadly. You
may not be in the business you think you are in!

• Roberto Goizueta came to Coke as CEO when
  everyone thought Cokes sales has maxed out,
  mature market. He reframed the view of Cokes
  market share Coca-Cola accounted for less than
  2 ounces of the 64 ounces of fluid that each of
  the worlds 4.4 billion people drank on an
  average day. The enemy is coffee, milk, tea and
  water. He ushered in a huge period of growth.
• Corollary 3.1 -- The Great Buggy Whip Example!
• Corollary 3.2 -- How you define your business
  changes everything!
• Corollary 3.3 --Understanding the real
  competition is key to strategic success

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The Competitive MapA great way to avoid a big
mistake!
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4. You have a position in the consumers mind.
Know what it is. Dont try to be something you
are not! Know what it is.

• Corollary 4.1 -- Do you own a position, a place.
  Or not. Read Positioning Era
• Corollary 4.2 -- Lets define Market segmentation,
  targeting, positioning and differential advantage
  or competitive advantage or USP
• My segments.com http//www.claritas.com/MyBestSeg
  ments/Default.jsp
• LOHAS is a VALS What is it!

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5. Understand the expectation-reality gap and
you will make better decisions and be a better
leader.

• Perhaps the single most important concept in
  management, relationships and understanding
  behavior. And NO management class or book has
  ever said this.
• Corollary 5.1 People almost always do what you
  would predict that they would do, it just isnt
  want them to do something else.
• The concept of trust is usually based on having
  accurate expectations.
• Proper expectations are essential
• Corollary 5.2 Expectations are not the key.
  Reality is not the key.
• The gap is the key
• You understand this and you understand a lot.
• Corollary 5.3 Buyer Satisfaction is also based
  on the difference between expectations and
  reality.
• Satisfaction is NOT based on reality but on the
  Expectation-Reality gap.
• Satisfaction is a function of the products
  perceived performance in relationship to the
  buyers expectations.
• Expectations generated from past experience,
  friends, associates, information, ads all
  wrapped up into your package of expectations.

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6. Go to the gap, avoid the crowd.

• Corollary 6.1 Niches, targets, gaps, holes, that
  is where the action is. It is the passion for
  segmentation.
• Corollary 6.2 Look at the holes in the channels,
  in pricing, in a product line, in what a product
  doesnt do, in the parts the consumer does or
  could do.
• Corollary 6.3 You must find a USP to succeed,
  differentiate every day
• USP is the single most important sales concept I
  have.
• Why us, why me, why select me, what is it about
  me that is different and the customer, company
  wants?
• You, test USP out on you!

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7. Understanding the Diffusion of Innovation is
critical to new product development and knowing
where and how to compete.

• Corollary 7.1 Diffusion Of Innovation Adoption
  Process! People differ markedly in their
  propensity to try new products
• Corollary 7.2 Product Life Cycle - Every product
  goes through a product life cycle, sometimes more
  than one. Strategy is different in each state of
  of the cycle because the environment is
  different.

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Corollary 7.1 Diffusion Of Innovation
Innovators Early Early
Late Laggards Adopters Majority Majority
People differ markedly in their propensity to try
new products
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Corollary 7.1 Diffusion Of Innovation The
Stages

• Innovators Seek out pioneer products,
  venturesome, independent, not opinion leaders
• Early adopters, Opinion leaders, legitimizes
  product, try new ideas, link to mass market
• Early Majority Given legitimization, they
  accept, prove success of mass market. Deliberate
  but innovative, determine success of product
• Late Majority Lag in adoption, when they get in
  it means slowdown in adoption rate and market
  saturation. Skeptical, harder to change
• Laggards, Tradition bound, Ludites, laggards.
• Three Key Participants
• Change agents tend to be outside the major
  groups, try to influence early adopters in
  acceptance - Tipping point, agricultural agents,
  
• Translators. MUST have translators between
  Innovators and Early Adopters and Early adopters
  and Early Majority.
• Gatekeepers. Key decision maker on when
  innovation accepted, housewife on food products

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Corollary 7.2 Product Life Cycle
Market Market Market
Market Introduction Growth Maturity
Decline
Strategy in each stage is different because the
environment is different in each stage
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8. Always deal with the entire system. Never
leave off the ends. The opportunities are in the
nocks and crannies that is where the action is!

• Corollary 8.1 Where does a channel start and end?
  The crux is to be inclusive. Look at the entire
  line from beginning to end and go back even
  further. The broader the view, the greater the
  opportunities.
• Go to the very finest detail - what shelf is it
  on, how high is it.
• Ask the question, where was it before this step
  and where is it going after this step.
• Corollary 8.2 A channel can define the product,
  it can determine your competition.
• Corollary 8.3 Going into a new channel is often a
  failure. They just dont know it and make major
  mistakes,

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9. You are communicating with your customers
every day so look at what you are saying. Always
consider an integrated marketing communications
program.

• Notice I said communications not advertising.
• I also didnt say TV ads which are very
  expensive. Ads are the least of the issue for
  most small businesses. BUT communications is
  KEY.
• Corollary 9.1 It is essential to integrate all
  the elements of a communications program and have
  them reinforce the others
• Corollary 9.2 Personal Influence Channels . Buzz
  doesnt happen by accident.
• Corollary 9.3 Personal Selling - The Hercules of
  Marketing. At the heart of personal sales is the
  marketing concept and knowing your USP.

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Corollary 9.1 It is essential to integrate all
the elements of a communications program and have
them reinforce the others
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10. Price is a lot more than price. It generates
revenue and represents all the elements of the
product.

• Corollary 10.1 Pricing should be done last
  because it integrates the entire marketing
  strategy into a single number. Sam Pardue,
  Lensbabies
• Corollary 10.2 Price is the only element that
  generates revenue and it is the easiest to
  adjust, BUT it is also a critical element of
  strategy with major communications and financial
  ramifications.
• Corollary 10.3 Price is everywhere, name
  something that doesnt have a price?

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WEBBS 10 PREMISES OF CREATIVE LIVINGHere are
some core principals that are related to
marketing, management and life!
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WEBBS 10 PREMISES OF CREATIVE LIVING

• Go outside the paradigm to find the answer.
  Think sideways! Greatness often is the ability
  to go outside the existing paradigm then the new
  idea becomes obvious.
• Often things arent what they seem, dont assume
  you know.
• Never, ever base a decision on sunk costs. It has
  destroyed companies and countries.
• Dont forget what made you successful.
• Usually it is the little things that make the
  difference. Big thinkers are worthless, if that
  is all they can do.
• Allow failure in order to succeed.
• Always have people around you who are better than
  you are
• Fun and humor are important. Take yourself and
  everything around you with a grain of salt.
• The ethics and morality of an organization do not
  come from marketing but from the leadership. Set
  clear values.
• The marketing concept is a way to view the world
  and live your life everyday. If you do that, you
  will be successful.