Needs, Want, Demand
Human needs are the basic
requirements and include food clothing and shelter. An extended part of needs
today has become education and healthcare.
Wants are the form human needs take as they
are shaped by culture and individual personality. Any person can eat food
to feed himself, but he want to eat fast food, fried rice and Chinese food.
Cloths are required for a person to cover himself but we can see people wearing
jeans, suit just because of culture influence.
Demand is want backed by
buying power, human being have unlimited wants but resource are limited in the
world. When an individual wants something which is premium, but he also has the
ability to buy it, then these wants are converted to demands. Example of demands
– Cruises, BMW’s, 5 star hotels etc.
Value and Satisfaction
Customers often do not judge product
values and costs accurately or objectively. They act on perceived
value. For example, does FedEx really provide faster, more reliable
delivery? If so, is this better service worth the higher prices FedEx charges?
The U.S. Postal Service argues that its express service is comparable, and its
prices are much lower. However, judging by market share, most consumers
perceive otherwise. FedEx dominates with more than a 45 percent share of the
U.S. express-delivery market, compared with the U.S. Postal Service's 8
percent. The Postal Service's challenge is to change these customer value
perceptions.
Customer satisfaction depends on a
product's perceived performance in delivering value relative to a buyer's
expectations. If the product's performance falls short of the customer's
expectations, the buyer is dissatisfied. If performance matches expectations,
the buyer is satisfied. If performance exceeds expectations, the buyer is
delighted. Outstanding marketing companies go out of their way to keep their
customers satisfied. Satisfied customers make repeat purchases, and they tell
others about their good experiences with the product. The key is to match
customer expectations with company performance. Smart companies aim to delight
customers by promising only what they can deliver, then delivering more
than they promise.
Marketing Planning
A typical small business marketing plan
might include a description of its competitors, the demand for the product or
service, and the strengths and weaknesses from a market standpoint of both the
business and its competitors.
- ANALYSIS.
- OBJECTIVES.
- STRATEGIES.
- TACTICS.
- CONTROLS.
- COMPETITION
STP (Segmentation, Targeting & Positioning)
The first step in the
process of product promotion is Segmentation. The division of a broad
market into small segments comprising of individuals who think on the same
lines and show inclination towards similar products and brands is called Market
Segmentation. Market Segmentation refers to the process of creation of small
groups (segments) within a large market to bring together consumers who have
similar requirements, needs and interests.The individuals in a particular
segment respond to similar market fluctuations and require identical products.In
simpler words market segmentation can also be called as Grouping.
Targeting, Once
the marketer creates different segments within the market, he then devises
various marketing strategies and promotional schemes according to the tastes of
the individuals of particular segment. This process is called targeting. Once
market segments are created, organization then targets them. Targeting is the
second stage and is done once the markets have been segmented.
Positioning,
Positioning
is the last stage in the Segmentation Targeting Positioning Cycle.Once the
organization decides on its target market, it strives hard to create an image
of its product in the minds of the consumers. The marketers create a first
impression of the product in the minds of consumers through positioning.Positioning
helps organizations to create a perception of the products in the minds of
target audience.
Market Offerings, Brands
Market Offer – some combination of products, services, information, or experiences
offered to a market to satisfy a need or want.
A brand is an offering from a
known source. A brand name such as McDonald's carries many associations in the
minds of people: hamburgers, fun, children, fast food, convenience, and golden
arches.
Marketing Environment
Internal Environment, A useful tool for
quickly auditing your internal environment is known as the Five Ms which are
Men, Money, Machinery, Materials and Markets. Here is a really quick example
using British Airways. Looking internally at men, British Airways employees
pilots, engineers, cabin crew, marketing managers, etc. Money is invested in
the business by shareholders and banks for example. Machinery would include its
aircraft but also access to air bridges and buses to ferry passengers from the
terminal to the aircraft. Materials for a service business like British Airways
would be aircraft fuel called kerosene (although if we were making aircraft
materials would include aluminium, wiring, glass, fabric, and so on). Finally
markets which we know can be both internal and external. Some might include a
sixth M, which is minutes, since time is a valuable internal resource.
Microenvironment, The microenvironment
is made from individuals and organizations that are close to the company and
directly impact the customer experience. Examples would include the company
itself, its suppliers, other marketing input from agencies, the markets and
segments in which your business trades, your competition and also those around
you (which public relations would call publics) who are not paying customers
but still have an interest in your business. The Micro environment is
relatively controllable since the actions of the business may influence such
stakeholders.
Marketing Channels
Communication
channels—deliver and receive messages from target buyers. Include traditional
media, non – verbal communication, and store atmospheric.
Distribution
channels—display, sell, or deliver the physical product or service(s) to
the buyer or user.
Service
channels—carry out transactions with potential buyers by facilitating the
transaction.
Supply Chain
A system of organizations,
people, technology, activities, information and resources involved in moving a
product or service from supplier to customer. Supply chain activities transform
natural resources, raw materials and
components into a finished product that is delivered to the end customer.
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