● Marketing definition
○ Traditional
■ Selling promotions
■ Advertisements on tv, radio
○ Creating a relationship with customers
○ Ongoing process, not a one time fix\like a friendship, needs maintenance and
keeping it alive
○ What is the value from the customenrs and the company value to them
○ Give and take from both ends
○ Process steps
■ Understand needs
● Need to listen and know about them
● education
■ Design a plan and strategy to approach said need
■ Do something/take action
■ Build the relationship
● Consistency and keepign them with the company,
■ Capture value and see results.
● Understanding
○ Need, Wants and demands
■ Need = Basic sustenance, essentials, food, housing, safety, human
nature.
■ Wants = non-essential, quality products, shaped by culture and
personalities of each individual.
● Ex: I am hungry
○ Need = eat?
○ Want = what to eat?
■ Demands = personalized preferences = if you have the resources to
satisfy both need and want, it becomes a demand
● Ex: rich person with high maintenance lifestyle needs a car, wants
a lambo, has the means to have a lambo = demand
○ Market
■ The collection of customers
○ Market offerings
■ What do they offer with this relationship (both ends)
○ Customer value and satisfaction
■ Meeting expectations
■ Ex: Buys controller for 50& but only has 2 buttons, unhappy
○ Exchanges and rels
■ SOmething to stand out to customers
● System
○ Suppliers
■ Company
■ Competitors
● Marketing intermediaries
● Final customers
● Design
○ Where to begin?
■ Which customers are we serving?
■ Cannot make everyone happy
■ Do not waste resources to make all happy
■ Divide consumers into broad groups
● Ex: dividing by age
● Target of my product is kids
■ Must pick only one to be successful
● Ex: Dollarama
● Target is lower class, less affluent
○ How to serve them best?
■ Value proposition
● Set of benefits or values promised to be delivered to the customer
■ Why to buy our brand over the other
● Ex: Amazon
● Speed and availability on demand
● Whatever you want they have it
● Differentiated by this factor
● Became the default choice for customers
● Ex: Skyscanner
● Cheap asf flights
● Approach
○ What does the company prioritize when serving customers once chosen?
○ When creating the product, how do I design it?
■ Production concept
● Prioritizing cost effectiveness and keeping prices down, efficiency
■ Product concept
● Want to deliver the best quality product, good design, regardless
of production cost, features and performance
■ Selling concept
● Focused on the transactions and the numbers sold. Product is
made, and just want to sell it, focusing on telemarketing and you
just want to sell it.
● Inside out = already have it inside = want it outside
■ MArketing concept
● Ourside in = getting customers inside the company
● nside out" refers to a strategy where a company focuses on its own
internal strengths and capabilities first, developing products or services
based on what they can do well, then trying to find customers for them,
while "outside in" means prioritizing customer needs and market trends
first, designing products or services specifically to address those needs,
essentially starting with the customer perspective and working inwards
■ Societal marketing concept
● Society’s welfare, community awareness, ethical manifacturing
and selling
● Taking action
○ The 4ps
○
■ Product
● Specifiy quality and features
■ Price
● How much will it cost to make and to sell
■ Promotion
● Publicity and sales promotion
■ Place
● In store, worldwide, where is it offered?
○ How to make? How to price and sell? Where to sell? And how to let people
know?
○ Percieved value and satisfaction
■ If the promised value is too little customers will not come even if yu deliver
that perfectyl?
○ Digital age
■ Customer engagement = company crates content to pull in customers
■ Consumer generated marketing = Customers spread ideas and content,
self fulfilling marketing, phone is a measn to advertise
■ Companies have free access to data through likes comments and more
instead of asking for feedback throug suveys
■ Anything is ad space = batroom stalls, billboards, etc.
■ Customers more prone to respond to negative experiences online
■ Keeping up with competitors to not be poutdated since word gets around,
iphone muts have new phone if samsung has new one\
■ Associatebrand with visual input = hashtag with instagram everywhere
■ Take a stance to avoid negatv reactions even if trh xompany does not
believe in it\
■ One rumor can blow up and ruin a company = budweiser trandgender
issue
■ Company can ask consumers for ideas = new ice cream flavor
○ Part relationship management
■ Within the production pipeline
■ Relation ships to competitios
■ Inside = sales, management, operations
■ Everyone needs to beb on the same page
■ Nike = blm = supported the issue but management level had no people of
color
■ No hypiocyrisy
■ Being transparen
● Caoturing value
○ Value from customers = word of mouth and free advertising
○ Think of it like the customer owns a share of the company depending on how
much they spend/give profit to the company
○ How much as s customer will spend on our customer int heir life\
○ Customer lifetime value
○ 5$ each starbucks run, 2x per week, 10 years = calculate the value of the
customer. This is the value they capture
○ Can be used to determine success rate
● Every company wants more share of the customer = casr company wants more share of
your garage = how many garages per 100 garages = percentage per capita
● Restaurant = share of your stomach, bank = share of your waller
● If someone decides to spend 300 per year to buy books, they spend 9on amazon 250$,
amazon has the largest share of this customer and their library.
● Bigger picture = market share
● Clv
● Customer equity
● Cadillac
○ Target market aged, lost their customers
○ No one would partner would them because their losing customers
● 5x more cost to get customer than keeping one
● Nokia = no customer equity even though they did great
● Customer analysis loyalty
● Strangers
○ Don’t want, ignore, don’t do anything
● Butterflies
○ Not very loyal, one time \huge purchase, short term profit,
○ Crm = customer relationship management - not worth keeping and investing in
● Barnacles
○ meh
● True friends
○ The best
