BUSINESS MARKETING Persons, Places, Properties, Organizations,

WHAT IS MARKETING? Information, and Ideas.

- Identifying and meeting human social  Goods - Physical Goods constitute the
needs. bulk of most countries’ production and
- “meeting needs profitability” marketing efforts…
According American Association -  Services - As economies advance,a
Marketing is the activity, set of institutions, growing proportion of their activities
and processes for creating, communicating, focuses the production of services. The
delivering, and exchanging offerings that U.S today produces a 70-30 services-
have value for customers, clients, partners, to-goods mix.
and society at large. - Many market offerings mix goods and
- According to one marketer the services, such as fast-food meal.
marketing’s role is to “deliver a higher  Events - Global sporting events such as
standard of living” the Olympics and the World Cup are
- Marketing is a societal process by which promoted aggressively to both
individuals and groups obtain what they companies and fans.
need and want through creating, offering,  Experiences - Walt Disney World’s
and freely exchanging products and Magic Kingdom allows customers to
services of value with others. visit a fairy kingdom, a pirate ship, or a
- Managers thinks that marketing is the art hunted house.
of selling products  Persons - Artists, musicians, CEOs,
- Selling is not the most important part of Physicians, High-profile lawyers and
marketing, selling is only the tip of iceberg financiers,and other professionals all
- Peter Drucker said that the aim of get help from Celebrity marketers:
marketing is to know and understand the some people have done a masterful
customer so well that the product or job on marketing themselves- David
service fits and sells itself. Beckham, Oprah Winfrey, and the
- Ideally, marketing should result in a Rolling Stones.
customer who is ready to buy.  Properties - These are the intangible
rights of the ownership to either real
WHAT IS MARKETED? property(real estate) or financial
Marketers market 10 main types of entities: property (stocks and bonds).
Goods, Services, Events, Experiences,  Organizations - Organizations work to
build a strong, favorable, and unique
 image in the minds of their target 2. Design a customer value-driven
public. marketing strategy
 Iformation - Information is essentially 3. Construct an Integrated marketing
what books, schools, and universities program that delivers superior value
produce, market, and distribute as a 4. Engage customers, build profitable
price to parents, students, and relationships, and create customer delight
communities. 5. Capture value from customers to create
 Ideas - Products and services are profits and customer equity
platforms foe delivering some idea or
benefit.
3 P’s CUSTOMER NEEDS, WANTS, and DEMAND
People Human NEEDS are states of felt deprivation.
Product They include basic physical needs for food,
Price/Place clothing, warmth,and safety; social needs
for belonging and affection;and individual
Types of Business needs for knowledge and self expression.
Sole Proprietorship
Partnership WANTS are the form human needs take as
Corporation they shaped by culture and individual
Cooperative personality. Wants are shaped by one’s
society and are described in terms of
UNDERSTANDING THE MARKETPLACE AND objects that will satisfy those needs.
CUSTOMER NEEDS
By buying with power wants become
MARKETING - Build strong customer DEMANDS.
relationships, and create value in order to
capture value from customers in return MARKET OFFERINGS- PRODUCTS,
\ SERVICES, and EXPERIENCES
The Marketing Process
- Creating and Capturing Customer Value Market offerings - some combination of
- Create value for customer and build products, services, information, or
customer relationships experiences offered to a market to satisfy a
1. Understand the marketplace and need or want.
customer needs and wants - are not limited to physical products
- They also include services. Activities or decision-making and purchasing processes.
benefits offered for sale that are essentially
• Coca-cola aimed at serving customers
intangible and do not result in the numerous geographical areas that include
cities, suburbs, and rural areas.
ownership of anything. Ex: banking, hotel,
• Variety products of coca cola - Coca- cola
retailing,and home repair services. zero sugar, Coca-cola with coffee, Honest
tea and Simpky orange. Some products that
are well-known such as, sprite, Fanta,
Marketing Myopia - paying more attention Minute maid, Powerade, and Dasani.
Thums Up in India, Inca Kola in Peru, Barq's
to the specific products they offer than the
in US, or Ayataka in Japan
benefits and experiences produced by
these products.
Market segmentation objectives
4 P's
Product - creating a successful product is
Smart marketers look beyond the attributes
one of the main objectives of org. and one
of the products and services they sell. By of the reason why they conduct market
research. Allows you to add the right
orchestring several services and products,
features, and help to reduce cost to meet
they create brand experiences for the needs of your target audience.
Price - establish the right price of your
consumers.
products. Identifying which public that will
willing to pay for it.
Promotion - helps to target the members of
MARKET SEGMENTATION
each segment and select them in different
categories so that you can direct your
•Market - the consumers
strategies appropriately.
•Ph carbonated softdrinks market is Php
Place - to decide how you offer the product
82.3 billion
of each group of consumers and make it
Coca cola - 53, 639 - 65.2
pleasant to them.
Pepsi cola - 16, 306 - 19.8
Cosmos - 7, 843 - 9.5
5 steps to implement market
Arc - 2, 432 - 3.0
segmentation strategy
Others - 2, 041 - 2.5
Total - 82, 261 - 100.0
Define your market: you should focus
discovering how big your market is, where
Market segmentation - It is the process
your brand fits and if your products has a
that consits of sectioning the target market
capacity to solve what its promise.
into smaller groups that share simular
Segment your market: consists of choosing
characteristics....
which of the types best suits your brand.
Understand your market: asks your
Types of Market Segmentation
customers the right questions, depending
Demographic - age, gender, nationality,
on the type you chose. You must know your
education level, family size, occupation,
target in details.
income, etc...
Build your customer segment: you need to
Geographic - location, climate, and region
perform data analysis to create dynamic
Psychographic - behavior, lifestyle,
segments uniques to your brand.
attitudes, and interests.
Test your strategy: Make sure you have
Behavioral - consumers behavios, patterns
and the way customers go through their
correctly interpreted your survey data by get the pricing structure wrong for this set of
testing it with your target audience. buyers, you can forget about getting a desirable
ROI.

MARKETING MIX 6 COMMON PRICING STRATEGIES

Price skimming: setting a high price for your
MARKETING STRATEGY product and then gradually reducing the price
The marketing logic by which the company over time.
hopes to create customer value and achieve Competition-based pricing: evaluating the
profitable customer relationships. prices set by market competitors and placing
your price either slightly higher or lower than
MARKETING MEASUREMENT the competition.
It is either the act of measuring something, or Economy pricing: setting prices that target
the data that results from measuring something. buyers who seek a low price or bargain.
A marketing measurement may provide limited Premium pricing: setting a high price tag on
value until it is combined with other your items. This strategy requires ensuring that
measurements to form a marketing metric. the product or service itself is of high quality
before you give it a ‘luxury’ label.
PRODUCT Value-based pricing: setting a price based on
Describes the demand for a given product and what a customer is willing to pay - what they
who wants to purchase it. This is determined by believe your brand and your product is worth.
how willing consumers are to spend a certain Cost-plus pricing: this method is solely based on
price on a particular good or service. what the cost of producing your product is and
then adding a markup so that you aren’t selling
As market demand increases, so does price. at a loss.
When the demand decreases, price will go
down as well. Market demand is the total of
what everyone within a specific industry desire
and can help guide merchants when building an PROMOTION
e-commerce site. This means raising awareness of a brand,
product, or service within a market; telling a
story to encourage consumer engagement.
7 PS OF MARKETING MIX
PRODUCT PEOPLE
PLACE In the marketing mix, refers to anyone directly
PRICE or indirectly involved in the business side of the
PROMOTION enterprise. That means anyone involved in
PEOPLE selling a product or service, designing it,
PACKAGING marketing, managing teams, representing
POSITIONING customers, recruiting, and training.

7 PS OF MARKETING MIX PACKAGING

PRODUCT This refers to the way your product or service
This refers to anything that’s being sold - a appears from the outside. Packaging also refers
physical product, service, or experience. to your people and how they dress and groom.

PLACE POSITIONING
Where are you selling your product or service? You should develop the habit of thinking
There are many places and ways that businesses continually about how you are positioned in the
can sell. So ‘place’ doesn’t just refer to a hearts and minds of your customers.
physical location. It could mean selling via a
website, catalogue, social media, utilizing trade STARBUCKS MARKETING MIX
shows and, of course, brick and mortar stores. Starbucks is the biggest coffee house chain in
the worldwide in terms of number of stores. It is
PRICE an American coffeehouse chain which was
It is product or service cost. Everyone has their founded in Seattle in 1971. It operates in 80
price and if you target a specific audience but
countries and has over 32,000 stores (Starbucks, It includes but not limited to its store designs,
2022). logo, coffee cups, and napkins. Starbucks offers
customers an inviting atmosphere. It has
STARBUCKS PRODUCT adopted a new approach to store designs. The
Starbucks offers its customers a very good new approach requires Starbucks designers to
number of food and drink options. The main look at each store individually to ensure that it
categories of products are breakfast, lunch, looks distinctively local (Starbucks, 2022).
cakes & cookies, muffins, pastries & doughnuts,
fresh fruit, bottled soft drinks, tea, espresso STARBUCKS POSITIONING
beverages, filter Coffee, frappuccino blended For individuals who want a high quality,
beverages, refresha, and cold brew. premium coffee experience, Starbucks leads the
Starbucks is famous for its expertly roasted and coffee industry with its premium blend of coffee
richly brewed coffee. It is also popular for a beans and wide range of products. To become
selection of premium teas the number one coffee company in the minds of
its audience.
STARBUCKS PRICE
Starbucks uses a premium pricing strategy. As
mentioned above, the company is famous for its CONSUMERS BEHAVIOR
richly brewed coffee and a selection of premium It is the study of consumers and the processes
teas. Many customers often draw a conclusion they use to choose, use (consume), and dispose
that quality products come with a high price. of products and services, including consumers’
Starbucks has made use of this perception and emotional, mental, and behavioral responses.
set premium pricing as the company’s pricing Consumer behavior is often influenced by
strategy. different factors. Marketers should study
consumer purchase patterns and figure out
STARBUCKS PLACE buyer trends.
Starbucks offers most of its products through
Starbucks cafés. It operates in 80 countries and There are three categories of factors that
has over 32,000 stores (Lock, 2021). It has influence consumer behavior:
introduced ‘Starbucks on the go’ which is a Personal factors: an individual’s interests and
premium self-serve beverage solution providing opinions can be influenced by demographics
a selection of great tasting hot drinks (Starbucks, (age, gender, culture, etc.).
2022). Psychological factors: an individual’s response
to a marketing message will depend on their
STARBUCKS PROMOTION perceptions and attitudes.
Promotion plays a big role in the marketing mix Social factors: family, friends, education level,
of Starbucks. The coffeehouse chain makes use social media, income, all influence consumers’
several promotional strategies to communicate behavior.
with its stakeholders. For example, it spent
$305.1 million on advertising in 2021 (Guttmann,
2021). FOUR TYPES CONSUMERS BEHAVIOR
1. Complex buying behavior
STARBUCKS PEOPLE This type of behavior is encountered when
Starbucks is also well-known for its investment consumers are buying an expensive,
in employee training and development. The infrequently bought product. They are highly
Barista Basics Training programme aims to involved in the purchase process and consumers’
provide new barista with the skills and the research before committing to a high-value
knowledge needed to work efficiently at the investment. Imagine buying a house or a car;
restaurant. As long as the customers are these are an example of a complex buying
concerned, Starbucks is a customer centric behavior.
company.
2. Dissonance-reducing buying behavior
The consumer is highly involved in the purchase
process but has difficulties determining the
STARBUCKS PACKAGING/ PHYSICAL differences between brands. ‘Dissonance’ can
ENVIRONMENT occur when the consumer worries that they will
regret their choice.
Imagine you are buying a lawnmower. You will Site. It should go without saying that your
choose one based on price and convenience, website is going to have a great deal to do with
but after the purchase, you will seek the success of your web marketing operation.
confirmation that you’ve made the right choice. Synergy. Some of the important points within
the topic of synergy are going to have been
3. Habitual buying behavior covered when thinking about the scope and
Habitual purchases are characterized by the fact strategy of your marketing.
that the consumer has very little involvement in System. Web marketing does not have to be
the product or brand category. Imagine grocery particularly complicated or complex, but there
shopping: you go to the store and buy your is a certain level of hardware and software you
preferred type of bread. You are exhibiting a will need to have in place in order to run a
habitual pattern, not strong brand loyalty. smooth campaign.

4. Variety seeking behavior WHAT IS CUSTOMER LIFETIME VALUE?

In this situation, a consumer purchases a
different product not because they weren’t The only way to know how much you can afford
satisfied with the previous one, but because to spend on marketing is to know how much
they seek variety. Like when you are trying out money you are going to make from the
new shower gel scents/ perfume customers you gain.

Knowing what types of customers your e-store Customer lifetime value is how much each new
attracts will give you a better idea about how to customers is going to be worth over the entire
segment customer types. lifespan of their relationship with your business.

The information required to calculate accurate

PRODUCT VALUE customer lifetime value is the averages of: order
Product value is the qualitative benefit that a value, frequency of purchase and the lifespan of
user gets from a particular product in satisfying the relationship.
needs, solving problems, and achieving goals.
You could then go on to incorporate profit
Value is not necessarily a monetary amount, nor margin numbers to determine how much profit
can it always be quantitatively measured. That’s is generated by each new customer.
because much of product value is based on the
perception of the customer. It’s sentiment and Used in conjunction with customer
feeling as much as it is tangible rewards like segmentation, customer lifetime value enables
saving time and money. you to see which marketing channels are the
most profitable.
MARKETING MODEL DIAGNOSTIC
It is a forward-looking framework and
assessment that helps you identify where you
need to transform your marketing function to
unlock growth. Marketing-led growth is critical
in today's hyper-competitive and changing
consumer environment.

4S WEB MARKETING MIX

Scope. The ‘scope’ of your web marketing mix is
just as it sounds – it is the overall strategy that
you have for this part of your operation. What
kinds of internet marketing activities are you
going to pursue? How do those activities work
together to form a plan that is likely to be
successful? You are looking at the topic from
the highest possible level at this point to gain a
clear picture of the issue a whole.