MARK 201

INTRODUCTION TO MARKETING

INSTRUCTOR: LEILA YOUSEFI

CONCORDIA UNIVERSITY
 WHAT IS
MARKETING?
 Marketing Is
All Around You
Most influential
brands in Canada
 Marketing is about

➢ Satisfying a need / improving the status quo

=> CREATING VALUE

➢ Great storytelling
✓ Clear core values
✓ Convincing narrative
✓ Excellent communication
▪ Great visuals & content

➢ Consistency
✓ Brand as a token of integrity and promise = reputation
What is
Marketing?

➢ Discovering and satisfying needs

➢ Creating value for customers

➢ Managing profitable customer

relationships

➢ Building strong relationships to capture

value from customers in return
Marketing
Management
Definition:
“The art of choosing target markets and building
profitable relationships with them”

Key Activities:
Finding, attracting, keeping, and increasing
number of customers by providing value.

Objective
➢ increasing your customer base through value
creation
Goals of
Marketing

▪ Customer Acquisition:
✓ Attracting new customers

▪ Customer Retention:
✓ Keeping and growing current customer
base

❖ Ultimate goal of marketing is to have

lifelong, profitable clients.
New Trends in
Marketing
▪ free accessible information
▪ online reviews
▪ price check
▪ more buying options
▪ more voice

=> Customer Has More Power Than Ever Before

▪ the right product

▪ at the right price
+ often is socially conscious
 Marketing is both a process and a cycle

➢ Process:
Process ✓ Identifying customer needs and
developing products to satisfy those needs
vs.
➢ Cycle:
Cycle ✓ mutual value generation between buyer
and seller
The Marketing Process
 UNDERSTANDING
THE MARKETPLACE STEP 1
AND
CUSTOMER NEEDS
 Five core customer & marketplace
concepts:

Core 1. Needs, wants, and demands

Market offerings
Concepts 2.
3. Customer Value and satisfaction
4. Exchanges and relationships
5. Markets
Needs, Wants & Demands

➢ Needs - Deprived of physical, social, individual basics

✓ I physically need water to survive

➢ Wants - Needs influenced by culture and personality

✓ I want clean, safe to drink, good tasting water

➢ Demand/Desire - Sum of wants and buying power

✓ I desire for Smartwater since it is vapor distilled
with added electrolytes for taste
Classify these item
as a need, want, or
• Tylenol
• Spa treatments
Need
desire • Romantic Partner vs.
Want
Identify the aspects
•
•
Car
Smartphone
vs.
of need, want, and
desire in each of
• Internet Connection Desire
those products • Gaming Console
• Electric Scooter
 Maslow’s
Hierarchy of
Needs
Motivational theory_
a five-tier model of human
needs:
Needs lower down must be
satisfied before individuals
can attend to needs higher up

Text
Market Offerings

➢ Includes products, services, information,

or experiences offered to satisfy a need or
want.

❑ Marketing Myopia: only producing one product

▪ Paying more attention to the specific

products than to the benefits &
experiences produced by these products.

▪ Key Takeaway:
✓ Sell the benefit, not the tangible
aspects of your product/service.
 CUSTOMER VALUE
& SATISFACTION
▪ Delivered Value > Customer Expectation
=> Satisfied customers
➢ Repeat purchase
➢ Tell others (WoM)

▪ Delivered Value < Customer Expectation

=> Dissatisfied customers
➢ Switch to competitors
➢ Disparage the product to others

 Setting the right level of expectations:deliver what you promised

o Attract buyers without not disappoint them
 Exchange Relationships
➢ Exchange is the outcome of marketing, but building relationships is a higher
and more rewarding pursuit. How?
✓ Consistently delivering superior customer value
• Positive mutually beneficial exchange
• Strong relationships
• Win-win situations
 A set of actual & potential buyers of a product or
service; where common wants and needs of
customers are satisfied through exchange.

Markets
 Components of Marketing System:
which are the c

Major Environmental Forces

A Modern Marketing System

 DESIGNING A
CUSTOMER-DRIVEN STEP 2

MARKETING STRATEGY
 To build profitable customer relationships
through value creation.

Processes:
Marketing o Customer analysis

Strategy o Market segmentation and targeting

o Differentiation and positioning

❑ Marketing strategy guides all marketing

mix decisions
Segmentation and
Targeting
❑Market Segmentation:
✓Dividing the market into groups of customers
of customers.

❑Target Marketing:
✓selecting which segment(s) to serve
➢ Best one should be mutually beneficial
 Value Proposition
The set of benefits or values promised to be delivered to consumers to
satisfy their needs in a superior way.
▪ Purpose:
✓ To Differentiate and Position brands within the marketplace

❖ Perceived value should be greater than price paid.

Inside-Out

Outside-In
 STP
Marketing
STP stands for:
o Segmentation

o Targeting

o Positioning

➢ The insights gained from segmentation and targeting

are used to craft a positioning strategy that resonates
with the target audience and differentiates the brand
in the marketplace.
 CONSTRUCTING
AN INTEGRATED STEP 3
MARKETING PLAN
Integrated Marketing Plan
Steps for preparing an Integrated Marketing Plan:
i. Analyzing firm’s current situation
ii. transforming the marketing strategy into action (implementation)

Marketing Plan = Marketing Mix = 4 P’s:

• Product
• Price
• Place (Distribution)
• Promotion
 Marketing Mix
Company Customer
Product Benefit

4 P’s 4 C’s 4 A’s

❑ Product ❑ Customer Value ❑ Acceptability

❑ Price ❑ Cost ❑ Affordability

❑ Place ❑ Convenience ❑ Accessibility

❑ Promotion ❑ Communication ❑ Awareness

= overall marketing strategy

 BUILDING
CUSTOMER STEP 4

RELATIONSHIPS
 Customer Relationship
Management
CRM is about building & maintaining profitable relationships with customers by
delivering superior value and satisfaction.

➢ Customer-perceived value: the evaluation by the customer of the difference

between all the benefits and costs of a market offering relative to those of the
competitors.

❖ A good CRM system should make the customer feel valued, understood, supported
=> fostering a strong & mutually beneficial relationship.
Your marketing offering is better They get better than what they
than your competitors would get from your competitors

Customer Acquisition Vs.

Customer Retention
A "buy one get one free" coupon

Offering a vast product range

Customer
A discount on the first month's bill of a Acquisition
mobile service provider
or
Customer
Amazon Prime membership benefits. Retention?

Implementing a loyalty card program.

the excellent customer service and

reliable coverage
• Customer satisfaction: Extent to which a product’s
perceived performance matches a buyer’s
Customer
expectations. Satisfaction
• Customer delight: Companies aim to delight
customers by promising only what they can deliver
and then delivering more than they promise.

 Delivery = Expectations Satisfaction Loyalty

 Delivery > Expectations Delight Advocacy

wow
factor
Satisfaction
vs. Delight
A customer orders a cappuccino at a coffee shop on her
birthday.
▪ Customer Satisfaction:
• The cappuccino tastes good and is served at the
right temperature.
The customer is satisfied because the coffee shop
met her expectations.
▪ Customer Delight:
• The barista makes the cappuccino well, decorates
the top with a "Happy Birthday" message, and
serves it with a complimentary piece of cake.
The customer is delighted because the coffee shop
exceeded their expectations by providing an
unexpected, positive experience.
Customer
Relationship Tools
Customer Relationship Tools:

1. Frequency Marketing Programs: Programs designed

to reward customers who buy frequently or in large
amounts.

2. Loyalty Rewards Programs: Programs designed to

reward customers for repeated purchases or
engagements with the brand.

3. Club Marketing Programs: Exclusive programs that

offer special benefits to members who have signed up
or joined the club.
Customer Relationship Groups
 ▪ Anna owns a boutique selling handmade jewelry &
accessories. She has noticed different customer
types over the years:

1. Sarah, a tourist, bought an expensive

necklace once but hasn't returned since.
Example 2. Emily, a local, is a regular customer who
recommends the store to others.
3. Mike visited once for a last-minute gift but
showed no further interest.
4. Laura visits frequently but usually buys
small, inexpensive items.
 Customer-engagement
Marketing

It aims to make the brand a meaningful part of consumers’

conversations & lives by fostering the following:

✓ Customer-managed Relationship: Empowering customers

to take the lead in their interactions with the brand.
✓ Brand Advocacy: Encouraging and enabling customers to
advocate for the brand, often through social media or word-
of-mouth (WoM).
✓ Consumer-generated Marketing: Brand exchanges created
by consumers both uninvited and invited
▪ Consumer-to-consumer exchanges: Facilitating
conversations & interactions between consumers, either
organically or through company-initiated platforms.
 Partner Relationship
Management
This involves working closely with various partners, both inside and outside the
firm, to jointly engage and bring more value to customers.
o Partners inside the firm: collaboration among cross-functional teams
within the organization to ensure alignment and synergy in delivering value
to the customers.
o Partners outside the firm: collaborating with external partners to ensure a
seamless and efficient value chain that ultimately benefits the customers.
✓ Suppliers
✓ Distributors
✓ Retailers
 CAPTURING
VALUE FROM STEP 5

CUSTOMER
 Customer Value

❑ Customer lifetime value: the value of the entire stream of purchases a customer
makes over a lifetime of patronage.
❑ Share of Customer: portion of the customer’s purchasing that a company gets in
its product categories.

❖ Maximizing Customer Value:

✓ Acquiring new customers
✓ Increasing the Share of existing customers:
1. Cross-selling: Selling related products to existing customers.
✓ Selling a mouse to a customer who bought a computer.
2. Up-selling: Selling higher-end products or services to existing customers.
✓ Selling a more expensive model of a product the customer was planning
to buy.
 Customer Equity
❑ Customer Equity: Total combined customer lifetime values of all of the
company’s current and potential customers.
• A firm’s customer equity is a reflection of its future value and is a key indicator
of the firm’s financial health.
• A high customer equity indicates a strong and loyal customer base, which is a
key asset for the company.
➢ The ultimate aim of CRM is to produce high customer equity.

❑ Building Customer Equity:

❑ fostering long-term relationships and maximizing the financial value each
customer provides.
❑ by maximizing the value derived from customers, keeping them engaged,
satisfied, and loyal over time,
 increasing the company's customer equity.
 CLV of a Lexus customer = $600,000
CLV of a Starbucks customer = $14,000

How to calculate:
• Average customer spend 4 $ per purchase
• average customer purchase frequency is 3 times a week
• Customers stays with the company from age 18 to 38

 Customer Lifetime Value (CLV) =

(Average value of sale) x
(# of times purchased) x
(# of months/years a customer stays with your company
= 4 * 3 * 52 * 20

❑ Customer lifetime value will be around 12.5 thousand CAD.

Customer Lifetime Value

MANAGING
MARKETING
STRATEGY
&
MARKETING
MIX
Marketing
Strategy
&
Marketing Mix
Customer-Driven
Marketing Strategy
A winning marketing strategies formed by answering:
1. What customers will we serve?
✓ Identifying the Target Market

2. How can we best serve these customers?

✓ Crafting a Value Proposition that meets
the needs and wants of that target market.

➢ This approach helps in building a customer-

centric marketing strategy => leads to satisfied
customers and business success.
➢ The entire marketing program should support the
chosen positioning strategy.
 Segmentation: Dividing a
Targeting: Evaluating each
market into segments of
segment’s attractiveness and
buyers according to needs,
selecting which to pursue.
characteristics, and behavior.

Positioning: Attempting to
Differentiation: Creating
occupy a clear, distinctive
unique and superior
desirable place in the minds
customer value.
of target consumers

Customer Value-Driven
Marketing Strategy
Managing
Marketing Effort
 SWOT analysis

➢ Matching the company's strengths to attractive opportunities in the

environment
➢ Overcoming the weaknesses and minimizing the threats.
 MARKETING
PLAN
▪ A separate document detailing a firm’s entire
product line up or single products
▪ consistent with the larger organizational
strategic plan

▪ The Marketing Plan consists of:

▪ Executive Summary

▪ Current Marketing Situation SWOT

▪ Objectives and Issues

▪ Marketing Strategy

▪ Action Programs

▪ Budgets

▪ Controls
Marketing
Implementation
▪ Plans converted to actions by assigning:
▪ What
▪ Who
▪ Where
▪ When
▪ How
 Marketing Control

1. Set specific marketing goals – SMART goals

2. Measure performance in the marketplace (ROI)
3. Evaluate performance (ROI)
4. Take corrective action to close the gaps between goals & performance
 A SMART goal for Marketing Control could be:
✓ Specific: Increase the conversion rate of our online
advertisements.
✓ Measurable: Achieve a 20% conversion rate.

✓ Achievable: By optimizing our ad content, targeting, and

landing pages based on customer feedback and data
SMART analytics.
✓ Relevant: Increasing the conversion rate will lead to
GOAL higher sales and better ROI from our advertising budget.
✓ Time-bound: Achieve this goal in the next 3 months.

 SMART goal:

Increase the conversion rate of our online advertisements

to 20% by optimizing our ad content, targeting, and
landing pages in the next 3 months.
 An example of a goal that does not match the SMART
criteria could be:
"Increase brand awareness.“

▪ This goal is not SMART because:

▪ It is not Specific: It does not detail how brand
awareness will be increased or what 'increased brand
SMART ▪
awareness' would look like.
It is not Measurable: There are no metrics attached to

GOAL ▪
the goal that would allow a team to know if they were
successful.
It is not Achievable: There is no plan or strategy
outlined that would make this goal attainable.
▪ It is not Relevant: Without more context, it's unclear
why increasing brand awareness is important or how
it connects to broader business goals.
▪ It is not Time-bound: There is no deadline or
timeframe attached to the goal.
Thank
You