Marketing

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Marketing

• It used to be that engineering invented,
  manufacturing built, marketing marketed, sales
  sold, and the president managed the whole
  shebang. Marketing, better called advertising,
  was about communicating the values of a product
  after it had been manufactured.

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Marketing

• Marketing is the act of inventing the product.
  The effort of designing it. The craft of
  producing it. The art of pricing it. The
  technique of selling it.Seth Godin, February
  2003, In Praise of the Purple Cow, Fast
  Company, Issue 67, p. 85.

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The Marketing Mix
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The Marketing Mix
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The New Economy - Customers

• Substantial increase in buying power
• A greater variety of goods and services
• A greater amount of information about practically
  anything
• A greater ease in interacting and placing and
  receiving orders
• An ability to compare notes on products and
  services

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The New Economy - Companies

• Websites can provide companies with powerful new
  information and sales channels.
• Companies can collect fuller and richer
  information about markets, customers, prospects
  and competitors.
• Companies can facilitate and speed up
  communications among employees.
• Companies can have 2-way communication with
  customers and prospects

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How is Marketing Adapting?

• Major Drivers of the New Economy
• Digitization and Connectivity
• Disintermediation and Reintermediation
• Customization and Customerization
• Industry Convergence
• E-Business

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How is Marketing Adapting?

• Major Drivers of the New Economy
• Organize by product units to organize by customer
  segments
• Shift focus from profitable transactions to
  customer lifetime value
• Shift focus from financial scorecard to also
  focusing on the marketing scorecard
• Shift focus from shareholders to stakeholders

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Changing the Strategy
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How is Marketing Adapting?

• How Marketing Practices are Changing Customer
  Relationship Marketing
• Reduce rate of customer defection
• Increase longevity of customer relationship
• Enhance growth potential through cross-selling
  and up-selling
• Make low profit customers more profitable or
  terminate them
• Focus more on highest value customers

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Changing the Organization
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How is Marketing Adapting?

• Four steps for One-to-One Marketing
• Dont go after everyone, identify prospects.
• Define customers by their needs and their value
  to the company.
• Individual interaction with customers builds
  stronger relationships.
• Customize messages, services, and products for
  each customer.

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How is Marketing Adapting?

• Data Warehouses and Data Mining
• Using the database
• To identify prospects
• To determine target market
• To deepen customer loyalty
• To reactivate customer purchases
• To avoid serious customer mistakes
• The Downside of Database Marketing

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10 Rules of Radical Marketing

• The CEO must own the marketing function.
• Make sure the marketing department starts small
  and flat and stays small and flat.
• Get face to face with the people who matter most
  the customers.
• Use market research cautiously.
• Hire only passionate missionaries.

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10 Rules of Radical Marketing

• Love and respect your customers.
• Create a community of consumers.
• Rethink the marketing mix.
• Celebrate common sense.
• Be true to the brand.