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Summary International Marketing For IB International Business
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Summary International Marketing For IB International Business
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International marketing - IBMarketing goal:
- Attract new customers by promising superior value.
- Grow current customer base by delivering satisfaction.
Two views in marketing:
- Old view; marketing is ‘telling and selling’ (which focuses on simply selling a product).
- New view; marketing is ‘satisfying customer needs’ (here the selling is simply part of
the marketing mix).
Marketing =
The process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.
Marketing process:
This five step model describes how to create value for customers and build customer
relationships (first 4 steps) and how to capture value from customers in return (last step).
1. Understand the marketplace and customer needs and wants.
2. Design a customer value driven marketing strategy.
3. Construct an integrated marketing program that delivers superior value.
4. Engage customers, build profitable relationships, and create customer delight.
5. Capture value from customers to create profits and customer equity.
Needs > are states of felt deprivation (Food, water).
Wants > are the form of ‘human needs’, as they are shaped by culture and individual personality
(We need food, but want a hamburger).
Demands > are ‘human wants’ that are backed by buying power. More money allows us to
demand better quality.
Marketing offerings:
Everything offered on a market, in order to satisfy a need or want.
Marketing myopia:
A common mistake of paying more attention to the specific products a company offers, rather
than to the benefits and experiences produced by these products.
Exchange:
The act of obtaining a desired good or service from an individual by offering something in
return.
1
,Marketing management =
Defined as the art and science of choosing target markets and building profitable relationships
with them. Therefore, marketing managers focus on engaging, keeping and growing target
customers by creating, delivering and communicating superior customer value.
Value proposition =
The set of values a company promises to deliver to consumers in order to satisfy their needs.
5 Thoughts under which organizations design and carr out their marketing strategies:
- Production concept,
Consumers will favour products that are available and highly affordable therefore, the
organization should focus on improving production and distribution efficiency.
- Product concept,
Consumers will favour quality, performance and various features the most. Therefore,
the organization should devote its energy to making continuous product improvements.
- Selling concept,
Consumers will only buy enough of the firm’s products when the firm undertakes a large
scale selling and promotion effort. Here the aim is mainly to se;; what a company
produces, rather than what a consumer asks for.
- Marketing concept,
This concept means that achieving organisational goals depends on knowing better the
competitors. Instead of the make-and-sell concept, companies focus on the
sense-and-respond philosophy. Here the selling concept can be seen as an inside-out
perspective, where in contrast the latter is called an outside-in perspective.
- Societal Marketing concept,
A company’s marketing decision should consider consumers’ wants, the company’s
requirements, consumers’ long-run welfare, and society’s long-run interests.
Marketing mix =
Often used to define the set of marketing tools the firm uses to implement its marketing
strategy. Consists of:
- Product; need-satisfying market offering.
- Price; the cost of the product.
- Place; where the product will be available.
- Promotion; communication with target customers.
Customer relationship management (CRM):
The overall process of building and maintaining profitable customer relationships by delivering
superior customer value and satisfaction.
Customer-perceived value:
This is the customers’ evaluation of the difference between all benefits and all the costs of a
marketing offer relative to those of competing offers.
2
,Customer satisfaction:
Deals with the extent to which a product’s perceived performance matches a buyer’s
expectations.
Customer relationships:
Can exist on different levels. Companies have basic relationships with low-margins customers
that hardly have contact. On the other hand companies create frequency marketing programs
in order to reward returning customers. Other companies create club marketing programs in
order to offer special benefits to members.
Nowadays companies try to build stronger, deeper, more direct relationships, which are more
interactive.
Customer-engagement marketing =
Making the brand a meaningful part of consumer’s conversations and lives by fostering direct
and continuous customer involvement in shaping brand conversations, experiences, and
communities. Because consumer empowerment has grown over time, companies can no longer
rely on marketing by intrusion. Instead, they must practice marketing, by attraction, where
market offerings are created by engaging with customers, rather than by interrupting them.
Consumer-generated marketing =
When a brand engages with consumers, both invited and uninvited. Here consumers are
playing an increasing role in shaping their own brand experiences and those of other
consumers.
Partner relationship management:
Which is working closely with partners in other company departments and outside the company
to jointly bring greater value to customers.
Customer lifetime value =
The value of the entire stream of purchases a customer makes over a lifetime of patronage.
Customer equity =
The total combined customer lifetime value of all of the company’s customers. The more loyal
firm’s profitable customers are, the higher its customer equity. Equity says something more
about the future.
3
, Customer relationship groups are defined on two dimensions:
Potential profitability (PP) and projected loyalty (PL). 4 Different groups:
- Strangers; Low PP and low PL
Relationship management strategy > do not invest in this group.
- Butterflies; High PP and low PL
Relationship management strategy > profit from them in the moment.
- True friends; High PP and high PL
Relationship management strategy > keep investing in this group.
- Barnacles; Low PP and high PL
Relationship management strategy > try to improve profitability and otherwise fire as
customers.
High Butterflies True friends
Potential profitability
Low Strangers Barnacles
Potential profitability
Short term Long term
Projected loyalty Projected loyalty
Changes in marketing landscape:
- Digital and social media marketing:
Involvers using digital marketing tools that engage consumers anywhere anytime
cia their digital devices.
- Non-profit increasingly make use of marketing as part of their strategy.
- Globalization causes competition from all over the world.
- Consumers are expecting nowadays that companies behave in a socially
responsible way.
AIOV’s > Attitudes, interests, opinions, values. As a marketer you have to find out if a
customer is relevant.
CHAPTER 2 Company and marketing strategy
Strategic planning =
The process of developing and maintaining a strategic fit between the organization's
goals and capabilities and its changing marketing opportunities.
Steps of strategic planning:
4
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