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product development & innovation summary (product development & innovation)
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Product Development & Innovation Summary summary product development & innovation
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MARKETING- Convincing the costumers/buyers
- Interacting
- Costumers experience
Marketing?
1. All around you
events, offline & online advertising such as billboarding & social media
advertising, Apps on your smartphone, new disruptive products & services like
Uber Eats, Airbnb,
2. Marketing communications is a sub-set of overall Marketing
Marketing = “strategic marketing” build on the 4P’s
(Marketing) communications is about communication & promotions (offline and
online advertising & other communication channels)
3. Marketing is for leading brands, but also for not-for-profit organisations
(fundraising activities), museums, university colleges, etc.
Strategic marketing ≠marketing communications
- (product, channel, pricing) vs. (advertising, social media influencers, billboards,
etc.)
- communication & branding are about ‘activation tactics’ … getting the word out;
the other marketing elements of the mix are more to be done upfront (e.g.
developing a product, defining a price, etc.)
As a company you need to have valuable to the market,2 steps: value creation/ value
capture
Value creation
- Market offering (product/service)
- Quality
- Fast/ convenience in the service
- After sales support/ service
- Technical service/ installation
- Personalisation
Value capture
- Selling/ sales team to capture it
If you don’t have a sales team (=direct) you can have sales partners (=indirect
sales)
- Your profits need to be higher then the market average. (= premium price)
Examples of premium prices (bv. Apple)
- A company who puts the prices way above the average ex. Cars (Ferrari/ Bentley)
Differentiation
- The more you can differentiate your self the higher the chance you can higher the
price of your service. It can be about a kitchen/ house,…
,marketing ≠marketing communications (which is the most important)
- Marketing is about strategic marketing (product/price/place/promotion = 4p’s)
- Marketing communication is a subset of strategic marketing, it’s actually a kind of
promotion. You talk more about the colours/ brand/ type
- So marketing is the better than the marketing communication
Customer acquisition (you acquire your customer) and customer retention (you need to
keep them happy so that they stay loyal)
SALES
- Traditional selling Lower value (typically 1 buyer)
- Relationship selling higher value, complex value (more buyers in the
company), it is a decision making unit (unit of all the buyers)
- Online sales more and more shops disappear in the city’s because of it.
Sales more explained
- Traditional selling:
= is a manipulative and pressure-filled process designed to get someone to buy
regardless of whether they want to buy or not. ...
It's about overcoming obstacles, negotiation, and tricking or trapping your
customer into the sale
Ex. Door-to-door selling of telecom & electricity subscriptions, Xerox printer
sales in the past, selling unwanted insurances…
- Relationship selling:
= the practice of building, maintaining, and enhancing interactions with customers
to develop long-term satisfaction through mutually beneficial partnerships.
“Traditional selling”, on the other hand, is much more transaction focused.
- Online sales
=over the past years we’ve noticed serious increase in e-business (B2B),
e-commerce sales, etc.
- “Omnichannel” is key in this new commercial trajectory (ex. combining the offline
and online sales channel to get best CX – customer experience)
Notes
- In past sales and market did not cooperate well together .. This is getting better
now
- Often sales is focus on short term (“get an order/purchase order now”) where
marketing tends to be more focussed on long term (building market share,
building strong brand image in the market …
- Sales is going from transactional level to much more relationship building (“people
are buying from people”)
Transactional vs. relationship marketing
Transactional Relationschip
Objective Acquire new costumers and Improve customer
increase volume Of point- retention and build
of- sales transactions costumemr loyalty
Length of relationship Short term Long term
Customer contact Minimal Frequent
, Type of marketing Mass marketing and Personalized marketing
promotion
SALES AND MARKETING FUNNEL/PIPELINE COMMERCIAL STRATEGY
A. Sales & Marketing are 2 critical components of the commercial strategy of a
company, and they need to work closely together in a ‘customer centric’
approach…
B. Marketing is a process by which companies create value for customers and build
strong customer relationships to capture value from customers in return.
Role of marketing is launching new products, building strong brands,
generating leads to grow the business
C. Sales the activity or business of selling Products and/or Services (generating
sales revenue or sales volume via transfer of ownership of a product/service)
- Awareness: influence by social media, advertising, e-mail
Tofu campaigns TOP OF MIND
- Interest: get more information about the product (brochure,
information)
Rofu - Consideration: offering demonstration, personalisation
- Intent: to buy
- Evaluation: price, negotiation, contract
Bofu - Purchase: ordered
Extra information
- The further you go through the tunnel, the closer you are to buying the product
- Goal: every level to the tunnel you are trying to influence customer to go on the
other step of the funnel
- The speed you go through the tunnel, the less you think about it the cheaper and
less important purchase it is, if it’s very pricy and important and complex the
solution is the slower you go
- Sales ritme and buying ritme at the same speed
Get-keep-increase
- Get: acquisition
- Keep: loyalty it’s about retention
- Increase: the upsell, when the ticket of the buyers is higher then what they
intended to pay
Be aware to not oversell
- The idea of increase: you bought an iphone, but you buy also an insurance
(increase) = commercial attitude
- Oversell: Customer satisfaction ( as expected) and customer delight (you go above
expectation)
UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS
It’s about value creation for the firm
, - “Customer-centric” strategy:
put the customer at the core of your organization (not your products or
technology…)
Therefor work in your firm ‘customer in’ vs. ‘product out’ from a strategic
perspective
Put the time & effort into understanding the true needs of your customers
why are they buying? When are they buying? How are they buying? What price
are they paying? etc.
- Exchange (sales)
=the act of obtaining a desired object from someone by offering something in
return (price) (e.g. marketing a product to a specific target audience in order to
sell, meaning getting to a purchasing transaction)
- Marketing actions try to create, maintain, and grow desirable exchange
relationships.
Customer acquisition (e.g. MARS or BMW) or member acquisition (e.g.
Chambre of commerce, UNICEF)
Marketing drives customer loyalty, resulting in customer retention (what is the
CLT – customer lifetime value?)
In the telecom or utilities sector (like Proximus, ENGIE..) it’s often referred to
as “ get- keep-increase” (and they tend to measure your average revenue per
user – ARPU)
Notes
- Marketing occurs when people decide to satisfy their needs and wants through
exchange relationships.
- In the broadest sense, the marketer tries to bring about a response to some
market offering. The response may be more than simply buying or trading
products and services. A political candidate, for instance, wants votes; a church
wants membership; an orchestra wants an audience; and a social action group
wants idea acceptance.
- Companies want to build strong relationships by consistently delivering superior
customer value.
THE 5 STEP MODEL- KOTLER’S MARKETING PROCESS
1. Understand the marketing (creating value) market research
Market research: interview/ survey/ enquete
Cimi: customers insight & market intelligence: need to know your market
Quantitate figures: what is the trend/behaviour, you have to get fuller
view of the market
2. Create integrated marketing Product/service/quality via innovation you bring your
product to the market
3. Promotion/ advertising/ social media: influencers paid medium)
4. Build customers: in that Sales/ contact center
5. Capture value from customers to create profits. If we have right price we have to
get profit and get feedback of value from customers means keep and buy more
There are 2 important elements in ‘commercial strategy’ incl. marketing; see the 5-
step “value model” above:
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