Principles of Marketing

Chapter#1
Marketing: Creating and Capturing
Customer Value
 What is marketing ?

⚫ More than selling and advertising

⚫ Identifying and satisfying customers
needs
⚫ Range of activities (marketing mix - 4P’s)
 What is Marketing?
• Marketing is a process by which companies
create value for customers and build strong
customer relationships to capture value from
customers in return
• Marketing is the creation & satisfaction of
demand for your product or service. If all
goes well, this demand should translate into
sales and, ultimately, revenue.
• More simply: Marketing is the delivery of
customer satisfaction at a profit.
 What is Marketing?
⚫ “Marketing is the process of planning and
executing the conception, pricing,
promotion, and distribution of ideas, goods,
and services to create exchanges that
satisfy individual and organizational
objectives.”
⚫ Marketing Involves having the Right Product
available in the Right Place at the Right
Time and making sure that the customer is
Aware of the Product.
 Mantra of Marketing

CCDVTP
C- Create
C- Communicate
D- Deliver
V- Value
T- Target market
P- Profit
Create communicate and deliver value to a
target market at a profit.
 CCDVTP Continued...

• Creating Value is PRODUCT

MANAGEMENT
• Communicating Value is BRAND
MANAGEMENT
• Delivering value is CUSTOMER
MANAGEMENT
 Evolution of Marketing
SEVEN ERAS in the evolution of
Marketing
• Trade Era ( Exploration Era)
– Barter Trading
• Production Era (1860-1910s)
– Factories/machines etc
– Focus on production efficiency
• Sales Era (selling Era 1920-1930s)
– Focus on hiring/developing competent
sales personnel and giving them product
knowledge so they can sell the products in
the markets.
– Marketing was all about selling.
Evolution of Marketing Cont..
• Brand Development Era ( 1940-1950s)
– Branding, ads, brochures, pamphlets
• Marketing Company Era (1960-1990s)
– People of production, sales and brand
development sat together and decided to work
together for best profitability
• Relationship Era (1990-2000)
– Marketers found out that customers have many
options so only selling and branding is not
enough
– Focus on Customer Relationship Development
• Social Media Marketing Era
– Digital media’s importance
– Relationship development using Digitization
Marketing
Product Price

Customers

Place Promotion
Marketing’s 4 P’s
Marketing Mix

⚫ Product
⚫ Price
⚫ Place
⚫ Promotion
 What Can Be Marketed?

⚫ Goods ⚫ Places
⚫ Services ⚫ Properties
⚫ Experiences ⚫ Organizations
⚫ Events ⚫ Information
⚫ Persons
⚫ Ideas
 Actors and Forces in a
Modern Marketing System

Environment

Company
(marketer)
Marketing End-user
Suppliers inter- market
mediaries

Competitors
Core Marketing Concepts
 Core

satisfaction,
and quality
Marketing

Value,
Concepts

Exchange,
transactions,
and relationships
 Core Marketing Concepts

• States of deprivation
• Physical—food, clothing, warmth, safety
Needs • Social—belonging and affection
• Individual—knowledge and self-expression

• Form that needs take as they are shaped by culture

Wants and individual personality

Demands • Wants backed by buying power

 Core Marketing Concepts
A product is
• ‘anything that can be offered to a market
for attention, acquisition, use or
consumption and that may satisfy a need
or want’
Includes:
physical goods, services, people, places, organizations,
activities, ideas etc
 Core Marketing Concepts

Customer Value:
• Is the value the individual customer places
on a product or service.
 Core Marketing Concepts
Exchange is ...
• ‘...the act of obtaining a desired object from
someone by offering something in return’
Five conditions
1. Two parties
2. Something of value to offer each other
3. Willing to deal
4. Free to accept or reject offer
5. Able to communicate and deliver
 Core Marketing Concepts

A Market is…
⚫ ‘...a set of actual and potential buyers of a
product’
⚫ A place
⚫ Marketing satisfies the needs of markets by
facilitating the exchange process
 Marketing Management

⚫ Marketing management is “the art and science of choosing

target markets and building profitable relationships with
them.”
⚫ Creating, delivering and communicating superior

customer value is key.

 Relationship Marketing

Relationship Marketing:
❑ The process of establishing and maintaining
mutually beneficial exchange relationships
with customer and other stakeholders.
• Two components:
– Customer Focus
– Competitive Advantage
 CRM

CRM – Customer relationship management . .

.
“is the overall process of building and maintaining
profitable customer relationships by delivering superior
customer value and satisfaction.”
 Capt
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All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2010 Pearson Education, Inc.

Publishing as Prentice Hall
 What is Digital Media?
The most generic definition would be simply any medium that is
digital is digital media. Since a medium is anything that is used to
communicate a message from one person to another, thus by the
wide definition, Computers, TV, Telephones all may be digital
media.

A better definition in terms of Marketing has 3 technical

requirements for something to be categorized as a Digital Medium:

• The medium should enable broadcasting of a message to a lot

of people
• The receiver of the message must have the ability to respond in
some way
• The receivers should be able to communicate with each other
and form groups on the medium. By this definition Social media,
Blogs, Websites all may be included in Digital Media.
 Digital Marketing
Digital marketing encompasses all marketing efforts that use an
electronic device or the internet. Businesses leverage digital
channels such as search engines, social media, email, and other
websites to connect with current and prospective customers

Digital Marketing is a newer concept that defines

. Digital Channels are basically any
means of communication that are able to broadcast to
, and between
. Digital Channels include
. Activities
that are common in digital marketing include Social media
Marketing, Paid Search Marketing, Search Engine Optimization,
Email Marketing, Mobile Marketing and Automation of Sales..
 Digital Marketing

To put it into one sentence, “digital marketing is the practice of

promoting products and services using digital distribution
channels via computers, mobile phones, smart phones, or other
digital devices (Smith 2012)”.
 Importance of Digital Marketing

Digital marketing is powerful in two fundamental ways. First, the

– even down to factors like
current location and recent brand interactions – which means that
messages can (and must) be personalised and tailored specially for
them.
Second, the – every
minute and every click by a customer can be accounted for. In digital you
can see exactly how various campaigns are performing, which channels
bring the most benefit, and where your efforts are best focused.
 Importance of Digital Marketing

Source:
https://www.lyfemarketing.com/blog/importance-of-digital-marketing/
 Importance of Digital Marketing
With social media campaigns, display ads and search ads you can choose a daily
budget. You know exactly how much that campaign will cost you.
1. Search Engine Optimization (SEO)
2. Content Marketing
3. Social Media Marketing
4. Pay Per Click (PPC)
5. Affiliate Marketing
6. Native Advertising
7. Marketing Automation
8. Email Marketing
9. Online PR
10.Inbound Marketing
 1. Search Engine Optimization (SEO)

This is the process of optimizing your website to "rank" higher in

search engine results pages, thereby
. The channels that
benefit from SEO include websites, blogs, and infographics.

source:
https://blog.hubspot.com/marketing/what-is-digital-marketing
 2. Content Marketing

This term denotes the creation and promotion of content assets

for the purpose of generating brand awareness, traffic growth,
lead generation, and customers. The channels that can play a part
in your content marketing strategy include:
• Blog posts
• Writing and publishing articles on a company blog helps you demonstrate your
industry expertise and generates organic search traffic for your business. This
ultimately gives you more opportunities to convert website visitors into leads for
your sales team.
• Ebooks and whitepapers
• Ebooks, whitepapers, and similar long-form content helps further educate
website visitors.
• Infographics
• Infographics are a form of visual content that helps website visitors visualize a
concept you want to help them learn.

source:
https://blog.hubspot.com/marketing/what-is-digital-marketing
 3. Social Media Marketing

This practice promotes your brand and your content on social

media channels to increase brand awareness, drive traffic, and
generate leads for your business. The channels you can use in
social media marketing include:
• Facebook.
• Twitter.
• LinkedIn.
• Instagram.
• Snapchat.
• Pinterest.

source:
https://blog.hubspot.com/marketing/what-is-digital-marketing
 4. Pay Per Click (PPC)
PPC is a method of driving traffic to your website by paying a
publisher every time your ad is clicked. One of the most common
types of PPC is Google Ads, which allows you to pay for top slots
on Google's search engine results pages at a price "per click" of
the links you place. Other channels where you can use PPC
include:
• Paid ads on Facebook
• Here, users can pay to customize a video, image post, or slideshow, which Facebook
will publish to the newsfeeds of people who match your business's audience.
• Twitter Ads campaigns
• Here, users can pay to place a series of posts or profile badges to the news feeds of a
specific audience, all dedicated to accomplish a specific goal for your business. This
goal can be website traffic, more Twitter followers, tweet engagement, or even app
downloads.
• Sponsored Messages on LinkedIn
• Here, users can pay to send messages directly to specific LinkedIn users based on
their industry and background.

source:
https://blog.hubspot.com/marketing/what-is-digital-marketing
 5. Affiliate Marketing

This is a type of performance-based advertising where you receive

commission for promoting someone else's products or services on
your website. Affiliate marketing channels include:

• Hosting video ads through the YouTube Partner Program.

• Posting affiliate links from your social media accounts.

source:
https://blog.hubspot.com/marketing/what-is-digital-marketing
 6. Native Advertising

Native advertising is the use of paid ads that match the look, feel and
function of the media format in which they appear. Native ads are
often found in social media feeds, or as recommended content on a web
page. Unlike display ads or banner ads, native ads don't really look like
ads.

Native advertising refers to advertisements that are primarily content-led

and featured on a platform alongside other, non-paid content. BuzzFeed-
sponsored posts are a good example, but many people also consider
social media advertising to be "native" -- Facebook advertising and
Instagram advertising, for example.

source:
https://blog.hubspot.com/marketing/what-is-digital-marketing
 7. Marketing Automation
Marketing Automation refers to the software that serves to automate your
basic marketing operations. Many marketing departments can automate
repetitive tasks they would otherwise do manually, such as:
• Email newsletters
• Email automation doesn't just allow you to automatically send emails to your subscribers.
It can also help you shrink and expand your contact list as needed so your newsletters are
only going to the people who want to see them in their inboxes.
• Social media post scheduling
• If you want to grow your organization's presence on a social network, you need to post
frequently. This makes manual posting a bit of an unruly process. Social media scheduling
tools push your content to your social media channels for you, so you can spend more
time focusing on content strategy.
• Lead-nurturing workflows
• Generating leads, and converting those leads into customers, can be a long process. You
can automate that process by sending leads specific emails and content once they fit
certain criteria, such as when they download and open an ebook.
• Campaign tracking and reporting
• Marketing campaigns can include a ton of different people, emails, content, webpages,
phone calls, and more. Marketing automation can help you sort everything you work on by
the campaign it's serving, and then track the performance of that campaign based on the
progress all of these components make over time.

source:
https://blog.hubspot.com/marketing/what-is-digital-marketing
 8. Email Marketing
Companies use email marketing as a way of communicating with
their audiences. Email is often used to promote content, discounts
and events, as well as to direct people toward the business's website.
The types of emails you might send in an email marketing campaign
include:
• Blog subscription newsletters.
• Follow-up emails to website visitors who downloaded something.
• Customer welcome emails.
• Holiday promotions to loyalty program members.
• Tips or similar series emails for customer nurturing.

source:
https://blog.hubspot.com/marketing/what-is-digital-marketing
 9. Online PR
Online PR is the practice of securing earned online coverage with
digital publications, blogs, and other content-based websites. It's
much like traditional PR, but in the online space. The channels you
can use to maximize your PR efforts include:
• Reporter outreach via social media
• Talking to journalists on Twitter, for example, is a great way to develop a relationship with
the press that produces earned media opportunities for your company.
• Engaging online reviews of your company
• When someone reviews your company online, whether that review is good or bad, your
instinct might be not to touch it. On the contrary, engaging company reviews helps you
humanize your brand and deliver powerful messaging that protects your reputation.
• Engaging comments on your personal website or blog
• Similar to the way you'd respond to reviews of your company, responding to the people
who are reading your content is the best way to generate productive conversation
around your industry.

source:
https://blog.hubspot.com/marketing/what-is-digital-marketing
 10. Inbound Marketing

Inbound marketing refers to a marketing methodology wherein you

attract, engage, and delight customers at every stage of the buyer's
journey. You can use every digital marketing tactic listed before,
throughout an inbound marketing strategy, to create a customer
experience that works with the customer, not against them.

source:
https://blog.hubspot.com/marketing/what-is-digital-marketing
 Advantages of Digital Marketing
The main advantage of digital marketing is that a targeted audience can be
reached in a cost-effective and measurable way. Other digital marketing
advantages include increasing brand loyalty and driving online sales.
The benefits of digital marketing include:
• Global reach
• a website allows you to find new markets and trade globally for only a small investment.
• Lower cost
• a properly planned and well targeted digital marketing campaign can reach the right customers at a
much lower cost than traditional marketing methods.
• Trackable, measurable results
• measuring your online marketing with web analytics and other online metric tools makes it easier to
establish how effective your campaign has been. You can obtain detailed information about how
customers use your website or respond to your advertising.
• Personalisation
• if your customer database is linked to your website, then whenever someone visits the site, you can
greet them with targeted offers. The more they buy from you, the more you can refine your customer
profile and market effectively to them.
• Social currency
• digital marketing lets you create engaging campaigns using content marketing tactics. This content
(images, videos, articles) can gain social currency - being passed from user to user and becoming viral.
• Improved conversion rates
• if you have a website, then your customers are only ever a few clicks away from making a purchase.
Unlike other media which require people to get up and make a phone call, or go to a shop, digital
marketing can be seamless and immediate.

source: https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-digital-marketing
 Disadvantages of Digital Marketing
Some of the downsides and challenges of digital marketing you should
be aware of include:
• Skills and training
• You will need to ensure that your staff have the right knowledge and expertise to
carry out digital marketing with success. Tools, platforms and trends change
rapidly and it’s vital that you keep up-to-date.
• Time consuming
• Tasks such as optimising online advertising campaigns and creating marketing
content can take up a lot of time. It’s important to measure your results to ensure a
return-on-investment.
• High competition
• while you can reach a global audience with digital marketing, you are also up
against global competition. It can be a challenge to stand out against competitors
and to grab attention among the many messages aimed at consumers online.
• Complaints and feedback
• any negative feedback or criticism of your brand is can be visible to your audience
through social media and review websites. Carrying out effective customer service
online can be challenging. Negative comments or failure to respond effectively can
damage your brand reputation.
• Security and privacy issues
• there are a number of legal considerations around collecting and using customer
data for digital marketing purposes. Take care to comply with the rules regarding
privacy and data protection.
source: https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-digital-marketing
 Some of The Most Significant
Digital Marketing Skills

In the freelance market place, which skills are most relevant and in-demand
that a person should focus on? The most significant skills are:

• Social Media Management: This involves tasks such as post-making and

sharing, social media advertising, increasing followers, measuring the
performance of posts and dealing with customer queries
• Ad Creation: This involves creating appealing, effective & relevant ads for
social media
• Blog Writing: involves coming up with new topics & information that makes
people read your blog
• Lead Generation: involves creating frameworks that allow for more people
to be interested in buying a client’s product.
 Types of Freelancing Jobs for
Digital Marketers

Most common jobs available on freelancing platform include:

• Social Media Manager: where you are required to manage client’s social
media pages
• SEO Expert: where you are required to use SEO skills to improve the
search ranking of the client’s website
• Online Sales Expert: where you are required to create a framework that
creates leads for the clients.