I entitled this article Marketing basics for students and beginners. The article wil explain you marketing introduction and very basic that must be known.
In the next several minutes, you will understand the marketing theory:
- How to begin effectively promoting a business.
- How to avoid potentially costly pitfalls that beginner marketer typically makes.
- Four Pillars of Marketing.
- The difference between advertising and marketing.
- Unique value proposition.
- Market segmentation and selecting target market.
- CRM important factors.
- Market valuation and market sizing
- Customer development model.
- Marketing strategy concepts.
Before reading further, watch the video Marketing theory for student and beginner marketer.
Things to know about Marketing video lecture:
The Basic Theory number one: Four Pillars of Marketing.
The related information you may read:
- Marketing basic Frequently-Asked Questions:
http://marketingforbeginner.blogspot.com/2014/04/marketing-basics-faq.html
- Fundamental marketing theory for Beginners:
http://marketingforbeginner.blogspot.com/2014/04/marketing-theory-for-beginners.html
===========================
The key for getting success in business: being more efficient in developing, distributing, and communicating the values to selected target customers.
Four pillars of marketing:
1. Target market.
2. Customer needs.
3. Integrated marketing
4. Profitability.
A company must satisfy a set of people (customers). These people must be well-defined. The company must focus on these distinct groups of customers to get success. These set of people is called target market.
The customer is an end user or people who are interacting with the product. We can say it individuals who are affecting the buying decision.
Understanding your customer is important. Why? Because an organization can design specification of product or service based on needs of customers or target market. A company that produces the things based on the needs of targeted customer has a high conversion rate.
Once you set your well-defined set of customers (define a right target market) you can develop customer needs and then perform the next marketing action plan.
One of marketing concepts that the students and beginners must understand: translating customer needs into marketing action. It means company's marketing strategy is developed based on customer needs.
1. Gather customer information.
- Selecting target market (who are your customer?)
- Collecting what information must be gathered.
- Determining how the information can be collected.
2. Translate into customer needs.
3. Manage the needs.
The important thing must be remembered: gathering information from a customer (suggestion, complaint, idea, etc.) is an endless process. It is a nonstop process to make a continual improvement.
We call it integrated because it comprises complete discipline including planning, brand development, advertising, social media marketing, digital marketing, research, marketing communication, analytics, public relation, and so on.
You measure the profitability with two factors; they are income and expenses.
Income is money that is generated from business activities whereas expenses are the cost of resources that are consumed by business activities.
Marketing activities like ads need costs. As a marketer, you have to understand budgeting. In addition to this, you must analyze whether your marketing expenses returns more income or your marketing expenses have no return. Therefore, you must learn financial for a marketer to sharpen your integrated marketing skills.
The Basic Theory number two: the differences between marketing and advertising.
The related information you may read:
- ATL and BTL advertising: http://marketingforbeginner.blogspot.com/2012/07/atl-and-btl-advertising.html
- The difference between marketing and advertising from basic perspective: http://marketingforbeginner.blogspot.com/2015/01/difference-between-marketing-and-advertising.html
- Basic advertising techniques you must know:
http://marketingforbeginner.blogspot.com/2011/11/advertising-techniques.html
- Advertising techniques Question and Answer:
http://marketingforbeginner.blogspot.com/2015/10/your-4-foremost-advertising-techniques-question-answer.html
===========================
My friends confuse the differences between advertising and marketing. They thought an ad is marketing and marketing is ads.
That's why I put the second marketing theory here to explain you the differences between marketing and advertising.
The easier way to comprehend this matter is by knowing the definition of those.
Marketing is the activity and process for developing, delivering, and communicating the business values for customers.
Advertising is about solving the marketing problem. It is a particular action in one of marketing activities that develop and delivering messages to the targeted people, at the right place and time. The ultimate goal is to make a sell.
The conclusion is advertising is a subset of marketing.
The Basic Theory number three: Unique value proposition
The related information you may read:
- The importance of value proposition:
http://marketingforbeginner.blogspot.com/2015/02/why-value-proposition-approach-is-important.html
===========================
What is unique value proposition?
I will illustrate with a simple explanation below.
A value proposition is a statement which states the specific benefits of a product or service you provide to a buyer or client.
A unique means the statement shows the customers why they should buy your product because the product is superior offers among the competitors.
I repeat. A unique value proposition answers following question,"Why should customers buy from you?"
You can find your unique value proposition by answering the following questions:
1. Who are your customers? (target marketing, market segmentation)
2. What are their problems? (gathering information from them)
3. What do competitors solve the problems today? (research, competitive intelligence)
4. How do you address the issues against the competitors? (You must provide better solution than them)
Once you completely finished the final step, you will find your unique value proposition.
The Basic Theory number four: How to segment market and select target market?
In the next several minutes, you will understand the marketing theory:
- How to begin effectively promoting a business.
- How to avoid potentially costly pitfalls that beginner marketer typically makes.
- Four Pillars of Marketing.
- The difference between advertising and marketing.
- Unique value proposition.
- Market segmentation and selecting target market.
- CRM important factors.
- Market valuation and market sizing
- Customer development model.
- Marketing strategy concepts.
Before reading further, watch the video Marketing theory for student and beginner marketer.
Things to know about Marketing video lecture:
The Basic Theory number one: Four Pillars of Marketing.
Four Pillars of Marketing
===========================The related information you may read:
- Marketing basic Frequently-Asked Questions:
http://marketingforbeginner.blogspot.com/2014/04/marketing-basics-faq.html
- Fundamental marketing theory for Beginners:
http://marketingforbeginner.blogspot.com/2014/04/marketing-theory-for-beginners.html
===========================
Four pillars of marketing:
1. Target market.
2. Customer needs.
3. Integrated marketing
4. Profitability.
Target market
Target marketing and market positioning are the fundamental processes in a market segmentation process.A company must satisfy a set of people (customers). These people must be well-defined. The company must focus on these distinct groups of customers to get success. These set of people is called target market.
Customer needs
Who are the customers?The customer is an end user or people who are interacting with the product. We can say it individuals who are affecting the buying decision.
Understanding your customer is important. Why? Because an organization can design specification of product or service based on needs of customers or target market. A company that produces the things based on the needs of targeted customer has a high conversion rate.
Once you set your well-defined set of customers (define a right target market) you can develop customer needs and then perform the next marketing action plan.
One of marketing concepts that the students and beginners must understand: translating customer needs into marketing action. It means company's marketing strategy is developed based on customer needs.
There are three steps developing customer needs
1. Gather customer information.
- Selecting target market (who are your customer?)
- Collecting what information must be gathered.
- Determining how the information can be collected.
2. Translate into customer needs.
3. Manage the needs.
The important thing must be remembered: gathering information from a customer (suggestion, complaint, idea, etc.) is an endless process. It is a nonstop process to make a continual improvement.
Integrated marketing
Integrated marketing means implementing marketing campaigns comprehensively to grow market share and finally to increase a company's profit.We call it integrated because it comprises complete discipline including planning, brand development, advertising, social media marketing, digital marketing, research, marketing communication, analytics, public relation, and so on.
Profitability
The ultimate goal of every company is profitability. Without it, a business will not survive in the long term.You measure the profitability with two factors; they are income and expenses.
Income is money that is generated from business activities whereas expenses are the cost of resources that are consumed by business activities.
Marketing activities like ads need costs. As a marketer, you have to understand budgeting. In addition to this, you must analyze whether your marketing expenses returns more income or your marketing expenses have no return. Therefore, you must learn financial for a marketer to sharpen your integrated marketing skills.
The Basic Theory number two: the differences between marketing and advertising.
Difference between advertising and marketing
===========================The related information you may read:
- ATL and BTL advertising: http://marketingforbeginner.blogspot.com/2012/07/atl-and-btl-advertising.html
- The difference between marketing and advertising from basic perspective: http://marketingforbeginner.blogspot.com/2015/01/difference-between-marketing-and-advertising.html
- Basic advertising techniques you must know:
http://marketingforbeginner.blogspot.com/2011/11/advertising-techniques.html
- Advertising techniques Question and Answer:
http://marketingforbeginner.blogspot.com/2015/10/your-4-foremost-advertising-techniques-question-answer.html
===========================
That's why I put the second marketing theory here to explain you the differences between marketing and advertising.
The easier way to comprehend this matter is by knowing the definition of those.
Marketing is the activity and process for developing, delivering, and communicating the business values for customers.
Advertising is about solving the marketing problem. It is a particular action in one of marketing activities that develop and delivering messages to the targeted people, at the right place and time. The ultimate goal is to make a sell.
The conclusion is advertising is a subset of marketing.
The Basic Theory number three: Unique value proposition
The basic illustration of Unique values proposition
===========================The related information you may read:
- The importance of value proposition:
http://marketingforbeginner.blogspot.com/2015/02/why-value-proposition-approach-is-important.html
===========================
What is unique value proposition?
I will illustrate with a simple explanation below.
A value proposition is a statement which states the specific benefits of a product or service you provide to a buyer or client.
A unique means the statement shows the customers why they should buy your product because the product is superior offers among the competitors.
I repeat. A unique value proposition answers following question,"Why should customers buy from you?"
The Steps for developing unique value proposition
You can find your unique value proposition by answering the following questions:
1. Who are your customers? (target marketing, market segmentation)
2. What are their problems? (gathering information from them)
3. What do competitors solve the problems today? (research, competitive intelligence)
4. How do you address the issues against the competitors? (You must provide better solution than them)
Once you completely finished the final step, you will find your unique value proposition.
The Basic Theory number four: How to segment market and select target market?
Selecting target market
===========================
The related information you may read:
- Market positioning concepts for Beginners:
http://marketingforbeginner.blogspot.com/2015/03/market-positioning-concept-for-beginners.html
- Target market for Beginners:
http://marketingforbeginner.blogspot.com/2015/03/market-targeting-concept-for-beginners.html
Watch this video about market segmentation introduction:
===========================
The related information you may read:
- Market positioning concepts for Beginners:
http://marketingforbeginner.blogspot.com/2015/03/market-positioning-concept-for-beginners.html
- Target market for Beginners:
http://marketingforbeginner.blogspot.com/2015/03/market-targeting-concept-for-beginners.html
Watch this video about market segmentation introduction:
===========================
The key marketing strategies are identification and selection of target market.
These things are related to others marketing activities. If this stuff is well performed, the others marketing actions are all right.
How to select target markets?
You can select it by performing two steps of actions, they are:
1. Market segmentation.
2. Selecting target market (the appropriate segmentation that is in accordance with your product specification or service)
Market segmentation
Market segmentation is dividing a market into segments. A segment is a potential target market.
I reiterate the definition for clarity. Segmenting the markets means dividing customers into particular groups who have relatively similar needs or wants.
How to segment the markets?
The basic theory of segmenting a market : differentiate the people on some basis, such as demographic, geographic, psychographic, behavior.
- Demographic basis comprises gender, age, income, education, etc.
- Geographic basis includes region, state, neighborhood, nation, and so on.
- Psychographic basis encompasses values, interests, attitudes, etc.
- Behavior basis comprises purchase frequency, buying habits, media usage, etc.
You can comprehend more about segmenting and targeting your market by reading an excellent article by Michael Lynn (Cornell University) here: http://scholarship.sha.cornell.edu/articles/243/
The Basic Theory number five: The important factors of CRM
Important factors for CRM
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The related information you may read:
- CRM for Beginners: http://marketingforbeginner.blogspot.com/2013/09/crm-for-dummies.html
- Inbound and Outbound CRM : http://marketingforbeginner.blogspot.com/2011/10/inbound-crm-and-outbound-crm.html
- CRM software: http://marketingforbeginner.blogspot.com/2011/09/crm-software.html
===========================
The related information you may read:
- CRM for Beginners: http://marketingforbeginner.blogspot.com/2013/09/crm-for-dummies.html
- Inbound and Outbound CRM : http://marketingforbeginner.blogspot.com/2011/10/inbound-crm-and-outbound-crm.html
- CRM software: http://marketingforbeginner.blogspot.com/2011/09/crm-software.html
===========================
Before continuing on this subject, I will recap the basic information about CRM.
CRM stands for Customer Relationship Management. CRM is one critical application for our business.
You can grasp the basic information about CRM in this blog here
Now back to the topic. There are two key factors in CRM. They are customer profiles management and customer participation.
Customer profiles
One of the key factors that make your business run well is an informed use of knowledge about customers. If this thing good, CRM will result better.
By understanding customers especially your target market, you can appropriately invest in valuable customers. In addition to this, you can reduce the cost you spend on your poorly performing consumers.
How to profiling a customer?
The first step is collecting customer data (data mining) then use the database as you need.
The essence: customer profiling is a technique that converts raw data about a customer into the strategic knowledge that reinforces your values to customers.
Customer participation
Customers have some contributions in the process of purchasing a product only if you make a mechanism for example inviting customers to participate actively.
The examples of participation: give a feedback after purchasing, offer an idea about product specification, make some discussion about his need and ask you for the solution/offer, spread your message to others, etc.
The Basic Theory number six: Market sizing
Estimating market size
===========================
The related information you may read:
- How to perform market opportunity analysis:
http://marketingforbeginner.blogspot.com/2015/03/how-to-conduct-market-opportunity-analysis.html
- How to market your product succesfully:
http://marketingforbeginner.blogspot.com/2014/11/how-to-market-your-product-successfully.html
===========================
The related information you may read:
- How to perform market opportunity analysis:
http://marketingforbeginner.blogspot.com/2015/03/how-to-conduct-market-opportunity-analysis.html
- How to market your product succesfully:
http://marketingforbeginner.blogspot.com/2014/11/how-to-market-your-product-successfully.html
===========================
The goal of estimating market size: calculate the financial potential of your business. In the easier word, we can say "translate from 'how many end user' to 'show me the money.'"
There are some measurements:
1. Money (USD)
2. Units.
a. People (how many people)
b. Consumption (how many rooms occupied, kilowatt hours, washloads, and so on).
Size market levels
1. Target market
A target market is a market segmentation that has been chosen as a target market. Usually, they are based on demographic segment, geographic segment, psychographic segment, behavior segment. There are some company mix these segment.
2. Served Addressable Market (SAM)
This level is part of Total Addressable Market for which your value proposition is strongest.
3. Total Addressable Market (TAM)
TAM is the highest level. It is value for all the buyer and seller relationships participating in the market.
Performing Market valuation
Basic step performing market valuation:
1. Define target market
2. Calculate the number
You can obtain the raw number of your target market from:
- Interview/survey
You can utilize consumer survey from Google here:
For obtaining the data, you can interview the expert in your industry, inventors, investors, customers, etc.
- Consumer Report/annual report from government or private company
- Trade association
- Census
- Competitor report (existing company who sell the same product/current players)
- Universities (published journal, etc.)
3. Penetration Analysis
You can extrapolate your real customer by estimating what percentage will use your product or service.
4. Set volume and value
In this stage, you will find the final number of market valuation (market size).
You can convert the number of people to amount of money by estimating how amount of money you earn from one customer, then multiplied by the number of customers. Finally, you get the total sum of money.
Estimating market size from answering the questions
1. Who are your customers?
2. Where are they located?
3. How many customers are there?
4. How often do they consume?
5. What is the competition?
6. What are people paying?
7. What is the potential for the market to develop?
8. What is my share of the market?
The important thing for getting success in your business:
There are two numbers for your concern:
1. The total cost of product development.
2. The total market size that has been converted to an amount of money.
The essence is total market size must be proportionally larger than the total cost of development.
The Basic Theory number seven: Customer Development Model
Customer Development Model
===========================
The related information you may read:
- Customer centric explanation:
http://marketingforbeginner.blogspot.com/2015/02/what-is-customer-centric-marketing.html
- Customer oriented approach:
http://marketingforbeginner.blogspot.com/2011/01/customer-oriented-approach-one-of.html
===========================
The related information you may read:
- Customer centric explanation:
http://marketingforbeginner.blogspot.com/2015/02/what-is-customer-centric-marketing.html
- Customer oriented approach:
http://marketingforbeginner.blogspot.com/2011/01/customer-oriented-approach-one-of.html
===========================
Customer development model is an excerpt from The Four steps to the Epiphany by Steve Blank.
There are four stages in the customer development model:
1. Customer Discovery
2. Customer Validation
3. Customer Creation
4. Company Building
Notes: each step in customer development is iterative.
Customer Discovery
The goal is finding out who are your customers and make sure that your product or service can solve their problem.
Customer validation
The purpose of this step is building repeatable sales from a loyal customer and whether you can grow the market share or you only have a current limited market.
Thing to concern:
These two steps (customer discovery and customer validation) are an iterated process. It means you should verify the market, locate the customers, test your unique value proposition of your product, establish the price, and check out the sales cycle.
If you find a group of repeatable customers with repeatable sales, then you move the next step.
Customer creation
The goal in this phase is creating consumer demand and drive that demand into the sales channel.
Company building
This step is conducted when you have stability in the previous steps. Now, you focus on building the company to get more success.
Three fundamental actions in customer development phases.
1. Find out the exact problem from people, and make sure your product or service can completely solve the problem.
It is done when designing the product and before launching your product.
2. Get early feedback on your product from the customer.
You can do it before soft launch by showing your product prototypes to the customers. So, you can soon improve your product in product designing phase or product development phase.
3. Involve the customers/people.
Listen, listen, and listen the people talking your product, people complaining your product, etc. You can also educate the people about your product value and benefits and see the feedback.
The Basic Theory number eight: Marketing Strategy Concepts
Marketing Strategy Concept
===========================
The related information you may read:
The related information you may read:
- Very simple and basic marketing strategy examples:
http://marketingforbeginner.blogspot.com/2014/08/marketing-strategy-examples.html
http://marketingforbeginner.blogspot.com/2014/08/marketing-strategy-examples.html
- Minimalist marketing strategy examples:
http://marketingforbeginner.blogspot.com/2013/01/minimalist-marketing-strategy.html
===========================
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Marketing strategy introduction
- Marketing strategy is fundamental factor for growth and success.
- Marketing strategy is an outline for what company want to obtain through marketing activities.
- Usually a marketing strategy is written thoroughly in a marketing plan (marketing plan includes the steps to achieve the goals which demonstrate in the marketing strategy).
- A marketing plan is a crucial planning tool for business.
- The key of marketing strategy is an analysis of the competitive advantage.
- Marketing strategy is generated from company's mission statement and goals.
Marketing plan steps
1. Define the clear objective of the business.
2. Observe a marketplace perspective.
3. Observe any constrains or limitation.
4. Set the elements or strategies neede.
Five key marketing strategies
1. Product positioning and differentiation (key benefits that you offers to customers)
2. Marketing research (determine the needs and problem of the customers)
3. Target marketing (select which segment market to target)
4. Marketing mix (set how to satisfy the right people with a right product in a right place at a right time and a right price)
5. Environmental analysis (analyze how the external factors changing, examine how the changing will influence your business, evaluate threats and opportunities, etc.)
That’s the end of my notes about Marketing basics for students and I hope this article is useful also for beginners. Thank you for reading. You can read more about another article in this blog. If you found this information is beneficial for you, please share this article to others, so they can get a beneficial marketing concepts like you.
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