Intro to Marketing

UCSD MGTA 451-Marketing

Kenneth C. Wilbur

Agenda

Day 1: Intro to Marketing, MAA Assignment,
Causality & Advertising

Day 2: MAA Videos, Quiz

“Make something people want.”

"This is probably the thing we see wrong with Y Combinator apps most frequently, is that people have not thought about the market first, and what people want first."

Why? Long-term profits

“Marketing is too important to be left to the marketing people.”

Traditional Marketing Frameworks: Mainly Vibes

  • Situation analysis: 3/4/5 C’s

        - Customer Competitor Company / Context / Collaborators

  • Strategic decisions: STP

        - Segmentation Targeting Positioning

  • Tactical decisions: 4/…/10 P’s, AKA the “Marketing Mix”

        - Product Price Place Promotion

  • Brand equity

        - Brand awareness Brand associations Perceived quality Brand loyalty

Modern Marketing Frameworks:
Mostly Empirical

  • Purchase funnel AKA Customer journey

        - Attention Interest Desire Conviction Action Satisfaction
    - Visit Consider Purchase Retention Advocacy

  • Customer lifetime value

        - Acquisition Retention Monetization Referral Divestiture

  • Marketing mix modeling

        - Regression analysis to estimate marketing mix effects on sales

  • Heterogeneity, Targeting & Personalization

        - Experience, needs, perceptions, wtp, purchases, recommendations, reviews

Customer Insights

  • Market research

        - Interviews Focus groups Surveys Experiments Observations

  • Conjoint analysis

        - Stated-preference data trading off attributes, price
    - Quantifies how potential attributes affect demand and profits
    - Can predict competitor response and proactive strategy
    - Multiple limitations, but powerful and popular

  • Net Promoter Score, Reviews

        - NPS: "How likely are you to recommend this product to a friend?"
    - Simplistic but powerful indicator of customer satisfaction
    - Helps to identify most & least important aspects of value proposition, pain points, misunderstandings, segmentation, opportunities to improve
    - Reviews are super important, but also : truncated distribution, non-representative, fake-able

“Our core business is connected with the customers’ needs and we will not be able to satisfy them if we don’t have a deep sense of empathy.”

Sales

  • Sales is widespread in B2B industries

  • Salespeople offer

        - customer needs discovery & product customization
    - customer risk mitigation & service
    - relationships & trust; can generate new leads
    - education, negotiation, even customer agency

  • Marketing dept usually generates leads,
    then constrains & supports sales

  • How do marketing and sales usually interact?

        - What role do analytics play in sales?

Bottom line

Advertising & sales cannot fix a broken value proposition, misunderstanding of consumer needs, unsustainable competitive position, absence of customer trust

      - We have to start with the customer first, then monitor and test our understanding as things evolve

Marketing strategy == sustainable value proposition vs. competitors based on the market’s heterogeneous customer needs, perceptions and behaviors

Advertising & sales can help to implement a good strategy

      - Without a strategy, we're shooting in the dark, likely wasting money
      - This is why marketing has to be more than just ads & sales

Takeaways

  • Customers keep the lights on

    - Customers might buy if they trust the product will meet their needs

  • Good marketing understands and profitably meets customer needs to maximize long-run profits

    - Ads and sales require a compelling strategy to be profitable

  • Long-term focus aligns customer and company interests, sidesteps most ethical problems

    - We have to genuinely serve our target customers

Going deeper