marketing - ProFile 2 UNIT 5 Marketing MARKETING VERSUS...

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Unformatted text preview: ProFile 2 UNIT 5 Marketing MARKETING VERSUS SELLING SEGMENTATION OF CUSTOMERS The terms selling and marketing are sometimes used carelessly as interchangeable synonyms, but there are important differences. A sales-based approach starts with a product and involves finding customers who will buy it. By contrast, a marketing approach has the needs, wants and aspirations of customers as its starting point – all else flows from this. Marketing involves successfully identifying or anticipating the needs of customers. Satisfying customers may entail providing them with the right kind of products and services, at the right price, distributing them in the right way, with the right kind of customer care and after-sales service. So, while selling is an integral part of the marketing process, marketing encompasses much more. A crucial part of the marketing process is to correctly identify the type of customer that you want to target. A product which aims at everyone is likely to satisfy nobody. THE MARKETING MIX: THE FOUR Ps OR FOUR Cs? What marketing involves is often called the Marketing Mix, and is expressed as the four Ps, or four Cs. The Marketing Mix is the blend of the following elements: • Product What is on offer? What are its USPs? • Price • Place How and where will it be sold and distributed? • Promotion How will the customer be told? What is the best medium for the message? Or we can define marketing from a customer’s perspective with the four Cs, as follows. • Customer value The value / utility of the product as perceived by the customer (this replaces Product in the four Ps). • Cost to the customer The product’s price and additional cost in time and trouble (replaces Price). • Convenience Ease of purchase (replaces Place). • Communication Emphasizing the two-way process between buyer and seller (replaces the one-way process suggested by Promotion). See the ProFile Student’s site: www.oup.com/elt/profile Socio-economic groupings which classify people from A-E according to their occupation are sometimes used in Britain. This would rank an A1 as someone in the top management bracket, and an ordinary worker as a C1. The ACORN system, based on where people live, provides a better profile of consumers. ACORN (A classification of residential neighbourhoods) has 39 neighbourhood types, and is a more accurate way of profiling consumers. It is used in marketing research and for mail shots. VALS (Values and life styles segmentation) classifies people by their values and how they live. For example, belongers are patriotic, stable, sentimental traditionalists who are content with their lives; societally conscious are mature, successful, mission-oriented people who like causes. A further classification is the Family life cycle, which described people by the stage they are at in their family lives. 1 2 3 4 5 young singles young couples no children couples with a child under 6 couples with dependent children older couples no children at home (empty nesters) 6 older single people One more classification is that of Marketing generations: this groups people according to when they were born: baby boomers, generation X, generation Y. The theory is that people born around the same period have similar attitudes and aspirations. Baby boomers, the generation born in the fifteen years or so after WWII, have been responsible for the success of many everyday brands. Photocopiable © Oxford University Press ...
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