Understand the customer with research and marketing plan

JWI 518, Marketing in a Global Environment, week2 summary, 10/15/12


Is marketing an art or a science ?

My position - marketing is both an art and a science
Based on the class lectures and the book (Kotler, 2012), my short answer is that marketing is both an art and a science. To be effective in reaching and influencing the right customers - and influencing their perceptions and preferences, with the right promotions at the right time, leaders will need to carefully balance data and instinct as appropriate for the business situation. To do this, marketing leaders need to conduct research through focus groups (to collect qualitative data) and surveys (to collect quantitative data) and proceed with a marketing plan with 8 attributes including goals, company SWOT, PESTEL evaluation of external environment, buyer analysis, strategy, tactical options, timetable and evaluation. I also believe that when time to make the marketing decision is short and competition is fierce, a leader must boldly move forward with decisions based on his gut instinct.

Jack Welch's position - marketing is both an art and a science
Jack Welch says marketing is both and art as well as science, depending on the skills of those who make the decision. He confesses to being guilty of practicing it more as an art but is quick to appreciate those who practice it as a science. He adds that there are companies now that do a fantastic scientific job of reaching Right customers, Right Promotions, at Right Time. Finally, Jack Welch states that for mature products it is much more an art to catch the eye of the consumer around features that reach right into the soul and touch them.

Kotler's position - marketing is an art as well as science
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Kotler (2012) in the textbook makes a similar argument: "Marketing management is the art and science of choosing target markets and getting,keeping, growing customers through delivering and communicating superior customer value. Marketing is about identifying and meeting human and social needs profitably. The aim of marketing is to make selling superflous - to know and understand the customer so well that the product or service fits him and sells itself. The role of effective Marketing is to identify needs, wants, interests of target customers, satisfy more effectively and efficiently than competitors while preserving or enhancing consumers' and society's long-term well-being".

Marketing begins with understanding the customer(JWI 518, week1, lecture1)
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Need to understand why the customer makes a purchase and then influence the perception and preferences before he makes the next purchase. To do this, marketer needs to:
(a) Convey a persuasive message to target audience
(b) Design marketing pieces to stop customers, attract eyeballs and present a message
(c) Reinforce brand's image and communicate it is still around
(d) Create subconscious images to influence customer behavior
(e) People like to do business with people they like - so use right spokespersons to influence buying decisions at a later date

To understand the customer, Need a marketing plan & solid research
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Clearly, understanding the customer's perceptions and preferences is a critical first step. To do this,  a marketing plan - like a road map - is needed. It shows a company the best route to get where it wants to go. Without a map to guide its marketing journey,
a company may end up a long way from where it intended (JWI 518, week2, lecture1)

One of the worst approaches a company can take is to conduct marketing on an ad hoc basis.
A company says something like, “That sounds like a good idea. Let’s try it.”

Marketing plan must have eight attributes (week 2, lecture1):
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(1) Goals and Objectives
A company must have a clear idea of what it wants to accomplish with its marketing plan.  Does it want to grow sales, increase market share, enhance brand image, introduce a new brand, or reposition an aging brand?  Did we achieve our goals or not?
(2) Company Evaluation
A marketing plan must take into account the strengths and resources of the company and its weaknesses–profitability, product lines, acquisitions, management skills, technological capabilities, image with the public, and the list goes on.
(3) Environmental Evaluation
It means analyzing all the outside factors that can influence the target market or the company eg. PESTEL, STEEP
(4) Buyer Analysis
An analysis of buyer motivation forms the foundation upon which the marketing plan can be built. Buying first takes place in the mind of the buyer.
(5) Strategy - the overall approach marketing message will take
(6) Tactics - how will the firm implement the marketing strategy
(7) Timetable - outline what needs to happen when for marketing
(8) Evaluation - did the marketing effort succeed or fail ?

To understand the customer, conduct research
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Research much have a purpose and be designed to answer specific questions.
Primary research has qualitative and quantitative approaches
  Qualitative - focus groups to uncover depth of attitudes, ideas and feelings
  Quantitative - Surveys to learn about buyer's attitudes and behaviors
Secondary research consists of company research, govt publications, trade and marketing journals, internet

Dr DP