Marketing is defined as the process by which companies supply a valued product or service to consumers and in return capture value from said consumers. “Marketing is strategic communications and promotions delivered in a mix of forms, such as advertising, public relations, and direct marketing, through multiple online and offline channels, to acquire customers, retain customers, increase share of wallet and shorten the sales cycle. Valerie Oben – President, Foxboro Consulting Inc.” The first goal of marketing is to attract new customers by providing a desired product or service. The second goal is to keep the current customer base loyal while continuously striving to increase that base.
As company President both marketing goals and strategies are equally important to the growth and profitability of my company. By targeting new clients to purchase my product will expand my potential sales growth. The more new clients I can market to that purchase my product I can increase the value or service of the product having all lead and product costs covered. New clients that purchase are vital to accomplishing the second goal of retaining members and target marketing the products or services they purchased before or with new products or services they may be interested in trying.
I’ll use Directv as an example. I am currently a DirecTV customer, but was previously had Cox cable. What made me switch was simple, I got a direct mail piece that highlighted the benefits of switching along with ways to save money down the road with referrals. It had very direct and bold statements on their starting price, which was substantially lower than cable, they offered a free year of NFL Sunday Ticket and valued it at $365. The value they displayed made it a no brainer situation for me to want to become a client of DirecTV. I continue to be a DirecTV client and pay the normal premiums, I stay because the price is still lower than that of Cox and I have referrals that I receive a credit for each month. When I do call them and talk to them about customer retention they have always had something to offer, whether it be a promotional discount on my premiums, a free movie rental or discount on next years NFL Sunday ticket.
2. What is the difference between a need, a want, and a demand? Describe the need versus want for the following items: a car, Gatorade, Nike Shoes, basic foods, an iPod, and housing.
Needs are the basic human requirements; people need food, air, water, clothing, and shelter to survive and also have strong needs for education, and entertainment. These needs become wants when they are directed to specific objects that might satisfy the need, though these wants in themselves are not essential for living. Someone will need food but may want a hamburger, fries and a soft drink, but someone else will also need food in just the same manner but will want something different. Wants are therefore shaped by one's society and surroundings. The third concept, demands, are wants for specific products backed by an ability to pay. Many people want a luxury car or a weekend break in the Caribbean, but only a few people are willing and able to buy one. Companies must measure not only how many people want their product but also how many would actually be willing and able to buy it.
For example, you saw a commercial for a fully loaded 4 door truck, based off the commercial you now want that exact model and truck you saw. Wanting the fully loaded version is much different than a need, you may not need the truck at all, or maybe you do need a truck for work to haul things with or tow, but can easily pick the basic truck they have and accomplish the same task. In the case of Gatorade, Gatorade sells you on the fact it hydrates you better than water with athletes working extremely hard and…