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1 - 2 Marketing

Marketing refers to business activities concerning the overall corporate activities, such as survey and analysis of market and customers, product development and design, advertising and public relations, business operations, distribution, sales promotion. In other words, marketing activities range from an accurate understanding of the needs of the market/customer through survey and analysis, and planning of new product development, up to technical development

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performed according to the plan, designing and manufacturing of developed products, and sales and evaluation in the target market. In marketing, a marketing theory is employed. This is a theory that compiles the techniques for selling and providing products and services to the market and consumers.

1-2-1 Marketing Theory

Marketing theory is a theory that the practices of marketing are systematically organized. According to the marketing theory, the marketing strategy is created and executed as per the below-mentioned procedure.

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Three successive rounded boxes show Marketing analysis, Formulation of the marketing strategy, and Implementation and evaluation of the marketing strategy.

(1) Marketing analysis

Marketing analysis refers to the analysis of the market size, customer needs, management resources and performance of a company, and competitive relationships with other companies. The typical marketing analysis techniques include the following.

(i) 3C analysis

This is a technique of analyzing the 3Cs – namely Customer, Competitor, and Company. Its purpose is to find out the gap between the KFS (Key Factor for Success) of the business and the analysis results of a company, and then understand the business environment. In customer analysis, the LTV (LifeTime Value) acts as the indicator. Lifetime value refers to the amount of money used by the customer throughout his/her life or the degree of contribution. It is an indicator used to improve cost effectiveness while opportunity loss is avoided, and to control a balance between CS (Customer Satisfaction) and profits. A strategy used to improve the lifetime value is the brand strategy that improves the brand image of the company brand and product brand. This strategy leads to an improvement in the loyalty (i.e. customer loyalty) and commitment of the customer with respect to the products and services of a company. The effect of gaining a long-term repeater can be expected.

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(ii) 5F analysis (5 Forces Analysis)

This is a technique of analyzing the positioning of a company in the industry from the five viewpoints of suppliers, new entrants, customers, substitute products, and hostile relationships between competitors.

(iii) PEST analysis

This is a technique of analyzing the external environment of “Politics”, “Economics”, “Society”, and “Technology”. · 1 question

(iv) Marketing research

This is a technique of investigating and analyzing market (i.e., customer) trends. Since it is realistically impossible to conduct a marketing research focusing on all customers, the investigation results collected from specific sampled customers (i.e., focus group) are analyzed statistically.

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(2) Creation of the marketing strategy

In most cases, the marketing strategy is created through the procedure of STP analysis. According to STP analysis, the marketing strategy is created on the basis of the concept that “Rather than targeting all customers, it is more effective to specify only those customers who enable effective expansion of business as compared with competitors.”

When the marketing strategy is created on the basis of Positioning of STP analysis, the following concept is used.

(i) Marketing mix

This is a combination of several elements necessary for a company to achieve its objectives in the target market. This includes the seller’s perspectives (4P) and the buyer’s perspectives (4C). · 1 question

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Seller’s perspectives (4P)	Buyer’s perspectives (4C)
Product	Customer value
Price	Customer cost
Place	Convenience
Promotion	Communication

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What is important at the time of using marketing mix is a planning and management activity called merchandising. This involves the provision of products matching the needs of the target customers with appropriate pricing and timing.

(ii) Consumer behavior model

This is a model that systematically organizes the behavior of consumers and is used as a policy at the time of appealing to the target (i.e., customers).

Model	Content
AIDMA	General purchase model (Attention, Interest, Desire, Memory, Action)
	AMTUL Customer fixed model (Aware, Memory, Trial, Usage, Loyalty)
AISAS	Net purchase model (Attention, Interest, Search, Action, Share)

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(iii) Innovator theory

This is a theory of classifying or analyzing the product purchase approach of customers in order of the earliest purchase time of new products. In this regard, an early adopter has an important existence as he/she plays an important role in the penetration of a new product · 1 question

in the market as an opinion leader who has a large power of influence on others.

Name	Targeted person
Innovators	An innovator who likes novel things
Early adopters	An early adopter who is sensitive to prevalent things
Early majority	Relatively cautious early majority
Late majority	Somewhat skeptical late majority
Laggards	Most conservative laggards

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(iv) Service profit chain

This is a model that was advocated by James L. Heskett on the basis of his idea that “customer satisfaction and employee satisfaction have a close relationship.” Heskett classified customers into the following four categories and explained the importance of improving customer satisfaction.

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The original two-axis matrix places customer loyalty vertically and customer satisfaction horizontally. Captive is upper left, Propagandist upper right, Terrorist lower left and Mercenary lower right. The original explanatory labels within each quadrant remain in the source pixels.

According to the service profit chain, it is advocated that an improvement in employee satisfaction based on an improvement in the in-house service will result in an improvement in customer satisfaction.

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Source visual description

The source flow links improvements in employee satisfaction, internal service, employee productivity, service and customer satisfaction/loyalty with expansion of sales and profit. Original arrows and feedback connections are retained in the crop.

(3) Implementation and evaluation of the marketing strategy

The created marketing strategy is implemented, and the result is evaluated. While the evaluation procedure and evaluation viewpoint differ depending on the industry and business, these are generally evaluated on the basis of the sales volume, market share, and sales quantity. Even in the case of marketing, since the PDCA cycle is repeated, the execution result is evaluated, and a new marketing strategy is created on the basis of the evaluation result.