PRODUCT DEVELOPMENT
Eugénie Vande Walle
2023-2024 Bachelor of business management
,MARKETING
• Convincing the costumers/buyers
• Interacting
• Costumers experience
Marketing?
1. All around you events, offline & online advertising such as billboarding & social media advertising,
Apps on your smartphone, new disruptive products & services like Uber Eats, Airbnb,
2. Marketing communications is a sub-set of overall Marketing
Marketing = “strategic marketing” build on the 4P’s
(Marketing) communications is about communication & promotions (offline and online advertising & other
communication channels)
3. Marketing is for leading brands, but also for not-for-profit organisations (fundraising activities),
museums, university colleges, etc.
Strategic marketing ≠marketing communications
• (product, channel, pricing) vs. (advertising, social media influencers, billboards, etc.)
• communication & branding are about ‘activation tactics’ … getting the word out; the other marketing
elements of the mix are more to be done upfront (e.g. developing a product, defining a price, etc.)
As a company you need to have valuable to the market 2 steps: value creation/ value capture
Value creation
• Market offering (product/service)
• Quality
• Fast/ convenience in the service
• After sales support/ service
• Technical service/ installation
• Personalisation
Value capture
• Selling/ sales team to capture it
If you don’t have a sales team (=direct) you can have sales partners (=indirect sales)
• Your profits need to be higher then the market average. (= premium price)
Examples of premium prices (bv. Apple) company who puts the prices way above the average ex. Cars
(Ferrari/ Bentley)
Differentiation The more you can differentiate your self the higher the chance you can higher the price of
your service. It can be about a kitchen/ house,…
marketing ≠marketing communications (which is the most important)
• Marketing is about strategic marketing (product/price/place/promotion = 4p’s)
• Marketing communication is a subset of strategic marketing, it’s actually a kind of promotion. You talk
more about the colours/ brand/ type
• So marketing is the better than the marketing communication
1
,Customer acquisition (you acquire your customer) and customer retention (you need to keep them happy so
that they stay loyal)
SALES
• Traditional selling Lower value (typically 1 buyer)
• Relationship selling higher value, complex value (more buyers in the company), it is a decision
making unit (unit of all the buyers)
• Online sales more and more shops disappear in the city’s because of it.
Sales more explained
• Traditional selling
= is a manipulative and pressure-filled process designed to get someone to buy regardless of whether
they want to buy or not. ...
It's about overcoming obstacles, negotiation, and tricking or trapping your customer into the sale
Ex. Door-to-door selling of telecom & electricity subscriptions, Xerox printer sales in the past,
selling unwanted insurances…
• Relationship selling
= the practice of building, maintaining, and enhancing interactions with customers to develop long-
term satisfaction through mutually beneficial partnerships. “Traditional selling”, on the other hand, is
much more transaction focused.
• Online sales
=over the past years we’ve noticed serious increase in e-business (B2B),
e-commerce sales, etc.
• “Omnichannel” is key in this new commercial trajectory (ex. combining the offline and online sales
channel to get best CX – customer experience)
Notes
• In past sales and market did not cooperate well together .. This is getting better now
• Often sales is focus on short term (“get an order/purchase order now”) where marketing tends to be
more focussed on long term (building market share, building strong brand image in the market …
• Sales is going from transactional level to much more relationship building (“people are buying from
people”)
Transactional vs. relationship marketing
Transactional Relationschip
Objective Acquire new costumers and Improve customer retention and
increase volume Of point-of- sales build costumemr loyalty
transactions
Length of relationship Short term Long term
Customer contact Minimal Frequent
Type of marketing Mass marketing and promotion Personalized marketing
SALES AND MARKETING FUNNEL/PIPELINE COMMERCIAL STRATEGY
A. Sales & Marketing are 2 critical components of the commercial strategy of a company, and they need
to work closely together in a ‘customer centric’ approach…
B. Marketing is a process by which companies create value for customers and build strong customer
relationships to capture value from customers in return.
2
, Role of marketing is launching new products, building strong brands, generating
leads to grow the business
C. Sales the activity or business of selling Products and/or Services (generating sales revenue or sales
volume via transfer of ownership of a product/service)
• Awareness: influence by social media, advertising, e-mail campaigns TOP OF
Tofu MIND
• Interest: get more information about the product (brochure, information)
• Consideration: offering demonstration, personalisation
Rofu • Intent: to buy
• Evaluation: price, negotiation, contract
• Purchase: ordered
Bofu
Extra information
• The further you go through the tunnel, the closer you are to buying the product
• Goal: every level to the tunnel you are trying to influence customer to go on the other step of the
funnel
• The speed you go through the tunnel, the less you think about it the cheaper and less important
purchase it is, if it’s very pricy and important and complex the solution is the slower you go
• Sales ritme and buying ritme at the same speed
Get-keep-increase
• Get: acquisition
• Keep: loyalty it’s about retention
• Increase: the upsell, when the ticket of the buyers is higher then what they intended to pay
Be aware to not oversell
• The idea of increase: you bought an iphone, but you buy also an insurance (increase) = commercial
attitude
• Oversell: Customer satisfaction ( as expected) and customer delight (you go above expectation)
UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS
It’s about value creation for the firm
• “Customer-centric” strategy:
put the customer at the core of your organization (not your products or
technology…)
Therefor work in your firm ‘customer in’ vs. ‘product out’ from a strategic
perspective
Put the time & effort into understanding the true needs of your customers
why are they buying? When are they buying? How are they buying? What price are
they paying? etc.
3
Eugénie Vande Walle
2023-2024 Bachelor of business management
,MARKETING
• Convincing the costumers/buyers
• Interacting
• Costumers experience
Marketing?
1. All around you events, offline & online advertising such as billboarding & social media advertising,
Apps on your smartphone, new disruptive products & services like Uber Eats, Airbnb,
2. Marketing communications is a sub-set of overall Marketing
Marketing = “strategic marketing” build on the 4P’s
(Marketing) communications is about communication & promotions (offline and online advertising & other
communication channels)
3. Marketing is for leading brands, but also for not-for-profit organisations (fundraising activities),
museums, university colleges, etc.
Strategic marketing ≠marketing communications
• (product, channel, pricing) vs. (advertising, social media influencers, billboards, etc.)
• communication & branding are about ‘activation tactics’ … getting the word out; the other marketing
elements of the mix are more to be done upfront (e.g. developing a product, defining a price, etc.)
As a company you need to have valuable to the market 2 steps: value creation/ value capture
Value creation
• Market offering (product/service)
• Quality
• Fast/ convenience in the service
• After sales support/ service
• Technical service/ installation
• Personalisation
Value capture
• Selling/ sales team to capture it
If you don’t have a sales team (=direct) you can have sales partners (=indirect sales)
• Your profits need to be higher then the market average. (= premium price)
Examples of premium prices (bv. Apple) company who puts the prices way above the average ex. Cars
(Ferrari/ Bentley)
Differentiation The more you can differentiate your self the higher the chance you can higher the price of
your service. It can be about a kitchen/ house,…
marketing ≠marketing communications (which is the most important)
• Marketing is about strategic marketing (product/price/place/promotion = 4p’s)
• Marketing communication is a subset of strategic marketing, it’s actually a kind of promotion. You talk
more about the colours/ brand/ type
• So marketing is the better than the marketing communication
1
,Customer acquisition (you acquire your customer) and customer retention (you need to keep them happy so
that they stay loyal)
SALES
• Traditional selling Lower value (typically 1 buyer)
• Relationship selling higher value, complex value (more buyers in the company), it is a decision
making unit (unit of all the buyers)
• Online sales more and more shops disappear in the city’s because of it.
Sales more explained
• Traditional selling
= is a manipulative and pressure-filled process designed to get someone to buy regardless of whether
they want to buy or not. ...
It's about overcoming obstacles, negotiation, and tricking or trapping your customer into the sale
Ex. Door-to-door selling of telecom & electricity subscriptions, Xerox printer sales in the past,
selling unwanted insurances…
• Relationship selling
= the practice of building, maintaining, and enhancing interactions with customers to develop long-
term satisfaction through mutually beneficial partnerships. “Traditional selling”, on the other hand, is
much more transaction focused.
• Online sales
=over the past years we’ve noticed serious increase in e-business (B2B),
e-commerce sales, etc.
• “Omnichannel” is key in this new commercial trajectory (ex. combining the offline and online sales
channel to get best CX – customer experience)
Notes
• In past sales and market did not cooperate well together .. This is getting better now
• Often sales is focus on short term (“get an order/purchase order now”) where marketing tends to be
more focussed on long term (building market share, building strong brand image in the market …
• Sales is going from transactional level to much more relationship building (“people are buying from
people”)
Transactional vs. relationship marketing
Transactional Relationschip
Objective Acquire new costumers and Improve customer retention and
increase volume Of point-of- sales build costumemr loyalty
transactions
Length of relationship Short term Long term
Customer contact Minimal Frequent
Type of marketing Mass marketing and promotion Personalized marketing
SALES AND MARKETING FUNNEL/PIPELINE COMMERCIAL STRATEGY
A. Sales & Marketing are 2 critical components of the commercial strategy of a company, and they need
to work closely together in a ‘customer centric’ approach…
B. Marketing is a process by which companies create value for customers and build strong customer
relationships to capture value from customers in return.
2
, Role of marketing is launching new products, building strong brands, generating
leads to grow the business
C. Sales the activity or business of selling Products and/or Services (generating sales revenue or sales
volume via transfer of ownership of a product/service)
• Awareness: influence by social media, advertising, e-mail campaigns TOP OF
Tofu MIND
• Interest: get more information about the product (brochure, information)
• Consideration: offering demonstration, personalisation
Rofu • Intent: to buy
• Evaluation: price, negotiation, contract
• Purchase: ordered
Bofu
Extra information
• The further you go through the tunnel, the closer you are to buying the product
• Goal: every level to the tunnel you are trying to influence customer to go on the other step of the
funnel
• The speed you go through the tunnel, the less you think about it the cheaper and less important
purchase it is, if it’s very pricy and important and complex the solution is the slower you go
• Sales ritme and buying ritme at the same speed
Get-keep-increase
• Get: acquisition
• Keep: loyalty it’s about retention
• Increase: the upsell, when the ticket of the buyers is higher then what they intended to pay
Be aware to not oversell
• The idea of increase: you bought an iphone, but you buy also an insurance (increase) = commercial
attitude
• Oversell: Customer satisfaction ( as expected) and customer delight (you go above expectation)
UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS
It’s about value creation for the firm
• “Customer-centric” strategy:
put the customer at the core of your organization (not your products or
technology…)
Therefor work in your firm ‘customer in’ vs. ‘product out’ from a strategic
perspective
Put the time & effort into understanding the true needs of your customers
why are they buying? When are they buying? How are they buying? What price are
they paying? etc.
3
