Marketing management

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What is Marketing?

Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing

customer relationships in ways that benefit the

organization and its stakeholders.

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What is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

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What is Marketed?

• Goods (tangible)

• Services (intangible)

• Events (time based—trade shows) and Experiences (Walt Disney World’s Magic kingdom)

• Persons (Artists, Musicians, CEO, Physicians)

• Places (Cities, States, Regions, Nations) and Properties (Intangible rights of ownership of real estate or financial properties)

• Organizations (Universities, Museums, Performing Arts Organization)

• Information (Books, Schools, Magazines)

• Ideas

The Ten Deadly Sins of MarketingThe Ten Commandments of Marketing

• Ten Sins • Ten Commandments

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Key Customer Markets

• Consumer markets (personal consumption)• Business markets (resale or used to produce

other products or services)• Global markets (international)• Nonprofit/Government markets (Churches,

Universities, Charitable Organizations, Government Agencies)

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Marketing Management Tasks• Developing marketing

strategies (strategic fit)• Capturing marketing

insights (obtaining information)

• Connecting with customers (relationships)

• Building strong brands (understand strengths and weaknesses)

• Shaping market offerings

• Delivering value• Communicating

value• Creating long-term

growth (positioning and new-product development)

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Holistic Marketing Dimensions

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Internal Marketing

Internal marketing is the task of hiring, training, and motivating able employees

who want to serve customers well.

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Demand States

• Negative (dislike product and may even pay a price to avoid it)

• Nonexistent (unaware of or uninterested in the product)

• Latent (need that cannot be satisfied by existing product)

• Declining (buy the product less frequently or not at all)

• Irregular (purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis)

• Unwholesome (product that have undesirable social consequences)

• Full (adequately buying all products put into the marketplace)

• Overfull (more consumers would like to buy the product that can be satisfied)

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Performance Marketing • Financial Accountability

—building band and growing the customer base.

• Social Responsibility Marketing—must consider ethical environment, legal, and social context on activities.

• Social Initiatives• Corporate social marketing —

supporting behavior change campaigns

• Cause marketing —promoting social issues through sponsorships, licensing agreements, and advertising

• Corporate philanthropy—making gifts, goods, or time

• Corporate community involvement—in kind or volunteer service

• Socially responsible business practices—to protect environment and human and animal rights

CHAPTER 2

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3 V’s Approach to Marketing

Define the value segment (needs and wants)

Define the value segment (needs and wants)

Define the value proposition (benefits)

Define the value proposition (benefits)

Define the value network to deliver promise services.

Define the value network to deliver promise services.

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What is the Value Chain?

The value chain is a tool for identifying and creating more customer value because every

firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.

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What is Holistic Marketing?

Holistic marketing sees itself as integrating the value exploration, value creation, and

value delivery activities with the purpose of building long-term, mutually satisfying relationships and prosperity among key

stakeholders.

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What is a Marketing Plan?

A marketing plan is the central instrument for directing and coordinating the marketing

effort. It operates at a strategic

and tactical level.

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Levels of a Marketing Plan

• Strategic– Target marketing

decisions– Value proposition– Analysis of

marketing opportunities

• Tactical– Product features– Promotion– Merchandising– Pricing– Sales channels– Service

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Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

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Evaluating a Marketing Plan

Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?

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Good Mission Statements

• Focus on a limited number of goals• Stress major policies and values• Define major competitive spheres• Take a long-term view• Short, memorable, meaningful

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SWOT Analysis

• Strengths• Weaknesses• Opportunities• Threats

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Porter’s Generic Strategies

Overall Cost Leadership—lowest production and distribution costs to be

able to price lower than competitors and to obtain larger market share.

Differentiation—uniquely achieving superior performance in an important

customer benefit area.

Focus—on one or more narrow marketsegments

CHAPTER 3

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Internal Records and Marketing Intelligence

• Order-to-payment cycle—send orders, prepares invoices, transmit copies to various departments, and back-orders out-of-stock items

• Sales information system—timely and accurate reports on current sales

• Databases, warehousing, data mining--customer, product, and salesperson and combine data from the different databases.

• Marketing intelligence system—a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.

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Steps to Improve Marketing Intelligence

• Train sales force to scan for new developments (make intelligence gathering important to salespeople)

• Motivate channel members to share intelligence (hire specialists to gather marketing intelligence—mystery shoppers)

• Network externally (purchase competitors’ products; attend open houses and trade shows; read competitors’ published reports; etc.)

• Utilize a customer advisory panel (representative customers or company’s largest customers)

• Utilize government data sources (U.S. Census data, etc.)• Collect customer feedback online (online customer review

boards, discussion forums, chat rooms, and blogs)• Purchase information (A.C. Nielsen Company and other

information sources)

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Needs and Trends

• Fads—short-lived and without social, economic, and political significance.

• Trends—direction or sequence of events that has some momentum and durability.

• Megatrends—large social, economic, political, and technological changes

CHAPTER 4

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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What is Marketing Research?

Marketing research is the systematic design, collection, analysis, and reporting of data and

findings relevant to a specific marketing situation facing the company.

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The Marketing Research Process

Define the problem

Develop research plan

Collect information

Analyze information

Present findings

Makedecision

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Step 1

• Define the problem (e.g., Will offering an in-flight Internet service create enough incremental preference and profit of American Airlines to justify its cost?)

• Specify decision alternatives (e.g., Should American offer an Internet connection?)

• State research objectives (e.g., types of 1st class passengers are likely to use internet?)

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Step 2

Data Sources

ContactMethods

ResearchInstruments

SamplingPlan

Research Approach


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Research Approaches• Observation--unobtrusive • Ethnographic--link between culture & behavior

&/or how cultural processes develop over time (participant observation)

• Focus group—discuss topics of interest• Survey—knowledge, beliefs, preferences,

satisfaction• Behavioral data--Data—purchasing data• Experimentation—cause and effect relationships


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Research Instruments

• Questionnaires• Qualitative Measures• Technological Devices


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Sampling Plan

• Sampling unit: Who is to be surveyed?• Sample size: How many people should be

surveyed?• Sampling procedure: How should the

respondents be chosen?

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Types of SamplesProbability• Simple random

– Every member of population has an equal chance of selection

• Stratified random– Population is divided into

mutually exclusive groups (age groups) and random samples are drawn from each group

• Cluster– Population is divided into

mutually exclusive groups (city blocks) and a sample is taken from each group

Non-probability• Convenience

– Selects the most accessible population members

• Judgment– Selects population

members who are good prospects for accurate information

• Quota– Selects and interviews a

prescribed number of people in each of several categories

CHAPTER 5


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What is Loyalty?

Loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service

in the future despite situational influences and marketing efforts having the potential to

cause switching behavior.

CHAPTER 6


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What Influences Consumer Behavior?

Cultural FactorsCultural Factors

Social FactorsSocial Factors

Personal FactorsPersonal Factors


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What is Culture?

Culture is the fundamental determinant of a person’s wants and behaviors acquired

through socialization processes with family and other key institutions.


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Subcultures

Nationalities Nationalities

ReligionsReligions

Racial groupsRacial groups

Geographic regionsGeographic regions


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Social Classes

Upper uppersLower uppersUpper middles

Middle classWorking classUpper lowersLower lowers

http://factfinder.census.gov/


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Characteristics of Social Classes

• Within a class, people tend to behave alike• Social class conveys perceptions of inferior or

superior position• Class may be indicated by a cluster of variables

(occupation, income, wealth)• Class designation is mobile over time


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Social Factors

Referencegroups

Social roles Statuses

Family


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Reference Groups

Membership groupsMembership groups

Primary groupsPrimary groups

Secondary groupsSecondary groups

Aspirational groupsAspirational groups

Dissociative groupsDissociative groups


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Family Distinctions Affecting Buying Decisions

• Family of Orientation• Family of Procreation


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Roles and Status

What degree of status is associated with various occupational roles?


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Personal Factors

Age

Values

Life cyclestage

Occupation

Personality

Self-concept

Wealth

Lifestyle

CHAPTER 7

Characteristics of Business Markets

• Fewer buyers• Close supplier-

customer relationships

• Professional purchasing

• Many buying influences

• Multiple sales calls• Derived demand• Inelastic demand• Fluctuating

demand• Geographically

concentrated buyers

• Direct purchasingCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

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Stages in the Buying Process: Buyphases

• Problem recognition• General need description• Product specification• Supplier search• Proposal solicitation• Supplier selection• Order-routine specification• Performance review

CHAPTER 8


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Four levels of Micromarketing• Segments—similar needs and wants• Niches--sub-segments with a distinctive mix

of benefits• Local areas—marketing programs tailored

to the needs and wants of local customer groups in trading areas, neighborhoods, even individual stores

• Individuals—segments of one (i.e., one-to-one marketing)


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Segmenting Consumer Markets

• Geographic—nations, states, regions, countries, cities, neighborhoods

• Demographic—age, life-cycle stage, gender, income, generation, social class

• Psychographic--psychological/personality• Behavioral--knowledge of, attitude toward,

use of, or response to a product


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Demographic Segmentation• Age and Life Cycle—customer wants and

abilities change with age.• Life stage—a person’s major concern (e.g.,

divorce, 2nd marriage, buying new home)• Gender—male and female• Income—upper, middle, lower• Social class—occupation, education, type

and location of housing• Generation

CHAPTER 9


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Steps in Strategic Brand Management

• Identifying and establishing brand positioning

• Planning and implementing brand marketing

• Measuring and interpreting brand performance

• Growing and sustaining brand value

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Brand

A name, term, sign, symbolor design, or a combination of them, intended to identify the goodsor services of one seller or groupof sellers and to differentiatethem from those of competitors.

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Attributes of Strong Brands

• Excels at delivering desired benefits

• Stays relevant• Priced to meet

perceptions of value• Positioned properly• Communicates

consistent brand messages

• Uses multiple marketing activities

• Understands consumer-brand relationship

• Supported by organization

• Monitors sources of brand equity

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Brand Equity

The differential effect that Brand knowledge has on Consumer response to the marketing of that brand.

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Advantages of Strong Brands

• Improved perceptions of product performance

• Greater loyalty• Less vulnerability

to competitive marketing actions

• Less vulnerability to crises

• Larger margins• More inelastic

consumer response• Greater trade

cooperation• Increased

marketing communications effectiveness

• Possible licensing opportunities

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Brand Knowledge

Knowledge

Thoughts

Experiences

Beliefs Images

Feelings

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Measuring Brand Equity

Brand Audits—assess health of brand, uncover sources of brand equity, ways to improve

Brand Audits—assess health of brand, uncover sources of brand equity, ways to improve

Brand Tracking—baseline information about brands and marketing information

Brand Tracking—baseline information about brands and marketing information

Brand Valuation—estimation of total financial value of the brandBrand Valuation—estimation of total financial value of the brand


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Brand Roles in a Brand Portfolio

• Flankers—fighter brand (flagship)• Cash cows—capitalizing on existing

brand equity• Low-end, entry-level—traffic builders• High-end prestige—add prestige and

credibility to the entire portfolio


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Brand Roles in a Brand Portfolio

• Flankers—fighter brand (flagship)• Cash cows—capitalizing on existing

brand equity• Low-end, entry-level—traffic builders• High-end prestige—add prestige and

credibility to the entire portfolio

CHAPTER 10

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Identity and Image

Identity: The way acompany aims to identify or position itself

Image: The way thepublic perceivesthe company or Its products

Marketing management

Business

Transcript of Marketing management