Marketing management

Marketing

Marketing’s stakeholders

Societal Marketing

Broadest conceptual level, members of society at large can be viewed as a stakeholder for marketing. Green Marketing.

Sustainability

Value

Ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits.

Exchange

Production Orientation

Early part of 20^th century. Improving products and production efficiency without much regard for what was going on in the marketplace.  

Sales Orientation

Objective is to increase sales and consequently production capacity utilization by having professional salespeople “push” product into the hands of customers, both businesses, and end-users.

Marketing Concept

Marketing mix

 By creating a “mix” or combinations of these elements, marketer’s can set their brand apart from the competition.

(4 P’s of Marketing)

Product

One of the 4P's of marketing. Overall offering, which include a bundle of goods, services, ideas, and other components. 

Solutions

Characterization of an offering as a solution because the implication that a solution has been developed in conjunction with specific, well-understood customer wants and needs.

Price

One of the 4P's of marketing. Relationship with the concept of value.

Place

One of the 4P's of marketing. Getting goods from A to B, including integrated supply chains.

 Promotion

Customer-centric

Investment of the customer over the long term and focusing on marketing as an organization-wide issue.

Differentiation

Communicating and delivering value in different ways to different customer groups. What distinguishes your product from those competitors in the minds of the customer.

Market-Orientation

The implementation of the marketing concept, based on an understanding of customers and competitors.

One-to-one marketing

The idea that firms should direct energy and resources into establishing a learning relationship with each customer and then connect that knowledge with the firms production and service capabilities to fulfill that customer’s needs in as custom a manner as possible.

Mass Customization

Combining flexible manufacturing with flexible marketing to greatly enhance customer choices.

Marketing (Big M)

Serves as a core driver of business strategy. Understanding of markets, competitors, and other external forces, coupled with attention to internal capabilities, allows a firm to develop strategies for the future.

Strategic Marketing

 Market Creation

Approaches that drive a market toward fulfilling a whole new set of needs that customers did not realize was possible or feasible before.

Marketing (little m)

Serves the firm and stakeholders at a functional or operational level of the organization. Tactical marketing.

Tactical Marketing

Specific programs and tactics aimed at customers and other stakeholders tend to emulate from little m, needs to be coached within the philosophy, culture, and strategies of the firms Big M. 

Marketing Metrics

Value Proposition

Communicated by the company, the value message of a product or bundle of benefits promised to be delivered. It should move customers from satisfied to commitment to a company, and its products and brands for the long run.

Value Chain

Core Competencies

 The activities the firm can do exceedingly well. When these competencies are superior to those of competitors, they are called distinctive competencies. Firms should invest in distinctive competencies as they offer opportunity for sustainable competitive advantage in the marketplace, especially if the competencies cannot be easily duplicated or usurped by competitors.

Sustainable Competitive Advantage

Situation Analysis

Environmental market within which the marketing plan is being developed. The situation includes elements of the macro-level external environment within which the firm operates, it’s industry and competitive environment, and it’s internal environment.

SWOT Analysis

Upon completion of the situation analysis. A convenient way to summarize key findings is into a matrix of strengths, weaknesses, opportunities, and threats. Internal factors are strengths and weaknesses. External factors are opportunities and threats.

Marketing Control

The process of measuring marketing results and adjusting the marketing plan as needed.

Market Information System (MIS)

The continuing process of identifying, collecting, analyzing, and dispensing critical information to marketing decision makers. Information where data relevant to the companies marketing efforts are collected and stored until such time as management needs to withdraw them.

Demographics

The statistical characteristics of human populations, such as age or income, used to identify markets.

Microeconomics

The study of individual economic activity.

Macroeconomics

The study of economic activity in terms of measures of output (gross national product or GNP) and input, as well as the interactions among various sectors of an entire economy.     

Qualitative Research

Less structured research that employ methods such as surveys and interviews to collect data. Is not meant to be used for statistical analysis.

Quantitative Research

Lifestyle

An individual’s perspective on life and manifests itself in that person’s activities, interest, and opinions. (AIO)

Motivation

The stimulating power and then directs behavior. It is the force by which powerful unmet needs, or motives, prompt someone to action.

Brand Personality

The association between a brand and specific personality characteristics. Research suggests that consumers purchase brands that have a personality consistent with their own. Five traits:

A.   sincerity

B.    Excitement

C.    Competence

D.   Sophistication

E.    Ruggedness

Culture

A system of values, beliefs, and morals shared by a particular group of people that permeates over time.

Perception

A system to select, organize, and interpret information to create a useful, informative picture of the world.

Household lifecycle

The structure set of chronological activities a particular household follows over time.

Post-Purchase Dissonance

Supply Chain

A complex logistics network characterized by high levels of coordination and integration among its members.

Straight Rebuy

A buying decision that requires little evaluation because the products are purchased on a consistent and regular basis.

Modified Rebuy

A buying decision in which the customers are familiar with the product and the supplier in a purchase decision but are looking for additional information because of one or more of three circumstances: the supplier has performed poorly, new products of coming to the market, or the customer believes it is time for a change.

New Purchase

A buying decision in which the purchase of a product or service by customer is for the first time.

Business Market Purchase Decision Process

the problem is recognized. Defined the need and the product specifications. Search for suppliers. Seek sales proposals- Response to RFP. Make the purchase decision. Post-purchase evaluation of the product and vendor.  See book example on page 143.

Request For Proposal (RFP)

Market Segmentation

Dividing a market into meaningful smaller markets or submarkets based on common characteristics.

Target Marketing

 Evaluating market segments in making a decision about which among them shows the most promise for development.

Positioning

Communication of sources of value to customers so they can easily make connections between their needs and wants and what the product has to offer. 

Differentiation

Communicating and delivering value in different ways to different customer.

Geographic Segmentation

Dividing consumer groups based on physical locations.

Demographic Segmentation

Dividing consumer groups based on a variety of readily Measurable descriptive factors about the group.

Behavioral Segmentation

Dividing consumer groups based on similarities in benefits sought or product usage patterns.

 Customer Relationship Management (CRM)

 A comprehensive business model for increasing revenues and profits by focusing on customers. It has three major objectives: customer acquisition customer retention and customer profitability. See page 185.

Lifetime Value of Customer

The measurement of important business success factors related to long-term relationships with customers.

Customer Touch Points

Product

Anything that delivers value to satisfy a need or want and includes physical merchandise, services, events, people, places, organizations, information, ideas.

Stock-Keeping Unit (SKU)

Unique identification numbers used in tracking products through the distribution system, inventory management, and pricing.

Essential Benefit

The fundamental needs met by a product.

Feature

Any product attribute or performance characteristics.

Product Life Cycle (PLC)

The life of a product that includes four stages: introduction, growth, maturity, and decline. 

Market Penetration

Brand

 The name, term, sign, symbol, or design, or a combination of these elements, intended to identify the goods or services of one seller or groups of sellers and to differentiate them from those of the competitors.

Brand Strategy

The unique elements of a brand that defined the products sold by a firm.

Brand Identity

Summary of unique qualities attributed to a brand.

Brand Equity

A set of assets and liabilities linked to a brand name and symbol that add to or subtract from the value provided by a product or service to affirm that firms customers.

Brand Awareness

The most basic form of brand equity is simply being aware of the brand. Awareness is the foundation of all other brand relationships.

Brand Loyalty

 The strongest form of brand equity and reflects a commitment to repeat purchases.

Perceived Quality

Perception of quality of a brand that is either positive or negative.

Brand Associations

When customers develop a number of emotional, psychological, and performance associations with the brand. These associations become a primary purchased driver, particularly with brand loyal users.

Brand Assets

Other assets brands possess, such as trademarks and patents, that represent a significant competitive advantage.

Licensing

When a firm offers other manufacturers the right to use it to brand in exchange for a set fee or percentage of sales.

Co-Branding

Service

A product that represents a bundle of benefits that can satisfy customer wants and needs without having physical form.

Service Economy

An economy that is predominantly comprised of service related jobs.

Internal Marketing

Treating of employees as customers and developing systems and benefits that satisfy their needs to promote internal service quality.

Customer-centric

Placing the customer at the core of the enterprise and focusing on investments in customers over the long-term.

Customer Retention

Low propensity among a firms customer base to consider switching to other providers.

Service Quality

The formalization of the measurement of customer expectations of a service compare to perceptions of actual service performed.

SERVQUAL

Market Share

the percentage of total category sales accounting for a buyer for.

Penetration Pricing

A pricing strategy in which a firm’s objective is to gain as much market share is possible.

Price Elasticity of Demand

The measure of a customers’ price sensitivity estimated by dividing the relative changes in quantity sold by relative changes in price.

Competitor-Based Pricing

A pricing strategy in which a firm decides to price at some market average price in context with prices of competitors.

Promotional Allowances

Sales promotions initiated by the manufacture and carried out by the retailer, who has then been compensated by the manufacture.

FOB (free on board)

Supply Chain

A complex logistics network characterized by high levels of coordination and integration among its members.

Supply Chain Management

The process of managing the aspects of the supply chain.

Value Network

 Over arching system of formal informal relationships within which the firm participates to procure, transform, enhance, and ultimately supply its offerings in final form and space.

Value Co-Creation

The combining of capabilities among members of a value network to create value.

Promotion

Various forms of communication to inform, persuade, or remind.

Promotion Mix

The element of promotion, including advertising, sales promotion, public relations, personal selling, direct marketing, and interactive marketing.

IMC (Integrated Marketing Communications) 

Strategic approach to communicating the bread and company message to targeted customers in ways that are clear and concise and consistent needed to maximize the impact on a particular audience.

Push Strategy

Promotional and distribution strategy in which the focus is on stimulting demand within the channel of distribution.

Pull Strategy

Promotional and distribution strategy in which the focus is on stimulating demand for an offering directly from the end-user.

Viral Marketing

Customer- Orientation

4P's of Marketing