Marketing Management
What is a brand?
A brand is an offering from a known source.
What are private labels?
Brand manufacturers are further buffeted by powerful retailers that market their own store brands, increasingly indistinguishable from any other type of brand.
four planning activities of corporate
Defining the corporate mission Establishing strategic business units Assigning resources to each strategic business unit Assessing growth opportunities
what are demands?
Demands are wants for specific products backed by an ability to pay.
Social definition of marketing?
Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
What is Marketing?
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
What is Paid, owned, and earned Media?
Paid media include TV, magazine and display ads, paid search, and sponsorships, all of which allow marketers to show their ad or brand for a fee. Owned media are communication channels marketers actually own, like a company or brand brochure, Web site, blog, Facebook page, or Twitter account. Earned media are streams in which consumers, the press, or other outsiders voluntarily communicate something about the brand via word of mouth, buzz, or viral marketing methods.
Four key constituents for relationship marketing are?
customers employees marketing partners (channels, sup- pliers, distributors, dealers, agencies) members of the financial community (shareholders, investors, analysts)
What is a SWOT analysis?
evaluation of a company's strengths, weaknesses, opportunities, and threats
Growth strategies
intensive growth - looking for opportunities in existing businesses integrative growth - increase sales and profits through backward, forward, or horizontal integration within its industry diversification growth - makes sense when good opportunities exist outside the present businesses downsizing and divesting older businesses - to release needed resources for other uses and reduce costs.
What is the customer value triad?
quality, service, and price (qsp)
What is marketing management?
the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
5 core business processes
the market sensing process—gathering and acting upon information about the market new offering realization process—researching, developing, and launching new high-quality offerings quickly and within budget customer acquisition process—defining target markets and prospecting for new customers customer relationship management process—building deeper understanding, relationships, and offerings to individual customers fulfillment management process —receiving and approving orders, shipping goods on time, and collecting payment
3 phases of value creation
1) choosing the value - segmentation, targeting, positioning (STP) 2) providing the value - identify specific product features, prices, and distribution 3) communicating the value - Internet, advertising, sales force, and any other communication tools
What is a goal formulation?
done after a SWOT analysis developing specific goals for the planning period. Goals are objectives that are specific with respect to magnitude and time. business unit sets these objectives and then manages by objectives (MBO)
Give an example of disintermediation
early dot-coms such as Amazon.com, E*TRADE, and others successfully created disintermediation in the delivery of products and services by intervening in the traditional flow of goods.
Marketers market 10 main types of entities:
goods services events experiences persons places properties organizations information ideas.
What is a value proposition?
a set of benefits that satisfy those needs. The intangible value proposition is made physical by an offering, which can be a combination of products, services, information, and experiences.
The four As of marketing?
acceptability, affordability, accessibility, and awareness Acceptability is the extent to which a firm's total product offer- ing exceeds customer expectations. design, in turn, is at the root of acceptability. Affordability is the extent to which customers in the target market are able and willing to pay the product's price. Accessibility, the extent to which customers are able to readily acquire the product, has two dimensions: availability and convenience. Awareness is the extent to which customers are informed regarding the product's characteristics, persuaded to try it, and reminded to repurchase. It has two dimensions: brand awareness and product knowledge.
What is internal marketing?
an element of holistic marketing, is the task of hiring, training, and motivating able employees who want to serve customers well. Smart marketers recognize that marketing activities within the company can be as important—or even more important—than those directed outside the company. It makes no sense to promise excellent service before the company's staff is ready to provide it. Internal marketing requires vertical alignment with senior management and horizontal alignment with other departments so everyone understands, appreciates, and supports the marketing effort.
What is the holistic marketing concept?
based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies. four broad components characterizing holistic marketing: relationship marketing integrated marketing internal marketing performance marketing.
What is the broad environment?
broad environment consists of six components: demographic environment economic environment social-cultural environment natural environment technological environment political-legal environment.
core competency has three characteristics
(1) It is a source of competitive advantage and makes a significant contribution to perceived customer benefits (2) It has applications in a wide variety of markets (3) It is difficult for competitors to imitate.
role of good CMO
(1) managing the businesses as an investment portfolio (2) assessing the market's growth rate and the company's position in that market (3) establishing a strategy. The company must develop a game plan for achieving each business's long-run objectives
For an MBO system to work, the unit's objectives must meet four criteria:
1) objectives arranged from most to least important 2) quantitative objectives - The objective "to increase the return on investment (ROI)" is better stated as the goal "to increase ROI to 15 percent within two years." 3) goals should be realistic - Goals should arise from an analysis of the business unit's opportunities and strengths, not from wishful thinking. 4) objectives must be consistent - not possible to maximize sales and profits simultaneously.
three kinds of marketing channels?
1. Communication channels deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, smart phone, billboards, posters, fliers, CDs, audiotapes, and the Internet. 2. Distribution channels help display, sell, or deliver the physical product or service(s) to the buyer or user. These channels may be direct via the Internet, mail, or mobile phone or telephone or indirect with distributors, wholesal- ers, retailers, and agents as intermediaries. 3. Service channels to carry out transactions with potential buyers; that include warehouses, transportation companies, banks, and insurance companies.
What are the 8 demand states?
1. Negative demand—Consumers dislike the product and may even pay to avoid it. 2. Nonexistent demand—Consumers may be unaware of or uninterested in the product. 3. Latent demand—Consumers may share a strong need that cannot be satisfied by an existing product. 4. Declining demand—Consumers begin to buy the product less frequently or not at all. 5. Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis. 6. Full demand—Consumers are adequately buying all products put into the marketplace. 7. Overfull demand—More consumers would like to buy the product than can be satisfied. 8. Unwholesome demand—Consumers may be attracted to products that have undesirable social consequences.
what are the 5 types of needs?
1. Stated needs (The customer wants an inexpensive car.) 2. Real needs (The customer wants a car whose operating cost, not initial price, is low.) 3. Unstated needs (The customer expects good service from the dealer.) 4. Delight needs (The customer would like the dealer to include an onboard GPS system.) 5. Secret needs (The customer wants friends to see him or her as a savvy consumer.)
Relationship between Marketer and Prospect?
A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from another party, called the prospect.
New consumer capabilities
Can use the Internet as a powerful information and purchasing aid Can search, communicate, and purchase on the move Can tap into social media to share opinions and express loyalty Can actively interact with companies Can reject marketing they find inappropriate
New company capabilities
Can use the Internet as a powerful information and sales channel, including for individually differentiated goods Can collect fuller and richer information about markets, customers, prospects, and competitors Can reach customers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information Can improve purchasing, recruiting, training, and internal and external communications Can improve cost efficiency
marketing opportunity analysis questions
Can we articulate the benefits convincingly to a defined target market(s)? Can we locate the target market(s) and reach them with cost-effective media and trade channels? Does our company possess or have access to the critical capabilities and resources we need to deliver the customer benefits? Can we deliver the benefits better than any actual or potential competitors? Will the financial rate of return meet or exceed our required threshold for investment?
key customer markets
Consumer Markets Companies selling mass consumer goods and services such as juices, cosmetics, athletic shoes, and air travel establish a strong brand image by developing a superior product or service, ensuring its availability, and backing it with engaging communications and reliable performance. Business Markets Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings. Advertising and Web sites can play a role, but the sales force, the price, and the seller's reputation may play a greater one. Global Markets Companies in the global marketplace navigate cultural, language, legal, and political differences while deciding which countries to enter, how to enter each (as exporter, licenser, joint venture partner, contract manufacturer, or solo manufacturer), how to adapt product and service features to each country, how to set prices, and how to communicate in different cultures. Nonprofit and Governmental Markets Companies selling to nonprofit organizations with limited purchasing power such as churches, universities, charitable organizations, and government agencies need to price carefully. Much government purchasing requires bids; buyers often focus on practical solutions and favor the lowest bid, other things equal.
SBU (Strategic business units) has three characteristics:
It is a single business, or a collection of related businesses, that can be planned separately from the rest of the company. It has its own set of competitors. It has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit.
What is Privatization?
Many countries have converted public companies to private ownership and management to increase their efficiency. The telecommunications industry has seen much privatization in countries such as Australia, France, Germany, Italy, Turkey, and Japan.
What is Deregulation?
Many countries have deregulated industries to create greater competition and growth opportunities. In the United States, laws restricting financial services, telecommunications, and electric utilities have all been loosened in the spirit of greater competition.
What are Mega-brands?
Many strong brands have become mega-brands and extended into related product categories, including new opportunities at the intersection of two or more industries. Computing, telecommunications, and consumer electronics are converging, with Apple and Samsung releasing a stream of state-of-the-art devices from MP3 players to LCD TVs to fully loaded smart phones.
five primary and four support activities that create value and cost in a specific business.
Primary activities: (1) inbound logistics, or bringing materials into the business (2) operations, or converting materials into final products; (3) outbound logistics, or shipping out final products (4) marketing, which includes sales (5) service. Supporting activities (1) procurement (2) technology development (3) human resource management (4) firm infrastructure. (Infrastructure covers the costs of general management, planning, finance, accounting, legal, and government affairs.)
What is the selling concept?
holds that consumers and businesses, if left alone, won't buy enough of the organization's products. It is practiced most aggressively with unsought goods—goods buyers don't normally think of buying such as insurance and cemetery plots—and when firms with overcapacity aim to sell what they make, rather than make what the market wants.
What is the production concept?
holds that consumers prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution. Marketers also use the production concept when they want to expand the market.
How to fill the strategic- planning gap?
identify opportunities for growth within current businesses (intensive opportunities) identify opportunities to build or acquire businesses related to current businesses (integrative opportunities) identify opportunities to add attractive unrelated businesses (diversification opportunities).
Porter's strategies
overall cost leadership - Firms work to achieve the lowest production and distribution costs so they can underprice competitors and win market share. differentiation - achieving superior performance in an important customer benefit area valued by a large part of the market. The firm seeking quality leadership, for example, must make products with the best components focus - focuses on one or more narrow market segments, gets to know them intimately, pursues either cost leadership or differentiation within the target segment
What is scenario analysis?
plausible representations of a firm's possible future using assumptions about forces driving the market and different uncertainties. Managers think through each scenario with the question, "What will we do if it happens?"
What is the product concept?
product concept proposes that consumers favor products offering the most quality, performance, or innovative features.
4 types of alliances
product or service - One company licenses another to produce its product, or two companies jointly market their complementary products or a new product promotional - One company agrees to carry a promotion for another company's product or service logistics - One company offers logistical services for another company's product. pricing collaborations - One or more companies join in a special pricing collaboration. Hotel and rental car companies often offer mutual price discounts.
Marketing plan contains the following sections
situation analysis - background data on sales, costs, the market, competitors, and the macroenvironment marketing strategy - mission, marketing and financial objectives, and needs the market offering is intended to satisfy as well as its competitive positioning. marketing tactics financial projections - sales forecast, an expense forecast, and a break-even analysis. risk analysis implementation controls - goals and budget for each month or quarter so management can review each period's results and take corrective action as needed.
strategic and tactical marketing plan
strategic marketing plan lays out the target markets and the firm's value proposition, based on an analysis of the best market opportunities tactical marketing specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service
What is the task environment in marketing?
task environment includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and target customers. In the supplier group are material suppliers and service suppliers, such as marketing research agencies, advertising agencies, banking and insurance companies, transportation companies, and telecommunications companies. Distributors and dealers include agents, brokers, manufacturer representatives, and others who facilitate finding and selling to customers.