Marketing Chap 1-4
Developing Marketing Information
Marketers can obtain the needed marketing information from internal data, marketing intelligence, and marketing research. Each of these sources are discussed in greater depth in the following slides. Internal databases Competitive marketing intelligence Marketing research
Market segmentation
choosing customers to serve and refers to dividing the markets into segments of customers.
Wants
Form taken by human needs when shaped by culture and individual personality
customer insights
Fresh marketing information-based understandings of customers and the marketplace Become the basis for creating customer value, engagement, and relationships Customer insights teams collect customer and market information from a wide variety of sources. PepsiCo's various marketing research departments are integrated "customer insights teams".
Marketing Department Organization
Functional organization Geographic organization Product management organization Market or customer management organization Combination organization
Demands
Human wants that are backed by buying power - Staying close to customers: Target's energetic new CEO
primary data
Landor researchers visit families, peeking into their refrigerators and diving deeply into their food shopping behaviors and opinions.
Research Approaches
Observational research Gathering primary data by observing relevant people, actions, and situations Ethnographic research: Sending trained observers to watch and interact with consumers in their natural environments Survey research Asking people questions about their knowledge, attitudes, preferences, and buying behavior Experimental research Selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
Marketing Research in Small Businesses and Nonprofit Organizations
Obtaining good marketing insights Secondary data collection Observation Surveys Experiments Responsibility of managers Think carefully about the research objectives Formulate questions in advance Recognize the biases introduced by smaller samples and less skilled researchers Conduct the research systematically
Online Behavioral and Social Tracking and Targeting
Online listening Provides valuable insights into what consumers are saying or feeling about a brand Behavioral targeting Uses online consumer tracking data to target advertisements and marketing offers to specific consumers Social targeting Mines individual online social connections and conversations from social networking sites
Assessing Marketing Information Needs
A good MIS balances the information users would like to have against What they really need What is feasible to offer Obtaining, analyzing, storing, and delivering information is costly. Firms must decide whether the value of the insight is worth the cost.
Sampling Plan
A sample is a segment of the population selected to represent the population as a whole. Decisions required for sampling design: Sampling unit - People to be studied Sample size - Number of people to be studied Sampling procedure - Method of choosing the people to be studied
todays big data
Big data refers to the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies.
positioning example
Car sharing service Uber positions itself as "Everyone's private driver." This simple statement provides the backbone for its marketing strategy.
Marketing Information System (MIS)
Consists of people and procedures to Assess information needs Develop the needed information Help decision makers use the information to generate and validate actionable customer and market insights
Nonprobability samples
Convenience sample: The researcher selects the easiest population members from which to obtain information. Judgment sample: The researcher uses his or her judgment to select population members who are good prospects for accurate information. Quota sample: The researcher finds and interviews a prescribed number of people in each of several categories.
marketing info
Customer needs and motives for buying are difficult to determine. Required by companies to obtain customer and market insights Generated in great quantities with the help of information technology and online sources
Implementing the Research Plan
Data collection Researchers should guard against various problems. Techniques and technologies Data quality Timeliness Processing the data Check for accuracy Code for analysis Analyzing the data Tabulate results Compute statistical measures
Online Marketing Research
Data is collected through Internet surveys Online focus groups Web-based experiments Tracking consumers' online behavior
Defining the Problem and Research Objectives
Exploratory research Used to gather preliminary information Helps to define problems and suggest hypotheses Descriptive research Used to better describe the market potential for a product or the demographics and attitudes of consumers Causal research Used to test hypotheses about cause-and-effect relationships
.Intrusions on Consumer Privacy (1 of 2)
Failure to address privacy issues results in Angry, less cooperative consumers Increased government intervention Best approaches for researchers: Asking only for the information needed Using the information responsibly to provide customer value Avoiding sharing the information without the customer's permission Target made some customers uneasy by using their buying histories to figure out "private" things about them.
Misuse of Research Findings
Few advertisers rig their research designs or deliberately misrepresent the findings. Solutions: Development of codes of research ethics and standards of conduct Companies must accept responsibility to protect consumers' best interests and their own.
internal Databases
Financial services provider USAA uses its extensive database to tailor its services to the specific needs of individual customers, creating incredible loyalty. Internal databases are collections of consumer and market information obtained from data sources within the company network.
customers
Five types of customer markets Consumer markets Business markets Reseller markets Government markets International markets
Distributing and Using Marketing Information
MIS must make information readily available for decision making. Routine information for decision making Non-routine information for special situations Intranets and extranets facilitate the information-sharing process.
Mail, Telephone, and Personal Interviewing
Mail questionnaires are used to collect large amounts of information at a low cost per respondent. Telephone interviewing gathers information quickly, while providing flexibility. Personal interviewing methods include Individual interviewing Group interviewing
Customer Relationship Management (CRM)
Managing detailed information about individual customers Carefully managing customer touch points to maximize customer loyalty Consists of software and analysis tools that Integrate customer information from all sources Analyze data in depth Apply the results While avid Netflixers are busy watching Netflix videos, Netflix is also busy watching them
marekting analystics
Marketing analytics consists of the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.
Research Plan
Outlines sources of existing data Spells out Specific research approaches Contact methods Sampling plans Instruments that researchers will use to gather new data Should be presented in a written proposal Topics covered in a research plan: Problems and research objectives Information to be obtained How results will help decision making Estimated research costs Type of data required
marketing environment
Outside forces that affect marketing management's ability to build and maintain successful relationships with target customers
Marketing Research at P&G: Creating Irresistibly Superior Experiences
P&G uses innovative marketing research—lots and lots of it—to dig out deep and fresh consumer insights and then uses the insights to create transformational brands and marketing that deliver irresistibly superior experiences for consumers. To gain deep consumer insights, P&G employs a wide range of marketing research approaches—from traditional large-scale surveys and small-scale focus groups to real-time social media listening, mobile surveys, and big data analytics.
marketing management orientations
Production concept Product concept Selling concept Marketing concept Societal marketing concept
research instruments
Questionnaires can be administered in person, by phone, by e-mail, or online. Closed-ended questions Open-ended questions Mechanical instruments include People meters Checkout scanners Neuromarketing Using neuroscience methods, Nielsen charted how people's brains responded to an existing Shelter Pet Project public service ad and the ad's canine star, Jules the dog.
Responding to the Marketing Environment
Reactive firms passively accept the marketing environment and do not try to change it. Proactive firms develop strategies to change the environment. They take aggressive actions to affect the publics and forces in their marketing environment
CAN-SPAM Act (2003)
Regulates the distribution and content of unsolicited commercial e-mail
Nutrition Labeling and Education Act (1990)
Requires that food product labels provide detailed nutritional information
Interpreting and Reporting Findings
Responsibilities of the market researcher: Interpret the findings Draw conclusions Report findings to management Responsibilities of managers and researchers: Work together closely when interpreting research results Share responsibility for the research process and resulting decisions
Probability samples
Simple random sample: Every member of the population has a known and equal chance of selection. Stratified random sample: The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group. Cluster (area) sample: The population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview.
mission statement
Statement of the organization's purpose Market oriented—defined in terms of satisfying basic customer needs Emphasize the company's strengths Focus on customers and the customer experience
marketing research
Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization Approaches followed by firms: Use own research departments Hire outside research specialists Purchase data collected by outside firms Marketing research follows a process that has four steps: defining the problem and research objectives; developing the research plan; implementing the research plan; and interpreting and reporting the findings.
Competitive Marketing Intelligence
Systematic monitoring, collection, and analysis of information About consumers, competitors, and developments in the marketing environment Techniques Observing consumers firsthand Quizzing the company's own employees Benchmarking competitors' products Conducting online research Monitoring social media buzz Offers insights about consumer opinions and their association with the brand Provides early warnings of competitor strategies and potential competitive strengths and weaknesses Helps firms to protect their own information Raises ethical issues
MIS
The information users are marketing managers, internal and external partners, and others who need marketing information. Marketers start by assessing user information needs. Next, they develop needed information using internal company databases, marketing intelligence activities, and marketing research. Finally, the MIS helps users to analyze and use the information to develop customer insights, make marketing decisions, and manage customer engagement and relationships.
International Marketing Research
The problems faced include Dealing with diverse markets Finding good secondary data in foreign markets Developing good samples Reaching respondents Handling differences in culture, language, and attitudes toward marketing research The cost of research is high, but the cost of not doing it is higher.
Planning Primary Data Collection
This table shows that designing a plan for primary data collection calls for a number of decisions on research approaches, contact methods, the sampling plan, and research instruments.
Marketing Implementation
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives Addresses the who, where, when, and how of the marketing activities
mobile marketing
Using mobile channels to stimulate immediate buying, make shopping easier, and enrich the brand experience Blending the new digital approaches with traditional marketing creates a smoothly integrated marketing strategy and mix.
Major Forces in the Company's Macro-environment
demogrpahics, econmics, natura;, technological, political, cultural
value proposition
he company must decide how it will differentiate and position itself in the marketplace.
market differentiation
he market offering to create superior customer value The entire marketing program should support the chosen positioning strategy.
Secondary Data
information that already exists Collected for another purpose Sources: Company's internal database Purchased from outside suppliers Commercial online databases Internet search engines Advantages Low cost Obtained quickly Cannot collect otherwise Disadvantages Potentially Irrelevant Inaccurate Dated Biased
Target marketing
refers to which segments to go after.
growth share matrix
Evaluates a company's SBUs in terms of market growth rate and relative market share Problems with Growth-Share Matrix Difficult, time consuming, and costly Difficult to define and measure Provides little advice for future planning
market targeting
Evaluating each market segment's attractiveness and selecting one or more segments to enter
customer satisfaction
Extent to which a product's perceived performance matches a buyer's expectations
Macroenvironment:
Larger societal forces that affect the microenvironment
Major U.S. Legislation Affecting Marketing
Legislation regulating business is intended to protect companies from each other consumers from unfair business practices the interests of society against unrestrained business behavior
customer relationship levels and tools
Levels Basic relationships Low-margin customers Full partnerships High-margin customers Tools Frequency marketing programs Loyalty rewards programs Club marketing programs - JetBlue's TrueBlue loyalty program: Relationship marketing tools
Children's Television Act (1990)
Limits the number of commercials aired during children's programs
Preparing and integrated marketing plan and program
Major marketing mix tools Four Ps of marketing Product Price Place Promotion Marketing mix tools should be blended into a comprehensive integrated marketing program
Americans with Disabilities Act (1991)
Makes discrimination against people with disabilities illegal
Traditional form of marketing
Making a sale Abundance of products in the nearby shopping centers Television, magazine, and direct-mail ads
portfolio analysis
Management's evaluation of the products and businesses that make up the company Identify the strategic business units (SBUs) Assess SBUs' attractiveness and decide on the level of support SBU deserves Direct resources toward more profitable businesses and phase down or drop its weaker ones. the major activity in strategic planning is business portfolio analysis, which is the process by which management evaluates the products and businesses that make up the company. There are two steps for analyzing portfolios. Management's first step is to identify the key businesses that make up the company, called strategic business units (SBUs). An SBU can be a company division, a product line within a division, or sometimes a single product or brand. The company next assesses the attractiveness of its various SBUs and decides how much support each deserves. The purpose of strategic planning is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment. For this reason, most standard portfolio analysis methods evaluate SBUs on two important dimensions: the attractiveness of the SBU's market or industry and the strength of the SBU's position in that market or industry.
rapid globalization and sustainable marketing
Managers around the world are taking both local and global views of the company's: Industry Competitors Opportunities Corporate ethics and social responsibility have become important for every business.
SWOT analysis (strengths, weaknesses, opportunities, threats)
Managing the marketing function begins with a complete analysis of the company's situation. The marketer should conduct a SWOT Analysis. This refers to an overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T). Strengths include internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives. Weaknesses include internal limitations and negative situational factors that may interfere with the company's performance. Opportunities are positive factors or trends in the external environment that the company may be able to exploit to its advantage. Threats are negative external factors or trends that may present challenges to performance.
Managing marketing: analysis, planning, implementations, and control
Managing the marketing process requires the four marketing management functions as illustrated in this figure. They include analysis, planning, implementation, and control. The company first develops company-wide strategic plans and then translates them into marketing and other plans for each division, product, and brand. Through implementation, the company turns the plans into actions. Control consists of measuring and evaluating the results of marketing activities and taking corrective action where needed. Finally, marketing analysis provides the information and evaluations needed for all the other marketing activities.
Demography
Marketers analyze: Changing age and family structures Geographic population shifts Educational characteristics Population diversity The U.S. population contains several generational groups: Baby Boomers Generation X Millennials (or Generation Y) Generation Z Targeting Gen Xers: Lowe's markets heavily to Gen X homeowners with ideas and advice on home-improvement projects and problems, urging them to "Never Stop Improving."
big data and artificial intelligence
Marketers can now amass mountains of data Brands can use big data to: gain deep customer insights, personalize marketing offers, and improve customer engagements and service
competitors
Marketers must gain strategic advantage by positioning products strongly against competitors. No single strategy is best for all companies.
Relationships
Marketing consists of creating, maintaining, and growing desirable exchange relationships. Strong relationships are built by consistently delivering superior customer value.
Creating and capturing customer value
Marketing creates value for customers understand marketplace and customers design a customer value-driven marketing strategy construct a marketing program engage customers, build relationships Captures value from customers
Marketing
Marketing is engaging customers and managing profitable customer relationships.
actors in the microenvironment
the company, suppliers, marketing intermediaries, competitors, publics, customers
Contemporary Marketing
Satisfying customer needs Imaginative Web sites and mobile phone apps, blogs, online videos, and social media Reach customers directly, personally, and interactively
Microenvironment:
Actors close to the company that affect its ability to serve its customers
Contents of a Marketing Plan
A marketing strategy consists of specific strategies for target markets, positioning, the marketing mix, and marketing expenditure levels. It outlines how the company intends to create value for target customers in order to capture value in return. In this section, the planner explains how each strategy responds to the threats, opportunities, and critical issues spelled out earlier in the plan. Additional sections of the marketing plan lay out an action program for implementing the marketing strategy along with the details of a supporting marketing budget. The last section outlines the controls that will be used to monitor progress, measure return on marketing investment, and take corrective action. The plan begins with an executive summary that quickly reviews major assessments, goals, and recommendations. The main section of the plan presents a detailed SWOT analysis of the current marketing situation, as well as, potential threats and opportunities. The plan next states major objectives for the brand and outlines the specifics of a marketing strategy for achieving them.
Markets
All actual and potential buyers of a product Sellers and Consumers market Customer-managed relationships
partner relationship management
Working closely with partners both inside and outside the company to jointly bring more value to customers Partners inside the firm—cross-functional teams Partners outside the firm—suppliers, channel partners
Amazon
Amazon gets the goods to its customers fast. As much as it sells products and convenience, Amazon also sells "speed." Amazon is constantly innovating to create value and meet the customers' needs. Amazon does much more than just sell goods online. It engages customers and creates satisfying customer experiences. "The thing that drives everything is creating genuine value for customers," says Amazon founder Jeff Bezos.
Goals of Marketing
Attract new customers by promising superior value Keep and grow current customers by delivering satisfaction
Customer-generated marketing
Brand exchanges created by consumers Consumers play an increasing role in shaping their own brand experiences and those of other consumers. Uninvited and Invited Consumer-to-consumer exchanges Consumers invited by companies New product and service ideas Active role in shaping ads
Marketing management
Choosing target markets and building profitable relationships Designing a winning marketing strategy Target market? Value proposition?
business portfolio
Collection of businesses and products that make up the company Steps in business portfolio planning: Analyze the firm's current business portfolio Develop strategies to shape the future portfolio Mars Inc. is not only the world's number one candy maker but a world-leading pet nutrition and health-care company.
Do-Not-Call Implementation Act (2003)
Collects fees from telemarketers for the enforcement of a Do-Not-Call Registry
partnering with others in the marketing system
Companies should assess value chains Internal departments External: suppliers, distributors and customers. Companies are partnering with other members of the supply chain to improve the performance of the customer value delivery network. The customer value delivery network partners with each other to improve the performance of the entire system in delivering customer value. For example, Ford's performance against Toyota depends on the quality of Ford's overall value delivery network versus Toyota's. Even if Ford makes the best cars, it might lose in the marketplace if Toyota's dealer network provides a more customer-satisfying sales and service experience.
Cause-Related Marketing
Companies use cause-related marketing to Exercise their social responsibility Build more positive images Primary form of corporate giving Controversy—strategy for selling more rather than a strategy for giving Ben & Jerry's three-part "linked prosperity" mission drives it to make fantastic ice cream.
partnering with other company departments
Company departments are links in the company's internal value chain. Firm's success depends on how well the various departments coordinate their activities. Marketers should ensure all the departments are customer-focused and develop a smooth functioning value chain. These True Value ads recognize that everyone in the organization—from marketing research analyst, Jeff Alvarez to operations manager, Tom Statham—must contribute to helping the chain's customers handle their home improvement projects. They form the foundation for the brand's "Behind Every Project Is a True Value" positioning.
economic environment
Economic factors affect consumer purchasing power and spending Changes in consumer spending Differences in income distribution They are buying less and looking for greater value in the things they do buy. In turn, value marketing has become the watchword for many marketers. Marketers in all industries are looking for ways to offer today's frugal buyers greater value. Marketers should pay attention to income distribution as well as income levels. Over the past several decades, the rich have grown richer, the middle class has shrunk, and the poor have remained poor.
digital and social media marketing
Engaging consumers via their digital devices using digital marketing tools
Financial Reform Law (2010)
Created the Bureau of Consumer Financial Protection: Writes and enforces rules for the marketing of financial products to consumers
customer perceived value
Customer's evaluation of a marketing offer relative to those of competing offers
Customer-engagement marketing
Customer-engagement marketing makes the brand a meaningful part of consumers' conversations and lives. Greater consumer empowerment means that companies must practice marketing by attraction. Marketers must find ways to enter consumers' conversations with engaging and relevant brand messages.
Customer value and satisfation
Customers form expectations about the value and satisfaction of market offerings. Satisfied customers buy again Dissatisfied customers switch to competitors Setting the right level of expectations Low expectations may fail to attract buyers High expectations may disappoint buyers
customer relationship management
Delivering superior customer value and satisfaction to build and maintain profitable customer relationships
setting company objectives and goals
Detailed supporting objectives for each level of management Setting a hierarchy of objectives Business objectives Marketing objectives A company needs to turn its mission into detailed supporting objectives for each level of management. Each manager should have objectives and be responsible for reaching them. A broad mission leads to a hierarchy of objectives, including business objectives and marketing objectives. Marketing strategies and programs must be developed to support marketing objectives. For example, the renamed CVS Health, views itself as a "pharmacy innovation company," one that is "helping people on their path to better health." The company's motto: "Health is everything."
the changing marketing landscape
Digital Age Changing Economic Environment Growth of Not-for-Profit Marketing Rapid Globalization Sustainable Marketing
market segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Telephone Consumer Protection Act (1991)
Establishes procedures to avoid unwanted telephone solicitations
political envrionment
Forces that influence or limit various organizations and individuals in a society Laws, government agencies, and pressure groups The political environment refers to laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
strategic planning
Game plan for long-run survival and growth Helps to maintain a strategic fit between its goals and capabilities and changing marketing opportunities.
developing strategies for growth
In only three decades, Starbucks has grown at an astounding pace from a small Seattle coffee shop to an over $22 billion powerhouse with more than 27,000 retail stores in more than 75 countries.Good marketing strategy means keeping your eye squarely on delivering customer value. The objective isn't just growth or sales or profits; it's engaging customers in a meaningful way and creating value for them.
cultural environment
Institutions and other forces that affect a society's basic values, perceptions, and behaviors Persistence of cultural values Core beliefs and values have a high degree of persistence. Secondary beliefs and values are more open to change. Shifts in secondary cultural values of people's views about Themselves Others Organizations Society Nature Universe Riding the natural and organic foods trend, Annie's is out to create a happier and healthier world with nourishing products that are "forever kind to the planet."
the company
Interrelated groups in a company form the internal environment Departments share the responsibility for understanding customer needs and creating customer value.
creating customer loyalty and retention
Keeping customers loyal makes good economic sense. Customer lifetime value is the value of the entire stream of purchases a customer makes over a lifetime of patronage. Customer defections can be costly Can lose that customer's lifetime value May cause other customers to defect
customer value driven marketing strategy
Marketing logic by which the company creates customer value and achieves profitable customer relationships Integrated marketing mix: product, price, place, and promotion Activities for best marketing strategy and mix Marketing analysis Planning, implementation, and control
managing marketing strategy and the marketing mix
Marketing strategy involves two key questions: Which customers will we serve (segmentation and targeting)? How will we create value for them (differentiation and positioning)? Then the company designs a marketing program—the four Ps—that delivers the intended value to targeted consumers. At its core, marketing is all about creating customer value and profitable customer relationships.
marketing control
Measuring and evaluating the results of marketing strategies and plans Operating control ensures that the company achieves its sales, profits, and other goals. Strategic control involves looking at whether the company's basic strategies are well matched to its opportunities.
Adapting to the Fast-Changing Marketing Environment
Microsoft dominated the computer software world throughout the 1990s and much of the 2000s but struggled in the fast changing technology environment. Microsoft has a new mission with a different focus. The new mission focuses not on devices and services but on outcomes. Rather than chasing competitors in mobile devices and operating systems, Microsoft now intends to lead them in productivity tools.
starbucks customer driven value marketing startegy
More than just coffee, Starbucks sells the Starbucks Experience, one that "enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time." Starbucks needed to "reignite the emotional attachment with customers" and Starbucks' store managers participated in a morale-building reorientation to emphasize the point. The company closed all of its U.S. locations for 3 hours to conduct nationwide employee training, on the basis of producing satisfying customer experiences. Thus began a process of continual renewal which reignited "The Starbucks Experience" through new products, innovative store formats and new platforms for engaging customers.
Five core customer and marketplace concepts
Needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets
managing and measuring marketing return on investment
Net return from a marketing investment divided by the costs of the marketing investment Assessment measures Standard marketing performance measures Customer-centered measures. This figure views marketing expenditures as investments that produce returns in the form of more profitable customer relationships. Marketing investments result in improved customer value and satisfaction, which in turn increases customer attraction and retention. This increases individual customer lifetime values and the firm's overall customer equity. Increased customer equity, in relation to the cost of the marketing investments, determines return on marketing investment.
Technological Environment
New technologies create new markets and opportunities. Digital Technology Radio-frequency identification (RFID) is technology to track products through various points in the distribution channel. Government agencies investigate and ban potentially unsafe products. Disney is taking RFID technology to new levels with its cool new MagicBand RFID wristband.
criticism of the 4 Ps
Omits or underemphasizes service products Needs to include packaging as a product decision Buyer's perspective would emphasize the four A s: Acceptability Affordability Accessibility Awareness
Customer value driven marketing strategy
Once a company fully understands its consumers and the marketplace, it must decide which customers it will serve and how it will bring them value."
social media marketing
Online social media provide a digital home for people to connect and share important information and life's moments. Social media offer an ideal platform for real-time marketing and engagement. Facebook, Twitter, Snapchat, and smaller more focused sites.
natural environment
Physical environment and natural resources needed as inputs by marketers or affected by marketing activities Environmental sustainability concerns have grown steadily over the past three decades. Trends: Shortages of raw materials Increased pollution Increased government intervention
growing share of a customer
Portion of the customer's purchasing in their product categories Share of Customer is increased by: Good customer relationship management Offering greater variety to current customers Creating programs to cross-sell and up-sell to existing customers
downsizing
Products or business units that are unprofitable or no longer fit the company's overall strategy Reasons to abandon products or markets Rapid growth of the company Lack of experience in a market Change in market environment Decline of a particular product When a firm finds brands or businesses that are unprofitable or that no longer fit its overall strategy, it must carefully prune, harvest, or divest them.
Market offerings
Products, services, information, or experiences Offered to satisfy a need or want
Children's Online Privacy Protection Act (2000)
Prohibits online collection of information from children without parental consent Allows parents to review information collected from their children
suppliers
Provide the resources needed by the company to produce its goods and services Supplier problems seriously affect marketing Supply shortages or delays Labor strikes Price trends of key inputs Home furnishings retailer IKEA knows the importance of building close relationships with its extensive network of suppliers.
partnering to build customer relationships
Provides a guiding philosophy Marketing concept—company strategy should create customer value and build profitable relationships Provides inputs to strategic planners Identify market opportunities and potential to take advantage of them Designs strategies for reaching the business unit's objectives
publics
Publics: any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives Financial Media Government Citizen action Local General Internal
Socially Responsible Behavior
Socially responsible companies actively seek out ways to protect the long-run interests of consumers and the environment. Companies develop policies, guidelines, and other responses to complex social responsibility issues.
growth of not for profit marketing
Sound marketing can help not-for-profits attract membership, funds, and support. Marketing has become a major part of the strategies of many not-for-profit organizations, such as colleges, hospitals, museums, zoos, symphony orchestras, foundations, and even churches. They face stiff competition for support and membership. Sound marketing can help them attract membership, funds, and support. For example, Alex's Lemonade Stand Foundation is a not-for-profit organization with a special mission: "Fighting childhood cancer, one cup at a time." Government agencies have also shown an increased interest in marketing. For example, the U.S. military has a marketing plan to attract recruits to its different services. Various government agencies are now designing social marketing campaigns to encourage energy conservation and concern for the environment or discourage smoking, illegal drug use, and obesity
Needs
States of felt deprivation Physical needs—food, clothing, warmth, and safety Social needs—belonging and affection Individual needs—knowledge and self-expression
BCG Growth-Share Matrix
The best-known portfolio-planning method was developed by the Boston Consulting Group (BCG), a leading management consulting firm. This BCG Growth-Share matrix shows the classification of company's SBUs. Market growth rate provides a measure of market attractiveness. Relative market share serves as a measure of company strength in the market. The Growth-Share Matrix defines four types of SBUs: Stars are high-growth, high-share businesses or products. Cash cows are low-growth, high-share businesses or products. Question marks, are low-share business units in high-growth markets. Dogs are low-growth, low-share businesses and products. The 10 circles in this growth-share matrix would represent a company's 10 current SBUs. The company must decide how much it will invest in each product or business SBU. It must decide whether to build, hold, harvest or divest.
The 4 Ps of marketing
The marketing mix is the set of tactical marketing tools that the firm blends to produce the response it wants in the target market. This figure shows the four marketing tools, the four Ps. - Product is the goods-and-services combination the company offers to the target market. - Price is the amount of money customers must pay to obtain the product. - Place includes the company activities that make the product available to target consumers. - Promotion refers to activities that communicate the merits of the product and persuade target customers to buy it. An effective marketing program blends the marketing mix elements into an integrated marketing program designed to achieve the company's marketing objectives by delivering value to consumers.
The product market and expansion grid
The product/market expansion grid refers to a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification. Companies must first consider if they can achieve deeper market penetration. That is, make more sales to current customers without changing the original products. Second, companies must consider possibilities for market development. This refers to identifying and developing new markets for its current products. Third, companies could consider product development by offering modified or new products to current markets. Finally, companies might consider diversification, which refers to starting up or buying businesses beyond the firm's current products and markets.
building customer equity
Total combined customer lifetime values of all of the company's customers Measures the future value of the company's customer base Increases when the loyalty of the firm's profitable customers increases Better measure of a firm's performance than current sales or market share For example, though Cadillac had a huge share of the luxury car market, most of its buyers were in the older age brackets and average customer lifetime value was falling. Many Cadillac buyers were on their last cars. Thus, although Cadillac's market share was good, its customer equity was not.
Marekting Intermediaries
help the company to promote, sell, and distribute its products to final buyers. Resellers Physical distribution firms Marketing services agencies Financial intermediaries Coca-Cola provides its retail partners with much more than just soft drinks. It also pledges powerful marketing support.
value delivery network
is composed of the company, its suppliers, its distributors, and its customers
Exchange
is the act of obtaining a desired object by offering something in return.
Market myopia
paying more attention to the specific products than to the benefits and experiences produced
Market positioning
the product to occupy a clear, distinctive, and desirable place relative to competing products
