Marketing management
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Marketing is creating value for customers and managing relationships to benefit the organization and stakeholders. Marketing management is choosing target markets and gaining, keeping, and growing customers through superior value. Marketing involves goods, services, events, people, ideas, and more. The marketing plan guides the marketing effort through strategic and tactical levels. Marketing research systematically addresses specific marketing situations through problem definition, research planning, information collection, analysis, and findings presentation.
Marketing management
- 1. 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. 1-1
- 2. What is Marketing Management? Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. 1-2
- 3. What is Marketed? • Goods (tangible) • Places (Cities, States, Regions, Nations) • Services (intangible) and Properties (Intangible • Events (time based—trade rights of ownership of real estate or financial properties) shows) and Experiences (Walt Disney World’s Magic • Organizations kingdom) (Universities, Museums, Performing Arts Organization) • Persons (Artists, Musicians, CEO, Physicians) • Information (Books, Schools, Magazines) • Ideas 1-3
- 4. The Ten Deadly Sins of Marketing The Ten Commandments of Marketing • Ten Sins • Ten Commandments 1-4
- 5. 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) 1-5
- 6. Marketing Management Tasks • Developing marketing • Shaping market strategies (strategic fit) offerings • Capturing marketing • Delivering value insights (obtaining information) • Communicating value • Connecting with customers (relationships) • Creating long-term • Building strong brands growth (understand strengths (positioning and and weaknesses) new-product development) 1-6
- 8. Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well. 1-8
- 9. Demand States • Negative (dislike product • Irregular (purchases vary on a and may even pay a price to seasonal, monthly, weekly, daily, avoid it) or even hourly basis) • Nonexistent (unaware of • Unwholesome (product or uninterested in the product) that have undesirable social consequences) • Latent (need that cannot be satisfied by existing product) • Full (adequately buying all products put into the marketplace) • Declining (buy the product • Overfull (more consumers less frequently or not at all) would like to buy the product that can be satisfied) 1-9
- 10. Performance Marketing • Social Initiatives • Financial • Corporate social marketing — Accountability—building supporting behavior change campaigns band and growing the • Cause marketing —promoting customer base. social issues through sponsorships, licensing agreements, and • Social Responsibility advertising Marketing—must • Corporate philanthropy—making gifts, goods, or time consider ethical • Corporate community environment, legal, and involvement—in kind or volunteer social context on service • Socially responsible business activities. practices—to protect environment and human and animal rights 1-10
- 11. CHAPTER 2
- 12. 3 V’s Approach to Marketing Define the value segment (needs and wants) Define the value proposition (benefits) Define the value network to deliver promise services. 2-12
- 13. 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. 2-13
- 14. 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. 2-14
- 15. 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. 2-15
- 16. Levels of a Marketing Plan • Strategic • Tactical – Target marketing – Product features decisions – Promotion – Value proposition – Merchandising – Analysis of marketing – Pricing opportunities – Sales channels – Service 2-16
- 17. Marketing Plan Contents Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls 2-17
- 18. Evaluating a Marketing Plan Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete? 2-18
- 19. 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 2-19
- 20. SWOT Analysis • Strengths • Weaknesses • Opportunities • Threats 2-20
- 21. 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 market segments 2-21
- 22. CHAPTER 3
- 23. 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. 3-23
- 24. 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) 3-24
- 25. 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 3-25
- 26. CHAPTER 4
- 27. 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 28. The Marketing Research Process Define the problem Develop research plan Collect information Make decision Analyze information Present findings 4-28
- 29. 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?) 4-29
- 30. Step 2 Data Research Sources Approach Research Sampling Instruments Plan Contact Methods 4-30
- 31. 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 32. Research Instruments • Questionnaires • Qualitative Measures • Technological Devices Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 33. 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? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 34. Types of Samples Probability Non-probability • Simple random • Convenience – Every member of population has an equal chance of – Selects the most accessible selection population members • Stratified random • Judgment – Population is divided into – Selects population mutually exclusive groups (age members who are good groups) and random samples prospects for accurate are drawn from each group information • Cluster • Quota – Population is divided into mutually exclusive groups (city – Selects and interviews a blocks) and a sample is taken prescribed number of from each group people in each of several categories 4-34
- 35. CHAPTER 5
- 36. 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 5-36
- 37. CHAPTER 6
- 38. What Influences Consumer Behavior? Cultural Factors Social Factors Personal Factors Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 39. 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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 40. Subcultures Nationalities Religions Racial groups Geographic regions Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 41. Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 42. 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 43. Social Factors Reference Family groups Social Statuses roles Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 44. Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 45. Family Distinctions Affecting Buying Decisions • Family of Orientation • Family of Procreation Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 46. Roles and Status What degree of status is associated with various occupational roles? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 47. Personal Factors Age Self- Life cycle concept stage Lifestyle Occupation Values Wealth Personality Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 48. CHAPTER 7
- 49. Characteristics of Business Markets • Fewer buyers • Multiple sales calls • Close supplier- • Derived demand customer relationships Inelastic demand • • Professional purchasingFluctuating demand • • Many buying influencesGeographically • concentrated buyers • Direct purchasing Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
- 50. Stages in the Buying Process: Buyphases • Problem recognition • General need description • Product specification • Supplier search • Proposal solicitation • Supplier selection • Order-routine specification • Performance review Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
- 51. CHAPTER 8
- 52. 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) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 53. 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 54. 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 55. CHAPTER 9
- 56. 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 57. Brand A name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. 9-57
- 58. Attributes of Strong Brands • Excels at delivering • Uses multiple marketing desired benefits activities • Stays relevant • Understands consumer- • Priced to meet brand relationship perceptions of value • Supported by • Positioned properly organization • Communicates • Monitors sources of consistent brand brand equity messages 9-58
- 59. Brand Equity The differential effect that Brand knowledge has on Consumer response to the marketing of that brand. 9-59
- 60. Advantages of Strong Brands • Improved • Larger margins perceptions of • More inelastic product performance consumer response • Greater loyalty • Greater trade • Less vulnerability to cooperation competitive • Increased marketing marketing actions communications • Less vulnerability to effectiveness crises • Possible licensing opportunities 9-60
- 61. Brand Knowledge Thoughts Feelings Knowledge Beliefs Images Experiences 9-61
- 62. Measuring Brand Equity Brand Audits—assess health of brand, uncover sources of brand equity, ways to improve Brand Tracking—baseline information about brands and marketing information Brand Valuation—estimation of total financial value of the brand 9-62
- 63. 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 64. 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
- 65. CHAPTER 10
- 66. Identity and Image Identity: Image: The way a The way the company aims public perceives to identify or the company or position itself Its products 8-66