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.
Marketing
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, ands services to create exchanges that satisfy individual and organizational goals.
Meeting needs profitably.
Marketing Mix - 4 Ps
Product
Price
Promotion
Place
What is marketed?
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
Ideas
Marketer
A marketer is someone who seeks a response - attention, a purchase, a vote, a donation - from another party, called the prospect.
Market
People with both the desire and the ability to buy a specific product or service.
A market is a collection of buyers and sellers who transact over a particular product or product class (such as the housing market or the grain market).
4 Key Customer Markets
Consumer Market
Business Market
Global Market
Nonprofit/Government Market
Marketplace
The marketplace is physical, such as a store you shop in.
Marketspace
The marketspace is digital, as when you shop on the Internet.
Consumer Market
Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel, and athletic shoes and equipment. These companies spend a great deal of time trying to establish a superior brand image.
Business Market
Companies selling business goods and services often face well-trained and well-informed professional buyers who are skilled at evaluating competitive offerings. Business buyers buy goods in order to make or resell a product to others at a profit.
Global Market
Companies selling goods and services in the global marketplace face additional decisions and challenges. They must decide which countries to enter; how to enter each (as an exporter, licenser, joint venture partner, contract manufacturer, or solo manufact
Nonprofit/Government Market
Companies selling their goods to nonprofit organizations such as churches, universities, charitable organizations, and government agencies need to price carefully, because these buyers have limited purchasing power. Lower selling prices affect the feature
Needs
Condition in which there is a deficiency of something or need for relief.
Needs are the basic human requirements. People need air, food, water, clothing, and shelter to survive. People also have strong needs for recreation, education, and entertainment.
Wants
Wish or desire for something.
Needs become wants when they are directed to specific objects that might satisfy the need. A consumer in the US needs food buy may want a hamburger, french fries, and a soft drink.
Wants are shaped by our society.
Demands
Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are willing and able to buy one. Companies must measure not only how many people want their product, but also how many would actually be willing a
5 Types of Needs
Stated
Real
Unstated
Delight
Secret
Target Market
A target market consists of one or more specific groups/segments of potential customers/markets toward which an organization directs its marketing program.
Positioning
Position refers to the place an offering occupies in the consumers' minds on important attributes relative to competitive products.
Positioning is the act of designing the company's offering and image to occupy a distinctive place in the mind of the targe
Market Segmentation
Market segmentation involves aggregating prospective buyers into group or segments that (1) have common needs and (2) will respond similarly to a marketing action.
Value Proposition
Companies address needs by putting forth a value proposition, a set of benefits that they offer to customers to satisfy their needs. The intangible value proposition is made physical by an offering, which can be combination of products, services, informat
Brand
A name, term, sign, symbol, or design, or a combination of them, intended to identify to goods or services of one seller or group of sellers and to differentiate them from those of competitors.
Transaction
Transaction is a trade of value between two or more parties: A gives X to B and receives Y in return.
4 Company Orientations
Production
Product
Selling
Marketing
Value
Value is the ratio of perceived benefits to price;
Value = (Perceived Benefits divided by Price)
Customer Mix - 4 Cs
Customer Solution
Customer Cost
Convenience
Communication
Creating Value / Value Chain
The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of 5 primary and 4 support activities performed to design, produce, market, deliver, and support its products/services.
Marketing Information System (MIS)
A MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
Services Marketing Mix - 8 Ps
Product
Price
Promotion
Place
Packaging
People
Process
Physical Evidence
Productivity & Quality
Fad
A fad is unpredictable, short-lived, and without social, economic, and political significance. A company can cash in on a fad, but getting it right is more a matter of luck and good timing than anything else.
Trend
A trend is a direction or sequence of events that has some momentum and durability. Trends are more predictable and durable than fads.
Megatrend
Megatrends are large scale, economic, political, and technological changes that are slow to form, and once in place, they influence us for some time - between 7 to 10 years, or longer.
6 Environmental Forces That Impact Strategy
Demographic
Economic
Socio-Cultural
Natural
Technological
Political-Legal
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.
Marketing Research Process
1. Define the problem
2. Develop research plan
3. Collect information
4. Analyze information
5. Present findings
6. Make decision
Marketing Metrics
Marketing metrics is the set of measures that helps marketers quantify, compare, and interpret marketing performance.
Marketing-Mix Modeling
Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities.
Measures of Market Demand
Potential Market
Available Market
Target Market
Penetrated Market
Marketing Decision Support System (MDSS)
A marketing decision support system is a coordinated collection of data, systems, tools, and techniques with supporting hardware and software by which an organization gathers and interprets relevant information from business and environment and turns it i
What Influences Consumer Behavior?
Cultural Factors
Social Factors
Personal Factors
What is Culture? And how it influences consumer behavior.
Culture is the fundamental determinant of a person's wants and behaviors acquired through socialization processes with family and other key institutions.
Subcultures: Nationalities, Religions, Racial Groups, Geographic Regions.
Social Factors. And how they influences consumer behavior.
Family
Reference Groups [Primary, Secondary, Aspirational, Dissociative]
Social Roles
Statuses
Personal Factors. And how they influences consumer behavior.
Age
Life Cycle Stage
Occupation
Wealth
Personality
Values
Lifestyles
Self-Concept
Key Psychological Processes
Motivation
Perception*
Learning
Memory
Perceived Risk
Functional
Physical
Financial
Social
Psychological
Time
Motivation: Freud's Theory
Behavior is guided by subconscious motivations.
Motivation: Maslow's Hierarchy of Needs
Behavior is driven by the lowest, unmet need.
5. Self-actualization needs
4. Esteem needs
3. Social needs
2. Safety needs
1. Physiological needs
Motivation: Herzberg's Two-Factor Theory
Behavior is guided by motivating and hygiene factors.
Organizational Buying
B2B
Organizational buying refers to the decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers.
Key Organizational Buying Criteria
Quality Specifications
Delivery Schedules
Past Performance
Production Facilities/Capacity
Warranty/Claim Policies
Technical Capability
Price
The Buying Center
Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeeprs
Buying Situations
Straight Rebuy
Modified Rebuy
New Task
Opportunism
Opportunism is some form of cheating or undersupply relative to an implicit or explicit contract.
4 Levels of Market Segmentation
1. Segments - Geographic, Demographic, Psychographic, Behavioral
2. Niches
3. Mass Market
4. Individuals
The Role of Brands
- Identify the maker
- Simplify product handling
- Organize accounting
- Offer legal protection
What is Branding?
Branding is endowing products and services with the power of the brand.
What is Brand Equity?
Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.
Drivers of Brand Equity - Brand Elements, Marketing Activities, Meaning Transference
What is a Brand Promise?
A brand promise is the marketer's vision of what the brand must be and do for consumers.
6 Brand Elements
Brand Names
Slogans
Characters
Symbols
Logos
URLs
STP Critical in Marketing
S - Segmentation: discover different market group needs
T - Targeting: pursue market segments you can satisfy in superior way
P - Positioning: target market recognizes distinctive offering and image
Points-of-Difference
PODs
Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand.
Consumer Desirability Criteria for PODs - Relevance/Importance, Distinctiveness/Uniqueness,
Points-of-Parity
POPs
Associations that are not necessarily unique to the brand but may be shared with other brands.
Differentiation Strategies
Product
Personnel
Channel
Image
Product Life Cycles
Products have a limited life.
Product sales pass through distinct stages each with different challenges and opportunities.
Profits rise and fall at different stages.
Products require different strategies in each life cycle stage.
Introduction, Growth, Mat
Marketing Program Modifications
Prices
Distribution
Advertising
Sales Promotion
Services
Market Evolution Stages
Emergence
Growth
Maturity
Decline
Emerging Markets
Latent
Single-Niche
Multiple-Niche
Mass-Market
5 Forces Determining Segment Structural Attractiveness
Potential Entrants
Buyers
Subsitutes
Suppliers
Industry Competitors
Competitive Strategies
Market Challengers
Market Nichers
Market Followers
5 Attack Strategies
Frontal Attack
Flank Attack
Encirclement Attack
Bypass Attack
Guerrilla Warfare
4 Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adapter
Product
A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
5 Product Levels
Potential Product
Augmented Product
Expected Product
Basic Product
Core Benefit
Consumer Goods
Convenience
Shopping
Specialty
Unsought
The Product Hierarchy
Item
Product Type
Product Line
Product Class
Product Family
Need Family
Product Line Analysis
Core Product
Staples
Specialties
Convenience Items
Product-Mix Pricing
Product-line pricing
Optional-feature pricing
Captive-product pricing
Two-part pricing
By-product pricing
Product-bundling pricing
What is a Service?
A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.
5 Service Sectors
Government
Private Nonprofit
Retail
Manufacturing
Business
5 Categories of Service Mix
Pure Tangible Good
Good w/ Accompanying Services
Hybrid
Service w/ Accompanying Goods
Pure Service
Physical Evidence and Presentation of Services
Place
People
Equipment
Communication Material
Symbols
Price
Common Pricing Mistakes
- Determine costs and take traditional industry margins
- Failure to revise price to capitalize on market changes
- Setting price independently of the rest of the marketing mix
- Failure to vary price by product item, market segment, distribution channels
Steps in Setting Price
1. Select the price objective
2. Determine demand
3. Estimate costs
4. Analyze competitor price mix
5. Select pricing method
6. Select final price
Price-Adaptation Strategies
Geographical Pricing
Discounts/Allowances
Promotional Pricing
Differentiated Pricing
What is a Marketing Channel?
A marketing channel system is the particular set of interdependent organizations involved in the process of making a product or service available for use or consumption.
Push Strategy
A push strategy uses the manufacturer's sales force, trade promotion money, and other means to induce intermediaries to carry, promote, and sell the product to end users.
Pull Strategy
A pull strategy uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries.
What is Retailing?
Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, nonbusiness use.
Major Retailer Types
Specialty store
Department store
Supermarket
Convenience store
Discount store
Off-price retailer
Superstore
Catalog showroom
Levels of Retail Service
Self-Service
Self-Selection
Limited Service
Full Service
Nonstore Retailing
Direct Selling
Direct Marketing
Automatic Vending
Buying Service
What is a Franchising System?
A franchising system is a system of individual franchisees, a tightly knit group of enterprises whose systematic operations are planned, directed, and controlled by the operation's franchisor.
Retailers' Marketing Decisions
Target Market
Product Assortment
Procurement
Prices
Services
Store Atmosphere
Store Activities
Communications
Locations
What are Integrated Logistics Systems?
An integrated logistics system (ILS) includes materials management, material flow systems, and physical distribution, aided by information technology.
What are Marketing Communications?
Marketing communications are the means by which firms attempt to inform prospective buyers, persuade them to try, and remind consumers of the benefits, directly or indirectly, about the products and brands they sell.
Integrated Marketing Communications
(IMC)
Integrated marketing communications (IMC) is the concept of designing marketing communications programs that coordinate all promotional activities�advertising, personal selling, sales promotion, public relations, and direct marketing�to provide a consiste
5 Primary Elements of the Promotional Mix
Advertising
Personal Selling
Public Relations
Sales Promotion
Direct Marketing
Steps in Developing Effective Communications
Identify Target Audience
Determine Objectives
Design Communications
Select Channels
Establish Budget
Decide on Media Mix
Measure Results/Manage IMC
4 Communications Objectives
Category Need
Brand Awareness
Brand Attitude
Purchase Intention
What is Advertising?
Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
5 Ms of Advertising
Mission
Money
Message
Media
Measurement
Advertising Objectives
Informative Advertising
Persuasive Advertising
Reminder Advertising
Reinforcement Advertising
Factors to Consider in Setting an Advertising Budget
Stage in the product life cycle.
Market share and consumer base.
Competition and clutter.
Advertising frequency.
Product substitutability.
What is Sales Promotion?
Sales promotions consist of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
Using Sales Promotions
Establish Objectives
Select Tools
Develop Program
Pretest
Implement and Control
Evaluate Results
Using Sponsored Events
Establish Objectives
Choose Events
Design Programs
Measure Effectiveness
Ideal Events
- Audience closely matches target market
- Event generates media attention
- Event generates media attention
- Event lends itself to ancillary activities
- Event enhances brand image of sponsor
Decisions in Marketing PR
Establish Objectives
Choose Messages
Choose Vehicles
Implement
Evaluate Results
What is Direct Marketing?
Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen.
Direct Marketing Channels
Direct Mail
Catalogs
Telemarketing
Other Direct Response
Constructing a Direct-Mail Campaign
Establish Objectives
Select Target Prospects
Develop Offer Elements
Test Elements
Execute
Measure Success
5 Elements of an Offer Strategy in Direct Mail
Product
Offer
Medium
Distribution Method
Creative Strategy
5 Components of the Mailing
1. Outside envelope
2. Sales letter
3. Circular
4. Toll-free number and/or Website and/or Reply form (postage free)
5. Reply envelope
7 Website Design Elements
1. Context - Layout and design
2. Content - Text, pictures, sound, video
3. Community - User to user communication
4. Customization - tailor to users
5. Communication - two-way
6. Connection - site to site links
7. Commerce - commercial transactions
e-Marketing Guidelines
- Give the customer a reason to respond
- Personalize the content of your emails
- Offer something the customer could not get via direct mail
- Make it easy for customers to unsubscribe
Designing a Sales Force
Sales Force Objectives
Sales Force Strategy
Sales Force Structure
Sales Force Size
Compensation
7 Steps in Effective Selling
1. Prospecting/Qualifying
2. Preapproach
3. Approach
4. Presentation
5. Overcoming Objectives
6. Closing
7. Follow-up
6 Categories of New Products
New-to-the-World
New Product Lines
Additions
Improvements
Repositionings
Cost Reductions
New Product Failure Factors
- Market/Marketing: small potential market, differentiation unclear, poor positioning
- Financial: low ROI
- Timing: too early or too late in market
- Technical: bad design or doesn't work
- Organizational: lack of support or poor fit
- Environmental: gov
What is a Venture Team?
A venture team is a cross-functional group charged with developing a specific product or business; intrapreneurs are relieved of other duties and provided a budget and time frame.
What is Adoption?
Adoption is an individual's decision to become a regular user of a product.
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
What is a Global Firm?
A global firm is one that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
Major Decisions in International Marketing
- Deciding whether to go
- Deciding which markets to enter
- Deciding how to enter
- Deciding on the marketing program
- Deciding on the marketing organization
4 Stages of Internationalization
1. No regular export activities
2. Export via independent agents
3. Establish sales subsidiaries
4. Establish production facilities abroad
5 Modes of Entry into Foreign Markets
1. Indirect Exporting
2. Direct Exporting
3. Licensing
4. Joint Ventures
5. Direct Investment
---Commitment, Risk, Control, Profit Potential--->
Direct Exporting Methods
- Domestic-based export department
- Overseas sales branch or subsidiary
- Traveling export sales representatives
- Foreign-based distributors or agents
Global Cultural Dimensions
Individualism vs. Collectivism
High vs. Low Power Distance
Masculine vs. Feminine
Weak vs. Strong Uncertainty Avoidance
Commandments of Global Branding
- Understand similarities and differences in the global branding landscape
- Do not take shortcuts in brand building
- Establish a marketing infrastructure
- Embrace integrated marketing communications
- Establish brand partnerships
- Balance standardizat
Levels of Product Adaptation
- Production of regional product versions
- Production of country versions
- Production of city versions
- Production of retailer versions
What is a Gray Market?
A gray market consists of branded products diverted from normal or authorized distributions channels in the country of product origin or cross international borders; dealers in lower priced countries sell products in higher priced countries.