Developing Marketing Strategies and Plans<\/a>
Gathering Information and Scanning the Environment<\/a>
Conducting Marketing Research and Forecasting Demand<\/a>
Creating Customer Value, Satisfaction, and Loyalty<\/a>
Analyzing Consumer Markets<\/a>
Analyzing Business Markets<\/a>
Identifying Market Segments and Targets<\/a>
Creating Brand Equity<\/a>
Crafting the Brand Position<\/a>
Dealing with Competition<\/a>
Setting Product Strategy<\/a>
Designing and Managing Services<\/a>
Developing Pricing Strategies and Programs<\/a>
Designing and Managing Value Networks and Channels<\/a>
Managing Retailing, Wholesaling, and Logistics<\/a>
Additional Slides<\/a><\/p>\n\n\n\n
Defining Marketing for the 21st Century<\/h2>\n\n\n\nThe Importance of Marketing<\/strong><\/h3>\n\n\n\nWhat is Marketing?<\/strong><\/h4>\n\n\n\nIt deals with identifying and meeting human and social needs or \u201cmeeting needs profitably\u201d. It 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. Marketing consists of actions undertaken to elicit desired responses from a target audience.<\/p>\n\n\n\n
What is Marketing Management?<\/strong><\/h4>\n\n\n\nIs the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value or the \u201cthe art of selling products\u201d. Peter Drucker said , \u201cIdeally, marketing should result in a customer who is ready to buy.\u201d<\/p>\n\n\n\n
Marketing management involves these two important aspects:<\/p>\n\n\n\n
- Exchange \u2013 the core of marketing; the process of obtaining the desired product form someone by offering something in return<\/li>
- Transaction \u2013 is a trade of values between two or more parties<\/li><\/ul>\n\n\n\n
What is Marketed?<\/strong><\/h3>\n\n\n\n- Goods<\/li>
- Services (i.e. airlines, hotels, car rental, barbers\u2026)<\/li>
- Events (concerts, trade shows)<\/li>
- Experiences (Disney World, customized experiences)<\/li>
- Persons (celebrity marketing)<\/li>
- Places (cities, tourist attractions)<\/li>
- Properties (real estate or financial property \u2013 stocks and bonds)<\/li>
- Organizations (universities, museums, performing arts orgs, non-profit orgs.)<\/li>
- Information (encyclopedias, magazine)<\/li>
- Ideas (\u201cFriends Don\u2019t Let Friends Drive Drunk)<\/li><\/ul>\n\n\n\n
Who Markets?<\/strong><\/h3>\n\n\n\nMarketers and Prospects<\/h4>\n\n\n\n
\nMarketers are people who seeks a response from another party, called prospects. They are skilled in stimulating demand for a company\u2019s products. Responsible for demand management. Seek to influence the level, timing, and composition of demand to meet the organization\u2019s objectives\n \n \n<\/p>\n\n\n\n
8 Possible Demand States:<\/strong><\/h4>\n\n\n\n- Negative <\/strong>demand<\/strong> – Consumers dislike the product and may even pay a price to avoid it<\/li>
- Nonexistent demand<\/strong> – Consumers may be unaware or uninterested in the product.<\/li>
- Latent demand<\/strong> – Consumers may share a strong need that cannot be satisfied by an existing product.<\/li>
- Declining demand<\/strong> – Consumers begin to buy the product less frequently or not at all.<\/li>
- Irregular demand<\/strong> – Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.<\/li>
- F<\/strong>ull demand<\/strong> – Consumers are adequately buying all products put into the marketplace<\/li>
- Overfull demand<\/strong> – More consumers would like to buy the product than can be satisfied.<\/li>
- Unwholesome demand<\/strong> – Consumers may be attracted to products that have undesirable social consequences.<\/li><\/ol>\n\n\n\n
Markets<\/strong> \u2013 marketers often use the term market to cover various grouping of customers<\/p>\n\n\n\n- Needs markets<\/li>
- Product markets<\/li>
- Demographic markets<\/li>
- Geographic markets<\/li>
- Voter markets<\/li><\/ul>\n\n\n\n
Key Customer Markets<\/strong><\/p>\n\n\n\n- Consumer Markets<\/strong> \u2013 companies selling mass consumer goods and services spend a great deal of time trying to establish a superior brand image\n
- Brand strength depends on developing a superior product and packaging, ensuring its availability, and backing it with engaging communication and reliable service<\/li><\/ol>\n<\/li>
- Business Markets<\/strong> \u2013 companies selling business goods and services often face well-trained and well-informed professional buyers who are skilled in evaluating competitive offerings\n
- Business marketers must demonstrate how their products will help these buyers achieve higher revenue or lower costs<\/li><\/ol>\n<\/li>
- Global Markets<\/strong> – companies selling goods and services in the global marketplace face additional decisions and challenges\n
- Which countries to enter; how to enter each country\u2019 how to adapt their product and service features to each country; how to price in different countries\u2019 how to adapt their communication to fit different cultures<\/li><\/ol>\n<\/li>
- Non-Profit and Governmental Markets<\/li><\/ul>\n\n\n\n
MARKETPLACES, MARKETSPACES, AND METAMARKETS<\/strong><\/p>\n\n\n\n- Marketplace <\/strong>\u2013 physical<\/li>
- Marketspace <\/strong>\u2013 digital<\/li>
- Metamarket <\/strong>\u2013 cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries\n
- (i.e. automobile \u2013 car dealers, financing, insurance, mechanics, spare parts dealers, service shops, auto mags, classified ads, auto sites on internet)<\/li><\/ol>\n<\/li>
- \u201cmarketplace isn\u2019t what it used to be\u201d \/ How business and marketing are changing:<\/strong><\/li><\/ul>\n\n\n\n
\n\na. Changing technology
b. Globalization
c. Deregulation
d. Privatization
e. Customer empowerment
f. Customization
g. Heightened competition
h. Industry convergence
i. Retail transformation (growing power of giant retailers and \u201ccategory killers\u201d)
j. Disintermediation (i.e. in delivery of products and services \u2013 amazon, yahoo, eBay, etrade)\n<\/p>\n\n\n\n
Company Orientations Towards the Marketplace<\/strong><\/p>\n\n\n\n1. The Production Concept<\/strong><\/p>\n\n\n\n- Consumers will prefer products that are widely available and in inexpensive<\/li>
- Managers: to concentrate on achieving high production efficiency, low costs, and mass distribution<\/li><\/ul>\n\n\n\n
2. The Product Concept<\/strong><\/p>\n\n\n\n- Consumers will favor those products that offer the most quality, performance, or innovative features<\/li>
- Managers: focus on making superior products in improving them over time<\/li><\/ul>\n\n\n\n
3. The Selling Concept<\/strong><\/p>\n\n\n\n- Consumers and businesses, if left alone, will ordinarily not buy enough of the organization\u2019s products<\/li>
- Orgs must, therefore, undertake an aggressive selling and promotion efforts<\/li>
- Practice most aggressively with unsought goods: encyclopedias, insurance, funeral plots<\/li><\/ul>\n\n\n\n
4. The Marketing Concept<\/strong><\/p>\n\n\n\n- Instead of product-centered, \u201cmake-and-sell\u201d philosophy,<\/li>
- business shifted to a customer-centered, \u201csense-and-respond\u201d philosophy<\/li>
- Marketing is finding the right products for your customers<\/li>
- Focus on the needs of the buyer<\/li>
- Satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating delivering and finally consuming it<\/li><\/ul>\n\n\n\n
5. The Holistic Marketing Concept<\/strong><\/p>\n\n\n\n- \u201ceverything matters\u201d with marketing \u2013 broad, integrated perspective is often necessary<\/li>
- Four components of Holistic Marketing:<\/em><\/strong><\/li><\/ul>\n\n\n\n
![\"Four](\"https:\/\/rmnisperos.com\/wp-content\/uploads\/2016\/06\/Four-components-of-Holistic-Marketing.jpg\" "\\"\\"")
<\/a><\/figure><\/div>\n\n\n\na. Relationship Marketing<\/strong> \u2013 building mutually satisfying long-term relationships with key parties<\/p>\n\n\n\nb. Integrated Marketing \u2013 <\/strong>devise marketing activities and assemble fully integrated marketing programs to create, communicate, and deliver value for consumers<\/p>\n\n\n\n*marketing activities come in all forms; one ex. Is in terms of marketing mix:<\/p>\n\n\n\n
![\"Integrated](\"https:\/\/rmnisperos.com\/wp-content\/uploads\/2016\/06\/Integrated-Marketing.jpg\" "\\"\\"")
<\/a><\/figure><\/div>\n\n\n\n*figure below shows the company preparing an offering mix of products and services, and prices, and utilizing a communications mix:<\/p>\n\n\n\n
![\"Integrated](\"https:\/\/rmnisperos.com\/wp-content\/uploads\/2016\/06\/Integrated-Marketing-2.jpg\" "\\"\\"")
<\/a><\/figure><\/div>\n\n\n\nc. Internal Marketing<\/strong> – ensuring that everyone in the organization embraces appropriate marketing principles, especially senior management
Must take place on two levels:\n\u2022 Various marketing functions must work together (sales force, advertising, CS, product management, market research)
\u2022 Marketing must be embraced by the other departments; they must also \u201cthink customer\u201d; marketing must be pervasive throughout the company)\n<\/p>\n\n\n\nd. Social responsibility marketing<\/strong> \u2013 understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs<\/p>\n\n\n\nFundamental Marketing Concepts, Trends, and Tasks<\/strong><\/p>\n\n\n\nCore Concepts<\/strong><\/p>\n\n\n\nNEEDS, WANTS, AND DEMANDS<\/strong><\/p>\n\n\n\n- Needs:<\/strong> basic human requirements<\/li>
- Wants:<\/strong> needs become wants when they are directed to specific objects that might satisfy the need<\/li>
- Demands<\/strong>: wants for specific products backed by an ability to pay<\/li>
- Marketers do not create needs: Needs preexist marketers. Marketers, along with other societal factors, influence wants.<\/li>
- \u201cSimply giving customers what they want isn\u2019t enough anymore \u2013 to gain an edge companies must help customers learn what they want.\u201d<\/em><\/li><\/ul>\n\n\n\n
Five types of needs:<\/strong><\/p>\n\n\n\n1.) Stated needs 2)Real needs 3)Unstated needs 4)Delight needs 5)Secret needs<\/p>\n\n\n\n
TARGET MARKETS, POSITIONING, AND SEGMENTATION<\/strong><\/p>\n\n\n\n- A marketer can rarely satisfy everyone in a market\n
- Marketers start by dividing up the market into segments<\/em><\/strong>\n
- Decides which segments present the greatest opportunity \u2013 target markets<\/em><\/strong>\n
- For each chosen target market, firm develops a market offering<\/em>\n
- Offering is positioned<\/em><\/strong> in the minds of the target buyers as delivering some central benefit(s).<\/li><\/ul>\n<\/li><\/ul>\n<\/li><\/ul>\n<\/li><\/ol>\n<\/li><\/ul>\n\n\n\n
OFFERING AND BRANDS<\/strong> (value propositions)<\/p>\n\n\n\n- Offering:<\/strong> can be a combination of products, services, information, and experiences<\/li>
- Brand:<\/strong> an offering from a known source<\/li><\/ul>\n\n\n\n
VALUE AND SATISFACTION<\/strong><\/p>\n\n\n\n- Offering will be successful if it delivers value and satisfaction to the target buyer.<\/li>
- Value<\/strong>\n
- reflects the perceived tangible and intangible benefits and costs to customers<\/li>
- a central marketing concept; Marketing can be seen as the identification, creation, communication, delivery, and monitoring of customer value<\/li>
- \u201ccustomer value triad\u201d \u2013 (qsp) value can be seen a primarily a combination of quality, service, and price<\/li><\/ol>\n<\/li>
- Satisfaction<\/strong> \u2013 person\u2019s comparative judgments resulting from a product\u2019s perceived performance in relation to his expectations.<\/li><\/ul>\n\n\n\n
3 KINDS OF MARKETING CHANNELS:<\/strong><\/p>\n\n\n\n- Communication channels<\/strong> deliver and receive messages from target buyers<\/li>
- Distribution channels<\/strong> \u2013 used to display, sell, or deliver the physical product or service(s) to buyer or user.<\/li>
- Service channels<\/strong> – used to carry out transactions with potential buyers<\/li><\/ol>\n\n\n\n
SUPPLY CHAIN<\/strong><\/p>\n\n\n\n- Stretching from raw materials to components to final products that are carried to final buyers<\/li>
- Represents a value delivery system<\/li><\/ul>\n\n\n\n
COMPETITION<\/strong><\/p>\n\n\n\n- Includes all the actual and potential rival offerings and substitutes that a buyer might consider<\/li><\/ul>\n\n\n\n
MARKETING ENVIRONMENT<\/strong><\/p>\n\n\n\n- Task environment<\/strong> \u2013 includes the immediate actors involved in producing, distributing, and promoting the offering\n
- Company, suppliers, distributors, dealers, and target customers<\/li><\/ul>\n<\/li>
- Broad environment<\/strong> consist of six components:<\/li><\/ul>\n\n\n\n
- Demographic environment<\/li>
- Economic environment<\/li>
- Physical environment<\/li>
- Technological environment<\/li>
- Political-legal environment<\/li>
- Social-cultural environment<\/li><\/ol>\n\n\n\n
Factors Influencing Company Marketing Strategy<\/em><\/p>\n\n\n\n![\"Factors](\"https:\/\/rmnisperos.com\/wp-content\/uploads\/2016\/06\/MARKET-PLANNING.jpg\" "\\"\\"")
<\/a><\/figure><\/div>\n\n\n\nMARKET PLANNING<\/strong> \u2013 consists of:<\/p>\n\n\n\n- analyzing marketing opportunities;<\/li>
- selecting target markets;<\/li>
- designing marketing strategies;<\/li>
- developing marketing programs; and<\/li>
- managing the marketing effort<\/li><\/ul>\n\n\n\n
14 Shifts in Marketing Management<\/strong><\/p>\n\n\n\nFROM<\/strong><\/td>TO<\/strong><\/td><\/tr>1. Marketing does the marketing<\/td> Everyone Does the Marketing<\/td><\/tr> 2. Organizing by product units<\/td> Organizing by customer segments<\/td><\/tr> 3. Making everything<\/td> Buying more goods and services from outside<\/td><\/tr> 4. Using many suppliers<\/td> Working with fewer suppliers in a \u201cpartnership\u201d<\/td><\/tr> 5. Relying on old market positions<\/td> Uncovering new ones<\/td><\/tr> 6. Emphasizing tangible assets<\/td> Emphasizing intangible assts<\/td><\/tr> 7. Building brands through ads<\/td> Building brands through performance and integrated communications<\/td><\/tr> 8. Attracting customers through stores and salespeople<\/td> Making products available online<\/td><\/tr> 9. Selling to everyone<\/td> Trying to be the best firm serving well-defined target markets<\/td><\/tr> 10. Focusing on profitable transactions<\/td> Focusing on customer lifetime value<\/td><\/tr> 11. Focus on gaining market share<\/td> Focus on building customer share<\/td><\/tr> 12. Being local<\/td> Being \u201cglocal\u201d – both global and local<\/td><\/tr> 13. Focusing on the financial scorecard<\/td> Focusing on the marketing scorecard<\/td><\/tr> 14. Focusing on shareholders<\/td> Focusing on stakeholders<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nMarketing Management Tasks<\/strong><\/p>\n\n\n\n- Developing marketing strategies and plans<\/li>
- Capturing marketing insights<\/li>
- Connecting with customers<\/li>
- Building strong brands<\/li>
- Shaping the market offerings<\/li>
- Delivering value<\/li>
- Communicating value<\/li>
- Creating long-term growth<\/li><\/ol>\n\n\n\n
Table of Contents<\/a><\/p>\n\n\n\n
\n\n\n\nDeveloping Marketing Strategies and Plans<\/h3>\n\n\n\n
What is Marketing?<\/strong><\/h4>\n\n\n\nIt deals with identifying and meeting human and social needs or \u201cmeeting needs profitably\u201d. It 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. Marketing consists of actions undertaken to elicit desired responses from a target audience.<\/p>\n\n\n\n
What is Marketing Management?<\/strong><\/h4>\n\n\n\nIs the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value or the \u201cthe art of selling products\u201d. Peter Drucker said , \u201cIdeally, marketing should result in a customer who is ready to buy.\u201d<\/p>\n\n\n\n
Marketing management involves these two important aspects:<\/p>\n\n\n\n
- Exchange \u2013 the core of marketing; the process of obtaining the desired product form someone by offering something in return<\/li>
- Transaction \u2013 is a trade of values between two or more parties<\/li><\/ul>\n\n\n\n
What is Marketed?<\/strong><\/h3>\n\n\n\n- Goods<\/li>
- Services (i.e. airlines, hotels, car rental, barbers\u2026)<\/li>
- Events (concerts, trade shows)<\/li>
- Experiences (Disney World, customized experiences)<\/li>
- Persons (celebrity marketing)<\/li>
- Places (cities, tourist attractions)<\/li>
- Properties (real estate or financial property \u2013 stocks and bonds)<\/li>
- Organizations (universities, museums, performing arts orgs, non-profit orgs.)<\/li>
- Information (encyclopedias, magazine)<\/li>
- Ideas (\u201cFriends Don\u2019t Let Friends Drive Drunk)<\/li><\/ul>\n\n\n\n
Who Markets?<\/strong><\/h3>\n\n\n\nMarketers and Prospects<\/h4>\n\n\n\n
\nMarketers are people who seeks a response from another party, called prospects. They are skilled in stimulating demand for a company\u2019s products. Responsible for demand management. Seek to influence the level, timing, and composition of demand to meet the organization\u2019s objectives\n \n \n<\/p>\n\n\n\n
8 Possible Demand States:<\/strong><\/h4>\n\n\n\n- Negative <\/strong>demand<\/strong> – Consumers dislike the product and may even pay a price to avoid it<\/li>
- Nonexistent demand<\/strong> – Consumers may be unaware or uninterested in the product.<\/li>
- Latent demand<\/strong> – Consumers may share a strong need that cannot be satisfied by an existing product.<\/li>
- Declining demand<\/strong> – Consumers begin to buy the product less frequently or not at all.<\/li>
- Irregular demand<\/strong> – Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.<\/li>
- F<\/strong>ull demand<\/strong> – Consumers are adequately buying all products put into the marketplace<\/li>
- Overfull demand<\/strong> – More consumers would like to buy the product than can be satisfied.<\/li>
- Unwholesome demand<\/strong> – Consumers may be attracted to products that have undesirable social consequences.<\/li><\/ol>\n\n\n\n
Markets<\/strong> \u2013 marketers often use the term market to cover various grouping of customers<\/p>\n\n\n\n- Needs markets<\/li>
- Product markets<\/li>
- Demographic markets<\/li>
- Geographic markets<\/li>
- Voter markets<\/li><\/ul>\n\n\n\n
Key Customer Markets<\/strong><\/p>\n\n\n\n- Consumer Markets<\/strong> \u2013 companies selling mass consumer goods and services spend a great deal of time trying to establish a superior brand image\n
- Brand strength depends on developing a superior product and packaging, ensuring its availability, and backing it with engaging communication and reliable service<\/li><\/ol>\n<\/li>
- Business Markets<\/strong> \u2013 companies selling business goods and services often face well-trained and well-informed professional buyers who are skilled in evaluating competitive offerings\n
- Business marketers must demonstrate how their products will help these buyers achieve higher revenue or lower costs<\/li><\/ol>\n<\/li>
- Global Markets<\/strong> – companies selling goods and services in the global marketplace face additional decisions and challenges\n
- Which countries to enter; how to enter each country\u2019 how to adapt their product and service features to each country; how to price in different countries\u2019 how to adapt their communication to fit different cultures<\/li><\/ol>\n<\/li>
- Non-Profit and Governmental Markets<\/li><\/ul>\n\n\n\n
MARKETPLACES, MARKETSPACES, AND METAMARKETS<\/strong><\/p>\n\n\n\n- Marketplace <\/strong>\u2013 physical<\/li>
- Marketspace <\/strong>\u2013 digital<\/li>
- Metamarket <\/strong>\u2013 cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries\n
- (i.e. automobile \u2013 car dealers, financing, insurance, mechanics, spare parts dealers, service shops, auto mags, classified ads, auto sites on internet)<\/li><\/ol>\n<\/li>
- \u201cmarketplace isn\u2019t what it used to be\u201d \/ How business and marketing are changing:<\/strong><\/li><\/ul>\n\n\n\n
\n\na. Changing technology
b. Globalization
c. Deregulation
d. Privatization
e. Customer empowerment
f. Customization
g. Heightened competition
h. Industry convergence
i. Retail transformation (growing power of giant retailers and \u201ccategory killers\u201d)
j. Disintermediation (i.e. in delivery of products and services \u2013 amazon, yahoo, eBay, etrade)\n<\/p>\n\n\n\n
Company Orientations Towards the Marketplace<\/strong><\/p>\n\n\n\n1. The Production Concept<\/strong><\/p>\n\n\n\n- Consumers will prefer products that are widely available and in inexpensive<\/li>
- Managers: to concentrate on achieving high production efficiency, low costs, and mass distribution<\/li><\/ul>\n\n\n\n
2. The Product Concept<\/strong><\/p>\n\n\n\n- Consumers will favor those products that offer the most quality, performance, or innovative features<\/li>
- Managers: focus on making superior products in improving them over time<\/li><\/ul>\n\n\n\n
3. The Selling Concept<\/strong><\/p>\n\n\n\n- Consumers and businesses, if left alone, will ordinarily not buy enough of the organization\u2019s products<\/li>
- Orgs must, therefore, undertake an aggressive selling and promotion efforts<\/li>
- Practice most aggressively with unsought goods: encyclopedias, insurance, funeral plots<\/li><\/ul>\n\n\n\n
4. The Marketing Concept<\/strong><\/p>\n\n\n\n- Instead of product-centered, \u201cmake-and-sell\u201d philosophy,<\/li>
- business shifted to a customer-centered, \u201csense-and-respond\u201d philosophy<\/li>
- Marketing is finding the right products for your customers<\/li>
- Focus on the needs of the buyer<\/li>
- Satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating delivering and finally consuming it<\/li><\/ul>\n\n\n\n
5. The Holistic Marketing Concept<\/strong><\/p>\n\n\n\n- \u201ceverything matters\u201d with marketing \u2013 broad, integrated perspective is often necessary<\/li>
- Four components of Holistic Marketing:<\/em><\/strong><\/li><\/ul>\n\n\n\n<\/a><\/figure><\/div>\n\n\n\n
a. Relationship Marketing<\/strong> \u2013 building mutually satisfying long-term relationships with key parties<\/p>\n\n\n\nb. Integrated Marketing \u2013 <\/strong>devise marketing activities and assemble fully integrated marketing programs to create, communicate, and deliver value for consumers<\/p>\n\n\n\n*marketing activities come in all forms; one ex. Is in terms of marketing mix:<\/p>\n\n\n\n
<\/a><\/figure><\/div>\n\n\n\n*figure below shows the company preparing an offering mix of products and services, and prices, and utilizing a communications mix:<\/p>\n\n\n\n
<\/a><\/figure><\/div>\n\n\n\nc. Internal Marketing<\/strong> – ensuring that everyone in the organization embraces appropriate marketing principles, especially senior management
Must take place on two levels:\n\u2022 Various marketing functions must work together (sales force, advertising, CS, product management, market research)
\u2022 Marketing must be embraced by the other departments; they must also \u201cthink customer\u201d; marketing must be pervasive throughout the company)\n<\/p>\n\n\n\nd. Social responsibility marketing<\/strong> \u2013 understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs<\/p>\n\n\n\nFundamental Marketing Concepts, Trends, and Tasks<\/strong><\/p>\n\n\n\nCore Concepts<\/strong><\/p>\n\n\n\nNEEDS, WANTS, AND DEMANDS<\/strong><\/p>\n\n\n\n- Needs:<\/strong> basic human requirements<\/li>
- Wants:<\/strong> needs become wants when they are directed to specific objects that might satisfy the need<\/li>
- Demands<\/strong>: wants for specific products backed by an ability to pay<\/li>
- Marketers do not create needs: Needs preexist marketers. Marketers, along with other societal factors, influence wants.<\/li>
- \u201cSimply giving customers what they want isn\u2019t enough anymore \u2013 to gain an edge companies must help customers learn what they want.\u201d<\/em><\/li><\/ul>\n\n\n\n
Five types of needs:<\/strong><\/p>\n\n\n\n1.) Stated needs 2)Real needs 3)Unstated needs 4)Delight needs 5)Secret needs<\/p>\n\n\n\n
TARGET MARKETS, POSITIONING, AND SEGMENTATION<\/strong><\/p>\n\n\n\n- A marketer can rarely satisfy everyone in a market\n
- Marketers start by dividing up the market into segments<\/em><\/strong>\n
- Decides which segments present the greatest opportunity \u2013 target markets<\/em><\/strong>\n
- For each chosen target market, firm develops a market offering<\/em>\n
- Offering is positioned<\/em><\/strong> in the minds of the target buyers as delivering some central benefit(s).<\/li><\/ul>\n<\/li><\/ul>\n<\/li><\/ul>\n<\/li><\/ol>\n<\/li><\/ul>\n\n\n\n
OFFERING AND BRANDS<\/strong> (value propositions)<\/p>\n\n\n\n- Offering:<\/strong> can be a combination of products, services, information, and experiences<\/li>
- Brand:<\/strong> an offering from a known source<\/li><\/ul>\n\n\n\n
VALUE AND SATISFACTION<\/strong><\/p>\n\n\n\n- Offering will be successful if it delivers value and satisfaction to the target buyer.<\/li>
- Value<\/strong>\n
- reflects the perceived tangible and intangible benefits and costs to customers<\/li>
- a central marketing concept; Marketing can be seen as the identification, creation, communication, delivery, and monitoring of customer value<\/li>
- \u201ccustomer value triad\u201d \u2013 (qsp) value can be seen a primarily a combination of quality, service, and price<\/li><\/ol>\n<\/li>
- Satisfaction<\/strong> \u2013 person\u2019s comparative judgments resulting from a product\u2019s perceived performance in relation to his expectations.<\/li><\/ul>\n\n\n\n
3 KINDS OF MARKETING CHANNELS:<\/strong><\/p>\n\n\n\n- Communication channels<\/strong> deliver and receive messages from target buyers<\/li>
- Distribution channels<\/strong> \u2013 used to display, sell, or deliver the physical product or service(s) to buyer or user.<\/li>
- Service channels<\/strong> – used to carry out transactions with potential buyers<\/li><\/ol>\n\n\n\n
SUPPLY CHAIN<\/strong><\/p>\n\n\n\n- Stretching from raw materials to components to final products that are carried to final buyers<\/li>
- Represents a value delivery system<\/li><\/ul>\n\n\n\n
COMPETITION<\/strong><\/p>\n\n\n\n- Includes all the actual and potential rival offerings and substitutes that a buyer might consider<\/li><\/ul>\n\n\n\n
MARKETING ENVIRONMENT<\/strong><\/p>\n\n\n\n- Task environment<\/strong> \u2013 includes the immediate actors involved in producing, distributing, and promoting the offering\n
- Company, suppliers, distributors, dealers, and target customers<\/li><\/ul>\n<\/li>
- Broad environment<\/strong> consist of six components:<\/li><\/ul>\n\n\n\n
- Demographic environment<\/li>
- Economic environment<\/li>
- Physical environment<\/li>
- Technological environment<\/li>
- Political-legal environment<\/li>
- Social-cultural environment<\/li><\/ol>\n\n\n\n
Factors Influencing Company Marketing Strategy<\/em><\/p>\n\n\n\n<\/a><\/figure><\/div>\n\n\n\nMARKET PLANNING<\/strong> \u2013 consists of:<\/p>\n\n\n\n- analyzing marketing opportunities;<\/li>
- selecting target markets;<\/li>
- designing marketing strategies;<\/li>
- developing marketing programs; and<\/li>
- managing the marketing effort<\/li><\/ul>\n\n\n\n
14 Shifts in Marketing Management<\/strong><\/p>\n\n\n\nFROM<\/strong><\/td>TO<\/strong><\/td><\/tr>1. Marketing does the marketing<\/td> Everyone Does the Marketing<\/td><\/tr> 2. Organizing by product units<\/td> Organizing by customer segments<\/td><\/tr> 3. Making everything<\/td> Buying more goods and services from outside<\/td><\/tr> 4. Using many suppliers<\/td> Working with fewer suppliers in a \u201cpartnership\u201d<\/td><\/tr> 5. Relying on old market positions<\/td> Uncovering new ones<\/td><\/tr> 6. Emphasizing tangible assets<\/td> Emphasizing intangible assts<\/td><\/tr> 7. Building brands through ads<\/td> Building brands through performance and integrated communications<\/td><\/tr> 8. Attracting customers through stores and salespeople<\/td> Making products available online<\/td><\/tr> 9. Selling to everyone<\/td> Trying to be the best firm serving well-defined target markets<\/td><\/tr> 10. Focusing on profitable transactions<\/td> Focusing on customer lifetime value<\/td><\/tr> 11. Focus on gaining market share<\/td> Focus on building customer share<\/td><\/tr> 12. Being local<\/td> Being \u201cglocal\u201d – both global and local<\/td><\/tr> 13. Focusing on the financial scorecard<\/td> Focusing on the marketing scorecard<\/td><\/tr> 14. Focusing on shareholders<\/td> Focusing on stakeholders<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nMarketing Management Tasks<\/strong><\/p>\n\n\n\n- Developing marketing strategies and plans<\/li>
- Capturing marketing insights<\/li>
- Connecting with customers<\/li>
- Building strong brands<\/li>
- Shaping the market offerings<\/li>
- Delivering value<\/li>
- Communicating value<\/li>
- Creating long-term growth<\/li><\/ol>\n\n\n\n
Table of Contents<\/a><\/p>\n\n\n\n
\n\n\n\nDeveloping Marketing Strategies and Plans<\/h3>\n\n\n\n
Is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value or the \u201cthe art of selling products\u201d. Peter Drucker said , \u201cIdeally, marketing should result in a customer who is ready to buy.\u201d<\/p>\n\n\n\n
Marketing management involves these two important aspects:<\/p>\n\n\n\n
- Exchange \u2013 the core of marketing; the process of obtaining the desired product form someone by offering something in return<\/li>
- Transaction \u2013 is a trade of values between two or more parties<\/li><\/ul>\n\n\n\n
What is Marketed?<\/strong><\/h3>\n\n\n\n
- Goods<\/li>
- Services (i.e. airlines, hotels, car rental, barbers\u2026)<\/li>
- Events (concerts, trade shows)<\/li>
- Experiences (Disney World, customized experiences)<\/li>
- Persons (celebrity marketing)<\/li>
- Places (cities, tourist attractions)<\/li>
- Properties (real estate or financial property \u2013 stocks and bonds)<\/li>
- Organizations (universities, museums, performing arts orgs, non-profit orgs.)<\/li>
- Information (encyclopedias, magazine)<\/li>
- Ideas (\u201cFriends Don\u2019t Let Friends Drive Drunk)<\/li><\/ul>\n\n\n\n
Who Markets?<\/strong><\/h3>\n\n\n\n
Marketers and Prospects<\/h4>\n\n\n\n
\nMarketers are people who seeks a response from another party, called prospects. They are skilled in stimulating demand for a company\u2019s products. Responsible for demand management. Seek to influence the level, timing, and composition of demand to meet the organization\u2019s objectives\n \n \n<\/p>\n\n\n\n
8 Possible Demand States:<\/strong><\/h4>\n\n\n\n
- Negative <\/strong>demand<\/strong> – Consumers dislike the product and may even pay a price to avoid it<\/li>
- Nonexistent demand<\/strong> – Consumers may be unaware or uninterested in the product.<\/li>
- Latent demand<\/strong> – Consumers may share a strong need that cannot be satisfied by an existing product.<\/li>
- Declining demand<\/strong> – Consumers begin to buy the product less frequently or not at all.<\/li>
- Irregular demand<\/strong> – Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.<\/li>
- F<\/strong>ull demand<\/strong> – Consumers are adequately buying all products put into the marketplace<\/li>
- Overfull demand<\/strong> – More consumers would like to buy the product than can be satisfied.<\/li>
- Unwholesome demand<\/strong> – Consumers may be attracted to products that have undesirable social consequences.<\/li><\/ol>\n\n\n\n
Markets<\/strong> \u2013 marketers often use the term market to cover various grouping of customers<\/p>\n\n\n\n
- Needs markets<\/li>
- Product markets<\/li>
- Demographic markets<\/li>
- Geographic markets<\/li>
- Voter markets<\/li><\/ul>\n\n\n\n
Key Customer Markets<\/strong><\/p>\n\n\n\n
- Consumer Markets<\/strong> \u2013 companies selling mass consumer goods and services spend a great deal of time trying to establish a superior brand image\n
- Brand strength depends on developing a superior product and packaging, ensuring its availability, and backing it with engaging communication and reliable service<\/li><\/ol>\n<\/li>
- Business Markets<\/strong> \u2013 companies selling business goods and services often face well-trained and well-informed professional buyers who are skilled in evaluating competitive offerings\n
- Business marketers must demonstrate how their products will help these buyers achieve higher revenue or lower costs<\/li><\/ol>\n<\/li>
- Global Markets<\/strong> – companies selling goods and services in the global marketplace face additional decisions and challenges\n
- Which countries to enter; how to enter each country\u2019 how to adapt their product and service features to each country; how to price in different countries\u2019 how to adapt their communication to fit different cultures<\/li><\/ol>\n<\/li>
- Non-Profit and Governmental Markets<\/li><\/ul>\n\n\n\n
MARKETPLACES, MARKETSPACES, AND METAMARKETS<\/strong><\/p>\n\n\n\n
- Marketplace <\/strong>\u2013 physical<\/li>
- Marketspace <\/strong>\u2013 digital<\/li>
- Metamarket <\/strong>\u2013 cluster of complementary products and services that are closely related in the minds of consumers but are spread across a diverse set of industries\n
- (i.e. automobile \u2013 car dealers, financing, insurance, mechanics, spare parts dealers, service shops, auto mags, classified ads, auto sites on internet)<\/li><\/ol>\n<\/li>
- \u201cmarketplace isn\u2019t what it used to be\u201d \/ How business and marketing are changing:<\/strong><\/li><\/ul>\n\n\n\n
\n\na. Changing technology
b. Globalization
c. Deregulation
d. Privatization
e. Customer empowerment
f. Customization
g. Heightened competition
h. Industry convergence
i. Retail transformation (growing power of giant retailers and \u201ccategory killers\u201d)
j. Disintermediation (i.e. in delivery of products and services \u2013 amazon, yahoo, eBay, etrade)\n<\/p>\n\n\n\nCompany Orientations Towards the Marketplace<\/strong><\/p>\n\n\n\n
1. The Production Concept<\/strong><\/p>\n\n\n\n
- Consumers will prefer products that are widely available and in inexpensive<\/li>
- Managers: to concentrate on achieving high production efficiency, low costs, and mass distribution<\/li><\/ul>\n\n\n\n
2. The Product Concept<\/strong><\/p>\n\n\n\n
- Consumers will favor those products that offer the most quality, performance, or innovative features<\/li>
- Managers: focus on making superior products in improving them over time<\/li><\/ul>\n\n\n\n
3. The Selling Concept<\/strong><\/p>\n\n\n\n
- Consumers and businesses, if left alone, will ordinarily not buy enough of the organization\u2019s products<\/li>
- Orgs must, therefore, undertake an aggressive selling and promotion efforts<\/li>
- Practice most aggressively with unsought goods: encyclopedias, insurance, funeral plots<\/li><\/ul>\n\n\n\n
4. The Marketing Concept<\/strong><\/p>\n\n\n\n
- Instead of product-centered, \u201cmake-and-sell\u201d philosophy,<\/li>
- business shifted to a customer-centered, \u201csense-and-respond\u201d philosophy<\/li>
- Marketing is finding the right products for your customers<\/li>
- Focus on the needs of the buyer<\/li>
- Satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating delivering and finally consuming it<\/li><\/ul>\n\n\n\n
5. The Holistic Marketing Concept<\/strong><\/p>\n\n\n\n
- \u201ceverything matters\u201d with marketing \u2013 broad, integrated perspective is often necessary<\/li>
- Four components of Holistic Marketing:<\/em><\/strong><\/li><\/ul>\n\n\n\n<\/a><\/figure><\/div>\n\n\n\n
a. Relationship Marketing<\/strong> \u2013 building mutually satisfying long-term relationships with key parties<\/p>\n\n\n\n
b. Integrated Marketing \u2013 <\/strong>devise marketing activities and assemble fully integrated marketing programs to create, communicate, and deliver value for consumers<\/p>\n\n\n\n
*marketing activities come in all forms; one ex. Is in terms of marketing mix:<\/p>\n\n\n\n
<\/a><\/figure><\/div>\n\n\n\n*figure below shows the company preparing an offering mix of products and services, and prices, and utilizing a communications mix:<\/p>\n\n\n\n
<\/a><\/figure><\/div>\n\n\n\nc. Internal Marketing<\/strong> – ensuring that everyone in the organization embraces appropriate marketing principles, especially senior management
Must take place on two levels:\n\u2022 Various marketing functions must work together (sales force, advertising, CS, product management, market research)
\u2022 Marketing must be embraced by the other departments; they must also \u201cthink customer\u201d; marketing must be pervasive throughout the company)\n<\/p>\n\n\n\nd. Social responsibility marketing<\/strong> \u2013 understanding broader concerns and the ethical, environmental, legal, and social context of marketing activities and programs<\/p>\n\n\n\n
Fundamental Marketing Concepts, Trends, and Tasks<\/strong><\/p>\n\n\n\n
Core Concepts<\/strong><\/p>\n\n\n\n
NEEDS, WANTS, AND DEMANDS<\/strong><\/p>\n\n\n\n
- Needs:<\/strong> basic human requirements<\/li>
- Wants:<\/strong> needs become wants when they are directed to specific objects that might satisfy the need<\/li>
- Demands<\/strong>: wants for specific products backed by an ability to pay<\/li>
- Marketers do not create needs: Needs preexist marketers. Marketers, along with other societal factors, influence wants.<\/li>
- \u201cSimply giving customers what they want isn\u2019t enough anymore \u2013 to gain an edge companies must help customers learn what they want.\u201d<\/em><\/li><\/ul>\n\n\n\n
Five types of needs:<\/strong><\/p>\n\n\n\n
1.) Stated needs 2)Real needs 3)Unstated needs 4)Delight needs 5)Secret needs<\/p>\n\n\n\n
TARGET MARKETS, POSITIONING, AND SEGMENTATION<\/strong><\/p>\n\n\n\n
- A marketer can rarely satisfy everyone in a market\n
- Marketers start by dividing up the market into segments<\/em><\/strong>\n
- Decides which segments present the greatest opportunity \u2013 target markets<\/em><\/strong>\n
- For each chosen target market, firm develops a market offering<\/em>\n
- Offering is positioned<\/em><\/strong> in the minds of the target buyers as delivering some central benefit(s).<\/li><\/ul>\n<\/li><\/ul>\n<\/li><\/ul>\n<\/li><\/ol>\n<\/li><\/ul>\n\n\n\n
OFFERING AND BRANDS<\/strong> (value propositions)<\/p>\n\n\n\n
- Offering:<\/strong> can be a combination of products, services, information, and experiences<\/li>
- Brand:<\/strong> an offering from a known source<\/li><\/ul>\n\n\n\n
VALUE AND SATISFACTION<\/strong><\/p>\n\n\n\n
- Offering will be successful if it delivers value and satisfaction to the target buyer.<\/li>
- Value<\/strong>\n
- reflects the perceived tangible and intangible benefits and costs to customers<\/li>
- a central marketing concept; Marketing can be seen as the identification, creation, communication, delivery, and monitoring of customer value<\/li>
- \u201ccustomer value triad\u201d \u2013 (qsp) value can be seen a primarily a combination of quality, service, and price<\/li><\/ol>\n<\/li>
- Satisfaction<\/strong> \u2013 person\u2019s comparative judgments resulting from a product\u2019s perceived performance in relation to his expectations.<\/li><\/ul>\n\n\n\n
3 KINDS OF MARKETING CHANNELS:<\/strong><\/p>\n\n\n\n
- Communication channels<\/strong> deliver and receive messages from target buyers<\/li>
- Distribution channels<\/strong> \u2013 used to display, sell, or deliver the physical product or service(s) to buyer or user.<\/li>
- Service channels<\/strong> – used to carry out transactions with potential buyers<\/li><\/ol>\n\n\n\n
SUPPLY CHAIN<\/strong><\/p>\n\n\n\n
- Stretching from raw materials to components to final products that are carried to final buyers<\/li>
- Represents a value delivery system<\/li><\/ul>\n\n\n\n
COMPETITION<\/strong><\/p>\n\n\n\n
- Includes all the actual and potential rival offerings and substitutes that a buyer might consider<\/li><\/ul>\n\n\n\n
MARKETING ENVIRONMENT<\/strong><\/p>\n\n\n\n
- Task environment<\/strong> \u2013 includes the immediate actors involved in producing, distributing, and promoting the offering\n
- Company, suppliers, distributors, dealers, and target customers<\/li><\/ul>\n<\/li>
- Broad environment<\/strong> consist of six components:<\/li><\/ul>\n\n\n\n
- Demographic environment<\/li>
- Economic environment<\/li>
- Physical environment<\/li>
- Technological environment<\/li>
- Political-legal environment<\/li>
- Social-cultural environment<\/li><\/ol>\n\n\n\n
Factors Influencing Company Marketing Strategy<\/em><\/p>\n\n\n\n
<\/a><\/figure><\/div>\n\n\n\nMARKET PLANNING<\/strong> \u2013 consists of:<\/p>\n\n\n\n
- analyzing marketing opportunities;<\/li>
- selecting target markets;<\/li>
- designing marketing strategies;<\/li>
- developing marketing programs; and<\/li>
- managing the marketing effort<\/li><\/ul>\n\n\n\n
14 Shifts in Marketing Management<\/strong><\/p>\n\n\n\n
FROM<\/strong><\/td> TO<\/strong><\/td><\/tr> 1. Marketing does the marketing<\/td> Everyone Does the Marketing<\/td><\/tr> 2. Organizing by product units<\/td> Organizing by customer segments<\/td><\/tr> 3. Making everything<\/td> Buying more goods and services from outside<\/td><\/tr> 4. Using many suppliers<\/td> Working with fewer suppliers in a \u201cpartnership\u201d<\/td><\/tr> 5. Relying on old market positions<\/td> Uncovering new ones<\/td><\/tr> 6. Emphasizing tangible assets<\/td> Emphasizing intangible assts<\/td><\/tr> 7. Building brands through ads<\/td> Building brands through performance and integrated communications<\/td><\/tr> 8. Attracting customers through stores and salespeople<\/td> Making products available online<\/td><\/tr> 9. Selling to everyone<\/td> Trying to be the best firm serving well-defined target markets<\/td><\/tr> 10. Focusing on profitable transactions<\/td> Focusing on customer lifetime value<\/td><\/tr> 11. Focus on gaining market share<\/td> Focus on building customer share<\/td><\/tr> 12. Being local<\/td> Being \u201cglocal\u201d – both global and local<\/td><\/tr> 13. Focusing on the financial scorecard<\/td> Focusing on the marketing scorecard<\/td><\/tr> 14. Focusing on shareholders<\/td> Focusing on stakeholders<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Marketing Management Tasks<\/strong><\/p>\n\n\n\n
- Developing marketing strategies and plans<\/li>
- Capturing marketing insights<\/li>
- Connecting with customers<\/li>
- Building strong brands<\/li>
- Shaping the market offerings<\/li>
- Delivering value<\/li>
- Communicating value<\/li>
- Creating long-term growth<\/li><\/ol>\n\n\n\n
Table of Contents<\/a><\/p>\n\n\n\n
\n\n\n\nDeveloping Marketing Strategies and Plans<\/h3>\n\n\n\n
- Task environment<\/strong> \u2013 includes the immediate actors involved in producing, distributing, and promoting the offering\n
- Includes all the actual and potential rival offerings and substitutes that a buyer might consider<\/li><\/ul>\n\n\n\n
- Distribution channels<\/strong> \u2013 used to display, sell, or deliver the physical product or service(s) to buyer or user.<\/li>
- Communication channels<\/strong> deliver and receive messages from target buyers<\/li>
- Brand:<\/strong> an offering from a known source<\/li><\/ul>\n\n\n\n
- Offering:<\/strong> can be a combination of products, services, information, and experiences<\/li>
- Offering is positioned<\/em><\/strong> in the minds of the target buyers as delivering some central benefit(s).<\/li><\/ul>\n<\/li><\/ul>\n<\/li><\/ul>\n<\/li><\/ol>\n<\/li><\/ul>\n\n\n\n
- For each chosen target market, firm develops a market offering<\/em>\n
- Decides which segments present the greatest opportunity \u2013 target markets<\/em><\/strong>\n
- Marketers start by dividing up the market into segments<\/em><\/strong>\n
- Wants:<\/strong> needs become wants when they are directed to specific objects that might satisfy the need<\/li>
- Needs:<\/strong> basic human requirements<\/li>
- Marketspace <\/strong>\u2013 digital<\/li>
- Marketplace <\/strong>\u2013 physical<\/li>
- Consumer Markets<\/strong> \u2013 companies selling mass consumer goods and services spend a great deal of time trying to establish a superior brand image\n
- Nonexistent demand<\/strong> – Consumers may be unaware or uninterested in the product.<\/li>
- Negative <\/strong>demand<\/strong> – Consumers dislike the product and may even pay a price to avoid it<\/li>
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<\/a><\/figure><\/div>\n\n\n\n