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Marketing

It is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing management

It is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Marketing

It is a societal process by which individuals and groups obtain what they need and want

through creating, offering, and freely exchanging products and services of value with others.

Goods, services, events, experiences, persons, places, properties, organizations, informations, and ideas.

What is marketed?

Marketer

It is someone who seeks a response—attention, a purchase, a vote, a donation—from another party, called the prospect.

Negative, nonexistent, latent, declining, irregular, full, overfull, unwholesome

What are the 8 demand states?

Negative demand

Consumers dislike the product and may even pay to avoid it.

Nonexistent demand

Consumers may be unaware of or uninterested in the product.

Latent demand

Consumers may share a strong need that cannot be satisfied by an existing

product.

Declining demand

Consumers begin to buy the product less frequently or not at all.

Irregular demand

Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.

Full demand

Consumers are adequately buying all products put into the marketplace.

Overfull demand

More consumers would like to buy the product than can be satisfied.

Unwholesome demand

Consumers may be attracted to products that have undesirable social consequences.

Market

It is a physical place where buyers and sellers gathered to buy and sell goods. It is a collection of buyers and sellers who transact over a particular product or product class.

Manufacturer market, resource market, intermediary market, consumer market, government market

What are the five basic markets?

Consumer market, business market, global market, nonprofit and governmental market

What are the key customer markets?

needs, wants, and demands

Target market, positioning, and segmentation

Offerings and brands

Value and satisfaction

Marketing channels

Supply chain

Competition

Marketing environment

What are the core marketing concepts?

Demands

These are wants for specific products backed by an ability to pay.

Stated needs

Real needs

Unstated needs

Delight needs

Secret needs

What are the five types of needs?

Value proposition

It is a set of benefits that satisfy those needs.

Brand

It is an offering from a known source.

Value

It is primarily a combination of quality, service, and price

Customer value triad

Quality, service, and price

Satisfaction

It reflects a person’s judgment of a product’s perceived performance in relationship to expectations.

Communication channel, distribution channel, service channel

What are the marketing channels?

Supply chain

It is a longer channel stretching from raw materials to components to finished products carried to final buyers

Task environment and broad environment

What are the marketing environments?

Task environment

This includes the actors engaged in producing, distributing, and promoting the offering.

These are the company, suppliers, distributors, dealers, and target customers.

demographic environment, economic environment, social-cultural environment, natural environment, technological environment, and political-legal environment.

What are the 6 components of broad environment?

Production concept

It is one of the oldest concepts in business. It holds that consumers prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution.

Product concept

It proposes that consumers favor products offering the most quality, performance, or innovative features.

Selling concept

It holds that consumers and businesses, if left alone, won’t buy enough of the organization’s products.

Marketing concept

The job is to find not the right customers for your products, but the right products for your customers.

Holistic marketing concept

It is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.

Developing marketing strategies and plans, capturing marketing insights, connecting with customers, building strong brands, shaping the market offerings, delivering value, communicating value, creating successful long-term growth

What are the marketing management tasks?

Product, price, place, promotion

What are the old 4P’s?

People, processes, programs, performance

What are the new 4P’s?

Marketing network

The ultimate outcome of relationship marketing

Network information technology

Globalization

Deregulation

Privatization

Heightened competition

Industry convergence

Retailed transformation

Disintermediation

Consumer buying power

Consumer information

Consumer participation

Consumer resistance

What are the major societal factors?

Marketers can use the Internet as a powerful information and sales channel.

Marketers can collect fuller and richer information about markets, customers, prospects, and competitors.

Marketers can tap into social media to amplify their brand message.

Marketers can facilitate and speed external communication among customers.

Marketers can send ads, coupons, samples, and information to customers who have requested them or given the company permission to send them.

Marketers can reach consumers on the move with mobile marketing.

Companies can make and sell individually differentiated goods.

Companies can improve purchasing, recruiting, training, and internal and external communications.

Companies can facilitate and speed up internal communication among their employees by using the Internet as a private intranet.

Companies can improve their cost efficiency by skillful use of the Internet.

What are the new companies capabilities?

Touch point

It is a tern where a customer directly or indirectly interacts with the company in some form.

Relationship marketing

It aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business.

Customers, employees, marketing partners, and members of the financial community

What are the Four key constituents for relationship marketing?

Integrated marketing

It occurs when the marketer devises marketing activities and assembles marketing programs to create, communicate, and deliver value for consumers such that “the whole is greater than the sum of its parts.”

Internal marketing

It is an element of holistic marketing, is the task of hiring, training, and motivating able employees who want to serve customers well.

Performance marketing

It requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs.

Value delivery approach

It is the traditional view of marketing that the firm makes something and then sells it, with marketing taking place in the selling process. This traditional view will not work, however, in economies with many different types of people, each with individual wants, perceptions, preferences, and buying criteria. Instead of emphasizing making and selling, companies now see themselves as part of a value delivery process.

Choosing, providing, and communicating the value

What are the 3 phases of the value delivery approach?

Choosing the value

Marketers must segment the market, select the appropriate target, and develop the offering’s value positioning.

Providing the value

Marketing must determine specific product features, prices, and distribution.

Communicating the value

By utilizing the sales force, internet, advertising, and any other communication tools to announce and promote the product.

Harvard’s Michael Porter

He has proposed the value chain as a tool for identifying ways to create more customer value. According to this model, every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product.

Inbound Logistics

Operations

Outbound Logistics

Marketing

Service

What are the 5 primary activities?

Procurement, Technology Development, Human Resource Management, Firm Infrastructure

What are the 4 support activities?

Market-sensing process, new-offering realization process, customer acquisition process, customer relationship management process, and fulfillment management process

What are the core business processes?

Margin

It is the difference between the total value created/delivered and the costs of performing value-chain activities.

Core competencies

It is a source of competitive advantage and makes a significant contribution to perceived customer benefits. It has applications in a wide variety of markets. It is difficult for competitors to imitate.

Redefine the business concept

Reshape the business scope

Reposition the brand identity

What are the 3 steps in business realignment?

Holistic marketing

It is integrating the value exploration, value creation, and value delivery activities with the purpose of building long-term, mutually satisfying relationships and coprosperity among key stakeholders.

Value exploration

It is how a company identifies new value opportunities

Value creation

It is how a company efficiently creates more promising new value offerings

Value delivery

It is how a company uses its capabilities and infrastructure to deliver the new value offerings more efficiently

Businesses as investment portfolio, assessing each business’s strength, and establish a strategy

What are the three key areas of Strategic Planning?

Market-Sensing Process

All the activities in gathering and acting upon information about the market

New-Offering Realization Process

All the activities in researching, developing, and launching new high-quality offerings quickly and within budget

Customer Acquisition Process

All the activities in defining target markets and prospecting for new customers

Customer Relationship Management Process

All the activities in building deeper understanding, relationships, and offerings to individual customers

Fulfillment Management Process

All the activities in receiving and approving orders, shipping the goods on time, and collecting payment

Corporate Level, Division Level, Business Unit Level, Product Level

What are the FOUR ORGANIZATIONAL LEVELS OF STRATEGIC PLANNING?

Corporate headquarters

It is responsible for designing a corporate strategic plan to guide the whole enterprise; it makes decisions on the amount of resources to allocate to each division, as well as on which businesses to start or eliminate.

Marketing plan

It is the central instrument for directing and coordinating the marketing effort.

Strategic and tactical marketing plan

What are the 2 Levels of a Marketing Plan?

Strategic marketing plan

It lays out the target markets and the firm’s value proposition, based on an analysis of the best market opportunities.

Tactical marketing plan

It specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service.

Define corporate mission, establish SBU’s, assign resources to SBU’s, and assess growth opportunities

What are the corporate strategic planning?

Mission statement

It is a concise statement of what an organization is, whom it serves, the value it provides, and the broad direction it will pursue. It explains the organization’s fundamental purpose.

What is our business?

Who is our customer?

What is the value to the customer?

What will our business be?

What should our business be?

What are Peter Drucker’s classic questions that helps define a company’s mission?

Limited number of goals, stresses the company’s major policies and values, define the major competitive spheres, takes a long-term view, short, memorable, and meaningful

What are the characteristics of a good mission statement?

Strategic business unit

a single business or group of related businesses that has its own competitors and a responsible leader for planning and profitability.

• Industry

• Products and applications

• Competence

• Market segment

• Vertical scope

• Geographical scope

A mission statement can define the company’s territory through:

Customer Groups

Customer Need

Technology

THREE DIMENSIONS OF A BUSINESS

Target market

It tends to focus on selling a product or service to a current market.

strategic market

It focuses on the potential market

GE/McKinsley matrix

This matrix classifies each SBU by the extent of its competitive advantage and the attractiveness of its industry. Management can decide to grow,“harvest”or draw cash from, or hold on to the business.

BCG’s growth-share matrix

This matrix uses relative market share and annual rate of market growth as criteria to make investment decisions.

Stars

High growth, high relative share. Often need investment to sustain growth

cash cows

Low growth, high relative share. Often generate cash that can support other units

question marks

High growth, low relative share. Require decisions about investment and competitive position

dogs

Low growth, low relative share. May require harvest, repositioning, or exit decisions depending on strategy.

Strategic-planning gap

the gap between where the organization is projected to be and where it wants/needs to be, prompting search for growth opportunities.

Integrative growth

growth achieved by moving into other stages or positions in the value chain, such as supplier, distributor, or competitor relationships

Diversification growth

growth through a new opportunity involving a new product-market combination outside the current business scope

Market penetration

current product, current market

market development

current product, new market

product development

new product, current market

diversification

new product, new market

Corporate culture

It is defined as “the shared experiences, stories, beliefs, and norms that characterize an organization

environmental threat

It is a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit.

Marketing opportunity

It is an area of buyer need and interest that a company has a high probability of profitably satisfying