chapter 1 marketing management 📚

What are some marketing misconceptions?

1. Marketing is all about advertising

2. Marketing is all about selling

3. Marketing is all fluff and no substance

4. Marketing is inherently, unethical, and harmful to society

5. Only marketers market

6. Marketing is just another cost center in a firm

Marketing management

Is a core business activity

is a central function and set of processes essential to any enterprise

Marketing

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 stakeholders

They can be internal and external

Societal marketing views members of a society at large

Green marketing

Environmentally friendly

Meaning needs without harming future generations

Think, Starbucks

Societal marketing

Purpose driven, or prosocial market

Engages customers in a meaningful and long lasting way

Tom’s

Value

Is the ratio of the bundle of benefits a customer sees from an offering compared to the cost incurred by the customer in acquiring that bundle the Benefits

exchange

Occurs when people give up something value to them for something else they desire to have

Conditions for exchange

1. There must be at least two parties

2. Each party has something that might be a value to one another

3. Each party is capable of communication and delivery

4. Each party is free to accept or reject the exchange offer

5. Each party believes it’s appropriate or desirable to deal with the other party

AMA’s 7 big problems

• effectively targeting high value sources of growth

• Defining the role of marketing in the firms and C suite

• Managing the digital transformation of modern corporation

• Generating and using insight to shape marketing practice

• Dealing with an Omni channel world

• Competing in dynamic global markets

• Balancing incremental and radical innovation

marketing’s roots and evolution

Pre-industrial revolution

Focus on production and products

Focus on selling

Advent of the marketing concept

Post marketing concept approaches

pre-industrial revolution

Products for custom

One-to-one marketing

firms with this mindset will have difficulty competing successfully for customers

if you build it, they will come

The four P’s

product, place, price, promotion

post marketing concept approaches

Differentiation orientation

Market orientation

Relationship or orientation

One-to-one marketing

differentiation orientation

Attempts to clearly communicate how the firms products differ from competitors and the minds of customers

• Multiple media channels enable the marketer to target very specific customer groups

Market orientation

Is the implementation of the market concept?

• Includes customer centric orientation: the customer is at the core of all aspects of the enterprise

• Investment and customers is long-term, organization wide

Relationship orientation

• focuses on customer retention

• CRM drives customer satisfaction and loyalty

One-to-one marketing

• advocates a learning relationship so that the firm can offer customize products and services

• Mass customization, combines flexible in manufacturing with flexible, marketing to enhance customer choices

Product glut

A state where the supply of a product in market greatly exceeds the demand for leading to excess inventory, lower prices in potential economic challenges

Marketing (Big M)

Strategic marketing, means a long-term, firm level commitment to investing in marketing, supported at the highest organization level for the purpose of enhancing organizational performance

Market creation- approaches that drive the market towards fulfilling a whole new set of needs that customers did not realize as possible or feasible before

Marketing (little m)

Tactical marketing- which serves the firm and its stakeholders at a functional or operational level

Marketing metrics

Our tools and processes designed to identify track and evaluate and provide key benchmarks for the improvement of marketing activities

Marketing analytics

Is the practice of measuring managing and analyzing marketing performance to maximize marketing effectiveness and optimize return on marketing investments?