chapter 17-18 marketing

Chapter 17

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Direct and digital marketing

Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

Benefits of Direct and Digital Marketing For Buyers

* Convenient, easy and private
* Interaction with sellers
* Brand engagement and community

Benefits of Direct and Digital Marketing For Sellers

* Low-cost, efficient, speedy alternative for reaching markets
* Targets small groups of individual customers
* Greater flexibility
* Personalized products and services
* Builds customer engagement, community and personalized relationships

Omni-channel retailing

creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping

Online Marketing

Marketing via the Internet using company Web sites, online ads and promotions, e-mail, online video, and blogs.

Online marketing tools:

Marketing websites

Branded community websites

Online advertising

Email marketing

Online videos

Blogs

Spam

unsolicited, unwanted commercial email messages

Viral marketing

Digital marketing content that is so infectious that customers will seek it out or pass it along to friends.

Social media

Independent and commercial online social networks where people congregate to socialize and share messages, opinions, pictures, videos, and other content

Social media marketing advantages

* Targeted and personal
* Interactive
* Immediate and timely
* Real time marketing
* Cost-effective
* Engagement and social sharing capabilities

Direct-mail marketing

Involves an offer, announcement, reminder, or other item to a person at a particular address

Catalog marketing

Involves printed and web-based catalogs

Telemarketing

Involves using the telephone to sell directly to consumers and business customers

Kiosk marketing

Many companies are placing information and ordering machines in stores, airports, hotels, college campuses, and other locations

Chapter 18

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Competitive advantages

Require delivering more value and satisfaction to target consumers than competitors

Competitor Analysis

* Step 1) Competitor analysis is the process of identifying, assessing, and selecting key competitors
* Step 2) Competitive marketing strategies are how companies analyze their competitors and develop value-based strategies for profitable customer relationships

Michael Porter's basic competitive strategies

* Overall cost leadership Lowest production and distribution costs
* Differentiation - highly differentiated product line and marketing program
* Focus - serving a few market segments well rather than going after the whole market

Marketing strategy and practice often pass through three stages:

* Entrepreneurial marketing - individuals who live by their wits
* Formulated marketing - small companies move toward more-formulated marketing and develop formal marketing strategies
* Intrapreneurial marketing - encouraging employees to be more entrepreneurial within the larger corporation

Operational excellence

Provide superior value by leading the industry in price and convenience

Customer intimacy

Provide superior value by precisely segmenting markets and tailoring products or services to exactly match the needs of targeted customers

Product leadership

Provide superior value by offering a continuous stream of leading-edge products or services

Competitive positions

* Market leader - largest market share
* Market challenger - runner-up who is fighting for market share
* Market follower - runner-up who wants to hold market share and not rock the boat
* Market nicher - serves small segments not being pursued by other firms

Competitor-centered company

One that spends most of its time tracking competitors' moves and market shares and trying to find strategies to counter them

Customer-centered company

Focuses more on customer developments in designing its strategies

Market-centered company

Spends most of its time focusing on both competitor and customer developments in designing strategies