2 Management

marketing management

the process of developing and maintaining a fit between the organization’s strengths and the market’s changing opportunities

internal marketing strengths

product quality, brand reputation, cost efficiency, supply chain alliance, production capacity, and patent production

external marketing opportunities

competitive intensity, market size, market growth rate, demand variability, economic stability, and industry profitability

mission statement factors

marketing objectives, environmental assessment, product/market assessment, and marketing strategy

mission statement

defines what business the company is to understand who they are, setting boundaries for operations and focusing on satisfying basic customer needs in a market-oriented way.

marketing myopia

industries focusing on a product and technology and not the market need

marketing objectives

corporate for ROI, and marketing for product category and brand

environmental assessment

micro and macroenvironment

microenvironment

3C’s, company, customer and competitor; cooperative w suppliers, distributors, and partners — what does the company do well?

macroenvironment

political, technological, economic, and environmental; all for society’s public interest and social responsibility — what is going on that could impact the company?

supply-based competition

limited service restaurants, restaurants and coffee association categories

demand-based competition

brand competition, product competition, and total budget competition. these are all customer needs

brand competition

competing products w similar features and benefits

product competition

competing products in the same product class but different features/benefits

total budget competition

competing for income across different product classes

what are indicators of market buying power?

GDP, foreign exchange rates, business cycles, and consumer confidence

political/legal forces

environmental regulation and economic regulation

self regulation

standards and ethics guides for companies to perform their duty that’s agreed upon

social/cultural

demographics and social issues like values and beliefs, which can impact what companies do in the marketplace

technological

like access to information and privacy

value proposition

a concise statement that summarizes the target market, the product, competitors and how they’re better than them. this is valuable once there’s better insight to competitors for the marketing management process

product/market assessment

a formal framework for identifying and framing organizational growth opportunities

market penetration

increasing market share in an existing market, which uses lower prices, expands distribution, improves quality, and uses head-to-head promotion to stimulation product adoption for customers

market development

introducing an existing product to a currently unserved market, using minor modification of existing products, alternate distribution outlets, and switching promotions

product development

creating a new offering in an existing market through developing leverage for brand equity, and developing a significant point of difference. look at the strategies that highlight something different a company is offering

diversification

develops new product offers in market not being served by the organization, through line or brand extensions and alternative distribution channels; known as risky

ansoff’s strategic opportunity matrix

market penetration, market development, product development, and diversification

what are the four P’s + one P?

product, price, promotion, and place, to target customers for intended position

what is something to never do in marketing?

to create a marketing strategy that fails to adhere to goals at the company

what results from internal/external interplay?

the result is marketing strategy, which will help us to know what to present, how to determine price, get it to the customer, and how to communicate

what’s the best way to achieve a marketing objective?

we cannot focus on everything, so we must aim for the goals of the corporate level through the brand. this is the key to the marketplace, through awareness, satisfaction, and loyalty

feasibility assessment

consistency/inconsistency between market and organizational capabilities

what does competition set the stage for?

this determines all choices customers have to satisfy needs; so we must understand at a needs level instead of a product level to move forward in marketing

what is the outcome of the research process?

intended positioning; we use our customers for the 4 P’s to position ourselves in the workplace. therefore, we must understand our customers well.