1. Marketing Management

Marketing definition

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.

- Activity such as promotion, institution (company), process (4 Ps).

How is marketing implemented and it´s goal:

- Marketing is implemented to develop a marketing strategy that includes these 4 Ps + a target market.

- The fundamental goal: Deliver value + benefits to customers through communication, distribution and pricing strategies, providing the goods and services they want.

Marketing also involves more things such as:

- Building long-term, mutually rewarding relationships. Understands that organizations have many connected stakeholders partners: various stakeholders such as employees, suppliers and stockholders.

Marketing also includes the concept of exchange, for an exchange to occur followings requirements must be met:

- At least 2 parties involved: Exchange not limited to organizations and customers but can also occur between B2B, B2C, C2C e.g. Airbnb and Uber.

- Something of value must be present: e.g products, services, ideas or information. Price (sometimes) represent value.

- The parties must be capable of communication and delivery

- A desire to deal with the other party must exist: Willingness to buy/support the offering.

- Each party must be free to accept or reject the offer: Without force to buy/support.

Marketing management philosophy purpose:

Those philosophies is guiding and shaping how a company approaches it´s marketing efforts and influences how to create, communicate and deliver value to customers. Help businesses determine their marketing strategies and tactics to achieve their goals.

Types of marketing management philosophy

- Production orientation

- Sales

- Market

- Societal

- Production orientation

o Focus on internal capabilities of the firm: What the firm is capable of producing at it´s best.

o Belief: That the product is excellent and customers will buy it.

o What can we make or do best?

- Sales orientation

o Aggressive sales techniques that believes high sales volume gives high profits e.g. after wartime they encourage aggressive selling and consumption. "How can we sell more aggressively"

o Can lead to selling that doesn´t meet customers needs

- Market orientation (marketing concept)

o Focuses on satisfying customer wants and needs while achieving organizational objectives through integrating all organizational activities.

o Understand what the customers want and strive to fulfill those needs.

o Outward looking

o "What do customers want and need?"

- Societal orientation:

o Not only considers customer wants and needs but also enhancing individual and societal well-being.

o Addresses broad societal issues e.g. poverty and environmental impact of products e.g. how Shein recycle food.

o Sustainable practices e.g. LEGO, Hasbro that achieve positive societal impacts and customer satisfaction.

o "What do customers want/need and how can we benefit society.

Differences between sales and market oriented firms in:

- The organization´s focus:

- The firm´s business:

- Those to whom the product is directed

- The firm´s primary goal

- The tools used to achieve goals

- The organization´s focus - sales:

o Sales oriented firm: Has an inward looking perspective and concentrates on what the firm makes.

The organization´s focus in market firms:

o Has an outward looking perspective and focuses on what the market wants.

§ Understanding customer value: Relationship between the benefits a customer receives and the sacrifice e.g. price and time they make to obtain those benefits.

§ Customer satisfaction: The customer´s evaluation of whether a good or service has met their needs and expectations.

§ Building relationships with the customers.

The firm´s business - sales

Focus on the products and services (what) they offer.

The firm´s business - market oriented firm

o Focus on the benefits for the customers (who).

o Advantages of knowing a firm´s business:

§ Ensure the organization´s focus on customers (rather than on product)

§ Encourage innovation + creativity in satisfying customer needs,

§ Stimulate awareness of changing customer preferences reflected in mission statement.

§ E.g. LEGO´s "To inspire and develop the builders of tomorrow" reflect this benefit oriented approach.

- Those to whom the product is directed:

o Sales oriented firm: Aims its products at the average consumer.

o Market oriented firm: Uses: Market segmentation to targets specific groups of consumers with different unique needs and benefits or features. E.g shampoo.

Customer relationship Management (CRM):

Key strategy for market oriented firms to optimize profitability, revenue and customer satisfaction. Focus on defined and precise customer groups.

- Delivering personalized and integrated experiences across various channels (on-demand marketing) e.g. shampoo brans offers various options targeting different consumer needs (volume, dandruff, genders)

On demand marketing

Integrating customer experiences across physical and virtual environments throughout the consumer´s decision and buying process. Organizations develop new ways to personalize customer experience.

- The firm´s primary goal (sales + market)

o Sales oriented firm: Seek to achieve profitability through sales volume.

o Market oriented firm: Aim to make profit by creating customer value, providing customer satisfaction and building long-term relationships with customers.

The tools used to achieve goals (sales+ market)

o Sales oriented:; Rely on intensive promotional activities to generate sales volume.

o Market-oriented organizations: Understand promotion is just one element of the marketing mix (the 4 Ps) that must be aligned with product, price and place decisions.

Customer Value

Balancing benefits received with sacrifices made. Their perception of value is the quality they expect and the price they are willing to pay. - Varies for different customers.

- Not just a high quality or high price of a product, Low price does not mean good value. Not limited to specific income group or product category.

Difference between customer value depending on the income:

Low-income consumers: Value affordability, special offers, and generic brands.

Higher income consumers: Prioritize high-quality products and superior customer service.

Customer Satisfaction:

Depends on if they meet customer needs and expectations. Some focus on service and long-term relationships more than efficiency for success. Commitment throughout organization and can be tracked through surveys and customer feedback

Building Relationships - Strategy focused on keeping and improving relationships in 3 ways:

- Retaining existing customers

- Increasing business with existing customers e.g. getting them to buy more.

- Attract new customers (customer attraction)

Ways for a successful Relationship Marketing:

Customer-oriented (sales or market) personnel: Employ right people with right skills (and treat them well)

Effective training programs

Empowerment: Employees have authority to make devisions and solve problems.

Teamwork: Work together to achieve common goals.

Loyalty Programs

Like the ICA card, offer value to repeat customers.

Why Study Marketing:

- Important role in society and lifestyle.

- Important for business in attaining goals.

- Career opportunities

- Part of everyday life

Types of values:

- Functional benefits: Saves time and effort, less risk e.g turbotax.

- Emotional: Fulfill emotional needs e.g. anxiety.

- Life changing: Self actualization, provide hope e.g fitbit.

- Social impact: Society, charity e.g. donations.

- Combination to amplify their offering e.g. Amazon prime.

Key marketing strategies:

- Big data: Understand customer behavior through digital footprints.

- On demand marketing: Integrating customer experiences across physical and virtual environments throughout the consumer´s decision and buying process. Organizations develop new ways to personalize customer experience.

Broader themes

- Customer centric innovation: Using technology, CRM system to create personalized experiences.

- Importance of teamwork: Internal collaboration across departments

- Market orientation: Target average customer.