MARKMAN-REVIEWER-MIDTERM

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INTRODUCTION TO MARKETING MANAGEMENT

• THE IMPORTANCE OF MARKETING

  • There must be a top line for there to be a bottom line.

  • Sufficient demand for products and services must be there for companies to make profits.

• THE SCOPE OF MARKETING

  1. Deals with identifying and meeting human and social needs.

  2. An organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. (American Marketing Association)

• SOCIAL DEFINITION OF MARKETING

  • 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.

• WHAT MARKETING IS NOT!

  • Marketing as selling

  • Marketing equals advertising

• MARKETING MANAGEMENT

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

• EXCHANGE AND TRANSACTIONS

  • Exchange is the process of obtaining a desired product from someone by offering something in return.

  • Transaction is a trade of values between two or more parties.

  • Transfer is giving something without anything in return like gifts, charitable contributions.

• FOUR WAYS TO OBTAIN A PRODUCT

  • Self-produce

  • Use Force

  • Beg

  • Offer something in return

• WHAT IS MARKETED?

  • Goods

  • Services

  • Events

  • Experiences

  • Persons

  • Places

  • Properties

  • Organizations

  • Information

  • Ideas

• WHO MARKETS?

  • Market is a physical place where buyers and sellers gather to buy and sell goods

  • Marketer is someone who seeks a response from another party called the prospect

  • Consumer markets are companies selling goods and services to individuals and households

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• Business markets are companies selling goods and services to companies

• Global markets are companies selling goods and services in the global marketplace

• Nonprofit and Governmental markets are companies selling their goods to non-profit organizations such as churches, universities, charitable institutions, and government agencies

• HOW BUSINESS AND MARKETING ARE CHANGING

  • Changing Technology

  • Globalization

  • Deregulation

  • Privatization

  • Customer Empowerment

  • Customization

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    Marketing Management Tasks Framework-Kotler

    • Developing marketing strategies and plans

    • Capturing marketing insights

      • Gathering information and scanning the environment

      • Conducting research and forecasting demand

    • Connect with customers

      • Creating customer value, satisfaction, and loyalty

      • Analyzing consumer and business markets

      • Identifying market segments and targets

    • Build strong brands

      • Creating brand equity

      • Crafting the brand positioning

      • Dealing with competition

    • Shape market offerings

      • Setting product strategy

      • Designing and managing services

      • Developing pricing strategies and programs

    • Deliver value

      • Designing and managing integrated marketing channels

      • Managing wholesaling, retailing, and logistics

    • Communicate value

      • Designing and managing integrated marketing communication

      • Managing mass communications, advertising, sales promotions, events and experiences, and public relations

      • Managing personal communications

    • Create long-term growth

      • Introducing new market offerings

      • Tapping into global markets

      • Managing a holistic marketing organization

    Developing Marketing Strategies and Plans

    • The new marketing realities

    • Analytical tasks

    • Strategic tasks

    • Operational tasks

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    Customer Value

    • The difference between what a customer gets from a product and what he has to give in order to get it

    New Definitions of Value

    • From the customer's point of view, your company exists only to create value for them, to provide them with results

    • The implication of these new forms of exchange is a transfer of power from the producer to the customer

    Value Delivery Approach

    The Value Chain

    Core Business Processes

    Core Competencies

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    PROGRAM FORMULATION AND IMPLEMENTATION

    • Proper formulation ensures that all the pieces fit together.

    • Firms must examine the cost of marketing programs to ensure expense is justified.

    FEEDBACK AND CONTROL

    • Changes in the market are inevitable.

    • Companies must be aware of pending changes and have the will to change course.

    PRODUCT PLANNING

    • MARKETING PLANS

      • Executive summary and table of contents

      • Situation analysis

      • Marketing strategy

      • Financial projections

      • Implementation controls

    ENVIRONMENTAL SCANNING

    • SWOT/TOWS analysis

    • Pest analysis

    • Industry analysis

    • Market analysis

    • Customer analysis

    • Competitor analysis

    SWOT

    • Originated by Albert S Humphrey in the 1960s.

    • SWOT Analysis helps carve a sustainable niche in the market.

    • Strengths and weaknesses are internal to the organization.

    • Opportunities and threats generally relate to external factors.

    • SWOT Analysis is sometimes called Internal-External Analysis.

    STRENGTHS

    • Abundant financial resources

    • Well-known/Respected brand name/image

    • Number rank in the industry

    • Economies of scale

    • Proprietary technology

    • Patented products or processes

    • Lower costs (raw materials or processes)

    • Superior management talent

    • Better marketing skills

    • Superior product quality

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      PEST Analysis

      • Identifying "Big Picture" Opportunities and Threats

      • PEST stands for Political, Economic, Social and Technological factors that affect business

      • Spots business or personal opportunities, and it gives you advanced warning of significant threats.

      • Reveals the direction of change within your business environment. This helps you shape what you're doing, so that you work with change, rather than against it.

      • Helps you avoid starting projects that are likely to fail, for reasons beyond your control.

      • Help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment

      PEST Analysis (Technology Industry)

      • Political Trends

      • Legal and Regulatory Issues

      • Government regulations and policies related to technology, data privacy, and cybersecurity.

      • Intellectual property laws and regulations governing patents, copyrights, and trademarks.

      • Government initiatives and funding for research and development in the technology sector.

      • Trade policies and international agreements impacting imports and exports of technology products.

      • Economic Factors to Consider

      • Overall economic stability and growth rates influencing consumer purchasing power and investment in technology.

      • Exchange rates affecting international trade and pricing of technology products.

      • Availability and cost of capital for technological advancements and infrastructure development.

      • Economic disparities and income distribution influencing market segments and target markets.

      • Socio-Cultural Trends

      • What is the general attitude of society about our industry, company, and products? Could we take actions to improve these attitudes?

      • What social or ethical issues should we be addressing?

      • Technological adoption rates and trends among different demographic groups.

      • Changing consumer preferences and behavior towards technology products and services.

      • Demographic shifts and population dynamics impacting market demand and target audience.

      • Social attitudes towards technology, including concerns about privacy, digital divide, and ethical considerations.

      • Technological Factors to Consider

      • In which areas do governments and educational institutions focus their research? Is there anything you can do to take advantage of this?

      • How have infrastructure changes affected work patterns (for example, levels of remote working)?

      • Are there existing technological hubs that you could work with or learn from?

      • Are there any other technological factors that you should consider?

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      INDUSTRY ANALYSIS

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      • Industry cost structure

      • Distribution channels

        • Assessing the effectiveness and efficiency of distribution channels can reveal opportunities for improving market reach and customer access.

      • Market trends

        • Identifying shifts in consumer behavior, technological advancements, regulatory changes, and other factors that impact the market's dynamics.

      • Key success factors

        • Brand reputation, product quality, customer service, innovation, or cost leadership.

      • Customer analysis

        • Identifying customers' segments, motivations, and unmet needs.

        • Collection and evaluation of data associated with customer needs and market trends through FGDs, customer satisfaction measurement, field testing, etc.

        • Customer segments

        • What they buy

        • What they use for

        • Where they buy

      • Competitor analysis

        • An assessment of the strengths and weaknesses of current and potential competitors.

        • This analysis provides both an offensive and defensive strategic context to identify opportunities and threats.

        • Profiling combines all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment.

        • Competitor analysis (What are their strategies)

          • Target market selection

          • Core strategy (Positioning)

          • Supporting Marketing Mix (Pricing, Promotion, Distribution, Product/Service Capabilities)

      • Segmentation, targeting, and positioning

        • Market segmentation

          • Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

        • Target marketing

          • The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

        • Market positioning

          • Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

        • Bases for segmenting consumer markets

          • Psychographic (who?)

          • Geographic (where?)

          • Demographic (what?)

          • Behavioral

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            • Targeting the whole market with one offer

              • Differentiated Marketing or Segmented Marketing

                • Firm enters different market segments

                • Designs separate offers for each segment

              • Concentrated Marketing or Niche Marketing

                • Smaller than segments

                • May attract only one or few competitors

              • Micromarketing

                • Tailoring products and marketing programs to suit specific individuals and locations

            • Socially responsible target marketing

              • Controversy and concern arise when targeting vulnerable and disadvantaged segments

              • Examples: children, the elderly, and the less educated

              • Potentially harmful products: cigarettes, liquor, and pornography

            • Choosing a positioning strategy

              • After deciding which segment/s to serve, the company must decide what positions it wants to occupy in the minds of those segments

            • Positioning statement

              • Identify and attempt to own a marketing niche for a product or brand or service

              • Goal is to create a unique impression in the customer's mind

              • Distinct from the rest of the marketplace

              • No: taglines, slogans (external)

              • Yes: guide the marketing and operating decision of the business

              • Helps make key decisions that affect customer's perception of the brand

            • Brand positioning statement

              • One or two sentence declaration that communicates brand's unique value to customers

              • In relation to main competitors

              • Four essential elements: target customer, market definition, brand promise, and reason to believe

            • Perceptual mapping

              • Use of a perceptual map to know where you are in the minds of your consumers