Marketing Management Notes

Marketing Management

Defining Marketing for the New Realities

• Bird is an electric-scooter-sharing company aiming to provide affordable and eco-friendly transportation.

• Marketing is identifying and meeting human and social needs in line with organizational goals.

• Marketing is the activity, institutions, and processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society.

• Marketing management involves choosing target markets and acquiring, retaining, and growing customers via superior customer value.

• Social definition: Marketing is a societal process where individuals and groups obtain their needs and wants through creating, offering, and freely exchanging products and services of value with others.

• Marketing should result in a customer who is ready to buy.

What is Marketed?

• Marketing includes goods, services, events, experiences, persons, places, properties, organizations, information, and ideas.

• Goods: Physical products.

• Services: Activities like airlines, hotels, etc.

• Events: Time-based occurrences (Olympics, trade shows).

• Experiences: Staged activities (theme parks).

• Persons: Marketing individuals (athletes, celebrities).

• Places: Attracting tourists, residents, businesses.

• Properties: Intangible rights of ownership (real estate, stocks).

• Organizations: Promoting image (museums, corporations).

• Information: Disseminated knowledge (news, internet).

• Ideas: Social causes (anti-drunk driving campaigns).

The Marketing Exchange

• Marketers seek a response (attention, purchase, vote).

• Markets include resource, manufacturer, consumer, intermediary, and government markets.

• Figure 1.1 depicts the flow of goods, services, and money.

• Figure 1.2 shows the exchange of money, goods, services, and information between sellers and buyers.

• Financial success depends on marketing ability.

• Marketing introduces new products and creates jobs.

• Firms failing to monitor customers and competition are at risk.

The New Marketing Realities

• Rapid changes in consumers, competition, technology, and economic forces require marketers to adapt.

Four Major Market Forces

• Technology: E-commerce, online communication, and AI impact marketing.

• Globalization: Increased competition and multiculturalism.

• Physical Environment: Climate change and global health concerns.

• Social Responsibility: Ethical and social context of marketing activities.

Three Key Marketing Outcomes

• New Consumer Capabilities: Access to information, mobile connectivity, social media.

• New Company Capabilities: Internet as a sales channel, richer information, social media marketing.

• New Competitive Environment: Deregulation, privatization, retail transformation.

The Concept of Holistic Marketing

• Holistic marketing recognizes the scope and complexities of marketing activities.

• Components: relationship marketing, integrated marketing, internal marketing, and performance marketing.

• Relationship Marketing: Building mutually satisfying long-term relationships with key stakeholders.

• Integrated Marketing: Coordinating all marketing activities to deliver a consistent message.

• Internal Marketing: Hiring, training, and motivating employees to serve customers well.

• Performance Marketing: Understanding financial and nonfinancial returns to business and society from marketing activities.

The Role of Marketing in the Organization

• Marketing philosophies have evolved from production, product, selling, marketing, to market-value concepts.

• Table 1.1 contrasts product-oriented vs. market-value-oriented definitions.

Organizing and Managing the Marketing Department

• Modern departments can be organized functionally, geographically, by product/brand, by market, or in a matrix.

• Figure 1.5 shows a functional organization.

• Figure 1.6 illustrates the product manager’s interactions.

• Senior management is critical for integrating marketing across departments.

Building a Customer-Oriented Organization

• Focus on creating a superior customer experience.

• Figures 1.7(a) and 1.7(b) illustrate the transformation from a traditional organization to a customer-oriented company.

• Table 1.2 lists the characteristics of a customer-centric organization.

• Adopt new marketing approaches to adapt to the evolving marketplaces.

• Innovation is key for success

Marketing Planning and Management

Corporate and Business Unit Planning and Management

• Strategic marketing requires planning for company businesses, market growth, and business models.

• Planning occurs at corporate, business unit, and market offering levels (Figure 2.1).

Defining the Corporate Mission

• A long-term goal provides direction and opportunity.

• Good mission statements:

  • Focus on limited goals.

  • Stress company policies and values.

  • Define major markets.

  • Take a long-term view.

  • Be short and memorable.

Building the Corporate Culture

• Creating a viable corporate culture is essential for market success.

Defining Strategic Business Units

• An SBU has three characteristics:

  • A single business.

  • Own set of competitors.

  • Manager responsible for planning and profit.

• SBUs can be specialized or diversified.

Allocating Resources Across Business Units

• Resources are allocated according to competitive advantage and market attractiveness.

• Successful business units can grow by implementing generalized strategies across them.

• Portfolio models offer guidance on resource allocation across SBUs.

• Metrics for unit assessments include factors such as return on investment, market share and industry growth rate.

• The BCG matrix by the Boston Consulting Group is an oversimplified generalized strategy for portfolio analysis.

Developing Market Offerings

• Clearly identify the target market and design an offering that will deliver a meaningful set of benefits.

Developing the Marketing Strategy

• Developing the Marketing Strategy begins with the selection of the target market in which the company will compete and create value.

Identifying the Target Market

• Figure 2.2 visually represents the Five Cs.

  • Customers: whose needs will the company fulfill?

  • Collaborators: external entities that work with the company to benefit customer needs.

  • Competitors: Other companies aiming to fulfill needs of same customers.

  • Company: Internal entity with resources and assets to deploy to satisfy market demands.

  • Context: External environment factors such as Sociocultural, Technological, Regulatory, Economic and Physical that a business operates in.

    • Globalization, health issues or technological forces.

• Industry analysis vs market analysis using Porter’s Five Force and 5-C Framework.

Developing a Value Proposition

• An offering must create superior value for the company, its collaborators, and especially target customers.

  • When developing market offerings a company needs to consider all three types of value: Customer, Collaborator and Company Value.

• Customer value is the worth of the offering to its customers.

• Collaborator value is the worth of the offering to the company’s collaborators.

• Company value is the worth of the offering to the company.

• The 3-V Principle, Figure 2.3, promotes achieving customer, collaborator, and company value.

Designing the Marketing Tactics

Marketing Tactics: The Seven Tactics (7 Ts) Defining the Market Offering

• Figure 2.4, illustrates The Target Market, Value Proposition and Market Offering.

• The key attributes of an offering: product, service, brand, price, incentives, communication, and distribution: The marketing mix.

• Each T contributes unique qualities in creating market value
  *

Creating Three Types of Value

• Figure 2.5, illustrates Marketing Tactics as a Process of Designing, Communicating, & Delivering Customer Value.

  • Value Design.

  • Communicating & Delivering Value to Customers.

Designing, Communicating, & Delivering Customer Value

• Marketing mix (7 T’s) is a mix of design, communication & delivery of each function.

Creating a Market Value Map

• Figure 2.6, The Market Value Map is Visualized by questions of 5-Cs, Value Proposition and Product/Service.

• Successful Business Model with target customers and key entities as the base.

Planning and Managing Market Offerings

• Action planning is essential for action plans in real world scenarios in planning and management.

The G-STIC Approach to Action Planning

• Figure 2.7 The G-STIC Action-Planning Flowchart, lists Goals, Strategies, Tactics and Implementation.

• Goal Focus and Measurements; What, When and How.

  • The primary Goal should be monetary and strategic with focus on quantitative and temporal achievement.

• The Strategy, target market with value proposition in that market.

• The development of market/brand and offering must define products and services/distribution all under consideration with controls.

Developing a Marketing Plan

• The marketing plan directs and coordinates all aspects of the business to ensure goals can be achieved.

• Components: executive summary, situation overview, marketing plan (outlined by G-STIC) and Exhibits.

• The G-STIC (Goal, strategy, tactics, implementation and control) sets the course of action to ensure achievement/execution of goals.

• Figure 2.8, illustrates the Organization of a Marketing Plan with G-STIC and supporting attributes like Situational overview of the company/history in the markets in which they compete.

Modifying the Marketing Plan

• Dynamic process is needed to ensure results

• Update due to market & technological advancements. If results are not being realized, a review is required.

• Companies must implement a Marketing Audit to help highlight future areas of opportunity vs failure.

Analyzing Consumer Markets

The Model of Consumer Behavior

• Research on consumer behavior determines how individuals, groups, & organizations select, buy, use, & dispose of goods, services, ideas, or experiences to satisfy their needs & wants.

• Figure 3.1 describes factors shaping the offering in the market through Social, Cultural, Personal lenses, combined with motivation, perception, emotions and memory, which then impact the decision to buy.

Consumer Characteristics

• Buying behavior is influenced by cultural, social, & personal factors.

Cultural Factors

• Culture: Behaviors, values and lifestyles accepted generally by a group of people, passed down through generations.

• Consumers in Individualistic cultures focus more on Self, sales, returns, digital media. Vs. Collectivist, those focus more on trust, tradition.

• Social Classes: Different tiers in society (upper, middle, lower) exhibit various brand preferences & market purchases.

• Social Hierarchies are rigid or loosely defined across cultures.

Social Factors

• Reference groups & Family play different factors on buyer behavior.

• Figure out which groups are more influential before marketing.

• Men and women may respond differently to marketing.

• Direct/Indirect influence based on child purchases, now a top marketing outlet to cater towards.

Personal Factors

• Age - Recreation, Taste and Food changes as we grow older.

• Job and Finance, what profession do people fall into or their spending habits.

• Personality - Psychological traits can define a client: self-confident, submissive or adaptable. Make products work for them.

• Beliefs - Consumers pick products consistent with self-image. (Self-Concept).

• Lifestyle-What are consumers prone towards: Money-Constraints or Time-Constraints.

Consumer Psychology

• The mind is critical to buying/selling with Psychological processes and buying influences.

• Motivation, Perception, Learning, & Memory determine the way consumers will respond.

Consumer Motivation

• Needs are base requirements and psychological reasons.

  • Abraham Maslow hierarchy of needs from greatest to least (Figure 3.2):

    • Psychological, Needs, then Safety Needs.

• Demands are products, wants are backed by ability to pay, needs preexist.

Perception

• Perception is interpretation of info stimuli to create a view of the world

• Each person views stimuli differently because it is based on internal or external actions.

• Includes Selective Attention and Distortion.

  • Stimuli that are unexpected, need-based get people active.

  • People tend to interpret information based on pre-conceived notions and product usage.

Behaviors or Emotions

• Emotional state reactions to stimuli.

• Emotional Appeal of Brand works great to attract a large audience.

Memory or Construction & Usage

• Brain to record events from past experiences.

• Based on models, a visual form:

  • Episodic: Events that occurred in events directly linked to experiences.

  • Semantic: Storing Data as knowledge, unrelated to experience.

  • Procedure: Perform automated procedures thru sensorimotor capabilities.

    • The Brain takes in as much info and makes it relatable

The Buying Decision Process

• The process used depends on what products or types of services required for marketing (Fig 3.3: Process is from left to right).

  • These processes don't have to be linear, they can alternate (shopping online v storefronts).

  • Consumers may skip or retrace steps, often buying before thinking about different information in a stimulus.

  • Gaining insight may not be easy.

• What/Where/When/Why do people participate in sales/transactions?

Problems with Recognition (Trigger, Stimuli)

• Gathering data & marketing helps spur consumers to purchase or take interest.

Information Search

• surprisingly consumers search limited options or details when they want something. Surveys:

  • Half look for durable options in only 1 store & many want brand appliances for 30%.

Evaluation of Alternatives

• Consumer base can also be from emotions/beliefs in marketing.

• Figure out what has influence and why over consumer purchasing (ex: time, choice, knowledge, etc.).

Analysis with Beliefs and Attitudes

• Beliefs are opinions from a person (from reviews, and ads).

• Attitudes - Thoughts can change with the time or in a general set. Ex from religion etc.

  • Product must get approval regardless - if it cannot, adjustments must be made.
    ##### Information or Processing

• Model shows (Conscious / Rational side) where judgment is largely made

• Mental Shortcut/ Rule of Thumb makes purchasing decisions simplified.

  • (Fig: 3.4 -> set options for decisions making or what sets consumers apart so that they select something, i.e. Apple vs Samsung).

    • To achieve goal, you must make customer and company in agreement - consumers need it.

Expectancy-Value Model

• Brand A won thanks to its value

• Comp provides value in what is available to each consumer (Brand Choice, Price + Service.)
  ### Purchase Decisions: Mental Shortcuts/Rules of Thumb.

• Figure 3.5 List interceding to influence consumers before purchasing.

• The decision becomes better over time for both company / customer.

  • This occurs thanks to feedback from consumers.

  • The evaluation increases when a service satisfies every level.
    There are (5 levels ) of consumers in making the sale, they take public action by:
    • complaining to the company
    • complaining with an attorney, complain w / govt.
    • Expressing dissatisfaction online vs private complaints by
    • Decide to shop less to express value with offering
    Private VS Public Actions taken against negative outcomes.

*Post Actions influence client actions (Positive Feedback from Product Quality).
There are always problems, and if they are managed the best way, then it is beneficial to be open (more feedback is good).