MK464 Marketing Management

  • Lecture One
    • Marketing Management :: science choosing target markets, getting, keeping, and growing customers through creating, delivering, and communicating superior customer value
    • STP :: segmenting market on demographics, etc , targeting (picking two best alternatives) , positioning (how to be perceived by target market comparative to competitors)
    • two approaches to product positioning
      • head to head positioning :: right against competitors
      • differentiation position :: different thant competitiors
    • perceptual maps :: identify important attributes, detect rating for competing products or brands, determine customer ratings,
      • indicates :: how perceived, who competition,
    • market segmentation :: into groups that have common needs, respond similarly to market action
    • homogenous cluster in heterogenous market
    • Product differentiation :: physical attributes (color), non-physical attributes (price)
    • 5 key steps in segmenting and targeting markets
    • group potential buyers into segments :: simplicity/cost effectiveness, potential for inc profit, sim needs, diff of needs, potential of reaching segment
    • group products to be sold into categories :: product class (ex snack), product forms (candy fruit), product items (fruit roll-ups), product lines ( m&ms), why product categorization important in marketing = substitution
    • dev market-product grid and estimate size of markets :: forming *market-product grid, estimating market size
    • Selecting target markets :: choose target market segment
    • take marketing actions :: dev market product grid ⇒ trigger marketing actions to increase sales and profit
    • Marketing seeks to :: find needs wants and satisfy them
    • common goal of marketing :: create utility (benefits/CValue by users of prod.)
    • 4 diff types of utilities
    • form utility :: converting raw materials to final product
    • Time utility :: avail goods and services when consumers want
    • Place utility :: avail of goods/services at convenient locations
    • Ownership :: ability to transfer title to goods or services from marketer to buyer
    • marketing myopia :: failure to recognize scope of biz
    • focus on cust need satisfaction :: overcome myopia
    • Visonary organizations
    • Organizational foundation (why)
      • core values
      • mission (vision)
      • organizational culture
    • Organizational direction (what)
      • Business
      • Goals (objectives
      • long-term
      • short-term
    • Organizational Strategies (how)
      • by level
      • by product
      • *general Marketing strategy :: analyze (5Cs), decision(aspiration (STP), Action Plan(4Ps), outcome
    • marketing plan :: roadmap of org specified time period 1-5 years
    • variation by level :: corporate, Subordinate business unit (SBU) = smaller companies, Functional (every company have separate dept
    • variation by product/offering :: product, service, Idea
    • organizational direction (how) :: programming allocating budgeting, implementation, monitoring and auditing, analysis and research
    • generic strategies (how)
    • Cost leadership :: leading in cost, cheapest cost to produce,
    • differentiation :: better quality, better then the rest of competitors
    • growth strategies (how)
    • Market penetration :: tapping in existing markets/products to inc
    • market development :: existing product for new market
    • product development :: new product in existing market
    • diversification :: reaching out with new product in new market
    • 5 C analysis
    • company :: SWOT analysis
    • competition :: direct competitor, substitute,
    • customer
      • Decision making Unit (DMU)→who is involved in purchase process
      • initiator :: recog value of solving issue so stimulate search of product
      • gatekeeper :: act as prob/product experts and control info/access to other members of DMU
      • decider :: make purchase choice
      • influencer :: input on purchaser
      • purcahser :: consume prod
      • users :: use product
      • Decision making process (DMP) :: what their decision process is like
      • consumer behavior :: function interpersonal(people around you) /personal(demographic) factors
      • 5 stages of decision Process ::
        • problem recognition
        • information search
        • alternative evaluation
        • purchase decision
        • post-purchase behavior
    • collaborators :: collaborator analysis (every pos external resource/asset)
    • context
      • environment
      • political legal
      • technological
      • social-cultural
      • economic
      • competitive
      • Time
    • Porter's 5 forces ::
    • threat of new entrants
    • bargaining power of buyers
    • bargaining power of suppliers
    • threat of substitutes
    • intensity of competitive rivalry
    • Why (foundation)
    • Core values :: fundamental, passionate, enduring principles of an organization that guide its conduct over time
      • Collective heart and soul of organization
      • Motivates Stakeholders
      • Timeless
      • Guide Conduct
    • Mission/ Vision :: statement of organization function in society that often identifies its customers, markets, products and technologies
    • Organizational Culture :: consists of set of values, ideas, attitudes and norms of behavior that is learned and shared among the members of an organization
    • goals (objectives) should be S.M.A.R.T ::
    • Specific
    • Measurable
    • Attainable
    • Relevant
    • Time-Based
    • Track performance : measure
    • in order to measure :: programming, allocating, and budgeting / implementation / monitoring and auditing / analysis research
  • Framework for marketing strategy formation reading
    • buyer stickiness :: resistance to switch easily from one supplier to another
    • churn :: measure of customer attrition, churn rate is 100%- customer retention %rate, meas. customers who discontinue service/subscription within specified time period
    • coolhunting :: observing and predicting emergence and changes in cultural trends, fashion, popular music, urban lifestyle, uses of tech etc.
    • distribution channels :: network of indiv/org inv in process of moving product/service from others in perception of cust.
    • positioning :: defining value proposition for target segments, differentiating product/service from others in perception of customers
    • product line :: groups of products manufactured by firm close related in use and in production and marketing requirements
    • product line Breadth :: variety and # of product lines offered
    • pull strat :: involv motivating cust to seek brand in active process (advertising, customer relationship management (CRM)
    • push strat :: ensure cust aware of brand at point of purch. (direct selling to cust, packaging design, Point of sale (POS) dispay
    • segmentation :: planning process dividing broad target market into subsets/groups of cust w common needs/characteristics
    • targeting :: selecting potential customer segments to whom company wishes to sell products/services after analysis of ea. segments attractiveness
    • Segmenting, Targeting, and Positioning (STP) :: segment market (find groups within a market), Targeting (zone in on those groups further to few or one), Positioning (act like consumer, make product around consumer, keep them in mind)
    • porters five forces :: customer, company, collaborators, competition, context
    • customer :: who involved in purchase decision