Part 1 - Understanding Marketing Management 26l2d

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MKTG 302 – MARKETING MANAGEMENT

PART 1. UNDERSTANDING MARKETING MANAGEMENT

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Outline • Chapter 1. Defining Marketing for the New Realities • Chapter 2. Developing Marketing Strategies and Plans

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PART 1. UNDERSTANDING MARKETING MANAGEMENT

Chapter 1. Defining Marketing for the New Realities

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Questions • Why is marketing important? • What is the scope of marketing? • What are some core marketing concepts? • What forces are defining the new marketing realities? • What new capabilities have these forces given consumers

and companies? • What does a holistic marketing philosophy include? • What tasks are necessary for successful marketing management?

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Outline • The Value of Marketing • The Scope of Marketing • Core Marketing Concepts • The New Marketing Realities • Changed Marketplace • Marketing in Practice • Company Orientation • Updating the Four Ps • Marketing Management Tasks

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The Value of Marketing • Financial success often depends on marketing ability. • Marketing has helped introduce new or enhanced

products that ease or enrich people’s lives. • Successful marketing builds demand for products and services, which, in turn, creates jobs. • Successful marketing allows firms to more fully engage in socially responsible activities.

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The Value of Marketing • Many firms, even service and nonprofit, now have a chief

marketing officer (CMO) to put marketing on a more equal footing with other C-level executives such as the chief financial officer (CFO) or chief information officer (CIO).

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What is Marketing?

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The Scope of Marketing Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is “meeting needs profitably.”

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The Scope of Marketing Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

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The Scope of Marketing Aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.

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The Scope of Marketing • What is marketed? • goods • services • events • experiences • persons • places • properties • organizations • information • ideas

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The Scope of Marketing Who markets? • A marketer is someone who seeks a response - attention, a purchase, a vote, a donation - from another party, called the prospect. If two parties are seeking to sell something to each other, we call them both marketers.

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The Scope of Marketing Demand states • Negative demand - Consumers dislike the product and may even pay to avoid it. • Nonexistent demand - Consumers may be unaware of or uninterested in the product. • Latent demand - Consumers may share a strong need that cannot be satisfied by an existing product. • Declining demand - Consumers begin to buy the product less frequently or not at all. • Irregular demand - Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis. • Full demand - Consumers are adequately buying all products put into the marketplace. • Overfull demand - More consumers would like to buy the product than can be satisfied. • Unwholesome demand - Consumers may be attracted to products that have undesirable social consequences.

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The Scope of Marketing Markets • Traditionally, a “market” was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over a particular product or product class (such as the housing market or the grain market).

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The Scope of Marketing

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Core Marketing Concepts • NEEDS • WANTS • DEMANDS

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Core Marketing Concepts • TARGET MARKETS • POSITIONING • SEGMENTATION

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Core Marketing Concepts • OFFERINGS • BRANDS

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Core Marketing Concepts • MARKETING CHANNELS

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Core Marketing Concepts • PAID MEDIA • OWNED MEDIA • EARNED MEDIA

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Core Marketing Concepts • IMPRESSIONS • ENGAGEMENT

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Core Marketing Concepts • VALUE • SATISFACTION

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Core Marketing Concepts • SUPPLY CHAIN

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Core Marketing Concepts • COMPETITION

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Core Marketing Concepts • MARKETING ENVIRONMENT

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The New Marketing Realities • TECHNOLOGY

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The New Marketing Realities • GLOBALIZATION

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The New Marketing Realities • SOCIAL RESPONSIBILITY

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Changed Marketplace New Consumer Capabilities • Consumers can use the Internet as a powerful information and purchasing aid. • Consumers can search, communicate, and purchase on the move. • Consumers can tap into social media to share opinions and express loyalty. • Consumers can actively interact with companies. • Consumers can reject marketing they find inappropriate.

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Changed Marketplace New Company Capabilities • Companies can use the Internet as a powerful information and sales channel, including for individually differentiated goods. • Companies can collect fuller and richer information about markets, customers, prospects, and competitors. • Companies can reach consumers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information. • Companies can improve purchasing, recruiting, training, and internal and external communications. • Companies can improve their cost efficiency.

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Changed Marketplace Changing Channels • Retail transformation • Disintermediation

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Changed Marketplace Heightened Competition • Private labels • Mega-brands • Deregulation • Privatization

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Marketing in Practice Marketing Balance • Companies must always move forward, innovating products and services, staying in touch with customer needs, and seeking new advantages rather than relying on past strengths.

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Marketing in Practice Marketing ability • Marketers are increasingly asked to justify their investments in financial and profitability , as well as in of building the brand and growing the customer base.

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Marketing in Practice Marketing in the Organization • Marketing is not done only by the marketing department; every employee has an impact on the customer. • To create a strong marketing organization, marketers must think like executives in other departments, and executives in other departments must think more like marketers.

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Company Orientation The Production Concept • The production concept is one of the oldest concepts in business. It holds that consumers prefer products that are widely available and inexpensive and concentrates on achieving high production efficiency, low costs, and mass distribution.

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Company Orientation The Product Concept • The product concept proposes that consumers favor products offering the most quality, performance, or innovative features.

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Company Orientation The Selling Concept • The selling concept holds that consumers and businesses, if left alone, won’t buy enough of the organization’s products.

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Company Orientation The Marketing Concept • The marketing concept is a customer - centered, senseand-respond philosophy. The job is to find not the right customers for your products, but the right products for your customers.

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Company Orientation The Holistic Marketing Concept • The holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies.

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Company Orientation The Holistic Marketing Concept • Relationship marketing • Integrated marketing • Internal marketing • Performance marketing

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List Four Ps

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Updating the Four Ps • McCarthy classified various marketing activities into

marketing-mix tools of four broad kinds, which he called the four Ps of marketing: product, price, place, and promotion.

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Updating the Four Ps

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Updating the Four Ps • Understanding the Four As • Acceptability • Affordability • Accessibility • Awareness

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Marketing Management Tasks • Developing marketing strategies and plans • Capturing marketing insights • Connecting with customers • Building strong brands • Creating value • Delivering value • Communicating value • Conducting marketing responsibly for long-term success

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Outline • The Value of Marketing • The Scope of Marketing • Core Marketing Concepts • The New Marketing Realities • Changed Marketplace • Marketing in Practice • Company Orientation • Updating the Four Ps • Marketing Management Tasks

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Keywords marketing, chief marketing officer (CMO), marketing management, goods, services, events, experiences, persons, places, properties, organizations, information, ideas, negative demand, nonexistent demand, latent demand, declining demand, irregular demand, full demand, overfull demand, unwholesome demand, market, need, want, demand, target market, positioning, segmentation, offerings, brands, marketing channels, paid media, owned media, earned media, impressions, engagement, value, satisfaction, supply chain, competition, marketing environment, technology, globalization, social responsibility,

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PART 1. UNDERSTANDING MARKETING MANAGEMENT

Chapter 2. Developing Marketing Strategies and Plans

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Questions • How does marketing affect customer value? • How is strategic planning carried out at the corporate and

divisional levels? • How is strategic planning carried out at the business unit level? • What does a marketing plan include?

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Marketing and Customer Value The task of any business is to deliver customer value at a profit.

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Marketing and Customer Value The Value Delivery Process • Choosing the value • Providing the value • Communicating the value

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Marketing and Customer Value The Value Chain Primary activities • Inbound logistics • Operations • Outbound logistics • Marketing • Service

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Marketing and Customer Value The Value Chain ing activities • Procurement • Technology development • Human resource management • Firm infrastructure

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Marketing and Customer Value Core Competencies A core competency has three characteristics: • It is a source of competitive advantage and makes a significant contribution to perceived customer benefits • It has applications in a wide variety of markets • It is difficult for competitors to imitate.

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Marketing and Customer Value Planning • Marketing Plan • Strategic Marketing Plan • Tactical Marketing Plan

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Marketing and Customer Value

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Corporate and Division Planning • Defining the corporate mission • Establishing strategic business units • Asg resources to each strategic business unit • Assessing growth opportunities

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Corporate and Division Planning • Defining the Corporate Mission • Business definition • Crafting a business definition

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Corporate and Division Planning • Establishing Strategic Business Units (SBU) • It is a single business, or a collection of related businesses, that can be planned separately from the rest of the company. • It has its own set of competitors. • It has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit.

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Corporate and Division Planning • Asg Resources to Each SBU • Once it has defined SBUs, management must decide how to allocate corporate resources to each.

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Corporate and Division Planning • Assessing Growth Opportunities

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Corporate and Division Planning Organizational Culture • Shared experiences, stories, beliefs, and norms that characterize an organization.

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Corporate and Division Planning Marketing Innovation • Senior management should encourage fresh

ideas from three generally underrepresented groups: • employees with youthful or diverse perspectives • employees far removed from company headquarters • employees new to the industry

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Business Unit Strategic Planning

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Business Unit Strategic Planning The Business Mission • Each business unit needs to define its specific mission

within the broader company mission.

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Business Unit Strategic Planning SWOT Analysis • External Environment (Opportunity and Threat) Analysis • Internal Environment (Strengths and Weaknesses)

Analysis

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Business Unit Strategic Planning Goal Formulation • Goals must be prioritized • Goals should be quantitative • Goals should be realistic • Goals should be consistent

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Business Unit Strategic Planning Strategic Formulation Goals indicate what a business unit wants to achieve; strategy is a game plan for getting there. Every business must design a strategy for achieving its goals, consisting of a marketing strategy and a compatible technology strategy and sourcing strategy.

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Business Unit Strategic Planning Program Formulation and Implementation • Even a great marketing strategy can be sabotaged by

poor implementation.

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Business Unit Strategic Planning and Control • Do the right thing or do things right?

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Marketing Plan A marketing plan is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives.

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Marketing Plan Sections: • Executive summary & table of contents • Situation analysis • Marketing strategy • Marketing tactics • Financial projections • Implementation controls

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Keywords Value delivery process, segmentation, targeting, positioning, choosing the value, providing the value, communicating the value, value chain, primary activities, ing activities, core competencies, marketing plan, strategic marketing plan, tactical marketing plan, corporate and divisional planning,