Concept.Foundation Combined Slides [ch.1... 288KB Aug 31 2008 08:30:26 PM

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MARKETING MANAGEMENT

12

th

edition

1

Defining Marketing

for the 21

st

Century

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Chapter Questions

 Why is marketing important?

 What is the scope of marketing?

 What are some of the fundamental

marketing concepts?

 How has marketing management changed?

 What are the tasks necessary for

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What is Marketing?

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value

to customers and for managing customer relationships

in ways that benefit the

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What is Marketing Management?

Marketing management is the art and science

of choosing target markets

and getting, keeping, and growing customers through

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For an exchange to occur…..

 There are at least two parties.

 Each party has something that might be of value to the other party.

 Each party is capable of communication and delivery.

 Each party is free to reject the exchange offer.

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What is Marketed?

 Goods

 Services

 Events

 Experiences

 Persons

 Places

 Properties

 Organizations

 Information

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Demand States

 Negative

 Nonexistent

 Latent

 Declining

 Irregular

 Unwholesome

 Full

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Key Customer Markets

 Consumer markets

 Business markets

 Global markets

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The marketplace isn’t what it used to be….

 Changing technology

 Globalization

 Deregulation

 Privatization

 Empowerment

 Customization

 Convergence

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Company Orientations

 Production

 Product

 Selling

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Marketing Mix and the Customer

Four Ps

 Product

 Price

 Place

 Promotion

Four Cs

 Customer solution

 Customer cost

 Convenience

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Core Concepts

 Needs, wants, and

demands

 Target markets,

positioning, segmentation

 Offerings and brands

 Value and

satisfaction

 Marketing channels

 Supply chain

 Competition

 Marketing

environment

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I want it, I need it…..

5 Types of Needs

 Stated needs

 Real needs

 Unstated needs

 Delight needs

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Marketing Management Tasks

 Developing marketing

strategies

 Capturing marketing

insights

 Connecting with

customers

 Building strong brands

 Shaping market

offerings

 Delivering value

 Communicating

value

 Creating long-term

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MARKETING MANAGEMENT

12

th

edition

2

Developing Marketing

Strategies and Plans

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Chapter Questions



How does marketing affect customer

value?



How is strategic planning carried out

at different levels of the organization?

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Improving Value Delivery the

Japanese Way

 0 customer feedback time

 0 product improvement time

 0 purchasing time

 0 setup time

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3 V’s Approach to Marketing

 Define the value segment

 Define the value proposition

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Benchmarks

Organizational costs

and

performance measures

Competitor costs

and

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Core Business Processes

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Characteristics of Core Competencies

 A source of competitive advantage

 Applications in a wide variety of markets

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Challenges Facing CMO’s

 Doing more with less

 Driving new business development

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Levels of a Marketing Plan

 Strategic

 Target marketing decisions

 Value proposition

 Analysis of marketing opportunities

 Tactical

 Product features  Promotion

 Merchandising  Pricing

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Corporate Headquarters’ Planning Activities

_{Define the corporate mission} _{Establish SBUs}

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Good Mission Statements

 Focus on limited number of goals

 Stress major policies and values

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Major Competitive Spheres

 Industry

 Products

 Competence

 Market segment

 Vertical channels

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Rubbermaid Commercial Products, Inc.

“Our vision is to be the Global Market Share Leader in each of the markets we serve. We will earn this leadership position by

providing to our distributor and end-user customers innovative, high-quality, cost-effective and environmentally responsible

products. We will add value to these products by providing legendary customer service

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Motorola

“The purpose of Motorola is to honorably

serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by doing so, provide the opportunity for our employees and shareholders to achieve their personal

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eBay

“We help people trade anything on earth. We will continue to enhance the online

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Dimensions That Define A Business

Customer groups

Technology Customer

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Characteristics of SBUs

 It is a single business or collection of

related businesses

 It has its own set of competitors

 It has a leader responsible for:

Strategic planning

Profitability

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Organizations

 Culture

 Policies

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Market Opportunity Analysis (MOA)

 Can the benefits involved in the opportunity be

articulated convincingly to a defined target market?

 Can the target market be located and reached

with cost-effective media and trade channels?

 Does the company possess or have access to

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Market Opportunity Analysis

(MOA)_2

 Can the company deliver the benefits

better than any actual or potential competitors?

 Will the financial rate of return meet or

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Goal Formulation and MBO

 Requirements for using MBO

Unit’s objectives must be hierarchical

Objectives should be quantitative

Goals should be realistic

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Porter’s Generic Strategies

 Overall cost leadership

 Differentiation

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Categories of Marketing Alliances

 Product or Service Alliances

 Promotional Alliances

 Logistics Alliances

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Marketing Plan Contents

_{Executive summary} _{Table of contents}

_{Situation analysis} _{Marketing strategy} _{Financial projections}

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Evaluating a Marketing Plan

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MARKETING MANAGEMENT

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edition

11 Dealing with Competition

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Chapter Questions

 How do marketers identify primary competitors?

 How should we analyze competitors’ strategies,

objectives, strengths, and weaknesses?

 How can market leaders expand the total market

and defend market share?

 How should market challengers attack market

leaders?

 How can market followers or nichers compete

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Figure 1.1 Five Forces Determining Segment Structural Attractiveness

 Potential entrants

 Suppliers

 Buyers

 Industry competitors

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Industry Concept of Competition

 Number of sellers and degree of

differentiation

 Entry, mobility, and exit barriers

 Cost structure

 Degree of vertical integration

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Industry Concept of Competition

 Pure monopoly

 Oligopoly

 Monopolistic competition

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Analyzing Competitors

 Share of market

 Share of mind

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Expanding the Total Market

 New customers

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Figure 11.6 Six Types of

Defense Strategies

 Defender

 Flank

 Preemptive

 Counteroffensive

 Mobile

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Factors Relevant to Pursuing

Increased Market Share

 Possibility of provoking antitrust action

 Economic cost

 Pursuing the wrong marketing-mix

strategy

 The effect of increased market share on

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Other Competitive Strategies

 Market challengers

 Market followers

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Market Challenger Strategies

 Define the strategic objective and

opponents

 Choose a general attack strategy

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General Attack Strategies

 Frontal attack

 Flank attack

 Encirclement attack

 Bypass attack

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Specific Attack Strategies

 Price discounts

 Lower-priced goods

 Value-priced goods

 Prestige goods

 Product proliferation

 Product innovation

 Improved services

 Distribution innovation

 Manufacturing-cost

reduction

 Intensive advertising

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Market Follower Strategies

 Counterfeiter

 Cloner

 Imitator

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Balancing Orientations

 Competitor-centered

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MARKETING MANAGEMENT

12

th

edition

3 Gathering Information and Scanning the

Environment

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Chapter Questions_1



What are the components of a

modern marketing information

system?



What are useful internal records?



What is involved in a marketing

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Chapter Questions_2



What are the key methods for

tracking and identifying opportunities

in the macroenvironment?



What are some important

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MIS Probes for Information

 What decisions do you regularly make?

 What information do you need to make these decisions?

 What information do you regularly get?

 What special studies do you periodically request?

 What information would you want that you are not getting now?

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Internal Records

 Order-to-Payment Cycle

 Sales Information System

 Databases, Warehousing, Data mining

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Steps to Improve Marketing Intelligence

 Train and motivate sales force

 Motivate channel members to share intelligence

 Network externally

 Utilize customer advisory panel

 Utilize government data resources

 Purchase information

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Needs and Trends

Fad

Trend

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10 Megatrends Shaping the Consumer Landscape

 Aging boomers

 Delayed retirement

 Changing nature of

work

 Greater educational

attainment

 Labor shortages

 Increased immigration

 Rising Hispanic

influence

 Shifting birth trends

 Widening geographic

differences

 Changing age

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Environmental Forces

 Demographic

 Economic

 Socio-Cultural

 Natural

 Technological

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Population and Demographics

 Size

 Growth rate

 Age distribution

 Ethnic mix

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Economic Environment

$ _{Purchasing Power}

$_{Income Distribution} $_{Savings Rate}

$_Debt

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Types of Industrial Structures

 Industrial economies

 Industrializing economies

 Raw-material exporting economies

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Social-Cultural Environment

 Views of themselves

 Views of others

 Views of organizations

 Views of society

 Views of nature

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Natural Environment

 Shortage of raw materials

 Increased energy costs

 Anti-pollution pressures

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Technological Environment

 Pace of change

 Opportunities for innovation

 Varying R&D budgets