1st Meeting
MARKETING IN A CHANGING WORLD: CREATING CUSTOMER VALUE AND SATISFACTION
A. WHAT IS MARKETING?
More than any other functions, deals with customers
Creating customer value and satisfaction are the heart of modern marketing thinking and practice
The simplest definition is the delivery of customer satisfaction at a profit.
The twofold goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering satisfaction.
B. MARKETING DEFINED
Definition by Kotler and Armstrong: “a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others”.
Need → a state of felt deprivation
Want → the form taken by a human need as shaped by culture and individual personality
Demands → human wants that are backed by buying power Product → anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy want or need. It includes physical objects, services, persons, places,
organizations and ideas.
another that is essentially intangible and does not result in the ownership of anything.
Customers value → the difference between the values the customer gains from owning and using a product and the costs of obtaining the product.
Exchange → the act of obtaining a desired object from someone by offering something in return
Transaction → a trade between two parties that involves at least two things of value, agreed-upon conditions, a time of
agreement, and a place of agreement.
Relationship marketing → the process of creating,
maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
Market → the set of all actual and potential buyers of a product or service.
C. MARKETING MANAGEMENT
Definition: “ the analysis, planning, implementation, and control of programs designed to create, build and maintain
beneficial exchanges with target buyers for the purpose of achieving organizational objectives”.
Marketing management seeks to affect the level, timing, and nature of demand in a way that helps the organization achieves its objectives (demand management).
D. MARKETING MANAGEMENT PHILOSOPHIES 1. The Production Concept
sellers
This concept holds that consumers will favor products that are available and highly affordable → management should focus on improving production and distribution efficiency. 2. The Product Concept
This concept holds that consumers will favor products that offer the most quality, performance, and innovative features → organization should devote energy to making continuous
product improvements.
This concept can lead to marketing myopia. 3. The Selling Concept
This concept holds that consumers will not buy enough of the organization's product unless it undertakes a large-scale selling and promotion effort.
The concept is typically practiced with unsought goods. Most firms practice the selling concept when they have
overcapacity. 4. The Marketing Concept
This concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than do competitors.
5. The Societal Marketing Concept
This concept holds that organization should determine the needs, wants, and interests of target markets. It should then deliver superior value to consumers in a way that maintains or improves the consumer's and the society's well-being.
pure marketing concept is adequate in an age of environmental problems, resource shortages, rapid population growth,
worldwide economic problems, and neglected social services. The societal Marketing Concept calls on marketers to
balance three considerations in setting their marketing policies: company profits, consumer wants, and society's interests.
DISCUSSING THE ISSUES
1. Discuss the concept of customer value and its importance to successful marketing. How are the concepts of customer value and relationship marketing linked?
2nd Meeting
STRATEGIC PLANNING AND THE MARKETING PROCESS
All companies must look ahead and develop long-term strategies to meet the changing conditions in their industries. Each company must find the game plan that makes the most sense given its specific situation,
opportunities, objectives and resources. The hard task of selecting an overall company strategy for long-run survival and growth is called strategic marketing.
A. STRATEGIC PLANNING
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio and coordinating functional strategies.
Benefits:
1. It encourages management to think ahead systematically 2. It forces the company to sharpen its objectives and policies 3. It leads to better coordination of company efforts
4. It provides clearer performance standard for control.
A.1. DEFINING THE COMPANY MISSION
A mission statement is a statement of the organization's purpose – what it wants to accomplish in th larger environment. Traditionally, companies have defined their business in
product term or in technological terms. But mission statement should be market-oriented (defines business in terms of
Good mission statement:
1) not to broadly or to narrow
2) realistic
3) specific
4) fit the market environment
5) based on its distinctive competencies
6) should be motivating (however, one recent study found that 'visionary companies' set a purpose beyond making money).
A.2. SETTING COMPANY OBJECTIVES AND GOALS
The company's mission needs to be turned into detailed supporting objectives for each level of management.
Each manager should have objectives and be responsible for reaching them.
The firm's mission is translated into a set of objectives for the current period
The objectives should be as specific as possible
B. DESIGNING THE BUSINESS PORTFOLIO
Business portfolio: the collection of businesses and products that make up the company
The best business portfolio is the one that best fits the company's strengths and weakness to opportunities in the environment.
B.1. ANALYZING THE CURRENT BUSINESS PORTFOLIO
has a separate mission and objectives and that can be planned independently from other company businesses
The Boston Consulting Group Approach (BCG): classifies all SBUs according to the growth-share matrix.
B.2. DEVELOPING GROWTH STRATEGIES
It involves identifying businesses and products the company should consider in the future.
Product/market expansion grid: a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development or diversification.
B.3. PLANNING FUNCTIONAL STRATEGIES
B.3.1. Marketing's Role in Strategic Planning
Marketing provides a guiding philosophy -the marketing concept- which suggest company strategy should revolve around serving the needs of important consumer groups
Marketing provides inputs to strategic planners by helping identify attractive market opportunities and by assessing the firm's potential to take advantage of them. Within individual business units, marketing designs
strategies for reaching the unit's objectives. B.3.2. Marketing and the Other Business Functions
Marketing play an important role in delivering customer value and satisfaction.
However, marketing cannot do this alone. Because consumer value and satisfaction are
departments must work together to deliver superior value and satisfaction.
Marketing plays an integrative role to help ensure that all departments work together toward this goal.
DISCUSSING THE ISSUE
Using the product/market expansion grid, illustrate the process that a company can use to evaluate a portfolio. Pick an example for your
3rd Meeting
THE MARKETING PROCESS
A. THE MARKETING PROCESS
The process of (1) analyzing marketing opportunities; (2) selecting target markets; (3) developing the marketing mix; and (4) managing the
marketing effort.
Market segmentation
The process of dividing a market into distinct groups of buyers on the basis of needs, characteristics, or behavior who might require separate products or marketing mix.
Market targeting
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.
Formulating competitive positioning for a product and a detailed
The Four Ps of the Marketing Mix (Kotler & Armstrong, 1999)
Marketing analysis
The company must analyze its markets and marketing environment to find attractive opportunities and to avoid environmental threats. It must analyze company strengths and weaknesses, as well as current possible marketing actions to determine which opportunities it can pursue.
Marketing planning
It involves deciding on marketing strategies that will help the company attain its overall strategic objectives. A detailed marketing plan is needed for each business, product or brand.
Marketing implementation
The process that turns marketing plans into marketing actions in order to accomplish strategic-marketing objectives. Successful marketing
implementation depends on how well the company blends its people, organization structure, decision and reward systems, and company culture into a cohesive action program that supports its strategies.
Marketing control
Discussing the issue
DEVELOPING MARKETING OPPORTUNITIES AND STRATEGIES (Marketing Research and Information System)
