MARKETING

• Social Definition of Marketing


  Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others
• AMA Definition of Marketing


  Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals

  
• Kotler Definition of Marketing Management


  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

  
• Demand States

  • Needs
  • Wants
  • Demands
• Needs


  Basic Human Requirements
• Wants


  Directed at specific objects
• Demands


  Backed by ability to pay
• Marketing Concepts


  • Target Markets, Positioning & Segmentation
  • Offerings and Brands
  • Value & Satisfaction
  • Marketing Channel

  
• Offering


  Value Proposition made Tangible
• Brand


  Offering from a known source
• Value


  Benefits / Cost
• Customer Value Triad

  • Quality
  • Service
  • Price
• Satisfaction


  Product's perceived performance
• Marketing Channels


  • Communication Channel - Deliver & Receive message
  • Distribution Channel - Display, sell & Deliver
  • Service Channel - Carry out transactions
• Company Orientations

  • The Production Concept
  • The Product Concept
  • The Selling Concept
  • The Marketing Concept
• The Production Concept


  Consumers will prefer products that are widely available & Inexpensive, concentrate on achieving high production efficiency, low costs and mass distribution
• The Product Concept


  Consumers favor products that offer most quality, performance and innovative features, make superior products and improve them over time
• The Selling Concept


  Consumers, if left alone, wont buy enough of the organization's products, must undertake an aggressive selling and promotion effort, practiced most aggressively with unsought goods, aim is to sell what they make rather than make what the market wants
• The Marketing Concept


  Customer Centered instead of Product Centered, not to find right customers for your products, but to find right products for your customers, reactive market orientation - understanding and meeting customers' expressed needs, proactive market orientation - understanding and meeting customers' latent needs, total market orientation
• Marketing Tasks


  • Developing Marketing Strategies & Plan
  • Capturing Marketing Insights
  • Connecting with Customers
  • Building strong brands
  • Shaping the market offering
  • Delivering Value
  • Communicating Value
  • Creating Long-Term Growth

  
• Three V's Approach to Marketing

  • Define the value segment or customers and their needs
  • Define the value proposition
  • Define the value network
• Value Chain


  A tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product
• Core Business Processes


  • Market-sensing process
  • New-offering realization process
  • Customer acquisition process
  • Customer relationship management process
  • Fulfillment management process

  
• Competencies


  • A source of competitive advantage
  • Applications in a wide variety of markets
  • Difficult to imitate
• Holistic Marketing


  Sees itself as integrating the value exploration, value creation, and value delivery activities with the purpose of building long-term, mutually satisfying relationships and co-prosperity among key stakeholders

  
• Levels of a Marketing Plan


  • Strategic - Target marketing decisions, Value proposition, Analysis of marketing opportunities
  • Tactical - Product features, Promotion, Merchandising, Pricing, Sales channels, Service

  
• Corporate Headquarters' Planning Activities


  • Define the corporate mission
  • Establish strategic business units (SBUs)
  • Assign resources to each SBU
  • Assess growth opportunities
• Good Mission Statements


  • Focus on a limited number of goals
  • Stress major policies and values
  • Define major competitive spheres
  • Take a long-term view
  • Short, memorable, meaningful
• Dimensions that Define a Business

  • Customer groups
  • Customer needs
  • Technology
• 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 and profitability
• Corporate Culture


  The shared experiences, stories, beliefs, and norms that characterize an organization
• Categories of Marketing Alliances


  • Product or service alliance
  • Promotional alliance
  • Logistics alliances
  • Pricing collaborations
• Marketing Plan Contents
• Evaluating a Marketing Plan

  
• Marketing Information System (MIS)


  A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers

  
• Sources of Competitive Information


  • Independent customer goods and service review forums
  • Distributor or sales agent feedback sites
  • Combination sites offering customer reviews and expert opinions
  • Customer complaint sites
  • Public blogs
• Marketing Research


  Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company
• Types of Marketing Research Firms


  • Syndicated service
  • Custom
  • Specialty-line
• The Marketing Research Process


  • Define the problem
  • Develop research plan
  • Collect information
  • Analyze information
  • Present findings
  • Make decision
• Step 1: Define the Problem


  • Define the problem
  • Specify decision alternatives
  • State research objectives