MKT 1

• Marketing


  The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
• Marketing management


  The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value
• What is marketed


  • Goods
  • Services
  • Events
  • Experiences
  • Persons
  • Places
  • Properties
  • Organizations
  • Information
  • Ideas
• Marketer


  Someone who seeks a response—attention, a purchase, a vote, a donation—from another party
• Market


  Traditionally, 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 negotiate transactions that involve a particular product or product class
• Five basic markets


  • Resource markets
  • Manufacturer markets
  • Consumer markets
  • Intermediary goods markets
  • Government markets

  
• Marketers view industry as a group of sellers and use the term market to describe customer groups
• There are need markets, product markets, demographic markets, and geographic markets, as well as voter markets, labor markets, and donor markets
• New marketing realities


  The market forces that shape the relationships among the different market entities, the market outcomes that stem from the interplay of these forces, and the emergence of holistic marketing as an essential approach to succeeding in the rapidly evolving market
• Major market forces


  • Technology
  • Globalization
  • Physical environment
  • Social responsibility
• New consumer capabilities


  • Can use online resources as a powerful information and purchasing aid
  • Can search, communicate, and purchase on the move
  • Can tap into social media to share opinions and express loyalty
  • Can actively interact with companies
  • Can reject marketing they find inappropriate or annoying
  • Can extract more value from what they already own
• New company capabilities


  • Can use the internet as a powerful information and sales channel, including for individually differentiated goods
  • Can collect fuller and richer information about markets, customers, prospects, and competitors
  • Can reach customers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and information
  • Can improve purchasing, recruiting, training, and internal and external communications
  • Can improve cost efficiency
• New competitive environment


  • Deregulation
  • Privatization
  • Retail transformation
  • Disintermediation
  • Private labels
  • Mega-brands
• Holistic marketing


  An integrated approach to managing strategy and tactics, including relationship marketing, integrated marketing, internal marketing, and performance marketing
• Relationship marketing


  • Focused on building relationships, rather than on generating transactions
  • Aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business
• Key constituents for relationship marketing


  • Customers
  • Employees
  • Marketing partners (channels, suppliers, distributors, dealers, agencies)
  • Members of the financial community (shareholders, investors, analysts)
• Integrated marketing


  Coordinates all marketing activities and marketing programs and directs them toward creating, communicating, and delivering consistent value and a consistent message for consumers
• Internal marketing


  Reflects a strong corporate culture rather than disengaged employees
• Performance marketing


  Driven by science rather than intuition, and requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs
• Marketing concepts


  • Production concept
  • Product concept
  • Selling concept
  • Marketing concept
  • Market-value concept
• The production concept holds that consumers prefer products that are widely available and inexpensive
• The product concept proposes that consumers favor products offering the highest quality, the best performance, or innovative features
• The selling concept holds that consumers and businesses, if left alone, won't buy enough of the organization's products
• The marketing concept emerged in the mid-1950s as a customer-centered, sense-and-respond philosophy. The job of marketing is not to find the right customers for your products but to develop the right products for your customers
• The market-value concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies
• Organizational structures for marketing departments

  • Functional organization
  • Geographic organization
  • Product or brand organization
  • Market organization
  • Matrix organization
• The role of the CEO is to convince senior management of the importance of being customer focused, hire strong marketing talent, facilitate the creation of strong in-house marketing training programs, and appoint a chief marketing officer
• Role of the CMO

  Act as the visionary for the future of the company, build adaptive marketing capabilities, win the war for marketing talent, tighten the alignment with sales, take accountability for returns on marketing spending, and infuse a customer perspective in business decisions affecting any customer touch point
• The firm's success depends not only on how well each department performs its work, but also on how well the company coordinates departmental activities to conduct core business processes
• Departments marketers must work closely with

  • Customer insights and data analytics teams
  • Different communication agencies
  • Channel partners
• Characteristics of customer-centric organizations

  • Market driven rather than product driven
  • Customer focused rather than mass market focused
  • Outcome oriented rather than process oriented
  • Making competitors irrelevant rather than reacting to competitors
  • Value driven rather than price driven
  • Teamwork rather than hierarchical organization