final bible - marketing

8/13/2019 Final Bible - Marketing

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The marketing manager/s aim is to find, attract, keep, and grow targetcustomers by creating, delivering, and communicating superiorcustomer value.

To design a winning marketing strategy, the marketing manager must

answer 0 important 1uestions2a. %hat/s our target market3 (%hat customers to serve3By Market )egmentation and Target Marketing.

b. %hat/s our value proposition3 (4ow to serve best34ow the company will differentiate and position itself in themarketplace3

5 Concepts for Marketing Strategy:a. #roduction Concept 2 &mproving production - distribution

efficiency. 5eads to Marketing Myopia.b. #roduct Concept 2 6ocus on continuous product

improvements.c. )elling Concept 2 6ocus on creating sales transaction.

&$)&!*"'Td. Marketing Concept 2 !epend on knowing the needs and

wants of target markets and delivering desired satisfaction.'T)&!*"&$

Customer-Driving Marketing2 understand customer needs better thanthemselves.

e. )ocietal Marketing Concept 2 !eliver value in a way thatmaintains or improves both the customer/s and the society/swell being

4. PREPARING AN INTEGRATED MARKETING PLAN ANDPROGRAM

To deliver intended value to target customers via Marketing Mi+.

Marketing Mix: 4P2 #roduct, #rice, #lace and #romotion.

5. BUILDING CUSTOMER RELATIONSHIPS

Customer Relationship Management (CRM2 By delivering superior

customer value and satisfaction.

Relationsip !uilding !locks2 Customer #erceived Value and)atisfaction( via #erceived #erformance2 !eliver more thane+pected7promised.


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Customer Relationsip "evels and #ools: 5ow margin

customers!evelop Basic Relationships, 4igh marginCreate 6ullpartnership.

Club Marketing #rogramMemberships with special benefits andcreate community with financial and social benefits.

Canging $ature of Customer Relationsips2a. Relating with more carefully selected customers, (via )elective

Relationship Managementb. Relating for the long term, (via Retaining Customersc. Relating directly. ()ell products outside the store, via phone, mail

orders, online

Partner Relationsip Management2 &nside and 'utside the 6irm.

. CAPTURING VALUE FROM CUSTOMERS

&n the form of current and future sales, market shares and profits.

%utcome of Customer &alue:a. Customer 5oyalty and Retention,b. )hare of Market and Customer,c. Customer *1uity2 Total combined customer lifetime values of all

of the company/s customers. Via Building the Right Relationshipswith the Right Customers.

)trangers (5ow, )hort, Barnacles (5ow, 5ong, Butterflies (4igh, )hort,True 6riends(4igh, 5ong.

!. THE NEW MARKETING LANDSCAPE

4 Ma'or Developments:a. The $ew !igital 8ge,

Booming in computer, telecommunication, information and others hascreated e+citing new ways to learn about and track customers and tocreate products and services tailored to individual customer needs.

b. Rapid lobali9ation,Marketers are connected globally with customers and partners henceincreases global competition.

c. The Call for More *thics and )ocial Responsibility,d. The rowth in $on 6or #rofit Marketing,

Marketing has become a ma:or part of strategies in colleges, hospitals,museums, 9oos and churches.

CHAPTER 2 COMPANY AND MARKETING STRATEGY:PARTNERING TO BUILD CUSTOMER RELATIONSHIPS


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1. COMPANYWIDE STRATEGIC PLANNING: DEFININGMARKETING"S ROLE

Strategic Planning2 The process of developing and maintainingstrategic fit between the organi9ation/s goals and capabilities and its

changing marketing opportunities.

Steps in Strategic Planning:a. !efining a Market"'riented Mission,

Clear and )M8RT )atisfying basic customer needs.

b. )etting Company 'b:ectives and oals,

c. !esigning the Business #ortfolio,

The collection of businesses and products that make up a company must fit the company/s strengths and weaknesses to opportunities in

the environment.0 )teps2 8naly9e current portfolio and )hape future portfolio.

rowth )hare Matri+2 )tars, Cash Cows, ;uestion Marks, or !ogs. (6orevaluating company/s )B

#roduct7Market *+pansion rid2 Market #enetration, #roduct!evelopment, Market !evelopment, !iversification. (6or identifyingcompany growth opportunities

d. #lanning Marketing and other 6unctional )trategies.

2. PLANNING MARKETING: PARTNERING TO BUILDCUSTOMER RELATIONSHIPS

Marketing(s key roles in Strategic Planning:

a. Marketing provides a guiding philosophy (Marketing Concept Building profitable relationships.

b. Marketing provides inputs to strategic planners by helping toidentify attractive market opportunities and by assessing thefirm/s potential to take advantage of them.

#artnering with 'ther Company !epartment and with 'thers in theMarketing )ystem.

3. MARKETING STRATEGY AND MARKETING MI#

Customer Driven Marketing Strategy:a. Market )egmentation, via eographic, !emographic,

#sychographic, or Behavior 6actors.


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b. Market Targeting,c. Market !ifferentiation and #ositioning.

4. MANAGING THE MARKETING EFFORT

Managing the marketing process re1uires the < marketingmanagement functions2

a. Marketing 8nalysis, via )%'T T'%)b. Marketing #lanning,(!eciding on Marketing )trategiesc. Marketing &mplementation, (#lan to 8ctiond. Marketing Control. (Measuring and Corrective 8ction

CHAPTER 3 THE MARKETING ENVIRONMENT

Marketing environment2 The actors and forces outside marketing that$%%&'( )$*+&(, )$$&)&("/ $0,,( ( 0, $ )$,($,

/''&//% *&$(,/6,7/with target customers.

Collecting information via Marketing Research and Marketing&ntelligence.

M,'*&8,*)&(:The actors close to the company that affect itsability to serve its customers = the company, suppliers, marketingintermediaries, customer markets, competitors and public.

M$'*&8,*)&(:The larger societal forces that affect themicroenvironment = demographic, economic, natural, technological,

political, and cultural forces.

1. THE COMPANY"S MICROENVIRONMENT

8ctors in microenvironment2$. T6& C)7$2 Top management, finance, R-!, purchasing,

operations and accounting0. S77,&*/2

a. #rovide resources,b. )upply 8vailability,c. >ey &nput #rice Trends,

'. M$*+&(, I(&*)&,$*,&/:a. #romote, sell, distribute product to final buyers,b. Resellers, #hysical distribution firms, marketing service

agencies, financial intermediaries,

d. C/()&*/? Customer Markets2a. Consumer markets2 individuals7householdsb. Business markets2 for productionc. Reseller markets2 to resell at a profit


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i. )hortage of raw materialsii. &ncreased populationiii. &ncreased government intervention in natural

resource management. T&'6,'$ %*'&/

a. Create new markets and opportunities&. P,(,'$ %*'&/a. 5aws, government agencies, pressure groups0. T*&/:

i. 5egislation regulating business. &ncreased legislation0. Changing government agency enforcement

ii. &ncreased emphasis on ethics and sociallyresponsible actions

. )ocially responsible behavior0. Cause related marketing

%. C(*$ %*'&/a. #ersistence of cultural valuesb. )hifts in secondary cultural values

i. #eople view of themselvesii. #eople view of othersiii. #eople view of organi9ationsiv. #eople view of societyv. #eople view of naturevi. #eople view of the universe

3. RESPONDING TO THE MARKET ENVIRONMENT

Marketing management can not always control environmental forces.&n many cases, it must settle for simply watching and reacting to theenvironment. 'r they can take proactive stance, working to change theenvironment rather than simply reacting to it. %henever possible,companies should try to be proactive rather than reactive.

CHAPTER 4 MANAGING MARKETING INFORMATION

1. E97$, (6& ,)7*($'& % ,%*)$(, ( (6& ')7$ $,(/ &*/($, % (6& )$*+&(7$'&.

The marketing process starts with a complete understanding of themarket place and consumer needs and wants. Thus the companyneeds sound information in order to produce superior value andsatisfaction for customers. The company also re1uires information oncompetitors, resellers and other actors and forces in the marketplace.&ncreasingly, marketers are viewing information not only as an input


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for making better decisions but also as an important strategic assetand marketing tool.

2. D&%,& (6& )$*+&(, ,%*)$(, //(&) $ ,/'// ,(/7$*(/.

M&) consists of people, e1uipment, and procedures to gather, sort,analy9e, evaluate and distribute needed, timely, and accurateinformation to marketing decision makers. 8 well"designed informationsystem begins and ends with users.

M&) first assess information needs. &t primarily serves thecompany/s marketing and other managers, but it may alsoprovide information to e+ternal partners.

M&) develops information from internal database, marketing

intelligence activities and marketing research,

&nternal database provide information on the company/s ownoperations and departments.

Marketing intelligence activities supply everyday information

about competitors and developments in the e+ternal marketingenvironment.

Market research consists of collecting information relevant to a

specific marketing problem.

M&) then distributes information gathered from these sources to

the right managers in the right form and at the right time.

3. O(,& (6& /(&7/ , (6& )$*+&(, *&/&$*'6 7*'&//.

!efining the problem and setting the research ob:ectives,

o *+ploratory research2 help define problems and suggest

hypotheses,o !escriptive research2 better describe marketing problems,

o Causal research2 test hypotheses about cause"and"effect

relationship.

!eveloping a research plan for collecting data from primary and

secondary sources,

&mplementing the market research plan by gathering, processing

and analy9ing the information, &nterpreting and reporting the findings.

Both internal and e+ternal secondary data sources often provideinformation more 1uickly and at a lower cost than primary data sourceand they can sometimes yield information that a company cannot


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collect by itself. 4owever, needed information might not e+ist insecondary sources.

Researchers must ensure that secondary information is 8ccurate,Relevant, Current and &mpartial. #rimary data collection method =

'bservational, )urvey and *+perimental. #rimary research contactmethod = Mail, Telephone, #ersonal &nterview and online.

4. E97$, 6 ')7$,&/ $$;& $ ,/(*,0(& )$*+&(,,%*)$(,.

&nformation gathered in the internal databases and through marketingintelligence and market research usually re1uires more analysis. Thismay include advanced statistical analysis or the application ofanalytical models that will help marketers make better decisions. To

analy9e individual customer data, companies use CRM = CustomerRelationship Management.

Marketing information has no value until it is used to make bettermarketing decisions. Thus it must be made available by providingregular updates and reports, making non routine information availablefor special situation and on the spot decisions. Many firms usecompany intranets and e+tranets to facilitate this process.

5. D,/'// (6& /7&',$ ,//&/ /)& )$*+&(, *&/&$*'6&*/%$'&< ,', 70,' 7,' $ &(6,'/ ,//&/.

)ome marketers face special marketing research situations, such asthose conducting research in small business, nonprofit, or internationalsituations. Marketing research can be conducted effectively withlimited budgets. &nternational marketing researchers follow the samesteps as domestic researchers but often face more and differentproblems. 8ll organi9ations need to respond responsibly to ma:orpublic policy and ethical issues surrounding marketing research,including issues of intrusions on consumer privacy and misuse ofresearch findings.

CHAPTER 5 CONSUMER MARKETS AND CONSUMER BUYERBEHAVIOR

1. D&%,& (6& '/)&* )$*+&( $ '/(*'( $ /,)7& )&% '/)&* 0&* 0&6$8,*.

The consumer market consists of all the individuals and householdswho buy or ac1uire goods and services for personal consumption. The


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simplest model of consumer buyer behavior is the stimulus"responsemodel. 8ccording to this model, marketing stimuli (


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%hen making a purchase, the buyer goes through a decision processconsisting of need recognition, information search, evaluation ofalternatives, purchase decision and post purchase behavior. Themarketer/s :ob is to understand the buyer behavior at each stage andthe influences that are operating.

4. D&/'*,0& (6& $7(, $ ,%%/, 7*'&// %* &7*'(/.

The product adoption process is comprised of ? stages2 8wareness,&nterest, *valuation, Trial and 8doption.

&nitially, the consumer must become aware of the new product.8wareness leads to interest, and the consumer seeks informationabout the new product. 'nce information has been gathered, theconsumer enters the evaluation stage and considers buying the new

product. $e+t in the trial stage, the consumer tries the product on asmall scale to improve the estimate of its value. &f the consumer issatisfied with the product, he or she enters the adoption stage,deciding to use the new product fully and regularly.

%ith regard to the diffusion of new products, consumers respond atdifferent rates, depending on the consumer/s characteristics and theproduct/s characteristics. Consumer may be innovators, early adopters,early ma:ority, late ma:ority or laggards.

&nnovators are willing to try risky new ideas.

*arly adopters accept new ideas early but carefully = 'pinion

5eaders. *arly ma:ority decide deliberately to try new ideas, doing so

before the average person does.

5ate ma:ority try an innovation only after a ma:ority of people

have adopted it.

5aggards adopt an innovation only after it has become atradition itself.

Manufacturers try to bring their new products to the attention ofpotential early adopters especially those who are opinion leaders.

CHAPTER BUSINESS MARKETS AND BUSINESS BUYERBEHAVIOR

1. D&%,& (6& 0/,&// )$*+&( $ &97$, 6 0/,&//)$*+&(/ ,%%&* %*) '/)&* )$*+&(.

Business buyer behavior refers to buying behavior of the organi9ationsthat buy goods and services for use in the production of other products


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and services that are sold, rented, or supplied to others. &t alsoincludes the behavior of retailing and wholesaling firms that ac1uiregoods for the purpose of reselling or renting them to others at a profit.

8s compared to consumer markets, business markets usually have

fewer, larger buyers who are more geographically concentrated.Business demand is derived, largely inelastic, and more fluctuating.More buyers are usually involved in the business buying decisionprocess, and business buyers are better trained and more professionalthan are consumer buyers. &n general, general purchasing decisionsare more comple+, and the buying process is more formal thanconsumer buying.

2. I&(,% (6& )$=*/ (6$( ,%&'& 0/,&// 0&* 0&6$8,*.

Business buyers make decisions that vary with the H types of buying

decisions2 )traight rebuys, Modified rebuys, and $ews tasks. )traight rebuy2 buyer routinely reorders something without any

modification,

Modified rebuy2 buyer modifies product specifications, prices,

terms, or suppliers,

$ew task2 buyer purchases a product or service for the first time.The decision making unit of a buying organi9ation = the buying center =can consist of many different roles. The business marketer needs toknow the following2 %ho are the ma:or buying center participants3 &nwhat decisions do they e+ercise influence and to what degree3 %hatevaluation criteria does each decision participant use3 The business

marketer also needs to understand the ma:or environmental,organi9ational, interpersonal, and individual influences on the buyingprocess.Ma:or influences on business buyer behavior2

*nvironmental factors,

'rgani9ational factors,

&nterpersonal factors,

&ndividual factors.

3. L,/( $ &%,& (6& /(&7/ , 0/,&// 0, &',/,

7*'&//.

The business buying decision process itself can be 1uite involved, withA basic stages2

#roblem recognition2 recogni9e a problem7need that can be met

by ac1uiring a good or a service,

eneral need description2 describes the general characteristics -

1uantity of a needed item,


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#roduct specification2 decides on and specifies the best technicalproduct characteristics for a needed item,

)upplier search2 tries to find the best vendors,

#roposal solicitation2 invites 1ualified suppliers to submitproposals,

)upplier selection2 reviews proposals and selects a supplier, 'rder routine specification2 writes the final order with the chosen

supplier,

#erformance review2 assesses the performance of the supplier.

Buyers who face a new task buying situation usually go through allstages of the buying process. Buyers making modified or straightrebuys may skip some of the stages. Companies must manage theoverall customer relationship, which often includes many differentbuying decisions in various stages of the buying decision process.

Recent advances in information technology have given birth to e"procurement by which business buyers are purchasing all kinds ofproducts and services online. The internet gives business buyersaccess to new suppliers, lower purchasing costs, and hastens orderprocessing and delivery. 4owever, e"procurement can also erodecustomer"supplier relationships and create potential security problems.)till, business marketers are increasingly connecting with customersonline to share marketing information, sell products and services,provide customer support services, and maintain ongoing customerrelationships.

4. C)7$*& (6& ,/(,((,$ $ 8&*)&( )$*+&(/ $&97$, 6 ,/(,((,$ $ 8&*)&( 0&*/ )$+& (6&,*0, &',/,/.

The institutional market consists of schools, hospitals, prisons, andother institutions that provide goods and services to people in theircare. These markets are characteri9ed by low budgets and captivepatrons. The government market, which is vast, consists ofgovernment units = federal, state, and local = that purchase or rentgoods and services for carrying out the main functions of government.

overnment buyers purchase products and services for defense,education, public welfare, and other public needs. overnment buyingpractices are highly speciali9ed and specified, with opening bidding ornegotiated contracts characteri9ing most of the buying. overnmentbuyers operate under the watchful eye of Congress and many privatewatchdog groups. 4ence, they tend to re1uire more forms and


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signatures to respond more slowly and deliberately when placingorders.

CHAPTER ! CUSTOMER-DRIVEN MARKETING STRATEGY:CREATING VALUE FOR TARGET CUSTOMERS

1. D&%,& (6& )$=* /(&7/ , &/,, $ '/()&*-*,8&)$*+&(, /(*$(&: )$*+&( /&)&($(,< ($*&(,iosk marketing

'nline marketing

3. E97$, 6 ')7$,&/ 6$8& *&/7& ( (6& I(&*&( $(6&* 7&*% & (&'6,&/ ,(6 ,& )$*+&(,.

'nline marketing is the fastest growing form of direct marketing. The

internet enables consumers and companies to access and share hugeamounts of information. &t creates value for customers and buildscustomers relationships.

4. D,/'// 6 ')7$,&/ $0( ''(, ,&)$*+&(, ( 7*%,($0 &,8&* )*& 8$& ( '/()&*/.

Creating a website

#lacing ads and promotions online

)etting up and participating in web communities

sing online e"mails

Types of online marketers2

Click only versus click and mortar marketers

Click only companies

Click and mortar companies


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5. O8&*8,& (6& 70,' 7,' $ &(6,'$ ,//&/ 7*&/&(& 0,*&'( )$*+&(,.

The aggressive and sometimes shady tactics of a few direct marketerscan bother or harm consumers, giving the entire industry a black eye.

8buses range from simple e+cesses that irritate consumers toinstances of unfair practices or even outright deception and fraud. Thedirect marketing industry has also faced growing concerns aboutinvasion of privacy and internet security issues.

CHAPTER 1 THE GLOBAL MARKET PLACE

1. D,/'// 6 (6& ,(&*$(,$ (*$& //(&) $ (6&&'),'< 7,(,'$-&$< $ '(*$ &8,*)&(/ $%%&'( $')7$"/ ,(&*$(,$ )$*+&(, &',/,/.

To decide whether it wants to go abroad and consider the potentialrisks and benefits, deciding on the volume of international sales itwants, how many countries it wants to market in, and which specificmarkets it wants to enter. This decision calls for weighing the probablerate of return on investment against the level of risk.

2. D&/'*,0& 3 +& $77*$'6&/ ( &(&*, ,(&*$(,$)$*+&(/.

*+porting,

Ioint venturing2 :oining with foreign companies to produce or

market a product or service, !irect investment or licensing2 by contracting with a licensee in

the foreign market.

3. E97$, 6 ')7$,&/ $$7( (6&,* )$*+&(, ),9&/ %*,(&*$(,$ )$*+&(/.

8dapted marketing mi+2 ad:usts the marketing mi+ to each

target market,

)tandardi9ed marketing mi+

4. I&(,% (6& 3 )$=* %*)/ % ,(&*$(,$ )$*+&(,*$,;$(,.

*+port department

&nternational division

lobal organi9ation


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CHAPTER 2 MARKETING ETHICS AND SOCIAL RESPONSIBILITY

1. I&(,% (6& )$=* /',$ '*,(,',/) % )$*+&(,.

&mpact on individual consumer2 high prices, deceptive prices,

high"pressure selling, unsafe products, poor services, &mpact on society2 creating false wants and too much

materialism, too few social goods, cultural pollution, politicalpower,

&mpact on other businesses2 harming competitors, reducingcompetition, unfair competitive marketing practices.

2. D&%,& '/)&*,/) $ &8,*)&($,/) $ &97$, 6(6& $%%&'( )$*+&(, /(*$(&,&/.

Consumerism intended to strengthen the rights and power of

consumers relative to sellers. 8lert marketers view it as an opportunityto serve consumers better by providing more consumer information,education and protection.

*nvironmentalism minimi9es the harm done to the environment and1uality of life by marketing practices. Companies now are adoptingpolicies of environmental sustainability = developing strategies thatboth sustain the environment and produce profits for the company.

3. D&/'*,0& (6& 7*,',7&/ % /',$ *&/7/,0& )$*+&(,.

*nlightened marketing2 support the best long"run performance of themarketing system2

Consumer"oriented marketing

Customer value marketing

&nnovative marketing

)ense of mission marketing

)ocietal marketing

final bible - marketing

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