Marketing

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
organization and its stakeholders.
1-2

What is 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.
1-3

What is Marketed?

Goods
Services
Events
Experiences
Persons

1-4

Places
Properties
Organizations
Information
Ideas

Demand States

Negative
Nonexistent
Latent
Declining

1-5

Irregular
Unwholesome
Full
Overfull

Key Customer Markets

Consumer markets
Business markets
Global markets
Nonprofit/Government markets

1-6

Company Orientations

Production
Product
Selling
Marketing

1-7

Marketing Mix and the

Customer
Four Ps
Product
Price
Place
Promotion

Four Cs
Customer
solution
Customer cost
Convenience
Communication

1-8

Core Concepts
Needs, wants, and
demands
Target markets,
positioning,
segmentation
Offerings and
brands
Value and
satisfaction
1-9

Marketing
channels
Supply chain
Competition
Marketing
environment
Marketing
planning

I want it, I need it..

5 Types of Needs
Stated needs
Real needs
Unstated needs
Delight needs
Secret needs

1-10

Benchmarks

Organizational
costs
and
performance
measures

Competitor
costs
and
performance
measures

2-11

Levels of a Marketing Plan

Strategic
Target marketing
decisions
Value proposition
Analysis of
marketing
opportunities

Tactical

2-12

Product features
Promotion
Merchandising
Pricing
Sales channels
Service

Marketing Plan Contents

Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls

2-13

Evaluating a Marketing Plan

Is the plan simple?

Is the plan specific?
Is the plan realistic?
Is the plan complete?

2-14

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
Collect customer feedback online
3-15

Product and Service Quality

Quality is the totality of features and
characteristics of a product or
service that bear on its
ability to satisfy
stated or implied needs.

5-16

CRM Strategies

Reduce rate of defection

Increase longevity
Enhance share of wallet
Terminate low-profit customers
Focus more effort on high-profit
customers

5-17

Characteristics of Business
Markets
Fewer, larger
buyers
Close suppliercustomer
relationships
Professional
purchasing
Many buying
influences
Multiple sales calls

Derived demand
Inelastic demand
Fluctuating
demand
Geographically
concentrated
buyers
Direct purchasing

7-18

Handling Price-Oriented
Customers

Limit quantity purchased

Allow no refunds
Make no adjustments
Provide no services

7-19

Desirable Outcomes of a B2B

transaction: OTIFNE
On time
In full
No error

7-20

Segmenting Consumer
Markets

Geographic
Demographic
Psychographic
Behavioral

8-21

Demographic Segmentation

Age and Life Cycle

Life Stage
Gender
Income
Generation
Social Class

8-22

Synonyms for Price

Rent
Tuition
Fee
Fare
Rate
Toll
Premium
Honorarium

14-23

Special assessment
Bribe
Dues
Salary
Commission
Wage
Tax

Steps in Setting Price

Select the price objective

Determine demand
Estimate costs
Analyze competitor price mix
Select pricing method
Select final price

14-24

Step 1: Selecting the Pricing

Objective

Survival
Maximum current profit
Maximum market share
Maximum market skimming
Product-quality leadership

14-25

Step 2: Determining
Demand
Price sensitivity
Estimating demand curves
Price elasticity of demand

14-26

Step 3: Estimating Costs

Types of Costs
Accumulated Production
Activity-Based Cost Accounting
Target Costing

14-27

Cost Terms and Production

Fixed costs
Variable costs
Total costs
Average cost
Cost at different levels of production

14-28

Step 5: Selecting a Pricing

Method

Markup pricing
Target-return pricing
Perceived-value pricing
Value pricing
Going-rate pricing
Auction-type pricing

14-29

Step 6: Selecting the Final

Price

Impact of other marketing activities

Company pricing policies
Gain-and-risk sharing pricing
Impact of price on other parties

14-30

Transportation Factors

Speed
Frequency
Dependability
Capability
Availability
Traceability
Cost
16-31

Marketing Communications

The means by which firms attempt to

inform, persuade, and remind
consumers, directly or indirectly, about
the products and brands they sell.

17-32

Table 17.1 Communication

Platforms
Advertising
Print and broadcast
ads
Packaging inserts
Motion pictures
Brochures and
booklets
Posters
Billboards
POP displays
Logos

Sales Promotion
Contests, games,
sweepstakes
Premiums
Sampling
Trade shows, exhibits
Coupons
Rebates
Entertainment
Continuity programs
17-33

Table 17.1 Communication

Platforms
Events/ Experiences
Sports
Entertainment
Festivals
Arts
Causes
Factory tours
Company museums
Street activities

Public Relations
Press kits
Speeches
Seminars
Annual reports
Charitable donations
Publications
Community relations
Lobbying
17-34

Table 17.1 Communication

Platforms
Personal Selling
Sales presentations
Sales meetings
Incentive programs
Samples
Fairs and trade shows

Direct Marketing
Catalogs
Mailings
Telemarketing
Electronic shopping
TV shopping
Fax mail
E-mail
Voice mail

17-35

Sales Tasks

Prospecting
Targeting
Communicating
Selling
Servicing
Information gathering
Allocating
19-36