marketing

2

a framework for mktg mgmt

3

topics for midterm exam

contextconsumer

competitioncompany

placeprice

promotionproduct

segment > target >position

profits + payoffs

contextconsumer

competitioncompany

contextconsumer

competitioncompany

placeprice

promotionproduct

placeprice

promotionproduct

segment > target >position

profits + payoffs

marketing: 4C STP 4P $

contextconsumer

competitioncompany

placeprice

promotionproduct

segment > target >position

profits + payoffs

contextconsumer

competitioncompany

contextconsumer

competitioncompany

placeprice

promotionproduct

placeprice

promotionproduct

segment > target >position

profits + payoffs

marketing: 4C STP 4P $

situation

strategy

specifics

success

4

C1: defining marketing

A. marketing today1. industrial age vs information age

“cards” “chess”

2. make a market, take a market (blue-ocean) (red-ocean)

5

1: the new economy

A. the digital revolution 1.consumers2.companies

B. information age vs industrial age1.recognize potential quickly

2.marketing: “meeting needs profitably”

6

2. marketing tasks

A. radical marketingB. decisions marketers makeC. scope of marketingD. marketing concepts and tasksE. defining marketing

A social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and

exchanging products of value with others

7

2. marketing tasks

F. core marketing concepts1.target markets, segmentation2.marketplace, marketspace, metamarket 3.marketers, prospects 4.needs, wants, demands5.product, offering6.value, satisfaction7.exchange, transaction

8

2. marketing tasks

F. core marketing concepts8. relationships and networks9. channels10. supply chain 11. competition

brand, industry, form, generic12. marketing environment13. marketing program

9

3. company orientations

A. production conceptB. product conceptC. marketing conceptD. integrated marketingE. profitabilityF. internal marketingG. customer conceptH. societal marketing concept

10

4. how businesses…changing

A.major forcesmore wants, more brands, stores hurt

B.company responsesreengineering, outsourcing, ecommerce, benchmarking, alliances

C.marketer responsesrelationship mktg, lifetime value, cust-share, target-mktg, individualized, databases, integrated mktg, channel partnerships, everone is marketer, fact-based decision

11

C2:adapting marketing

A. optimizing effort1. response curves

2. equate marginal returns for all efforts

saturation

threshold

RESPONSE

EFFORT

Marginal Response$1

12

5. in…the new economy

A. hybrid economyB. different activities

subcontract, keep core, benchmark, partner, multi-func., new advantages, intangibles, information, consumer groups vs products

C. old vs new economyrelationships, information

13

6. major drivers of the n.eco

A. tech’y, globalization, deregulationB. specific drivers- digitalization and connectivity - disintermediation and reintermediation - customization and customerization - industry convergence - industry boundaries are blurring rapidly - there are several examples of this- new opportunities at the intersection

14

7. business practices… change

A. old economy business beliefs B. new economy business beliefsC. the new hybrid

15

7. business practices… change

Old Economy New Economy

Organize by product unitsFocus on profitable transactions

Look mostly at financial scorecardFocus on shareholders

Marketing does the marketingBuild brands through advertising

Focus: customer acquisition

No customer satisfaction measurement

Overpromise, underdeliver

Organize by customer segmentsFocus on customer lifetime valueLook also at marketing scorecardFocus on stakeholdersEveryone does the marketingBuild brands through behaviorFocus: customer retention / growthMeasure customer satisfaction and retention rateUnderpromise, overdeliver

16

8. marketing…change

A. e-business, e-commerce, e-purchasing, e-marketing

B. b2b, b2c, c2c, c2b, search enginesC. why did dot-coms fail?

17

9. setting up websites

A.move to emarketing, epurchasingB.design an attractive sitecontext, content, community, customization, communication, connection, commerce

C.build a revenue, profit modeladvertising, sponsorship, alliance, membership, profile, sales, transactions, research/info, referral

18

10. CRM

A. CRM & database marketing- realtime service- customize- reduce defections- inc. longevity- inc. share of wallet- improve/terminate low-profit customers- focus on high value customers

19

10. CRM

Mass Marketing One-to-One Marketing

Average customer Individual customer

Customer anonymity Customer profile

Standard product Customized market offering

Mass production Customized production

Mass distribution Individualized distribution

Mass advertising Individualized message

Mass promotion Individualized incentives

One-way message Two-way messages

Economies of scale Economies of scope

Share of market Share of customer

All customers Profitable customers

Customer attraction Customer retention

20

10. CRM

B. data warehouses & data mining- capture information at all touchpoints- use the database- downside

high investment, not everyone usesnot everyone want relationships

- privacy/security concerns

21

C3:value, satisfaction,…

A. there can be no satisfaction!1. affect? behavior? cognition?2. just use loyalty? referral?

B. value maps1. perceived performance, cost2. fair value line

22

C3:value, satisfaction,…performance’

price’

FAIR

VALU

E LI

NELX

XJ

RR

FF

MB

23

11. define value, satisfaction

A. perceived valueperceived performance, cost

B. customer satisfactionexpectation, value proposition, experience

24

12. high performance…

A. stakeholdersB. processesC. resourcesD. culture

1. profits2. patrons3. process

resources4. people

balanced scorecard

25

13. delivering value

A. value chain

B. value delivery network (supply chain)

26

14. attract/retain customers

A. attract customersB. cost of lost customersC. retain customersD. use CRM, build equity

value, brand, relationship equitybasic>reactive>accountable>

proactive> partnership

E. strengthen bondsfinancial, social, structural

27

16. implement TQM

A. measure

15. customer profitability

A. measure

28

C4: strategic planning

not=

random sample

control groupbehavior

treatment groupbehavior

=

treatment

control group treatment group=

population

• if behaviors are unequal, cause is “treatment”, when control group and treatment group are exactly alike

• how can you build strategy if you don’t know causes?

29

17. 3 key areas, 4 levels

A. key areasbusiness as investmentsassessment of growth, compet’nstrategy for each business (unit)

B. organizational levelscorporate, division, unit, product

C. marketing plansituation, strategy, specifix, success

30

18. corporate/division plans

A. missionus? them? value? will, should be?

B. organize business unitsgroups, needs, technologyunique, competitor/profit variables

C. BCG: ??, **, $$, xxD. GE modelE. intensive, integrative, diversificat’n

growth

31

18C,18D: corp./div. plans

hi-share lo-share

growingmarket

stagnantmarket

stars ???

$cow dogs

hi med lo

hi protect invest build

med build manage harvest

lo refocus manage divest

business strength

marketattractiveness

bcg

ge

32

18E. corp./div. plans integrative growth

backward, horizontal, forward intensive growth

market penetration, market development,product development

diversification growth concentric, horizontal, conglomerate

old mkt sim mkt new mkt

old prod mkt pen mkt exp mkt dev

sim tech tech exp biz exp conc div

new prod prod dev hor div cong div

33

19. business str’gic planningA. mission B. SWOT - internal, external environmentsC. goals - priorities, specific, realistic, goodD. strategy

1. low cost, differentiate, focus2. is operational effectiveness sufficient?3. strategic & marketing alliances

E. program formulation & implementationF. feedback/control

1. change happens, effectiveness vs. efficiency

34

20. the marketing process

A. The Value-Delivery Sequence B. Steps in the Marketing Process C. Product Planning: The Contents of a Marketing Plan: 1.Executive Summary and Table of Contents2.Current Marketing Situation [4C]3.Opportunity & Issue Analysis [SWOT+Issues]4.Objectives (Financial, Marketing) [$’]5.Marketing Strategy [STP]6.Action Programs [4P]7.Financial Projections [$]8.Controls

35

21. managing the process

A. organize the departmentfunctional, geographic, productmarket, product-market, corporate-divisional, global

B. build a marketing orientationC. creativityD. implementationE. evaluation/control

annual, profit, efficiency, strategic

36

C5: markets, demand, envtX. reliability

consistencyY. measure many times

1.multiple-item scales2.statistical analysese.g., correlationamong items

X. validity accuracy, correctness

Y. check for validity1. face/content validity does it look right?

2.concurrent validity does it relate to what it should relate to?

3. discriminant validity does it tell different groups apart?

4. predictive validity what is its track record?

valid reliable

valid & reliable

37

22. what to watch?

A. wants, preferences, behaviorsB. shifts, non-price competition, techC. info needs changing

38

23. information, intelligence

** more info ~ more better (MIS)** input, intel. ~ info ~ insightA. internal recordsB. marketing intelligenceC. marketing research

systematic, suppliers, steps:define, design, gather data, analyze, present use

D. mktg decision support systems

39

24. forecast demand

A. which market?potential, available, served, penetrated

B. demand measurementdemand, minimum & potential

C. company demandD. estimate current demandE. estimate future demand

macro, micro, methods

40

25. macro environment

A. trend spottingB. demographicsC. economyD. naturalE. technologicalF. political/legalG. social culturalH. shifts of secondary values

41

C6: analyze consumers

X. are you a computer?Y. Rb is not the same as Ra

Rb reasons before Ra reasons after

Z. everyone escalates: reactance, consistency+closure, framing: unanticipated discoveries, hunger?

purchasetime

42

26. how/why you buy

A. cultural factors cultures, sub-cultures, social class

B. social factors reference groups: membership, opinion leader, family of origin and procreation, roles/status

C. personal factors1. age, lifecycle, family lifecycle, 2. occupation and economic situation3. lifestyle, psychographics (VALS) 4. personality, brand personality, self-concept

sincerity, excitement, competence, sophistication, ruggedness

43

26. how/why you buy

D. psychological factors1. motivation

: Freud: sex sells ?!, laddering: Maslow: hierarchy of needs:

actualization, belonging, competence: Herzberg: satisfiers (become) dis-satisfiers

2. perception: selective attention, selective distortion,

selective retention

3. learning4. beliefs and attitudes

44

27. buying decision process

A. buying roles (initiate, influence…B. buying behaviors [involve, diff.s

complex, dissonance, [hh, hlvariety seeking, habitual [lh, ll

C. stagesproblem recognition ~ search ~ DMMevaluation ~ purchase ~ post-purchase

D. customer satisfactionmeasure, reduce complains

45

DMM decision-making-matrix

memory graphics speedweights > 4 5 5 totals

IBM 3 3 5 52

Dell 4 4 3 51

Compaq 3 4 5 57

HP 4 4 4 56

• redesign the computer

• change beliefs about us

• change beliefs about them

• change weights

• highlight neglected criteria

• shift the buyer’s ideals

pages: 206-207

46

C7: analyze customers

Y. is business entertainment ethical?Z. international business decisions?

become same? more different?

47

28. organizational buying

A. consumers v customersfewer, bigger, professional buyersinelastic, fluctuating, derived demand

B. specialized marketsinstitutional, government

C. business buying situationsstraight rebuy…new tasksystems buying & selling

48

29. participants in b.buying

buying center: initiators, users…A. major influence

envt, orgzn, interpersonal, indiv.B. cultural influence

different customsbecome same? more different?

49

30. purchasing process

A. problem recognitionB. need description, specificationsC. supplier searchD. proposal solicitationE. supplier selectionF. order routine specificationG. performance review

50

C8: dealing with competition

A. brand vs. form competition1.what do you choose first:

brand or form?2.brand share vs. form share?

brand compleave?lo

defendform comphi

hilo

form share

brand share

51

C8: dealing with competition form-first vs brand-first

insurance

agent web 1-800

insurance

AllstateStateFarm Progressive

agent agent1-800 web

State FarmState FarmAllstate

Progressive

Allstate? Allstate? web?1-800?

52

31. competitive markets

A. market attractiveness (5forcesB. identify competitors

brand, industry, form, generic

C. industry concept of competition#sellers/buyers, entry-exit barrier, cost structure, vert. integration, globalization

D. market concept of competitionsame need satisfied? substitutes?

53

32. competitor analysis

A. strategiesB. objectivesC. strengths, weaknesses

dominant…weak, nonviableshare of mind + heart market

D. reaction patterns

54

33. competitive intelligence

A. design the systemsetup, collect, evaluate, disseminate

B. select competitors to attack/avoidcustomer value analysisclasses:

strong…weakclose…distantgood…bad

55

34. design comp. strategies

A. market leadersexpand market, defend, + share

B. market challengerobjectives & opponents, attack

C. market followerimitation: clone, adapt

D. market nicherspecialize, margin not volume

E. be customer+competitor focused

56

conclusions

A. analyze each part+processB. 4C are the playersC. strategy is [C~3C]

midterms

D. next, marketing strategy is STP

E. next, specifix [specify mixes]finals

57

topics for final exam

contextconsumer

competitioncompany

placeprice

promotionproduct

segment > target >position

profits + payoffs

contextconsumer

competitioncompany

contextconsumer

competitioncompany

placeprice

promotionproduct

placeprice

promotionproduct

segment > target >position

profits + payoffs

marketing: 4C STP 4P $

contextconsumer

competitioncompany

placeprice

promotionproduct

segment > target >position

profits + payoffs

contextconsumer

competitioncompany

contextconsumer

competitioncompany

placeprice

promotionproduct

placeprice

promotionproduct

segment > target >position

profits + payoffs

marketing: 4C STP 4P $

situation

strategy

specifics

success