Chapter 2 Reading - Marketing Management

Front 1

Marketing Strategy

Back 1

The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships

Front 2

Marketing Strategy involves 2 key questions:

Back 2

1. Which customers will we serve (segmentation/targeting)

2. How will we create value for them (differentiation/positioning)

After answering these questions design the proper marketing mix utilizing the 4 p's

Front 3

Vital steps in Market strategy

Back 3

Market segmentation

Market targeting

Differentiation/Positioning

Front 4

Companies know they cannot PROFITABLY serve all consumers in a given market.

Back 4

True

Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments

Front 5

Market Segmentation

Back 5

<b>Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors</b>, and who might require separate products or marketing programs

Front 6

Market SEgment

Back 6

a group of consumers who respond in a similar way to a gien set of marketing efforts

Every market has its segments, but not all ways of segmenting a market are equally useful

Front 7

Market Targeting

Back 7

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter

Front 8

When most companies enter a new market how many segments do they usually focus on?

Back 8

ONE! if it works out, is profitable then they will scale and expand--seeking full market coverage

Front 9

Positioning

Back 9

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products<b> in the minds of target consumers

Front 10

Differentiation

Back 10

Actually differentiating the market offering to create superior customer value

Front 11

When positioning a product, the company first must <b>identify possible customer value differences that provide competitive advantage upon which to build</b> the position

Back 11

true

Front 12

A company's entire marketing program should support the chosen...

Back 12

positioning strategy

Front 13

Once the marketing strategy is established the company must then planning the details of the marketing mix

Back 13

Marketing mix:

the set of controllable tactical marketing tools--<b>products, price, place, and promotion</b>--that the firm blends to produce the response it wants in the target market

Front 14

The Marketing Mix:

Product

Back 14

means the goods and services combination the ompany offers to the target market.

e.g. a car comes fully serviced and with a comprehensive warrantee this as much a part of the product as the windshield or brake pedal

Front 15

The Marketing Mix:

Price

Back 15

the amount of money customers must pay to obtain the product.

e.g. dealers of cars rarely charge the full sticker price--they negotiate the price with each customer, offering discounts, trade in allowances, credit terms--to help bring the price in line with the buyer's perception of the value of the car

Front 16

The Marketing Mix:

Place

Back 16

Includes company activities that make the product available to target consumers.

e.g. where will a car company place the dealers of its cars?

Front 17

The Marketing Mix:

Promotion

Back 17

activities that communicate the merits of the product and persuade target customers to buy it.

Advertising, promotions, rebates, etc.

Front 18

review fig. 2.4 & 2.5

Back 18

now--

Front 19

A problem with the 4 p's is that it is all from the seller's view and fails to take into consideration the buyer's perspective--enter the 4 C's

Back 19

Customer Solution

Customer Cost

Convenience

Communication

Front 20

Just as important as the marketing strategy is the actual management/execution of the strategy (Review Fig. 2.6)

Back 20

Management Steps:

Analysis

Planning

Implementation

Control (measuring & evaluation)

Front 21

Marketing Analysis

Back 21

SWOT Analysis:

An overall evaluation of the company's Strengths, Weaknesses, Opportunities, Threats

Front 22

Strengths

Back 22

Internal capabilities, resources, positive situational factors

Front 23

Weakness

Back 23

internal resource constraints, negative situational factors

Front 24

marketing Planning

Back 24

deciding which marketing strategies that will help the company attain its overall strategic objectives.

a detailed plan is business, product, or brand

Front 25

Marketing Implementation

Back 25

The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives

The "who, where, when, how"

Front 26

Review Table 2.2 & Associated marketing plan in Appendix #1

Back 26

now!

Front 27

Many managers think doing things right (implementation) is more important than doing the right things (strategy)

Back 27

true

Front 28

Different types of Marketing Department Organization

Back 28

Functional Organization

Geographic Organization

Product Management Organization

Customer Management Organization


Large companies use a combination of the above

Front 29

Product Management/Manager

Back 29

develops and implements a complete strategy and marketing program for a specific product or brand.

first appeared at P&G.

Front 30

Market or Customer Management Organization

Back 30

for companies that sell one product line to many different types of markets and customers that have different needs and preferences

Front 31

Brand management focus is shifting more towards...

Back 31

Customer Management

moving away from managing just product or brand profitability and toward managing profitability and CUSTOMER equity.

They think of themselves as managing people/relationships instead of brands/portfolios

Front 32

Marketing Control

Back 32

The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.

Front 33

Operating Control

Back 33

involves checking ongoing performance against the annual plan and taking corrective action when necessary.

ensure the company achieves the sales, profits, and other goals set out in its annual plan.

Front 34

Strategic Control

Back 34

Involves looking at whether the company's basic strategies are well matched to its opportunities

Front 35

Marketing Audit

Back 35

Looks at everything

usually done by an objective experienced outside party.

findings sometimes surprise management

Front 36

Return on Marketing Investment (ROMI)

Back 36

The <b>NET RETURN</b> from a marketing investment <b>divided by the costs of the marketing Investment</b>

Front 37

Beyond measuring return on marketing investment in terms of standard performance measures as sales or market share many companies are using...

Back 37

customer relationship measures like customer satisfaction, retention, and equity