Marketing Management and Strategy

Marketing Management

• Basic functions of an enterprise: Marketing and Innovation.
• Marketing: Satisfies customer needs and wants using basic marketing concepts and applications.
• Innovation: Strengthens a firm's competitive position and profitability through technology, supply chains, and product design.

Marketing Process

• Define, Evaluate, Analyze Market
• Select Segments (considering profitability and fit with company, product, and market)
• Develop a Marketing Program (set strategies for product, pricing, promotion, and distribution)
• Implement and control marketing efforts

Levels of Marketing Strategy

• Corporate Level: Establishing the direction of the business (business to pursue).
• Business Level: Brings products/services to the marketplace and maintains competitive advantages.
• Operational Level: Plans and implements marketing programs.

Selling vs. Marketing

• Selling focuses on production capacities, sales efforts, and production.
• Marketing targets the customers' needs and wants, looking at potential opportunities and market programs.

Marketing Orientation

• Customer Focus: Understands needs, creates value, and serves customers to maintain satisfaction.
• Competitor Focus: Seeks advantages relative to competitors.
• Profit Focus: Manages for short- and long-term profitability.

Marketing Effectiveness

• Total Success: High profitability.
• Partial Success: New customers replace lost ones.
• Partial Failure: Sales slow or fall.
• Total Failure: Customers leave.

Market Forecast

• Critical for total sales revenue.
• Four-step process:
  • Define the market (total sales revenue).
  • Segment the market (subdivide into homogeneous groups).
  • Determine segments' drivers and predict changes.
  • Assess risks and check assumptions.

Environment

• Assesses: competition, brand strength, marketing position, customer loyalty, entry barriers (capital, technology), and supply chains.

Product Strategy

• Functional attributes that meet customer needs.
• Distinguishable components and a product-line strategy.
• Differentiation over competition.

Pricing Strategy

• Options: skimming (premium price), penetration (low price).
• Methods: cost-plus, profit-driven, market-driven.

Customer Loyalty

• Quality support, on-time delivery, compelling product performance, convenient pricing.

Customer Value

• Delivers customer value as a profit.
• Mass market is splintering into numerous micro-markets.
• Micro-markets have varied wants, perceptions, and preferences.
• Traditional, business processes may not work, creating the need for a different value delivery process.

Value Chain

• A synthesis of activities (design, produce, market, deliver).
• A tool for identifying ways to create customer value.

Corporate & Division Strategic Planning

• Defines the corporate mission.
• Sets up strategic business units (SBUs).
• Assigns resources to each SBU.
• Assesses growth opportunities.

Product Portfolio

• Balance of products by market attractiveness and share.
• Brands represent their image and experience for customers.
• Products move through a life cycle - initiation, growth, stagnation, decline.

Product Positioning

• Emphasize product features to fill customer needs and desires.
• Favourable position relative to competition and customer preferences.
• Create space for products in the marketplace.

Marketing Mix

• Product: Attributes, compatibility, and differentiation.
• Promotion: How to promote, target, and adapt to specific segments.
• Pricing: Skimming & penetration, value-added, target pricing.
• Place (Distribution): Intensive, exclusive, or selective, changes in logistics, and technology.

Pricing Options

• Skimming: Premium price initially then reduce.
• Penetration: Low price to rapidly penetrate market.

Marketing Research

• Systematic design, collection, analysis, and reporting of marketing data.
• Types: Syndicated, custom, and specialty-line research.
• Process: Defining the problem, developing a plan, collecting, analyzing, and presenting findings.
• Instruments: Questionnaires, qualitative measures, and mechanical devices.

Data Sources

• Secondary: Existing sources (e.g. for other purposes).
• Primary: Freshly collected data specific to research.
• Approaches: Observation, focus groups, surveys, experimental.

Marketing Channels

• Interdependent organizations involved in making product/services available for consumption.
• Push: Induce intermediaries to carry the product.
• Pull: Persuade consumers to demand the product.
• Hybrid Channels/Multichannel Marketing: Utilizes multiple channels.
• Importance: Affects all marketing decisions.

Channel Decisions

• Intermediaries vary in type, number, and responsibilities.
• Key decisions: intermediaries' type, number needed, terms & responsibilities.
• Considerations for channel selection: customer needs, cost, constraints, and effectiveness.
• Marketing channels affect all marketing decisions.
• The importance of channels affects other marketing decisions.
• Three types of vertical marketing systems (VMS): Wholesaler-sponsored, retailer cooperatives, and franchise organization.

Channel Conflict and Cooperation

• Conflict arises from incompatible actions among channel members.
• Conflict types: horizontal (same level), vertical (different levels).
• Causes: goal incompatibility, unclear roles, perception differences.
• Conflict management: clear goals, dual compensation, superior goals, employee exchange.
• Cooperation often improves channel performance.
• Conflict management techniques: diplomacy, mediation, arbitration, and legal recourse.

E-commerce and Marketing Practices

• Use of electronic means for business transactions.
• Includes online purchasing and facilitating sales.
• E-commerce now encompasses e-purchasing, e-marketing, and related information from various online sources.
• Significant cost savings and efficiency improvements.

Consumer Behaviour

• Study of how individuals select, buy, use, and dispose of products.
• Influenced by culture, social factors, and personal factors.
• Cultural factors include culture, subculture, and social class.
• Key psychological processes are motivation (Maslow, Freud, Herzberg), perception, learning, and memory
• Decision-making models, including compensatory and non-compensatory models.
• Understanding these factors helps in effectively targeting marketing strategies and building brand equity.