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.