Marketing Management and Strategy

Marketing Management and Strategy

• Businesses need a plan to generate income, remain profitable, and compete. Regular analysis of competitors, customers, and results are crucial to adjust strategy.
• A well-structured marketing plan aligns efforts, understands financial impacts, and assigns responsibilities for achieving company goals.
• Strategy focuses on achieving overall company goals. Segmentation, targeting, and positioning are key elements.
• Segmentation involves dividing the market into segments.
• Targeting selects specific segments to focus on.
• Positioning creates a desirable image for the product.
• Marketing builds lasting relationships with customers by understanding their needs, preferences, and values. This builds trust and loyalty.
• Repeated interaction between the company and customer forms strong relationships.

Market Orientation

• Market orientation involves gathering information on current and future customer needs, interpreting it, and acting on it.
• Continuously gathering and analyzing information about customer needs, both present and future, is essential.
• This approach promotes customer satisfaction, drives innovation, and helps businesses stay adaptable in a changing market.

Segments, Customer Management, Product Management, Brands

• Segment: Customers with similar needs and behaviors. Segmenting customers allows for tailoring individualized strategies to improve loyalty and lifetime value.
• Different levels of market segmentation: Mass marketing (one size fits all), Market segmentation (somewhat different segments), and One-to-one marketing (each unique customer).
• Segmentation criteria: measurable, substantial, accessible, differentiable, and actionable. Variables include gender, education, lifestyle, usage, and intensity.

Customer Management

• Goal: Develop a valuable customer portfolio by enhancing customer satisfaction, loyalty, and lifetime value (CLV).
• Strategies include attracting new customers, retaining existing customers encouraging existing customers to expand their relationship, and motivating existing customers to recommend the company to others.
• Companies strive to increase future cash flow.
• Customer Lifetime Value (CLV) is the total anticipated profit from a customer throughout their relationship with the business.
• Customer equity is the total value of a company's customers over their lifetime.
• Customer centricity is a strategy that focuses on customer needs and preferences in marketing decisions. Overall goal is to increase the financial value of the customer portfolio.

Macro and Micro Segments/Pilars of Customer Value Management

• Macrosegments: Broader, fewer groups based on stable characteristics like age or geography.
• Microsegments: Smaller, detailed groups based on behaviour, preferences, or demographics, changing frequently.
• Key pillars of customer value management: customer acquisition, customer retention, customer expansion.
• Upselling is encouraging customers to buy more expensive or feature-rich versions of products; cross-selling involves suggesting complementary products.
• Service concept outlines how to solve customer inquiries; and customer relationship repair programs are strategies for resolving issues with customer experiences.

Product Management

• Product value is the economic value generated by products and their ability to maintain a high cash flow.
• Product categories are defined as products customers consider to be close substitutes.
• Product attributes (features/characteristics) generate benefits for customers.
• Product differentiation involves adding unexpected extras to differentiate a product.
• Customer adoption process describes the mental stages a customer goes through in using a product, from awareness to regular use.
• Synergy in product management involves using multiple product categories to create added benefits and stronger brand strength.

Price Elasticity and Price Setting

• Price elasticity is the sensitivity of demand to changes in price. It's higher for durable goods in the growth stage of the product life cycle.
• Price setting involves considering consumer, cost, and competitors (3Cs).
• Cost pricing sets prices based on production cost plus markup.
• Value pricing prices based on perceived customer value (not production cost).
• A strategic pricing gap is the difference between the current price and the optimized price that can maximize profit or market share.

Additional Marketing Concepts

• Distribution: How products are moved from production to customer; the customer's perception of a normal price for a product is reference price.

• Brand management: Brands are symbols distinguishing products and services. Role includes identification, signaling uniqueness and quality, and creating desired associations. Brand awareness and brand preference are essential for customers.

• Marketing Planning: Companies adjust marketing strategies based on changing market conditions. Setting goals, market analysis, and strategy development for customer needs. Efficient use of resources.

• Marketing Knowledge and Management: Strategic areas for revenue and profitability include customer portfolio (managing, building loyalty), product portfolio (offering/meeting customer needs/market demands) and brand equity (building reputation/customer loyalty).

• VRIO Analysis: Strategic analysis that evaluates a company's resources and capabilities. Value, Rarity, Imitability, and Organization.

• Market Matrix: A tool evaluating growth strategies (Ansoff Matrix). Key categories include Market Penetration, Market Development, Product Development, and Diversification.

• Market: An arrangement (or mechanism) where sellers and buyers exchange products and services. The market mechanism analysis tracks supply and demand impact on market trades and price.

• PESTEL Analysis: Analysis of Political, Economic, Social, Technological, Environmental, and Legal factors impacting business operations.

• Product Life Cycle Theory: Product performance (sales) throughout introduction, growth, maturity, and decline phases.

• Customer decision-making process: Problems recognition, Information search, Evaluation of alternatives, Purchase, and Consumption.

• Marketing Communication: Different objectives include brand familiarity, communication adapting to target audiences, mass communication, and modified mass communication. Effective communication involves different models like AIDA and effect hierarchy. Exposure effect, elaboration likelihood model also influence customer perception.

• Programmatic Buying: Automated online advertising purchase.

• SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats): Dale of Norway SWOT analysis identifies internal brand strengths/weaknesses and external opportunities/threats.

• Marketing Strategy for Dale of Norway

• Embracing digital transformation, Leveraging influencer partnerships, emphasizing sustainability, diversifying product offering, expanding into domestic and international markets, leveraging partnerships.