Marketing principles

• Marketing is how companies create customer value and build strong relationships in order to capture value in return.

Five Steps of the Marketing Process

• Marketers must understand the marketplace, customer needs, and customer wants.
• Design a customer-driven marketing strategy to obtain, maintain, and cultivate target customers.
• Create a marketing program that delivers superior value.
• Build customer relationships to achieve satisfaction.
• Companies reap the rewards of creating those strong customer relationships.

Orientations

• Production concept
• Product concept
• Sales concept
• Marketing concept
• Societal marketing concept

Trends

• Transparency and trust in processes are essential.
• Rapid execution and humor are valuable.
• Employ marketing sciences combining data from Google Tag Manager and artificial intelligence.
• Employees can be brand influencers.
• Micro-influencers specialize in a specific market niche or area on social networks.
• Internationality means aligning actions with audience needs to generate impact.
• Content creation involves artificial intelligence, campaign measurement, ROI, and relevant content.

Challenges

• Changes in the business environment
• Value proposition considerations
• Rise of computers, telecommunications, information, transportation, and other technologies
• Customer relations management
• Global competition
• Ethical and social responsibilities
• Marketing scope

Ethics in Marketing Management

• Ethics studies practical human behavior related to good and evil.
• Marketing ethics are moral or behavioral norms accepted by a group or society that govern its activities and processes.
• Codes of Ethics are rules and norms that describe what marketing specialists should expect from one another.
• They clearly define expectations and applicable punishments for rule violations.
• Managers must be ethical to build trust, enhance reputations, and improve customer and employee satisfaction.

Basic Principles

• Integrity
• Objectivity
• Independence
• Responsibility
• Confidentiality
• Compliance with regulations
• Professional competence and updating
• Dissemination and collaboration
• Respect among colleagues
• Ethical code of the American Marketing Association

Reasons Managers Should be Ethical

• The costs of unethical behavior in the workplace
• Lack of awareness regarding ethically questionable management actions
• Erosion of integrity and exposure to risks
• Global corruption pressures threaten managerial and organizational reputation
• Benefits of greater profitability and organizational order are intrinsically desirable

Values of a Marketer

• Integrity
• Respect
• Responsibility
• Creativity
• Honesty
• Confidentiality
• Professionalism
• Vocation
• Commitment
• Equity

Strategic Planning and Marketing Plan

• Strategic planning is the process of developing and maintaining strategies that fit the goals and capabilities of an organization in a changing environment and available opportunities.

Strategic Planning Steps

• Define the Company's Mission, which should be realistic, specific, motivating, and adapted to the environment and What is our business? Who are our clients? What do our clients value? What is the future of our business?
• Set the company's objectives and goals
• Design the portfolio
• Plan the strategies
• Establish controls

Marketing Plan

• The marketing plan guides the company and aids management in strategy implementation and control.
• It informs participants of their roles and functions, supports resource acquisition, stimulates thinking to maximize results with available resources.
• It assigns responsibilities, tasks, timeframes, and predicts opportunities, problems and threats.

Key Elements of a Marketing Plan

• Where are we now? (current situation analysis) includes consideration of the external and internal environment.
• Where does the company want to be? - define goals and objectives
• How should the company get there? - develop strategies and tactics
• Resources needed to achieve goals should be determined through budget
• How to measure effectiveness of a plan? - through audits, sales analysis and inventory checks

Detailed information in Marketing plan

• Introduction: clearly stated the Plan's purpose.
• Executive summary
• Current marketing situation
• Analysis of threats and opportunities
• Set objectives and goals
• Marketing strategies
• Action programs
• Budget
• Controls

Executive Summary

• Description of the company's mission and vision
• Description of product or service
• Competitive advantage established
• Budget required
• Forecast sales and profits

Macro and Micro Environment Analysis

• The macro-environment consists of larger social forces that affect the micro-environment.

Macro-environment

• Six forces make up the company's macro-environment including demographic, economic, technological, natural, political, social and cultural forces.
• These forces shape opportunities and pose challenges.

Demographic Environment

• Demography studies human population characteristics exhibiting changing age structures, transforming family profiles, geographic population shifts, increased education and administrative employment, and increasing diversity.

Natural Environment

• The natural environment shows three main trends: shortages of raw materials, increased pollution levels, and greater government intervention in resource management.

Technological Environment

• The technological environment presents both opportunities and challenges.
• Companies that fail to keep up with technological changes will miss marketing opportunities for new products.

Political Environment

• The political environment consists of laws, institutions, and groups affecting or limiting marketing actions having undergone some changes affecting global marketing
  • Increased legislation to regulate business
  • Stronger government intervention
  • A greater emphasis on ethical and socially responsible actions

Cultural Environment

• The cultural environment consists of institutions and forces that influence society's values, perceptions, preferences, and behaviors.

Micro Environment

• The company's micro-environment consists of participants close to the company.
• Participants work together to create a value transfer network or impacting its ability to serve customers.

The Company

• When designing marketing plans, management considers other company groups such as high-level management, research and development, finance, purchasing, manufacturing, and accounting.
• Executive management establishes the mission, broad goals, strategies, and company policies.
• Finance secures and uses funds necessary to carry out the marketing plan.
• R&D designs safe and attractive products.
• Purchasing handles inputs and materials
• Production manufactures the appropriate quantity of products with the desired quality.
• Accounting measures profits and costs.
• Marketing intermediaries help the company promote, sell, and distribute products.
• Marketing service agencies aid the company in selecting and programming its products.
• Financial intermediaries help finance and insure risks.
• Distribution companies help the company store and transport goods from their origin to destination.
• Distributors are channel companies that help the company find customers or sell to them.
• Suppliers provide resources that the company needs to produce goods and services.
• Customers are studied by the company in its target markets.
• Competitors have similar offers, markets, and strategies.
• Publics have a genuine interest or potential in an organization's ability to achieve its objectives including
  • Financial, media, government, citizen-action, local publics

SWOT Analysis

• SWOT analysis identifies the company's strengths and weaknesses related to existing environmental opportunities and threats.
• It helps analyze internal factors and external situations, weaknesses, strengths, opportunities and threats .

Porter Analysis

• Defense of competitive forces
• All competition depends on the five competitive forces that interact in the business world.
  • Threat of new entrants
  • Rivalry among competitors
  • Bargaining power of suppliers
  • Bargaining power of customers
  • Threat of substitute products or services

Controls

• Use control procedures to ensure that plan goals and objectives are achieved through audits, inventories, and sales analysis
• Analysis of product profitability, markets, territories, channels, and marketing costs are preformed in the company.

Competition

• Competitors make similar offers and markets with similar strategies.
• The target market, company position, market data, product performance, competition, and distribution can be described.
• A review of competition identifies key competitors and evaluates their market positions and strategies regarding quality, pricing, distribution, and product promotion.