Marketing Management Notes.pdf

CHAPTER 1 What is a market? Traditional View - A market is a physical space where buyers and sellers gather to buy and sell goods. Marketing View - A market is the set of actual and potential buyers for a good, service, or idea. Marketing Mix (4Ps) Product - a good, service, or idea to satisfy the c...

CHAPTER 1 What is a market? Traditional View - A market is a physical space where buyers and sellers gather to buy and sell goods. Marketing View - A market is the set of actual and potential buyers for a good, service, or idea. Marketing Mix (4Ps) Product - a good, service, or idea to satisfy the consumer’s needs Price - What is exchanged for the product or service Promotion - A means of communication between the seller and buyer Place - A means of getting product into the consumer’s hands Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that value for customers, clients, partners, and society at large. Marketing is meeting needs profitably. Production Concept Consumers prefer products that are widely available and inexpensive Focus on production, and economies of scale (average cost per unit goes down when producing more units Product Concept Consumers prefer the best product that offer the most quality, performance, or innovative features Focus on making superior products and improving them over time Selling Concept Consumers, if let alone, will not buy enough of our products Focus on making a sale on each transaction Marketing Concept Consumers’ needs and wants need to be satisfied Focus on customer satisfaction Provide the right 4Ps collectively Delivery more effectively and efficiently than competitors Build long-term profitable relationships with customers Customer Lifetime Value (CLV) is the profit generated by the customer’s purchase of an organization’s products or service over the customer’s lifetime. CHAPTER 2 What is a mission? - A statement of the organization’s function in society, often identifying its customers, markets, products, and technologies What is a goal? - A statement of an accomplishment of a task to be achieved, often by a specific time A good goal should be SMART S(pecific) - Be a precise description M(easureable) - Be quantitative value to show attainment A(ttainable) - Be achievable, but challenging R(elevant) - Be pertinent to the organization’s mission T(ime-based) - Have a deadline for completion What is a Strategy? - An organization’s long-term course of action designed to deliver unique customer experience while achieving its goals What is a “Marketing” Strategy? - It is a strategy to achieve a marketing-related goal. What is Strategic Planning? - The process of developing and maintaining a strategic fit between the organization’s goals and resources and its changing market opportunities. Marketing Plans A marketing plan is a written document composed of an analysis of the marketing objectives, current marketing situation, opportunities, and threats for the firm, strategy specified in terms of the four Ps, action programs, and projected financial analysis. Situational Analysis - Analyze the current situation by assessing… The internal environment: What happens within the organization (Such as resources)? The external environment: What happens outside the organization (Such as competitors) CHAPTER 3 Involvement - is the consumer’s degree of interest in or concern about the (purchase) decision. A consumer’s degree of involvement depends on: 1. Personal Relevance of the decision 2. The consumer’s ability to process information Chapter 4 Chapter 4 Ways to develop new products Customers have different needs and wants. Customers’ needs and wants keep changing. Customers are bored of an existing product. Problem an existing product addresses is less relevant. New technology makes a solution to a new problem possible. The market of an existing product is saturated. Competition comes out with a new product. Where do new product ideas come from? – Internal: Research & Development (R&D), Brainstorming – External: Competitors (by studying and reverse engineering their products) Partners (by using their market information, using their technology or idea via licensing, or asking them to create new ideas via outsourcing) Customers (by observing their behaviors or listening to them) Product Life Cycle Does every product have the similar life cycle?: NO, it is just a general concept. Product Life Cycle How to find exact time points that separate stages? There is no way to do so. It is a subjective decision from a retrospective viewpoint. Why should we learn it? Sales send signals for managers to modify their goals and marketing mixes. CHAPTER 5 Customer Heterogeneity - Buyers are too numerous, too widely scattered, and too varied in their needs and buying practises What is segmentation? - The process of dividing a market into meaningful and identifiable segments. Dividing the market into distinct groups of buyers with different needs, characteristics, or behaviour, who might require separate products or marketing mixes. Targeting - The process of evaluating the attractiveness of each market segment, and selection one or more segments to serve Positioning - refers to how the marketing organization wants its brand to be known in the minds of its target consumers. Head-to-Head Positioning - Competing directly with competitors on similar product attributes in the same target market Differentiation - How the offering is different (and better than) the competition What is a perceptual map? - A perceptual map is a graphical representation of the consumer’s perceptions of our brand versus our competitors