Wk 1 lec 821

Lesson 1.1 Defining Marketing as a Function and Practice DEFINITIONS: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. 3 Your textbook authors, Kotler and Keller (2017) define marketing as " meeting needs profitably." ****McCarthy's 4P model buckets marketing functions into four main areas: Product - place- promotion -price Marketing management is the art and the science of choosing target markets. It involves getting, keeping, and growing customers through creating, delivering, and communicating superior value. In the pursuit of business success, marketers must engage in many activities, including the following: examining the characteristics of customers through research; identifying and characterizing appropriate markets; determining duties and responsibilities of marketing employees within the organization and making appropriate resource allocation decisions; determining customer needs and aligning products with them; developing marketing programs, plans, and strategies; communicating brand and product value; setting the right pricing; identifying the most appropriate channels for distribution;
selecting the most effective communication channels; building and maintaining brand equity; supporting customer relationship development and management; managing the holistic customer experience (across product, purchasing, and after-purchase experiences); and measuring company performance results and evaluating progress. - demand creation and demand fulfillment. Another term : customer orientation Modern Marketing is the hub of the organization - Sales . Certainly, one of marketing's most fundamental functions is to make customers aware of and to communicate the value of the company's offerings. The sales teams then take that momentum and move customers through the funnel to purchase. Sales and marketing folks should work together in a feedback loop—whereby marketing provides important information about target markets to help sales better connect with customers; likewise, sales can provide marketing with frontline information from the customers themselves—this could be captured in the form of qualitative data (informal discussions) or in a more quantitative version from the customer relations management system (e.g., SalesForce). - - Supply chain . Fundamentally, supply chain management is the act of ensuring product is available to meet customer demand. Given that a primary marketing function is connecting customers with products, you can see that there's a logical relationship between these two business units. If marketing engages in a media push or new campaign to ramp up sales, the organization needs to be ready to provide product to eager customers. Therefore, it's essential that these two groups have a close partnership. - - IT. There are several important ways that marketing and IT fit together. The first is around marketing's traditional function of content and messaging—this ties into website and mobile management (including e-commerce). Today, if marketing and IT aren't working together to produce digital experiences that enhance customer experience and facilitate key business outcomes, there's likely to be a huge breakdown. The second way that IT and marketing work together relates to data management. With the proliferation of big data and data-driven marketing (more on this in an upcoming lesson), there's a significant demand on IT to support the technical infrastructure needed for data capture, storage, and access. - - Customer service. Good customer service (CS) is a critical component of overall customer experience. Businesses that have direct customer service functions (e.g., aftermarket support) should pair CS with marketing to ensure CS is executing on the customer experience strategy (usually managed by marketing). Likewise, CS is an important resource for understanding the customer, which marketing can use to calibrate messaging and other aspects of customer communications and interactions. - - R&D. Marketing plays a significant role in informing new product development; because marketers are customer focused, they can provide developers with valuable market and product information during the idea-generation phase of R&D. Likewise, as a new product moves through the development life cycle, marketing will help calibrate the offering through concept and product testing, packaging refinement, and product line fit. In addition, marketing will provide other customer and market receptivity assessments that ensure the product will be successfully received.
Marketing as a Career : A passion for communicating. Curiosity An understanding of consumer behavior . Business acumen . Data skills data-driven marketing Marketing Strategy Marketing strategy is the combination of vision and goals that leads an organization to capture and retain customers. A marketing strategy, like any strategy, is conceptual by nature (we'll talk in a minute about the marketing plan, which is the tactical road map for executing the strategy) but is a necessary element of effective business operations and success. In recent years, marketing strategy has shifted away from a product focus and toward a market focus. This means that marketing strategy is taking an outside-in perspective—whereby the focus is on meeting (and exceeding) customer needs instead of creating and selling a discrete offering. This shift puts the focus on what businesses can do for customers, not what customers buy from them—and it has fundamentally changed marketing strategy. Marketing Plans Marketing plans include both strategic elements —the conceptual and visionary components of the marketing road map, the guiding reasons for why and what—and
tactical elements —the how-tos, the marketing tactics that will be employed to achieve the strategy itself. Good marketing plans explicitly connect the elements of strategy with tactical execution (the why with the how ) and include operational elements, such as timelines and budget, as well as supporting background research ( such as a SWOT analysis). Progress also needs to be measured through metrics. Identifying and tracking key metrics ensures measurements to determine the success or failure of the marketing effort. Analyzing these performance and marketing metrics can also help with adapting future marketing efforts. Developing Successful Retail Marketing Strategies Cheap-Est: Winning with the lowest prices Easy-Est: Winning with solution-oriented service Quick-Est: Winning with fast service Big-Est: Winning with dominant assortment Hot-Est: Winning with fashion Chapter 1 Book Structure of goods, services, and money flow in a modern exchange economy
simple mark. system New marketing realities Relationship marketing aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business marketing network, which consists of the company and its supporting stakeholders—customers, employees, suppliers, distributors, retailers, and others—with whom it has built mutually profitable business relationships. Integrated marketing coordinates all marketing activities and marketing programs and directs them toward creating, communicating, and delivering consistent value and a consistent message for consumers, such that "the whole is greater than the sum of its parts." Internal marketing, is the task of hiring, training, and motivating able employees who want to serve customers well
Performance marketing requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs Holistic marketing Four major market forces technology, globalization, the physical environment, and social responsibility —have forged new consumer and company capabilities and have dramatically altered the competitive landscape. These changes require companies to re-evaluate their current business models and adapt the way they Functional organization
Traditional vs modern customer-oriented Customer centric organization
Deadly Sin #1: The company is not sufficiently market focused and customer driven. Signs: There is evidence of poor identification and poor prioritization of market segments. There are no market segment managers, no employees who think it is the job of marketing and sales to serve customers, no training program to create a customer culture, and no incentives to treat the customer especially well. Solutions: Use more advanced segmentation techniques, prioritize segments, specialize the sales force to serve each market segment, develop a clear statement of company values, foster more "customer consciousness" in employees and company agents, make it easy for customers to reach the company, and respond quickly to any customer communication. Deadly Sin #2: The company does not fully understand its target customers. Signs: The latest study of customers is three years old, customers are not buying your product like they once did, competitors' products are selling better, and there is a high level of customer returns and complaints. Solutions: Conduct more sophisticated consumer research, use more analytical techniques, establish customer and dealer panels, use customer relationship software, and engage in data mining. Deadly Sin #3: The company needs to better define and monitor its competitors. Signs: The company focuses on near competitors, misses distant competitors and disruptive technologies, and has no system for gathering and distributing competitive intelligence. Solutions : Establish an office to collect competitive intelligence, hire competitors' employees, watch for technology that might affect the company, and prepare offerings like those of competitors.Deadly Sin #4: The company does not properly manage relationships with stakeholders.
Signs: Employees, dealers, and investors are not happy, and good suppliers are reluctant to partner with the company. Solutions: Move from zero-sum thinking to positive-sum thinking, and do a better job of managing employees, supplier relations, distributors, dealers, and investors. Deadly Sin #5: The company is not good at finding new opportunities. Signs: The company has not identified any exciting new opportunities for years, and the new ideas the company has launched have largely failed. Solutions: Set up a system for stimulating the flow of new ideas. Deadly Sin #6: The company's marketing planning process is deficient. Signs: The marketing plan format does not have the right components, there is no way to estimate the financial implications of different strategies, and there is no contingency planning. Solutions: Establish a standard format including situational analysis, SWOT, major issues, objectives, strategy, tactics, budgets, and controls; ask marketers what changes they would make if they were given 20 percent more or less budget; and run an annual marketing awards program with prizes for best plans and performance. Deadly Sin #7: Product and service policies need tightening. Signs: There are too many products, and many are losing money, the company is giving away too many services, and the company is poor at cross-selling products and services. Solutions: Establish a system to track weak products and fix or drop them, offer and price services at different levels, and improve processes for cross-selling and up-selling Deadly Sin #8: The company's brand-building and communication skills are weak. Signs: The target market does not know much about the company, the brand is not seen as distinctive, the company allocates its budget to the same marketing tools in much the same proportion each year, and there is little evaluation of the ROI impact of marketing communications and activities.
Solutions: Improve brand-building strategies and measurement of results, shift money into effective marketing instruments, and require marketers to estimate the ROI impact in advance of funding requests. Deadly Sin #9: The company is not organized for effective and efficient marketing. Signs: Staff lacks 21st-century marketing skills, and there are bad vibes between marketing/sales and other departments. Solutions: Appoint a strong leader to build new skills in the marketing department, and improve relationships between marketing and other departments. Deadly Sin #10: The company has not made maximum use of technology. Signs: There is evidence of minimal use of the internet, the sales automation system i Chapter #2 Marketing Planning and Management mission is a clear, concise, and enduring statement of the reasons for an organization's existence. Often referred to as its core purpose , a company's mission is a long-term goal that provides company employees and management with a shared sense of purpose, direction, and opportunity. They focus on a limited number of specific goals. Mission statements containing a laundry list of unrelated activities tend to be less effective than focused mission statements that clearly articulate their ultimate goals. They stress the company's major policies and values. Narrowing the range of individual discretion lets employees act consistently on important issues. They define the major markets that the company aims to serve. Because the choice of target market defines a company's strategy and tactics, it should be defined by and follow from the company's mission statement. They take a long-term view. The corporate mission defines the ultimate strategic goal of the company; it should be changed only when it ceases to be relevant. They are as short, memorable, and meaningful as possible. Three- to four-word corporate mantras are typically more effective than long-winded mission statements. corporate culture? Some define it as "the shared experiences, stories, beliefs, and norms that characterize an organization.
A strategic business unit (SBU) has three characteristics: (1) It is a single business, or a collection of related businesses, that can exist separately from the rest of the company; (2) It has its own set of competitors; and (3) It has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit. A specialized portfolio involves SBUs with fairly narrow assortments consisting of one or a few product lines. To illustrate, Ferrari (high-performance sports cars) In contrast, a diversified portfolio involves SBUs with fairly broad assortments containing multiple product lines. For example, companies like Amazon, General Electric, Johnson & Johnson 5c framework target market 3-v market value principle
The seven ts defining market offering The product is a marketable commodity that aims to create value for target customers. Products can be tangible (like food, apparel, and furniture) or intangible (like music and software). Purchase of a product gives customers ownership rights to the acquired good. For example, with the purchase of a car or a software program, the owner is granted all rights to the acquired product. The service also aims to create value for its customers, but it does so without entitling them to ownership. Examples of services include appliance repairs, movie rental, medical procedures, and tax preparation. At times, the same offering can be positioned as a product or a service. This occurs, for example, when a software program can be offered as a product that gives purchasers the rights to a copy of the program, or as a service that allows customers to lease the program and temporarily receive its benefits. The aim of the brand is to identify the products and services produced by the company and differentiate them from those of the competition, in the process creating unique value over and above the product and service aspects of the offering. The Rolls-Royce brand identifies the cars manufactured by BMW subsidiary Rolls-Royce to differentiate these cars from those made by
Bentley, Maserati, and Bugatti, as well as to evoke a distinct emotional reaction from its customers, who use the Rolls-Royce brand to call attention to their wealth and socioeconomic status. The price is the monetary charge These activities include setting a goal , developing a strategy , designing the tactics , defining an implementation plan, and identifying a set of control metrics to measure the success of the proposed action. The G-STIC (Goal-Strategy-Tactics-Implementation-Control) framework comprises these five activities and acts as the lynchpin of marketing planning and analysis. The goal describes the company's ultimate criterion for success; it specifies the end result that the company plans to achieve. The two components of the goal are its focus , which defines the metric (such as net income) used to quantify the intended result of the company's actions, and the performance benchmarks that signal movement toward the goal and define the time frame for achieving the goal. The strategy provides the basis for the company's business model by delineating the company's target market and describing the offering's value proposition in this market. Tactics carry out the strategy by defining the key attributes of the company's offering. These seven tactics— product , service , brand , price , incentives , communication , and distribution —are the tools used to create value in the company's chosen market. Implementation consists of the processes involved in readying the company's offering for sale. Implementation includes developing the offering and deploying the offering in the target market. Control measures the success of the company's activities over time by monitoring the company's performance and the changes in the market environment in which the company operates.
Market value map Monetary goals are based on such outcomes as net income, profit margins, earnings per share, and return on investment. For-profit firms use monetary goals as their primary performance metric. Strategic goals are centered on nonmonetary outcomes that are of strategic importance to the company. Among the most common strategic goals are increasing sales volume, brand awareness, and social welfare, as well as enhancing the corporate culture and facilitating employee recruitment and retention. Quantitative benchmarks set out the specific milestones to be achieved as the company moves toward its ultimate goal. These benchmarks quantify the company's focal goal, which might, for example, include increasing market share by 5 percent Temporal benchmarks identify the time frame for achieving a specific quantitative or qualitative benchmark—e.g., revamp the company's website by the end of the first quarter. The timeline set for achieving a goal is a key decision that can affect the type of strategy used to implement the goal, the number of people involved, and even costs.
The target market in which the company aims to create value is defined by five factors: customers whose needs will be fulfilled by the offering, competitors whose offerings aim to fulfill the same needs of the same target customers, collaborators that help the company meet the needs of target customers, the company managing the offering, and the context in which the company operates. The value proposition defines the benefits and costs of the market offering with which the company plans to meet target customers' needs. The three components of the value proposition are customer value , collaborator value , and company value . Designing Tactics Resource development entails securing the competencies and assets needed to implement the company's offering. Resource development may involve developing manufacturing, service, and technology infrastructure; securing reliable suppliers ; recruiting, training, and retaining skilled employees; creating products , services , and brands that serve as a platform for the new offering; acquiring the skills necessary for development, production, and management of the offering; Development of the offering transforms the company's strategy and tactics into an actual good that will be offered to target customers. This involves overseeing the flow of information, materials, labor, and money that will create the offering the company brings to the market. Offering development includes designing the product (procurement, inbound logistics, and production) and specifying the service (installation, support, and repair activities Commercial deployment : the logical outcome of offering development and establishes the company's offering in the market. The deployment includes setting the timing of the offering's market launch, as well as determining the resources involved and the scale of the market launch.
Organization of marketing plan Smarketing: 7 Tips for Marketing & Sales Alignment 1. Make it easy to collaborate 2Create aligned terminology and processes 3. Spend quality time together
4. Focus on the entirety of the sales funnel 5. Create common Smarketing goals 6. Enhance communication between teams 7. Develop full-funnel content as aligned teams "The first is that as companies become more customer- centric versus product-centric, they need to start breaking down their functional silos to present a single view of the company to the customer. As a result, there needs to be much more interaction between marketing and sales, between marketing and product, between marketing and customer service, and so on. data-intensive and technology-enabled function", demanding new skills sets of the chief marketing officer.
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