chapter2-2 – Flashcards

each department can be thought as a link in the company's INTERNAL VALUE CHAIN each department carries out value creating activities to design, product, market, deliver, and support the firm;s products the firm;s success depends not only on how well each department performs its work bt also on how well the various departments coordinate their activities

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thus other dpearmtn may rest the marketing departments' efforts

everyone must do marketing regardless of caution or dpearmtnet and need to understand the role of marking and your role in creating customer value

in its quest to create custom value the firm needs to look beyond its own itneral value chain and into the value chanson of its suppliers, distributors, and ultimately its customers more comapnie today are partnering with other member of the supply chain - suppliers, distributors, and ultimately custom to improve the performance of the customer value delivery network the competition is between entire vale delivery networks

the network made up of the company its suppliers, its distributors, and ultimately its customs who partner with each other to improve the performance of the entire system

goal is to create value for customs and budil profitable custom rleatiosnup next MARKETIGNG STRATEGY - the marketing logic by whciht he company hopes to create this customer value and achieve these profitable relationships -segmentation, targeting, differnetaiton, and positioning guided by marking strategy the company designs and integrated marketing mix - FOUR Ps - price, produce, place, and promotion

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to succeed in today;s competitive market place companies must be customer centered they must win customers from competitors and the keep and grow them by delivering greater value before satisfy customs - need to know there wants and needs - careful customer analysis market segmentation, market targeting, differentiation, and positioning

the marketers must determine which segments offer the best opportunities consumers can be groped and served in various ways based on geographic, demographic, psychographics and behavioral factors definition: dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who mgith require sperate products or marketing programs every market has segments but not all ways of segmenting a market are equally useful

consumers who respond in a smimilar way to a given set of marketing efforts

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after a company has defied its market segments it can enter one of many of these segments definition: the process of evaluating each market segment's attractiveness and selecting one or more to enter a company should target segments in which it can profitable generate the greatest customer value and sustain it over time a company with limited resources might decide to serve only one or a few special segments or market niches - such niches specialize in serving customer segments that major competitors overlook or ignore alternatively a caimpny might choose to serve several related segments -perhaps those with different kinds of customs but wight he same basic wants most companies enter a new market by serving a single segment; if this prices successful they add more segments

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after company decides on which market segment to enter must determine how to differentiate its market offering for each targeted segment and what positions it wants to occupy in those segments

the place it occupies relative to competitors products in consumer's minds markets want to develop a unique market position of their products

arrange for a product to occupy a clear, disunite, and desirable place relative to competing products in the minds of target consumers plan positions that disntignui their product form comeptive brands and give them the greatest advtangage in their target markets in positioning its brand, a company first identifies possible customer value differences that provide competitive advantages on which to build the position effective positioning begins with differenting the company;s market offering so that it gives consumer more value

actually differntiang the market offering to create superior customer value . th oampny has chosen desired positionin it must take strong steps to deliver and communicate the position to target consumers. the company entire marketing program should support the chosen positioning strategy

after determining its overall marketing strategy the company is ready to begin planning the details of the marketing mix

the set of tactical marketing tools product, price place and promotion - that the firm blends to product the response it wants in the target market consist of everything the firm can do to influence the demands for its products 1)product - the goods and service combo that company offers to the target market 2)price - the amount of money customs must pay to obtain the product 3) place - includes company activities that make the product obligable to target consumers 4) Promotion - activities that communicate the mretis of the product and persaut target customers to buy it

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framework is most helpful in designing integrated marketing programs

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1) Customer Solution 2) Custoemr Cost 3) Convenience 4) Communication

in addition to vein good at the marking in market mgmt, companies also need to pay attention to the MANAGEMENT managing the market process requires the four marking mgmt function 1) ansylisis 2)planning, 3)implemenation - plan into activities 4) control control consists of measuring and evaluating the results of marketing activities and akin corrective action where needed,

complete analysis of the company's situation conduct SWOT ANALYSIS the company should analyze its markets and marketing enveironemtn to find attractive opportunities and identify environmental threats. it should anaylze company strenghs and weaknesses as well as current and possible marketing at ions to determine which opportunities it can best purse the goals is to match the comapnys strengths to attractive opportunities in the environment while simultaneously eliminating or overcoming the weaknesses and minimizing threat marketing analysis provides inputs to each of the other market mgmt functions

strenghts weaknesses opporutntieis threats

through strategic planning the company deciwas what it wants to dow ith each business unit market planning involves choosing marketing strategies that will help the coamph attain its overall strategic objectives a detailed marketing plan is needed for each business,product or brand 1) begins with executive summary that quickly reviews major assessments, goals, and 2) The main section of the plan presnes a detailed SOWT analysis 3) the plan next states major objectives for the brand and the outlines the specifics of a marketing strategy for achieving them a marketing strategy consists of specific strategies for target markets, positioning, the marketing mix, and marketing expenditure levels. it outlines how the company intends to create valuee for target customs in order to cature value in return. additional section of the marking plan lay out an action program for implementing the marketing strategy along with the details of a supporting MARKETING BUDGET. The last section outlines the cntorl that will be used to monitor progress, measure return on marketing investment and take corrective action adresses the what and why of marketing activities

a brilliant marketing strategy counts for little if the company fails to implement it properly definition: the process that turns marketing plans into marketing actions to accomplish strtagie marking objectives adresses the who where when and how equally as important to strategic planning and can give companies competiivves advantages through effective implementation implemtnation is difficult its i often easier to think up good marketing strategies than it is carry them out in an increasingly connected world, people at all elves of the marking system must work together to implement marking strategies and plans

the company must design a marking organization that can carry out marketing strategies and plans in large company a market department emerges to plan and carry out marketing activities this department contains many specialist-product and market managers, sales manages and sales people, market researchers, and advertising experts, among other -CHIEF MARKETING OFFICER (CMO)- heads up the company's entire marketing operations on the company's top mgmt team

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differnet markeign actives are headed by a functional specialist - a sales manager, and advertising manger, a marketing research manager or a new product managers

it sales and marking people are assigned to specific countries, regious, and districts.. allow sales people to settle into a territory, get to know their customs, and work within a minumu of travel time and costs

a product manger develops and implements a complete strategy and marking program for a specific product or brand

similar to product mgmt organization. market manager are responsible for developing marketing strategies and plans for their specific markets or customers . main advantage is that company is organized around the needs of specific customer segments many companies develop special organization to manage their relationships with large customers for ex. P&G create large teams or even whole division to serve large custom such as Walmart Targget Safeway etc...

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because many surprises occur during the implementation of marketing plans, marketers must practice constant marketing control definition: ovulating the results of marking strategies and plan and taking corrective action to ensure that the objectives are attained 4 steps 1)mgmt first sets specific marking goals 2) measures its performance in the marketplace and evaluates the causes of any differences btw expected and actual performance 3) mgmt takes corrective action to close the gaps btw goals and performance this may require chaing the action programs or even changing the goals

invovles checking ongoing performance against the annual plan and taking corrective action when necessary. purpose is to ensure that the company achieves the sales, profits, and other goals set out in its annual plan also involves determining the profitability of different products, terirotirs, markets and channels, STRATEGIC CONTROL invovles looking at whether the company's basic strategies come outdated and each company should periodically reassess its overall approach h the marketplace

marketing managers must ensure tha their marketing dollars are being well spent. in the past they belied that marketing produces intangliel creative outcomes who do not lead themselves readily to measure of producitivy or return but in dot as more constrained economy that is changing marketing's days as a soft science are officially over. in its place, the concept of MARKETING PERFORMANCE- the practice o measuring, learning from, and improving upon marking strategies and tactics over time is taking hold

the net rerun from a marketing investment divided by the cost of the marketing investment it measure the profits generated by investments in marketing activities can be difficult to measure in measuring financila R and I they are both uniformly measure in dollars., however there is no consistent definition of marketing ROI ex. returns on advertising and brand building impact are easily put into dollar returns the major problem is figuring out what specific measures to use and obtaining good data on these measures

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marketign investments result in improved custom vlaue nd satisfaction and in which turn increase customer attraction and retention _. increase custom equity -> determines return on marketing investment

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