Download marketing: creating superior customer value

MARKETINGELEMENTS–SEMESTERNOTES
MARKETING:CREATINGSUPERIOR
CUSTOMERVALUE
WHATISMARKETING?
Marketingdealswithcustomers–creatingcustomervalueandsatisfaction.
Marketingisaboutmanagingprofitablecustomerrelationships.
DualGoal:attractnewcustomersbypromisingsuperiorvalue&keepandgrowcustomers
bydeliveringsatisfaction
A. MARKETINGDEFINED
Marketingisanorganisationalfunctionandasetofprocessesforcreating,communicating
anddeliveringvaluetocustomersandformanagingcustomerrelationshipinwaysthat
benefittheorganizationanditsstakeholders.
Marketingisnotonly“telling&selling”anymore=>understandingcustomers’needs,
developingproductsthatprovidesuperiorcustomervalue,andprices,distributeand
promotethemeffectively,theywillselleasily.
Marketingprocess:createvalue>communicatevalue>buildstrongcustomerrelationship
tocapturevalueinreturn.
Socialmarketingistheapplicationofcommercialmarketingtechnologiestotheanalysis,
planning,executionandevaluationofprogramsdesignedtoinfluencethevoluntary
behaviouroftargetaudiencesinordertoimprovetheirpersonalwelfareandthatofthe
societyofwhichtheyarepart.
Demarketingismarketingwhichtheaimistoreducedemand,eithertemporarilyor
permanently,becausetheorganizationcannothandleit.
B. THEMARKETINGPROCESS
Understand the
marketplace and
customer needs
and wants
Design a
customer-driven
marketing
strategy
Construct an
integrated mkg
program that
delivers superior
value
Build profitable
relationships
Capture value
from customers
to create profit
and customer
equity
Ø Bycreatingvalueforcustomers,marketerscapturevaluefromcustomersinreturn
MARKETINGELEMENTS–SEMESTERNOTES
STRATEGICPLANNING
ANDMARKETING
Whyisplanningimportant?
Ø Makesureeveryonehasthesameunderstandingofthecompany’sfuture
Ø Multipleplansfordynamicscenarios
COMPANY-WIDESTRATEGICPLANNING:DEFININGMARKETING’SROLE
Strategicplanning:theprocessofdevelopingandmaintainingastrategicfitbetweenthe
organization’sgoalsandcapabilitiesanditschangingmarketingopportunities.
1. Definingthecompanymission
2. Settingcompanyobjectivesandgoals(corporatelevel)
3. Designingthebusinessportfolio
4. Planningmarketingandotherfunctionalstrategies(BusinessUnit,product&
marketlevel)
A. ESTABLISHINGCORECOMPETENCIES
Corecompetencies:thespecificskillsandabilitiesthatenableafirmtodeliverproductsor
servicestoitscustomersinawaywhichaddsvalueforcustomersandwhichisdifficultfor
competitorstocopy.
B. DEFININGAMARKET-ORIENTEDMISSION
Missionstatement:astatementoftheorganization’spurpose–whatitwantstoaccomplish
inthelargerenvironment.
C. SETTINGCOMPANY’SOBJECTIVESANDGOALS
Tohaveaneffectonstrategicplanning,thecompany’smissionneedstobeturnedinto
detailedsupportingobjectivesforeachlevelofmanagement:
BusinessPlanning:ongoingprocessofmakingdecisionsthatguidethecompanybothin
shorttermandforthelonghaul.
StrategicPlanning:themanagementdecisionprocessthatmatchesthecompany’s
resourcesandcapabilitiestoitsmarketopportunitiesforlong-termgrowth.
Processofdevelopingamissionandlong-rangeobjectivesanddetermininginadvancehow
theywillbeaccomplished.
FunctionalPlanning:itisaccomplishedbythevariousfunctionalareasofthecompany.
Example:MarketingPlanning:1.Objectives2.MarketingAnalysis(customertarget,
competitortarget,context)3.Corestrategy4.Implementation:MarketingMix
MARKETINGELEMENTS–SEMESTERNOTES
MARKETINGSTRATEGIESFOR
COMPETITIVEADVANTAGE
Competitiveadvantage:anadvantageovercompetitorsgainedbyofferingconsumers
greatervaluethancompetitorsdo.
Competitoranalysis:theprocessofidentifyingkeycompetitors,assessingtheirobjectives,
strategies,strengthsandweaknesses,andreactionpatterns,andselectingwhich
competitorstoattackoravoid.
Competitivemarketstrategies:strategiesthatstronglypositionthecompanyagainst
competitorsandgivethecompanythestrongestpossiblestrategicadvantage.
COMPETITORANALYSIS
A. IDENTIFYINGCOMPETITORS
ð Industrypointofview:samecompanieswithinanindustry(e.g.Cocavs.Pepsi)
ð Marketpointofview:companiestryingtosatisfythesamecustomerneedorbuild
relationshipswiththesamecustomergroup(e.g.Pepsivs.Bottledwater,energy
drinks,fruitjuice,etc.)
Carefulwithmarketingmyopia:acompanyismorelikelytobeburiedbyitslatent
competitorsthanitscurrentones.
B. ASSESSINGCOMPETITORS
Ø
Ø
Ø
Ø
Determinecompetitors’objectives
Identifycompetitors’strategies
Assesstheirstrengthsandweaknesses
Estimatetheirreactions
Benchmarking:theprocessofcomparingthecompany’sproductsandprocessestothoseof
competitorsorleadingfirmsinotherindustriestoidentifybestpracticesandfindwaysto
improvequalityandperformance.
C. SELECTINGCOMPETITORSTOATTACKANDAVOID
Strongorweakcompetitors?Closeordistantcompetitors?Goodorbadcompetitors?
MARKETINGELEMENTS–SEMESTERNOTES
NEWPRODUCTS
NEWPRODUCTDEVELOPMENTSTRATEGY
1. Ideageneration:thesystematicsearchfornew-productideas
2. Ideascreening:screeningnewproductideasinordertospotgoodideasanddroppoor
onesassoonaspossible
!!!Productidea=ideaforapossibleproductthatthecompanycanseeitselfofferingtothe
market//Productconcept:detailedversionofthenew-productideastatedinmeaningful
consumerterms.
3. Conceptdevelopmentandtesting:developmentoftheproductideastatedin
meaningfulconsumertermsandtestingnewproductconceptswithagroupoftarget
consumerstofindoutiftheconceptshavestrongconsumerappeal.
4. Marketingstrategydevelopment:designinganinitialmarketingstrategyforanew
productbasedontheproductconcept.
5. Businessanalysis:astrategicand/orfinancialevaluationoftheexpectedreturnon
investmentinanewproduct.
6. Productdevelopment:developingtheproductconceptintoaphysicalproductto
ensurethattheproductideacanbeturnedintoaworkablemarketoffering
7. Testmarketing:thestageofnew-productdevelopmentinwhichtheproductand
marketingprogramareintroducedintomorerealisticmarketsettings
8. Commercialisation:introducingthenewproductintothemarket.
THEADOPTIONPROCESSFORNEWPRODUCTS
Adoptionprocess:thementalprocessthroughwhichanindividualpassesfromfirstlearning
aboutaninnovationtofinaladoption.
1. Awareness:theconsumerbecomesawareofthenewproduct,butlacks
informationaboutit
2. Interest:theconsumerseeksinformationaboutthenewproduct
3. Evaluation:theconsumerconsiderswhethertryingthenewproductmakessense
4. Trial:theconsumertriesthenewproductonasmallscaletoimprovehis/her
estimateofitsvalue
5. Adoption:theconsumerdecidestomakefullandregularuseoftheproduct
Diffusionprocess:theprocessbywhichtheuseofaninnovationisspreadwithinamarket
group,overtimeandovervariouscategoriesofadopters.