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marketing
a framework for mktg mgmt
2
topics for midterm exam
marketing: 4C  STP  4P  $
company
consumer
competition
context
segment > target >
position
product
price
situation
strategy
promotion specifics
place
profits + payoffs
success
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C1: defining marketing
A. marketing today
1. industrial age vs information age
“cards”
“chess”
2. make a market, take a market
(blue-ocean)
(red-ocean)
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1: the new economy
A. the digital revolution
1.consumers
2.companies
B. information age vs industrial age
1.recognize potential quickly
2.marketing: “meeting needs profitably”
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2. marketing tasks
A.
B.
C.
D.
E.
radical marketing
decisions marketers make
scope of marketing
marketing concepts and tasks
defining marketing
A social and managerial process by which
individuals and groups obtain what they need
and want through creating, offering, and
exchanging products of value with others
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2. marketing tasks
F. core marketing concepts
1.target markets, segmentation
2.marketplace, marketspace, metamarket
3.marketers, prospects
4.needs, wants, demands
5.product, offering
6.value, satisfaction
7.exchange, transaction
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2. marketing tasks
F. core marketing concepts
8. relationships and networks
9. channels
10.supply chain
11.competition
brand, industry, form, generic
12.marketing environment
13.marketing program
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3. company orientations
A.
B.
C.
D.
E.
F.
G.
H.
production concept
product concept
marketing concept
integrated marketing
profitability
internal marketing
customer concept
societal marketing concept
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4. how businesses…changing
A.major forces
more wants, more brands, stores hurt
B.company responses
reengineering, outsourcing, ecommerce,
benchmarking, alliances
C.marketer responses
relationship mktg, lifetime value, custshare, target-mktg, individualized,
databases, integrated mktg, channel
partnerships, everone is marketer, factbased decision
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C2:adapting marketing
A. optimizing effort
1. response curves
RESPONSE
saturation
Marginal Response
threshold
$1
EFFORT
2. equate marginal returns for all efforts
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5. in…the new economy
A. hybrid economy
B. different activities
subcontract, keep core, benchmark,
partner, multi-func., new advantages,
intangibles, information, consumer
groups vs products
C. old vs new economy
relationships, information
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6. major drivers of the n.eco
A. tech’y, globalization, deregulation
B. specific drivers
-
digitalization and connectivity
disintermediation and reintermediation
customization and customerization
industry convergence
industry boundaries are blurring rapidly
there are several examples of this
new opportunities at the intersection
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7. business practices… change
A. old economy business beliefs
B. new economy business beliefs
C. the new hybrid
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7. business practices… change
Old Economy New Economy
Organize by product units
Focus on profitable transactions
Look mostly at financial scorecard
Focus on shareholders
Marketing does the marketing
Build brands through advertising
Focus: customer acquisition
Organize by customer segments
Focus on customer lifetime value
Look also at marketing scorecard
Focus on stakeholders
Everyone does the marketing
Build brands through behavior
Focus: customer retention /
growth
No customer satisfaction Measure customer satisfaction and
measurement retention rate
Overpromise, underdeliver Underpromise, overdeliver
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8. marketing…change
A. e-business, e-commerce,
e-purchasing, e-marketing
B. b2b, b2c, c2c, c2b, search engines
C. why did dot-coms fail?
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9. setting up websites
A.move to emarketing, epurchasing
B.design an attractive site
context, content, community,
customization, communication, connection,
commerce
C.build a revenue, profit model
advertising, sponsorship, alliance,
membership, profile, sales, transactions,
research/info, referral
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10. CRM
A. CRM & database marketing
-
realtime service
customize
reduce defections
inc. longevity
inc. share of wallet
improve/terminate low-profit customers
focus on high value customers
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10. CRM
Mass Marketing One-to-One Marketing
Average customer Individual customer
Customer anonymity Customer profile
Standard product Customized market offering
Mass production Customized production
Mass distribution Individualized distribution
Mass advertising Individualized message
Mass promotion Individualized incentives
One-way message Two-way messages
Economies of scale Economies of scope
Share of market Share of customer
All customers Profitable customers
Customer attraction Customer retention
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10. CRM
B. data warehouses & data mining
-
-
capture information at all touchpoints
use the database
downside
high investment, not everyone uses
not everyone want relationships
privacy/security concerns
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C3:value, satisfaction,…
A. there can be no satisfaction!
1. affect? behavior? cognition?
2. just use loyalty? referral?
B. value maps
1. perceived performance, cost
2. fair value line
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C3:value, satisfaction,…
performance’
RR
MB
LX
XJ
FF
price’
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11. define value, satisfaction
A. perceived value
perceived performance, cost
B. customer satisfaction
expectation, value proposition,
experience
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12. high performance…
A.
B.
C.
D.
stakeholders
processes
resources
culture
1. profits
2. patrons
3. process
resources
4. people
balanced
scorecard
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13. delivering value
A. value chain
B. value delivery network
(supply chain)
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14. attract/retain customers
A. attract customers
B. cost of lost customers
C. retain customers
D. use CRM, build equity
value, brand, relationship equity
basic>reactive>accountable>
proactive> partnership
E. strengthen bonds
financial, social, structural
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15. customer profitability
A. measure
16. implement TQM
A. measure
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C4: strategic planning
population
random sample
control group
control group
behavior
=
=
not
=
treatment
treatment group
treatment group
behavior
• if behaviors are unequal, cause is “treatment”, when
control group and treatment group are exactly alike
• how can you build strategy if you don’t know causes?
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17. 3 key areas, 4 levels
A. key areas
business as investments
assessment of growth, compet’n
strategy for each business (unit)
B. organizational levels
corporate, division, unit, product
C. marketing plan
situation, strategy, specifix, success
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18. corporate/division plans
A. mission
us? them? value? will, should be?
B. organize business units
groups, needs, technology
unique, competitor/profit variables
C. BCG: ??, **, $$, xx
D. GE model
E. intensive, integrative, diversificat’n
growth
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18C,18D: corp./div. plans
growing stars
market
???
stagnant
market
bcg
ge
$cow
hi-share
hi
market
med
attractiveness
lo
dogs
lo-share
hi
med
lo
protect
invest
build
build
manage
harvest
refocus
manage
divest
business strength
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18E. corp./div. plans
integrative growth
backward, horizontal, forward
intensive growth
market penetration, market development,
product development
diversification growth
concentric, horizontal, conglomerate
old prod
old mkt
mkt pen
sim mkt
mkt exp
new mkt
mkt dev
sim tech
tech exp
biz exp
conc div
new prod prod dev
hor div
cong div
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19. business str’gic planning
A. mission
B. SWOT
- internal, external environments
C. goals
- priorities, specific, realistic, good
D. strategy
1. low cost, differentiate, focus
2. is operational effectiveness sufficient?
3. strategic & marketing alliances
E. program formulation & implementation
F. feedback/control
1. change happens, effectiveness vs. efficiency
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20. the marketing process
A. The Value-Delivery Sequence
B. Steps in the Marketing Process
C. Product Planning:
The Contents of a Marketing Plan:
1.Executive Summary and Table of Contents
2.Current Marketing Situation [4C]
3.Opportunity & Issue Analysis [SWOT+Issues]
4.Objectives (Financial, Marketing) [$’]
5.Marketing Strategy [STP]
6.Action Programs [4P]
7.Financial Projections [$]
8.Controls
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21. managing the process
A. organize the department
functional, geographic, product
market, product-market,
corporate-divisional, global
B. build a marketing orientation
C. creativity
D. implementation
E. evaluation/control
annual, profit, efficiency, strategic
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C5: markets, demand, envt
X. reliability
consistency
Y. measure many times
1.multiple-item scales
2.statistical analyses
e.g., correlation
among items
valid
reliable
X. validity
accuracy, correctness
Y. check for validity
1. face/content validity
does it look right?
2.concurrent validity
does it relate to what
it should relate to?
3. discriminant validity
does it tell different
groups apart?
4. predictive validity
what is its track record?
valid & reliable
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22. what to watch?
A. wants, preferences, behaviors
B. shifts, non-price competition, tech
C. info needs changing
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23. information, intelligence
** more info ~ more better (MIS)
** input, intel. ~ info ~ insight
A. internal records
B. marketing intelligence
C. marketing research
systematic, suppliers, steps:
define, design, gather data,
analyze, present use
D. mktg decision support systems
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24. forecast demand
A. which market?
potential, available, served, penetrated
B. demand measurement
demand, minimum & potential
C. company demand
D. estimate current demand
E. estimate future demand
macro, micro, methods
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25. macro environment
A. trend spotting
B. demographics
C. economy
D. natural
E. technological
F. political/legal
G. social cultural
H. shifts of secondary values
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C6: analyze consumers
X. are you a computer?
Y. Rb is not the same as Ra
purchase
Rb reasons before
time
Ra reasons after
Z. everyone escalates
: reactance, consistency+closure, framing
: unanticipated discoveries, hunger?
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26. how/why you buy
A. cultural factors
cultures, sub-cultures, social class
B. social factors
reference groups: membership, opinion
leader, family of origin and procreation,
roles/status
C. personal factors
1.
2.
3.
4.
age, lifecycle, family lifecycle,
occupation and economic situation
lifestyle, psychographics (VALS)
personality, brand personality, self-concept
sincerity, excitement, competence, sophistication, ruggedness
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26. how/why you buy
D. psychological factors
1. motivation
: Freud: sex sells ?!, laddering
: Maslow: hierarchy of needs:
actualization, belonging, competence
: Herzberg: satisfiers (become) dis-satisfiers
2. perception
: selective attention, selective distortion,
selective retention
3. learning
4. beliefs and attitudes
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27. buying decision process
A. buying roles (initiate, influence…
B. buying behaviors
[involve, diff.s
complex, dissonance,
variety seeking, habitual
[hh, hl
[lh, ll
C. stages
problem recognition ~ search ~ DMM
evaluation ~ purchase ~ post-purchase
D. customer satisfaction
measure, reduce complains
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DMM decision-making-matrix
memory
weights >
4
IBM
3
Dell
4
Compaq
HP
graphics
5
3
4
speed
5
5
3
totals
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4
4
5
4
57
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3
4
• redesign the computer
• change weights
• change beliefs about us
• highlight neglected criteria
• change beliefs about them
• shift the buyer’s ideals
pages: 206-207
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C7: analyze customers
Y. is business entertainment ethical?
Z. international business decisions?
become same? more different?
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28. organizational buying
A. consumers v customers
fewer, bigger, professional buyers
inelastic, fluctuating, derived demand
B. specialized markets
institutional, government
C. business buying situations
straight rebuy…new task
systems buying & selling
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29. participants in b.buying
buying center: initiators, users…
A. major influence
envt, orgzn, interpersonal, indiv.
B. cultural influence
different customs
become same? more different?
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30. purchasing process
A. problem recognition
B. need description, specifications
C. supplier search
D. proposal solicitation
E. supplier selection
F. order routine specification
G. performance review
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C8: dealing with competition
A. brand vs. form competition
1.what do you choose first:
brand or form?
2.brand share vs. form share?
hi
brand share
lo
lo
hi
form comp
leave?
defend
brand comp
form share
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C8: dealing with competition
form-first
vs
brand-first
insurance
insurance
agent
web
1-800
State Farm Progressive State Farm
Allstate
Allstate? Allstate?
Allstate
agent
web?
1-800?
State
Farm
agent
1-800
Progressive
web
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31. competitive markets
A. market attractiveness (5forces
B. identify competitors
brand, industry, form, generic
C. industry concept of competition
#sellers/buyers, entry-exit barrier,
cost structure, vert. integration,
globalization
D. market concept of competition
same need satisfied? substitutes?
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32. competitor analysis
A. strategies
B. objectives
C. strengths, weaknesses
dominant…weak, nonviable
share of mind + heart  market
D. reaction patterns
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33. competitive intelligence
A. design the system
setup, collect, evaluate, disseminate
B. select competitors to attack/avoid
customer value analysis
classes:
strong…weak
close…distant
good…bad
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34. design comp. strategies
A. market leaders
expand market, defend, + share
B. market challenger
objectives & opponents, attack
C. market follower
imitation: clone, adapt
D. market nicher
specialize, margin not volume
E. be customer+competitor focused
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conclusions
A. analyze each part+process
B. 4C are the players
C. strategy is [C~3C]
midterms
D. next, marketing strategy is STP
E. next, specifix [specify mixes]
finals
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topics for final exam
marketing: 4C  STP  4P  $
company
consumer
competition
context
segment > target >
position
product
price
situation
strategy
promotion specifics
place
profits + payoffs
success
57