Download Chapter(1(–(Creating(Superior(Customer(Value

MKTG101 Exam Notes, Session 2 2013
Chapter(1(–(Creating(Superior(Customer(Value(
Define&marketing&and&outline&the&steps&in&the&marketing&process.&
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Marketing:(The(process(by(which(companies(create(value(for(customers(and(build(strong(customer(
relationships(in(order(to(capture(value(from(customers(in(return.(
Marketing(Process:((Involves(five(steps,(the(first(four(steps(create(value(for(customers.((
1.(Understand(the(marketplace(and(customer(needs(and(wants.((
2.(Design(a(customerGdriven(marketing(strategy(with(the(goal(of(getting,(keeping(and(growing(target(
customers.((
3.(Construct(a(marketing(program(that(delivers(superior(value(–(four(p’s;(product,(price,(place(&(
promotion.((
4.(Building(profitable(customer(relationships(and(creating(customer(satisfaction(and(perceptions(of(
value.((
5.(Reap(the(rewards(of(strong(customer(relationships(by(capturing(value(from(customers(–(loyal(
customers.(
Explain&the&importance&of&understanding&customers&and&the&marketplace,&and&identify&the&five&core&
marketplace&concepts&
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• People(have(almost(unlimited(wants,(but(limited(resources,(and(will(choose(the(product(that(provides(
the(highest(perceived(value(and(satisfaction(for(their(money.(
• Understanding(customer’s(needs,(wants(and(demand,(allows(marketers(to:(
o Design(wantG(satisfying(market(offerings(
o Build(valueGladen(customer(relationships(with(customer(lifetime(value(and(greater(share(of(
customer.((
• Results(in(increased(longGterm(customer(equity(for(the(firm.(
• Core(Marketplace(Concepts:(Needs,(wants(and(demands;(market(offerings((products,(services(and(
experiences);(satisfaction(and(value;(exchange(and(relationships;(and(markets.(
o Wants(are(the(form(taken(by(human(needs(when(shaped(by(culture(and(individual(personality.(
o When(backed(by(buying(power,(wants(become(demands.((
Identify&the&key&elements&of&a&customer<driven&marketing&strategy.&
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1.(Company(must(decide(whom(it(will(serve;(through(market(segmentation(and(selecting(their(target(
market.(((
o Eg.(David(Jones(target(customers(who(want(higher(quality(brands,(while(Big(W(target(families(
who(want(affordable(products.(
2.(Decide(how(it(will(serve(targeted(customers;(how(it(will(differentiate(and(position(itself(in(the(
marketplace((
o Achieved(through(a(value(proposition;(gives(customers(a(reason(to(buy(the(brand(over(a(
competitor.((
o Eg.(Lexus’s(value(proposition(“pursuit(of(perfection”.((
3.((Develop(lasting(and(profitable(customer(relationships(by(providing(ongoing(value(to(those(
customers.(
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MKTG101 Exam Notes, Session 2 2013
Describe&the&main&trends&and&forces&that&are&changing&the&marketing&landscape&in&this&age&of&
relationships&
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• 2008&GFC(left(many(consumers(out(of(work,(reducing(consumer(spending,(changing(buyer(attitudes(
(frugal).(
• In(response,(companies(adapted(their(marketing(strategies;(value(for(money,(practicality(and(durability.(
o Eg.(Coles(has(reduced(prices(on(basic(food(necessities(such(as(bread(and(milk.(
• Technology(has(changed(the(way(of(marketing;(allowed(companies(new(ways(to(track(and(collect(
information(about(consumers,(build(twoGway(customer(relationships(and(created(consumerGgenerated(
marketing.(&
o Eg.(Growth(in(smart(phones(has(allowed(for(apps,(such(as(coupons(apps,(and(advertising(on(
these(apps.&
• Allowed(consumers(to(collect(their(own(information(about(products,(and(talk(to(other(about(products.(&
o Eg.(Online(forums(such(as(Tripadvisor(allow(consumers(to(share(their(opinions(on(products(and(
services.(Marketers(have(no(control(on(what(is(said(about(their(product.&
• Globalization(has(removed(the(geological(boundaries(on(products,(with(local(companies(in(competition(
with(transnational(companies.(&
o Eg.(Australian(bookstore(Angus(and(Robertson(is(in(competition(with(American(bookstore(
Amazon.(!
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MKTG101 Exam Notes, Session 2 2013
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Chapter(2(–(Delivering(and(Capturing(Value(
Discuss&the&marketing&management&orientations&that&guide&marketing&strategy.&
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Marketing(management(can(adopt(one(of(five(competing(market(orientations.((
Production(Philosophy:(Management’s(task(is(to(improve(production(efficiency(and(bring(down(prices.(
Eg.(Tata’s(Motor’s($2,000(Nano(Car.((
Product(Philosophy:(Customers(favour(products(high(in(quality,(performance(and(innovative(features.(
Focus(on(product(improvement(and(innovations,(and(little(promotional(effort(is(required.((
Selling(Philosophy:(LargeGscale(selling(and(promotion(is(necessary(to(sell(products.(Popular(with(
unsought(goods;(goods(consumers(don’t(necessary(think(of(buying(like(insurance.(
Marketing(Philosophy:(Focus(on(customer(needs,(wants(and(value,(to(achieve(sales(and(profit.(‘Sense(
and(response’(orientation(–(find(the(right(products(for(your(customers.((
Societal(Marketing(Philosophy:(Deliver(value(to(customers(that(will(improve(customers(and(societal(
wellbeing(–(meeting(today’s(needs,(while(preserving(ability(for(future(generations(to(meet(their(needs.(
Eg.(Replas(creates(their(products((outdoor(furniture,(decking(etc)(from(recycled(plastic.((
Explain&how&marketing&works&with&its&partners&to&create&and&deliver&customer&value&
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Marketers(cannot(produce(superior(value(for(customers(alone;(must(delegate(tasks(to(partners(who(
can(perform(tasks(more(efficiently(such(as(suppliers,(distributors((
Creates(an(effective(value(chain(that(serves(the(customer,(and(a(competitively(superior(value(delivery(
network.(
Explain&why&customer&satisfaction,&customer&value&and&customer&retention&are&central&concepts&in&
delivering&value&to&customers.&
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Customers(will(choose(products(that(they(think(will(give(them(the(best(value.((
Satisfied(customers(are(more(likely(to(repurchase((loyal(customers)(and(to(recommend(the(organisation(
to(others;(higher(company(profits.((
Costs(more(to(attract(new(customers(than(to(retain(old(ones.((
Discuss&customer&relationship&management,&and&identify&strategies&for&creating&value&for&customers&and&
capturing&value&from&customers&in&return&
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Aim(of(customer(relationship(management(is(to(produce(high(customer(equity;(the(total(combined(
customer(lifetime(values(of(all(of(the(company’s(customers.((
By(creating(customer(value(and(satisfaction,(company(can(create(profitable(customers(and(build(
customer(loyalty.(
Company(can(capture(value(from(the(customer(–(satisfied(customers(buy(additional(products,(less(price(
sensitive,(which(results(in(greater(profit.((
Eg.(Club(marketing(programs(offer(members(special(benefits,(and(create(member(communities.(Those(
who(shop(at(Woolworths(receive(8c(per(L(of(fuel(at(Caltex.((
Discuss&the&importance&of&measuring&and&managing&return&on&marketing&investment.&
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Marketing(managers(must(ensure(that(their(marketing(dollars(are(being(well(spent.(
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MKTG101 Exam Notes, Session 2 2013
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In(today’s(tighter(economy,(marketers(must(be(able(to(justify(their(expenses;(adding(value.((
In(response,(marketers(are(using(customerGcentred(measures(of(marketing(impact;(customer(retention,(
customer(lifeGtime(value,(customer(equity,(as(a(key(input(into(their(strategic(decision(making.(
Chapter(3(–(Strategic(Planning(and(Marketing(
Explain&company<wide&strategic&planning&and&its&four&steps.&
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Strategic(planning(involves(developing(a(strategy(for(longGrun(survival(and(growth.(
Evidence(suggests(that(organisations(that(use(strategic(planning(perform(better(than(organisations(
that(don’t.(
1.(Define(the(company’s(mission;(should(be(marketGoriented,(realistic,(specific,(motivating(and(
consistent(with(the(market(environment.(
2.(Set(supporting(objectives(and(goals(from(mission.((
3.(Design(a(business(portfolio(
4.(Develop(functional(plans(in(line(with(the(companyGwide(plan.((
Identify&the&different&areas&that&need&to&be&balanced&in&planning&organisational&strategy.&
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Using(only(financial(measure,(can(result(in(neglecting(other(areas(to(reduce(shortGterm(costs,(however(
these(other(areas(may(lead(to(longGterm(success.(
Thus(organisations(need(to(include(both(financial(and(nonGfinancial(measures(in(assessing(performance.((
Also(need(to(balance(investment(between(goals(related(to(shareholder(returns,(customer(value,(staff(
satisfaction(and(effective(processes.(
Discuss&how&to&design&business&portfolios&and&develop&growth&strategies.&
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Management(plans(its(business(portfolio((collection(of(businesses(and(products(that(make(up(the(
company)(based(on(the(company’s(mission(statement(and(objectives.(
In(an(everGchanging(environment,(management(must(analyse(and(adjust(its(current(business(portfolio(
and(develop(growth(and(downsizing(strategies(for(adjusting(the(future(portfolio.(
Company(can(use(a(formal(portfolioGplanning(method,(but(most(companies(design(more(customised(
portfolioGplanning(approaches(that(better(suit(their(unique(situations.(
Describe&the&elements&of&the&marketing&mix&and&the&forces&that&influence&it.(&
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Marketing(mix(is(product,(price,(place(and(promotion((the(four(P’s).(
Customer(value(and(relationships(are(at(the(centre(of(marketing(strategy(and(programs.((
Company(must(first(divide(the(market(into(smaller(segmentations(it(can(serve,(through(segmentation,(
targeting,(differentiation(and(positioning,(and(decide(how(it(wants(to(bring(value(to(consumers.((
Then(design(an(integrated(marketing(mix(to(produce(the(desired(response(in(the(target(market.(
List&the&marketing&management&functions,&including&the&elements&of&a&marketing&plan.&&
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• Company(must(engage(in(marketing(analysis,(planning,(implementation(and(control(to(find(the(best(
strategy(concerning(the(marketing(mix.((
• Marketing(Plan:(Includes(the(executive(summary,(current(marketing(situation,(an(environmental(
analysis(of(threats(and(opportunities,(objectives(and(issues,(marketing(strategies,(action(programs,(
budgets(and(controls.((
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MKTG101 Exam Notes, Session 2 2013
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To(plan(good(strategies(is(often(easier(than(to(carry(them(out.(To(be(successful,(companies(must(also(
be(effective(at(implementation—turning(marketing(strategies(into(marketing(actions.(
Marketing(departments(can(be(organised(in(one(or(a(combination(of(ways:(functional(marketing(
organisation,(geographic(organisation,(product(management(organisation(or(market(management(
organisation.((
In(this(age(of(customer(relationships,(more(companies(are(changing(their(organisational(to(customer(
relationship(management.((
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Chapter(4(–(Marketing(Strategies(For(Competitive(Advantage(
Discuss&the&need&to&understand&competitors&as&well&as&customers&through&competitor&analysis.&
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• To(prepare(an(effective(marketing(strategy,(a(company(must(consider(its(competitors(as(well(as(its(
customers.(
• Building(profitable(customer(relationships(requires(satisfying(target(consumer(needs(better(than(
competitors(do.(
• Companies(must(continuously(analyse(competitors(and(develop(competitive(marketing(strategies(that(
position(it(effectively(against(competitors(and(give(it(the(strongest(possible(competitive(advantage.(
• Competitor(analysis(involves:(
o 1.(Identify(the(company’s(main(competitors,(using(both(an(industry(and(marketG(based(analysis.((
o 2.(Gather(information(on(competitors’(objectives,(strategies,(strengths(and(weaknesses,(and(
reaction(patterns.(
o 3.(Select(competitors(to(attack(or(avoid(based(on(the(gathered(information.((
• Competitive(intelligence(must(be(collected,(interpreted(and(distributed(continuously.((
Explain&the&fundamentals&of&competitive&marketing&strategies&based&on&creating&value&for&customers.&
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Which(competitive(marketing(strategy(makes(the(most(sense(depends(on(the(company’s(industry(and(
on(whether(it(is(a(market(leader,(challenger,(follower(or(nicher.((
Market(Leader:(Has(to(mount(strategies(to(expand(the(total(market,(and(protect(and(expand(market(
share.((
Market(Challenger:(Tries(aggressively(to(expand(its(market(share(by(attacking(the(leader,(other(runnerG
up(companies,(or(smaller(firms(in(the(industry.((
Market(Follower:(A(runnerGup(firm(that(chooses(not(to(rock(the(boat,(usually(from(fear(that(it(stands(to(
lose(more(than(it(might(gain.(Isn’t(without(a(strategy(and(seeks(to(use(its(particular(skills(to(gain(market(
growth.((
o Some(followers(enjoy(a(higher(rate(of(return(than(the(leaders(in(their(industry.((
Market(Nicher:(A(smaller(firm(that(is(unlikely(to(attract(the(attention(of(larger(firms.(Often(become(
specialists(in(some(endGuse,(customer(size,(specific(customer,(geographic(area(or(service.(
Illustrate&the&need&for&balancing&customer&and&competitor&orientations&in&becoming&a&truly&market<
centred&organisation.&
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A(competitive(orientation(is(important(in(today’s(markets,(but(an(overGfocus(on(competitors(can(result(
in(the(loss(of(customers.((
Companies(are(more(likely(to(be(hurt(by(emerging(consumer(needs(and(new(competitors(than(by(
existing(competitors.((
Companies(must(balance(customer(and(competitor(considerations(to(become(a(truly(marketGcentred(
organisation.(
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