Integrated Marketing, week 1
Integrated Marketing, week 1 24745
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This 10 page Class Notes was uploaded by Michaela Fisher on Wednesday September 28, 2016. The Class Notes belongs to 24745 at NYU School of Professional Studies taught by Monique Carswell in Fall 2016. Since its upload, it has received 46 views. For similar materials see Integrated Marketing in SPS at NYU School of Professional Studies.
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Date Created: 09/28/16
Chapters 1-3 Tuesday, September 13, 2016 5:44 PM CHAPTER ONE: Defining marketing for the new realities The value of Marketing Financial success often depends on marketing ability. Successful marketing BUILDS demand for products and services, which, in turn, create jobs. Marketing Decision Making o Strong brands=Loyal Customers o Internet fueled world. MARKETING: meeting needs (of customer) profitably. Marketing Management: the art and science of choosing target markets and getting, keeping and growing customers through the creating, delivering and communicating superior customer value. Marketing Entities: goods, services, events, people, places, information, properties, organizations and ideas! Markets are customer groups Key Markets: Consumer, Business, Global, Nonprofit and Governmental. Needs, Wants and Demands. Owned media: Facebook Paid media: TV radio Earned Media: consumer's media (production) Impressions: a metric used to track the scope of a communications reach and compare against all comm. Types Engagement: the extent of a customers attention and active involvement with the comm. To move forward requires incorporating the internet and digital efforts into marketing plans. Accountability is top priority. The ideal is retaining winning practices from the past while adding fresh approaches that reflect the new marketing realities. Market Value comes from intangible assets (brands, customer base, employees, ditributor and supplier relations and intellectual capital. Marketers affect: store layouts, package designs, product functions, employee training, shipping and logistics. MARKETING PHILOSOPHIES (concepts): Production concept: high efficiency low cost Product concept: innovative high quality and performance products Selling: goods people don’t normally think of buying. Marketing: selling the right products for your customer. Holistic: all aspects. Relationship marketing: building long term relationships with customers in order to retain business. Integrated Marketing: many different marketing outlets are used to deliver value that markets design and implement any one marketing activites while keeping the other channels in mind. Internal marketing: Hiring, Training and Motivating employees. Performance Marketing: legal, ethical, social and environmental effects of markets (reputation with consumer) Modern Marketing 4 P's People Processes Performance Programs FO FOUR P's UR A'S Affo Price rda Promotion bilitPlace y Product Acc essi bilit y Awa ren ess Acc ept abili ty Primary Marketing Management Tasks Developing Marketing Strategies and Plans Capturing marketing insights Connecting with customers Builiding strong brands Creating value Communicating value Delivering Value Conducting the marketing responsibly for long term success Technology, globalization and social responsibility have created new opportunities and challenges which, in turn, has changed marketing management. CHAPTER 2: Developing Marketing Plans and Strategies The value delivery process identifying, delivering and communicating superior value. Value Chain: a tool for identifying key activities that create value and costs in a specific business. Since there are so many people with their own wants, perceptions, buying criteria etc. so the smart competitor must design and deliver offering for well-defined target markets. This places marketing at the beginning of planning. Companies are a part of a value delivery process Value Delivery Phase One: Choosing the value The research done before the product is created. o Segment the market, select appropriate target and develop the offering's value position. (STP: segmentation, targeting, positioning ) Phase Two: Providing the value Identify specific product features, prices and distribution Phase Three: Communicating the value Utilizing communication terms to announce and promote the product. Value delivery process begins before the product is released and continues after launch . The Value Chain -> Identifying ways to create more customer value Primary activities 1 Inbound Logistics 2 Operations 3 Outbound logistics 4 Marketing 5 Service Procurement Technology development Human resource Firm infrastructure Managers identify the "best of class" practices in the worlds best companies using the media, consulting customers etc. (benchmarking) Core Business processes Market-sensing process (getting info about the market) New offering realization process (researching, developing and launch offerings within budget) Customer acquisition process (defining target markets and prospecting new customers) Customer relationship management process (building deeper understanding, relationships and offerings to individual customers) Fulfillment management (receiving and approving orders) Value delivery network = Supply Chain Core Competency 1 Is a source of competitive advantage and makes a significant contribution to perceived customer benefits 2 It has applications in a wide variety of markers 3 It is difficult for competitors to imitate Market driven organizations excel in market sensing, customer linking and channel bonding. Develop peripheral vision, tremendous opportunities and threats often begin as "weak signals" Maximizing core competencies means realigning the business. REALIGNMENT Redefine the "big idea" Reshape the business scope Reposition the brand identity The central role of Strategic Planning Companies that stand out as marketing masters focus on the customers and are organized to respond effectively to changing needs. Strategic Planning Managing the business as an investment portfolio Assessing the markets growth rate and the position in the market Establish a strategy Organizational Levels 1 Corporate 2 Division 3 Business unit 4 Product Marketing Plan -- central instrument directs and coordinates marketing effort Strategic - lays out target marketing and the firms value proposition based on the analysis of the best market opportunities. Tactical - specifies on the Tactics (features, promotions, merchandising ) Corporate and Division Strategic Planning Corporate planning activities Defining the corporate mission o What is our business o Who's is our customer o What is of value to the customer? o What will our business be? o What should our business be? Establishing strategic business units (SBU) to separate strategy and assign funding Assigning resources to each strategic business unit (growing, harvesting and hold on) Assessing growth opportunities (buy business, sell business) Growing within business=intensive Acquiring business=integrating Unrelated business=diversification Product Orientation vs Market orientation Company Product Market MissouriPacific RailrWe run a railroad We are a peopleandgoods mover Xerox We make copying equipmentWe improve office productivity Standard Oil We sell gasoline We supply energy Columbia Pictures We make movies We market entertainment Intensive Growth -> opportunities to improve existing business Market-penetration strategy -> explore how to gain more market share with its current product DESIRED SALES Diversification growth (industry is attractive and the company has the right mix of business strength to succeed) Integrative growth (increase sales through backward, forward and horizontal integration within the industry) Intensive growth (above) CURRENT PORFOLIO Market Development Strategy -> new markets for current products. Product-development strategy -> new products for current markets . Diversification strategy -> new products for new markets. Downsizing and divesting older business Companies have to prune, harvest or divest old business to release needed resources for other uses and to reduce costs. Corporate culture: the shared experiences, stories, beliefs and norms that characterize a business. MARKETING INNOVATION Royal Dutch/Shell Group created SCENARIO ANALYSIS (develops plausible representation of a firms Market Opportunity analysis (MOA) - Can we articulte the benefits convincingly to a defined target market(s)? Can we locate them and reach cost-effective media and trade channels? Does our company posses or have access to the critical capabilities and resources we need to delver the customer benefits? Business Unit Strategic Planning 1 The Business Mission 2 SWOT analysis (internal- strength, weakness, external- opportunities and threats) 3 Goal Formulation (specific goals for the planning period) 4 Strategic Formulation (plan for meeting goals) Overall cost leadership, differentiation, focus. a Strategic alliances (partner relationship management) i Product or service alliances ii Promotional alliances iii Logistic alliances iv Pricing collaborations 2 Program formulation and implementation 3 Feedback and Control The Nature and Contents of a Marketing Plan Executive summary and table of contents Situation analysis Marketing strategy Marketing tactics Financial projections Implementation controls The role of research To obtain up-to-date information about the environment, the competition, and the selected market segments. The role of relationships Maintaining internal and external relationships to ensure the fluidity of a plan Marketing plan to marketing action! Action plans and schedules Chapter 3: Creating Long-Term Loyalty Relationships Building Customer Value, Satisfaction and Loyalty Modern Customer oriented organizational Chart a Customers b Frontline people c Middle Management d Top Management Every level needs to be engaged with customers. Traditionally, upside down D to A (obsolete model) Customer Perceived Value (CPV) Defining Value Consumers have the tools to verify companies' claims and seek out better alternatives (value maximizers) CPV is the difference between the customer's evaluation of all the benefits and costs of an offering and the perceived alternatives. Total customer benefits - the monetary value of the bundle of economic, functional and psychological benefits customers expect from a given market offering because of the product, service, people and image Total customer cost perceived bundle of costs customers expect to incur in evaluation, obtaining, using and disposing of the given offering. Consumer then applies value concepts. o Customer value analysis 1. Identify the major attributes and benefits the customers value 2. Assess the quantitative importance of the different attributes and benefits 3. Assess the company's and competitors' performances on the different customer values against their rated importance 4. Examine how customers in each segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis. 5. Monitor customer values over time Choice processes and implications -> buyers will give more weight to their personal benefits than to the companies benefits Delivering High Customer Value The value proposition consists of the whole cluster of benefits the company promises to deliver more than just the core positioning. It’s a promise of the benefits that the customers would reap from the company's market offering and their relationship with the supplier Total Customer Satisfaction Monitoring Satisfaction Measurement techniques (periodic surveys) Customer satisfaction is a goal and marketing tool dependent also on product and service quality Marketers role in Satisfaction 1 Identify customer needs and requirements 2 Communicate customer expectations to product designers 3 Customer orders filled correctly and online 4 Customers have the proper instructions, training, and technical assistance in the use of the product 5 Stay in touch with customers to ensure and maintain satisfaction 6 Gather customer ideas for product and service improvements and convey to appropriate departments. MAXIMIZING CUSTOMER LIFETIME VALUE Attracting and keeping profitable customers (80% of a company's profits come from the top 20% of its customers) Customer lifetime value is the value of future profits expected over the customer's life time purchases. Attracting Retaining Customers Reducing Defection (churn)
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