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by: Dr. Axel Oberbrunner


Dr. Axel Oberbrunner

GPA 3.91

N. Martin

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N. Martin
Class Notes
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This 72 page Class Notes was uploaded by Dr. Axel Oberbrunner on Monday October 26, 2015. The Class Notes belongs to MKTG 350 at University of South Carolina - Columbia taught by N. Martin in Fall. Since its upload, it has received 30 views. For similar materials see /class/229513/mktg-350-university-of-south-carolina-columbia in Marketing at University of South Carolina - Columbia.




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Date Created: 10/26/15
Company and Marketing Chapter 2 Strategy V Partnering to NeXt Exquot age 7 Build Ejugsgomer 1 3 7 Relationships a Previewing the Concepts 1 Explain companywide strat gic planning and its four steps 39 cuss how to design t e ma e If g mi gemem fljnc Ion ii t 5 of a marketing pi Wi m imd mg m mmg ma eggm it Wim Time9 Lm1 rz iiimi U mcoi mb ii i am fig imgmg img mglmcal mg gpM W g Defining 5 Setting company Designing the qompany objectives the business mission and goals pOrtfolio 76 pyright zoos Prentice Hall r w The Mission Statement I A statement of the organization s purpose 39 Questions the mission statement should answer include What is our business Who is our customer What do consumers value What should our business be I Mission statements should be market oriented not product oriented Frentlce Hall copyright 2005 Setting Firm Objectives and Goals I The mission should be translated into supporting objectives for each level of management Creates a hierarchy of objectives that are consistent with one another Business objective Increase profits Marketing objective Increase market share of domestic and international markets Frentlce Hall copyright 2005 Business Portfolio The collection of businesses and products that make up the company The businesses chosen for the portfolio should be those that t the rm s strengths and weaknesses A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses Can be a company division 3 product line within a division or sometimes a single product or brand Designing the Business Portfolio I The company must Anayze its current business portfolio or strategic business units SBUs Decide which SBUs should receive more less or no investment and Develop strategies for growth and downsizing Prentice Hall copyright 2005 Portfolio Analysis I Portfolio analysis Process by which management evaluates the products and businesses making up the company Resources are directed toward more pro table businesses while weaker ones are phased out or dropped Frentlce Hall copyngm zoos u Question mark Prentice Hall Co 39 BCG GrowthShare Matrix I Stars Strategy Build into cash cow via investment I Cash Cows Strategy Options Maintain for cash to build STARS I Question Marks Strategy Options Build into STAR via investment if warranted or reallocate financing and let slip into DOG status I Dogs Strategy Options Invest harvest or divest Frentlce Hall copyright 2005 Problems with Matrix Approaches I Several problems exist Can be dif cult time consuming and costly to implement Can be dif cult to de ne SBUs and measure market share and growth rate Focus is on current businesses gives little help with future planning Frentlce Hall copyngm zoos Developing Strategies for Growth and Downsizing The ProductMarket Expansion Grid Existing New products products Market Product Existing markets Penetration development New Market Diversification markets development Figure 23 Prentice Hall copyright 2005 Penetration Product Development Market Development J Diversification Prentice Hall Copw 214 Planning Marketing I Marketing plays a key role in strategic planning Provides a guiding philosophy The Marketing Concept Selling Concept Production Concept Provides inputs to strategic planners Designs strategies to reach objectives Frentlce Hall copyright 2005 Value Chain I Each company department engages in some type of value creating activity Purchasing Marketing Operations etc I Coordination between departments is key to providing superior value Value Delivery Network I Components include Company s value chain Each department is a link Distributors Suppliers Customers I Improved performance in delivery value to customers is the goal Frentlce Hall copyright 2005 CustomerDriven Marketing Strategy I Succeeding in today s competitive marketplace requires that firms be customer centered Firms often must win customers away from the competition by delivering greater value Understanding customer needs and wants is key to being able to provide value Frentlce Hall copyright 2005 VW guy39sans swurf I Markeiing J intermediaries 1 6 r 6 A 5399 a Q 1 3 Profitabie customer relationships Segm tation 7 7 of meli n gaimgrk u into d i39stiifn ctiysgrogu pis of buyers withLdif 39quotrejn t39nf36d l ch araicterisfi39cs for beh viior Who might r u i re Separate 39Od39ubfisi 39Thes p39rba c 9f ma fketil 39gi pgog39rgms E A l Segmentatcn and Targeting a Market Targeting Target Marketing Involves evaluating each market segment s attractiveness and selecting one or more segments to enter Prentice Hall copyngm zoos Differentiation and Positioning I Positioning Arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers Frentlce Hall copyright 2005 Now there s an easy button for your business It s called Staples Differentiation When a rm s offerings differ or are perceived to differ from those of competing rms on any attribute including price ORGANIC FOOD mmmu IiiNUHR Hl Maw 5mm Creating superior customer value by actual y differentiating the market offering Frentlce Hall copyright 2005 The set of cqntrol lable tactical marketian 39toolsgthatthe firm 39 7 39 blends to 39 produce the response it wants in th e39t ar g39et market 3 PW WM N Implementation V 39 quot339 gt Control Carry out the Measure resuits plans Take corrective action 39 Prentice Hall Copw 225 5 internal capabilities that may help a company reach its objectives y lr a Weaknesses Internal limitations that may interfere with a company s ability to achieve its objectives Opportunities External factors that the company may be able to exploit to its advantage Prentice HallFG Threats Current and emerging external factors that may challenge the company s performance i Marketing Implementation I Turns marketing plans into daytoday marketing actions by addressing Who Where When How I Good implementation is a challenge I Marketing departments must be properly organized to ensure timely implementation Frentlce Hall copyright 2005 Marketing Department Organization I Functional Organization Each marketing activity is headed by a functional specialist 39 Eg sales manager advertising manager marketing research manager etc I Geographic Organization Sales and marketing people are assigned to speci c countries regions and districts Frentlce Hall copyright 2005 Marketing Department Organization I Product Management Organization One person given responsibility for complete strategy and marketing program for a single product I Market or Customer Organization Manager responsible for particular market or customer I Combination Organization Uses some combination of the previous four approaches Frentlce Hall copyright 2005 Marketing Control l I Process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure objectives are achieved Frentlce Hall copyright 2005 Marketing Analysis U A comprehensive systematic independent and periodic examination of the company s environment objectives and activities to determine problem areas and opportunities and to recommend a plan of action to improve company s market performance Frentlce Hall copyngmzoos Measuring and managing Return on Market Investment I Return on marketing investments marketing ROI is assessed using one or more methods Standard marketing performance measures Brand awareness sales market share Customercentered measures Customer acquisition customer retention customer lifetime value Frentlce Hall copyright 2005 Reviewing the Concepts 1 Explain companywide strat gic planning and its four steps 39 cuss how to design t e ma e If g mi gemem func Ion H t 5 of a marketing pi Chapter 1 Next Exit Marketing Creating and 34 Capturing 39Gusgegomeru VbIUe 39 aa Rest Stop 1 Define marketing and the keting process What Is Marketing 39 Simple Definition Marketing is managing pro table customer relationships Goals 2 fold 1 Attract new customers by promising superior value 2 Keep and grow current customers by delivering satisfaction Frentlce Hall copyright 2005 What Is Marketing Everything that takes place between the buyer and seller exchange being the core concept The Basic Baloney Sandwich Sellers producers manufactures the ones with the widgets Prentice Hall copyngm zoos Buyers consumers customers the ones who want the widget What Is Marketing More of you are in marketing than you realize Advertising Public Relations Communications Research Selling Transportation Management Retail Wholesale Customer Relations Financing Pricing And more Frermce Hall copyright 2005 a Marketing Defined A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others Old VieW it is NOT New View is about Sellin and Advertisin the Consumer TGIIinQ and sellingquot Satisfying Consumer Needs Cream 39vahse fmcuswmars and build customer relationships I 39 Conslruct an esrgn a V y in tegrawd cusmmer mequot I marketing program markelrng ma dairvers strategy 5 superior value I Urrdersiand the marketplace and cusromer needs and wants Prentice Hall Cg a egjns Capturi varua frat customers In return 39 Caprure value from customers tr creme pro ts and cusmmar quaIity Burld profitable relationships and create cuslomer delighT Marketing Wants and Demands I Offerings Prentice Hall 18 Needs Wants and Demands I Needs A state of felt deprivation including physical social and individual Needs Wants and Demands I Types of Needs Physical needs Food clothing shelter safety Social needs Belonging affection Individual needs Learning knowledge selfexpression Prentice Hall copyngm zoos Needs Wants and Demands I Wants Form that a human need takes as shaped by culture and individual personality I Wants Buying Power Demand Frentlce Hall copyright 2005 Some combination of products services information or experiences offered to a market to satisfy a need or want Needs and wants are fulfilled through a marketing offer Types of Market Offerings I Products Persons places organizations information ideas I Services Activity or benefit offered for sale that is essentially intangible and does not result in ownership I Brand Experiences dazzle their senses touch their hearts stimulate their minds Prentice Hall copyngm zoos Marketing Myopia I Successful marketers avoid marketing myopia when constructing offers Marketing myopia occurs when sellers pay more attention to the speci c products they offer than to the bene ts and experiences produced by the products They focus on the wants and lose sight of the needs Frentlce Hall copyright 2005 Exchanges and Relationships I Exchange Act of obtaining a desired object from someone by offering something in return What would be exchanged for a car Frentlce Hall copyngm 2005 I Relationships Marketing actions build and maintain relationships with target audiences involving an idea product service or other object What Is a Market 39A Market Is the set of actual and potential buyers of a product These people share a need or want that can be satis ed through exchange relationships A homogenous group of individuals With the same want need or desire the money to spend and the authority to make the purchasing decision Prentice Hall copyngm zoos Suppliers I a 439 Company I 39 Marketing Consumers Competitors I intermediaries Prentice Hall Cg Designing a CustomerDriven Marketing Strategy I Marketing Management The art and science of choosing target markets and building pro table relationships with them 39 Requires that consumers and the marketplace be fully understood 39Aim is to find attract keep and grow customers by creating delivering and communicating superior value Frentlce Hall copyngm zoos 1 Let s Jump Ahead The Marketing Mix page 13 B The 4 P s of marketing Product Price 7 F Place LJ o 9 L 1 gt R If Promotion Prentice Hall copyngm zoos Marketing Management Philosophies I Five key marketing management philosophies Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept Frentlce Hall copyright 2005 Holds the customer will favor products that are available and affordable focus on reducing costs Production Holds that the consumer will favor products that offer the most quality performance an innovative features focus on product improvement 7 Holds that the consumers will not buy enough of the firm s products 39 unless it undertakes a largescale selling and promotion effort focus is on moving product Holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do Questions whether the pure marketing concept overlooks possible conflicts between consumer shortterm wants and consumer long term welfare f l Emma Prentice Hall copyright 2005 Production Concept Product Concept Selling Concept Marketing Concept Prentice Hall copyngm zoos Segmentation and Target Marketing I Market Segmentation Divides the market for a product category into segments of consumers I Target Marketing Process of selecting one or more of these segments to target Frentlce Hall copyright 2005 Preparing an Integrated Marketing Plan and Program I Strategy outlines which customers the company will serve I Next the marketer develops an integrated marketing program which will deliver the intended value I The marketing program builds consumer relationships by transforming the marketing strategy into action using the marketing mix4P s Frentlce Hall copyright 2005 Demand Management I Demand Management Finding and increasing demand also changing or reducing demand as in demarketing I Demarketing Temporarily or permanently reducing the number of customers or shifting their demand Prentice Hall copyngm zoos Customer Relationship Management The ovo39rajlrl processof building and maintaining p39rbfitfa39bl customer relationships by delivering Superb cu Stdmfer value arid satisfaction P venllce Hall Eunyrignl 2am Building Customer Relationships I Customer Relationship Management CRM CRM deals With all aspects of acquiring keeping and growing customers Customer value and satisfaction are key I Loyalty and retention programs build relationships and may feature Financial Bene ts 39 Eg frequency marketing programs Social Bene ts 39 Eg club marketing programs Structural Ties I Focus is on relating directly to profitable customers for the long term Prentice Hall copyright 2005 Customer Perceived Value Customer s evaluation of the difference between all of the bene ts and all of the costs of a marketing offer relative to those of competing offers Perceptions may be subjective Consumers often do not objectivey judge values and costs Frentlce Hall copyngmzoos Customer Satisfaction I Customer Satisfaction Dependent on the product s perceived performance relative to a buyer s expectations Customer satisfaction often leads to consumer loyalty Some firms seek to DELIGHT customers by exceeding expectations Frentlce Hall copyright 2005 i Changing Nature of Relationships I Selective Relationship Management Customer pro tability analysis eliminates losing customers and selects pro table ones I Relating more deeply and interactively via blogs social network Web sites email and video sharing Marketing by attraction vs intrusion I Increased amounts of consumer generated marketing Frentlce Hall copyright 2005 Partner Relationship Marketing Partners Partners Inside the Firm Outside the Firm I All employees supply chain customer focused management 39 Teams coordinate I Strategic alliances efforts toward customers Marketing partners help to create customer value and assist in building customer relationships Frentlce Hall copyright 2005 Capturing Value from Customers I Customer Lifetime Value The value of the entire stream of purchases that the consumer would make over a life time I Superior customer value results in Customer loyalty and retention A growing share of customers Customer equity Frentlce Hall copyright 2005 Capturing Value from Customers I Share Of 39 Customer Customer Market Share Equity The share a 39 The comblned discounted customer lifetime values of all the company s current PurChaS ng m and potential their product customers categories company gets of the customers Frentlce Hall copyright 2005 Customer Equity I The combined discounted customer lifetime values of all the company s current and potential customers Classify customers by loyalty and potential pro tability Manage accordingly Frentlce Hall copyright 2005 Prentice Hall copyngm zoos Changing Marketing Landscape I The Digital Age I Rapid Globalization I Call for More Ethics and Social Responsibility I Growth of NotforProfit Marketing mesvilli l39b cusmr39n rs lm build customer relalianshlps Canslzucl an mlegra ea maihzhr g Digger l cmale wants and 5 cl mm r ull suuenor value 39 7 L5 0 m y Budd molitabl l Caplwe value lrom a nd cuslumeldnmn markelmg slralagy Creme sallsll d 39 Suleclcuslomers w leyulcuslunwals 39 Research quot Mum and I cuslcmers and e v a semca desgw I 1 ma mzllkc39lplace segmemmlon and hunt suerug n n at an quot latgonng blands slrong rillahnnshlps quot i t x J mm chosen Capluve cuslomev Manage quot EI39RGWG l 7 7 cuslomavs quot Ohm 5 I lnlormalmn and Decnde on a value Pncmg 39 39 i 39 customer data create real value quot i g l Parlnav velallcnahlp mm 5mm 039 managemenl build quota39ke 7m 5mm D39S39Y39WWquot slmng velalmnshlps 39 Emm manage demand wuh mamalung Rand supply chains 3mm proposnmn dillurunllallun and I poslllomng Pmmaliun communicale lhcv value proposmon Manage global quot I EtlSumelrncaland l min els V SOCIIII lqsponSIlbIllly Prentice Hall Cg Rest Stop 1 Define marketing and the keting process


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