CHAPTER 1: MARKETING MANAGEMENT Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. McGraw-Hill Education Part 1: Discover Marketing Management 1-1 Ch. 1 Learning Objectives    Analyze marketing from a managerial perspective Describe key elements of a marketing plan. Assess current external environmental and internal influences on marketing 1-2 Elements Of Marketing Planning 3  Marketing planning does not occur in a vacuum A mission statement articulates an organization’s purpose, or reason for existence.  Most mission statements also include a discussion of what the company would like to become in the future – its strategic vision. Elements Of Marketing Planning 4  Organizational Strategies A strategy is a comprehensive plan stating how the organization will achieve its mission and objectives.  A firm’s generic strategy is its overall directional strategy at the business level. Elements Of Marketing Planning 5  Three primary categories of competitive strategy: 1. Cost Leadership—Low Cost 2. Differentiation 3. Focus (or Niche) ELEMENTS OF MARKETING PLANNING 6  Marketing Control  Process of measuring marketing results and adjusting the marketing plan as needed.  Action Plans  Implementation strategy that describes specific tasks and the resources needed, who is responsible, and metrics to track success.  Contingency Plans  Plans that can be implemented should something happen that negates the viability of the marketing plan. 7 TIPS FOR SUCCESSFUL MARKETING PLANNING 1. 2. 3. 4. 5. Stay flexible Utilize input, but don’t become paralyzed by information and analysis Don’t underestimate the implementation part of the plan Stay strategic, but also stay on top of the tactical Give yourself and your people room to fail and try again FIGURE 10-3 Seven stages in the new-product process leading to success Marketing v. Sales   Marketing creates the demand for a product or service, Sales captures the moment and seize the deal Marketing  Defined as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.  Perceived value – marketer focuses on what the consumer sees as most important or beneficial. The 4 P’s  Product – includes only tangible goods, but also services and intangible ideas.  Place – the physical location where the a product or service may be purchased or received. Also, includes channels of distribution, which is the means of creating and delivering the product or service from creation to the end or ultimate consumer. The 4-P’s  Promotion – provide communication between the seller and the buyer with the goal of increasing sales volume.  Price – the monetary exchange a consumer makes in order to purchase a product or service. The pricing objectives and then select the pricing strategy that will support the pricing objectives. Customer touchpoints  Involve any point of contact between a customer either before, during or after the customer's purchase of goods or services. Lifetime Customer Value  LCV - Marketers are looking at not only looking at today’s value a customer can purchase, but what they can represent over years of purchasing. Marketing Plan v. Business Plan  Business plans are financially oriented and focus on internal processes.  Marketing plans covers the organization, incorporating areas such as research and development and manufacturing, whereas the marketing plan focuses on how the organization will accomplish the company’s strategic objective Marketing Plan 4 Goals     To create customer leads, To build product or brand awareness, To garner customer consideration of the product or service, To generate sales. A comprehensive plan written for a specified period of time, covering the target market to plans for reaching that target market. Elements of a Marketing Plan       Executive summary Situation analysis Market product focus Financial projections Implementation plan Implementation controls or evaluation Elements of a Marketing Plan  For external audience, lenders, additional elements are added.  Description of company Organization of company, Biographies of key personnel   Marketing Management   Marketing is relevant to everyone across all business functions. Marketing your “personal brand” helps you land a job or promotion. 1-19 Core Marketing Concepts   Value is the ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits. Exchange occurs when people give up something of value to them for something else they desire to have. 1-20 Value Is At The Core Of Marketing 21   Value proposition is the firm’s communication of the unique value of its products to its customers. The value message may include the whole bundle of benefits the company promises to deliver – not just the benefits of the product itself. Value Is At The Core Of Marketing 22  A firm’s value proposition must be strong enough to move customers past satisfaction. Customer Satisfaction Customer Loyalty Customer Retention Customer Switching Distinguishing Between Marketing (“Big M”) and marketing (“little m”)  Marketing (Big M)  Strategic marketing, means a long-term, firm-level commitment to investing in marketing – supported at the highest organization level – for the purpose of enhancing organizational performance.  marketing (little m)  Tactical marketing, which serves the firm and its stakeholders at a functional or operational level. 1-23 LO 22-3 THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS MARKETING PLANNING AND STRATEGY LESSONS  Guidelines for an Effective Marketing Plan • Set Measurable, Achievable Goals • Use a Base of Facts and Assumptions • Use Simple, but Clear and Specific Plans • Have Complete and Feasible Plans LO 22-3 THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS MARKETING PLANNING AND STRATEGY LESSONS  Guidelines for an Effective Marketing Plan • Make Plans Controllable and Flexible • Find the Right Person to Implement • Work Toward Concensus-Building LO 22-3 THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS MARKETING PLANNING AND STRATEGY LESSONS  Marketing Planning & Strategy Problems • Plans Based on Poor Assumptions • Planners Lost Sight of Customer Needs • Too Much Time and Effort on Collecting Data and Writing Plans • Line Operating Managers Have No Ownership in Implementing Plans Types of Business Research  Primary vs. Secondary  Quantitative vs. Qualitative Critical Areas to Research  Industry  Market  Competition and company Starting the Research Process  What is the primary question I want my research to answer?  How will I use the information I find? Market Research  Personal observation  Informational interviews  Surveys  Focus Groups  Beta testing Evaluate Your Data   Consider the source Most accurate sources are:  Government data  Private research company data  University data  Studies using large samples Beyond the Marketing Concept Differentiation Orientation Market Orientation Relationship Orientation One-to-One Marketing 1-32 Beyond the Marketing Concept Differentiation Orientation  Clearly communicates how the firms products from competitors Market Orientation   Implementation of the marketing concept Customer Orientation  The customer is at the core Beyond the Marketing Concept Relationship Orientation   Focuses on customer retention CRM drives customer satisfaction and loyalty One-to-One Marketing   Advocates a learning relationship so that the firm can offer customized products and services Mass customization Levi’s allows customers to order perfect fit jeans. Unit 1 DB          Greeting students during this course we will be focusing on Problem Based Learning (PBL) for solving marketing dilemmas. In your discussion post keep in mind that you are being proactive in your marketing plans for developing solutions to the problem that the marketing company faces while trying to market a new product (mobile phones) overseas; discussing the environmental conditions that are relevant to introducing the new product. There are risk factors to producing this new initiative overseas. 400-600 word response Which of the environmental factors do you feel is the most critical, and why?  Your Response What might someone with an opposing viewpoint think is the most important?  Given this opposing argument, how would you argue your opinion? ◼ Your Response What solutions should be considered as you seek to develop a sense of ownership of your plan?  Your Response What solutions would you recommend to the board, and why?  Your Response Is a compromise feasible?  Your Response Responses to Other Students:100 words When posting your DB post, please copy the questions above and bold type then respond underneath to each one. This is the standard format for posting your discussion board post moving forward. Unit 1 IP         We will be focusing on Problem Based Learning (PBL) throughout this course. As you work through your goals for developing a new product, please keep in mind that they should be structured as S.M.A.R.T. goals for a product that will be developed worldwide. Explain 3–4 goals that a company in this situation should set for itself. The explanations should be 2–3 sentences each, and they should include citations from the text and other sources. Each goal should be as specific as possible; for example, the goals might include—among other things— the following items: Sales in dollars or units Market share Customer awareness Profit Return on investment Customer satisfaction
Purchase answer to see full attachment