MARKETING MANAGEMENT12th edition 1 Defining Marketing for the 21st Century Kotler Keller
Chapter Questions • Why is marketing important? • What is the scope of marketing? • What are some of the fundamental marketing concepts? • How has marketing management changed? • What are the tasks necessary for successful marketing management?
What is Marketing? Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
What is Marketing Management? Marketingmanagement is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
For an exchange to occur….. • There are at least two parties. • Each party has something that might be of value to the other party. • Each party is capable of communication and delivery. • Each party is free to reject the exchange offer. • Each party believes it is appropriate or desirable to deal with the other party.
Goods Services Events Experiences Persons Places Properties Organizations Information Ideas What is Marketed?
Negative Nonexistent Latent Declining Irregular Unwholesome Full Overfull Demand States
Key Customer Markets • Consumer markets • Business markets • Global markets • Nonprofit/Government markets
Changing technology Globalization Deregulation Privatization Empowerment Customization Convergence Disintermediation The marketplace isn’t what it used to be….
Company Orientations • Production • Product • Selling • Marketing
Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication Marketing Mix and the Customer
Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment Marketing planning Core Concepts
I want it, I need it….. 5 Types of Needs • Stated needs • Real needs • Unstated needs • Delight needs • Secret needs
Developing marketing strategies Capturing marketing insights Connecting with customers Building strong brands Shaping market offerings Delivering value Communicating value Creating long-term growth Marketing Management Tasks
MARKETING MANAGEMENT12th edition 2 Developing Marketing Strategies and Plans Kotler Keller
Chapter Questions • How does marketing affect customer value? • How is strategic planning carried out at different levels of the organization? • What does a marketing plan include?
Improving Value Delivery the Japanese Way • 0 customer feedback time • 0 product improvement time • 0 purchasing time • 0 setup time • 0 defects
3 V’s Approach to Marketing • Define the value segment • Define the value proposition • Define the value network
Benchmarks Organizational costs and performance measures Competitor costs and performance measures
Core Business Processes Market sensing Customer relationship management New offering realization Fulfillment management Customer acquisition
Characteristics of Core Competencies • A source of competitive advantage • Applications in a wide variety of markets • Difficult to imitate
Challenges Facing CMO’s • Doing more with less • Driving new business development • Becoming a full business partner
Strategic Target marketing decisions Value proposition Analysis of marketing opportunities Tactical Product features Promotion Merchandising Pricing Sales channels Service Levels of a Marketing Plan
Corporate Headquarters’ Planning Activities • Define the corporate mission • Establish SBUs • Assign resources to each SBU • Assess growth opportunities
Good Mission Statements • Focus on limited number of goals • Stress major policies and values • Define major competitive spheres
Industry Products Competence Market segment Vertical channels Geographical Major Competitive Spheres
Rubbermaid Commercial Products, Inc. “Our vision is to be the Global Market Share Leader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost- effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our uncompromising Commitment to Customer Satisfaction.”
Motorola “The purpose of Motorola is to honorably serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by doing so, provide the opportunity for our employees and shareholders to achieve their personal objectives.”
eBay “We help people trade anything on earth. We will continue to enhance the online trading experiences of all – collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.”
Dimensions That Define A Business Customer groups Customer needs Technology
Characteristics of SBUs • It is a single business or collection of related businesses • It has its own set of competitors • It has a leader responsible for: • Strategic planning • Profitability • Efficiency
Organizations • Culture • Policies • Structure
Market Opportunity Analysis (MOA) • Can the benefits involved in the opportunity be articulated convincingly to a defined target market? • Can the target market be located and reached with cost-effective media and trade channels? • Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?
Market Opportunity Analysis (MOA)_2 • Can the company deliver the benefits better than any actual or potential competitors? • Will the financial rate of return meet or exceed the company’s required threshold for investment?
Goal Formulation and MBO • Requirements for using MBO • Unit’s objectives must be hierarchical • Objectives should be quantitative • Goals should be realistic • Objectives must be consistent
Porter’s Generic Strategies • Overall cost leadership • Differentiation • Focus
Categories of Marketing Alliances • Product or Service Alliances • Promotional Alliances • Logistics Alliances • Pricing collaborations
Marketing Plan Contents • Executive summary • Table of contents • Situation analysis • Marketing strategy • Financial projections • Implementation controls
Evaluating a Marketing Plan • Is the plan simple? • Is the plan specific? • Is the plan realistic? • Is the plan complete?
MARKETING MANAGEMENT12th edition 11 Dealing with Competition Kotler Keller
Chapter Questions • How do marketers identify primary competitors? • How should we analyze competitors’ strategies, objectives, strengths, and weaknesses? • How can market leaders expand the total market and defend market share? • How should market challengers attack market leaders? • How can market followers or nichers compete effectively?
Figure 1.1 Five Forces Determining Segment Structural Attractiveness • Potential entrants • Suppliers • Buyers • Industry competitors • Substitutes
Industry Concept of Competition • Number of sellers and degree of differentiation • Entry, mobility, and exit barriers • Cost structure • Degree of vertical integration • Degree of globalization
Industry Concept of Competition • Pure monopoly • Oligopoly • Monopolistic competition • Pure competition
Analyzing Competitors • Share of market • Share of mind • Share of heart
Expanding the Total Market • New customers • More usage
Figure 11.6 Six Types of Defense Strategies • Defender • Flank • Preemptive • Counteroffensive • Mobile • Contraction
Factors Relevant to Pursuing Increased Market Share • Possibility of provoking antitrust action • Economic cost • Pursuing the wrong marketing-mix strategy • The effect of increased market share on actual and perceived quality
Other Competitive Strategies • Market challengers • Market followers • Market nichers
Market Challenger Strategies • Define the strategic objective and opponents • Choose a general attack strategy • Choose a specific attack strategy