Chief marketing executives – responsible for planning, implementing, and coordinating all marketing activities and integrating them into the overall operations of the firms. These process is called marketing management .
Four stages in the evolution of marketing management
the executive in production and engineering shape the company’s objectives and planning.
the main problem in our economy was no longer the ability to make or grow enough products. Rather, the problem was selling this output.
Objectives -are the goals around which a strategic plans is formulated.
Strategies - or plans of action, are developed to achieve the objectives.
Tactics - activities which must be performed by the people in order to carry out the strategy.
Strategic Planning at the Company, Marketing, and Sales Force levels The strategic planning on all level in the firm should be well integrated and highly coordinated Strategic Planning for the Total Company Strategic Planning for the total company involves determining the organizations mission, the Board Objectives (Goals) that will enable the company to fulfill its mission, and the strategies and tactics needed to achieve the objectives.
Strategic Planning for the Total Company 1 st Determine the company’s mission 2 nd Management set broad goals consistent with that mission Example: The company may aim to earn a 20% ROI next year or to increase its market share from 8% to 20% in 3 years. 3 rd Select the strategy to be used to reach the goal Goals Possible Strategies 1. Earn 20% ROI next year.
Reduce production and marketing costs
Increase rate of capital turnover
2. Increase market share form 8% to 20% in 3 years
Intensify marketing efforts in domestic markets
Expand into foreign markets
Buy out a competitor
Strategic Marketing Planning Once the total company planning process is completed, essentially the same procedure can be repeated for the marketing Program the Goals, Strategies, and Tactics at the Marketing level are closely related to those at the corporate level. Company Goal Company Strategy Marketing Strategy 1. Earn 20% ROI Cut marketing costs by 15% this year Reduce direct selling efforts by using wholesalers to reach small accounts 2. Increase market share from present 8% to 20% Intensify marketing efforts in domestic markets Enter new markets
Once the strategic planning process for the entire Marketing Program has been completed, the role of the sales has largely been established.
Corporate Goal: Increase market share from 8% to 20% in two years Corporate Strategy (Marketing Goal): Intensify market efforts in domestic markets to increase sales volume by 3M next year Marketing Strategy (sales force goal):
Enter new geographic markets and sell to new types of customers, or
Cover existing geographic markets more aggressively
Multiple Sales Channels- These methods may be used to reach different segments of customers or to perform various selling tasks necessary to efficiently serve one segment.
Multiple Relationship Strategies- These can vary from one in which the sale is just an individual transaction to one in which the company develops a close long-term relationship or even a partnership with the customers.
Transaction Selling- Sales People emphasize the product,
Its quality, and the price.
Relationship Selling- Sales people develops in depth-knowledge of their customer’s company and business.
Partnership- Companies from strategic alliances in order to joint goals
3. Systems Selling- is a strategy adopted by firms in response to the customers desire for solutions. This strategy involves selling a total package of goods and services and the related expertise.
4. Team Selling- Is composed of one or more sales people as well as other functional specialists, such as design engineers, financial experts, customer service representatives and quality control engineers.