1. 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.
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2. What is Marketing Management?
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.
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3. What is Marketed?
• Goods (tangible) • Places
(Cities, States, Regions, Nations)
• Services (intangible)
and Properties (Intangible
• Events (time based—trade rights of ownership of real estate or
financial properties)
shows) and Experiences
(Walt Disney World’s Magic • Organizations
kingdom) (Universities, Museums, Performing
Arts Organization)
• Persons (Artists, Musicians,
CEO, Physicians) • Information
(Books, Schools, Magazines)
• Ideas
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4. The Ten Deadly Sins of Marketing
The Ten Commandments of Marketing
• Ten Sins • Ten Commandments
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5. Key Customer Markets
• Consumer markets (personal consumption)
• Business markets (resale or used to produce
other products or services)
• Global markets (international)
• Nonprofit/Government markets (Churches,
Universities, Charitable Organizations,
Government Agencies)
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6. Marketing Management Tasks
• Developing marketing • Shaping market
strategies (strategic fit) offerings
• Capturing marketing • Delivering value
insights (obtaining
information) • Communicating
value
• Connecting with
customers (relationships) • Creating long-term
• Building strong brands growth
(understand strengths (positioning and
and weaknesses) new-product
development)
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8. Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able
employees who want to serve customers
well.
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9. Demand States
• Negative (dislike product • Irregular (purchases vary on a
and may even pay a price to seasonal, monthly, weekly, daily,
avoid it) or even hourly basis)
• Nonexistent (unaware of • Unwholesome (product
or uninterested in the product) that have undesirable social
consequences)
• Latent (need that cannot be
satisfied by existing product)
• Full (adequately buying all
products put into the marketplace)
• Declining (buy the product • Overfull (more consumers
less frequently or not at all)
would like to buy the product that
can be satisfied)
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10. Performance Marketing
• Social Initiatives
• Financial • Corporate social marketing —
Accountability—building supporting behavior change
campaigns
band and growing the • Cause marketing —promoting
customer base. social issues through sponsorships,
licensing agreements, and
• Social Responsibility advertising
Marketing—must • Corporate philanthropy—making
gifts, goods, or time
consider ethical
• Corporate community
environment, legal, and involvement—in kind or volunteer
social context on service
• Socially responsible business
activities. practices—to protect environment
and human and animal rights
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12. 3 V’s Approach to Marketing
Define the value segment
(needs and wants)
Define the value proposition
(benefits)
Define the value network to
deliver promise services.
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13. What is the Value Chain?
The value chain is a tool for identifying and
creating more customer value because every
firm is a synthesis of primary and support
activities performed to design, produce,
market, deliver, and support its product.
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14. What is Holistic Marketing?
Holistic marketing sees itself as integrating
the value exploration, value creation, and
value delivery activities with the purpose of
building long-term, mutually satisfying
relationships and prosperity among key
stakeholders.
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15. What is a Marketing Plan?
A marketing plan is the central instrument for
directing and coordinating the marketing
effort.
It operates at a strategic
and tactical level.
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16. Levels of a Marketing Plan
• Strategic • Tactical
– Target marketing – Product features
decisions – Promotion
– Value proposition – Merchandising
– Analysis of marketing – Pricing
opportunities – Sales channels
– Service
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18. Evaluating a Marketing Plan
Is the plan simple?
Is the plan specific?
Is the plan realistic?
Is the plan complete?
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19. Good Mission Statements
• Focus on a limited number of goals
• Stress major policies and values
• Define major competitive spheres
• Take a long-term view
• Short, memorable, meaningful
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21. Porter’s Generic Strategies
Overall Cost Leadership—lowest
production and distribution costs to be
able to price lower than competitors and
to obtain larger market share.
Differentiation—uniquely achieving
superior performance in an important
customer benefit area.
Focus—on one or more narrow market
segments
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23. Internal Records and
Marketing Intelligence
• Order-to-payment cycle—send orders, prepares invoices,
transmit copies to various departments, and back-orders out-
of-stock items
• Sales information system—timely and accurate reports on
current sales
• Databases, warehousing, data mining--customer, product,
and salesperson and combine data from the different
databases.
• Marketing intelligence system—a set of procedures and
sources managers use to obtain everyday information about
developments in the marketing environment.
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24. Steps to Improve Marketing Intelligence
• Train sales force to scan for new developments (make
intelligence gathering important to salespeople)
• Motivate channel members to share intelligence (hire
specialists to gather marketing intelligence—mystery
shoppers)
• Network externally (purchase competitors’ products;
attend open houses and trade shows; read competitors’
published reports; etc.)
• Utilize a customer advisory panel (representative
customers or company’s largest customers)
• Utilize government data sources (U.S. Census data, etc.)
• Collect customer feedback online (online customer review
boards, discussion forums, chat rooms, and blogs)
• Purchase information (A.C. Nielsen Company and other
information sources)
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25. Needs and Trends
• Fads—short-lived and without social,
economic, and political significance.
• Trends—direction or sequence of events that
has some momentum and durability.
• Megatrends—large social, economic, political,
and technological changes
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28. The Marketing Research Process
Define the problem
Develop research plan
Collect information
Make
decision
Analyze information
Present findings
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29. Step 1
• Define the problem (e.g., Will offering an in-flight Internet
service create enough incremental preference and profit
of American Airlines to justify its cost?)
• Specify decision alternatives (e.g., Should American offer
an Internet connection?)
• State research objectives (e.g., types of 1st class
passengers are likely to use internet?)
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30. Step 2
Data Research
Sources Approach
Research Sampling
Instruments Plan
Contact
Methods
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34. Types of Samples
Probability Non-probability
• Simple random
• Convenience
– Every member of population
has an equal chance of – Selects the most accessible
selection population members
• Stratified random • Judgment
– Population is divided into – Selects population
mutually exclusive groups (age members who are good
groups) and random samples prospects for accurate
are drawn from each group information
• Cluster
• Quota
– Population is divided into
mutually exclusive groups (city – Selects and interviews a
blocks) and a sample is taken prescribed number of
from each group people in each of several
categories
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57. Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.
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58. Attributes of Strong Brands
• Excels at delivering • Uses multiple marketing
desired benefits activities
• Stays relevant • Understands consumer-
• Priced to meet brand relationship
perceptions of value • Supported by
• Positioned properly organization
• Communicates • Monitors sources of
consistent brand brand equity
messages
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59. Brand Equity
The differential effect that
Brand knowledge has on
Consumer response to
the marketing of that
brand.
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60. Advantages of Strong Brands
• Improved • Larger margins
perceptions of • More inelastic
product performance consumer response
• Greater loyalty • Greater trade
• Less vulnerability to cooperation
competitive • Increased marketing
marketing actions communications
• Less vulnerability to effectiveness
crises • Possible licensing
opportunities
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62. Measuring Brand Equity
Brand Audits—assess health of brand,
uncover sources of brand equity, ways
to improve
Brand Tracking—baseline information
about brands and marketing
information
Brand Valuation—estimation of total
financial value of the brand
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66. Identity and Image
Identity: Image:
The way a The way the
company aims public perceives
to identify or the company or
position itself Its products
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