Marketing

• Recession and economic recovery; effects around the globe
• Technological developments

• “Slam-on-the-break”
• “Pained but patient”
• “Comfortably well off”

“Live-for-today”

Production philosophy -> Selling philosophy -> Marketing philosophy

• Customer – centered perspective
• The goal is to be more effective than competitors

.) Goal (increasing customer value)

.) Means (the use of marketing mix instruments)

.) Method (the support of decisions via market research findings)

1. Segment the market, choose he most attractive segments, and develop a strong position
2. Map customer needs, perceptions, preferences and behavior
3. Know the competitors, theirs strengths and weaknesses
4. Build strong partnerships with stakeholders and reward them
5. Develop systems for choosing good opportunities
6. Implement a marketing planning system that leads to plans
7. Exercise control over its product and service elements
8. Build strong brands
9. Encourage leadership and build team spirit among employees
10. Constantly introduce innovations that secure a competitive advantage in the market

• Planning: Establishing goals and selecting a plan of action to achieve the goals
• Organizing: Establishing an organization’s structure and culture
• Leading: Energizing, directing and persuading others and creating a vision
• Controlling: Comparing actual performance to predetermined standards (goals)

• Put the customer first
• Shape the customer value proposition
• Sense and respond to the market

Planning ---> Implementing ---> Controlling

1. Discovering the required value -> 2.) Developing a suitable customer offering -> 3.) Delivering the value -> 4.) Communicating the value

1. What is our business?
2. Who are our customers?
3. What is the value to our customers?
4. What will our business be?
5. What should our business be?

è Mission Statement

Companies should consider their business as  a customer – satisfying process that delivers expected value

Purpose of Strategic Business Units (SBU)

Develop separate strategies and assign appropriate funding to business that can be managed independently from each other.

Three characteristics

§  Single businesses that can be planned separately from the rest

§  There is an own set of competitors for each strategic business unit

§  A manager is responsible for planning and profit performance

(Stars, Cash Cows, Dogs, Question Marks)

                                                     Current products                              New Products

Current Markets              Market penetration                               Product Development

New Markets                      Market Development                      Diversification

S               =               Strengths

W             =               Weaknesses

O              =               Opportunities

T               =               Threats

• Objectives must be arranged hierarchically
• Objectives should be quantified
• Objectives should be realistic
• Objectives must be consistent

The Marketing Plan is the central instrument for directing and coordinating the marketing effort.

Content:

• Marketing Strategy
• Financial Projections
• Situation Analysis
• …

• Value networks = system of partnerships and alliances that a firm creates to source, augment and deliver its offering

• Analysis and planning
• Databases
• Communications
• Research
• …

The difference between the prospective customer’s evaluation of all the benefits and costs.

1. Identify major benefits that are valued by customers
2. Assess the importance of the different benefits
3. Assess the company’s and competitor’s performances on the benefits against their rated importance
4. Examine how customers in specific segments rate the company’s performance against specific competitors on a benefit basis
5. Monitor customer values over time

• Stay loyal longer and pay less attention to competing brands
• Buy more as the company introduces new market offerings and upgrades existing ones
• Promote the company by word of mouth
• Cost less to serve than new customers
• Are less sensitive to price

è Higher returns and lower stock market risks

Delight (i.e., very high satisfaction) creates an emotional bond

• Psychological factors (e.g. personal relations and attachment)
• Situational factors (e.g. closeness to home)
• Contractual factors (e.g. cell phone)
• Technical and functional factors (e.g. software compatibility)
• Economic factors (e.g. high switching costs)

Customer Relationship Management (CRM) is the process of carefully managing detailed information about individual customers and all customer ‘touchpoints’ to maximize customer loyalty; this includes creating, maintaining and enhancing strong relationships.

o   Reduce the rate of customer detection

o   Increase the longevity of customer relationships

o   Enhance the growth potential of each customer

o   …

The CLV is the net present value of the stream of future profits expected over the customer’s lifetime purchases.

Information and communication technologies influence the marketing management process, including analysis and planning, databases, researches,…

of people, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers. Main sources:

• Internal Records (Sales information, …)
• External Records (Set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment)

Marketing research is defined as the systematic design, collection, analyzing and reporting of data and findings relevant to a specific marketing situation facing the company.

1. Define the problem
2. Develop the research plan
3. Collect the information
4. Analyze the information
5. Report the findings (presentation, thesis,…)
6. Make the decision

1. Use scientific methods
2. Research creativity
3. Use multiple methods
4. Interdependence of models and data
5. Value and cost of information
6. Healthy skepticism
7. Ethical marketing

Marketing – Mix Models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media and promotion spending data, to understand the effects of specific marketing activities.

A Customer – Performance Scoreboard records how well the company is doing year after year on customer – based measures.

A Stakeholder – Performance Scorecard tracks the satisfaction of various constituencies who have a critical interest in and impact on the company’s performance including employees, suppliers, banks, distributors, retailers, and stockholders.

Consumer behavior is the study of how individuals or groups buy, use and dispose goods, services, ideas or experiences to satisfy their needs and wants.

• Consumer Psychology: Motivation, perception, learning, memory
• Three consumer characteristics levels: Individuals, Social Groups, Cultures

o   Psychology: Perception

§  Sensation is the immediate response of our sensory receptors to basic stimuli (Sights, Sounds, Smells, Taste, Textures)

§  Perception is the process by which sensations are selected, organized and interpreted

• Within groups, humans tend to behave alike
• Social groups convey perceptions of inferior or superior position
• Social groups may be indicated by a cluster of variables
• Group designation is mobile over time

• A group of consumers who share a set of social relationships based usage or interest in a product