Marketing Chapter 1-12

Chapter - - 1

Marketing is an organizational function and set of processes for creating , communication, and delivering value to customer sand for managing customer relationships in way that benefit the organization and its stakeholders. Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, angd communicating superior customer value. Marketers are skilled at managing demand, they seek to influence the level, timing, and composition of demand. Marketers also operate in four different markets places : • • • •

Consumer Business Global Nonprofit.

There are five competing concepts under which organizations can choose to conduct their business : • • • • •

The production concept The product concept The selling concept The marketing concept The holistic marketing

The first three are of limited use today. The holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies. Holistic marketing recognizes that “everything matters” with marketing and that a broad, integrated perspective is often necessary. Four components of holistic marketing are relationship marketing, integrated marketing, internal marketing, and socially responsible marketing.

Chapter – 2

In 2nd chapter I learnt about developing marketing strategies and plans. What ever I learnt has given below : • • • • •

• • • • • • • • • •

Marketing and customer value Value delivery process Value chain Core competencies Holestic marketing orientation and customer value Central role of strategic planning Corporate and division strategic planning Corporate mission Assessing growth opportunities Organization and organization culture Marketing innovation Business unit strategic planning SWOT analysis internal/external Product planning Situation analysis

The value delivery process involves choosing, providing and communicating superior value. The value chain is a tool for identifying key activities that create value and cost in a specific business. Strong companies develop superior capabilities in managing core business processes such a new product realization, inventory management, customer acquisition and rentention. Managing these core processes effectively means creating a marketing network in which the company works closely with all parties in the production an d distribution chain, from suppliers of row materials to retail distributors. Companies no long compete—marketing networks do. Holistic marketing maximizes value exploration by understanding the relationships between the customer’s cognitive space, the company competence space, and the collaborator’s resource space; maximizes value creation by identifying new customer benefits from the customers cognitives space, utilizing core competencies from its business domian, and selecting and managing business pertners from its collaborative networks; and maximizes value delivery by becoming proficient at customer relationship management, internal resource management, and business partnership management.

Chapter – 3 I learnt in this chapter about gathering information and scanning the environment. Developing and implementing marketing plans requires a number of decisions. Making those decisions is both an

art and a science. To provide insight into and inspiration for marketing decision making, companies must possess comprehensive, up to date information about micro trends, as well as about micro effects particular to their business. Holestic marketers recognize that the marketing environment is constantly presenting new opportunities and threats, and they understand the importance of continuously monitoring and adapting to that environment. To carry out their analysis, planning, implementation, and control responsibilities, marketing managers need an MIS. The role of MIS is to assess the managers’information needs, develop the needed information, and distribute that information in a timely manner. In the demographic environment, marketers must be aware of population characteristic, the age mix of population , and levels of savings, debts, and credit availability. In the social cultural arena, marketers must understand influence of religion, languages, and customs that shape the values and attitudes of consumer preferences, habits, and behavior. In the natural environment, marketers need to be aware of the public’s increased concern about the health of the environment. Many marketers are now embracing sustain ability and green marketing programs that provide better environment solutions as a result. In the political legal environment, marketers must work within the many laws regulating business practices and with various special interest groups.

Chapter – 4

I learnt in this chapter about marketing research and forecasting demand. Good marketers want insights to the interpret past performance as well as plan future activities. They need timely, accurate, and actionable information about consumers, competition, and their brands. They also need to make the best possible tactical decisions in the short run and strategic decision in the long run. Discovering the consumer insight and understanding its marketing implication can lead to successful product or spur the growth of a brand. There are six effective marketing research given below:1. Define the problem, the decision alternatives, and research objectives 2. Develop the research plan • Data sources • Research approaches • Observational research • Ethnographic research • Focus group research • Research instruments • Questionnaires • Qualitative measures • Technological devices 3. Collect the information 4. Analyze the information 5. Present the findings 6. Make the decision Companies can conduct their own marketing research or hire other companies to do it for them. Good marketing research is characterized by the scientific method, creativity, multiple research methods, accurate model building, cost-benefit analysis, healthy skepticism, and an ethical focus. The marketing research process consist of defining the problem, decision alternatives, and research objectives, developing the research plan, collection the information, analyzing information, presenting the findings to management, and making the decision.

Chapter – 5

I learnt in this chapter about creating customer value, satisfaction, and loyalty. Customers are value maximizers. They are expectation of value and act on it. Buyers will buy from the firm that they perceive to offer the highest customer delivered value, defined as the difference between total customer benefits and total customer cost. A buyers satisfaction is a function of the product’s perceived performance and the buyers expectations. Recognizing that high satisfaction leads to high customer loyalty, many companies today are aiming for TCS—total customer satisfaction. For such companies, customer satisfaction is both a goal and a marketing tool. Losing profitable customers can dramatically affect a firms profits. The cost of attracting a new customer is estimated to be five times the cost of keeping a current customers happy. The key to retaining customers is relationship marketing. Quality is the totality of features and characteristics of a product or services that bear on its ability to satisfy stated or implied needs. Marketers play a key role in achieving high levels of total quality so that firms remain solvent and profitable. Marketing managers must calculate customer lifetime value of their customer base to understand their profit implications. They must also determine ways to increase the value of the customer base. Companies are also becoming skilled in CRM, which focuses on developing programs to attract and retain the right customers and meeting the individual need of those valued customers . CRM often requires building a customer database and doing datamining to detect trends, segments, and individual needs.

Chapter – 6

I learnt in this chapter about analyzing consumer markets. The aim of marketing is to meet and satisfy target customers need and wants better than competitors. Marketers are always looking for emerging customer trends that suggest new marketing opportunities. Consumer behavior is influenced by three factors:--

1. Cultural Factors • Culture • Subculture • Social class 2. Social Factors • Reference group • Family • Social roles and statues 3. Personal Factors • Age • Stage in life cycle • Occupation • Economic circumstances • Lifestyle • Personality • Self-concept Research into all these factors can provide marketers with clues to reach and serve consumers more effectively. Four main psychological processes affect consumer behavior :   

Motivation Perception Learning Memory

Consumers are constructive decision makers and subject to many contextual influences. Consumers often exhibit low involvement in their decisions, using many heuristics as a result.

Chapter – 7

I learnt in this chapter about analyzing business markets. The business markets consist of all the organization that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. 

1. organizational buying is the decision making process by which formal organizations establish the need for purchased product and service , then identify .evaluate and choose among alternative brands and suppliers.

2. Compared to consumer markets, business markets generally have fewer and larger buyers, a closer customer –supplier relationship, and more geographically concentrated buyers. demand in the business markets derived from consumer markets and fluctuates with the business cycle.  3. The buying center is decision making unit of a buying organization. It consist of initiators users, influencers, deciders ,approvers ,buyers and gatekeepers. To influence these parties , marketers must be aware of environmental, organizational interpersonal and individual factors.  4. The buying process consist of eight stages called phases 

(1)problem recognition (2)general need description (3)product specification (4) supplier search (5)proposal solicitation (6)supplier selection (7)order routine specification and (8)performence review  Business markets must from strong bonds and relationship with their customers and provide them added value some customer however may prefer more of a transactional relationship.  The institutional markets consist of school, hospital, nursing home, prisons and other institutions that provide good and services to people in their care. Suppliers must be prepared to adapt their offers to the special needs and procedures found in institutional and government market.

Chapter

8

I learnt about in this chapter • Identify market segment and targets • Companies cannot connect with all customer in large, broad, or diverse market.but they can divide such markets in to group of consumer or segment with distinct needs and wants. A company then needs to identify which market segment it can serve effectively.this decision requires a keen understanding of consumer behavior and careful strategic thinking. To

develop the best marketing plans, managers need to understanding what makes each segment unique and different. • 1. Target marketing includes three activity , market segmentation, marketing targeting and market positioning. • 2.we can target market at four levels. Segment niches, local areas and individual. Market segment are large, identifiable groups within a market.a niche is a more narrowly defined groups. • 3.more companies now practice individual and mass customization. The future is likely to see more self marketing, a form of marketing in which individual consumer take the initiative in designing product and brand. • 4. There are two bases for segmenting consumer markets, consumer character and consumer response. The major segmentation variable for consumer markets are geographical, demographic, psychographic, and behavioral. Marketers use them singly or in combination. • 5. Business marketers use all these variable along with operating variable, purchasing approaches and situational factors. • 6. To be useful, markets segment must measurable, substantial, accessible, differentiable and actionable. • 7. A firm must evaluate the various segment and decide how many and which ones to target , a single segment , several segment , a specific product , a specific market or to the full market.if it serves the full market. It must choose between differentiated and undifferentiated marketing. Firm must develop segment by segment relationship and seek economies of scope and the potential for marketing to supersegment. • 8. Marketers must develop segment by segment invasion plans and choose target market in a socially responsible manners at all times.

Chapter 9

I learnt about in this chapter. Dealing with competition.building strong brands requires a keen understanding of competitors,and competition grows more intense every year. New competition is coming from all direction- from global competitors eager to grow sales in new market, from online competitors seeking cost efficient ways to expand distribution from private level and store brands designedto provide low price alternatives and from brand extention from strong megabrands leveraging their strength to move in to new category. One good way to start to deal with competition is through creatively designed and well executed marketing programe.

1. To prepare an effective marketing strategy, a company must study competitors as well as actual and potential customers. Marketers needs to identify competitor, strategies, objectives, strengths an weaknesses. 2. A company closest competitors are those seeking to satisfy the same customers and needs and making similar offers. A company should also pay attention to latent competitors, who may offer new or other way to satisfy the same needs. A company should identify competitors by using both industry and market based analyses. 3. A market leader has the largest market share in the relevant product market. To remain dominant , the leader looks for ways to expend total market demand, attempt to protect its current market share and perhaps tries to increase its market share. 4. A market challenger attacks the market leaders and other competitors in an aggressive bid for more market share. Challenger can choose from five types of general attack, challenger must also choose specific attack strategies. 5. A market follower is a runner of firm willing to maintain its market share and not rock the boat. A follower can play the roll of counterfeiter, cloner, imitator, or adapter. 6. A market nicher serves small market segments not being served by larger firms. The key to nichemanship is specialization. Nichers develop offering to fully meet a certain group of customer needs, commanding a premium price in the process. 7. As important as a competitive orientation is in todays global market, companies should not ordo the emphasis on competitors. They should maintain a good balance of consumer and competitor monitoring.

Chapter 10 I learnt about in this chapter creating brand equity. At the heart of a successful brand equity is a great product or service, backed by careful planning, a great deal of long term commitment, and creatively designed and executed marketing.a strong brand commands intense consumer loyalty. Markting of successful twenty first century brand must excel at the strategic brand management process.strategic brand management combines the design and implementation of marketing activities and program to build, measure, and manage brands to maximize their value.the strategic brand management process has four main steps. 1.identifying and establishing brand positioning 2.planing and implementing brand marketing 3.measuring and interpreting brand performance

4.growing and sustaining brand value • A Brand is a name, term sign, symbol , design or some combination of these elements, intended to identify the goods and service of one seller or group of seller and to differentiate them from those of competitors. The different components of a brand – brand names , logos , symbol, package design and so on – are brand elements. • Brand offer a number of benefit to customer and firms. Brand are valuable intangible asset that need to be managed carefully.the key to branding is that consumer perceive differences among brand in a product category. • Brand equity should be defined in terms of marketing effects uniquely attributable to brand. Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand. • Building brand equity depends on three main factors. (1)the initial choices of brand elements or identities making up the brand (2)the way the brand is integrated in to the supporting marketing program (3)the association indirectly transferred to the brand by linking the brand to some other entity . • Brand equity needs to be measured in order to be managed well. Brand audits measure where the brand has been and tracking studies measure where the brand is now and whether programs are having the intended effects.

Chapter 11

I learnt about in this chapter crafting the brand positioning. No company can win if its product and services resemble every other product and offering . as part of the strategic brand management process , each offering a compelling , distinctive big idea in the mind of the target market. 

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Deciding on positioning requires the determination of a frame of reference - by identifying the target market and the nature of the competition – and the ideal points of difference brand association . to determine the proper competitive frame of reference, one must understand consumer behavior and the consideration consumer use in making brand choice. Points of difference are those association unique to the brand that are also strongly held and favorably evaluated by consumer . points of parity are those association not necessarily unique to the brand but perhaps shared with other brands. Category point of parity association are association consumers view as being necessarily to a legitimate and credible product offering within a certain category.

The key to competitive advantage is relevant brand differentiation- consumer must find something unique and meaningful about a market offering. These differences may be based directly on the product or service itself or on other consideration related to factors such as personnel , channels or image.  Because economiccondition change and competitive activity varies , companies normally find it necessary to reformulate their marketing strategy several times during a product life cycle. Technologies , product forms and brands also exibit life cycle with distinct stages. The general sequence of stages in any life cycle is introduction, growth , maturity, and decline. The majority of products today are in the maturity stage.  Each stage of the product life cycle calls for different marketing strategy . the introduction stage is marked by slow growth and minimal profits . if successful , the product enters a growth stage marked by rapid sales growth and increasing profits. Therefollows a maturity stage in which sales growth slows and profits stablise.finaly a products enters in decline age.  Like products,markets evolve through four stage- emergence, growth,maturity and decline. 

Chapter 12

I learnt about in this chapter setting product strategy. At the heart of great brand is a great product . product is a key element of market offerings . market leaders generally offers product and services of superior quality that provides customer value.  Product is the first and most important element of the marketing mix. Product strategy calls for making coordinated decision on product mixes, product lines, brands and packaging and labeling.  In planning its market offering,the marketers needs to think through the five levels of the product the core beneit , the basic product , the expected product ,the potential product which ecompasses all the agumentation and transformation the product might ultimately undergo.  Product can be classified in several ways.in terms of durability and reliability , product can be nondurable goods , durable goods and service in the consumer goods category , product are convenience goods , shopping goods or unsought goods.

 Brands can be differentiated on the basis of a number of different product or service . dimension , product form , features , performance.  Most companies sell more than one product . a product mix can be classified according to width , length , depth, and concistency. These four dimension are tools of developing the company marketing.  A company can change the product component of its marketing mix by lengthening itsvia line stretching or line filling .  Brands are often sold or marketed jointly with othr brand.  Physical products must be packaged and labled . well designed packages can create convientional value for customer and promostional value for producer.