Marketing Management Notes

Chapter 1: Marketing Management

Marketing: Central function and set of processes essential to any enterprise

 Considerations in Marketing: Relevant Stakeholders

 Core marketing concepts:
1. Value: ratio of benefits a customer receives from an offering compared to the cost
incurred
2. Exchange: when people give up something of value to them for something else they
desire to have
 4P’s of Marketing Mix:
1. Product
2. Price
3. Place
4. Promotion
 Post Marketing Concept Approaches
1. Differentiation: Communication of how the company is different from competitors
2. Market Orientation: Implementation of marketing concept, including customer
orientation
3. Relationship Orientation: focusing on customer retention, Customer Relationship
Management drives customer satisfaction and loyalty
4. One to one Marketing: offering customized products and services, Mass
customization (furniture)
 Changes drives impacting the future of marketing
1. Product glut and customer shortage
2. Information power to customer
3. Generational values and preferences
4. Distinguishing marketing
5. Demanding return on marketing investment

Chapter 4: Elements of Marketing Strategy, Planning and Competition

Value: ratio of benefits to cost

 Benefits: Utility ( Satisfying power of goods or services)

 Four major types of utility
1. Time utility
2. Ownership utility
3. Place utility
4. Form utility
 Value proposition: communication of unique value of its products, including benefits that
company promises to deliver, must be strong enough to move customer past satisfaction.
 Value chain: Means for firms to identify ways to create, communicate and deliver more
customer value within a firm
1. Primary activities:
- Inbound Logistic
- Operations
- Outbound Logistics
- Marketing and Sales
- Services
2. Support activities
- Firm Infrastructure
- Human Resource Management
- Technology Development
- Procurement
 Marketing Planning: ongoing process of developing and implementing market driven
strategies for organization
 Marketing Plan: resulting document that records the marketing planning process in a
useful framework
  Market-driven strategic planning: the process of marshaling the various resources and
functional areas of the firm toward a central purpose around the customer
 Portfolio Analysis: views product lines as series of investments which expects
maximization of returns (BCG Growth Share Matrix, GE Business Screen)
 Organizational Strategies: comprehensive plan stating how the organization will achieve
its mission and objectives, generic strategy being its overall directional strategy at
business level.
1. Growth
Concentration: vertical: acquire another business in supply chain, horizontal
integration: Acquire similar business at the same points of supply chain
Diversification: Concentric: going to business closely related, Conglomerate: going to
business completely unrelated.
2. Retrenchment: Week competitive may force, focuses assets where there is greater
potential
3. Stability: continue current activities, useful short term strategy

Elements of Marketing Planning: Strategy Categories

1. Cost leadership: lowest costs to produce goods or services for broad customer base
2. Differentiation: unique goods or services that customers value, willing to pay premium
3. Focus (niche): pursues either cost or differentiation advantages, but in narrow group,
serving specific market niche

Elements of Marketing Planning: Competencies

1. Core competencies: activities the firm does well

2. Distinctive competencies: core competencies that are superior to competitors
3. Sustainable competitive advantage: cannot easily duplicated by competitors

SWOT Analysis
 Forces Driving Industry Competition

Market Research

- Goals are qualitative

- Objectives are quantitative

Developing Marketing Strategies

1. Market Penetration
2. Product Development
3. Market Development
4. Diversification

Chapter 4: Market Research Essentials

Information Power

Types of market information:

1. Broad areas of interest

2. Addresses a specific question

Internal Sources

 Marketing information system: continuing process of identifying, collecting, analyzing,

accumulating, and dispensing critical information to marketing decision makers

External Sources

 Collection of information outside the company

 Engage in collecting, analyzing, and storing data from macro environment on continuous
basis known as marketing intelligence

Importance of Market Research

 Impartial and objective info enhances validity of information

Market Research Process

Chapter 6: Understand consumer and business markets