Marketing: Strategic Focus

Vinod Puri 98206 94960

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

For an Exchange to Occur…
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There must be at least two parties Each party has something that might be of value to the other party Each party is capable of communication and delivery Each party is free to accept or reject the exchange offer Each party believes it is appropriate or desirable to deal with the other party

What Is Marketed?
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Goods Services Events and Experiences Persons

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Places and Properties Organisations Information Ideas

The Marketing Triad Customer Coordination and Cooperation in the Marketing Process Marketer Employee .

Marketing Mix and the 4 Cs     Customer solution Customer cost Convenience Communication .

Marketing-Mix Strategy     Offer mix Communications mix Distribution channels Target customers .

Evolution of the Marketing Concept       Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept The “New” Marketing Concept     Customer-focused Market-driven Global in scope Able to deliver superior value to customers .

The Marketing Mix Within an Interactive Marketing System .

Integration of Marketing with Other Business Functions ns tio a er Op M ar ke tin g Acc oun t in g nce nce Fina Fina Human Resources .

wants.Fundamental Marketing Concepts     Needs. and demands Target markets. positioning. and segmentation Offerings and brands Value and satisfaction      Marketing channels Supply chain Competition Marketing environment Marketing planning .

Focus on Customer Satisfaction     Are customer-oriented strategies adapted to changes in markets and buying behavior? Are customers involved earlier in the marketing process. leading to a better understanding of customers? What are your value-added marketing strategies: quality. service. and value? How effective are your internal marketing programs for employees? .

.“The Changing Role of Marketing in the Corporation. Jr. Vol.“ Journal of Marketing. 5. Webster. p.The Range of Marketing Relationships Source: Redrawn from Fredrick E. . 56 (October 1992).

Five Types of Needs      Stated needs Real needs Unstated needs Delight needs Secret needs .

Marketing Management Tasks     Developing marketing strategies Capturing marketing insights Connecting with customers Building strong brands     Shaping market offerings Delivering value Communicating value Creating long-term growth .

computerisation. rate of change. software. database capabilities.Revolutionary Changes in Business Continuous Innovation and Creative Adaptation  Globalisation of markets  Demographic and geographic shifts. networks. constant interactive communication  New and emerging technologies   Information age economy  . income distribution and lifestyle changes. convergence Internet. rising third world economies Telecommunication.

and to fellow employees Use marketing research to gain additional marketing insights . to the company.Building Marketing Relationships Internal Marketing     Promote the company’s vision and goals to internal customers Utilize cross-functional and project teams Build loyalty to projects.

domestic or global. etc. logistics/supply chain functions .Building Marketing Relationships (cont’d) External Relations     Build long-term relationships with all stakeholders External relations are very important in times of environmental change Relationships may be formal or informal. Place emphasis on customer involvement.

in particular ones that advocate or have political content Identify causes of negative events or poor performance Identify changes in the competitive set .Identifying Opportunities in Times of Change       Engage in formal environmental scanning through internal marketing information systems (MIS) and external data services Initiate secondary and primary research studies Analyze industry and trade association data Consult consumer publications.

Two Views of the Value Delivery Process Traditional Process Sequence   Value Creation and Delivery Sequence  Make product Sell product   Choose the value Provide the value Communicate the value .

Benchmarks   Organizational costs and performance measures Competitor costs and performance measures .

Five Core Business Processes      Market sensing Customer relationship management New offering realization Fulfillment management Customer acquisition .

The Value Chain .

The Generic Value Chain Support Activities  Firm infrastructure  Human resource management  Technology development  Procurement Primary Activities  Inbound logistics  Operations  Outbound logistics  Marketing and sales  Service .

Characteristics of Core Competencies A source of competitive advantage Applications in a wide variety of markets Difficult to imitate    .

A Holistic Marketing Framework    Value exploration Value creation Value delivery    Customer focus Core competencies Collaborative network .

Corporate Planning Activities     Defining the corporate mission Establishing SBUs Assigning resources to SBUs Assessing growth opportunities .

The Strategic Planning. Implementation. and Control Processes  Planning  Corporate–division–business–product  Implementing  Organizing–implementing  Control  Measuring results–diagnosing results– taking corrective action .

Major Competitive Spheres    Industry Products Competence    Market segment Vertical Geographical .

” . and by doing so. to do this so as to earn an adequate profit which is required for the total enterprise to grow.Motorola “The purpose of Motorola is to honorably serve the needs of the community by providing products and services of superior quality at a fair price to our customers. provide the opportunity for our employees and shareholders to achieve their personal objectives.

opportunity sellers. unique item seekers.” . bargain hunters. and browsers. dealers. We will continue to enhance the online trading experiences of all–collectors.eBay “We help people trade anything on earth. small businesses.

Dimensions that Define a Business    Customer groups Customer needs Technology .

Growth Opportunities    Intensive growth Integrative growth Diversification growth .

Organizations    Structure Policies Culture .

The Business Unit Strategic-Planning Process        Business mission SWOT analysis Goal formulation Strategy formulation Program formulation Implementation Feedback and control .

Market Opportunity Analysis (MOA)    Can the benefits involved in the opportunity be articulated to a defined target market? Can the target market be located and reached with cost-effective media and trade channels? Does the company have access to the critical capabilities and resources needed to deliver the customer benefits? .

Market Opportunity Analysis (MOA)   Can the company deliver the benefits better than any actual or potential competitors? Will the financial rate of return meet or exceed the company’s required threshold for investment? .

Goal Formulation  To be effective. goals must be:     Ordered in terms of priority (hierarchical) Stated quantitatively Realistic Consistent .

Porter’s Generic Strategies     Overall cost leadership Differentiation Focus Synergy .

McKinsey’s Seven “S” Elements        Strategy Structure Systems Style Skills Staff Shared values .

Marketing Plan Contents       Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls .

Measuring Marketing Plan Performance     Sales analysis Market share analysis Marketing expense-to-sales analysis Financial analysis .

Tracking Market Share    Overall market share Served market share Relative market share .

Methods of Improving Return on Assets   Method 1: Increase the profit margin by increasing sales or cutting costs Method 2: Boost the asset turnover by increasing sales or reducing assets that are held against sales levels .