Marketing Management - cheat sheet Definition of 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 -American Marketing Association (2004). New assumptions: “Connect and collaborate”, not “command and control”. Market as forum for cocreation of experiences. Customers and partners as co-creators of value, Value-centric processes .“Sense and respond”, not “make and sell”. Opportunities for scaling up: Engagement Marketing, Evangelism Marketing, Word of mouth Marketing. Marketing Concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets (Kotler & Keller 2006: 19) Company orientations toward the marketplace: production concept >widely available and inexpensive products. Product concept >offer the most quality, performance, or innovative features. Selling concept> selling more products to more people more often for more money. Marketing concept>The purpose is not to find the right customers for your products, but the right products for your customers. Customer concept> individual offers, services, and messages for each customer. Marketing Management (phases) ANALYSIS: Demand analysis, Competitive analysis, Market research> STRATEGY: Segmentation, Targeting, Positioning> IMPLEMENTATION: product management, pricing, distribution (sales & channel management), communication. Demand analysis > qualitative customer value chain↓ Stages of the buying decision process → Mapping desired benefits↓
Levels of arousal: Heightened attention> the person become more receptive to information about a product. Active information search> the person looks for reading material, calls friends, and visits stores to learn more about a product. Perception: the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture. Perceptual processes: selective attention, selective distortion, selective retention ← Types of buying behavior. Buying roles: Initiator, Influencer, Decider, Buyer, User. Business buying behavior, company purchasing orientations: Buying (short time and tactical; strategies>commoditization-care only about price- or multi-sourcing making suppliers competing). Procurement (simultaneously seek quality improvements and cost reduction; strategy>collaborative relationships with major suppliers). Supply chain management (purchasing role is broadened to become a more strategic, value-adding operation; strategy> improving the whole value chain, from raw materials to end users). Stages in the business buying process: Problem recognition, General need description and product specification, Proposal solicitation, Order routine specification, Performance review. Demand analysis > quantitative. Notions: Market DCompany D, Current DPotential D Market demand for a product is the total volume that is (would be) bought by a defined customer group in a defined geographical area in a defined time period under a defined marketing program. Market demand is not a fixed number, but rather a function of stated conditions. Company demand is the company’s share of market demand. ← Market share: The total purchase of the product A by the company’s distributors (TPA) refers to the total amount of a specific product category A bought by those distributors that also sell the individual company’s product. It can be expressed either in volume or in sales. TPA can be estimated just for those companies selling through distributors. Disaggregating weighted coverage → ← Managerial implications of market share disaggregation Current demand: actual buyers of a category of product (actual market demand) or a company’s product (actual company demand), under the actual marketing...
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