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Customer Value:

CHP1-CREATING & CAPTURING CUSTOMER VALUE Customer Perceived Valuethe customers evaluation of the difference between all the benefits
and all the costs of a market offering relative to those of competing offers.
WHAT IS MARKETING? Customer Satisfaction:
Marketing is managing profitable customer relationships. To attract new customers by promising
The extent to which a products perceived performance matches a buyers expectations.
superior value and to keep and grow current customers by delivering satisfaction.
ie. Ritz-Carlton Hizmette Memorable Experience olusturacak kadar u noktaya gidiliyor!
Marketing Defined: Customer Relationship Levels and Tools:
Mktg is a social and managerial process by which, individuals and organizations obtain what they - Frequency Marketing Programs ; Club Marketing Programs
need and want thru creating and excahnging value with others. Ie. Supply Management Online system of McKesson Corporation helps retailer customers
The Marketing Process manage their inventories, orders and shelf space.

The Changing Nature of Cust. Relationships (Recent Trends)

-Selective Relationship Management: Relating with more carefully selected customers.
o Profitability analysis: ie. Angels & Demons policy of Best Buy
-Interacive & Deep Relations:
o Consumer Generated Marketing: Mktg messages, ads and other brand exchanges created
by consumers themselves both invited and uninvited.
o Attraction rather than intrusion
UNDERSTANDING THE MARKETPLACE & CUSTOMER NEEDS o Direct marketing and social networks, instead of mass marketing,
Customer Needs, Wants, And Demands Partner Relationship Management
Needs are states of felt deprivation
Wants are the human needs that are shaped by culture and personality Marketing Partners Inside The Company:
When backed by buying power wants become Demands. Company people from all departments & functions are partners of marketers in the Mktg process.
ie. Approach of P&G Customer Development Teams instead of independent functions.
Market Offerings- Products,Services & Experiences Marketing Partners Outside the Company:
Market offerings are products,services, persons, places, organizations, information and ideas. Networked companies that rely heavily on partnership with other firms.
Marketing Myopia: Making the mistake of paying more attention to the specific Supply Cahin Members and Supply Chain Management
products they offer than to the benefits and experiences produced by these
Customer Value & Satisfaction Creating Customer Loyalty And Retention
Customer value and customer satisfaction are key building blocks for developing and managing
Even a slight drop from Customer Satisfaction can create an enormous drop in Loyalty. Thus the
customer relationships.
aim of CRM is to create not just customer satisfaction, but customer delight Frederick Reicheld
Exchanges & Relationships Customer Life Time Value: the stream of purchases that the customer would make over a
Marketing consists of actions taken to build and maintain desirable exchange relationships with lifetime of patronage
target audiences involving a product, service, idea, or other object. Growing Share Of Customer
Markets Instead of market share, the emerging one is Share of Customer.
A market is the set of actual and potential buyers of a product. These buyers share a particular -Share of Wallet, Share of Stomach, Share of Garage, Share of Travel
need or want that cars be satisfied through exchange relationships. -Cross-Selling and Up-Selling opportunities are explored

Building Customer Equity

DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY Customer equity is the combined discounted customer lifetime values of all of the companys
Marketing management is the art and science of choosing target markets and building profitable current and potential customers.
relationships with them.
Marketing Strategy: What customers will we serve (whats our target market)? Building Right Relationships with the Right Customers:
How can we serve these customers best (whats our value proposition)?
Figure 1.5 Customer Relationship Groups (by W erner Rel na rts & V. Kuma r)
Selecting Customers To Serve
Marketing management is Butterflies True Friends
-Customer Management ( Market Segmentation & Target Marketing) Good fi t between compa ny's offers a nd Good fi t between compa ny's offers a nd

Profi ta bi l i ty
-Demand Management (Demarketing) cus tomer's needs ; hi gh profi t potenti a l cus tomer's needs ; hi ghes t profi t potenti a l

Choosing A Value Proposition Strangers Barnacles

Is the set of benefits or values the firm promised to deliver to consumers to satisfy their needs. Li ttl e fi t between compa ny's offers a nd Li mted fi t between compa ny's offers a nd
Profi ta bi l i ty
cus tomer's needs ; l owes t profi t potenti a l cus tomer's needs ; l ow profi t potenti a l
Marketing Management Orientations Short-term cus tomers Long-term cus tomers
What weight to give to the interests of customers, the organization, and society? Often, conflicts. Projected loyalty
The Production Concept:
- Holds that consumers will favor products that are available and highly affordable.
- Focus on improving production and distribution efficiency. The New Digital Age (Online Marketing)
- Losing sight of satisfying customer needs and building customer relationships.
The Product Concept: Rapid Globalization (International Marketing)
- Products that offer Quality, Performance, Innovation. The Call For More Ethics And Social Responsibility
- Focus on product improvement. Make and Sell approach. - Consumerism and Environmentalism, the caring capitalism
- Losing sight of marketing mix of 4Ps.
The Growth Of Not-For-Profit Marketing
The Selling Concept: - Colleges, Museums, Religions, Army , Charities etc.
- Products that are supported by Selling & Promo Efforts. Sales volume is aimed.
- Losing sight of Satisfaction, Retention, Relationships. Inside-Out approach. SO, WHAT IS MARKETING? PULLING IT ALL TOGETHER
The Marketing Concept:
- Products that meet customer needs, wants. Customer satisfaction is aimed.
- Focus on customer and value.
- Sense and respond. Outside-In approach.
- Customer driven marketing vs Customer driving marketing.
Consumer Behavior vs Neuro Marketing or Conscious needs vsUnconscious needs.
The Societal Marketing Concept:
- Focuses on Putting People Before Profits
- The products that meet consumers short-run wants and long-run welfare
- Improve both consumers and societys well-being.


Marketing Program delivers the intended value to chosen customers.


Customer Relationship Management
CRM is perhaps the most important concept of modern marketing.
Narrowly, is to manage Customer Data & Customer Touch Points to maximize Customer Loyalty.
Broadly,is to building and maintaining profitable customer relationships by delivering superior
value and satisfaction. It deals with all aspects of acquiring, keeping, and growing customers.
Relationship Building Blocks: Customer Value & Satisfaction:
To understand the role of MKTG, we must understand the company strategic planning process.


Strategic planningthe process of developing and maintaining a strategic fit between the
organizations goals and capabilitips and its changing marketing opportunities.
The annual & long-range plans deal with the current businesses and how to keep them going.
The strategic plan involves adapting the firm to opportunities in the changing environment.

Market Segmentation :
- Mkt segment is a group of consumers who respond in a similar way to a given set of MKTG programs.
- Segmetation is dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors, who might require separate products or marketing programs.
-Segmentation Types: Geographic, Demographic, Psychographic, Behavioral.

Defining a Market Oriented Mission: Market Targeting:

Beware of marketing myopia.Dontt use product & technology terms.Use market oriented terms. Evaluating each market segments attractiveness and selecting one or more segments to enter.
Be clear, meaningful, motivating and express what you simply want to give the people. ie. Vivendi Niche Targeting (targeting single or few segments) ie.Ferrari, Veterinary Pet Insurance, Soy Milk
Prd oriented We run theme parks Mkt oriented We create fantasies -a place where dreams come true Multi-Segment Targeting: ie. AberCrombie(College, Teens, Kids Original, Hollister, AberCrombie
Targeting All Market Segments with different products. ie GM
Setting Company Objectives & Goals:
The mission leads to a hierarchy of objectives, including business objectives and mktg objectives. Market Differentiation and Positioning
-Differentiate market offering to create superior customer value for each targeted segment .
Designing the Business Portfolio: Collection of businesses of a company. -Positioning identifies possible customer value differences that provide competitive advantage
The best business portfolio is the one that best fits the companys strengths and weaknesses to -Positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative to
opportunities in the market. When designing a bsinessportfolio its a good idea to add and support competing products in the mind of target consumers.
products and businesses that fit closely with the companys core philosophy and competences. Consumers to Buy Differentiation (be better on the desired attribute)
Consumers to Pay More Positioning (be better on the overall perceived values)
Analyzing The Current Business Portfolio:
Portfolio Analysis:The management evaluates the products and businesses making up the company. Developing an Integrated Marketing Mix (The companys tactical toolkit)
To put strong resources into more profitable businesses and phase down or drop weaker ones.
Strategic Business Units (SBU): a unit of the company that has a separate mission and objectives
and that can be separately planned. Can be a division, a product line, a brand or a product.
Resource reassignment among SBUs.
The Boston Consulting Group Approach:

Sellers View 4Ps Product, Pric, Plce, Promo

Buyers View 4Cs Customer Solution, Customer Cost, Convenience, Communication


MNGMT Analysis, Planning, Implementation, Organization, Control
Decisions: Build / Hold / Harvest / Divest
Problems with Matrix Approaches:
Provide little advise for future planning but current situation.
Strategic Planning efforts are getting more and more decentralized today.
Strategies for Growth & Downsizing(Analysis for Future Portfolio)
Growth Strategies:

Marketing Analysis (SWOT)

-Strengths: Internal Capabilities, Resources, Positive Situational Factors
-Weaknesses: Internal Limitations, Negative Situational Factors
-Opprtunities: Favorable external factors or trends
Downsizing Strategies: Prune /Harvest / Divest -Threats: Unfavorable external factors or trends
BASFs Strategic Plan: Mission-> Help customers to employ chemicals to find innovative solutions. Analyze markets & MKTG environment to find opportunities & identify threats
This implies R&D R&D implies profitability Increased Sales or Reduced Cost Analyze company strengths & weaknesses as well as current & possible MKTG actions to
determine best opportunities to pursue.
Overall Objectives
Marketing Planning
Product or brand MKTG plans. The outline of a MKTG plan is as follows:
-Executive Summary: Review major assessments, goals & recommendations
Increased Sales Improved Domestic Share or International Share (MKTG
-Detailed SWOT Analysis: Current MKTG situation Potential threats & opportunities
-Major Objectives: For the brand or the product.
Improved Domestic Share Increased Availability & Promo (Broad MKTG
-Detailed Mktg Strategy: Targeting -- Positioning -- MKTG Mix MKTG Expenditure Levels
Planner here explains how each strategy responds to threats, opportunities & other critical
Increased Promo Sales People, Advertising, PR (Requirements)
issues mentioned earlier in the plan.
-Action Program for Implementation:
PLANNING MKTG: PARTNERING TO BUILD CUSTOMER RELATIONSHIPS -Marketing Budget: Supporting the details of MKTG program
MKTGs role in company strategicplanning:
-Control Section: -- How to monitor progress - -How to measure ROI -- Corrective Actions
-Provides MKTG concept: Defines how company strategy revolve around building profitable
relationships with important consumer groups. Marketing Implementation - Implementation is as much important as strategy
-Provides input by helping to identify market opportunities by assessing the firms potential to
take advantage of the market Marketing Department Organization
-Design each units strategies for reaching units objectives profitably. Funct Org - Geog Org - Product Mng Org - Ctg Mng Org Market Mng Org Cust Mng Org
Prod Mng started by P&G 1929 Camay Soap. Trend today from Brand Mng Cust Mng (P&G)
Partnering with Other Company Departments (Value Chain)
MKTG help coordinating all departments as to be customer focused. Value Chain Weakest Link Marketing Control(-Set Goals-Measr Perf-Identify Diffr & Reasons- Correct Act)
Operating Control:Check ongoing performance against annual plan. Sales , profits, etc.
Partnering with Others in the MKTG System (Value Delivery Network) Strategic Control: Check the match between company strategies & opportunities
-Value Delivery Network(McDonalds): The network made up of the suppliers, distributors & Marketing Audit: Covers all MKTG areas (environment, strategy, organization, mix, productivity &
customers of Co. who partner with each other to improve the performance of the entire system. profitability of MKTG etc.) Coducted by an objective, experienced, outside party.
-Supplier Satisfaction: Supplier improvement & training them to better function (Toyota)
-Competition is between Value Delivery Networks of competitors, rather than competitors alone. MEASURING & MANAGING RETURN ON MKTG INVESTMENT
-Measurement & Accountability
MARKETING STRATEGY AND THE MARKETING MIX -MKTG Dashboards: Meaningful sets of MKTG measures in a single display used to monitor strategic MKTG perf.
Guided by MKTG strategy the company designs an integrated MKTG Mix. To find the best MKTG -Measures of Current Performance (Traditional) + Measures of Future Performance (NEW)
strategy and mix the company engages in MKTG Analysis, Planning, Implementation & Control. (Awareness, Sales, Profits, Market Share etc.) (Acquisition, Retention, Lifetime
Value, Equity)
Customer-Driven Marketing Strategy
MKTG logic by which the company hopes to create customer value & achieve profitable relationship.
Linking purchases of companys products with fundraising for worthwhile causes or charitable


Company Suppliers MKTG Intermediaries Competitors Publics Customers People grow in a society that shapes their basic beliefs and values.

The Company Persistance of Cultural Values

-Core Beliefs Almost no change ie.honesty, charity, marriage, work etc. Parent to child
Value Chain Everybody should Think Consumer Marketing takes the lead.
-Secondary Beliefs More open to change. ie. Get married early.
Suppliers Marketers try to

Marketing Intermediaries Shifts in Secondary Cultural Values

Resellers -- Distribution Firms -- Mktg Services Agencies, -- Financial Intermediaries Used to predict big cultural changes
ie. Yankelovich Monitor Monitors consumer trends & identify consumer segments
Competitors Peoples Views of Themselves (Self View)
Publics Do-It-Yourself segment, Adventurers segment. ie. MasterCard targets Adventurers
Is any group that has an actual or potential interest in or impact on an organizations ability t Peopless Views of Others
achieve its objectives. Financial Publics Media Publics Citizen-Action Publics Government Cocooning in the digital age. Dar ckmama, evde vakit gecirme.
Publics Local Publics General Public Internal Publics
Peopless Views of Organizations
Customers -Decline in organizational loyalty work is a chore to earn money
Consumer Markets Reseller Markets Government Markets Intnl Markets Business Markets
Peoples Views of Society
Patriots (wants to defend), Reformers (wants to change), Malcontents (wants to leave)
THE COMPANYS MACROENVIRONMENT American patriotism has surged within the last decade.
Demographic Environment Peoples Views of Nature
Size, Density, Location, Age, Gender, Race, Occupation & other statistics(US 300M vs 114M households) Segments: Ruled by it --In harmony with it -- To master it
Changing Age Structure of the Population -Growing LOHAS market (Lifestyles Of Health And Sustainability)
Ie. Six-Pocket syndrome of Chinese kids Peoples Views of the Universe
The Baby Boomers Increasing Spirituality and religions away from Materialism and struggle.
Emerging trend is New Spiritualism: wondering about meaning of life, soul, spirit
Born 1946-1964. 30% of population, 78 M people, 75% of assets, 45-65 ages, $2.3 T of spending
Three Segments: Leading Edge Boomers Core Boomers Trailing Edge Boomers
Ameriprise Financial targets Baby Boomers RESPONDING TO THE MARKETING ENVIRONMENT
- Reactive (React & Adapt)
Generation X - Proactive (Act & Affect)
Born between 1965-1976, 49 M people, $1.4 T of spending Proactive Stance:
Charles Schwab targets GernerationXers. - Hire lobbyists to influence legislation
Milennials (Gen Y - Echo Boomers) - Stage media events to gain favorable press coverage
Born between 1977-2000. 83M people. 45% ethnic - Run advertorials to shape public opinion
Three segments: Tweens, Teens, Young Adults - Press lawsuits and complaints against competitors
Swash of Tide targets Millennials. - Form contractual agreements to better control the distribution channels
ie. Oscar Mayer hot dogs fight against rumosr about refusing to supply US troops in Iraq.
Generational Marketing
-Each generational segment consists of many subsegments to take into special consideration.
-Generational segmentation is less effective than lifestyle, life stage, common value segmentation
The Changing American Family
Ie. Peapod Online Grocer
Geographic Shifts in Population
-Movement towards MicroPolitan areas
-SOHO: Small Office Home Office
-Tele-Commuting:Work at home or remote office & conduct business by phone, internet. ie. WebEx
A Better-Educated, More White-Collar, More Professional Population
Increasing Diversity
-Growing ethnic diversity: Hispanics, Asians. ie. Energizer Bunny
-LGBT Community: 25% of households. ie. Logo cable TV
-Disabilities: 54 millions, about 18%. ie.

Economic Environment
Industrial Economies Subsistence economiesDeveloping Economies
Changes in Income
-Value Marketing: Right combination of quality & service at fair price
-Top 1% gets 21% of total income in the US. Bottom 50% gets 13%
Ie. High-end designer Isaac Mizrahi pioneered fashion for the masses at Target stores
Less expensive lines are being sold at H&M
Changing Consumer Spending Patterns
Engels Law: As family income rises food expenses decline in percentage; housing remains same;
other expenses & savings increase in percentage.

Natural Environment
-Environmentally Sustainable Strategies:
-Non-renewable Resources
-Increased Pollution
-Increased Government Intervention
-Green Movement
ie. GEsEcomagination (-40% emission)
HPs recycling system (800 jumbo jets material re-collected)

Technological Environment
ie. RFID technology use fostered by Wal-Mart

Political & Social Environment

Laws -- Government Agencies -- Pressure Groups
Legislation Regulating Business
Increasing Legislation
Changing Government Agency Enforcement
Increased Emphasis on Ethics and Socially Responsible Actions
Socially Responsible Behavior
-Look beyond the regulatory system
Cause-Related Marketing
A Marketing Information System (MIS) consists of people, equipment, and procedures to gather,
sort, analyze, evaluate, and distritute needed, timely, and accurate information to marketing
decision makers.
Customer Insights: Fresh understandings of customers and the marketplace.


Internal Data (All business and customer data within the company)
Marketing Intelligence
Systematic collection & analysis of publicly available info about consumers, competitors &
developments in the market (Monitoring internet buzz, observing consumer, quizzing employees,
benchmarking competitors products, researching the internet, trade shows, rivals trash bins)
-Online monitoring services ie NielsenOnline, BrandIntel
-Competitive Intelligence: The companies that are using are proved to be 20% faster in taking
actions than those are not using competitive intelligence Source:PWC.
Sources are employees, suppliers, resellers, customers, analyze competitors products, check
published info, examine any type of physical evidence, web, waste bins, annual reports, business
publication, online databases, patent offices, BVD, Carol, D&B, EU Patent Office

The systematic design collection & analysis of data relevant to a specific MKTG situation
-Gives insights about customer motivations, purchase behavior, satisfaction, assess
market potential,market share, measure the effectiveness of 4 Ps

Defining the Problem and Research Objective

Developing the Research Plan
Gathering Secondary Data
Primary Data Collection
Research Approaches
Observational Research
Survey Research
Experimental Research
Contact Methods
Mail, Telephone and Personal Interviewing
Online Marketing Research
Sampling Plan
Research Instruments
Mechanical Instruments
Implementing the Research Plan
Interpreting and Reporting the Findings
Customer Relationship Management (CRM)
Mktg Research in Small Businesses and Nonprofit Orgs.
International Marketing Research
Public Policy and Ethics in Marketing Research
Intrusions on Cnsumer Privacy
Misuse of Research Findings
MODEL Environment BlackBox Respons SEGMENTATION Divide mkt into groups for needs,behv,characteris NEW PROD STRG By Acquisiton or By NPD
MktStim Other "Rifle approach instead of shotgun approach" THE NPD PROCESS
Produc Eco Attitude VariableGeopgraphic Demographic Idea Generation Internal/External Sources
Price Tehno ByrCharac Purchase Behavioral MultipleSegm Idea Screening Filter (RWW: Real, Woth,Win)
Place Socio Deci Proce PostPurc BusinMktSegm & IntlMarketSegm Concept Dev&Test Concept, Idea, Image
Promo Cultur Relationsh Rules Measrbl,Accesbl,Substantl,Differentibl,Actionabl Mkt Strg Dev 3 Stages
BUYER CHARACTERISTIC TARGETING Evaluating segm attractiveness&selecting segm Describe the Target Market
Cultural Social Personal Psycho Evaluating Size&Growth Segment size and growth State the Value Proposition
AgeLifeCyc StructAttractv Competitor,Buyers,Substitut,Supplrs Define the Goals for the First Year
Culture RefGroup Occupation Motivation Resourc&Obj Company resource&objectives Business Analysis To analyze financial attractivenes
EcoSituatio Perceptio Selecting Sales Forcast, Cost Estim, Proft Projection
Subcult Family LifeStyle Learning Undifferentiated Mktg (Mass Mktg) Product Development
Personality Beliefs Differentiated Mktg Prototype Development
SociaCls Role&Sta SelfConce Attitude Concentrated Mktg (Niche Mktg) Quality Test Torture, Consumer, Lab Tests
Culture Learned values, perceptions, wants, behavio Micromarketing Test Marketing Standard / Controlled / Simulated
Cultural shift is important to detect Local Marketing Commercialization
Subculture Nationality, religion,race, geography Individual Mktg Mass Customization, OnetoOne Mktg Timing Intro timing
Base for important mkt segments Makts of One, Self Mktg Place Market / Global Rollout
Class Upper, Middle, Working, Lower Factors Company Resources ProductLifeCycle MANAGING NPD
Wealth, Educ,Occupation, Income Product Variability Market Variability Customer-Centered, Team Based, Systematic
GroupNetw Reference, Membership, Online Grp&Netw Competitor's Strategy If Undiff->Go Diff etc PLC STRATEGIES
Family Traditional roles are changing, Masculinization Socially Responsible Targeting PLC Dev.
Children getting more important Unfairly targeting vulnerable segms with questionabl Intro Innovators no profit
RoleStatus Each role carries a status given by the society products or tactics against the interest of the targ Grow EarlAdopt Decide +Profit or +Volume
AgeLifeCyc Traditional:YoungSingles,MarriedCouples DIFFERENTIATION&POSITIONING Matur Mid Major Modify the Mkt / Prod / Mix
New:UnmarriedCouples,SingleParents,EmptN USP (UniqueSalesProp) Value Proposition Decli Laggards Maintain/Repos/Harvest/Drop
Occupation occupational segmentation & targeting niche Product Position PerceptualPositMaps Diffr for Prod Class / Prod Form / Brand(shortest life)
EcoSituati Income Sensitive Goods, Luxury Goods Steps Identfy a set of differentiating competitive advantg Applies different for Styles / Fashions / Fads
LifeStyle Activity,Interest,Opinion Choose the right competitive advantages Strategies Intro Growth Maturity Decline
Consumers don't just buy prod but lifestyles Select an overall positioning strategy Product Basc Prod Extension Diversifica Eliminat
Pers&SelfConcept Traits:Dominance,Defensiveness, How to Diff Possible to differentiate at every Cust Touch Point Price CostPlus Mass Prc Competitive Cut Prc
Sociability,Adaptability,Autonomy,Aggresiven Diff Types Service, Channel, People, Image, Product, Experi Distribution Selective Intensive More Inten Selective
Aaker's BrdPrs Sincer,Excit,Compet,Soph,Rugge CompAdvg Distinctive,Important,Superior, Advertising Innv Aware Mass Awar Differences - loyals
Self Concept Possession contribute to reflect self Preemptive,Affordable,Profitable Sales Promo heavy, trial -suplyonly +for Switc - to min
Motivation Needs:Freud,Maslow,McClelland Value Prop Price vs Value MoreForMore, MoreForSame, ADDITIONAL CONSIDERATIONS
Motivational Research; ErnstDichter SameForLess, MoreForLess Prod Decis&SocialResp
Perception Selective Attention,Distortion,Retention ProdLiability / Warranty(FuLi)
Learning Need->Drive->Motive->Response->Reinforc Adaptation to Intl mkts
Learning->Belief->Attitude->Behavior 8 - PRODUCTS&SERVICES
Stimuli, Stimulus Objest and Cues WHAT IS Products, Services, Experiences 10 - PRICING
Belief&Attit Learned,difficult to change,fit into a pattern Levels Core,Actual,Augmented FACTORS TO CONSIDER
TYPES OF BUYING DECISION BEHAVIOR Cons Products Conv, Shop, Specialt, Unsought Customer Perceptions of Value
+Involvem -Involvem Ind Products Mtrls/Part, Capitl, Suppls/Services Value Based Prc
+PercDiffr Complex VarSeekng Organizations, Ideas, Persons, Places Good Value Prc
-PercDiffr DissRedu Habitual DECISIONS Value Added Prc
Complex Info need, persuasion, takes long time Individual Product Decisions Company & Prod Cost
DissReduc Long search, quick purchas(AfterSaleImport) Attributes Cost Based Prc
Habitual Key Drivers:Familiarity&Conviction, Passv Lear Quality (Level, Consistency) Type of Costs Fixed / Variable / Total
VarSeek MktLeader triesHabitual vs Follower pirce off Features(Differentiation) Costs at Different Level of Production
BUYER DECISION PROCESS Style & Design Costs as Function of Production Experience
NeedRec->InfoSear->EvalofAlt->Purc->PostP Branding Cost-Plus Pricing
ExtenProbSolv -LimProbSolv-AutomBuyBeh Packaging Break-Even Analysis & Target Profit Pricing
NeedRec Need+Int/ExtStimuli->Drive Labelling Other Intern / Extern Considerations
InfoSearch Personal,Commercial,Public,Experient Sourc Support Overall Mktg Strg. Obj, Mix
EvalOfAlter Heuristic,DecisionRules,CopingStrategies Product Line Decisions (Streching, Filling) Organizational Considerations
PurcDecisi Eval+AttitOfOthers+SituationalFact->Purcha Product Mix Decisions (Width, Depth, Consistency) The Market Monopolistic,Oligopolist,Pure Comp,Monopoly
PostPurch All purch have some Cognitive Dissonance BRAND STRG Brand equity, Brand valuation The Demand Curve Slope / Elasticity
Adoption Awareness->Interest->Eval->Trial->Adoption On Attributes / On Utilities/ On Belief&Values 11 - PRICING STRATEGIES
Innovators,EarlAdopt,EarlMaj,LateMaj,Laggards Name Selection NEW PRODUCT PRICING
Facto Advg,Compatib,Complxity,Divisib,Communbl Sponsorships Market Skimming / Market Penetration
P/L , Manufacture, Licencing, Cobranding PRODUCT MIX PRICING
6-BUS MKTS & BUY BEH Brand Development (Henry Assael) Product Line Pricing / Optional Product Pricing
BUSINESS MARKETS Line Extension Brand Extension Captive Prod Pricing / By-Prod Pricing / Bundle Prc
FactoMarket Structure&Demand Multi Brands New Brands PRICE ADJUSTMENT STRG
Large&few buyers, Deriv Demand,InelasticPrc Management Discount Allowance Pricing
Nature of Buying Unit Advertisement Segmented Pricing
More informed buyers, proffessional effort Brand Experience Customer Touch Points Customer Segment Pricing / Location Pricing
Decision Process Brand Enthusiasm Inside Product Form Pricing / Time Pricing
Complex decision,formal, team, Suppl devlpm Internal Mktg & Training Psychological Pricing
Interpersnl, Individl, Organizatnl, Envrnl influ Emplyee Edu, Train Reference Prc / Loss Leaders
Decision Types Distr, Dealer Educ Geographical Pricing
StraightRebuy Brand Audits FOB Prc / Uniform Delivered Prc / Zone Prc
Modified Rebuy SERVICES MKT Four Characteristics Basing Point Prc / Freight-Absorption Prc
NewTask Intangible, Inseperable, Variable, Perishable Dynamic Pricing
Systems Selling SERVICES STRG International Pricing
Process The Service Profit Chain PRICE CHANGES
Problem Recog, Need Descr, Prod Specificati Internal Mkt Price Changes
Proposal Solicitation , Supplier Selection Interactive Mkt Price Cuts / Price Inreases
OrderRoutineSpecificat, Performance Review External Mkt Buyer Reactions / Competitor Reactions
Tools&Methods Service Differentiation Responding the Price Changes
Product Value Analysis A cost optimization tool Offer, Delivery, Image PUBLIC POLICY & PRICING
Vendor-Managed Inventory Service Quality Pricing within Channel Levels
E-ProcurementAuctions,BuyingSites,Extranet etc CustDrivn,ServQual,Retent,ServRecov,Empow Price Fixing / Predatory Pricing
INSTITUTIONALSchool,Hosp,Prison (Captive,LowBudg patron) Service Productivity Pricing Across Channel Levels
GOVERNMENT Bids,Contract,Bureaucracy,Favoritism, Work with better people Increase Quantity Retail Price Mainten / Unfair Prc Discriminat
No need for marketing orientation Use Industrialization Use Technology Deceptive Prc / Scanner Fraud / Prc Confusi
How Channel Members Add Value Advertising Sales Promotion Personal Selling MANAGING THE SALES FORCE
Info Gathering Negotiation Direct MKTG Public Relations Sales Force Structure
Contact Financing MarcomShift Broadcasting vs Narrowcasting Prod Sls Force
Matching Risk Taking Mass Markets vs Fagmented, Micro Markets Cust Sls Force
Number of Channel Levels Shift from Traditional Mass Media to New Complex Sls Force
Indirect Marketing Channel Digital and Narrow Targeted Media Sales Force Size # of calls of an average salesman etc
Direct Marketing Channel Need for IMC Rich media choice and clutter necessiates IMC Outside vs Inside Sales Force
Flows Physical Flow, Ownership Flow, Info Flow, MARCOM PROCESS Team Selling
Promo Flow, Payment Flow Sender, Encoding, Message+Medium, Decoding RECRUITING SALES PEOPLE
CHANNEL BEHAVIOR Response, Feedback, Noise Characterist Intrinsic Motivation, Disciplined work,
Channel Conflict MARCOM STEPS Ability to close a deal, Ability to build Relationships
Horizontal Conflict, Vertical Conflict Target Training the Salespeople
CHANNEL ORGANIZATION Objective Buyer Readiness Stage Supervising&Motivating the Salespeople
Conventional Mktg Syst Lack of power&ownership=damage Awareness->Knowledege->Liking->Preference Evaluating Sales People
Vertical Mktg Systems Has leadership and cooperation ->Conviction->Purchase PERSONAL SELLING PROCESS
Corporate VMS Single ownership Desiginig the Msg Prospecting&Qualifying Referrals,directories,UnplannedVisit
Contractual VMS Member sign contrct (Franchise) Msg Content Rational,Emotional,Moral Appeals Preapproach Research,Stratgy,Objectvs,Apprch Methd,Timing
Administered VMS Leadership owned by size &power Msg Structure Let buyers draw conclusion Approach Appearance,Greeting,Opening,Remarks,Listening
Horizontal Mktg Systems Firms at one chn level cooperate Strong argument first or last? Presentation Customer Solutions->ValueStory->AskRightQuesti
(Mcdonalds&Shell, Migros&Divan) OneSide or Two-side arguments? HandlingObj SeekHiddenObjections->TurntoReasonforBuying
MultiChannel Distribution Systems Hybrid Mktg Channel Msg Format AttentionBy ContrastNoveltyColorSound Closing GetAround,RightMoment,AsktoOrder,OfferPromo
CHANNEL DESIGN DECISIONS Choose Media FollowUp EnsureSatifaction, ReduceDissonance
Types of Intermediaries Direc&indirect channels,Resellers Personal Comm Channels Relationship Relship building to be the context of sellin process
Number of IntermediariesDisintermediation trens WOM,Buzz,OpinionLeader SALES PROMO
Intensive Distribution Nonpersonal Comm Chnls Aim Ads offer reasonToBuy,Promo offer reasonToBuy NOW
Exclusive Distribution Print, Broadcast,Display,Online,Atmospher,Event Growing Sales Pressure,Less Differntiation,Ad inefficiency
Selective Distribution Select Messge Source Celebs,CartoonCharacters (Credibilit Types Consumer Promo
Evaluation EconomicCriter, Control Criter,Adaptive Criter SETTING PROMO BUDGET Samples, Coupons, Refunds, Rebates, PricePacks
CHANNEL MANAGEMENT DECISIONS Affordable Method ,Percentage of Sales Method Premiums,POP,Esantiyon,Contests,EventMkt
PRM Partner Relationship Management CompetitiveParity Method, Objective&Task Meth Trade Promo
SCM Supply Chain Management Promo Mix Strategies Contest,Premium,Discount, Allowance,FreeGoods
PUBLIC POLICY&DISTRIBUTION Push Strategy Intensive marketing to the consumer PushMoney, Specialty(Esantiyon)
Exclusive dealing, Exclusive Territorial Agree Pull Strategy Push the prod thru Mktg channels Business Promo
Full line forcing, Tying Agreements Integrate, Plan and CoordinateThePromo Mix Same Tools + Conventions and TradeShows
MKTG LOGISTICS & SUPPLY CHAIN MANAGEMENT SCM Budget,Teamup,CompatibleComm,Measurem,CentralCoordination Sales Force Promo
Outbound, Inbound, Reverse distributions Social&Ethic Bait&Switch Ads, 3day cooling-off rule,FalseClaims
Aim is max customer service & min dist cost Pull Strategy Push the prod thru Mktg channels 17-DIRECT&ONLINE MKTG
Functions Warehousing Storage or Distribution Integrate, Plan and CoordinateThePromo Mix MODEL Mass Mktg vs Narrowly Targeted Mktg Trend
Inventory ManagemJIT Budget,Teamup,CompatibleComm,Measurem,CentralCoordination Old Catalog, Direct Mail, TeleMarketing
Transportation Intermodal transportation Social&Ethic Bait&Switch Ads, 3day cooling-off rule,FalseClaims New Web, Internet
Logistics Info Mngmt EDI,VMI VendorManagedInventory BENEFITS Buyer VastChoice, 7/24, info,control,cheap,interactive
Integrated Logistics Mngmt ILM 3PL 3rdPrtyLogProv 15 - ADVERTISING & PR Seller Database,OneToOne, LowCost,Flexible,Global
13 - RETAILING&WHOLES Advertising Decisions DirectMail
RETAILING Shopper Marketing, Non-Store Retailing Possible Ad Objectives Catalogue
TYPES Service,Product Lines, Price, Organization Informative Ad, Persuasive Ad, Reminder Ad Telephone
Amount of Service Advertising Budget Factors Kiosk
Self Service, Limited Service, Full Service PLC stage DirResTV
Product Line Market Share Goals New Digital
Specialty, Department, Supermarkets,Conveni Number of Competitors MobilePh,Podcast,Vodcast,InteractTV
Superstores, Category Killers, Service Retailer Degree of Clutter ONLINE MARKETING
Price Differentiantion Level Types Brick&Mortar,ClickOnly,Click&Mortar(+successful)
Discounters Advertising Strategy DomainB2C Consumer holds the control
Off-Price Creating the Message B2B Cisco takes 80% of order online
(Independ,FactoryOutlet,WarehouseClubs) Breaking Thru the Clutter C2C Auction sites, e-bay, blogs
Organizational Message Strategy C2B Consumer contact businesse for offers&complaints
Corporate Chains, Voluntary Chains,Franchise Statement, Concept, Appeal Setting Up Online Presence
Retailer Cooperatives, MerchadisingConglomer Message Execution Creating aWeb Site
Retail Mktg Decisions Execution Style Corporate or Brand web site (No sales)
Segmentation,Targeting,Differentiation,Position SliceOfLife, LifeStyle, Fantasy Marketing web site (Selling or other mktg outcom)
Prod Assortment,ServiceMix,Atmosphere Mood,Imag,Musical,Personalit Effectiv WebSite Communictn,Connectn,Commerce
Price EDLP. High-Low Pricing Tone positive / humor Context,Content,Community,Customization
Place Old Concept : CentralBusinessDistricts Words Placing Ads & Promos
Latent Concept: Shopping Centers Format(Illustration, Headline, Copy) Creating&Participating Online Social Networks
Regional,Community,Neighborhood Malls Consumer Generated Messages Using E-mail Spam,Permission, Opt-in
New Concept: Power Centers, Lifestyle Centers Selecting the Media The Promise&Challenges of Online Marketing
Hybrid Power-Lifestyle Centers Deciding on Reach, Frequency, Impact
Future New Forms and Shortening Life-Cyles Choosing Among Media
WHEEL OF RETAILING Selecting Media Vehicles
Begin LowMrg, LowPrc,LowStatus Deciding on Media Timing
Challenge established to be fat with +Mrg +Cost Evaluation Accountability & ROI
Growth of Non-Store Retailing Communication Effects to be measured
Retail Convergence, Rise of MegaRetailers Sales&Profit Effects to be measured
Growing Importance of Technology International Advertising Decisions
Global Expansion of Major Retailers Think Global Act Local
WHOLESALING Global Ad Strategies, Local programs
Selling&Promoting Financing PR Dept Funtions
Buying&Assortment Build Risk Bearing press relations, prod publicity, public affairs
Bulk Breaking Market Information lobbying, investor relations,relations with NGO
Warehousing Mngmt Service&Advice Role of PR Strong impact on public awareness at low cost
Transportion Conflict between Pr practitioners & Mktg Manag
Types Merchant Wholesalers, Agents, Brokers PR Tools News, Speech, Event, Written or Multimed Mtrl
Manufacturers own sales branches and offices PublicServ Activity, Corporate Identity, Web2
Decisions Seg+Targ+Diff+Pos + 4Ps Buzz mktg, Social Networking
COMPETITOR ANALYSIS Global firms gain R&D, production, mktg and financial advantages SUSTAINABLE MKTG NEEDS OF BUSINESS
Identifying Competitors Competitor Myopia GLOBAL MARKETING ENVIRONMENT Now Future
Assessing Competitors Objectives,Strategies Intl TradeSys Tariffs,Quota,ExchControl, Nontariff Trade Barriers CONSUMER Now Marketing Concept Strategic Planning Conc
Strength&Weaknesses, Estimating Reactions WTO & GATT NEEDS Futur Societal Marketing Sustainabl Mktg Concep
Selecting Competitors Regional Free Trade Zones
Strong or Weak competitors to attack EU, NAFTA,CAFTA,FTAA SOCIAL CRITICISM OF MKTG
Customer Value Analysis (StrategicSweetSpot) Economic Environment Mktg's Impact on Consumers
(CompetitvOffer,CustomerNeed,Company'sAbility) Industrial Structure High Prices
Close or Distant competitors Subsistence Economy High Cost of Distribution
Good or Bad competitors Raw Material Exp Economies High Advertising&Promotion Cost
Finding Uncontested Marketplaces (BlueOcean) Industrializing Economies Excessive Markups
COMPETITIVE STRATEGIES Industrialized Economies Deceptive Practices
Approaches to Marketing Strategy Income Distribution Pricing
Entrepreneurial Flexible, from the gut, owner devlpd Employement Levels Promotion
Formulated Strict rules, Bureaucrat, large compns Political-Legal Enviroment Packaging
Intrapreneurial Turn from breaucratic to flexible Attitude toward intnl buying High Pressure Selling
Porter's Four Positioning Strategies Bureaucracy Shoddy, Harmfull or Unsafe Products
Cost Leadership Political Stability Planned Obsolescence
Differentiation Monetary Regulations and Stability Poor Service to Disadvantaged Consumers
Focus Countertrade Barter, Compensation, Counterpurch Mktg's Impact on Society as a Whole
Middle of the Roaders Cultural Environment False Wants and too much Materialism
MichaelTreacy & FredWiersema's "3 Value Disciplns" The Impact of Culture on Mktg Strategy Too Few Social Goods More car needs more road
Operational Excellence Productivity,Efficiency The Impact of Mktg Strategy on Culture Cultural Pollution
Customer Intimacy Mktg Relationship,Expr DECIDING WHETHER TO GO GLOBAL Not every firm needs Mktg's Impact on Other Businesses
Leader Challenger Follower Nicher Demographics Sociocultural 1st movement: Upton Sinclair's on meat & drug prc
ExpandMkt Customer Geographics Political & Legal 2nd movement: consumer prices in Great Depress
FullFrontAtt CloseFollow Market Economics 3rd movement 1960 Ralph Nader (Activist)
Prot Share Quality MODE OF ENTRY Environmentalism Envitonmental Sustainability Portfolio
IndirecAttack DistantFollw Price Exporting JointVent DirectInvest Today:Greening Tomrrw:BeyondGreen
ExpandShr Service Indirect Licensing Assembly Facility Intern Pollution Prevention New Clean Technology
Leader Direct Contratc Manuf Manufacturing Facil Extern Product Stewardship Sustainability Vision
Expanding the Total Market Mngmt Contract
New Users or untapped market segments Joint Ownership Public Actions to Regulate Marketing
More usage Standardized vs Adapted Sustainable Marketing Principles
Protecting the Market Share Product&Communication PRODUCT Consumer Oriented Mktg Mktg in Cons point of View
Prevent or fix weaknesses Don't Chang Adapt New Customer Value Mktg Customer Value Building
Maintain strong relationships with customers Straight Product Innovative Mktg seek Real Product & mktg improvement
Don't Chang
"Best defense is good offense"->Continous Innov COMMUNICATION Extension Adaptation Product Sense of Mission Mktg social terms not prod terms
Expanding Market Share Communic Dual Invention Social Marketing
Profitability increases with increasing market share Adaptation Adaptation IMMEDIATE SATISFACTION
Challenger LOW HIGH
Choice between Attacking the Leader or Followers Price Standard vs differentiated LONG TERM HIGH Salutary Products Desirable Products
Second Mover Advantage Price escalation, parallel trade Cons Benefit LOW Deficient Products Pleasing Products
FullFrontalAttact High risk, high return Distribution Channels
Indirect Attack Attacking the weaknesses of compettr Channels Between Nations
Follower SecondMoverAdvantg, Copying is easier and quick Channels Within Nation
Follower mostly become the target of challenger Organization
Should have distinct Compt Advantg to compete Export Dept
Nicher Targets subsegment with high profitability Intnl Divisions GeographicOrg vs World Prod Groups
Customer, market,quality,price or service nicher Global Organization
Multiple niching is required to reduce risk of collaps