Ch.2 Marketing Essentials McGraw Hill Irwin

Marketing Management Process
1. planning marketing activities
2.directiong the implementation of the plans
3. controlling these plans.
planning, implementation, and control are the basic jobs of all managers
Strategic (management) planning
the managerial process of developing and maintatining a match between an organizations resources and its market opportunites. This is a top management job and includes planning not only for marketing but for production, finance, hr, and other areas.
Marketing Strategy
Specifies a target market and a related marketing mix.
Target Market “rifle approach”
A fairly homogeneous group of customers to whom a company wishes to appeal
Marketing Mix
The controllable variables the company puts together to satisfy this target group.
Mass Marketing “shotgun approach”
The ypical production oriented approach- vagueley aims at everyone with the same marketing mix. It assumes everyone is the same and it considers everyone to be a potential customer.
Channel of Distribution
A series of firms that participate in the flow of products from producer to final user or consumer
Personal Selling
involves direct spoken communication between sellers and potential customers. Personal selling may happen face to face over the telephone, etc.
Customer Service
A personal communication between a seller and a customer who wantes the seller to resolve a problem with a purchase- the key to building repeat business.
Mass Selling
Communicating with with large numbers of customers at the same time. Main form is advertising
Advertising
any paid form of non personal presentation of ideas, goods, or services by an identified sponsor.
Publicity
any unpaid form of nonpersonal presentation of ideas, goods, or services, is another impt. form of mass selling.
Sales Promotion
Refers to promotion activites other than advertising, publicity, and personal selling-that stimulate interest, trial, or purchase by final customers or others in the channel.
Marketing Plan
A written statement of a marketing strategy and time-related details.
1. what marketing mix will be offered, to whom, and for how long.
2. what company resources will be needed at what rate
3. what results are expected
-plan should use some control features that alertthem if something is going wrong
Implementation
putting marketing plans into operation
Operational Decisions
short run decisions to help implement strategies, may be needed.
Marketing Program
blends all of the firm’s marketing plans into one “big” plan.
Customer Equity
The expected earnings stream of a firm’s current and prospective customers over some period of time.
Breakthrough Opportunites
Opportunities that help innovators develop hard to copy marketing strategies that will be very profitable for a long time.
Competitive Advantage
A firm’s marketing mix that the target sees as better than a competitior’s marketing mix
Differentiation
marketing mix is distinct from and better than what is available from a competitor
SWOT Analysis
Identifies and lists thefirms strenghts weaknesses opportunites and threats
Market Penetration
Means trying to increase sales of a firm’s present products in its present markets.
Market Development
Means trying to increase sales by selling present products in new markets.
Product Development
Means offering new or improved products for present markets.
Diversification
Means moving into totally different lines of business- perhaps entirely unfamiliar products, markets or even levels in the production-marketing system.