chapter2-2

PARTNERING WITH OTHER COMPANY DEPARTMENTS
each department can be thought as a link in the company’s INTERNAL VALUE CHAIN

each department carries out value creating activities to design, product, market, deliver, and support the firm;s products

the firm;s success depends not only on how well each department performs its work bt also on how well the various departments coordinate their activities

ideally a company’s different ructions should work in armory to produce value for consumers but in practice interdepartmental relations are full of conflicts and misunderstandings
the marketing department takes the consumer’s point of view but when marketing tries to develop custom satisfaction it can cause other departmes to do a poorer job in their tersm

ex increase purchasing costs, disrupt production schedules, increase inventors, and create budget headaches

thus other dpearmtn may rest the marketing departments’ efforts
yet marketers must find easy to get all departments to “think consumer” and develop a smoothly functional value chain
everyone must do marketing regardless of caution or dpearmtnet and need to understand the role of marking and your role in creating customer value
PARTNERING WITH OTHER IN THE MARKETING SYSTEM
in its quest to create custom value the firm needs to look beyond its own itneral value chain and into the value chanson of its suppliers, distributors, and ultimately its customers

more comapnie today are partnering with other member of the supply chain – suppliers, distributors, and ultimately custom to improve the performance of the customer value delivery network

the competition is between entire vale delivery networks

VALUE DELIVERY NETWORK
the network made up of the company its suppliers, its distributors, and ultimately its customs who partner with each other to improve the performance of the entire system
MARKETING STRATEGY and MARKETING MIX
goal is to create value for customs and budil profitable custom rleatiosnup

next MARKETIGNG STRATEGY – the marketing logic by whciht he company hopes to create this customer value and achieve these profitable relationships -segmentation, targeting, differnetaiton, and positioning

guided by marking strategy the company designs and integrated marketing mix – FOUR Ps – price, produce, place, and promotion

to find the best marketing mix company engages in marketing analysis, planning, implemantion, and control to watch and adapt to the acts and focus int he marketing environment
CONSUMER-DRIVE MARKETING STRATEGY
to succeed in today;s competitive market place companies must be customer centered

they must win customers from competitors and the keep and grow them by delivering greater value

before satisfy customs – need to know there wants and needs – careful customer analysis

market segmentation, market targeting, differentiation, and positioning

MARKET SEGMENTATION
the marketers must determine which segments offer the best opportunities

consumers can be groped and served in various ways based on geographic, demographic, psychographics and behavioral factors

definition: dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who mgith require sperate products or marketing programs

every market has segments but not all ways of segmenting a market are equally useful

market segment
consumers who respond in a smimilar way to a given set of marketing efforts
comapnie are wise to focus their efforts on meeting the distinct needs of individual segments
MARKET TARGETING
after a company has defied its market segments it can enter one of many of these segments

definition: the process of evaluating each market segment’s attractiveness and selecting one or more to enter

a company should target segments in which it can profitable generate the greatest customer value and sustain it over time

a company with limited resources might decide to serve only one or a few special segments or market niches – such niches specialize in serving customer segments that major competitors overlook or ignore

alternatively a caimpny might choose to serve several related segments -perhaps those with different kinds of customs but wight he same basic wants

most companies enter a new market by serving a single segment; if this prices successful they add more segments

MARKETING DIFFERNTIATION AND POSITIONING
after company decides on which market segment to enter must determine how to differentiate its market offering for each targeted segment and what positions it wants to occupy in those segments
product position
the place it occupies relative to competitors products in consumer’s minds

markets want to develop a unique market position of their products

poistioning
arrange for a product to occupy a clear, disunite, and desirable place relative to competing products in the minds of target consumers

plan positions that disntignui their product form comeptive brands and give them the greatest advtangage in their target markets

in positioning its brand, a company first identifies possible customer value differences that provide competitive advantages on which to build the position

effective positioning begins with differenting the company;s market offering so that it gives consumer more value

differentiation
actually differntiang the market offering to create superior customer value .

th oampny has chosen desired positionin it must take strong steps to deliver and communicate the position to target consumers. the company entire marketing program should support the chosen positioning strategy

DEVELOPING AN INTEGRATED MARKETING MIX
after determining its overall marketing strategy the company is ready to begin planning the details of the marketing mix
marketing mix
the set of tactical marketing tools product, price place and promotion – that the firm blends to product the response it wants in the target market

consist of everything the firm can do to influence the demands for its products

1)product – the goods and service combo that company offers to the target market
2)price – the amount of money customs must pay to obtain the product
3) place – includes company activities that make the product obligable to target consumers
4) Promotion – activities that communicate the mretis of the product and persaut target customers to buy it

an effective marketing program blends each marketing mix into an integrate marketing program designed to achieve the company’s marketing objectives by delivering value to consumers
some critics think that the four Ps may omit or underemphasize certain important activities

service products – banking, airline, and reatinling serves are products too

framework is most helpful in designing integrated marketing programs
valid concern: holds that he four Ps take the seller’s view of the market not the buys seen as consumers as the 4 Cs
4Cs
1) Customer Solution
2) Custoemr Cost
3) Convenience
4) Communication
MANAGING THE MAREKTING EFFORT
in addition to vein good at the marking in market mgmt, companies also need to pay attention to the MANAGEMENT

managing the market process requires the four marking mgmt function
1) ansylisis
2)planning,
3)implemenation – plan into activities
4) control

control consists of measuring and evaluating the results of marketing activities and akin corrective action where needed,

marketing analysis
complete analysis of the company’s situation

conduct SWOT ANALYSIS

the company should analyze its markets and marketing enveironemtn to find attractive opportunities and identify environmental threats. it should anaylze company strenghs and weaknesses as well as current and possible marketing at ions to determine which opportunities it can best purse

the goals is to match the comapnys strengths to attractive opportunities in the environment while simultaneously eliminating or overcoming the weaknesses and minimizing threat

marketing analysis provides inputs to each of the other market mgmt functions

SWOT ANALYSIS
strenghts
weaknesses
opporutntieis
threats
MARKET PLANNING
through strategic planning the company deciwas what it wants to dow ith each business unit

market planning involves choosing marketing strategies that will help the coamph attain its overall strategic objectives

a detailed marketing plan is needed for each business,product or brand
1) begins with executive summary that quickly reviews major assessments, goals, and 2) The main section of the plan presnes a detailed SOWT analysis
3) the plan next states major objectives for the brand and the outlines the specifics of a marketing strategy for achieving them

a marketing strategy consists of specific strategies for target markets, positioning, the marketing mix, and marketing expenditure levels. it outlines how the company intends to create valuee for target customs in order to cature value in return. additional section of the marking plan lay out an action program for implementing the marketing strategy along with the details of a supporting MARKETING BUDGET. The last section outlines the cntorl that will be used to monitor progress, measure return on marketing investment and take corrective action

adresses the what and why of marketing activities

MARKETING IMPLEMENTATION
a brilliant marketing strategy counts for little if the company fails to implement it properly

definition: the process that turns marketing plans into marketing actions to accomplish strtagie marking objectives

adresses the who where when and how

equally as important to strategic planning and can give companies competiivves advantages through effective implementation

implemtnation is difficult its i often easier to think up good marketing strategies than it is carry them out

in an increasingly connected world, people at all elves of the marking system must work together to implement marking strategies and plans

MARKETING DEPARTMENT ORGANIZATION
the company must design a marking organization that can carry out marketing strategies and plans

in large company a market department emerges to plan and carry out marketing activities

this department contains many specialist-product and market managers, sales manages and sales people, market researchers, and advertising experts, among other -CHIEF MARKETING OFFICER (CMO)- heads up the company’s entire marketing operations on the company’s top mgmt team

the CMO puts marketing on equal footing with other C level executives
most common form of marketing organization is the FUNCTIONAL ORGANIZATION
differnet markeign actives are headed by a functional specialist – a sales manager, and advertising manger, a marketing research manager or a new product managers
a company that sells across the country or internationally ofent use a GEOGRPAHIC ORGANIZATION
it sales and marking people are assigned to specific countries, regious, and districts.. allow sales people to settle into a territory, get to know their customs, and work within a minumu of travel time and costs
companies with many differs products or brands often create a PRODUCT MGMT ORGNAIZATION
a product manger develops and implements a complete strategy and marking program for a specific product or brand
for companies that sell one product line to many diffenrt types of markets and customers who have different needs and preferences use A MARKET OR CUSTOERM MGMT ORGANIZATION
similar to product mgmt organization. market manager are responsible for developing marketing strategies and plans for their specific markets or customers . main advantage is that company is organized around the needs of specific customer segments

many companies develop special organization to manage their relationships with large customers

for ex. P&G create large teams or even whole division to serve large custom such as Walmart Targget Safeway etc…

Large companies that product many different products flowing into many differ met geographic and custoemrmarkets usually employ some COMBINATION of the functional, geographic, product, and market organization forms
marketing organziation has become increasingly important issue

more and more companies are shifting htier brand mgmt focus toward custom mgmt – moving away form managing only product or brand profitability and toward managing custom profitability and custom equity – managing portfolios of customs and customer brand experiences and relationships

MARKETING CONTROL
because many surprises occur during the implementation of marketing plans, marketers must practice constant marketing control

definition: ovulating the results of marking strategies and plan and taking corrective action to ensure that the objectives are attained

4 steps
1)mgmt first sets specific marking goals
2) measures its performance in the marketplace and evaluates the causes of any differences btw expected and actual performance
3) mgmt takes corrective action to close the gaps btw goals and performance

this may require chaing the action programs or even changing the goals

OPERATING CONTROL
invovles checking ongoing performance against the annual plan and taking corrective action when necessary. purpose is to ensure that the company achieves the sales, profits, and other goals set out in its annual plan

also involves determining the profitability of different products, terirotirs, markets and channels,

STRATEGIC CONTROL invovles looking at whether the company’s basic strategies come outdated and each company should periodically reassess its overall approach h the marketplace

MEASURING AND MANAGING RETURN ON MRKETING INVESTMENT
marketing managers must ensure tha their marketing dollars are being well spent.

in the past they belied that marketing produces intangliel creative outcomes who do not lead themselves readily to measure of producitivy or return

but in dot as more constrained economy that is changing

marketing’s days as a soft science are officially over. in its place, the concept of MARKETING PERFORMANCE- the practice o measuring, learning from, and improving upon marking strategies and tactics over time is taking hold

one important marketing performance measure is REUTN ON MARKETING INVESTMENT aka MARKETING ROI
the net rerun from a marketing investment divided by the cost of the marketing investment

it measure the profits generated by investments in marketing activities

can be difficult to measure
in measuring financila R and I they are both uniformly measure in dollars., however there is no consistent definition of marketing ROI
ex. returns on advertising and brand building impact are easily put into dollar returns

the major problem is figuring out what specific measures to use and obtaining good data on these measures

a company can asses marketing ROI in terms of standard marketing performance measures such as

1) brand awarness
2) sales
3) market share

many companies are assembling such measures into MARKETING DASHBOARDS – meaningful sets of marketing performance measures in single display use to monitor strategic marketing performance
– it gives marketers the detailed measures they need to assess and adjust their marketing strategies
ex. tracks brand equity, trends, share of voice, market share, online settlement, and marketing ROI in key market world wide and also for competing brands

increasingly, beyond standard performance measures, marketers are suing CUSTOMER-CENTERED MEASURES of marketing such as

1) customer acquisition
2) customer retnetion
3) custoerm lifetiem value
4) custoerm eqaity

these measures capture not only current marketing perofmrnace but also future performance resulting form strong custom relationships

views produce returns in the form of more profitable customer relationship
marketign investments result in improved custom vlaue nd satisfaction and in which turn increase customer attraction and retention _. increase custom equity -> determines return on marketing investment
ROI concept is here to stay