MAR3023 Final UF

Organization
A legal entity of people who share a common mission
Organization: Business Firm
Privately owned organization that serves its customers to earn a profit so that it can survive.
Organization: Nonprofit, nongovernmental
Serves its customers but does not have profit as a goal.
Corporate Level
Top management directs overall strategy for the entire organization
Strategic Business Level
Managers set a more specific strategic direction for their businesses to set value-creating opportunities
Functional level
Groups of specialists actually create value for the organization
Core Values
Organization’s fundamental, passionate, and enduring principles that guide its conduct over time
Mission
Statement of an organization’s function in society.
Organizational Culture
Set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization
Business
The clear, broad, underlying industry category or market sector of its offering
Marketing Dashboard
Used to visually display essential information to decide to take an action or further analyze a problem.
Marketing Metric
A measure of the quantitative value or trend of a marketing activity or result. (Tied to quantitative objectives)
Business Portfolio Analysis
Assesses units or products to determine the amount of cash each should receive
Diversification Analysis
Helps managers increase revenues 1)Market penetration 2)Market Development 3)Product development and 4) diversification
Market penetration
Selling more of an existing product to an existing marker
Market Development
Selling an existing product to new markets
Product development
Selling a new product to existing markets
Diversification
Selling new products to new markets
Strategic marketing process
Used to allocate an organization’s marketing resources to reach its target markets. (planning, implementation, evaluation)
Planning phase
1) SWOT Analysis
2)Market segmentation
3)Budget
4) Marketing strategies and tactics
Implementation Phase
Carries out the marketing plan to achieve goals set from planning
(obtaining resources, designing marketing organization to perform research, developing schedules to identify tasks/deadlines, and execution)
Evaluation Phase
Keep the marketing program moving in the direction that was established. Comparing results to goals to a) identify planning gaps and b) take corrective action
1) Gradual decline of economic protectionism by individual countries (fewer tariffs and quotas)
2) Growing economic integration and free trade
3) Global competition among global companies for consumers (promoting global brands)
4) Networked global marketspace
Four Trends that have influences the landscape of global marketing
1) Cultural: values, customs, language
2) Economic: development and infrastructure, income, purchasing power
3) Political-regulatory: create favorable or unfavorable climates for business efforts
Three Environmental forces
Licensing
A company offers the right to a trademark in return for a royalty or fee
Joint Venture
A foreign company and a local firm invest together to create a local business
Direct Investment
A domestic firm actually investing in and owning a foreign subsidiary
Standardization
All elements of the marketing program are the same across countries and cultures
Customization
One or more elements of the marketing program are adapted to meet the needs of consumers in a particular culture.
Marketing Channel
Consists of individuals and firms involved in the process of making a product or service available for use or consumption.
Intermediaries
Make possible the flow of products from manufacturers to buyers by transactional, logistical, and facilitating.
Create utility for consumers!
Transactional function
Buying, selling and risk taking
Logistical function
Gathering, storing and dispensing
Facilitating function
Assists producers in making goods and services more attractive to buyers
Centrally Coordinated Marketing Channels
Designed to achieve channel economics and maximum marketing impact
Corporate vertical marketing system
combines successive stages of production and distribution under a single ownership
Contractual vertical marketing system
Independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone
Administered vertical marketing system
Achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership
1) Environmental
2) Consumer
3) Product
4) Company
What four factors affect a company’s choice of a marketing channel?
Intensive market coverage
Very convenient! Many outlets
EX: Soft drinks and candy
Exclusive market coverage
Only one retailer in a specified geographical area carries the firm’s product
Selective market coverage
A firm selects a few retailers in a specific area to carry its products. MOST COMMON
Vertical Conflict
Between different levels in a channel.
EX: A mftr and a retailer.
Horizontal conflict
Between two or more retailers that handle the same manufacturer’s brands.
EX: Netflix and a movie theater
Logistics Management
the practice of organizing the cost-effective flow of goods from point of origin to point of consumption to satisfy customer requirements
Supply chain
sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers.
MEMBERSHIP
Supply chain management
Integration and organization of information and logistics activities across firms in the chain for the purpose of creating and delivering products and services that provide value.
Describe how a company’s supply chain aligns with its marketing strategy
1) A supply chain must reflect the needs of the customer segment
2) A company must understand what a supply chain is designed to do
3) Supply chain must be consistent with the targeted customer’s needs and the company’s marketing strategy.
Customer service factors
1) Length of time
2) Communication
3) Dependability of inventory
4) Convenience
Logistics cost factors
1) Transportation
2) Materials handling and warehousing
3) Order processing
4) Inventory management
Classifying retail outlets
1) Ownership form
2) Level of service: self, limited, full
3) Type of merchandise line: Depth and breadth
Nonstore retailing
vending, catalogs, home shopping
*vary by the level of involvement of retailer and customer
Retail position: Walmart
broad product line/low value added
Retail position: Ross
narrow product line/low value added
Retail position: Tiffany
narrow product line/high value added
Retail position: Macy’s
broad product line/high value added
Retailing mix actions/variables
Used to manage a retail store and merchandise
pricing, location, communication, merch.
Wheel of retailing
Explains how retail outlets typically enter the market as low-status stores. Over time, stores add products/services, increase price/status. Leave opening for new low-status store.
Retail Life: Early growth
Emergence. Market share rises gradually. Profits low due to starting costs
Retail Life: Accelerated development
Both market share and profit achieve greatest growth rates. Multiple outlets.Competition enters
Establish dominant position for market share
Retail Life: Maturity
Competitors drop out.
Retail Life: Decline
market share and profit fall rapidly.
Interactive marketing
two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information.
Customer Experience
the sum total of the interactions that a customer has with a company’s web site (initial look to purchase)
Web Site design elements
Context, content, community, customization, communication, connection, and commerce
Click-and-mortar
Women who browse retailer web sites but actually buy products at outlets
Hunter-gatherers
Use the internet like a consumer magazine to gather information and compare products and services.
Brand loyalists
Regularly visit their favorite bookmarked web sites and spend the most money online
Time-sensitive materialists
Regard the internet as a convenient tool for buying
Ebivalent newbies
Newcomers to internet, rarely spend money online but seek information
Interactive marketing products
1) information is important for purchase decision, but prepurchase trial is not critical
2) Items for which audio or video demonstration are important
3)Items that can be digitally delivered
4)Unique items
5)Regularly purchased and convenience is important
6)Highly standardized items for which information about price is important
Cross-channel shoppers
online consumer who researches products online and then purchases at a retail store
(Reached through multichannel marketing)
Transactional web sites
Electronic storefronts. Focus principally on converting an online browse into a buyer.
Promotional web sites
Serve to advertise and promote a company’s products and services and provide information on products
Porter’s generic business strategies
Cost leadership
differentiation strategy
Cost focus strategy
differentiation focus strategy
Cost leadership
Reducing expenses to lower product prices while targeting many segments
Differentiation Strategy
Products have significant points of difference to charge a premium price while targeting many markets.
Cost focus strategy
Controlling costs to lower prices while targeting few segments
Differentiation focus strategy
Products have points of difference to reach one or only a few markets
Marketing synergies
horizontally across the row of products offered to a single market
Manufacturing synergies (r&d)
vertically down a column of various market segments for a a given product
Market-product concentration
Focus on single product line and market segment
Market specialization
Providing complete product line for one market segment
Product specialization
Producing one product for all markets
Selective specialization
Uniqueness of combinations
Gantt Chart
Graphical representation of tasks, responsibilities, and deadlines. Identify tasks that must be done sequentially
Line positions
Individuals who have the authority and responsibility to issue orders to people
Staff positions
Individuals who have the authority to advise but not directly order line positions
Product line groupings
Responsible for specific product offerings
Functional groupings
Represent the different departments and business activities within a firm
Geographical groupings
Sales territories are subdivided on a geo basis
Market-based groupings
Utilize specific customer segments
Product manager roles
Interact with people inside and outside the firm
Coordinate the planning, implementation, and evaluation of the marketing plan
Annual and long-term budgets
Input metrics
Number of ideas
Output metrics
Measure of results
Marketing ROI
The application of modern measurement technologies to understand, quantify, and optimize marketing spending.
Improve ROI
Quantifying a goal with a defined output metric and tracking it