Marketing Management Chapter 1

Value Proposition
Set of benefits they offer to customers to satisfy their needs
5 types of needs
Stated Need (in expensive car)

Real Need (operating cost, not initial price is low)

Unstated Need (expects good service from dealer)

Delight Needs (would like dealer to include GPS)

Secret Needs (appeal to friends view of buyer)

Demands
Wants for specific products backed by ability to pay

Companies measure not only how many people want product but also how many willing & able to buy it

Wants
Needs become wants when directed to specific objects that might satisfy the need

i.e. need food…wants burger and fries with a soda

Needs
Basic human requirement

i.e. air, food, water, shelter

5 key functions of CMO in leading marketing organization
1. Strengthen the brand
2. Measure marketing effectiveness
3. Driving new product development based on consumer needs
4. Gathering meaningful customer insights
5. Utilizing new marketing technology
Marketing Planning Process (5 steps)
1. Analyzing marketing opportunities
2. Selecting Target Markets
3. Designing marketing strategies
4. Developing marketing programs
5. Managing marketing effort
Metamediaries
assist buyer seamlessly through metamarkets although they are disconnected in physical space

i.e. car website buyers pick car site finds lowest price for financing accessories and bargain price

also: wedding, home ownership, parenting/baby care

Metamarket
cluster of complimentary products/services that are closely related in mind of consumer by spread across diverse set of industries

automobile metamarket: car dealers, insurance co., mechanics, parts dealers, magazines, service shops, ads in newspaper, auto sites online

Marketspace
Digital

(amazon.com ebay.com)

Marketplace
Physical

(store you shop in)

Nonprofit and Governmental Markets
i.e. churches, universities, charitable organizations, government agencies

-buyers have limited purchasing power
-lower selling prices affect features and quality seller can build into offering
-purchase w/bids=lowest most favorable

Global Markets
-Which country to enter?
-How to enter?
(exporter, licenser, joint venture partner, contract manufacturer, solo manufacture)
-How to adopt communications for the culture
-How to adopt products/services features
-How to price

Different requirements: buying, negotiating, owning, disposing of property, legal/political system, currency value

Business Markets
-Sales force, price, reputation for reliability and quality

-Sells goods to well-trained well-informed professional buyers, skilled @ evaluating competitive offerings

-Buy goods to make/resell product to others @ profit

-Help to higher revenue or lower costs

Consumer Markets
-Companies selling mass consumer goods and services must establish superior brand image

-Strengths depend on superior product packaging, availability, engaging communications and reliable service

Key Customer Markets
Consumer, Business, Global and Nonprofit
Market
Collection of buyers and sellers who transact over a particular product or product class

i.e. housing market

Unwholesome Demand (8 of 8 Demand States)
Consumers may be attracted to products that have undesirable social consequences
Overfull Demand (7 of 8 Demand States)
More consumers would like to buy the product than can be satisfied
Full Demand (6 of 8 Demand States)
Consumers are adequately buying all products put into marketplace
Irregular Demand (5 of 8 Demand States)
Consumers purchases vary on a seasonal, monthly, weekly, daily or even hourly basis
Declining Demand (4 of 8 Demand States)
Consumers begin to buy the products less frequently or not at all
Nonexistent Demand (1 of 8 Demand States)
Consumer may be unaware/uninterested in the product
Negative Demand (2 of 8 Demand States)
Consumers dislike product and may even pay a price to avoid it
Latent Demand (3 of 8 Demand States)
Consumers may share a strong need that cannot be satisfied by an existing product
Prospect
Party who marketers seek response from
Marketer
Someone who seeks a response (attention, donation, vote, purchase) from another party
Task environment (examples)
The company, suppliers, distributors, dealers and target customers
Marketing Environment
Consists of two environment; task environment and broad environment
Task Environment
actors engaging in producing distributing and promoting the offer
Supplier Group
Material suppliers/Service suppliers

ex: market research agencies, advertising agencies, banking and insurance companies, transportation companies, telecommunication companies

Distributors and Dealers
Agents, brokers, manufacturer representatives and others who facilitate finding/selling to customers
Broad Environment
Demographic, Economic, Physical, Technological, Political-to-Legal and Social-Cultural Environments
Network information technology
digital revolution created an Information Age. Will lead to more accurate levels of production, more targeted communications and more relevant pricing
Globalization
Advances in transportation, shipping and communication have made it easier for companies to market in other countries, and easier for consumers to buy products and services from markets in other countries
Deregulation
Deregulate industry to create greater competition and growth opportunities (US loosened laws restricting financial services, telecommunications, electric utilities to encourage competition)
Privatization
Converting public companies to private ownership and management to increase their efficiency (such as British Airways and British Telecom in the UK)
Heightened competition
intense competition
Industry convergence
Consumer resistance
Retail transformation