MGM Marketing

Marketing
The process of determining customer needs and wants and then developing goods and services that meet or exceed these expectations
Green Marketing
Marketing efforts to produce, promote, and reclaim environmentally sensitive products
The Evolution of Marketing
1. The Production Era
2. The Sales Era
3. The Marketing Era
4. The Customer Relationship Era
The Production Era
Produce as much as possible but given the limited production capabilities and the vast demand for products in those days, such production oriented was both logical and profitable as demand > supply
Marketing was for distribution and storage
The Sales Era
Emphasis on selling and advertising (mass production techniques made production capacity > immediate market demand) in effort to persuade consumers to buy existing products but few offered service after the same
The Marketing Concept Era
Organizations recognized need to be responsive to consumers if they wanted to get their business, and philosophy called marketing concept emerged which included Customer Orientation, Service Orientation and Profit Orientation
Customer Orientation
Find what consumers want and provide it for them
Services Orientation
Ensure that everyone in organization has same objectives: customer satisfaction
Profit Orientation
Focus on this g/s that will earn the most profit and enable the organization to survive and expand to serve more consumer wants/needs
The Customer Relationship Era -Customer Relationship Management
The process of learning as much as possible about customers and doing everything you can to satisfy them- or even exceed their expectation – with g/s over time
The Marketing Mix
The ingredients that go into a marketing program: products, pride, place and promotion
Managing and controlling marketing process involves
1. Designing a Want Satisfying Product
2. Setting price for the product
3. Putting the product in a place where people will buy it
4. Promoting a product
Product
Any physical g/s idea that satisfies a want or need
Test Marketing
The process of testing products among potential users
Brand Name
A word, device(design, shape, sound or colour) or combination of these used to distinguish a seller’s g/s from those of competitors
Price
The money or other consideration (including g/s) exchanged for the ownership or use a g/s and depends on : prices of competitors, cost involved in producing,distributing, and promoting the product
Promotion
All the techniques sellers use to motivate customers to buy products
Marketing Research
The analysis of markers to determine opportunities and challenges, find the information needed to make good decisions
The marketing research process
1. Defining the questions and determining the present situation
2. Collecting Data
3. Analyzing the research data
4. Choosing the best solution and implementing it
Secondary Data
Information that has already been complied by others and published in journals and books or made available online
The marketing environment
1. Global Factor
2. Technological Factor
3. Sociocultural Factors
4. Competitive Factors
5. Economics Factors
Legal and Regulatory Factors
Laws to protect consumers and businesses and businesses must be aware of how these may impact their practices
The consumer market
All in individual/households that want g/s for personal consumption or use and have resources to buy them
The Business-to-Business (B2B) market
All individual and organization that want g/s to use in producing other g/s or to sell,rent, or supply goods to others
Market Segmentation
The process of dividing the total market into groups whose members have similar characteristics
Target Marketing
Marketing directed toward groups(market segments) an organization decides it can serve profitably
Geographic Segmentation
Dividing the market by geographic area
Demographic Segmentation
Dividing the market by age, income and education level (also includes religion, ethnic origin, and profession)
Psychographic Segmentation
Dividing the market according to personality or lifestyle
Behavioral Segementation
Dividing the market based on behaviour with or toward a product:
Niche Marketing
The process of finding small but profitable market segments and designing or finding products for them (Vita magazine relevant to French Canada women in their 40s)
One to One
Developing a unique mix of g/s for each individual customer (travel agencies and Dell)
Mass Marketing
Developing products that promotions to please larger groups of people and involves little segmentation while trying to sell products to as many people as possible
Relationship Marketing
Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements; leading away from mass production and toward custom made g/s
80/20
80 percent of your business comes from 20% of your customers
Operation
A function or system that transforms input into outputs of greater value (focus on productivity, competitiveness and quality)
Operation Management
The effective design,development and management of the processes, procedures and practices embedded within an organization’s business system for the purpose of achieving its strategic intent
Operation themes
Manufacturing vs. service operatins
Productivity- efficiency, resources allocation
Quality-effectiveness, measurement
Competitiveness-strategy,flexibility,international
Cost-controls,investment decisions
Relationships-employees,customers,suppliers
Process Management
The design and development of the work flow and connectivity of the transformation requirements needed to ensure that organization’s g/s are effectively produced and delivered to marketplace
Supply Chain Management
The management of the inter-dependencies among suppliers, manufactures and distributors; seek to develop terms/conditions that will enable all parties to efficiently/effectively meet obligation to one another due to their business relationships
Product/service Management
Variety of activities that commence with the design and development of potential new products in R&D and extend to the post purchase of g/s now n the hands of customers
Value Maximization
Maximizing the benefits (price/quality comparison) that individual or set of customers will realize as a result of using g/s
Value Chain Analysis: Primary Activities
Specific activities through which development/transformation of g/s
Includes:
Inbound Logistic, Operations,Outbound Logistics,Marking and sales,customer service
Primary Activities-Inbound logistic
Management of supplier relationships relating to those parts/components/finished products that are brought into organization in order to produce finished products for delivery to marketplace
Primary Activities-Operations
Manufacturing and/or product change processes set up to ensure that the final product organization
is manufacturing/handling is ready for market
Primary Activities-Outbound Logistic
Getting the finished product to customers via distribution channel that is accessible, convenient, and able to minimize stockouts and other sales impediment factors
Primary Activities-Marketing and sales
Those activities that create profile and awareness for organization’s g/s or brand(s) and the benefits derived from the acquisition and use of such g/s
Primary Activities-Customer Service
Support provided to customers before, during, and following the purchase process
Value Chain Analysis- Support Activities
Activities within organization that are not directly associated with actual processes that the organization uses to produce g/s but that are an integral part of the support structure the primary activities rely on to successfully execute strategy
Operations cycle
Alignment of the operational tasks within an organization by its management team in order to meet the strategic outcomes defined in organization’s business strategy
Process Standardization
Design and utilization of common platforms and tasks sequencing to product/develop variety of g/s
Process Simplification
Design and utilization of minimum number of tasks when developing g/s
Process Management 4 cores
1. Process design,layout and execution
2. Materials Management
3.Facility Design and Layout
4. Capital asset evaluation and acquisition
Process design,layout and execution
Process Design, Layout, and Execution-‐Assessment and implementation of tasks necessary to get required work
accomplished and how such tasks will be grouped and sequences
to ensure that most efficient/effective processes are utilized in product of g/s
PERT Chat
Scheduling methodology that focuses on task sequencing and identification of critical path of steps that will most greatly impact ability to complete project, and length of time needed for completion
Gannt Chart
Methodology used to schedule the steps associated with project and time required to complete each step
Materials Management
Management of inputs required in order to develop g/s that organization is intent on delivering to marketplace
Facility design and layout
Infrastructure layout and related facility components that will be required to house and support the process and materials used by the organization
Facility design and layout -Capacity
Maximum amount of product that can be produced or services delivered, given facility, equipment and process constraints
Capital asset evaluation and acquisition
Assessment by operations management team of the state of current capital assets and a determination as to their applicability to meeting the needs of the organization
Supply Chain Management Responsibilities
1. Supply Chain Planning
2. Supply Chain Execution
3. Supply Chain Performance Evaluation
Supply Chain Planning
Development of supply chain structure and accumulation of necessary information to make effective supply chain decision
Supply Chain Execution
Execution of specific tasks necessary to ensure that key performance results are achieved
Supply Chain Performance Evaluation
Critical outcomes that supply chain must achieve in support of organization’s overall operating performance; 2 outcomes:
Maximum utilization of capital asset base and minimum of time involved within the case operating cycle
Cash Operating Cycle
Amount of time it takes for organization to recover the cash it has paid out for development, production and distribution of products
Product/service Management 3 Core Decision areas
1. Existing products/services changes
2. New product opportunities
3. Long reach opportunities
ISO (International Organization for Standardization)
Worlds’s largest developer and publisher of international standards that focuses on making manufacturing of g/s safer, more efficient and more socially responsible
Six sigma
Focuses on philosophy of total improvement and seekers to improve/develop such processes and implement necessary controls for maintaining required quality levels
TQM (Total Quality Management)
Broad based approach to managing quality within the organization which seeks to assimilate concept of quality improvement across entire organization and challenges organization to be customer focuses and to strive for total employee involvement to ensure that quality is fully integrated as core component into organization’s strategy, processes and communication messages
Financial Management
The job of managing firm’s resources so it can meet its goals/objectives; firm has little change for survival without carefully calculated financial plan
Short Term Forecast
Forecast that predicts revenues, costs, and expenses for a period of one year or less
Cash Flow Forecast
Forecast that predicts the cash inflows and outflows in future periods, usually months or quarters
Long Term Forecast
Forecast that predicts revenues, costs, and expenses for a period longer than one year, and sometimes as far as five or ten years into future
Operating (Master) Budget
The budget that ties together all of a firm’s other budgets; it is the projection of dollar allocations to various costs and expenses needed to run/operate business, given projected revenues
Capital Budget
A budget that highlights a firm’s spending plans for major asset purchases that often require large sums of money
Cash Budget
A budget that estimates a firm’s projected cash inflows and outflows that the firm can use to plan for any cash shortages/surpluses
Financial Control
A process in which a firm periodically compares its actual revenues, costs, and expenses with its projected ones
Financial planning – 3 steps
1. Forecasting both short term and long term financial needs
2. Developing budgets to meet those needs
3. Establishing financial control to see how well the company is doing what it set out to do
4. Compare results
Capital Expenditures
Major investments in either tangible long term assets such as land, buildings, and equipment, or intangible assets such as patents, trademarks, and copyrights
Debt Financing
Funds raised through various forms of borrowing that must be repaid
Equity Financing
Funds raised from operations within the firm or through the sale of ownership in the firm
Trade Credit
The practice of buying g/s now and paying for them later
Promissory Note
A written contract with a promise to pay a supplier a specific sum of money at definite time
Secured Loan
A loan backed by something valuable, such as property
Line of Credit
A given amount of unsecured funds a bank will lend to a business; good for unexpected cash needs
Commercial Finance Companies
Organizations that make short term loans to borrowers who offer tangible assets as collateral
Bond
A corporate certificate indicating that a person has lent money to a firm
Debenture Bonds
Bonds that are unsecured
Advantages to the firm of issuing stoke to the firm
Shareholders never have to repaid. No legal obligation to pay dividends to shareholders, therefore income can be reinvested in the firm for future financing needs. Selling stocks has no risk.
Disadvantages to the firm of issuing stoke to the firm
The direction and control of the firm can be altered by the sale of additional shares of stock. Management’s decisions can be affected by the need to satisfy stockholders. Dividends are paid out of profit after taxes and thus are not tax deductible
Stocks
Shares of ownership in a company
Venture Capital
Money that is invested in new or emerging companies that are perceived as having great profit potential
Dividends
Part of a firm’s profits that may be distributed to shareholders as either cash payments or additional shares of stock