Principles of Marketing (Kotler)

Marketing management
is the art and science of choosing target markets and building profitable relationships with them, The art and science of choosing target markets and building profitable relationships with them
Marketing
is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return
Market segmentation
refers to dividing the markets into segments of customers
Target marketing
refers to which segments to go after
Value proposition
Set of benefits or values a company promises to deliver to customers to satisfy their needs
Product Leadership
Using this strategy a company will develop products that are innovative and add value to customers -Apple always focus on innovation, Intel also believe in it,….
Operational Excellence
This literally means that the organization excels in the correct and efficient implementation of all corporate process
-If we look at Toyota -it really focus on No Error -They believe that with no error they can achieve a lower cost, brand loyalty and increase sales of their products; Wal-Mart -Efficient distribution to achieve its low price,…
Customer Intimacy
-Intimate relations with the customer are achieved by supplying customized products -totally focused on individual customer and customer loyalty.
-All companies say that they are focused in the customer, and they should. These company adapt their products to customer needs -Verizon, AT&T
marketing mix
The blending of four marketing elements-product, distribution, price, and promotion, The set of the controllable tactical marketing tools product, price, place, and promotion that the firm blends to produce the response it wants in the target market
customer equity
the total combined customer lifetime values of all of the company’s customers
Markets
the set of actual and potential buyers of a product
Marketing Process
Understand the marketplace and customer needs and wants Design a customer-driven marketing strategy Constructed an integrated marketing program that delivers superior value Build profitable relationships and create customer delight Capture Value from customers to create profits and customer equity
Marketing Management Orientations
production, product, selling, marketing, societal: concepts
Production Concept
Consumers will favor products that are available and affordable
Product Concept
Consumers will favor products that offer the most in quality, performance, and innovative features therefore the organization should devote its energy to making continuous product improvements
Selling Concept
Consumers will not buy enough without a large scale selling and promotion effort
Marketing Concept
Focus on satisfying the needs and wants of target markets
Brand Values
the worth of the brand in terms of customer recognition, image and potential sales volume. (end values and personality characrteristics)
Value Chain
a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products
value delivery network
made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system
strategic planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
mission statement
The organization’s purpose, what it wants to accomplish in the larger environment
market-oriented mission statement
defines the business in terms of satisfying basic customer needs
SMART Objectives
Specific, Measurable, Actionable, Realistic, Timed
BCG Growth-Share Matrix
Portfolio-Planning method that evaluates a company’s strategic business units in terms of its market growth rate and relative market share…. Star, Cash Cow, Dog,
market penetration
a growth strategy increasing sales to current market segments without changing the product
market development
a growth strategy that identifies and develops new market segments for current products
product development
a growth strategy that offers new or modified products to existing market segments
diversification
a growth strategy through starting up or acquiring businesses outside the company’s current products and markets
market segmentation
the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes
market segment
a group of consumers who respond in a similar way to a given set of marketing efforts
market positioning
the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer
market targeting
the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
societal marketing concept
the idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests
customer relationship management
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
customer-perceived value
The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
customer satisfaction
the extent to which a product’s perceived performance matches a buyer’s expectations
consumer generated marketing
marketing messages, ads, and other brand exchanges created by consumers themselves-both invited and uninvited
partner relationship management
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers
share of customer
the portion of the customer’s purchasing that a company gets in its product categories
customer equity
the total combined customer lifetime values of all of the company’s customers
internet
a vast public web of compter networks that connects users of all types all around the world to each other and to an amazingly large information repository
business porfolio
collection of businesses and products that make up th ecompany
portfolio analysis
process by which management evaluates the product and businesses that make up the company
product/market expansion grid
a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
downsizing
reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy
marketing strategy
the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
postitioning
the development of a distinct image for the product or service in the mind of the consumer
differentiation
actually differentiating the market offering to create superior customer value
SWOT analysis
An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T).
marketing control
process f measuring and evaluating the resultd of marketing strategies snd plans taking corrective action to ensure that objectives are achieved
Return on Marketing Investment (ROI)
the net return from a marketing investment divided by the costs of the market investment