[Management Marketing Kotler Pdf 11
Gildo Santiago
Marketing management is the art and science of choosing target markets and building profitable relationships with them. The aim is to find, attract, keep and grow the targeted customers by creating and delivering superior customer value. The target audience can be selected by dividing the market into customer segments (market segmentation) and selecting which segments to go after (target marketing). A company must also decide how to serve the targeted audience, by offering a value proposition. A value proposition is the set of benefits or values a company promises to deliver.
A marketing strategy outlines which customers it will serve and how it will create value. The marketer develops an integrated marketing plan that will deliver value to customers. It contains the marketing mix: the tools used to implement the strategy, which are the four Ps: product, price, place and promotion.
When building relationships, it is important to build the right relationships with the right customers. Customers can be high- or low-profitable and short-term or long-term oriented. When putting these on two axes, a matrix of four terms appears.
Web 1.0 connects people with information, Web 2.0 connected people with people and the upcoming Web 3.0 puts information and people connections together into a more usable Internet experience. Because of globalisation, companies are now globally connected with their customers. Current times also involve more sustainable marketing practices, involving corporate ethics and social responsibility.
Based on this, the management must plan the business portfolio: the collection of businesses and products that make up the company. Portfolio analysis is the process by which management evaluates the products and businesses that make up the company. The first step is identifying the strategic business units (SBU) that are vital to the company. The well-known model of the Boston Consulting Group (BCG) sorts the SBUs into a growth-share matrix, leading to four types of SBUs:
Designing the business portfolio also means looking at future businesses. The product/market expansion grid is a portfolio-planning tool for identifying company growth opportunities through:
Marketing strategy is the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. The company must choose which customers to serve and how to serve them. This process involves four steps:
Market segmentation: dividing a market into distinct groups of buyers who have different, needs, characteristics or behaviour and who might require separate products or marketing programmes. A market segment is a group of consumers who respond in a similar way to a given set of marketing efforts.
The marketing mix is the set of tactical marketing tools: product, price, place and promotion, that the firm blends to produce the response it wants in the target market. Product refers to the combination of goods and service the firm offers. Price is the amount the customer pays to obtain the product. Place refers to the availability of the product. Promotion relates to the activities that communicate the benefits of the product.
Nowadays, marketers need to back up their spending by measurable results. The return on marketing investment (marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment. The marketing ROI measures the profits generated by investments in marketing activities and can be a helpful tool, but is also difficult to measure.
The microenvironment consists of the actors close to the company that affect its ability to serve its customers, such as: the company itself and its subdivisions and suppliers that provide the resources the firm needs to produce its products.
But also of marketing intermediaries, which are firms that help the company to promote, sell and distribute its goods to final buyers. Resellers are distribution channel firms. Physical distribution firms help the company stock goods, while marketing service agencies are marketing research firms. Financial intermediaries include banks and credit companies.
Finally, customers are the most important actors. Consumers markets consist of individuals that buy goods for personal consumption. Business markets buy goods for usage in production processes, while reseller markets buy to resell at a profit. Government markets consist of buyers who use the product for public service, and international markets consist of all these types of markets across the border.
Changes can also be found in the family structure. The traditional western household (husband, wife and children) is no longer typical. People marry later and divorce more. There is an increased number of working women and youngsters tend to stay at home longer. The workforce is also aging, because people need to work beyond the previous retirement age. There are also geographic shifts, such as migration. These movements in population lead to opportunities for marketing niche products and services. There are also migration movements within countries, namely from the rural to urban areas, also called urbanisation.
The economic environment consists of economic factors that affect consumer purchasing power and spending patterns. Countries vary in characteristics, some can be considered industrial economies, while others can be subsistence economies, consuming most of their own output. In between are developing economies that offer marketing opportunities. The BRIC (Brazil, Russia, India, China) countries are a leading group of fast expanding nations.
The natural environment involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. Changes in this environment involve an increase in shortage of raw materials, increased pollution and increased governmental intervention. Environmental sustainability involves developing strategies and practices that create a world economy that the planet can support indefinitely.
The technological environment consists of forces that create new technologies, creating new product and market opportunities. It can provide great opportunities, but also comes with certain dangers.
The political environment consists of laws, government agencies and pressure groups that influence and limit various organisation and individuals in a given society. Current trends in our world today are increasing legislation affecting businesses globally and thus an increase in governmental influence over businesses. There is also an increase in emphasis on ethics and operating socially responsible. Cause-related marketing refers to companies linking themselves to meaningful causes, to improve company image.
Marketing relies on good customer information. Customer insights are fresh understanding of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships. To gain this information, companies must design marketing information systems (MIS), which are people and procedures for assessing information needs, developing the needed information and helping decision makers to use the information to generate and validate actionable customer and market insights. A MIS helps to assess information needs, develop needed information and analyse the right information to form customer insights.
Internal databases are electronic collections of consumer and market information obtained from data sources within the company network. Internal data can be a strong base for a competitive advantage, because of the potential of this information. Competitive marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketing environment. Good marketing intelligence helps gain insights in how consumers think of and connect with the brand.
Marketing research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organisation. The process of marketing research has four steps:
Defining the problem and research objectives. The objective of exploratory research is to gather preliminary information that will help define problems and suggest hypotheses. The objective of descriptive research is to better describe marketing problems, situations or markets. Causal research aims to test hypotheses about cause-and-effect relationships.
Secondary data is information that already exists somewhere, having been collected for another purpose. Secondary data can be accessed by using commercial online databases, which are collections of information available from online commercial sources or accessible via the Internet. Internet search engines can be used to locate secondary data, but the research must verify that the found information is relevant, accurate, current and impartial.
Primary data can also be collected via survey research, which gathers information by asking people questions about their knowledge, attitudes, preferences and buying behaviour. Experimental research gathers primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses.
It is often impossible to collect information from the entire population, so marketers often base conclusions on samples. A sample is a segment of the population selected for marketing research to represent the population as a whole. Three decisions regarding the sample need to be made: the sampling unit (who), sampling size (how many) and sampling procedure (how should they be chosen). There are probability samples, in which each member of the population has an equal chance of being included, such as simple random samples, stratified random samples and cluster samples. But there are also non-probability samples, such as convenience samples, judgment samples and quota sample categories.
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