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Western University
Business Administration
Business Administration 1220E
Cole Finnbogason

Marketing 1. Business marketing 2. non-business marketing Goal: improve the performance of the organization by establishing and nut ruing profitable relationships with customers clients, sponsors or stakeholders. Marketer: A person who must decide which market opportunities to pursue, which customers to target, what products and services to offer when and at what price, how to communicate with prospects and customers, what distribution systems to use and more. Inter-related decisions when brought together into an integrated whole is called a company's marketing program. Market - noun - exchange of demand and supply market - verb - sell Marketing plan is a document that specifies what marketing program an organization intend to undertake, what that program makes sense, what program will require to be implemented and what results to be expected. Ten steps process of marketing management 1. Define the marketing challenge Is this a new business start-up or an existing business? What are the performance objectives? What decisions need to be made? 2. Identify attractive market opportunities What are the key implications of an environmental scan? What are customer needs, wants, habits? How can the market be segmented? What are the competitors doing? 3. Select a primary market target Which customers are particularly attractive Which customers are available 4. Decide on the product/service offering What are customer perspectives on the product How should the company differentiate from competition 5. Decide on the distribution approach What channels are available and interested What channels make the most sense 6. Decide how to attract customers What message should be sent What mix of communication methods should be used 7. Decide on pricing What should the price at each level of distribution How should price changes be handled 8. Decide how to keep/grow the customer base What customer service program should be offered What retention/development program should be used 9. Ensure the financials make sense What will the marking program cost? What results are expected 10. Decide how to learn for the next round of decisions What results and experiences should be monitored What market research should be done for the next time? Define the marketing challenge Start up or existing, ongoing condition 1. Start up marketer Looking for market opportunities, focused on entry of market 2. On-going marketer What is working and what needs to be changed 1. What do we want to ultimately achieve? Define marketing challenge at the very beginning. 2. Focus on marketing strategy(direction) or implementation(execution) 1 Defining the marketing challenge Define the marketing challenge Start up or existing, ongoing condition 1. Start up marketer Looking for market opportunities, focused on entry of market 2. On-going marketer What is working and what needs to be changed 1. What do we want to ultimately achieve? Define marketing challenge at the very beginning. 2. Focus on marketing strategy(direction) or implementation(execution) Metrics of success to use for marketing Total sales: Expressed in dollar or unit volume Sales per customer: expressed in dollars for units per customers, share of a customer's total purchases in a category over time or frequency of purchase. Market share: This is usually expressed as a percentage of the company's or brand's total sales relative to all competitors in this category in a specified market area. Sales growth: This indicates the trend, usually expressed in percentage terms, from one period to another Total profitability: Either as dollar gross profit(margin) or dollar net profit Customer profitability: this is expressed either as average dollar profit (or contribution) per customer or by customer group. Awareness: Expressed as percentage of the target market who are aware of the firm or of specific things about this firm Satisfaction: This may be measured by "happiness" or willingness to refer to a friend or colleague Loyalty: There are a variety of measures used, but the idea is to express what percentage of customers are repeat customers versus new customers. Identifying and assessing market opportunities is a vital task for marketers, finding out aha the organization COULD do. Marketing helps a firm make what can be sold not just sell what can be made. Marketing is at its core strategic. that is, it is about deciding what to do and for whom. 2 Identifying market opportunities Identifying and assessing opportunities Environmental scanning close observation of trends in the marketplace. PEST analysis. Porter's 5 forces. Environmental scan is EXTERNAL. Timing is important. Competitive analysis Broad range of efforts to identify, understand and anticipate those who would take one's customers away. Competitive differentiation Seeking meaningful ways of being different/superior than competitors. Customer analysis Efforts required to understand end users, buyers and intermediate buyers and sellers Prospects are individuals, households or organizations that a marketer things might be converted into customers Customers and clients are people who actually buy. Consumers is another term often used to describe menders of a market, but more accurately these are the people who actually use a product or service. Consumer market and business/ institutional market Market segmentation - dividing people up into different groups where each group comprise of similar people Two key consequence 1. general customer analysis questions will be answered differently with every segment, if there are no segmentation, marketers may get the wrong ideas about a market opportunity 2. When there are segments, a marketer must decide which segments to choose. examples of segmentation types: customer based, product based, location based, distribution based, sensitivity to price Self analysis Identifying and assessing market opportunities involves matching company capabilities with what will win in the marketplace. There might be an opportunity, but not every business can win at pursuing it. Therefore it is important to know thyself. SWOT analysis. *Strength and weaknesses are relative of specific opportunities and threat, not generalized statements. 3&4 3. Selecting a primary target "Who are we trying to serve?" A target market enables a marketer to focus the offer and the delivery of that offer. Criteria in selecting a target market: 1. Does this definition include a large enough market to be worth serving? This is the important issue of substantial market size and its potential growth. 2. Is the target accessible to the marketer? For example, specifying "all Canadians" as the target market makes little sense if one is able to distribute only to those who live in Halifax. 3. Does the target specification provide us with a different way of thinking about customers than our competition? Does it identify a group we can serve in a differentiated, better way than our competitors? 4. Does the target specification provide guidance for the rest of the organization in terms of obtaining the performance outcomes desired? For example, specifying a target customer who has blue eyes and feels young at heart may not help the marketer find, reach or affect such customers. This criterion of actionability is very important. 4. Decide on the product/service offering Marketing means taking into consideration what customers need and want, how they make decisions about how to satisfy themselves, and so on, and then doing something with that knowledge. From a marketing perspective, we think about the product or service offering as a package of benefitsI(customer value proposition) which refers to what customers get, what the product or service does for the customers. Payment is made with money, time and effort. Customers want solutions to their problems and answers to their wants. eg. We want can openers because we want opened cans. Cell phones to make calls. product life cycle plays a huge role on the decisions a marketing manager makes Differences between services and products Services are performed and consumed at the same time. Cannot be inventoried, managing demand to match the service provider's capacity is a key marketing challenge. Intangibility creates challenges in communicating about services and challenges for the customer in choosing among competing services. 5 Distribution approach Distribution refers to the movement of the product or device to the customer Channels of distribution - some owned by marketer some owned by third party Business system or market chain includes all participants, from the raw materials provider to the end user. Consumer marketers vs. B2B marketers Difference in marketing challenges (B2B might require price quotation) Difference in marketing programs (B2B is more direct sales force, B2C is more advertising and media) All participant in the distribution system still needs to understand the en
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