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Concordia University
MANA 298

CHAPTER 1Marketing Managing profitable customer relationshipsMarketing is managing profitable customer relationships The goal of marketing is to attract new customers to grow current customers by delivering satisfaction and to provide goods and services at profitMarketing specialists must satisfy their customers need in a socially responsible and ethical mannerThe marketing process1Understand the marketplace and customer needs and wantsHumans have 3 needsPhysical needs food clothingSocial needs the need to belongIndividual needs need for knowledge self expression Based on their needs human have wants that are shaped by culture and individual personality However when backed by buying power wants become demandsMarketing offers As a marketer we offer the product the physical need and the service that provides a benefitA market is the set of actual and potential buyers of a product These buyers share a particular need or wantMarketers are not the only doing marketing even consumers do marketing when they search for the goods they need at a price they can affordElements of a modern marketing systemCompanyCompetitorsSuppliersMarketing IntermediariesEndUser2Designing a customerdriven marketing strategy Marketing management is the art and science of choosing target markets and building profitable relationships with themTo have a good marketing strategy we need to be able to answer two questionsWhat customers will we serve whats our target marketHow can we serve these customers best whats our value propositionTo decide who we will serve we need to divide the market into segments market segmentationTo serve the customer best the marketer needs the show how the product is better than any other product on the market A companys value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needsnewSince the consumer is always at the center of our worlds you need to find a product concept you need to work on aand better product for the consumerThere are 5 philosophies under which organizations design and carry out their marketing strategies The production concept the idea that consumers will favour products that are available and highly affordableThe product concept the idea that consumers will favour products that offer the most in quality performance and feature and that the organization should therefore devote its energy to making continuous product improvements The selling conceptthe idea that the consumers will not buy enough of the firms products unless it undertakes a largescale selling and promotion effortThe marketing concept its the idea that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors doSocietal marketing concept its the ideal of making good marketing decisions by being good to the society and the environment 3Preparing a marketing plan and program Those are the basic marketing decisions that we are going to make the marketing mixThe 4 marketing mix tools areProduct Price Place Promotion 4Building customer relationship producing what the consumer wants and needsCustomer relationship management its the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfactionSatisfied customers are more likely to be loyal customers and to give the company a larger share of their businessRelationship building blocks customer value and customer satisfactionCustomer perceived value its the difference between total customer value and total customer costCustomer satisfaction its the extent to which a products perceived performance matches a buyers expectations 5Capturing value from customerscreating customer loyalty and retention by producing good products customer remain loyal and talk favourably to others about the company and its productCustomer lifetime value the value of the entire stream of purchases that the customer would make over a lifetime of patronageCustomer equity the total combined customer lifetime values of all the companys customers The new marketing landscape There are 4 major trends and forces that are changing the marketing landscapeThe new digital ageRapid globalizationThe call for more ethical and social responsibilitiesThe growth of nonforprofit marketingCHAPTER 2Companywide strategic planning defining marketings roleStrategic planningits the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities It involves defining a clear company mission setting supporting objectives designing a sound business portfolio and coordinating functional strategies Designing the Setting Defining the Planning marketing business companys companys and other strategiesportfolioobjectivesmissionStep 1Mission statement its a statement of the organisations purpose what it wants to accomplish in the larger environment Your mission could either be to satisfy a certain market or it could be product driven However the mission has to be realistic For example Singapore airline cannot have as a mission to become the worlds largest airline For example more realistically Johnsons and Johnsons mission could be to provide services to satisfy the medical profession and make the stakeholders happy at the same timeits very global you can almost add anything in hereStep 2Setting company objectives and goals the companys mission needs to be turned into detailed supporting objectives for each level of management Most of the time setting goals has to do with either sales ormarket shares Your objective could be sales profit or market share orientedStep 3Designing the business portfolio its the collection of businesses and products that make up the company For example the producers of tide arctic power and ABC They have one company but they have many products under the same company thats their portfolioThe best business portfolio is the one that best fits the companys strength and weaknesses Business portfolio planning involves two stepsAnalysing the current business portfolioShape to future portfolio by developing strategies for growth1Analysing the current business portfolio its the process by which management evaluates the products and businesses making up the company First the company needs to identify the key businesses making up the company strategic business units SBU The other component of the SBU is that you may or may not want to divide the portfolio which is part of your strategic business unit Like for example if we take the example of Tide and Arctic Power they probably dont work with each other or listen to each other this is SBUThe best known portfolio planning methods was developed by the Boston Consulting GroupUsing theBoston Consulting Group approach a company classifies all its SBUs according to the growthshare matrixGrowthShare Matrix its a portfolioplanning method that evaluates a companys strategic business units in terms of its market growth rate and relative market shareSome markets are dynamic markets that keep spending money in order to be number 1 and some markets are static markets that already established themselves are arent really making money because they are not spending money to get up therethe automobile industryThere are 4 possibilities1If you have a high share market and a high growth industry you are considered a Star In order to remain that way you need to keep pumping money you are basically a high share player in a very dynamic market2If you have a high share market and a low growth industry you are considered a cash cow meaning that you are theoretically making money but you have to get money out of it you have to milk the cow3If you have a low share market and a high growth industry you are considered a problem child You basically have incredible potential but you are a fuck up you need to spend more time effort and money or else you will fall apart 4If you have a low share market and a low growth industry you are considered a dog meaning that you generate enough cash to maintain yourself but its no enough cash for you to be able to liveDeveloping strategies for growthCompanies need growth if they are to compete more effectively satisfy their stakeholders and attract top talent however they cannot make that their primary objective the companys objective must be profitable growthOne useful device to identify profitable growth is the productmarket expansion grid a portfolioplanning tool for indentifying company growth opportunities through market penetration market development product development or diversificationMarket penetration its a strategy for company growth by increasing sales of current products to current market segment without changing the productMarket development its a strategy for company growth by identifying and developing new market segments for current company product Its like if for example I take poutine product and decide to sell it to America marketProduct development its a strategy for company growth by offering modified or new products to current market segmentDiversificationits a strategy for company growth through starting up or acquiring businesses outside the companys current product and marketsEvery time you see a new product or market there are risks because you are going into a situation that you are not familiar with and going to a new market that you are not familiar withCompanies must not only develop strategies for growing their business portfolios but also strategies for downsizing them In other words its to reduce the business portfolio by eliminating products or business units that are not profitable or that no longer fir the companys overall strategy The first thing you need to do is to make sure that you are partners with important groups you do this to not be isolatedyou need to partner up with the good people who have connections you basically have to have to good relationships with the good peopleEach company department can be thought of as a link in the companys value chain the series of departments that carry out valuecreating activities to design produce market deliver and support a firms productsStep 4The marketing planning
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