Marketing management english

Chapter 1

MARKETING MANAGEMENT

‣ DEFINING MARKETING:

Finance, operations, accounting and other business functions are all dependent on su cient

demand for product and services from customers; in fact, if we are not able to sell product we

can’t sustain the economic activity

nancial success depends on the marketing ability

=> that is why all good marketing good results

=> If we are able to do we reach

Net ix -> good service that is able to reach a lot of customers all over the world

new products that enrich people’s lives.

Marketing’s value is also that it helps to introduce

It also creates new jobs and engages rm in social responsible activities.

Uber -> a new way to get taxi

e ects:

In marketing there are many

Just a short time ago Myspace, Yahoo, Blockbuster were leaders in their industries; now they

have been overtaken by new services such as Snapchats, Google, Facebook, Net ix, Amazon.

=> Firms must constantly move forward because marketing brings innovation

customer at the centre of the organization.

The role of marketing is always to have the

=> Marketing and Innovation are the two basic functions that proved results in the business

enterprise.

‣ WINNING MARKETING

Skillful marketing is a never ending pursuit, with businesses adapting and thriving in these

changing times.

Pinterest -> it’s a very fast social media ingrowing and it is famous especially for women;

It doesn’t sell anything, they are giving a service for free and the company lived with the data

taken from the users.

“network rst, revenue later”

-> it is focused on and has been valued for $25 billions.

Marketing is not only sales => customers are at the center

science and art if exploring, creating, delivering value

=> Marketing is the to satisfy the needs

of a target market at a pro t. know and understand the customer

=> The aim of marketing is to so well that the product or

service ts him and sells itself.

…Ideally, marketing should result in a customer who is ready to buy; all that should be needed

then is to make the product or service available => Advertising and Sales are the nal

Zara -> does’t make special advertisement but it takes fast fashion, in few weeks it gives the

customers new collections every season and in this way it can reach better the preference and

feedback of consumers. It produces about 12000 styles per year.

Benetton -> is focused on provocative advertising to gain attention rather than embracing real

customer understanding. 1

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“marketing is not an event (advertising is an event) but a process… it has a beginning, a

Levinson:

middle, but never an end, for it is a process. You improve it, perfect it, change. But you never stop

it completely.”

-> Most of the people see only the upper part of the iceberg and think that marketing is just

advertising, communication and selling, because they can’t see the process.

‣ MARKETING’S ROLE IN CREATING DEMAND

create demand

Marketing is able to but this demand must be in the market already.

=> Great marketing is when you see an unful lled need and launch an appropriate o ering and

the o ering matches this need; in this way you reach demand and pro table sales

Innocent Drinks is a marketing success story with simple drinks based on crushed fruit.

It has been founded by three Cambridge University graduates.

They understood that people are not interested in something in uenced but prefer natural

products in food and drinks, so they were able to distribute a big amount of juice bottles in

Europe.

‣ NEEDS AND WANTS

Needs -> are basic human requirements such as air, food, water, clothing, shelter. We also have

strong needs for recreation, education and entertainment..

wants

-> These needs become when directed to speci c objects that might satisfy the need.

For example: a German consumer may look for a sandwich, a Dutch consumer may choose raw

herring needs pre-exist.

=> Marketers do not create needs, the They ful ll a need, and along other social

in uence wants.

factors, they

Fitbit: this products entered the market because of the increase in demand for healthier and more

active life. The steep rise and growth of Fitbit re ects the trend towards wearable technologies in

general, and also self-management through self-monitoring.

‣ EUROPEAN MARKETING REALITIES

Purchase power in every country is di erent; there are some countries in Europe with more or less

purchase power, di erent political, historical and geographical characteristics. 2

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3 forces of the today environment => technology, globalization, social responsibility

=> these forces are in uencing consumers and companies capabilities and consequently also

products and services.

‣ Technology:

Web, mobile and social are core technologies that are now dominant within society. However,

adoption across Europe is not uniform.

Smartphones and social media is an ever increasing range of innovative technologies that could

be impactful for marketing. They include technologies such as Internet of Things (IoT), robotics,

data analytics, arti cial intelligence and so on. interact with customers;

=> The digital technologies are the biggest opportunity to and

understanding customers we can give them the right product and service. “three screens”:

We have di erent technologies to reach customers -> marketers think on the TV,

smartphones, computer

‣ Globalisation:

It is a force in which there are a lot of advances in transportation and communication.

It has also made countries increasingly multicultural, in uences coming from other countries.

marketing glocal (global+local)

=> Many companies are using a di erent approach: by

managing customers locally within their area, nationally within their borders and also globally on

the world stage.

‣ Social responsibility: impact

Companies have a corporate social responsibility to understand how the company has an

on the society, planet and on our lives.

Capitalism and other systems can cause social issues as wealth concentrations, poverty,

pollution, water shortages, climate change and wars.

-> The marketing task is thus to determine the needs, wants, and interest of target markets and

satisfy them more e ciently that competitors while preserving or enhancing consumers’ and

society’ long-term well-being.

‣ new consumer capabilities

Some dramatically e ects come from these 3 forces, bringing

Across Europe, a generation of digital natives exists, who grew up with technology, but far behind

adoption in Asia.

Digital engagement for social media exists across age groups, with “digital immigrants” and the

“grey population” embracing technology.

consequences:

There are many

- showrooming

Consumers use the internet as a powerful info interaction and engaging in

(comparing products in stores but buying online)

- mobile

Consumers embrace and purchasing on the go everywhere

- generating content. engaging

Tap into social media editing and Marketers tap into this by

with their customers online

- less tolerant to advertisement

Consumers can be because we are more informed and are not

very friendly in being interrupt watching an advertisement and we are able to distinguish

between advertisement and other types of communication

=>so consumers now have more capabilities to understand marketing 3

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Starbucks idea

Ex: -> they have an area in the web site in which consumers can write their

Starbucks idea

‣ New company capabilities:

- personalization

Companies use the internet as a powerful information and sales channel for

and customization

- data analytics richer insights

They use the as a core and to gain about markets, customers

and competitors

- location-dependent information

Companies embrace mobile and with GPS technology

- automation,

Companies are moving towards increased robotics, and the internet of things (IoT)

=> so consumer today have more power and companies must understand this power using

information from consumers to bring new products, services and values.

MARKETING PHILOSOPHY

• production philosophy

The holds that consumers prefer products that are widely available and

inexpensive. Businesses concentrate on achieving high production e ciency, low costs, and

mass distribution.

• Product philosophy is di erent because in this case the company is concentrated not in the

production but in the product - this means that the company wants to create the best product

with the biggest qualities that consumers want. The risk is that if we are in love with our

products we could lost customers because we don’t think so much about them.

Kodak: was over-focused on product and lacked of focus on the customer missing opportunities

in digital photography

• selling philosophy

With businesses practice aggressively unsought o erings and hard selling.

=> The marketing philosophy emerged in the mid 1950s as a “customer-centered, sense-and

-respond philosophy” that a total company e ort to achieve customer satisfaction at a pro t.

We must focus on customers -> the company tries to obtain the customers’ satisfaction by

satisfying their needs

Je Bezos -> he created a company that is customer obsessed -> this means that if you receive

an order from Amazon you can also use it and refund it in 30 days, 24/7 you are assisted by an

employee

THE HOLISTIC MARKETING APPROACH

This approach is based on the fact that each function and part of a company can be marketing

oriented => this means that everything matters in marketing

-> it is important to work within each department to place the customer at the centre of the

organization.

Holistic marketing includes:

Internal marketing -> marketing department, senior management and others

Integrated marketing -> communications, rice, product and services

Performance marketing -> sales revenue, brand and customer equity, ethic, legal, social..

Relationship marketing -> customers, employees, partners 4

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7Ps OF THE MARKETING MIX

With the Holistic Marketing Concept we do not talk anymore of 4Ps but of 7Ps

product, price, promotion, place

4P: people, processes, physical evidence

3 extra areas:

People -> are those working in the company

Process -> design, technology and so on used for the production

Physical evidence -> service environment, experience landscape and so on 5

Chapter 3

DEVELOPING MARKETING STRATEGIES AND PLANS

-> Marketing is not only communications and tactics, before we need to think about strategies

that must be done with plans.

competitive global markets, lasting

In today’s highly the task of any business is to form

relationships customer-perceived value

with customers by delivering at a pro t.

-> To have a good relationship with customers we have to deliver a good product/service that

could be least for a long time

‣ Porter value chain

thought about a within the

company

Every company sector takes a value; his vision is to

have a value for every part of activities and

managers must understand how much every

activity cost and can create performance

-> This is an internal vision because we should also

think about what a company is able to do

Firms are a synthesis of activities performed to

design, produce, market, deliver and support the

nal market o ering.

CORE COMPETENCIES

Adidas -> is a good company in doing sport shoes; they create the model and design the shoes,

then they outsource the production; they concentrate on the design and with will be the next

shoes to introduce in the market.

Ikea -> is concentrated on the design, is able to deliver to customers and they have to mount the

forniture. Ikea doesn’t invest in mounting the furniture.

Unilever -> abandons spreads accepting £6 billion for its spreads brands Flora, I Can’t Believe

It’s Not Butter and Stork

=> Some companies disinvest and abandons some areas of business because things change and

there are some trends and reason for those this companies don’t want to invest anymore

They can concentrate on other companies.

Business realignment may be necessary to maximize core competencies:

- Re-de ning the business concept of “big idea”

- Re-shaping the business scope

- Re-positioning the company’s brand identity

Burberry was also one of the rst rm to invest in digital 6

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THE ROLE OF THE CORPORATE STRATEGY

Marketing is not an activity done only with some speci c campaigns; it requires companies to

understand the customer perceived create it, deliver it capture it.

value, to and

master marketers

Only a few companies stand out as a

focus on the customer

-> These companies and are organized to respond e ectively to

changing customer needs

strategic planning, implementation control

We need ti think about a and (measuring results, and

taking corrective actions)

‣ corporate level, division level, SBU

Most large companies have three key organizational levels:

level -> for each level we need to plan for implement and control the activities

corporate strategy

-> Corporate headquarter thinks about and is responsible for designing a

plan to guide the whole enterprise

-> Each division establishes a plan covering the allocation of funds to each of its strategic

business units (SBUs) pro table future marketing

-> Each SBU develops a strategic plan to generate a and develops a

plan

‣ strategic part tactical part:

marketing plan

The is divided in a and a

- In the strategic part -> the company states the target markets and the customer- perceived

value o erings

- In the tactical part -> we think about marketing activities, including product features,

promotions, merchandising, pricing, sales channels and service

CORPORATE LEVEL: corporate and divisional strategic planning

Corporate headquarters de ne four important planning activities:

• mission

De ning the corporate

• business

De ning the

• strategic business unit

Assigning resources to each (SBU)

• growth opportunities

Evaluate

MISSION Drucker’s classic questions:

To de ne its mission, a company ought to reply

What is our business?

Who is the customer?

What is value for the customer?

What will our business be? What should our business be? purpose, direction and

A clear mission statement provides employees with shared sense of

opportunity. 7

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Good mission statements:

- goals

Limited number of

- policies, values, culture

They stress the company’s major and

- long-term view

Take a

- brief, exible distinctive

It is ideally and

- competitive spheres

De ne the major within which the company will operate

There are di erent Competitive sphere:

Industry -> DuPont prefers to operate in the industrial market; Siemens operate in both industrial

and consumer markets

Market segment -> Aston Martin makes only high-performance sports cars for a high-end

market

Vertical -> Ford owned its own rubber plantations, glass manufacturing plants and steel foundries

Geographical -> Volkswagen and Unilever operate in almost every country in the world

Tesla

Ex. mission is very brief: Elon Musk put his mission with him in some conferences =>

accelerate the world’s transition to suitable energy

VISION future corporate goals;

The company vision is more associated with How the company sees

itself in the next years

vague precise purpose

-> it could be or but they give the organization a sense of

Good leaders create a vision for an organization, articulate it and motivate employees to adopt

and achieve it.

LinkedIn

ex. vision is to create economic opportunity for everyone that is working; the mission is

to connect professionals to make them more productive and successful

Paypal vision is to everyone to participate in the global economy; the mission is to make money

circulate faster for everyone

DEFINING THE BUSINESS terms of products:

Companies often de ne their businesses in they are in the “auto business” or

the “clothing business”

market de nitions of a business

-> but are superior to product de nitions

customer needs

Viewing businesses in terms of can suggest additional growth opportunities

customer groups, customer needs

three dimensions:

-> A business can de ne itself in terms of

and technology.

Large companies normally manage quite di erent businesses, each requiring its own strategy.

Virgin

ex. -> it manages di erent brand and business such as virgin active, virgin mobile, virgin

casino, hotels, ights; some businesses are pro table, some are not available, and some are ops

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STRATEGIC BUSINESS UNIT (SBU)

Each SBU must be well de ned and has 3 characteristics:

- single business

it is a that can be planes separately from the rest of the company; because

there are di erent customer groups and di erent competitors

- own set of competitors

It has its

- manager

It has a responsible for strategic planning and pro t performance

separate strategies

-> The purpose of identifying the company’s SBUs is to develop

allocate corporate resources

-> Management must decide how to in SBUs

Boston Consulting Group Matrix market

They develop a matrix with 2 dimensions used as criteria to make investment decisions:

share market growth

and

Key assumptions:

- market growth has an adverse e ect on cash ow because of the investment in manufacturing

facilities, equipment and marketing needed to nance growth;

- market share has a positive e ect on cash ow as pro ts are related to market share.

Star: pro table

Firms are because they are market leaders but require substantial investment to

nance growth and meet competitive challe