MARKETING MANAGEMENT What is Marketing Marketing is the

MARKETING MANAGEMENT

What is Marketing? Marketing is the delivery of customer satisfaction at a profit.

The Goal of Marketing is To attract new customer by promising superior value, and to keep current customers by delivering satisfaction.

Marketing, more than any other business function, deals with customers. Creating customer value and satisfaction are at the very heart of modern marketing thinking and practice. Some people believe that only large business organizations operating in highly developed economies use marketing, but sound marketing is critical to the success of every organization – whether large or small, for profit or non – profit, domestic or global.

Marketing Defined ü Many people think of marketing only as selling and advertising. ü Selling and advertising are only the tip of the marketing ice-berg. ü Marketing is one of three key core functions that are central to all organizations. ü Marketers act as the customers’ voice within the firm and marketers are responsible for many more decisions than just advertising or sales: ü Analyse industries to identify emerging trends. ü Determine which national and international markets to enter or exit. ü Conduct research to understand consumer behavior. ü Design integrated marketing mixes – products, prices, channels of distribution, and promotion programs.

To explain marketing definition, we examine the following important terms : Ø Needs, wants, and demands Ø Products and services Ø Value, satisfaction and quality Ø Exchange, relationships Ø Markets transactions, and

Marketing Management The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.

Product Concept The philosophy that consumers will favour products that offer the most quality, performance, and innovative features.

Selling Concept The idea that consumers will not buy enough of the organization’s products unless the organization undertakes a large – scale selling and promotion effort.

Marketing Concept The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do

MARKETING ESSENTIAL Types, Trends, and Limitations of Marketing Research = Four important areas of marketing research = The important trends affecting marketing research = The limitations of marketing research

Types of Marketing Research The type of marketing research businesses conduct depends on the problem that they are trying to solve. Some of the most significant areas of research are: = attitude research = market research = media research = product research

Attitude Research Ø The Gallup Attitude research, also known as opinion research, is research designed to obtain information on how people feel about certain products, ideas, or companies. = Example: Organization conducts opinion research polls on politics, elections, business and the economy, social issues, and public policy

Market Research Market research involves the systematic gathering, recording, analyzing, and presentation of information related to marketing goods and services. It uses market analysis—the study of particular consumer and industrial markets—to obtain data about the size, location, and make-up of the market for a product.

Researching Online Advertising As online advertising increases in popularity, researchers have developed marketing research techniques for online copy testing. Techniques include: = using a mock environment similar to traditional copy testing = live testing in an interactive environment = tracking ad recall and copy effectiveness = evaluating Web site elements that attract users

Product Research Product research centers on evaluating product design, package design, product usage, and consumer acceptance of new and existing products.

New Product Acceptance Ø Product tests are a way of measuring new product acceptance. Techniques include: = having consumers try a product and give their opinions = providing samples = test marketing by placing a new product in a selected geographic area = having a product rating board

Limitations of Marketing Research Ø Marketing research information is used to help businesses make sound business decisions, however it is limited by the following factors: = the company's budget = time = quickly changing customer preferences

Reviewing Key Terms and Concepts Ø 1. What are the four major areas of marketing research? Ø 2. What is the difference between sales and economic forecasting? Ø 3. What is test marketing? Ø 4. List at least four trends facing marketing researchers today. Ø 5. What are two limitations of marketing research?

Performance Dimensions - Growth Ø Sales growth Ø Share growth Ø Increased sales to existing customers Ø Sales to new customers Ø Opening new markets

Performance Dimensions Efficiency Ø Achieving goals with minimum resource invested. Ø Productivity Ø Outputs/Inputs Efficiency = Sales. Mktg Exp.

Performance Dimensions - New Products Development v Trial rate v Retention rate v Time to market v Revenue from new services

Performance Dimensions Customer Satisfaction Retention/Loyalty Perceived value received

Performance Dimensions Profitability ROA = Profits/Assets Cash Flow/Assets = CFROA Return on Sales (ROS) = Profits/Sales Meeting Margin or Contribution Goals

Common Firm Goal Attainment Metrics Awareness rates. Satisfaction and Loyalty Ratings Growth and Share targets. Hurdle rates for Project ROI NPV hurdles.

Market Research This lecture should lead you to an understanding of the uses and abuses of market research. If, in the future, there is talk of commissioning market research for an NPD project (or other research you may be working on) you should be able to: - evaluate the usefulness (or otherwise) of market research for the problem you are involved with - discuss appropriate types of research with confidence - set yourself realistic expectations regarding the results/ timing

“It is a capital mistake to theorise before one has data” Sir Arthur Conan Doyle

Research on Agatha Christie Harper. Collins found sales of Agatha Christie novels declining in 1985 • Quantitative & qualitative research commissioned • Readers liked “niceness” of the crimes, but covers were gruesome and bloody • Result: new cover designs commissioned and in the first year sales rose 40%

Structure of Market Research Lecture Spend on Market Research Types of Market Research Potential Problems

Market Research vs Marketing Research Market Researching the immediate (strictly speaking. . . ) competitive the marketplace, including customers, competitors, suppliers, distributors and retailers Marketing Research environment of Includes all the above plus: � - companies and their strategies for products and markets � - the wider environment within which the firm operates (e. g. political, social, etc)

Marketing Research: Definition The systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the organisation

Top 10 market research activities Market Measurement 18% New Product development/concept testing 14% Ad or brand awareness monitoring/tracking 13% Customer Satisfaction (inc Mystery Shopping) 10% Usage and Attitude Studies 7% Media Research & evaluation 6% Advertising developing and pre-testing 5% Social Surveys for central/local government 4% Brand/corporate reputation 4%