Chapter 1 Properties

Marketing management  Intangible rights of ownership to either real

property or financial property.
Marketing
 Identifying and meeting human and social Organization
needs.  Universities, museums, performing arts and
 The activity, set of institutions, processes of organizations, corporations and non profit all
creating , communicating, delivering and use marketing to boost their public images and
exchanging offerings that have value for compete for audiences and funds.
customers, clients, partners and society at
large. Information
MARKETING MANAGEMENT  Includes production, packaging and distribution
 The art and science of choosing target markets of information.
and getting , keeping and growing customers Ideas
through creating , communicating superior  Every market offering includes a basic idea.
customer value .
Who markets?
Type of marketed entities: MARKETER
Goods Someone who seeks a response, attention, purchase, a
 Tangible vote, donation from another party.
 Constitute the bulk of most countries’ PROSPECT
production and marketing efforts Target market
 Includes canned, bagged and frozen products,
cars, refrigerators, televisions , machines and 8 Demands States
mainstays of the modern economy.
1. Negative - Consumers dislike the product and
Service may even pay to avoid it.
 Includes work of airlines, hotels, car rental 2. Nonexistent - Consumers may be unaware of
firms, barbers and beauticians, maintenance or uninterested on the product.
and repair people and accountants , bankers , 3. Latent - Consumers may share a strong need
lawyers, engineers , doctors, software that cannot be satisfied by an existing product.
programmers and management consultants. 4. Declining - Consumers begin to buy the product
Events less frequently or not at all.
 Includes major trade shows, artistic 5. Irregular - Consumers purchases vary on a
performances and company anniversaries. seasonal, monthly, weekly, daily or even hourly
basis.
Experience 6. Full - Consumers are adequately buying all
 Disney Worlds’ Magic Kingdom products put into the marketplace.
 Baseball camp 7. Overfull - More consumers would like to buy
the product that can be satisfied.
Persons 8. Unwholesome - Consumers may be attracted to
 Includes artists, musicians, CEOs, physicians, products that have undesirable social
high profile lawyers and financiers, celebrity. consequences.

Places
 Includes cities, states regions and whole nations
for attracting tourists, residents, factories and
company headquarters.
CHAPTER 2: DEVELOPING MARKETING STRATEGIES allocate to each division, as well as on which
AND PLANS businesses to start or eliminate.
2. Division. Each division establishes a plan
The task of any business is to deliver customer value at covering the allocation of funds to each
a profit. In a hypercompetitive economy with business unit within the division.
increasingly informed buyers faced with abundant 3. Business unit. Each business unit develops a
choices, a company can win only by finetuning the value strategic plan to carry that business unit into a
delivery process and choosing, providing, and profitable future.
communicating superior value. 4. Product. Each product level (product line,
brand) develops a marketing plan for achieving
The Value Delivery Process. The traditional view of its objectives.
marketing is that the firm makes something and then
sells it, with marketing taking place in the selling Marketing plan. The central instrument for
process. directing and coordinating the marketing effort. It
Value - specific product features, prices, and operates at two levels: strategic and tactical.
distribution
Tactical marketing plan. Specifies the marketing
Competitive advantage - accrues to companies that tactics, including product features, promotion,
possess distinctive capabilities or excellence merchandising, pricing, sales channels, and service.
Competitive advantage ultimately derives from how
well the company has fitted its core competencies and Corporate Mission. Define what an organization
distinctive capabilities into tightly interlocking “activity exists to accomplish something; shared sense of
systems.” purpose, direction, and opportunity.

Holistic marketers address three key management Strategic Business Unit (SBU) is a semi-autonomous
questions: unit within a larger corporation that operates like
1. Value exploration. How a company identifies an independent entity. Each SBU typically focuses
new value opportunities. Exploring possible on a specific market, product, or geographic area,
opportunity of product. and has its own business strategy, objectives, and
2. Value creation. How a company efficiently resources. May kanya kanyang area na pinag
creates more promising new value offerings. fofofcusan.
New creation or re-invent.
3. Value delivery. How a company uses its An SBU has three characteristics:
capabilities and infrastructure to deliver the 1. It is a single business, or a collection of related
new value offerings more efficiently. businesses, that can be planned separately from
the rest of the company.
The central Role of Strategic Planning 2. It has its own set of competitors.
Focus on one are of business portfolio. 3. It has a manager responsible for strategic
1. managing a company’s businesses as an planning and profit performance, who controls
investment portfolio most of the factors affecting profit.
2. assessing each business’s strength by
considering the market’s growth rate and the INTENSIVE GROWTH Corporate management’s first
company’s position and fit in that market, and course of action should be a review of opportunities
3. establishing a strategy. for improving existing businesses. One useful
framework for detecting new intensive growth
Most large companies consist of four organizational opportunities is a “product-market expansion grid.”.
levels: Relies on corporate management need
opportunities to develop the product.
1. Corporate. Corporate headquarters is
responsible for designing a corporate strategic INTEGRATIVE GROWTH A business can increase
plan to guide the whole enterprise; it makes sales and profits through backward, forward, or
decisions on the amount of resources to horizontal integration within its industry.
Backward. Responsible for raw materials etc. strategy for achieving its goals, consisting of a
Forward. To expand business marketing strategy and a compatible technology
strategy and sourcing strategy.
Diversification. Diversification growth makes sense
when good opportunities exist outside the present PORTER’S GENERIC STRATEGIES Michael Porter has
businesses—the industry is highly attractive and the proposed three generic strategies that provide a
company has the right mix of business strengths to good starting point for strategic thinking: overall
succeed. cost leadership, differentiation, and focus.

Company’s organization. Consists of its structures, Overall cost leadership. Firms work to achieve the
policies, and corporate culture, all of which can lowest production and distribution costs so they can
become dysfunctional in a rapidly changing business underprice competitors and win market share.
environment.
Differentiation. The business concentrates on
corporate culture. it as “the shared experiences, achieving superior performance in an important
stories, beliefs, and norms that characterize an customer benefit area valued by a large part of the
organization.” —the way people dress, talk to one market.
another, and greet customers. Shared experience.
Focus. The business focuses on one or more narrow
The Business Mission Each business unit needs to market segments, gets to know them intimately,
define its specific mission within the broader and pursues either cost leadership or differentiation
company mission. within the target segment.

SWOT Analysis. The overall evaluation of a Feedback and Control. A company’s strategic fit
company’s strengths, weaknesses, opportunities, with the environment will inevitably erode, because
and threats is called SWOT analysis. It’s a way of the market environment changes faster.
monitoring the external and internal marketing
environment. Marketing plan. A written document that
summarizes what the marketer has learned about
Marketing opportunity. An area of buyer need and the marketplace and indicates how the firm plans to
interest that a company has a high probability of reach its marketing objectives. It contains tactical
profitably satisfying. guidelines for the marketing programs and financial
allocations over the planning period.
Environmental threat. Challenge posed by an
unfavorable trend or development that, in the The Role of Research. To develop innovative
absence of defensive marketing action, would lead products, successful strategies, and action
to lower sales or profit. programs, marketers need up-to-date information
about the environment, the competition, and the
NTERNAL ENVIRONMENT (STRENGTHS AND selected market segments.
WEAKNESSES) ANALYSIS It’s one thing to find
attractive opportunities, and another to be able to The Role of Relationships. Although the marketing
take advantage of them. plan shows how the company will establish and
maintain profitable customer relationships, it also
Goal Formulation. Goals are objectives that are affects both internal and external relationships.
specific with respect to magnitude and time. Most
business units pursue a mix of objectives, including Marketing Plan to Marketing Action. Most
profitability, sales growth, market share companies create yearly marketing plans.
improvement, risk containment, innovation, and Marketers start planning well in advance of the
reputation. implementation date to allow time for marketing
research, analysis, management review, and
Strategic Formulation Goals. Indicate what a coordination between departments.
business unit wants to achieve; strategy is a game
plan for getting there. Every business must design a
CHAPTER 3: Collecting Information and Forecasting INCOME DISTRIBUTION Marketers often distinguish
Demand countries using five income-distribution patterns:
(1) very low incomes; (2) mostly low incomes; (3)
Marketing information system (MIS) consists of very low, very high incomes; (4) low, medium, high
people, equipment, and procedures to gather, sort, incomes; and (5) mostly medium incomes.
analyze, evaluate, and distribute needed, timely,
and accurate information to marketing decision The Sociocultural Environment From our
makers. sociocultural environment we absorb, almost
unconsciously, a world view that defines our
INTERNAL RECORDS relationships to ourselves, others, organizations,
Order-to-Payment Cycle The heart of the internal society, nature, and the universe.
records system is the order-topayment cycle. Sales
representatives, dealers, and customers send Views of ourselves In the United States during the
orders to the firm. 1960s and 1970s, “pleasure seekers” sought fun,
change, and escape. Others sought “self-
Sales Information System captures data on every realization”
item for every customer, every store, every day and
refreshes it every hour. Views of others People are concerned about the
homeless, crime and victims, and other social
Databases, Data warehousing Data mining problems.
Companies organize their information into
customer, product, and salesperson databases— Views of organizations After a wave of layoffs and
and then combine their data. corporate scandals, organizational loyalty has
declined.
Marketing Intelligence System is a set of
procedures and sources that managers use to Views of society. Some people defend society
obtain everyday information about developments in (preservers), some run it (makers), some take what
the marketing environment. they can from it (takers), some want to change it
(changers), some are looking for something deeper
IDENTIFYING THE MAJOR FORCES (seekers), and still others want to leave it
(escapers).
DEMOGRAPHIC consists of population, including
the size and growth rate of population in cities, Views of nature Business has responded to
regions, and nations; age distribution and ethnic increased awareness of nature’s fragility and
mix; educational levels; household patterns; and finiteness by producing wider varieties of camping,
regional characteristics and movements. hiking, boating, and fishing gear such as boots,
tents, backpacks, and accessories.
Cohorts groups of individuals born during the same
time period who travel through life together. Views of the universe Most U.S. citizens are
monotheistic, although religious conviction and
EDUCATIONAL GROUPS illiterates, high school practice have waned through the years or been
dropouts, high school diplomas, college degrees, redirected into an interest in evangelical
and professional degrees. movements or Eastern religions, mysticism, the
occult, and
HOUSEHOLD PATTERNS The traditional household SUBCULTURES groups with shared values, beliefs,
consists of a husband, wife, and children (and preferences, and behaviors emerging from their
sometimes grandparents). special life experiences or circumstances.

The Economic Environment The available The Natural Environment. Environmental

purchasing power in an economy depends on regulations hit certain industries hard.
current income, prices, savings, debt, and credit
availability.
Corporate environmentalism recognizes the need product-penetration percentage the percentage of
to integrate environmental issues into the firm’s ownership or use of a product or service in a
strategic plans. population.

The Technological Environment It is the essence of Company demand he company’s estimated share of
market capitalism to be dynamic and tolerate the market demand at alternative levels of company
creative destructiveness of technology as the price marketing effort in a given time period.
of progress.
company sales forecast the expected level of
The Political-Legal Environment The political and company sales based on a chosen marketing plan
legal environment consists of laws, government and an assumed marketing environment.
agencies, and pressure groups that influence
various organizations and individuals. sales quota -the sales goal set for a product line,
company division, or sales representative.
consumerist movement organized citizens and
government to strengthen the rights and powers of sales budget a conservative estimate of the
buyers in relationship to sellers. expected volume of sales, primarily for making
current purchasing, production, and cash flow
FORECASTING AND DEMAND MEASUREMEN decisions.
Understanding the marketing environment and
conducting marketing research can help to identify Company sales potential the sales limit approached
marketing opportunities. The company must then by company demand as company marketing effort
measure and forecast the size, growth, and profit increases relative to that of competitors.
potential of each new opportunity.
Total market potential is the maximum sales
1. potential market the set of consumers with a available to all firms in an industry during a given
sufficient level of interest in a market offer. period, under a given level of industry marketing
effort and environmental conditions
2. available marke - the set of consumers who
have interest, income, and access to a particular
offer.

3. target market the part of the qualified available

market the company decides to pursue.

penetrated market is the set of consumers who are

buying the company’s product.

MARKET DEMAND total volume that would be

bought by a defined customer group in a defined
geographical area in a defined time period in a
defined marketing environment under a defined
marketing program.

MARKET FORECAST Only one level of industry

marketing expenditure will actually occur.

MARKET POTENTIAL is the limit approached by

market demand as industry marketing expenditures
approach infinity for a given marketing
environment.