Title: marketing 500
1marketing 500
- cherian(a)uic.edu
- 2224 UH, 312-996-4480
2a framework for mktg mgmt
3topics for midterm exam
situation strategy specifics
success
4C1 defining marketing
- A. marketing today
- industrial age vs information age cards ches
s - make a market, take a market (blue-ocean)
(red-ocean)
51 the new economy
- the digital revolution
- consumers
- companies
- information age vs industrial age
- recognize potential quickly
- marketing meeting needs profitably
62. marketing tasks
- radical marketing
- scope of marketing
- decisions marketers make
- marketing concepts and tasks
- defining marketingA social and managerial
process by which individuals and groups obtain
what they need and want through creating,
offering, and exchanging products of value with
others
72. marketing tasks
- D (2) core marketing concepts
- target markets, segmentation
- marketplace, marketspace, metamarket
- marketers, prospects
- needs, wants, demands
- product, offering
- value, satisfaction
- exchange, transaction
82. marketing tasks
- D(2) core marketing concepts
- relationships and networks
- channels
- supply chain
- competition brand, industry, form, generic
- marketing environment
- marketing program
93. company orientations
- production concept
- product concept
- marketing concept
- integrated marketing
- profitability
- internal marketing
- customer concept
- societal marketing concept
104. how businesseschanging
- major forces more wants, more brands, stores
hurt - company responses reengineering, outsourcing,
ecommerce, benchmarking, alliances - marketer responses relationship mktg, lifetime
value, cust-share, target-mktg, individualized,
databases, integrated mktg, channel
partnerships, everyone is marketer, fact-based
decision
11C2adapting marketing
- optimizing effort
- response curves
- equate marginal returns for all efforts
RESPONSE
saturation
Marginal Response
1
threshold
EFFORT
125. inthe new economy
- hybrid economy
- different activitiessubcontract, keep core,
benchmark, partner, multi-functional, new
advantages, intangibles, information, consumer
groups vs products - old vs new economyrelationships, information
136. major drivers of the n.eco
- A. tech.y, globalization, deregulation
- B. specific drivers
- digitalization and connectivity
- disintermediation and reintermediation
- customization and customerization
- industry convergence
- industry boundaries are blurring rapidly
- there are several examples of this
- new opportunities at the intersection
147. business practices change
- old economy business beliefs
- new economy business beliefs
- the new hybrid
157. business practices change
168. marketingchange
- e-business, e-commerce, e-purchasing,
e-marketing - b2b, b2c, c2c, c2b, search engines
- why did dot-coms fail?
179. setting up websites
- move to emarketing, epurchasing
- design an attractive site context, content,
community, customization, communication,
connection, commerce - build a revenue, profit model advertising,
sponsorship, alliance, membership, profile,
sales, transactions, research/info, referral
1810. CRM
- A. CRM database marketing
- realtime service
- customize
- reduce defections
- inc. longevity
- inc. share of wallet
- improve/terminate low-profit customers
- focus on high value customers
1910. CRM
2010. CRM
- B. data warehouses data mining
- capture information at all touchpoints
- use the database
- downsidehigh investment, not everyone usesnot
everyone want relationships - privacy/security concerns
21C3value, satisfaction,
- there can be no satisfaction!
- affect? behavior? cognition?
- just use loyalty? referral?
- value maps
- perceived performance price
- fair value line
22C3value, satisfaction,
performance
FAIR VALUE LINE
price
2311. define value, satisfaction
- perceived valueperceived performance, cost
- customer satisfactionexpectation, value
proposition, experience
2412. high performance
- stakeholders
- processes
- resources
- culture
- profits
- patrons
- process(resources
- people
- balanced scorecard
2513. delivering value
- value chain
- value delivery network (supply chain)
2614. attract/retain customers
- attract customers
- cost of lost customers
- retain customers
- use CRM, build equity 4. value, brand,
relationship equity 3. basicgtreactivegtaccountable
gt proactivegt
partnership - strengthen bonds financial, social, structural
2716. implement TQM
15. customer profitability
- measure which customers are profitable?
- quality is key
- mktg has a bigger role id.needs, communicate,
logistics, cust.education, in touch, ideas
28C4 strategic planning
S110, W80, O120, T70 SO110120132,
ST77, WO88, WT56
29C4 strategic planning
B. Strategy and Causality
population
treatment
random sample
not
- if behaviors are unequal, cause is treatment,
when control group and treatment group are
exactly alike - how can you build strategy if you dont know
causes?
3017. 3 key areas, 4 levels
- key areas business as investments assessment
of growth, competn strategy for each business
(unit) - organizational levels corporate, division,
unit, product - marketing plan situation, strategy, specifix,
success
3118. corporate/division plans
- mission us? them? value? will, should be?
- organize business units groups, needs,
technology unique, competitor/profit variables - BCG ??, , , xx
- GE model
- intensive, integrative, diversificatn growth
3218C,D corp./div. plans
stars
???
growingmarket stagnantmarket
cow
dogs
bcg ge
hi-share lo-share
marketattractiveness
business strength
3318E. corp./div. plans
- integrative growth
- backward, horizontal, forward
- intensive growth
- market penetration, market development,product
development - diversification growth
- concentric, horizontal, conglomerate
3419. business strgic planning
- mission
- SWOT - internal, external environments
- goals - priorities, specific, realistic, good
- strategy
- low cost, differentiate, focus
- is operational effectiveness sufficient?
- strategic marketing alliances
- program formulation implementation
- feedback/control
- change happens, effectiveness vs. efficiency
3520. the marketing process
- The Value-Delivery Sequence
- Steps in the Marketing Process
- Product Planning The Contents of a
Marketing Plan - Executive Summary and Table of Contents
- Current Marketing Situation 4C
- Opportunity Issue Analysis SWOTIssues
- Objectives (Financial, Marketing)
- Marketing Strategy STP
- Action Programs 4P
- Financial Projections
- Controls
3621. managing the process
- organize the department functional, geographic,
product market, product-market,
corporate-divisional, global - build a marketing orientation
- creativity
- implementation
- evaluation/control annual, profit, efficiency,
strategic
37C5 markets, demand, envt
- reliabilityconsistency
- measure many times
- multiple-item scales
- statistical analysese.g., correlationamong items
- validity
- accuracy, correctness
- check for validity
- face/content validity does it look right?
- concurrent validity does it relate to what it
should relate to? - discriminant validity does it tell different
groups apart? - predictive validity what is its track record?
valid
reliable
3822. what to watch?
- wants, preferences, behaviors
- shifts, non-price competition, tech
- info needs changing
3923. information, intelligence
- more info more better (MIS)
- input info insight integrate
- internal records
- mktg intelligence
- mktg research systematic, suppliers,
steps define, design, gather data, analyze,
present use - mktg decision support systems
4024. forecast demand
- which market? potential, available, served,
penetrated - demand measurement demand, minimum potential
- company demand
- estimate current demand
- estimate future demand macro, micro, methods
4125. macro environment
- trend spotting
- demographics
- economy
- natural
- technological
- political/legal
- social cultural
- shifts of secondary values
42C6 analyze consumers
- are you a computer?
- Rb is not the same as Ra Rb reasons before
Ra reasons after - everyone escalates
- reactance, consistencyclosure, framing
- unanticipated discoveries, hunger?
purchase
time
4326. how/why you buy
- cultural factors cultures, sub-cultures,
social class - social factors
- reference groups membership, opinion
leader, family of origin and procreation,
roles/status - personal factors
- age, lifecycle, family lifecycle,
- occupation and economic situation
- lifestyle, psychographics (VALS)
- personality, brand personality, self-concept
- sincerity, excitement, competence,
sophistication, ruggedness
4426. how/why you buy
- psychological factors
- motivation
- Freud sex sells ?!, laddering
- Maslow hierarchy of needs actualization,
belonging, competence - Herzberg satisfiers (become) dis-satisfiers
- perception
- selective attention, selective distortion,
selective retention - learning
- beliefs and attitudes
4527. buying decision process
- buying roles (initiate, influence
- buying behaviors involve, diffs complex,
dissonance, hh, hl variety seeking,
habitual lh, ll - stages problem recognition search
DMM evaluation purchase post-purchase - gauging customer satisfaction measure, reduce
complaints
46DMM decision-making-matrix
pages 206-207
47C7 analyze customers
- is business entertainment ethical?
- international business decisions?become same?
more different?
4828. organizational buying
- consumers v customers fewer, bigger,
professional buyers inelastic, fluctuating,
derived demand - specialized markets institutional, government
- business buying situations straight rebuynew
task systems buying selling
4929. participants in b.buying
- buying center initiators, users
- major influence envt, orgzn, interpersonal,
indiv. - cultural influence, different
customs become same? more different?
5030. purchasing process
- problem recognition
- need description, specifications
- supplier search
- proposal solicitation
- supplier selection
- order routine specification
- performance review
51C8 dealing with competition
- what do you choose first brand or form?
- brand share vs. form share?
52C8 dealing with competition
form-first vs brand-first
insurance
insurance
Allstate? Allstate?
web?1-800?
5331. competitive markets
- market attractiveness (5forces
- identify competitors brand, industry, form,
generic - industry concept of competition sellers/buyers,
entry-exit barrier, cost structure, vertical
integration, globalization - market concept of competition same need
satisfied? substitutes?
5432. competitor analysis
- strategies
- objectives
- strengths, weaknesses dominantweak,
nonviable share of mind heart ? market - reaction patterns
5533. competitive intelligence
- design the system setup, collect, evaluate,
disseminate - select competitors to attack/avoid customer
value analysis classes strongweak,
closedistant goodbad
5634. design comp. strategies
- market leaders expand market, defend, share
- market challenger objectives opponents,
attack - market follower imitation clone, adapt
- market nicher specialize, margin not volume
- be customercompetitor focused
57topics for final exam
situation strategy specifics
success
58C9 identifying segments
- why segment?
- increase effectiveness and efficiency
- segments must be
- homogeneous within
- heterogeneous across
- too many mixes means too much cost
- too few mixes means too much dissatisfaction
efficient effective
buyers
inefficient
non-buyers
ineffective
5935. buyers differ
- Segment marketing
- Niche marketing
- Local marketing
- Individual marketing
- Segmentation patterns
- Process survey, analyze, profile
- Effective Segmentation measurable, substantial,
accessible, differentiable, actionable
6036. segmenting markets
- consumer markets
- geographic
- demographic
- psychographic
- behavioral
- occasions, benefits, user-statususage rate,
loyalty, readiness,attitude - multiattribute geoclustering
6136. segmenting markets
- B. business markets
- stage in purchase decisionchannel preference
- type of buyerprogrammed, relationship,transactio
n, bargain hunters - buyer groupstransactional, consultative,enterpri
se
6237. targeting strategies
- evaluate/select segments
- single segment
- selective specialization
- product specialization
- market specialization
- full market coverage
- targeting multiple segments
- ethical choice of market targets
63C10 developingproducts
- humanize product design
- implicit models
- feedback
- expert / novice modes
- smarter interfaces
- smarter products
6438. challenges in NPD
- types of new productsnew new, new product lines,
additions,revisions, re-positionings,
reductions - why they fail or succeed90 fail,
-overestimates, -design,-incorrect positioning,
-costs, -competnknow consumers, value, head
start,contribution margin, budget, teamwork,
top-mgmt support
6539. managing new products
- idea generation
- idea screening
- concept development, testing
- strategy development mix, long run sales
profit goals - business analysis estimate sales, costs,
profits
6640. managing new products
- product development
- market testing consumer goods sales-wave,
simulated store, controlled, test markets
business goods alpha, beta, trade-shows - Commercialization when, where, to whom, how
6740. managing new products
- Why does prolonging the fuzzy front end reduce
the length of the new product development?
FFE1-5
BE6-8
NPD
6841. adoption process
- stages in adoptionawareness, interest,
evaluation, trialadoption - factors affecting itreadiness, personal
influence,innovation characteristics,
organizational buying readiness
6942. product life cycle
- plc intro, growth, maturity, decline
- introductionrapid/slow skimming/penetrationpione
ering advantage (questionablecompetitive cycle
solecommoditydie - growth place-to serve demand
- maturitychange mkt, product, mix
- decline inc/dec inv., harvest, divest, drop?
7042F. critique
- poor for forecasting
- okay for planning control
- what stage are you in?
- dependent on managers? or
- independent of managers?
- rapid cycles today, manage across
7143. positioning/differentiation
- two views consumer mind, value disciplines
- how many ideas to promote?
- communicate the positioning
- add further differentiation
- differentiation toolsproduct, service,
personnel, channel,image
72C11. product/brand strategy
- private labeling
- extending your brand name
- consistent category, quality, consumer
retailer
manufacturer
consumer
7344. product, product mix
- product levelscore, basic, expected, augmented,
potential - product classificationsdurability nondurable,
durableconsumer convenience,
specialtybusiness materials, capital items - product mixlength, depth, consistency
7444c. product mix
linelength
item
7545. product line decisions
- product line analysissales/profits market
profile - product line length down/up-market, 2way,
filling (jnd - line modernizationupdating, featuring, pruning
jnd1
7646. branding
- what is a brand?attributes, benefits, value,
culture, personality, user - brand equityswitchergtsatisfiedgtswitching-costsgt
friendgt devoted - branding challenges2b/x2b? sponsor, name,
extensions, multibrands, audit reposition
7747. packaging and labeling
- packaginglevels of materialpromo
value selfserviceimageinnovation - labeling legal concerns
- how can packaging affect all 4Ps?
78C12 services
- can services be off-shored?
7948. nature of services
- categories of services
- characteristics
- intangible
- inseparable
- variable (inconsistent)
- perishable (impossible to inventory)
goods
services
8048bservices
- Intangible
- Inseparable
- Inconsistent
- Inventoryless
tangibilize differentiatemanage point of
contact moment of truth hire, train,
motivate, standardizechange supply-sidechange
demand-side
8149. service strategies
- managing differentiation
- service quality
- provide better quality
- eliminate gaps (SERVQUAL
- RATER reliability, assurance, tangibles,
empathy, responsiveness - excellencecustomer obsessed, commitment,
self-service, monitoring, manage complaints,
employees satisfaction - productivity
8249. SERVQUAL
Personal needs
Word-of-mouth communications
Past experience
consumer
Expected service
Gap 5
Perceived service
Service delivery (including pre- and
post-contacts)
External communi- cations to consumers
Gap 1
Gap 4
producer
Gap 3
Translation of perceptions to service-quality
specifications
Gap 2
Management perceptions of consumer expectations
8350. product support services
- presale
- post-sale
- trendsmore reliability, unbundling, 3rd party,
contracts, more choices, quality of call centers,
better trained service representatives
84C13. pricing
- behavioral pricingbuy now pay more laterpay
now, use less later?is a dollar a dollar?why
pay more with credit cards? - legal issueno price discrimination,no
horizontal/vertical price fixingno
bait-and-switch - break-even
85C13. break even quantity
TR
/units
TC
VC
FC
units
10K 20K 30K 40K 50K 60K 70K 80K
pages 482
86C12. break even quantity (contd)
TR
/units
TC
FC
units
10K 20K 30K 40K 50K 60K 70K 80K
8751. setting the price
- select the objective survival, profit, share,
skim, other - determine the demand sensitivity, demand,
elasticity - estimate costs
- analyze competitors
- select pricing method markup, target return,
perceived value, value, going rate, auction,
group - select final price
8851F. selecting final price
- psychological pricingprice-quality, reference
price, odd-even - gain and risk sharing
- marketing mix influence
- pricing policies
- price impact on other parties
8952. adapting the price
- geographical pricing
- price discounts
- promotional pricing
- discriminatory pricingsegment, form, image,
channel, time - product mix pricingproduct line, optional
feature, captive-product, two-part, byproduct,
bundling
9053. initiating/responding
- initiating cutsexcess capacity, dominate market
- initiating increasescost inflation,
anticipatory, over-demand - reactions to price change
- respond to competitors changes
9153E. strategic options
- price, quality, cut customers
- price, quality
- price, quality
- price, quality
- - -price, quality
- - -price, -quality
- price, -quality
- new low price model
92C14. channels
- push versus pull
- you can eliminate a channel member but not the
function
pull
producer
customer(retailer)
consumer
push
push
9354. marketing channel system
- value network
- upstream vs downstream emphasis
- awareness of where problems occur
- online development with partners
- marketing channels
- interdependent organizations
- distributes goods and/or services
- hybrid channels today online, direct, indirect
- consumers want channel integration
9455. what workchannels do
- smooth flow of goods/services, save money
time through specialization - channel functions
- channel levels
- service sector channels
- i-waybandwidth, extranets, intranets
9556. channel design
- customers desired service outputlot size, wait,
space, variety, service - objectives constraints
- identify alternatives type, exclusive,
selective, intensive - evaluate alternatives
9657. channel management
- selecting members
- training them
- motivating thempartnerships, long-term
programming - evaluating them
- modifying arrangements
9758. channel dynamics
- vertical marketing systems
- corporate and administered
- contractual (franchises, etc
- systems compete, not companies
- horizontal marketing systems
- multichannel marketing systems
9858. channel dynamics
- conflict, cooperation, competition
- types of conflictvertical, horizontal,
multichannel - causesgoal incompatibility, unclear
roles/rights, differences in perception,
overdependence - managing conflictsuperordinate goals, exchange
people,joint membership, mediation/arbitration
9958. channel dynamics
- legal and ethical issues
- exclusive dealing
- exclusive territories
- tying agreements
- dealers rights
100C16. integrated marcom
- communication is a human activity!
- does communication work better when the receiver
and sender are alike (homophily) or when they are
different (heterophily)? - are attractive spokespeople more credible?
- how do you decide on the right campaign among the
several you have designed?
10159. develop communications
- identify target audience
- image analysis familiar/favorable
- image content semantic differential
- communication objectives
- cognitive, affective, behavioral
- hierarchy of effectsaware, know, like,
preference, conviction and purchaseAIDAaware,
interest, desire, action
10259. develop communications
- design the message
- contentrational, emotional, moral appeal
- structure one/two sided argument
- format
- sourceexpertise, trustworthy, likableattractive
10359. develop communications
- select channelpersonal, non-personal
- establish budgetaffordable, percentage of
sales,competitive-parity, objective and task - select mixpromotional tools (ad, sales promo,
pr, selling, direct)based on product, buyer
readiness, product life cycle stage
10459. develop communications
- measurerecognition, recall, attitudes
- manage the integrated marcomcomprehensive
planstrategic roles of different typescombine
types for clarity, consistency and impact
10560. advertising campaigns
- set the objectivesinform, remind, persuade
- decide budgetplc stage, share, clutter,
frequency, substitutability - choose messagegenerate message, evaluate,
execute, review social responsibility
10660. advertising campaigns
- media strategies
- reach, frequency, impact
- select media vehicles
- decide on timing macro/micro-schedule,
timing - evaluate advertising effectiveness
- communication effect, sales effect, effectiveness
pulse
blitz
10761. sales promotion
- purposeattract new triers, reward loyal
consumers, increase repurchase, attract brand
switchers, short run gains for similar brands - major decisionsestablish objectives, select
tools, develop programs, test/implement, evaluate
sales
time
promotion
10862. public relations
- marketing pr
- major decision
- establish objectives
- choose message and vehicles
- implement and evaluate plan
- exposures, awareness/attitude change
- best sales/profit impact
10963. direct marketing
- explosive growth
- benefits focus and timing, demassification
- integrated direct marketing
- major channels sellers, direct mail, catalog,
telemarketing, direct response TV ads, kiosk,
e-marketing blanketing, databased,
interactive, personalized, lifetime value
based
110conclusions
- analyze each partprocess
- 4C are the players
- strategy is C3C midterms
- marketing strategy is STP
- specimix specify mixes finals
111topics for final exam
situation strategy specifics
success