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CoremarketingconceptmarketsExchange,transactionsandrelationshipsNeedswantsdemandsProductsValuesatisfactionqualityMarketingRelationshipmarketingTheprocessofcreating,maintaining,andenhancingstrong,value-ladenrelationshipswithcustomersandotherstakeholders.CustomerAcustomeristhemostimportantpersoneverinthiscompany--inpersonorbymail.Acustomerisnotdependentonus,wearedependentonhim.Acustomerisnotaninterruptionofourwork,heisthepurposeofit.Wearenotdoingafavorbyservinghim,heisdoingusafavorbygivingustheopportunitytodoso.Customer
Acustomerisnotsomeonetoargueormatchwitswith---nobodyeverwonanargumentwithacustomer.Acustomerisapersonwhobringsushiswants--itisourjobtohandlethemprofitablytohimandtoourselves.DefiningthecompanymissionSettingcompanyobjectivesandgoalsDesigningthebusinessportfolioPlanning,marketingandotherfunctionalstrategiesBusinessunit,product,andmarketlevelCorporatelevel--StepsinstrategicplanningSource:MarketingRelativemarketshareHighLow
HighLowMarketgrowthrateStarQuestionmarkCashcowDogStarsStarsarehigh-growth,high-sharedbusinessorproducts.Theyoftenneedheavyinvestmenttofinancetheirrapidgrowth.Eventually,theirgrowthwillslowdown,andtheywillturnintocashcows.MarketingCashcowsCashcowsarelow-growth,high-sharebusinessesorproducts.TheseestablishedandsuccessfulSBUsneedlessinvestmenttoholdtheirmarketshare.Thus,theyproducealotofcashthatthecompanyusestopayitsbillsandtosupportotherSBUsthatneedinvestment.QuestionmarksQuestionmarksarelowsharebusinessunitsinhigh-growthmarkets.Theyrequirealotofcashtoholdtheirshare,letaloneincreaseit.Managementhastothinkhardaboutwhichquestionmarksitshouldtrytobuildintostarsandwhichshouldbephasedout.DogsDogsarelow-growth,low-sharedbusinessandproducts.Theymaygenerateenoughcashtomaintainthemselves,butdonotpromisetobelargesourcesofcash.CompetitorsPublicsMarketingchannelssuppliersTargetconsumersPlacePriceProductPromotionMarketinganalysisMarketingplanningMarketingimplementationMarketingcontrolDemographic-economicenvironmentTechnologicalnaturalenvironmentSocialculturalenvironmentPolitical-legalenvironmentFactorsinfluencingcompanymarketingstrategyMarketingMarketingsegmentationDividingamarketintodistinctgroupsofbuyerswithdifferentneeds,characteristics,orbehaviorwhomightrequireseparateproductsormarketingmixes.marketingProductProductvarietyQualityDesignFeaturesBrandnamePackagingSizesServicesWarrantiesReturnsPriceListpriceDiscountsAllowancesPaymentperiodCredittermsPlaceChannelsAssortmentsLocationsInventoryTransportationLogisticsPromotionAdvertisingPersonalsellingSalespromotionPublicrelationsTARGETCUSTOMERSINTENDEDPOSITIONINGThefourPsofthemarketingmixMarketingANALYSISPlanningDevelopstrategicplansDevelopingmarketingplansImplementationCarryouttheplansControlMeasureresultEvaluateresultTakecorrectiveactionTherelationshipbetweenanalysis,planing,implementation,andcontrolMarketingContentsofamarketingplan1.Executivesummary Presentsabriefoverviewoftheproposedplanforquickmanagementreview2.Currentmarketingsituation
Presentsrelevantbackgrounddataonthemarket,productcompetitionanddistribution.3.Threatsandopportunityanalysis
Identifiesthemainthreatsandopportunitiesthatmightimpacttheproduct.4.ObjectivesandissuesDefinesthecompany’sobjectivesfortheproductintheareasofsales,marketshare,andprofit,andtheissuesthatwillaffecttheseobjectives.5.MarketingstrategyPresentsthebroadmarketingapproachthatwillbeusedtoachievetheplan’sobjectives.6.ActionprogramsSpecifieswhatwillbedone,whowilldoit,whenitwillbedone,andhowmuchitwillcost.7.BudgetsAprojectedprofitandlossstatementthatforecaststheexpectedfinancialoutcomesfromtheplan.8.ControlsIndicateshowtheprogressoftheplanwillbemonitored.
SetgoalsWhatdowewanttoachieveMeasureperformancewhatishappeningEvaluateperformanceWhyisithappeningTakecorrectiveactionWhatshouldwedoaboutitMarketingcontrolprocessMarketingMarketingintermediariesFirmsthathelpthecompanytopromote,sell,anddistributeitsgoodstofinalbuyers;theyincluderesellers,physicaldistributionfirms,marketingservicesagencies,andfinancialintermediaries.DemographyThestudyofhumanpopulationsintermsofsize,density,location,age,gender,race,occupation,andotherstatistics.MarketingMarketingmanagersAnalysisPlanningImplementationOrganizationControlMarketingenvironmentTargetmarketsMarketingchannelsCompetitorsPublicsMacro-environmentforcesInternalrecordsAssessinginformationneedsMarketinginformationsystemDevelopinginformationMarketingintelligenceDistributinginformationInformationanalysisMarketingresearchMarketingdecisionsandcommunicationsMarketingCulturalculturesubculturesocialclassSocialreferencefamilyrolesandstatusPersonalageandlifecyclestageoccupationeconomicsituationlifestylepersonalityandself-conceptPsychologicalmotivationperceptionlearningbeliefsandattitudesBuyerFactorsinfluencingconsumerbehaviorMarketingCharacteristicsofSevenMajorAmericanSocialClassesUpperuppersUpperuppersarethesocialelitewholiveoninheritedwealthandhavewell-knownfamilybackgrounds.Theygivelargesumstocharity,rundebutanteballs,ownmorethanonehome,andsendtheirchildrentothefinestschools.Theyareamarketforjewelry,antiques,home,andvacations.Theyoftenbuyanddressconservativelyratherthanshowingofftheirwealth.Whilesmallinnumber,upperuppersservesasareferencegroupforothers.Lessthan1percentLoweruppersLoweruppershaveearnedhighincomeandwealththroughexceptionalabilityintheprofessionorbusiness.Theyusuallybegininthemiddleclass.Theytendtobeactiveinsocialandcivicaffairsandbuyforthemselvesandtheirchildrenthesymbolsofstatus,suchasexpensivehomes,education's,swimmingpools,andautomobiles.Theyincludethenewrichwhoconsumeconspicuouslytoimpressthosebelowthem.Theywanttobeacceptedintheupper-upperstratum,astatusmorelikelytobeachievedbytheirchildrenthanthemselves.About2percentUppermiddlesUppermiddlespossessneitherfamilystatusnorunusualwealth.Theyareprimarilyconcernedwith“career.”theyhaveattainedpositionsasprofessionals,independentbusinesspersons,andcorporatemanagers.Theybelieveineducationandwanttheirchildrentodevelopprofessionaloradministrativeskills.Theyarejoinersandhighlycivic-minded.Theyarethequalitymarketforgoodhomes,clothes,furniture,andappliances.12percentMiddleclassesThemiddleclassismadeupofaverage-paywhite-andblue-collarworkerswholiveonthebettersideoftownandtrytodotheproperthings.Tokeepupwiththetrends,theyoftenbuyproductsthatarepopular.Mostareconcernedwithfashion,seekingthebetterbrandnames.Betterlivingmeansowninganicehomeinaniceneighborhoodwithgoodschool.Theybelieveinspendingmoremoneyonworthwhileexperiencesfortheirchildrenandaimingthemtowardacollegeeducation.32percentWorkingclassesTheworkingclassconsistsofthosewholeada“workingclasslifestyle,”whatevertheirincome,schoolbackground,orjob.Theydependheavilyonrelativesforeconomicandemotionalsupport,foradviceonpurchases,andforassistanceintimesoftrouble.Theworkingclassmaintainssharpersexroledivisionsandstereotyping.38percentUpperlowersUpperlowersareworking(arenotonwelfare),althoughtheirlivingstandardisjustabovepoverty.Theyperformunskilledworkforverypoorpayalthoughtheystrivetowardahigherclass.Often,upperlowerslackeducation.Althoughtheyfallnearthepovertylinefinancially,theymanageto“presentapictureofself-discipline”and“maintainsomeeffortatcleanliness”.9percentLowerlowersLowerlowersareonwelfare,visiblypovertystricken,andusuallyoutofworkorhave“thedirtiestjob”.Often,theyarenotinterestedinfindingajobandarepermanentlydependentinpublicaidorcharityforincome.Theirhomes,clothes,andpossessionsare“dirty”,“raggedy,”and“broken-down”.7percentSelf-actualizationneeds
self-developmentandrealizationEsteemneeds
self-esteem,recognition,statusSocialneedssenseofbelongings,loveSafetyneedssecurity,protectionPhysiologicalneeds
hunger,thirstMaslow’shierarchyneedsMarketingPerceptionTheprocessbywhichpeopleselect,organizeandinterpretinformationtoformameaningfulpictureoftheworld.MarketingStagesintheAdoptionProcessAwarenessTheconsumerbecomesawareofthenewproduct,butlacksinformationaboutit.InterestTheconsumerseeksinformationaboutthenewproduct.EvaluationTheconsumerconsiderswhethertryingthenewproductmakessense.TrialTheconsumertriesthenewproductonasmallscaletoimprovehisorherestimateofitsvalue.AdoptionTheconsumerdecidestomakefull,regularuseofthenewproduct.131/2%Earlyadopters34%Earlymajority34%Latemajority16%laggards21/2%InnovatorsTimeofadoptionofinnovationsSource:MarketingEnvironmentallevelofprimarydemandeconomicoutlookcostofmoneysupplyconditionsrateoftechnologicalchangepoliticalandregulatorydevelopmentscompetitivedevelopmentsOrganizationalobjectivespoliciesproceduresorganizationalstructuresystemsInterpersonalauthoritystatusempathypersuasivenessIndividualageeducationjobpositionpersonalityriskattitudesBuyersMajorinfluencesonbusinessbuyerbehaviorMarketingProcter&Gamble’ssegmentsTide:Is“sopowerful,itcleansdowntothefiber.”It’stheall-purposefamilydetergentforextra-toughlaundryjobs.“tide’sin,dirt’sout.”Tidewithbleachis“sopowerful,itwhitensdowntothefiber.”48CheerwithColorGuard:Gives“outstandingcleaningandcolorprotection.Soyourfamily’sclotheslookclean,bright,andmorelikenew.”cheerisalsospeciallyformulatedforuseinhot,warm,orcoldwater---it’s“alltempera-cheer.”Cheerfreeis“dermatologisttested…..containsnoirritatingperfumeordye.”
Bold:Isthedetergentwithfabricsoftener.It“cleans,softens,andcontrolsstatic.”boldliquidadds“thefreshfabricsoftenerscent.”Gain:OriginallyP&G’s“enzyme”detergent,wasrepositionedasthedetergentthatgivesyouclean,fresh-smellingclothes---it“freshenslikesunshine.”Era:Has“built-instainremovers.”it“getstoughstainsoutanddoesagreatjobonyourwholewashtoo.”Oxydol:Containsbleach.It“makesyourwhiteclothesreallywhiteandyourcoloredclothesreallybright.Sodon’treachforthebleach---grababoxofOX!”Solo:Containsdetergentandfabricsoftenerinliquidform.It’stargetedheavilytowardtheNortheast,astrongliquiddetergentmarket.Dreft:Isalsoformulatedforbaby’sdiapersandclothes.Itcontainsborax,“nature’snaturalsweetener”for“acleanyoucantrust.”Ivorysnow:Is“Ninety-nineandforty-fouronehundredthspercent”it’sthe“mild,gentlesoapfordiapersandbabyclothes.”Ariel:IsatoughcleanertargetedtotheHispanicmarket.It’salsothenumberonebrandinMexicoandP&G’smajorbrandinEurope.1.Identifybasesforsegmentingthemarket.2.Developprofilesofresultingsegments3.Developmeasuresofsegmentattractiveness4.Selectthetargetsegment(s)5.Developpositioningforeachtargetsegment6.DevelopmarketingmixforeachtargetsegmentMarketsegmentationMarketpositioningSource:MarketingMajorSegmentationVariablesforConsumerMarketGeographicWorldregionorcountryNorthAmerica,WesternEurope,MiddleEast,PacificRim,China,India,Canada,Mexico.CountryregionPacific,Mountain,WestNorthCentral,WestSouthCentral,EastNorthCentral,EastSouthCentral,SouthAtlantic,MiddleAtlantic,NewEngland.CityormetrosizeUnder5,000;5,000--20,000;20,000--50,000;50,000--100,000;100,000--250,000;250,000--500,000;500,000--1,000,000;1,000,000--4,000,000;4,000,000oroverDensityUrban,suburban,ruralClimateNorthern,southernDemographicAgeUnder6,6-11,12-19,20-34,35-49,50-64,65+GenderMale,FemaleFamilysize1-2,3-4,5+FamilylifestyleYoung,single,young,married,nochildren,young,marriedwithchildren;older,marriedwithchildren;older,married,nochildrenunder18;older,single;otherIncomeUnder$10,000;$10,000--$20,000;$20,000--$30,000;$30,000--$50,000;$50,000--$100,000;$100,000andoverOccupationProfessionalandtechnical;managers,officials,andproprietors;clerical,sales;craftspeople;foremen;operatives;farmers;retired;students;homemakers;unemployedEducationGradeschoolorless;somehighschool;highschoolgraduate;somecollege;collegegraduateReligionCatholic,Protestant,Jewish,Muslim,Hindu,otherRaceWhite,AfricanAmerican,Asian,HispanicNationalityNorthAmerican,southAmerican,British,French,German,Italian,JapanesePsychographicSocialclassLowerlowers,upperlower,workingclass,middleclass,uppermiddles,loweruppers,upperuppersLifestyleAchievers,strivers,strugglersPersonalityCompulsive,gregarious,authoritarian,ambitiousBehavioralOccasionsRegularoccasion,specialoccasionBenefitsQuality,service,economy,convenience,speedUsersstatusNonusers,ex-user,potentialusers,first-timeusers,regularusersUsagerateLightusers,mediumusers,heavyusersLoyaltystatusNone,medium,strong,absoluteReadinessstageUnawareness,aware,informed,interested,desirous,intendingtobuyAttitudetowardproductEnthusiastic,positive,indifferent,negative,hostileProductdifferentiationServicesdifferentiationPersonneldifferentiationImagedifferentiationIdentifyPossibleCompetitiveAdvantagesMarketingCorebenefitorserviceAfter-saleserviceWarrantyDeliveryandcreditInstallationpackagingFeaturesDesignQualitylevelBrandnameAugmentedproductActualproductCoreproductThreelevelsofproductsSource:MarketingSalesandprofits($)Losses/investment($)IntroductionProductdevelop-mentstageGrowthMaturityDeclineTimeProfits0SalesSource:MarketingSalesLowsalesRapidlyrisingPeaksalesDecliningsalessales
CostHighcostperAveragecostLowcostLowcostcustomerpercustomerpercustomerpercustomerProfitsNegativeRisingprofitsHighprofitsDecliningprofitsCharacteristicsCustomersInnovatorsEarlyadoptersMiddlemajorityLaggardsCompetitorsFewGrowingnumberStablenumberDecliningbeginningtonumberdeclineCharacteristicsMarketingObjectivesCreateproductMaximizeMaximizereduceandtrialmarketshareprofitwhileexpendituredefendingandmilkmarketsharethebrandStrategiesProductOfferabasicOfferproductDiversifyPhaseproductextensions,brandandout
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