Which are, in your opinion, the most important strengths and weaknesses of the innocent brand? Why do so many new products fall? The single greatest reason Is not matching customer needs or wants Product offers no real benefits, they are not clear or they are not understood or valued by the target customers Not new- not different enough Price is out of line with perceived benefits = poor perceived value.
Weak positioning strategy – benefits already covered by competitors Poor branding Wrong or too small a target group Under-investment in marketing and sales efforts Poor implementation of the marketing plan in the real world Underestimating response of competitors Poor timing Lack of distribution Lack of patience Marketing Plan Process Market segmentation refers to dividing the markets into segments of customers
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Target marketing refers to which segments to go after Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization should therefore devote its energy to making continuous product improvements.
Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do Societal racketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society long-run interests The marketing mix: set of tools (four AS) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place.
Integrated marketing program: comprehensive plan that communicates and delivers the intended value to chosen customers. Customer Relationship Management (CRM) The overall process of building and maintaining profitable customer relationships by levering superior customer value and satisfaction Partner relationship management involves working closely with partners in other company departments and outside the company to Jointly bring greater value to customers products to final buyers Supply chain management Creating Customer Loyalty and Retention Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage Stew Lemonade’s is an interesting example.
Stew Leonard, who operates a highly profitable four-store supermarket in Connecticut and New York, says that he sees 50,000 flying out of his store every time he sees a sulking customer. Why? Because his average customer spends about $100 a week, shops 50 weeks a year, and remains in the area for about 10 years. If the marketing process, the company creates value for target customers and builds strong relationships with them. To keep customers coming back, Stew Lemonade’s has created the “Disneyland of dairy stores. ” Rule I-??the customer is always right. Rule 2-??if the customer is ever wrong, reread Rule 1 . You can find videos of Lemonade’s stores on youth. Com which will give the students an idea of the atmosphere.
Building Customer Equity Right relationships with the right customers involves treating customers as assets that need to be managed and maximized Different types of customers require different relationship management strategies People are connected continuously to people and information worldwide Marketers have great new tools to communicate with customers Internet + mobile communication devices creates environment for online marketing Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities Developing Strategies for Growth and Downsizing Market penetration is a growth strategy increasing sales to current market segments without changing the product Market development is a growth strategy that identifies and develops new market segments for current products Product development is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets Downsizing is the reduction of the business portfolio by eliminating products or business units that are not refillable or that no longer fit the company’s overall strategy Marketing alone can’t create superior customer value.
Under the company-wide strategic plan, marketers must work an effective internal company value chain and with other companies in the marketing system to create an overall external value delivery network that jointly serves customers. Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system Consumers stand in the center. The goal is to create value for customers and build profitable customer relationships. Next comes marketing strategy-??the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships.
The company decides which customers it will serve (segmentation and targeting) and how (differentiation and positioning). It identifies the total market, then divides it into smaller segments, selects the most promising segments, and focuses on serving and satisfying the customers in these segments. Guided by marketing strategy, the company designs an integrated marketing mix made up of factors under its control-??product, price, place, and promotion (the four AS). To find the best marketing strategy and mix, the company engages in marketing analysis, planning, implementation, and control. Through these activities, the company watches and adapts to the actors and forces in the marketing environment.
Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing mixes Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts Market targeting is the process of evaluating each market segment’s attractiveness and electing one or more segments to enter Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer Marketing mix is the set of controllable tactical marketing tools-??product, price, place, and promotion-??that the firm blends to produce the response it wants in the target market It is interesting to ask how to make the ups more customer centric. This leads to a redefining of the ups to the ACS as follows: Product-??customer solution Price-??customer cost Place-??convenience Promotion-??communication
SOOT analysis: Managing the Marketing Fortunetelling’s is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives Successful implementation depends on how well the company blends its people, organizational structure, decision and reward system, and company culture into a cohesive action plan that supports its strategies Functional organization: This is the most common form of marketing organization with different marketing functions headed by a functional specialist. Geographic organization: Useful for companies that sell across the country or internationally. Product management: Useful for companies with different products or brands. Managers are responsible for developing strategies and plans for a specific product or brand.
Market or customer management organization: Useful for companies with one product line sold to many different markets and customers. Managers are responsible for developing strategies and plans for their specific markets or customers. Customer management involves a customer focus and not a product focus for managing customer profitability and customer equity. Controlling is the measurement and evaluation of results and the taking of corrective action as needed to ensure the objectives are achieved. Operating control Strategic control Operating control involves checking ongoing performance against an annual plan and taking corrective action as needed.
Strategic control involves looking at whether the company’s basic strategies are well matched to its opportunities. Return on marketing investment (Marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI provides a measurement of the profits generated by investments in marketing suggestiveness’s return on marketing investment has come a major marketing emphasis. But it can be difficult. For example, a Super Bowl ad reaches more than 100 million consumers but may cost as much as $3 million for 30 seconds of airtime. How do you measure the specific return on such an investment in terms of sales, profits, and building customer relationships? . Environmental Scanning The process of constantly acquiring information on events outside the organization to identify trends which may impact its success 1 . This slide demonstrates the continuous evolution in the external marketing environment. The external environmental factors include demographics, social hang, economic conditions, political and legal factors, technology, and competition. The external environment can not be controlled by management. However, the marketing mix (the Four AS) can be controlled and reshaped to influence the target market. 2. The target market is a defined group that is most likely to buy a firm’s products.
The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers Micromanagement consists of the actors close to the company that effect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics Suppliers Provide the resources to produce goods and services Treat as partners to provide customer value Marketing Intermediaries Help the company to promote, sell and distribute its products to final buyers The text explains how Coke delivers value for their marketing intermediaries: They understand each retailer partner’s business The conduct consumer research and share with partners They develop marketing programs and merchandising for partners Types of Marketing Intermediaries Resellers are distribution channel firms that help the company find customers or make sales to them. Physical distribution firms help the company stock and move goods from their points of origin to their destinations. Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets. Insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods. Competitors
Firms must gain strategic advantage by positioning their offerings against competitors’ offerings Publics Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives Financial publics Media publics Government publics Citizen-action publics Local publics General public Internal publics Customers Consumer markets Business markets Government markets International markets Consumer markets consist of individuals. Business markets buy goods and services for further processing or use in their production processes, whereas reseller markets buy goods ND services to resell at a profit. Government markets consist of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them. International markets consist of these buyers in other countries, including consumers, producers, resellers, and governments. Each market type has special characteristics that call for careful study by the seller.