Summary
Summary Marketing Management 354 A1 & A2 Notes
- Institution
- Stellenbosch University (SUN)
These notes were made using the class slides, student summaries as well as my own notes from class.
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Chapter 1: Defining marketing for new realitiesKEY CUSTOMER MARKETS:
1. Consumer markets: companies selling mass consumer goods and services
2. Business markets: companies selling business goods and services
3. Global markets: companies in the global marketplace
4. Non-profit and governmental markets: companies selling to non-profit
organisations
CORE MARKETING CONCEPTS:
Types of needs:
1. Stated needs: the customer wants an inexpensive car
2. Real needs: the customer wants a car whose operating cost, not initial cost, is low
3. Unstated needs: the customer expects good service from the dealer
4. Delight needs: the customer would like the dealer to include an onboard GPS system
5. Secret needs: the customer wants friends to see him as a savvy consumer
Marketing channels:
To reach a target market, a marketer uses 3 different channels
1. Communication channels: deliver and receive messages from target buyers
- Include: newspapers, magazines, radio, television, billboards,
2. Distribution channels: help display, sell, or deliver the physical product or service(s)
to the buyer or user
3. Service channels: to carry out transactions with potential buyers
- Includes warehouses, transportation companies, banks, and insurance
companies
Media:
1. Paid media: Allows marketers to show their ad/brand for a fee
- TV, magazine and display ads
2. Owned media: communication channels marketers own
- Website, blog, Facebook page
3. Earned media: streams in which consumers, the press, or other outsiders voluntarily
communicate something about the brand
Marketing environment:
Task environment: the actors engaged in producing, distributing, and promoting the
offering
,Broad environment: demographic, environment, economic environment, social- cultural
environment, natural environment, technological environment, and political- legal
environment
NEW MARKETING REALITIES:
1. Technology
2. Globalisation
3. Social responsibility
Technology: massive amounts of information and data about almost everything are now
available to consumers and marketers
Globalisation: has made countries increasingly multicultural and changed innovation and
product development
Social responsibility: the private sector is taking some responsibility for improving living
conditions, and firms all over the world have elevated the role of corporate social
responsibility
• Marketers must consider the ethical, environmental, legal, and social context of their
activities
• It’s a way to differentiate from competitors, build consumer preference, and achieve
notable sales and profit gains
THE HOLISTIC MARKETING CONCEPT:
Based on the development, design, and implementation of marketing programs, processes
and activities that recognise their breadth and interdependencies
Acknowledges that a broad, integrated perspective is often necessary
Holistic marketing dimensions:
1. Internal marketing à marketing department, senior management, other
departments
2. Integrated marketing à communications, products/services, channels, prices
3. Relationship marketing à customers, employees, partners, financial community
4. Performance marketing à sales revenue, brand and customer equity, ethics,
environment, legal, social
Chapter 2: Developing marketing strategies and plans
MARKETING AND CUSTOMER VALUE:
1. The value delivery process
2. The value chain
3. Core competencies
4. The central role of strategic planning
,1. The value delivery process:
3 phases of value creation and delivery sequence:
1. Choosing the value: marketers segment the market, select the appropriate target,
and develop the offering’s value positioning
2. Providing the value: marketing must identify specific product features, prices and
distribution
3. Communicating the value: utilising communication tools to announce and promote
the product
The value delivery process begins before there is a product and continues through
development and after launch
2. The value chain:
A tool for identifying ways to create more customer value
9 strategically relevant activities – 5 primary, 4 support – create value and cost
Primary activities:
1. Inbound logistics
2. Operations
3. Outbound logistics
4. Marketing
5. Service
Support activities:
6. Procurement
7. Technology development
8. Human resource management
9. Firm infrastructure
3. Core competencies:
3 characteristics of a core competency:
1. Source of competitive advantage and contribution to perceived customer benefits
2. Applications in a wide variety of markets
3. Difficult for competitors to imitate
To maximise core competencies, businesses may have to realign themselves
Steps:
1. (Re)defining the business concept
2. (Re)shaping the business scope
3. (Re)positioning the company’s brand identity
, 4. Central role of strategic planning:
3 key areas of strategic planning:
1. Managing the businesses as an investment portfolio
2. Assessing the market’s growth rate and the company’s position in that market
3. Establish a strategy
CORPORATE AND DIVISION STRATEGIC PLANNING:
4 planning activities that corporate headquarters undertake:
1. Defining the corporate mission
2. Establishing strategic business units
3. Assigning resources to each strategic business unit
4. Assessing growth opportunities
1. Defining the corporate mission:
What is our business? What should our business be? Who is the customer? What is of value
to the customer?
5 characteristics of a good mission statement:
1. Focus on a limited number of goals
2. Stress the company’s major policies and values
3. Define the major competitive spheres within which the company will operate
4. Take a long-term view
5. Are short, memorable and meaningful as possible
2. Establishing strategic business units:
3 characteristics of an SBU:
1. It is a single business, or collection of related businesses, that can be planned
separately from the rest of the company
2. It has its own set of competitors
3. It has a manager responsible for strategic planning and profit performance
3. Assigning resources to each SBU:
Management must decide how to allocate resources to each SBU
Portfolio planning models: classify each SBU by the extent of its competitive advantage and
the attractiveness of its industry
Shareholder value analysis: value calculations assess the potential of a business based on
growth opportunities from global expansion, repositioning, and strategic outsourcing
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