Marketers must do no harm. This means doing work for which they are appropriately trained or experienced so that they can actively add value to their organizations and customers. It also means adhering to all applicable laws and regulations and embodying high ethical standards in the choices they make.
Marketers must foster trust in the marketing system. This means that products are appropriate for their intended and promoted uses. It requires that marketing communications about goods and services are not intentionally deceptive or misleading. It suggests building relationships that provide for the equitable adjustment and/or redress of customer grievances. It implies striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process.
Marketers must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system. These basic values are intentionally aspirational and include honesty, responsibility, fairness, respect, openness and citizenship.
American Marketing Association
http://www.marketingpower.com/AboutAMA/Pages/Statement%20of%20Ethics.aspx
Showing posts with label Marketing management. Show all posts
Showing posts with label Marketing management. Show all posts
Friday, August 29, 2008
Saturday, July 26, 2008
Mass Marketing
In mass marketing the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.
The traditional argument for mass marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can translate into either lower prices or higher margins.
The proliferation of advertising media and distribution channels is making it difficult to practice "one size fits all" marketing (mass marketing).
Many companies are retreating from mass marketing and turning to micromarketing at one of four levels.
Segment marketing
Niche marketing
Local marketing
Individual marketing
Philip Kotler
The traditional argument for mass marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can translate into either lower prices or higher margins.
The proliferation of advertising media and distribution channels is making it difficult to practice "one size fits all" marketing (mass marketing).
Many companies are retreating from mass marketing and turning to micromarketing at one of four levels.
Segment marketing
Niche marketing
Local marketing
Individual marketing
Philip Kotler
Thursday, July 24, 2008
Major factors influencing buying behavior
Cultural factors
Culture
Subculture
Social class
Social factors
Reference groups
Family
Roles and statuses
Personal factors
Age and status in the life cycle
Occupation
Economic circumstances
Lifestyle
Personality and self-concept
Psychological factors
Motivation
Perception
Learning
Beliefs and attitudes
Philip Kotler
Culture
Subculture
Social class
Social factors
Reference groups
Family
Roles and statuses
Personal factors
Age and status in the life cycle
Occupation
Economic circumstances
Lifestyle
Personality and self-concept
Psychological factors
Motivation
Perception
Learning
Beliefs and attitudes
Philip Kotler
Marketing strategy
Market strategy specifies objectives and action plan for each of the following areas of marketing.
Target market
Positioning
Product line
Price
Distribution outlets
Sales force
Service
Advertising
Sales promotion
Philip Kotler
Target market
Positioning
Product line
Price
Distribution outlets
Sales force
Service
Advertising
Sales promotion
Philip Kotler
Major Classes of Growth Opportunities
Intensive growth
Market penetration
Market development
Integrative growth
Backward integration
Forward integration
Diversification growth
Concentric diversification
Horizontal diversification
Philip Kotler
Market penetration
Market development
Integrative growth
Backward integration
Forward integration
Diversification growth
Concentric diversification
Horizontal diversification
Philip Kotler
Tuesday, July 22, 2008
Customer Delivered Value and Customer Satisfaction
Customer delivered value is the difference between total customer value and total customer cost.
Total customer value is the bundle of benefits customers expect from a given product or service.
Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining, and using the product or service.
Customer satisfaction
Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.
Kotler
Total customer value is the bundle of benefits customers expect from a given product or service.
Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining, and using the product or service.
Customer satisfaction
Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.
Kotler
Monday, July 21, 2008
Responsive Marketing and Creative Marketing
Some marketers draw a distinction between responsive marketing and creative marketing. A responsive marketer finds a stated need and fills it. A creative marketer discovers and produces solutions that customer did not ask for but to which they enthusiastically respond
Kotler
Kotler
The Marketing Concept - Kotler
The marketing concept
The marketing concept holds that the key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets.
The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and profitability.
Target market:
No company can operate in every market and satisfy every need. Nor can it always do a good job within one broad market.
Customer needs:
Marketing is about meeting needs of target markets profitably.
The key to professional marketing is to understand their customers real needs and meet them better than any competitor can.
Integrated Marketing
When all the company’s departments work together to serve the customer’s interests, the result is integrated marketing.
Integrated marketing takes on two levels. First, the various marketing functions-sales force, advertising, product management, marketing research, and so on – must work together.
Second must be well coordinated with other company departments.
The company is doing proper marketing only when all employees appreciate their impact on customer satisfaction. To foster teamwork among all departments, the company carries out internal marketing as well as external marketing. External marketing is marketing directed at people outside the company. Internal marketing is the task of successfully hiring, training, and motivating employees who want to serve the customers well. In fact internal marketing must precede external marketing. It makes no sense to promise excellent service before the company’s staff is ready to provide excellent service.
Profitability:
The ultimate purpose of the marketing concept is to help organizations achieve their goals. In the case of private firms, the major goal is profit. (Marketing managers have to evaluate the profitability of all alternative marketing strategies and decisions and choose most profitable decisions for long-term survival and growth of the firm.)
For More detailed description
The Marketing Concept - Kotler in Management Theory Review Blog
Sunday, July 20, 2008
Concepts of Marketing that Business Units Hold
Business units even now hold one of the following concepts of marketing and manage their marketing activities accordingly.
The production concept
The production concept holds that consumers will favor those products that are widely available and low in cost. Managers of production-oriented organizations concentrate on achieving high production efficiency and wide distribution
The product concept
The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers in product oriented organizations focus their energy on making superior products and improving them over time.
The selling/sales concept
The selling concept holds that consumers, if left alone, will ordinarily not buy enough of the organization’s products. The organization must therefore undertake an aggressive selling and promotion effort.
The marketing concept
The marketing concept holds that the key to achieving organizational goals consists of being more effective tha competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets.
The societal marketing concept
The societal marketing concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.
Philip Kotler (Marketing Management, 9th Edition)
The production concept
The production concept holds that consumers will favor those products that are widely available and low in cost. Managers of production-oriented organizations concentrate on achieving high production efficiency and wide distribution
The product concept
The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers in product oriented organizations focus their energy on making superior products and improving them over time.
The selling/sales concept
The selling concept holds that consumers, if left alone, will ordinarily not buy enough of the organization’s products. The organization must therefore undertake an aggressive selling and promotion effort.
The marketing concept
The marketing concept holds that the key to achieving organizational goals consists of being more effective tha competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets.
The societal marketing concept
The societal marketing concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.
Philip Kotler (Marketing Management, 9th Edition)
Kotler on Marketing Management
Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties.
Definition of American Marketing Association
Marketing (Management) is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
Marketing management has the task of influencing the level, timing, and composition of demand in a way that help the organization achieve its objectives. Marketing management is essentially demand management.
Marketing managers manage demand by carrying out marketing research, planning, implementation and control.
Within marketing planning, marketers must make decisions on target markets, market positioning, product development, pricing, distribution channels, physical distribution, communication, and promotion.
Marketing work in the customer market is formally carried out by sales managers, salespeople, advertising and promotion manages, marketing researchers, customer service managers, product and brand managers, market and industry managers, and the marketing vice-president.
Philip Kotler (Marketing Management, 9th Edition)
Definition of American Marketing Association
Marketing (Management) is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
Marketing management has the task of influencing the level, timing, and composition of demand in a way that help the organization achieve its objectives. Marketing management is essentially demand management.
Marketing managers manage demand by carrying out marketing research, planning, implementation and control.
Within marketing planning, marketers must make decisions on target markets, market positioning, product development, pricing, distribution channels, physical distribution, communication, and promotion.
Marketing work in the customer market is formally carried out by sales managers, salespeople, advertising and promotion manages, marketing researchers, customer service managers, product and brand managers, market and industry managers, and the marketing vice-president.
Philip Kotler (Marketing Management, 9th Edition)
Market, Marketer and Prospect
Market
A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want.
Marketer and Prospect
When one party is more actively seeking an exchange than the other party, we call the first party a marketer and the second party a prospect. A marketer is some one seeking one or more prospects who might engage in an exchange of values. A prospect is someone whom the marketer identifies as potentially wiling and able to engage in an exchange of values.
Philip Kotler (Marketing Management, 9th Edition)
A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want.
Marketer and Prospect
When one party is more actively seeking an exchange than the other party, we call the first party a marketer and the second party a prospect. A marketer is some one seeking one or more prospects who might engage in an exchange of values. A prospect is someone whom the marketer identifies as potentially wiling and able to engage in an exchange of values.
Philip Kotler (Marketing Management, 9th Edition)
Relationship marketing - Kotler
Relationship marketing is the practice of building long-term satisfying relations with key parties—customers, suppliers, distributors—in order to retain their long-term preference and business.
The ultimate outcome of relationship marketing is the building of a unique company asset called a marketing network. A marketing network consists of the company and all of its supporting stakeholders: customers, employees, suppliers, distributors, retailers, ad agencies, university scientists, and others with whom it has built mutually profitable business relationships. Increasingly competition is not between companies but rather between whole networks, with the prize going to the company that has built better network.
The operating principle is: Build a good network of relationships with key stakeholders and profits will follow.
Philip Kotler (Marketing Management, 9th Edition)
The ultimate outcome of relationship marketing is the building of a unique company asset called a marketing network. A marketing network consists of the company and all of its supporting stakeholders: customers, employees, suppliers, distributors, retailers, ad agencies, university scientists, and others with whom it has built mutually profitable business relationships. Increasingly competition is not between companies but rather between whole networks, with the prize going to the company that has built better network.
The operating principle is: Build a good network of relationships with key stakeholders and profits will follow.
Philip Kotler (Marketing Management, 9th Edition)
Kotler - Product - Value
A product is anything that can be offered to satisfy a need or want. Offering and solution are synonyms to the product in marketing context.
A product of offering can consist of as many as three components: physical good(s), service(s), and idea(s).
Value is the consumer’s estimate of the product’s overall capacity to satisfy his or her needs.
Value is “the satisfaction of customer requirements at the lowest possible cost of acquisition, ownership, and use. (DeRose)
Philip Kotler (Marketing Management, 9th Edition)
A product of offering can consist of as many as three components: physical good(s), service(s), and idea(s).
Value is the consumer’s estimate of the product’s overall capacity to satisfy his or her needs.
Value is “the satisfaction of customer requirements at the lowest possible cost of acquisition, ownership, and use. (DeRose)
Philip Kotler (Marketing Management, 9th Edition)
Kotler - Needs - Wants - Marketers
A human need is a state of deprivation of some basic satisfaction. People require food, clothing, shelter, safety, belonging, and esteem. These needs are not created by society or by marketers. They exist in the very texture of human biology and the human condition.
Wants are desires for specific satisfiers of needs. Although people’s needs are few, their wants are many. They are continually shaped and reshaped by social forces and institutions, including churches, schools, families and business corporations.
Demands are wants for specific products that are backed by an ability and willingness to buy them. Companies must measure not only how many people want their product but, more importantly, how many would actually be willing and able to buy it.
Marketers do not create needs. Marketers, along with other societal influences, influence wants. Marketers influence demand by making the product appropriate, attractive, affordable, and easily available to target consumers.
Philip Kotler (Marketing Management, 9th Edition)
Wants are desires for specific satisfiers of needs. Although people’s needs are few, their wants are many. They are continually shaped and reshaped by social forces and institutions, including churches, schools, families and business corporations.
Demands are wants for specific products that are backed by an ability and willingness to buy them. Companies must measure not only how many people want their product but, more importantly, how many would actually be willing and able to buy it.
Marketers do not create needs. Marketers, along with other societal influences, influence wants. Marketers influence demand by making the product appropriate, attractive, affordable, and easily available to target consumers.
Philip Kotler (Marketing Management, 9th Edition)
Kotler - Marketing – definition
Marketing is a 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.
Kotler - Technology - Marketing Opportunity
Alert marketers see technology as producing an endless stream of opportunities. Yet taking advantage of technology entails waling a thin line: Companies must avoid jumping in too soon (before the market is ready) or too late (after the market has been conquered).
Philip Kotler (Marketing Management, 9th Edition)
Philip Kotler (Marketing Management, 9th Edition)
Kotler - Trends in Marketing
1. A growing emphasis on quality, value, and customer satisfaction.
2. A growing emphasis on relationship building and customer retention.
3. A growing emphasis on managing business processes and integrating business functions.
4. A growing emphasis on global thinking and local market planning.
5. A growing emphasis on building strategic alliances and networks.
6. A growing emphasis on direct and online marketing.
7. A growing emphasis on services marketing.
8. A growing emphasis on high-tech industries
9. A growing emphasis on ethical marketing behavior
Philip Kotler (Marketing Management, 9th Edition)
2. A growing emphasis on relationship building and customer retention.
3. A growing emphasis on managing business processes and integrating business functions.
4. A growing emphasis on global thinking and local market planning.
5. A growing emphasis on building strategic alliances and networks.
6. A growing emphasis on direct and online marketing.
7. A growing emphasis on services marketing.
8. A growing emphasis on high-tech industries
9. A growing emphasis on ethical marketing behavior
Philip Kotler (Marketing Management, 9th Edition)
Friday, July 18, 2008
Long tail
Should You Invest in the Long Tail? By: Elberse, Anita, Harvard Business Review, 00178012, Jul-Aug2008, Vol. 86, Issue 7/8
One school of thought represented by the economists Robert Frank and Philip Cook, in their 1995 book The Winner-Take-All Society argues that broad, fast communication and easy replication create dynamics whereby popular products become disproportionately profitable for suppliers, and customers become even likelier to converge in their tastes and buying habits. The authors offer three reasons for their view: First and foremost, lesser talent is a poor substitute for greater talent. Why, for example, would people listen to the world's second-best recording of Carmen when the best is readily available? Thus even a tiny advantage over competitors can be rewarded by an avalanche of market share. Second, people are inherently social, and therefore find value in listening to the same music and watching the same movies that others do. Third, when the marginal cost of reproducing and distributing products is low -- as it certainly is with goods that can be digitized -- the cost advantage of a brisk seller is huge. Frank and Cook were elaborating on the economist Sherwin Rosen's earlier work describing the "superstars" effect, in which a field's few top performers pull ever further away from the pack. According to this line of thought, hits will keep coming -- to the increasing detriment of also-rans.
Although that thesis continues to hold sway, another idea has emerged in recent years -- presented just as persuasively, and proposing the opposite. The "long tail" theory took shape in an article by Chris Anderson, editor of Wired magazine, which grew into the 2006 book The Long Tail: Why the Future of Business Is Selling Less of More. The book's subtitle puts the strategic implications in a nutshell. Now that consumers can find and afford products more closely tailored to their individual tastes, Anderson believes, they will migrate away from homogenized hits. The wise company, therefore, will stop relying on blockbusters and focus on the profits to be made from the long tail -- niche offerings that cannot profitably be provided through brick-and-mortar channels.
Author
Anita Elberse (aelberse@hbs.edu) is an associate professor of business administration in the marketing unit at Harvard Business School. Her article "How Markets Help Marketers" appeared in the September 2005 issue of HBR.
One school of thought represented by the economists Robert Frank and Philip Cook, in their 1995 book The Winner-Take-All Society argues that broad, fast communication and easy replication create dynamics whereby popular products become disproportionately profitable for suppliers, and customers become even likelier to converge in their tastes and buying habits. The authors offer three reasons for their view: First and foremost, lesser talent is a poor substitute for greater talent. Why, for example, would people listen to the world's second-best recording of Carmen when the best is readily available? Thus even a tiny advantage over competitors can be rewarded by an avalanche of market share. Second, people are inherently social, and therefore find value in listening to the same music and watching the same movies that others do. Third, when the marginal cost of reproducing and distributing products is low -- as it certainly is with goods that can be digitized -- the cost advantage of a brisk seller is huge. Frank and Cook were elaborating on the economist Sherwin Rosen's earlier work describing the "superstars" effect, in which a field's few top performers pull ever further away from the pack. According to this line of thought, hits will keep coming -- to the increasing detriment of also-rans.
Although that thesis continues to hold sway, another idea has emerged in recent years -- presented just as persuasively, and proposing the opposite. The "long tail" theory took shape in an article by Chris Anderson, editor of Wired magazine, which grew into the 2006 book The Long Tail: Why the Future of Business Is Selling Less of More. The book's subtitle puts the strategic implications in a nutshell. Now that consumers can find and afford products more closely tailored to their individual tastes, Anderson believes, they will migrate away from homogenized hits. The wise company, therefore, will stop relying on blockbusters and focus on the profits to be made from the long tail -- niche offerings that cannot profitably be provided through brick-and-mortar channels.
Author
Anita Elberse (aelberse@hbs.edu) is an associate professor of business administration in the marketing unit at Harvard Business School. Her article "How Markets Help Marketers" appeared in the September 2005 issue of HBR.
Thursday, July 17, 2008
HBR Case Study on Market Research - July-August 2008
The Sure Thing That Flopped.
By: Zaltman, Gerald, Zaltman, Lindsay, Sturgess, Donna J., Lee, Alex, Fujikawa, Yoshinori, Carbone, Lewis,
Harvard Business Review,
Jul-Aug 2008, Vol. 86, Issue 7/8
All the market research said that TF's NextStage stores couldn't miss. What went wrong?
By: Zaltman, Gerald, Zaltman, Lindsay, Sturgess, Donna J., Lee, Alex, Fujikawa, Yoshinori, Carbone, Lewis,
Harvard Business Review,
Jul-Aug 2008, Vol. 86, Issue 7/8
All the market research said that TF's NextStage stores couldn't miss. What went wrong?
Tuesday, July 15, 2008
THEODORE LEVITT'S HBR ARTICLES
WHAT BUSINESS ARE YOU IN?
By: Levitt, Theodore,
Harvard Business Review,
October 2006, Vol. 84, Issue 10
THEODORE LEVITT (1925-2006)
Levitt carried his practical approach to his tenure as Harvard Business Review’s eighth chief editor, from 1985 to 1989. He was at the same time one of HBR’s most intellectual and most populist editors. He understood that the magazine’s main purpose was to serve as a kind of sophisticated translation, clarifying authors’ raw-–and sometimes rough-–ideas for impatient, time-pressed readers. In both his writing and his editing, he epitomized HBR’s standard of tireless practical engagement with ideas.
Advertising: "The Poetry of Becoming"
March–April 1993
The Case of the Migrating Markets
July–August 1990
After the Sale Is Over…
September–October 1983
The Globalization of Markets
May–June 1983
Marketing Intangible Products and Product Intangibles
May–June 1981
Marketing Success Through Differentiation--of Anything
January–February 1980
Marketing When Things Change
November–December 1977
The Industrialization of Service
September–October 1976
Dinosaurs Among the Bears and Bulls
January–February 1975
Marketing Tactics in a Time of Shortages
November–December 1974
The Managerial Merry-Go-Round
July–August 1974
Production-Line Approach to Service
September-–October 1972
The Morality (?) of Advertising
July-–August 1970
The New Markets--Think Before You Leap
May–June 1969
Why Business Always Loses
March–April 1968
The Johnson Treatment
January-–February 1967
Innovative Imitation
September–October 1966
Branding on Trial
March-–April 1966
Exploit the Product Life Cycle
November–December 1965
When Science Supplants Technology…
July–August 1963
Creativity Is Not Enough
May–June 1963,
republished August 2002
M-R Snake Dance
November–December 1960
Marketing Myopia
July–August 1960, republished
September–October 1975 and July–August 2004
Cold-War Thaw
January–February 1960
The Dangers of Social Responsibility
September–October 1958
The Changing Character of Capitalism
July–August 1956
By: Levitt, Theodore,
Harvard Business Review,
October 2006, Vol. 84, Issue 10
THEODORE LEVITT (1925-2006)
Levitt carried his practical approach to his tenure as Harvard Business Review’s eighth chief editor, from 1985 to 1989. He was at the same time one of HBR’s most intellectual and most populist editors. He understood that the magazine’s main purpose was to serve as a kind of sophisticated translation, clarifying authors’ raw-–and sometimes rough-–ideas for impatient, time-pressed readers. In both his writing and his editing, he epitomized HBR’s standard of tireless practical engagement with ideas.
Advertising: "The Poetry of Becoming"
March–April 1993
The Case of the Migrating Markets
July–August 1990
After the Sale Is Over…
September–October 1983
The Globalization of Markets
May–June 1983
Marketing Intangible Products and Product Intangibles
May–June 1981
Marketing Success Through Differentiation--of Anything
January–February 1980
Marketing When Things Change
November–December 1977
The Industrialization of Service
September–October 1976
Dinosaurs Among the Bears and Bulls
January–February 1975
Marketing Tactics in a Time of Shortages
November–December 1974
The Managerial Merry-Go-Round
July–August 1974
Production-Line Approach to Service
September-–October 1972
The Morality (?) of Advertising
July-–August 1970
The New Markets--Think Before You Leap
May–June 1969
Why Business Always Loses
March–April 1968
The Johnson Treatment
January-–February 1967
Innovative Imitation
September–October 1966
Branding on Trial
March-–April 1966
Exploit the Product Life Cycle
November–December 1965
When Science Supplants Technology…
July–August 1963
Creativity Is Not Enough
May–June 1963,
republished August 2002
M-R Snake Dance
November–December 1960
Marketing Myopia
July–August 1960, republished
September–October 1975 and July–August 2004
Cold-War Thaw
January–February 1960
The Dangers of Social Responsibility
September–October 1958
The Changing Character of Capitalism
July–August 1956
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