Marketing Management Essay
1) How has marketing management change in recent years? We can say with some confidence that the marketplace isn’t what it used to be. It is dramatically different from what it was even 10 years ago. Today, major and sometimes interlinking, societal forces have created new marketing behaviors, opportunities, and challenges.
Here are 12 key ones. • Network information technology• Globalization • Deregulation • Privatization • Heightened competition • Industry convergence Retail transformation.• Disintermediation• Consumer buying power• Consumer information• Consumer participation• Consumer resistance These major societal forces create complex challenges for marketers, but they have also generated a new set of capabilities to help companies cope and respond. Not surprisingly, these new marketing forces and capabilities have profoundly changed marketing management. In theory, the marketing planning process consists of analyzing marketing opportunities, selecting target markets, designing marketing strategies, developing marketing programs, and managing the marketing effort.In practice, however, in the highly competitive marketplaces that are more often the norm, marketing planning is more fluid and is continually refreshed. Companies must always be moving forward with marketing programs, innovating products and services, staying in touch with customer needs, and seeking new advantages rather than relying on past strengths. This is especially true of incorporating the Internet into marketing plans.
Marketers must try to balance increased spending on search advertising, social media, direct e-mail, and text/SMS marketing efforts with appropriate spending on traditional marketing communications.But they must do so in tough economic times, when accountability has become a top priority and returns on investment are expected from every marketing activity. “Marketing Insight: Marketing in an Age of Turbulence” offers some recommendations for adjusting to new marketing realities.
Today’s marketplace is fundamentally different as a result of major societal forces that have resulted in many new consumer and company capabilities. These forces have created new opportunities and challenges and changed marketing management significantly as companies seek new ways to achieve marketing xcellence. 2)How does marketing effect customer value? Key ingredients of the marketing management process are insightful, creative strategies and plans that can guide marketing activities. Developing the right marketing strategy over time requires a blend of discipline and flexibility. Firms must stick to a strategy butalso constantly improve it. They must also develop strategies for a range of products and services within the organization.
The task of any business is to deliver customer value at a profit.In a hypercompetitive economy with increasingly informed buyers faced with abundant choices, a company can win only by finetuning the value delivery process and choosing, providing, and communicating superior value. The value delivery process includes choosing (or identifying), providing (or delivering), and communicating superior value. The value chain is a tool for identifying key activities that create value and costs in a specific business. In economies with many different types of people, each with individual wants, perceptions, preferences, and buying criteria.The smart competitor must design and deliver offerings for well-defined target markets. This realization inspired a new view of business processes that places marketing at the beginning of planning.
Instead of emphasizing making and selling, companies now see themselves as part of a value delivery process. We can divide the value creation and delivery sequence into three phases. 2 First, choosing the value represents the “homework” marketing must do before any product exists.Marketers must segment the market, select the appropriate target, and develop the offering’s value positioning.
The formula “segmentation, targeting, positioning (STP)” is the essence of strategic marketing. The second phase is providing the value. Marketing must determine specific product features, prices, and distribution. The task in the third phase is communicating the value by utilizing the sales force, Internet, advertising, and any other 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. Each phase has cost implications.
3)What is the lifetime value of customers and how can marketers maximize it? Customers are value maximizers. They form an expectation of value and act on it. Buyers will buy from the firm that they perceive to offer the highest customerdelivered value, defined as the difference between total customer benefits and total customer cost. A buyer’s satisfaction is a function of the product’s perceived performance and the buyer’s expectations.
Recognizing that high satisfaction leads to high customer loyalty, companies must ensure that they meet and exceed customer expectations. Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Marketers play a key role in achieving high levels of total quality so that firms remain solvent and profitable. Marketing managers must calculate customer lifetime values of their customer base to understand their profit implications.
They must also determine ways to increase the value of the customer base. Companies are also becoming skilled in customer relationship management (CRM), which focuses on developing programs to attract and retain the right customers and meeting the individual needs of those valued customers. Customer relationship management often requires building a customer database and data mining to detect trends, segments, and individual needs.
A number of significant risks also exist, so marketers must proceed thoughtfully. 4)How do consumers make purchasing decision?Consumer behavior is influenced by three factors: cultural (culture, subculture, and social class), social(reference groups, family, and social roles and statuses), and personal (age, stage in the life cycle, occupation, economic circumstances, lifestyle, personality, and self-concept). Research into these factors can provide clues to reach and serve consumers more effectively. Marketing and environmental stimuli enter the consumer’s consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions.The marketer’s task is to understand what happens in the consumer’s consciousness between the arrival of the outside marketing stimuli and the ultimate purchase decisions. Four key psychological processes—motivation, perception, learning, and memory—fundamentally influence consumer responses.
Also consumer response is not all cognitive and rational; much may be emotional and invoke different kinds of feelings. A brand or product may make a consumer feel proud, excited, or confident. And may create feelings of amusement, disgust, or wonder.In the evaluation stage, the consumer forms preferences among the brands in the choice set and may also form an intention to buy the most preferred brand.
To understand how consumers actually make buying decisions, marketers must identify who makes and has input into the buying decision; people can be initiators, influencers, deciders, buyers, or users. Different marketing campaigns might be targeted to each type of person.Related to the attitudes of others is the role played by infomediaries’ evaluations: Consumer Reports, which provides unbiased expert reviews of all types of products and services; J. D. Power, which provides consumer-based ratings of cars, financial services, and travel products and services; professional movie, book, and music reviewers; customer reviews of books and music on such sites as Amazon.
com; and the increasing number of chat rooms, bulletin boards, blogs, and so on where people discuss products, services, and companies. Consumers are constructive decision makers and subject to many contextual influences. They often exhibit low involvement in their decisions, using many heuristics as a result.