Marketing Management

1. Marketing

The action or business of promoting and selling products or services, including market research and advertising.

2. Selling

Selling is offering to exchange an item of value for a different item. The original item of value being offered may be either tangible or intangible. The second item, usually money, is most often seen by the seller as being of equal or greater value than that being offered for sale.

3. Customer Value

Creating monitory or non monitory value to the customer for building up future long-term relationship.

4. Customer Equity

In deciding the value of a company, it is important to know of how much value its customer base is in terms of future revenues. The greater the customer equity (CE), the more future revenue in the lifetime of its clients; this means that a company with a higher customer equity can get more money from its customers on average than another company that is identical in all other characteristics. As a result a company with higher customer equity is more valuable than one without it. It includes customers' goodwill and extrapolates it over the lifetime of the customers.

5. Value Proposition

A value proposition is a promise of value to be delivered and acknowledged and a belief from the customer that value will be appealed and experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services.

6. Marketing Myopia

Marketing Myopia suggests that businesses will do better in the end if they concentrate on meeting customers’ needs rather than on selling products.

7. Marketing Management Orientation

Marketing management wants to design strategies that will build profitable relationships with target consumers. But what philosophy should guide these marketing strategies? What weight should be given to the interests of customers the organization and society? Often these interests conflict.There are five alternative concepts under which organizations design and carry out their marketing strategies the production, product, selling, marketing and societal marketing concepts.

8. Customer Loyalty

Customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in

higher quantities and bring you even more customers. However, that focus is not how you build

customer loyalty.

You build loyalty by…

keeping touch with customers using email marketing, thank you cards and more.

treating your team well so they treat your customers well.

showing that you care and remembering what they like and don’t like.

You build it by rewarding them for choosing you over your competitors.

You build it by truly giving a damn about them and figuring out how to make them more

success, happy and joyful.

In short, you build customer loyalty by treating people how they want to be treated. Does

your marketing plan include strategies and tactics for customer loyalty & customer retention?

9. Customer Retention

Customer retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. [1] A company’s ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across themarketplace.

10. SBU

In business, a strategic business unit (SBU) is a profit center which focuses on product offering and market segment. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though they may be part of a larger business entity.

An SBU may be a business unit within a larger corporation, or it may be a business unto itself or a branch. Corporations may be composed of multiple SBUs, each of which is responsible for its own profitability. General Electric is an example of a company with this sort of business organization. SBUs are able to affect most factors which influence their performance. Managed as separate businesses, they are responsible to a parent corporation. General Electric has 49 SBUs.

11. BGC Matrix

12. Ansoff Grid

13. STP

14. Marketing Environment: Micro and Macro

The micro environment refers to the business itself and to all the challenges that come from inside the business.Businesses can therefore take control over all the challenges and influences in the micro environment.Sometimes, the micro environment is also known as the internal environment. The micro environment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets and public.

The macro-environment refers to all forces that are part of the larger society and affect the micro-environment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.

Factors affecting organisation in Macro environment are known as PESTEL, that is: Political, Economical, Social, Technological, Environmental and Legal.

15. Internal Data

Every department within an organisation will have its own records that represent a potential source of valuable data.  For instance, records of past advertising campaigns within the marketing department can be compared with copies of invoices held in the sales department in order to judge their effectiveness and get ideas for future campaigns.  Past sales figures can also be used to spot trends and forecast future figures. 

16. Marketing Intelligence

Marketing intelligence (MI) is the everyday information relevant to a company’s markets, gathered and analyzed specifically for the purpose of accurate and confident decision-making in determining market opportunity, market penetration strategy, and market development metrics. Marketing intelligence is necessary when entering a foreign market.

Marketing intelligence determines the intelligence needed, collects it by searching environment and delivers it to marketing managers who need it. Marketing intelligence software can be deployed using an on-premises or software as a service (SaaS, or cloud-based) model.

17. Marketing Research

Marketing research is "the process or set of processes that links the consumers, customers, and end users to the marketer through information — information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages

and implements the data collection process, analyzes the results, and communicates the findings and their implications.

18. CRM

Customer relationship management (CRM) is a system for managing a company’s interactions with current and future customers. It often involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support.

19. Buyers Black Box

The black box model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli(between people) or intrapersonal stimuli (within people). The black box model is related to the black box theory of behaviorism, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The marketing stimuli are planned and processed by the companies, whereas the environmental stimulus are given by social factors, based on the economical, political and cultural circumstances of a society. The buyer's black box contains the buyer characteristics and the decision process, which determines the buyer's response.

Environmental factors Buyer's black box

Buyer's responseMarketin

g StimuliEnvironment

al StimuliBuyer

CharacteristicsDecision

Process

ProductPricePlacePromotion

EconomicTechnologicalPoliticalCulturalDemographicNatural

AttitudesMotivationPerceptionsPersonalityLifestyleKnowledge

Problem recognitionInformation searchAlternative evaluationPurchase decisionPost-purchase behaviour

Product choiceBrand choiceDealer choicePurchase timingPurchase amount

The black box model considers the buyer's response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. However, in reality many decisions are not made in awareness of a determined problem by the consumer.

20. Business Market

Business marketing is a marketing practice of individuals or organizations (including commercial businesses, governments and institutions). It allows them to sell products or services to other companies or organizations that resell them, use them in their products or services or use them to support their works.

Business marketing is also known as industrial marketing or business-to-business (B2B) marketing. Despite sharing dynamics of organizational marketing with marketing to governments, business-to-government marketing is different.

21. Consumer Market

consumer markets involve the purchase and sale of goods and services to consumers for their own use rather than for resale.

Buying decisions for consumer markets can be complex for large purchases such as cars, houses and holidays, where multiple family members such as husbands and wives, even children will be involved to make a collective decision. However for smaller day to day products and services there is usually a much more simple buying process where one person will be the decision maker and there will be generally a low level relationship between the buyer and the seller, as in the case of a supermarket purchase.

22. Opinion Leader

Opinion leadership is leadership by an active media user who interprets the meaning of media messages or content for lower-end media users. Typically the opinion leader is held in high esteem by those who accept his or her opinions. Opinion leadership comes from the theory of two-step flow of communication propounded by Paul Lazarsfeld and Elihu Katz Significant developers of the theory have been Robert K. Merton, C. Wright Mills and Bernard Berelson. This theory is one of several models that try to explain the diffusion of innovations, ideas, or commercial products.

23. Buzz Marketing

Marketing buzz or simply buzz — a term used in viral marketing — is the interaction of consumers and users of a product or service which amplifies or alters the original marketing message. This emotion, energy, excitement, or anticipation about a product or service can be positive or negative. Buzz can be generated by intentional marketing activities by the brand owner or it can be the result of an independent event that enters public awareness through social or traditional media. Marketing buzz originally referred to oral communication but in the age of Web 2.0, social media such as Facebook and Twitter are now the dominant communication channels for marketing buzz.

24. Buying Situations

The type of buying situation also affects the B2B decision process. Most B2B buying situations can be categorized into three types: new buys, modified re-buys, and straight re-buys. (See Exhibit 6.6.) To illustrate the nuances among these three buying situations, consider how colleges and universities develop relationships with some of their suppliers.

25. Buying Decision Behavior

A buying decision process (or cost–benefit analysis) describes the process a customer goes through when buying a product. This buying decision model has gone through lots of interpretation by scholars.  Although the models vary, there is a common theme of five stages in the decision process.

These stages were first introduced by John Dewey (1910). The stages are:

1. Problem/Need recognition2. Information search3. Evaluation of alternatives4. Purchase decision5. Post-purchase behavior

26. Adoption Process

Adoption process is a series of stages by which a consumer might adopt a NEW product or service. Whether it be Services or Products, in todays competitive world, a consumer is faced with a lot of choices. How does he make a decision to ADOPT a new product is the Adoption process.

There are numerous stages of adoption which a consumer goes through. These stages may happen before or even after the actual adoption.

1. Awareness - This is the area where major MARKETEERS spend billions of dollars. Simply speaking, if you are not AWARE of the product, you are never going to BUY the product.

2. Interest and Information Search - Once you are aware, you start searching for information. Whether it be your daily soap, your car or for that matter your home, you won’t buy it unless you KNOW about it.

3. Evaluation / Trial - Evaluation is wherein you test or have a trial of the product. This is pretty difficult in services as services are generally intangible in nature. However service marketing managers do find ways of OFFERING Trial packs to users. Comparatively, it is pretty easier in Product marketing and finds a major usage in BTL ( Below the Line) sales promotion.

4. Adoption - The actual adoption of the product. Wherein the consumer finally decides to adopt the product.

27. Mass Marketing

Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and appeal the whole market with one offer or one strategy. [1] The idea is to broadcast a message that will reach the largest number of people possible. Traditionally mass marketing has focused on radio, television and newspapers as the media used to reach this broad audience. By reaching the largest audience possible exposure to the product is maximized. In theory this would directly correlate with a larger number of sales or buys into the product.

28. Micro Marketing

Micromarketing was first referred to in the UK marketing press in November 1988 in respect of the application of geo-demographics to consumer marketing.[1] The subject of micromarketing was developed further in an article in February 1990, which emphasized understanding markets at the local level, and also the personalization of messages to individual consumers in the context direct marketing. Micromarketing has come to refer to marketing strategies which are variously customized to either local markets, to different market segments, or to the individual customer.

29. Perceptual Mapping

Perceptual mapping is a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition.

Perceptual maps can have any number of dimensions but the most common is two dimensions. The first perceptual map below shows consumer perceptions of various automobiles on the two dimensions of sportiness/conservative and classy/affordable. This sample of consumers felt Porsche was the sportiest and classiest of the cars in the study (top right corner). They felt Plymouth was most practical and conservative (bottom left corner).

30. Positioning Statement

31. Augmented Product

The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a  car, part of the augmented product would be the warranty, the customer service support OFFERED by the car's manufacture, and any after-sales service.

32. Types of Consumer Products

33. Branding

Brand is the "name, term, design, symbol, or any other feature that identifies one seller's product distinct from those of other sellers." Brands are used in business, marketing, and advertising. Initially, livestock branding was adopted to differentiate one person's cattle from another's by means of a distinctive symbol burned into the animal's skin with a hot branding iron. A modern example of a brand is Coca-Cola which belongs to the Coca-Cola Company.

In accounting, a brand defined as an intangible asset is often the most valuable asset on a corporation's balance sheet. Brand owners manage their brands carefully to create shareholder value, and brand valuation is an important management technique that ascribes a money value to a brand, and allows marketing investment to be managed (e.g.: prioritized across a portfolio of brands) to maximize shareholder value. Although only acquired brands appear on a company's balance sheet, the notion of putting a value on a brand forces marketing leaders to be focused on long term stewardship of the brand and managing for value.

The word "brand" is often used as a metonym referring to the company that is strongly identified with a brand.

34. Packaging

Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells.[1] In many countries it is fully integrated into government, business, institutional, industrial, and personal use.

35. Labeling

Package labeling (American English) or labeling (British English) is any written, electronic, or graphic communication on the package or on a separate but associated label.

36. Brand Equity

Brand equity is a phrase used in the marketing industry which describes the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well-known names

37. Product Mix

A range of associated products that yields larger sales revenue when marketed together than if they were marketed individually or in isolation from others.

38. Test Marketing

A test market, in the field of business and marketing, is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out. The criteria used to judge the acceptability of a test market region or group include:

1. a population that is demographically similar to the proposed target market; and2. Relative isolation from densely populated media markets so that advertising to the test

audience can be efficient and economical.

39. Concept Testing

Concept testing (or market testing) is the process of using quantitative methods and qualitative methods to evaluate consumer response to a product idea prior to the introduction of a product to

the market. It can also be used to generate communication designed to alter consumer attitudes toward existing products. These methods involve the evaluation by consumers of product concepts having certain rational benefits, such as "a detergent that removes stains but is gentle on fabrics," or non-rational benefits, such as "a shampoo that lets you be yourself." Such methods are commonly referred to as concept testing and have been performed using field surveys, personal interviews and focus groups, in combination with various quantitative methods, to generate and evaluate product concepts.

40. PLC Strategies

Product life cycle is a business technique that attempts to list the stages in the lifespan of commercial/consumer products. 'Product Life cycle' (PLC) is used for determining the lifespan of these products; such as the normal phases through which a product goes over its lifespan. A bi-product of this PLC information is Product Life cycle Management (PLM). This is the management of the gathered PLC data to use in different aspects of the business.

Stages of product life cycle are-

41. Value Based Pricing

Pricing a product based on the value the product has for the customer and not on its costs of production or any other factor. This pricing strategy is frequently used where the value to the customer is many times the cost of producing the item or service. For instance, the cost of producing a software CD is about the same independent of the software on it, but the prices vary with the perceived value the customers are expected to have. The perceived value will depend on the alternatives open to the customer. In business these alternatives are using competitors software, using a manual work around, or not doing an activity. In order to employ value-based pricing you have to know your customer's business, his business costs, and his perceived alternatives. It is also known as Perceived-value pricing.

42. Cost Based Pricing

Firms may achieve profit maximization by increasing their production until their marginal revenue equals their marginal cost, then charging a price determined by the demand curve. In practice most firms use either value-based pricing or cost-plus pricing. Cost-plus pricing is also known as mark-up pricing where cost + mark-up = selling price.

43. Market Skimming

In most skimming, goods are sold at higher prices so that fewer sales are needed to break even. Selling a product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the

market. Skimming is usually employed to reimburse the cost of investment of the original research into the product: commonly used in electronic markets when a new range, such as DVD players, are firstly dispatched into the market at a high price. This strategy is often used to target "early adopters" of a product or service. Early adopters generally have a relatively lower price-sensitivity - this can be attributed to: their need for the product outweighing their need to economise; a greater understanding of the product's value; or simply having a higher disposable income.

This strategy is employed only for a limited duration to recover most of the investment made to build the product. To gain further market share, a seller must use other pricing tactics such as economy or penetration. This method can have some setbacks as it could leave the product at a high price against the competition.

44. Market Penetration

Penetration pricing includes setting the price low with the goals of attracting customers and gaining market share. The price will be raised later once this market share is gained.

45. Segmented Pricing

A situation that occurs when a company sets more than one price for a product without experiencing significant differences in the costs of producing or distributing the product. For example, a segmented pricing structure might be used by a business to take advantage of pricing disparities observed between different geographical regions.

46. Dynamic Pricing

Dynamic pricing is a pricing strategy in which businesses set highly flexible prices for products or services based on current market demands. Business are able to stay competitive by changing prices based on algorithms that take into account competitor pricing, supply and demand, and other external factors. Dynamic pricing is a common practice in several industries such as hospitality, travel, entertainment, and retail. Each industry takes a slightly different approach to re-pricing based on its needs and the demand for the product. One commonality, however, is the use of dynamic pricing to increase revenue and profits, whether to fill a stadium, flight, or sales quota.

47. De-marketing

Efforts aimed at discouraging (not destroying) the demand for a product which (1) a firm cannot supply in large-enough quantities, or (2) does not want to supply in a certain region where the high costs of distribution or promotion allow only a too little profit margin. Common demarketing strategies include higher prices, scaled-down advertising, and product redesign.

48. Holistic Marketing

Holistic Business Marketing 'is a new paradigm in marketing. It does not focus on marketing one area of businesses, like holistic businesses only, but is a concept of marketing that strives to be an

inclusive service which offers multi layered marketing to best allow for profitability of the company and alignment of the owners and employees with their values.

Taking a holistic view of marketing means looking at the business, and the owners/employees, as a whole to determine how to integrate the parts of the business into a coherent marketing strategy. Even a business owned and operated by one person will have many parts to the system. Holistic business marketing will look at how the parts fit into the greater whole to determine the best approach for marketing any product or service.

49. Marketing Ethics

Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. Some areas of marketing ethics (ethics of advertising and promotion) overlap with media ethics.

50. Social Marketing

Social marketing seeks to develop and integrate marketing concepts with other approaches to influence behaviors that benefit individuals and communities for the greater social good. It seeks to integrate research, best practice, theory, audience and partnership insight, to inform the delivery of competition sensitive and segmented social change programs that are effective, efficient, equitable and sustainable.

Although "social marketing" is sometimes seen only as using standard commercial marketing practices to achieve non-commercial goals, this is an oversimplification. The primary aim of social marketing is "social good", while in "commercial marketing" the aim is primarily "financial". This does not mean that commercial marketers cannot contribute to achievement of social good.