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or how you plan to get your product to your
CHAPTER 4 – THE MARKETING MANAGEMENT
PROCESS
INTRODUCTION:
MARKETING MANAGEMENT PROCESS
- a series of strategic management actions by marketing
leaders that help team members optimize a marketing
campaign for efficiency.
- process to identifying customer needs and wants and
then developing a marketing program to satisfy
customer needs.
STEPS IN MARKETING PLANNING PROCESS:
1. MISSION
> Mission statement
> Corporate Objectives
2. SITUATION ANALYSIS
> Identify Opportunities
> 5Cs - Company, Customers, Competitors,
Collaborators, Climate
3. MARKETING PLAN/STRATEGY
> Define your target audience
> Set measurable goals
> Develop budget
4. MARKETING MIX
> Product Development
> Pricing
> Promotion
> Place and distribution
5. IMPLEMENTATION & CONTROL
> Put plan into action
> Monitor results
1. Evaluate internal and external factors that
affect your business and market. A typical
analysis is called a SWOT analysis.
2. Marketing Plan - will specify your target
customers and how you will reach them and
should also include a forecast of the anticipated
results.
> 3 THINGS TO CONSIDER:
✓ Define Your Target Audience
✔ Set Measurable Goals: SPECIFIC,
MEASURABLE, ATTAINBALE REALISTIC,
TIMEBOUND
✔ Identify and Set a Marketing Budget
3. Marketing Mix (4ps) - best-known way to
describe the marketing mix
PRODUCT: a good or service that meets the
needs of your target market. PRICE: the
amount of money your target market is willing
to pay for your product.
PROMOTION: The way you communicate with
your target audience about the value and
benefit of your product
PLACE: Consider place as product distribution
customers and make the buying process easy.
4. Put your plan into action - you will reach out
to customers to inform and persuade them
about your product or service. Includes getting
the resources (cash and staffing) organizing the
people, creating calendars to keep the work on
track, and managing all the details for each
goal.
FUNCTIONS OR MARKETING MANAGEMENT
1. Selling
2. Buying and assembling
3. Transportation
4. Storage
5. Standardization and Grading
6. Financing
7. Risk Taking
8. Market Information
> MARKETING ORGANIZATION STRUCTURE -
distribute and oversee marketing operations, define and
organize employee job roles, including who they report
to, and outline the processes.
WHY SHOULD A BUSINESS USE A MARKETING
ORGANIZATION STRUCTURE?
1. CHAIN OF COMMAND: refers to the hierarchy
of relationships within a business. Means
defining who answers to who within
departments while making business-related
decisions, maps out who holds authority and
who is accountable for the overseeing,
executing and approving of tasks.
2. SPAN OF CONTROL: clearly defines who
manages each department and what
responsibilities those departments handle.
3. CENTRALIZATION OR
DECENTRALIZATION: centralized business
allows one or two individuals to make final
decisions, whereas a decentralized business
has a team or department in charge of making
final decisions.
TYPES OF MARKETING ORGANIZATION
STRUCTURES
1. FUNCTIONAL STRUCTURE - organize employees
into groups based on their job positions and skillsets.
Specialized team or function group is an assortment of
employees with similar job. Has employees divided into
separate groups that focus on one specialized function.
Specialized functional groups can promote consistent
work and speed up work performance since they don't
involve employees outside their function. Easier to
manage on a larger scale because it can easily adjust
to changes in the business.
2. PRODUCT-BASED STRUCTURE - mostly ideal for
a business selling multiple products or services.
Separates employees into groups that focus on each
individual product line. Each division can have
employees from every specialized function. Can give
each division independence from one another, which
allows employees to focus on their own division-related
tasks since they do not have to communicate with
outside groups or departments.
3. MATRIX STRUCTURE - combination of a product-
based structure and a functional structure. Best for
arranging employee departments based on their job
roles and the products they are working with because
each handles one specific product. Can provide more
information at a faster rate since multiple specialty
teams oversee one project. Having a variety of specialty
teams responsible for one project can help employees
openly communicate.
4. GEOGRAPHICAL STRUCTURE - International
companies usually are on a much larger scale since
they work in multiple countries and languages. Can be
helpful for companies because it divides employees into
teams based on geographical regions or districts.
Having teams dedicated to certain geographical regions
can assist employees in designing local marketing
strategies based on their target audience. Allow
employees in each division to become familiar with their
regions, giving them the ability to connect with their
audience on a deeper level.
5. MARKET-BASED STRUCTURE - Some businesses
focus on certain industries, markets or types of
consumers while creating a marketing organization
structure. Industries, markets and consumer types are
division segments that outline an organizational
structure. Focusing on individual segments gives
employees the opportunity to create marketing
strategies that appeal to different consumers. Best for a
business that aims to provide services to parts of a
market or industry.
6. NETWORK STRUCTURE - business that intends to
work with another, separate business to share
resources may use a network structure, which is helpful
for organizations that want to maintain control and
expedite their internal operations. Business that
provides one or two specified goods or services might
want to outsource tasks that are not performed
internally, since the business is most familiar with its
internal tasks. For example, a restaurant might want to
sell custom merchandise, but outsourcing the job to a
graphic designer could allow the restaurant to focus on
its core operations while expanding its network with new
partnerships.
7. LINEAR STRUCTURE - refers to the chain of
command hierarchy as its organizational structure. The
top employee in the chain of command oversees the
entire business, and the other employees in the chain
of command only oversee one part of the business and
refer directly above them. This structure can be best for
small businesses with few job positions.
_____________________________________
CHAPTER 5 - MANAGING CUSTOMER
INFORMATION TO GAIN CUSTOMER INSIGHTS
I. NATURE OF CUSTOMER INSIGHTS
A. MARKETING INFORMATION SYSTEMS (MIS)
- a management information system designed to
support marketing decision making.
- brings together many kinds of data, people, equipment
and procedures to help an organization make better
decisions.
- enables managers to share information and work
together virtually.
3 MAJOR PROCESS OF MIS
1. ASESSING INFORMATION NEEDS
2. DEVELOPING NEEDED INFORMATION
3. ANALYZING AND USING INFORMATION
1. ASSESSING MARKETING INFORMATION NEEDS
- provides information to the company’s marketing and
other managers and external partners such as
suppliers, resellers, marketing service agencies.
CHARACTERISTICS OF GOOD MIS - balances the
information users would like to have against what they
need and what is feasible to offer.
> Issues to consider:
✔ Amount of information
✔ Availability of information
✔ Costs.
2. DEVELOPING MARKETING INFORMATION -
acquiring information about your target market using
different platforms or sources.
B. MARKETERS CAN OBTAIN INFORMATION
FROM:
INTERNAL DATA > MARKETING INTELLIGENCE >
MARKETING RESEARCH
> INTERNAL DATA - Internal databases are paper or
electronic collections of consumer and market
information obtained from data sources within the
company network, including accounting, marketing,
customer service, sales departments.
> ADVANTAGES AND DISADVANTAGES OF
INTERNAL DATABASES
ADVANTAGES:
- Can access quickly
- Less expensive
DISADVANTAGES
- Incomplete data
- Timeliness of data
- Amount of data
MARKETING INTELLIGENCE - systematic collection
and analysis of publicly available information about
competitors and developments in marketplace.
THE GOAL OF MARKETING INTELLIGENCE
1. Improve strategic decision making
2. Assess and track competitors' actions
 3. Provide early warning of opportunities and
threats.
MARKETING RESEARCH - systematic design,
collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization.
STEPS IN THE MARKETING RESEARCH PROCESS
1. DEFINING THE PROBLEM AND RESEARCH
OBJECTIVES
2. DEVELOPING A RESEARCH PLAN
3. IMPLEMENTING THE PLAN
4. INTERPRETING & REPORTING THE
FINDINGS
TYPES OF RESEARCH
1. EXPLORATORY RESEARCH - the gathering of
preliminary information that will help to define the
problem and suggest hypotheses.
2. DESCRIPTIVE RESEARCH - describe things such
as market potential for a product or the demographics
and attitudes of consumers who buy the product.
3. CAUSAL RESEARCH - to test hypotheses about
cause-and-effect relationships.
DEVELOPING THE RESEARCH PLAN
1. Management problem
2. Research objectives
3. Information needed
4. How the results will help management
decisions
5. Budget
TWO TYPES OF DATA
1. PRIMARY DATA consists of information
gathered for the special research plan.
EXAMPLE: Letters, Diaries, Interviews, Video
Recording, Speeches
2. SECONDARY DATA consists of information
that already exists somewhere, having been
collected for another purpose.
EXAMPLE: Gov’t Agencies, Trade and Industry
Asso., Marketing research firms, Commercial
Publications, News Media
IMPLEMENTING THE RESEARCH PLAN
1. Collecting data
2. Processing the information
3. Analyzing the information
ISSUES TO CONSIDER IN IMPLEMENTING THE
PLAN
- What if respondents refuse to cooperate?
- What if respondents give biased answers?
- What if interviewer makes mistakes or takes
shortcuts?
INTERPRETING AND REPORTING THE FINDINGS -
Involves data analysis and presenting findings in
reports. It is the time when the organization will create
results based on the overall gathered information.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
USES & IMPORTANCE OF CRM
1. To understand customers better
2. To provide higher levels of customer service
3. To develop deeper customer relationships
4. To identify high-value customers
IMPORTANCE OF CUSTOMER RELATIONSHP
MANAGEMENT
1. Understands the customer better
2. Pinpoint high value customers
3. Cross sell company products
4. Create tailor made offering
_____________________________________
CHAPTER 6 - CONSUMER MARKETS AND
CONSUMER BUYING BEHAVIOR
CONSUMER BUYING BEHAVIOR
- refers to the buying behavior of final consumer,
individuals and households who buy goods and
services for personal consumption. Final consumers
that make up the consumer market.
- NEED TO UNDERSTAND:
> Why consumers make the purchases that they make?
> What factors influence consumer purchases?
> The changing factors in our society.
STAGES OF THE CONSUMER BUYING PROCESS
1. PROBLEM RECOGNITION (AWARENESS OF
NEED) - difference between the desired state and the
actual condition.
2. INFORMATION SEARCH:
> Internal Search – you will use your memory.
> External Search - if you need more information, you
will use other search engines.
3. EVALUATION OF ALTERNATIVES - need to
establish criteria for evaluation, features the buyer
wants or does not want. Rank/weight alternatives or
resume search.
4. PURCHASE DECISION - Choose buying alternative,
includes product, package, store, method of purchase
etc.
5. PURCHASE - May differ from decision, product
availability.
6. POST-PURCHASE - Evaluation-outcome:
Satisfaction or Dissatisfaction.
TYPES OF CONSUMER BUYING RISK
1. PERSONAL RISK - directly affect an individual, may
involve the loss of earnings and assets or increase in
expenses. Example, unemployment may create
financial burdens from the loss of income and
employment benefits.
2. SOCIAL RISK - concern or uncertainty in the buyer's
mind that the purchase of the product under
consideration will not be approved of by others.
3. ECONOMIC RISK - risk involved in investing or
purchasing in a business opportunity in an international
market that arises from changes in sovereign policies,
market fluctuations, and counterparty credit risk.
THE FOUR TYPE OF CONSUMER BUYING
BEHAVIOR
1. ROUTINE RESPONSE/PROGRAMMED
BEHAVIOR - buying low involvement frequently
purchased low-cost items; need very little search and
decision effort; purchased almost automatically.
Examples: soft drinks, snack foods, milk etc.
2. LIMITED DECISION MAKING - buying product
occasionally. When you need to obtain information
about unfamiliar brand. Requires a moderate amount of
time for information gathering.
Example: Clothes, know product class but not the
brand.
3. EXTENSIVE DECISION MAKING - Complex high
involvement, unfamiliar, expensive and/or infrequently
bought products. High degree of
economic/performance/psychological risk. Spend a lot
of time seeking information and deciding.
Example: cars, homes, computers, education.
4. IMPULSE BUYING - no conscious planning.
CATEGORIES THAT AFFECT THE CONSUMER
BUYING DECISION PROCESS
1. PERSONAL FACTORS - Unique to a particular
person. Demographic Factors. Sex, Race, Age etc.
2. PSYCHOLOGICAL FACTORS:
2.1 MOTIVES - internal energizing force that
orients a person's activities toward satisfying a
need or achieving a goal.
- MASLOW HIERARCHY OF NEEDS
> Physiological
> Safety
> Love and Belonging
> Esteem
> Self Actualization
- Need to determine what level of the hierarchy
the consumers are at to determine what
motivates their purchases.
2.2 PERCEPTION - process of selecting,
organizing and interpreting information inputs
to produce meaning.
> SELECTIVE EXPOSURE - select inputs to be
exposed to our awareness. More likely if it is
linked to an event, satisfies current needs,
intensity of input changes.
>SELECTIVE DISTORTION - CUSTOMERS
changing/twisting current received information,
inconsistent with beliefs.
> SELECTIVE RETENTION - remember inputs
that support beliefs, forgets those that don't.
2.3 ABILITY & KNOWLEDGE - need to
understand individuals' capacity to learn.
> When making buying decisions, buyers must
process information. KNOWLEDGE is the
familiarity with the product and expertise.
> LEARNING is the process through which a
relatively permanent change in behavior results
from the consequences of past behavior.
2.4 ATTITUDES - knowledge and positive and
negative feelings about an object or activity,
tangible or intangible. Drive perception,
individual learns attitudes through experience
and interaction with other people. Consumer
attitudes toward a firm and its products greatly
influence the success or failure of the firm's
marketing strategy.
2.5 PERSONALITY - All the internal traits and
behaviors that make a person unique,
uniqueness arrives from a person's heredity
and personal experience. Traits effect the way
people behave.
2.6 LIFESTYLE - he consistent patterns people
follow in their lives.
3. SOCIAL FACTOR:
3.1 OPINION LEADERS - the
ambassadors/spokespeople of a certain
products or services.
3.2 ROLE & FAMILY INFLUENCES - Things
you should do based on the expectations of you
from your position within a group.
3.3 REFERENCES GROUPS - Individual
identifies with the group to the extent that he
takes on many of the values of the group
members. Any group that has a positive or
negative influence on a person's attitude and
behavior.
> Membership groups (belong to)
> Aspiration groups (want to belong to)
> Disassociate groups (do not want to belong
to)
3.4 SOCIAL CLASSES - open group of
individuals who have similar social rank. Social
class determines to some extent, the types,
quality, and quantity of products that a person
buys or uses.
3.5 CULTURE - the set of values, ideas, and
attitudes that are accepted by a homogenous
group of people and transmitted to the next
generation, also determines what is acceptable
with product advertising, determines what
people wear, eat, reside and travel.
_____________________________________
CHAPTER 7 - CUSTOMER-DRIVEN MARKETING
STRATEGY: CREATING VALUE FOR TARGET
WHAT IS MARKET IN MARKETING?
- refers to the group of consumers or organizations that
is interested in the product, has the resources to
purchase the product, and is permitted by law and other
regulations to acquire the product.
MARKET TARGETING
- a strategy that breaks a large market into smaller
segments to concentrate on a specific group of
customers within that audience. A brand uses target
marketing to put their energy into connecting with a
specific, defined group within that market.
MARKET SEGMENTATION
- The practice of dividing your target market into
approachable groups. Market segmentation creates
subsets of a market based on demographics, needs,
priorities, common interests, and other psychographic
or behavioral criteria used to better understand the
target audience.
6 BASIS OF MARKET SEGMENTATION
1. DEMOGRAPHIC SEGMENTATION - Refers to the
categorization of consumers into segments based on
their demographic characteristics. This includes
variables such as age, gender, income, education,
religion, nationality etc.
2. GEOGRAPHIC SEGMENTATION - A marketing
strategy to target products to people who live or shop in
a specific location. This approach is particularly useful if
you sell products that are subject to differences in
regional culture, climate or population.
3. PSYCHOGRAPHIC SEGMENTATION - type of
market segmentation that pays attention to consumers'
perceptions, thoughts, and beliefs and utilizes this data
to create customer segments. It involves the following:
> Values
> Interest
> Activity
> Behavior
4. VOLUME SEGMENTATION - The division of a
market into segments on the basis of the varying
volume of demand for the product by individuals, groups
or types of customers; typically, ranked into three (3)
levels:
> Heavy Usage (Online Shopping, Digital and
Contactless Payments, Online Entertainment)
> Medium Usage
> Light Usage
Kit Yarrow - a consumer psychologist, people are
currently purchasing items based on three needs: to
protect, to entertain and to connect.
5. BEHAVIORAL SEGMENTATION - based on
patterns of behavior displayed by customers as they
interact with a company/brand or make a purchasing
decision. It allows businesses to divide customers into
groups according to their knowledge of, attitude
towards, use of, or response to a product, service or
brand. These behaviors includes the following criteria:
> The types of products
> Content they consume
> Benefits that they will get
> Cadence of their interactions with an app,
website, or business.
6. MULTIPLE BASES SEGMENTATION - a process
that's also known as multi-segment marketing —
because the product or service that they sell applies to
target audience members in different ways. Multiple
segmentation bases are also commonly used if your
business sells more than one product or service.
5 REQUIREMENTS FOR EFFECTIVE
SEGMENTATION
1. MEASURABLE - The size and purchasing power
profiles of your market should be measurable, meaning
there is quantifiable data available about it. A
consumer’s profiles and data provides marketing
strategists with the necessary information on how to
carry out their campaigns.
2. ACCESSIBLE - means that customers and
consumers are easily reached at an affordable cost.
This helps determine how certain ads can reach
different target markets and how to make ads more
profitable.
3. SUBSTANTIAL - The market a brand should want to
penetrate should be a substantial number. You should
clearly define a consumer’s profiles by gathering data
on their age, gender, job, socio-economic status, and
purchasing power.
4. DIFFERENTIABLE - When segmenting the market,
you should make sure that different target markets
respond differently to different marketing strategies. If a
business is only targeting one segment, then this might
not be as much of an issue.
5. ACTIONABLE - meaning that they have practical
value. A market segment should be able to respond to
a certain marketing strategy or program and have
outcomes that are easily quantifiable.
MARKET POSITIONING
- A strategic exercise we use to establish the image of
a brand or product in a consumer's mind. Positioning
refers to the place that a brand occupies in the minds of
the customers and how it is distinguished from the
products of the competitors and different from the
concept of brand awareness. This is achieved through
the 4Ps: promotion, price, place, and product.
POSITIONING STRATEGIES
1. POSITIONING BASED ON PRODUCT
CHARACTERISTICS - Using product characteristics or
benefits as a positioning strategy associates your brand
with a particular feature beneficial to customers.
2. POSITIONING BASED ON PRICE - Positioning your
products or services on price is competitive pricing.
Usually, with a pricing positioning strategy, a brand aims
to be the cheapest or cheapest market, and value
becomes their position.
3. POSITIONING BASED ON QUALITY OR LUXURY
- Often the price and quality of a product align, certainly
in the consumer's mind, as the high price is often
associated with high quality. However, positioning a
product based on its high quality or ‘luxury’ is different
from positioning based on price.
4. POSITIONING BASED ON PRODUCT USE OR
APPLICATION - Associating your product with a
particular usage is another way to position your brand
in the market.
5. POSITIONING BASED ON THE COMPETITION -
Competitor based positioning focuses on using the
competition as a reference point for differentiation.
Brands highlight a key difference their product/service
offers in their marketing to make it seem favorable and
unique compared to other marketplace options. The
product or service becomes unique.