Chapter 15 - Done Flashcards
What does the marketing cycle emphasise?
- Understanding the customer results in the ability to create, communicate and deliver value
- Evaluation of marketing performance builds further understanding that enables the marketing program to be refined to improve future performance
What are the processes needed in marketing?
Understanding, planning, implementing and evaluation
What do Understanding, planning, implementing and evaluation require?
- Develop a detailed understanding of the market
- Plan how to achieve the organisation’s goals
- Implement the plan
- Continuously evaluate marketing performance
What is marketing management?
The management task of understanding the market, and planning, implementing and evaluating marketing activities
What does marketing management aim to do?
Aims to ensure that the organisation achieves its marketing objectives by maximising the value obtained from the marketing exchange — for the organisation itself and its customers, clients, partners and society at large
What are the benefits of market planning?
Research shows that organisations with a marketing philosophy perform better for their stakeholders — they offer more value to customers and clients, better financial returns to partners and owners, and more benefits for society at large
What is the hierarchy of strategic planning?
NEED TO INSERT THE IMAGE HERE
What is the relationship between marketing and human resources?
The marketing and human resources functions need to work together to recruit the right people to project the required image
What is the relationship between marketing and finance?
The marketing and finance functions need to work together to ensure that funding is available to create, communicate and deliver the organisation’s products and to ensure that marketing activities operate within the financial resources of the organisation
What is the relationship between marketing and accounting?
The accounting and marketing functions need to work together to ensure marketing has comprehensive, timely and structured data on sales and past marketing performance, and that the marketing function is providing the accounting function with the necessary information to ensure mandatory business and legal accounting obligations are fulfilled
What is the relationship between marketing and Information systems?
- Information systems and marketing work together to ensure marketing has the necessary tools to communicate and deliver the product to customers
- Incorporating information technology, can be crucial in ensuring the product is delivered at a satisfactory level of customer service
What is the relationship between marketing and research and development?
Research and development has an important role in keeping marketing up to date with new technologies and innovations and in responding to market needs and wants as advised by the marketing area
What is the relationship between marketing and production?
Marketing and production must communicate and cooperate to ensure that products are produced in the appropriate quantities, at the appropriate quality and at the right time
What is the relationship between logistics and marketing?
Delivery of products to customers when and where they are wanted is a crucial part of marketing and the marketing and logistics departments (such as warehousing and transport) must work together to ensure this aspect is completed
What are the different marketing objectives?
Monetary objectives
Market objectives
Customer objectives
Societal objectives
What is market share growth?
Market share growth is linked with profit, but it should not be mistaken for the same thing
* Businesses may undercut the prices of existing competitors to attract trial customers
What is customer retention?
To ensure profitability and achieve market share growth, the business must not only win new customers, but also retain the loyalty of its existing customers
What is customer relationship management?
Refers to the processes and practices put in place to identify, track and use customer information and preferences to provide superior customer service and sustain long‐term relationships
What are societal objectives of organisations?
- In addition to the commonplace organisational objectives, many businesses have objectives aimed at the good of society
- These have been developed out of a sense of obligation to the society in which the business operates and the increasing importance placed on social responsibility by growing numbers of potential customers
What is the SMART model refer to?
Specific - Objectives need to be clearly defined so that it is easy to understand what is to be achieved and what will be considered successful
Measureable - The exact measure must be stated and the objective must be able to be measured through some means
Actionable - The organisation needs to ensure that its business‐unit managers, such as marketing managers, have the authority and resources to take the actions necessary to achieve the objectives that are set
Realistic - There is little point setting unrealistic marketing objectives
Time bound - To ensure consistent progress, and to ensure that progress can be measured, objectives should have milestone dates set
What are marketing metrics?
Specific measures of marketing performance
What are the Australian Marketing Institute’s framework’s underlying principles require?
This framework’s underlying principles are that metrics should be linked to strategy, and should include as a minimum four key elements:
- Return on investment
- Customer satisfaction
- Market share
- Brand equity
What is needed to be kept in mind when choosing marketing metrics?
Marketers need to choose the metrics that best meet the activities they are undertaking
What are the two types of barriers to implementing plans?
Internal and External barriers
What are some internal barriers?
- Inertia/resistance to change - Implementing a change as fundamental and far‐reaching as a shift from an internal orientation to a market orientation is difficult, time‐consuming and expensive
- A lack of coordination and/or cooperation - Politics, the quest for power, self‐interest and professional ego can result in a lack of coordination and cooperation between different functional areas
- A lack of a strong leadership
- A short term outlook - Many people working in organisations are most concerned with dealing with immediate challenges and completing the work at hand, but ongoing business success is dependent on long‐term planning and actions based on sustainable competitive advantage
What are the key features of a long-term market-oriented approach?
Key features of a long‐term market‐oriented approach include building customer loyalty, reputation and goodwill
What are the external barriers?
Environmental factors
* In addition to the internal factors described above, external environmental factors affect the ability of an organisation to implement the marketing concept
What are the problems faced by marketers?
Saturation
Fragmentation
What is saturation?
It is becoming more and more difficult for marketing organisations to create and sustain a competitive advantage or indeed to differentiate their offerings at all in the midst of extensive competition
What is fragmentation?
The market increasingly comprises smaller and smaller niches with specific needs
How can an organisation maximise success?
- Planning - Action plan, Emergent approach, Contingency Approach
- Motivation and incentives - Bonuses, recognition etc
- Empowerment - Enabling employees to make the decisions they need to make to properly do their job
How can the organisational structure assist the organsiation?
It can be an important factor in the success or otherwise of implementing the marketing concept
What are the options for structuring the marketing department?
Customer structure
* Organisations with distinctly different groups of customers may organise the marketing department by customer type
Product structure
* In a business with a diverse array of products, it may make more sense to have separate units dedicated to particular products or product lines
Functional structure
* In a marketing department organised along functional lines, there will be separate units dedicated to functions such as market research, sales and advertising
Regional structure
* Organisations that operate across dispersed geographic regions may be best to structure their marketing department along regional lines so that each marketing team can be located close to their target market and cater for regional differences
What is the organisational culture?
The organisation’s shared values and behaviours
What is important to remember with market evaluation?
It is a continuous process which must be done continuously in order to monitor performance of the organisation
What must be considered with metrics used to evaluate?
In order to be effective, the metrics used to assess performance must be relevant to the organisation’s strategy
* Marketing metrics should be chosen carefully to ensure they are suitable and they should be applied fairly and objectively
Hong Kong evaluation of “EatSmart” campaign
What are market metrics used for?
Used to both set objectives and to evaluate marketing performance against marketing objectives
What is customer lifetime value?
It is the dollar value of a customer relationship based on the present value of the projected future cash flows from the business/customer relationship
* provides a basis for quantifying the long‐term health of the customer/s’ relationships
What are some different marketing metrics?
NEED TO INSERT THE IMAGE HERE
What is a mission statement?
A summary statement of the overarching goals of the organisation
What is the corporate strategy?
A specific but high-level plan to achieve objectives that reflect overall mission of the organisation
What is the business-unit strategy?
Strategies for the various business areas within an organisation to guide their contribution to achieving the overall corporate objectives
What are monetary objectives?
- Commercial organisations exist ultimately to generate wealth for the business owners
What are market share objectives?
Sales volumes
Market share growth
What are customer objectives?
Customer relationship management
Customer satisfaction
Customer retention rate
What are societal objectives?
Corporate Social Responsibility
What are the components of a marketing plan?
Executive summary Introduction Situation analysis - Company Analysis - Market analysis - Competition analysis - Customer analysis - SWOT analysis Objectives Target markets Marketing mix strategy - 4 P's/7 P's Budget Implementation Evaluation Conclusion
