NA_CCMCorporate Marketing Management

Mitchell Young

What is marketing?

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

--Kotler and Armstrong (2010).

Marketing is the management process for identifying, anticipating and satisfying customer requirements profitably.

--The Chartered Institute of Marketing. Accessed 2012.

In other words…

‘There will always be need for some selling. But the aim of marketing is to

make selling superfluous. The aim of marketing is to know and understand the

customer so well that the product or service fits him and sells itself. Ideally,

marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available’.

Peter Drucker

What is marketing management?

Marketing management is theart and science

of choosing target markets and getting, keeping and growing

customers throughcreating, delivering and communicating

superior customer value.

The 7Ps of the marketing mix

Figure 1.4 The 7Ps components of the marketing mix

From 4 P’s to 4 C’s

4 P’s Model 4 C’s ModelProduct CustomerPrice CostPlace ConveniencePromotion Communication

(Competition)

Transaction Relationship

marketingFocus

Time perspective

Primary communication

Customer feedback mechanism

Market size

Criterion for success

One-off Exchange, brand management

Short-term focus

Mass communications

Isolated market research

Mass markets or market segments

Market share

Ongoing exchanges, customer management

Long-term focus

Personal communications

Ongoing dialogue

Market of One

Mind share (share of customer)

Harvard Business Review January-February 2010

Is your company customer focused? Can middle managers accurately describe

your customer promise? Can all members of your executive team

name three things that most undermine trust among your existing customers?

Is your brand really the best option? Will it continue to be?

Have you embraced any novel ideas that have produced significant innovations in the last year?

Have front line staff posed any uncomfortable questions or suggested important improvements?

The marketing environment

Company Suppliers Distributors Dealers Target customers

Demographic Economic Physical Technological Political-legal Social-cultural

Task environment Broad environment

The Marketing Plan (1of2)

I. Executive Summary

II. Current Situation (industry analysis, internal analysis, consumer analysis)

III. Environmental Analysis (PEST) IV. Market Segmentation and Target

Market Analysis V. SWOT Analysis VI. Marketing Objectives Selection

The Marketing Plan (2of2)

VII. Sales ForecastVIII. Marketing Mix Strategies

Product Promotion Price Place/Distribution

IX. Implementation PlanX. Follow up and Control Plan

Three Product Levels

Definitions of business

BP sells fuels Biersdorf sells

cosmetics Renault sells

automobiles Xerox makes copy

equipment

BP sells energy Biersdorf sells

beauty Renault supplies

transport vehicles Xerox improves

office productivity

Product definition Market definition

What are they selling?

Product or service or brand Core Product Actual Product Augmented Product

Ford Focus Freedom to travel A motor car  

Spanish Holiday Relaxation   Holiday insurance

Budget/No Frills Airline e.g. EasyJet or Ryanair -

  An airline journeyFood bought during

your flight

Chelsea Football Club Excitement and leisure Sporting event  

NikeAssociation with the

best in sports. 

Nike online allows you to personalise your

trainers

Hilliers' Garden Centres   Products for gardening Hilliers' gardening club

Product or service or brand Core Product Actual Product Augmented Product

Ford Focus Freedom to travel A motor car Ford finance

Spanish Holiday Relaxation Two weeks in a resort Holiday insurance

Budget/No Frills Airline e.g. EasyJet or Ryanair -

Gets you from A to B cheaply

An airline journeyFood bought during

your flight

Chelsea Football Club Excitement and leisure Sporting eventPersonalised shirts and

other merchandise

NikeAssociation with the

best in sportsShoes and other

clothing

Nike online allows you to personalise your

trainers

Hilliers' Garden Centres Leisure and relaxation Goods for gardens Hilliers' gardening club

Porter’s Generic Strategies

Sources of Growth