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MARKETING MANAGEMENT 12th edition
Defining Marketing for the 21st Century Kotler Keller
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Chapter Questions Why is marketing important?
What is the scope of marketing? What are some of the fundamental marketing concepts? How has marketing management changed? What are the tasks necessary for successful marketing management?
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What is Marketing? Marketing is an organizational function
and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
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What is Marketing Management?
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
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For an exchange to occur…..
There are at least two parties. Each party has something that might be of value to the other party. Each party is capable of communication and delivery. Each party is free to reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party.
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What is Marketed? Goods Services Events Experiences Persons Places
Properties Organizations Information Ideas
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Demand States Negative Nonexistent Latent Declining Irregular
Unwholesome Full Overfull
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Key Customer Markets Consumer markets Business markets Global markets
Nonprofit/Government markets
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The marketplace isn’t what it used to be….
Changing technology Globalization Deregulation Privatization Empowerment Customization Convergence Disintermediation
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Company Orientations Production Product Selling Marketing
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Marketing Mix and the Customer
Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication
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Core Concepts Needs, wants, and demands
Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment Marketing planning
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I want it, I need it….. 5 Types of Needs Stated needs Real needs
Unstated needs Delight needs Secret needs
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Marketing Management Tasks
Developing marketing strategies Capturing marketing insights Connecting with customers Building strong brands Shaping market offerings Delivering value Communicating value Creating long-term growth
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MARKETING MANAGEMENT 12th edition
3 Gathering Information and Scanning the Environment Kotler Keller
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Chapter Questions_1 What are the components of a modern marketing information system? What are useful internal records? What is involved in a marketing intelligence system?
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Chapter Questions_2 What are the key methods for tracking and identifying opportunities in the macroenvironment? What are some important macroenvironment developments?
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MIS Probes for Information
What decisions do you regularly make? What information do you need to make these decisions? What information do you regularly get? What special studies do you periodically request? What information would you want that you are not getting now? What are the four most helpful improvements that could be made in the present marketing information system?
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Internal Records Order-to-Payment Cycle Sales Information System
Databases, Warehousing, Data mining Marketing Intelligence System
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Steps to Improve Marketing Intelligence
Train and motivate sales force Motivate channel members to share intelligence Network externally Utilize customer advisory panel Utilize government data resources Purchase information Collect customer feedback online
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Needs and Trends Fad Trend Megatrend
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10 Megatrends Shaping the Consumer Landscape
Aging boomers Delayed retirement Changing nature of work Greater educational attainment Labor shortages Increased immigration Rising Hispanic influence Shifting birth trends Widening geographic differences Changing age structure
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Environmental Forces Demographic Economic Socio-Cultural Natural
Technological Political-Legal
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Population and Demographics
Size Growth rate Age distribution Ethnic mix Educational levels Household patterns Regional characteristics Movement
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Economic Environment Income Distribution Savings Rate Debt
Purchasing Power Income Distribution Savings Rate Debt Credit Availability
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Types of Industrial Structures
Industrial economies Industrializing economies Raw-material exporting economies Subsistence economies
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Social-Cultural Environment
Views of themselves Views of others Views of organizations Views of society Views of nature Views of the universe
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Natural Environment Shortage of raw materials Increased energy costs
Anti-pollution pressures Governmental protections
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Technological Environment
Pace of change Opportunities for innovation Varying R&D budgets Increased regulation of change
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MARKETING MANAGEMENT 12th edition
21 Tapping Into Global Markets Kotler Keller
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Chapter Questions What factors should a company review before deciding to go abroad? How can companies evaluate and select specific foreign markets to enter? What are the major ways of entering a foreign market? To what extent must the company adapt its products and marketing program to each foreign country? How should the company manage and organize its international activities?
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Global Firm A firm that operates in more than one
country and captures R&D, production, logistical, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
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Major Decisions in International Marketing
Deciding whether to go Deciding which markets to enter Deciding how to enter Deciding on the marketing program Deciding on the marketing organization
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Four Stages of Internationalization
No regular export activities Export via independent agents Establish sales subsidiaries Establish production facilities abroad
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Regional Free Trade Zones
European Union NAFTA MERCOSUL APEC
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Five Modes of Entry into Foreign Markets
Indirect exporting Direct exporting Licensing Joint venture Direct investment
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Direct Exporting Methods
Domestic-based export department Overseas sales branch or subsidiary Traveling export sales representatives Foreign-based distributors or agents
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Table 21.1 Global Marketing
Advantages Economies of scale Lower marketing costs Power and scope Consistency in brand image Ability to leverage Uniformity of marketing practices Disadvantages Differences in consumer needs, wants, usage patterns Differences in consumer response to marketing mix Differences in brand development process Differences in environment
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Cultural Dimensions Individualism vs. collectivism
High vs. lower power distance Masculine vs. feminine Weak vs. strong uncertainty avoidance
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International Product and Communication Strategies
Straight extension Communication adaptation Product adaptation Dual adaptation Product invention
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Price Choices Set a uniform price everywhere
Set a market-based price in each country Set a cost-based price in each country
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Whole-Channel Concept for International Marketing
Seller International headquarters Channels between nations Channels within nations Final buyers
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Global Organization Strategies
World as single market Multinational Glocal
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MARKETING MANAGEMENT 12th edition
6 Analyzing Consumer Markets Kotler Keller
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Chapter Questions How do consumer characteristics influence buying behavior? What major psychological processes influence consumer responses to the marketing program? How do consumers make purchasing decisions? How do marketers analyze consumer decision making?
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What Influences Consumer Behavior?
Cultural factors Social factors Personal factors
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Culture The fundamental determinant of a person’s wants and behaviors
acquired through socialization processes with family and other key institutions.
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Subcultures Nationalities Religions Racial groups Geographic regions
Special interests
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Fast Facts About American Culture
The average American chews 300 sticks of gum a year goes to the movies 9 times a year takes 4 trips per year attends a sporting event 7 times each year
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Social Classes Upper uppers Lower uppers Upper middles Middle class
Working class Upper lowers Lower lowers
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Characteristics of Social Classes
Within a class, people tend to behave alike. Social class conveys perceptions of inferior or superior position. Class may be indicated by a cluster of variables (occupation, income, wealth). Class designation is mobile over time.
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Social Factors Reference groups Family Social roles Statuses
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Reference Groups Membership Primary Secondary Aspirational
Dissociative
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Family Family of Orientation Religion Politics Economics
Family of Procreation Everyday buying behavior
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Personal Factors Age Life cycle stage Occupation Wealth Personality
Values Lifestyle Self-concept
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Brand Personality Sincerity Excitement Competence Sophistication
Ruggedness
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Key Psychological Processes
Motivation Perception Learning Memory
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Motivation Freud’s theory Maslow’s hierarchy of needs
Herzberg’s two-factor theory
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Perception Selective attention Selective retention
Selective distortion Subliminal perception
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Figure 6.4 Consumer Buying Process
Problem recognition Information search Evaluation Purchase decision Postpurchase behavior
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Sources of Information
Personal Commercial Public Experiential
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Non-compensatory Models of Choice
Conjunctive Lexicographic Elimination-by-aspects
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Perceived Risk Functional Physical Financial Social Psychological Time
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Other Theories of Consumer Decision Making
Involvement Elaboration Likelihood Model Low-involvement marketing strategies Variety-seeking buying behavior Decision Heuristics Availability Representativeness Anchoring and adjustment
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Mental Accounting Consumers tend to… Segregate gains Integrate losses
Integrate smaller losses with larger gains Segregate small gains from large losses
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MARKETING MANAGEMENT 12th edition
7 Analyzing Business Markets Kotler Keller
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Chapter Questions What is the business market, and how does it differ from the consumer market? What buying situations do organizational buyers face? Who participates in the business-to-business buying process?
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Chapter Questions How do business buyers make their decisions?
How can companies build strong relationships with business customers? How do institutional buyers and government agencies do their buying?
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Organizational Buying
Decision-making process by which formal organizations establish the need for purchased products and services, and identify evaluate, and choose among alternative brands and suppliers.
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Characteristics of Business Markets
Fewer, larger buyers Close supplier-customer relationships Professional purchasing Many buying influences Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically concentrated buyers Direct purchasing
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Buying Situation Straight rebuy Modified rebuy New task
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The Buying Center Initiators Users Influencers Deciders Approvers
Buyers Gatekeepers
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Of Concern to Business Marketers
Who are the major decision participants? What decisions do they influence? What is their level of influence? What evaluation criteria do they use?
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Types of Business Customers
Price-oriented Solution-oriented Gold-standard Strategic-value
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Handling Price-Oriented Customers
Limit quantity purchased Allow no refunds Make no adjustments Provide no services
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Purchasing Orientations
Buying Procurement Supply chain management
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Product-Related Purchasing Processes
Routine products Leverage products Strategic products Bottleneck products
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Methods of e-Procurement
Websites organized using vertical hubs Websites organized using functional hubs Direct extranet links to major suppliers Buying alliances Company buying sites
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Forms of Electronic Marketplaces
Catalog sites Vertical markets Pure play auction sites Spot markets Private exchanges Barter markets Buying alliances
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Assessing Customer Value
Internal engineering assessment Field value-in-use assessment Focus-group value assessment Direct survey questions Conjoint analysis Benchmarks Compositional approach Importance ratings
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Order Routine Specification and Inventory
Stockless purchase plans Vendor-managed inventory Continuous replenishment
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Desirable Outcomes of a B2B transaction: OTIFNE
On time In full No error
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Establishing Corporate Credibility
Expertise Trustworthiness Likeability
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Factors Affecting Buyer-Supplier Relationships
Availability of alternatives Importance of supply Complexity of supply Supply market dynamism
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Categories of Buyer-Seller Relationships
Basic buying and selling Bare bones Contractual transaction Customer supply Cooperative systems Collaborative Mutually adaptive Customer is king
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Opportunism Some form of cheating or undersupply relative to an
implicit or explicit contract.
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