Marketing Management Summary

This is a summary of the Marketing Management course in the first year in the first block of the study International Business Administration at the Erasmus University in Rotterdam.

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Marketing strategy
Marketing strategy
strategy to achieve certain objects (sales volume/growth rate..)
 consider a firm’s limitations & core competencies
Corporate strategies
sum of business unit strategies + plans fr nw business initiatives
Perceived value
the value customers already see in the product
Potential value
educating customers about product benefits (mrkt cmmnction)
Market
the place where buyers & sellers meet
Market segment
customers tht r alike: perceivng/using product, buying behavior
 to delineate groups according to their need, market potential & buying behavior
Conscious price parallellism similarity of prices not reached through collusive agreement
Installed base
volume of a brand’s product currently used by the customers
Elctrnc commerce channels (EDI) Electronic Data Interchange & internet  drawbacks: market is limited & security concerns
Personal selling
to difficult through mass media/too few prospective buyers
Media advertising
efficient for huge groups of prospective buyers/general info

Elements of a marketing strategy:
ele
Imp
- Product/market selection (what markets/what product lines?)
ments
- Price
(price for individual products/relative to others?)
or
t
- Distribution systems
(independent distributors/agents?)
- Market communications
(direct mail/trade shows/telemarketing?)
vary
Ele
- Product service
(products which need repair/maintenance)
ments
- Technnical service
(supporting customer’s manufacturing…)
try y
- Plant location
(price of shipping/government regulations)
- Brand strategy
(kind of image u want to build for ur customers)

Marketing mix
all ^ elements together
 Can vary across different markets, growth stages, products, competitors

4P’s (product, price, place, promotion)
- Product
attributes+benefits+risks+disadvantages the buyer obtains
o Product/market selection: right target market, prodct, production technology
 Value of the product
(most valuable)
 Long-run growth potential (market size/opportunities, profit)
 Resource commitments
(invest R&D/marketing/prodction)
 Competitive positioning
 Company-prodct/market fit
- Price
o Skimming
introducing with a high price and then bring down
 Lowrisk, maximize unitprofits early, experiences w low volumes
o Penetration pricing quickly invading the market by setting low prices
 Highrisk,replaces competition,quickly scale economies+ experience
 The following conditions have to be met:
 The product must be defect-free
 Sufficient production capacity to fill the demand
 Distribution channels must be available
 Product adaption should be quick
Price is affected by 5 factors:
o Supply/demand (high spply=low prices/high demand=high prices)
o Production & overhead costs
 Efficient manufacturing/distribution & achieving scale economies
o Competition (price pressures)
 Product differentiation
(monopoly because unique prdct)
 Dampen intrabrand competition among resellers
 Exercising price leadership
(power to set price levels)
o Buyer bargaining power = able to put downward pressures on price:
 If the buyer group forms a major amount of the company’s sales
 Improve power: differentiating their products
 If the buyer has several options to choose from
 Won’t happen if the customer is satisfied with ur product
o Product value to potential customers (most important)
 Price the product to the value of the product given by customers
 Perceived consumer value differs across market segments
 only successful combined wth functional product differentiation
 otherwise: black-market phenomenon
- Place (distribution channels)
o
Installed base
Market share leadership
Product
Channels
superiority
strength
o Direct sales reps
employees that call directly on its customers
 Big amount,extensive prodct service,technical support, customization
o Sales agents
independnt operatrs, carry the lines of several suppliers
 Same as direct sales reps + represent variable cost (commission)
o Distributors
buy from many suppliers & have wide product lines
 Small amount of different items + ready & reliable availability
o Retail dealers
large infrastructure supplies end-products to consumers
 Some are franchised
 Conform to store design, service quality, product presentation
 wrkng w intermediaries: prdcts r stocked/display properly/prices don’t deteriorate
 factors that gain strength
 Selective distribution instead of intensive distribution
 Superior breadth & quality of the product line
 High supplier-reseller-interdependency
 Supplier’s own saleforce present in resale level
 End-market demand development
- Promotion (Market communications)
o Successful use of channel (telemarketing, third-party influencers, television)