Part 1: The market-led organization

the achievement of corporate goals through meeting and exceeding customer needs better than the competition.

customer orientation, integrated effort, goal achievement

corporate activities are focused upon providing customer satisfaction

all staff accept the responsibility for creating customer satisfaction

the belief that corporate goals can be achieved through customer satisfaction

perceived benefits - perceived sacrifice

price value, performance value, emotional value, rational value

the delivery of value to customers at a profit

production orientation, sales orientation, customer orientation

production capabilities -> manufacture product -> customers

products and services -> aggressive sales effort -> customers

customer needs -> potential market opportunities -> marketing products and services -> customers

• customer concern through business
• know customer choice criteria and match with marketing mix
• segment by customer differences
• invest in market research (MR) and track market changes
• welcome change
• try to understand competition
• marketing spend regarded as an investment
• innovation rewarded
• search for latent markets
• be fast
• strive for competitive advantage

• convenience comes first
• assume price and product performance key to most sales
• segment by product
• rely on anecdotes and received wisdom
• cherish status quo
• ignore competition
• marketing spend regarded as a luxury
• innovation punished
• stick with the same
• why rush?
• happy to be me-too

concerned with inputs and outputs

doing the right things

• ineffective + inefficient = goes out of business quickly
• effective + efficient = thrives and does well
• ineffective + efficient = dies slowly
• effective + inefficient = survives

objective in marketing is maximization of shareholder value

• business mission
• marketing audit
• SWOT analysis
• marketing objectives (strategic thrust, strategic objectives)
• core strategy
• target markets (competitive advantage, competitor targets)
• marketing mix decisions
• organization and implementation
• control

the forces and actors that affect a company's ability to operate effectively in providing products and services to its customers and it includes the micro- and macro- environments

consists of the actors in the firm's immediate environment or business system and include: suppliers, customers, distributors, and competitors

consists of a number of broader forces that affect not only the company but also the other actors in the microenvironment and include: physical, political/legal, economic, social, and technological

economic growth and unemployment, interest rates and exchange rates, taxation and inflation

demographic forces, cultural forces, corporate social responsibility and marketing ethics, and the consumer movement

the european union, pro-competitive legislation, consumer legislation, and codes of practice

climate change, pollution, conservation of scarce resources, recyclable and non-wasteful packaging, use of environmentally friendly ingredients, and animal testing of new products

lives and company's fortunes can both be affected significantly by technology in a multitude of ways

the practice of monitoring and analyzing a company's marketing environment

• environmental change (the initial change)
• ignorance then delay (barriers to change)
• 3 options:
• gradual strategic repositioning
• retrenchment (deals with efficiency problems but not effectiveness issues)
• radical strategic repositioning (riskier than the gradual)

• who is important in the buying decision?
• how do they buy?
• what are their choice criteria?
• where do they buy?
• when do they buy?

• initiator: the person who begins the process of considering a purchase
• influencer: the person who attempts to persuade others in the group concerning the outcome of the decision
• decider: the individual with the power and/or financial authority to make the ultimate choice regarding which product to buy
• buyer: the person who conducts the transaction
• user: the actual consumer/user of the product

• B2C: need recognition/problem awareness, information search, evaluation of alternatives, purchase, post-purchase evaluation of decision
• B2B: need recognition/problem awareness, determination of specification and quantity of needed item, search for and qualification of potential sources, acquisition and analysis of proposals, evaluation of proposals and selection of supplier(s), selection of an order routine, performance feedback and evaluation

• technical: reliability, durability, performance, style/looks, comfort, delivery, convenience, taste
• economic: price, value for money, running costs, residual value, life cycle costs
• social: status, social belonging, convention, fashion
• personal: self-image, risk reduction, morals, emotions

information processing, motivation and values, beliefs and attitudes, personality, lifestyle, lifecycle

culture and subculture, social class, reference groups

• buy class: straight re-buy, modified re-buy, new task
• product type: product constituents, product facilities, MRO's
• importance of purchase: large sums of money, uncertainty of outcome

minimize stocks by organizing a supply system that provides materials and components as they are required

industry specific

cross industry boundaries and cater for supplies such as MROs, companies seeking supplies place their offers and potential vendors bid for the contracts

process of creating, developing and enhancing relationships with customers and other stakeholders

process whereby the buyer attempts to persuade the supplier to provide exactly what the organization wants

marketing databases, customer relationship management (CRM) systems (allows measurement of customer retention, defect, and acquisition), website analysis

secondary research, marketing research, ad hoc and continuous research (ad hoc - focuses on a specific problem and collects data at one point in time) consumer panels (large number of consumers needed over a length of time), custom research and syndicated or omnibus research (research collect by firms on regular basis then sold to other firms), television vierweship panels, and exploratory descriptive an casual research

• initial contact: ex a quick online search for information*
• research brief: meeting to decide the form of the research, includes background info., sources of info., scale of the project, and timetable*
• research proposal: includes a statement of objectives, what will be done, timetable, and costs*
• data collection stage: qualitative, quantitative, focus groups, depth interviews, observation, ethnographic research, surveys**
• data analysis and interpretation: common mistakes are infer cause and affect when only association has been established & interpretation of means and percentages are subject to sampling error

• exploratory research: can be conducted where * are in the the process
• descriptive or casual research: can be conducted where ** are in the the process

a system in which marketing information is formally gathered, stored, analyzed and distributed to managers, in accord with their informational needs on a regular planned basis.

the identification of individuals or organizations with similar characteristics that have significant implications for the determination of marketing strategy

• better matching of customer needs gives
• improved customer retention
• enhanced opportunities for growth
• enhanced profitability
• more effective targeting of communications
• opportunities of segment dominance

• behavioural: benefits sought, purchase occasion, purchase behaviour, usage, perceptions and beliefs
• psychographic: lifestyle, personality
• profile: demographic, socio-economic, geographic

criteria: organizational size, industry, geographic location, choice criteria, purchasing organization

• effective
• measurable
• accessible
• actionable
• profitable

refers to the choice of specific segments to serve and is a key element in marketing strategy

• undifferentiated marketing: marketing mix -> whole market
• differentiated marketing: marketing mix specifically for a specific segment, focused marketing
• customized marketing: marketing mix specific to each customer

the act of designing the company's offering so that it occupies a meaningful and distinct position in the target customer's mind

• clarity
• consistency
• credibility
• competitiveness

changing the target markets, the differential advantage, or both