Marketing – Synthesis - Essay Example

Without core competences and the drive and commitment or managers and employees sustain success in competitive mass is impossible. But make planning is crucial because it put together this competences and commitments and focus on what really counts: satisfy the needs of customers. When companies put together core competences, drive and commitment and make planning are what we call marketing orientated companies. Let’s define what Marketing orientation means. A business achieves success by organizing Itself to meet the needs of target consumers more effectively than Its competitors.

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So Important keys are success, organization, customer’s need and competition. Looking to success: the essential goal of the firm growth and profits wants to be both make objective and financial objective and they should make everybody happy (shareholders, workforce, suppliers.. ). Unfortunately meeting this 2 objective is not easy and usually make planning has to choose between this 2 key measures of the success, for instance if prices are gutted, growth goes up but profits margins goes down, so in taking make decisions managers have to balance growth and profitability.

Every make decisions have a positive and a negative effect and usually the positive effect comes slow and the negative effect comes fast, moreover if the many does not make Investments it will be exit the markets. To summarize In making make decisions managers have to balance positive and negative effects and long term vs. short term profits. In practice however Is not always like this and some companies are more short term earnings orientated (e. G British and American companies) or long term profits orientated (egg Japan’s enterprises).

And this happens because in many cases decisions are dictates by financial priorities that in the short run lead to an increase in profits but in the long run to a decline of the market share so it have to be prevented a short term orientation through the make lancing. This brings UT to the 2nd characteristic that is the make organization. Too many companies give too much weight to the middle and top managers and The consequences are unmotivated front-line personals, slow decisions making and big overhead costs.

In today’s firm companies are forced to change the organization, powering the from-Ellen people making everyone closer to the costumers. Costumers have choices so the central focus is understanding what needs customers have or might have and coming out with innovative solutions. The final aspect of competitive make is competitiveness because the firms needs to rate competitive advantages, a reason why the costumers choose your company and not others.

Costumers choose on the base of perceived value which is a function of utility (positive related) and price (negative related) video 2: how to develop make plan – chi 2, 6 7 A make plan should start with a view on the actual situation. Managers need to ask 4 questions: where are we now? How did we get here? Where are we heading? What should be done? Next managers should carefully assess Strengths and Weaknesses (internal opportunities), Opportunities and Threats (external opportunities) of the equines, the so called SWAT analysis.

The companies marketing auditing must be followed by an attempt to define marketing mission. The mission statement has 2 purposes: define the scope of the business by asking “what types of costumers we want to serve? ” and “what need they have that we can try to meet? ” and define the goal of the business which has to be chided by a specific deadline. The 3rd group of objectives that have to be covered is the marketing objectives: the plan has not only to show out the sales objectives but also the market share of the objectives because is a critical determinant of success.

The reason for this are mainly two: first the brand leader gets much return of marketing expenditure and because of scale economies he can have lower marketing costs per unit, second: because the brand is the most preferred by customers they can discount less. This combination of higher investments, lower costs and higher real prices means much profit margin of the brand leader. The 2nd series of objectives in which the marketing mission needs to be narrowed is innovation objectives: what satisfy the costumer today, will not satisfy him tomorrow.

The 3rd kind of objective to be deduced from mission are resource objectives. Achieving the make and innovation goals depends in terms of the ability to acquire capital and the skills to do the work. Following the resource objectives are the productivity objectives (Managers can make objective productive), the social objectives (what the business does for the community) and finally the profit objective which comes last because they depends by other objectives. So profit is the result of a successful marketing and innovation.

Video 3: 8 12 14 The portfolio analysis underline which should the the priorities of the managers (e. G which products and market should receive investments). The original exposition of the portfolio analysis was done by peter trucker who wrote: ” if you look inside any business, products follow 6 categories: tomorrow’s breadwinners, today’s business and in-between category creates profits while “yesterday’s business”, “also ranks” and “failures” which destroy firm’s value”. Managers have to prioritize the first 2 categories and some products on the ere one, the others needs to be cancelled out. Racket portfolio along 2 dimensions: business position and market attractiveness, both can be strong, medium or weak and products can be categorized according this abeles to create a marketing strategy. Marketing strategy that implies 2 key issues: the segmentation (different types of costumers have different needs/ different categories have different prices sensitivities) and positioning. The managers have to answer to this immigrant questions: “What criteria should be used for segmenting market? (The basic criteria should be differences in needs among costumers), “How can be modify a product/service to make it more attractive to each separate group? ” and than “what prices can be charged to each segment? ” videos- chi 5 Positioning instead requires a research phase (target market, competitor brands, choice criteria and customer evaluation) and a strategy phase (who they should position their offer? ). Two different positioning strategy can be distinguished: real positioning (based on creating objective that can be valuated in different ways by costumers e. Being first, create a new attribute, strengthen the current position or search for a new position) and psychological positioning (based on influencing people about the brand e. G. Alter belief about the brand, altering attribute importance weights, deposition competitors brands). Once we have decided the strategic priorities we come to planning the marketing mix which is usually called “the product, price, promotion, place/distribution. Video 5- chi 9 10 18 19 Product: nowadays there are many products that are identical in performance, reliability and operation; the main difference is the value of the brand.

Physical or tangible component is only the initial component of the brand, since it can be easily copied, the marketing has to put around the product a defensive wall called basic brand, which gives a name that differentiate the product and create a particular sensing and packaging. But this is not enough since competitors can came out with good alternatives. So we build the augmented brand e. G supporting the brand with services, guarantees and financial support. The final stage is create a potential brand where the cursor say the brand as a way to make a personal statements (e. G social confidence, estimate).

Service:are important for 3 main reasons: for differentiate the products, to make products difficult to copy and because poor services lead to high costs. Price: originally was determined only by the cost of product/distribute the product ND by the profit margin but nowadays also by the perceived value of the brand. The pricing strategies can be divided in 9 possible strategies according the different levels of price and quality. The price should charge depending on the competitive value of the brand, the problem is that competitors always try to corrode this value by engaging their offer. Neural promotion varies according the product’s life cycle. In the early stage advertising and public relations are often the most efficient in generating the expansion of the new product. As the market matures, personals selling and sales rumination becomes more imposition in extracting purchaser. Place/distribution: companies use distributors because they believe outsiders can better and cheaply deliver the product that can be done internally. 2 criteria determine the choice in distribution: target market segment, complexity of differential advantage and distributor commitment. Video chi 20 21 after the make mix is formulated the company need to create a detailed action plan who answer to the following questions: “what will be done? “, “when will it be done? ” and “aha is responsible for doing it? “. The action plan then ensures that the strategy ill be implemented and create a pattern that has to be followed by managers in the next 12 months. Finally the financial implications of the plan have to be calculated in the budget phase of the marketing plan.

Once the plan is completed managers should review the all organization to see if it is appropriate for the new strategy. A final organization of issues should create a relationship among marketing and sales. When companies have a separate sales and marketing department each reporting to a different director: sales director is responsible for the sales force and o the achievement of the company sales target and marketing director is in charge of advertising and other elements of the marketing mix. This arrangement however produces tensions and conflicts (e. In time, objectives, costumer focus). As a result companies decided to put together sales and marketing departments. Summarizing, marketing planning is crucial because it forces managers to look head at the key issues that determine the business future survival, profitability and growth. Marketing plan brings costumers to the first row of the company’s value chain. The majority of business are still production oriented, the product are made, sold and consumers are at the end of the chain rather than in the beginning.