Marketing Summary

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 1: marketing principles and society Define the marketing concept. Marketing is the process by which organizations anticipate and satisfy their customers’  needs to both parties benefit. benefit. It involves mutual exchange exchange of benefits benefits but over the last twenty years, the marketing concept has increasingly been amended to recognize the import importanc ance e of the long-t long-term erm custom customer er relati relations onship hip to an organi organizat zation ion rather rather than than a simple transactional focus.

Explain how marketing has developed over the twentieth century. While some writers have suggested a simple production era, sales era, marketing era development for marketing over the twentieth century, others recognize that marketing has long existed existed in differ different ent forms in differe different nt countrie countries. s. Neverth Nevertheles eless, s, there is an increas increasing ing recogn recogniti ition on that that market marketing ing is a more more system systemati atic c organi organizat zation ional al activi activity ty through market research, and sophisticated promotional activity, than it ever was. There is incr increa easi sing ngly ly a move move towa toward rds s the the reco recogn gnit itio ion n of the the need need for for comp compan anie ies s and and organizations to behave responsibly in re lation to society.

Describe the three major contexts of marketing application, i.e. consumer goods, business-to-business, and services  marketing. Market Marketing ing is often often divide divided d into into the above above three three types, types, recogn recognizi izing ng that that market marketing ing activities are designed based on the context in which an organization operates. The consumer goods marketing approach has been the dominant one stressing the 4Ps and the marketing mix. Business-to-business marketing tends to focus more on principles of relationship marketing, particularly those required in bringing together members of a supply chain. Servic Services es market marketing ing stress stress the intang intangibl ible e nature nature of the product, product, the need need to manage customer expectation, and levels of service quality.

Understand the contribution marketing makes to society  The aggregate marketing system delivers us, as consumers and citizens, a wide array of  products and services, either directly or indirectly through business markets, to serve our needs and wants. There is much that is positive about the aggregate marketing system and it has served to improve the standards of living of many around the world.

Assess critically the impact marketing has on society  However, the aggregate marketing system has its faults, by also allowing the promotion and distribution of products and services which may be inherently bad for us, and the over-consumption of things which in moderation are good for us. Understanding why we think about marketing in the way that we do is helpful in understanding both the true nature nature of market marketing ing can aid and society. society. We sugges suggestt adopti adopting ng a critic critical al market marketing ing perspectiv perspective e as a natural natural approach to learning learning marketing. marketing. As society society is changing, new crit critic ical al appro approac ache hes s to mark market etin ing g are are incr increa easi sing ngly ly devel developi oping ng (e.g (e.g.. the the fair fair trad trade e movement).

Page 1from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 2: the marketing environment Identify and define the three key areas of the marketing  environment. The marketing marketing environment environment incorporates incorporates the external external environment environment,, the performance performance environment, and the internal environment. The external environment incorporates macro environmental factors, which are largely uncontrollable, and which an organization ge nerally can’t influence The performance environment incorporates key factors within an industry, which impact upon strategic decision-making. The internal environment is uncontrollable and is the principal means, through its resources base, by which an organization or ganization influences its strategy.

Describe the key characteristics associated with the marketing  environment. The external external environment environment consists of the political, political, social, and technologic technological al influences influences,, and organizations have relatively little influence on each of these. The performance environment consists of  the competitors, suppliers, and indirect service providers who shape the way the organizati organization on achieves achieves its objectives. objectives. Here, organizations organizations have a much stronger level of influence. • • •

The internal environment concerns the resources, processes, and policies an organization manage manages s in order that that it can attempt attempt to achiev achieve e its goals. goals. These These elemen elements ts can be influenced directly by an organization.

Explain Pestle analysis and show ho it is used to understand the  external environment. We considered the various various components components of the external external marketing marketing environment environment in detail using the PESTLE acronym which includes the following factors; political, economic, socio-cultural, technological, legal, and ecological. It is important to note that some of these factors are more important than others in any particular industry. We use the acronym to identify possible factors, which may impact upon any particular organization. • • • • • •

Explain the environmental scanning process. The environmental scanning process consists of  the data-gathering phase, •

Page 2from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

• •

the environmental interpretation/analysis phase, and the strategy formulation phase.

The three processes are linked but over time, more attention is focused on each one more than the others so that at the end of the process, greater effort is expended on using using knowledge knowledge gleaned gleaned from the external external and competitive competitive environment environments s to formulate formulate strategy.

Analyse the performance environment using an appropriate model. The most common technique used to analyse the performance environment is Porter’s Five Forces Model of Competitive Analysis. He concludes that the more intense the rivalry between the industry players, players, the lower will be the performance. On the other hand, the lower the rivalry, the greater will be the performance of the industry players. Porter’s five forces comprise: Suppliers, Buyers, New entrants, Competitors and, Substitutes. • • • • •

Understand the importance of analysing an organization’s  international internal environment and identify the key  resources and capabilities. An organization’s principal resources relate to the product portfolio that it carries and the financia financiall resources resources at its disposal. disposal. We use product product portfolio portfolio analysis, analysis, specifica specifically lly the Boston Bost on Box, to help us determine determine whether products are stars, stars, dogs, question question marks, marks, or cash cows, each category of which provides differing levels of cash flow an resource requirements to develop. It is important to undertake a marketing audit as a preliminary measure in order to allow proper development of marketing strategy.

Page 3from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 3: marketing psychology and consumer buying behaviour Explain the consumer product acquisition process  Consum Consumer er buying buying behavi behaviour our has both both ration rational al and irratio irrational nal compo componen nents ts althou although gh rational theories have dominated the marketing literature till the present. Although there are a variety of models of consumer buying behaviour, the consumer produc productt acquis acquisiti ition on model model is perhaps perhaps the simple simplest st to underst understand and,, stres stressin sing g how the consumer goes through the six key stages in the product acquisition process including: Motive development, Information gathering, Product evaluation, Product selection, Acquisition, and Re-evaluation. • • • • • •

Understand how consumers respond to the diffusion of innovations  Consumers Consumers respond differently differently to the diffusion diffusion of innovatio innovations. ns. According According to research research by Rogers (1962), when an innovative product is launched onto the market, a small group of buyers, known as innovators will instantly instantly purchase it, followed, followed, after time, by early adopters, then by the majority of buyers, then the late majority of buyers, followed lastly by the laggards. laggards. Consequently, Consequently, when developing developing marketing strategy, strategy, it is important to recognize that different tactics are required to persuade the different customer groups to take up a particular product or service at the different stages.

Explain the processes involved in human perception, learning, and  memory in relation to customer choice  The human perception, learning, and memory processes involved in consumer choice are comp comple lex. x. Ma Mark rket eters ers shou should ld ensur ensure e when when desig designi ning ng adve advert rtis isin ing, g, when when devel developi oping ng distri distribut bution ion strate strategie gies, s, when when design designing ing new goods goods or servic services, es, and other other market marketing ing tactics, that they (repeatedly) explain this information to consumers in order for them to engage with the information and then subsequently retain it, if it is to influence their buying decision.

Understand the importance of personality and motivation in  consumer behaviour  Peop People le are are moti motiva vate ted d in thei theirr cons consum umer er behav behavio iour ur diff differe erent ntly ly depen depende dent nt on thei theirr personalities and, to some extent, how they feel their personality fits with a particular bran brand d of produ product ct or servi service ce.. Murra Murray’s y’s (193 (1938) 8) trai traitt theo theory ry is usef useful ul in helpi helping ng us understand understand our needs as consumers. consumers. Maslow’s Maslow’s (1943) seminal seminal work on human needs is also particularly relevant in understanding how we are motivated to satisfy our five basic desires, desires, ranging ranging from physiological physiological,, safety, safety, belongings, belongings, and esteem esteem through through to selfselfactualization needs.

Describe opinions, attitudes, and values and how they relate to  consumer behaviour  Opinions are relatively unstable positions that people take in relation to an issue or assessment of something. Attitudes are more strongly  held and are more likely to be linked to our behaviour . Page 4from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Values are more strongly held strongly held still and are linked to our conscience. conscience.

Explain how reference groups influence consumer behaviour  Reference groups including such role models as parents, entertainers, and athletes have an impor importa tant nt soci social aliz izin ing g infl influe uenc nce e on our our cons consum umpt ptio ion n beha behavi viou our, r, parti particu cula larl rly y in adolescence. However, where we live, what social class we come from, what stage of the lifecycle we are in, and which ethnic group we belong to, all have an impact on our behaviour as consumers • • • •

Page 5from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 5: marketing strategy Describe the strategic planning process  The strategic planning process commences at corporate level. Here the organization sets out its overall overall mission, mission, purpose, and values. values. These are then converted converted into measurable measurable goal goals s that that appl apply y to the the whol whole e orga organi niza zati tion. on. Then Then,, depen dependi ding ng upon upon the the size size of the the organi organizat zation ion,, the range range of busine businesse sses s (SBU’s (SBU’s)) and/or and/or produc products ts is determ determine ined d and resources allocated to help and support each one. Each business and/or product develops detailed functional and competitive strategies and plans, such as a marketing strategy and plan.

Explain the key influences that impact on marketing strategy  There are three key influences on marketing strategy. These are: Strategic market analysis, which is concerned with developing knowledge and understanding about the marketplace, Strategic marketing goals, which are about what the strategy is intended to achieve, and Strategic marketing action, which is about how the strategies are to be implemented. •

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•

Explain how understanding competitors can assist the  development of marketing strategy  An analysis of a firm’s competitors involves answers to five key questions. These are : Who are our competitors? What are their strengths and weaknesses? What are their strategic goals? Which strategies are they following? How are they likely to respond? • • • • •

Identify the characteristics of strategic marketing goals and explain  the nature of the associated growth strategies  There are several types of strategic objective but the five main ones are: Niche, Hold, Harvest, Divest goals And are considered briefly. However, the vast majority of organizations consider growth to be a primary objective. Although there are different forms of growth: Intensive, Integrated, Diversified They are generally accepted as the main ones. • • • •

• • •

Describe different approaches and concepts associated with  strategic marketing action  Strategic marketing action is concerned with ways of implementing marketing strategies. Various concepts and frameworks have been proposed and of these we considered ideas about competitiv competitive e advantage, advantage, generic strategies, strategies, competitiv competitive e positioning positioning,, and strategic strategic intent.

Page 6from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Explain how scenario planning and SWOT analysis can help  strategic marketing decision making  Scenario Scenario planning planning is used to understand understand how environment environmental al trends might influence influence the future of an organization and how managers can gain a better understanding of some of  the uncertainties an organization faces if it pursues particular strategies. SWOT analysis is a tool used to determine an overall view of the strategic position and highlights the need for a strategy to produce a strong fit between the internal capability (strengths and weaknesses) and the external situation (opportunities and threats). SWOT analysis serves to identify the key issues and then   prompts thoughts about converting weaknesses into strengths and threats into o pportunities.

Outline the key elements within a marketing plan  The following represent the key elements associated with the structure of a marketing plan: Overall objectives; Product/market background; Market analysis; Marketing strategy and goals; Marketing programmes; Implementation; Evaluation; Control; Althou Although gh depict depicted ed as a linear linear process process many many organi organizat zation ions s either either do not follow follow this this proces process, s, do not includ include e all these elemen elements, ts, or underta undertake ke many many of these these elemen elements ts simultaneously. • • • • • • • •

Page 7from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 6: Market segmentation and positioning Describe the principles of market segmentation and the TSP  process  The method by which whole markets are subdivided into different segments is referred to as the STP process. STP refers to three activities that should be undertaken, usually sequentially, if segmentation is to be successful. These are: Segmentation, Targeting, and Positioning • • •

And this chapter is structured around these key elements. Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements. requirements . The second second important important part of the STP process process is to determine determine which, which, if any, of the segmen segments ts uncove uncovered red should should be targeted  and and made made the the focu focus s of a comp compreh rehens ensiv ive e market marketing ing progra programme mme.. Having Having segmen segmented ted the market market and determ determine ined d the siz size e and potential potential of market market segments segments and selected selected specific target markets, markets, the third part of the STP process is to position a brand within brand within the target markets.

Explain characteristics and differences between market  segmentation and product differentiation  The market market segmen segmentat tation ion concep conceptt is relate related d to product product differe differenti ntiati ation. on. If you aim at different market segments, you might adapt different variations of your offering to satisfy those segments, and equally if you adapt different versions of your offering, this may appeal to different market segments with an increasing proliferation of tastes in modern society, and increasing disposable incomes in some market segments. As a result result,, market marketers ers have have sought sought to design design product product and servic service e offeri offerings ngs around around consumer demand (market segmentation) more than around their own production needs (product differentiation).

Explain how market segmentation can be undertaken in both  consumer and B2B market  To segment a market, we use data based on differing consumer, user, organizational, and market characteristics. These differ for consumer (B2C) and business (B2B) markets. To segment consumer goods and service markets, we use market information we have coll collec ecte ted d base based d on cert certai ain n key cust custom omerer-,, prod produc uctt-,, or situ situat atio ionn-rel relat ated ed crit criteri eria a (variables). These are classified as segmentation bases and include: Profile (e.g. who are my market and where are they?); Behavioural (e.g. where? when, and how does my market behave?); Psychological criteria ( e.g. why does my market behave that way?). • • •

To segment business markets there are two main groups of interrelated variables used: organizational characteristics and buyer characteristics.

Describe different targeting strategies  Once identified, identified, the organizatio organization n needs to select select its approach to target marketing. marketing. Four differing approaches can be considered. These include undifferentiated (entire market

Page 8from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

with one strategy), differentiated (target different segments with different strategies), concentrated or niche (only target one segment from many segments), and customized target marketing (target individual customers with individual strategies).

Explain the concept of positioning  Positioning is important because it is the means by which products and services can be differentiated from one another and so give consumers a reason to buy. Positioning encompasses two fundamental elements. The first concerns the physical attributes, the functionality and capability that a brand offers, for example, a car’s engine specification, its design, and carbon emissions. The second positioning element concerns the way in which a brand is communicated and how ho w con onsu sume mers rs perc percei eive ve the the bran brand d rela relati tive ve to othe otherr comp compet etin ing g bran brands ds in the the marketplace. This element of communication is vitally important, as it is not what you do to a product, it is what you do to the mind of a prospect (Ries and Trout, 1972) that determines how a brand is really positioned in a market.

Illustrate how the use of perceptual maps can assist the positioning  process  To illustrate the use of perceptual maps in the positioning process an example of brand management is used. We displayed the differing attributes of a selection of retailing brands on a perceptual map. We discussed how these could illustrate the existing level of  differentiation between brands; indi indica cate te how how our our brand brand and and comp compet etin ing g brand brands s are perc percei eive ved d in the the marketplace; provide insight into how a market operates; and reveal strengths and weaknesses that can assist strategic decisions about how to differentiate the attributes that matter to customers and how to compete more effectively in the market. •

• •

The perceptual maps and key market drivers for this market are presented.

Page 9from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 9: Products, services, and branding decisions Explain the nature an characteristics of products and describe the  product/service spectrum  A produc productt encomp encompass asses es all the tangib tangible le and intang intangibl ible e attribu attributes tes relate related d not just just to physical goods but also services, ideas, people, places, experiences, and even a mix of  these these variou various s elemen elements. ts. Anything Anything that that can be offered offered for use and consum consumpti ption, on, in exchange for money or some other form of value, is referred to as a product. The product/service spectrum recognizes that many products combine physical goods with a service element.

Identify and describe the various types of products and explain  particular concepts relating to the management of products  Consumer and business products are classified in different ways but both classifications are related ti the way customers use them. Consumer Consumer products are bought to satisfy   personal  personal and family family needs and industrial industrial and business business products products are bought either as a  part for the business’s operations or in order to make other products for resale. resale. In order to meet the needs of different target markets, most organizations offer a range of produc products ts and services services,, which which are grouped grouped togeth together er in terms terms of produc productt lines lines and product mix.

Understand how the management of products changes over the  different stages of the lifecycle and explain the process by  which new products are developed and adopted by markets  Products Products move through a sequential sequential pattern of development, development, referred to as the product product lifecycle. It consists of five distinct stages, namely: Development, Birth, Growth, Maturity, and Decline. Each stage of the cycle represents a different set of market circumstances and customer expectations that need to be met with different strategies. • • • • •

Describe the principles of branding and explain the different types  of brand  Brands Brands are produc products ts and servic services es that that have have added value. value. Brands Brands help custom customers ers to differentiate betwee between n the the vari variou ous s offe offeri ring ngs s and and to make make asso associ ciat atio ions ns with with cert certai ain n attributes or feelings with a particular brand. There are three main types of brands: Manufacturer, Distributor, and Generic brands • • •

Explain the benefits that branding offers both customers and  organizations  Brands reduce risk and uncertainty in the buying process. They provide a snapshot of the quality and positioning helping customers understand how one brand relates to another. Page 10from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

As a result, branding helps consumers and organizations to buy and to sell products easily, more efficiently, and relatively quickly.

Understand why the value of a brand is important and explain some  of the issues associated with measuring brand equity  Brand equity is a measure of the value of a brand. It is an assessment of a brand’s wealth, wealth, sometimes referred to as goodwill. Financially, brands consist of their physical assets ass ets plus a sum that repres represent ents s their their reputa reputatio tion n or goodwi goodwill, ll, with with the latter latter far exceeding the former. There are two main views about how brand equity should be valued, namely a financial and a marketing per spective.

Explain how packaging and labelling can contribute to a brand’s  success  Packaging has a functional role to protect and preserve products during transit, and while they remain in store or on a shelf prior to purchase and consumption. Another role is to comm commun unic icat ate e elem element ents s of a pack packag age’s e’s cont conten entt to help help cust custom omers ers,, part partic icul ular arly ly in consumers consumers market, to make brand choice choice decisions decisions.. Labels Labels are important because they can deliver information about product usage, they can promote the brand, and third, they they enab enable le the the bran brand d owners owners to comp comply ly with with vari variou ous s regu regula lati tion ons s and and stat statut utory ory requirements.

Page 11from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 10: Price decisions Define price, and understand its relationship with costs, quality, and value  Price, costs, quality, and value are all interrelated. Price is what a product or service is sold for and for and cost is what it is bought for . When value is added to a good or service, the price that can be obtained for that good exceeds the cost. The two are often confused and assumed even by major international dictio dictionar naries ies to be the same thing. thing. They They are not. Qualit Quality y is a measure of how well a  product or service satisfies the need it is designed to cater for . Value is a function of the quality of a good or service as a proportion of the price paid .

Explain the concept of price elasticity of demand  Price elasticity of demand is an important concept in marketing. It allows us to determine how the quantity of a good and services relates to the price at which it is offered . Inelastic goods and services are defined as such because increases (decreases) in price produce relatively smaller decreases (increases) in sales volume, where elastic goods have larger similar effects. We need to understand this concept in order to understand demand-oriented pricing mechanisms.

Describe how consumers and customers perceive price  Understanding how customers and consumers perceive pricing is important when setting prices. Customers tend to have an idea of reference prices based on either what they ought to pay for a good or service, what others would pay, or what they would like to pay. Their knowledge of actual prices is actually limited to well-known and frequently bought and advertised goods and services. Consequently, customers tend to rely on price cues such as odd-number pricing, sale signs, the purchase context, and price bundles to determine whether or not value exists in a particular offering.

Recognize which pricing policies are most appropriate for which  situations  Ther There e are are a vari variet ety y of diff differe erent nt pric pricin ing g poli polici cies es in opera operati tion on,, whic which h can can be used, used, dependent on whether you are pricing for a consumer or industrial product or service. They tend to be either: Cost oriented (based on what you paid for it and what mark-up you intend to add); Compet Competito itorr orient oriented ed (the (the so-cal so-called led ‘going ‘going rate’ rate’ or based based on what what price price competitors sell a product or service at); Demande oriented (based on how much of a good or service can be sold at what price); or Value oriented (what attributes of the product or service are of benefit to your customer and what will they pay for them) •

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Understand how to price new products and services  The two dominant dominants s approa approache ches s to pricin pricing g new product products s and servic services es are the market market skimmi skimming ng price price method method and the market market penetra penetratio tion n pricin pricing g method method.. The former former is favo favour ured ed when when a comp compan any y need needs s to recov recover er its its R&D R&D inve invest stme ment nts s quic quickl kly, y, when when customers are price insensitive or of unknown price sensitivity, when product lifecycles are short, and barriers to entry to competitors are high. The latter is favoured when these conditions are not in existence. e xistence.

Page 12from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Understand the conditions under which a price war is more or less  likely to ignite  Price wars can devastate companies within industries. Research indicates that it is usually better to avoid price wars by recognizing the early warning signals. Eleven signals are outlined which indicate when price wars are more likely including : factors related to the industry (e.g. low growth rates), the firm itself (e.g. where the product is of strategic importance to the company), the product category (e.g. where it is a commodity), and the nature of the customers (e.g. where they are price sensitive), and two fact factor ors s whic which h redu reduce ce the the inci incide denc nce e of pric price e wars wars,, incl includ udin ing g when when competitors have a reputation for swift retaliatory pricing actions and when there are intermediate levels of market power. • •

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Page 13from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 11: An introduction to marketing communications Explain three models of communication and describe how personal  influences can enhance the effectiveness of marketing  communication activities  The The line linear ar or on onee-wa way y mode modell of comm commun unic icat atio ion n is the the trad tradit itio iona nall mass mass medi media a interpretation of how communication works. The two-way model incorporates incorporates the influence of other people in the communica communication tion proces process s whilst whilst the intera interacti ctiona onall model model explain explains s how commun communica icatio tion n flows flows not just just between sender and receiver but also through a network of people. people.

Describe the nature, purpose, and scope of marketing  communications  Marketing communications, or promotion as it was originally called, is one of the Ps of  the marketing mix. It is used to communicate an organization’s offer relating offer relating to products, services, or the overall organization. In broad terms the management activity consists of  several components. There are the communications experienced by audiences relating to both both their their use of product products s and the consum consumpti ption on of ass associ ociate ated d servic services es.. Ther There e are communica communications tions arising arising from unplan unplanned ned or uninte unintende nded d experi experienc ences es and and ther there e are are  planned marketing communications. commun ications.

Understand the role and various tasks of marketing  communications  The role of marketing communications is to engage audiences and there are four main tasks that it can be used to complete. These tasks are summarized as DRIP, that is, to differentia differentiate, te, reinforce, reinforce, inform, or persuade persuade audiences audiences to behave behave in particular particular ways. Several of these tasks can be undertaken simultaneously within a campaign.

Explain the key characteristics associated with developing  promotional messages  The main issues associated with message development concern the balance between providing sufficient product/service-related sufficient  product/service-related information and emotional content . When the customer customer experiences experiences high involvement involvement,, the informati informational onal content content should should dominate. dominate. When When audi audien ence ces s expe experi rien ence ce low low invo involv lvem emen entt the the emot emotio iona nall aspe aspect cts s shou should ld be emphasized.

Understand the models used to explain how marketing  communication is considered to work  These models have evolved from sequential approaches such as AIDA and the hierarchy of effects models. A circular circular model of the attitude attitude construct helps understanding understanding of the tasks of marketing communication, namely to: inform audiences, to create feelings and a value associated with products and services, and to drive behaviour. • • • •

Page 14from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Describe what culture is and explain how it can impact on the use  of marketing communications in international environments  Cultur Culture e refers refers to the values, values, beliefs, ideas, customs, customs, actions, actions, and symbols that are learned by members of particular societies. societies . Culture is important because it provides individuals, within a society, with a sense of identity and an understanding of what is deemed to be acceptable behaviour. Culture is learned, the elements are interrelated, and culture is shared amongst members of a society or group. Organizations that practise marketing communication in international environments have to be fully aware of the cultural dimensions associated with each of their markets. In addition they need to consider whether it is better to use a standardized approach and use the same unmodified campaigns across all markets, or adapt campaigns to meet the needs of local markets.

Page 15from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 12: Communication tools and techniques Describe the configuration and role of the marketing  communications mix  Organizations use the marketing communication mix to engage their various audiences. The mix consists of five tools: Advertising, Sales promotions, Public relations, Direct marketing, and Personal selling. Advertisin Advertising g uses paid-for paid-for media to convey messages messages to the target audiences. Tools and media are not the same, as the former are methods or techniques whereas the media are the means by which messages are conveyed to the target audiences. • • • • •

Explain the role and characteristics of each of the primary tools of  the communication mix  Each Each of the too tools ls commun communica icates tes messag messages es in differe different nt ways ways and achiev achieves es differe different nt outcomes. Advertising can differentiate, differentiate, reinforce, reinforce, and build awareness awareness but is not very good  at getting responses or driving behaviour . Sales promotions are persuasive are  persuasive,, public relations can inform audiences and differentiate organizations and brands, brands, whilst direct marketing is strong at generating responses from target audiences: audiences: that is, persuading them to behave in particular ways. The final tool, personal selling, is competent at all the DRIP tasks but excels at persuasion. persuasion .

Understand and set out the criteria that should be used to select  the right communication mix  Using a set of criteria can help simplify the complex and difficult process of selecting the right marketing communications mix. There are five key criteria: The degree to which a tool and the message conveyed is controllable, The credibility of the message conveyed, The costs of using a tool, The degree to which a target audience is dispersed, and The task that marketing communication is required to accomplish. • • • • •

Explain the characteristics of the different media and how they are  categorized  Each medium has a set of characteristics that enable it to convey messages in particular ways to a target audience. For example: television uses the sight and sound, radio just sound, outdoor usually just sight, and digital media can use sound, touch and sight. • • • •

In orde orderr to make make sens sense e of the the vast vast array array of avai availa labl ble e medi media a it is helpfu helpfull to use use a categorizat categorization ion system. Three media categories categories can be identified identified:: classes, classes, types, and Page 16from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

vehicles. There are six main classes of media, such as : Media, Broadcast, Print, Outdoor, Digital, In-store, Other media. • • • • • • •

With each type of medium there are a huge number of different media vehicles that can be selected to carry a client’s message.

Discuss some of the changes that are happening in the media and  communication landscape  Media and audience fragmentation reflects on some of the dramatic changes that have occurred within marketing communications, and the media in particular. Not only has the number of media expanded as a result of developments in technology but the number and type of leisure activities pursued by audiences have increased. This reduces the size of audiences available available for commercial commercial advertising, advertising, which in turn has motivated motivated client organi organizat zation ions s to find find new ways ways of commun communica icatin ting g with with their their target target audien audiences ces.. Mass Mass medi media a adve advert rtis isin ing g is givi giving ng grou ground nd to on onli line ne and and digi digita tall medi media, a, the the mark market etin ing g comm commun unic icat atio ion n indu indust stry ry is unde underg rgoi oing ng tran transi siti tion on and and rest restru ruct ctur urin ing, g, and and new new commun communica icatio tion n method methods, s, such such as soc social ial network networking ing and brande branded d enterta entertainm inment ent are emerging.

Page 17from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 13: Managing marketing communications: strategy, planning, and implementation Understand the nature and characteristics of marketing  communication strategy  The development of marketing communication strategy is a management activity that should be guided, primarily, by the nature, characteristics, and communication needs of  the audience, rather than the communication tools or the media at the disposal of the organization. There are three types of audience and hence three types of strategy. These audiences are: Target customers (a pull strategy), Channel intermediaries (a push strategy), and An organization’s stakeholder network (a profile strategy). • • •

Explain how marketing communication activities are planned and  implemented  Market Marketing ing commun communic icati ation on planni planning ng is a system systemati atic c proces process s that that involv involves es a series series of  procedures and activities that lead to the setting of marketing communication objectives and the formulation of plans for achieving them. The marketing communications planning framew framework ork (MPCF) (MPCF) provid provides es a struct structure ure and checkl checklist ist though though which which the sequen sequence ce of  decis decision ions s that that market marketing ing manage managers rs undert undertake ake when when prepar preparing ing,, implem implement enting ing,, and evaluating communication strategies and plans can be signed. The framework reflects a deliberate or   planned approach to strategic strategic marketing marketing communica communications tions,, one which may not always occur in practice.

Explain the different activities associated with managing marketing  communications  There is a large range r ange of tasks associated with managing marketing communications. At one level, level, there are decisions decisions to be made about the overall strategy and direction of  the marketing communications, and issues associated with the process and, of course, the content of marketing communications plans. At another level, decisions need to be made about the right mix of tools and media necessary to engage with target audiences, and to decide about what is to be said in the message and how it is to be presented. Behind all these activities are issues associated with the management of resources, both huma human n and and fina financ ncia ial, l, and and the the agen agency cy rela relati tion onsh ship ips s nec necessa essary ry to gene genera rate te the the communication materials. Once implemented, management are still involved through the control, monitoring, evaluation, and feedback processes.

Describe the ways organizations determine their marketing  communication budgets  There There are number number of ways ways organi organizat zation ions s determ determine ine their their market marketing ing commun communica icatio tion n budgets. These range from the largely inaccurate and inappropriate methods such as inertia, arbitrary, an media multiplier approaches to the more commonly used percentage Page 18from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

of sales and the most reliable re liable objective and task methods. In additi addition on to these these method methods, s, some some compan companies ies relate relate their their adverti advertisin sing g invest investmen mentt decisions to : How much their competitors are spending (competitive parity), How much is invested in advertising by the industry as a whole (advertising to sale ratio), and The relati relations onship hip betwee between n the amount amount each each brand brand invest invests s in adverti advertisi sing ng as a percentage of the total amount invested in advertising (share of voice) • •

•

Comprehend the process, procedures, and operations used to  manage client-agency operations and relationships  Clients select agencies to produce and distribute communication materials. There is an established procedure concerning the selection of the ‘right’ agency. This involves the search, search, credentials credentials presentation, presentation, pitching, pitching, and contracti contracting ng phases. phases. Once selected selected the client-agency relationship is normally managed through the ‘ briefing” process. This system is based on the provision of written documents that provide information to help other perform their part of the marketing communication process effectively and efficientl efficiently. y. Agencies Agencies designate designate different tasks to different different roles, so acco account unt planners, planners, managers, creative team, and media planners are connected internally, an externally to their client, through the briefing process. There are three main types of brief, namely: Client, Creative, and Media briefs. • • •

Origin Originall ally, y, these these briefs briefs were were handwr handwritt itten en but, but, of course course,, new techno technolog logy y has helped helped transf transform orm the speed, speed, acc accura uracy, cy, and dissem dissemina inatio tion n of these these import important ant operat operation ional al documents. There a re three main ways which agencies are rewarded financially for their work. These are traditional commission system, which is giving way to a combination of  payment-by-result and fee-based methods.

Explain the principles associated with the measurement and  evaluation of marketing communication activities  The measurement and evaluation of marketing communication activities is indisputably an important aspect of the managerial task. There are three main perspectives for the evaluation of marketing communications. The first perspective concerns the degree to which which a market marketing ing commun communica icatio tions ns campai campaign gn achiev achieved ed the goals goals it was create created d to achieve. The second perspective concerns the contribution made by each activity within a campaing, most notably each communication tool, medium, and message. The third perspective concerns the systems and processes associated with the marketing communications planning process. Evaluatin Evaluating g the effectiven effectiveness ess of marketing marketing communica communications tions should take place place before, before, during, and after exposure to each campaign activity.

Page 19from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 14: Channel management and retailing Define what a channel of distribution is and key considerations in  channel strategy and decision making  Dist Distrib ribut utio ion n chan channe nels ls can can be defi defined ned as organiz organized ed network networks s of  agen agenci cies es and  and  organizations, which, in combination, perform all the activities required to link producers and manufacturers with consumers, purchasers, and users. users . Distr Distribu ibutio tion n channe channels ls decisi decisions ons are about about managi managing ng which which channe channell best best suits suits the organizati organization’s on’s objectives objectives.. The The key key cons consid ider erat atio ion n whic which h reve reveal als s itse itself lf here here is the the import importanc ance e of optimi optimizin zing g the balanc balance e betwee between n the three three elemen elements ts of eco econom nomics ics,, coverage, and control.

Define and discuss the differing types of intermediaries and their  roles in the distribution channel  An intermediary is and independent business concern that operates as a link between producers and ultimate consumers or end-industrial users. If using an indirect or hybrid channel structure, the next strategic decision is what type of intermediaries to use. The key difference between the various types is that not all intermediaries take legal title of  the product offering or physical possession of it. There are several different types of  intermediaries; these include: Agents, Merchants, Distributors, Franchise, Wholesalers, And retailers. • • • • • •

Differentiate between differing distribution channel structures and  selection criteria. The relationship between producers, intermediaries, and customers will form either a  ‘direct’, or ‘indirect’, or ‘hybrid’ channel structure. A direct structure involves selling directly to customers. An indirect structure involves using intermediaries. A hybrid structure will involve both. The degree of effic efficien iency cy that that an interm intermedi ediary ary can introduce introduce to the perform performanc ance e of  distribution tasks determines what form a channel structure will take. At the simpl simplest est level, level, direct direct channe channels ls offer offer maximum maximum control  control  but sometimes sometimes at the expense of reaching you target market . Indirect channels can maximize coverage but often at the expense of control  as the intermediaries start ‘playing’ with the marketing mix strategies and demand a share of  the profits in return for their involvement. Hybrid strategies often result in greater channel conflict  as the intermediaries feel the organization that is supplying them is also the competitor.

Discuss the factors influencing channel design, structure, and  strategy  In setting down a distribution channel strategy, most organizations make key decisions in order to serve their customers and establish and maintain buyer-seller relationships. Page 20from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

The first decision is the selection of the structure of the channel . If it is decided that intermediaries will be required, management then need to consider the type of market  coverage that will be required; the number and number and type of intermediaries to use; and how to manage the relationships between channel members. These choices are important as they can affect the value that is ultimately provided to customers.

Distinguish between the logistical functions, identifying key  considerations for effective management  Logistics management concerns all the activities that, when added together, relate to the flow of products from the organization to the customer or end customer. It includes decision decision areas such as  production scheduling, scheduling,  plant location, location, and  purchasing which are traditionally marketing management decisions. It is important to understand that they require a marketing focus and marketing insight .

Define the role, function, and importance of retailers in the  distribution channel  Dist Distrib ribut utin ing g cons consum umer er produ product cts s begin begins s with with the the prod produc ucer er and and ends ends with with the the end end consumer. However, between the two there is usually an intermediary called a retailer. Retailing is all the activities directly related to the sale of goods and services to the ultimate ultimate end consumer consumer for personal and non-busine non-business ss use. use . This is also called the retail trade. A retailer or retail store is a business enterprise whose primary pr imary function is to sell ultimate consumers for non-business use. use. However, they all have in common two key features; They link producers and end consumers and They perform an invaluable service for both. • •

Compare and contrast the differing types of retailers  Type Types s of reta retail ilin ing g esta establ blis ishm hmen ents ts can can be clas classi sifi fied ed as diff differe erent ntia iate ted d by two two key characteristics; Marketing strategy employed (i.e. product, price, and service) Store presence (i.e. store or non-store retailing) • •

Examples include: department stores, discount stores, convenience stores, limited line retailers, speciality retailers, category killer stores, supermarkets, and superstores. In addition to the underlying marketing strategy, retailing establishments can be further characterized according to store or non-store presence.

Discuss the key strategies and operational considerations in  retailing strategies  Most retai Most retaili ling ng occu occurs rs throu through gh fixe fixed d stor stores es,, with with exist existin ing g opera operato tors rs havi having ng ‘sun ‘sunk’  k’  investments in physical fabric. The physical location of a store is seen as a source of  competitive advantage, advantage, providing crucial entry barriers to competitors, and is in most cases an expensive asset . There are several characteristics that make store retailing unique from the customer viewpoint. First and foremost, the retail environment provides the sensation of touch, feel, and  smell . For many products categories, such as clothing books, and perfumes, this aspect provides the customer with valuable data points before the purchase decision can be made. Furthermore, the customer might interact with in-store staff , who might give professional suggestions to assist the customer in the purchase process. However, the use of these access points and their commercial value may require major reassessment with the rise Page 21from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

in non-store retailing.

Page 22from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 15: Services marketing and non-profit marketing Explain what a service is and describe the relationship between  products and services  A service is any act or performance offered by one party to another that is essentially  intangible. intangible. Consumption of these services does not result in any transfer of ownership even through the service process may be attached to a physical product. There is a spectrum of product/service combinations. At the one extreme there are pure products with no services, services, such as grocery products. At the other end of the spectrum are pure services where there is no tangible tangible product  product to to support, such as education and dentistry. In between, there is a mixture of product/service arrangements.

Explain the main characteristics of a service  Unlike products, services are considered to be  processes and different because of their distinguishing characteristics. These are based around: Their intangibility (you can touch a pro duct but not a service), Perishability (products can be stored but you cannot store a service), Variability (each time a service is delivered it is different but products can be identical), Inseparability (services are produced and consumed simultaneously), and A lack of ownership (you cannot take legal possession of a service). • • •

• •

These are important because they shape the way in which marketers design, develop, deliver, and evaluate the marketing of services.

Understand the different service processes and outline each  element of the services marketing mix  A process process is a series of sequential actions that lead to predetermined outcomes. outcomes . Four main service process categories can be identified; people processing, possession processing, mental stimulus processing, and information processing. • • • •

As a result of various shortcomings of the traditional marketing mix, an extended version has been developed developed in order to account account for particular particular characteri characteristic stics s associated associated with services. The three additional Ps are People, Physical evidence, and Processes.

Explain the term service encounters and describe how service  management should seek to maintain service performance  A service encounter is best understood as a period of time during which a customer interacts directly with a service (Shostack, 1985). There are three levels of customer contact: high-contact services, medium-contact services, and low-contact services. As more services are introduced so opportunities for service variability and service failure also develop. One response to this problem has been the ‘industrialization’ of services. Other methods of maintaining service performance include branding, branding, the way a service is identified and understood, and

Page 23from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

internal marketing, marketing, the processes and communications used to develop employees as part of the brand.

Explain the principles associated with measuring service quality  Service quality is based on the idea that a customer’s expectations of the service they will will rece receiv ive e shap shapes es thei theirr perc percept eptio ion n of the the actu actual al servi service ce enco encoun unte ter. r. In esse essenc nce, e, therefore, customers compare the perceived service with the expected service. service. SERV SERVQU QUAL AL is a majo majorr mode modell used used to meas measur ure e servi ervice ce qua quality. ity. It is a disconfirmation model and is based on the difference between the expected service and  the actual perceived service.

Understand the principles of non-profit marketing  There are three main types of non-profit organization; • • •

public sector, charities, and the newly emerging social enterprise sector.

They share many characteristics, for example, they al work with multiple stakeholders and have multiple objectives, there is limited customer choice with respective to the services offered, and they all need to demonstrate full transparency and accountability for their actions.

Page 24from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 16: Business-to-business marketing Explain the main characteristics of business markets  Business markets are characterized by four main factors; The nature of demand, The buying processes, International dimensions, and The relationships that develop between organizations. • • • •

Understand the different types of organizational customers  There There are a range range of organiz organizati ations ons that make make up busine business ss market markets s and these are classified as: Commercial, Government, and Institutional. • • •

Thes These e orga organi niza zati tion ons s buy buy produ product cts s and and serv servic ices es to make make goods goods for for resa resale le to thei theirr custom customers ers but they they also also consum consume e items items that that are required required to keep keep their their office offices s and manufacturing units functioning.

Describe the different types of goods and services that are sold and  bought in business markets  Products and service bought and sold through business markets are categorized as: Input goods, Equipment goods, and Supply goods. • • •

Explain the main processes and stages associated with  organizational buying and purchasing  Organi Organizat zation ional al buying buying behavi behaviour our can be unders understoo tood d to be a group group buying buying activi activity ty in which a number of people with differing roles make purchasing decisions that affect the organization and the achievement of its objectives. Buying decisions can be understood in terms of different types of decision (buyclasses ( buyclasses)) and different stages (buyphases (buyphases))

Understand the principles of key account management  Some suppliers refer to some of their strategically important customers as key accounts. Rela Relati tion onsh ship ips s with with thes these e cust custom omer ers s move move thro throug ugh h vari variou ous s stag stages es,, call called ed KAM KAM development cycles. Each stage is marked by particular characteristics and part of the role the key account manager is to ensure that all contact between the supplier and the customer builds on strengthening the inter-organizational relationship.

Explain what business-to-business marketing is  B2B B2 B mark market etin ing g is conc concer erne ned d with with the the identi identific ficati ation on and satisf satisfact action ion of busine business ss customer’s customer’s needs. needs. This This requi requires res that that all all stak stakeh ehol older ders s bene benefi fitt from from the the busi busine ness ss relationshi relationship p and asso associat ciated ed transacti transactions. ons. Customers Customers derive satisfac satisfaction tion by purchasing purchasing goods and services that are perceived to provide them an/or their organizations with particular value.

Be able to compare business and consumer marketing  Both Bo th have have a cust custom omer er orie orient ntat atio ion n and and work work back backwa wards rds from from an unde unders rsta tand ndin ing g of  Page 25from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

customer needs. In addition both require information about customers and competitors in order to achieve their objectives. objectives. In addition, there is a close match in terms of the purpose, approach, and content between the extended problem-solving, limited problem-solving, and routinized response behaviour phases of consumer buying and the new task, modified rebuy, and rebuy states associated with organizational buying.

Page 26from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 17: Relationship marketing Explain the concept of perceived value and the main characteristics  of the value chain  Value is a customer’s estimate of the extent to which an offering can satisfy their needs. needs . Value can be generated in many ways, not just products and prices. One important source of value is the relationships generated through buyer-seller relationships. Organizations interact with other organizations in order to provide super ior value for their customers. The quality, duration, and level of interdependence between organizations vary considera considerably, bly, and this value value can be visualized visualized as a continuum. continuum. At one end of the continuum are transactional exchanges, characterized by a long-term orientation, where there is complete integration of systems and processes and the relationship is motivated by partnership and mutual support.

Understand the differences between the 4Ps and the relationship  approach to marketing  Relationship marketing is a more contemporary marketing theory than the 4Ps. Rather than than foc focusi using ng on product products s and prices prices and customer customer attrac attractio tion, n, it is the retent retention ion of  customers and the relationship between buyers, sellers, and other stakeholders that is at the heart of this relatively new approach. Ther There e are are three three main main appro approac ache hes s or scho school ols s of thou though ghtt asso associ ciat ated ed with with rela relati tion ons s marketing. These are: The Nordic school, The Anglo-Australian school, and The Industrial marketing and purchasing group (IMP). • • •

Describe the different stages of the customer relationship lifecycle  • • • •

Customer acquisition Development Retention Decline/termination

Explain the principles and economics of customer retention and  consider the merits of loyalty programmes  Customer Customer profitabil profitability ity analysis analysis reveals that some customers customers are more profitable profitable than others. Relationship marketing is based on the premise that retained customers are more  profitable customers. customers. Loyalty Loyalty is an important important concept within relationsh relationship ip marketing marketing and the loyalty ladder model illustrates illustrates the critical critical point that different customers customers represent represent different value to organizations. This suggests that there are many different forms of  loyalty and that different marketing strategies are required to reach each of them.

Understand the principles of trust, commitment, power, conflict, and customer satisfaction and explain how they are interlinked  Ther There e are are seve severa rall key key conc concep epts ts asso associ ciat ated ed with with the the relationships. The main ones are: Trust, Commitment, Satisfaction,

mana manage geme ment nt of cust custom omer er

• • •

Page 27from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

• •

Power, and Conflict.

These are interrelated and the management of customer relationship should be based on the principles of reducing the influence of both power and the incidence of conflict in order order to build build custom customer er trust, trust, gain gain custom customer er commit commitmen ment, t, and, and, throug through h loyalt loyalty y and retention, generate customer satisfaction. This approach should increase the perceived value of the relationship for all parties.

Describe ways in which organizations try to provide customer  service and support  The principal aim of customer contact centres and CRM systems is to provide to  provide both buyers and sellers with superior value by enabling suppliers to gain access to real-time customer  information, information, in order to satisfy their customers’ needs appropriately.

Page 28from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010

From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

Chapter 18: new technology and marketing Define what we mean by ‘electronic marketing’. Electronic marketing is the process of marketing accomplished or facilitated through the applicatio application n of electronic electronic devices, devices, appliances appliances,, tools, tools, techniques techniques,, technologi technologies, es, and or systems. This definition acknowledges the use of a wide array of electronic resources to impr improv ove e the the effe effect ctiv ivene eness ss and and effi effici cien ency cy of the the mark market etin ing g proce process ss by aidi aiding ng the the management and implementation of marketing activities.

Compare and contrast electronic marketing with other frequently  used terms such as interactive and Internet marketing  Interactive marketing is described as creating situation or mechanism through which a marketer and a customer (or customer (or stakeholder) interact usually in real time. time . As such as as not all interactive marketing is electronic (e.g. face-to-face sales); not all direct marketing is electronic (e.g. print direct mail). In contra contrast, st, internet internet or online online market marketing ing is a form form of electr electroni onic c market marketing ing limited limited in technical context and is thus a tool-based definition denoting the use of only internetbased technologi technologies. es. (e.g. (e.g. web, email, email, intran intranet, et, extran extranet) et).. This This exclud excludes es the use of  electronic broadcast media and stand-alone management information systems, amongst othe others rs.. Thes These e term terms s are in cont contra rast st to elec electr tron onic ic mark market etin ing g as defin defined ed abov above, e, as encompassing a broader definition.

Discuss and evaluate the key technology characteristics across  which electronic technologies may differ  The characteristics of technology which marketing practitioners increasingly need to take into consideration when planning the adoption and use of electronic resources r esources include: Vividness, Synchronicity, Pacing, Interactivity, and Mode of transfer. • • • • •

These These struct structura urall propert properties ies across across which which electr electroni onic c resourc resources es may differ differ and can be compared have an impact on the nature of the user experience, and the achievement of  marketing objectives. As such, marketers need to be increasingly aware of their effect and their marketing implications.

Consider the use of electronic technologies to achieve marketing  objectives through the management and implementation or  core marketing services  Given the rapid development of electronic resources, and their use by the marketing profession, marketers further need to refrain from concentrating on specific technologies (e.g. web marketing, SMS marketing, mobile marketing), and focus on the activities for which which these these techno technolog logies ies are used. used. The electroni electronic c market marketing ing activi activity ty manage managemen mentt (EMAM) framework is one such approach that can assist the classification of electronic resources when planning what electronic resources to use for certain tasks, in order to achieve marketing objectives. EMAM outlines fiv core marketing activities for which we use electronic resources; these activities include; Data acquisition, Information provision, • •

Page 29from 30 Credits: Stefan Ifrim

Master of management Marketing summary

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From : P.Baines, C . Fill, K. Page, Oxford University; Marketing

• • • •

Communication, and Relationship management, Transaction management; and Distribution and logistics management.

In essence, the most important aspect of electronic technology for marketing is not how innova innovativ tive e and unique unique techno technolog logies ies are, but rather rather what what they they will will allow allow you to do differently, more effectively, and/or more efficiently.

Page 30from 30 Credits: Stefan Ifrim

Master of management Marketing summary

VUB 2009-2010