marketing unit I case study

MBA 5501 , Advanced Marketing 1 Cou rse Learning Outcomes for Unit I Upon completion of this unit, students should be able to: 1. Explore the management of marketing implementation and control processes for organizations to predict business outcomes. 1.1 Determine the next st eps for a business after evaluating the current market position within an industry . 3. Compare new product development and competitive product strategies. 3.1 Compare criteria leading to product and service development amongst competitors within an indust ry. 3.2 Examine industry and competitors of a business. 4. Analyze consumer relationships and buying processes by outlining the development and cultivation of customer relationships considering value, satisfaction, and loyalty. 4.1 Analyze how a company h as built a strong customer relationship with their target market. Reading Assignment Chapter 1: Defining Marketing for the New Realities Chapter 2: Developing Marketing Strategies and Plans Unit Lesson Chapter 1: Defining Marketing for New Realities Do you find yourself craving Chipotle? Their delicious burrito , burrito bowl , crispy corn tacos , and even their scrumptious salads are popular. This American chain of fast -food restaurants , headquartered in Denver, Colorado , has managed to attract custom ers by maintaining an incredibly high level of brand equity. Curiously enough, they have done this with little paid media and by focusing primarily on social media. Chipotle represents a company that truly understands their target market through providin g value and satisfaction to their customers by maintaining a supply chain that aligns with their target market’s preferences. This represents a systemized approach to the marketing management process. Marketing management is the discipline that focuses on how an organization manages its resources and activities to most effectively market its products and services to its target market. At the end of the day, marketers look to develop strategies for implementing the policies that aid in this process. In today’s ever -changing world, this can be accomplished holistically through internal marketing, integrated marketing, relationship marketing , and performance marketing. Internal marketing hopes to ensure that everyone in the organization is embracing the prescribed marketing principles. The integrated marketing communication aspect ensures that all methods used to deliver the message are aligned and combined to ensure consistency of the message. Within relationship mark eting, marketers are striving to develop rich relationships with customers, channel members , and other partners within the distribution channel. Finally, performance marketing reviews the marketing metrics , which ensur es that the organization has accomplis hed their prescribed business and organizational goals. UNIT I STUDY GUIDE Understanding Marketing Management MBA 5501, Advance d Marketing 2 In a very basic sense, marketing requires that the marketer completely understand the customer , which is referred to as the target market. Marketers begin by segmenting the population into groupings based upon criteria such as behavioral, psychographic, geographic , and demographic characteristics :  demographic : characteristics such as income, sex, age, family size, family life cycle, occupation, education, and social class ;  geographic : c haracteristic s such as region of the world or country in which the customer lives ;  psychographic : c haracteristics such as personality, values , and interests ; and  behavioral : c haracteristics such as specific interests of the consumer . Once the market has been segmented , the marketer is able to more clearly identify and describe the group of people who are most likely to be interested in the product/service. For instance, using demographic criteria, a marketer of snowboards may be more likely to focus on the under -35 -yea r-old group , whereas a marketer of elderly living options should be focusing on those over 55 years old. Another example using geographic criteria would be that same marketer of snowboards focusing on individuals who live in colder climates v ersus those wh o live in warmer climate s. A marketer looks to precisely describe the target market in order to put together marketing campaigns that will reach this group most effectively and efficiently. Marketers have limited marketing dollars ; therefore, they wish to use them in the most responsible and efficient manner. Once the marketer has segmented the market and identified the target market, the marketer will move toward positioning the product/service. The marketer hopes to differentiate the product/service offe ring in such a way that the offering is viewed as “better” than that of the company’s competitors. For example, camera makers are attempting to differentiate their cameras by aligning with the needs of customers. Many consumers today use their cell phone c amera s while others have more traditional camera s. Still , others are looking at the GoPro camera , which can be attached to helmets, bikes , or other athletic equipment. Again, the marketer needs to understand exactly who the target market is and the specifi c needs of the target audience . Marketers utilize a tool referred to as the four Ps , or marketing mix , in developing a marketing plan. These are controlled variables that work together to better reach the designated target market and consist of product, price place, and promotion . The goal is to provide the right product/service at the right place at the right price with the right amount of promotion . This will maximize the marketer’s budget and most effectively influence the customer. See the chart below for an overview of these elements and the components that make up each of these areas: The diagram depicts the four Ps: product, price, place, and promotion. MBA 5501, Advance d Marketing 3 Kotler and Keller (2016) suggest that the traditional four Ps , as discussed above , can be expanded to include people, processes, programs , and performance. Today’s customer is very different than the customer of even 10 years ago. Customers are interested in being engaged and involved with the product/service. People who work in an orga nization are critical to the success of the organization. Think about the people who work at the Ritz Carlton hotels. These employees (people) are trained to provide the ultimate service to the upscale target market that the Ritz attracts. Processes sugges ts that marketers need to be keen on understanding the necessary creativity, discipline , and structure that the development of marketing programs demands today. Programs enhance the marketing effort by engaging the consumer in the activities that are actua lly directed and maintained by the consumers themselves. An example of this might be blogs or reviews and a host of social media sites. Finally, performance needs to be measured by not only overall company profitability but also those non -financial implica tions that impact the consumer’s reaction to the product/service offering. This might include things such as corporate social responsibility or brand equity. Chapter 2: Developing Marketing Strategies and Plans Kotler and Keller (2016) reference a tool used to evaluate a company’s internal strengths and weaknesses as well as the company’s external opportunities and threats. This analysis provides the marketer with a good sense of where the company is today , which obviously provides a sense of direction for the compilation of the marketing plan. Click the link below to access a webpage that will provide you with an overview of what each segment of the SWOT analysis could include . SWOT analysis. (n.d.). Retrieved from http://www.marketingteacher.com/swot -analysis/ Thinking back to the Chipotle example we discussed earlier, click here to see an example of a SWOT analysis for Chipotle . Utilizing the SWOT analysis, the marketing manager at Chipotle will be able to easily access the strengths and weaknesses within the organization and the opportunities and threats outside of the organization. This will provide the basis for the compilation and implementation of a sound strategic marketing plan. Click the link below to view a brief video , which provides a good overview of the SWOT analysis tool . Bplans. (2014, July 23). What is a SWOT analysis ? - Bplans.com [Video file]. Retrieved from https://www.youtube.com/watch?v=4aFB9xrkdiU&feature=youtu.be Click here to view a transcript of this video. Marketing management from a holistic sense involves planning, implementation , and control. Planning involves the structure for the efforts ; implementation suggests actually executing the efforts ; and control includes a series of marketing metrics , which measur e the performance levels of the marketing plan. Through the use of the SWOT analysis, marketers can more easily identify their target market. This allows them to differentiate their product/service offerings and utilize the marketing mix ( four Ps) to compile a marketing plan that will most efficiently and effec tively reach that target market. Marketers use a marketing plan to communicate their company’s advertising and marketing efforts. These need to align with the overall mission, vision , and objectives of the organization. The first stage of the process is compiling the situation analysis , which reviews the current state of the company. This involves a look at the external and internal environment, competitors, industry , and the SWOT analysis. The next step is the identification of the target market or the s egment of the population that the marketing efforts will focus on. This is important as marketing budgets are not unlimited , thus creating the need for marketers to use their marketing dollars in the most efficient manner. Next , there is the core of the ma rketing plan , which is the identification of the marketing mix ( four Ps). This involves identifying the product, price, place , and promotional efforts that will best meet the needs of the target market. These four factors n eed to be coordinated in such a way as to align with each other in the most efficient manner. The overall marketing plan also needs to include the financials , which will provid e the details of where the marketing monies will be spent and the timing of these expenditures. The schedule of t he marketing events or implementation needs to be included as well as a formal method of measuring the success of the marketing program. This should include measurable goals , which allow marketers to understand where improvements to the marketing plan are needed. MBA 5501, Advance d Marketing 4 Course Project : Marketing Plan Throughout this course , we will be analyzing a series of cases through the case analysis process. This will provide you with the opportunity to select one case to critically think through the problems associated with the company. You will also be asked to recommend potential solutions to the marketing manager within that organization. Additionally, you will be compiling a marketing plan for a fictional company . This will be explain ed in greater detail in Unit II. Conclusion This unit provide s an introduction into marketing management with an eye on the theoretical side of this discipline. Tools such as the SWOT analysis and case analysis will provide you with the necessary insight into understanding the holistic field of marketing management. Reference Kotler, P . T ., & Keller, K. L. (2016) . Marketing management (15th ed. ). Upper Saddle River, NJ: Pearson. Suggested Reading In order to access the following resources, click on the links below: In the article below , you will read about how Nestle has managed to rise above the enormous amount of compet ition within th e industry as well as the healthy eating trends that do not necessarily align with their main product line. Bapna, A. (2016, Sep tember 29). Will Nestle's Alpino chocolates taste success in the market again? [brand equity]. The Economic Times (Online) . Retrieved from http://search.proquest.com.libraryresources.columbiasouthern.edu/docview/1824045470?accountid= 33337 In the following video, you will learn more about strategic market ing plan s. This is a background lesson to the whole marketing process. Bernd Meyer . (2012, December 3). Marketing planning process [Video file] . Retrieved from https://youtu.be/xyb5Edfpw5U In the article below , the importance of corporate image , which lead s to customer satisfaction and a certain level of brand equity , is reinforced. Esmaeilpour, M., & Barjoei, S. (2016). The effect of corporate image on customer satisfaction through brand equity. Advances in Management and Applied Economics, 6(4), 95 –109. Retrieved from http://search.proquest.com.libraryresources.columbiasouthern.edu/docview/1794833729?accountid= 33337