Marketing-Orientation---MBA-Class

DepartmentofMarketingJCSalvacruzMARK512MarketingStrategy:MarketOrientationandPerformanceMARK512MarketingStrategyandPolicyJCSalvacruz2Letmetellyouastory…MARK512MarketingStrategyandPolicyJCSalvacruz3MARKETINGProcessofPLANNINGandEXECUTING…the4Psideas,goods,andservices…tocreateexchanges…thatsatisfyindividualandorganizationalobjectivesMARK512MarketingStrategyandPolicyJCSalvacruz4TheMarketingStrategyPlanningProcessExternalMarketEnvironmentMARK512MarketingStrategyandPolicyJCSalvacruz5MarketingMixPlacePromotionPriceProductC•Quality•Features•Style/Options•Brandname•Packaging•Services/parts•Guarantees/Warranty•Listprice•Discounts•Allowances•Creditterms•Paymentperiod•Rental/lease•Advertising•Personalselling•Salespromotion•Point-of-purchasematerials•Publicity•Middlemen:typesandnumber•Location•Inventorylevels•TransportationMARK512MarketingStrategyandPolicyJCSalvacruz6Weneedtodevelopastrongmarketingorientation…notaproductionorientation“consumerswillfavorproductsthatareavailableandhighlyaffordable,thus,managementshouldfocusonimprovingproductionanddistributionefficiency”…notaproductphilosophy“consumerswillfavorproductsthatofferthemostquality,performance,andfeaturesMARK512MarketingStrategyandPolicyJCSalvacruz7…orasellingconcept“consumerswillnotbuyenoughoftheproductsunlesstheorganisationundertakesalarge-scalesellingandpromotioneffort”MARK512MarketingStrategyandPolicyJCSalvacruz8Marketorientationcontinuouscollectionofinformationaboutcustomers’needs,andcompetitorscapabilitiessharingthisinformationacrossdepartmentsusingtheinformationtocreatecustomervalue.MARK512MarketingStrategyandPolicyJCSalvacruz9ValueandSatisfactionValueCustomersformexpectationsregardingvalueMarketersmustdelivervaluetoconsumersValueReflectsBenefitsandCostsCostsBenefitsValueconcernsthedifferencebetweenthebenefitsacustomerseesfromafirm’smarketofferingandthecostsofobtainingthosebenefitsThecustomer’sviewofcostsandbenefitsisnotjustlimitedtoeconomic(orevenrational)considerations--andalowpricemayNOTresultinsuperiorvalue...MARK512MarketingStrategyandPolicyJCSalvacruz10ProvidedbymarketingProvidedbyproductionwithguidanceofmarketingTaskTimePlacePossessionUtilityValuethatcomesfromsatisfyinghumanneedsFormTypesofUtilityandHowTheyAreProvidedUtilityisthebenefitorcustomervaluereceivedbyusesofaproduct.UtilityMARK512MarketingStrategyandPolicyJCSalvacruz11Weneedtoadoptamarket-basedmanagementphilosophyDevelopingacustomer-ormarket-centricorientationratherthanproduct-orfactory-focus.CreatinganemployeeculturethatisresponsivetocustomersandchangingmarketconditionsMeasuringprofitsatthemarketlevelandtotrackmarket-basedperformancemetrics.MARK512MarketingStrategyandPolicyJCSalvacruz12Weneedtoadoptamarket-basedmanagementphilosophyMeasuringprofitsatthemarketlevelandtotrackmarket-basedperformancemetrics.ObjectiveMeasuresTargetsInitiativesCUSTOMERHowdoourcustomersseeus?ObjectiveMeasuresTargetsInitiativesLEARNINGandGROWTHCanwecontinuetoimproveandcreatevalue?ObjectiveMeasuresTargetsInitiativesFINANCIALHowdowelooktoshareholders?ObjectiveMeasuresTargetsInitiativesINTERNALBUSINESSPROCESSWhatmustweexcelat?VisionandStrategyObjectiveMeasuresTargetsInitiativesCUSTOMERHowdoourcustomersseeus?ObjectiveMeasuresTargetsInitiativesLEARNINGandGROWTHCanwecontinuetoimproveandcreatevalue?ObjectiveMeasuresTargetsInitiativesFINANCIALHowdowelooktoshareholders?ObjectiveMeasuresTargetsInitiativesINTERNALBUSINESSPROCESSWhatmustweexcelat?VisionandStrategyVisionandStrategyABalancedScorecardPerspectiveonPerformanceSource:AManagementGuideforthedeploymentofstrategicmetrics,RatheonMARK512MarketingStrategyandPolicyJCSalvacruz13Exhibit1.7DifferencesBetweenProduction-OrientedandMarket-OrientedOrganizations(1of2)ProductionorientationCompanysellswhatitcanmake;primaryfocusonfunctionalperformanceandcost.Narrow.Basedonproductionanddistributioncosts.Technicalresearch;focusonproductimprovementandcostcuttingintheproductionprocess.BusinessactivityorfunctionProductofferingProductlinePricingResearchMarketingorientationCompanymakeswhatitcansell;primaryfocusoncustomers’needsandmarketopportunities.Broad.Basedonperceivedbenefitsprovided.Marketresearch;focusonidentifyingnewopportunitiesandapplyingnewtechnologytosatisfycustomerneeds.MARK512MarketingStrategyandPolicyJCSalvacruz14Weneedtodevelopastrongcustomerfocusforlong-runsurvivalWhathappenswhenweunderwhelmourcustomers?AdoptedfromBest,RogerJ.Market-BasedManagement:StrategiesforGrowingCustomerValueandProfitability.Pearson-PrenticeHall,2005.MARK512MarketingStrategyandPolicyJCSalvacruz15MeasuringCustomerSatisfactionCustomerSatisfactionIndex(CSI)–derivedfromcustomers’ratingsoftheiroverallsatisfactiononasix-pointscale.VeryDissatisfiedModeratelyDissatisfiedSomewhatDissatisfiedSomewhatSatisfiedModeratelySatisfiedVerySatisfied(0)(20)(40)(60)(80)(100)MARK512MarketingStrategyandPolicyJCSalvacruz16IsaCSIof72good?MARK512MarketingStrategyandPolicyJCSalvacruz17MarketPerformanceMetricsSalesMarketshareCustomersatisfactionMARK512MarketingStrategyandPolicyJCSalvacruz18CustomerSatisfa