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PARTE 1 - Coggle Diagram

- - - - the activity, set of institutions and processes for creating, communicating,delivering and exchanging offerings that have value for customers, clients, partners and society at large.
    - - Goods
      - Services
      - Events
      - Experiences
      - Persons
      - Places
      - Organizations
      - Properties
      - Information
      - ideas
    - - Marketer and Prospects
        
        Marketers are good at stimulating
        and influencing the demand
        
        Irregular
        
        Full
        
        Declining
        
        Latent
        
        Non-existent
        
        Overfull
        
        Negative
        
        Unwholesome
      - The Market
        
        "a collection of Buyers and sellers that transact over a particular product or product class"
        
        5 basic Markets and flows
        
        key Customer Markets
        
        Consumer
        
        Business
        
        Global
        
        Governmental/non Profit
  - - - Needs: "Basic Human Requirements"
        
        Stated
        
        Unstated
        
        Real
        
        Delight
        
        Secret
      - Wants: "need directed to a specific object that aims to satisfy it"
      - Demand: "want for specific products backed by the ability to pay"
    - - Value proposition (intangible): a set of benefits that satisfies some needs. "Volvo is the safest car in the world"*
      - Offering: Combination of product, informations and experiences that make the Value Proposition real and tangible.
      - Brand: "an offering from a known source"
    - - Value
        
        Combination of Quality, service and price (Value Triad)
      - Satisfaction
        
        Judgement In relations to Expectations
    - - Communication: send and receive informations
      - Distribution: display sell. and deliver
      - Service: carry out transaction
    - - impression and engagement
    - - Task Environment: all actors involved in a specific offering (production, distribution, promotion)
      - Broad Environment
        
        demographic
        
        economic
        
        social-cultural
        
        natural
        
        technological
        
        political-legal
  - - - Technology
        
        Digital Balance sheet (importance of data)
        
        *Sharing Information is power*
      - Globalization
        
        multicultural
      - Consumer Information: new capabilities, more active role in the conversation
      - Increased Competition
        
        Private Labels: retailers make their own store brand
        
        Mega Brands: merging of two or more industries
        
        Deregulation: government authority loosened to favour competition
        
        Privatization
    - - Collect Information
      - Communicate with customers
      - Differentiate goods
  - - - achieve production efficiency, low costs,
        mass distribution
    - - hard selling, sell what the company makes
    - - providing value to the customer
    - - Relationship MKTG
        build mutually satisfying long term relationships with key stakeholders
        
        The MKTG Network
      - Integrated MKTG: The whole is greater than the sum of its part
        
        marketing activities integrated and designed with all the other activities in mind
      - Internal MKTG: the task of hiring, training and motivating able employees who want to serve the customers well
        
        vertical (upper Management) and horizontal (other department) alignment required
      - Performance MKTG: going beyond sales revenue
        
        Customer satisfaction, product quality, market share, customer loss rate
        
        legal, ethical, social and environmental impacts
    - - quality is not warranty of success
- - - - Choosing the Value
      - Providing the Value
      - Communicating the Value
    - - Primary activities
        
        inbound logistics
        
        operations
        
        outbound logistics
        
        marketing (sales)
        
        service
      - Support Activities
        
        procurement
        
        Tech development
        
        human resources management
        
        firm infrastructure
      - each department has to work well and coordinated
        with the others to conduct core business processes
        
        market sensing
        
        new offering realization
        
        customer acquisition
        
        customer relationship management
        
        fulfillment management
    - - Versatile (can apply to different markets)
      - difficult to imitate
      - source of competitive advantage
      - Steps to maximize Core Competencies
        
        Defining the Business Concept (big Idea)
        
        Shaping business scope
        
        Positioning company Brand Identity
    - - most large companies have
        4 organizational levels
        
        Division
        
        allocation of funds to each Business Unit in the division
        
        Business Unit
        
        Strategic plan
        
        Corporate
        
        corporate strategic plan
        
        Product
        
        Marketing Plan
        
        Strategic
        
        Target Market
        
        Value proposition
        
        Tactical
        
        Marketing Tactics
        
        Merchandising
        
        Pricing
        
        Promotion
        
        Sales Channel
        
        Product Features
        
        Service
  - - - "the Market definition of a business describes the business as a customer satisiying process"
        (customer needs perspective)
      - the Mission Statement
        
        limited number of goals
        
        stress the company values
        
        long term perspective
        
        short, memorable, meaningful
    - - single business, or collection of related businesses, that can be planned independently
      - has its own competitors
      - has a manager that is responsible for planning and profitability
    - - Boston Matrix (dogs, cash cows, star, question mark)
    - - intensive opportunities
        (within current businesses)
        
        product market expansion grid
      - Integrative opportunities
        (related businesses)
        
        backward/forward integration (supply chain)
        
        horizontal integration (competitors)
      - Diversification opportunities
        when good opportunities exist outside the present business (merchandising/licensing for Disney)
  - - - External Environment
        
        Opportunities
        
        Threat
        
        use of MOA (Market Opportunity Analisys)
      - Internal Environment
        
        Strenght
        
        Weaknesses
    - - Ranked
      - Quantified
      - Realistic
      - Consistent
    - - Porter identified 3 generic Strategies
        
        Overall Cost Leadership
        
        Differentiation
        
        Focus
      - Strategy: "the creation of a unique and valuable position involving a different set of activites"
      - Strategic Alliances
        
        Product/Service
        
        Promotional
        
        Logistics
        
        Pricing
    - - Cost estimation
    - - Inertia must be considered
  - - - Mission
      - marketing and financial goals
      - Positioning
    - - expense forecast
      - break-even analysis (determine the break-even point)
      - Sales forecast
- - - - Order-to-payment Cycle
      - Sales Information System
      - Databases, Data Warehousing, Data Mining
    - - by reading books, newspapers, publications; talking to customers, suppliers, distributors, company managers; monitoring online social media
        
        Internet is a big source of informations: Forums, blogs, complaint sites, review sites
      - must be legal and ethical
      - 8 possible action for improving
        
        train and motivate sales force to spot and report new development
        
        motivate intermediaries to pass along important intelligence
        
        Hire external experts
        
        Networking (internal and external)
        
        customer advisory panel
        
        Government data resources
        
        Purchase information form outside research firms and vendors
      - Must be closely coordinated with decision- making process
        
        Sharing
        
        Act Quickly
  - - - Trend: more predictable and durable; can provide strategic direction
      - Fad: Unpredictable, short lived, without social, economical and political relevance
      - Megatrend: large social, economic, political change, slow to form, big influence
    - - Social-Cultural
        from the S.c. Environment we absorb a World View that defines our relationships with
        
        View of Ourselves
        
        View of Others
        
        View of Organization
        
        View of Society
        
        View of Nature and Universe
        
        Core and secondary beliefs
      - Natural
      - Economic
        (Purchasing Power)
        
        Consumer Psychology (inclination to saving)
        
        Income Distribution
        
        Income, Savings, Debt and Credit
      - Technological
        "Creative destructiveness of technology is the price of progress"
        
        Accelerating pace of change
        
        Unlimited Opportunity for innovation
        
        R&D budget
        
        Increased regulation of tech change
      - Demographic
        
        Population Growth
        
        Age Mix
        
        Ethnic and other Markets
        
        Educational Groups
        
        Household patterns (family)
      - Political-Legal
        
        Increased Business legislation
        
        Government Agencies
        
        Pressure Groups
        (Political Action Commitee, Consumerist Movement)
  - - - Potential
        people interested in the market offer,
        but no income and access to it
        
        Available
        People with income and
        access to the market offer
        
        Target
        The part of the Available MKT
        that the company decide to pursue
        
        Penetrated
        People that already buy the product
    - - Market Demand Function Demand is not a fixed number, but a function
        It's NOT a Picture of Market Demand but a Forecast
        it's the total volume that would be bought by a defined customer group under specific conditions (geographical area, time period, mktg environment, mktg program)
        
        quote of sales that take place with no mktg expenditure: Market Minumum
        
        Market Sensitivity of Demand: the distance between MKT Minimum and MKT Potential
        
        Axis: Market Demand vs Marketing Expenditure
        
        raising MKTG Expenditure stimulates Market demand, first at increasing rate, then at decreasing rate
        
        Market Potential: upper limit of market demand
        "the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment"
        
        Market Penetration Index: Current MKT Demand / Market Potential
        
        Can Build many Scenarios; the one that will take place is called Market Forecast
      - Company Demand
        "the company estimated share of market demand at alternative levels of company marketing effort in a given time period"
    - - Total Market Potential
        maximum sales available to all firm in the industry, during a given period
        
        Common way: Potential Number of buyers (most difficult to calculate) X average quantity purchased by each X Price
        
        Chain-Ratio method
        to overcome difficulties related to determine n. of buyers
      - Area Market Potential
        related to specific territories
        
        Market Buildup Method (Business)
        
        NAICS
        
        a list of all potential buyers is needed
        
        Multiple Factor Index Method (Consumer)
        
        Brand Development Index (BDI)
      - Total Industry Sales and Market Shares
        the actual industry sales taking place in the market
        
        Need to identify competitors and estimate their sales
        
        from Industry Trade Associations Reports
        
        from Marketing Research firm (Nielsen)
    - - Sales Force Opinion
      - Buyer's Intentions
      - Market Test Method
      - Past Sales Analysis
      - Expert Opinions
- - - - (CPV) is the difference between Total Customer Benefits and Total Customer Costs of an offering
        
        TCB: perceived monetary value of the bundle of economic, functional and psychological benefits customers expect from a market offering
        
        TCC: perceived bundle of costs customer expect to incur in when evaluating, obtaining, using and disposing of the given market offering
        
        very often need for a Customer Value Analysis
        
        1.Identify major attributes and benefits valuable for the customers
        
        Assess quantitative importance of attributes and benefits
        
        3-4. Assess company's and competitor Performance related to attributes and benefits and examine it
        
        Monitor values over time
      - Choice Process and implications
        
        the CPV doesn't take in account costraints buyers may have
        
        be under orders (ex. buy at lowest price)
        
        relationship with salesperson
        
        customers some times make choices that give more weight to personal benefits rather than company benefits
      - Loyalty
        “A deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.”
        
        Value Propositon
        broader than the Core positioning
        
        Value Delivery System
    - - Dissatisfied
      - Satisfied
      - Delighted
      - Monitoring Satisfaction
        
        Periodic Surveys
        
        American Customers Satisfation Index (ACSI)
        
        Mistery Shoppers
        
        Customer Loss Rate of competitors
      - Expectations
        
        Past Buying experiences
        
        Friends advice
        
        Public information
        
        Marketing messages
      - Customer Satisfaction is both a goal and a tool
        (ambassadors of the brand)
    - - Quality: totality of features of a product/service that bear on its ability to satisify needs
        
        Performance Quality
        
        Conformance Quality
        promises mantained
      - The seller has delivered quality whenever its porduct or service meets or exceeds customers expectations
  - - - a profitable customer: the one that over time yelds a revenue stream exceeding by an accetable amount the company's cost stream for attracting, selling and serving the customer
      - Customer Profitability Analysis (CPA)
        
        Axis: Product Profit vs Customer Profit
        
        "firing" the company worst customers
    - - Must subtract the expected cost of attracting, selling and servicing the customer
    - - Different Acquisition Method
        with different result
      - Reducing Defection
        is also important
      - Retention Dynamics
        
        Marketing Funnel
        main steps in attracting
        and retaining customers
        
        The conversion rate at any step helps to detect bottlenecks and areas of improvement
        
        Acquiring new costumers cost 5 times more than retaining current one
        
        The average company loss 10% of their customers yearly
        
        Reducing customer defections by 5% can increase profits from 25% to 85%
      - Managing the customer base
        
        reduce the rate of customer defection
        
        Increasing longevity of customer relationships
        
        increase sales from current customers
        (cross-selling, share of wallet, up-selling)
        
        Making low-profile customers more profitable or terminating them
        
        More effort on high-profile customers
    - - Develop Loyalty Program
      - Create Institutional ties
      - Interact closely with customers
    - - "a specialized community of customers and employees whose identification and activities focus around the brand"
        
        Shared rituals
        
        Shared moral responsibility
        
        Consciousness of kind (sense of felt connection with the brand)
      - Types of Brand Communities
        
        Spontaneous
        
        Sponsored
        
        Facilitated
      - Maximizing the benefits of Brand Communities
        
        more revenues
        
        source of inspiration and feedback for product development
  - - - the process of managing detailed information about individual and all customers touch points to maximize loyalty
        
        Touch Point: any occasion when a customer encounters the brand or the product
        
        real time tracking of customer service
        
        allows to customize market offerings, services, programs, messages and media
      - Personalizing Marketing
        
        the problem of Privacy:
        Permission Marketing
      - Customer Empowerment
        
        provide customers resources and opportunities to become evangelist for brands
      - Customer review and Recommendation
        
        Online customer ratings and reviews are gaining importance
        
        Online Buzz (samples sent to influencers)
      - Customer Complaints
        
        best practices
        
        Make easy for the customer to reach out (hotline 24/7)
        
        Contact the customer as quickly as possible
        
        don't blame the customer
        
        friendly and empathic customer service people
- - - - Factors
        
        Reduce the dependence from domestic market
        
        need for bigger customer base to achieve Economy of scale
        
        Counterattack competitors in their home market
        
        Customers are going abroad
      - Risks
        
        not understanding of foreing preferences
        
        not understanding of foreign business culture
        
        lack of managers with international experience
        
        Underestimate Foreing regulations and political situation
      - Internationalization process goes by stages
        
        No export activities
        
        export via agents
        
        sales subsidiaries
        
        production facilities abroad
    - - How Many Markets to enter
        
        waterfall approach: enter one market after another
        
        Sprinkler approach: enter all market at the same time
        
        Born-global firm: market to entire world from the start
      - Evaluating Potential Markets
        
        Neighbor countries
        
        Psychic proximity (by culture, language, laws)
      - Developed vs developing Markets
    - - 5 Modes
        
        Licensing
        
        manifacturing process, trademark, patent, trade secret for a fee/royalty
        
        Less risk, but less control of the licensee
        
        Joint Ventures
        
        foreign and local investors form a company in which they share ownership and control
        
        Good partners share Brand values, mantain brand consistency across markets
        
        Direct Exporting
        
        Domestic-based export department
        
        Oversease sales branch
        
        Traveling Representatives
        
        foreing-based distributors
        
        Direct Investment
        
        Buy local company (Acquisition)
        
        build own manufacturing and service facilities
        
        Benefits
        
        Reducing cost (labour, freight and transport)
        
        Good Image in the host country ( creates jobs)
        
        More Risk
        
        Indirect Exporting
        
        Independent Intermediary
        
        less expensive
        
        Less Risk
    - - Standadized vs Adapted
      - most products require at least some adaptation
        
        Product Adaptation Strategies
        
        Communication Adaptation
        
        Global Pricing Strategies
        
        Transfer Prices
        
        Gray Markets
        
        Price Escalation: added cost and currency fluctuations
        
        Same Price Everywhere
        
        Market-based Price
        
        Cost-based Price
      - Country of Origin Effects