Bus 530 - Marketing Management

Module 2

Submitted by:

Robert Chapman

Aspen University: BUS 530

Mr. Juan Martinez

08/21//2017

Supply Chain

        According to Whatis.com, supply chain refers to the network of individuals, resources, organizations, activities, and technology involved in the creation and sale of a product, from delivery of materials by supplier to manufacturer through delivery to the end user. An example as cited by Kotler and Keller (2012), is that of coffee grown in Ethiopa. Farmers plant and harvest the coffee beans and then sell them to wholesalers or a Fair Trade cooperative where they will be washed, dried and packaged for shipment. It will then shipped off and distributed to retailers or sold directly. In short, supply chain is every step required to bring a product from its initial creation through development and distribution to its end user.

Task Environment

As defined by Kotler and Keller (2012), task environment is part of the marketing environment that consists of those engaged in producing, distributing and promoting the offering. They further explain that these are the companies, suppliers of materials and service, distributors, dealers and target customers.

Holistic Marketing

Holistic marketing is the development, design, and utilization of marketing programs, processes, and activities that identify the scope of the marketing environment today (Kotler and Keller, 2012). Kotler and Keller describe four key dimension to holistic marketing. First there is internal marketing that ensures all in the company, particularly senior management, understand and support the appropriate marketing principles. The second dimension is ensuring multiple ways are utilized to create, deliver and communicate value in the best manner. This is referred to as integrated marketing. Relationship marketing is the third dimension and refers to cultivating multifaceted relationships with channel members, customers and marketing partners. The fourth dimension of holistic marketing is performance marketing.  Performance marketing is understanding the returns a business from the marketing activities and programs, and also serves to address legal, ethical, social and environmental concerns.

Product Market Expansion Grid

The product-market expansion grid is useful tool for detecting growth opportunities. A company will first look at its current market-penetration or market share  and consider if can increase that share through strategies such as price changes, increased promotions, more distribution or improving the current product (Joseph, n.d.). Next the company will utilize a market-development strategy to determine if it can find or develop new markets for its product (Kotler and Keller, 2012). Kotler and Keller describe next, the product-development strategy where the company considers if it can gain in the current market with new products. Eventually, the company through a diversification strategy will determine if there are opportunities to bring new products into new markets.

        Strategic Marketing vs Tactical Marketing

When a football coaching staff prepares a game plan for an opponent they determine what will give them the best chance for victory. This is their game strategy. Once game day comes around and the coaches begin calling plays based on game situations this is the tactical execution of the strategy. A strategic marketing plan versus a tactical marketing plan is somewhat similar. The strategic marketing plan, based on market analysis determines the target market and the value proposition for the company. The tactical marketing plan will then be how the product is marketed, through features, pricing, promotions, merchandising, service etc…(Kotler and Keller, 2012).

MOA

Market opportunity analysis (MOA) is defined in the text as a system used to determine the attractiveness and probability of success (Kotler and Keller, 2012). Kotler and Keller tell us companies use MOA to put forth questions such as:

Can the company effectively communicate the benefits of its product to a new market?

Can the company reach the target market in a cost-effective manner with its marketing?

Can the company deliver better benefits than a competitor?

Evaluating and answering those questions or others, gives the company a foundation to determine if the risk is worth the reward.

        Mission Statements

There are five major characteristics to a good mission statement. They are to focus on a limited number of goals, stress the company’s major policies and values, define the major competitive spheres where the company will operate, take a long term view, and they short, concise and as memorable as possible (Kotler and Keller, 2012).  

Focusing on a limited number of goals allows a company to be specific and realistic. Vague goals with a lot of superlatives serve to claim too much and lose credibility with employees and consumers.

Stressing the company’s policies and values provides understanding for employees when it comes to how the company will act regarding certain issues. The same goes for consumers who might want to know a company shares their personal values.

Defining the spheres wherein the company will operate is important to define what it does and what it offers. For a consumer potentially seeking to do business, it is important for them to know what industry the company serves, what products and services they have available, what locations they serve and other relevant information.

As Kotler and Keller point out, Management should only change the mission when is ceases to be relevant. The mission statement should be created with a vision of long term success in mind.

With regard to short, meaningful and memorable, memorable is perhaps the most important aspect since if customers do not remember you everything else is fruitless. Generally speaking, consumers will remember short, meaningful statements versus a long drawn out description. Examples I always fall back on come from my career with UPS. When I first started working with UPS, the technology age had not yet come about and the UPS slogan that summed up their purpose and goals was “We run the tightest ship in the shipping business.” As UPS moved toward technological innovations and expanded beyond just picking up and transporting packages the slogan changed to “What can Brown do for you.” In both instances the phrases are short and memorable, but also remind customers familiar with the brand, what the company focus is.