Marketing M A Rahman Part I: An Overview of Marketing Management Business Corporate Process 1. The Marketing Management Process Contents Problem New Mission Target Market New Products Rename Ads & Promos 911 Gifts target only last-minute holidays shopper → revenue issues → New CMO to be CEO later Decision Rationale Target wider segments of customer, not only last-minute gift shoppers She sold 1/3 for $30M, and hired new management team Qualitative marketing research for the above $80,000 annual income customers, eventually on past experience they defined the preferred goods New products, new vendors to satisfy the needs of the potential upscale customers High gross margin goods (dropped ½ of 450 and added 300 more) Relationships Value Practice Red Envelope, to reflect the upscale 1/3 of the budget spent in ads in magazines few weeks before holidays Partnership with e-shopping companies Dist. Owned inventory, marketing, customer care but no physical logistics Contracted with near airport company to have workers and warehouses Results Instantaneous updates to have the right goods in stock Huge success, lowering marketing costs with the increased RedEnvelope awareness Responsibility Matrix New Tools 1.1 Why Are Marketing Decisions important? Marketing attempts to measure and anticipate the needs and wants of a group of customers and respond with a flow of need-satisfying goods and services. Target Customers Develop Products Make them available Create Awareness Get feedback Build longterm relationship 1.1.1 The Importance of the Top Line Top Line Bottom Line Revenue Customer Focus to provide really needed goods and services Enjoy Profitability 1.2 Marketing Creates Value by Facilitating Exchange Relationships Marketing is a social process involving the activities necessary to enable individuals and organisations to obtain what they need and want through exchanges with others and to develop ongoing exchange