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Marketing StartHope So

ContentsArticles

Fast-moving consumer goods 1Trade promotion management 3Category management 4Marketing management 9Marketing effectiveness 14

ReferencesArticle Sources and Contributors 18Image Sources, Licenses and Contributors 19

Article LicensesLicense 20

Fast-moving consumer goods 1

Fast-moving consumer goods

Soft drinks are FMCGs

Fast-moving consumer goods (FMCG) or consumer packagedgoods (CPG) are products that are sold quickly and at relatively lowcost. Examples include non-durable goods such as soft drinks,toiletries, and grocery items.[][1] Though the absolute profit made onFMCG products is relatively small, they are generally sold in largequantities, and so the cumulative profit on such products can besubstantial.

Fast-moving consumer electronics are a type of FMCG and aretypically low priced generic or easily substitutable consumerelectronics, including lower end mobile phones, MP3 players, gameplayers, and digital cameras, which have a short usage life, typically a year or less, and as such are disposable. CheapFMCG electronics are often retained even after immediate failure, as the purchaser rationalizes the decision to notreturn the goods on the basis that the goods were cheap to begin with, and that the cost of return relative to the lowcost of purchase is high. Thus low-quality electronic FMCG goods can be highly profitable for the vendors.

Global leaders in the FMCG segment are Anheuser-Busch InBev, Nestlé, ITC, Hindustan Unilever Limited, ReckittBenckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc.

ScopeThe term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days,weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchenappliances, which are generally replaced over a period of several years.FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly.Some FMCGs—such as meat, fruits and vegetables, dairy products, and baked goods—are highly perishable. Othergoods such as alcohol, toiletries, pre-packaged foods, soft drinks, and cleaning products have high turnover rates. Anexcellent example is a newspaper—every day's newspaper carries different content, making one useless just one daylater, necessitating a new purchase every day.The following are the main characteristics of FMCGs:[]

•• From the consumers' perspective:•• Frequent purchase• Low involvement (little or no effort to choose the item – products with strong brand loyalty are exceptions to

this rule)•• Low price

•• From the marketers' angle:•• High volumes• Low contribution margins• Extensive distribution networks• High stock turnover

Fast-moving consumer goods 2

ISIC definitionThe retail market for FMCGs includes businesses in the following International Standard Industrial Classification(ISIC) (Revision 3) categories[2][3]

•• ISIC 5211 retail sales in non-specialized stores•• ISIC 5219 other retail sale in non-specialized stores•• ISIC 5220 retail sale of food, beverages and tobacco in specialized stores•• ISIC 5231 retail sale of pharmaceutical and medical goods, cosmetic and toilet articles•• ISIC 5251 retail sale via mail order houses•• ISIC 5252 retail sale via stalls and markets•• ISIC 5259 whole sale goodsSupplier industries for FMCGs include•• 1511 meat and meat products•• 1512 fish and fish products•• 1513 fruit and vegetables•• 1514 vegetable and animal oils and fats•• 1520 dairy products•• 1531 grain mill products•• 1532 starches and starch products•• 1533 animal feeds•• 1541 bakery products•• 1542 sugar•• 1543 cocoa, chocolate and sugar confectionery•• 1544 macaroni, noodles, couscous•• 1549 other food products•• 1551 spirits; ethyl alcohol•• 1552 wines•• 1553 malt liquors and malt•• 1554 soft drinks, mineral waters•• 1600 tobacco products•• 2101 pulp, paper and paperboard•• 2102 corrugated paper, containers•• 2109 other articles of paper and paperboard•• 2424 soap and detergents, cleaning preparations, perfumes.like the big supermarkets

References[2][2] , p.2[3][3] , p.3-4

External links• Time To Move To A Circular Economy (http:/ / www. fastcoexist. com/ 1681309/

with-resources-running-short-its-time-to-move-to-a-circular-economy)

Trade promotion management 3

Trade promotion management

Trade Promotion Management (TPM)Trade Promotion Management typically refers to one or more software applications that assist companies inmanaging their complex trade promotion activity. Trade Promotion Management is a challenge faced by mostCPG/FMCG companies around the globe. Consumer goods companies spend substantial amounts of time andmoney—14 percent of revenue, according to an AMR Research study—on promotions with retailers designed toboost revenue or increase/protect market share (or both).

GartnerGartner believes that technologies related to managing trade promotions have never been more relevant, as theaverage revenue expended by manufacturers for promotions now exceeds 20%. More and more companies areleaving spreadsheets for automated technologies, while others are adding promotion optimization capabilities.Gartner published the "Vendor Panorama for Trade Promotion Management in Consumer Goods" in August 2012.[1]

Key functions•• sales forecasting•• Promotion planning and budgeting•• Predictive modeling/optimization•• Promotion execution and monitoring•• Settlement•• Post event analysis

Business problems addressedHistorically, there have been many solutions to trade promotion management. Commonly, companies use theiraccounting systems or spreadsheets, but as the complexity of trade increases software solutions have been developedand implemented to fill the needs of companies in various industries including consumer goods, food manufacturing,food service and others.

Lack of accurate and timely information to support trade promotion decision-makingTrade promotion decisions are often rushed and based on sub-par data. While sales and marketing managers aresurrounded by promotion information, questions on retail commitment and product forecast accuracy can hinder theprocess. Multiple data sources and conflicting needs from various departments further complicate the issue.

Inability to plan promotions based on analyticsHistorical trade promotion data should be analyzed in order to continually improve trade promotions. If a companydoes not utilize processes and systems that measure trade promotion performance, future trade promotion executionscould be less effective than if they’d been planned using past analytical information.

Ineffective organization and partner integrationLack of integration both internally and with external partners can hinder trade promotion success. Key elements oforganizational integration include standardized metrics, regular information sharing, cross-functional departmentcollaboration, and collaborative processes4. Integration with retail partners is important to executing promotions

Trade promotion management 4

successfully, as well as maintain strong relationships with retailers over time.

Lack of appropriate Key Performance Indicators (KPI)KPIs tell manufacturers and retailers how trade promotions performed relative to their pre-determined objectives. Alack of understanding on what trade promotion data to measure and how to measure performance can hinder theoverall process. Manufacturers and retailers will not know what made a promotion effective or ineffective unlessthey have predetermined data points to measure and analyze.

References[1] http:/ / www. gartner. com/ id=2143415

Category management

The bathroom fittings category in Wal*Mart

Category management is a retailing and purchasing concept in whichthe range of products purchased by a business organization or sold by aretailer is broken down into discrete groups of similar or relatedproducts; these groups are known as product categories (examples ofgrocery categories might be: tinned fish, washing detergent,toothpastes). It is a systematic, disciplined approach to managing aproduct category as a strategic business unit.[1] The phrase "categorymanagement" was coined by Brian F. Harris.[]

Category management in a retail context

Each category is run as a "mini business" (business unit) in its own right, with its own set of turnover and/orprofitability targets and strategies. Introduction of Category Management in a business tends to alter the relationshipbetween retailer and supplier: instead of the traditional adversarial relationship, the relationship moves to one ofcollaboration, with exchange of information, sharing of data and joint business building.

The focus of all supplier negotiations is the effect on turnover of the category as whole, not just the sales ofindividual products. Suppliers are expected, indeed in many cases mandated, to only suggest new productintroductions, a new planogram or promotional activity if it is expected to have a beneficial effect on the turnover orprofit of the total category and be beneficial to the shoppers of that category.The concept originated in grocery (mass merchandising) retailing, and has since expanded to other retail sectors suchas DIY, cash and carry, pharmacy, and book retailing.[2]

Category management 5

Definition of category management (retail)Category management lacks a single definition thus leading to some ambiguity even among industry professionals asto its exact function. Three comparative mainstream definitions are as follows:Category management is a process that involves managing product categories as business units and customizingthem [on a store by store basis] to satisfy customer needs. (Nielsen)[3]

The strategic management of product groups through trade partnerships which aims to maximize sales and profit bysatisfying consumer and shopper needs (Institute of Grocery Distribution)[4]

.. marketing strategy in which a full line of products (instead of the individual products or brands) is managed as astrategic business unit (SBU). (Business Dictionary)[5]

The Nielsen definition, published in 1992, was a little ahead of its time in that customising product offerings on astore by store basis is logistically difficult and is now not considered a necessary part of category management; it is aconcept now referred to as micromarketing. Nevertheless, most grocery retailers will segment stores at least by size,and select product assortments accordingly. Wal*Mart's Store of the Community, implemented in North America isone of the few examples of where product offerings are tailored right down to the specific store.[6]

Rationale for category managementOne key reason for the introduction of category management was the retailers' desire for suppliers to add value totheir (i.e. the retailer's) business rather than just the supplier's own. For example, in a category containing brands Aand B, the situation could arise such that every time brand A promoted its products, the sales of brand B would godown by the amount that brand A would increase, resulting in no net gain for the retailer. The introduction ofcategory management imposed the condition that all actions undertaken, such as new promotions, new products,re-vamped planogram, introduction of point of sale advertising etc. were beneficial to the retailer and the shopper inthe store.A second reason was the realization that only a finite amount of profit could be milked from price negotiations andthat there was more profit to be made in increasing the total level of sales.A third reason was that the collaboration with the supplier meant that supplier's expertise about the market could bedrawn upon, and also that a considerable amount of workload in developing the category could be delegated to thesupplier.[7]

Definition of a categoryThe Nielsen definition of a category, used as the basic definition across the industry is that the products should meeta similar consumer need, or that the products should be inter-related or substitutable.[8] The Nielsen definition alsoincludes a provision that products placed together in the same category should be logistically manageable in store(for example there may be issues in having room-temperature and chilled products together in the same categoryeven though the initial two conditions are met).However, this definition does not explain how the process often works in practical retailing situations, wheredemographic or marketing considerations take precedence.

Category management 6

The category management 8-step process (retail)

The category management 8-step process

The industry standard model for category management in retail is the8-step process, or 8-step cycle developed by the Partnering Group.[9]

The eight steps are shown in the diagram on the right; they are :

1.1. Define the category (i.e. what products are included/excluded).2.2. Define the role of the category within the retailer.3.3. Assess the current performance.4.4. Set objectives and targets for the category.5.5. Devise an overall Strategy.6.6. Devise specific tactics.7.7. Implementation.8.8. The eighth step is one of review which takes us back to step 1.

The 8-step process, whilst being very comprehensive and thorough has been criticized for being rather too unwieldyand time-consuming in today's fast-moving sales environment; in one survey only 9% of supplier companies statedthey used the full 8-step process.[10] The current industry trend is for supplier companies to use the standard processas a basis to develop their own more streamlined processes, tailored to their own particular products[11]

Market research company Nielsen has a similar process based on only 5 steps : reviewing the category, targetingconsumers, planning merchandising, implementing strategy, evaluating results.

Category captainsIt is commonplace for one particular supplier into a category to be nominated by the retailer as a category captain.The category captain will be expected to have the closest and most regular contact with the retailer and will also beexpected to invest time, effort, and often financial investment into the strategic development of the category withinthe retailer.In return, the supplier will gain a more influential voice with the retailer. The category captain is often the supplierwith the largest turnover in the category. Traditionally the job of category captain is given to a brand supplier, but inrecent times the role has also gone to particularly switched-on private label suppliers.[12]

In order to do the job effectively, the supplier may be granted access to a greater wealth of data-sharing, e.g. moreaccess to an internal sales database such as Walmart's Retail Link.

Governmental concerns about category managementMany governments have viewed increased collaboration between suppliers and retailers as a potential source ofantitrust breaches, such as price fixing. For example the UK Competition Commission[13] has raised their issues onmarket distortion in principle. They have also acted on milk price-fixing in Britain.[14]

Category Management AssociationThe Category Management Association (CMA) is the global category management community that enablesprofessionals to connect with peers around the world and further their careers with the latest in best practices andcertification. Founded in 2004, it is the only organization certifying coursework and individual category managementprofessionals according to recognized industry standards. The Association encompasses a broad range of strategicinsights and planning functions including: Category Management, Consumer Insights, In-Store Execution,Merchandising, Space Management, Shopper Insights & Shopper Marketing, Trade Promotion, and Pricing.Highlights

Category management 7

The Association features a weekly e-newsletter, Share Groups, resource directories, best practice surveys, andglobal events, and is the only organization certifying individual professionals and companies based onindustry-wide recognized standards.

Membership

Global members include businesses and individuals from the top consumer goods companies and leadingretailers, plus mid-size companies, universities, and solution providers. The CMA collaborates with itsmembers to realize best practices and advance the discipline of category management. Together we solvecommon problems with innovative solutions.

The Association serves as an unbiased, central source for industry information and is unparalleled in its sole focus oncategory management.

Modified category managementFor MRP-based manufacturing industries, the predominant cost-saving methodology in category management (CM)involves the integration of market intelligence with leveraged spending (for a given category of product or service).In industries where asset operation and preservation bear more significance to the procurement process than doproduct manufacturing – such as in an MROTemplate:Maintenance,Repair,operations environment – demonstrablebenefit can still be achieved with category management but is best approached with some manner of adjustment toCM’s usual processes for analysis and strategy development. The first challenge becomes incorporating analyticalprocesses and value drivers that are largely indigenous to the MRP world in a manner that makes sense to an MROenvironment. The second (and no less important) challenge becomes avoiding a trap where the CM processes areperceived to be more important than their outcome – a scenario that can result in significant analytical delay, andeven complete process paralysis. An excellent example of an MRO environment warranting adjustment to classicalcategory management is nuclear power generation in the United States, where the adjusted approach to categorymanagement has been coined "MCM" – standing for MRO-based Category Management or Modified CategoryManagement. Not only does electricity generation epitomize an MRO-driven environment, the nuclear energy sourceadds numerous dimensions of supply and procurement complexity – including federal and state regulatorycompliance, nuclear industry standards compliance, nuclear-unique system and component design, and atightly-audited (and very small) supply base, amongst others. Due to the nature and quantity of discretecharacteristics native to nuclear power generation, it can easily be argued that nuclear power generation, in and ofitself, should be a distinct category of procurement within a category management project. The fundamentaladjustment made between the classical category management approach and the nuclear MCM approach is a shiftfrom procurement strategies focused on leveraged spending to procurement strategies embracing nuclear valuedrivers, technology innovation, risk management, and strategic sourcing.

Category management in purchasingCategory management can also be applied to purchasing within an organisation. Although the term is the same andthere are many similarities with elements of retail category management including the use of similar tools andtechniques applied in reverse, the methodology is fundamentally different. Applying Category Management inpurchasing benefits organisations by providing an approach to reduce the cost of buying goods and services, reducerisk in the supply chain, increase overall value from the supply base and gain access to more innovation fromsuppliers. It is a strategic approach that focuses on the vast majority of organisational spend. If applied effectivelythroughout an entire organisation the results can be significantly greater than traditional transactional basedpurchasing negotiations.The concept of Category Management in purchasing originated in the late 80's. There is no single founder or originator but the methodology first appeared in the automotive sector and has since been developed and adopted by

Category management 8

organisations worldwide. Today Category Management is considered by many global companies as an essentialstrategic purchasing approach. Category Management has been defined as “an evolving methodology that drivessourcing strategy in progressive organisations today”.[15]

The Chartered Institute of Purchasing & Supply defines Category Management as:"organising the resources of the procurement team in such a way as to focus externally onto the supplymarkets of an organisation (as against having a focus on the internal customers or on internal Procurementdepartmental functions) in order to fully leverage purchasing decisions”.[16]

Jonathan O'Brien, author of Category Management in Purchasing, defines Category Management as:"the practice of segmenting the main areas of organisational spend on bought-in goods and services into discretegroups of products and services according to the function of those goods or services and, most importantly, to mirrorhow individual marketplaces are organised. Using this segmentation organisations work cross functionally onindividual categories, examining the entire category spend, how the organisation uses the products or services withinthe category, the marketplace and individual suppliers.",[17]

Peter Hunt, partner at ADR International, writes“the term category management can mean different things to different people, so a working definition isneeded. A ‘category’ is the logical grouping of similar expenditure items, such as spend on advertising agencyservices or IT hardware. Category management is the sourcing process used to manage these categories tosatisfy business needs while maximising the value delivered from the supply base”.[18]

Many public sector organisations have recently adopted category management as a strategic transformation tool. SirPhilip Green, in his “Efficiency Review” of UK government spending, recommended that “centralised procurement[should be] mandated for common categories to leverage this buying power and achieve best practice”.[19]

Notes[2] Category Management in Book Retailing (http:/ / www. publishersweekly. com/ article/ CA169041. html)[3][3] Nielsen Category Management - Positioning Your Organisation to Win, p9[4] IGD definition (http:/ / www. igd. com/ index. asp?id=1& fid=1& sid=6& tid=38& folid=0& cid=125)[5] Business Dictionary Definition (http:/ / www. businessdictionary. com/ definition/ category-management. html)[6] Store of the Community (http:/ / walmart. nwanews. com/ wm_story. php?storyid=35583& section=shareholder)[7] Rationale for Category Management (http:/ / www. catmanplus. com/ whatis. html)[8] Nielsen Definition of a Category (http:/ / www. acnielsen. com/ news/ european/ ie/ 2001/ 20010201. htm)[9] The 8-step Category Management process (http:/ / www. igd. com/ index. asp?id=1& fid=1& sid=6& tid=38& folid=0& cid=125)[10] 9% of supplier companies admit to 8 step process (http:/ / www. igd. com/ index. asp?id=1& fid=1& sid=6& tid=38& folid=0& cid=125)[11] Trend for Suppliers to develop Streamlined Cat Man processes (http:/ / catmanplus. com. whatis. html)[12] The role of Category Captain (http:/ / www. catmanplus. com/ whatis. html)[13] Competition Commission (http:/ / www. competition-commission. org. uk)[14] Milk Price Fixing (http:/ / news. bbc. co. uk/ 1/ hi/ business/ 7132108. stm)[15][15] "Five Best Practices for Category Management", Justin Falgione et al., Inside Supply Management, August 2008[16][16] CIPS Knowledge Works: Category Management, July 2007[17] " Category Management in Purchasing by Jonathan O'Brien, Second Edition (2012), Kogan Page, London, ISBN 978 0 7494 6498 1

E-ESBN 978 0 7494 6499 8 (http:/ / www. amazon. co. uk/ Category-Management-Purchasing-Strategic-Profitability/ dp/ 0749464984/ref=sr_1_3?s=books& ie=UTF8& qid=1348118499& sr=1-3)

[18] 'Category management explained", Supply Management, 30 January 2003 (http:/ / www. supplymanagement. com/ resources/ q-and-a/2003/ category-management-explained/ ), accessed 26.5.2011.

[19] Sir Philip Green, Efficiency Review by Sir Philip Green (http:/ / download. cabinetoffice. gov. uk/ efficiency/ sirphilipgreenreview. pdf),accessed 13.6.2011

Category management 9

References

External links• ECR Community Platform (Category Management) (http:/ / ecr-all. org/ blog/ category/ demand/

category-management-demand/ )• CIPS Category Management Model (http:/ / www. cips. org/ en/ resources/ categorymanagementmodel/ )• Category Management Association (http:/ / www. cpgcatnet. org/ )

Marketing management

MarketingKey concepts

•• Product marketing•• Pricing•• Distribution•• Service•• Retail•• Brand management•• Account-based marketing•• Ethics•• Effectiveness•• Research•• Segmentation•• Strategy•• Activation•• Management•• Dominance•• Marketing operations•• Social marketing•• Identity

Promotional contents

•• Advertising•• Branding•• Underwriting spot•• Direct marketing•• Personal sales•• Product placement•• Publicity•• Sales promotion•• Sex in advertising•• Loyalty marketing•• Mobile marketing• Premiums• Prizes•• Corporate anniversary•• On Hold Messaging

Marketing management 10

Promotional media

•• Printing•• Publication•• Broadcasting•• Out-of-home advertising•• Internet•• Point of sale•• Merchandise•• Digital marketing•• In-game advertising•• Product demonstration•• Word-of-mouth•• Brand ambassador•• Drip marketing•• Visual merchandising

Marketing management is a business discipline which is focused on the practical application of marketingtechniques and the management of a firm's marketing resources and activities. Rapidly emerging forces ofglobalization have led firms to market beyond the borders of their home countries, making international marketinghighly significant and an integral part of a firm's marketing strategy.[1] Marketing managers are often responsible forinfluencing the level, timing, and composition of customer demand accepted definition of the term. In part, this isbecause the role of a marketing manager can vary significantly based on a business's size, corporate culture, andindustry context. For example, in a large consumer products company, the marketing manager may act as the overallgeneral manager of his or her assigned product.[2] To create an effective, cost-efficient marketing managementstrategy, firms must possess a detailed, objective understanding of their own business and the market in which theyoperate.[] In analyzing these issues, the discipline of marketing management often overlaps with the relateddiscipline of strategic planning.

StructureMarketing management employs various tools from economics and competitive strategy to analyze the industrycontext in which the firm operates. These include Porter's five forces, analysis of strategic groups of competitors,value chain analysis and others.[] Depending on the industry, the regulatory context may also be important toexamine in detail.In competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especially ontheir relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine eachcompetitor's cost structure, sources of profits, resources and competencies, competitive positioning and productdifferentiation, degree of vertical integration, historical responses to industry developments, and other factors.Marketing management often finds it necessary to invest in research to collect the data required to perform accuratemarketing analysis. As such, they often conduct market research (alternately marketing research) to obtain thisinformation. Marketers employ a variety of techniques to conduct market research, but some of the more commoninclude:• Qualitative marketing research, such as focus groups and various types of interviews• Quantitative marketing research, such as statistical surveys• Experimental techniques such as test markets• Observational techniques such as ethnographic (on-site) observationMarketing managers may also design and oversee various environmental scanning and competitive intelligenceprocesses to help identify trends and inform the company's marketing analysis.

Marketing management 11

A brand audit is a thorough examination of a brand’s current position in an industry compared to its competitors andthe examination of its effectiveness. When it comes to brand auditing, five questions should be carefully examinedand assessed. Thetitive are the business’ prices and costs, how strong is the business’ competitive position incomparison to its competitors, and what strategic issues are facing the business.Generally, when a business is conducting a brand audit, the main goal is to uncover business’ resource strengths,deficiencies, best market opportunities, outside threats, future profitability, and its competitive standing incomparison to existing competitors. A brand audit establishes the strategic elements needed to improve brandposition and competitive capabilities within the industry. Once a brand is audited, any business that ends up with astrong financial performance and market position is more likely than not to have a properly conceived andeffectively executed brand strategy.A brand audit examines whether a business’ share of the market is increasing, decreasing, or stable. It determines ifthe company’s margin of profit is improving, decreasing, and how much it is in comparison to the profit margin ofestablished competitors. Additionally, a brand audit investigates trends in a business’ net profits, the return onexisting investments, and its established economic value. It determines whether or not the business’ entire financialstrength and credit rating is improving or getting worse. This kind of audit also assesses a business’ image andreputation with its customers. Furthermore, a brand audit seeks to determine whether or not a business is perceivedas an industry leader in technology, offering product or service innovations, along with exceptional customer service,among other relevant issues that customers use to decide on a brand of preference.A brand audit usually focuses on a business’ strengths and resource capabilities because these are the elements thatenhance its competitiveness. A business’ competitive strengths can exist in several forms. Some of these formsinclude skilled or pertinent expertise, valuable physical assets, valuable human assets, valuable organizational assets,valuable intangible assets, competitive capabilities, achievements and attributes that position the business into acompetitive advantage, and alliances or cooperative ventures.The basic concept of a brand audit is to determine whether a business’ resource strengths are competitive assets orcompetitive liabilities. This type of audit seeks to ensure that a business maintains a distinctive competence thatallows it to build and reinforce its competitive advantage. What’s more, a successful brand audit seeks to establishwhat a business capitalizes on best, its level of expertise, resource strengths, and strongest competitive capabilities,while aiming to identify a business’ position and future performance.

Marketing strategyTo achieve the desired objectives, marketers typically identify one or more target customer segments which theyintend to pursue. Customer segments are often selected as targets because they score highly on two dimensions: 1)The segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. iswilling to pay high prices), or other factors; and 2) The company has the resources and capabilities to compete forthe segment's business, can meet their needs better than the competition, and can do so profitably.[] In fact, acommonly cited definition of marketing is simply "meeting needs profitably." []

The implication of selecting target segments is that the business will subsequently allocate more resources to acquireand retain customers in the target segment(s) than it will for other, non-targeted customers. In some cases, the firmmay go so far as to turn away customers who are not in its target segment.The doorman at a swanky nightclub, forexample, may deny entry to unfashionably dressed individuals because the business has made a strategic decision totarget the "high fashion" segment of nightclub patrons.In conjunction with targeting decisions, marketing managers will identify the desired positioning they want the company, product, or brand to occupy in the target customer's mind. This positioning is often an encapsulation of a key benefit the company's product or service offers that is differentiated and superior to the benefits offered by competitive products.[] For example, Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in "safety", whereas BMW has traditionally positioned its brand

Marketing management 12

to be perceived as the leader in "performance".Ideally, a firm's positioning can be maintained over a long period of time because the company possesses, or candevelop, some form of sustainable competitive advantage.[] The positioning should also be sufficiently relevant tothe target segment such that it will drive the purchasing behavior of target customers.[] To sum up,the marketingbranch of a company is to deal with the selling and popularity of its products among people and its customers,as thecentral and eventual goal of a company is customer satisfection and the return of revenue.

Implementation planning

The Marketing Metrics Continuum provides a framework for how to categorizemetrics from the tactical to strategic.

If the company has obtained an adequateunderstanding of the customer base and itsown competitive position in the industry,marketing managers are able to make theirown key strategic decisions and develop amarketing strategy designed to maximizethe revenues and profits of the firm. Theselected strategy may aim for any of avariety of specific objectives, includingoptimizing short-term unit margins, revenuegrowth, market share, long-termprofitability, or other goals.

After the firm's strategic objectives havebeen identified, the target market selected,and the desired positioning for the company,product or brand has been determined, marketing managers focus on how to best implement the chosen strategy.Traditionally, this has involved implementation planning across the "4 Ps" of marketing: product management,pricing (at what price slot does a producer position a product, e.g. low, medium or high price), place (the place orarea where the products are going to be sold, which could be local, regional, countrywide or international) (i.e. salesand distribution channels), and Promotion. NowWikipedia:Manual of Style/Dates and numbers#Chronological itemsa new P has been added making it a total of five P's. The fifth P is politics, which affects marketing in a significantway.

Taken together, the company's implementation choices across the 4(5) Ps are often described as the marketing mix,meaning the mix of elements the business will employ to "go to market" and execute the marketing strategy. Theoverall goal for the marketing mix is to consistently deliver a compelling value proposition that reinforces the firm'schosen positioning, builds customer loyalty and brand equity among target customers, and achieves the firm'smarketing and financial objectives.In many cases, marketing management will develop a marketing plan to specify how the company will execute thechosen strategy and achieve the business' objectives. The content of marketing plans varies from firm to firm, butcommonly includes:•• An executive summary•• Situation analysis to summarize facts and insights gained from market research and marketing analysis•• The company's mission statement or long-term strategic vision•• A statement of the company's key objectives, often subdivided into marketing objectives and financial objectives•• The marketing strategy the business has chosen, specifying the target segments to be pursued and the competitive

positioning to be achieved•• Implementation choices for each element of the marketing mix (the 4(5)Ps)

Marketing management 13

Project, process, and vendor managementMore broadly, marketing managers work to design and improve the effectiveness of core marketing processes, suchas new product development, brand management, marketing communications, and pricing. Marketers may employthe tools of business process reengineering to ensure these processes are properly designed, and use a variety ofprocess management techniques to keep them operating smoothly.Effective execution may require management of both internal resources and a variety of external vendors and serviceproviders, such as the firm's advertising agency. Marketers may therefore coordinate with the company's Purchasingdepartment on the procurement of these services. Under the area of marketing agency management (i.e. workingwith external marketing agencies and suppliers) are techniques such as agency performance evaluation, scope ofwork, incentive compensation, RFx's and storage of agency information in a supplier database.

Reporting, measurement, feedback and control systemsMarketing management employs a variety of metrics to measure progress against objectives. It is the responsibilityof marketing managers – in the marketing department or elsewhere – to ensure that the execution of marketingprograms achieves the desired objectives and does so in a cost-efficient manner.Marketing management therefore often makes use of various organizational control systems, such as sales forecasts,sales force and reseller incentive programs, sales force management systems, and customer relationship managementtools (CRM). Recently, some software vendors have begun using the term "marketing operations management" or"marketing resource management" to describe systems that facilitate an integrated approach for controllingmarketing resources. In some cases, these efforts may be linked to various supply chain management systems, suchas enterprise resource planning (ERP), material requirements planning (MRP), efficient consumer response (ECR),and inventory management systems.

References[1] Joshi, Rakesh Mohan, (2005) International Marketing, Oxford University Press, New Delhi and New York ISBN 0-19-567123-6

Further reading• Lenskold, James D. (2003). The Path to Campaign, Customer, and Corporate Profitability by James D. Lenskold

(http:/ / books. google. com/ ?id=-ByzlitSB9QC& dq=Lenskold,+ Jim. + Marketing+ ROI. + Marketing+ ROI:+The+ Path+ to+ Campaign,+ Customer,+ and+ Corporate+ Profitability+ By+ James+ Lenskold). McGraw-HillProfessional. ISBN 0-07-141363-4. Retrieved 2008-11-03.

• Patterson, Laura (2008). Marketing Metrics in Action: Creating a Performance-Driven Marketing Organization(http:/ / www. amazon. com/ Marketing-Metrics-Action-Performance-Driven-Organization/ dp/ 1933199156/ref=sr_1_6?ie=UTF8& s=books& qisbn=1225704819& sr=1-6). Racom Communications. ISBN 1-933199-15-6.Retrieved 2008-11-03.

• Masi, R. J.; Weidner, C. K, AS (1995). Organizational culture, distribution and amount of control, andperceptions of quality. Group & Organization Management. doi: 10.1177/1059601195202004 (http:/ / dx. doi.org/ 10. 1177/ 1059601195202004). 2

Marketing management 14

External links• Books about Marketing management : , Resources in your library (http:/ / onlinebooks. library. upenn. edu/

webbin/ ftl?st=wp& su=Marketing+ management), Resources in other libraries (http:/ / onlinebooks. library.upenn. edu/ webbin/ ftl?st=wp& su=Marketing+ management& library=0CHOOSE0) Marketing at Wikibooks

Marketing effectiveness

MarketingKey concepts

•• Product marketing•• Pricing•• Distribution•• Service•• Retail•• Brand management•• Account-based marketing•• Ethics•• Effectiveness•• Research•• Segmentation•• Strategy•• Activation•• Management•• Dominance•• Marketing operations•• Social marketing•• Identity

Promotional contents

•• Advertising•• Branding•• Underwriting spot•• Direct marketing•• Personal sales•• Product placement•• Publicity•• Sales promotion•• Sex in advertising•• Loyalty marketing•• Mobile marketing• Premiums• Prizes•• Corporate anniversary•• On Hold Messaging

Promotional media

•• Printing

Marketing effectiveness 15

•• Publication•• Broadcasting•• Out-of-home advertising•• Internet•• Point of sale•• Merchandise•• Digital marketing•• In-game advertising•• Product demonstration•• Word-of-mouth•• Brand ambassador•• Drip marketing•• Visual merchandising

'Marketing effectiveness' is the quality of how marketers go to market with the goal of optimizing their spending toachieve good results for both the short-term and long-term. It is also related to Marketing ROI and Return onMarketing Investment (ROMI). Marketing expert Tony Lennon believes marketing effectiveness is quintessential tomarketing, going so far as to say It's not marketing if it's not measured.[1] The concept of marketing effectivenessfirst came to prominence in the 1990s with the publication of Improving Marketing Effectiveness Shaw,R [2] whichwon the 1998 Business Management Book of the Year Award. In 2006, Ad Age devoted a cover story to the book"What Sticks."[3] (ISBN 1419584332), Authors Rex Briggs and Greg Stuart calculated that marketers waste 37% oftheir marketing investment. Reasons for the waste include failure to understand underlying customer motivations forbuying, ineffective messages and inefficient media mix investment (pg 19-20). What Sticks was named the #1 Bookin Marketing by Ad Age[4] and is required reading at leading Universities including Wharton School of theUniversity of Pennsylvania[5] and Harvard.,[6] suggesting that the Marketing Effectiveness continues to be animportant business topic.

Dimensions of marketing effectiveness• Corporate – Each company operates within different bounds. These are determined by their size, their budget

and their ability to make organizational change. Within these bounds marketers operate along the five factorsdescribed below.

• Competitive – Each company in a category operates within a similar framework as described below. In an idealworld, marketers would have perfect information on how they act as well as how their competitors act. In reality,in many categories have reasonably good information through sources, such as, IRI or Nielsen. In manyindustries, competitive marketing information is hard to come by.

• Customers/Consumers – Understanding and taking advantage of how customers make purchasing decisions canhelp marketers improve their marketing effectiveness. Groups of consumers act in similar ways leading to theneed to segment them. Based on these segments, they make choices based on how they value the attributes of aproduct and the brand, in return for price paid for the product. Consumers build brand value through information.Information is received through many sources, such as, advertising, word-of-mouth and in the (distribution)channel often characterized with the purchase funnel, a McKinsey & Company concept. Lastly, consumersconsume and make purchase decisions in certain ways.

• Exogenous Factors – There are many factors outside of our immediate control that can impact the effectivenessof our marketing activities. These can include the weather, interest rates, government regulations and manyothers. Understanding the impact these factors can have on our consumers can help us to design programs that cantake advantage of these factors or mitigate the risk of these factors if they take place in the middle of ourmarketing campaigns.

Marketing effectiveness 16

Factors driving marketing effectiveness1. Marketing Strategy – Improving marketing effectiveness can be achieved by employing a superior marketing

strategy. By positioning the product or brand correctly, the product/brand will be more successful in the marketthan competitors’ products/brands. Even with the best strategy, marketers must execute their programs properly toachieve extraordinary results.

2. Marketing Creative – Even without a change in strategy, better creative can improve results. Without a changein strategy, AFLAC was able to achieve stunning results with its introduction of the Duck (AFLAC) campaign.With the introduction of this new creative concept, the company growth rate soared from 12% prior to thecampaign to 28% following it. (See references below, Bang)

3. Marketing Execution – By improving how marketers go to market, they can achieve significantly greater resultswithout changing their strategy or their creative execution. At the marketing mix level, marketers can improvetheir execution by making small changes in any or all of the 4-Ps (Product, Price, Place and Promotion)(Marketing) without making changes to the strategic position or the creative execution marketers can improvetheir effectiveness and deliver increased revenue. At the program level marketers can improve their effectivenessby managing and executing each of their marketing campaigns better. It's commonly known that consistency of aMarketing Creative strategy across various media (e.g. TV, Radio, Print and Online), not just within eachindividual media message, can amplify and enhance impact of the overall marketing campaign effort. Additionalexamples would be improving direct mail through a better call-to-action or editing web site content to improve itsorganic search results, marketers can improve their marketing effectiveness for each type of program. A growingarea of interest within (Marketing Strategy) and Execution are the more recent interaction dynamics of traditionalmarketing (e.g. TV or Events) with online consumer activity (e.g. Social Media). (See references below, BrandEcosystems) Not only direct product experience, but also any stimulus provided by traditional marketing, canbecome a catalyst for a consumer brand "groundswell" online as outlined in the book Groundswell.

4. Marketing Infrastructure (also known as Marketing Management) – Improving the business of marketing canlead to significant gains for the company. Management of agencies, budgeting, motivation and coordination ofmarketing activities can lead to improved competitiveness and improved results. The overall accountability forbrand leadership and business results is often reflected in an organization under a title within a (Brandmanagement) department.

5. Exogenous Factors - Generally out of the control of marketers, external or exogenous factors also influence howmarketers can improve their results. Taking advantage of seasonality, interests or the regulatory environment canhelp marketers improve their marketing effectiveness.

Notes[2] Shaw, R. Improving Marketing Effectiveness — the methods and tools that work best, Economist Books, 1998 ISBN 1-86197-054-4[3] Jack Neff New Book Reports 37% of All Advertising Is Wasted (http:/ / adage. com/ article/ news/ book-reports-37-advertising-wasted/

110937/ ), Ad Age, Aug 2006[4][4] Ad Age, Book of Tens, Dec 18, 2006[5] Course Syllabus (http:/ / marketing. wharton. upenn. edu/ programs/ syllabus-pdf/ Spring2008/ mba/ mktg755. pdf)[6] Course Syllabus (http:/ / isites. harvard. edu/ fs/ docs/ icb. topic236904. files/ ISMTE1123_Spring2008_Syllabus. pdf)

References• Powell, Guy R., Return on Marketing Investment: Demand More From Your Marketing And Sales Investments

(2003) RPI Press. ISBN 0-9718598-1-7• Lenskold, James, Marketing ROI: The Path to Campaign, Customer, and Corporate Profitability (2003)

McGraw-Hill. ISBN 0-07-141363-4• Farris, Paul W., Bendle, Neil T., Pfeifer, Phillip E. and Reibstein, David J., Marketing Metrics: 50+ Metrics

Every Executive Should Master (2006) Wharton School Publishing. ISBN 0-13-187370-9

Marketing effectiveness 17

• Schultz, Don E., Measuring Brand Communication ROI (1997) Assn of Natl Advertisers. ISBN 1-56318-053-7• Ambler, Tim., Marketing and the Bottom Line (2004) FT Press. ISBN 0-273-66194-9• Aspatore Books Staff, Improving Marketing ROI: Leading CMOs on Adding Value, Calculating Return on

Investments, and Creating a Financial Impact (2006) Aspatore Books. ISBN 1-59622-434-7• American Productivity & Quality Center, Maximizing Marketing ROI (2001) American Productivity Center.

ISBN 1-928593-57-7• Lilien, Gary L., Rangaswamy, Arvind, Marketing Engineering (2004) Trafford Publishing. ISBN 1-4120-2252-5• Briggs, Rex, Stuart, Greg, What Sticks: Why Most Advertising Fails and How to Guarantee Yours Succeeds

(2006) Kaplan Business. ISBN 1-4195-8433-2• Thaler, Linda Kaplan, Koval, Robin, Marshall, Delia, Bang! Getting Your Message Heard in A Noisy World

(2003) Doubleday Publishing. ISBN 0-385-50816-6• Mann, Don, Brand Ecosystems, the relative harmony among all marketing elements that support brands (2008)• Li, Charlene & Bernoff, Josh Groundswell (2008)•• Kotler, Philip.; Kevin Lane Keller (2006). Marketing Management, 12th ed.. Pearson Prentice Hall. ISBN

0-13-145757-8.

Further reading• Laermer, Richard; Simmons, Mark, Punk Marketing, New York : Harper Collins, 2007. ISBN 978-0-06-115110-1

(Review of the book by Marilyn Scrizzi, in Journal of Consumer Marketing 24(7), 2007)

Article Sources and Contributors 18

Article Sources and ContributorsFast-moving consumer goods  Source: http://en.wikipedia.org/w/index.php?oldid=552151043  Contributors: ADude, AbigailAbernathy, Afa86, Alan Liefting, Alvin-cs, Anilkarat, Argyll Lassie,BlackKnight, Bluerasberry, Bsw123, Busy Stubber, CBM, Carlosayam, ClanCC, Cperkes, Crazysane, Cretog8, Crocodile Punter, Deli nk, Dqd, DrKiernan, Dreadgod, Dynamicfirst, Earth,Eastlaw, EdiTor, Elm-39, Emdee, Empty Buffer, Florian Blaschke, Fratrep, Gavin.collins, Gjs238, Gutza, Haeinous, Hydrargyrum, Isnow, JamesBWatson, Jotdeh, Joyous!, Julesd, Karlhauth,Karmela, Kkm010, Kotniski, Kuru, LOL, Lightlowemon, Martin451, Materialscientist, Max rspct, Meters, Misterx2000, Mondo one, NeonMerlin, Nitinmaurya89, Nopetro, Office.ecr, Oneiros,OwenBlacker, Oxymoron83, Pamri, Pdinodia, Phangan, PhiLiP, Postdlf, Radagast83, Richardcavell, Rjwilmsi, Robert Catesby, Rodrigopaz, Sadads, Sameer.siddhanti, Senthapkt,SpeedyGonsales, Ssr, Steinsky, Synecticsgroup, Techwik, TheParanoidOne, Timmyjamesuk, Tony1, Turgan, Twim, Usagduyu, Utcursch, Vipinhari, We hope, WikiPuppies, Woohookitty,Xyzzyplugh, 214 anonymous edits

Trade promotion management  Source: http://en.wikipedia.org/w/index.php?oldid=551673335  Contributors: Bearcat, Darkwind, DragonflySixtyseven, Klberbert, Kuru, Malcolma, Raellerby,Rjrnicholass, Roaminggnome1234, Ronreed, SmudgeCinder, Synecticsgroup, TKC11, Tpm expert, 11 anonymous edits

Category management  Source: http://en.wikipedia.org/w/index.php?oldid=552548039  Contributors: Aaron Simmons, AccipeHoc, Alansohn, Alynna Kasmira, Arknascar44, Azurfrog,Belovedfreak, Ben White, Bender235, Bill Belt, BobKilcoyne, CMKG, Can't sleep, clown will eat me, Categoryanalyst, Centrx, ChrisCork, Christopher Connor, Cogiati, Conti, Cpgcatnet,DrSCM, EagleFan, Editorlc, Edward, Erpert, EurekaLott, Fmjohnson, Futureobservatory, Galoubet, Gogecko1, Guy M, Guðsþegn, Hwilly, Jnassour, Joeretail01, John of Reading, JonathanOB,Kateshortforbob, Kuru, Marcstrauch, Martinlc, Michael Devore, Nbumbic, Office.ecr, PKT, Pbirkbeck, Pearle, Peterleech11, Planesnboats, Positivepurchaser, RainbowCrane, Regregex,Rjwilmsi, Robertvan1, SQL, SchreiberBike, Sean Whitton, Sorsoup, SortaQuiet, Stevearens, SueHay, SueNicholls, Tanjulchik, TheJJJunk, Victorhache, WikHead, Woohookitty, X96lee15,Xs935, 61 anonymous edits

Marketing management  Source: http://en.wikipedia.org/w/index.php?oldid=550534685  Contributors: 2A01:388:201:5381:E986:ECD0:F6AE:3863, Abkumsingh, AdnanSa, AdultSwim,Alansohn, Alexf, ArchonMagnus, ArielGold, Arpabr, Atpco, BRUTE, Begewe, Berkmr, Bizguy84, Bknilu, Boing! said Zebedee, Bonadea, Brandon5485, CIreland, Cander0000, Capricorn42,Cheolsoo, Chevymontecarlo, Chistiana George, Ciphers, Ckatz, Cntras, CommodiCast, Coster34, DanielBowling, Danim, Darth Panda, Denisarona, Disdero, Drowzy, Durin, E2eamon, Edward,Ehheh, Electriccatfish2, Emesee, Empty Buffer, Epbr123, ErikNY, EsheleD, Fairsing, Falcon8765, Faradayplank, Fayenatic london, Firsfron, Fjmustak, Florent1024, Funandtrvl, Gandalfgrey,Gary D, Geniac, Grochim, GuyRo, Hallows AG, HeatherMKCampbell, Heroeswithmetaphors, IceKarma, Igoldste, Inflammation, Isanisa, ItsZippy, J.delanoy, Jahoor, Jclemens, JoelWhy, Jojit fb,King of Hearts, Kingpin13, KnightRider, Kuru, Lawsonstu, Liface, Maj IIM, Marek69, Materialscientist, Maurreen, McGeddon, MikeLynch, Mild Bill Hiccup, MrOllie, Mxn, Mydogategodshat,Navneetsrivastava, Nramesh31, Nunquam Dormio, Offthewoll, Ohnoitsjamie, Opsbalajin, Pearle, Pgreenfinch, Philip Trueman, PigFlu Oink, Plasticup, Prestinesumagang, Prodman121, Puffin,Quantpole, Rbenyon, Reetawowfactor, Rettetast, Rjwilmsi, Roleplayer, Ronz, Sanda, Sayantanam1900, SchreiberBike, Sitush, Smalljim, Srknet, Synecticsgroup, Syrthiss, T-borg, Tetraedycal,The Evil IP address, The Thing That Should Not Be, Tmonzenet, Tolly4bolly, Tommy2010, Tony1, Topbanana, TwoMartiniTuesday, Van helsing, VinnyMendoza, Viridae, Whpq, WikHead,Wikidemon, Zithan, Zundark, 227 anonymous edits

Marketing effectiveness  Source: http://en.wikipedia.org/w/index.php?oldid=550267789  Contributors: AndrewHowse, Andycjp, Anna512, Brand Mojo, ChrisUK, Contributor29wiki,Director126, Disdero, Emitchell62000, Evh23devon, Flowanda, Gioto, Gmilhem, GuyRo, Idea Farm, Javierito92, Kuru, Mabdul, Magioladitis, MrOllie, Natalie Erin, Plinkit, RHaworth, Ronz,Shadowjams, Steve simple, Tedder, Uktopmba, Wikiklrsc, Woz2, Zithan, 30 anonymous edits

Image Sources, Licenses and Contributors 19

Image Sources, Licenses and ContributorsFile:Soft drink shelf.JPG  Source: http://en.wikipedia.org/w/index.php?title=File:Soft_drink_shelf.JPG  License: Public Domain  Contributors: Original uploader was SMC at en.wikipediaImage:Bathroom category.jpg  Source: http://en.wikipedia.org/w/index.php?title=File:Bathroom_category.jpg  License: GNU Free Documentation License  Contributors: Skier Dude, Xs935Image:8-step-process.gif  Source: http://en.wikipedia.org/w/index.php?title=File:8-step-process.gif  License: Public Domain  Contributors: xs935Image:Marketing Metrics Continuum.svg  Source: http://en.wikipedia.org/w/index.php?title=File:Marketing_Metrics_Continuum.svg  License: Creative Commons Attribution 3.0 Contributors: Zithan (talk). Original uploader was Zithan at en.wikipediafile:Wikibooks-logo-en-noslogan.svg  Source: http://en.wikipedia.org/w/index.php?title=File:Wikibooks-logo-en-noslogan.svg  License: logo  Contributors: User:Bastique, User:Ramac et al.

License 20

LicenseCreative Commons Attribution-Share Alike 3.0 Unported//creativecommons.org/licenses/by-sa/3.0/