Page 50 - Marketing Management

DEFINING MARKETING FOR THE 21ST CENTURY | CHAPTER 1 27

allocations. They may use sales-response functions that show how the amount of money spent in
each application will affect sales and profits (see Chapter 4).

Connecting with Customers

Atlas must consider how to best create value for its chosen target markets and develop strong, prof-
itable, long-term relationships with customers (see Chapter 5). To do so, it needs to understand con-
sumer markets (see Chapter 6). Who buys cameras, and why? What features and prices are they
looking for, and where do they shop? Atlas also sells cameras to business markets, including large
corporations, professional firms, retailers, and government agencies (see Chapter 7), where purchas-
ing agents or buying committees make the decisions. Atlas needs to gain a full understanding of how
organizational buyers buy. It needs a sales force well trained in presenting product benefits.
Atlas will not want to market to all possible customers. It must divide the market into major
market segments, evaluate each one, and target those it can best serve (see Chapter 8).

Building Strong Brands

Atlas must understand the strengths and weaknesses of the Zeus brand as customers see it (see
Chapter 9). Is its 35mm film heritage a handicap in the digital camera market? Suppose Atlas de-
cides to focus on the consumer market and develop a positioning strategy (see Chapter 10). Should
it position itself as the “Cadillac” brand, offering superior cameras at a premium price with excel-
lent service and strong advertising? Should it build a simple, low-priced camera aimed at more
price-conscious consumers? Or something in between?
Atlas must also pay close attention to competitors (see Chapter 11), anticipating their moves
and knowing how to react quickly and decisively. It may want to initiate some surprise moves, in
which case it needs to anticipate how its competitors will respond.

Shaping the Market Offerings

At the heart of the marketing program is the product—the firm’s tangible offering to the market,
which includes the product quality, design, features, and packaging (see Chapter 12). To gain a
competitive advantage, Atlas may provide leasing, delivery, repair, and training as part of its prod-
uct offering (see Chapter 13).
A critical marketing decision relates to price (see Chapter 14). Atlas must decide on wholesale
and retail prices, discounts, allowances, and credit terms. Its price should match well with the of-
fer’s perceived value; otherwise, buyers will turn to competitors’ products.

Delivering Value

Atlas must also determine how to properly deliver to the target market the value embodied in its
products and services. Channel activities include those the company undertakes to make the prod-
uct accessible and available to target customers (see Chapter 15). Atlas must identify, recruit, and
link various marketing facilitators to supply its products and services efficiently to the target mar-
ket. It must understand the various types of retailers, wholesalers, and physical-distribution firms
and how they make their decisions (see Chapter 16).

Communicating Value
Atlas must also adequately communicate to the target market the value embodied by its products
and services. It will need an integrated marketing communication program that maximizes the indi-
vidual and collective contribution of all communication activities (see Chapter 17). Atlas needs to
set up mass communication programs consisting of advertising, sales promotion, events, and public
relations (see Chapter 18). It also needs to plan more personal communications, in the form of di-
rect and interactive marketing, as well as hire, train, and motivate salespeople (see Chapter 19).

Creating Successful Long-Term Growth

Based on its product positioning, Atlas must initiate new-product development, testing, and
launching as part of its long-term view (see Chapter 20). The strategy should take into account
changing global opportunities and challenges (see Chapter 21).