MGT 6450 Marketing Web Main Menu Syllabus Schedule & Outline Class e-mail News Overview of marketing Small group formation & discussion of products/services via product life cycle Next week: market segmentation

Marketing News Generational Marketing Social Marketing News Advertising Age AMA Marketing News Direct Marketing News Marketing Today

"Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives." “The societal marketing concept holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors, in a way that preserves or enhances the consumer's and the society's well-being. “

How is marketing done in your organization?

Discussion Questions How is marketing currently conducted in your organization? What role does a marketing department have in helping form organizational strategy; how well connected are they with other departments and functions in the organization; how is market information gathered, analyzed and used? What are the “change drivers” that have propelled marketing to this position in organizations? Why is strategic marketing so crucial in today's marketplace? In your organization, where does marketing fit with strategic planning? How aware are employees of the marketing concept and efforts of the marketing department (or whomever does it)? Examine your organization's mission statement and define it from product/service perspective as well as marketing perspective (who are the customers & what needs are you committed to satisfying?) Using the Product Life Cycle, place your product/service line along the continuum (Portfolio methods)

Strategic Considerations

Did you Know…?

Competition ! Worker Impact lifelong learning adaptability/flexibility networking self-loyalty Change Drivers environment globalism demographics technology information economics politics complexity Organizational Response: paradigm shift new psychological contract decentralizing downsizing telecommuting virtual organization reengineering teamwork Learning Organization mergers/acquisitions strategic alliances target marketing out-sourcing temps innovation Competition ! Demands timeliness (JIT) efficiency speed quality customized rate of change

Effects of Change Drivers Less expensive, more widely available communications, transactions, information, and production technologies such as: Internet based communication and commerce Data mining Pattern recognition algorithms (neural networks) Computer integrated design Rapid prototyping Simulation testing of designs and prototypes Real time data tracking Nanotechnology Flexible manufacturing technology Enterprise wide software Competitive environment: More informed customers More evenly distributed technological capabilities among competitors More closely linked suppliers Easier entry for new competitors World wide market for supplies and workers Business processes: More knowledge about customer buying patterns Improved forecasting ability Improved production scheduling and tracking More rapid production process design Integration: Coordination of geographically dispersed operations Coordination of culturally diverse workforce Coordination of logistics and information with dispersed networks of customer and suppliers Culturally, ethnically diverse workforce that is more mobile: Political and economic conditions creating more opportunities for markets and supplies worldwide Aging workforce worldwide Language and culture differences Workforce: More use of temporary workers Competition for skilled and knowledge workers Management across international cultures Difficulty in molding organizational cultures

Traditional Strategy Model Marketing

Information from Market Research SWOT or TOWS Analysis for Strategy Information from Market Research

What’s gone wrong with strategy? 75% of executive teams do not have a clear customer propositions (idea of the mix that appeals to the target market) 85% of management teams spend less than one hour per month discussing strategy 60% of organizations don't link strategy and budgeting 92% of organizations don't report on strategic lead indicators Less than 5% of an organization's workforce understands its strategy Only 51% of senior managers, 21% of middle managers, and 7% of line employees have personal goals linked with strategy Organizations find that up to 25% of strategy measures change each year The failure rate of strategies is between 70-90%, mainly due to poor implementation

A little bit o’ marketing history

Eras of Marketing Next ? Relationship/Partnering Era (1990-): Short term financial focus, downsizing, globalization, reengineering trends. Publish or perish pressure on research. Concern, trust, and investment in collaborative relationships with long term customers and competitors (e.g., Saturn owner parties, Sam’s Club memberships, etc.). Specialized interest areas; sophisticated multivariate segmentation; wide application [Problem: still short term, fragmented research, customer manipulation] Marketing Era (1950s-1980s): Mass market boom! Use of behavioral and quantitative sciences. Customer is King! Find (create) a need and fill it; (market segmentation & targeting) satisfy needs! [problem: too short term & costly] Sales Era (1925-1950s): Marketing principles. Good advertising and sales will overcome consumer resistance” (Brand image differentiation); Marketing associations & journals [problem: broad advertising not cost-effective] Production Era (1900-1925): “a good product sells itself”; offer more products! Build it and they will come! [problem: unsold inventory]. First courses with “marketing” title. Focus on distribution. Pre-Marketing Era (1750-1900): “I got it, you want it?”

Pre-Marketing Era (1750-1900) “I got it, you want it?” Cottage industries making narrow specialties with little variation Often family businesses Generally for local trade Word of mouth promotion No distinguishing field of study Example: China 1986 basket and wood shipping containers

Production Era (1900-1925) “A good product sells itself” (unsold inventory) Offer more products! Focus on distribution First courses with “marketing” title Problem– unsold inventory

Sales Era (1925-1950s) Development of generally accepted “marketing principles” Good advertising and sales will overcome consumer resistance” Brand image differentiation Marketing associations & journals (AMA, J. of Retailing, J. of Marketing) Problem— broad advertising not cost-effective

Marketing Era (1950s-1980s) Mass market boom! Use of behavioral and quantitative sciences Customer is King! Find (create) a need and fill it Market segmentation & targeting, satisfy needs! (high sales, low prices) Problem— too short term & costly

Relationship/Partnering Era (1990-) Short term financial focus, downsizing, globalization, reengineering trends. Concern, trust, and investment in collaborative relationships with long term customers and competitors (e.g., Saturn owner parties, Sam’s Club memberships, etc.). Publish or perish pressure on academic research. Specialized interest areas; sophisticated multivariate segmentation; wide application Problem: still short term, fragmented research, customer manipulation Hummer Party Sam’s Club

Social Media Marketing (2005-) Widespread availability of technology enables lower cost channels Online interactivity provides for promotion and information gathering Growth of social networking makes for ubiquitous advertising opportunities Search specification allows for targeted advertising Viral marketing spread through the web via web, e-mail, blogs, video, and other mobile media Problem— too many channels?

People connected to share Social networks as an operating system Every experience can now be social Personalized and accurate content Communities define future products & services Where to from here? http://www.web-strategist.com/blog/2009/04/27/future-of-the-social-web/