What is marketing’s role in the business organization?

Corporate Level zCorporate Mission Statement yprovides a general direction for the firm as a guideline for strategies - values & beliefs ybroad in nature zCorporate Goals ygeneral statements of desired accomplishments zCorporate Objectives yHow you will achieve these goals ySpecific and quantitative

Marketing Goals and Objectives zMust fit within the company’s overall goals zObjectives should be expressed in terms of measurable units ysales volume, percent increase in market share, sales per square foot, etc. zKodak Example: “Kodak must be come a more customer oriented company by developing products that will better meet customers’ imaging needs.”

Marketing Plan vs. Marketing Strategy zMarketing Strategy: target market and marketing mix yMust meet the needs of the customer yMust fit within the company’s available resources and environment yBe consistent with the mission and goals of the company

Marketing Plan zBlueprint of how you will achieve the objectives and carry out the marketing strategy zIt includes the implementation plan and the evaluation and control of the objectives z2 types: strategic marketing plan and product marketing plan

Purpose of the Marketing Plan zExplains the present & future situation (environmental analysis) zThe outcomes that are expected (goals &objectives) zDescribes the specific actions that are to take place (implementation) zIdentifies the resources to be used zPermits the monitoring of each action (feedback)

Marketing’s Role zMarketing’s role is changing yProduct focus - selling product yCustomer focus - meeting needs zProduct Marketing Manager becomes a Customer Needs Representative

Customer Value zCustomer value: the benefits received from the product less the cost and risks associated with acquiring the product or service yBenefitsCosts xquality time xservice effort xneed fulfillment opportunity cost x risk

Marketing Plan Audience zWho is interested/Who is the audience yCEO wants costs & sales yCustomer service manager wants projection of orders yCFO/Controller budgeting requirements yInventory wants to know shipping levels

Structure of Marketing Plan zExecutive Summary yhighlights only,sales projections, key performance measures zEnvironmental Analysis yeconomic ycompetitive ysocial ypolitical ytechnological

Environmental Analysis zDefine the market - group of buyers for the product or service that you provide zSeven Desirable Market Characteristics yPotential market growth yFew barriers to entry (new products only) yOpportunity for competitive advantage yStability in customer demand yNo large capital investment requirements yProspects for increased market share yHigh return on investment

Environmental Analysis zEstimate Market potential yD=n x q x p yD= total market demand yn= number of buyers yq= average quantity purchased per year yp=price

SWOT ANALYSIS zStrengths/ Weaknesses ylooks at the companies internal situation yHow are you satisfying the needs of the target market z Opportunities/Threats ylooks at the external situation of the company yWhat are the market needs yHow is competition satisfying those needs

SWOT Example

Implementation of Plan zWho, What, Where, When and How