Introduction and Overview Dr. John Wong

Why Marketing?  Marketing function imperative for organizational success  Hypercompetitive marketplace  Highly discriminating customers  Changing consumer needs

Business Philosophies  Production concept  Product concept  Selling concept  Marketing concept  Holistic marketing concept

Holistic Marketing Concept  Relationship marketing  Integrated marketing  Internal marketing  Performance marketing  Financial accountability  Socially responsible  Cause marketing

Holistic Marketing

Core Marketing concepts  Needs, wants, demands, preferences  Segmentation, targeting, positioning  Offerings and brands  Value and satisfaction  Marketing channels  Supply chain  Competition  Marketing environment

Target Markets, Positioning, and Segmentation  Segmentation—identify and profile distinct groups of buyers examining demographic, psychographic, and behavioral differences  Target markets—segments presenting the greatest opportunity  Positioning—what the offering means in the minds of the target buyers as delivering some central benefit(s).

What is Marketing? Organization’s main tasks:  Determine needs, preferences, wants of key market segments  Create products to meet those needs -- deliver desired satisfaction  Marketing management -- process of achieving above THE CULTURE CODE – Clotaire Rapaille

Unique Marketing Insights  Peter Drucker: The business of a business is to create and keep a customer  Charles Revson: In the factory we make cosmetics. In the stores we sell hope  Akio Morita: The highest level of business thinking is ‘marketing imagination’

What is a market? 1. Marketplace - physical 2.Metamarket - cluster of complementary goods and services across diverse set of industries. includes metamediaries 3.Marketspace – digital

Marketing Issues  WHAT is marketed? Physical products, experiences, people, places, ideas, organizations  WHO’s responsibility? Everyone’s in the organization

C21st Marketplace Realities (1) A. Major Societal Forces  1. Network information technology  2. Globalization  3. Deregulation  4. Increased competitiveness from domestic and foreign brands  5. Creation of mega-brands and “category-killers”  6. Disintermediation and Reintermediation

C21st Marketplace Realities (2) Empowered consumer capabilities  Highly discriminating  Swayable brand loyalty  Leverage Internet - info is power

C21st Marketplace Realities (3) Firms empowered by Internet  Increased market reach  Online communities --> brand awareness  Enhanced value chain management  Interactive techno --> improves target marketing & permission marketing efforts

Marketing Management Tasks  Developing marketing strategies and plans  Capturing marketing insights  Connecting with customers  Building strong brands  Shaping market offerings  Delivering value  Communicating value  Creating long-term growth

Marketing Process Select Target Markets Design Marketing Strategies Manage the Marketing Effort Develop Marketing Programs Analyze Marketing Opportunities

Changes in Consumer Behavior

The Marketing Mix

Core Marketing Competencies Beyond the 4 P’s  Product + Service (people, process, physical evidence)  Price  Promotion  Place/distribution  Positioning - connecting  Personal relationships - customization

The 4 C’s of Marketing CARE: More than service --> they treat customers -- customers are really everything. CHOICE: reassess diversity & breadth of offerings --> a manageable good-better-best selection COMMUNITY: Even national marketers must be affiliated, attached to neighborhoods wherever they operate stores CHALLENGE: The task of dealing with the ongoing reality of demographic change.

New Approaches in Marketing  Exploit Internet & new electronic communication technologies – beyond websites  e-marketing, texting, network communities (E.g. Obama campaign)  Fighting economic downturn & e-commerce onslaught  CRM & stronger branding, cross-selling, SCM, strong data-base system