Marketing: Building Blueprints for Business Marketing: Building Blueprints for Business

n Many different types of marketers l Packaged goods n Many different types of marketers l Packaged goods && Marketers Advertisers n Many different types of marketers

l Packaged goods n Many different types of marketers l Packaged goods && Marketers Advertisers l Durable Goods

n Many different types of marketers l Packaged goods n Many different types of marketers l Packaged goods && Marketers Advertisers l Services l Durable Goods

n Many different types of marketers l Packaged goods n Many different types of marketers l Packaged goods && Marketers Advertisers l Retailers l Services l Durable Goods

n Many different types of marketers l Packaged goods n Many different types of marketers l Packaged goods && Marketers Advertisers l High Tech l Retailers l Services l Durable Goods

n Many different types of marketers l Packaged goods n Many different types of marketers l Packaged goods && Marketers Advertisers n But they all have similar methodologies and organizations. l And more l High Tech l Retailers l Services l Durable Goods

&& Marketers Advertisers Today we’ll cover… nThe Marketing Function - 4 Ps n The Marketing Department l Organizational Structure l Types of Jobs n The Marketing Process n Challenges for the Future Today we’ll cover… nThe Marketing Function - 4 Ps n The Marketing Department l Organizational Structure l Types of Jobs n The Marketing Process n Challenges for the Future

“Marketing is Everything” n Marketing has become the dominant and often most critical business function n Manufacturing techniques and resources are now less critical, often easy to obtain n Brand equity and intellectual capital are now more critical, harder to duplicate n Business is evolving from manufacture of goods to manufacture of “thinking” n Marketing has become the dominant and often most critical business function n Manufacturing techniques and resources are now less critical, often easy to obtain n Brand equity and intellectual capital are now more critical, harder to duplicate n Business is evolving from manufacture of goods to manufacture of “thinking”

“The Four Ps” Critical Marketing Decisions n Product n Price n Place (physical distribution) n Promotion l All types of promotional activities l Advertising, Sales Promotion, PR, etc. Critical Marketing Decisions n Product n Price n Place (physical distribution) n Promotion l All types of promotional activities l Advertising, Sales Promotion, PR, etc.

1. Product n Product may be “tangible” l Packaged goods l Durable goods n Product may be a service n Product may be a combination n Products are “bundles of benefits” n Product may be “tangible” l Packaged goods l Durable goods n Product may be a service n Product may be a combination n Products are “bundles of benefits”

2. Price n Key part of “value equation” n At the price, product must have some measure of “functional superiority.” n Price must also contain margin l For funding of necessary activities... l and profit n Price can send additional signals n Can be a strategy in itself, or, more likely, part of a strategy n Key part of “value equation” n At the price, product must have some measure of “functional superiority.” n Price must also contain margin l For funding of necessary activities... l and profit n Price can send additional signals n Can be a strategy in itself, or, more likely, part of a strategy

3. Place n Similar products can make different “place” decisions n Example: Coffee l Folgers n Similar products can make different “place” decisions n Example: Coffee l Folgers

n Similar products can make different “place” decisions n Example: Coffee l Folgers l Gevalia n Similar products can make different “place” decisions n Example: Coffee l Folgers l Gevalia 3. Place

n Similar products can make different “place” decisions n Example: Coffee l Folgers l Gevalia l Starbucks n Similar products can make different “place” decisions n Example: Coffee l Folgers l Gevalia l Starbucks n A Critical Decision

4. Promotion n A range of marketing communications (MarCom) techniques can be used: l Advertising l Sales Promotion l Public Relations l Publicity l Internet/New Media n A range of marketing communications (MarCom) techniques can be used: l Advertising l Sales Promotion l Public Relations l Publicity l Internet/New Media l Direct Sales l Direct Marketing l Event Marketing l Trade Shows l Promotional Products l Direct Sales l Direct Marketing l Event Marketing l Trade Shows l Promotional Products

The Marketing Mix The right combinations of... n Demand l Example: Price/Supply n Marketing Variables l Four P Variables l Promotional Variables n Marketing Strategy... The right combinations of... n Demand l Example: Price/Supply n Marketing Variables l Four P Variables l Promotional Variables n Marketing Strategy...

Unique Combinations Unique Marketing Strategies n Example: Early auto industry l Ford - Product/Price n Example: Early auto industry l Ford - Product/Price l GM - Multiple Brands l GM - Product/Value

Unique Combinations Unique Marketing Strategies n Example: Early auto industry l Ford - Product/Price n Example: Early auto industry l Ford - Product/Price l GM - Multiple Brands l GM - Product/Value n Example: Bose l Promotion + Place Direct instead of stores

Marketing Departments n Vertical Organization l Traditional military “command” structure l Clear lines of responsibility l Seems to work best when there are numerous similar products n Horizontal Organization l More fluid “ad hoc” structure l Organize around needs and functions n Vertical Organization l Traditional military “command” structure l Clear lines of responsibility l Seems to work best when there are numerous similar products n Horizontal Organization l More fluid “ad hoc” structure l Organize around needs and functions 2 Types of Organization

Top Job Functions: For both types of organizations n CEO, COO, CMO l Chief Executive Officer l Chief Operating Officer l Chief Marketing Officer s Top Marketing person s “Heavy hitter” 35+ l CFO, CIO s Chief Financial Officer s Chief Information Officer For both types of organizations n CEO, COO, CMO l Chief Executive Officer l Chief Operating Officer l Chief Marketing Officer s Top Marketing person s “Heavy hitter” 35+ l CFO, CIO s Chief Financial Officer s Chief Information Officer

Vertical Organization n Example: Oscar Mayer (KGF) Consumer Products

Jobs in Vertical Organization n Category Manager l Veteran (in 30s) l Major overall responsibility l Nurture/grow brands and brand managers n Brand Manager l Up from Assistant (mid-20s) l Responsible for one brand only l “It’s your baby” l Succeed or die n Category Manager l Veteran (in 30s) l Major overall responsibility l Nurture/grow brands and brand managers n Brand Manager l Up from Assistant (mid-20s) l Responsible for one brand only l “It’s your baby” l Succeed or die

Horizontal Organization n Example: McDonnell-Douglas (2 groups)

Jobs in Horizontal Organization n VP of Program l Must know the business l Maturity/power/clout nMarketing Manager l Marketing experience, not necessarily advertising l Responsible for all advertising, PR, sales promotion, trade shows, etc. n Advertising Manager l May be “thrown into” role l May have little ad experience l Competition from other programs n VP of Program l Must know the business l Maturity/power/clout nMarketing Manager l Marketing experience, not necessarily advertising l Responsible for all advertising, PR, sales promotion, trade shows, etc. n Advertising Manager l May be “thrown into” role l May have little ad experience l Competition from other programs

Marketing Job Functions n Director of Marketing l Often, trained w. “feeder system” s P&G, KGF, etc. s Has become COO career path l Must manage increasing variety of MarCom programs and suppliers n Advertising Director l Importance depends on size of budget l May also have significant responsibilities monitoring media spending n Director of Marketing l Often, trained w. “feeder system” s P&G, KGF, etc. s Has become COO career path l Must manage increasing variety of MarCom programs and suppliers n Advertising Director l Importance depends on size of budget l May also have significant responsibilities monitoring media spending

Marketing Job Functions n Category Manager l Group Product Manager n Category Manager l Group Product Manager Bridgette Hellerfrom Brand Manager Gevalia to Category Manager for Coffee at KGF Bridgette Heller - from Brand Manager Gevalia to Category Manager for Coffee at KGF n Brand Manager n Brand Assistant n Other Staff Functions: l Sales Promotion l Media l Market Research n Field Marketing… n Brand Manager n Brand Assistant n Other Staff Functions: l Sales Promotion l Media l Market Research n Field Marketing…

Field Marketing n Excellent entry level job opportunity n There are many marketers that operate Field Marketing Organizations l Beverage Industry (Beer, Soft Drink) l Fast Food Industry l Franchise Organizations l In many cases, ad agencies that service these marketers also provide Field Marketing n “Think Global. Act Local.” n Excellent entry level job opportunity n There are many marketers that operate Field Marketing Organizations l Beverage Industry (Beer, Soft Drink) l Fast Food Industry l Franchise Organizations l In many cases, ad agencies that service these marketers also provide Field Marketing n “Think Global. Act Local.”

Who Oversees Marketing Programs? nIt varies. Examples from AdAge’s Marketing 50 nIt varies. Examples from AdAge’s Marketing 50

Crocs Tia Mattson Public Relations Manager Age 32

Bravia Chris Fawcett Director of Marketing for Home Products

Yaris Kim McCullough Toyota Motor Sales USA Corporate Manager - Marketing Communications

Dunkin' Donuts Will Kussell Chief Operating Officer Age 47

GTI Kerri Martin Director - Brand Innovation Age 36

Fanta Stuart Kronauge Director, Fanta & Flavored Carbonated Soft Drinks Age 36

Patrón Ed Brown Chief Executive Officer

El Reto Final Nissan Jan Thompson VP – Marketing

The Marketing Process n Planning n Implementation n Evaluation n Planning n Implementation n Evaluation

PlanningPlanning 1. Setting overall marketing strategy 2. Developing annual marketing plan 3. Calculating annual marketing budget 1. Setting overall marketing strategy 2. Developing annual marketing plan 3. Calculating annual marketing budget

ImplementationImplementation 4. Assigning marketing tasks l After budgets approved, operations move from the theoretical to the practical l NOTE: Actual costs may vary from budget - plans may need to be changed “on the fly” 5. Supervising internal functions l NOTE: PR may be internal, external or both 6. Overseeing external services l Advertising, sales promotion, etc. l NOTE: Variety of MarCom program options is growing 4. Assigning marketing tasks l After budgets approved, operations move from the theoretical to the practical l NOTE: Actual costs may vary from budget - plans may need to be changed “on the fly” 5. Supervising internal functions l NOTE: PR may be internal, external or both 6. Overseeing external services l Advertising, sales promotion, etc. l NOTE: Variety of MarCom program options is growing

Evaluation:Evaluation: 7. Measuring and tracking efforts l Sales Results l Media Expenditures l Awareness and Usage l Ongoing Market Research programs (tracking studies) 8. Reporting performance to management l NOTE: May be daily, weekly, or quarterly. Trend is for more frequent reporting 9. Integrating results into planning l The cycle continues - working for improvement wherever possible 7. Measuring and tracking efforts l Sales Results l Media Expenditures l Awareness and Usage l Ongoing Market Research programs (tracking studies) 8. Reporting performance to management l NOTE: May be daily, weekly, or quarterly. Trend is for more frequent reporting 9. Integrating results into planning l The cycle continues - working for improvement wherever possible

Marketing Challenges: n Increasing importance of marketing l As mentioned, “Marketing is Everything” the function is more important for everyone n Hyper-Competition l Too much capacity for size of market l Happening on a global scale l Examples: Automobiles, computers n Fragmentation l Consumers, Media, etc. l Harder to do “mass” marketing n Increasing importance of marketing l As mentioned, “Marketing is Everything” the function is more important for everyone n Hyper-Competition l Too much capacity for size of market l Happening on a global scale l Examples: Automobiles, computers n Fragmentation l Consumers, Media, etc. l Harder to do “mass” marketing