Copyright © 2012 Pearson Canada Inc Administrative Items Reminder: Co-Op Application Deadline Tuesday, Jan 13 th Reminder: In-class Quiz Wednesday Policy on Group Work Grades –Students need to be able to demonstrate their ability to pass the individual components of the course to receive credit for this course. Therefore, a grade of 50% is required on individual work in order to qualify for the team-based points in this course. Midterm Date Change –Wednesday, Feb 11 (in class)

Copyright © 2012 Pearson Canada Inc What’s Happening in Marketing? Half of Canadians used smartphones last year (Report) (Marketing Magazine, Jan 8, 2015)Half of Canadians used smartphones last year (Report) Facebook search (Techcrunch.com, Dec 8, 2014)Facebook search Superbowl ad buys 2015

Copyright © 2012 Pearson Canada Inc Marketing Management Marketing Management: –The art and science of choosing target markets and building profitable relationships with them –Aim is to find, attract, keep, and grow customers by creating, delivering, and communicating superior value

Copyright © 2012 Pearson Canada Inc Production Concept 2.Product Concept 3.Selling Concept 4.Marketing Concept 5.Societal Marketing Concept Marketing Management Orientations (Q3)

Copyright © 2012 Pearson Canada Inc Customer Relationship Management (CRM) –The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders. Different levels of relationship marketing “One-to-many” versus “one-to-one” Customer Lifetime Value (Q2) Changing nature of relationships Target fewer more profitable customers Market via attraction rather than intrusion Interactive communication Consumer generated content Relationship Marketing

Copyright © 2012 Pearson Canada Inc Societal Marketing Triangle Examples?

Copyright © 2012 Pearson Canada Inc Changing Marketing Landscape The uncertain economic environment The digital age Rapid globalization Sustainable marketing – call for more social responsibility Growth of not-for-profit marketing

Copyright © 2012 Pearson Canada Inc Take Aways Successful Marketing Requires: –A Customer Focus Successful marketing involves paying attention to customer needs, wants, demands and providing and receiving value over repeated transactions Successful marketing involves a variety of activities including: Research (customer, product) Product development Pricing Promotion (Integrated Marketing Communication) Storing and Delivering Products Societal Responsibility

Copyright © 2012 Pearson Canada Inc Company and Marketing Strategy Partnering to Build Customer Relationships Chapter 2

Copyright © 2012 Pearson Canada Inc Marketing Management A continuous process Analysis Planning Develop strategic plans Develop marketing plans Implementation Carry out the plans Control Measure results Evaluate results Take corrective action The process of planning, executing, and controlling marketing activities to attain marketing goals and objectives effectively and efficiently.

Copyright © 2012 Pearson Canada Inc What is a marketing strategy? A plan identifying what marketing goals and objectives will be pursued and how they will be achieved in the time available.

Copyright © 2012 Pearson Canada Inc Steps in Strategic Planning Many companies operate without formal plans Strategic planning is a good idea because doing so: Forces systematic thinking about future direction Allows anticipation and quick response to changing market conditions Forces management to clarify objectives and policies Creates better co-ordination

Copyright © 2012 Pearson Canada Inc Planning Marketing Marketing plays a key role in strategic planning: –Provides a guiding philosophy The marketing concept –Provides input to strategic planners Identifies opportunities –Designs strategies to reach objectives

Copyright © 2012 Pearson Canada Inc Mission Statement Defined A mission statement is a statement of the organization’s purpose – what it wants to accomplish in the larger environment Good mission statements define: what the company does, whom it serves, the value it provides and how it accomplishes what it intends to do Nike’s mission is “to bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)”

Copyright © 2012 Pearson Canada Inc Designing the Business Portfolio Business Portfolio: –The collection of businesses and products that make up the company The company must: –Analyze its current portfolio and decide which strategic business units (SBUs) should receive more, less, or no investment –Shape the future portfolio by developing strategies for growth and downsizing

Copyright © 2012 Pearson Canada Inc Strategic business units (SBU) –Operate as a “company within a company” –A SBU is organized around some common element such as…. SBU Industry Technology Target Market Customer need

Copyright © 2012 Pearson Canada Inc Portfolio Analysis with the BCG Growth-Share Matrix BCG Growth Share Matrix uses market growth rate and relative market share to classify SBUs into four groups Problems with this approach?

Copyright © 2012 Pearson Canada Inc Product/Market Expansion Grid The product/market expansion grid can identify growth opportunities:

Copyright © 2012 Pearson Canada Inc The six stages of the Strategic marketing Process Planning stages 1.Identifying and evaluating opportunities 2.Analyzing market segments and selecting target markets 3.Planning a market position and developing a marketing mix strategy 4.Preparing a formal marketing plan 6. Controlling efforts and evaluating the results 5. Executing the plan

Copyright © 2012 Pearson Canada Inc Market Segmentation Market segmentation –Dividing a market into distinct groups with distinct needs, characteristics, or behaviour who might require separate products or marketing mixes Market segment –A group of consumers who respond in a similar way to a given set of marketing efforts –Can be segmented along different dimensions: Demographic variables Geographic location Behavioural variables Psychographic variables

Copyright © 2012 Pearson Canada Inc Market Targeting & Positioning Market targeting –The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter –The largest segment may not be the most profitable Market positioning –Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers –Positioning happens –Positioning is influenced by promotion

Copyright © 2012 Pearson Canada Inc The Marketing Mix The 4 Ps of the marketing mix: 4 Cs: Buyer’s View –Customer Solution –Customer Cost –Convenience –Communication 4 Cs: Buyer’s View –Customer Solution –Customer Cost –Convenience –Communication

Copyright © 2012 Pearson Canada Inc Marketing Control Process Marketing control involves four steps: –Set specific marketing goals –Measure performance in the marketplace –Evaluate performance –Take corrective action to close the gaps between goals and performance

Copyright © 2012 Pearson Canada Inc Return on Marketing Investment Return on marketing investment is assessed using one or more methods: –Standard marketing performance measures (marketing dashboards): Brand awareness, sales, market share –Customer-centered measures: Customer acquisition, customer retention, customer lifetime value, customer equity

Copyright © 2012 Pearson Canada Inc Marketing by the Numbers

Copyright © 2012 Pearson Canada Inc Marketing Ethics