MARKETING STRATEGY O.C. FERRELL MICHAEL D. HARTLINE 1 Marketing in the New Economy

1-2 Challenges and Opportunities In the New Economy Power Shift to Customers Massive Increase in Product Selection Changing Value Propositions Shifting Demand Patterns New Sources of Competitive Advantage Privacy, Security, and Ethical Concerns

1-3 Market: –A collection of buyers and sellers Marketspace: –Electronic marketplaces that are not bound by time or space Metamarket: –A cluster of closely related goods and services that center around a specific consumption activity [see Exhibit 1.2, p. 7] Metamediary: –Provides a single access point where buyers can locate and contact many different sellers in the metamarket Basic Marketing Concepts

1-4 Exchange: –Process of obtaining something of value by offering something in return Five Conditions for Exchange: –(1) There must be at least two parties to the exchange. –(2) Each party has something of value to the other party. –(3) Each party must be capable of communication and delivery. –(4) Each party must be free to accept or reject the exchange. –(5) Each party believes it is desirable to exchange with the other party. What is Exchange?

1-5 What is a Product? Product: –Something that can be acquired via exchange to satisfy a need or a want. Examples: -Goods-People -Services-Places -Ideas-Experiences and Events -Information-Real or Financial Property -Digital Products-Organizations

1-6 Utility: –Ability of a product to satisfy a customer’s desires. Four Types of Utility: –(1) Form Utility –(2) Time Utility –(3) Place Utility –(4) Possession Utility The Concept of Utility

1-7 Strategic Planning –Strategy –Tactical Planning Research and Analysis –Internal Analysis –Competitive Intelligence –Environmental Scanning –Situation Analysis Major Marketing Activities and Decisions (1 of 4)

1-8 Developing Goals and Objectives –SWOT Analysis Developing and Maintaining Customer Relationships –Transactional Marketing –Relationship Marketing [see Exhibit 1.3, p. 13] Marketing Strategy Decisions –Competitive Advantage Major Marketing Activities and Decisions (2 of 4)

1-9 Market Segmentation and Target Marketing –Market Segmentation –Target Markets Product Decisions –Product Positioning Pricing Decisions –Leads to revenue and profit –Directly connected to customer demand –Easy to change –Major quality cue for customers Major Marketing Activities and Decisions (3 of 4)

1-10 Distribution and Supply Chain Decisions –Distribution and Supply Chain Management –Supply Chain Promotion Decisions –Integrated Marketing Communications (IMC) Implementation and Control –Marketing Implementation Social Responsibility and Ethics –Social Responsibility –Marketing Ethics Major Marketing Activities and Decisions (4 of 4)

1-11 Unending Change –Customers change, competitors change, and marketing organizations change Evolution of Marketing and Business Practices in Society Increasing Demands of Customers Overall Decline in Brand Loyalty of Customers Increasing Price Sensitivity Among Customers Increasing Customer Cynicism about Business and Marketing Activities Taking On the Challenges of Marketing Strategy (1 of 2)

1-12 Competing in Mature Markets Little Real Differentiation Among Product Offerings Increasing Expansion into Foreign Markets Increasing Numbers and Strength of Foreign Competitors Aggressive Cost-Cutting Measures in Order to Increase Competitiveness Increasing Cooperation with Supply-Chain Partners and Competitors Taking On the Challenges of Marketing Strategy (2 of 2)