1 Tonight: Ads Ads Link to Text? Link to Text? Marketing Myopia Marketing Myopia Competitive Advantage Competitive Advantage Strategic Marketing Management Strategic Marketing Management Marketing Mix Marketing Mix Ethics (if time) Ethics (if time)

2 Marketing Myopia Key theme in one or two sentences… Key theme in one or two sentences…

3 Marketing Myopia Key theme in one or two sentences… Key theme in one or two sentences… Defining your market too narrowly prevents an organization from seeing growth opportunities an/or threats from potential substitutes Defining your market too narrowly prevents an organization from seeing growth opportunities an/or threats from potential substitutes Ensure continued growth by customer centricity rather than concentrating on selling products Ensure continued growth by customer centricity rather than concentrating on selling products

4 Marketing Myopia: Four Myths

5 Myth 1: An ever-expanding and more affluent population will ensure our growth.

6 Marketing Myopia: Four Myths Myth 1: An ever-expanding and more affluent population will ensure our growth. Myth 1: An ever-expanding and more affluent population will ensure our growth. When markets are expanding, we often assume we don ’ t have to think imaginatively about our businesses, but instead seek to outdo rivals simply by improving what we are already doing. When markets are expanding, we often assume we don ’ t have to think imaginatively about our businesses, but instead seek to outdo rivals simply by improving what we are already doing. Consequence: increased efficiency Consequence: increased efficiency making products rather than boosting the value those products deliver to customers.

Examples 7

8 Marketing Myopia: Four Myths Myth 2: there is no competitive substitute for our industry ’ s major product.

9 Marketing Myopia: Four Myths Myth 2: there is no competitive substitute for our industry ’ s major product. Believing that our products have no rivals makes our companies vulnerable to dramatic innovations –often by smaller newer companies that focus on customer needs rather than the products themselves

Examples 10

11 Marketing Myopia: Four Myths. Myth 3: We can protect ourselves through mass production.

12 Marketing Myopia: Four Myths Myth 3: We can protect ourselves through mass production. While the declining unit costs that come with increased production are alluring, focusing on mass production emphasizes our company ’ s needs when we should be emphasizing our customers ’.

Examples 13

14 Marketing Myopia: Four Myths Myth 4: Technical R&D will ensure our growth

15 Marketing Myopia: Four Myths Myth 4: Technical R&D will ensure our growth When R&D produces breakthrough products, it is critical to remain focused on customer needs…ideally, new products are both breakthrough and meet customer needs

Examples 16

17 What is Competitive Advantage?

18 Competitive Advantage A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition

19 Competitive Advantage A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition

Discuss using Marketing Myopia and Competitive Advantage 20

21 Strategic Market Planning Strategic Plan: the process of anticipating future events and determining strategies to achieve organizational objectives in the future : a document that acts as a guidebook of specified marketing activities and their rationale. Marketing Plan: a document that acts as a guidebook of specified marketing activities and their rationale. Marketing Planning: designing activities relating to marketing objectives, the changing marketing environment, and the marketing mix

22 Marketing Mix Product Product Place Place Promotion Promotion Price Price

23 Marketing Mix Product: The starting point of the marketing mix is the product offering or product strategy Product: The starting point of the marketing mix is the product offering or product strategy Place: Place, or distribution strategies, are concerned with making products available when and where customers want them Place: Place, or distribution strategies, are concerned with making products available when and where customers want them Promotion: includes advertising & PR, it is about informing, educating, persuading, and reminding target markets of the benefits of the product or service Promotion: includes advertising & PR, it is about informing, educating, persuading, and reminding target markets of the benefits of the product or service Price: What a buyer must give up in order to acquire a product. Price: What a buyer must give up in order to acquire a product.

24 Ethics & Marketing Why do we care? Why do we care? Examples of ethical issues Examples of ethical issues

25 Ethics & Marketing: Why Do We Care? For…Against… It’s the right thing to doThe role of the corporation is to maximize shareholder value Government is likely to intervene if firms aren’t socially responsible (see tobacco industry) Businesses are about producing goods and services; the market will decide what succeeds It can enhance a company’s profitability It can be expensive, especially in a global economy

26 Ethics & Marketing: Why Do We Care “Marketing is about values. This is a very complicated world, it’s a very noisy world. And we’re not going to have a chance for people to remember a lot about us. And so we have to be really clear about what we want them to know about us. Even a great brand needs investment and caring if it’s going to retain its relevance and vitality.” Steve Jobs “Marketing is about values. This is a very complicated world, it’s a very noisy world. And we’re not going to have a chance for people to remember a lot about us. And so we have to be really clear about what we want them to know about us. Even a great brand needs investment and caring if it’s going to retain its relevance and vitality.” Steve Jobs

27 Ethics Exercise: Abercrombie & Fitch Read hand out Read hand out Break into small groups Break into small groups Discuss and prepare responses to: Discuss and prepare responses to: Is marketing adult-style underwear to a younger audience unethical? Why or why not? Is marketing adult-style underwear to a younger audience unethical? Why or why not? If the sexy words had been omitted from the front of the product, would the issue be the same? If the sexy words had been omitted from the front of the product, would the issue be the same?

28 Next Week Marketing Function Marketing Function Market Research (Chapter 6: Consumer Decision Making) Market Research (Chapter 6: Consumer Decision Making)