1 MARKETING THOUGHTS ….

2 WHAT IS MARKETING?

3 MARKETING: Definition: (Adapted from Kotler 2000)

4 MARKETING AS EXCHANGE SELLER Items of Value Need Want Benefit Deman d BUYER

5 KEY TERMS: NEED: WANT: BENEFIT: DEMAND: VALUE:

6 The Marketing Concept: An organization’s basic purpose is to ___________________________ This requires integrated and coordinated efforts in the organization Organizations should focus on (long or short) term success

7 What Do We Market

8 TOOLS TO MAKE EXCHANGE MORE LIKELY THE MARKETING MIX (4 P’s) P____________

A General Marketing Model legal/political environment institutional environment customer price product place promo entrepreneurship ethics productivity customer value relationship technology global economic environment social environment technological environment competitive environment Marketing Concept: satisfy consumer needs at a profit

10 Marketing is a Process Market Planning Segmenting the Market Selecting a Target Market Positioning the Product

11 EVOLUTION OF A CONCEPT

12 Different Orientations to Bring About Exchanges Production Orientation Product Orientation Selling Orientation Marketing Orientation Relationship Marketing Orientation

13 THINGS TO THINK ABOUT How does marketing affect your life? –How does marketing satisfy your needs –What areas of your life – if any are not affected by marketing? Does marketing create needs?

14 MARKETING STRATEGY “If you don’t know where you are going you might end up somewhere else”

15 STRATEGIC ISSUES WHERE ARE WE NOW? WHERE DO WE WANT TO GO? HOW DO WE GET THERE?

16 A Strategic Planning Model

17 CORPORATE LEVEL PLANNING

18 CORPORATE LEVEL FUNCTIONS :  Define the Corporate Mission  Evaluate Environment  Set Organizational Goals and Objectives  Establish the Business Portfolio  Grow the Business

19 MISSION STATEMENT Broad Statement of Purpose: –What is your organization’s mission statement? –

20 Defining a Company’s Present Business Narrow soft drinks videos toys life insurance computers Broad

21 Environmental Analysis SWOT Analysis: Strengths Opportunities Weaknesses Threats

22 SWOT--Internal Environment Strengths and Weaknesses

23 EXTERNAL ENVIRONMENTS Opportunities and Threats:

24 Evaluate Your Company’s Business Environments

25 COMPETITIVE ENVIRONMENT  Who are our current and potential competitors?  Who/What are competitors’ targets, strategies, strengths, weaknesses?  What are potential competitive reactions?

26 Who is the Competition:

27 A Customer Perspective  Intensity of Competition  Importance of Substitute Products  Potential Competition

28 The Nature of Competition: Structure of the Industry: –Monopoly –Oligopoly –Monopolistic Competition –Perfect Competition

29 TECHNOLOGICAL ENVIRONMENT Evolution of Wants –“Creative Destruction” Long-term unforseeable consequences Accelerated pace of Change

30 POLITICAL-LEGAL ENVIRONMENT Consumer Bill of Rights (1962 JFK) Regulatory Agencies –FTC, FDA, FCC, EPA… Increased Legislation –Protect companies, consumers, society

31 SOCIO-CULTURAL/ DEMOGRAPHIC ENVIRONMENT Demographics –Age mix –Ethnic/racial mix –Education –Household Patterns –Geographical Shifts Beliefs, Values, Norms –Persistence of core beliefs/values –Existence of subcultures –Shift of secondary beliefs

32 ECONOMIC ENVIRONMENT Factors Influencing Purchasing Power: – Two-tier US Economy Reactions to Poor Economic Times

33 ENVIRONMENTAL CHANGE CHANGES IN THE ENVIRONMENT CAN REPRESENT A THREAT OR AN OPPORTUNITY – IT DEPENDS ON THE FIRM’S STRENGTHS ANDWEAKNESSES

34 Establishing the Structure of the Business A PORTFOLIO APPROACH GOALS:

35 PORTFOLIO APPROACHES BCG MATRIX: Classify SBU on 2 variables: 1. market attractiveness 2. company strength

36 BCG MATRIX Stars Question Marks Cash CowsDogs RELATIVE MARKET SHARE Market Growth Rate ?

37 GROWTH STRATEGIES Current MarketsNew Markets Current Products New Products MARKET PENETRATION MARKET DEVELOPMENT PRODUCT DEVELOPMENT DIVERSIFICATION

38 GROWTH STRATEGIES: Market Penetration: 1.Increase Usage 2.Introduce Intermediaries 3.Mandatory Consumption Market Development: 1.Expanding to new geographic markets or new market segments

39 GROWTH STRATEGIES: Product Development: New Products for the current market -- utilizing strengths Diversification: Horizontal Vertical

40 Exercise 1: Bring in two products from the same product category that would be used by different “types” of people Describe the person who buys this product Describe the Marketing Mix for this Product