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 This lecture covers: This lecture covers: nThe Marketing Function - 5 Ps n The Marketing Department l Organizational Structure l Types of Jobs n The Marketing Process n Challenges for the Future This lecture covers: This lecture covers: nThe Marketing Function - 5 Ps n The Marketing Department l Organizational Structure l Types of Jobs n The Marketing Process n Challenges for the Future

What is Marketing? “Marketing is Everything You Do to Help Sell a Product/Service”

“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 Five P’s”

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 (distribution) 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

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

5. People n Some controversy over the fifth P l Once, some said “packaging” l One consultant says “personalization” l Another says “playback” l We say it’s “People.” n Your customers n Your own people n Other “stakeholders” l Sales Force, Trade, Suppliers n Some controversy over the fifth P l Once, some said “packaging” l One consultant says “personalization” l Another says “playback” l We say it’s “People.” n Your customers n Your own people n Other “stakeholders” l Sales Force, Trade, Suppliers

The Marketing Mix n Demand l Example: Price/Supply n Marketing Variables l Five P Variables l Promotion Mix nMarketing Strategy... n Demand l Example: Price/Supply n Marketing Variables l Five P Variables l Promotion Mix nMarketing 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: n 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 l CFO, CIO s Chief Financial Officer s Chief Information Officer n 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 l CFO, CIO s Chief Financial Officer s Chief Information Officer

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

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

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.”

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 4. Assigning marketing tasks (planning) 1. Setting overall marketing strategy 2. Developing annual marketing plan 3. Calculating annual marketing budget 4. Assigning marketing tasks (planning)

ImplementationImplementation 4. Assigning marketing tasks (continued) 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 (continued) 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