Marketing Management Strategy and Strategic Thinking Paul Dishman, Ph.D. Department of Business Management Marriott School of Management Brigham Young University Lecture 4

Paul Dishman, Ph.D. Marketing Management Learning Objectives Primer on Marketing Strategy Introduction to Target Marketing and Segmentation Examples and lessons from a variety of industries and businesses

Paul Dishman, Ph.D. Marketing Management Possible Marketing Paths R&D invents product MR uncover unmet need in market Product produced Market tests conducted Product benefits articulated To whom do we sell this product? Who do we tell about this product? What do we need to tell them?

Paul Dishman, Ph.D. Marketing Management To Whom Do We Want to Speak? Who should receive our message? What message do they want? need? How should the message best be delivered?

Paul Dishman, Ph.D. Marketing Management Who is our Target Audience? Mass Market or Targeted Market? To what group of people do we want to aim this product? Aim our messages? What common characteristics do they possess?

Paul Dishman, Ph.D. Marketing Management Mass Marketing vs. Target Marketing Mass Marketing “one product for all customers” Custom Marketing “each product unique for each person” Target Marketing “a product for a specified sub-group with common needs” ?

Paul Dishman, Ph.D. Marketing Management Stakeholders vs. Audiences Stakeholders Shareholders Employees Customers Suppliers Community Audiences All stakeholders Identified Market Segments Media others Stakeholders Audiences

Paul Dishman, Ph.D. Marketing Management Introduction to Product-Markets What is a Product-Market? –“a market defined by a common application of a product class” –baby-food market –home internet computer market –couture fashion market

Paul Dishman, Ph.D. Marketing Management Product-Markets Are “living” entities Constantly changing and evolving Managers must monitor changes and predict trends through intelligence efforts Markets can be: alive dead dormant bifurcating mutating

Paul Dishman, Ph.D. Marketing Management Product-Markets 1985: Desktop Personal Computer Market by Usage Areas Business Home Education Science

Paul Dishman, Ph.D. Marketing Management Product-Markets 1987: Desktop Personal Computer Market by Usage Areas Business Home Education Science

Paul Dishman, Ph.D. Marketing Management Product-Markets 1987: Desktop Personal Computer Market by Usage Areas Business Home Education Science Portability

Paul Dishman, Ph.D. Marketing Management Product-Markets 1997: Personal Computer Market by Product-Market Laptop PC’s Personal Digital Assistants Mini Laptops Desktop PC’s Special Purpose PC’s Network Server PC’s

Paul Dishman, Ph.D. Marketing Management Product-Markets 1997: Personal Computer Market by Product-Market by Usage Desktop Laptop Mini-laptop PDA Server Special Purpose Education Home Scientific Business

Paul Dishman, Ph.D. Marketing Management Product-Market Expansion Three ways to grow –Expand with expanding market –Expand by taking market share away from competitors –Create new markets

Paul Dishman, Ph.D. Marketing Management Product-Market Expansion Market Existing New Product Existing New Market Penetration DiversificationMarket Development Product Development

Paul Dishman, Ph.D. Marketing Management Apply the Marketing Mix ProductCustomer needs and wants PriceCost to customer PlaceConvenience PromotionCommunication POSITIONCustomer concept vis-a-vís competitors

Paul Dishman, Ph.D. Marketing Management Positioning Price Quality Rodeo Astro van BMW Sentra Volvo Escort

Paul Dishman, Ph.D. Marketing Management Positioning Price Quality Popular Priced Cars Luxury Cars Concept: Competitive Space ?

Paul Dishman, Ph.D. Marketing Management Summary Intro to Marketing Strategy Intro to Target Marketing (and Segmentation) Product Market Expansion Strategies Application of Marketing Mix for Positioning

Paul Dishman, Ph.D. Marketing Management For Next Class Introduction to Situational Analysis SWOT Analysis Grid Tools