2. Dr. H. Ronald Moser Cumberland University Kleppner’s Advertising Procedure

3. Marketing Strategy – An Overview Kleppner’s Advertising Procedure, 18e Lane * King * Reichart

4. MARKETING STRAGEGY—AN OVERVIEW Dr. H. Ronald Moser Cumberland University

5. Marketing Definitions  Old AMA Definition  Marketing is the performance of a business activity that directs the flow of goods and services from production to consumer or user. 1. Business Activities. 2. Flow of goods and services. 3. P----------------------------------------------C. Producer Consumer

6. Marketing Definitions Marketing is appropriate for: 1. Business Organizations. 2.Non-profit Organizations. 3. Political Organizations. 4. Religious Organizations.  Who is Involved with Marketing?

7. Slide 1-71 Marketing Definitions  New AMA Definition of Marketing  Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

8. Slide 1-71 Marketing Definitions  Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. P--------------W--------------R--------------C ProducerWholesalerRetailerConsumer  Transportation  Finance  Advertising  Market Research

9. Slide 1-71 Marketing Definitions  The American Marketing Association defines marketing as an organizational process.  The AMA definition emphasizes the interrelated activities necessary to the creation of satisfactory exchanges. P--------------W--------------R--------------C ProducerWholesalerRetailerConsumer  Transportation  Finance  Advertising  Market Research

10. Slide 1-71 Marketing Definitions  William J. Stanton  Marketing is a total system of business activities designed to plan, price, promote, and distribute want- satisfying goods and services to present or potential customers. P--------------W--------------R--------------C ProducerWholesalerRetailerConsumer  Transportation  Finance  Advertising  Market Research

11. MARKETING AND THE CREATION OF UTILITY FORM PLACE TIME POSSESSION SATISFACTION OF HUMAN WANTS PRODUCTS PROVIDE BENEFITS Distribution Channel  Marketing is the Creation of Time, Place and Possession Utility.  Economic

12.  Creates Form Utility  Creates Time Utility  Creates Possession Utility  Whom Retailers are trying to satisfy  Transportation Would Create Place Utility Distribution Channel Manufacturing WholesalerRetailer Consumer  Marketing is the Creation of Time, Place, and Possession Utility.  Economic

13. Marketing Definitions  Paul Mazur  Marketing is the delivery of a standard of living to a society.  Malcom McNair  Marketing is the creation and delivery of a standard of living to a society.

14. Four Ways To Study Marketing 1. Managerial Approach. 2.Commodity Approach. 3.Functional Approach. 4. Institutional Approach.

15. Four Ways To Study Marketing 1. Managerial Approach. 2. Commodity Approach. 3. Functional Approach. 4. Institutional Approach

16. Four Ways To Study Marketing  Making decisions about Gross Margin, Markups, Markdowns, Suppliers, Inventories, and Shrinkage are decisions one expects to make regarding Merchandise Management.  Managerial Approach

17. PLANNING ORGANIZING DIRECTING CONTROLLING ESTABLISHING 1. GOALS 2. OBJECTIVES TWO COMPONENTS 1. PEOPLE 2. RESOURCES CONCERNED WITH 1. LEADERSHIP 2. MOTIVATION CONCERNED WITH ADJUSTMENTS OF 1. GOALS 2. OBJECTIVES Managerial Approach To The Study of Marketing

18. SELF ACTUALIZATION NEEDS TO DEVELOP ONE’S POTENTIAL TO FEEL AT EASE WITH THE UNIVERSE ESTEEM NEEDS LOVE AND BELONGING NEEDS SAFETY NEEDS PHYSIOLOGICAL NEEDS REALISTIC HIGH EVALUATION OF ONE’S SELF BY OTHERS, ABILITY TO COPE WITH DEMANDS, ACHIEVEMENT, GROUP MEMBERSHIP TO LOVE ANOTHER PERSON, TO BE LOVED, TO ESTABLISH AND MAINTAIN LOVE RELATIONSHIPS, TO BE ACCEPTED PHYSICAL SAFETY ENSURING FUTURE RESOURCES OF SATIS- FACTION FOR PHYSILOGICAL NEEDS AND FAMILIAR SURROUNDINGS  According to Maslow, human motivations are arranged in a hierarchy according to level of need. FOOD, WATER, SHELTER, TEMPERATURE, SLEEP, OXYGEN, SEX, PROTEIN  Maslow’s Hierarchy of Needs

19. Four Ways To Study Marketing  Merchandise Management Decisions!  Managerial Approach SalesMarkup Markdowns Turnover $ 100,00045%4% 6 Times $100,00045%8%6 Times $100,00045%4%8 Times $100,00045%4%4 Times

20. Four Ways To Study Marketing 1. Managerial Approach. 2. Commodity Approach. 3. Functional Approach. 4. Institutional Approach.

21.  Commodity Approach Four Ways To Study Marketing  Here we are concerned with the Physical Flow of individual products as they move from production to consumption.

22. Four Ways To Study Marketing 1. Managerial Approach. 2. Commodity Approach. 3. Functional Approach. 4. Institutional Approach.

23. 1. Buying or Leasing. 2. Selling or Leasing. 3. Transporting. 4. Storing. 5. Standardizing and Grading. 6. Financing. 7. Risk Taking. 8.Market Information Gathering.  Various activities needed to satisfy the needs of the ultimate consumer. Four Ways To Study Marketing  Functional Approach  Marketing Functions.

24. Four Ways To Study Marketing  Selected Changes in Marketing Institutional Structure Institutional Type Period of Growth 1. General Store 1800-1840 2. Department Store 1860-1940 3. Mail-Order House 1915-1950 4. Supermarket 1930-1950 5. Discount House 1950-1975 6. Shopping Center 1960-1970 7. Fast-Food Outlet 1960-1980 8. Home Improvement 1965-1990 9. Warehouse Club 1985- 10. Electronic Shopping 1990-

25. Four Ways To Study Marketing 1. Managerial Approach. 2. Commodity Approach. 3. Functional Approach. 4. Institutional Approach.

26. Four Ways To Study Marketing  Institutional Approach  Before 1900 it was the General Store because movement was local.  In the early 1900s the automobile caused movement between communities and large towns.  In the 1930s it was Montgomery Wards.  In the 1940s it was the Sears Catalog.  In the 1950s it was the Discount Houses.  In the 1960s it was the Regional Shopping Centers.

27. Four Ways To Study Marketing  Institutional Approach  In the 70s and 80s, emphasis was on the small towns.  In the 80s and 90s, Large National Chain Stores in small towns, Outlet Malls and Home Improvement Centers.  Future – More emphasis on the Internet.  Decisions that marketers make in the future are going to be more and more complex  Targeting Markets and Store Location.  Such as:  Merchandise Selection.

28. Four Ways To Study Marketing  Institutional Approach  Negotiation with Vendors and Suppliers.  Pricing, Promoting, and Displaying Merchandise.  I SAID “NO.”

29. Marketing’s Evolution Seller’s Market Buyer’s Market Production Era Sales Era Marketing Era 1865 1930 1950 ( PRODUCTION ORIENTATION) FOCUS ON PRODUCTION ( SALES ORIENTATION ) FOCUS ON SELLING ( MARKETING ORIENTATION) FOCUS ON TARGETED CUSTOMERS’ WANTS Social Responsibility Era 1970 Global Era 1985 (FOCUS ON THE ENVIRONMENT) ( FOCUS ON INTERNATIONAL TRADE)

30. Marketing Questions to Ask 1. Who are Marketers? 2. What do Marketers market? 3. To whom do Marketers market?

31. Consumer or Industrial Markets Consumer Markets  Buyers in the consumer market buy products for personal or household consumption. Industrial Market or Organizational Marketing  Buyers in the Organizational Markets buy products to satisfy the needs of the organization to which they belong. These needs can be classified into three Product types: Cont.

32. Industrial Market or Organization Markets 1.Products needed to make other consumer or industrial products, such as the jet engines Pratt & Whitney sell to Boeing. 2.Products needed to carry on the organization’s operations, such as the computers American Airlines buys to operate its reservation system. 3. Products bought for resale, such as the hardware items that K-Mart buys for resale to its customers.

33. Industrial Market or Organization Markets PRODUCER 1 PRODUCER 2 PRODUCER 3 PRODUCER 4 PRODUCER 5 PRODUCER 6 PRODUCER 7 PRODUCER 8 AGENT WHOLESALER RETAILER WHOLESALER RETAILER AGENT OR BROKER INDUSTRIAL DISTRIBUTOR INDUSTRIAL DISTRIBUTOR CONSUMER INDUSTRIAL USER INDUSTRIAL USER INDUSTRIAL USER INDUSTRIAL USER CONSUMER

34.  The consumer is the heart of all our marketing efforts.  In fact, the idea that the key to marketing is to satisfy the consumer has been called the Marketing Concept. The Marketing Concept

35. 2 SYSTEMS VIEW OF MANAGE- MENT 3 GOAL ORIENTATION 1 CUSTOMER ORIENTATION The Marketing Concept

36.  Three Fundamental Beliefs of the Marketing Concept 1. All company planning, policies, and operations should be oriented toward the customer. 2.All marketing activities in a firm should be organically integrated and coordinated. 3. Profitable sales volume should be the goal of a firm.

37. The Social Marketing Concept SOCIETY (HUMAN WELFARE CONSUMERS (WANT SATISFACTION ) COMPANY (PROFITS )

38.  A strategy is a Plan of Action designed to achieve certain Defined Objectives.  Objectives are statements of results to be achieved. Marketing Strategy ( A) Organizational objectives should reflect: 1. Sales objectives- are generally in the form of growth, stability, and/or market share. 2. Market share objectives- are generally pursued by only larger retailers or retail chains. 3. Return on investment objectives- are generally used by retailers that have large capital expenditures. Cont.

39. Marketing Strategy  A strategy is a Plan of Action designed to achieve certain Defined Objectives.  Objectives are statements of results to be achieved. 4. Satisfaction of publics’ expectation - objective that seeks to satisfy stockholders, customers, suppliers, employees, and government. 5. Product quality objectives. 6. Managers’ performance objectives. 7. Managers’ responsibility objectives. (B) Management normally sets both long-and short-term objectives.

40. Elements of a Marketing Strategy  Criteria for Objectives Question  What criteria do managers use in evaluating objectives? What if our objective is to increase productivity (sales) by twenty (20) percent?  Measurable.  Realistic.  Attainable.  Acceptable.

41. WHAT ABOUT THOSE REVIEW QUESTIONS? THEY WILL BE THERE! “S” DRIVE The End!