Upload
hunjoo14
View
110
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Marketing Philosophy and Strategy
Citation preview
Marketing Marketing PhilosophyPhilosophy
and and StrategyStrategy
Chapter OneChapter One
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-2
Key Learning PointsKey Learning Points
The marketing conceptThe marketing conceptDifferent organizational philosophies Different organizational philosophies about marketingabout marketingImportance of being customer focusedImportance of being customer focusedThe job of the marketing managerThe job of the marketing managerTypical marketing organizational Typical marketing organizational formsformsHow marketing is changingHow marketing is changingThe focus of this bookThe focus of this book
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-3
What is Marketing?What is Marketing?
Marketing is the set of activities Marketing is the set of activities that attempts to influence that attempts to influence choice.choice.
Think about Think about “marketing” “marketing” and the type of people and the type of people who help to market a who help to market a service. service.
Which of the hotel Which of the hotel employees listed at left are employees listed at left are involved in marketing?involved in marketing?
Desk clerkDesk clerk
ValetValet
ConciergeConcierge
WaitressWaitress
Reservation Reservation
clerk clerk
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-4
What is Marketing?What is Marketing?
Who engages in marketing?Who engages in marketing? Product manufacturersProduct manufacturers GovernmentGovernment Not-for-profit organizationsNot-for-profit organizations ChurchesChurches UniversitiesUniversities PoliticiansPoliticians Utility companies . . . Etc.Utility companies . . . Etc.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-5
What is Marketing?What is Marketing?
Successful marketing is difficult:Successful marketing is difficult: There is no “formula” for marketing There is no “formula” for marketing success. success. Requires considerable interaction with Requires considerable interaction with customers. customers. Customers often cannot accurately Customers often cannot accurately describe describe their needs. their needs. Competitive action is difficult to predict.Competitive action is difficult to predict. Customer tastes and societal trends change Customer tastes and societal trends change
frequently. frequently. Implementing strategy precisely is difficult.Implementing strategy precisely is difficult.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-6
Discussion Discussion
Why do you Why do you think that think that 3Com’s 3Com’s internet internet appliance, appliance, “Audrey” “Audrey” failed?failed?
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-7
Table 1.1Table 1.1Top 10 Brands 1923 and 2005Top 10 Brands 1923 and 2005
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-8
Organizational PhilosophiesOrganizational Philosophies
The Marketing ConceptThe Marketing Concept Emphasizes a customer focus:Emphasizes a customer focus:
Organizing resources toward Organizing resources toward understanding customers’ understanding customers’ needsneeds Offering products or services Offering products or services designed to meet needs designed to meet needs
Profits result from serving Profits result from serving customers customers better than the competition. better than the competition.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-9
““The purpose of a business is to The purpose of a business is to create and keep a customer. To create and keep a customer. To do that you have to produce and do that you have to produce and deliver goods and services that deliver goods and services that people want and value at prices and people want and value at prices and under conditions that are reasonably under conditions that are reasonably attractive relative to those offered by attractive relative to those offered by others to a proportion of customers others to a proportion of customers large enough to make those prices large enough to make those prices and conditions possible.and conditions possible.””
- Theodore Leavitt
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-10
IllustrationIllustration
ING Direct is one of is one of the fastest growing the fastest growing banks in the world.banks in the world.
ING meticulously ING meticulously “fires” customers “fires” customers who cost too much who cost too much or who desire or who desire exceptions to exceptions to operating policies.operating policies.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-11
Figure 1.1Figure 1.1Strategic Approaches to the Strategic Approaches to the
MarketplaceMarketplace
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-12
Organizational PhilosophiesOrganizational Philosophies
Sales Driven:Sales Driven:Focus: “What we make, we sell.”Focus: “What we make, we sell.”
Little attention paid to the Little attention paid to the customercustomer
Very aggressive selling effortsVery aggressive selling efforts
Seeks to maximize volume, not Seeks to maximize volume, not profitprofit
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-13
Organizational PhilosophiesOrganizational Philosophies
Technology (or product) driven:Technology (or product) driven:Focus: Research and development; Focus: Research and development; customer needs are secondarycustomer needs are secondary
Problem: developed technology Problem: developed technology may not satisfy needsmay not satisfy needs
Great technology does not Great technology does not guarantee company successguarantee company success
““Feature fatigue” commonly resultsFeature fatigue” commonly results
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-14
Organizational PhilosophiesOrganizational Philosophies
Marketing driven:Marketing driven:Focus: Embraces marketing, but Focus: Embraces marketing, but to the point of excessto the point of excess
Enormous investments in Enormous investments in marketing researchmarketing research
Common in consumer goods firmsCommon in consumer goods firms
Problem: Very slow to respond to Problem: Very slow to respond to changes in the marketplacechanges in the marketplace
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-15
““Customers do Customers do notnot inherently inherently want to buy products. want to buy products. Products cost money and, for Products cost money and, for corporate buyers, reduce corporate buyers, reduce profits. Customers buy profits. Customers buy products for the products for the benefitsbenefits that that the product features provide.”the product features provide.”
- Russell S. Winer
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-16
ActivityActivity
Customer driven firms focus on selling Customer driven firms focus on selling benefits rather than products or benefits rather than products or services. Supply one or more benefits services. Supply one or more benefits for each of the sentences below:for each of the sentences below:Don’t sell me a house, sell me . . .Don’t sell me a house, sell me . . .Don’t sell me toothpaste, sell me . . .Don’t sell me toothpaste, sell me . . .Don’t sell me a movie, sell me . . . Don’t sell me a movie, sell me . . . Don’t sell me dry-cleaning, sell me . . .Don’t sell me dry-cleaning, sell me . . .Don’t sell me life insurance, sell Don’t sell me life insurance, sell me . . .me . . .
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-17
Organizational PhilosophiesOrganizational Philosophies
Customer driven:Customer driven:Focus: Benefits desired by Focus: Benefits desired by buyersbuyers
Stresses long-term relationships:Stresses long-term relationships:Conflicts: marketing versus Conflicts: marketing versus financefinance
Company reactions to crisisCompany reactions to crisis
Attitudes toward marketing: Attitudes toward marketing: expenseexpense or or investmentinvestment??
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-18
Organizational PhilosophiesOrganizational Philosophies
How do organizations achieve a How do organizations achieve a customer orientation?customer orientation?
Information is shared among Information is shared among corporate functions.corporate functions.Strategic and tactical decisions are Strategic and tactical decisions are made cross-functionally and across made cross-functionally and across divisions.divisions.Divisions and functions are Divisions and functions are committed to execution of committed to execution of coordinated decisions.coordinated decisions.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-19
Table 1.2Table 1.2Customer Orientation ChecklistCustomer Orientation Checklist
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-20
Figure 1.2Figure 1.2Reversing the Value ChainReversing the Value Chain
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-21
Figure 1.3Figure 1.3The Dangers of Being Customer-The Dangers of Being Customer-
LedLed
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-22
Organizational PhilosophiesOrganizational Philosophies
Does a customer orientation Does a customer orientation and the marketing concept and the marketing concept inhibit companies from inhibit companies from developing revolutionary new developing revolutionary new products?products?
No. Marketing managers need to No. Marketing managers need to translate new technology into translate new technology into benefits that customers desire. benefits that customers desire.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-23
Organizational PhilosophiesOrganizational Philosophies
Marketing as a Value-Added Marketing as a Value-Added Activity:Activity:
Marketing adds value to some Marketing adds value to some segments of the population.segments of the population.
Capturing value is also important.Capturing value is also important.
Sustaining value is a final concern.Sustaining value is a final concern.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-24
Marketing Manager’s JobMarketing Manager’s Job
The main job of the The main job of the marketing manager marketing manager depends upon:depends upon:
The organizational The organizational structure.structure.The industry.The industry.The level in the The level in the organization that is organization that is being focused upon.being focused upon.
Eli Lilly adds value to Prozac through the brand name.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-25
Figure 1.4Figure 1.4Desserts Division Desserts Division
Organizational Chart, General Organizational Chart, General Foods CorporationFoods Corporation
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-26
Figure 1.5Figure 1.5Partial Organizational Chart, Partial Organizational Chart,
Grasse Fragrances SAGrasse Fragrances SA
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-27
Figure 1.6Figure 1.6Regional Bell Operating Regional Bell Operating
Company Marketing Company Marketing OrganizationOrganization
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-28
““The main job of anyone in The main job of anyone in marketing is to create or marketing is to create or implement a marketing strategy implement a marketing strategy for the product or service that for the product or service that meets the needs of the targeted meets the needs of the targeted customers better than the customers better than the competitorscompetitors’’ offerings and offerings and achieves the objectives set by achieves the objectives set by the organization.the organization.””
- Russell S. Winer
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-29
Figure 1.7Figure 1.7The Marketing Managers The Marketing Managers
InteractionsInteractions
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-30
Discussion QuestionDiscussion Question
Should Segway consider targeting college students?
Why or why not? Consider competitive, consumer, and external environmental factors as you develop your answer.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-31
““A marketing plan is a A marketing plan is a written document written document containing the guidelines containing the guidelines for the productfor the product’’s marketing s marketing programs and allocations programs and allocations over the planning period.over the planning period.””
- Russell S. Winer
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-32
Figure 1.8Figure 1.8Hierarchy of PlanningHierarchy of Planning
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-33
Figure 1.9Figure 1.9Marketing Planning SequenceMarketing Planning Sequence
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-34
Table 1.3Table 1.3Marketing Plan SummaryMarketing Plan Summary
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-35
Mobile technologyMobile technologyCustomer powerCustomer powerInteractive marketingInteractive marketingGlobalizationGlobalizationCustomer relationshipsCustomer relationshipsCommunication challengesCommunication challengesEmphasis on ROIEmphasis on ROISustainable marketing practicesSustainable marketing practices
The Changing Nature of The Changing Nature of MarketingMarketing
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-36
Figure 1.10Figure 1.10Anywhere, Any TimeAnywhere, Any Time
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-37
The Changing Nature of The Changing Nature of MarketingMarketing
Diffusion of Mobile Diffusion of Mobile Technology:Technology:
Allows increasingly Allows increasingly complex applicationscomplex applications
Serves as mobile Serves as mobile marketing platformmarketing platform
Widely available; acts Widely available; acts as an information as an information access “flattener”access “flattener”
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-38
The Changing Nature of The Changing Nature of MarketingMarketing
Customers are becoming more Customers are becoming more powerful due to:powerful due to:
The Internet.The Internet.
Web sites and services which Web sites and services which enhance interaction capabilities. enhance interaction capabilities.
Mobile technology revolution.Mobile technology revolution.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-39
““Consumers want a conversation, Consumers want a conversation, dialogue, to participate, to be more in dialogue, to participate, to be more in control. Consumers expect more control. Consumers expect more personal attention personal attention –– communication, communication, products and services that are tailored products and services that are tailored to their wants and needs. Consumers to their wants and needs. Consumers will expect customization, so products will expect customization, so products and services reflect their unique wants and services reflect their unique wants and needs. Marketing is being and needs. Marketing is being redefined.redefined.””
- A.G. Lafley- A.G. Lafley
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-40
The Internet is an The Internet is an indispensable indispensable tool for marketers with respect tool for marketers with respect to:to:
Communications.Communications.
Pricing.Pricing.
Distribution channels.Distribution channels.
The Changing Nature of The Changing Nature of MarketingMarketing
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-41
Globalization is a key concern, as Globalization is a key concern, as it creates both opportunities and it creates both opportunities and threats. Several factors influence threats. Several factors influence globalization.globalization.
The EuroThe EuroDemocratization of RussiaDemocratization of RussiaLatin America emerges as a marketLatin America emerges as a marketGeopolitical eventsGeopolitical eventsThe emergence of China and IndiaThe emergence of China and India
The Changing Nature of The Changing Nature of MarketingMarketing
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-42
China’s global impact:China’s global impact: One-fifth (1.3 billion) of the world’s One-fifth (1.3 billion) of the world’s population population Very low-cost supplierVery low-cost supplier Acquisition of global brandsAcquisition of global brands
India’s global impact:India’s global impact: OutsourcingOutsourcing Significant consumer goods marketSignificant consumer goods market Acquisition of global brandsAcquisition of global brands
The Changing Nature of The Changing Nature of MarketingMarketing
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-43
Customer relationship Customer relationship management and database management and database marketing:marketing:
Customer retention is paramount.Customer retention is paramount.Lifetime customer valueLifetime customer valueRelationship marketing relies upon:Relationship marketing relies upon:
Database marketingDatabase marketing•Mass customization Mass customization NikeID.com
Customer satisfactionCustomer satisfactionPersonalization often leads to loyalty.Personalization often leads to loyalty.
The Changing Nature of The Changing Nature of MarketingMarketing
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-44
Marketers face many marketing Marketers face many marketing communication challenges:communication challenges:
Decline in media usage.Decline in media usage. Increase in DVRs.Increase in DVRs. Increase in time spent on online Increase in time spent on online and audience fragmentation. and audience fragmentation. Decline in prime time Decline in prime time viewership.viewership. 18-24 year olds are increasingly 18-24 year olds are increasingly difficult to attract to TV.difficult to attract to TV.
The Changing Nature of The Changing Nature of MarketingMarketing
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-45
Figure 1.11Figure 1.11Kimberly Clark’s Media MixKimberly Clark’s Media Mix
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-46
ROI and marketing ROI and marketing investments:investments:
Pressure to measure ROIPressure to measure ROI
Pressure to develop better Pressure to develop better strategies and programs strategies and programs
Sustainable marketing Sustainable marketing practicespractices
The Changing Nature of The Changing Nature of MarketingMarketing
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-47
Focus of the BookFocus of the Book
Ch 1: Marketing manager’s job, Ch 1: Marketing manager’s job, marketing function, changes in marketing function, changes in marketingmarketingCh 2: Components of marketing Ch 2: Components of marketing strategy, differentiationstrategy, differentiationCh 3, 4, 5, 6: Collecting information Ch 3, 4, 5, 6: Collecting information useful for marketing decisionsuseful for marketing decisionsCh 7, 8: Product positioning, Ch 7, 8: Product positioning, branding, packaging, new productsbranding, packaging, new products
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-48
Focus of the BookFocus of the Book
Ch 9, 10, 11, 12, 13: Pricing, communication, sales promotion, distribution, sales, and direct marketing decisionsCh 14: Building long-term customer relationshipsCh 15: Marketing services
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-49
Executive SummaryExecutive Summary
Marketing is pervasive.Marketing is pervasive.Marketing is difficult.Marketing is difficult.Customer retention is critical.Customer retention is critical.Marketing concept is customer and Marketing concept is customer and competitor focused.competitor focused.Customer-oriented organizations invest in Customer-oriented organizations invest in the customer.the customer.Technological innovation is compatible Technological innovation is compatible with a customer-orientation.with a customer-orientation.Changes in the marketing environment Changes in the marketing environment impact the marketing manager’s job.impact the marketing manager’s job.
Copyright ©2011 Pearson Education, Inc., Publishing as Prentice Hall 1-50
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.