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MARKETING THOUGHTS ….

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WHAT IS MARKETING?

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MARKETING:

Definition:

(Adapted from Kotler 2000)

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MARKETING AS EXCHANGE

SELLER

Items of Value

Items of Value

NeedWantBenefitDemand

BUYER

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KEY TERMS:

NEED:

WANT:

BENEFIT:

DEMAND:

VALUE:

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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

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What Do We Market

• • • • • •

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TOOLS TO MAKE EXCHANGE MORE LIKELY

THE MARKETING MIX (4 P’s)

P____________

P____________

P____________

P____________

A General Marketing Model

legal/politicalenvironment

institutionalenvironment

customerprice

product

place

promo

entrepreneurship

ethicspr

oduc

tivity

customer

value

relationship

technology

global

economicenvironment

social environment

technologicalenvironment

competitiveenvironment

Marketing Concept: satisfy consumer needs at a profit

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Marketing is a Process

• Market Planning

• Segmenting the Market

• Selecting a Target Market

• Positioning the Product

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EVOLUTION OF A CONCEPT

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Different Orientations to Bring About Exchanges

• Production Orientation

• Product Orientation

• Selling Orientation

• Marketing Orientation

• Relationship Marketing Orientation

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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?

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MARKETING STRATEGY“If you don’t know where you are going you might

end up somewhere else”

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STRATEGIC ISSUES

• WHERE ARE WE NOW?

• WHERE DO WE WANT TO GO?

• HOW DO WE GET THERE?

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A Strategic Planning Model

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CORPORATE LEVEL PLANNING

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CORPORATE LEVEL FUNCTIONS:

Define the Corporate Mission Evaluate Environment Set Organizational Goals and Objectives Establish the Business Portfolio Grow the Business

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MISSION STATEMENT

• Broad Statement of Purpose:– What is your organization’s mission statement?

–

–

–

–

–

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Defining a Company’s Present Business

• Narrow

soft drinks

videos

toys

life insurance

computers

• Broad

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Environmental Analysis

SWOT Analysis:

Strengths

Opportunities

Weaknesses

Threats

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SWOT--Internal Environment

• Strengths and Weaknesses

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EXTERNAL ENVIRONMENTS

• Opportunities and Threats:

1.

2.

3.

4.

5.

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Evaluate Your Company’s Business Environments

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COMPETITIVE ENVIRONMENT

Who are our current and potential competitors?

Who/What are competitors’ targets, strategies, strengths, weaknesses?

What are potential competitive reactions?

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Who is the Competition:

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A Customer Perspective

Intensity of Competition

Importance of Substitute Products

Potential Competition

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The Nature of Competition:

Structure of the Industry:

– Monopoly– Oligopoly– Monopolistic Competition– Perfect Competition

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TECHNOLOGICAL ENVIRONMENT

• Evolution of Wants– “Creative Destruction”

• Long-term unforseeable consequences

• Accelerated pace of Change

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POLITICAL-LEGAL ENVIRONMENT

• Consumer Bill of Rights (1962 JFK)

• Regulatory Agencies– FTC, FDA, FCC, EPA…

• Increased Legislation– Protect companies, consumers, society

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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

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ECONOMIC ENVIRONMENT

• Factors Influencing Purchasing Power:– – – –

• Two-tier US Economy

• Reactions to Poor Economic Times

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ENVIRONMENTAL CHANGE

CHANGES IN THE ENVIRONMENT CAN

REPRESENT A THREAT OR AN OPPORTUNITY – IT DEPENDS ON THE FIRM’S STRENGTHS

ANDWEAKNESSES

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Establishing the Structure of the Business

A PORTFOLIO APPROACH

GOALS:

1.

2.

3.

4.

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PORTFOLIO APPROACHES

BCG MATRIX:

Classify SBU on 2 variables:

1. market attractiveness

2. company strength

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BCG MATRIX

Stars Question Marks

Cash Cows Dogs

RELATIVE MARKET SHARE

MarketGrowthRate

?

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GROWTH STRATEGIES

Current Markets New Markets

CurrentProducts

NewProducts

MARKET PENETRATION

MARKET DEVELOPMENT

PRODUCT DEVELOPMENT

DIVERSIFICATION

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GROWTH STRATEGIES:

Market Penetration: 1. Increase Usage2. Introduce Intermediaries3. Mandatory Consumption

Market Development:1. Expanding to new geographic markets or

new market segments

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GROWTH STRATEGIES:

Product Development:New Products for the current market -- utilizing strengths

Diversification:HorizontalVertical

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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