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Some Ideas of Marketing

Traditional Approach
Selling & Advertising (one part) What else?

Customer Satisfaction
What do you think it means? Are there any

examples where you were really satisfied or not satisfied? Examples: Nordstrom, Southwest Air Marketing requires 2 or more capable parties to trade items of value. Each party may deal with the othereither accept or reject the exchange offer Marketings job is NOT to get rid of things

History of Marketing: Management Philosophies

Evolution of marketing orientations:
1. Simple trade orientation (trading of simple goods) 2. Production orientation (Industrial evolution) 3. Sales orientation (emphasis on selling because of competition) 4. Marketing department orientation (when all marketing activities are under the control of one department) 5. Marketing company orientation (involves short and long run planning)

~Apple, Nike, Coke, BMW, VW, Wynn,

Marketing Defined
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 (AMA) Everything we do to get and keep a customer Begins with the customer Series of sales or exchanges.a

What is Marketing?
Major Types of Marketing

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Importance of Marketing
Everyone needs it! (politicians, churches,

resumes) What if marketing (e.g., ads, brands) did not exist? How would your life be different in these ways?
Your favorite (and not so favorite) local and global

businesses that you depend on? (my crackberry) Your shopping? Your events/social life? Your education in this (fabulous) class? Your career? Your every day life? what if we lived like Thoreaus character in Walden

Marketing & Society

What about society/ our well-being?
(Google Prof. Joe Sirgy for research on this) Micro-macro dilemma: What is good

for the individual (or company) may not be good for society.
Difficult questions (health care,

marketing to children, tobacco, fast food) My students dilema Be true to yourself.

Marketing & Society

Meet Terrance. (my cat in Georgia; in

Vegas) Vices are marketed and distributed everywhere (ok, so we live in Vegas) Should they not be? (does marketing and business make you do/buy unwanted things?

Questions about LetsMarketing debate the Quality issues of the

system
Another sideMarketing enhances our lives Issues scholars or market proponents raise:

Connects people (American Idol, Iraqi Idol) Innovation Efficiency (imagine grocery shopping without brands) Helps build relationships Provides entertainment, escape Enhances competition Provides choice/individualism opportunities

What is Strategic Planning?

True mission of an organization is to provide value for three key constituencies
Customers Employees Investors

Objectives and strategies established at the top level provide context for planning in each of the divisions and departments

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The Strategic Planning Process

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Strategic Planning and Marketing Management

Includes all activities that lead to development of a clear organizational mission, objectives, and appropriate strategies Plays a key role in achieving an equilibrium between short and long term, by balancing acceptable financial performance Prepares for inevitable changes in markets, technology, and competition, as well as in economic and political arenas

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The Strategic Planning Process

Mission statement In developing a mission statement, management must take into account
Organizations history Organizations distinctive competitiveness Organizations environment

Mission statement should be

Focused on markets rather than products Achievable Motivational Specific
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The Strategic Planning Process

Organizational objectives End-points of an organizations mission and are what it seeks through on-going, long-run operations

Organizational strategies
Involves choice of major directions organization will take in pursuing its objectives

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The Strategic Planning Process

Sample Organizational Objectives (Manufacturing Firm)

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The Strategic Planning Process

Organizational growth based on products and markets
Market penetration strategies Market development strategies Product development strategies Diversification

Organizational strategies based on competitive advantage

Ability to outperform competitors in providing something that the market values Porter suggests strategies based on cost leadership and differentiation
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The Strategic Planning Process

Organizational Growth Strategies

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The Strategic Planning Process

Organizational strategies based on value
Customer value has become critical for marketers as well as customers Firms must seek to build long-term relationships with their customers by offering unique value

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The Strategic Planning Process

Choosing an appropriate strategy
Management should select those strategies consistent with its mission and capitalize on the organizations distinctive competencies Sustainable competitive advantage can be based on either the assets or skills of the organization Key to sustaining a competitive advantage is to continually focus and build on the assets and skills that will lead to long-term performance gains

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The Strategic Planning Process

Organizational portfolio plan
Organizations at a particular time are a portfolio of businesses product lines, divisions, schools Management must decide which businesses to build, maintain, or eliminate, or which new businesses to add Organizations can create strategic business units (SBUs) which could be a single product, product line, or division

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The Marketing Management Process

Complete Strategic Plan
Facilitates development of marketing plans for each product, product line, or division of the organization Marketing plan serves as a subset of strategic plan

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The Marketing Management Process

Defined as the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges with target groups that satisfy customer and organizational objectives

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The Marketing Management Process

Strategic Planning and Marketing Planning

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The Marketing Management Process

Situation analysis
Cooperative environment Competitive environment Economic environment Social environment Political environment Legal environment

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The Marketing Management Process

Marketing planning
Establishing marketing objectives Selecting the target market Developing the marketing mix

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The Marketing Management Process

Implementation and control of marketing plan
Implementation involves putting the plan into action and performing marketing tasks according to the predefined schedule Controlling involves three basic steps
Measuring results of implemented marketing plan Comparing results with objectives Making decisions on whether plan is achieving objectives

Marketing information systems and marketing research

Need for current, reliable, and valid information
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The Strategic Plan, The Marketing Plan, and Other Functional Area Plans
Strategic planning is a top-management responsibility All strategic planning has marketing implications Marketing objectives and strategies must be derived from the strategic plan Planning done in all functional areas of the organization should be derived from strategic plan

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The Strategic Plan, The Marketing Plan, and Other Functional Area Plans

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Appendix Portfolio Models

Portfolio Theory Experience Curve and Resulting Profit

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Portfolio Models BCG Model

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Portfolio Models The General Electric Model

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Portfolio Models The General Electric Model

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