1 MKT 304 Principles of Marketing Marketing Strategy and Role.
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Transcript of 1 MKT 304 Principles of Marketing Marketing Strategy and Role.
1
MKT 304 Principles of Marketing
Marketing Strategy and Role
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Announcements• Those who missed last class to pick up
course outline and complete first in class exercise by today.
• Please register for the discussion forum if you have not done so. Of course, feel free to post comments and ideas.
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Marketing Evolution• Simple trade era (before Industrial Revolution)
– Trade of “surplus” output; – Focus: Sell surplus
• Production era (Industrial Revolution to 1920s)– “If we can make it, it will sell”;– Focus: Increase supply
• Sales era (1930s to 1950s)– Business success = sell, sell, sell … ;– Focus: Beat Competition
• Marketing department era (1950s)– Short-term marketing plan and limited integration;– Focus: Coordinate and Control
• Marketing company era (since 1960s)– Implementation of the marketing concept.– Focus: Long run customer satisfaction
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• The “Marketing Concept”The marketing concept means that an organization as a whole should seek to make a profit by serving the needs of it customers.
TheMarketingConcept
Customer Satisfaction
Total Company
Effort
Profit
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Take Customer’s Point of View
Take Customer’s Point of View
Take Customer’s Point of View
Take Customer’s Point of View
Customer May Not Dwell On
Value
Customer May Not Dwell On
Value
Customer May Not Dwell On
Value
Customer May Not Dwell On
Value
Where Does Competition Fit?
Where Does Competition Fit?
Costs Benefits Where Does Competition Fit?
Where Does Competition Fit?
Customer Value Builds
Relationships
Customer Value Builds
Relationships
The Marketing Concept & Customer Value
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Superior Customer Value
Superior Customer Value
Total Company Effort to Satisfy
Customers
Total Company Effort to Satisfy
Customers
Superior Customer Value
Superior Customer Value
Total Company Effort to Satisfy
Customers
Total Company Effort to Satisfy
Customers
Customer AcquisitionCustomer Acquisition
Customer SatisfactionCustomer
SatisfactionCustomer
SatisfactionCustomer
Satisfaction
Customer RetentionCustomer Retention
Customer AcquisitionCustomer Acquisition
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Putting It All Together
Customer RetentionCustomer Retention
Profitable Relationships with
Customers
Profitable Relationships with
Customers
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Marketing Management• MARKETING MANAGEMENT PROCESS--the process of (1) planning
marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans.
• STRATEGIC (MANAGEMENT) PLANNING—the managerial process of developing and maintaining a match between an organization’s resources and its market opportunities.
Whole-CompanyStrategic
ManagementPlanning
Whole-CompanyStrategic
ManagementPlanning
Marketing PlanningSet Objectives
Evaluate OpportunitiesPlan Marketing StrategyDev plans & programs
Marketing PlanningSet Objectives
Evaluate OpportunitiesPlan Marketing StrategyDev plans & programs
Implement MarketingPlan(s) and Program
Implement MarketingPlan(s) and Program
Control MarketingPlan(s) and Program
Control MarketingPlan(s) and Program
Adjust Plansas Needed
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Marketing Strategy
• Target Market– A group of customers to appeal.
• Marketing Mix– Product;– Pricing;– Distribution (Place);– Promotion.
• Note: customer is not part of the marketing mix!
TheMarketing
Mix
TheMarketing
Mix
C
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Product Strategy
• Are there different types of customers in the market?
• What do these different segments want?
• Which segment should we target?
• How can we “position” our product toward this segment?
• How broad of an assortment of products should we offer?
• What are the appropriate quality levels?
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Pricing Strategy
• How price sensitive are potential customers?
• What are our competitors charging for similar products?
• What is the minimum price we need to charge to cover our variable costs of production and some of our fixed costs?
• What price level would be consistent with the desired positioning for our products?
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Distribution (Place) Strategy
• What channel should we use to distribute our products?
• What intensity should we deploy in the distribution of our products?
• How many “middlemen” should there be between us and our final customers?
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Promotion Strategy
• What should we communicate about our products to potential customers?– Eg: Attributes, Image, Technology etc
• How should we communicate to our potential customers?– Eg: Personal Selling, Mass Selling, Sales
Promotion
• What specific media should we use to communicate? – Eg: Sleep Country USA
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Attribute Promotion
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Marketing Mix & The Customer
Customer
Price
Place Promotion
Product
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In a Nutshell…………
ProductPhysical GoodsServiceFeaturesQuality LevelAccessoriesInstallationInstructionsWarrantyProduct LinesPackagingBranding
PlaceObjectivesChannel TypeMarket ExposureKinds of
MiddlemanKinds and
Locations of Stores
How to Handle Transporting and Storing
Service LevelsRecruiting
MiddlemenManaging
Channels
PromotionObjectivesBlendSalespeople Kind Number Selection Training MotivationAdvertising Targets Kinds of Ads Media Type Copy Thrust Who Prepares?Sales PromotionPublicity
PriceObjectivesFlexibilityLevel over
Product Life Cycle
Geographic TermsDiscountsAllowances
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Target Marketing
Pricing StrategyProduct Strategy
Promotion Strategy
Distributio
n (Place) S
trategy
Marketing MixMarketing Mix
Target MarketTarget Market
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Mass Marketing
Pricing Strategy
Product Strategy
Promotion Strategy
Distribution (Place) Strategy
Pricing Strategy
Product Strategy
Promotion Strategy
Distribution (Place) Strategy
Pricing Strategy
Product Strategy
Promotion Strategy
Distribution (Place) Strategy
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Target MarketTarget Market
+
Marketing Mix
Marketing Mix
Target MarketTarget Market
Marketing Mix
Marketing Mix
= Marketing Strategy
Marketing Strategy
+Time-
Related Details
Time-Related Details
Marketing Strategy
Marketing Strategy
Time-Related Details
Time-Related Details
Marketing Plan
Marketing Plan
+Other
Marketing Plans
Other Marketing
Plans
=
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Plan Guides Implementation and Control
Marketing Plan
Marketing Plan
Other Marketing
Plans
Other Marketing
Plans
A Firm’s Marketing Program
A Firm’s Marketing Program
=
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Creative Strategy Planning Needed for Survival
2% 14% 14% 2%
(Well below average)
Poor Fair Good Exceptional
(Below average)
(Above average)
(Well above average)
Death-wish marketing
Best-practices marketing
68% (Average Marketing Program)
Failure
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A Marketing Success: Harley-Davidson
Course PacketLook for
the buzz
words:
customer
competition
company
product
price
distribution
promotion
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Facts of Harley Marketing• Customers: What are their demographics?Who are they?• 38, 53K, 60% married, 30% college, 95% male• “Rubbies” seeking individuality and escape from weekday pressures;• Competition: From?• Japanese firms, British Imports, California Company and Victor Bike;• Company: the up-and-downs in history?• 1903, great depression, WW2, 1950s,1960s, 1970s AMF, 1980s;• Product: What happened to the product? • Oil leaks and breakdowns• Restructuring?• Update equipment, improve production increase employee involvement, reduce cost, fewer employees,
cut in exec salaries, ties with suppliers, JIT deliveries• Current Harley?• Enhance quality, keep up with trends and customer needs, product lines of accessories and apparel, to
allow customized looks; • Price: What/why that level?• high-price, price inelasticity for exclusive image• Distribution(place):What was done? • carefully manages the number and location of dealers, help dealers design store layout and plan inventory
to meet local needs;• Promotion: What was done?• HOG rallies, Hog Tales magazine, printed ads to promote lifestyle
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Next Time
• Find a group of 5 if you have not got into any one or u can work alone
• Read Chapter 4• Think critically how any businesses around you
capitalize on the opportunities that are present.
See You Next Time!
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End Lecture 1a