MT 219 Marketing Unit Two

Marketing Environment and Market Research

Agenda

• Review Unit 1• The marketing environment

• Marketing Research

What is Marketing?

What is Marketing?

• Your e-book by Pride and Ferrell gave a fantastic definition. It states, “Marketing is the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchanges with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.”

The Marketing Mix and Environment

Summary – the Marketing Mix

The Marketer’s tool box – the Marketing Mix• The product – anything that is offered to consumers for

their satisfaction • The price – what consumers give up for the product• The place – where, when and how consumers access

and possess the product• Promotion- communication between the provider of the

product and the consumer

Relationships

Chapter 2

Planning

Planning as the process of anticipating future events and conditions and determine the best way to achieve organizational objectives.

Boon and Kurtz. Contemporary Marketing 2005. Page 39

Failing to plan is planning to ….!

Failing to plan is planning to fail!

Strategic Planning

• The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan.

Mission and Goals

What is a marketing plan?

• A written document that specifies that activities to be performed to implement and control an organization’s marketing activities. Pride and Ferrell

Assessment

SWOT Analysis

• Internal

- Strengths

- Weaknesses

• External

-Opportunities

-Threats

Core Competencies and Competitive Advantage

• Core competencies are those things a firm does extremely well.

• Competitive advantage is the result to a company’s matching a core competency to opportunities in the marketplace.

SBU’s

• Most businesses have more than one product or service. All these different products or units in a diversified firm are referred to as SBUs or strategic business units.

Market Share

Market share refers to the percentage of sales you receive from the industry you are categorized.

BCG Matrix or Market Share/Market Growth Matrix

MT 219 Marketing Unit Two

The Marketing Environment and Marketing Research

•Note: This seminar will be recorded by the instructor.

The Macroenvironment

• Demographic environment• Economic environment• Natural environment• Technological environment• Political environment• Cultural environment

• Businesses are impacted by ALL of these forces.

The Marketing Mix and Environment

Economic Forces

• Buying Power

disposable income

discretionary income• Willingness to spend• Economic conditions and business cycle

recession vs. expansion

Political, Legal and Regulatory

• Regulatory AgenciesFTCFDACPSCFCCEPA

Major Federal Laws: The Protection of Competition

• Sherman Antitrust• Clayton• FTC Act• Robinson-Patman• Wheeler-Lea

Technological Forces

• Technology – the application of knowledge and tools to solve problems and perform tasks more efficiently.

-most dramatic force today-enables market fragmentation

Sociocultural Forces – Demographics

• Aging of the population• Increased diversity• Higher levels of education• Greater mobility• Changes in “family” structure

Natural Environment

• Looks at the raw resources and natural world conditions that help or hinder the firm

• Raw resources used in products may be in short supply or what is supplied may be in surplus

• Things like climate, natural disasters and man-made disasters can impact the organization

Microenvironmental Actors

• The organization itself• Suppliers• Marketing Intermediaries• Competitors• Publics• Customers

The Firm or Organization

• Marketing impacts many areas of an organization

• Different functional areas and their capabilities go into marketing planning

• All areas must realize the need to help in marketing efforts

Suppliers

• Provide the materials and resources that organizations use to provide product

• Resources must be provided in a timely way at a cost and quality level required for the product.

Marketing Intermediaries

• Assist the organization getting products to consumers

• Can be involved in a number of area, including physical distribution, financing, marketing services and reselling

• Importance of developing strong relationships

Competitors

• Almost no one is free of competition

• Need to monitor competitive actions

• Need to develop a systematic approach to competitive evaluation

Publics

• Many times referred to as stakeholders

• Involve any group that may impact the development of an organization’s strategies

• This is the reason why companies often need to be actively engaged in public relations

Customers

• The entire rationale for an organization’s existence

• For most companies, this actor represents its sole source of revenue

• There is a need to establish long-term relationships with this group

The importance of marketing research

• Enables marketers to understand consumers and meet their needs

• Is the connection between marketers and consumers in many ways

Marketing Research Process

• Defining the problem• Designing the research plan• Collecting data• Interpreting the findings from the data• Reporting findings in a timely manner

Secondary Data

• Advantages

readily available

less expensive

less time consuming

• DisadvantagesMay be old

May not be in form required

May be incorrect

Primary Data Collection Approaches

• Observation• Survey• Experiment

Need to Assure Reliability and Validity as much as possible

Sampling – from a population

• Probability – random, stratified, cluster sampling• Non probability – quota, convenience, judgment• Census- a complete count of the population

Basic Contact Methods

• Mail• Telephone• Online• Personal Interview

Questionnaire Construction – open ended vs. closed ended

Any Questions?

Thank you for attending!

See you next week!