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Copyright © 2010 Pearson Education Canada 1
Chapter 1: Contemporary Marketing
Importance of Marketing
Marketing helps lead an organization into the future by:
•Providing a means of keeping pace with change•Offering a means of connecting with
customers•Ensuring an organization offers the right
goods and services
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Copyright © 2010 Pearson Education Canada 2
Chapter 1: Contemporary Marketing
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.”
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Copyright © 2010 Pearson Education Canada 3
Chapter 1: Contemporary Marketing
Marketing Past and Present
Production Orientation
Socially Responsible Marketing
Orientation
SellingOrientation
Marketing Orientation
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Copyright © 2010 Pearson Education Canada 4
Chapter 1: Contemporary Marketing
Socially Responsible Marketing
Socially ResponsibleMarketing
Deliver satisfactionBetter than the
competition
Identify and satisfy customer
needs
Enhance society through good
corporate citizenship
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Copyright © 2010 Pearson Education Canada 5
Chapter 1: Contemporary Marketing
Socially Responsible Marketing
SRM can be divided into two main areas:
1. Programs that conserve, preserve, and protect the environment
2. Programs that support causes (cause marketing)
Companies that demonstrate corporate social responsibility must make the public aware of its doings.
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Copyright © 2010 Pearson Education Canada 6
Chapter 1: Contemporary Marketing
The Marketing Process
Assess Customer Needs
Identify and Select a Target
Develop Marketing Strategy
Develop Customer Relationship Strategy
Evaluation and Control
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Copyright © 2010 Pearson Education Canada 7
Chapter 1: Contemporary Marketing
Assessing Customer Needs
An organization collects information about needs to determine if a market is worth pursuing.
1. Market Analysis
2. Consumer Analysis
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Copyright © 2010 Pearson Education Canada 8
Chapter 1: Contemporary Marketing
Target Identification and Selection
A target market is a group of people that have something in common. They may be in the same age range, have similar educational backgrounds, live in the same area, or share an interest or activity.
Generation YGeneration X
Baby BoomersSeniors
Canada’s population is aging; this poses a challenge for marketers currently appealing to older targets but wanting to attract younger targets.
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Copyright © 2010 Pearson Education Canada 9
Chapter 1: Contemporary Marketing
Developing a Marketing Strategy
Product
Price
MarketingCommunications
Distribution
MarketingMix
Consumeror
Business Customer
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Copyright © 2010 Pearson Education Canada 10
Chapter 1: Contemporary Marketing
Product Strategy
A product may possess tangible and intangible characteristics. Product decisions are numerous and embrace:
Quality
Features
Brand Name
Image
Size
Format
Service
Guarantees
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Copyright © 2010 Pearson Education Canada 11
Chapter 1: Contemporary Marketing
Product Differentiation
“A strategy that focuses marketing activity on the unique attributes or differential advantages of a brand to distinguish it from other brands.
Wal-Mart…..Save money. Live better.
Tim Hortons…..Always fresh.
Visa…..All you need.
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Copyright © 2010 Pearson Education Canada 12
Chapter 1: Contemporary Marketing
Price Strategy
Establishing a fair and equitable price for customers while being profitable for the organization. Price decisions consider the following factors:
Cost of manufacturing a good
Desired profit level
Location of customers
Degree of competition
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Copyright © 2010 Pearson Education Canada 13
Chapter 1: Contemporary Marketing
Distribution Strategy
The selection and management of marketing channels and the physical distribution of products.
Producers of Goods
Distributors of Goods
Users of Goods
A marketing channel is a series of firms that participate in the flow of goods and services from producers to final users.
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Copyright © 2010 Pearson Education Canada 14
Chapter 1: Contemporary Marketing
Marketing Communications Strategy
Companies now focus on an “integrated marketing communications” strategy. The intent is to deliver a consistent message regardless of the method of communication.
Due to technology and shifting consumer behaviour, organizations now place more emphasis on digital communications. A company must follow their customers’ eyeballs wherever they may be and adjust their budget allocations accordingly.
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Copyright © 2010 Pearson Education Canada 15
Chapter 1: Contemporary Marketing
IMC Mix
AdvertisingDirect Response
InteractiveSales PromotionEvent MarketingPublic RelationsPersonal Selling
Consumer or Business
Customer
Coordination and integration generates more impact on the audience.
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Copyright © 2010 Pearson Education Canada 16
Chapter 1: Contemporary Marketing
Public Image
A good reputation is an important asset and reputation is earned through good marketing. An organization must:
Be sensitive to customer needs and interests
Support communities they operate in
Be socially responsible marketers
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Copyright © 2010 Pearson Education Canada 17
Chapter 1: Contemporary Marketing
Customer Relationship Management
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Marketing today is about building relationships; relationships with channel members and consumers.
CRM refers to strategies that optimize profitability, revenue, customer retention, and customer satisfaction. Successful CRM programs rely on a strong internal data management system.
Copyright © 2010 Pearson Education Canada 18
Chapter 1: Contemporary Marketing
Customer Retention Strategies
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Loyalty Programs
An incentive offered to customers to encourage repeat purchases.
Customer Relationship Management Programs
A system that collects and analyzes information for the purpose of devising unique marketing offers to individual customers. It encourages more purchases of same product or new purchases of complementary products.
Copyright © 2010 Pearson Education Canada 19
Chapter 1: Contemporary Marketing
Partnership Marketing
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Building relationships with other companies can pay dividends.
Supplier Manufacturer Distributors Consumers
In partnerships common objectives among members are established, and teamwork and cooperation replace competition and conflict.
Copyright © 2010 Pearson Education Canada 20
Chapter 1: Contemporary Marketing
Partnership Marketing
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Another partnership option is a strategic alliance. In a strategic alliance two firms combine their resources for the purpose of satisfying the customers they share.
Laura Secord Hallmark Cards
Mac’ Milk Subway
Copyright © 2010 Pearson Education Canada 21
Chapter 1: Contemporary Marketing
Evaluating Marketing Activity
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Marketing strategies must be periodically reviewed for effectiveness. A typical review may include an assessment of:
Market conditions (external influences)Competitor activity (their success or failure)Brand performance to date (are objectives being
achieved?)
Potential changes in marketing strategy are addressed in the review process.