Principles of Marketing BA 390
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Transcript of Principles of Marketing BA 390
Principles of Marketing
BA 390
Fall 2006Dr. McAlexander
What is Marketing? Do you know your pharmacist? What about the person who made your
shoes?
What do we do? We facilitate exchange
– Effectiveness– Efficiency
Who are our customers?
Key Terms Needs: Functional, Symbolic, and
Experiential Wants: Culturally shaped needs Demands: Add buying power Product: Complex bundle of
satisfactions.
Marketing ManagementStrategic Planning
and theMarketing Process
Evolution Production Orientation Product Orientation Selling Orientation Marketing Orientation: The Marketing
Concept Societal Marketing Concept
– Balance interests of consumer, society, and firm
Managerial Imperative Marketing Generates Revenue Mandate: Attract, Retain, and Grow
Customers– Customer value: differences between customer
costs and benefits– Customer satisfaction, loyalty, and retention
Customer Equity: Combined Customer Lifetime Values
Strategic Planning Process
Define the Mission
Set ObjectivesAnd Goals
Design BusinessPortfolio
Defining the Mission Statement of purpose
– Market Oriented Product orientation could be short-sighted
Based on Distinctive Competencies Motivating
Harley-DavidsonWe fulfill dreams through the
experience of motorcycling,by providing to motorcyclists and to
the general publican expanding line of motorcycles and
branded products and servicesin selected market segments.
Setting Objectives and Goals
Obviously relate to mission statement Time specific and measurable
Business Portfolio: BCG and Friends
High Share Low Share
HighGrowth
LowGrowth
Porter’s Generic Strategies
Low Cost Differentiation Focus
Growth Strategies Existing Products and Markets:
– Market Penetration Existing Products and New Markets
– Market Development New Products and Existing Markets
– Product Development New Products and New Markets
– Diversification
Marketing Process: Segmentation, Targeting, and Positioning
Market Segmentation– Demographic– Benefit– Psychographic
Market Targeting Choose to serve one or more
segments Fit with abilities and resources of the
firm. Competitive intensity
Market Positioning The place the product occupies in the
mind of the consumer relative to the competition.
http://www.buell.com/
Marketing Mix
PRODUCT
PLACEPRICE
PROMOTION
Marketing Environments Micro Environments
– The company
Marketing Environments Micro Environments
– The company– Suppliers– Marketing Intermediaries– Customers– Competitors– Publics
Marketing Environments Macro Environments
– Demographic Age Ethnicity Geographic shifts Income distribution
Marketing Environments Macro Environments
– Demographic– Economic– Natural
Natural Environment Natural Resources and Marketing
Perspectives– Market Segments– Impacts upon the environment
Marketing Environments Macro Environments
– Demographic– Economic– Natural – Technological
Technological Environment
WSJ– Having babies: prenatal screening…– Stay in touch with families: myfamily.com– Find love: 73% of singles use the internet– Watch TV and listen to the radio– Fandom– Shop
Marketing Environments Macro Environments
– Demographic– Economic– Natural – Technological – Political
Political Environment Impact of legislation: all levels of
government– Pricing: price discrimination (Robinson-
Patman Act)– Product: unsafe toys and articles (Child
Protection Act also Consumer Product Safety Act) and warranties (Manuson-Moss Warranty Act)
Marketing Environments Macro Environments
– Demographic– Economic– Natural – Technological – Political – Cultural