Dr. Close

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 other…either accept or reject the exchange offer

Marketing’s job is NOT to get rid of things produced by the firm, it is to build relationships

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)

5.5. Marketing company orientationMarketing company orientation (involves short and long run planning)

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

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 relationship

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What is Marketing?What is Marketing?

Major Types of MarketingMajor Types of Marketing

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 Thoreau’s character in Walden

Pond…

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 student’s 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?Should they not be? (does marketing and business make you do/buy unwanted things?

Questions about MarketingLet’s debate the “Quality” issues of the system…

Another side…Marketing 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 other good things do you see with What other good things do you see with

marketing?marketing?

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What is Strategic Planning?What is Strategic Planning?

True mission of an organization is to provide value True mission of an organization is to provide value for three key constituencies for three key constituencies CustomersCustomers EmployeesEmployees InvestorsInvestors

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

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The Strategic Planning ProcessThe Strategic Planning Process

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Strategic Planning and Marketing Strategic Planning and Marketing ManagementManagement

Includes all activities that lead to development of a Includes all activities that lead to development of a clear organizational mission, objectives, and clear organizational mission, objectives, and appropriate strategiesappropriate strategies

Plays a key role in achieving an equilibrium Plays a key role in achieving an equilibrium between short and long term, by balancing between short and long term, by balancing acceptable financial performanceacceptable financial performance

Prepares for inevitable changes in markets, Prepares for inevitable changes in markets, technology, and competition, as well as in technology, and competition, as well as in economic and political arenaseconomic and political arenas

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The Strategic Planning ProcessThe Strategic Planning Process

Mission statement – In developing a mission Mission statement – In developing a mission statement, management must take into accountstatement, management must take into account Organization’s historyOrganization’s history Organization’s distinctive competitivenessOrganization’s distinctive competitiveness Organization’s environmentOrganization’s environment

Mission statement should beMission statement should be Focused on markets rather than productsFocused on markets rather than products AchievableAchievable MotivationalMotivational SpecificSpecific

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The Strategic Planning ProcessThe Strategic Planning Process

OOrganizational objectivesrganizational objectives End-points of an organization’s mission and are what it End-points of an organization’s mission and are what it

seeks through on-going, long-run operationsseeks through on-going, long-run operations Organizational strategiesOrganizational strategies

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

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The Strategic Planning ProcessThe Strategic Planning Process

Sample Organizational Objectives (Manufacturing Firm)Sample Organizational Objectives (Manufacturing Firm)

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The Strategic Planning ProcessThe Strategic Planning Process

Organizational growth based on products and marketsOrganizational growth based on products and markets Market penetration strategiesMarket penetration strategies Market development strategiesMarket development strategies Product development strategiesProduct development strategies DiversificationDiversification

Organizational strategies based on competitive Organizational strategies based on competitive advantageadvantage Ability to outperform competitors in providing something Ability to outperform competitors in providing something

that the market valuesthat the market values Porter suggests strategies based on cost leadership and Porter suggests strategies based on cost leadership and

differentiationdifferentiation

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The Strategic Planning ProcessThe Strategic Planning Process

Organizational Growth StrategiesOrganizational Growth Strategies

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The Strategic Planning ProcessThe Strategic Planning Process

Organizational strategies based on valueOrganizational strategies based on value ““Customer value” has become critical for marketers as Customer value” has become critical for marketers as

well as customerswell as customers Firms must seek to build long-term relationships with their Firms must seek to build long-term relationships with their

customers by offering unique valuecustomers by offering unique value

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The Strategic Planning ProcessThe Strategic Planning Process

Choosing an appropriate strategyChoosing an appropriate strategy Management should select those strategies consistent Management should select those strategies consistent

with its mission and capitalize on the organization’s with its mission and capitalize on the organization’s distinctive competenciesdistinctive competencies

Sustainable competitive advantage can be based on Sustainable competitive advantage can be based on either the assets or skills of the organizationeither the assets or skills of the organization

Key to sustaining a competitive advantage is to Key to sustaining a competitive advantage is to continually focus and build on the assets and skills that continually focus and build on the assets and skills that will lead to long-term performance gainswill lead to long-term performance gains

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The Strategic Planning ProcessThe Strategic Planning Process

Organizational portfolio planOrganizational portfolio plan Organizations at a particular time are a portfolio of Organizations at a particular time are a portfolio of

businesses – product lines, divisions, schoolsbusinesses – product lines, divisions, schools Management must decide which businesses to build, Management must decide which businesses to build,

maintain, or eliminate, or which new businesses to addmaintain, or eliminate, or which new businesses to add Organizations can create strategic business units Organizations can create strategic business units

(SBUs) which could be a single product, product line, or (SBUs) which could be a single product, product line, or divisiondivision

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The Marketing Management ProcessThe Marketing Management Process

Complete Strategic PlanComplete Strategic Plan Facilitates development of marketing plans for each Facilitates development of marketing plans for each

product, product line, or division of the organizationproduct, product line, or division of the organization Marketing plan serves as a subset of strategic planMarketing plan serves as a subset of strategic plan

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The Marketing Management ProcessThe Marketing Management Process

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

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The Marketing Management ProcessThe Marketing Management Process

Strategic Planning and Marketing PlanningStrategic Planning and Marketing Planning

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The Marketing Management ProcessThe Marketing Management Process

Situation analysisSituation analysis Cooperative environmentCooperative environment Competitive environmentCompetitive environment Economic environmentEconomic environment Social environmentSocial environment Political environmentPolitical environment Legal environmentLegal environment

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The Marketing Management ProcessThe Marketing Management Process

Marketing planningMarketing planning Establishing marketing objectivesEstablishing marketing objectives Selecting the target marketSelecting the target market Developing the marketing mixDeveloping the marketing mix

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The Marketing Management ProcessThe Marketing Management Process

Implementation and control of marketing planImplementation and control of marketing plan Implementation involves putting the plan into action and Implementation involves putting the plan into action and

performing marketing tasks according to the predefined performing marketing tasks according to the predefined scheduleschedule

Controlling involves three basic stepsControlling involves three basic steps Measuring results of implemented marketing planMeasuring results of implemented marketing plan Comparing results with objectivesComparing results with objectives Making decisions on whether plan is achieving objectivesMaking decisions on whether plan is achieving objectives

Marketing information systems and marketing Marketing information systems and marketing researchresearch Need for current, reliable, and valid informationNeed for current, reliable, and valid information

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

Strategic planning is a top-management responsibilityStrategic planning is a top-management responsibility All strategic planning has marketing implicationsAll strategic planning has marketing implications Marketing objectives and strategies must be derived Marketing objectives and strategies must be derived

from the strategic planfrom the strategic plan Planning done in all functional areas of the Planning done in all functional areas of the

organization should be derived from strategic planorganization should be derived from strategic plan

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

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Appendix – Portfolio ModelsAppendix – Portfolio Models

Portfolio Theory – Experience Curve and Resulting ProfitPortfolio Theory – Experience Curve and Resulting Profit

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Portfolio Models – BCG ModelPortfolio Models – BCG Model

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Portfolio Models – The General Portfolio Models – The General Electric ModelElectric Model

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Portfolio Models – The General Portfolio Models – The General Electric ModelElectric Model