Marketing Strategies and Innovation

• MKT337 is a marketing course.

Lecture 1: What is Marketing?

• This is a fundamental business aspect.
• Marketing thesis: marketing is something everyone witnesses and is built on numbers.
• Businesses will suffer without marketing.

Marketing Vocab and Questions

• What does your own definition of marketing look like?
• Product
• Sales
• Market
• Societal
• Why is Nike struggling?
• Why are Hokas taking over?

Marketing Management Philosophies

• Companies can use all four philosophies simultaneously or change between them.
• Product: What does the business have as its offering?
• Sales: Pushing aggressively to meet numbers.
• Market: Based on who you are selling to and customer wants/needs.
• Societal: Products must help society via recycled materials.

Sales vs Market Organizations

• Sales:
  • Less personable.
  • More demanding.
  • "Take me to Jacksonville."
• Market:
  • More personable.
  • Includes more details.
  • "Going to moms for Christmas."

Nike

• Is failing for the following reasons
  • Failing to innovate
  • Failing to fix ethical issues
  • Failing to lorry products back on the shelf
  • Fighting against Hokas and Ors
  • Losing market share and needs to get it back

Chapter 2: Strategic Planning for Competitive Advantage

• Frameworks matter to business, are repeatable, easily communicated, facilitate strategy formulation, and align priorities.
• Every business has a strategy, but only great businesses execute strategy.

Strategic Planning

• Managers create a process for maintaining a fit between organizational objectives and resources alongside evolving market opportunities.

Strategic Business Units (SBU)

• These units are smaller businesses within a larger company's operations.
• Business units operate separately from the parent company, with different mission statements.

Strategic Marketing: Main Questions

• What is the organization's main activity at a specific time?
• How will the organization reach its goals?

Ansoff's Strategic Opportunity Matrix

• This matrix compares current and new products with current and new markets to create four strategies.
• Market Penetration: Grow market share for products/customers.
  • Chipotle: Earn points for every dollar spent and reach 1,250 points for a free meal.
• Market Development: Attract new customers to existing products.
  • Casey's: Plans to open 350 new stores over a few years.
• Product Development: Improve existing products or design new ones for existing markets.
  • Heinz: Creates four new spicy sauces.
• Diversification: Introduce new products to new markets.
  • PepsiCo markets fruit juice, Gatorade, and water alongside soda.

Innovation Matrix

• Core (Current, Current): Incremental changes companies make to existing customers.
  • Charge in packaging or slight reformulation.
• Adjacent (Emerging, Current): Innovations based on existing capabilities in new ways.
  • Swiffer: Released a dry mop alongside the regular mop.
• Transformational (Emerging, New): New products or new markets that disrupt the market.
  • Dyson: Made a wireless vacuum.

Portfolio Matrix

• Managers plot each business unit/brand/product by industry growth rate and relative market share.
• Stars: High market share, high growth markets; need cash inflows for growth.
  • Strategy: Invest more funds for growth.
• Cash Cows: High market share, low growth; maintain status and generate cash to fuel others, maintain market dominance by being a price leader.
  • Strategy: Milk profits to finance the growth of stars and question marks.
• Question Marks: Problem children, low market share, high growth.
  • Strategy: Invest funds or consider divesting. great potential if invested in right.
• Dogs: Low market share, low growth.
  • Strategy: Divest or withdraw, sold to other companies.

Strategies

• Build: Use financial resources when low market share in a high-growth market and the product has potential to become a star.
• Hold: Maintain high market share in a low-growth market and milk cash flows.
• Harvest: Reap profits without concern for the long run, is good for problem children, cash cows, and dogs.
• Divest: Used for dogs and sometimes problem children when divesting SBU with low share in low-growth markets.

General Electric Model

• This looks at market attractiveness and company strength

Business Position of General Electric Model

• This looks at How strong the company is against its competitors and if the SBU has the market share.
• Does it have a competitive advantage?
• Does SBU have the tech needed to penetrate the market?

Market Attractiveness of General Electric Model

• Looks at Market size, Profitability, and growth-rate?
• Companies might enter power of suppliers and buyers and charges in demand to analyze potential.
• Low Attractiveness = AVOID
• High= Invest
• Middle = Cautiously invest

Strategy Tips

• Once the strategy is determined, create a marketing plan.
• The marketing plan should be flexible.

Mission Statement Steps

• It should not be too broad or too narrow.
• Marketing Myopia: defining business in terms of goods sold instead of benefits customers seek.

SWOT Analysis

• Analyze the strengths, weakness, opportunities, and threats.
• The goal is to create strategic objectives that fulfill a firm's basic mission.

SWOT Framework

• Strengths:
  • Core competencies.
  • Financial resources etc.
• Weaknesses:
  • Factors that put the company at a disadvantage.
• Opportunities:
  • Launch new products and more.
• Threats: -Limit the ability to reach objectives etc.
• S: What does your company excel at?
• W: Where do you need improvements?
• O: Where can you grow?
• T: Who or what poses a risk to your success?

Competitive Advantage

1. Cost: Companies with low cost, good profit margins, to achieve.

• Experience Curves: Decline in cost with the increase of product.
• Efficient Labor: Reducing labor cost in low-skill industries, offshoring
  • No-Frills Goods and Services: Removing extra features.
  • Government Subsidies: Loans and grants.
  • Product Design: Utilizing Tech to offset high labor costs.
  • Reengineering: rethink to improve the business process.
  • Production Innovation: simplifies Production can lower costs
  • New methods of Service delivery: online services or convienent way

2. Product/Service Differentiation: More than just low price.

• High brand name recognition and outstanding service.

3. Niche:

• Target small market.
• Good for companies with smaller amounts of resources and reduces competition.
• Cannot be copied by competition

Marketing Objectives should be

• Realistic, attainable
• Measured quantitatively.
• Time Specific: Set a deadline.
• Compared to a benchmark: baseline for measurement

Selecting a market strategy

• It is a company wide program for
• Must have a target market and satisfying group
• The Target market must design everything to stay relevant
• Market Segment: are Individuals that share similar characteristics

Strategies to Target Markets:

• Apply one mix with the whole market
• Concentrate on one segment with one mix only
• Appeal to different segments with multiple mixes

Marketing Mix (4Ps)

• Blend of product, place, promotion, and pricing to reach a target audience.
• Product: Customer service, Package design and more
• Place (Distribution): select what is best for target Can ose integrated markadang approach-
• Price: Flexible

Outline for marketing plan

• What are the objectives
• What is the current Situation
• What needs to be done
• What you need to change in strategy
• How to change the strategies

Chapter 5: Global Marketing

• Global Vision: Recognize international opportunities and use global marketing strategies.

Free Trade

• Selling in countries without restrictions.

Protectionism

• A nation protects its home industries by restricting trade.

Gross Domestic Product (GDP)

• Sum of all goods and services produced by a nation in a year.

Outsourcing

• Sending U.S. jobs abroad.

Inshoring

• Returning production jobs to the U.S.

Multinational Corporations

• Companies heavily engaged international trade.

Capital Intensive

• Using more capital than labor in the production process.

Global Marketing Standardization

• Production of uniform products that sell globally the same way.

Multidomestic Strategy

when multinational firms enable individual subsidiaries to compete independently in domestic markets with varied products.

Balance of Trade

difference betweenthe value of a country's exports and the value of imports over a period

Balance of Payments

difference between a country’s total payments to other countries and its total receipts from other countries

Tariff

tax levied on goods entering a country

Quota

limit on amount of product that can enter a country

Boycott

exclusion of all products from certain countries or companies

Exchange Control

regulates international trade among importing organizations by controlling access to foreign currencies

Market Grouping (Common Trade Alliance)

Several countries agree to form a common area.

World Bank

• International bank offering low-interest loans, advice, and information to developing nations.

International Monetary Fund (IMF)

• Acts as a lender of last resort and promotes trade through financial cooperation.

Group of Twenty (G20)

• Forum for international economic that promotes discussion through industrial and issues related to global economic stability

Joint Ventures

Why do Nations Trade?

1. Absolute Advantage– when a country can produce and sell a product at a lower cost than any other country
2. Comparative Advantage– A country specializes in products that readily and cheaply and can be traced.

Free Trade

• Necessary for access to products not produced in home countries.

Protectionism

• Aims to product home industries from outside competitors

Global Business Development

1. Companies operate in one country and sell products in others
2. Companies set up foreign subsidiaries to handle sales in another country
3. Companies operate an entire line of business in other countries
4. companies operate virtually with executives and corporate functions in different countries

culture

• Marketers need to use the appropriate language to make sure the message is translates correctly.

Political Structure and Actions

• extends intellectual property protectors, more digital trade processes
• sets mechanisms resolve trade disputes amoung countries
• increase Auto parts Manufacturing in NA
• require Mexico bass Laws improving capabilities of labor Unions
• Monitors international trade disputes.

WTO Organization

• Works to reduce trade barriers throughoout the world
• Mediates trade disputes -serves as form for trade negations

Demographic Makeup

Wealth and Population determinant of Customers market -3 groups generate about half the world’s Consumption growth - Countries working age population - Retiring older adults in the developing countries - Chinas working age Population

Global Entry Methods

• Exporting: first step
• Licensing/Franchising: not always demand
• Contact Manufacturing: assign to local companies
• Joint venture: share risks/ costs management
• Direct investment: high involvement
• Exporting gives less risk
• Direct investment gives higher potential profits

Global Marketing Mix

Strategies

• One or more of the following:
  • Straight extension
  • product Adaption
  • promotion Adaption
  • Product Invention

What happens in each strategy type:

1. Product and messaging is the one.
2. New product from market of drastically changing product
3. Altering basic product to meet local condition
4. Product stays the same but promotion changes with the language of consumer

Pricing

Exchange rate ore country's conciency another • Floating- Exchange rales • Dumping:

• low prizing
• when country charges more at home then oversees • countervailing Duty:
• offset subsidy - foreign exporter

Global Logistics

• Ecommerce puts you into international domain •Creates wealth of individual's society: raise standards of living
• thirile about protectionism. What does a compry need to participate in global marketing?
• geography, truasturthy • steedility, sounos/sunivar Ideology. -What does a company need to have globel mint?
• nude of cantones, cement interational market, how to find, know albt culture

Chapter 6: Consumer Decision Making

• Marketing reduces friction (impediments to a goal), friction includes both sociology and psychology
• Barriers are the biggest issues here

Consumer Buying Behaviors

• The ultimate buyer/house hold
• Value - personal assessment
• Utilitarian value - help solve something
• Hedonic Value - what we give for
• Value - what you expect to get
• Want stimulus, triggers to want the item more
• Nudge intervention to change behavioral

customer Summary

• Is about what’s most important to you
• Think about fulfilling dreams
• reduce barriers/ add value to make it easier

Consumer Summary

• Look at what is mparten for
• Consider if that target is worth pushing more

value

• value received from a purchase
• Utilitarian Value
• Hedenic vaule

5. step process used by consumers when buying goods/services

1. • Need recognition result of unmet need
2. Informtion search; to get the info you look up an item, online/ads
3. Evaluation of Alternatives- cut off the alternatives that they dont need
4. Purchase you buy
5. Post purhase behavior if not then you regret

• can cause a result buy or not buy again

Involvement tips

• involvement depend on previous interest
• high product has lots of emotion
• risk in financial/ social if its a high visual item

Marketing Types of high Involvement

• product is high demand of personel situation is when purchased in multiple places shopping is personnel buying

Chater 7: Business Marketing

• B2B
• Recruites and pro always wanted B2b From B2c have most Expierrence
• Marketing in humens most under

B2B

• Marketing goods/services to faciliatate
• not personaly for the consumption

Content Marketing

• Content valuable in relevant consistent that relate

B2b long tream reationships

• trust and commitment need with the customers to bring more

Derived demand in busing/products

• need in ordering produets that meet customers products
• joint product between to products in order to put b2b products together

B2b

• Direct use in producing other product
• used for daily

Marketing trends

• use to Communicate the new product
• increase branis
• Generate sales in the process

Metrics

Awareness; aftract followers

• engagment Interactions left
• conversion; Purchases

Strategic alliances

• commit trust for Business firms

Categories of costomers not content

• producers
• reselles
• Government
• institutions

the difference between consumer market

• technical
• wode of the selection

Byer markets

• Major Equiptment -

Accessories Equiptment

Phran matril - Agriculture

• component material

• pocessed material +business service

Business bying

• Buying centers all product in an orgaztion group
• imitiater- First suggested and used in process
• influencres_people who supply the information gatherep - controls information
• decider decide purchase
• purcheser

Evolution Citera

Quality technal side Service . customer service after pance - low when not sacrifice quailty Situasion

• new - new buy
• modifice
• straight byy

Busness Marketing

• what to give to people and what they asked for is more

Chap 8:

• segmenting and targeting Markets thesia" big marketing mistrakes occure that focused the compane and not consumerss "when all 3 things are great it would be the best segmentation/

• A place can come out that has wanted to go to

Merte

orginzation

• has wants and needs
• Has resrouces for product

Mertert segment

• has similar products

markeing

• Is diving makrets into many section for similarties
• should have indentifiable to all

good characeristics of the

1. • Should be large anought to developing markesting
2. the group should have dentifiabilty such as gender
3. • accessible is for the group to be reachable

• 80/20 rales
• 20 % customers make for 80 product

gargrpich

• look that you are at or how you are able to live demosph the group/age how there look
• paychogrpics - is how there infulences where as behaviour / what prod you buy and more you buy

Busness marking

_ volume of parhusen -

• what do you need to see to consider new markets

step for marking

select / product catergory choces base / segment and choose the 4 crutura select Segmentations Discripters identify the segamtn vaalbl 4- profile and analysis include siuc progess select matke what's the next step

What is the approapte to have maeketing in products -

• Unfferal has the same markets for markets

concertated

• Niche effort

Multi what you need 4 or what is to see CRM

is a what't tool in product that

• Personalizati
• tome Savings LO yalty

Techodkgy

Product Strategy to consider

• product diffiration product can sell with conpeators mapping Aritibutes Proce qualuty US pordy ct cimpacter

**how the product to do to the customert

ch 9 -Role of marketing research

"thesis:: marketing with planning needs to have with research in decision makingg

"research that tells to do marketing

"resever needs to tell what informataion is

The role marketing research

"Marketing objectives helps tell inffo that has to be reached and how to research to make ict done "*what is the big problems that lead problems

Marketing 7-Steps

1. formulated product /design products
2. plan research +primary data . trends
3. Spiffy Sompling proceding - sample the product
4. Collect primary data conduct + compare
5. Analyze data
6. prapore a report 7- follow upe

Condory Data

ad - saves Money /time

disadu

has nothing has set the product

primary

ads - anwers quest

dosau

"" expesnive ,, time consuming"

what to do

suevay /intvw /online etc

"" the Qs be concise

• aviod a lumbigous Language
• Only ask 1Q
• end" product design

Questions cover Ansoff's Matrix strategies like market penetration and expansion. Also covering types of innovation, societal marketing, and portfolio matrix principles. Testing understanding of business growth and marketing concepts.