Marketing Management MKTG 1030 Lecture 1 PDF

Welcome to Marketing Management MKTG 1030 Class1: Introduction Steve Pulver 1 Course Review & What is it? Targeting, The Marketing Positioning, Plan Segmentation Personal Understa...

Welcome to Marketing Management MKTG 1030 Class1: Introduction Steve Pulver 1 Course Review & What is it? Targeting, The Marketing Positioning, Plan Segmentation Personal Understanding Branding The Consumer MARKETING Promotion MANAGEME Marketing NT Research MKTG 1030 Distribution Branding Pricing & Sales Midterm Exam New Products 2 What is marketing? Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large —— American Marketing Assn Copyright Flatworld 2023 3 What is Marketing? Creating Communicatin g Valu e Exchanging Delivering Copyright Flatworld 2023 4 What is Marketing? There are four components of marketing Creating Communicating Delivering Exchanging The traditional way of viewing the components of marketing is via the four Ps Promotion Product Place Price Copyright Flatworld 2023 5 What is Marketing? We will be going beyond the traditional way of viewing the components of marketing and look at 7 Ps Value Proposition Positioning People Promotion Product Place Price Copyright Flatworld 2023 6 What is Marketing? Value Proposition Product Promotion Benefits buyers receive that Communicati Creating meet their needs while ng considering The price they pay and what they have to go through to receive the benefit Valu e Positioning how your offering’s product, price, promotion and place compare to others in the marketplace Exchanging Delivering People Price Place Targeting Copyright Flatworld 2023 7 Ways to Go to Market Productio Companies competed by reducing n production costs Orientatio Mass-produced products at a minimum cost n Gave rise to the production era Companies pushed their products by heavily emphasizing advertising and Selling selling Orientatio Use of persuasion techniques to convince n consumers Price was paramount Gave rise to the selling era Companies focused on product innovation Product Customer is king Orientatio Focus on fulfilling customers’ needs n Gave rise to the production era Copyright Flatworld 2023 8 Marketing Eras Companies emphasize creating value Value Value for customers era era Customer-centric Companies compete by building One-to-one One-to-one relationships with customers one at a era era time and seek to serve each customer’s needs individually Marketing is transforming complete Transformati Transformati companies and products to serve ve ve era era customers more completely Copyright Flatworld 2023 9 What is Marketing? We will be going beyond the traditional way of viewing the components of marketing and look at 7 Ps Value Proposition Positioning People Promotion Product Place Price Copyright Flatworld 2023 10 Creating Offerings That Have Value Price Intangibl e service Tangible good Copyright Flatworld 2023 11 Value Proposition It is a succinct statement of why consumers buy your brand Example s “We make safe durable cars that handle well” “Delivering performance for all levels of golfer” “Quality, style and sustainability” Copyright Flatworld 2023 12 What is Marketing? We will be going beyond the traditional way of viewing the components of marketing and look at 7 Ps Value Proposition Positioning People Promotion Product Place Price Copyright Flatworld 2023 13 Positioning Your product’s positioning is the DIFFERENTIATED (distinctive) place that it occupies in the MIND of your target customers GOOD positioning is (i) COMPELLING, and (ii) DIFFERENTIATED Copyright Flatworld 2023 14  Positioning Map — Cell Phones High Performance Lo High w Prestige Low Copyright Flatworld 2023 15 What is Marketing? We will be going beyond the traditional way of viewing the components of marketing and look at 7 Ps Value Proposition Positioning People Promotion Product Place Price Copyright Flatworld 2023 16 People Who is your target customer or consumer? Why is identifying your target important? What happens if you don’t identify your target correctly? Copyright Flatworld 2023 17 What is Marketing? We will be going beyond the traditional way of viewing the components of marketing and look at 7 Ps Value Proposition Positioning People Promotion Product Place Price Copyright Flatworld 2023 18 Promotion? It is how you create awareness for your product or service Ways to do that Advertising include ： on the web, TV, billboards, or magazines Product placement in movies and on TV Social Media Earned Media Event Marketing Sponsorship Copyright Flatworld 2023 19 What is Marketing? We will be going beyond the traditional way of viewing the components of marketing and look at 7 Ps Value Proposition Positioning People Promotion Product Place Price Copyright Flatworld 2023 20 Product (or Service) A product is any item, or service that is sold to satisfy buyers want, need or both There are many kinds of products and services available, and I would like you to think about them in these terms ： Branded Unbranded 21 What is a Brand? What is a Brand? It is a unique name/image for an offering in MIND of the target segment that promises a significant and differentiated benefit What does a Brand allow a marketer to do? It allows a marketer to command a higher price, or deliver more volume than competitors, at a parity price 22  What are Unbranded Products and Services? Unbranded products are often commodities Sand Lumber Nail Salon 23 What is Marketing? We will be going beyond the traditional way of viewing the components of marketing and look at 7 Ps Value Proposition Positioning People Promotion Product Place Price Copyright Flatworld 2023 24 Place (or Distribution) More than simply getting the product into the Deliverin Deliverin hands of the user g g an an Making sure that the user understands how to offering offering get the most out of the product and is taken care of if he or she requires service late Value is delivered in part through a company’s supply chain: Value Value Includes a number of organizations and functions that mine, make, assemble, or deliver materials and products from a manufacturer to consumers The actual transportation and storage of Logistics Logistics materials and products The primary component of supply chain management Copyright Flatworld 2023 25 What is Marketing? We will be going beyond the traditional way of viewing the components of marketing and look at 7 Ps Value Proposition Positioning People Promotion Product Place Price Copyright Flatworld 2023 26 Price What will the customer pay? What are the competitors charging? What are the costs? What is our desired margin? (% and $) Copyright Flatworld 2023 27 Why is Marketing Important? Everyone does some form of marketing Even individuals (e.g., resume, clothing, LinkedIn profile) This course will focus on businesses We will have a session on personal branding in week 11 Copyright Flatworld 2023 28 What are the Career Opportunities in Marketing? Branding Customer satisfaction Pricing Public relations Strategy Marketing research Merchandisin Sales g Advertising Product development Direct Digital media marketing Event marketing Non-profit marketing Copyright Flatworld 2023 29 What is Strategy? Extremely simple, yet very difficult at the same time It’s how you get what you want Starts with Objective Setting 30 What is Strategy? The Objective is what you are trying to achieve I want to get to LA as fast as possible How should I go? I want to get to LA and visit my cousin in Buffalo on the way How should I go? 31 What is Marketing Strategy? The Objective of a marketing strategy is to turn people in your target group into customers/consumers Copyright Flatworld 2023 32 How Do You Develop a Marketing Strategy You look at the external environment Secondary Primary Research Research Databases Interviews/surveys Trade journals with customers and consumers Copyright Flatworld 2023 33 How Do You Develop a Marketing Strategy You look at the internal environment Secondary Primary Research Research Business results Interviews/surveys Interviews/surveys with customers and with employee consumers Copyright Flatworld 2023 34 Use Analytical Frameworks- SWOT Analysis Internal Factors External Factors Strengths Opportunities Firm’s Brand Name Demand for Product and Resources Size of Market Weaknesses Threats Low Product Awareness Bad Economy Poor Facility Location Competitors Copyright Flatworld 2023 35  Assessing the Internal Environment Companies can use their strengths to capitalize on opportunities and develop their competitive advantage Companies must refer to their mission statement and objectives as well as external factors such as social trends and competitors to better understand consumers, develop their future actions, and improve the odds they will be successful Managers need to examine both the past and current strategies to determine what strategies succeeded and which ones failed Copyright Flatworld 2023 36 Internal SWOT Analysis Strengths Weaknesses Financial Competitive position Market position Organization structure Patents Supplier dependency Management Product line Costs Brand awareness Actions Actions required: required: Capitalize Capitalize on on aa strength strength Address Address aa weakness weakness Copyright Flatworld 2023 37  Assessing the External Environment Analyzing the external environment involves tracking conditions in the macro and micro marketplace Macro environment Micro environment Economic factors Competition Demographic trends Suppliers Cultural and social trends Marketing intermediaries Political and legal regulations (retailers, wholesalers) Technological changes The public The price and availability of The company natural resources Customers Copyright Flatworld 2023 38 External SWOT Analysis Opportunities Threats Global markets Economic contraction Enabling technologies Government Growing consumer regulations wealth Social and political Currency exchange changes rates Trade barriers Government spending Taxes and mandated expenses Actions Actions required: required: Stay Stay informed informed on on global global markets marketsand andissues issues Anticipate Anticipate and and prepare prepare for for government governmentactions actions Monitor Monitor technology technology advances advances Copyright Flatworld 2023 39 The Competitive Environment Potential Both nonprofit and New Supplier for-profit Entrants organizations compete for customers’ resources An industry is a Competitive Rivalry group of competitors (Direct Competitors) that provide similar products Michael Porter Bargaining developed an Power of Substitutes approach for analyzing industries Buyers called the Five Forces Model Copyright Flatworld 2023 40 Competitive Analysis When a firm conducts a competitive analysis, it focuses on direct competitors and tries to determine their strengths and weaknesses, image, and resources Competitive analysis involves looking at any information available on competitors. Another means of collecting competitive information utilizes mystery shoppers According to Porter’s Five Forces, organizations must consider the strength and impact the following could have: Substitute products Potential entrants in the marketplace The bargaining power of suppliers The bargaining power of buyers Copyright Flatworld 2023 41 PESTEL Analysis POLITICAL ECONOMICAL SOCIAL Fiscal policy GDP Demographic Government Employment rate variables activity Exchange rate Cultural factor Conflicts/help Inflation Religion Taxes Income level Lifestyle Education level TECHNOLOGIC ENVIRONMENT LEGAL AL AL Technological Environmental Wages access policies Rights Infrastructure Recycling job security Research Consumption Regulations Technology trends trends Controlled of Production marketing processes Natural risks Copyright Flatworld 2023 42 The Political and Legal Environment All organizations must comply with government regulations and understand the political and legal environments in which they do business Different government agencies enforce regulations that have been established to protect both consumers and businesses. For example, the Sherman Act (1890) prohibits U.S. firms fromFederal The restraining trade Trade by creating monopolies and cartels Commission (FTC) regulates deceptive advertising The Food and Drug Administration (FDA) regulates labeling of consumable products such as food and medicine Copyright Flatworld 2023 43 Competitive Analysis Economic factors include variables such as Inflation Unemployment Interest rates Whether the economy is in a growth period or a recession Inflation occurs when the cost of living continues to rise and erodes the purchasing power of money During a recession, it is possible for both high-end and low-end products to sell well Copyright Flatworld 2023 44 The Demographic, Social, and Cultural Environments The demographic and social and cultural environments are constantly changing the global marketplace They include: Social trends (such as people’s attitudes toward fitness and nutrition) Demographic characteristics (such as people’s age, income, marital status, education, and occupation) Culture, which relates to people’s beliefs and values Copyright Flatworld 2023 45 Technology Technology changes the way people communicate and the way companies do business Marketers increasingly use online ads and mobile marketing Organizations must adapt to new technologies to succeed Copyright Flatworld 2023 46 The Competitive Environment Natural resources are scarce commodities Consumers are becoming increasingly aware of this fact Green marketing involves marketing environmentally safe products and services The marketing is done in a way that is good for the environment Green marketing not only helps the environment but also saves the company money 47  What is a Marketing Plan? It is a comprehensive, detail oriented document designed to: a) Sell your plan to an audience, b) Provide details of the project you are working on; and c) Ask for feedback or approval to proceed 48  Executive Summary Objectives Your Group Research Findings & Project Methodology Brand Architecture Communication Plan 49 Executive Summary This is done after you have written your marketing plan You need to know exactly what you are going to say before you summarize it If you write it before you write the document, it is an outline, not a summary Objective Tell the story leading with numbers so that it can be read and understood in a minute or two Get key decision-makers engaged quickly 50 Objectives 1 What are the objective(s) of the firm? What is the strategy for the firm? Feel free to use the frameworks provided, but only the conclusions should be in the body The frameworks and analysis in an app What are the objective(s) of the 2 project? Are 1 and 2 aligned? How are they aligned? 51 NOW IT’S TIME FOR THE PLAN DETAILS 52 Research Findings & Methodology Detail your proof points for why facts support the recommendation you will be presenting Describe the research method(s) you used How you developed the questionnaire and/or interview guide How you obtained your sample, and any issues you encountered in your data collection 53  Value Proposition Must be articulated explicitly, but must resonate throughout all elements of your plan 54 Overall Architecture Section A: Section B: Section C: DIMENSION DESCRIBE ASSESS RECOMMEND 1. Who is the target Is the target If yes, provide PEOPLE customer? customer evidence to make the appropriate? (Key case for no change. Principle: size and If no, then provide a reference power) detailed and creative recommendation. 2. What is the What is its ACTUAL If actual is compelling, POSITIONIN brand’s DESIRED positioning based provide evidence to G positioning in the on your customer make the case for no market? (based surveys? Is the change. on ads; actual positioning If actual is not interviews etc.) compelling? compelling, then provide a detailed and creative recommendation. 3. What are the key Are the product If yes, provide PRODUCT product features features and levels evidence to make the and levels? aligned with the case for no change. DESIRED If no, then provide a positioning? detailed and creative recommendation. 55 Overall Architecture Section A: Section B: Section C: DIMENSION DESCRIBE ASSESS RECOMMEND 4. What is the Is the Retail selling If yes, provide PRICE Retail Selling price and the long- evidence to make the Price? What is term pricing case for no change. the long-term strategy aligned If no, then provide a pricing strategy? with the DESIRED detailed and creative positioning? recommendation. 5. What is the mix Is the mix of If yes, provide PROMOTION of promotional promotional tools evidence to make the tools that is aligned with the case for no change. being used? DESIRED If no, then provide a positioning? detailed and creative recommendation. 6. Where is the Is our choice of If yes, provide PLACE customer buying channels aligned evidence to make the our product? with our DESIRED case for no change. positioning? If no, then provide a detailed and creative recommendation. 56 People Who is the target customer and/or consumer? Demographics, Psychographics, Geography Why is this the correct target? What facts prove this? 57 Positioning What are the key attributes in the category your product or service is competing in? How do you know this is correct? How does the competition compare on these key attributes? 58 Positioning If the product’s positioning in the market vs. competition is sub optimal, what do you need to do to deliver it to an optimal positioning? What is your plan to reposition it 59 Product What are the product’s key attributes? How do you know this is correct? What do you need to change in the product to deliver the key attributes required? How do you know this is correct? 60 Price What is the product’s retail price and wholesale price? Is the wholesale price attractive enough to the distribution channel to carry and support you? Is the retail selling price competitive? Is the retail selling price consistent with your product’s positioning? What is your proof of the above three statements? 61 Place What channel(s) are the product sold in? What is the volume split by channel? Is it a challenge to get trade support? Is there an opportunity to expand distribution? What are the keys to success in each trade channel? What is your proof of all of the above? 62 Promotion What are the key promotional tools to use in the business? Media Creative Experienti Offine Offine al Online Online 63 Creative Objective Strategy Online Online Plan Objective Strategy Offline Offline Plan 64 Media Objective Strategy Online Online Plan Objective Strategy Offline Offline Plan Cost 65 Experiential Objective Strategy Plan 66 Key Takeaways 1. Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large 67 Key Takeaways 2. Strategy is how you achieve your objectives 3. Tactics are the activities you use to communicate your strategy to the customer and consumer 68 Key Takeaways 4. There are many aspects of marketing which are captured in the 7Ps 5. This course will go into depth on the 7Ps and will culminate in the development of a marketing plan for the brand your group chooses to work on 69