Overview of Marketing Concept - Tagged PDF

OVERVIEW OF THE MARKETING CONCEPT MKT 320F Professor Stephen M. Walls Welcome & Announcements Pre-Class Materials Q&A Forum We are on Unit 1 – Overview of the Marketing Concept Activities for Unit 1 due by this Friday (11:59pm) (50% off if late; 0 if late more than 2...

OVERVIEW OF THE MARKETING CONCEPT MKT 320F Professor Stephen M. Walls Welcome & Announcements Pre-Class Materials Q&A Forum We are on Unit 1 – Overview of the Marketing Concept Activities for Unit 1 due by this Friday (11:59pm) (50% off if late; 0 if late more than 24 hours) Class videos will typically be posted within 24 hours after class session Today Cuties Spotlight What is included in the Marketing Strategy Framework? How did we get to think about Marketing the way we do today? Unit 1 Learning Objectives Summarize and explain the purpose of marketing in the organization (to grow revenue for the organization) and the basic marketing concept (understand what customers would value and facilitate the organization in delivering that value). Distinguish among the four main firm orientations and their historical connections: production, sales, marketing, and societal marketing. Describe the overview of the marketing discipline, based on the Framework of Marketing Strategy, and the key elements of a situation analysis (5 Cs), aspiration decisions (STP or marketing strategy), and action plan decisions (4 Ps). Discuss how a customer centric approach in the organization includes factors and perspectives that affect our understanding the customer, building a customer- centric culture, and serving the customer. Describe the basic elements of a marketing plan and how the plan relates to strategic marketing objectives. BIG WAR OVER THE SMALL FRUIT Foundations of Marketing Professor Stephen M. Walls What is your experience with Cuties? Marketing Strategy Formation Process SO, WHAT ALL IS INCLUDED IN OUR MARKETING STRATEGY FRAMEWORK? Foundations of Marketing Professor Stephen M. Walls Marketing Strategy Formation Process Marketing Strategy Formation Process - Analysis What is happening in the world (Context) that affects: people who might be our Customers our Company’s ability to be competitive entities we might Collaborate with, and our Competition? Marketing Strategy Formation Process Marketing Strategy Formation Process Aspiration Decisions Who should we try to serve across a marketplace and with what value in order to be the most competitive we can? Aspiration Decisions STP - Common Segmentation Variables Aspiration Decisions STP - Effective Positioning Statements 1. Target customer(s) 2. Wants of the customer(s) 3. Product type & category, as understood by customer 4. Key benefit to be provided to target customer To urban dwelling, educated, techno-savvy consumers who worry about the environment that future generations will inherit, Zipcar is the car sharing service that lets you save money and reduce your carbon footprint, making you feel you have made a smart, responsible choice that demonstrates your commitment to protecting the environment. What Motivates a Customer to Take Action? Unsatisfied Needs & Wants Needs – underlying state of felt deprivation for basic items such as food and clothing and psychological needs such as belonging. I am thirsty! Wants - form that a human need takes as shaped by culture and individual personality. I want a Gatorade! NEED? Maslow’s Hierarchy of Needs Marketing Strategy Formation Process Marketing Strategy Formation Process Action Plan Decisions Based on who we are targeting and the value we want to create, how do we actually create that value through the tools we have across the organization? Action Plan Decisions So, what will satisfy needs? Products - anything that Services - activities or Experiences – events or can be offered to a market benefits offered for sale occurrences that leave an for attention, acquisition, that are essentially impression on someone use or consumption and intangible and does not and often consists of that might satisfy a need result in the ownership of multiple products and/or or want. anything. services. Examples: iPad, Examples: banking, Examples: concerts, toothpaste airlines, haircuts, and restaurants/cafes, hotels amusement parks Action Plan Decisions Products, Services, & Experiences New & improved “existing” product/service/experience Addition to existing product/service/experience line Initial entry into a product/service/experience category Action Plan Decisions Promotion – Six M Model 1. Market How can we tell customers what we want them to know about the value we are 2. Mission creating for them? 3. Message 4. Media How can we engage customers in 5. Money conversations to learn more about their 6. Measurement needs & build long-term relationships? Action Plan Decisions Promotion - Characteristics of Communication Options Action Plan Decisions Promotion - Characteristics of Communication Options Action Plan Decisions Market Channel Tasks How can we create and deliver value through the channels we use for customers to learn about our offerings, purchase our offerings, receive necessary or helpful services, and connect with others? Action Plan Decisions Key Inputs to Pricing Decisions How do we price our offerings in a way that creates a perception of good value from customers and increases revenues & profits for the company? Marketing Strategy Formation Process Marketing Strategy Formation Process - Outcomes It’s great to satisfy and make people happy, but to what end? What outcomes do we want for the success of the company that come from maximizing value to our targeted customers? Driving Outcomes Framework Linking Marketing Actions to Customer Lifetime Value & Company Value Why is Marketing so important? By virtue of who and what is involved: Everyone is involved somehow, at multiple levels Enormous levels of resources are at stake Competition is fierce Balancing needs of various stakeholders: Customers Investors/shareholders Employees Community Society To drive revenue growth for the organization Marketing Strategy Formation Process HOW DID WE GET TO THINK ABOUT MARKETING THE WAY WE DO TODAY? Foundations of Marketing Professor Stephen M. Walls What company that you know of has a strong Societal Marketing approach? A Quick History Lesson Four Marketing Management Philosophies Orientation Focus is on… Production internal capabilities of the firm aggressive sales techniques and belief Sales that high sales result in high profits satisfying customer needs and wants while Market meeting objectives satisfying customer needs and Societal wants while enhancing individual and societal well-being Four Marketing Management Philosophies Orientation Focus Production What can we make or do best? Sales How can we sell more aggressively? Marketing What do customers want and need? Societal What do customers want/need, and how can we benefit society? What company that you know of has a strong Societal Marketing approach? What does [our chosen company] do that is evidence of Societal Marketing? Sales vs. Market Orientations What is Marketing? Some key questions we consistently ask: Who are our customers? How do we discover and satisfy their needs? … and do so better than competitors… … while remaining profitable… … in the short term and long term… … in an ethical & responsible manner HBP – 6 Parts of Marketing Process Marketing Strategy Formation Process What company that you know of has a strong Societal Marketing approach? What does [our chosen company] do that is evidence of Societal Marketing? QUESTIONS?