02 f10 overview and strategy

8/6/2019 02 F10 Overview and Strategy

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BUAD 307MARKETING FUNDAMENTALS

MARKETING OVERVIEWAND STRATEGY


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Perner2BUAD 307 OVERVIEW AND STRATEGY


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Learning Objectives

Understanding The scope and basic objectives of

the marketing function

Customer value

The contrasting perspectives ofthe Marketing Concept and the

Selling Concept.

Appreciating the need of

firms for unique and specific

strategies based ontradeoffs and, unique

strengths, and market

conditions


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PernerBUAD 307 OVERVIEW AND STRATEGY

2007 American Marketing Association

(AMA) Definition

Marketing: The (1) activity, (2)

set of institutions, and (3)

processes for(4) creating, (5)

capturing, (6) communicating, (7)

delivering, (8) and exchanging (9)

offerings that have (10) value for

(11) customers, (12

) clients, (13)partners, and (14) society at

large. (Numbering added.)


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MARKETING

ACTIVITY PROCESSESINSTITUTIONS

CREATION COMMUNICATION DELIVERY EXCHANGE

OFFERINGS VALUE

CUSTOMERS

CLIENTS

PARTNERS

SOCIETY


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Value

Benefitsexamples Convenience

In delivery In usage

Reliability

Durability

Performance

Style/aesthetics

Prestige

Service component

Costsexamples Money

Time Risk

COST

RECEIVEDBENEFITSVALUE !


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Customer Value, Part I

Value is the ratio of the

benefits received (usually

goods or services) to what is

given up (usually money)

For a transaction to take

place, the benefits received

must usually be greater than

the sacrifice

Note that a high price product

may be a good value to the

customer even if a high priceis paid if the perceived

benefits received are higher


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Customer Value, Part II

A low priced product may not

represent value to a customer if

the benefits received are

perceived to be low, too.

Different customer segments will

have different value perceptions

A product which is adapted to

the needs of a particular

segment can be very valuable to

that segment even if the overall

quality is not seen as superiorby most other consumers

Cost may be in terms of money

or other sacrifice


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Value: Implications

A low quality, low price

product represents poor

value for many customers

A very high benefitproduct at a high price

can represent value for

some segments

Customer segments differin what they find valuable


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STRATEGY Strategy

Target markets

Related marketing mix: Product, distribution,

promotion, and price

Counterintuitive realities

Marketing, strategy, and the organization

Strengths, Weaknesses, Opportunities, and

Threats (SWOT) Analysis


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Strategy

Plan To achieve desired

objectives (e.g., profit,market share)

Based on availableresources (e.g.,financial, patents,trademarks, people,brand name/image ,distribution channels)

Subject to choices made(e.g., willingness to takerisk, short run vs. longrun goals)


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MARKETING STRATEGY

COMMON

SENSE

COUNTER-

INTUITIVE

REALITIES

EXPERIMENTATION/

EXPRIENCERESOURCES

ENVIRONMENT

PRIORITIES/

OPPORTUNITY

COSTSSTRATEGY


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Counterintuitive Realities

A firms product should not necessarilyappeal to the majority of customersit is

usually better to serve one segment well.

Large segments may not be attractive to

servethose attract a great deal of

competition It is usually not a good idea to closely

imitate successful competitors

If a competitor lowers its price and takes

market share away from you, the best

response may be to raise your price


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Marketing Strategy: Sequence

BUSINESS

MISSION

STATEMENT

OBJECTIVES

MARKETING

STRATEGY

SITUATION/

SWOT

ANALYSIS

IMPLEMENTATION

EVALUATION

CONTROL

PRODUCT

PRICE

DISTRIBUTION

PROMOTION

Adapted from

text, p. 16.


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REMINDER

It is tempting to try to

enlarge market share

by reaching out to new

targets but

Compromises inproduct design,

distribution, and

positioning will tend to

make the brand less

attractive to the coresegment

This will likely lead to

increased competitive

intensity


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Market Balance

Different firmsshould attemptto offerdifferentforms of value,

appealing todifferentcustomersegmentsotherwise,competition islikely todegenerate intopricecompetition

EASYTECH, LTD.

EASE OF

USE

BRUIN PRIDE, INC.

LOW

PRICE

TROJAN CREATIONS,

INC.

PERFORMANCE

PATIENCE-IS-STUPID,

INC.

SPEED

MICROGEEKS, LTD.

SMALL

SIZE

A WELL BALANCED

GADGET INDUSTRY


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Examples of Objectives

Profit level

Profit growth

Total unitsales

Growth in unit

sales Growth indollar sales

Total dollarsales

Brandperception bycustomers Value

Quality

Innovativeness

Reliability

Brand namerecognition

Brand namerecognition by productcategory

Product availability

Availability acrossretailers and otherdistributors

Store placement

Percentage of productssold at full price

Percentage of revenue

from new products Affordability of product

Elimination of unsafeproduct ingredients


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Strengths, Weaknesses, Opportunities, and

Threats (SWOT) Analysis

STRATEGY

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS


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SWOT--Microsoft

Strengths New Products

Windows 7

powerful; opportunity

to sell upgrades

Office 2010

applications

Technology

Market share

Barriers to entry

Brand name

Cash

Weaknesses Zune

Bing (search engine)

Opportunities

Bing (search engine) Windows 7 64 bits

Gaming

Threats Economic fluctuations

Apple

Image

Design

02 f10 overview and strategy

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