announcements reminders/updates –si workshops on wed., 7-9, 1c18 –case deadline is looming!...
TRANSCRIPT
Announcements• Reminders/Updates
– SI Workshops on Wed., 7-9, 1C18– Case deadline is looming! – Initial Idea for Marketing project due Feb. 7th!
Agenda• Review Cost-Volume-Profit Analysis• Marketing part of internal environment• Biggest challenges facing the Marketing Manager today?
Marketing trends?– The Marketing Relevance Imperative’
http://www.marketingtoday.com/marketing/0905/relevant_marketing.htm– ‘Here's to 2010: industry experts share predictions for the year ahead’
http://www.marketingmag.ca/english/news/marketer/article.jsp?content=20100111_150050_9384
Group Marketing Project• begin thinking about your idea as we work
through the marketing material
• http://www.ted.com/index.php/talks/view/id/70
• http://www.presentationhelper.co.uk/business/test_marketing_small_business_idea.htm
• http://sbinfocanada.about.com/od/businessopportunities/Business_Opportunities_Business_Trends.htm
• http://sbinfocanada.about.com/od/businessplans/a/quickbizplan.htm
Critical Success FactorsCritical Success Factors
StakeholdersStakeholders
Top Management
VisionVision
StrategyStrategy
MissionMission
Middle Management
First-Line Management
PlanningPlanning OrganizingOrganizing
DirectingDirectingControllingControlling
EXTERNAL INTERNAL
Economic
Social
Technological
Political
Marketing
Finance
Human Resources
Operations
Critical Success Factors (Indicators of Business Success)
Critical Success Factors (Indicators of Business Success)
• Achieving financial performance
• Meeting customer needs
• Building quality products and services
• Encouraging innovation and creativity
• Gaining employee commitment
What is Marketing?• Marketing is an “integrated system of activities designed to plan, price, distribute,
and promote, want-satisfying goods and services to present and potential customers.
“FIND A NEED A FILL IT”
Elements:Find a need Conduct researchDesign a product (including packaging, logo, CBP)Set a price and test Set up distribution systemDesign promotion Build relationships
How Marketing Creates Value
• Offer products/services that create utility** Ability of a product to satisfy a human need
• Four types of utility:– Time –– Place –– Ownership –– Form –
• Begins with understanding of customer wants and needs
Developing a Marketing Strategy1. Know the environment
• PEST + competition
2. Know the market – use market research to determine:• Market attractiveness• Market segmentation and target market
3. Develop marketing plan on basis of knowledge of target market• Marketing mix (product, place, promotion, price)
• must all send same message
4. Ensure entire organization shares Marketing Concept• customer orientation• training in customer service company-wide• profit orientation• total quality management
KNOW THE ENVIRONMENT/Market Attractiveness
• Economic & Technological Environment– Consumer spending - economic conditions – investment intensity - barriers to entry– industry capacity - access to suppliers– technology
• Political & Social Environment– regulation - social attitudes & values
• Competitive Environment– competitive structure - substitute products– price - competitor analysis
• Market Factors:– size/distribution - cyclicality– market gaps - consumer bargaining power– differentiation possibilities - growth
What un-met need are you satisfying?• Key to being successful is providing a want-satisfying
good or service.
• it must provide
Know the MarketWho is your customer and what does he
want?
Know your market – who is your customer?
Target Market– The– group that has
– the group of customers to whom
– a group of customers
Steps to defining Target Market:1. Market Segmentation2. Perceptual Mapping3. Preference Analysis
Market Segmentation– need to know what groups of customers exist
from which to choose a target market – involves splitting the market into meaningful
segments to determine what groups exist– Segments tend to be similar with respect to their
characteristics & what they want out of a product*...
• homogeneous needs
• homogeneous characteristics
• Bases for Segmentation:– state-of-being
– state-of-mind• psychographics –
– product usage• volume –
• purpose –
– benefits sought –
• Example:Ice Cream Market Benefit Segmentation
Segment Name
Benefit Sought
State-of-being
State-of- mind
Product Usage
Perceptual Mapping & Preference Analysis– how do the market segments perceive current
products– determine which of the segments will be the
target market– opportunity - find the biggest gap between how
the customer perceives the competition meets their needs…
• Steps:– draw axes that represent the relevant
dimensions by which people differentiate between product offerings
– locate the positions of competing products on the axes/dimensions according to customer perceptions
-– locate each segment’s ideal product
-– what is your target market?
Taste
Price
X Chapman’s
X Nestle
X Breyer’s
X Ben & Jerry’sX Haagen Dazs
X No Name Brand
Perceptual Map & Preference Analysis
Where is the greatest opportunity?
• Key to being successful is to convince consumers that the product provides that unique benefit
– Accomplished through your marketing mix
– Core Benefit Proposition/CBP
– clear concise statement of to ensure all elements of the marketing mix deliver same message
Marketing Plan/StrategyDetermining the marketing mix
Product• the creation of a good or service that provides greater value
to customers than previously existed
• Total Product Concept/ Value Package– features necessary to support CBP; value-adding
attributes– total package of benefits as seen from the eyes of the
consumer - everything they evaluate before deciding to buy something
• brand name, package, service, delivery, credit, atmosphere, image, reputation, accessibility, price
• Elements to consider:
Product Classification• Convenience goods -
– staples – – impulse -– emergency -
• Shopping goods -– homogeneous goods -– heterogeneous goods –
• Specialty goods -• Unsought goods –
* different markets classify products differently* important to see your product as customer does
Product Life Cycle – impacts marketing mix decisions
Sales
Time
Introduction
Growth
Maturity
Saturation
Decline
Intro. Growth Maturity Saturation Decline
Comp’n
Product
Price
Promotion
* new uses, new users - market modification* can also speed up cycle “planned obsolescence” - fashion/style, quality, (functional)
Product Development
• 5 types of product development– New-to-world– New product line– New product added to existing line– Improved product (product modification)– Lower-priced version of existing product
• Extending product life– Product extension – – Product adaptation –– Reintroduction –
Branding• “using symbols to communicate qualities of a product”
• communicate CBP
• Brand equity – degree of consumer loyalty & awareness
• move customer through stages of recognition» Non-recognition
» Brand recognition
» Brand recall
» Brand preference
» Brand loyalty
• Types of brand names– National - Private
Price
• cost-based, target profit– CVP Analysis!
• competitive-based
• value-based - “price-led”
• most important
Specific Strategies/Approaches– introductory pricing -
skimming/penetration
– market protection, or market domination– market stabilization - “follow-the-leader”– product line promotion, and price lining– customer attraction (building traffic)
– image enhancement - “psychological pricing”
Promotion
Promotional Tools:AdvertisingPersonal SellingSales PromotionPublicity
Integrated Marketing Communication / IMC
Any technique designed to sell a product Promotional Objectives:
- Communicating information, including CBP- Positioning products- Adding value- Controlling sales volume
Advertising• Objectives:
– communicate CBP– create AIDA (move customer through decision process)– Remind
• Advertising Strategies:– Informative advertising– Persuasive advertising– Comparative advertising– Reminder advertising
• Advertising Media:– Television - direct mail– Radio - magazines
How Advertising WorksHigh Involvement Low Involvement
Awareness - recall
Awareness - recognition
Attitude
Trial Behaviour
Trial Behaviour
Attitude
Repeat Behaviour Repeat Behaviour
Need recognition
Informationseeking
Eval. ofalternatives
Purchase decision
Post-PurchaseEvaluation
How Buyers Behaves
Advertising Communication
• Failure due to:– lack of source credibility
– message not encoded well
– message/medium inappropriate
Factors to Consider in Media Selection
geographic selectivity target selectivity flexibility/timeliness absolute cost length of life quality of reproduction creative ability capacity for detail
Personal Selling– more effective but more expensive– combine with advertising to:
– factors to consider in budget decision
Sales Promotion– short term incentives to induce purchase
• free samples, trial period
• cents off coupons, cash rebates
– support personal selling and advertising– support CBP
Public Relations & Publicity
• power of the Internet– http://www.canadianbusiness.com/technology/trends/article.jsp?
content=20060213_74332_74332
• online viral marketing– http://business.timesonline.co.uk/tol/business/industry_sectors/media/
article2138718.ece
• mobile devices– http://articles.moneycentral.msn.com/Investing/Extra/
TheRealThreatToGoogle.aspx
Promotion Trends
ManufacturerManufacturerAgentAgent
WholesalerWholesalerRetailerRetailer
CustomerCustomer
Place• purchase is a function of desire and availability
– logistical decisions costly, time consuming and not easily changed
– choice of location must fit with CBP– critical decision
• use of marketing intermediaries / channel of distribution
Decision determined by:• company
• market
• product
• Advantages
– provide information on market
– cash flow, credit risk
– convenient locations
– opportunity for comparisons
• Disadvantages
– M.S. R.P.
– reduced marketing effort
Using a Wholesaler
Overcoming the Disadvantages of a Wholesaler
– Push strategy• focus on
– volume, contribution» case allowances, volume discounts» contests
– Pull strategy
Relationship Marketing
– emphasizes lasting relationships– get more than product/service
Strategic significance?
Examples:
International Marketing
• Product – what needs to change?
• Price – domestic competitors? domestic costs?
• Promotion – consider
• Place– difficult to begin new network