marketing: building blueprints for business marketing: building blueprints for business

Marketing:Marketing:Building Building BlueprintsBlueprints

for Businessfor Business

Marketing:Marketing:Building Building BlueprintsBlueprints

for Businessfor Business

Many different types of marketersMany different types of marketers Packaged goodsPackaged goods


&&&&Marketers AdvertisersMarketers AdvertisersMarketers AdvertisersMarketers Advertisers Many different types of marketersMany different types of marketers Many different types of marketersMany different types of marketers



&&&&Marketers AdvertisersMarketers AdvertisersMarketers AdvertisersMarketers Advertisers

Durable GoodsDurable Goods Durable GoodsDurable Goods




ServicesServices ServicesServices





RetailersRetailers RetailersRetailers






High TechHigh Tech High TechHigh Tech







But they all have similar methodologies But they all have similar methodologies and organizations.and organizations.

But they all have similar methodologies But they all have similar methodologies and organizations.and organizations.

And moreAnd more And moreAnd more

High TechHigh Tech High TechHigh Tech




&&&&Marketers AdvertisersMarketers AdvertisersMarketers AdvertisersMarketers Advertisers This lecture covers:This lecture covers: The Marketing Function - 5 PsThe Marketing Function - 5 Ps The Marketing DepartmentThe Marketing Department

Organizational StructureOrganizational Structure Types of JobsTypes of Jobs

The Marketing Process The Marketing Process Challenges for the FutureChallenges for the Future

This lecture covers:This lecture covers: The Marketing Function - 5 PsThe Marketing Function - 5 Ps The Marketing DepartmentThe Marketing Department

Organizational StructureOrganizational Structure Types of JobsTypes of Jobs

The Marketing Process The Marketing Process Challenges for the FutureChallenges for the Future

What is What is MarketingMarketing??What is What is MarketingMarketing??

““Marketing is EverythingMarketing is EverythingYou Do to Help Sell a You Do to Help Sell a

Product/Service”Product/Service”

““Marketing is Everything”Marketing is Everything”““Marketing is Everything”Marketing is Everything” Marketing has become the dominant and Marketing has become the dominant and

often most critical business functionoften most critical business function Manufacturing techniques and resources Manufacturing techniques and resources

are now less critical, often easy to obtainare now less critical, often easy to obtain Brand equity and intellectual capital are Brand equity and intellectual capital are

now more critical, harder to duplicatenow more critical, harder to duplicate Business is evolving from manufacture of Business is evolving from manufacture of

goods to manufacture of “thinking”goods to manufacture of “thinking”

Marketing has become the dominant and Marketing has become the dominant and often most critical business functionoften most critical business function

Manufacturing techniques and resources Manufacturing techniques and resources are now less critical, often easy to obtainare now less critical, often easy to obtain

Brand equity and intellectual capital are Brand equity and intellectual capital are now more critical, harder to duplicatenow more critical, harder to duplicate

Business is evolving from manufacture of Business is evolving from manufacture of goods to manufacture of “thinking”goods to manufacture of “thinking”

““The Five P’s”The Five P’s”““The Five P’s”The Five P’s”

1. Product1. Product1. Product1. Product Product may be “tangible”Product may be “tangible”

Packaged goodsPackaged goods Durable goodsDurable goods

Product may be a serviceProduct may be a service Product may be a combinationProduct may be a combination Products are “bundles of benefits”Products are “bundles of benefits”

Product may be “tangible”Product may be “tangible” Packaged goodsPackaged goods Durable goodsDurable goods

Product may be a serviceProduct may be a service Product may be a combinationProduct may be a combination Products are “bundles of benefits”Products are “bundles of benefits”

2. Price2. Price2. Price2. Price Key part of “Key part of “value equationvalue equation”” At the price, product must have some measure of At the price, product must have some measure of

““functional superiorityfunctional superiority.”.” Price must also contain Price must also contain marginmargin

For funding of necessary activities...For funding of necessary activities... and and profitprofit

Price can send additional signalsPrice can send additional signals Can be a strategy in itself, or, more likely, part of Can be a strategy in itself, or, more likely, part of

a strategya strategy

Key part of “Key part of “value equationvalue equation”” At the price, product must have some measure of At the price, product must have some measure of

““functional superiorityfunctional superiority.”.” Price must also contain Price must also contain marginmargin

For funding of necessary activities...For funding of necessary activities... and and profitprofit

Price can send additional signalsPrice can send additional signals Can be a strategy in itself, or, more likely, part of Can be a strategy in itself, or, more likely, part of

a strategya strategy

3. Place (distribution)3. Place (distribution)3. Place (distribution)3. Place (distribution) Similar products can make different Similar products can make different

“place” decisions“place” decisions Example: CoffeeExample: Coffee

FolgersFolgers

Similar products can make different Similar products can make different “place” decisions“place” decisions

Example: CoffeeExample: Coffee FolgersFolgers


Example: CoffeeExample: Coffee FolgersFolgers GevaliaGevalia


Example: CoffeeExample: Coffee FolgersFolgers GevaliaGevalia

3. Place3. Place3. Place3. Place

3. Place3. Place3. Place3. Place Similar products can make different Similar products can make different

“place” decisions“place” decisions Example: CoffeeExample: Coffee

FolgersFolgers GevaliaGevalia StarbucksStarbucks


Example: CoffeeExample: Coffee FolgersFolgers GevaliaGevalia StarbucksStarbucks

4. Promotion4. Promotion4. Promotion4. Promotion A range of marketing communications A range of marketing communications

(MarCom) techniques can be used:(MarCom) techniques can be used: AdvertisingAdvertising Sales PromotionSales Promotion Public RelationsPublic Relations PublicityPublicity Internet/New MediaInternet/New Media

A range of marketing communications A range of marketing communications (MarCom) techniques can be used:(MarCom) techniques can be used: AdvertisingAdvertising Sales PromotionSales Promotion Public RelationsPublic Relations PublicityPublicity Internet/New MediaInternet/New Media

Direct SalesDirect Sales Direct MarketingDirect Marketing Event MarketingEvent Marketing Trade ShowsTrade Shows Promotional Promotional

ProductsProducts

Direct SalesDirect Sales Direct MarketingDirect Marketing Event MarketingEvent Marketing Trade ShowsTrade Shows Promotional Promotional

ProductsProducts

5. People5. People5. People5. People Some controversy over the fifth PSome controversy over the fifth P

Once, some said “packaging”Once, some said “packaging” One consultant says “personalization”One consultant says “personalization” Another says “playback”Another says “playback” We say it’s “People.”We say it’s “People.”

Your customersYour customers Your own peopleYour own people Other “stakeholders”Other “stakeholders”

Sales Force, Trade, SuppliersSales Force, Trade, Suppliers

Some controversy over the fifth PSome controversy over the fifth P Once, some said “packaging”Once, some said “packaging” One consultant says “personalization”One consultant says “personalization” Another says “playback”Another says “playback” We say it’s “People.”We say it’s “People.”

Your customersYour customers Your own peopleYour own people Other “stakeholders”Other “stakeholders”

Sales Force, Trade, SuppliersSales Force, Trade, Suppliers

The Marketing MixThe Marketing MixThe Marketing MixThe Marketing Mix Demand Demand

Example: Price/SupplyExample: Price/Supply

Marketing VariablesMarketing Variables Five P VariablesFive P Variables Promotion MixPromotion Mix

Marketing Strategy . . .Marketing Strategy . . .

Demand Demand Example: Price/SupplyExample: Price/Supply

Marketing VariablesMarketing Variables Five P VariablesFive P Variables Promotion MixPromotion Mix

Marketing Strategy . . .Marketing Strategy . . .

Unique CombinationsUnique CombinationsUnique Marketing StrategiesUnique Marketing StrategiesUnique CombinationsUnique CombinationsUnique Marketing StrategiesUnique Marketing Strategies

Example: Example: Early auto industryEarly auto industry

Ford - Product/PriceFord - Product/Price



GM - Multiple BrandsGM - Multiple Brands GM - Multiple BrandsGM - Multiple Brands

GM - Product/ValueGM - Product/Value GM - Product/ValueGM - Product/Value

Unique CombinationsUnique CombinationsUnique Marketing StrategiesUnique Marketing StrategiesUnique CombinationsUnique CombinationsUnique Marketing StrategiesUnique Marketing Strategies





GM - Multiple BrandsGM - Multiple Brands GM - Multiple BrandsGM - Multiple Brands

GM - Product/ValueGM - Product/Value GM - Product/ValueGM - Product/Value

Example: BoseExample: Bose Example: BoseExample: Bose Promotion + Place Promotion + Place Direct instead of storesDirect instead of stores Promotion + Place Promotion + Place Direct instead of storesDirect instead of stores

Marketing DepartmentsMarketing DepartmentsMarketing DepartmentsMarketing Departments

Vertical OrganizationVertical Organization Traditional military “command” structureTraditional military “command” structure Clear lines of responsibilityClear lines of responsibility Seems to work best when there are Seems to work best when there are

numerous similar productsnumerous similar products

Horizontal OrganizationHorizontal Organization More fluid “ad hoc” structure More fluid “ad hoc” structure Organize around needs and functionsOrganize around needs and functions

Vertical OrganizationVertical Organization Traditional military “command” structureTraditional military “command” structure Clear lines of responsibilityClear lines of responsibility Seems to work best when there are Seems to work best when there are

numerous similar productsnumerous similar products

Horizontal OrganizationHorizontal Organization More fluid “ad hoc” structure More fluid “ad hoc” structure Organize around needs and functionsOrganize around needs and functions

2 Types of Organization2 Types of Organization2 Types of Organization2 Types of Organization

Top Job Functions:Top Job Functions:Top Job Functions:Top Job Functions: For both types of organizationsFor both types of organizations CEO, COO, CMOCEO, COO, CMO

Chief Executive OfficerChief Executive Officer Chief Operating OfficerChief Operating Officer Chief Marketing OfficerChief Marketing Officer

Top Marketing personTop Marketing person CFO, CIOCFO, CIO

Chief Financial OfficerChief Financial Officer Chief Information OfficerChief Information Officer

For both types of organizationsFor both types of organizations CEO, COO, CMOCEO, COO, CMO

Chief Executive OfficerChief Executive Officer Chief Operating OfficerChief Operating Officer Chief Marketing OfficerChief Marketing Officer

Top Marketing personTop Marketing person CFO, CIOCFO, CIO

Chief Financial OfficerChief Financial Officer Chief Information OfficerChief Information Officer

Vertical OrganizationVertical OrganizationVertical OrganizationVertical Organization Example: Oscar Mayer (KGF) Example: Oscar Mayer (KGF)

Consumer ProductsConsumer Products Example: Oscar Mayer (KGF) Example: Oscar Mayer (KGF)

Consumer ProductsConsumer Products

AssistantBrand

Manager

BrandManager

Ham

AssistantBrand

Manager

BrandManagerTurkey

BrandManagerAssorted

Category ManagerLunch Pak

BrandAssistant

AssistantBrand

Manager

BrandManagerMain Line

BrandManagerSmokies

BrandManager

NewProducts

Category ManagerHot Dogs

AssistantBrand

Manager

BrandManagerBacon &Sausage

BrandAssistant

AssistantBrand

Manager

BrandManager

NewProducts

Category ManagerBreakfast/New Products

V.P.Marketing

Horizontal OrganizationHorizontal OrganizationHorizontal OrganizationHorizontal Organization Example: McDonnell-Douglas (2 groups)Example: McDonnell-Douglas (2 groups) Example: McDonnell-Douglas (2 groups)Example: McDonnell-Douglas (2 groups)

Trade Shows

Advertising

MarketingManager

Navy CustomerCustomer

Foreign CustomersCustomers

Suppliers

Plant

ProductionManager

CostAccounting

FinanceManager

R & DManager

VP, F/A-18

Trade Shows

Advertising

MarketingManager

Air ForceCustomer

PlantManager

ProductionManager

CostAccounting

FinanceManager

VP, F-15

COO, Sr. VP

CEO

Marketing Job FunctionsMarketing Job FunctionsMarketing Job FunctionsMarketing Job Functions Director of Marketing Director of Marketing

Often, trained w. “feeder system”Often, trained w. “feeder system” P&G, KGF, etc.P&G, KGF, etc. Has become COO career pathHas become COO career path

Must manage increasing variety of MarCom Must manage increasing variety of MarCom programs and suppliersprograms and suppliers

Advertising DirectorAdvertising Director Importance depends on size of budgetImportance depends on size of budget May also have significant responsibilities monitoring May also have significant responsibilities monitoring

media spendingmedia spending

Director of Marketing Director of Marketing Often, trained w. “feeder system”Often, trained w. “feeder system”

P&G, KGF, etc.P&G, KGF, etc. Has become COO career pathHas become COO career path

Must manage increasing variety of MarCom Must manage increasing variety of MarCom programs and suppliersprograms and suppliers

Advertising DirectorAdvertising Director Importance depends on size of budgetImportance depends on size of budget May also have significant responsibilities monitoring May also have significant responsibilities monitoring

media spendingmedia spending

Marketing Job Functions Marketing Job Functions Marketing Job Functions Marketing Job Functions Category Manager Category Manager

Group Product ManagerGroup Product Manager

Category Manager Category Manager Group Product ManagerGroup Product Manager

Bridgette HellerBridgette Heller - from from Brand ManagerBrand Manager GevaliaGevalia to to Category ManagerCategory Manager for for Coffee at KGFCoffee at KGF

Bridgette HellerBridgette Heller - from from Brand ManagerBrand Manager GevaliaGevalia to to Category ManagerCategory Manager for for Coffee at KGFCoffee at KGF

Brand ManagerBrand Manager Brand AssistantBrand Assistant Other Staff Functions:Other Staff Functions:

Sales Promotion Sales Promotion MediaMedia Market ResearchMarket Research

Field Marketing…Field Marketing…

Brand ManagerBrand Manager Brand AssistantBrand Assistant Other Staff Functions:Other Staff Functions:

Sales Promotion Sales Promotion MediaMedia Market ResearchMarket Research

Field Marketing…Field Marketing…

Field MarketingField MarketingField MarketingField Marketing Excellent entry level job opportunityExcellent entry level job opportunity There are many marketers that operate There are many marketers that operate Field Field

Marketing OrganizationsMarketing Organizations Beverage Industry (Beer, Soft Drink)Beverage Industry (Beer, Soft Drink) Fast Food IndustryFast Food Industry Franchise OrganizationsFranchise Organizations In many cases, ad agencies that service these In many cases, ad agencies that service these

marketers also provide Field Marketingmarketers also provide Field Marketing

“ “Think Global. Act Local.”Think Global. Act Local.”

Excellent entry level job opportunityExcellent entry level job opportunity There are many marketers that operate There are many marketers that operate Field Field

Marketing OrganizationsMarketing Organizations Beverage Industry (Beer, Soft Drink)Beverage Industry (Beer, Soft Drink) Fast Food IndustryFast Food Industry Franchise OrganizationsFranchise Organizations In many cases, ad agencies that service these In many cases, ad agencies that service these

marketers also provide Field Marketingmarketers also provide Field Marketing

“ “Think Global. Act Local.”Think Global. Act Local.”

The Marketing ProcessThe Marketing ProcessThe Marketing ProcessThe Marketing Process

PlanningPlanning ImplementationImplementation EvaluationEvaluation

PlanningPlanning ImplementationImplementation EvaluationEvaluation

PlanningPlanningPlanningPlanning1. Setting overall marketing strategy1. Setting overall marketing strategy

2. Developing annual marketing plan2. Developing annual marketing plan

3. Calculating annual marketing budget3. Calculating annual marketing budget

4. Assigning marketing tasks (planning)4. Assigning marketing tasks (planning)

1. Setting overall marketing strategy1. Setting overall marketing strategy

2. Developing annual marketing plan2. Developing annual marketing plan

3. Calculating annual marketing budget3. Calculating annual marketing budget

4. Assigning marketing tasks (planning)4. Assigning marketing tasks (planning)

ImplementationImplementationImplementationImplementation4. Assigning marketing tasks (continued)4. Assigning marketing tasks (continued)

After budgets approved, operations move from the After budgets approved, operations move from the theoretical to the practicaltheoretical to the practical

NOTE: Actual costs may vary from budget - plans NOTE: Actual costs may vary from budget - plans may need to be changed “on the fly”may need to be changed “on the fly”

5. Supervising internal functions5. Supervising internal functions NOTE: PR may be internal, external or bothNOTE: PR may be internal, external or both

6. Overseeing external services6. Overseeing external services Advertising, sales promotion, etc.Advertising, sales promotion, etc. NOTE: Variety of MarCom program options is NOTE: Variety of MarCom program options is

growinggrowing

4. Assigning marketing tasks (continued)4. Assigning marketing tasks (continued) After budgets approved, operations move from the After budgets approved, operations move from the

theoretical to the practicaltheoretical to the practical NOTE: Actual costs may vary from budget - plans NOTE: Actual costs may vary from budget - plans

may need to be changed “on the fly”may need to be changed “on the fly”

5. Supervising internal functions5. Supervising internal functions NOTE: PR may be internal, external or bothNOTE: PR may be internal, external or both

6. Overseeing external services6. Overseeing external services Advertising, sales promotion, etc.Advertising, sales promotion, etc. NOTE: Variety of MarCom program options is NOTE: Variety of MarCom program options is

growinggrowing

Evaluation:Evaluation:Evaluation:Evaluation:7. Measuring and tracking efforts7. Measuring and tracking efforts

Sales ResultsSales Results Media ExpendituresMedia Expenditures Awareness and UsageAwareness and Usage Ongoing Market Research programs (tracking studies)Ongoing Market Research programs (tracking studies)

8. Reporting performance to management 8. Reporting performance to management NOTE: May be daily, weekly, or quarterly. Trend is NOTE: May be daily, weekly, or quarterly. Trend is

for more frequent reportingfor more frequent reporting

9. Integrating results into planning9. Integrating results into planning The cycle continues - working for improvement The cycle continues - working for improvement

wherever possiblewherever possible

7. Measuring and tracking efforts7. Measuring and tracking efforts Sales ResultsSales Results Media ExpendituresMedia Expenditures Awareness and UsageAwareness and Usage Ongoing Market Research programs (tracking studies)Ongoing Market Research programs (tracking studies)

8. Reporting performance to management 8. Reporting performance to management NOTE: May be daily, weekly, or quarterly. Trend is NOTE: May be daily, weekly, or quarterly. Trend is

for more frequent reportingfor more frequent reporting

9. Integrating results into planning9. Integrating results into planning The cycle continues - working for improvement The cycle continues - working for improvement

wherever possiblewherever possible

Marketing Challenges:Marketing Challenges:Marketing Challenges:Marketing Challenges: Increasing importance of marketingIncreasing importance of marketing

As mentioned, As mentioned, “Marketing is Everything”“Marketing is Everything” the the function is more important for everyonefunction is more important for everyone

Hyper-CompetitionHyper-Competition Too much capacity for size of marketToo much capacity for size of market Happening on a global scaleHappening on a global scale Examples: Automobiles, computersExamples: Automobiles, computers

FragmentationFragmentation Consumers, Media, etc. Consumers, Media, etc. Harder to do “mass” marketingHarder to do “mass” marketing

Increasing importance of marketingIncreasing importance of marketing As mentioned, As mentioned, “Marketing is Everything”“Marketing is Everything” the the

function is more important for everyonefunction is more important for everyone Hyper-CompetitionHyper-Competition

Too much capacity for size of marketToo much capacity for size of market Happening on a global scaleHappening on a global scale Examples: Automobiles, computersExamples: Automobiles, computers

FragmentationFragmentation Consumers, Media, etc. Consumers, Media, etc. Harder to do “mass” marketingHarder to do “mass” marketing

marketing: building blueprints for business marketing: building blueprints for business

Documents

n business

goods marketers advertisers

durable goods n product

product n product

types of jobs n

thinking n marketing

service n product

benefits n product