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DEFINING MARKETING for the 21st CENTURY

Technology, Globalization, Deregulation Changes in Philips Lighting from 2002 to

2007

Prof. Bong De UngriaAteneo Graduate School of Business

(Prof. Remigio De Ungria)

Chapter 1

Filename for this should be“V46 Ch 1 SHOW ME Philips Bong De Ungria” or “ V46 Ch 1 SHOW ME Philips Remigio De Ungria”

This is a template for use by students of the Marketing class of Prof. Bong De Ungria of the AGSB. Cover slides represent the “Executive Summary” of the presentation. Make this slide complete & concise!

2 Concepts illustrated using Philips lighting

21st century challenges to face Marketing mix adjustments

Picture of

Philips lighting Range of products

Outline

The red text in each slideFor all the slidesSummarize the keyIdea in that slide

Business face these 3, or else!

3 Challenges & Opportunities Globalization Technology Deregulation

Concept #1

Notice that all slides contain both text and appropriateVisuals (clipart, picture, table, diagram).

NEW TECHNOLGOY justifies higher selling price!

Technology made this possible Longer bulb life 300% more hours Lower energy consumption 70% less Lower total cost of ownership

** Purchase price higher but total cost is lower!

Concept #1 Example

Picture of Advanced

bulb

Picture of old bulb

Communicated technology via TV and Print Ads

Concept #1 Example

Visual of TV ad shown in class (domino commercial then light goes out). Alternatively, visual images of the new vs. the old product (from the website, print ad, brochure)

Shifting to NEW TECHNOLOGY make sense!

Concept #1 Example

Scanned news article showing that the government is encouraging the shift to the NEW, energy efficient lighting since the savings for the government are immediate and substantial

DEREGULATION resulted in free-flow of goods in region

Lower tariff rates & reciprocal recognition caused the ff: China and Indonesia became

production hubs for lighting products in Asia

Local lighting plants shut down (ex. Philippines)

Concept #1 Example

Picture of Asian region

map

Picture of Lighting

certification

DEREGULATION allows entry of imported competition

Concept #1 Example

TV ad, website or visual of Firefly lighting. It suddenly became feasible to import this brand from China and compete directly with an established and dominant brand like Philips lighting.

GLOBALIZATION required same advertising in region

Concept #1 Example

TV ad of a regional ad that was not used in the Philippines (rapper) w

TV ad of a regional ad that the Philippine lighting subsidiary had to use regardless of local sentiments

Marketing mix (4Ps) need to be adjusted

Concept #2

This is a pictureFrom Kotler slides

Given to students. Consider Kotler’s slides

As good conceptsTo build “show me”

presentations

EVENTS to create excitement for the new technology

Concept #2 Example

Printscreen from Philips website showing a particular event held to launch the new product to its targeted users. Suggest to combine text with printscreen or pictures to avoid monotony and increase useful content.

PRICES for the advanced products were increased 50%

Concept #2 Example

PRICES of the older generation of products

PRICES of the substitute, new technology products

2 Concepts illustrated has changed Philips lighting

Technology, Deregulation, Globalization

Marketing mix adjustments on promo and price

Picture of

NEW Philips lighting Range of products in

2009

Summary

Picture of

OLD Philips lighting Range of products in

2002

While the outline slide (slide #2) has a similar Message as this summarySlide , there has to be a noticeable difference on the final summary slide