Marketing Management Spring 2003
Some Abouts • About me • About this course • About the textbook • About the assignment • About class participation • About the exam
Text Structure • Marketing environment • The marketing process • The consumer • The marketing mix: Product, Place, Promotion, and Price.
Marketing Today • A new era • Technology advances • Consumer needs and wants • Globalization
Utility • Utility: • The want-satisfying power of a good or service. • Form • Time • Place • Ownership
Marketing Manager’s Job • Identifying customer needs • Designing goods and services that meet those needs • Communicating information about those goods and services to prospective buyers • Making the goods or services available at times and places that meet customers’ needs • Pricing goods and services to reflect costs, competition, and customers’ ability to buy • Providing for the necessary service and follow-up ensure customer satisfaction after the purchase
Define Marketing • The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives.
Evolution of Marketing • Specialization • Division of labor • Production Surplus • Exchange Process: the origin of marketing • Good, Service, Donation?
Four Marketing Eras • The production era(-1925) • “A mouse trap that kills sells itself.” • The sales era(1925-1950s) • “We must sell everything we make.”
Four Marketing Eras cont. • The marketing era(1950s-1990s) • Sellers market-Buyers market • The marketing concept • Company-wide consumer orientation • The relationship era(1990s-) • Relationship marketing • Strategic Alliances
Marketing Myopia • Management’s failure to recognize the scope of its business. • NIKE’s approach • www.iflyswa.com
NFP Marketing • Public sector • Private sector • Difference between NFP mktg and FP mktg • Audience • Control • Measurement of success
Nontraditional Marketing • Person Marketing • efforts designed to cultivate the attention, interest, and preferences of a target market toward a person. • George Bush, Michael Jordan, Jacky Chan • Place Marketing • attempts to attract customers to particular areas. • Yellow Stone, Malaysia, Gui Lin
Nontraditional Marketing Cont. • Cause Marketing • the identification and marketing of a social issue, cause, or idea to selected target markets. • Environment, unemployment, fitness, anti-smoking • Event Marketing • marketing of sporting, cultural, and charitable activities to selected target markets. • The Olympic Games, The APEC Summit
Nontraditional Marketing Cont. • Organization Marketing • attempts to influence others to accept the goals of, receives the services of, or contribute in some way to an organization. • The Red-Cross, Canadian Tertiary Education Show
Marketing Strategy • The target market • the group of people toward whom a firm markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences. • The marketing mix: The 4 Ps • Product, Place, Price, Promotion
Product Strategy • Element of marketing decision making involved in developing the right good or service for the firms customers, including customer service, package design, brand names, trademarks, warranties, product life cycles, positioning, and new-product development.
Pricing Strategy • Element of marketing decision making dealing with the methods of setting profitable and justifiable prices.
Distribution (Place) Strategy • Element of marketing decision making concerned with activities and marketing institutions that get the right good or service to the firm’s customers.
Promotion Strategy • Element of marketing decision making that involves appropriate blending of personal selling, advertising, and sales promotion to communicate with and seek to persuade potential customers.
The Marketing Environment • Competitive environment • Social-cultural environment • Technological environment • Economical environment • Political-legal environment
The Technology Revolution In Marketing • Computer networks • Videoconferencing • Online services and the Internet • Interactive Kiosks • CD-ROM Catalogs • PDA
Interactive Marketing • Buyer-seller communications in which the customer controls the amount and type of information received from a marketer through such channels as the Internet, CD-ROM disks, interactive 800 telephone numbers, and virtual reality kiosks.
Internet • An all-purpose global network composed of some 48,000 different networks around the globe that, within limits, lets anyone with access to a personal computer send and receive images and data anywhere. • World Wide Web: An interlinked collection of graphically rich information source within the larger Internet.
Virtual Marketing Tools • Interactive Brochures • www.colgate.com • Virtual Storefronts • www.godiva.com • Information Clearinghouses • Customer Service Tools • www.fedex.com
Checklist for E-Marketing • What types of goods and services can be successfully marketed on the Web? • What characteristics make a successful Web presentation? • Dose the Web offer a secure way to process customer orders? • How will the Web affect traditional store-based and non-store retailing and distribution? • What is the best use of this technology in a specific firm’s marketing strategy?
Transaction-Based Marketing • Relationship Marketing • The development, growth, and maintenance of long-term, cost-effective exchange relationships with individual customers, suppliers, employees, and other partners for mutual benefit. • Partnerships and Strategic Alliances
Functions of Marketing • Exchange Function • Buying • Selling • Physical Distribution Function • Transporting • Storing
Functions of Marketing Cont. • Facilitating Function • Standardizing and Grading • Financing • Risk Taking • Securing marketing information
Marketing Ethics and Social Responsibilities • Cigarette Advertising • Price Cheating • Email Spam • Arthur Anderson • Firestone • Wen Zhou and Shan Tou • Grape Wine • A punch on BENZ China
Creating Value • Customer Satisfaction • The ability of a good or service to meet or exceed buyer needs and expectations • Quality • The degree of excellence or superiority of an organization’s goods and services
Value • The customer’s perception of the balance between the quality of goods or services that a firm provides and their prices. • Value Equation: V=B/P • Providing Value-Added good or service • Short Message, Electric Heater • No-Reason Return • Nike
Customer Satisfaction • The cost of acquiring new customers is five times greater than the expense of keeping old ones. • 95% of dissatisfied customers each tell 11 friends about the negative experience. • ACSI: American Customer Satisfaction Index. • Harley-Davidson • Applebee’s
Internal Marketing • Management actions that help all members of an organization to understand and accept their respective roles in implementing its marketing strategy. • Intranet • Employee satisfaction • Suppliers
Measuring Customer Satisfaction • Understanding customer needs • Obtaining customer feedback • Toll-free service number, online discussion groups, mystery shoppers, marketing research • www.circuitcity.com • Customer Satisfaction Measurement Programs
Quality Movement • TQM • An effort to involve all employees in a firm to continually improve products and work processes with the goal of achieving customer satisfaction and world-class performance. • Quality Control • John Akers, Email Response • Zero Defection
Worldwide Quality Programs • The Malcolm Baldrige National Quality Award (USA) 1978 • Manufacturing, Services, Small Business • Customer expectation, CRM, Service Standard, quality pledge, customer complaints, satisfaction determination, satisfaction level, satisfaction comparison. • The ISO 9000 Standards (EU) • Audit, Condition
How Quality Improvements Benefit An Organization External Quality Improvements Increased Customer Satisfaction Lower Cost Internal Quality Improvements Increased Market Share Increased Productivity Lower Price Increased Earnings And Profits
TQM Management • Top management involvement • Employee involvement • Internal marketing, empowerment, training, teamwork • Teamwork • Quality Circle • Cross-functional team • Self-managed team
TQM Management Cont. • Marketing audit • A thorough, objective evaluation of an organization’s marketing philosophy, goals, policies, tactics, practices, and results.
TQM Management Cont. • Benchmarking • Process in which an organization continuously compares and measures itself against business leaders anywhere in the world to learn how it could improve performance. • Critical success factors • Xerox, SWA, Analyze Internal Processes Implement Improvements Identify Processes For Improvement Feedback
TQM Management Cont. • Continuous Improvement • PDCA Cycle • Planning: Analyze, Identify, Determine • Doing: Implement • Checking: Observe • Acting: Finalize and protect • Reducing cycle time • Reducing variation • Eliminating waste
Delivering Customer Value • Product Strategy • Distribution Strategy • Promotional Strategy • Pricing Strategy
Environmental Management • An effort to attain organizational objectives by predicting and influencing the firm’s competitive, political-legal, economic, technological, and social-cultural environments. • Environmental Scanning • The process of collecting information about the external marketing environment in order to identify and interpret potential trends.
Competitive Environment • The interactive exchange in the marketplace influenced by actions of marketers of directly competitive products, marketers of products that can substitute for one another, and other marketers competing for the same consumers’ purchasing power.
Types of Competition • Direct Competition • Substituting Products • Fax, EMS, Email • Electric Fan, Air Conditioner • Electricity, Gas, or Coal? • VCD, DVD players vs. Theatres • All Organizations • Discretionary buying power
Developing A Competitive Strategy • Should we compete? • In what market? • How? • Time-Based Competition • A strategy of developing and distributing goods and services more quickly than competitors can achieve. • NICE, P&G, Uni-Lever, LUX • Intel vs. Athlon: CPU speed
Political-Legal Environment • A component of the marketing environment defined by laws and their interpretations that require firms to operate under certain competitive conditions and to protect consumer rights.
Government Regulation • Anti-Monopoly and Industry Deregulation • China Telecom, China Mobile • The Airline Industry • Consumer Protection • Product Liability • Consumer Rights Protection • Cyberspace