Session 1- 09.13.04 Marketing: Introduction, Strategy and Competition Professional Selling Marketing Research Advertising Retail Buying Distribution Management Product Management Product Development Wholesaling Why Study Marketing?
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Introduction, Strategy and Competition
American Marketing Association Definition
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and servicesto create exchanges that satisfy individual and organizational goals.
You have just purchased a tennis racquet factory that has been shut down for the last few years.
The automated equipment and computer system are in excellent shape, and the personnel needed to run the factory are readily available.
But before jumping into production, what questions need to be asked and answered? What plans need to be made? Which of these plans concern marketing?
Example of a Company Policy Statement Stressing Social Responsibility
Characteristics of a Good Mission Statement:
Fit Market Environment
Defining the Company’s Business and Mission
A Mission Statement is a Statement of the Organization’s Purpose.
The Coca-Cola Company exists to benefit and refresh everyone it touches.The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business.
“PepsiCo’s overall mission is to increase the value of our shareholders’ investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.”
Target market typically dictates type of relationship
Customer loyalty and retention programs
Adding financial benefits
Adding social benefits
Adding structural tiesCRM
A written document that acts as a guidebook of marketing activities for the marketing manager.
PlanWhy Write a Marketing Plan?
A statement of what is to be accomplished through marketing activities.
“Our objective is to increase market share by 40% and to obtain customer satisfaction ratings of at least 90% in 2003.”Marketing Objectives
Marketing Objectives Must Be:
Identifying internal strengths (S)and weaknesses (W) and also examining external opportunities (O) and threats (T)
Things the company does well.
Things the company does not do well.
Conditions in the external environment that favor strengths.
Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.
©South-Western College PublishingSWOT Analysis
Provide financial resources if SBU (Problem Child) has potential to be a Star.
Preserve market share if SBU is a successful Cash Cow. Use cash flow for other SBUs.
Increase short-term cash return. Appropriate for all SBUs except Stars.
Get rid of SBUs with low shares in low-growth markets.Strategies for Resource Allocation
Product/ Market Expansion Grid
Difficult to Define SBU’s & Measure Market Share/ GrowthProblems With Matrix Approaches
Focus on Current Businesses, But Not future Planning
Can Lead to Unwise Expansion or Diversification
strengths and weaknesses,
and reaction patterns
attack or avoid
Strategy a Company
Depends on Its
Target marketing determines which segment(s) are pursued.
The strategic market positioningfor the product is then determined.The Marketing Process
A unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.
Amount of money
have to pay to
Obtain the product
combination that a
company offers a
customers to buy
that make the