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Chapter 1,Marketing in the Twenty-first Century,Objectives,Course Organization Tasks of Marketing Major Concepts & Tools of Marketing Marketplace Orientations Marketings Responses to New Challenges,Course/Text Organization,Part I - Understanding Marketing Management Part II - Analyzing Marketing Opportunities Part III - Developing Marketing Strategies Part IV - Shaping the Market Offering Part V - Managing & Delivering Marketing Programs,Defining Marketing,Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. - Philip Kotler (p. 7),Core Concepts of Marketing,Product or Offering,Value and Satisfaction,Needs, Wants, and Demands,Exchange and Transactions,Relationships and Networks,Target Markets & Segmentation,Marketing Channels,Supply Chain,Competition,Marketing Environment,Simple Marketing System,Goods/services,Money,Manufacturer markets,Structure of Flows,The Four Ps,Marketing Mix,The Four Cs,Customer Solution,Customer Cost,Communication,Conven- ience,Production Concept,Product Concept,Selling Concept,Marketing Concept,Consumers prefer products that are widely available and inexpensive,Consumers favor products that offer the most quality, performance, or innovative features,Consumers will buy products only if the company aggressively promotes/sells these products,Focuses on needs/ wants of target markets & delivering value better than competitors,Company Orientations Towards the Marketplace,Customer Delivered Value,Customers,Front-line people,Middle Management,Top Management,Traditional Organization Chart,Customer-Oriented Organization Chart,Evolving Views of Marketings Role,Evolving Views of Marketings Role,Evolving Views of Marketings Role,Review,Course Organization Tasks of Marketing Major Concepts & Tools of Marketing Marketplace Orientations Marketings Responses to New Challenges,Chapter 2,Building Customer Satisfaction through Quality, Service, and Value,Objectives,Define value & satisfaction - understand how to deliver them The nature of high-performance businesses How to attract & retain customers Improving customer profitability Total quality management,Determinants of Customer Delivered Value,Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations.,High Performance Business,The Generic Value Chain,Levi Strauss Value-Delivery Network,Competition is between networks, not companies. The winner is the company with the better network.,Sears (Retail),Satisfied Customers:,Are loyal longer Buy more (new products & upgrades) Spread favorable word-of-mouth Are more brand loyal (less price sensitive) Offer feedback Reduce transaction costs,Levels of Relationship Marketing,Customer Development,Suspects,Customer/Product Profitability Analysis,The Profit Triangle,Value creation,Competitive advantage,Internal operations,Profit,Quality,Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.,#1,Review,Define value & satisfaction - understand how to deliver them The nature of high-performance businesses How to attract & retain customers Improving customer profitability Total quality management,Chapter 3,Winning Markets: Market-Oriented Strategic Planning,Objectives,Corporate and division strategic planing Business unit planning The marketing process Product level planning The marketing plan,Market-Oriented Strategic Planning,Market-Oriented Strategic Planning,Corporate Headquarters Planning,Define the corporate mission Establish strategic business units (SBUs) Assign resources to SBUs Plan new business, downsize older businesses,Strategic-Planning, Implementation, and Control Process,Planning,Good Mission Statements:,Limited number of goals,Stress major policies & values,The Boston Consulting Groups Growth-Share Matrix,Market Attractiveness: Competitive- Position Portfolio Classification,The Strategic-Planning Gap,Three Intensive Growth Strategies: Ansoffs Product/Market Expansion Grid,4. Diversification,1,4,2,3,High,Low,High,Low,Attractiveness,Success Probability,Opportunities,Opportunity Matrix,1. Company develops a more powerful lighting system 2. Company develops a device for measuring the energy efficiency of any lighting system 3. Company develops a device for measuring illumination level 4. Company develops a software program to teach lighting fundamentals to TV studio personnel,Threat Matrix,1. Competitor develops a superior lighting system 2. Major prolonged economic depression 3. Higher costs 4. Legislation to reduce number of TV studio licenses,1,4,2,3,High,Low,High,Low,Seriousness,Probability of Occurrence,Threats,The McKinsey 7-S Framework,The Value-Delivery Process,(a) Traditional physical process sequence,(b) Value creation & delivery sequence,The Marketing Plan,Executive Summary & Table of Contents,Current Marketing Situation,Opportunity & Issue Analysis,Objectives,Marketing Strategy,Action Programs,Projected Profit-and-loss,Controls,Factors Influencing Company Marketing Strategy,Target customers,Review,Corporate and division strategic planing Business unit planning The marketing process Product level planning The marketing plan,Chapter 4,Gathering Information and Measuring Market Demand,Objectives,Components of a marketing information system Criteria of good marketing research Decision support systems for marketing management Demand measurement and forecast,A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.,A marketing intelligence system is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment.,Defining the Problem & Research Objectives,Exploratory Research,Descriptive Research,Causal Research,Research Approaches,Behavioral,Focus-group,Experimental,Observational,Secondary-Data Sources,Internal Sources Government Publications Periodicals and Books Commercial Data On-Line Associations Business Information,The Marketing Research Process,Defining the problem and research objectives,Good Marketing Research:,Is scientific Is creative Uses multiple methods Realizes the interdependence of models & data Acknowledges the cost & value of information Maintains “healthy” skepticism Is ethical,Ninety Types of Demand Measurement (6 x 5 x 3),Demand,Estimating Current Demand,Total Market Potential Area Market Potential Industry Sales Market Share,Estimating Future Demand,Survey of Buyers Intentions Composite of Sales Force Opinion Expert Opinion Past Sales Analysis Market Test Method,Review,Components of a marketing information system Criteria of good marketing research Decision support systems for marketing management Demand measurement and forecast,Chapter 5,Scanning the Marketing Environment,Objectives,Tracking & Identifying Opportunities in the Macroenvironment Demographic, Economic, Natural, Technological, Political, & Cultural Developments,Macroenvironmental Forces,World trade enablers Asian economic power Rise of trade blocs International monetary crises Use of barter & countertrade Move towards market economies “Global” lifestyles,Macroenvironmental Forces,Opening of “new” markets Emerging transnational firms Cross-border strategic alliances Regional ethnic & religious conflict Global branding,Demographic Environment,Worldwide Population Growth,Population Age Mix,Ethnic Markets,Household Patterns,Educational Groups,Geographical Shifts in Population,Shift from Mass Market to Micromarkets,Economic Environment,Income Distribution,Subsistence economies,Raw-material-exporting economies,Industrializing economies,Industrial economies,Savings, Debt, & Credit Availability,Natural Environment,Issues in the Technological Environment,Increased Legislation,Special- Interest Groups,Social/Cultural Environment,Of Organizations,Of Nature,Of Oneself,Of Society,Of the Universe,Of Others,Views That Express Values,Social/Cultural Environment,Review,Tracking & Identifying Opportunities in the Macroenvironment Demographic, Economic, Natural, Technological, Political, & Cultural Developments,Chapter 6,Analyzing Consumer Markets and Buying Behavior,Objectives,Influences on Buying Behavior Buyer Decision Making,Simple Response Model,Stimulus,Model of Buying Behavior,Cultural Factors,Buyer,Social Factors,Reference Groups,Roles & Statuses,Family,Influences on Consumer Behavior,Personal Influences,Psychological Factors,Perception,Learning,Beliefs & Attitudes,Motivation,Maslows Hierarchy of Needs,Four Types of Buying Behavior,Complex Buying Behavior,Dissonance- Reducing Buying Behavior,Variety- Seeking Behavior,Habitual Buying Behavior,High Involvement,Low Involvement,Consumer Buying Process,Problem recognition,Decision Making Sets,Steps Between Evaluation of Alternatives and a Purchase Decision,Evaluation of alternatives,How Customers Use or Dispose of Products,Product,Review,Influences on Buying Behavior Buyer Decision Making,Chapter 7,Analyzing Business Markets & Business Buying Behavior,Objectives,How Business & Consumer Markets Differ Organizational Buying Situations Participants in the Business Buying Process Major Influences on Organizational Buyers Business Buyer Decision Making Institutional & Government Buying,Business vs. Consumer Markets,Fewer buyers Larger buyers Close supplier-customer relationship Geographically concentrated Derived demand Inelastic demand Fluctuating demand,Business vs. Consumer Markets,Professional purchasing Several buying influences Multiple sales calls Direct purchasing Reciprocity Leasing,Utilities Office Supplies Bulk chemicals,New vehicles Elec. Equip Consultants Computer equip.,Custom furniture Installed components Buildings Weapon systems,Participants in the Business Buying Process,Gatekeepers,Initiators,Buyers,Influencers,Deciders,Users,Approvers,Major Influences on Industrial Buying Behavior,Business Buyer,Organizational Factors,Purchasing- Department Upgrading,Cross- Functional Roles,Centralized Purchasing,Decentralized Purchasing of Small Ticket Items,Internet Purchasing,Long-Term Contracts,Purchasing- Performance Evaluation & Pro. Buyers,Lean Production,Problem Recognition,Post Purchase,Purchase,Info Search/ Eval,Need Recognition,Institutional Markets,Government Markets,Review,How Business & Consumer Markets Differ Organizational Buying Situations Participants in the Business Buying Process Major Influences on Organizational Buyers Business Buyer Decision Making Institutional & Government Buying,Chapter 8,Dealing with the Competition,Objectives,Identifying Competitors Evaluating Competitors Competitive Intelligence Systems Competitive Strategies Customer vs. Competitor Orientation,Induce your competitors not to invest in those products, markets and services where you expect to invest the most that is the fundamental rule of strategy. Bruce Henderson, Founder of BCG,There is nothing more exhilarating than to be shot at without result. Winston Churchill,Five Forces Determining Segment Structural Attractiveness,Barriers and Profitability,Low, risky returns,Industry Competition,Number of Sellers - Degree of Differentiation Entry, Mobility, Exit barriers Cost Structure Degree of Vertical Integration Degree of Globalization,Strategic Groups in the Major Appliance Industry,Group A Narrow line Lower mfg. cost Very high service High price,Group D Broad line Medium mfg. cost Low service Low price,Group C Moderate line Medium mfg. cost Medium service Medium price,Group B Full line Low mfg. cost Good service Medium price,Analyzing Competitors,Competitors Expansion Plans,Hypothetical Market Structure & Strategies,Expand Market,Defend Market Share,Expand Market Share,Attack leader,Status quo,Imitate,Special- ize,Defense Strategies,Attacker,Defender,(1) Position defense,(6) Contraction defense,Optimal Market Share,Attack Strategies,Specific Attack Strategies,Price-discount Cheaper goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing cost reduction Intensive advertising promotion,“Nichemanship”,End-user specialist Vertical-level specialist Customer-size specialist Specific-customer specialist Geographic specialist Product or product-line specialist Product-feature specialist Job-shop specialist Quality-price specialist Service specialist Channel specialist,Balance,Competition,Customer,+ Fighter orientation,+ Alert,+ Exploit weaknesses,- Reactive,+ ID opportunities,+ Long-run profit,+ Emerging needs & groups,Review,Identifying Competitors Evaluating Competitors Competitive Intelligence Systems Competitive Strategies Customer vs. Competitor Orientation,Chapter 9,Identifying Market Segments and Selecting Target Markets,Objectives,Identifying Market Segments Choosing Target Markets,Steps in Market Segmentation, Targeting,and Positioning,Basic Market-Preference Patterns,Market-Segmentation Procedure,Survey Motivations Attitudes Behavior Analysis Factors Clusters Profiling,Bases for Segmenting Consumer Markets,Demographic,Age, Gender, Family size and Life cycle, Race, Occupation, or Income .,Bases for Segmenting Business Markets,Demographic Operating Variables Purchasing Approaches Situational Factors Personal Characteristics,Measurable,Accessible,Substantial,Differential,Actionable,Effective Segmentation,Heavy and Light Users of Common Consumer Products,Additional Segmentation Criteria,Ethical Choice of Market Targets Segment Interrelationships & Supersegments Segment-by-Segment Invasion Plans Intersegment Cooperation,Five Patterns of Target Market Selection,Segment-by-Segment Invasion Plan,Review,Identifying Market Segments Choosing Target Markets,Chapter 10,Positioning and Differentiating Market Offerings over the Life Cycle,Objectives,Identify Differentiating Attributes Choosing & Communicating Effective Positioning Marketing Strategies Along the Product Life Cycle Marketing Strategy & Market Evolution,The BCG Competitive Advantage Matrix,Volume,Fragmented,Stalemated,Specialized,Product Differentiation,Form,Fea- tures,Perfor- mance,Quality,Conform- ance Quality,Dura- bility,Relia- bility,Repair- ability,Style,Design,Delivery,Services Differentiation,Ordering Ease,Maintenance & Repair,Customer Training,Installation,Customer Consulting,Differentiation,Personnel Channel,Media,Atmosphere,Symbols,Events,Image Differentiation,Differences Worth Establishing,Affordable,Superior,Profitable,Preemptive,Distinctive,Important,Positioning is the act of designing the companys offering and image to occupy a distinctive place in the the target markets mind. P 298,Perceptual Map,Sales & Profit Life Cycles,Four Introductory Marketing Strategies,Rapid- skimming strategy,Rapid- penetration strategy,Slow- penetration strategy,Slow- skimming strategy,Maturity Stage,Market Modification Product Modification Marketing-Mix Modification,Decline Stage,Decrease investment Resolve uncertainties - stable investment Selective niches Harvesting Divesting,Market Evolution,Emergence Growth Maturity Decline,Market-Fragmentation and Market-Consolidation Strategies,Review,Identify Differentiating Attributes Choosing & Communicating Effective Positioning Marketing Strategies Along the Product Life Cycle Marketing Strategy & Market Evolution,Chapter 11,Developing New Market Offerings,Objectives,Challenges in New Product Development (NPD) Organizational Structure & NPD Stages & Management of NPD Diffusion & Adoption of New Products,Why New Products Fail,“Over Championing” Overestimated Demand Poor Design Poor Marketing Execution High Development Costs Strong Competitive Reaction,Challenges in NPD,Idea Shortage Fragmented Markets Social & Governmental Constraints Cost Capital Shortage Need for Speed Shorter Product Life Cycles,New Product Development Process,Idea Generation,Concept Development and Testing,Idea Screening,Probability of Success,Probability of technical completion,Concept Development & Testing,1. Develop Product Ideas into Alternative Product Concepts,2. Concept Testing - Test the Product Concepts with Groups of Target Customers,3. Choose the Best One,Product & Brand Positioning,(a) Product-positioning map (breakfast market),b) Brand-positioning map (instant breakfast market),Conjoint Analysis,Consumer-Goods Market Testing,Commercialization,When,Whom,Product Price Place Promotion,Time of adoption innovations,Adopter Categorization of the Basis of Relative Time of Adoption of Innovations,Characteristics of the Innovation Rate of Adoption,Relative advantage Compatibility Complexity Divisibility Communicability,Chapter 12,Designing Global Market Offerings,Objectives,Factors to Consider Before Going Global Selecting Foreign Markets Foreign Market Entry Product Adaption for Global Marketing Management & Organization of Global Activities,Major Decisions in International Marketing,Challenges in Going Global,Shifting borders Unstable governments Foreign-exchange Corruption Technological pirating,Criteria for Entry,Market Attractiveness Risk Competitive Advantage,Five Models of Entry Into Foreign Markets,Joint Venture,Licensing: Sell rights to name brand. Contract Manufacturing: make item in host country; manufacturer of product only. Management Contracting: hired as Mgmt. Consultant to host company Joint Ownership: truly partnering with a company in host country, to share expertise and mutual gains.,Internationalization Process,Five International Product and Promotion Strategies,Dual adaptation,Pricing Challenges,Price Escalation,Dumping charges,Gray markets,Whole-channel Concept for International Marketing,Marketing Organization,Chapter 13,Managing Product Lines, Brands, and Pac

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