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Marketing(13)

By Richard Powell,2014-01-20 21:39
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Marketing(13)

Marketing

     Building Blueprints for Business

Marketing

    System

Marketers Advertisers

    ? Many different types of marketers

    ? Packaged goods

    ?Durable good

    ?Services

    ?Retailers

    ?High Tech

    ?And more

    ?But they all have similar methodologies and organizations

Marketer:

     Controls the product…

RESELLER...

    sells, but does

    not control the

    product

Marketer:

“Marketing is Everything”

    ? Marketing has become the dominant and often most critical business function ? Manufacturing techniques and resources are now less critical, often easy to obtain ? Brand equity and intellectual capital are now more critical, harder to duplicate ? Business is evolving from manufacture of goods to manufacture of “thinking”

Chart:

Current Customers:

    ...consumers and business users

The Environment:

    ...those who affect the

    system but who are not

    in it, including...

COMPETITORS

    MARKETING

    SYSTEMS

    MARKET INFLUENCERS

POTENTIAL CUSTOMERS...

    Consumers and Business

    Users not yet in market.

REGULATORY AGENCIES...

    Government and Industry

    NON-MARKET AUDIENCES...

    Employees, voters, citizen groups, legislators

Chart

“The Five P’s”

    ? Five Critical Marketing Decisions ? Product

    ? Price

    ? Place (physical distribution) ? Promotion

    ? All types of promotional activities ? Advertising, Sales Promotion, PR, etc. ? “The Fifth P”

    ? People

Four Major Questions:

1. What product will be produced?

    2. How much will it cost?

    3. Where will it be sold?

4. How will it be promoted?

1. Product

    ? Product may be “tangible” ? Packaged goods

    ? Durable goods

    ? Product may be a service

    ? Product may be a combination

    ? Products are “bundles of benefits”

2. Price

    ? Key part of “value equation ? At the price, product must have some measure of “functional superiority.”

    ? Price must also contain margin ? For funding of necessary activities...

    ? and profit

    ? Price can send additional signals

    ? Can be a strategy in itself, or, more likely, part of a strategy

3. Place

    ? Similar products can make different “place” decisions

    ? Example: Coffee

    ? Folgers

3. Place

    ? Similar products can make different “place” decisions

    ? Example: Coffee

    ? Folgers

    ? Gevalia

    ? Starbucks

    ?A critical decision

4. Promotion

    ? A range of marketing communications (MarCom) techniques can be used:

    ? Advertising

    ? Sales Promotion

    ? Public Relations

    ? Publicity

    ? Internet/New Media

?Direct Sales

    ?Direct Marketing ?Event Marketing

    ?Trade Shows

    ?Promotional Products

Promotion...activities marketer and resellers

    use to stimulate the flow of the product.

PERSONAL SELLING...

    marketer communicates with only a few prospects at a time.

ADVERTISING...

    marketer communicates with large number of prospects at once using mass media.

SALES PROMOTION...

    Special incentives to attract attention to the product.

PUBLICITY...

    free news coverage in the mass media about marketer’s activities.

5. People

    ? Some controversy over the fifth P

    ? Once, some said “packaging”

    ? One consultant says “personalization”

    ? We say it’s “People.” ? Your customers

    ? Your own people

    ? Other “stakeholders” ? Sales Force, Trade, Suppliers

TARGET MARKET:

     user of product

TARGET AUDIENCE:

    target of promotion message.

Target markets may be...

    Current customers,

    Competitor’s customers Potential customers

Target audiences

    may be in the

marketer’s system...

Or in the

    environment...

Current Customers

    Competitors’ Customers

    Potential Customers

    Market influencers

    Non-market Audiences

Unique Combinations

    Unique Marketing Strategies

    ? Example: Early auto industry

    ? Ford - Product/Price

    ?GM Product/Value ?GM multiple brands

Marketing Departments

    ? Vertical Organization

    ? Traditional military “command” structure

    ? Clear lines of responsibility

    ? Seems to work best when there are numerous similar products ? Horizontal Organization

    ? More fluid “ad hoc” structure

    ? Organize around needs and functions

Top Job Functions:

    ? For both types of organizations

    ? CEO, COO, CMO

    ? Chief Executive Officer

    ? Chief Operating Officer

    ? Chief Marketing Officer

    ? Top Marketing person

    ? “Heavy hitter” 35+

    ? CFO, CIO

    ? Chief Financial Officer

    ? Chief Information Officer

Vertical Organization

    ? Example: Oscar Mayer (KGF) Consumer Products

     Chart:

     Pg. 211

Jobs in Vertical Organization

    ? Category Manager

    ? Veteran (in 30s)

    ? Major overall responsibility ? Nurture/grow brands and brand managers ? Brand Manager

    ? Up from Assistant (mid-20s) ? Responsible for one brand only ? “It’s your baby”

    ? Succeed or die

Horizontal Organization

    ? Example: McDonnell-Douglas (2 groups) Chart:

    Pg. 213

Jobs in Horizontal Organization

    ? VP of Program

    ? Must know the business

    ? Maturity/power/clout - 35+

    ?Marketing Manager

    ? Marketing experience, not necessarily advertising ? Responsible for all advertising, PR, sales promotion, trade shows, etc.

    ? Advertising Manager

    ? May be “thrown into” role

    ? May have little ad experience

    ? Competition from other programs

Marketing Job Functions

    ? Category Manager

    ? Group Product Manager

    ?Brand manager

    ?Brand assistant

    ?Other staff functions: Sales promotion, media, market research

    ?Field Marketing

The Marketing Process

    ? Simply put, it’s...

    ? Planning

    ? Implementation

    ? Evaluation

Planning

    1. Setting overall marketing strategy

    2. Developing annual marketing plan

    3. Calculating annual marketing budget

    4. Assigning marketing tasks (planning)

Note: All of this is covered in more detail in Ch. 8 Marketing and Planning

Implementation

    4. Assigning marketing tasks (continued)

    ? After budgets approved, operations move from the theoretical to the practical ? NOTE: Actual costs may vary from budget - plans may need to be changed “on the

    fly”

    5. Supervising internal functions

    ? NOTE: PR may be internal, external or both

    6. Overseeing external services

    ? Advertising, sales promotion, etc.

    ? NOTE: Variety of MarCom program options is growing

Evaluation:

    7. Measuring and tracking efforts

    ? Sales Results

    ? Media Expenditures

    ? Awareness and Usage

    ? Ongoing Market Research programs (tracking studies) 8. Reporting performance to management

    ? NOTE: May be daily, weekly, or quarterly. Trend is for more frequent reporting 9. Integrating results into planning

    ? The cycle continues - working for improvement wherever possible

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